After about 10 years, India is set to ink a free trade agreement next year…reports Asian Lite News
India’s Commerce and industry Minister Piyush Goyal, who said that the pact will create jobs and economic opportunities for both, has been holding intensive talks with various stakeholders to give final shape to the agreement, reports Mahua Venkatesh
After about 10 years, India is set to ink a free trade agreement next year. All indications are that Prime Minister Narendra Modi will formalise the proposed India-UAE Comprehensive Economic Partnership Agreement (CEPA) during his upcoming visit to Dubai. Sources said that India is now aggressively looking at inking bilateral trade agreements instead of multilateral ones especially in the new world geo-economic order, the post Covid 19 phase that has prompted many countries to scout for alternative supply chains.
Commerce and industry Minister Piyush Goyal, who said that the pact will create jobs and economic opportunities for both, has been holding intensive talks with various stakeholders to give final shape to the agreement.
For New Delhi, the thrust, sources said, will be a timely conclusion of the ongoing trade deal discussions. India is also looking at similar trade pacts with Bangladesh, European Union, and Australia among others.
However, in the case of the proposed India-UAE trade pact, a few issues including one on the “rule of origin” need to be addressed for maximum benefit, one of them said.
“There is a fair chance that a larger chunk of goods from other countries get routed through Dubai into India once the trade agreement is in place..that is one area we need to look at, measures need to be put in place so that the ‘rule of origin’ norm is not diluted,” Ajay Sahai Director general, Federation of Indian Export Organisation told India Narrative.
In November last year, India exited the much hyped Regional Comprehensive Economic Partnership (RCEP).
In the past, India entered into several free trade agreements, including one with the ASEAN (Association of Southeast Asian Nations) block.
“The trade agreements signed earlier have not yielded the desired results, while signing these pacts, we need to ensure that the results are fruitful for both,” Gopal Krishna Agarwal, BJP’s spokesperson on economic affairs said.
While RCEP is set to kick off from next year, sources said that India too needs to expedite the proposed trade pacts at the earliest to be able to cash in on the new economic dynamics.
Though India has exited the pact, other member countries including China are keen that New Delhi joins the RCEP.
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“We fully appreciate why India is unable to join the RCEP at this moment. But the door remains open, and we welcome India to do so when you are ready,” Singapore’s deputy prime minister Heng Swee Keat said earlier.
Boosting investments, trade with Abu Dhabi
Union Minister of Commerce and Industry Piyush Goyal on Tuesday held an interaction with Sheikh Hamed bin Zayed Al Nahyan, Managing Director of Abu Dhabi Investment Authority and discussed boosting investments and trade ties across key sectors between both countries.
“Held an interaction with His Highness Sheikh Hamed bin Zayed Al Nahyan, MD of Abu Dhabi Investment Authority. We had an extensive discussion on boosting investments & trade ties across key sectors between India & the UAE,” Goyal tweeted.
On Monday, Union Commerce Minister Goyal addressed the India Global Forum, UAE-2021 through a video conference.
Goyal said that India and the UAE will wrap up the Comprehensive Economic Partnership Agreement (CEPA) by next month.
“Hopefully by the end of this month or next month, we hope to conclude them (the negotiations) so that this would probably be one of the fastest trade agreements between two countries ever made,” he said.
Goyal said the agreement will be a mutually beneficial win-win solution for both countries, “provide market access to each other. Some of the elements of the agreement are the first of its kind, particularly for both countries.” (IndiaNarrative/ANI)