The Comprehensive Economic Partnership Agreement (CEPA) is a type of broad-based international trade agreement, which is more extensive than a traditional Free Trade Agreement (FTA). While an FTA primarily focuses on reducing tariffs on goods, a CEPA is a holistic framework that covers goods, services, investment, intellectual property rights (IPR), competition policy, and regulatory cooperation.
India uses CEPA as a key instrument to deepen trade relations and strengthen strategic partnerships. The India-South Korea CEPA, a foundational agreement, was signed on August 7, 2009, and came into effect on January 1, 2010, following negotiations that began in February 2006. The agreement's mechanism commits both countries to lower or eliminate import tariffs and expand opportunities for investments and services. For instance, under this pact, South Korea agreed to phase out or reduce tariffs on 90% of Indian goods over ten years.
A more recent example is the India-UAE CEPA, which was signed on February 18, 2022, and entered into force on May 1, 2022. This agreement provides enhanced market access, with the UAE eliminating duties on over 97% of its tariff lines, covering 99% of Indian exports in value terms. Key provisions include market access for services across 11 broad categories and provisions for the movement of natural persons.
The CEPA concept connects to the Comprehensive Economic Cooperation Agreement (CECA), which is a similar broad-based pact. India has CEPAs with countries like Japan (2011) and the UAE (2022). The India-South Korea CEPA was reviewed and enhanced in 2018 to ease customs procedures and expand product coverage. Furthermore, India is currently negotiating a CEPA with Chile and has one with Oman set to become effective from June 1, 2026.