comprehensive economic partnership agreement between india and the United Arab Emirates
(Goods and Services)

Questions and Replies

The following communication, dated 13 June 2024, is being circulated at the request of the delegations of India and the United Arab Emirates.

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Questions from the delegation of Canada

Liberalization commitments

1.1.  Paragraph of 4.22 of the factual presentation notes that Parties will endeavour to review their trade in services agreements with a view of liberalizing commitments through a periodic review of every two years at the request of a Party.

        In the event that Parties decide to liberalize commitments found in their Schedules of Specific Commitments, will those commitments be considered binding under this agreement? If so, could Parties indicate what mechanism contained in the text allows Parties to liberalize their specific commitments following entry into force? Will such changes be notified to the Membership of the WTO?

Response from India

        Article 8.9 of the Agreement provides for Parties to endeavour towards eliminating remaining discrimination between them, including liberalization of specific commitments by the Parties. Any amendment to the Agreement in this context that comes into effect following the process laid down in Article 18.2 (Amendments) will be considered binding.

        Article 8.9 also provides that any such review shall be in conformity with Article V of the GATS.

Electronic commerce

1.2.  Paragraph 5.41 notes "digital invoicing based on international frameworks" (Article 9.16).

        What international frameworks are Parties considering?

Response from India

        As per Article 9.16.2, each Party shall endeavour to ensure that the implementation of cross-border measures related to digital and electronic invoicing in its territory are based on international frameworks. The agreement does not refer to any specific framework.

Questions from the delegation of the European Union

1.3.  How does the bilateral UAE India Comprehensive Economic Partnership Agreement relate to preferences granted in the Gulf Co-operation Council Customs Union, where UAE is a Member?

Response from India

        This is a comprehensive bilateral agreement between India and UAE and governed by the provisions as contained the agreement. It does not in any particular way relate to intra-GCC Customs Union preferences.

1.4.  Given the importance of the energy sector and digital trade in the bilateral trade between the UAE and India, we note that they have not been included in the agreement.

        Are there any plans to integrate such sectors into the scope of the Agreement?

Response from India

        Article 18.2 contains provisions for amendments in Agreement.

1.5.  On Customs- related procedures: The Agreement refers that a bilateral CMAA agreement signed on April 1,2012. The Agreement refers to CMAA as follows: "Each Party is obliged to implement and comply with obligations specified in the CMAA". As the CMAA agreement has been signed more than 10 years ago, is it fully implemented and complied at this stage or does the Agreement give a binding reference day when the full implementation would need to be in place?

Response from India

        Article 6.14 of the agreement provides for enhancing customs cooperation and exchange of information between the Customs Administrations to secure and facilitate trade through the proper application of customs laws and regulations. for the prevention, investigation and combating of customs offences and to ensure the security of the international trade supply chain, each Party shall implement and comply with the obligations in the CMAA. India and UAE continue to engage in this regard.

        The agreement does not prescribe a binding reference date.

1.6.  The Government procurement chapter largely mirrors the WTO Government Procurement Agreement (GPA). As neither Party is party to WTO GPA, does India or UAE have any intention to join the WTO GPA?

·_        Further clarification and details on preferential treatment to each other's under the Agreement in the public procurement context, would be welcome.

·_        On Intellectual Property Rights: Under Section H on enforcement, "the Parties agree to establish enforcement procedures in their laws to effectively address intellectual property rights infringements,,…" Would these laws apply only bilaterally or would such enforcement mechanism apply with all trading partners?

·_        Based on 2023 data, what was the rate of preference utilisation (i.e., percentage of eligible imports that actually benefitted from the preferences upon importation) as regards imports into India of UAE-originating goods and imports into the UAE of India-originating goods?

·_        As regards the pharmaceutical annex,

o_   Has either India or the UAE accepted, without any prior inspection, the Pharmaceutical Products manufactured in the other Party's territory, based on an approval by the Regulatory Authorities of Australia, Canada, the European Union, Japan, the United States of America, or the United Kingdom? If so, in which cases?

o_   Has either India or the UAE established or considered to establish "fast-track" procedures for Pharmaceutical Products having approvals from at least one of the Regulatory Authorities/ reference countries, namely Australia, Canada, the European Union, Japan, the United States, or the United Kingdom?

Response from India - Pointwise

·_        It is a matter of fact that India is not a party to GPA.

·_        On IPR: Article 11.34 prescribes a general Obligation that both parties shall ensure that enforcement procedures as specified in the relevant section of the Agreement are available under its law so as to permit effective action against any act of infringement of intellectual property rights covered by Chapter 11 of the Agreement. The scope and applicability of domestic law, as consistent with the TRIPS agreement, would be in terms of the provisions contained in such law.

·_        Preference utilization in 2023: Not available

·_        Pharmaceutical annex:

·_       India has established fast track procedures for Pharmaceutical Products having approvals by Regulatory Authorities in other countries under the provisions of New Drugs and Clinical Trial Rules, 2019.

·_       In such cases permission to import the medicinal products may be granted by the National Regulatory Authority based on the required documentary submissions.

Question from the delegation of Türkiye

1.7.  According to the relevant provisions of Chapter 9 (Digital Trade) and Chapter 12 (Investment and Trade), it is understood that no dispute settlement mechanism shall apply to these Chapters. Therefore, Türkiye would kindly like to learn why these Chapters were excluded from the dispute settlement process provided in Chapter 15.

Response from India

        The purpose of the chapters on Investment and Trade(Chapter 12) and Digital Trade (Chapter 9) is to provide a forum for Parties to cooperate on relevant issues.

        Not subjecting these Chapters to dispute settlement under the CEPA is a conscious outcome of negotiations between the Parties. In any event, Parties can resolve any specific matters concerning these Chapters through forums like the Technical Council on Investment and Trade Promotion and Facilitation, established under the Agreement.

Questions from the United Kingdom

Small and medium-sized enterprises (SMEs)

1.8.  Paragraph 5.46: The report says that the parties agree to agree to collaborate by promoting cooperation between their small business support infrastructure, supporting SMEs owned by women and youth.

        Could India and the UAE please provide more detail on how they are supporting SMEs owned by women and youth?

Response from India

        Government of India implements various schemes/programs for the benefit of MSMEs, with particular focus on MSMEs led by youth & women. These include schemes for easy access to credit; technology upgradation; procurement and market support scheme; skill development; and capacity building etc.

1.9.  The report says that the parties encourage the use of mobile or web-based platforms for SME networking.

        Could India and the UAE please provide an example of a platform used for SMEs network and describe how this has helped SMEs to date?

Response from India

        A good example of Government of India initiative is an e-platform for MSME is called "MSME Global Mart" (www.msmemart.com). This is a global business to business (B2B) portal. It provides marketing opportunities, Trade Leads, Tender Information, Franchise Opportunities etc to SMEs. It has a trusted database of 200,000 Indian MSMES.

1.10.  Paragraph 5.48: The report says that the Committee on SME Issues (SME Committee) is responsible for promoting cooperation between their SMEs.

        Could India and the UAE please provide examples of cooperation activities that has taken place between their SMEs?

Response from India

        As per Article 13.4 of the agreement, the said SME Committee would inter alia engage to identify ways to assist SMEs to take advantage of the commercial opportunities resulting from this Agreement and to strengthen SME competitiveness; identify and recommend ways for further cooperation relating to SME; experiences sharing and best practices in supporting and assisting SME exporters; seminars, and workshops for SMEs; capacity building, information sharing; and facilitate the development of programs to assist MSME etc.

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