Other BriefingsUAE to Address India’s Concerns Over Increased Silver, Platinum Alloy, and Dry Date Imports Under CEPA
The United Arab Emirates (UAE) has agreed to address India’s concerns over a significant rise in imports of silver products, platinum alloy, and dry dates, taking advantage of lower tariffs under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). The agreement was signed in February 2022 and came into effect in May 2022, facilitating duty-free trade between the two nations.
During a recent meeting of the joint committee under CEPA, Indian officials raised concerns about the surge in these imports, requesting the UAE to ensure compliance with the rules of origin (ROO) norms and prevent circumvention of value-addition requirements. These rules are critical in ensuring that products benefiting from tariff reductions under the trade pact are genuinely manufactured or sufficiently processed within the UAE.
The UAE has agreed to examine India’s concerns, according to an official statement from New Delhi.
The CEPA agreement allows for the import of unlimited amounts of duty-free gold, silver, platinum, and diamonds into India over the next few years, part of a broader effort to boost bilateral trade. However, the recent increase in imports has prompted India to investigate the reasons behind this surge, despite stringent ROO agreed under the pact.
Both sides also discussed expanding trade relations, aiming to achieve US$100 billion in non-oil trade before 2030. The UAE, India’s third-largest trade partner, saw US$11.45 billion worth of Indian exports during the first seven months of the ongoing financial year, with imports reaching US$31.14 billion. The UAE is also India’s second-largest export market.
The meeting of the joint committee under CEPA concluded with an agreement to set up technical expert groups to improve the exchange of trade-related data and ensure better alignment of bilateral trade statistics. This will enable a more comprehensive analysis of trade patterns and further strengthen the economic ties between the two nations.
The discussions reaffirm the UAE’s commitment to maintaining transparent trade practices and building stronger economic relations with India.
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