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

UAE Explores Expansion of CEPA with India to Boost Bilateral Trade

The United Arab Emirates (UAE) is actively pursuing an expansion of the trade and services covered under the Comprehensive Economic Partnership Agreement (CEPA) with India. This effort, aimed at bolstering bilateral trade volumes, was articulated by Feryal Ahmadi, the Chief Operating Officer of the Dubai Multi-Commodities Centre (DMCC), during discussions held in Singapore. Ahmadi underscored the paramount importance of India as the UAE’s largest trading partner and expressed the Emirates’ keen interest in diversifying the CEPA framework to include sectors beyond the current scope.

In particular, Ahmadi highlighted the UAE’s focus on exploring the potential of agri-commodities and incorporating additional sectors such as critical minerals into the CEPA framework. This move signals a strategic intent to deepen economic ties and broaden the spectrum of trade opportunities between the two nations. By expanding the scope of CEPA, the UAE aims to facilitate smoother trade flows and foster greater economic cooperation with India.

Moreover, Ahmadi emphasized the growing significance of other Free Trade Agreements (FTAs) and trade corridors in enhancing regional economic integration. The mention of the India-Middle East-Europe Economic Corridor underscores the UAE’s commitment to exploring diverse avenues for economic collaboration beyond bilateral agreements. This strategic approach reflects the Emirates’ broader vision of positioning itself as a key player in regional trade dynamics.

The presentation of the DMCC report, titled “The Future of Trade,” further underscored the substantial growth potential inherent in the UAE-India CEPA. The report highlighted the tangible trade benefits derived from FTAs, including the reduction of tariff and trade barriers, which in turn, enhances market access across regions. By leveraging the advantages offered by FTAs, both the UAE and India stand to gain in terms of expanded trade opportunities and increased economic growth.

Furthermore, the report shed light on the evolving landscape of global trade, with a particular focus on the Gulf Cooperation Council (GCC) countries, including the UAE. These nations have actively pursued bilateral ties with various Asian nations, including India, Indonesia, Israel, Turkey, and Cambodia. The report’s revelation of 26 FTAs in progress underscores a broader trend towards regional economic integration and trade liberalization, with the UAE at the forefront of these efforts.

In addition, the report identified opportunities for the UAE and ASEAN member states to capitalize on their geopolitical neutrality and diverse trade relationships to foster increased trade flows and investment opportunities. By leveraging their strategic geographic locations and trade-friendly policies, these nations can emerge as pivotal hubs for regional trade and economic integration.

Moreover, the report highlighted the emergence of new economic centers in Asia, particularly around ASEAN, China, and India, as well as in North America. This trend, bolstered by recent multilateral agreements aimed at reducing tariffs and boosting regional trade, underscores the shifting dynamics of global commerce. Overall, the report emphasized the imperative of fostering partnerships and trade agreements to facilitate economic growth and integration on a regional scale, with the UAE positioned as a proactive participant in this transformative process.