Free Trade Agreement to Facilitate Duty-free Exports to UAE

The free trade agreement between India and the United Arab Emirates (UAE), signed on 18 February, came into force on 1 May after all constitutional and legal proceedings surrounding the agreement were completed. 

Commerce Secretary BVR Subrahmanyam handed over the first shipment of jewelry products to the UAE on Sunday under the trade agreement called the Comprehensive Economic Partnership Agreement (CEPA) in New Delhi.

The gems and jewelry sector accounts for a significant proportion of India's exports to the United Arab Emirates and is expected to benefit significantly from tariff concessions under the agreement.

The United Arab Emirates offers general tariff exemptions on over 97% of tariff lines, which is equivalent to 99% of India's exports. Indian exporters are now gaining immediate duty-free market access in the labor-intensive sector of leather, shoes, gems, jewelry, and furniture.

Under the agreement, the total value of bilateral trade in commodities is expected to exceed $100 billion and the value of trade in services is expected to exceed $15 billion within five years

BVR Subrahmanyam has said,  the government will simplify the way exporters reach an agreement so that they can understand the provisions and make the most of them.