WT/REG259/1  
25 March 2014  
(14-1861)  Page: 1/58  
Committee on Regional Trade Agreements   
 
 FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN TH E UNITED STATES AND OMAN 
(GOODS AND SERVICES) 
Report by the Secretariat 
This report, prepared for the consideratio n of the Free Trade Agreement between the 
United States and Oman has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. The report has been drawn up 
in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671). 
Any technical questions arising from this report may be addressed to Jean-Daniel Rey 
(tel: +41 22 739 5264). Any statistical questions arising from this report may be 
addressed to Ms. Rowena Cabos (tel: +41 22 739 5185). WT/REG259/1 
 
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  TABLE OF CONTENTS 
 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 5  
1.1   Merchand ise Trade..................................................................................................... 5  
1.2   Services an d Investme nt ............................................................................................ 8  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT .................................................... 11  
2.1   Background  Information ............................................................................................ 11 
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 13  
3.1   National treatment and market access provisions on  trade in  goods ................................. 13 
3.1.1   Genera l provisions ................................................................................................. 13 
3.1.2   Import duties and charges, and quantitative restrictions .............................................. 13 
3.1.3   Liberalization of tariffs and trade .............................................................................. 14 
3.1.3.1   United States ..................................................................................................... 15 
3.1.3.2   Oman ................................................................................................................ 17 
3.1.4   Tariff Rates Qu otas ................................................................................................ 19 
3.1.5   Rules of Origin ...................................................................................................... 19 
3.1.6   Export duties and charges,  and quantitative  restrict ions .............................................. 20 
3.2   Regulatory provisions on trade in goods ....................................................................... 20 
3.2.1   Standards ............................................................................................................. 20 
3.2.1.1   Sanitary and phytosanitary measures .................................................................... 20 
3.2.1.2   Technical barriers to trade .................................................................................... 20 
3.2.2   Safeguard mechanisms ........................................................................................... 21 
3.2.2.1   Global safeguards ............................................................................................... 21 
3.2.2.2   Bilateral safeguards ............................................................................................. 21 
3.2.2.3   Special safeguards .............................................................................................. 22 
3.2.3   Anti-dumping and countervailing measures ............................................................... 22 
3.2.4   Subsidie s and State-aid .......................................................................................... 22 
3.2.5   Customs-re lated procedures .................................................................................... 22 
3.3   Sector-specific provis ions on trad e in goods ................................................................. 23 
3.3.1   Textiles and clothing .............................................................................................. 23 
3.3.1.1   Emergency safeguards ......................................................................................... 23 
3.3.1.2   Specific rules of origin and rela ted matters ............................................................. 24 
3.3.1.3   Customs cooperation fo r textiles and apparel goods ................................................. 25 
4   PROVISIONS ON TRADE IN SE RVICES, INVESTMENTS AND FINANCIAL 
SERVICES ....................................................................................................................... 25  
4.1   Scope and definitions ................................................................................................ 25 
4.2   Denial of benefits ..................................................................................................... 27 
4.3   General provisions on trade in serv ices, investments and financial services ....................... 27 
4.3.1   Cross-Border Trade in Services ................................................................................ 27 
4.3.1.1   Market access ..................................................................................................... 27 WT/REG259/1 
 
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  4.3.1.2   National and MFN tr eatment ................................................................................. 27 
4.3.1.3   Local presence .................................................................................................... 28 
4.3.2   In vestme nts.......................................................................................................... 28 
4.3.2.1   National and MFN tr eatment ................................................................................. 28 
4.3.2.2   Performa nce requirements ................................................................................... 28 
4.3.2.3   Senior management and board of directors ............................................................. 29 
4.3.3   Financial services ................................................................................................... 29 
4.3.3.1   National and MFN tr eatment ................................................................................. 29 
4.3.3.2   Market access ..................................................................................................... 30 
4.3.3.3   Cross-border trade .............................................................................................. 30 
4.3.3.4   Senior management  and boards of  direct ors ........................................................... 30 
4.4   Liberalization commitments on cross-border trade in services, investments and 
financial services ............................................................................................................ . 30 
4.4.1   Cross-border trade in services and investments .......................................................... 30 
4.4.1.1   The United States ............................................................................................... 31 
4.4.1.2   Oman ................................................................................................................ 32 
4.4.2   Financial services ................................................................................................... 34 
4.4.2.1   United States ..................................................................................................... 35 
4.5   Commitments in sele cted services  sectors .................................................................... 37 
4.5.1   Communica tion services ......................................................................................... 37 
4.5.1.1   Express delivery services ..................................................................................... 37 
4.5.1.2   Telecommuni cations se rvices ................................................................................ 37 
4.5.1.3   Au diovis ual ........................................................................................................ 39 
4.5.2   Transportation services ........................................................................................... 40 
4.6   Regulatory provisions on trade in services, investments and financial services ................... 40 
4.6.1   Domestic regulation ............................................................................................... 40 
4.6.2   Recognition ........................................................................................................... 40 
4.6.3   Transfer s and paym ents ......................................................................................... 41 
4.6.4   Other ................................................................................................................. .. 41 
5   GENERAL PROVISIONS OF TH E AGREEMENT AFFECTING GOODS AND 
SERVICES ....................................................................................................................... 42  
5.1   General and se curity exce ptions ................................................................................. 42 
5.2   Tran sparency ........................................................................................................... 43 
5.3   A ccession  ............................................................................................................... . 43 
5.4   Institutio nal framework ............................................................................................. 43 
5.5   Disput e settlement ................................................................................................... 43 
5.6   Relationship with other agr eements concluded by the Parties .......................................... 46 
5.7   Other provisions ....................................................................................................... 47 
5.7.1   Governme nt Procurement ....................................................................................... 47 
5.7.2   Electr onic commerce .............................................................................................. 49 
5.7.3   Intellectual Property Rights (IPRs) ............................................................................ 49 WT/REG259/1 
 
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  5.7.3.1   Trademarks and geographical indications ................................................................ 49 
5.7.3.2   Copyrights and related rights ................................................................................ 49 
5.7.3.3   Patents .............................................................................................................. 50 
5.7.4   Labour ................................................................................................................ . 50 
5.7.5   En vironment ......................................................................................................... 51 
ANNEX 1 ....................................................................................................................... . 52 
ANNEX 2 ....................................................................................................................... . 56 
 WT/REG259/1 
 
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Key Facts 
 
Parties to the Agreement:  United States and 
Oman  
 
Date of Signature:   19 January 2006 
 
Date of Entry into Force:  1 January 2009 
 
Date of Notification:   30 January 2009 
 
Full implementation:   1 January 2018 
 
 
 1  TRADE ENVIRONMENT  
1.1.  The Free Trade Agreement (FTA) between the United States and Oman (hereinafter referred 
to as the Agreement) was, at the time of its conclusion, the United States' 5
th FTA with a trading 
partner in the Middle East and North Africa and their second with a Gulf Cooperation Council (GCC) 
member.1 For Oman, the Agreement represented, at the time, its first bilateral FTA without its 
GCC partners and with a non-Middle Eastern country;2 it was also its first FTA covering trade in 
services. 
1.2.  In 2012, the United States' GDP was estimated at US$15,684 billion, while that of Oman was 
US$70 billion. In the same year, the United States ranked 3rd among the world's exporters of 
goods and 1st among the world's importers.3 Its merchandise exports amounted to 
US$1,545 billion (8.4% of global exports), while imports amounted to US$2,335 billion 
(representing 12.56% of global imports). That same year, Oman ranked 40th in terms of exports 
and 45th in terms of imports; its total merchandise exports amounted to US$52 billion, 
representing 0.28% of global exports, while im ports amounted to US$28.6 billion and represented 
0.15% of global imports.4 The structure of their merchandise exports and imports are considerably 
different, with the United States exporting and importing mainly manufactures, whereas Oman 
mainly exports fuels and mining products and imports manufactures. 
1.3.  With respect to trade in commercial services, the United States in 2012 were the world's 
2nd largest exporter and importer of commercial services5, with total exports of US$621 billion and 
imports of US$411 billion (respectively 14.28% an d 9.9% of world exports and imports). That 
same year Oman ranked as the 68th largest exporter and 44th largest importer of commercial 
services with total exports of US$2.5 billion and imports of US$7.9 billion (respectively 0.06% and 
0.19% of Oman's share in world exports and imports).6  
1.4.  The Parties' overall trade to GDP ratios are considerably different, 108.9 (2009-2011) for 
Oman and 30.5 for the United States (2010-2012). 
1.1  Merchandise Trade 
1.5.  Recent developments in global and intra-Party trade are presented in Chart 1.1. The 
United States were Oman's 7th trading partner in terms of imports in 2012, accounting for 4.1% of 
its total imports, and its 7th largest trading partner in terms of exports, accounting for 1.2% of its 
                                               
1 The GCC is a customs union comprising six member states; these are Bahrain, Kuwait, Oman, Qatar, 
Saudi Arabia, and the United Arab Em irates. The United States has already concluded an FTA with Bahrain. 
2 Oman is negotiating several other FTAs together with its GCC counterparts with European and Asian 
countries (see Table 5.2). 
3 The world ranking excludes intra-EU trade. 
4 WTO Statistics Database, Trade Profiles (2013). 
5 Excluding intra-EU trade. 
6 WTO Statistics Database, Trade Profiles (2013). WT/REG259/1 
 
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  total exports.7 In the same year, Oman was the United States' 57th largest trading partner in terms 
of imports, accounting for 0.06% of its total imports and its 50th largest trading partner in terms of 
exports, accounting for 0.11% of its total exports.8 The data shows for Oman a consistent trade 
deficit with the United States over the period  surveyed (2000-2012) except for 2006 when its 
exports outstripped its imports. Over the same peri od, the data reported by the United States also 
shows a trade surplus with Oman only for the years 2008, 2009, 2010 and 2012. The attribution of an important part of Oman's trade (both imports and exports) from "unspecified origin" and to 
"unspecified destinations" may explain the discrepan cies between both Parties trade data. In terms 
of global trade, whereas the United States has maintained a progressively widening, trade deficit, Oman has run a consistent trade surplus during this period. 
Chart 1.1 United States and Oman: Merchandise bilateral trade and with world 
0246810
05001,0001,5002,0002,500
2000 2002 2004 2006 2008 2010 2012A. US 2000-2012
(US$ billions)
Imports from Oman (Right Axis)
Exports to Oman (Right Axis)
Total Imports
Total Exports
0246810
0102030405060
2000 2002 2004 2006 2008 2010 2012B. Oman 2000-2012 
(US$ billions)
Imports from US (Right Axis)
Exports to US (Right Axis)
Total Imports
Total Exports
 
Source: UNSD Comtrade database. 
 
