By Alexander Cornwell and Shivangi Acharya
Indian and Emirati officials are set to review their trade agreement this week, as Indian industry voices worries about a surge in imports of precious metals from the United Arab Emirates, according to sources familiar with the matter.
The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE, signed in 2022 after just 88 days of negotiations, is under scrutiny. The pact has served as a blueprint for similar trade deals the UAE has forged with other countries.
An Indian government official, speaking anonymously, revealed that the review will take place during a visit by a UAE government delegation led by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed Al Nahyan to Mumbai and New Delhi.
While sources confirmed the review, they downplayed its significance, stating that such assessments are routine. Both the Indian trade ministry and the UAE ministry of economy have not responded to requests for comment on the matter.
Indian officials have expressed the need for a review of the agreement, particularly to ensure that rules of origin are being adhered to.
The trade review, prompted in part by complaints from Indian industries, is also being watched due to a notable increase in precious metal imports from the UAE.
India is a major trading partner for the UAE, with Indian citizens forming the largest expatriate community in the Gulf country. Many Indians work in key sectors that drive the Emirati economy.
The trade agreement, which came into effect in May 2022, plays a crucial role in shaping economic ties between the two nations.
Analysis:
The review of the trade agreement between India and the UAE highlights the importance of monitoring international trade deals for both countries. Increased imports of precious metals from the UAE could impact various sectors of the Indian economy, potentially affecting businesses and consumers alike. As the discussions unfold, it will be crucial to ensure that the agreement's terms are being met, safeguarding the interests of both nations and fostering a balanced trade relationship.