Third Anniversary of India-UAE CEPA
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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BEFORE: Indian gems and jewelry faced a 5 percent import duty when entering the UAE market. NOW: Zero duty access is granted to Indian gems and jewelry, leading to a massive surge in export volumes.
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BEFORE: Indian pharmaceutical products faced lengthy regulatory hurdles and delays for market entry in the UAE. NOW: The UAE grants automatic registration and marketing authorization within 90 days for Indian medicines that are already approved in developed countries like the US or UK.
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BEFORE: Free trade agreements lacked stringent checks on third-party goods, risking the dumping of products from non-partner countries. NOW: Strict 'Rules of Origin' criteria are enforced, generally requiring 40 percent value addition in India or the UAE to qualify for tariff concessions.
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BEFORE: Cross-border financial transactions relied heavily on SWIFT and international gateways with higher costs. NOW: Bilateral financial integration was accelerated post-CEPA, resulting in the linking of India's UPI with the UAE's AANI system, and the RuPay card with the UAE's Jaywan card.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Which of the following statements is/are correct regarding the India-UAE Comprehensive Economic Partnership Agreement (CEPA)? 1. It aims to increase bilateral non-oil trade to $100 billion by the year 2030. 2. It includes a 'Rules of Origin' clause mandating a minimum value addition to prevent third-country routing of goods.