India and Oman Forge Economic Partnership, Safeguarding Local Interests

India-Oman Economic Partnership Agreement

On Thursday, India finalized a Comprehensive Economic Partnership Agreement (CEPA) with Oman, ensuring that sensitive products crucial to domestic farmers and micro, small, and medium enterprises (MSMEs) will not receive any tariff concessions. The Ministry of Commerce stated that these sensitive items have been categorized as 'exempt from concessions' to protect national interests.

According to the ministry, the products excluded from tariff concessions include dairy and agricultural goods, tea, coffee, rubber, tobacco products, bullion and jewelry made of gold and silver, as well as footwear, sports equipment, and various scrap metals.

The ministry emphasized, "No tariff concessions have been granted on these products to safeguard sensitive sectors, ensuring that domestic producers and MSMEs are not adversely affected." It also noted that for products of interest to Oman that are sensitive for India, a tariff-rate quota (TRQ) based tariff liberalization has been offered in most cases.

Under the TRQ system, reduced or zero tariffs apply to imports up to a specified quantity (quota), while normal tariffs are applicable for imports exceeding that limit. This category includes dates, marble, and petrochemical products. An official mentioned that Oman has permitted Indian companies to import marble blocks, which are typically considered restricted export items in the Gulf nation. Additionally, an annual duty-free quota of 2,000 tons has been established for dates under this trade agreement.