uae: UAE trade deal: India to reduce import duty on metals, dates, oil – Times of India


NEW DELHI: India is set to lower import duty on dates, metals, cement, cooking gas and crude oil from the UAE as part of the free trade agreement (FTA) that is expected to be implemented from May.
The details of the deal unveiled on Sunday during commerce & industry minister Piyush Goyal‘s visit to the Emirates showed that India will lower tariffs on all but 1,157 items, or 9.7% of the products, while UAE will exclude 0.7% of the goods from the trade agreement.
Starting May, India intends to remove import duty on almost two-thirds of its products under the Comprehensive Economic Partnership Agreement (CEPA) with the UAE. In contrast, its trade partner will immediately lower tariffs on over 80% of the goods.
Further, India will eliminate tariffs on another 18% goods over the next five to seven years with the concession to be extended to another 2% products in 10 years.
The FTA is likely to benefit about $26 billion worth of Indian products that are subjected to 5% import duty by the UAE. Overall, the UAE is offering duty elimination on over 97% of its tariff lines which account for 99% of Indian exports to the Emirates in value terms.
The immediate duty-free access for Indian goods is expected to benefit gems and jewellery, textiles, agricultural & fish products, leather, footwear, sport goods and pharma, the government said.
For the first time, there is a separate section of pharma to facilitate the export of Indian generic medicines. These drugs are expected to get automatic registration and marketing authorisation in the UAE for products with regulatory approvals from the US, Australia, the EU, Canada, Japan and the UK.
The government also sought to comfort the domestic industry, saying that several safeguards have been built into the CEPA to check misuse by third countries.


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