Latest news with #USFreeTradeAgreement
Observer
16-04-2025
- Business
- Observer
FTA to soften blow of US tariffs on Omani exports
MUSCAT: The Oman Chamber of Commerce and Industry (OCCI) organized a virtual workshop on Tuesday titled, 'US Tariffs and Their Impact on Omani Exports', focusing on the recent executive decision by the United States regarding reciprocal tariff measures. The session addressed the potential repercussions of the new policy on Omani exporting companies and the broader national economy. The event also highlighted proposed mechanisms to mitigate any negative outcomes and discussed strategies for Omani institutions and businesses to preserve their competitiveness in the American and global markets. His Highness Sayyid Dr Adham bin Turki Al Said, Chairman of the Economic Committee at OCCI, emphasized the significance of the new tariffs, stating: 'The imposition of uniform global customs tariffs by the US represents a significant challenge for Omani trade, especially regarding bilateral commerce. However, the continued benefits of the Oman–US Free Trade Agreement (FTA) offer a competitive edge compared to other countries. Omani institutions must closely monitor these developments and verify tariff codes and the country of origin to ensure they continue to benefit from exemptions and advantages granted under the agreement.' He further stressed the importance of proactive planning to ensure that Omani products remain competitive in US and global markets. Shaikh Saud bin Ahmed al Nahari, Board Member of OCCI, highlighted that the session is part of the Chamber's efforts to keep pace with changes in global trade policies and help Omani companies prepare for any potential impacts. 'Despite the existing FTA between Oman and the US, the new tariff measures have included Omani exports. Government agencies in Oman are actively engaging with their US counterparts to review the implications of this policy. Meanwhile, OCCI continues to educate business owners and exporters through workshops and expert-led discussions to enhance their readiness and resilience.' Amy Hawn, Managing Partner at the Omani Trade Office in the United States, noted that the Oman–US FTA still provides Omani exports with a competitive margin compared to non-FTA countries, which can help soften the blow of the new tariff regime. Michael J Ford, President of TradeBridge Consulting, stressed the importance for Omani companies to stay informed about tariff updates and to regularly verify their Harmonized System (HS) codes and rules of origin to fully capitalize on the FTA exemptions. The session was part of OCCI's ongoing commitment to supporting the private sector in understanding global commercial shifts and preparing for potential risks to trade. The platform enabled open dialogue on emerging challenges and opportunities, fostering direct interaction between Omani business leaders and international trade experts.
Daily Tribune
15-04-2025
- Business
- Daily Tribune
MPs Back 10% Tariff on US Imports
MPs have voted to slap a 10 per cent tariff on goods arriving from the United States, describing the measure as a direct response to American duties on Bahraini exports. The proposal was raised as a matter of urgency by Second Deputy Speaker Ahmed Qarata, backed by four others, and cleared during Tuesday's parliamentary session. It draws on a clause in the Bahrain–US Free Trade Agreement which allows reciprocal treatment. 'This proposal seeks to impose a 10 per cent customs duty on imports from the United States, in line with the principle of reciprocity,' said Mr Qarata during the debate. He told MPs the idea came on the heels of a recent move by the US administration to apply new tariffs to products from several countries, with Bahrain among them. A 10 per cent charge was placed on certain Bahraini exports. 'In response, and applying the same rate, we are putting forward this urgent proposal to tax American imports accordingly,' he said. Mr Qarata added that the tariff could bring in extra income for the public purse, with the funds channelled into other areas of government spending. The matter will now be passed to ministers for review.
Observer
03-04-2025
- Business
- Observer
US slaps 10% tariffs on Oman
MUSCAT: US President Donald Trump's surprise announcement of sweeping new tariffs — unveiled during what he dubbed 'Liberalisation Day' — has rattled global markets and introduced a fresh wave of uncertainty in international trade. Among the most exposed are smaller economies such as Oman, which may face disproportionate fallout despite their limited role in the US trade imbalance. The measures include a 25-per cent tariff on all foreign-made vehicles, effective immediately, alongside a 10-per cent baseline tariff on all imports starting on April 5, and country-specific reciprocal tariffs of up to 49 per cent effective on April 9. Canada and Mexico appear to be exempt under the US-Mexico-Canada Agreement (USMCA), though earlier tariffs on selected goods remain. For China, cumulative duties will now reach 54 per cent, combining the new 34 per cent levy with the existing 2 per cent tariffs. These aggressive steps are being framed by Trump as necessary to address America's long-standing trade deficits. However, the rationale and underlying data — particularly concerning smaller and Gulf economies — have drawn scrutiny. An Omani expert in trade and economic policy questioned the consistency of the figures presented. 'Take China, for example. The US had a trade deficit of $295.4 billion with China in 2024. Dividing that by the $438.9 billion in imports gives you the 67 per cent cited by the Trump team. That math works,' she explained. 'But for several other countries, especially in the GCC, the figures appear inconsistent or arbitrary.' Oman typically runs a trade surplus with the US — meaning the US exports more to Oman than it imports. Additionally, Oman maintains a 5-per cent universal import tariff for most countries (excluding GCC partners), but the US is exempt due to the Oman–US Free Trade Agreement (FTA), in force since 2009. This means no tariffs apply, and the only cost on US goods is Oman's 5 per cent value-added tax (VAT). 'I don't see how Oman ends up facing a 10-per cent tariff under this logic,' the expert added. 'Yet it appears we've been included in the baseline category regardless.' This misclassification could indicate a lack of data precision or a broader political motive. 'Larger economies like Saudi Arabia may be in a better position to negotiate or challenge the classification. But Oman lacks that level of leverage,' she said. Economists warn that a full implementation of the tariffs, especially if retaliated by affected nations, could drag down global exports and manufacturing output, triggering a slowdown in global GDP. For oil-exporting nations like Oman, the effects could be compounded. 'A drop in global trade often reduces demand for oil, which could pressure oil prices,' the expert said. 'That would directly impact Oman's fiscal revenues and economic momentum.' One of the most surprising — and concerning — aspects of the new tariffs is their reach. Some of the world's poorest countries, such as South Sudan, Burundi and the Central African Republic, have been included among those facing duties of up to 49 per cent.
