Government expects no misuse of UAE FTA by third countries

NEW DELHI: The government does not expect the free trade agreement (FTA) with the United Arab Emirates, which is due to be signed on Friday, to be hijacked by third countries, given that it has tools for verifying value added and invoicing, in addition to the treaty having provisions for tariff quotations, which will allow the import of a specified amount only of certain quantities at lower duties.
Given the limited volume of manufacturing in the Emirates, there are fears that third countries, particularly China, may funnel goods into the country via the UAE by simply assembling or simply painting them. The fear stems from the case of a set of boxes, which found their way to India via Asean member Vietnam, but were largely made in China and simply assembled in the Southeast Asian country.
In a recent interaction, Chairman of the Central Customs and Excise Board, Vivek Johri, told TOI that in the case of the UAE, there is an agreement that the country of origin certificate will be issued. by the Ministry of Commerce and not by an industry body, which will ensure that their authenticity is not questioned. In addition, value added standards or product-specific rules will be checked through customs rules (administration of rules of origin under trade agreements) or
CAROTAR, brought in two years ago to verify abuse.
In a statement, the Foreign Ministry said on Wednesday that Prime Minister Narendra Modi and Crown Prince of Abu Dhabi, Sheikh Mohamed bin Zayed al Nahyan will participate in the virtual India-UAE summit on Friday. Negotiations for the Comprehensive Economic Partnership Agreement, which started in September 2021, are now complete, he said.
Asked about the impact of FTAs ​​with countries such as the UAE, UK and Australia, Johri said: “FTAs will obviously impact your revenue streams, but the fact is you always done on the basis of a cost-benefit analysis. When you make this assessment, you may lose income from property, but gain an offsetting benefit elsewhere. This is a calculated political call. ”
The government expects trade treaties, including the one with the United Arab Emirates, to boost trade and also open up new markets, especially in the Persian Gulf and Africa.
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