23 June 2003
U.S. Offers Vision of Middle East Economic Development
(USTR promotes trade as a way to prosperity) (840)
United States Trade Representative (USTR) Robert Zoellick, in June 23
remarks to the World Economic Forum in Amman, Jordan, said he sees
increased trade and investment as key to regional integration.
Following is a fact sheet on President Bush's Middle East Free Trade
Initiative released by the Office of the USTR summarizing the proposal
and its intended goals:
(begin fact sheet)
Office of the United States Trade Representative
June 23,2003
Middle East Free Trade Initiative
U.S. Proposes Regional Plan to Spur Economic Growth
"Leaders in the region speak of a new Arab charter that champions
internal reform, greater political participation, economic openness,
and free trade."
President George W. Bush,
American Enterprise Institute,
February 27, 2003
The President proposed a free trade initiative that offers a vision of
openness, trade integration, and economic development for the Middle
East. The Administration will work with Congress to launch new free
trade agreements with Middle Eastern countries. In addition, the
United States will pursue other measures that will enable Middle
Eastern economies to build intra-regional trade, closer links with the
United States, and integration with the global economy through trade
arrangements tailored to their circumstances and progress with
reforms. In combination, these projects will ultimately lead to a U.S.
- Middle East Free Trade Area (MEFTA).
The initiative also includes measures to stimulate trade and
investment in the Middle East and to build the capacity of countries
to take part in trade negotiations, implement the agreements, and
benefit fully from trade liberalization.
Middle East Free Trade Area
The United States is proposing a plan of graduated steps for Middle
Eastern nations to increase trade and investment with the United
States and others in the world economy. The first step is to work
closely with peaceful nations that want to become members of the World
Trade Organization (WTO) in order to expedite their accession. As
these countries implement domestic reform agendas, institute the rule
of law, protect property rights (including intellectual property), and
create a foundation for openness and economic growth, the United
States would expand and deepen economic ties through Trade and
Investment Framework Agreements (TIFAs), Bilateral Investment Treaties
(BITs), and comprehensive Free Trade Agreements (FTAs).
Active Support for WTO Accession
-- Work with Saudi Arabia, Lebanon, Algeria and Yemen on WTO
accession.
-- Use the Generalized System of Preferences program, which provides
duty-free entry for many products from designated developing
countries, to increase trade linkages. Work with countries so they can
take advantage of GSP benefits fully.
Robust Trade and Investment Framework Action Plans
TIFAs with the Middle East offer an important tool for countries
making the transition toward free trade with the United States. TIFAs
promote the establishment of legal protections for investors,
improvements in intellectual property protection, more transparent and
efficient customs procedures, and greater transparency in government
and commercial regulations. The President's trade initiative would:
-- Explore developing TIFAs with interested countries, and expand the
substance of agreements already in existence with Bahrain, Egypt,
Tunisia and Algeria.
-- Expand private sector participation through business councils that
can help TIFA agendas and ensure that action plans meet the practical
needs of businesses.
-- Offer Qualified Industrial Zone (QIZ) opportunities with Israel to
other countries in the region, in addition to Jordan and Egypt, to
encourage peaceful regional integration.
-- Offer to negotiate Bilateral Investment Treaties with additional
countries. A BIT also comprises one chapter of a comprehensive FTA.
A Network of Free Trade Agreements
The Administration will work with Congress under Trade Promotion
Authority to pursue comprehensive free trade agreements with countries
that are ready and willing to undertake the in-depth commitment to
promote economic reforms, liberalize trade systems and open their
economies. These FTAs would provide a framework through which we could
subsequently add other interested and qualified countries into an FTA
with the United States.
-- Complete the U.S. - Morocco FTA by end of 2003. Consider using the
Morocco FTA as framework for negotiations with other countries in the
region when those countries are ready.
-- Negotiate an FTA with Bahrain. An FTA with Bahrain will serve as a
starting point for negotiations of future FTAs with other Gulf states
when they are interested and ready.
-- Consider the use of "cumulation clauses" in FTA agreements, which
would allow our FTA partners to produce in concert with their
neighbors to meet rules of origin requirements. This measure, along
with other region-wide customs and rules of origin arrangements, could
help build regional and multilateral trade linkages.
Trade Capacity Building Initiatives
The Administration is committed to providing the critical financial,
technical, and capacity building aid to help countries in the Middle
East take full advantage of increased trade opportunities with the
United States. The president's initiative would:
-- Provide assistance for trade capacity building.
-- Promote trade-related policies that enhance the business
environment, and increase two-way trade with the region.
-- Explore establishing one or more regional trade centers to
coordinate trade capacity building efforts.
(end fact sheet)
(Distributed by the Bureau of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)
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