Muscat: Discussions are underway to reconsider the tariffs, with both sides committed to deepening their 200-year-old economic relationship.
The Free Trade Agreement (FTA) between the Sultanate of Oman and the United States, active since 2009, continues to open doors for Omani products in the American market, enhancing bilateral trade and investment. Officials from both countries confirmed that the recently imposed global customs duties have not undermined the benefits of the agreement.
His Excellency Pankaj Khimji, Advisor for Foreign Trade and International Cooperation at the Ministry of Commerce, Industry and Investment Promotion, stressed that both sides are committed to ensuring bilateral trade remains free from customs and non-customs barriers. His Excellency said that the goal is to nurture Omani-American relations, which span over two centuries, and encourage American investors to explore opportunities in Oman.
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His Excellency emphasized the importance of dialogue to address differences, particularly regarding the 10% customs duty, noting that Omani exports to the U.S. surpassed 463 million Omani riyals in 2024, while American imports reached over RO 506 million.
Echoing this sentiment, Her Excellency Anna Escrohema, U.S. Ambassador to Oman, described the FTA as a “strategic asset” and highlighted that U.S. direct investment in Oman exceeded $16 billion by the third quarter of 2024, making the U.S. the second-largest investor in the Sultanate.
Khalid bin Saeed Al-Shuaibi, Chairman of the National Program for Private Sector Development and Foreign Trade (Nazdar), clarified that the FTA remains intact, ensuring that Omani products continue to enjoy preferential access to the U.S. market despite the new duties. He affirmed that negotiations are ongoing to address the tariff concerns, noting Oman’s favorable trade position given the lack of a trade surplus with the U.S.
From the private sector perspective, Saud bin Ahmed Al-Nahari, member of the Board of Directors of the Oman Chamber of Commerce and Industry, stated that while the tariffs have had some impact, they are “not worrisome at the present time.” He revealed that the Chamber has established a trade office in the U.S. to support Omani exporters and plans to send a trade delegation next May to participate in the “Choose the American Market” exhibition.
Al-Nahari added that efforts are underway to expand Omani exports and investment opportunities, with support from both the Chamber and the Commercial Attaché at the Omani Embassy in the U.S.