1.6.  The commodity structure of trade between the Parties, as well as of their imports and exports 
to the world in the period 2006-2008 is shown in  Chart 1.2a on the basis of the Harmonized 
System (HS) sections, while Chart 1.2b presents the situation adjusted with more recent data for the period 2010-2012. Chart 1.2a indicates a stro ng correlation between the commodity structure 
of trade between the Parties and their global im ports and exports. Over the period 2006-2008, the 
United States' three largest export product categories – machinery, vehicles, and chemicals – made up 55.8% of its total exports and accounted for 80.9% of Oman's imports from the 
United States. Over the same period, Oman's largest export product category – minerals – made 
up 80.2% of its total exports and accounted for 85.4% of the United States' imports from Oman. 
                                               
7 In 2012, the five top sources of imports for Oman were: the UAE (23%), the EU27 (12.5%), India 
(5.2%), China (4.9%), and Brazil (4.2%); 23% of Oman's  imports are registered as  from unspecified origin. 
The five top destinations of exports from Oman were: the UAE (3.6%), India (3.2%), China (2%), Saudi Arabia 
(1.9%), and Iraq (1.4%); 77.3% of Oman's exports are registered as to unspecified destinations. 
8 In 2012, the five top sources of imports for the USA were: China (19%), the EU27(16.7%), Canada 
(14%), Mexico (12%), and Japan (6.4%); the five to p destination of exports from the USA were: Canada 
(18.9%), the EU27 (17.2%), Mexico (14%), China (7.2%), and Japan (4.5%). WT/REG259/1 
 
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  Chart 1.2a United States and Oman: Produc t composition of merchandise trade, annual 
average (2006-2008) 
857224US imports from Oman (%)
25
20
127654332211US' Global Imports (%)
8062218Oman's Global Exports (%)
39
37552227Oman's imports from US (%)
26
24
1555443311Oman's Global Imports(%)
30
16
116655442211US' Global Exports(%)Total: US$981 million Total: US$ 2,034 billion
Total: US$17 billionTotal: US$1,166 billionTotal:  US$28 billion
Total: US$935 million
Animal products
Vegetables
Prepared foodsChemicals
PlasticsWood pulp
Precious stonesBase metals
VehiclesOptical
OtherMiscellaneousMinerals
MachineryTextiles
 
Source:  UNSD Comtrade database. 
 
1.7.  The commodity structure, with data adjusted with more recent data, for the period 2010-2012, is shown in Chart 1.2a. While US import s from Oman continue to be concentrated in 
minerals, corresponding to more than half of Oman's exports to the US, chemical products and 
plastics represented respectively 19% and 11% of US imports from Oman, an increase compared 
to their shares for the period 2006-2006 (2% each of total US imports from Oman). Global exports 
from Oman have not fundamentally changed between these two periods, with minerals 
representing 75% of Oman's global exports (com pared to 80% during the period 2006-2008). The 
structure of Oman's imports from the US, as well as the structure of Oman's global imports, has 
been modified by Oman's notable increase in imports of machinery, which has become the largest 
import sector (representing 41% of imports from  the US and 20% of Oman's global imports, 
compared to 37% of Oman's imports from the US  and 24% of Oman's global imports in 2006-08). 
The structure of US global exports has been marked  by a reduction in exports of vehicles and an 
increase in exports of minerals.  WT/REG259/1 
 
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  Chart 1.2b United States and Oman: Produc t composition of merchandise trade, annual 
average (2010-2012) 
55
1911941US imports from Oman (%)
26
20
118554333211US' Global Imports (%)
75663228Oman's Global Exports (%)
41
1713755327Oman's imports from US (%)
20
14
13
128444319Oman's Global Imports(%)
25
11
9
9655553216US' Global Exports(%)Total: US$1.5 billion Total: US$ 2,188 billion
Total: US$24 billionTotal: US$1,434 billionTotal:  US$45 billion
Total: US$1.2 billion
Animal products
Vegetables
Prepared foodsChemicals
PlasticsWood pulp
Precious stonesBase metals
VehiclesOptical
OtherMiscellaneousMinerals
MachineryTextiles
 
Source: UNSD Comtrade database. 
 
1.2  Services and Investment 
1.8.  Chart 1.3 shows the breakdown of commercia l services trade for the United States and for 
Oman with the world, in 2000-2012. During the period, the United States was a constant net 
exporter of commercial services globally. In 2012, the top three categories for exports were travel, 
other business services and royalties and licence fees, while, for imports they were travel services, transportation services and other business services. Oman was a net importer of commercial 
services globally throughout the period. In 2012,  transport, travel, and other business services 
ranked in the top three most important sectors for both imports and exports. WT/REG259/1 
 
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  Chart 1.3 United States and Oman: Total co mmercial services trade with world, 2000-
2012 
0100200300400500600
2000 2002 2004 2006 2008 2010 2012A. United States' imports from world
(US$ Billion) 
0100200300400500600
2000 2002 2004 2006 2008 2010 2012B. United States' exports to world
(US$ Billion) 
0123456789
2000 2002 2004 2006 2008 2010 2012C. Oman's imports from world
(US$ Billion) 
0123456789
2000 2002 2004 2006 2008 2010 2012D.Oman's exports  to world
(US$ Billion) 
 
Note: 
Oman: no trade data on Construction, Financial servic es, Computer and informatio n, Royalties and licence 
fees, and Personal, cultural and recreational services for 2000-2012; no export data on Other business services for 2000-2002. 
US: no trade data on Construction, Computer and information services, and Personal, cultural and 
recreational services for 2012. 
 
Source: UNCTAD. 
 
1.9.  Chart 1.4 shows the breakdown of the United  States' commercial services trade with Oman in 
2007. In 2007, the only year for which data pred ating the entry into force of the Agreement are 
available, the United States ran a deficit in its tr ade in services with Oman. Transport services and 
travel were the largest categories in terms of exports of commercial services, while the largest 
category of imports was other business services , followed by transport services, and travel 
services. WT/REG259/1 
 
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  Chart 1.4 United States, bilateral comme rcial services trade with Oman, 2007 
0.00.51.01.52.02.5
Transport Travel Communications Insurance Other business
servicesUS$ Billions
Exports Imports
 
Source: US authorities. 
 
1.10.  Chart 1.5 shows the United States' and Om an's inward and outward stock of FDI with the 
world during the period 2000-2012. In the United States, outward FDI stocks have grown at an 
annual average rate of 11% between 2000 and 2007 , reaching US$5,274 billion in value by 2007. 
This was followed by a sharp drop as a result of  the 2008 financial crisis but gradually increasing 
up to close to 2007 levels by 2010. The United States inward FDI followed a similar pattern over 
the same period, to reach a record level in 2007 at US$3,551 billion before declining in 2008 and gradually increasing back to 2007 levels by 2012. For Oman, FDI stock with the world consistently 
grew during the period considered, both with resp ect to inward and outward FDI, to establish at 
US$17.2 billion in 2012 for inward FD I and at US$5.4 billion for outw ard FDI. Both US' and Oman's 
FDI flows with the world have considerably fluctuated during the period considered.  WT/REG259/1 
 
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  Chart 1.5 United States and Oman: FDI stock and flow with world, 2000-2012 
01,0002,0003,0004,0005,0006,000
2000 2002 2004 2006 2008 2010 2012A. United States' FDI stock with world,
2000-2012
(US$ billion) 
Outward
Inward
050100150200250300350400450
2000 2002 2004 2006 2008 2010 2012B. United States' FDI flow with world,
2000-2012
(US$ billion) 
Outward
Inward
02468101214161820
2000 2002 2004 2006 2008 2010 2012C. Oman's FDI stock with world, 
2000-2012
(US$ billion) 
Outward
Inward
-0.50.00.51.01.52.02.53.03.54.0
2000 2002 2004 2006 2008 2010 2012D. Oman's FDI flow with world, 
2000-2012
(US$ billion) 
Outward
Inward
 
