UAE aims to broaden trade scope under CEPA with India: official
Chief Operating Officer of DMCC Highlights Agri-Commodities and Critical Minerals as Key Sectors for Enhanced Economic Partnership
UAE Seeks to Expand Trade Scope Under CEPA with India to Boost Bilateral Trade Volume
The United Arab Emirates is looking to expand the scope of trade and services covered under the Comprehensive Economic Partnership Agreement (CEPA) with India to further accelerate bilateral trading volume, a senior UAE official said on May 30. India and the UAE signed the historic CEPA on February 18, 2022, to further boost bilateral trade and economic ties.
Feryal Ahmadi, the Chief Operating Officer of the Dubai Multi-Commodities Centre (DMCC), emphasized that the UAE is looking at the potential of agricultural commodities and is working on adding other critical sectors, including minerals, under the CEPA. She highlighted that the expansion of the agreement’s scope is aimed at enhancing the trading volume between the two nations. Ahmadi reiterated that the UAE considers India its largest trading partner and sees significant opportunities in expanding the agricultural commodities sector. Additionally, there is an intention to include other critical sectors like minerals in the partnership, which would further deepen the economic ties.
The United Arab Emirates is looking to expand the scope of trade and services covered under the Comprehensive Economic Partnership Agreement (CEPA) with India to further accelerate bilateral trading volume, she said. Emphasising the importance of India as the largest trading partner for the Emirates, she said, “We are absolutely looking at agri-commodity potential and working on adding other sectors including critical minerals under CEPA.” Ms. Ahmadi also underlined the growing importance of other Free Trade Agreements and trade corridors, including the potential of the India-Middle East-Europe Economic Corridor. The focus on agricultural commodities and critical minerals indicates a strategic move to diversify and strengthen the economic relations between the UAE and India. This expansion is seen as a means to tap into new markets and opportunities, leveraging India’s vast agricultural sector and the UAE’s strategic position as a global trading hub.
She sees more and more countries working on bilateral free trade agreements and the regionalization of trading among countries. This trend, according to Ahmadi, is reshaping global trade dynamics, with countries increasingly forming bilateral agreements to facilitate smoother and more efficient trade. The presentation of a DMCC report titled “The Future of Trade” in Singapore highlighted the growth potential of UAE-India CEPA. The report underscored the undeniable trade benefits of such agreements, including the reduction of tariffs and trade barriers, which in turn increases inter-regional market access. The report illustrated how the Gulf Cooperation Council countries, including the UAE, have expanded their bilateral ties, particularly with Asian nations like India, Indonesia, Israel, Turkey, and Cambodia.
Currently, there are 26 Free Trade Agreements (FTAs) in progress, according to the report. This indicates a robust trend towards forming strategic economic partnerships. Countries like the UAE and ASEAN member states are positioned to benefit from their geopolitical neutrality and diverse trade relationships, which offer a stable platform for enhanced trade activities. The report suggested that governments should foster partnerships and trade agreements with these powers to facilitate increased trade flows and investment opportunities. By leveraging their strategic geographic locations and trade-friendly policies, these countries can serve as key hubs for regional trade and economic integration.
The report also discussed the concept of regionalization, noting that new centres of gravity are forming in Asia, around ASEAN, China, and India, as well as in North America. This shift is supported by relatively new multilateral agreements committed to reducing tariffs, creating common markets, and boosting regional trade. These developments highlight the dynamic nature of global trade, where regional hubs are becoming increasingly significant in driving economic growth and integration.
Overall, the UAE’s efforts to expand the scope of CEPA with India reflect a strategic approach to enhancing bilateral trade and economic cooperation. The focus on agricultural commodities and critical minerals, along with the emphasis on forming new free trade agreements and trade corridors, underscores the UAE’s commitment to becoming a central player in the global trade landscape. This initiative is expected to not only boost trade volumes but also create new opportunities for economic collaboration and growth between the UAE and India.
