Oman - World trade indicators 2009 (Vol. 1 of 2) : Trade brief

 72733 v1 World Trade Indicators 2009/10 Oman Trade Brief Trade Policy External Environment Since mid 1990s, Oman has been implementing a Omani exports have good access to international development strategy that centers on liberalizing its markets, especially in comparison to its region and trade regime, and since 2003, it has been applying the income group. Oman’s Market Access TTRI4 Gulf Cooperation Council (GCC) common external (including preferences) of 1.4 percent is lower than the tariff, which has two rates: 0 and 5 percent.1 Based on high-income non-OECD country and high-income its 13.2 percent MFN Tariff Trade Restrictive Index country group averages of 2.7 and 3.6 percent, (TTRI)2, Oman’s trade regime is more restrictive than respectively. The simple average of the overall rest of that of an average high-income non-OECD (4.0 the world tariff (including preferences) faced by the percent) or high-income (3.9 percent) country. country’s exports is 9.8 percent. When its trade flows Agricultural products in Oman receive the highest are taken into consideration, it is apparent that Omani protection, with a TTRI of 38 percent, compared to exports have very good access to international the average of 6.2 percent for non-agricultural markets. Oman mainly exports hydrocarbons, which products. Based on the TTRI, Oman ranks 112th out traditionally do not face high tariffs, explaining the of 125 countries (where 1st is least restrictive). The very low 1.1 percent weighted rest of the world tariff country’s simple average of the MFN applied tariff in (including preferences). The Omani rial stayed pegged 2008 was 5.5 percent, after having been cut from 7.7 to the U.S. dollar at a rate of 0.4 rials per dollar percent in 2002 when Oman started applying the GCC through 2008.5 common external tariff. If preferences are taken into account it is apparent that the country’s trade regime is Oman’s free trade agreement (FTA) with the United actually a bit more liberal, since its simple average of States entered into force on January 1, 2009.6 The the applied tariff is 5.2 percent. Oman has a maximum country also gained better access to markets as a MFN applied tariff, excluding alcohol and tobacco, of member of the Gulf Cooperation Council which 100 percent, which it levied on pork and pork signed an FTA with Singapore in December 2008 and products.3 The government’s trade policy space, as another one with European Free Trade Association measured by the wedge between bound and applied (EFTA) in June 2009.7 tariffs (the overhang), has been relatively constant in the recent years and in 2008 it was 8.3 percent. Oman Behind the Border Constraints has a very liberal services trade regime, and as such is ranked 13th out of 148 countries according to the In terms of the conduciveness of its institutional GATS Commitment Index. environment to business, Oman ranked 65th out of 183 countries in the Ease of Doing Business index for 2009. Additionally, Oman’s Logistics Performance Index score, which reflects the extent of trade facilitation in the country, is below the income group average, reflecting a less conducive climate for trade. Oman scores 2.92 on a scale of 1 to 5, with 5 being the highest score, while the average for the high- Unless otherwise indicated, all data are as of August 2009 income group is 3.67. This ranks Oman 48th out of and are drawn from the World Trade Indicators 2009/10 150 countries in the world. Its strongest logistics Database. The database, Country Trade Briefs and indicator is timeliness of shipments in reaching their Trade-at-a-Glance Tables, are available at destination, while it needs most improvement in the http://www.worldbank.org/wti. area of ease and affordability of arranging shipments. If using information from this brief, please provide the following source citation: World Bank. 2010. “Oman Trade Outcomes Trade Brief.