 
Note: no data on Oman's outward flow and stock for 2000-2002. 
 Source: UNCTAD. 
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Agreement was signed by the United St ates and Oman (hereinafter referred to as "the 
Parties") on 19 January 2006 and entered into force on 1 January 2009.  
2.2.  The goods and services aspects of the Agreem ent were notified to the WTO by the Parties on 
30 January 2009 under Article XXIV:7(a) of th e GATT 1994 and the Understanding on the 
Interpretation of Article XXIV of GATT 1994, and Article V:7(a) of the GATS, respectively (WT/REG259/N/1 and S/C/N/472). The text of the Ag reement is available, together with its related 
annexes, on the following official websites: 
United States : http://ustr.gov/Trade_Agreements/Bil ateral/Oman_FTA/Section_Index.html  
 
Oman :  http://www.omanusfta.com/documents.html  
 
2.3.  The Agreement is composed of 22 Chapters and has related Annexes and side letters, as 
follows: WT/REG259/1 
 
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  Table 2.1 Chapters, annexes, and side letters to the Agreement 
Chapters, Annexes 
and Side Letters Title/description 
Preamble  
Chapter 1 Initial Provisions and Definitions 
Chapter 2 National Treatment and Market Access for Goods 
 Annex 2-A National Treatment and Import  and Export Restrictions 
  Annex 2-B Tariff Elimination 
Chapter 3 Textiles and Apparel 
 Annex 3-A Rules of Origin for Textile or Appare l Goods for Chapters 42,50-63, 70 and 94 
Chapter 4 Rules of Origin 
 Annex 4-A Certain Product-Specific Rules of Origin 
Chapter 5 Customs Administration 
Chapter 6 Sanitary and Phytosanitary Measures 
Chapter 7 Technical Barriers to Trade 
 Annex 7-A TBT Chapter Coordinators 
Chapter 8 Safeguards 
Chapter 9 Government Procurement 
  Annex 9 Terms and Conditions of Coverage 
  Side Letter Impartial Authority 
  Side Letter  State-Owned Enterprises 
Chapter 10 Investment 
 Annex 10-A Customary International Law 
 Annex 10-B Expropriation 
 Annex 10-C Service of Document on a Party under Section B 
 Annex 10-D Possibility of a Bilateral Appellate Mechanism 
Chapter 11 Cross-Border Trade in Services 
 Annex 11-9 Professional Services 
 Annex 11-12 Specific Commitments 
 Side Letter Immigration 
Chapter 12 Financial Services 
 Annex 12.5.1 Cross-Border Trade 
 Annex 12.11 Transparency 
 Annex 12.15 Specific Commitments 
 Annex 12.16.1 Financial Services Committee 
  Side Letter Cross-Border Financial Service Suppliers 
Chapter 13 Telecommunications 
 Annex 13-A  
 Annex 13-B  
Chapter 14 Electronic Commerce 
Chapter 15 Intellectual Property Rights 
 Side Letter Liability for Service Providers and Limitations 
 Side Letter  Optical Discs 
 Side Letter Public Health 
Chapter 16  Labour 
 Annex 16-A Labour Cooperation Mechanism 
Chapter 17 Environment 
 Side Letter Voluntary Mechanisms 
Chapter 18 Transparency 
Chapter 19 Administration of the Agreement 
Chapter 20 Dispute Settlement 
 Annex 20-A Inflation Adjustment Formul a for Monetary Assessments 
Chapter 21 Exceptions 
Chapter 22 Final Provisions 
  
Annex I Non-Conforming Measures (Investment and Cross-Border Trade in Services) 
Annex II Non-Conforming Measures (Investment and Cross-Border Trade in Services) 
Annex III Non-Conforming Measures (Financial Services) 
Memorandum of 
Understanding  MoU on Environmental Cooperation 
 
Source: Free Trade Agreement between the United States and Oman.  WT/REG259/1 
 
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  3  PROVISIONS ON TRADE IN GOODS 
3.1  National treatment and market access provisions on trade in goods 
3.1.1  General provisions 3.1.  Chapter 2 sets out the gene ral definitions, national treatment and market access provisions 
applicable to trade in goods between the Parties. 
3.2.  Under Article 2.2, each Party accords national treatment to the other Party's goods in 
accordance with Article III of the GATT 1994 and its interpretative notes, which are incorporated 
mutatis mutandis  into the Agreement. With respect to a regional level of government,
9 each Party 
shall apply no less favourable treatment than the most favourable treatment that that level of government accords to any like, directly competitive, or substitutable goods, as the case may be, of the Party of which it forms a part.  
3.3.  Exceptions to national treatment (Parag raphs 1 and 2 of Article 2.2) are contained in 
Annex 2-A. Section A of the Annex lists the measures of the United States which are exempted from Paragraphs 1 and 2 of Article 2.2 (National treatment); these relate to: (i) controls on the 
export of logs of all species; (ii) measures existing under domestic maritime transport legislation 
to the extent that such measures were mandatory legislation at the time the United States acceded to the GATT 1947 and have not been amen ded so as to decrease their conformity with 
Part II of GATT 1947, as well as their continuation or prompt renewal providing that the 
amendment does not decrease the conformity of th e provision; and (iii) actions authorized by the 
Dispute Settlement Body of the WTO. Section B of the Annex lists the measures exempted by 
Oman; these relate to actions authorized by the Dispute Settlement Body of the WTO. 
3.1.2  Import duties and charges,  and quantitative restrictions 
3.4.  In accordance with Article 2.3 the Parties agree to progressively eliminate customs duties on 
originating goods in accordance with their respec tive Schedules as set out in Annex 2-B of the 
Agreement. The Annex sets out the main staging categories that apply to the elimination of 
customs duties by the Parties; additional staging categories are listed in the Parties' respective 
general notes to their tariff Schedule. In Annex 1 to its general notes to Annex 2-B, the 
United States sets out a system of tariff quotas on specific agricultural products imported from 
Oman (see TRQs Section below). The longest phase-out period for the elimination of customs duties is ten years from the date of entry into  force of the Agreement. The Parties agree to 
consult, upon request by either Party, to consider accelerating the elimination of customs duties 
set out in their Schedules to Annex 2-B (Article 2.3.3). No consultation has taken place to date.   
3.5.  Under Article 2.3, neither Party may increa se any existing, nor adopt any new, customs duty 
on an originating good. However, a Party may raise a customs duty back to the level established in 
its Schedule following a unilateral tariff reduction; or maintain or increase a customs duty as 
authorized by the WTO's Dispute Settlement Body.  
3.6.  Chapter two sets out certain special regime s relating to the market access for goods. These 
are as follows: (a) Article 2.4 prohibits the adoption of new, or the expansion of existing, waivers 
of customs duties based, explicitly or implicitly, on the fulfilment of a performance requirement; (b) Article 2.5 provides for the temporary admission of goods. More specifically, Article 2.5.1 provides for duty-free temporary admission of prof essional equipment; goods intended for display 
or demonstration; commercial samples and advertising films and recordings; and goods imported 
for sports purposes, regardless of their origin; (c) Article 2.6 provides that neither Party may apply a customs duty to a good, regardless of its origin, that re-enters its territory after that good has 
been exported from its territory to the territory of the other Party for repair or alteration, 
regardless of whether such repair or alteration could be performed in its territory; and (d) duty-
free entry shall be granted to commercial samples of negligible value and to printed advertising 
materials imported from the territory of either Party (Article 2.7).  
                                               
9 Regional level of government  applies only to the United States and consists of, a state of the 
United States, the District of Columb ia and Puerto Rico (Article 1.3). WT/REG259/1 
 
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  3.7.  With respect to non-tariff measures, neit her Party may adopt or maintain any import and 
export prohibitions or restrictions except as provided for in Article XI of the GATT 1994 and its interpretative notes, which are incorporated mutatis mutandis  into the Agreement. In the event 
that a Party maintains a prohibition or restriction on the import or export of a good from or to a 
non-party, it may: (a) limit or prohibit the import of the good of the non-party from the territory of 
the other Party; or (b) require as a condition for exporting the good of the Party to the territory of the other Party, that the good not be re-exported to the non-Party without being consumed in the 
territory of the other Party. In such a case, the Parties, upon the request of either Party, shall 
consult to avoid undue interference with or dist ortion of pricing, marketing, and distribution 
arrangements in the other Party (Article 2.8). 
3.8.  Under Article 2.9, the Parties will ensure that all administrative fees and charges in 
connection with the import and export of goods ar e limited to the approximate cost of the service 
rendered without representing an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes. They shall also avoid requiring consular transactions, including related 
fees and charges, in connection with the import of  any goods. Furthermore, the United States will 
eliminate its merchandise processing fee on originat ing goods. The current list of fees and charges 
applied by the Parties shall be made available on the Internet.   
3.1.3  Liberalization of tariffs and trade 
3.9.  Trade in goods under the Agreement is classified under the Harmonized Commodity 
Description and Coding System (HS), as adopted and implemented by the Parties in their respective tariff laws (Article 1.3). The elimination of customs duties between the Parties is 
detailed in their respective Schedules to Annex 2-B. For both Parties, the elimination of customs 
duties started at entry into force of the Agreement (1 January 2009); the base rates for tariff reductions are the MFN applied duties on 1 January 2005 . Subsequent duty reductions take place 
on 1 January of each year. Annex 2-B sets out the main staging categories that apply to the 
elimination of customs duties by the Parties; these are as follows: 
i. Category A: customs duties on such goods are to be eliminated on the date of the 
Agreement's entry into force; 
ii. Category B: customs duties on such goods are to be progressively eliminated in five 
equal annual stages beginning on the date of the Agreement's entry into force; 
iii. Category C: customs duties on such goods are to be progressively eliminated in ten 
equal annual stages beginning on the date of the Agreement's entry into force; 
iv. Category D: goods in this category shall continue to receive duty-free treatment;
10 
v. Category E: customs duties on such goods shall remain at base rates from year one 
to nine and will become duty-free on 1 January of year ten; 
vi. Additional staging categories are listed in the Parties' respective general notes to 
their tariff Schedule. In the case of the United States these are: 
vii. Category F: customs duties on such goods are to be eliminated as of the 
Agreement's entry into force. For specific tariff lines listed in this category, duty-free means free without bond;
11 and 
                                               
