Oman, US hold joint meeting on free trade pact
Times of Oman | 15 October 2004
Sultanate, US hold joint meeting on free trade pact
By A Staff Reporter
MUSCAT - A joint meeting between the Sultanate and a US trade delegation was held at Al Ghubra Guest House yesterday to review a free trade agreement, which is expected to be signed in 2005.
While the Omani team in the talks included Maqbool bin Ali Sultan, minister of commerce and industry; Rajiha bint Abdul Amir bin Ali, tourism minister; and Mohammed bin Nasser Al Khusaibi, secretary-general of the Ministry of National Economy; the US delegation was headed by Robert B. Zoellick, US Trade Representative.
The meeting reviewed a number of issues including labourers’ issues, intellectual rights, trade and investment.
Maqbool bin Ali Sultan said the Sultanate signed an agreement with the American team on trade and investment, which would be the first step towards the free trade agreement.
A comprehensive FTA (Free Trade Agreement) between Oman and the United States of America would unleash a host of opportunities for both countries. In fact, such an agreement would be mutually beneficial, Zoellick said in remarks made yesterday.
Noting that Oman and the United States of America were poised to bring about a major boost in the areas of promoting economic growth and opportunity.
Zoellick, who was here on a brief visit and scheduled to leave for Israel today, added that this would be further enhanced once the two countries signed the FTA.
In fact, Oman has expressed interest in deepening their economic relationship with the United States of America, including with FTAs, Zoellick told a roundtable at the US ambassador’s residence here yesterday.
The US had recently concluded an FTA with Bahrain, and signed Trade and Investment Framework Agreements (TIFA) with both the UAE and Oman.
The TIFAs provide a forum for the United States to examine ways to expand bilateral trade and investment and can be used as a forum to launch negotiations for an FTA.
The TIFA was signed by the two countries in July this year. Maqbool bin Ali Sultan, minister of commerce and industry, and Zoellick had inked the deal. ‘This agreement established a bilateral council on trade and investment.
It is widely noted that the TIFA agreement was in line with the move towards an FTA.
Zoellick voiced the opinion that an FTA would be in the interest of both countries. It was an opinion that he reiterated during his meetings with ministers, senior Omani officials, students, etc.
Earlier, he also evinced keen interest in discussing the challenges and opportunities involved in negotiating a comprehensive FTA with Oman.
Zoellick, who will be travelling to Israel this morning, was on a three-day tour, from Wednesday till today, of the United Arab Emirates and Oman.
He will be in Israel today for meetings and discussions related to the US-Israeli bilateral trade issues, a note from the press and cultural affairs section, of the US Embassy here said.
Here in Oman, Zoellick discussed with ministers on the efforts to promote economic growth and opportunity by expanding bilateral, regional and global trade between the two countries.
Prior to the visit here, he had expressed his keenness to meeting with “senior political and economic leadership of Oman and the UAE, along with senior officials and representatives of the private sector”.
“In recent years, the Gulf region has become associated with economic and trade liberalisation, with the launching of the current World Trade Organisation (WTO) negotiations in Doha, Qatar, and our recent completion of an FTA with Bahrain,” Zoellick said.
The US FTAs are high quality, cutting edge agreements that can play an important role in stimulating economic growth and development over time, Zoellick added.
“Last year, president Bush outlined a country-by-country plan to achieve a Middle East Free Trade area. With the hand of US economic partnership, the US will embrace and encourage modernisations across the region,” Zoellick said. The 9/11 commission urged the US to expand trade with the Middle East and highlighted the recently concluded FTA with Bahrain, as well as our recently passed FTA with Morocco as examples of positive steps in this direction,” he said.
The US president’s Middle East Free Trade Agreement (MEFTA) initiative seeks to promote free trade throughout the region and between the region and the US.
“The US recognises the differing levels of development across the region and is taking a step-by-step approach to creating a free trade zone with countries interested and willing to open their economies and liberalise their trade regimes, a US Embassy note said yesterday.
In May 2003, the US president announced his initiative to create MEFTA by 2013. The initiative is designed to deepen the US trade relationships with all countries of the region, through steps tailored to individual countries’ level of development.
Since that announcement, the US has concluded FTA negotiations with Morocco and Bahrain, signed TIFAs with Saudi Arabia, the UAE, Kuwait, Qatar, Yemen and Oman.
The US already has TIFAs with Egypt, Algeria and Tunisia. The US recently held its first TIFA council meetings with the UAE, Kuwait, Qatar and Oman. In addition, the US has made progress with the WTO accessions of Saudi Arabia and Algeria, and in the case of Algeria, extended GSP benefits.
See also: Zoellick to Visit United Arab Emirates and Oman October 13 - 15, USTR Press Release, Washington DC, 13 October 2004.
