India to Finalise Free Trade Agreement with Oman to Sidestep US Tariffs

India Oman Free Trade Agreement: America has imposed a 50% tariff on India. A 25% tariff came into effect on 7 August, with an additional 25% tariff effective from 27 August. Indian exporters are facing difficulties due to the American tariffs, with American importers cancelling their orders. PM Modi recently stated in a meeting that he is prepared to pay any price to protect the interests of farmers. In fact, America is pressuring India to open up its agricultural sector, but the Indian government is unwilling to compromise on protecting farmers' interests. India has now begun working on a strategy to avoid America's tariff war. Reports suggest that a free trade agreement may soon be reached between India and the Gulf nation of Oman.

Translation of the Free Trade Agreement into Arabic

A Ministry of External Affairs official stated that the agreement document is currently being translated into Arabic. Following this, the cabinets of both countries will jointly approve it. The official added that both countries have theoretically decided to jointly announce and sign the agreement. They indicated that this entire process will be completed in less than two to three months.

USD 10 Billion in Imports Between India and Oman

The official stated that this agreement is officially termed a Comprehensive Economic Partnership Agreement (CEPA). Negotiations between India and Oman commenced in November 2023. They explained that under the CEPA, both countries will reduce or eliminate customs duties on each other's goods, simplify bilateral trade regulations, and promote investment.

Oman is the third-largest export destination for India among the Gulf Cooperation Council (GCC) countries. India has already concluded a similar agreement with another GCC member, the United Arab Emirates (UAE), which came into effect in May 2022. According to information available, bilateral trade between India and Oman has exceeded US$10 billion, comprising US$4.06 billion in exports and US$6.55 billion in imports. India purchases petroleum products and urea from Oman, accounting for 70% of its total imports.