Diplomatic Relations

Relations between Kuwait and US began to strengthen in the early 1980s as both countries shared the same threat perception regarding the rise of Ayatollah Khomeini's regime in Iran . The possible risk of an Iranian attack against Kuwait turned into an issue when Iranian speed boats started to attack Kuwaiti tankers in the Persian Gulf . This was done as punishment for Kuwait 's help to Saddam's regime who was fighting Iran at the time. As a result the US came to Kuwait 's assistance by escorting its ships or allowing Kuwaiti ships to fly the US flag as a deterrence . The climax of the Kuwaiti – US security and political relationship was in 1991 when US lead forces lead the allied campaign to liberate   Kuwait from Saddam's occupation Army. After Kuwait 's liberation both countries continued to cooperate on a number of political and security matters. These include Kuwaiti assistance to US for the imposition of the UN enforced no-fly zone. Furthermore Kuwait was the only country which allowed the US to use its territory to launch its ground assault into Iraq in 2003. Today both countries are providing financial and political assistance to the new Iraqi interim government. The strength of the security co-operation between the two countries was illustrated by the US government's classification of Kuwait as a “major non NATO ally”. The US is currently the biggest supplier of weaponry to the Kuwaiti government. Furthermore annual military exercises are held between the US and Kuwaiti Armed forces.  

Economic Relations

Current Trade Volumes

Total US exports to Kuwait for the year 2004 were $ 1,519.6 million USD

Total US imports from Kuwait for the year 2004 were $ 3,230.6 million USD

US exports to Kuwait include Machinery, Computer Hardware and Software and Aircraft. Kuwaiti exports to US mainly consist of Petroleum. The US is Kuwait 's biggest source of imports. Meanwhile the Kuwait investment authority has a number of high profile investments in the US economy.

Current Trade Agreements

The signing of the Trade and Investment Framework Agreement (TIFA) between Kuwait and the US governments on 6 th of February 2004 was the culmination of trade links between Kuwait and the US . TIFA is seen by many in Kuwait and the US as an introduction to the first round of free trade agreement negotiations between the two countries. All in line with President Bush's vision of creating free trade between the U.S. and the Middle East by 2013.

By: Meir Javedanfar- www.meepas.com

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