UPSC-Relevant News Items

1. India, Oman Set to Sign Free Trade Agreement (CEPA) to Boost Strategic Economic Ties

Page: 3

Summary:

• • India and Oman are finalizing a Comprehensive Economic Partnership Agreement (CEPA) to strengthen economic relations, focusing on energy, infrastructure, food security, and startups.
• • Oman is a key strategic partner and India's third-largest export destination in the GCC, with bilateral trade projected at US$10.61 billion in FY 2024-25.
• • The agreement will cut customs duties on traded goods and ease trade norms, vital for providing India access to key maritime routes in the volatile Gulf region.
• • Strategically, India secured access to the critical Duqm port (Oman) in 2018, enhancing naval cooperation and anti-piracy operations in the Indian Ocean Region (IOR).

Additional Facts:

• • The Department of Commerce (Ministry of Commerce and Industry) manages the negotiation and administration of CEPA/FTAs, aligning them with the overarching Foreign Trade Policy (FTP).
• • Ratification and implementation of FTAs fall under Article 253 of the Constitution, allowing Parliament to legislate modifications to tariffs through mechanisms like the Customs Act, 1962.
• • India's engagement with the Gulf Cooperation Council (GCC) is guided by the 'Look West Policy' aimed at enhancing ties with West Asian nations.

Linkage with UPSC course:

---