Diplomatic Relations
Relations between the two countries are described by the US as “excellent and marked by frequent senior-level consultations in Doha and Washington ”.
Embassy level relations between the two countries were established in 1973, two years after Qatar 's independence from the UK . Relations have strengthened between the two counties since. Qatar provided military and political backing to the first Gulf war in 1991. Furthermore the Qatari Armed forces have purchased majority of their weaponry from the US , whilst Qatar and the US have participated in a number of joint military exercises. The US expanded its military presence in Qatar in 2002 by signing a long-term military cooperation agreement to facilitate the U.S. presence in Qatar after the fall of Saddam Hussein. According to recent reports the US Defense Department has drafted plans and contracts for a significant U.S. Army and Air Force stay in Qatar until the end of the decade.
Current Trade Agreements
The US and Qatar signed a Trade and Investment Framework Agreement (TIFA) in March 2004. One of the main goals of the agreement is its application as a forum for the United States and Qatar to examine ways to expand bilateral trade and investment. The establishment of a Free Trade Agreement (FTA) between the two countries is the final envisaged goal of the current TIFA agreement. Such an FTA is in line with President Bush's Middle East Free Trade Agreement (MEFTA) initiative which seeks to promote free trade between US and the Middle East region by 2013. According to the U.S. Trade Representative Robert B. Zoellick "American consumers and businesses benefit from a closer trading relationship with Qatar ," said Zoellick . " Qatar played a valuable role in hosting and facilitating the launch of the Doha negotiations, the global trade negotiations to open markets and promote economic development. Furthermore, Qatar has been a steadfast friend of the United States in the war against terrorism, and I am pleased that we are working to expand our relationship on the economic front."
At the same time the Qatari economy stands to gain a number of benefits through closer economic ties with the US. These include increased investment in the Qatari economy, especially in the non oil sectors of Telecommunication, Finance, Transportation, Tourism and Power Generation. A Free Trade Agreement between the two countries is also expected to increase the range and quantity of Qatari products to the US market.
Current Trade Volumes
According to the US Census Bureau for the year 2004
US exports to Qatar were $ 454.5 million USD ( machinery, aircraft, vehicles , optical and medical instruments)
US imports from Qatar were $387 million USD (mineral fuel and fertilizers)
US was a net exporter to Qatar by $67 million USD
The total trade figures for 2004 show an increase of more than 250% in total trade from a decade ago.
End of Analysis By: Meir Javedanfar- www.meepas.com
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