India gets unprecedented market access in Oman trade pact

[ad_1] NEW DELHI: India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA) on Thursday, which will provide duty free access to 98% of India’s exports including textiles, farm and leather goods in Oman, and give an additional $2 billion boost to exports in the next 2-3 years.The pact would help Indian exporters, reeling under the impact of 50% tariffs imposed by the Trump administration on Indian goods, to diversify shipments in West Asia region, a gateway to Africa and Europe.Oman has offered to ease norms for Indian companies operating in the Gulf country under the CEPA allowing them to employ up to 50% of their total staff from their India office. “The agreement provides a comprehensive and forward-looking framework for services trade, covering IT, business and professional services, R&D, education, health, and audio-visual services. A major highlight is an 8 times extension of permitted duration of stay for Contractual Service Suppliers from 90 days to two years, with the possibility of a further two-year extension,” said commerce and industry minister Piyush Goyal in a social media post.Live EventsThe commerce and industry ministry said that the pact “secures unprecedented tariff concessions for India from Oman”.“The deal is expected to come into force from the first quarter of the next calender year,” said an official.New Delhi will reduce tariffs on Omanese products such as dates, marbles and petrochemical items, making these products cheaper for Indian consumers.India has agreed to liberalize tariffs on 77.79% of its tariff lines while protecting sensitive sectors such as dairy, tea, coffee and gold and silver bullion.“This near-universal duty-free access will significantly enhance the competitiveness of Indian goods and benefit key labour-intensive sectors,” said S C Ralhan, president, Federation of Indian Export Organisations.Oman’s strategic location makes it a vital gateway to the Gulf and Africa.India’s exports could rise $10 billion in the medium term.The agreement facilitates 100% foreign investment by Indian companies in major services sectors, introduces the first-ever comprehensive commitment on Traditional Medicine, opening new avenues for India’s AYUSH and wellness sectors, and provides important trade-facilitation measures.These include faster pharmaceutical approvals, acceptance of global regulatory certifications, mutual recognition of Halal certification, acceptance of India’s NPOP certification for organic products, and enhanced cooperation on standards and conformity assessment, helping address non-tariff barriers.“Oman’s resource base and infrastructure strength along with India’s scale will lead to an impactful relationship. It will be important to see how we work with countries in Europe and Africa because of Oman’s strategic location. This logistical connectivity will help deeper integration with trade networks,” said Chandrajit Banerjee, Director General, CII.QuotasImports of marble blocks, dates and petrochemicals will be subject to quotas by India. As per the CEPA, the annual quota for duty free dates will be 2,000 tonnes, polyethylene 150 kilo tonnes and polypropylene 75 kilo tonnes. The imports beyond the quota will be taxed at normal rates.In petrochemicals and some other products the duty relaxations will be spread over a period of time ranging from 5 to 10 years.Services, mobilityIn the services segment of the pact, Oman has offered to ease norms in 127 sub-sectors.The Gulf country has extended commitments across a broad spectrum of sectors, including computer-related services, business and professional services, audio-visual, R&D, education and health services.Oman's global services imports were $12.52 billion. India's share in this is just 5.31%.The official said that the pact agreed that if Oman offers more liberal terms to any other SAARC country regarding their Omanisation policy, similar concessions will have to be extended to India as well.The CEPA provides for 100% foreign direct investment by Indian companies in major services sectors in Oman through commercial presence.The two sides have agreed to hold future discussions on the social security agreement once Oman's contributory social security system is implemented.Oman’s geographical proximity to India and the availability of land have also been identified as opportunities for co-location of Indian industries and workforce. [ad_2] Source link Follow Us: https://facebook.com/gagab2b https://youtube.com/gagab2b https://gagab2b.com https://gagab2b.com/import-export-news/import-export-india-news/india-gets-unprecedented-market-access-in-oman-trade-pact/?feed_id=3796&_unique_id=6944c7337d4ea

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