Diplomatic Relations
Relations between the two countries strengthened after the signing of the US sponsored Camp David agreement between Israel and Egypt , as Oman was the only Arab country who supported the agreement by not breaking off relations with Egypt. Relations further improved after the Iranian revolution of 1979 where the US and Oman shared a common concern regarding the spread of Ayatollah Khomeini's fundamentalist version of Islam to the region.
Furthermore two important agreements were made between Oman and the US in 1980s. The first agreement provided access to Omani military facilities by U.S. forces under agreed-upon conditions. The second agreement titled the “Joint Commission for Economic and Technical Cooperation” provided U.S. economic assistance to Oman . This agreement continued to operate until the mid-1990s. Oman provided military support to the Allied campaign for the liberation of Kuwait in 1991. Oman has since allowed US war ships to stop off at its ports, which has proved useful for US activity in the region, especially during the invasion of Iraq in 2003. Oman 's support of the US sponsored peace process between Israelis and Palestinians has been applauded by successive US Presidents and has been hailed as an example for other regional countries to follow.
Trade and Economic relations with the US
Current Trade volumes - Year 2004 figures
US exports to Oman were $ 329.7 million USD
US imports from Oman were $418.0 million USD
US is Oman 's fourth most important trade partner.
Current trade agreements
Oman and the US Trade signed a Investment Framework Agreements (TIFA) in July 2004. The TIFA is seen as a stepping stone towards the establishment of a Free Trade Agreement (FTA) between the two countries. This was confirmed by the joint meeting held between Omani and US officials on October 2004 to review the establishment of the FTA which is expected to be signed in 2005. The FTA is part of President Bush's Middle East Free Trade Agreement (MEFTA) initiative which seeks to promote free trade with the region by 2013.
According to the US government , such an FTA agreement with Oman will generate export opportunities for U.S. companies, farmers, and ranchers. It will also help create jobs in the United States , and help American consumers save money while offering them more choices.
Potential advantages offered by the FTA to the Omani government include:
- Increase in Omani exports to the US
- Creation of new industries
- Diversification of the economy away from oil as per the Omani government's year 2020 economic plan
- Increased investment in the Omani economy by US companies
- Creation of new employment positions for Omanis
By: Meir Javedanfar- www.meepas.com
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