FTA talks with Oman to get a push as Goyal visits Muscat

Talks on the comprehensive economic partnership agreement (CEPA) between India and Oman is expected to get a further impetus during Commerce and Industry Minister Piyush Goyal’s two-day visit to Muscat, beginning Monday.

Goyal will be in Muscat for the 11th Joint Commission Meeting (JCM) between India and Oman. The institutional mechanism of JCM allows both countries to discuss about the trade matters. Goyal’s Omani counterpart Qais bin Mohammed bin Moosa al-Yousef will co-chair the meeting.

“The talks on India-Oman CEPA, which are at an advanced stage, are likely to get further impetus during the visit. Both sides are negotiating and exploring a commercially significant, balanced, equitable, ambitious and mutually beneficial CEPA,” a statement said.

Negotiations on free trade agreement (FTA) with Oman, that started November 2023, were completed in March 2024. Signing was expected to be completed before 2024 general elections, but a request for review had to be considered.

The CEPA with Oman goes beyond what has been signed with the UAE in terms of scope and liberalisation. With the CEPA, India will get access to 98% of its products in Oman and significant access in services.

Oman’s import duty ranges from 0 to 100% along with the existence of specific duties. 100% duty is applicable on specific meats, wines and tobacco products.

In 2023-24 India’s trade with Oman was at $8.9 billion, down 27.7% on year. India’s exports stood at $4.2 billion and imports $4.5 billion. The fall was largely due to a 42.8% drop in imports, due to decline in trade of fertilisers and petroleum. Oman is the third largest export destination among the Gulf Cooperation Council (GCC) countries.

A business delegation is accompanying Goyal for the Joint Business Council meeting between FICCI and the Oman Chamber of Commerce and Industry.

On the sidelines, the minister is also expected to meet Sultan bin Salim Al Habsi, Minister of Finance and chairperson of the Ministerial Committee for CEPA, Sheikh Ali bin Masoud Al Sunaidy, president, Public Authority for Special Economic Zones and Free Zones (OPAZ), apart from holding interactions with representatives of Oman industry and Indian community.