INDIA UAE COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT

Disclaimer: Copyright infringement not intended.

Context

• The 1st Meeting of the Joint Committee (JC) of the India-UAE Comprehensive Economic Partnership Agreement (CEPA).

Details

• India and UAE successfully held the 1st Meeting of the Joint Committee (JC) of the India-UAE Comprehensive Economic Partnership Agreement (CEPA).
• The meeting took place during the visit of a high-level delegation from the UAE to India, led by H.E. Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the UAE.
• The agreed minutes of the meeting were signed, marking the successful conclusion of the 1st Meeting of the Joint Committee.
• The visit also marked the India leg of the 1st Anniversary of the Implementation of the India-UAE CEPA.

Review of Bilateral Trade under CEPA:

• Both sides reviewed the bilateral trade under the CEPA and discussed various matters related to its implementation.
• They agreed to operationalize the established committees/subcommittees/technical council under the CEPA.
• A new sub-committee on Trade in Services was created to address specific issues in this area.
• The two sides agreed to address any hindrance to CEPA implementation or its usage by businesses on both sides.
• Mutual Exchange of Preferential Trade Data
• The parties agreed on mutual exchange of preferential trade data on a quarterly basis for effective monitoring of the CEPA.

Creation of UAE-India CEPA Council (UICC):

• Both sides agreed to set up the UAE-India CEPA Council (UICC) as a B2B collaboration mechanism.
• The UICC will focus on MSMEs and start-ups, aiming to build greater economic linkages and optimize CEPA benefits.

WTO Matters and MC13:

• Views on WTO matters were exchanged during the meeting.
• The 13th Ministerial Conference of the WTO (MC13) is scheduled to be held in Abu Dhabi, United Arab Emirates, during the week of 26 February 2024.

Trade Targets and Achievements:

• The ministers set a target of USD 100 billion in trade in non-petroleum products by 2030, up from the current USD 48 billion.
• Bilateral trade between India and the UAE reached an all-time high of around USD 84.84 billion during FY 2022-2023, growing at around 16.5%.
• India's exports to the UAE recorded a remarkable growth of 12%, reaching USD 31.6 billion in 2022-2023.

B2B Event and Joint Press Conference:

• A B2B event was organized by the Department of Commerce in partnership with the Confederation of Indian Industry (CII).
• Both ministers addressed a joint press conference highlighting the achievements and successful conclusion of the 1st meeting of the Joint Committee.
• Union Minister Shri Piyush Goyal emphasized the transformative impact of the CEPA and urged businesses to forge new ties and build on the momentum.
• E. Dr. Thani bin Zeyoudi reaffirmed the commitment of the UAE Government to strengthen bilateral relations.

Other Initiatives:

• Other important initiatives discussed between the two sides include Virtual Trade corridors, potential set-up of offices of the Abu Dhabi Investment Authority in GIFT City, UPI partnership, and the development of an efficient system for direct Rupee-Dirham trade.

Importance of Economic Ties:

• Commerce Secretary, Shri Sunil Barthwal, highlighted the significance of the economic ties between India and the UAE.
• The B2B event was well attended by representatives from the business communities of both countries and senior officials.

About UAE

• The United Arab Emirates (UAE) is a country located in the Middle East on the Arabian Peninsula.
• It is a federation of seven emirates, namely Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah.
• The UAE is known for its modern infrastructure, booming economy, and cultural diversity.

Geography and Climate:

• The UAE is situated on the eastern side of the Arabian Peninsula, bordering the Persian Gulf and the Gulf of Oman.
• The country has a desert climate with hot summers and mild winters.
• Sand dunes and vast desert landscapes are characteristic features of the UAE's geography.

Economic Development:

• The UAE has experienced rapid economic growth, primarily driven by its petroleum and natural gas reserves.
• In recent years, the country has diversified its economy and focused on sectors such as finance, tourism, real estate, and manufacturing.
• Dubai and Abu Dhabi, the two largest emirates, have become major global business hubs and tourist destinations.

