The United Arab Emirates and India have taken significant steps towards enhancing trade efficiency by signing a mutual recognition arrangement (MRA) for authorised economic operators (AEOs) from both countries. This agreement, facilitated by India’s Central Board of Indirect Taxes and Customs (CBIC), comes as part of a broader effort to strengthen economic ties following the implementation of the Comprehensive Economic Partnership Agreement (CEPA) in May 2022.
Read more: $50 billion in trade one year after the UAE-India agreement
Streamlining Trade
The AEO program allows authorities to identify secure and compliant exporters and importers. By offering better facilitation and reduced bureaucratic hurdles, the AEO program enables businesses to navigate the customs landscape more efficiently. Under this agreement, customs authorities from both countries will grant expedited customs clearances. This development will streamline the movement of goods between UAE and India.
The CBIC tweeted, “In pursuance of greater trade facilitation & ease of doing business, India & UAE signed the Mutual Recognition Arrangement for Authorised Economic Operators of both countries today, on sidelines of the 141st/142nd sessions of WCO Customs Co-operation Council meeting, in Brussels.”
Growth Across Nations
Reports in local media have suggested that India is seeking to include specific professions, such as nurses, company secretaries, chartered accountants, and dentists, in the MRA. By doing so, these professionals would gain faster entry into the UAE and other Gulf countries, opening up new avenues for collaboration and employment opportunities.
Figures from the UAE Ministry of Economy indicate that non-oil trade between the two nations reached $50.5 billion from May 2022 to April 2023, marking a notable 5.8 percent year-on-year increase. With CEPA already bolstering non-oil trade figures, the UAE and India are well-positioned to further expand their economic collaboration and harness the full potential of their strategic partnership in the Middle East.
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