India-Oman to Start New Round of FTA Talks

The upcoming round of discussions for the proposed free trade agreement (FTA) between India and Oman is set to begin on January 16, with negotiations progressing well, a senior Indian government official said on Tuesday, according to Indian media reports.

Both sides have concluded talks on the text of most chapters for the free trade pact, officially dubbed the Comprehensive Economic Partnership Agreement (CEPA), according to the official.

“The negotiations are progressing well. Two rounds of in-person discussions and numerous inter-sessional meetings have already taken place. Substantial progress has been achieved on all the chapters covered under the CEPA,” the official said, as reported by Business Standard newspaper.

Regarding certain media reports suggesting possible delays in the talks, the Indian official dismissed them, stating that any talk of hindrances or bottlenecks is ‘speculative and presumptuous’ as the negotiating process is currently underway.

“Currently, both sides are working towards concluding the negotiations with the aim of delivering a mutually beneficial agreement contributing to the welfare and development of the people of the two countries,’ said the official.

As per earlier media reports on December 27, a senior Indian government official had mentioned that negotiations for the proposed free trade pact between India and Oman are progressing rapidly, and the agreement is likely to be signed in January 2024.

In December, India and Oman concluded the second round of talks in Muscat for the CEPA. His Majesty Sultan Haitham bin Tarik and Indian Prime Minister Narendra Modi have given strong support to concluding the agreement as early as possible.

Oman is India’s third-largest export destination among the GCC countries. The free trade deal is expected to boost bilateral trade between India and Oman. In the GCC region, India has already implemented a trade agreement with the UAE in May 2022.

According to a report from the Global Trade Research Initiative, Indian goods worth $3.7bn, such as gasoline, iron and steel, electronics, and machinery, will receive a significant boost in Oman once both sides reach a comprehensive free trade agreement.