Indian and Emirati officials are expected to review the Comprehensive Economic Partnership Agreement (CEPA) this week, following concerns from Indian industries regarding a significant rise in precious metal imports from the United Arab Emirates (UAE). The trade agreement, signed in 2022, marked a landmark pact, negotiated in just 88 days.
Concerns Over Precious Metal Imports
Sources familiar with the matter revealed that Indian industries have raised complaints about the surge in precious metals entering the Indian market from the UAE. As part of the review, Indian officials will examine if the rules of origin were adhered to under the trade agreement. The sharp increase in these imports has caused some unrest in India’s domestic markets.
Routine Trade Agreement Review
While the review comes in response to these concerns, officials have downplayed the significance of the discussions. A second source confirmed that such reviews are routine and happen periodically. However, this review coincides with a UAE government delegation visit led by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed Al Nahyan.
Crown Prince’s Visit to India
The Crown Prince, who is also the UAE’s deputy national security adviser, is scheduled to visit Mumbai and New Delhi this week. Although sources indicate that Sheikh Khaled will not participate directly in the trade review, the timing of the visit adds weight to the ongoing economic relationship between the two nations.
India and UAE: Key Trading Partners
India remains one of the UAE’s largest trading partners, and Indian nationals form the largest expatriate community in the UAE, many of whom contribute significantly to key sectors of the Emirati economy. The strong trade relations between both countries have led to rapid economic cooperation, with CEPA serving as a model for UAE’s other trade pacts.
