United Arab Emirates: Prime Minister’s visit: India-United Arab Emirates trade deal finalized

NEW DELHI: India and the United Arab Emirates have completed negotiations for a bilateral trade agreement, an announcement to be made during Prime Minister Narendra Modi’s visit to the West Asian country during the first week of 2022, which should boost trade with countries in the Gulf as well as in Africa.
In addition to lower tariffs, the trade pact – only the second since that with Mauritius – is expected to include key provisions to facilitate the movement of Indian professionals and workers to the Emirates. While the UAE is already the largest base in India’s diaspora, companies should be given more leeway to hire workers from the country, and some of the eligibility test requirements should also be relaxed, people told TOI. sources close to the deliberations.

In addition, there will be a post to signal easier investment standards as UAE entities are expected to inject money into the creation of critical infrastructure in India. On the import tariff front, some of the areas of interest to India, such as food products, should be granted concessions in order to be able to compete more favorably with products from other parts of the world. In turn, some of the products in the petrochemical value chain will benefit from lower tariff access in India. Government sources said that efforts had been made to ensure that imports from third countries were not channeled through minor added value to the United Arab Emirates, including those from other Gulf and Gulf countries. China.
The UAE is part of the Gulf Cooperation Council (GCC), which negotiated a free trade agreement with India several years ago, until talks were dropped. India as well as the GCC had suspended talks with several trading partners. The bilateral trade deal with the UAE also marks a significant shift in India’s stance, with the Modi government virtually halting talks with all countries until it lifts its inhibitions after exiting RCEP. due to the dominant presence of China.
Since then, he has started negotiations with the EU, UK, Australia and Israel with some of the FTAs ​​expected to be worked out in the coming months. With bilateral trade of $ 43 billion, the United Arab Emirates was India’s third-largest trading partner in the past fiscal year, behind China and the United States. From April to October of this year, it was the second largest export destination for Indian products.

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