Emphasizing that the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE will benefit both the countries, Abdullah bin Touq Al Marri, UAE Minister of Economy, said Mint Its companies will benefit from frictionless access to the world’s fifth-largest economy and a rapidly growing middle class, it said in an exclusive interview over email. Allowing companies to access the government procurement process for the first time will open up investment opportunities for both sides, the UAE minister said after signing the agreement with India’s commerce and industry minister Piyush Goyal on Friday. He added that UAE companies are exploring investment opportunities in India’s key sectors such as logistics, construction, infrastructure, telecommunications and renewable energy.
The CEPA signed between India and the United Arab Emirates today removed duty on 80% of products. Do you see room for further growth in the coming years?
With the tariff removed on 80% of the products, there is not much to go on. But we expect to reach 100% in the next few years. The entire purpose of CEPA is to improve market access for our businesses in both countries. The whole process has been about leveling the playing field. Tariff elimination covers key sectors such as aluminum, copper, steel, polyethylene, polypropylene and other goods and services from various sectors. But it is important to note that we have made every effort to ensure that this CEPA is for the benefit of both parties.
How does the agreement help in trade and investment in both the countries? What sectors are UAE investors looking for investment in India?
The UAE and India already enjoy a number of high-level joint ventures in priority areas, reflecting the urgency to develop solutions in areas such as solar energy, food security, logistics infrastructure, telecommunications and advanced technology . So we see those collaborations increasingly with more opportunities for expansion. But it is a deal that will allow the private sector to decide where the opportunities lie. By lowering tariffs on 80% of products, it is about accelerating the flow of goods and services and encouraging cooperation and joint ventures. We are offering special assistance to SMEs, who are the backbone of both the economies.
Is government procurement also part of the trade agreement?
Yes, for the first time companies will be allowed to access the government procurement process of both the countries.
Which sectors will particularly benefit from CEPA?
It is important to point out that this deal has been structured to ensure maximum benefit to both parties. For example, tariff elimination covers key sectors such as aluminum, copper, steel, polyethylene, polypropylene, other goods and services from various sectors. A total of 11 service sectors and over 100 sub-sectors were part of the negotiations, which include professional services (professional services – computer accounting, real estate, advertising packaging, etc.), telecommunications services, construction and related services, educational services, and other services. services, environmental services, financial and insurance services, healthcare and social services, tourism and travel related services (including hotel travel agency services); Recreational, cultural and sporting services, and transport services (including sea and air transport services, and airport services and repairs).
India seeks to achieve substantial gains in trade and investment through important bilateral agreements, what does this have for the UAE?
This CEPA has been structured for the benefit of both the parties. We don’t see it as an advantage to one side and a loss to the other. From the UAE’s perspective, this CEPA is part of a bold series of initiatives to pave the way for growth and opportunity for the next 50 years. The goal was clear: doubling the size of the economy from AED 1.4 trillion to AED 3 trillion in 2030. This required bold new strategies for diversification. In addition, as a response to the global pandemic, we have sought to rebuild our trade partnership, accelerate the free flow of goods, strengthen supply chains, increase trade volume from the UAE, as a facilitator of global trade. I understood the need to enhance my position. , and accelerate investment and joint venture opportunities. This CEPA is an important part of our strategy to make our economy a dynamic, resilient and future-proof economy to meet the challenges of the post-Covid world.
How does partnership with India help UAE?
Our companies will benefit from access to government procurement for the first time, the world’s fifth largest economy, a rapidly growing middle class, investment opportunities in sectors such as logistics, construction, infrastructure, telecommunications and renewable energy. Platform for collaboration and expansion. UAE as a whole will benefit from greater trade volume and the creation of 140,000 jobs in priority sectors
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