New Delhi: In a major fillip to bilateral relations, India and the United Arab Emirates (UAE) on July 1 signed a defence co-operation agreement that provides for export and import of weapons and co- ordination in security-related issues.

The agreement was signed by Defence Secretary Subir Dutta and UAE Ambassador Saeed M Ali Al Shamsi a day after visiting Chief of State of UAE Armed Forces Sheikh Mohammad bin Zayed al-Nahyan agreed during talks with Deputy Prime Minister L K Advani to work on a long term, broad strategic dialogue and set up a joint business council to hike bilateral trade to $ five billion.

Al-Nahyan, the third son of UAE President Sheikh Zayed bin Sultan al-Nahyan, who is on a three-day visit, met President A P J Abdul Kalam, Prime Minister Atal Behari Vajpayee and Defence Minister George Fernandes on July 1 morning. Besides Advani, he had held talks with External Affairs Minister Yashwant Sinha on June 30.

A Defence Ministry spokesman said the defence agreement provides for development of defence co- operation, import and export of arms and co-ordination in the fields of military training, military medical services, cultural and sports activities, environmental issues and pollution cause by military, particularly at sea.

The two countries would also co-operate in defence industry, scientific research, humanitarian and peace keeping operations, he said.

The spokesman said the talks between Fernandes and al-Nahyan, who is leading a six-member delegation including Information and Culture Minister Sheikh Abdullah bin Zayed al-Nahyan, were held in "very cordial atmosphere".

PTI