Piyush Goyal To Visit Oman To Revive CEPA Negotiations

New Delhi, Jan 27 (KNN) India's Commerce and Industry Minister Piyush Goyal is set to embark on a two-day diplomatic visit to Muscat, Oman, beginning Monday, aimed at reinvigorating negotiations on the Comprehensive Economic Partnership Agreement (CEPA) between the two nations.

The commerce department announced on Sunday that the talks, while at an advanced stage, require additional momentum to achieve a commercially significant and mutually beneficial agreement.

The ministerial visit comes at a critical juncture as the proposed free trade agreement (FTA) has encountered significant obstacles. Despite completing initial negotiations in March 2023, the agreement has reached an impasse due to Oman's request for India to revise its market access proposals on specific products.

This revision would necessitate India to restart its internal inter-ministerial consultations to establish a new negotiating position.

A key point of contention has emerged regarding petrochemical products, specifically polyethylene and polypropylene, which are crucial intermediates in the manufacturing of plastics, medical devices, electronics, and automotive components.

Oman is seeking enhanced market access for these products, which currently face a 7.5 percent import duty in India. The formal negotiations, which commenced in November 2023, had progressed substantially, with most chapter texts concluded by January 2024.

The original timeline had anticipated the agreement's signing following the formation of India's new government in June.

During his visit, Goyal will engage in comprehensive discussions with his Omani counterpart, Qais bin Mohammed bin Moosa al-Yousef, focusing on trade, investment, and global economic conditions.

The commerce department emphasised the significance of the bilateral relationship, noting that trade between the two nations reached USD 8.94 billion in 2023-2024, positioning Oman as a crucial trading partner within the Gulf Cooperation Council (GCC).

The minister's agenda includes meetings with key Omani officials, including Finance Minister Sultan bin Salim Al Habsi, who chairs the Ministerial Committee for CEPA, and Sheikh Dr Ali bin Masoud Al Sunaidy, President of the Public Authority for Special Economic Zones and Free Zones.

Additionally, Goyal will interact with representatives from Oman's industry sector and the Indian diaspora community.

(KNN Bureau)