WASHINGTON - U.S. Trade Representative Rob Portman and
Omani Minister of Commerce and Industry Maqbool Bin Ali Sultan, who participated
via digital videoconference, today announced the completion of a comprehensive
Free Trade Agreement (FTA) designed to eliminate tariffs and barriers and expand
trade between both countries. Oman is the fifth Middle Eastern country to have
negotiated an FTA with the United
States.
"This is a high-quality, comprehensive free
trade agreement that will contribute to economic growth and trade between both
countries,” said Portman. “The Agreement will generate export opportunities for
U.S. companies, farmers, and ranchers, help
create jobs in the United
States, and help American consumers save money
while offering them greater choices. In addition to eliminating its tariffs on
U.S. products,
Oman will provide substantial market access
across its entire services regime, provide a secure, predictable legal framework
for U.S. investors operating in
Oman, provide for effective enforcement of labor
and environmental laws, and protect intellectual property.
"Oman’s decisive embrace of open trade and free
markets paved the way for these negotiations to close in only seven months. This Agreement will support and
accelerate the market liberalization that
Oman started as part of its high-standard
accession to the World Trade Organization in 2000."
"The FTA with
Oman builds on our existing agreements with
Israel, Jordan, Morocco and
Bahrain. We are also negotiating an FTA with the
United Arab
Emirates and have signed eight Trade and Investment
Framework Agreements (TIFA) with Middle East nations," continued Portman. "These are
important steps on the path to implementing the President’s initiative to create
a U.S.-Middle East Free Trade Area by 2013. Our efforts will advance economic
growth and democracy in the Middle East – an area of almost 350 million people and a
$70 billion trading relationship with the
United
States.”
BACKGROUND
Congressional
Consultation
Under the Trade Act of 2002, the
Administration must notify Congress at least 90 days before signing the
agreement. The Administration will continue to consult with the Congress on the
agreement and will soon send a formal notification of its intent to sign the
U.S.-Oman FTA to Capitol Hill.
US-Oman Trade
Two-way goods trade between the
United
States and
Oman was $748 million in 2004.
U.S. goods exports to
Oman in 2004 totaled $330 million, including
machinery, automobiles, optic and medical instruments, and electrical machinery.
U.S. exports of agricultural products to
Oman in 2004 totaled $20 million, including
vegetable oils, and sugars, sweeteners, and beverage bases. The stock of
U.S. foreign direct investment in
Oman in 2003 was $358
million.
Oman’s accession to the World Trade
Organization in 2000 and the July 2004 U.S.-Oman bilateral Trade and Investment
Framework Agreement (TIFA) paved the way for a robust economic dialogue on
promoting closer economic ties, freer trade, greater openness, a stronger
investment climate, and economic reforms.
On November 15,
2004, the
Administration notified Congressional leaders of its intent to negotiate an FTA
with Oman, an important step on the path to fulfilling
the President’s vision of developing economic growth and democracy in the
Middle
East. After a 90-day
period for consultations between the Administration and the Congress, the
United
States and
Oman launched bilateral negotiations in
Muscat, Oman on March 12,
2005. Two formal
negotiating rounds were held, with teams of negotiators and specialists meeting
in Muscat and Washington and via teleconference and
e-mail.
Oman does not apply the boycott on
Israel nor does it have any law establishing the
primary, secondary, or tertiary boycott of
Israel.
U.S.
Trade Agenda
The
United
States is aggressively working to open markets
globally, regionally, and bilaterally and to expand American opportunities in
overseas markets. The Bush Administration has completed FTAs with twelve
countries – Chile, Singapore, Costa
Rica, the
Dominican
Republic, El
Salvador, Guatemala, Honduras, Nicaragua, Australia, Morocco, Bahrain, and now
Oman. Negotiations are under way with eleven more
countries: United Arab
Emirates, Panama, Colombia, Peru, Ecuador, Thailand, and the five nations of the Southern
African Customs Union (SACU). New and pending FTA partners, taken together,
would constitute America’s third largest export market and the sixth
largest economy in the world.
Middle East
Free Trade Initiative (MEFTA)
In May 2003, the President proposed a plan of
graduated steps for Middle Eastern nations to increase trade and investment with
the United
States and others in the world economy. The first
step is to work closely with peaceful nations that want to become members of the
World Trade Organization (WTO) in order to expedite their accession. As these
countries implement domestic reform agendas, institute the rule of law, protect
property rights (including intellectual property), and create a foundation for
openness and economic growth, the United States takes a series of graduated
steps with these countries tailored to their individual level of
development.
The U.S. is expanding and deepening our
economic ties through comprehensive FTAs, Trade and Investment Framework
Agreements (TIFAs), and Bilateral Investment Treaties (BITs), and will enhance
the Generalized System of Preferences (GSP) program for eligible countries. In
the Middle
East, this
Administration has concluded three FTAs,
Morocco, Bahrain and now
Oman; ratified a third, with
Jordan; is currently negotiating another, with the
United Arab
Emirates; and signed eight TIFAs with
Middle
East nations.
Furthermore, our free trade agreements in the Middle East carry out the
recommendation in the ‘The 9/11 Commission Report’ urging the United States to
“encourage development, more open societies and opportunities for people to
improve the lives of their families,” by strengthening trade relations with the
region.
Reference from The 9/11 Commission
Report
The
U.S. government has announced the goal of working
toward a Middle East Free Trade Area, or MEFTA, by 2013. The
United
States has been seeking comprehensive free trade
agreements (FTAs) with the Middle Eastern nations most firmly on the path to
reform. The U.S.-Israeli FTA was enacted in 1985, and Congress implemented an
FTA with Jordan in 2001. Both agreements have expanded trade
and investment, thereby supporting domestic economic reform. In 2004, new FTAs
were signed with Morocco and
Bahrain, and are awaiting congressional approval.
These models are drawing the interest of their neighbors. Muslim countries can
become full participants in the rules-based global trading system, as the
United
States considers lowering the trade barriers with
the poorest Arab nations.
Recommendation: A comprehensive
U.S. strategy to counter terrorism should include
economic policies that encourage development, more open societies, and
opportunities for people to improve the lives of their families and to enhance
prospects for their children’s future.
The 9/11 Commission
Report
Pages
378-379
