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Interim agreement on a trade deal between the UAE and India could be in place by early January, according to a senior Indian minister.
The proposed Comprehensive Economic Partnership Agreement (CEPA) between India and UAE will help both countries serve larger international markets, said Piyush Goyal, Indian Minister for Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles.
In comments published by state news agency WAM, he said: “It [CEPA] will not only help the post pandemic recovery and bring back growth into both countries, but also serve the people of both countries, provide jobs in both countries, expand economic activities and help us serve the larger international markets in a bigger way.”
Talking about the possible conclusion of the agreement, he added: “We have very tight timelines by the end of this year. By early January, we hope to have the interim agreement in place along with the contours of the larger CEPA. And we do believe that, maybe by March or April, we should be able to operationalise at least the interim agreement, so that a large part of our business can be covered.”
The UAE is seeking to more than double non-oil trade with India to as much as $100 billion over five years as part of efforts to deepen ties with fast-growing economies beyond the Middle East.
Home to some of the world’s biggest wealth funds, the UAE is looking to reposition itself as a global hub for business and finance in the face of growing regional competition from Saudi Arabia.
India is the UAE’s second-largest trading partner, accounting for nine percent of the UAE’s total foreign trade and 13 percent of non-oil exports. During the first half of 2021, bilateral trade reached $21 billion – a growth rate of more than 70 percent compared to the first six months of last year.
Goyal (pictured above) told WAM that he has had extensive discussions on CEPA with Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, during his India visit last month.
“We both came to the conclusion that a Free Trade Agreement [FTA/CEPA], including an interim agreement in the immediate future, will help kick start at least on those areas where there is common understanding, and operationalising at least part of that FTA quickly will reap huge benefits for the people and businesses in both countries,” he said.
Asked about India’s negotiations with the Gulf Cooperation Council (GCC) on an FTA, Goyal said: “We had started negotiations long back and for a long period we talked to various countries in the GCC. But since there was not much progress and the UAE was willing to negotiate and it culminated quickly right now. We are working with UAE now. I hope at an early date the GCC also will show interests and we can work with the GCC for a free trade agreement.”
The minister also praised the UAE for hosting Expo 2020 Dubai in the current challenging time, adding that he is confident that the future is bright for the two countries.
“The leaders trust each other and they have very strong bond of friendship and brotherhood. The people of both countries trust each other and work together very seamlessly. I am convinced that this is an enduring relationship which has a bright future,” he added.
Indian nationals make up one of the largest population groups in the oil-rich UAE, a major source of foreign remittances. India is also an important market for UAE airlines Emirates and Etihad.
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