UAE Seeks to Enhance Trade Relations with India Through CEPA Expansion
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In an effort to boost its commercial activities, the UAE is actively looking to expand its scope of trade with India under the CEPA (Comprehensive Economic Partnership Agreement). The Middle-Eastern country aims to strengthen bilateral trade, which comes as a positive development for firms expanding globally. The Chief Operating Officer of the Dubai Multi-Commodities Centre (DMCC), Feryal Ahmadi, expressed their ambition, highlighting the pivotal role of India as the largest trading partner of the UAE.
The UAE has made significant efforts to explore new commercial avenues under the CEPA, which was signed in February 2022. Particularly, the country is keen to establish trade ties with India, with merchandise like agri-commodities and critical minerals. Ahmadi demonstrated the strategic importance of expanding these sectors under the agreement, which is likely to foster deeper economic ties between the two nations. She also pointed out the increasing significance of the other Free Trade Agreements and trade corridors, which include the India-Middle East-Europe Economic Corridor.
Role of DMCC in Strengthening Economic Partnerships
Ahmadi, while speaking at the launch of the report of the DMCC, titled “The Future of Trade”, highlighted how CEPA facilitates the reduction of tariffs and eliminates trade barriers. This enhances the access to these regions in the market. The report highlighted that the UAE-India CEPA was a prime example of the trade benefits that such agreements deliver.
The report also pointed out the strategic demographic location of the UAE and its business-friendly strategies. All these factors position the country as a crucial hub for regional trade and economic integration.
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Establishing Bilateral Trade Relations
With global economic dynamics evolving, the report identified new centers of economic activities emerging in Asia, particularly around China, India, and ASEAN. The multilateral agreements between the two countries significantly reduced tariffs and fostered regional economic cooperation. The proactive approach of the UAE in this regard demonstrates its commitment to fostering a sustainable economic growth environment.
The UAE continues to strive to consolidate its position as a key player in global trade dynamics. This is evident from its consistent efforts to broaden the scope of the CEPA with India. Naturally, international businesses are expanding to the UAE to capitalize on the growth opportunities.
Forward-thinking businesses eyeing a company formation in Dubai are closely coordinating with the IMC Group for professional consultancy and advice. With experts guiding them on the right path, enterprises can confidently embrace the growth trajectory and ensure legal compliance while expanding to the UAE.