10 Products falling in Category D already benefited from duty free treatment at the MFN level when the 
Agreement entered into force in 2009. 
11 These products are covered under Section XXII, Chap ter 98 "Special classification provisions" of the 
United States HS, and include: Subc hapter XII "Articles admitted free of duty under bond for permanent 
exhibition" (9812.00.20; 9812.00.40); Subchapter XIII "Articles admitt ed temporarily free of duty under bond" 
(9813.00.05, 9813.00.10, 9813.00.15, 9813.00.20, 9813.00.25, 9813.00.30, 9813.00.35, 9813.00.40, 
9813.00.45, 9813.00.50, 9813.00.55, 9813.00.60, 9813.0 0.70, 9813.00.75); and Su bchapter XIV "Tea 
admitted free under bond" (9814.00.50). WT/REG259/1 
 
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  viii. Category G: goods in this category are subject to the provisions listed in the 
United States' general notes to its tariff Schedule until 1 January of year nine at which time such goods will become duty-free.
12 
3.10.  In the case of Oman, the additional staging categories listed in the general notes to its tariff 
Schedule are: 
i. Category H: customs duties on such goods shall remain at base rates from year one 
to nine and will become duty-free on 1 January of year ten;13 and 
ii. Category I: customs duties on such goods shall remain at base rates from year one 
to nine and will become duty-free on 1 January of year ten.14 
3.1.3.1  United States  3.11.  Table 3.1 shows the United States' tariff elimination in terms of the number of lines and 
value of trade, as applied to imports from Oman.
15 The United States' MFN tariff schedule in the 
year of entry into force of the Agreement (2009) comprised 10,253 lines at the HS 8-digit level, of which 10.7% held non ad valorem  duties.
16 At the date of entry into force of the Agreement, 
3,732 tariff lines (36.4% of the tariff) were alre ady duty-free on an MFN basis which corresponded 
to 19.3% of imports from Oman during the 200 6-2008 period. The bulk of the United States' 
scheduled tariff liberalization took place on entry into force of the Agreement with a further 58% of 
tariff lines becoming duty-free amounting to an additional 80.6% of imports from Oman. The 
remaining tariffs lines are to be liberalized in 2013 (208 tariff lines) and 2018 (368 tariff lines) at which point 100% of the United States' tariff lines is to become duty-free, corresponding to 100% of its imports from Oman. 
Table 3.1 United States' tariff eliminat ion commitments under the Agreement and 
corresponding average trade
 
Duty phase-out 
period Number of 
lines % of total lines 
in USA's tariff 
schedule Value of USA's 
imports from Oman 
(2006-2008) 
in million US$ % of USA's total 
imports from 
Oman 
2006-2008 
MFN duty free (2009)  3,732 36.4 165.6 19.3 
2009 5,945 58.0 690.2 80.6 
2013 208 2.0 0.4 0.1 
2018 368 3.6 0.0 0.0 
Total 10,253 100.0 856.2 100.0 
Note: It does not include data beyond HS Chapter 97. 
 Source:  WTO estimates based on data  provided by the United States. 
 
3.12.  The base rates used by the United States for implementing its scheduled tariff liberalization 
already provided for 36.4% of its tariff schedule or 3,732 tariff lines being duty free on an MFN 
basis before the entry into force of the Agreemen t. Of the remaining 6,521 tariff lines, 4,610 held 
a base rate of up to 10%, 654 a base rate of between 10% and 20%, 118 held a base rate of 
between 20% and 30%, 28 a base rate of between  30% and 40%, 4 a base rate of between 40% 
and 50%, 12 a base rate of over 50%, and 1,095 lines had non ad valorem  rates. Chart 3.1 shows 
                                               
12 These products are covered under Section XXII, Chap ter 98 "Special classification provisions" of the 
United States HS, and include: Subchapter II "Article exported and returned, advanced or improved abroad" 
(9802.00.80); and Subchapter XVII "Other special classification provisions" (9817.22.05, 9817.61.01). 
13 Oman specifically reserves the right to establish re gulatory measures or apply fees or excise charges 
pertaining to the distribution, sale, or consumption of these goods, provided that such measures, fees, or 
charges are not inconsistent with the terms of the Agreement or the WTO Agreement.  
14 Oman may continue to prohibit the import of goods in staging category I, provided that it does so 
consistently with the terms of the Agreement and the WTO Agreement. 
15 For tariff lines subject to TRQs only the out-of-quota  duty is included in the tariff-related calculations. 
16 The non ad valorem  duties are applied to 1,095 tariff lines, of which 637 are specific duties, 309 are 
compound duties, 5 are mixed duties and 144 ar e other duties. The Secretariat has used the ad valorem  
component of the tariff lines in its calculat ions for the purpose of  this presentation. WT/REG259/1 
 
- 16 - 
 
  the United States' tariff elimination under the Ag reement by year and duty range. 91.1% of the 
United States' scheduled liberalization was impl emented upon entry into force of the Agreement 
when all of the tariff lines with a base rate of  between 40% and 50%, and most of the tariff lines 
within the other duty ranges, including those with non ad valorem  duties were liberalized; the 
remaining tariff lines are progressively liberalized in 2013 and 2018. The only exceptions are those 
tariff lines with a base rate of over 50% which are not subject to duty reductions and liberalization until 2018. At the end of the transition period (2018), all products from Oman will enter the 
United States duty free. 
Chart 3.1 US: Duty elimin ation under the Agreement 
0 4,000 8,000 12,000200920132018Year of duty‐free treatment
Number of duty-free lines (cumulative)
 
 
 
Source: WTO Secretariat estimates, based on data provided by United States. 
 3.13.  Table 3.2 shows the United States' liberalization commitments under the Agreement 
organized by HS Section product categories. The 5,945 tariff lines liberalized upon entry into force 
of the Agreement are distributed across the HS Sections with a majority falling under HS Sections VI (Chemicals) and XI (Textiles). Of the 496 tariff lines scheduled for liberalization in 2013 and 
2018 more than half fall under HS Sections I to IV; most of the remaining tariff lines fall under 
HS Section XI. 
Table 3.2 United States' tariff eliminatio n under the Agreement, by HS section  
HS section and description MFN 
average % Total No. of 
lines MFN 
2009 Number of duty-free 
lines 
2009 2013 2018 
I Live animals and animal products 9.2 437 158 187 7 85 
II Vegetable products 4.0 499 126 328 32 13 
III Animal or vegetable fats  and oils 3.7 66 17 44 4 1 
IV Prepared foods etc. 11.9 646 132 363 37 114 
V Minerals 0.6 201 152 49   
VI Chemicals and chemical products 3.5 1,710 528 1,182   
VII Plastics and rubber 3.7 375 86 289   
VIII Hides and skins 4.3 220 42 178   
IX Wood and articles 2.4 239 137 102   
X Pulp, paper etc. 0.0 279 279    
XI Textiles and textiles articles 9.0 1,594 211 1,139 128 116 
XII Footwear, headgear 13.9 174 35 119  20 
XIII Articles of ston e 5.2 298 99 188  11 
XIV Precious stones, etc. 3.0 105 48 57   
XV Base metals and base metals 
products 1.9 992 536 456   
XVI Machinery 1.7 1,341 693 640  8 
XVII Transport equipment 2.4 253 132 121   
XVIII Precision equipment 3.0 514 172 342   
XIX Arms and ammunition 1.6 39 24 15   
XX Misc. manufactured articles 3.3 264 118 146   
XXI Works of art, etc. 0.0 7 7    WT/REG259/1 
 
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  HS section and description MFN 
average % Total No. of 
lines MFN 
2009 Number of duty-free 
lines 
2009 2013 2018 
Total 4.8 10,253 3,732 5,945 208 368 
Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related 
calculations; Calculation of MFN averages includes AVEs provided by the United States' authorities; for preferential tariffs with non- ad valorem  components, only the ad valorem  part of the rate was 
included in the calculation of the tariff averages. 
 Source: WTO estimates based on data  provided by the United States. 
 
3.1.3.2  Oman 
3.14.  Table 3.3 shows the Oman's tariff elimination in terms of the number of lines and value of 
trade, as applied to imports from the United States.17 Oman's MFN tariff schedule in the year of 
entry into force of the Agreement (2009) comprised 7,106 lines at the HS 8-digit level, of which 0.5% held non ad valorem  duties.
18 At the date of entry into force of the Agreement, 677 tariff 
lines (9.5% of the tariff) were already duty-free on an MFN basis which corresponded to 15.1% of 
imports from the United States during the 2006-20 08 period. The bulk of Oman's scheduled tariff 
liberalization took place on entry into force of the Agreement with a further 85.3% of tariff lines becoming duty-free amounting to an additional 83.6% of imports from the United States. The 
remaining tariffs lines are to be liberalized in 2013 (206 tariff lines) and 2018 (152 tariff lines) at 
which point 99.8% of Oman's tariff lines is to become duty-free, corresponding to 100% of its 
imports from the United States. 
Table 3.3 Oman's tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase-out 
period Number of 
lines % of total lines 
in Oman's tariff 
schedule Value of Oman's 
imports from USA 
(2006-2008)a 
in million US$ % of Oman's 
total imports 
from USA 
2006-2008a 
MFN duty free (2009)  677 9.5 139.8 15.1 
2009 6,059 85.3 773.9 83.6 
2013 206 2.9 4.0 0.4 
2018 152 2.1 7.5 0.8 
Remain dutiable b 12 0.2 0.0 0.0 
Total 7,106 100.0 925.2 100.0 
a 2006 figures are estimates due to transposition of the data from HS 2002 to HS 2007 nomenclature. 
b Products which are prohibited. Note: It does not include data beyond HS Chapter 97.  Source:  WTO estimates based on data provided by the Oman. 
 
