UAE-India economic agreement to lower tariffs, duties in bid to boost trade
India is one of the UAE’s largest trading partners, with oil, jewelry and textiles forming a bulk of the trade.
An economic agreement between the United Arab Emirates and India will soon boost bilateral trade.
The UAE-India Comprehensive Economic Partnership Agreement, signed in February, will come into effect May 1. The deal reduces numerous tariffs and duties affecting trade between the two countries. The following are some key highlights from the agreement, per the UAE Ministry of Economy and the Mumbai-based Economics Law Practice:
- elimination or reduction of more than 80% of tariffs on goods exported from the UAE to India
- elimination of the 5% duty on Indian textile, jewelry and leather exports to the UAE, among others
- immediate elimination of duties on 90% of Indian exports to the UAE
- phased elimination of duties on 9% of Indian exports to the UAE, including electronics and chemicals
- establishment of a mechanism for consultations on non-tariff measures that may create barriers to trade
- establishment of a platform for small- and medium-sized businesses in both countries to expand customer bases and collaboration
Various food items, rubber products, toys, soaps and other goods are excluded from the deal.
An e-platform specifying the agreement’s stipulations for businesses launched today, the official Emirates News Agency reported.
