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Indo-UAE pact to come into effect shortly

posted on 06/10/2001: 702 views

The Business Investment Promotion Agreement, initialled by the UAE and India, will come into effect soon, pending clarifications sought by the UAE, Gulf News reported. Meanwhile, after steady growth between 1997-99 and achieving peak level in 1999-2000, bilateral trade between India and the UAE is slowing. Further growth hinges on the situation in the region, especially Afghanistan, a senior Indian diplomat said. From US$3.24 billion in 1997-98 to US$3.59 billion in 1998-99 to a peak level of US$4.29 billion in the following year, bilateral trade fell to US$3.25 billion during 2000-01. For the short term, India is aiming to attain the previous year's level. Other pacts ratified and signed last year were the Extradition Treaty, the Mutual Legal Systems and Criminal Matters Agreement, and the Double Taxation Avoidance Agreement. India imports, mainly crude oil from the UAE and in value terms declined last year as India stopped buying diesel, relying on domestic supplies after the Reliance refinery came on stream. India is self-sufficient in diesel now and only kerosene is imported among refined products. While talks have bee initiated between India and the UAE Offsets Group, UOG, on the Dolphin Gas Initiative and imports of gas though a sub-sea pipeline, not much progress has been made. (The Emirates News Agency, WAM)


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