GTRI Urges Government to Reexamine India-UAE Free Trade Agreement

The Global Trade Research Initiative (GTRI) has called on the government to review certain provisions of the India-UAE Free Trade Agreement (CEPA). They recommend withdrawing duty cuts on precious metals and tightening rules of origin norms to reduce large bullion imports and prevent misuse under the agreement.

The Global Trade Research Initiative (GTRI) has urged the government to reassess the Free Trade Agreement (CEPA) between India and the United Arab Emirates. The think tank suggests revoking duty cut concessions on platinum, silver, diamonds, and gold jewellery, in addition to revising the rules of origin norms.

India and UAE signed CEPA on February 18, 2022, which was put into effect on May 1, 2022. GTRI had previously warned that the agreement allows unlimited duty-free imports of valuable metals, potentially harming the local industry.

The report also highlights a significant rise in imports of gold bars and silver from the UAE. The government had lowered import duties to mitigate this, but tariffs are expected to drop further in the coming years. The GTRI calls for renegotiation of the agreement to protect domestic manufacturers.

(With inputs from agencies.)