Official: UAE seeks to broaden trade opportunities with India through CEPA

The United Arab Emirates (UAE) is set to expand the scope of trade and services covered under the Comprehensive Economic Partnership Agreement (CEPA) with India in a bid to boost bilateral trading volume, a senior UAE official revealed on Thursday.

Feryal Ahmadi, the Chief Operating Officer of the Dubai Multi-Commodities Centre (DMCC), highlighted the UAE’s interest in exploring the agri-commodity potential and adding other sectors, including critical minerals, to the existing CEPA agreement with India. The CEPA was signed on February 18, 2022, with the aim of strengthening economic ties between the two countries.

India holds a significant position as the largest trading partner for the UAE, and Feryal emphasized the importance of tapping into the agri-commodity market and expanding trade in critical minerals through the CEPA. She also mentioned the potential of the India-Middle East-Europe Economic Corridor and the growing trend of countries entering into bilateral free trade agreements to enhance regional trading.

During a presentation of the DMCC report titled “The Future of Trade” in Singapore, Feryal highlighted the trade growth between UAE and India under the CEPA. The report underscored the benefits of free trade agreements in reducing tariff barriers and increasing market access, citing the example of Gulf Cooperation Council countries like the UAE expanding ties with Asian nations such as India, Indonesia, Israel, Turkey, and Cambodia.

The report also pointed out that there are currently 26 Free Trade Agreements in progress, with countries like the UAE and ASEAN member states poised to benefit from their neutral geopolitical positions and diverse trade relationships. It recommended that governments foster partnerships and trade agreements with these nations to facilitate increased trade flows and investment opportunities.

Furthermore, the report highlighted the formation of new trade hubs in Asia, particularly around ASEAN, China, and India, as well as in North America. It noted the importance of multilateral agreements in reducing tariffs, creating common markets, and boosting regional trade.

In conclusion, the UAE’s efforts to expand the scope of the CEPA with India reflect a commitment to enhancing bilateral trade and economic cooperation. By exploring new sectors and opportunities for collaboration, both countries stand to benefit from increased trade volumes and investment flows. The evolving landscape of regional trade agreements and partnerships underscores the importance of fostering strong economic ties to drive growth and prosperity in the region.