India, UAE Set To Review Trade Pact Amid Surge In Precious Metal Imports: Report

Indian and Emirati officials are expected to review their trade agreement this week amid concerns raised by Indian industry over a sharp increase in imports of precious metals from the United Arab Emirates, people familiar with the matter said.

India and the UAE signed the Comprehensive Economic Partnership Agreement (CEPA) in 2022 after just 88 days of negotiations. The agreement has become a template for similar trade pacts the UAE has since signed with many other nations.

An Indian government official, speaking on condition of anonymity, said the pact would be reviewed this week when a UAE government delegation led by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed Al Nahyan visits Mumbai and New Delhi. A second source, confirming the review, and the Indian government official downplayed the significance of the discussion and said that reviews took place from time to time.

Indian officials have said New Delhi was seeking a review of the agreement, including if rules of origin were being met. Sheikh Khaled, the son of UAE President Sheikh Mohamed bin Zayed, was unlikely to take part in the trade review, the sources said.

The Crown Prince, who is also his country’s deputy national security adviser, was due to arrive in India on Sunday, Abu Dhabi’s government media office announced on Saturday. The trade review has in part been prompted by complaints among Indian industry of a significant increase in precious metal imports from the UAE, the sources said.

India is one of the UAE’s largest trading partners and Indian citizens make up the largest community in the Gulf state, outnumbering Emiratis. Many work in sectors that are the backbone of the economy. The trade agreement came into effect in May 2022.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)