U.S. - Oman Free Trade Agreement
President Bush signed the U.S. - Oman Free Trade Agreement (FTA) into law on September 26, 2006, saying that it will "help Oman's leaders develop long-term opportunities for their people." U.S. Ambassador to Oman Gary A. Grappo called the FTA "the crowning achievement to a relationship begun less than 20 years after American independence, one affirmed in our very first treaty with an Arab government, the Treaty of Amity and Commerce signed in 1833."
The U.S.- Oman FTA is a key development in U.S. plans to create a Middle East Free Trade Agreement by 2013, in line with the other regional trade agreements the U.S. has initiated in North America (NAFTA), Central America (CAFTA-DR), and Asia (the Enterprise for ASEAN Initiative).
Building on Oman's 2000 accession to the World Trade Organization (WTO), the FTA offers substantial benefits to Oman's economy that include:
diversification of Oman's economy away from oil
improved labor standards for Omani workers
high standards of environmental protection
more protection for intellectual property rights
the complete elimination of tariffs in consumer and industrial products, and most agricultural products
access to the U.S. consumer market of 290 million people
increased offshore investment from Indian and Chinese companies looking to capitalize on reduced trade barriers
From the U.S. perspective, the FTA promotes stronger economic ties with the Middle East region and cements the strategically vital relationship with Oman. As President Bush noted, the FTA will "level the playing field for U.S. businesses" and "provide additional market access for U.S. goods."
FTA CHRONOLOGY
2004: U.S. Administration authorizes FTA negotiations with Oman as part of President Bush's vision of a Middle East Free Trade Area (MEFTA) by 2013.
October 3, 2005: Preliminary negotiations on text of FTA concluded.
January 19, 2006: Signing of the FTA in Washington, D.C. by then U.S. Trade Representative Robert Portman and Omani Minister of Commerce and Industry Maqbool Ali Sultan.
March, April 2006: U.S. Senate and House of Representatives hold committee hearings on the FTA.
June 29, 2006: Senate votes to approve FTA, which goes to the House of Representatives for a vote (in the U.S. Congress, all legislation dealing with revenue originates in the House)
July 20, 2006: House passes the FTA 221-205. Bill goes to Senate for final approval.
September 19, 2006: Senate passes the FTA 62-32.
September 26, 2006: President Bush signs the FTA into U.S. law in Washington, D.C.
October 15, 2006: Oman issues a Royal Decree ratifying the FTA.
TBD: FTA enters into force.
FTA LINKS:
Office of the U.S. Trade Representative Information about the U.S. - Oman FTA
U.S. - Oman FTA Fact Sheet
United States Department of Agriculture
U.S. Commercial Service
Latest News on Middle East Free Trade Area
Office of the U.S. Trade Representative Information about the Middle East Free Trade Area Initiative
