AEM Urges Congress to Approve U.S.-Oman Free Trade Agreement

January 30, 2006 — The Association of Equipment Manufacturers (AEM) praised the recent signing of the U.S.-Oman Free Trade Agreement (FTA). Urging Congress to quickly approve this agreement and speed its implementation, AEM endorses the agreement, which would eliminate tariffs on U.S. equipment exports to Oman.

 

The Oman FTA is the fourth in a series of free trade agreements the Administration plans to use as the basis for a Middle East Free Trade Area to be completed by 2013. The United States currently has completed agreements with Jordan, Israel, and Bahrain, and negotiations are ongoing with the United Arab Emirates. AEM is a member of the Steering Committee of the Middle East Free Trade Area Coalition, which actively supports the proposed Middle East Free Trade Area.

 

According to AEM, the U.S.-Oman Free Trade Agreement would eliminate for U.S. manufacturers the 5% tariff Oman currently imposes on imports of heavy equipment. The elimination of this tariff would not only reduce costs for Omani consumers, but it would also give U.S.-based manufacturers an advantage over competitors in Europe and Asia. Despite its relatively small size (similar to Utah), Oman has imported approximately $40 million of U.S.-manufactured equipment over the last five years. Its largest imports are in the "trade code" categories comprising machinery and motor vehicles.