Latest news with #US-OmanFreeTradeAgreement
Observer
20-05-2025
- Business
- Observer
FTA offers Omani exports competitive advantage
MUSCAT, MAY 20 The Omani Economic Association (OEA) convened a session of its Economic Council under the theme 'International Customs Policies and Their Impact on the Omani Economy,' focusing on the implications of global tariffs and the benefits of the US-Oman Free Trade Agreement. The session, held at Omantel's headquarters, featured His Highness Sayyid Dr Adham bin Turki Al Said, Chairman of the Economic Committee at the Oman Chamber of Commerce and Industry; and Khalid bin Said al Shuaibi, Head of the National Programme for Investment and Export Development (Nazdaher); and was moderated by Dr Khalid bin Said al Amri, Chairman of the OEA Board. Speaking first at the session, HH Sayyid Dr Adham said, 'Today's global developments are not spontaneous; they are the result of accumulated trends, accelerated post-COVID-19. The response came as a reaction to globalization, industrial nations began subsidising their exports. The US perceived Chinese export-driven production as a threat, prompting Trump to introduce a wave of tariffs, which ultimately hurt American consumers and companies. Still, there were positive outcomes, such as new free trade agreements with the US, understandings with the UK, and the reshaping of NAFTA, from which the US now benefits, despite spending more than it produces. These tariffs have attracted some industries back to the US.' He described Trump's approach as a "shock policy", stressing that the American market remains attractive. 'The US and China are clearly diverging. Despite the friction, the US remains reliant on Chinese investments. Tariffs are likely to remain, with Trump's main goal being economic recovery and job creation in the US,' he added. Speaking to the Observer, Khalid bin Said al Shuaibi, Head of the National Programme for Investment and Export Development (Nazdaher), affirmed that the FTA between Oman and the United States remains in effect, ensuring that Omani products are exempt from standard customs duties. However, he clarified that the additional 10 per cent customs duty currently applied across all imports does affect Omani exports. 'The Free Trade Agreement (FTA) remains valid. Omani products exported to the US are not subject to standard customs duties, except for the additional 10 per cent applied across all imports. Negotiations are ongoing to address and potentially ease these charges,' he stated. Al Shuaibi emphasised that, despite this added tariff, the FTA continues to offer Omani exporters a competitive advantage in the US market, and discussions are underway to mitigate the impact of these new duties. Dr Khalid bin Said al Amri, Chairman of the Board of Directors of OEA, remarked, 'Ongoing economic disputes between the US and China continue to cast a shadow over the global economy. Former President Trump's decision to impose tariffs on over 60 countries, though delayed briefly, still impacts the global economy. With economic uncertainty prevailing, many countries are using tariffs as economic tools, a form of tax on imports.' He argued that such economic challenges can be viewed as opportunities rather than obstacles. 'They offer a chance to support national industries and encourage innovation, building a more resilient domestic economy capable of withstanding global fluctuations,' he said. He acknowledged the recent decline in oil prices and the drop in the Muscat Stock Exchange Index, but said, 'That doesn't mean we should stand idle. These global shifts must be used to facilitate trade in target markets, create new supply chains, expand and diversify markets, and develop new products. From such challenges, opportunities are born.'
Zawya
01-05-2025
- Business
- Zawya
Oman emerges as prime gateway to US market
As the United States rolls out sweeping new reciprocal tariffs, Oman's Free Trade Agreement (FTA) with the US has become more valuable than ever. Far from being a historical footnote, the 2009 FTA now positions Oman as a resilient and strategic partner for global businesses seeking stable access to the world's largest economy. On April 2, 2025, the White House announced reciprocal tariffs on a broad range of imported goods, part of a strategy to level the playing field for American exporters facing high foreign duties. Set to take full effect on July 8, these measures are already shifting global trade patterns. In this changing landscape, Oman stands out — offering preferential and in many cases duty-free, access to US markets. OMAN'S COMPETITIVE ADVANTAGE Under the US-Oman Free Trade Agreement, Omani goods have entered the US duty-free. Even with the newly imposed 10% reciprocal tariff, Omani products such as minerals, fertilisers and stones remain exempt. For other categories now subject to the 10% charge, Oman still avoids the original 'General' tariffs under US Normal Trade Relations, which typically range from 5% to 25%. This distinction is critical. While countries like Saudi Arabia and the UAE now face both the new reciprocal tariff and the existing general duties — resulting in total tariffs of 15% to 35% — Omani exporters generally pay no more than 10%. For some goods listed under Executive Order 14257, Omani exporters continue to enjoy zero tariffs altogether. REAL-WORLD EXAMPLES Consider shaving products (HTS Code 3307.10): an Omani exporter faces only the 10% reciprocal charge, while European companies shipping the same products encounter nearly 25% in combined tariffs. Similarly, Vietnamese broom exporters now contend with nearly 49% in tariffs, while Oman's total duty remains a modest 10%. This pricing gap gives manufacturers and exporters based in Oman a significant advantage in the US market, offering predictability and cost competitiveness even as global trade faces rising protectionism. CHALLENGES REMAIN Not all sectors benefit equally. Aluminium and steel exports, for instance, still face a 25% tariff under US Section 232 rules, national security measures that the FTA does not override. Furthermore, Omani producers competing directly with US manufacturers must work harder to remain competitive, as American companies (and some Canadian and Mexican firms under the USMCA) face no tariffs at all. Nonetheless, Omani companies can remain competitive by smart pricing, incorporating US-origin materials; and emphasising speed and reliability in deliveries. With strategic adjustments, many Omani goods can continue to thrive in the American market. SERVICES EXPORTS: A HIDDEN ADVANTAGE An often-overlooked strength of the US-Oman FTA is its protection of services exports. Omani firms in sectors such as IT, consulting, design, and logistics enjoy tariff-free, unrestricted access to the US market. The agreement guarantees national treatment, putting Omani service providers on equal footing with American competitors — an advantage unmatched by other Gulf countries. MANUFACTURING IN OMAN: A STRATEGIC PLAY For international companies now burdened by higher US tariffs, Oman presents an attractive alternative manufacturing hub. Firms from Asia, Africa, or Europe can relocate operations to Oman, meet the 35% local value threshold and ship goods to the US under FTA benefits, often paying zero or minimal duties. Beyond tariffs, Oman offers a stable regulatory environment, competitive energy costs, strategic geographic location, world-class infrastructure and growing incentives for investors — making it one of the region's most promising export bases to the US. 