U.S.–Middle East Free Trade Area

The U.S. MEFTA initiative started in 2003 with the purpose of creating a U.S. Middle East Free Trade Area by 2013.

The U.S. objective with this initiative has been to gradually increase trade and investment in the Middle East, and to assist the Middle East countries in implementing domestic reforms, instituting the rule of law, protecting private property rights (including intellectual property), and creating a foundation for openness, economic growth, and prosperity.

Among the stated objectives are:

Screenshot from official US-MEFTA website, 15-11-2004
U.S. - Middle East Free Trade Efforts
Country FTA TIFA BIT WTO GSP
Israel
Jordan
Morocco
Bahrain
Egypt
Lebanon Negotiating
Accession
Algeria Negotiating
Accession
Tunisia
Saudi Arabia Not Eligible
Oman
Kuwait Not Eligible
UAE Announced Not Eligible
Yemen Negotiating
Accession
Qatar Not Eligible
Syria Not Eligible
Iraq Observer Status Not Eligible
Libya Negotiating
Accession		 Not Eligible
Iran Not Eligible
Note: The Palestinian Authority participates in the U.S. — Israel FTA.

Current Agreements

US Agreements

The US currently has several bilateral free trade agreements with nations in the region.

Middle Eastern Agreements

Additionally many potential MEFTA states are already members of the multilateral Greater Arab Free Trade Area.

Other states are members of the multilateral Arab Maghreb Union.

The following, expected to constitute MEFTA,[1] are not members of existing Middle Eastern agreements:

Potential Issues

The single largest hurdle to MEFTA is the inclusion of Israel. Additional complications exist in getting agreements between the US and nations like Iran and Syria. Complications could still exist in getting trade with Lebanon and the Palestinian Authority given continuous Israeli control of occupied territories,[2] and the actions of militant groups such as Hamas and Hezbollah.

One notable exception to this rule is the production of food. While most foods may be impractical to import from the United States where they are relatively cheap, eliminating barriers of trade among Arab states may lead to decreased prices of regionally grown food and protests among farmers.

See also

References

  1. ↑ Staff, "Middle East Free Trade Area: Progress Report", Congressional Research Service, 1 June 2006
  2. ↑ Israel and the Palestinians: Key terms, BBC
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.