The United States–Oman Free Trade Agreement (USOFTA), implemented in 2009, established a modern, transparent, and mutually beneficial framework for trade and investment between the two countries. As one of the most advanced agreements in the Gulf region, it provides duty-free access for nearly all U.S. goods, ensures fair competition for services, and strengthens intellectual property protection—making Oman a strategic hub for exporters seeking access to the Arabian Peninsula and beyond.

Oman’s stable economy, business-friendly regulations, and strategic port infrastructure (including Sohar and Duqm) make it a vital link in the U.S. supply chain network across the Middle East, Africa, and South Asia.

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Overview of U.S.–Oman Trade

• U.S. Exports to Oman: Over $1.5 billion annually, led by machinery, vehicles, aircraft, agricultural goods, and industrial equipment.
• Omani Exports to the U.S.: Roughly $1 billion, primarily aluminum, fertilizers, and chemicals.
• Tariff Treatment: Nearly all consumer and industrial goods trade duty-free under USOFTA.
• Trade Role: Oman acts as a logistics and re-export gateway for U.S. goods entering Gulf Cooperation Council (GCC) markets.

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Key USOFTA Advantages for U.S. Exporters

1. Full Tariff Elimination: All tariffs on U.S. industrial and consumer goods have been removed, including automotive, chemical, and machinery products.
2. Services and Investment Access: U.S. firms receive national treatment in banking, insurance, telecommunications, and professional services.
3. Modern Customs Procedures: Electronic clearance systems, pre-arrival processing, and transparent import documentation standards.
4. Strong IP Protections: Comprehensive patent, copyright, and trademark enforcement aligned with international standards.
5. Digital Trade and E-Commerce: Early inclusion of digital trade provisions supports SaaS, fintech, and cloud-based services exports.

These advantages make Oman an attractive, low-barrier destination for U.S. companies seeking long-term commercial presence in the Gulf.

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Strategic Export Opportunities

Sector	Opportunity	Compliance Note
Energy & Cleantech	Oman’s Vision 2040 promotes renewable energy, green hydrogen, and carbon capture projects	Verify conformity standards and environmental certifications
Industrial Equipment & Machinery	Expanding logistics and construction sectors increase demand for U.S. machinery	Confirm HTS classification and origin documentation
ICT, Cloud & Cybersecurity	Oman’s National Digital Strategy drives investment in data infrastructure and cloud adoption	Ensure compliance with data protection and cross-border data flow provisions
Aerospace & Defense	Ongoing modernization of Oman’s aviation and defense sectors supports U.S. exports	Review export licensing requirements under ITAR and EAR
Agricultural & Food Products	Rising demand for U.S. grains, dairy, and processed foods	Check labeling, halal certification, and sanitary requirements

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Rules of Origin and Documentation

To qualify for duty-free benefits under USOFTA, products must meet specific rules of origin proving substantial transformation or sufficient regional value content. Exporters should:

• Prepare a USOFTA Certificate of Origin that details qualifying materials and production steps.
• Retain all documentation for at least five years for potential customs verification.
• Confirm that goods meet the tariff shift or RVC requirements outlined in Annex 4-A.
• Coordinate with U.S. Customs and Border Protection (CBP) and Oman Customs for binding rulings if origin or classification is unclear.
• Maintain digital compliance systems for certificate generation and audit readiness.

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Emerging Trade and Market Insights

• Green Hydrogen & Renewables: Oman is investing heavily in renewable energy, creating opportunities for U.S. exporters in clean technology and engineering services.
• Port and Logistics Expansion: Major developments at Duqm and Sohar ports enable U.S. companies to establish re-export operations into Africa and Asia.
• Digital Infrastructure Growth: Oman’s commitment to a knowledge economy supports exports of U.S. cloud, cybersecurity, and software products.
• Manufacturing Partnerships: U.S. firms can take advantage of Oman’s industrial zones for joint ventures and regional assembly under preferential trade terms.
• Healthcare Modernization: Investment in hospitals and medical technology offers growing potential for U.S. diagnostics and equipment exporters.

These developments make Oman one of the most forward-looking and reliable trade destinations in the Middle East.

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Why It Matters for Exporters

The U.S.–Oman Free Trade Agreement provides U.S. exporters with a secure, transparent, and predictable platform for growth in a key regional market. Benefits include:

• Zero tariffs on virtually all U.S. goods
• Simplified customs and documentation procedures
• Open access for services and investment sectors
• Modern IP and digital trade protections
• Strategic connectivity to GCC, Africa, and South Asia

Whether exporting industrial goods, software solutions, or renewable energy systems, aligning with USOFTA requirements ensures competitive access to one of the Gulf’s most open economies.

To streamline HTS validation, automate rules-of-origin checks, and forecast tariff impacts, explore Trade Insight AI for data-driven FTA management and trade compliance intelligence.

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Series Note:
This article is part of the Export Snapshot series, offering in-depth insights into U.S. Free Trade Agreements and how exporters can leverage technology to expand globally with confidence.