3.15.  The base rates used by Oman for implementing its scheduled tariff liberalization already 
provided for 9.5% of its tariff schedule or 677 ta riff lines being duty free on an MFN basis before 
the entry into force of the Agreement. Of the remaining 6,429 tariff lines, 6,331 held a base rate of up to 10%, 61 a base rate of over 50%, and 37 lines had non ad valorem  rates. Chart 3.2 
shows Oman's tariff elimination under the Agreem ent by year and duty range. 98.7% of Oman's 
scheduled liberalization was implemented upon entr y into force of the Agreement when most of 
the tariff lines with a base rate inferior or equal to 10% (6,042 out of 6,331), and a small portion 
of the tariff lines with a rate of over 50% (3 out of 61), as well as 14 out of 37 non ad valorem  
duties were liberalized; the remaining tariff lines are progressively liberalized in 2013 and 2018. The only exceptions are those tariff lines with a base rate of over 50% which are not subject to 
duty reductions and liberalization, as their import is banned
19 (12 lines out of 61).  
                                               
17 For tariff lines subject to TRQs only the out-of-quota  duty is included in the tariff-related calculations. 
18 The non- ad valorem  duties are applied to 37 tariff lines, of which 19 ar e mixed duties, and 18 are 
other than specific, compound, or mixed duties. The Secretariat has used the ad valorem  component of the 
tariff lines in its calculations for the purpose of this presentation. 
19 The import of the following products is banned under the Agreement: pure-bred breeding animals 
(HS 01031000); certain live swine (HS 01039100 and 01039200); poppy seeds (HS 12089100); poppy and 
other seeds (HS 12079910 and 1207992); coca leaf (HS12113000); poppy straw (HS 12114000); black poppy (HS 12119020); cannabis sativa (HS 12119060); opium (HS 13021100); and hashish (HS 13021910). WT/REG259/1 
 
- 18 - 
 
  Chart 3.2 Oman: Duty elimin ation under the Agreement  
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000200920132018Year of duty‐free treatment
Number of duty-free lines (cumulative)
 
 
Source: WTO Secretariat estimates, based on data provided by Oman. 
 
3.16.  Table 3.4 shows Oman's liberalization commitments under the Agreement organized by HS Section product categories. The 5,059 tariff lines liberalized upon entry into force of the Agreement are distributed across the HS Sections with a majority falling under HS Section VI 
(Chemicals and chemical products). Of the 358 tariff lines scheduled for liberalization in 2013 and 
2018 more than half fall under HS Section XI (Texti les and textiles articles); most of the remaining 
tariff lines fall under HS Sections I (Live animals and animal products) and IV (Prepared foods 
etc.). 
Table 3.4 Oman's tariff elimination under the Agreement, by HS section  
HS section and 
description MFN 
average 
% Total No. 
of lines MFN 
2009 Number of duty-free 
lines Prohibited 
tariff lines 2009 2013 2018 
I Live animals and animal 
products 8.7 338 114 153 53 15 3 
II Vegetable products 5.3 414 169 200 36  9 
III Animal or vegetable 
fats and oils 11.3 60  55 1 4  
IV Prepared foods etc. 16.3 386 17 316 6 47  
V Minerals 5.0 210  210    
VI Chemicals and chemical 
products 4.5 1,194 120 1,074    
VII Plastics and rubber 5.0 269  269    
VIII Hides and skins 5.0 86  82  4  
IX Wood and articles 4.9 189 3 186    
X Pulp, paper etc. 4.1 199 35 164    
XI Textiles and textiles 
articles 5.0 950  758 110 82  
XII Footwear, headgear 5.0 77  77    
XIII Articles of ston e 5.0 229 2 227    
XIV Precious stones, etc. 3.2 65 23 42    
XV Base metals and base 
metals products 5.0 725  725    
XVI Machinery 4.2 939 140 799    
XVII Transport equipment 4.4 245 27 218    
XVIII Precision equipment 4.5 290 27 263    
XIX Arms and ammunition 5.0 25  25    
XX Misc. manufactured 
articles 5.0 206  206    
XXI Works of art, etc. 5.0 10  10    
Total 5.6 7,106 677 6,059 206 152 12 
Note: For the calculation of tariff averages with non ad valorem  components, only the ad valorem  part of 
the rate was included. 
 Source: WTO estimates based on data provided by the Oman. WT/REG259/1 
 
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  3.1.4  Tariff Rates Quotas 
3.17.  Under the Agreement the United States has allocated tariff rate quotas (TRQs), in addition 
to its WTO TRQs, to imports from Oman for the following products: beef, dairy products, peanuts, sugar and sugar products, cotton and tobacco, covering 189 tariff lines at the HS 8-digit level 
(Annex 1 to the Tariff Schedule of the United States). The TRQ volume for all these products will 
be increased by 9% every year, apart from dairy products and sugar and sugar-containing products, whose volume will expand by 4% annually.  The out-of-quota duties will be phased-out in 
accordance with the timetable in Category C (i.e. in ten equal annual stages as from the 
Agreement's entry into force)
20; full liberalization is to be completed by 1 January 2018. The duty 
applied to imports from Oman within the quota quantity for each product is zero from the Agreement's entry into force. The quantities alloca ted in Annex 1 are on a first-come, first-served 
basis (see Table A2.1 in Annex 2 to this presentation). 
3.18.  Oman does not have TRQs under the Agreement. 3.1.5  Rules of Origin 
3.19.  The Agreement provides for general disciplines on rules of origin under Chapter 4, with 
product specific rules under Annex 4-A (Certain Product-Specific Rules of Origin), and for textiles and clothing under Chapter 3 (Textiles and Apparel) (see section C.1 below).  
3.20.  According to Article 4.1 a good is originatin g when it is imported directly from the territory 
of one Party into the territory of the other Party and it is "wholly grown, produced or 
manufactured" in the territory of one or both of the Parties.
21 For non-originating goods other than 
those covered by specific rules of origin in Annexes 3-A or 4-A (which are described below), the 
status of originating good is obtained when the good is "a new or different article of commerce" 
that has been grown, produced or manufactured in  one or both of the Parties and the sum of (i) 
the value of materials produced in the territory of one or both of the Parties, plus (ii) the direct 
costs of processing operations performed in the terri tory of one or both of the Parties, is not less 
than 35% of the appraised value of the good at the time it is imported into the territory of a Party 
(Article 4.1(b)).22  
3.21.  The calculation of the value of materials produced in the Parties' territories and the direct 
costs of processing operations are detailed in Ar ticles 4.5 and 4.6 respectively. Packaging, packing 
materials and containers for retail sales and shipment of a good, as well as the use of indirect material
23 shall be disregarded except if they count towards satisfying the 35% value requirement 
(Article 4.7). Simple combining or packaging operations and dilution with water or another 
substance that does not materially alter the characteristic of the good do not qualify towards obtaining the status of originating good (Article 4.3).  
3.22.  The Agreement provides for bilateral cumulati on both in terms of processing operations and 
the value of materials produced in the Parties' territories (Article 4.4). Furthermore, the Parties on a best endeavour basis agree to develop, to the extent practicable, within six months from the 
date of entry into force of the Agreement, a regional cumulation regime covering the United States 
                                               
20 Originating goods included in Annex 1 are subject to the rates of duty as set out in the United States' 
Schedule to the Agreement in lieu  of the rates of duty set out in Chapters 1 through 97 of the United States 
HS. 
21 This concept applies to goods that are born, raised , entirely grown, harvested, picked, or gathered, 
fished or mined in the territory of one or both of the Parties; goods of sea-fishing and other goods taken from 
the sea by vessels registered with a Party and flying it s flag; goods produced on board factory ships registered 
with a Party and flying its flag; goods taken from the se abed or subsoil beneath the seabed outside territorial 
waters; goods taken from outer space; and recovered go ods and waste and scrap de rived from production in 
the territory of the Parties. The detailed requirements are contained in Article 4.14. 
22 A "new and different article of commerce" means a good that has been substantially transformed 
from a good or material that is not wholly the growth, product, or manufacture of one of both of the Parties 
and that has a new name, character, or use distinct from the good or material from which it was transformed 
(Article 4.2). 
23 Indirect materials are goods used in the growth, pr oduction, manufacture, test ing or inspection of a 
good but not physically incorporated into the good or to a good used in the maintenance of buildings or the 
operation of equipment associated with the growth, prod uction, or manufacture of a good (See Article 4.14 for 
the full definition of  indirect materials). WT/REG259/1 
 
