Schwab said she was hopeful of a deal on the issue before the current administration of President George W Bush hands leaves the White House on January 20, 2009. Members of the Muscat American Business Council (MABC) and the Young Presidents Organisation (YPO), attended yesterday's breakfast meeting at the InterContinental Muscat, which was hosted by US Ambassador to the Sultanate Gary A Grappo.

Oman and the United States signed the FTA in January 2006, with the Sultanate ratifying the deal in November that year. Its implementation however has stalled over a number of "sticking points", notably intellectual property rights (IPR), telecommunications, and differences in the legal frameworks of either country, among other issues.

"We are working diligently to try to see that it (enters into forces as soon as possible)," said Schwab, noting that agreement has been reached on "ninety per cent" of all outstanding issues, while the balance ten per cent are proving problematic. But she stressed the importance of broad and complex agreements, covering not only tariff and non-tariff issues, but also topics like intellectual property protection, rule of law, transparency, and so on. Such comprehensive agreements, she emphasised, was essential to creating an environment that was conducive for entrepreneurs -- Omani and American -- to flourish.

In particular, she stressed the Sultanate's commitment to IPR. "Clearly the Government of Oman is committed to the protection of intellectual property, and recognises it is in Oman's self interest, and in the interest of Omani citizens, consumers, entrepreneurs, and foreign direct investment, to have a state-of-the-art intellectual property regime."

Underlining the benefits of an FTA for both parties, Schwab cited the example of Washington's free trade deal with Jordan, which along with Bahrain and Morocco, are among four Arab states that have concluded FTAs with the US thus far. US exports to Jordan had doubled, while Jordanian exports to the US had soared 1600 per cent to over $1 billion, she said.

Earlier, the US Trade Representative hailed the strength of 175 years of bilateral ties between Oman and the United States, describing the relationship as not only important from Washington's foreign policy perspective, but also from the economic standpoint. A strong US and international business presence in Oman attested to this blossoming relationship, she said.

In addition to seeking early implementation of the Oman FTA, Schwab said she was also working with Oman, as a fellow member of the World Trade Organisation (WTO), to get try to get some "traction" on the Doha round of multilateral trade negotiations. Washington is committed to a "successful conclusion" of the Doha Round, said Schwab, warning that lack of forward momentum risks a slide backwards towards protectionism.

Asked by a member of the audience about the likely impacts of the current financial meltdown on the FTA with Oman, Schwab cautioned against tendencies by any country to look inward, rather than outward, whenever the global economic outlook turns grim. The biggest challenge for the globalised economy, she said, was to "unclog" the arteries of the credit system that have been "gummed up" in the wake of the financial crisis.

By Conrad Prabhu

© Oman Daily Observer 2008