A demand for Customs duty on petrochemical products such as polypropylene and polyethylene, which are used primarily in the plastics industry, may act as a sticking point in the early conclusion of talks for the proposed free-trade agreement (FTA) between India and Oman, according to an official.
Negotiations for the pact, officially dubbed the Comprehensive Economic Partnership Agreement (CEPA), are in the last phase.
Some domestic players from both public and private sectors are opposing duty concessions on these products under the agreement. They claim that Oman provides huge subsidies to its industry on raw materials for the production of these petrochemical products. According to them, if India would give duty concessions on these already subsidised products, it would be a double advantage for Omani firms. The government official said that they are holding talks with domestic players on the issue.
