India-UAE Comprehensive Economic Partnership Agreement (CEPA): The India-UAE Comprehensive Economic Partnership Agreement (CEPA), set to come into force on May 1, includes a chapter on government procurement, granting UAE-based companies treatment on par with domestic companies.
India-UAE Comprehensive Economic Partnership Agreement (CEPA): Key-Points
This is the first instance of India including government procurement in a Free Trade Agreement (FTA).
The move marks a major shift in India’s stance on government procurement, which had also been a stumbling block in major FTA negotiations, including those with the European Union.
Government procurement is estimated to be worth about 20-22 percent of GDP.
India has previously been unwilling to discuss government procurement in bilateral or multilateral trade agreements to protect domestic firms which rely on it.
India is also not a signatory to the World Trade Organisations Government Procurement Agreement (GPA), but has been an observer since 2010.