'This is a rare moment when global trade shifts create lasting opportunities,' said Ali Daud, Chairman of the Oman American Business Council (OABC). 'Oman is ready to welcome international manufacturers and help local exporters leverage access to the US market. But success will depend on smart, forward-looking decisions.' Daud emphasised that no serious company will invest in relocating operations or opening new facilities if the opportunity looks temporary. 'No one moves factories for just four years,' he said. 'Oman must focus on durable sectors — products the US cannot easily manufacture itself, or sectors that have consistently faced high tariffs under different American administrations.' Beyond tariffs, Oman offers a stable regulatory environment, competitive energy costs, strategic geographic location, world-class infrastructure and growing incentives for investors — making it one of the region's most promising export bases to the US. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
30-04-2025
- Business
- Observer
Oman emerges as prime gateway to US market
As the United States rolls out sweeping new reciprocal tariffs, Oman's Free Trade Agreement (FTA) with the US has become more valuable than ever. Far from being a historical footnote, the 2009 FTA now positions Oman as a resilient and strategic partner for global businesses seeking stable access to the world's largest economy. On April 2, 2025, the White House announced reciprocal tariffs on a broad range of imported goods, part of a strategy to level the playing field for American exporters facing high foreign duties. Set to take full effect on July 8, these measures are already shifting global trade patterns. In this changing landscape, Oman stands out — offering preferential and in many cases duty-free, access to US markets. OMAN'S COMPETITIVE ADVANTAGE Under the US-Oman Free Trade Agreement, Omani goods have entered the US duty-free. Even with the newly imposed 10% reciprocal tariff, Omani products such as minerals, fertilisers and stones remain exempt. For other categories now subject to the 10% charge, Oman still avoids the original 'General' tariffs under US Normal Trade Relations, which typically range from 5% to 25%. This distinction is critical. While countries like Saudi Arabia and the UAE now face both the new reciprocal tariff and the existing general duties — resulting in total tariffs of 15% to 35% — Omani exporters generally pay no more than 10%. For some goods listed under Executive Order 14257, Omani exporters continue to enjoy zero tariffs altogether. REAL-WORLD EXAMPLES Consider shaving products (HTS Code 3307.10): an Omani exporter faces only the 10% reciprocal charge, while European companies shipping the same products encounter nearly 25% in combined tariffs. Similarly, Vietnamese broom exporters now contend with nearly 49% in tariffs, while Oman's total duty remains a modest 10%. This pricing gap gives manufacturers and exporters based in Oman a significant advantage in the US market, offering predictability and cost competitiveness even as global trade faces rising protectionism. CHALLENGES REMAIN Not all sectors benefit equally. Aluminium and steel exports, for instance, still face a 25% tariff under US Section 232 rules, national security measures that the FTA does not override. Furthermore, Omani producers competing directly with US manufacturers must work harder to remain competitive, as American companies (and some Canadian and Mexican firms under the USMCA) face no tariffs at all. Nonetheless, Omani companies can remain competitive by smart pricing, incorporating US-origin materials; and emphasising speed and reliability in deliveries. With strategic adjustments, many Omani goods can continue to thrive in the American market. SERVICES EXPORTS: A HIDDEN ADVANTAGE An often-overlooked strength of the US-Oman FTA is its protection of services exports. Omani firms in sectors such as IT, consulting, design, and logistics enjoy tariff-free, unrestricted access to the US market. The agreement guarantees national treatment, putting Omani service providers on equal footing with American competitors — an advantage unmatched by other Gulf countries. MANUFACTURING IN OMAN: A STRATEGIC PLAY For international companies now burdened by higher US tariffs, Oman presents an attractive alternative manufacturing hub. Firms from Asia, Africa, or Europe can relocate operations to Oman, meet the 35% local value threshold and ship goods to the US under FTA benefits, often paying zero or minimal duties. Beyond tariffs, Oman offers a stable regulatory environment, competitive energy costs, strategic geographic location, world-class infrastructure and growing incentives for investors — making it one of the region's most promising export bases to the US. 'This is a rare moment when global trade shifts create lasting opportunities,' said Ali Daud, Chairman of the Oman American Business Council (OABC). 'Oman is ready to welcome international manufacturers and help local exporters leverage access to the US market. But success will depend on smart, forward-looking decisions.' Daud emphasised that no serious company will invest in relocating operations or opening new facilities if the opportunity looks temporary. 'No one moves factories for just four years,' he said. 'Oman must focus on durable sectors — products the US cannot easily manufacture itself, or sectors that have consistently faced high tariffs under different American administrations.' Beyond tariffs, Oman offers a stable regulatory environment, competitive energy costs, strategic geographic location, world-class infrastructure and growing incentives for investors — making it one of the region's most promising export bases to the US.
