Oman’s Entry to the World Trade Organisation, Trade Liberalisation and Trade Achievements

Abstract

This paper provides an exploratory account of Oman’s trade policy and performance following membership to the World Trade Organisation (WTO) in 2000, revealing significant progress in shaping an outward-oriented competitive economy. Oman’s trade contributes to some 94 % of its gross domestic product (GDP) and trade surplus has been recorded consistently since 2000. Oil and gas contribute to just over 67 % of Oman’s export income while motor vehicles principally designed for transport represent the largest import expenditure. Much of Oman’s trade is concentrated in the Asian subcontinent, amounting to some 78 % of total imports and 58 % of total exports. China, Japan and India are Oman’s top three export markets for oil. For non-oil products, the United Arab Emirates is its major export market as well as the main import market. While Oman’s trade regime is liberal, it is more restrictive than that of an average high-income non-Organization for Economic Co-operation and Development country. Oman’s continuous reform of trade law and practices in several areas with greater conformity with the provisions of the WTO is necessary for maintaining the momentum in trade performance.