What are the duty concessions on petrochemical products a sticking point in India-Oman FTA talks

The duty concessions on petrochemical products have emerged as a sticking point during the India-Oman Free Trade Agreement (FTA) talks. Here are the specific issues causing friction: 1. Tariff reduction: India has been seeking tariff reduction on petrochemical products imported from Oman. The objective is to secure lower import duties, thereby promoting competitiveness and market access for Indian businesses. 2. Protection of domestic industry: Oman, on the other hand, aims to protect its domestic petrochemical industry by maintaining higher import duties on these products. This measure is intended to safeguard local companies from potential market disruptions caused by increased competition. 3. Bilateral trade balance concerns: Negotiators from Oman have expressed concerns over maintaining a balanced trade relationship. Granting duty concessions on petrochemicals could potentially lead to an influx of Indian exports, which may adversely impact Oman's trade balance. 4. Future investments: Oman is keen on attracting investments in the petrochemical sector from India. However, achieving a balanced agreement that addresses the concerns of both parties is crucial to ensure a favorable environment for such investments. Finding a mutually acceptable solution on the duty concessions for petrochemical products remains a key challenge that needs to be addressed during the India-Oman FTA negotiations.