Zawya
17-04-2025
- Business
- Zawya
New US tariffs may challenge Omani exporters, experts warn
Muscat – Experts have cautioned that the new US tariffs could present challenges for Omani exporters, potentially impacting national trade flows and competitiveness of local products. The concerns were raised during a virtual workshop titled 'US Tariffs and Their Impact on Omani Exports' hosted by Oman Chamber of Commerce and Industry (OCCI) on Wednesday. The event focused on potential implications of the US tariffs for Omani export companies and the broader economy. Participants also discussed strategies to mitigate negative effects and sustain the global competitiveness of Omani products. H H Sayyid Dr Adham bin Turki al Said, Chairman of OCCI's Economic Committee, described the global tariffs as a 'new challenge' for Oman's economy. 'Trade flows could be affected and we must prepare accordingly,' he said. Saud bin Ahmed al Nahari, board member of the chamber, emphasised the importance of such seminars in helping Omani businesses adapt to evolving global trade policies. 'This is part of our broader efforts to ensure companies remain informed and resilient, and help them prepare for any potential impacts, as the new US customs tariffs may pose challenges for Omani exporters,' he added. Despite the challenges, some advantages remain. Emmee Haun, US-Oman Free Trade Agreement Advisor and CEO of Cross Border Connections, highlighted the continuing benefits of the US-Oman Free Trade Agreement (FTA), which she said provides Omani products a competitive edge over goods from countries without such agreements. 'This constitutes an important element in mitigating the effects of the new customs tariffs.' Michael Ford, President of Tradebridge Consulting, advised Omani firms to closely monitor changes in tariff regulations and ensure proper classification of goods and origin documentation. 'Leveraging the exemptions and facilities under the FTA is key to minimising the impact,' he noted. The workshop underscored the need for proactive measures and enhanced coordination between government bodies and the private sector to safeguard Oman's export performance amid shifting international trade dynamics.
Muscat Daily
16-04-2025
- Business
- Muscat Daily
New US tariffs may challenge Omani exporters, experts warn
Muscat – Experts have cautioned that the new US tariffs could present challenges for Omani exporters, potentially impacting national trade flows and competitiveness of local products. The concerns were raised during a virtual workshop titled 'US Tariffs and Their Impact on Omani Exports' hosted by Oman Chamber of Commerce and Industry (OCCI) on Wednesday. The event focused on potential implications of the US tariffs for Omani export companies and the broader economy. Participants also discussed strategies to mitigate negative effects and sustain the global competitiveness of Omani products. H H Sayyid Dr Adham bin Turki al Said, Chairman of OCCI's Economic Committee, described the global tariffs as a 'new challenge' for Oman's economy. 'Trade flows could be affected and we must prepare accordingly,' he said. H H Sayyid Dr Adham bin Turki al Said, Chairman of OCCI's Economic Committee Saud bin Ahmed al Nahari, board member of the chamber, emphasised the importance of such seminars in helping Omani businesses adapt to evolving global trade policies. 'This is part of our broader efforts to ensure companies remain informed and resilient, and help them prepare for any potential impacts, as the new US customs tariffs may pose challenges for Omani exporters,' he added. Despite the challenges, some advantages remain. Emmee Haun, US-Oman Free Trade Agreement Advisor and CEO of Cross Border Connections, highlighted the continuing benefits of the US-Oman Free Trade Agreement (FTA), which she said provides Omani products a competitive edge over goods from countries without such agreements. 'This constitutes an important element in mitigating the effects of the new customs tariffs.' Michael Ford, President of Tradebridge Consulting, advised Omani firms to closely monitor changes in tariff regulations and ensure proper classification of goods and origin documentation. 'Leveraging the exemptions and facilities under the FTA is key to minimising the impact,' he noted. The workshop underscored the need for proactive measures and enhanced coordination between government bodies and the private sector to safeguard Oman's export performance amid shifting international trade dynamics.
