Free Trade Agreements In Oman

• Published date: 08 February 2023
• Subject Matter: International Law, International Trade & Investment
• Law Firm: Sariya Al Hadi & Ali Al Rashdi & Co.
• Author: Sariya Al Hadi & Ali Al Rashdi & Co

What are Free Trade Agreements?

A free trade agreement is an agreement between two or more countries to reduce trade barriers. A free trade policy allows goods and services to be bought and sold across international borders with few or no government tariffs, quotas, subsidies, or prohibitions impeding their exchange.

How does Free Trade Agreement work?

In today's world, free trade policy is frequently implemented through the formal and mutual agreement of the nations involved. On the other hand, a free-trade policy may simply be the absence of any trade restrictions.

To promote free trade, a government does not need to take specific actions. This hands-off approach is known as "laissez-faire trade" or trade liberalisation.

Governments that have implemented free-trade policies or agreements do not necessarily relinquish all control over imports and exports or eliminate all protectionist policies. Few free trade agreements (FTAs) in modern international trade result in completely free trade.

FTA in Oman

The Sultanate of Oman is a high-income country and one of the Arab world's most developed and stable countries. Oman has been a member of the World Trade Organization (WTO) since 2000. Not to forget, Oman is also a party to The Free Trade Agreement Between The Efta States And The Member States Of The Co-Operation Council For The Arab States Of The Gulf.

Oman's membership in the Gulf Cooperation Council (GCC) has been a key factor in shaping Omani trade policy. This has included reviewing and revising trade policy in areas such as contingent trade remedies, government procurement, commercial firms, and investment. Oman is also a member of the Greater Arab Free Trade Area and has a bilateral trade agreement with the US that went into effect in 2009. Fuels and mining products account for 79% of Oman's exports, with manufacturing accounting for 10% and agriculture accounting for 2%.

The FTA between the United States and Oman, which went into effect on January 1, 2009, builds on existing FTAs to promote economic reform and openness. Implementing the comprehensive agreement's obligations will increase export opportunities for US goods and services providers, strengthen Oman's trade and investment liberalization, and strengthen intellectual property rights protection and enforcement.

The FTA Joint...