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  and Middle Eastern countries that have an FTA with the United States (Article 4.13). Consultations 
in that regard are on-going.  
3.23.  To qualify for preferential treatment, the originating good must be imported directly from 
the territory of the other Party without undergoing subsequent production, manufacturing, or any 
other operation outside the Parties' territories, other than unloading, reloading, or any other 
operation necessary to preserve it in good conditio n or to transport the good to the territory of the 
other Party (Article 4.9). The importer, to qualify fo r preferential tariff treatment, must submit to 
the relevant authorities, upon request, a declaration containing all pertinent information on the 
good's origin. The declaration should be requested only when: a Party has reason to question the accuracy of the good's certification; the Party's risk assessment procedures indicate that the verification of a claim is appropriate; or in case of random verifications (Article 4.10).  
3.24.  The Parties agree to consult and cooperate to ensure the proper implementation of this 
Chapter and to establish, if necessary, ad hoc working groups or a sub-committee of the Joint Committee to consider any matter relating to or to review the discipline on rules of origin 
(Article 4.12).  
3.25.  The United States has listed in Annex 4-A certain product-specific rules of origin; these 
apply to prepared foodstuffs, including sugars and sugar confectionary; cocoa and cocoa 
preparations; preparations of vegetables, fruits, nuts or other parts of plants; and miscellaneous 
edible preparations (HS Chapters 17-18 and 20-21 respectively). For these products the status of 
originating good is obtained when: (i) each of the non-originating materials used in the production of the good undergoes an applicable change in tari ff classification at the heading (HS 4 digit) or 
sub-heading (HS-6 digit) level as a result of produc tion occurring entirely in the territory of one or 
both of the Parties, or (ii) if the good otherwise satisfies the applicable requirements of Annex 4-A where a change in tariff classification for each non-originating material is not specified; and (iii) 
the good satisfies other applicable requirements of the Chapter on rules of origin.  
3.1.6  Export duties and charges,  and quantitative restrictions 
3.26.  As noted, Article 2.8 provides that neither Party may adopt or maintain any prohibition or 
restriction on the import of any good of the other Party or on the export or sale for export of any 
good destined for the territory of the other Party.  Article 2.10 further prohibits the adoption or 
maintenance of any tax, duty, or other charge on the export of any good to the territory of other 
Party, unless the tax, duty, or charge is also adop ted or maintained on the good when destined for 
domestic consumption. Export subsidies on agricultural products are dealt with in Article 2.11 
(See paragraph 3.37.  ). 
3.2  Regulatory provisions on trade in goods 
3.2.1  Standards 
3.2.1.1  Sanitary and phytosanitary measures 3.27.  Chapter 6 deals with sanitary and phytosanitary measures. The Parties reaffirm their 
existing rights and obligations under the WTO Agreement on Sanitary and Phytosanitary Measures 
(SPS) (Article 6.3.3). Any SPS matter can be addressed through the Joint Committee established under Article 19.2 of the Agreement or a subcommittee established thereunder (Article 6.3.2). Neither Party may have recourse to dispute settlement under the Agreement for any matter 
arising under Chapter 6 (Article 6.3.3). 
3.2.1.2  Technical barriers to trade 3.28.  Chapter 7 on Technical Barriers to Trade (TBT) applies to all standards, technical 
regulations, and conformity assessment procedures of the central level of government that may 
directly or indirectly affect the Parties' mutual trade except for technical specifications prepared by governmental bodies for their production or consumption and SPS measures as defined in Annex A 
of the WTO Agreement on SPS. The Parties reaffirm  their existing rights and obligations under the 
WTO Agreement on TBT. In determining whether an international standard, guide, or recommendation exists within the meaning of Articles 2 and 5 and Annex 3 of the TBT Agreement, WT/REG259/1 
 
- 21 - 
 
  the Parties agree to apply the principles set out in Decisions and Recommendations adopted by the 
WTO's TBT Committee since 1 January 1995. 
3.29.  With regard to conformity assessment procedures the Parties recognize that a broad range 
of mechanisms exists to facilitate the acceptance of conformity assessment procedures in the 
other Party's territory and agree to intensify their exchange of information with respect to these 
mechanisms. The Agreement also requires that each Party accredits, approves, licences or otherwise recognizes a conformity assessment body in the other Party on terms no less favourable 
than it accords to its own conformity assessment bodies. If this is not the case, the Party shall, on 
the request of the other Party, explain the reason for its decision. When a Party does not accept the results, accreditation, approval, licence, or recognition by the other Party's conformity 
assessment body, or a request from the other Party for negotiations or conclusion of an agreement 
on facilitating recognition, it must explain the reasons for its decision, upon the other Party's 
request.  
3.30.  With respect to trade facilitation, the Parties agree to intensify their joint work on 
standards, technical regulations and conformity as sessment procedures with a view to facilitating 
access to each other's' markets. In particular, th e Parties will try to identify trade facilitating 
bilateral initiatives in this area that are appropriate for certain issues or sectors, including 
cooperation on regulatory issues, such as alignment with international standards and use of 
accreditation to qualify conformity assessment bodi es (Article 7.4). With respect to transparency, 
the Parties agree to allow each other's' persons on terms no less favourable than that accorded to their own persons, including non-governmental standardizing bodies, to participate and comment 
on the development of standards, technical re gulations and conformity assessment procedures 
(Article 7.6). The Agreement establishes TBT Chapter Coordinators to, inter alia,  monitor the 
implementation and administration of the TBT Chapter, enhance and facilitate cooperation in the 
development of standards and conformity assessmen t, including any sector-specific proposals, and 
for consultations on any matter arising under the Chapter (Article 7.7).
24 
3.2.2  Safeguard mechanisms 
3.2.2.1  Global safeguards 
3.31.  The Parties retain their rights and obligations under Article XIX of GATT 1994 and the WTO 
Agreement on Safeguards. The Agreement does not co nfer any additional rights or obligations on 
the Parties with regard to actions taken under Article XIX of GATT 1994 and the WTO Agreement 
on Safeguards (Article 8.4). In its general notes to Annex 2-B, the United States specifies that 
originating goods imported into the United States shall not be subject to any duties applied pursuant to Article 5 of the WTO Agreement on Agriculture. 
3.2.2.2  Bilateral safeguards 
3.32.  If as a result of the reduction or eliminat ion of customs duties under the Agreement, a good 
originating in one Party is imported into the other Party: (i) in such increased quantities, in 
absolute terms or relative to domestic production, and (ii) under such conditions that the imports 
constitute "substantial" cause of serious injury, or  threat thereof, to a domestic industry of the 
importing Party which produces a like or directly competitive good, then the importing Party may apply a bilateral safeguard measure (Article 8.1), to the extent and for such time as may be 
necessary to prevent or remedy serious injury an d to facilitate adjustment (Article 8.2.4.(a)).
25 
Bilateral safeguards may take the form of: (i) suspension of the further reduction of customs duty on the good; or (ii) increased customs duty up to the lesser of the applied MFN duty when the 
safeguard is taken and on the day immediately preceding the date of entry into force of the 
Agreement (Article 8.1). 
                                               
24 Annex 7-A specifies that the TBT Chapter Coordinator shall be: in the case of Oman, the Ministry of 
Commerce and Industry; and in the case of the Unit ed States, the Office of the United States Trade 
Representative. 
25 Under Article 8.5, the Agreement follows the definiti on of "domestic industry", "serious injury", and 
"threat of serious injury" as in Article 4 of the WTO Agreement on Safeguards. In addition, the Agreement defines "substantial cause" as "a cause that is  important and not less than any other cause". WT/REG259/1 
 
- 22 - 
 
  3.33.  Article 8.2 sets out the conditions and limitations relating to the application of a safeguard 
measure. It requires a Party initiating an investigation to notify and consult with the other Party as far in advance as practicable before applying a measure (Article 8.2.1). The safeguard measure may only be applied following an investigation in accordance with Articles 3 and 4.2(c) of the WTO 
Agreement on Safeguards; the Party conducting the investigation will comply with Article 4.2(a) of 
the WTO Agreement on Safeguards.
26 A safeguard measure against a good must be applied to the 
extent and for such time as may be necessary to prevent or remedy serious injury and facilitate 
adjustment. The measure may not be applied for a period exceeding three years; more than once 
against the same good; and beyond the expiration of  the transition period provided for that good 
under the Agreement. If the expected duration of the measure is longer than one year, the 
importing Party shall progressively liberalize it at regular intervals.  
3.34.  Compensation for the measures shall be given to the exporting Party in the form of 
concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected from the measure. If  an agreement on compensation cannot be reached 
within 30 days from the date the importing Party announces a decision to apply the measure, the 
other Party may take tariff action having trade ef fects substantially equivalent to the safeguard 
measure, for the minimum period necessary to achieve the substantially equivalent effects and 
only while the safeguard measure is being applie d (Article 8.3). Once the safeguard measure has 
been terminated, the rate of customs duty must be the same as that agreed to in the Party's schedule of concessions. The Agreement does not contain a possibility of imposing provisional 
measures. 
3.2.2.3  Special safeguards 
3.35.  Emergency bilateral safeguard action is permitted under Chapter 3 on Textiles and Clothing 
if textiles and clothing products subject to libera lization under the Agreement are imported in such 
increased quantities as to cause or threaten to cause serious damage to a domestic industry 
producing like or directly competitive goods (Section 3.3  below). 
3.2.3  Anti-dumping and countervailing measures 
3.36.  The Agreement contains no specific provis ion on anti-dumping and countervailing measures. 
3.2.4  Subsidies and State-aid 3.37.  Article 2.11 prohibits export subsidies on any agricultural products in trade between the 
Parties. However, where an exporting Party consider s that a non-Party is exporting an agricultural 
good to the territory of the other Party with the benefit of export subsidies, the importing Party 
shall, on written request of the exporting Party, consult with the exporting Party with a view to 
agreeing specific measures that the importing Party may adopt to counter the effect of such 
subsidized imports. If the importing Party adopts the agreed measures, the exporting Party shall 
refrain from applying any export subsidy to exports of the good to the territory of the importing Party. The Agreement contains no specific provisions on state-aid. 
3.2.5  Customs-related procedures 
3.38.  Chapter 5 sets out the provisions relating to customs administration. It requires the Parties 
to: publish their laws, regulations and administrati ve procedures on the Internet and to designate 
one or more enquiry points to address inquiries from interested persons
 (Article 5.1); adopt 
simplified customs procedures to ensure the rele ase of goods by customs, if possible, within 
48 hours of arrival and without interim transfers to warehouses (Article 5.2); facilitate customs procedures through the use of information technology based on international standards 
(Article 5.3); maintain risk management systems to concentrate inspection activities on high-risk 
goods and simplify clearance of low-risk goods (Article 5.4); and to adopt or maintain procedures for express shipments (Article 5.7).  
                                               
