Muscat – In a world where international trade plays a pivotal role in economic growth, Oman stands as one of the select few nations with a Free Trade Agreement (FTA) with the United States. Recently celebrating its 15th anniversary, the US-Oman FTA marks a milestone in bilateral relations between two countries. The Oman American Business Council (OABC), the official affiliate of the US Chamber of Commerce in Oman, has launched new services to empower Omani companies to utilise the US-Oman FTA and unlock trading opportunities.

In an interview with Muscat Daily, Rebecca Olson, CEO of OABC, sheds light on practical strategies to maximise the benefits of the US-Oman FTA. She discusses OABC’s new initiatives aimed at facilitating Omani exporters’ access to the US market and highlights key opportunities.

What ambitious plans has OABC outlined for the year ahead – any new emphasis on exports from Oman to the US?

For many years, people have been saying that the US-Oman FTA is underutilised and that people are not aware of the FTA. In some respects, we absolutely agree. The sky is the limit with the FTA, and sadly, we have not yet begun to reach its full potential. In partnership with Oman’s Ministry of Commerce, Industry and Investment Promotion and the US Embassy in Muscat, OABC has created high-quality videos, published guides and papers, and held awareness events. However, we now aim to go beyond merely discussing the incredible unique opportunities the FTA provides and instead, focus on practical actions.

The US has only 20 free trade agreements, and it seems unlikely that they will be signing more anytime soon. Duty-free access for Omani exporters to the world’s largest market is an incredible opportunity, provided people understand how to export to the US. So, with that said, we have ambitious plans this year – launching not one, but three new services for companies and individuals interested in utilising the FTA: Gateway USA, US Export Compass, and US-Oman Import Easy.

How do you propose to facilitate Omani companies who are interested to export to the US market?

We recognise the immense potential for Omani businesses in the American market. To bridge the gap, we have launched the three new programmes mentioned earlier as part of our commitment to trade development, and expanded our team. We have brought Harshal Dutia onto our team, who brings over eight years of experience in this field. Harshal will work hands-on with companies, assisting them in thorough market research to identify product-market fit. He will provide guidance to companies on communication with US companies, marketing techniques and materials, finding buyers, utilising the quick shipping routes from Oman to the US, as well as regulations and certifications required for the US market.

Additionally, under the programme, we will facilitate and support participation in trade shows and industry events in the US and across the MENA region to connect Omani businesses with potential US buyers and distributors.

Can Oman also serve as a channel for exporters from other countries to access the US market? Are any particular countries currently in focus?

It definitely can be. Although the regulations for exporting from Oman under the FTA are stringent and depend on several factors. The most important factor being that the goods should be ‘Made in Oman’. In case raw materials are imported into Oman, there should be a certain amount of value addition in Oman to qualify the goods as ‘Made in Oman’ to utilise the FTA. This presents an opportunity for companies in other countries to use Oman as a gateway to process or assemble their goods in Oman for export to the US. We see significant potential for Indian companies to utilise this opportunity when the Oman-India FTA is in place.

What are the most sought-after Omani products for exports to the US, and is there already a longstanding tradition in this regard?

There is a significant export of processed metals and seafood from Oman to the US, although this is just the tip of the iceberg. Oman has been exporting to the US since the early 2000s. There is tremendous potential in the metals industry, with Omani goods boasting the best quality, plants, and processes, along with quick shipping lines to the US.

The Omani fresh and processed foods industry has not yet penetrated the US market extensively. There is significant demand for food items such as dates and flour, in which Oman has amazing products and brands. The Omani seafood industry is already exporting a few domestic varieties of fish to the US. With the government and private sector contributing to aquaculture and fish farming, there is a lot of potential to export these to the US.

When it comes to success stories, there are some clear models: Made in Oman plastic products are used in tens of thousands of hospitals and other facilities throughout the US. Interestingly, Amouage has set up a standalone store, following quick growth in the US market. Other high-quality Omani products like honey could be marketed carefully to the luxury segment.

What are the key benefits that Omani exporters can expect when trading with the US, and have there been any new legislation on both sides to facilitate smooth trade?

The first and most important key benefit Omani exporters have is the FTA. They have an advantage that companies from only a few other countries possess. It gives them a price advantage at the first step of doing business. Secondly, the US market has a massive consumer base with diverse spending habits. Finding demand for niche products which Oman offers is much easier in a market like the US.

Are there any trade shows in the US lined up in the coming months wherein Omani companies can participate to showcase their products?

Yes, there are several upcoming trade shows where Omani companies can participate to showcase their products. There is IDDBA (International Dairy, Deli, Bakery Association) in Houston, Texas, in June where Omani flour mills and processed food manufacturers can participate. There is the American Food and Beverage Show in September in Miami, where all fresh foods, processed foods, and seafood suppliers can attend. This is one of the largest food and beverage expos in the US. Then there is Aluminum USA in May in Tennessee and Metalcon in October in Tennessee, where Omani metal processing and manufacturing companies can participate.

There is also a world-famous seafood expo in Boston each March, and the private label show in Chicago in November. This is a great place for exporters who want to sell a large volume of products to buyers but are not needing their specific brand to appear on the packaging. Let Walmart or Costco re-label as Kirkland or some other brand and distribute throughout their outlets. We recommend setting up meetings on either side of a trade show and using it as a base to then reach more buyers on the same trip. OABC can help Omani companies with this.

Does the US have any specific guidelines for Omani exporters regarding acquiring due certification or other logistics for long-term associations?

Yes, the USA has regulations in place for most products. Products require specific certification relevant to the US. These regulations can be from federal agencies such as the Food and Drug Administration (FDA) for food and medical products, and others from individual states as per their regulations. The US has a risk-based approach where higher-risk products have stricter certification requirements. It is advised to Omani companies to understand the US standards for their products, ensure their supply chain is in place along with their logistic partners for efficient deliveries and cost-effectiveness.