India – UAE CEPA Negotiations
India and UAE launched the Comprehensive Economic Partnership Agreement in September 2021. The countries are to hold the third round of negotiations.
What is CEPA?
- CEPA is an economic deal signed between India and UAE in 2017.
- It is a free trade pact.
- It covers negotiation on trade and services, investment and other economic partnerships.
- It also includes competition, cooperation and Intellectual Property Rights.
- It also looks in to the regulatory aspects of trade between the countries.
Why is CEPA important?
As of March 2021, UAE is the third largest investor in India. The Indian companies have invested 85 billion USD in UAE. The major imports to India from UAE are petroleum products, stones, jewellery, gems. The major exports are minerals, precious metals, gems. With CEPA, the bilateral trade is to increase to 100 billion USD within 5 years.
What are the other types of agreements India signs?
- PTA: Preferential Trade Agreement: This focuses on reducing the import or export duties of specific goods.
- CECA: Comprehensive Economic Cooperation Agreement: It covers negotiation on Tariff Rate Quotas and trade tariff.
- BIT: Bilateral Investment Treaty: Under this agreement, the countries decide on the conditions for private investment
- TIFA: Trade and Investment Framework Agreement: It establishes a framework to expand the trade.
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Month: Current Affairs - December, 2021