The government is seeking a review of certain provisions in the free trade agreement with the UAE, prompting the Global Trade Research Initiative (GTRI) to call for the withdrawal of duty cut concessions on precious metals and jewelry. The India-UAE Free Trade Agreement, known as the Comprehensive Economic Partnership Agreement (CEPA), was signed on February 18, 2022, and came into effect on May 1, 2022.
GTRI has raised concerns about potential misuse of the rules of origin and unlimited duty-free imports of gold, silver, platinum, and diamonds. The organization recommends focusing on issues like adjusting value addition rules and tightening regulations to prevent abuse of the agreement.
The report highlights that lower tariffs on gold and silver imports from Dubai could lead to increased imports, impacting the domestic jewelry industry. GTRI Founder Ajay Sahai warns of loopholes that could allow for significant revenue loss and a drain on foreign exchange reserves.
It is essential to renegotiate the CEPA to address these concerns and protect India’s interests in the global trade market.
Published on 16 August 2024, 09:49 IST
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