India signs trade pact with Oman as it expands Middle East ties

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DUBAI/NEW DELHI, Dec 18 - India signed an economic partnership agreement with Oman on Thursday to boost bilateral trade and investment ‍as ​it seeks to expand Middle East ties ‍and diversify to beat steep U.S. tariffs.

India and Oman have annual trade of ​more ​than $10 billion. The relationship is important for New Delhi as the Gulf nation is a gateway to the narrow Strait of Hormuz ‍between Oman and Iran, a major transit point for global oil ​shipments.

This (pact) will set a new ⁠pace of our trade, add new trust to our investments and open doors to new opportunities in many sectors, Indian Prime Minister Narendra Modi said in an ​address in Oman today.

He is in Muscat as part of his three-nation tour that ‌included Ethiopia and Jordan.

The pact, ​Indias second after the United Kingdom this year, will help Indian goods find new markets as exporters intensify diversification efforts to defy U.S. President Donald Trumps punishing tariffs.

After talks fell apart, Trump doubled duties on Indian goods to 50% in late August, the highest in the world. ‍The hike included a 25% levy that was in retaliation for ​Indias purchases of Russian oil.

Despite negotiations, New Delhi has been so far unable ​to close a deal with the United States ‌or the European Union this year, as initially intended. REUTERS