NEW DELHI:Commerce and industry minister Piyush Goyal on Friday said the trade agreement with the UAE will provide aboost to several labour-intensive exports from the country and sought to assure stakeholders about safeguards to check any surge in imports into the country or misuse of the bilateral treaty.
For the first time, a permanent safeguard mechanism has been put in place, which will enable both countries to initiate steps to check misuse. Similarly, the UAE ministry of economy will issue the rules of origin certificate. Besides, 40% value addition has been mandated for most goods, with a clause stipulating “melt and pour” for the steel sector, which will ensure that the metal produced in third countries cannot be routed via India or UAE.
Goyal pitched the agreement as a major boost for sectors such as textiles, leather and gems and jewellery, apart from the pharma sector and said that trade in goods and services are estimated to grow twofold over the next few years. “The agreement provides for approval to sell Indian drugs, which have been approved by regulators in the US, the UK, Australia, European Union and Canada within 90 days of application. This is a path-breaking new deal for the pharma industry,” he said.
Besides, he said that several raw materials will come at lower duties in India, which will help sectors such as plastics and gems & jewellery, which will help create jobs and also address some of the problems related to raw material prices and availability. He said there are complementarities for both sides as the two countries do not compete with each other.
For the first time, a permanent safeguard mechanism has been put in place, which will enable both countries to initiate steps to check misuse. Similarly, the UAE ministry of economy will issue the rules of origin certificate. Besides, 40% value addition has been mandated for most goods, with a clause stipulating “melt and pour” for the steel sector, which will ensure that the metal produced in third countries cannot be routed via India or UAE.
Goyal pitched the agreement as a major boost for sectors such as textiles, leather and gems and jewellery, apart from the pharma sector and said that trade in goods and services are estimated to grow twofold over the next few years. “The agreement provides for approval to sell Indian drugs, which have been approved by regulators in the US, the UK, Australia, European Union and Canada within 90 days of application. This is a path-breaking new deal for the pharma industry,” he said.
Besides, he said that several raw materials will come at lower duties in India, which will help sectors such as plastics and gems & jewellery, which will help create jobs and also address some of the problems related to raw material prices and availability. He said there are complementarities for both sides as the two countries do not compete with each other.
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