On the UAE-India CEPA Council (UICC) – The UAE-India partnership has a new catalyst in play

Source: This post on the UAE-India CEPA Council (UICC) has been created based on the article “The UAE-India partnership has a new catalyst in play” published in “Live Mint” on 9^th January 2024.

UPSC Syllabus Topic: GS Paper 2 International Relations – Bilateral groupings and agreements involving India and/or affecting India’s interests.

News: The article discusses the recent growth in UAE-India bilateral relations due to Comprehensive Economic Partnership Agreement (CEPA). It also highlights the objectives of the UAE-India CEPA Council (UICC).

The United Arab Emirates-India relationship is one of the region’s most dynamic partnerships. It highlights the positive benefits that can be achieved through open, consistent and constructive dialogue; visionary leadership; and mutual respect.

It has shown exemplary progress in ensuring free and open trade, promoting the development of resilient and sustainable economies, to multilateral cooperation.

The Comprehensive Economic Partnership Agreement (CEPA) remains fundamental to the continued dynamism of this partnership.

What have been the outcomes of India-UAE CEPA?

The CEPA has led to:

1. Expanded market access for Emirati and Indian businesses seeking to enter each other’s respective markets
2. Significant decrease in tariffs.
3. Streamlined customs procedures.
4. Introduction of a series of robust and transparent regulations that support rules-based competition.

Due to this, UAE has become one of India’s most important economic partners. It has risen to the position of India’s 4^th largest investor, 3^rd largest trading partner and 2^nd largest export destination.

What have been the outcomes of the CEPA in addition to strengthened economic bonds?

According to the author, the CEPA has done much more than strengthen our economic bonds. This includes:

1. Led to much deeper and more nuanced (which consider all factors and stakeholders) relations.
2. Encouraged strategic and political alignment never seen before in the history of the relationship. This includes:
3. Support at Multilateral Fora: India’s support throughout the UAE’s presidency of CoP-28, and that of the UAE of India’s G20 presidency, are indicative of the mutual support.
4. BRICS Membership: UAE’s recent addition to the BRICS grouping will serve to further catalyse bilateral ties and promote peace and prosperity at the global level.

Apart from this, at this year’s Vibrant Gujarat Summit, the UAE-India CEPA Council (UICC) will be officially unveiled.

What will be the objectives of the UICC?

1. Outlet to Deepen Commercial Ties: It will provide a dynamic new outlet for the business communities of the two countries to deepen commercial ties.
2. Leverage India-UAE Strategic Partnership: The Council seeks to leverage the rapidly developing strategic partnership between the two governments.
3. Encourage Business Partnerships: It seeks to encourage partnerships across all levels of the two business communities. It will focus on critical spheres such as startups, women’s entrepreneurship, MSMEs and the services sector.
4. Holding Events to build Trust: It will facilitate a range of events that support trust, dialogue and open engagement among the business communities.

Thus, the Council will provide business communities with the resources they need to fully unlock the benefits and opportunities of CEPA.

Question for practice:

The India-UAE Comprehensive Economic Partnership Agreement (CEPA) has elevated the bilateral relations, economic and otherwise. Elaborate.