Free Trade Agreements in the Middle East and North Africa
Take Advantage of Middle East/North Africa Opportunities
Free Trade Agreements in Region Promote U.S. Bilateral Trade
For U.S. companies looking to increase their bottom line by making new sales abroad, there’s never been a better time to export. As more and more American companies discover the opportunities that lie beyond our borders, many are taking advantage of free trade agreements (FTAs) to reach new customers around the world.
Last year, U.S. exports to countries where an FTA was in effect surpassed $437 billion, or 42 percent of U.S. exports—and today, the U.S. has FTAs in force with 14 countries. One key region where U.S. businesses are expanding their international sales is North Africa and the Middle East, where total trade with the U.S. has nearly doubled since 2003 to more than $138 billion last year—and continues to prosper with help from FTAs with Israel, Morocco, Jordan and Bahrain. The advantages of doing businesses with FTA countries are numerous, and in the North Africa/Middle East, these countries offer a variety of sales opportunities for U.S firms selling everything from aircraft and motor vehicles and parts to medical equipment, machinery, information technology, energy, franchising, services, and more.
Now that we’ve provided a general overview of the region, let’s take a closer look at why you should consider doing business in Israel, Morocco, Jordan and Bahrain.
Israel
Israel is a growing and sophisticated market for U.S. goods and services. With the U.S.-Israel Free Trade Agreement, Israel serves as an important market in the region. Its high-tech, pro-American business community is familiar with U.S. business culture, and a multitude of U.S. firms are already doing business with Israel. A Memorandum of Cooperation (MOC), signed in January 2007 to promote the transfer of U.S. technology and an increased acceptance of American technical standards, is expected to result in additional U.S. exports to Israel. Israel’s growing industries include safety and security equipment, medical devices, software, telecommunications, and defense.
Morocco
Positioned as a regional center for business, Morocco is on the crossroads of North Africa, Europe, and the Middle East. U.S. firms looking to do business in Morocco can benefit greatly from the U.S.-Morocco Free Trade Agreement (FTA) as Morocco provides easy access to a market of 500 million consumers in the Mediterranean region. The FTA has also eliminated tariffs on 95 percent of current and industrial goods coming from the U.S. into Morocco. With 16 Regional Investment Centers, dedicated solely to assisting new business ventures, Morocco is steadily advancing internally toward more modernization and globalization. The FTA also provides a high level of intellectual property protection, consistent with standards set by U.S. law. Industry opportunities include telecommunications, IT, agriculture, electronics, tourism, and manufacturing. With this state-of-the-art protection, strategic location, internal improvements, and U.S.-Morocco FTA continues to create an excellent climate for U.S. trade and investment.
Jordan
Jordan’s economic reform and privatization efforts have resulted in a more open and business-friendly environment, and with its developing, knowledge-based economy, Jordan’s information technology and pharmaceutical sectors continue to flourish. With an annual growth rate of 7.5 percent over 2006, and a free trade agreement with the United States that has eliminated or reduced barriers to trade, Jordan offers excellent opportunities for U.S. exporters. Furthermore, Jordan boasts growing opportunities in the oil and gas, power generation, transportation, and transportation infrastructure. U.S. companies looking to tap the full potential of the Middle Eastern market can also benefit from Jordan’s strategic location as a springboard for expanding their export sales throughout the region.
Bahrain
The U.S.-Bahrain Free Trade Agreement has opened markets and increases opportunities for American workers, farmers, ranchers, and businesses. It opens Bahrain’s market for U.S. manufactured goods, agricultural products and services, and will also support economic reform and growth. Last year, bilateral trade between the U.S. and Bahrain exceeded USD 1.1 billion and U.S. exports have jumped 51 percent. Bahrain’s growing industries are aircraft and motor vehicles, machinery, pharmaceutical products, medical equipment, and much more. Bahrain is actively pursuing the diversification and privatization of its economy to reduce the country’s dependence on oil. With its positive commercial climate and incentives offered by the FTA, Bahrain becomes a growing prospect for U.S. businesses worldwide.