India-UAE CEPA likely to come into effect from May 1, will benefit labour oriented sectors

New Delhi, Feb 19 (KNN) Commerce Secretary BVR Subrahmanyam today said that India, UAE Comprehensive Economic Partnership Agreement (CEPA) is the final agreement, which is likely to come into effect from Labour Day i.e. May 1 this year.

CEPA signed between India and the UAE on Friday is likely to come into effect from the first week of May 2022, opening up a comprehensive array of gains for India in sectors like plastics, furniture, agricultural, and food products.

At least 10 lakh jobs opportunity will be created due to the trade pact between India and UAE. The CEPA comes opportunely when the UAE which is India's third-largest trade partner, is working with New Delhi to renew trade to a pre-pandemic level of USD 60 billion.

Describing the CEPA as a balanced, complete, and comprehensive economic partnership embracing all aspects of the bilateral ties, Goyal said it covers the widest possible array of subjects from free trade to digital economy, government procurement, rules of origin, customs procedures, government procurement, intellectual property rights, and e-commerce. 

It benefits labour oriented sectors like textiles, handloom Gems and jewellery, leather goods and footwear.

Piyush Goyal while addressing a press conference with Minister of Economy Abdulla bin Touq Al-Marri and Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi said, "There are certain formalities to be completed and it will be taken to the Cabinet," 

The process should take 60 days and after that, we are looking at Labour Day or the first week of May for making the CEPA effective. 

I have invited both the ministers to India in the first week of May when we propose to have a series of business roundtables and engagements in various cities of India to take the FTA to the people, Goyal added.

In a significant gain for India and as a first in the CEPA agreement, the UAE has agreed to automatic registration and market authorization for India in medicines in case of their regulatory approval in developed countries such as the USA, EU, UK, and Japan.

The agreement also has a permanent safeguard mechanism which can be resorted to in a situation of a sudden surge in imports along with strict rules of origin, which will prevent products from other countries through the CEPA route. (KNN Bureau)