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The Commerce Secretary BVR Subrahmanyam said on Saturday that the India, UAE Comprehensive Economic Partnership Agreement is the final agreement, which is likely to come into effect from Labour Day i.e. May 1 this year.
The Comprehensive Economic Partnership Agreement (CEPA) signed between India and the UAE on Friday is likely to come into effect from the first week of May 2022, opening up a comprehensive array of gains for India in sectors like plastics, furniture, agricultural and food products.
At least 10 lakh jobs opportunity will be created due to the trade pact between India and UAE. The CEPA comes opportunely when the UAE which is India's third-largest trade partner, is working with New Delhi to renew trade to a pre-pandemic level of USD 60 billion.
"There are certain formalities to be completed and it will be taken to the Cabinet," Union Minister of Commerce and Industry Piyush Goyal told ANI while addressing a press conference with Minister of Economy Abdulla bin Touq Al-Marri and Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi.
"The process should take 60 days and after that, we are looking at Labour Day or the first week of May for making the CEPA effective. I have invited both the ministers to India in the first week of May when we propose to have a series of business roundtables and engagements in various cities of India to take the FTA to the people," Goyal added.
In a significant gain for India and as a first in the CEPA agreement, the UAE has agreed to automatic registration and market authorization for India in medicines in case of their regulatory approval in developed countries such as the USA, EU, UK and Japan.
The agreement also has a permanent safeguard mechanism which can be resorted to in a situation of a sudden surge in imports along with strict rules of origin, which will prevent products from other countries through the CEPA route.
Describing the CEPA as a balanced, complete and comprehensive economic partnership embracing all aspects of the bilateral ties, Goyal said it covers the widest possible array of subjects from free trade to digital economy, government procurement, rules of origin, customs procedures, government procurement, intellectual property rights, and e-commerce. It benefits labour oriented sectors like textiles, handloom Gems and jewellery, leather goods and footwear.
"New Frontiers, New Milestones. With the signing of #IndiaUAECEPA, PM @NarendraModiji has demonstrated India's vision & actions for the greater good. Both sides to promote greater trade & investment and intensify bilateral engagement in diverse areas," tweeted Piyush Goyal.
The leaders welcomed the establishment of a dedicated India Mart in Jebel Ali Free Zone and directed their respective officials to further promote two-way investments in infrastructure projects, including expediting work on establishing a dedicated investment zone for UAE companies and joint ventures which would focus on inter alia establishing a food corridor, read joint India-UAE vision statement.
Additionally, the leaders encouraged to create investment opportunities for Indian investors in establishing specialised industrial advanced technology zones in the Emirate of Abu Dhabi, integrating local value chains of the existing and future specialised economic zones in areas of logistics & services, pharmaceuticals, medical devices, agriculture, agri-tech, steel and aluminium, added the statement.
(With inputs from agencies)
