CEPA aspires to establish new era of progress for both nations: Abdulla bin Touq Al Marrit, UAE’s Minister of Economy

The Comprehensive Economic Partnership Agreement (CEPA) that the United Arab Emirates signed with India is a milestone in the bilateral relationship and aspires to establish a new era of progress and prosperity for the people of both nations, UAE's Minister of Economy Abdulla bin Touq Al Marri told ET. Excerpts:

How will CEPA benefit the UAE?
We don't see this as one side gaining and the other losing. From the UAE's perspective, this CEPA is part of a bold series of initiatives to pave the way for the next 50 years of growth. The goal was to double the size of the economy from 1.4 trillion Arab Emirates Dirham (AED) to 3 trillion AED in 2030. This required bold new strategies for diversification. Also, as a response to the global pandemic, we understood the need to rebuild our trade partnerships to accelerate the free flow of goods, strengthen supply chains and increase trade volumes to and from the UAE. Our companies will benefit from frictionless access to the fifth-biggest economy, a booming middle-class, investment opportunities across sectors and access to government procurement for the first time. The UAE will benefit from greater trade volumes and 140,000 jobs in priority sectors. The CEPA is going to add about $9 billion to our economy, which is 1.7% of the GDP. In India, it will add about $18 billion by 2030.


What sectors will particularly benefit from the CEPA?
Tariff elimination covers key sectors such as aluminium, copper, steel, polyethylene and polypropylene. A total of 11 service sectors and more than 100 sub-sectors were part of the negotiations, including business services which include professional services - computer accounting, real estate, advertising packaging, telecom services, construction and others. So, this is a deal that will allow for the private sector to dictate where the opportunities lie.

Is government procurement also part of the trade pact?
Yes, for the first time, companies will be allowed to access the government procurement process of both countries.

India and the GCC are also negotiating an FTA. So, will this be the base for that?
It's going to be the base for that FTA.

How strategically important is the deal for the UAE?
It is a very important strategic deal. UAE and India have a huge and a very strong relationship (since) the past. I think it's important that we capitalize on this. Connectivity is very important. Aviation industry is very important to really make sure that connection happens.