Context
• PM Modi and Commerce Minister Goyal expected to visit Oman to sign a Free Trade Agreement (FTA).
• India–Oman negotiations began in Nov 2023 for a Comprehensive Economic Partnership Agreement (CEPA).
• Five rounds completed; all aspects agreed; final signing awaits formal approvals.
• India is also in final-stage FTA talks with New Zealand and the EU.
Prelims Notes:
What is a Free Trade Agreement (FTA)?
• Agreement between countries to reduce or eliminate tariffs on goods.
• Focus: Trade in goods, limited coverage of services.
• Aim: Cheaper imports/exports, increased trade flow.
What is a Comprehensive Economic Partnership Agreement (CEPA)?
• A broader, deeper trade pact.
• Covers: Goods, services, investments, IPR, digital trade, standards, regulatory cooperation.
• Aim: Long-term economic integration beyond just tariff cuts.
