Indian and Emirati officials are set to review their trade agreement this week following concerns from Indian industry over a sharp rise in imports of precious metals from the United Arab Emirates (UAE), according to sources familiar with the matter.
The two nations signed the Comprehensive Economic Partnership Agreement (CEPA) in 2022 after just 88 days of negotiations. This agreement has since served as a model for the UAE’s trade pacts with other countries.
An Indian government official, speaking anonymously, confirmed that the review will take place during a visit by a UAE delegation led by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed Al Nahyan to Mumbai and New Delhi. However, both the official and another source downplayed the significance of the talks, explaining that such reviews are routine.
Requests for comment from the Indian trade ministry and the UAE ministry of economy went unanswered.
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Indian officials have indicated that New Delhi is seeking a review of certain aspects of the agreement, including whether rules of origin are being followed. However, sources noted that Crown Prince Sheikh Khaled, who is also the UAE’s deputy national security adviser, is not expected to participate in the review discussions.
The review has been partially prompted by complaints from Indian industry regarding the surge in precious metal imports from the UAE. India is one of the UAE’s largest trading partners, and Indian nationals form the largest expatriate community in the Gulf state, working in key sectors of the economy.
The CEPA trade agreement came into effect in May 2022.
