WASHINGTON - The United States and Oman signed a free trade agreement Thursday, making the Gulf state the fifth Middle Eastern country to have negotiated an FTA with the world's biggest economy.
Officials said the pact advanced President George W. Bush's vision for a Middle East-wide free trade area, although attempts by Washington to launch talks with Egypt appear to be in trouble.
The FTA, which was agreed in October after seven months of negotiations, was signed here by US Trade Representative Rob Portman and Omani Trade and Industry Minister Maqbool bin Ali bin Sultan.
It now goes to the US and Omani legislatures for ratification.
"With our signatures today, we cement our long-standing friendship and growing commercial ties, and create new economic opportunities for both of our countries," Portman said in a statement.
"This agreement also helps the advancement of economic and political freedom in the region. For decades, Oman and the United States have shared a desire for peace, stability and economic opportunity in the Middle East," he said.
As part of the agreement, Oman agreed not to enforce Arab boycott calls against Israel.
In the first 11 months of 2005, two-way US trade with Oman totalled just over one billion dollars, with the United States enjoying a surplus of 83.2 million dollars.
Once the FTA goes into effect, all US consumer and industrial products and 87 percent of agricultural tariff lines will enter Oman duty free.
"We look forward to working with Congress and building bipartisan support for the US-Oman free trade agreement early this year," said Portman.
Chuck Grassley, chairman of the US Senate's powerful finance committee, welcomed the Oman pact as a fillip to free trade and democracy across the Middle East.
"A comprehensive free trade area in the Middle East would create significantly improved market opportunities for US exporters in a part of the world with a fast-growing population," the Republican said.
"It also would cement ties between our nations and would help build increased economic opportunity and respect for the rule of law in the region."
In the Middle East, the United States has already sealed FTAs with Bahrain, Israel, Jordan and Morocco as it works towards Bush's goal of clinching a region-wide trade deal by 2013.
Washington is in talks with the United Arab Emirates, and has planned to begin FTA negotiations also with Egypt.
But the Washington Post said Tuesday the Bush administration had withdrawn an invitation to an Egyptian trade delegation to visit here this month, in anger at "President Hosni Mubarak's flagrant violation of his promises to lead a transition to democracy".
Commenting on the report, a spokeswoman for Portman said: "The decision on timing of any FTA discussions with Egypt has not been made.
"The decision will be made when the US and Egypt determine together it's the most appropriate way to move a bilateral relationship forward," she said.
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