26 Articles 3, 4.2(a) and (c) of the WTO Agreement on  Safeguards are incorporated into and made a part 
of this Agreement mutatis mutandis . WT/REG259/1 
 
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  3.39.  The Parties agree to cooperate in achieving compliance with their respective domestic laws 
and regulations in implementing the provisions of  the Agreement on trade in goods (including the 
provisions on rules of origin), the Agreement on Customs Valuation and any other matters on imports and exports as agreed to by the Parties (Article 5.5). Where a Party has a reasonable 
suspicion of unlawful activity
27 related to its laws or regulations governing imports, it may request 
that the other Party provide specific confidential information that pertains to that activity and that is normally collected by the other Party in connect ion with the import of goods. The United States 
endeavours to provide Oman with technical advice and assistance for the purpose of improving risk 
assessment techniques, simplifying and expediting customs procedures, advancing technical skills, and enhancing the use of technologies that can lead to improved compliance with laws and regulations governing imports. 
3.40.  Each Party shall ensure that with respect to a determination by a Party on customs matters, 
an importer in its territory has access to: (a) administrative review independent of the official or office that issued the determination; and (b) judicial review of the determination (Article 5.8). In 
the case of Oman, the right of appeal for importers is governed by Article 163 of the GCC Common 
Customs Law. With respect to advance rulings, th e customs authorities of each Party must provide 
written advance rulings prior to import, at the requ est of an importer, exporter or producer in the 
other Party, on matters relating to inter alia  tariff classification, customs valuation criterion, duty 
drawback, and qualification of the good as originating and whether a good qualifies for duty free treatment as a good re-entered after repair or alteration. The advance rulings, which are valid for three years unless there is a change in facts circumstances, must be issued within 150 days of a 
request, provided that the requester has submi tted all the necessary information (Article 5.10). 
The advance ruling requirement will apply to Oman after two years of implementation of the Agreement (Article 5.10.9). For this purpose, the Parties will consult to establish a work 
programme for Oman and to decide on technical assistance. Oman's progress in implementing 
Article 5.10 will be discussed no later than 18 mont hs after the Agreement's entry into force. To 
date, the Parties have held two consultations on advance rulings. 
3.3  Sector-specific provisions on trade in goods 
3.3.1  Textiles and clothing 3.41.  Chapter 3 contains provisions on bilateral emergency safeguards, specific rules of origin, 
and customs cooperation for textiles and apparel products. 
3.3.1.1  Emergency safeguards 
3.42.  When a textile or apparel good benefiting from preferential tariff treatment under the 
Agreement is being imported into the territory of a Party in such increased quantities, in absolute 
terms or relative to the domestic market for that good, and under such conditions as to cause 
serious damage, or actual threat thereof, to a domestic industry producing a like or directly competitive good, the affected Party may take emergency action, consisting of an increase in the 
rate of duty on the good to a level not to exc eed the lesser of: (a) the MFN applied duty at the 
time the action is taken; and (b) the MFN duty in effect on the date of entry into force of the Agreement (Article 3.1).  
3.43.  A Party shall determine the "serious damage", or actual threat thereof by: (a) examining 
the effect of increased imports on the particular industry, as reflected in changes in relevant 
economic variables such as, output, productivity, capacity utilization, inventories, market share, 
exports, wages, employment, domestic prices, profits, and investment, none of which shall 
necessarily be decisive; and (b) by not considering changes in technology or consumer preferences 
as factors supporting a determination of serious damage or actual threat thereof.  
                                               
27 As specified in Article 5.5.5 "reasonable suspicio n on unlawful activity" means a suspicion based on 
relevant factual information obtained from public or private sources, including historical evidence that (a) a specific importer, exporter, producer , or other enterprise involved in the movement of goods between the 
Parties' territories has not complied with a Party's laws or regulations governing importation or (b) some or all 
of the enterprises involved in the movement of goods with in a specific product sector have not complied with a 
Party's laws or regulations governing im portation; or (c) other information that the Parties agree is sufficient in 
the context of a particular request. WT/REG259/1 
 
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  3.44.  Emergency actions may not be maintained for a period exceeding three years; shall not be 
taken against a good beyond ten years after which the Party must eliminate customs duties on that good; and shall not be taken more than once  against the same good. On termination of the 
emergency action, the Party must apply to the good that was subject to the emergency action, the 
rate of duty that would have been in effect but for the action.  
3.45.  Any Party may take such emergency measures only after notification, in writing, to the 
other Party and only following an investigation by its competent authorities. On the request of the 
exporting Party, the importing Party shall enter into consultations regarding the matter.  
3.46.  The importing Party must provide the exporting Party with "mutually agreed trade 
liberalization compensation", in the form of concessions having substantially equivalent trade effects or equivalent to the value of the addition al duties expected to result from the emergency 
action. If the Parties do not agree on the compensation, the exporting Party may suspend tariff 
concessions having equivalent effect on bilate ral trade of the emergency action. Compensation 
shall be limited to textiles and apparel goods, unless the Parties agree otherwise, while tariff 
concessions may be suspended against any good from the importing Party.  
3.47.  The Parties maintain the right to adopt safeguard measures in accordance with the WTO 
Safeguard Agreement. However, if a good is subject to an action under the WTO Safeguard 
Agreement, it cannot be subject to emergency action under the Agreement.  
3.3.1.2  Specific rules of origin and related matters 3.48.  Article 3.2.1 specifies that the rules of origin provided for under Chapter 4 apply to textiles 
and apparel products except as otherwise provided in Chapter 3 and its Annex 3-A; the latter sets 
out specific rules of origin for certain textiles and apparel goods, for chapters 42, 50-63, 70 and 
94. Goods covered by the Annex are considered to be originating if (i) each of the non-originating materials used in its production in the territory of one or both of the Parties undergoes an 
applicable change in tariff classification at th e heading (HS 4 digit) or sub-heading (HS 6-digit) 
levels, or the good otherwise satisfies the requirements of the Chapter where a change in tariff classification is not required; and (ii) the good satisfies any other requirements on rules of origin 
under the Agreement. 
3.49.  A de minimis  clause applies to textiles or apparel goods considered to be not originating 
because certain fibres or yarns used in the prod uction of their components that determine the 
tariff classification do not undergo a change in tariff classification, provided that the total weight of 
such fibres or yarns in that component does not exceed 7% of the total weight of that component 
(Article 3.2.6).  
3.50.  Textiles and apparel goods classifiable as goods put up in sets for retail sale (in accordance 
with the General Rule of Interpretation 3 of th e HS) shall not be regarded as originating goods 
unless each of the goods in the set is an originating good or the total value of the non-originating goods in the set does not exceed 10% of the customs value of the set (Article 3.2.7). 
3.51.  Paragraphs 8-12 of Article 3.2 further accord  preferential tariff treatment to non-originating 
cotton or man-made fibre apparel goods in HS Chapters 61 or 62 that are cut or knit to shape, or both, and sewn or otherwise assembled in a Party's territory from fabric or yarn produced or obtained outside its territory, provided that they meet the applicable conditions for preferential 
treatment under the Agreement other than being an originating good. This treatment is limited to 
goods imported into the territory of a Party up to an annual total quantity of 50 million square metres equivalent in each of the first ten years after the Agreement's entry into force and will 
cease to apply thereafter.  
3.52.  Upon request by either Party, the Parties shall consult to consider whether the rules of 
origin applicable to a specific textiles or apparel good should be revised to address the issue of 
availability of supply of fibres, yarn, or fabrics in the territory of any of the Parties (Article 3.2.3). 
To this end, each Party shall provide the other wi th data that demonstrate "substantial production" 
in its territory of a particular fibre, yarn or fabric. Consultations are to be concluded within 60 days after the submission of the request. WT/REG259/1 
 
