The Global Trade Research Initiative (GTRI) has urged the Indian government to reevaluate certain provisions within its Comprehensive Economic Partnership Agreement (CEPA) with the UAE. This call to action comes as the GTRI recommends retracting duty reliefs on precious metals such as platinum, silver, diamonds, and gold jewelry.
The CEPA, signed on February 18, 2022, and implemented from May 1, 2022, currently allows unrestricted duty-free imports of these precious metals. According to GTRI, this could severely affect the local industry by allowing large volumes of these metals to flood the Indian market.
Among its specific recommendations, GTRI has highlighted the need for India to amend the rules of origin norms, focusing on the profits included in value addition calculations. Additionally, the think tank suggests banning the conversion of high-value products like silver bars to lower-value items like silver granules to prevent the abuse of CEPA benefits and curtailing imports from sanctioned regions.