Footwear among 1,157 products excluded in India-UAE CEPA

The product categories include jewellery (except for 2.5 tons quota for gold jewellery), plastics, scrap of aluminium and copper, most automobiles and automotive components, medical devices, dairy products, fruits, cereals, sugar, food preparations, tobacco products, dyes and pigments, natural rubber, tyres, and processed marble.

According to FAQs prepared by the commerce ministry on the pact, the CEPA is likely to benefit about $26 billion worth of Indian products that are subjected to 5 per cent import duty by the United Arab Emirates.

The pact has also stringent product-specific rules of origin that reflect the requirement for substantial processing. The certificate of origin, a key document required to avail the duty benefits under the pact, will be issued by the UAE ministry of economy to prevent circumvention of the rules of origin criteria.

The agreement has built-in protection to ensure that no third country product enters Indian market through the UAE and benefit from concessional tariffs without being substantially transformed, the FAQ document added.

A concept of review of the agreement has been put in place to take stock of the operation of the pact and based on the same, suggest the future course of action.

The agreement is operationalised and implemented through a joint committee, which would meet biennially to review the agreement to consider additional measures to further enhance the pact.

To promote trade in services, both the countries have undertaken commitments in 11 broad categories, including business, communication, construction, educational and financial.

Market access has been offered for business visitors, intra corporate transferees, and contractual services suppliers in a range of services sectors.

Indian Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed Al Nahyan in February this year held a virtual summit and witnessed the signing of the CEPA by Indian commerce and industry minister Piyush Goyal and UAE’s economy minister Abdulla bin Touq Al Marri.

ALCHEMPro News Desk (DS)