India and Oman will sign a Comprehensive Economic Partnership Agreement (CEPA), announced by PM Modi through a press release on Saturday. Welcoming Oman’s Sultan, Haitham Bin Tarik, and PM Modi stated that Oman-India’s strong relationship with the Indian-origin living in Oman is a big example of a healthy relationship between India and Oman.
“A large number of Indian origins consider Oman as their second home. These people are the live examples of our close ties and friendship,” said PM Modi.
“Our mutual closeness is not related to geography, but it is also reflected in our trade spanning thousands of years, our culture and our common priorities,” read the press release.
What is CEPA?
The Comprehensive Economic Partnership Agreement (CEPA) is a free trade agreement that aims to liberate trade and investment between two nations. It generally includes goods, services and investments. The India-Oman CEPA is still under negotiation, but both countries are committed to finalizing it soon.
In a press release, PM Modi said, “I am glad that discussion on the CEPA Agreement is ongoing between the two sides. I hope that we will be able to sign this agreement soon, which will add a new chapter to our economic cooperation.”
So, there is no official announcement regarding this, but it is expected to be signed soon.
Why India-Oman Will Sign the CEPA Agreement?
As the CEPA Agreement is still under negotiation, both countries are committed to finalizing it soon. Moreover, the reason for which both countries are into signing the agreement, that is, it will boost bilateral trade and investment by reducing tariffs, streamlining customs procedures and promoting cooperation in various sectors. Furthermore, it is expected to cover goods, services and investments.
The Five Other Key Documents:
The two countries have adopted a new ‘India-Oman Joint Vision’ that aims at the future partnership of India-Oman to focus on ten different areas like politics, trade, economy, security, art and culture, etc.
Additionally, an agreement on MOUs (Memorandum of Understanding) to strengthen the ability to prevent and investigate financial crimes like money laundering, terrorist funding, and other related crimes.
Also, the cultural exchanges, and collaboration in areas like music, dance and many more. But especially, collaboration in promoting the IT sector and startups, to increase jobs and employment.
Recently, the Oman-India Joint Investment Fund announced a third tranche of $300 million for the fund that will attract investments from Oman into India’s fast-growing areas.
Expectations from the Agreement:
The agreement is expected to bring a win-win for the two nations, that will lead to increased trade, investment and cooperation in various sectors. It will mark a significant step towards bilateral relations and Free Trade Agreement (FTA) in the future.
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