Web Desk
India and the United Arab Emirates (UAE) are set to review their Comprehensive Economic Partnership Agreement (CEPA) amid a surge in precious metal imports, according to a recent report. The CEPA, which was signed in 2022, has significantly boosted trade between the two countries, but the sharp rise in the import of gold and other precious metals has prompted both nations to reassess the trade balance.
India, one of the largest consumers of gold, has seen a substantial increase in imports, particularly from the UAE. While the trade pact has been beneficial in enhancing bilateral ties, the spike in precious metal imports is raising concerns about its impact on India’s trade deficit. Both governments are expected to discuss potential adjustments to the agreement to address these concerns while continuing to foster strong economic ties.
The review of the CEPA comes at a time when both countries are looking to strengthen their trade relations further, with a focus on sectors like technology, renewable energy, and digital trade. As discussions progress, the outcome of the review could have a significant impact on the trade dynamics between India and the UAE.
