The proposed free-trade agreement (FTA) between India and Oman has encountered a significant hurdle due to disagreements over market access for petrochemical products.
Sources familiar with the matter reveal that the primary point of contention revolves around Oman's demand for greater access to the Indian market for polyethylene and polypropylene intermediates, which are crucial components in the manufacturing of various products including plastics, medical devices, electronics, and automobile parts. Currently, these petrochemical products face a 7.5% import duty in India.
Despite both sides having nearly finalized the trade agreement and initiated the legal review process, the impasse over petrochemical market access has put the FTA on hold.
It is important to note that this setback comes after extensive negotiations and a mutual understanding on most other aspects of the agreement.
The resolution of this issue is crucial for the successful implementation of the FTA, which aims to enhance bilateral trade and economic cooperation between the two nations.
Further discussions and negotiations are expected to take place in the coming weeks to address this disagreement and pave the way for the finalization of the FTA.
