India has raised concerns over the recent surge in dates imports from the United Arab Emirates (UAE), with suspicions that the UAE may be facilitating the re-exporting of dates from third countries like Pakistan. This suspicion has prompted an investigation by the Indian government, potentially jeopardizing the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and Free Trade Agreement (FTA).
The concerns were voiced during the second joint committee (JC) meeting under the CEPA held in the UAE on October 14. The Indian delegation, led by Additional Secretary in the Department of Commerce Ajay Bhadoo, expressed their worry over the sharp rise in imports of silver products, platinum alloy, and dry dates. They urged the UAE to ensure compliance with the rules of origin, aiming to prevent any circumvention of trade regulations.
The issue stems from the significant import duty differences between direct imports from Pakistan and imports via the UAE. While India imposes a 200 per cent duty on all direct imports from Pakistan, the CEPA agreement allows for duty-free imports of dates from the UAE. This disparity has led to suspicions that the UAE is acting as a conduit for Pakistani dates entering India, bypassing the imposed restrictions.
India’s concerns are heightened by the fact that the UAE is their third-largest trading partner, with bilateral trade reaching $83.65 billion in 2023-24. The recent sharp rise in gold and silver imports from the UAE, soaring to $10.7 billion in 2023-24, further underscores the importance of the trade relationship.
India’s import regulations allow for a 7 per cent tariff concession on unlimited quantities of silver and a 1 per cent concession on 160 metric tonnes of gold. This generous policy has contributed to the surge in imports from the UAE.
The UAE, in response to India’s concerns, has assured that they will investigate the matter. The outcome of this investigation will be crucial for the future of the India-UAE trade partnership, particularly the smooth functioning of the CEPA and FTA agreements.