Infrastructure and Landmarks:

• The UAE is renowned for its impressive infrastructure, including iconic structures like the Burj Khalifa, the world's tallest building located in Dubai.
• Palm Jumeirah, an artificial archipelago, and the Sheikh Zayed Grand Mosque in Abu Dhabi are other notable landmarks.
• The country has well-connected airports, seaports, and a modern transportation system.

Cultural Heritage and Society:

• The UAE's society is a blend of traditional Arab customs and modern influences.
• Islam is the predominant religion, and Arabic is the official language.
• Emirati hospitality, traditional music and dance (such as the Al Ayala dance), and local cuisine are integral parts of the country's cultural heritage.

Multicultural Society and Expatriate Population:

• The UAE has a large expatriate population, contributing to its multicultural society.
• Expatriates from various countries work and live in the UAE, bringing diverse perspectives and skills.
• The country offers a vibrant expatriate lifestyle with a range of amenities and international communities.

Political Structure and Leadership:

• The UAE is governed as a federation, with each emirate having its ruler.
• The President of the UAE is elected by the Supreme Council of Rulers, which consists of the rulers of the seven emirates.
• The ruling families play a significant role in the country's political structure.

Future Plans and Vision:

• The UAE has ambitious plans for the future, the UAE Centennial 2071.
• These initiatives aim to further diversify the economy, invest in innovation and technology, and create a sustainable future for the country.

India UAE Relations

• India and the United Arab Emirates (UAE) share historical and cultural ties dating back centuries.
• Trade and cultural exchanges have been prevalent between the two regions for centuries, facilitated by geographical proximity and historical trade routes.

Indian Diaspora in the UAE:

• The UAE is home to a large Indian diaspora, which plays a crucial role in strengthening people-to-people ties.
• Indian expatriates in the UAE contribute to the country's economic growth and cultural diversity.
• The UAE government has implemented various measures to protect the rights and welfare of the Indian community.

High-Level Visits and Exchanges:

• Regular high-level visits between India and the UAE have enhanced bilateral relations.
• These visits involve interactions between top government officials, ministers, and business delegations from both countries.
• The exchange of visits promotes dialogue, cooperation, and collaboration across various sectors.

Strategic Cooperation and Security:

• India and the UAE share a common interest in promoting regional stability and security.
• Both countries have cooperated in counter-terrorism efforts, intelligence sharing, and maritime security initiatives.
• The UAE has supported India's position on cross-border terrorism and has taken steps to curb financing of terrorism.

Cultural and People-to-People Exchanges:

• Cultural exchanges between India and the UAE promote mutual understanding and appreciation of each other's heritage.
• Festivals, music, dance, and art events showcase the cultural diversity of both nations.
• Tourism between the two countries has seen significant growth, with Indian tourists visiting the UAE for leisure, business, and medical tourism.

Defense and Military Cooperation:

• India and the UAE have strengthened defense cooperation through joint military exercises, training programs, and defense equipment purchases
• Cooperation in the defense sector includes naval exercises, intelligence sharing, and joint efforts to combat piracy and ensure maritime security.

Humanitarian Assistance and Disaster Relief:

• India and the UAE have collaborated in providing humanitarian assistance and disaster relief during natural disasters and emergencies.
• The two countries have extended support to each other during times of crisis, reflecting the strong bonds of friendship and solidarity.

Major Developments in India UAE Relations

• In 2015, Prime Minister Narendra Modi visited the UAE and signed a Comprehensive Strategic Partnership Agreement between the two countries. This agreement covers a wide range of areas, including trade, investment, defense, security, and culture.
• In 2016, the UAE invested $75 billion in India's infrastructure sector. In 2017, the UAE and India agreed to cooperate on renewable energy projects.
• In 2018, the UAE and India signed a Memorandum of Understanding on defense cooperation.
• In 2020, the UAE and India signed a Free Trade Agreement.

https://pib.gov.in/PressReleasePage.aspx?PRID=1931759