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A number of Arab nations are pursuing FTAs with the United States, and NUSACC has been actively involved in supporting these discussions at a variety of levels. Talks with the United Arab Emirates (UAE) have been particularly extensive as the two nations make a slow but steady transition from a Trade and Investment Framework Agreement (TIFA) to a full-fledged FTA. In 2006, bilateral trade between the Arab FTA nations and the United States jumped 32 percent compared to 24 percent for non-FTA nations in the Arab world. U.S. bilateral trade with non-FTA nations has been somewhat erratic, while U.S. bilateral trade with the FTA nations has been more consistent and less susceptible to peaks and valleys.
In late 2006, with this in mind, NUSACC announced that the “FTA Effect” is beginning to help jump-start the FTA economies. The FTA Effect hinges on confidence: the perception that these nations, in signing FTAs with the United States, are holding themselves to higher trade and investment standards than ever before. This is attracting traders and investors who want to do more business with the United States and, by extension, with other nations as well.
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FTAs with the Kingdom of Bahrain and the Sultanate of Oman were signed into law in 2006, and NUSACC participated in both signing ceremonies.
NUSACC’s MOU with Bahrain In November in Manama, NUSACC signed a Memorandum of Understanding (MOU) with the FTA Implementation Committee of Bahrain’s Economic Development Board – the first MOU of its kind. At the signing ceremony, NUSACC expressed hope that the agreement “will allow our two entities to work together to realize the full benefits of the FTA – particularly for Small and Medium-Sized Enterprises (SMEs) . . . . The governments are ‘passing the torch’ to the private sector, and it is up to our respective business communities to carry the torch forward.”
Dr. Essam Fakhro, Chairman of the Bahrain Chamber of Commerce and Industry, noted that the MOU will “offer Bahraini businesses of all sizes a first-to-market advantage. This agreement will help those companies to capitalize effectively on that lead by harnessing the wealth of on-the-ground expertise offered by our partners at NUSACC.” Compared to 2005, America’s exports to Bahrain jumped more than 51 percent to $470.7 million and Bahrain’s exports to the United States surged nearly 46.5 percent to $632.3 million. NUSACC’s MOU with Oman In December 2006, NUSACC signed an MOU with the Oman Chamber of Commerce and Industry (OCCI). At the signing ceremony in Muscat, NUSACC noted that “American companies make first-rate partners, and Omani firms will be better positioned than ever to tap into U.S. experience and expertise. Particularly important for Oman’s service-oriented economy, perhaps, the FTA should help to open the door for partnerships in such leading edge sectors as Information & Communications Technology (ICT), education and training, financial services, insurance, hospitality and leisure, and logistics.” |
Added H.E. Eng. Salem bin Said Al-Ghattami, Chairman of OCCI, “Oman can export many products, including petrochemicals, handicrafts and fisheries products. Similarly, we will be interested in U.S. investment here to develop tourism, resorts, construction, IT and management.
Saudi Arabia and the WTO In 2005, NUSACC played a key role in supporting Saudi Arabia’s long-standing bid to accede to the World Trade Organization (WTO). The benefits of this accession began in earnest in 2006, and NUSACC worked closely with the Saudi Ambassador, H.R.H. Prince Turki Al-Faisal, to carry the Kingdom’s free trade message to U.S. business communities.
In a speech to upwards of 200 NUSACC members in Washington DC, for example, Prince Turki highlighted the importance of the business communities in the United States and Saudi Arabia. “Inasmuch as we can break stereotypes here, we have stereotypes that need to be broken in our part of the world,” he said. “That is why the business |
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2 US-Arab Tradeline • 2006: The Year in Review