India, UAE sign free trade agreement to boost economic ties

Commerce and Industry Minister Piyush Goyal says the pact opens up huge business opportunities for both sides

India and the United Arab Emirates (UAE) on Friday signed a free trade agreement (FTA) to give a fillip to bilateral trade and economic ties.

The agreement, dubbed the Comprehensive Economic Partnership Agreement (CEPA), was signed and exchanged by Commerce and Industry Minister Piyush Goyal and UAE Minister of Economy Abdulla bin Touq Al Marri.

The trade agreement was signed during a virtual summit held by Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan.

Briefing media after the signing of the pact, Mr. Goyal said this was a comprehensive and balanced trade agreement. "It opens up huge business opportunities for both sides. The agreement will help in doubling our bilateral trade," he said.

An official release stated that the agreement will provide significant benefits to Indian and UAE businesses, including enhanced market access and reduced tariffs. It is expected that the CEPA will lead to increase in bilateral trade from the current $60 billion to $100 billion in the next five years.

In September last year, India and the UAE formally launched negotiations for the trade agreement.

The pact covers areas including goods, services, rules of origin, customs procedures, government procurement, intellectual property rights, and e-commerce.