GTRI Raises Alarm Over Rising Imports Of Precious Metals From UAE Under CEPA

The Global Trade Research Initiative (GTRI) has flagged serious concerns regarding a surge in imports of precious metals from the UAE under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). They claim this trend threatens India's domestic jewellery industry and could lead to significant annual revenue losses. An urgent review and investigation have been demanded.

The Global Trade Research Initiative (GTRI) on Tuesday expressed significant concerns over the growing import of precious metals from the UAE under a free trade agreement. They demanded an immediate investigation, highlighting the detrimental impact on India's domestic jewellery industry and potential annual revenue losses.

GTRI emphasized that addressing these issues is essential to ensure import practice integrity, safeguard domestic industries, and prevent significant revenue losses. They called for an urgent review of the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which allows unlimited imports of gold, silver, platinum, and diamonds from the UAE into India without tariffs in the coming years.

The zero-tariff policy under CEPA is projected to cause an annual revenue loss of Rs 63,375 crore due to duty-free imports of gold and silver based on FY2024 import levels. The report also highlighted transparent issues with major imports coming from Gift City and pointed out that reducing tariffs could shift the import business from banks to private traders.

GTRI also raised concerns about the Rules of Origin conditions not being met, suggesting a strong possibility of money laundering. They recommended a CAG audit to investigate pre-arranged deals and invoice manipulation. The report concluded that the comprehensive review of CEPA is crucial to protect India's jewellery and diamond industries.