The U.S. MEFTA initiative started in 2003 with the purpose of creating a U.S. Middle East Free Trade Area by 2013.

The U.S. objective with this initiative has been to gradually increase trade and investment in the Middle East, and to assist the Middle East countries in implementing domestic reforms, instituting the rule of law, protecting private property rights (including intellectual property), and creating a foundation for openness, economic growth, and prosperity.

Among the stated objectives are:


Screenshot from official US-MEFTA website, 15-11-2004

  • Actively supporting WTO membership of countries in the Middle East and Maghreb
  • Expanding the Generalized System of Preferences (GSP’s) that currently provides duty-free entry to the U.S. market for some 3,500 products from 140 developing economies
  • Negotiating Trade and Investment Framework Agreements (TIFA’s) that establish a framework for expanding trade and resolving outstanding disputes
  • Negotiating Bilateral Investment Treaties (BIT’s) with interested countries by obligating governments to treat foreign investors fairly and offering legal protection equal to domestic investors
  • Negotiating comprehensive Free Trade Agreements (FTA’s) with willing countries that demonstrate a commitment to economic openness and reform
  • Helping to target more than $1 billion of annual U.S funding and spur partnerships with private organizations and businesses that support trade and development

U.S. – Middle East Free Trade Efforts

Country
FTA
TIFA
BIT
WTO
GSP

‘Israel
√
√
√
√
‘

Jordan
√
√
√
√
√

Morocco
Ratified
by U.S.
√
√
√
√

Bahrain
Signed
√
√
√
√

‘Egypt
‘
√
√
√
√

‘Lebanon
‘
‘
‘
Negotiating
Accession
√

Algeria
‘
√
‘
Negotiating
Accession
√

‘Tunisia
‘
√
√
√
√

Saudi Arabia
‘
√
‘
Negotiating
Accession
Not Eligible

‘Oman
Announced
√
‘
√
√

Kuwait
‘
√
‘
√
Not Eligible

‘UAE
Announced
√
‘
√
Not Eligible

Yemen
‘
√
‘
Negotiating
Accession
√

Qatar
‘
√
‘
√
Not Eligible

Syria
‘
‘
‘
‘
Not Eligible

Iraq
‘
√
‘
Observer Status
Not Eligible

‘Libya
‘
‘
‘
Negotiating
Accession
Not Eligible

Iran
‘
‘
‘
‘
Not Eligible

Note: The Palestinian Authority participates in the U.S. — Israel FTA.

Contents

//

Current Agreements

US Agreements

The US currently has several bilateral free trade agreements with nations in the region.

  •  Bahrain United States-Bahrain Free Trade Agreement
  •  Israel US-Israel Free Trade Agreement
  •  Jordan US-Jordan Free Trade Agreement
  •  Morocco United States-Morocco Free Trade Agreement
  •  Oman US-Oman Free Trade Agreement

Middle Eastern Agreements

Additionally many potential MEFTA states are already members of the multilateral Greater Arab Free Trade Area.

  •  United Arab Emirates
  •  Bahrain
  •  Egypt
  •  Iraq
  •  Jordan
  •  Kuwait
  •  Lebanon
  •  Libya
  •  Morocco
  •  Oman
  • Palestine
  •  Qatar
  •  Saudi Arabia
  •  Sudan
  •  Syria
  •  Tunisia
  •  Yemen

Other states are members of the multilateral Arab Maghreb Union.

  •  Algeria
  •  Libya
  •  Mauritania
  •  Morocco
  •  Tunisia

Potential Issues

The single largest hurdle to MEFTA is the inclusion of Israel. Additional complications exist in getting agreements between the US and nations like Iran and Syria. Complications could still exist in getting trade with Lebanon and the Palestinian Authority as long as groups such as Hamas and Hezbollah continue attacks.

Other negotiations are largely minimized due the existence of current agreements and that there is not a lot of manufacturing industry in Arab states. For the majority of Arab states the economy is dependent on Oil production. These factors mean there is little need for protective tariffs to prevent cheaper foreign goods from usurping local Companies. With little or no home industry Arab states are dependent on foreign goods for everything from Cars to household products. Governments therefore have a strong interest in eliminating tarrifs to reduce prices.

One notable exception to this rule is the production of food. While most foods may be impractical to import from the United States where the are relatively cheap, eliminating barriers of trade among Arab states may lead to decreased prices of regionally grown food and protests among farmers.

See also

  • Euro-Mediterranean free trade area (EU-MEFTA)
  • List of Free Trade Agreements
  • List of Trade blocs
  • economic integration

v • d • e

United States free trade agreements

Existing

Multilateral

DR-CAFTA · NAFTA

Bilateral

Australia · Bahrain · Chile · Israel · Jordan · Morocco · Oman · Singapore

Pending

Awaiting Implementation

Peru

Awaiting Legislation

Colombia  · South Korea · Panama

Proposed

Multilateral

FTAA · MEFTA · TAFTA · FTAAP

Bilateral

Ecuador · Ghana · Indonesia · Kenya · Kuwait · Malaysia · Mauritius · Mozambique · New Zealand · United Arab Emirates

On indefinite hold

US-SACU (on hold since 2006) · Thailand (on hold after 2006 coup) · Qatar (on hold since 2006)  ·

Defunct / Expired

Canada (superseded by NAFTA)

External links

  • Official US MEFTA website
  • White House Press Release – 09 June 2004
  • U.S. Briefing at Department of State – 06 May 2005
  • White House Press Release – 17 October 2005

Retrieved from “http://en.wikipedia.org/wiki/Middle_East_Free_Trade_Area”


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