U.S.-Oman Free Trade Agreement

The United States entered into a Free Trade Agreement (FTA) with Oman on January 1, 2009. The FTA between the United States and Oman spurs investment and trade in goods and services by

  • Eliminating most tariff and nontariff barriers.
  • Expediting the movement of goods and the provision of services.
  • Strengthening protections for investors (including allowing them to fully own a business without a local partner).
  • Safeguarding intellectual property rights, labor and environmental standards, and dispute settlement procedures to improve the regulatory climate for bilateral trade and investment.

100% of bilateral trade in industrial and consumer products will become duty-free immediately upon entry into force of the Agreement. In addition, Oman and the United States will provide each other immediate duty-free access on virtually all products in their tariff schedules and will phase out tariffs on the remaining handful of products within ten years.

The agreement covers all agricultural products. Oman will provide immediate duty-free access for current U.S. agricultural exports in 87% of agricultural tariff lines. The United States will provide immediate duty-free access for 100% of Oman’s current exports of agricultural products in the United States. Both Oman and the United States will phase out tariffs on the remaining products in ten years.

The FTA provides fully reciprocal market access for U.S. textile and apparel products. The United States and Oman will eliminate tariffs on the same schedule on a product-by-product basis. For the majority of products, tariffs will be eliminated either immediately or in five years. The Agreement requires textile and apparel products to contain either U.S. or Omani yarn and fabric in order to qualify for duty-free treatment. However, in order to allow U.S. and Omani producers to develop and expand business contacts, the Agreement also provides, on a temporary basis, duty-free treatment for limited quantities of textile and apparel products that do not meet this requirement.

For questions about potential trade barriers, please contact the U.S. Embassy at: muscatcommercial@state.gov, copying the U.S. Department of Commerce Trade Agreement Compliance Program at: tcc@mail.doc.gov. To find out more about how the Trade Compliance Center can help, please visit: tcc.export.gov