Can't be good for us

Iran and Oman strengthen ties with $20 billion trade deal 

Leaders remove trade tariffs and banking hurdles, setting the stage for unprecedented economic cooperation.

Flags of Oman and Iran (Photo: esfera/ Shutterstock)

Iran and Oman are strengthening their economic cooperation, with significant steps recently taken to deepen trade ties. The head of the Iran-Oman Joint Chamber of Commerce, Jamal Rezagi Jahromi, said that tariffs on trade had been lifted and major banking problems had been resolved, including the possibility of opening personal and business accounts.

These measures, he said, are intended to bring the volume of trade between the countries to $20 billion a year.

Razagi noted that despite a history of strong political relations for 70 years, the volume of trade has not developed at the same rate. This year, trade between the two countries grew by about 42%-60%, but the overall volume remains low, and only $3-3.5 billion is expected by the end of the current Iranian year.

To deal with the obstacles, a joint committee was set up to solve other problems, including improving logistics and ensuring a regular shipping line between the countries, which would receive temporary subsidies.

A new agreement between the two countries has eliminated tariffs on products and will allow Iranian manufacturers to complete the production process in Oman and benefit from duty-free trade agreements signed by Oman with 16 countries, including the United States. This will make it easier for Iranian products to enter international markets. Rezagi stressed that resolving international issues such as the sanctions on Iran and its lack of membership in the FATF are critical to realizing its full economic potential.

Beyond economic cooperation, Oman continues to mediate between Tehran and Washington. According to reports, messages from Donald Trump and Joe Biden were conveyed to Iran via Oman on strategic issues such as the nuclear program. In addition, the Biden administration approved the transfer of $10 billion of restricted Iranian funds from Iraq to Oman, as part of efforts to maintain an open diplomatic channel.

CHannel 14 contributed to this article.


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