India-UAE Joint Committee Meeting Highlights Strong Bilateral Trade Growth Under CEPA

The second meeting of the Joint Committee (JC) under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) marked significant progress in enhancing the economic ties between the two nations. Both sides acknowledged the steady growth in bilateral trade during the first two years of CEPA’s implementation and expressed optimism about reaching the ambitious target of USD 100 billion in non-oil trade ahead of the 2030 timeline.

Key Discussions and Achievements

Held in the UAE, the meeting was co-chaired by Ajay Bhadoo, Additional Secretary of the Department of Commerce, Government of India, and His Excellency Juma Al Kait, Assistant Undersecretary for International Trade Affairs, Ministry of Economy, UAE. Wide-ranging discussions took place, focusing on enhancing trade relations, resolving key trade-related issues, and capitalizing on the growing economic partnership.

 Progress Since CEPA Implementation

Both countries reviewed the progress since the first Sub-Committee Meeting on Trade in Goods in January 2024. Notable achievements were highlighted, with both sides emphasizing the need for further collaboration to deepen trade relations.

Formation of a Technical Group for Trade Data

A significant outcome of the meeting was the agreement to form a technical group of experts to facilitate the timely exchange of trade-related data. This group will work on understanding each other’s statistical systems and harmonizing bilateral trade statistics. This will enable both countries to have comparable and accurate data, further strengthening mutual understanding and decision-making in trade matters.

Tariff Rate Quotas (TRQs) Implementation

India and the UAE reaffirmed their commitment to ensuring that UAE exporters benefit from the Tariff Rate Quotas (TRQs) provisions under CEPA. India has streamlined the process for allocating licenses under TRQs based on stakeholder feedback, allowing for more efficient export activities. Both countries pledged to work closely on ensuring the smooth implementation of these provisions.

Indian Jewellery Exposition Centre Proposal

India reiterated its request to designate the Indian Jewellery Exposition Centre in Dubai as a "Designated Zone." This designation would allow Indian jewellery manufacturers, even those not registered under UAE regulations, to benefit from concessional duties. The UAE expressed willingness to consider this proposal after consulting with relevant stakeholders, including federal tax authorities.

Addressing SPS and TBT Measures

Discussions on Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) measures were a crucial part of the meeting. India requested that the UAE recognize the i-CAS Halal scheme, which would streamline the certification process and enhance animal product exports to the UAE.

Pharmaceuticals and Food Safety

Both sides agreed to expedite the registration and reference pricing mechanism for pharmaceutical products, making it easier for Indian pharmaceutical companies to operate in the UAE market. Additionally, an agreement was reached to finalize a Memorandum of Understanding (MoU) on food safety, strengthening cooperation in this critical sector.

Expanding Trade in Services

The JC meeting also focused on trade in services, with both sides exchanging focal points and agreeing to hold the first Sub-Committee Meeting on Services Trade soon. India emphasized the importance of Mutual Recognition Agreements (MRAs) between professional bodies in both countries, which would allow professionals like chartered accountants, lawyers, and nurses to offer their services without additional certification. The development of an actionable plan for MRAs is expected to follow.

Addressing Trade Concerns

India raised concerns about the surge in imports of silver products, platinum alloys, and dry dates, urging the UAE to ensure compliance with rules of origin norms and prevent circumvention. The UAE agreed to examine these concerns and take appropriate action.

The meeting concluded with a commitment to hold the next Joint Committee meeting in India at a mutually convenient date. The visit by the Indian delegation reflects the strong dedication to regular exchanges and ongoing efforts to strengthen the friendship and cooperation between India and the UAE.

As India and the UAE continue to deepen their trade relations under CEPA, the prospects for achieving the USD 100 billion non-oil trade target before 2030 look promising. The formation of technical groups, streamlined processes, and the resolution of key trade issues all reflect the shared commitment to fostering a robust economic partnership. This growing economic relationship promises mutual benefits, contributing to the development and prosperity of both nations.