India has formally raised its concerns regarding a significant increase in imports of silver products, platinum alloy, and dry dates from the United Arab Emirates (UAE). This plea was made during the second meeting of the joint committee under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), held in the UAE on October 14. The Indian delegation, led by Additional Secretary in the Department of Commerce Ajay Bhadoo, urged the UAE to ensure that trade rules are not circumvented under the existing free trade agreement.

The spike in imports has prompted India to seek a review of certain provisions of the CEPA, which took effect on May 1, 2022. The Ministry of Commerce stated that India urged the UAE to verify compliance with rules of origin norms, highlighting concerns that many imports may not meet these conditions and therefore do not qualify for tariff concessions.

Notably, India's imports of gold and silver from the UAE have skyrocketed by 210%, reaching $10.7 billion in the 2023-24 period. Under the CEPA, India allows 7% tariffs on silver imports and a 1% concession on 160 metric tonnes of gold. The think tank Global Trade Research Initiative (GTRI) has raised alarms, suggesting that the CEPA permits unlimited imports of these precious metals into India without tariffs, potentially exacerbating compliance issues.

In addition to addressing import concerns, the Indian delegation also proposed that the Indian Jewellery Exposition Centre in Dubai be designated as a special zone to enable domestic jewellery manufacturers, including non-registered entities, to benefit from concessional duties. The UAE has expressed its willingness to consider this request after consulting relevant stakeholders.

On other trade-related matters, India called for recognition of the i-CAS (India Conformity Assessment Scheme) Halal certification, which would simplify the process for exporting animal products to the UAE. Both nations also discussed expediting the registration process and establishing a reference pricing mechanism for pharmaceutical products.

Furthermore, the Indian delegation emphasized the need for mutual recognition agreements between professional bodies from both countries. This would facilitate services for professionals like chartered accountants, lawyers, and nurses without requiring additional certification. Both sides have committed to developing an actionable plan in this regard.