U.S.-Oman free trade pact takes effect

A free trade agreement entered between the United States and Oman becomes effective Jan. 1.

   U.S. Trade Representative Susan Schwab called the agreement “an important step” in advancing the Bush administration’s Middle East Free Trade Area (MEFTA) initiative.

   The Oman agreement also builds on U.S. free trade agreements concluded with Israel, Jordan, Morocco, and Bahrain; trade and investment framework agreements with 10 countries in the region; and the 2005 World Trade Organization accessions of Saudi Arabia, Schwab noted.

   Implementing legislation for the U.S.-Oman free trade deal passed the U.S. Senate in June 2006 and the House in July 2006. It was signed by President Bush in September 2006.

   On Jan. 1, 100 percent of two-way trade in consumer and industrial products between the United States and Oman will be duty free. The Office of the U.S. Trade Representative said the free trade agreement will expand opportunities for U.S. exports of machinery, automobiles, optic and medical instruments, electrical machinery, and agricultural products such as vegetable oils, sugars, sweeteners and beverage bases.

   In addition, the USTR said through the agreement Oman will provide:

   *Substantial market access across its entire services regime.

   *Secure, predictable legal framework for U.S. investors operating in Oman.

   *Effective enforcement of labor and environmental laws.

   *Enhanced protection of intellectual property.

Source: American Shipper