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CEPA Trade pact with UAE sees boost in exports
February 23, 2022
India’s new comprehensive economic partnership agreement (CEPA) with the UAE will come as a shot in the arm for exporters of, fruits, vegetables, dairy products, and assorted processed food items to the Western Asian country.
Removal or reduction of tariffs under the pact, which will take effect from May, could allow these exporters to acquire an edge over competitors from Brazil, Australia, and Pakistan.
“We will be tapping opportunities in extending commodity of, dairy items, cucumbers, gherkins, processed food sources, and natural honey after the signing of CEPA,” M Angamuthu, chairman, Agricultural and Processed Food Products Exports Development Authority (Apeda), told FE.
The UAE is India’s second-biggest export destination for agriculture commodities after Bangladesh. In 2020-21, India’s agricultural product exports to the UAE remained at $1,926 million and in the initial 3/4 of 2021-22, the commodities to the nation crossed $1,865 million. Presently, most exports of agricultural products to the UAE are subject to a 5% duty.
Over the most recent few years, India has been facing stiff competition from Brazil, Pakistan, and Australia for increasing exports to the UAE and has been facing competition from China and Argentina for exports of groundnut.
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