India has raised concerns that China could use Oman to dump goods into the Indian market, even as talks on a free trade agreement (FTA) with the West Asian nation have resulted in an agreement on over 200 trade lines, two people aware of the matter said.
However, Oman wants to expand the agreement to about 500 trade lines, but Indian, it is understood, are not in favour of the move.
Talks on the long-pending trade agreement, officially known as the Comprehensive Economic Partnership Agreement (CEPA), were completed in March. the agreement has hit a deadlock as Oman has requested revisions to India’s market access offer for specific products.
The West Asian country remains firm on its demand for market access to a range of additional products, which cannot be included in the list under the agreed terms of reference,” the first person mentioned above said, requesting anonymity.
The proposed pact aims to eliminate duties on key products, including petroleum, textiles, electronics, pharmaceuticals, machinery, and iron and steel, thereby fostering trade ties and economic cooperation.
Third export destination
While Oman is India’s third-largest export destination among Gulf Cooperation Council (GCC) countries, more than 80% of Indian exports to Oman attract an average 5% import duty.
Oman’s import duties range from 0% to 100%, along with other specific duties.
A 100% duty applies to certain meats, wines, and tobacco products.
The FTA is also expected to help Oman diversify its economy away from oil exports by granting preferential access to Indian goods and services.
“India sees an immediate benefit from finalizing the FTA with Oman in the establishment of manufacturing units dedicated to exporting green products,” the second person mentioned above said.
