• Union Minister Piyush Goyal has said India and the UAE will conclude negotiations on the Comprehensive Economic Partnership Agreement (CEPA) by next month. 

• While addressing the India Global Forum UAE 2021 through video conference he said this would probably be one of the fastest trade agreement between two countries ever made.

• CEPA will enhance bilateral trade and investment flows and it will assist in  post-COVID economic recovery and future economic growth.

• A new strategic economic agreement is expected to increase bilateral trade in goods to $100 billion within five years of the signed agreement and increase trade in services to $15 billion.

India-UAE trade relations

• The UAE is one of the top trading partners of India. Bilateral trade between India and the UAE stood at $43.3 billion in 2020-21. Exports were $16.7 billion and imports aggregated at $26.7 billion in 2020-21.

• The UAE is the eighth-largest investor in India, having invested $11 billion between April 2000 and March 2021, while investment by Indian companies in the UAE is estimated to be over $85 billion.

• India’s major exports to the UAE include petroleum products, precious metals, stones, gems and jewellery, minerals, food items such as cereals, sugar, fruits and vegetables, tea, meat, and seafood, textiles, engineering and machinery products, and chemicals.

• Imports from the UAE include petroleum and petroleum products, precious metals, stones, gems and jewellery, minerals, chemicals and wood and wood products. 

• India imported $10.9 billion of crude oil from the UAE in 2019-2020.

CEPA with other countries

• CEPA between India and South Korea was signed in August 2009 which came into force from January 1, 2010. The two sides have commenced negotiations for the upgradation of CEPA.

• CEPA between India and Japan was signed in February 2011 which came into force in August 2011. India has requested Japan to initiate the process of review of the Agreement to ascertain mutual gain to both the countries. 

• India and Bangladesh are engaged in strengthening the trade relations by exploring prospects of entering into a bilateral CEPA covering goods, services and investment.

• In 2010, Canada and India launched negotiations toward a Comprehensive Economic Partnership Agreement (CEPA). So far, 10 rounds of negotiations have been held, with the last round held in New Delhi in August 2017 followed by an inter-session meeting held in February 2018.

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