India and the United Arab Emirates have made strong
attempts in recent months to strengthen economic balance with close cooperation
of each other. They have been moving closer to finding common financial grounds
with each other and CEPA is the start of the whole process.
What is CEPA?
CEPA or Comprehensive Economic Partnership Agreement is an
agreement between the two countries that in length discussed the benefits that
they might witness with certain investments in coming years. It is set to
benefit almost 90 percent of trade which includes both exports and imports
between the two nations.
India- UAE
Commitment to the agreement
India has shown great commitment to the talks and hence
moved further with detailed agreement with the UAE. Commerce and Industry
Minister Piyush Goyal believed that the deal has brought in a permanent
mechanism to safeguard exporters and
businesses from both the countries.
The two nations are slowly progressing towards a financial
confidence in each other after already strengthening their diplomatic ties to
the core. Relations between the two further enhanced when the current Prime
Minister Narendra Modi came to power and became the first Indian leader to
visit the UAE in 2015 in 34 years.
This resulted in Abu Dhabi’s crown prince visiting India
in 2016. That was the start of the strong foundation for the diplomatic ties
and now the confidence has grown to the extent that a deal as comprehensive as
CEPA has been agreed by the two sides.
Such deals take years for confirmations. It is a life
changing structure which takes two sides very long to agree on and hence India
and the UAE both agreed on the deal quickly shows the negotiation and
acceptance skills.
CEPA is extremely beneficial for the two sides given it
provides a sense of assurance by removing any kind of possibilities and
obstacles that would come in the way of facilitation in products and services.
One of the key changes it will bring is removing the 80 percent tariff lines
that covers India 90 percent of the export value.
The UAE has shown
immense involvement in the economic agreement with India. One such example of
it was when in February this year, the UAE and India signed the agreement to
increase the volume of trade so that the value courses more than $100 billion and also results in creating
more jobs.
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