NEW DELHI – The United Arab Emirates and India on Friday inked an agreement to boost bilateral trade to $100 billion from the current $60 billion over the next five years.
A report of a foreign news agency said the deal signed by UAE Economy Minister Abdulla bin Touq Al-Marri and India’s Commerce and Industry Minister is aimed to benefit the business through enhanced market access and reduced tariffs.
The massive deal, dubbed as Comprehensive Economic Partnership Agreement (CEPA), was signed in the virtual presence of Crown Prince of Abu Dhabi Mohamed Bin Zayed Al Nahyan, and Prime Minister Narendra Modi of India.
I was pleased to meet with Prime Minister of India Narendra Modi today during an online summit aimed at strengthening the partnership between our two countries. We are committed to building upon our longstanding ties and exploring new opportunities for cooperation & development. pic.twitter.com/UUSUvqFLlr
— محمد بن زايد (@MohamedBinZayed) February 18, 2022
The agreement is said to be the first of its kind and is among the economic projects that the UAE has set out for the next 5 decades.
The trade and economic partnership will remove a major chunk of the customs tariffs on goods produced and shipped out from the countries and the trade alliance could touch $100 billion in the next five years from $60 billion-plus.
UAE commodities like aluminum, copper, and petrochemicals would benefit from the removal of tariffs, UAE officials said.
The deal also covers services, investments, intellectual property, and a commitment by the UAE to grant 140,000 employment visas to highly skilled workers from India by 2030.
Indian Prime Minister Narendra Modi said, “Trade, investment, energy, and people-to-people contacts have been the pillars of our cooperation. At the same time, there are possibilities of enhancing cooperation in several new areas”.
The deal is done! 🇮🇳 🤝 🇦🇪
Signed the pathbreaking #IndiaUAECEPA along with the UAE Minister of Economy H.E Abdulla bin Touq Al Marri.
Sky is the limit for our trade & economic ties as we commit to building a shared future & enhancing the prosperity of our people. pic.twitter.com/LJ70VJ8HcE
— Piyush Goyal (@PiyushGoyal) February 18, 2022
Reports suggest that the deal will formally take effect from early May, as the internal processes are yet to be completed.
Meanwhile, Abu Dhabi is pursuing similar trade and investment deals with Turkey and South Korea and expects to soon finalize bilateral negotiations with Israel and Indonesia, per reports.
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