<p>New Delhi: Customs duty concession demand on petrochemical products such as polypropylene and polyethylene, used primarily in the plastics industry, may act as a sticking point in the early conclusion of talks for the proposed free-trade agreement (FTA) between India and Oman, according to an official.</p>.<p> Negotiations for the pact, officially dubbed the Comprehensive Economic Partnership Agreement (CEPA), are in the last phase.</p>.<p> Certain domestic players from both public and private sectors are opposing duty concessions on these products under the agreement.</p>.<p> They are claiming that Oman provides huge subsidies to its industry on raw materials for the production of these petrochemical products.</p>.US Trade Representative Tai to travel to New Delhi next week for US-India trade policy forum ministerial meet.<p> According to them, if India would give duty concessions on these already subsidised products, it would be a double advantage for Omani firms.</p>.<p> The government official said that they are holding talks with domestic players on the issue.</p>.<p> Officials of the two countries concluded the second round of talks for the agreement in December last year.</p>.<p> At present the customs duties on these products are around 7.5 per cent.</p>.<p> Domestic plastic makers, however, are of the view that duty cuts will give a boost to the labour-intensive sector as raw material cost accounts for about 60 per cent of the final goods.</p>.<p> The negotiations on the text of most of the chapters have been concluded by both sides.</p>.<p> Oman is the third largest export destination among the Gulf Cooperation Council (GCC) countries.</p>.<p> The bilateral trade was USD 12.39 billion in 2022-23 as against USD 5 billion in 2018-19. India's exports have increased from USD 2.25 billion in 2018-19 to USD 4.48 billion in 2022-23.</p>.<p> According to think tank GTRI (Global Trade Research Institute), Indian goods worth USD 3.7 billion such as gasoline, iron and steel, electronics, and machinery will get a significant boost in Oman, once both sides reach a comprehensive free trade agreement.</p>.<p> India's imports from Oman stood at about USD 8 billion in 2022-23. Key products included petroleum products (USD 4.6 billion), urea (USD 1.2 billion); propylene and ethylene polymers (USD 383 million).</p>.<p> Currently, over 80 per cent of India's goods enter Oman at an average of 5 per cent import duties, the GTRI report has said adding Oman's import duty ranges from 0 to 100 per cent along with the existence of specific duties. </p>
<p>New Delhi: Customs duty concession demand on petrochemical products such as polypropylene and polyethylene, used primarily in the plastics industry, may act as a sticking point in the early conclusion of talks for the proposed free-trade agreement (FTA) between India and Oman, according to an official.</p>.<p> Negotiations for the pact, officially dubbed the Comprehensive Economic Partnership Agreement (CEPA), are in the last phase.</p>.<p> Certain domestic players from both public and private sectors are opposing duty concessions on these products under the agreement.</p>.<p> They are claiming that Oman provides huge subsidies to its industry on raw materials for the production of these petrochemical products.</p>.US Trade Representative Tai to travel to New Delhi next week for US-India trade policy forum ministerial meet.<p> According to them, if India would give duty concessions on these already subsidised products, it would be a double advantage for Omani firms.</p>.<p> The government official said that they are holding talks with domestic players on the issue.</p>.<p> Officials of the two countries concluded the second round of talks for the agreement in December last year.</p>.<p> At present the customs duties on these products are around 7.5 per cent.</p>.<p> Domestic plastic makers, however, are of the view that duty cuts will give a boost to the labour-intensive sector as raw material cost accounts for about 60 per cent of the final goods.</p>.<p> The negotiations on the text of most of the chapters have been concluded by both sides.</p>.<p> Oman is the third largest export destination among the Gulf Cooperation Council (GCC) countries.</p>.<p> The bilateral trade was USD 12.39 billion in 2022-23 as against USD 5 billion in 2018-19. India's exports have increased from USD 2.25 billion in 2018-19 to USD 4.48 billion in 2022-23.</p>.<p> According to think tank GTRI (Global Trade Research Institute), Indian goods worth USD 3.7 billion such as gasoline, iron and steel, electronics, and machinery will get a significant boost in Oman, once both sides reach a comprehensive free trade agreement.</p>.<p> India's imports from Oman stood at about USD 8 billion in 2022-23. Key products included petroleum products (USD 4.6 billion), urea (USD 1.2 billion); propylene and ethylene polymers (USD 383 million).</p>.<p> Currently, over 80 per cent of India's goods enter Oman at an average of 5 per cent import duties, the GTRI report has said adding Oman's import duty ranges from 0 to 100 per cent along with the existence of specific duties. </p>