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  3.3.1.3  Customs cooperation for textiles and apparel goods 
3.53.  Under Chapter 3 the Parties agree to cooperate to enforce measures affecting trade in 
textiles and apparel products, including those implementing international agreements; ensuring the accuracy of claims of origin; and preventing  circumvention of any agreements (Article 3.3). 
Article 3.3 sets out detailed inspection and verifica tion procedures to determine the accuracy of a 
claim of origin for textiles and apparel goods; these include on-site visits in the territory of the exporting Party to the premises of an exporter, producer, or any other enterprise involved in the 
movement of a textile or apparel good from the territory of the exporting Party to the territory of 
the importing Party. The exporting Party conducts  the verification and may be assisted by the 
competent authorities of the importing Party. In case of refusal by the exporter, producer or 
enterprise to consent to the visit, the importing Party may take appropriate actions including 
denying preferential tariff treatment to the textile or apparel good subject to the verification. Such 
measures may also be taken when the importing Party (a) is unable to determine the accuracy of claims of origin or the existence of unlawful ac tivities within 12 months after its request for 
verification, or (b) makes a negative determination, provided that the other Party has been 
notified of its intention to do so.  
3.54.  Oman agrees to establish and maintain a programme to ensure that textiles and apparel 
goods that are imported into or exported from Oman, or that are processed or manipulated in 
Oman or in a free trade zone or export processing zone in Oman en route to the United States, are 
marked with the correct country of origin and that the documents accompanying the goods accurately describe the goods. This programme also provides for verification and inspection 
procedures to verify that textiles and apparel goods that an enterprise claims as originating goods 
or marks as products of Oman and that are export ed to the United States are produced in Oman. 
Oman will also require each enterprise that expo rts, produces, or is otherwise involved in the 
movement of textiles or apparel goods within the territory of Oman to maintain in Oman records 
relating to the production or export of the goods for a period of five years from the date on which such records are created. 
3.55.  On the request of either Party, the Part ies will enter into consultations to resolve any 
technical or interpretive difficulties that may aris e under Article 3.3 or to discuss ways to improve 
the effectiveness of their cooperative efforts. In addition, either Party may request technical or other assistance from the other Party in implementing Article 3.3. Article 3.4 establishes a 
Committee on Textiles and Apparel Trade Matters to consider any matter arising under the 
Chapter.  
4  PROVISIONS ON TRADE IN SERVICES, INVESTMENTS AND FINANCIAL SERVICES 
4.1  Scope and definitions 
4.1.  Chapter 11 sets out the provisions governing cross-border trade in services. The Chapter 
applies to measures adopted or maintained by the Parties by central, regional or local 
governments or authorities and by non-governmental  bodies in the exercise of powers delegated 
by central, regional or local governments or authorities (Article 11.1.2). Provisions on market access (Article 11.4), domestic regulations (Article 11.7), and transparency (Article 11.8) also apply to "measures of a Party affecting the supply of a service in its territory by a covered 
investment (Article 11.1.3).
28 The provisions of the Chapter do not apply to: financial services;29 
government procurement; air services, including domestic and international air transportation services, and related services in support of air services, other than aircraft repair and maintenance 
services and specialty air services; and subsidies or grants provided by a Party, including 
government-supported loans, guarantees, and insurance (Article 11.1.4). Government procurement and financial services are addressed, respectively, in Chapters 9 and 12 of the 
Agreement. With respect to the movement of natural persons Chapter 11 does not impose any 
obligations on a Party with respect to a national of the other Party seeking access to its 
                                               
28 A "covered investment" means, with respect to a Party, an investment in its territory of an investor of 
the other Party in existence as of the date of entry in to force of the Agreement or established, acquired, or 
expanded thereafter (Article 1.3). 
29 Provisions on market access, domestic regulati on, and transparency do apply where the financial 
service is supplied by a covered investment that is not a covered investment in a financial institution in a Party's territory. WT/REG259/1 
 
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  employment market, or employed on a permanent basis in its territory, and does not confer any 
right on that national with respect to that access  or employment (Article 11.1.5). The Side Letter 
on immigration further clarifies that the Agreement places no obligations on the Parties with regard to their immigration measures. 
4.2.  The provisions governing investment are set out in Chapter 10. These apply to measures 
adopted or maintained by a Party relating to investors of the other Party; covered investments; and with respect to Article 10.8 (Performance Requirements) and Article 10.10 (Investment and 
Environment), all investments in the territory of the Party. The provisions of the Chapter do not 
apply to measures adopted or maintained by a Party to the extent that they are covered by Chapter 12 (Financial Services). 
4.3.  Chapter 12 on Financial Services applies to measures adopted or maintained by a Party 
relating to: (a) financial institutions of the other Party
30; (b) investors of the other Party, and 
investments of such investors, in financial institutions in the Party's territory; and (c) cross-border trade in financial services (Article 12.1). Chapters 10 and 11 apply to measures covered by 
Chapter 12 only to the extent that these Chapters or their articles are incorporated into 
Chapter 12.
31 Chapter 12 does not apply to activities or services forming part of a public 
retirement plan or statutory system of social security; or to activities or services conducted for the 
account or with the guarantee or using the financial resources, of the Party, including its public 
entities (Article 12.3). However, the Chapter will apply if a Party allows these services or services to be provided by its financial institutions in competition with a public entity or a financial institution. 
4.4.  Definitions specific to services, investments and financial services are contained in 
Article 11.14, Article 10.27 and Article 12.20 respectively. Cross-border trade in services is defined as the supply of a service through modes 1, 2, and 4 of the GATS; it does not include the supply of 
a service in the territory of a Party by a "covered investment" (i.e. mode 3) although certain 
obligations of Chapter 11
32 apply to services supplied through a covered investment 
(Article 11.1.3). A service supplier of a Party is de fined as a person of that Party that seeks to 
supply or supplies a service;33 a person of a Party means a national or an enterprise of a Party.34 
Investment is defined as every asset owned or controlled by an investor while investor of a Party means a Party or state enterprise thereof, or a national or an enterprise of a Party that attempts to make, is making, or has made an investment in the territory of the other Party. Financial 
services mean any service of a financial nature, including all insurance and insurance-related 
services, and all banking and other financial services (excluding insurance), as well as services incidental or auxiliary to a service of a financial nature. Cross-border trade in financial services is 
defined as the supply of a financial service through modes 1, 2, and 4 of the GATS; it does not 
include the supply of a financial service in the territory of a Party by an investment in that territory. 
4.5.   Liberalization of trade in services and investments is based on a "negative-list approach" 
whereby the obligations of national and MFN treatm ent, local presence, and market access, in the 
case of trade in services; and national and MFN treatment, performance requirements, and senior 
management and board of directors, in the case of investments, apply to all covered sectors 
except for: (a) existing non-conforming measures as specified in Annex I or maintained at a local 
                                               
30 "Financial institution"  means any financial intermediary or other enterprise that is authorized to do 
business and regulated or supervised as a financial institution under the law of the Party in whose territory it is located. 
31 The following Articles/Sections of Chapters 10 and 11 have been incorporated into and made a part of 
Chapter 12: (a) Articles 10.6, 10.7, 10.10, 10.11, 10.13, and 11.11; (b) Section B of Chapter Ten solely for claims that a Party has breached Articles 10.6, 10.7, 10.11, or 10.13, as incorporated into Chapter 12; (c) Article 11.10 to the extent that cross-border trade in financial services is subject to obligations pursuant to Article 12.5. 
32 Articles 11.4 (Market access), 11.7 (Domestic regulation), and 11.8 (Transparency in developing and 
applying regulations). 
33 The Agreement specifies that for the purposes of Articles 10.2 and 10.3, "service suppliers" has the 
same meaning as "services and service suppliers" as used in Articles II and XVII of GATS. 
34 A national means: a person who is a citizen under the laws of Oman; and a "national of the United 
States" as defined in Title III of the Immigration and Nationality Act. An enterp rise of a Party means an 
enterprise constituted or organized under the law of a Pa rty, and for purposes of Chapter 10, a branch located 
in the territory of a Party and carry ing out business activities there. WT/REG259/1 
 
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  level of government35; and (b) the sectors, sub-sectors or activities in which the Parties may 
maintain existing, or adopt new or more restrictive measures subsequent to the Agreement's entry into force as set out in Annex II. In the case of financial services, the obligations of national and MFN treatment, market access for financial institutions, cross-border trade, and senior 
management and board of directors apply to all sectors except for: (a) existing non-conforming 
measures (as set out in Section A to Annex III), or  maintained at a local level of government; and 
(b) the sectors, sub-sectors or activities for which the Parties may maintain existing, or adopt new 
or more restrictive measures subsequent to the Agreement's entry into force (as set out in 
Section B to Annex III). 
4.6.  Chapters 11 and 12 are each accompanied by a Side Letter between the Parties; in the case 
of cross-border trade in services, the Side Letter dated 19 January 2006 deals with immigration 
and states that no provision in the Agreement shall be construed as imposing any obligation on the 
Parties regarding their immigration measures. In the case of financial services, the Side Letter, also dated 19 January 2006, deals with cross-border financial services suppliers (See 
paragraph 4.21.  ).  
4.2  Denial of benefits 4.7.  Under Article 10.11, a Party may deny the benefits of Chapter 10 to an investor of the other 
Party that is an enterprise of such other Party and to investments of that investors if persons of a 
non-Party own or control the enterprise, and the denying Party: (a) does not maintain diplomatic relations with the non-party; or (b) adopts or maintains measures with respect to the non-party or a person of the non-Party that prohibit transactions with the enterprise or that would be violated 
or circumvented if the benefits of the Chapte r were accorded to the enterprise or to its 
investments. A Party may also deny the benefits of the Chapter to an investor of the other Party that is an enterprise of such other Party and to investments of that investor if the enterprise has 
no substantial business activities in the territory of the other Party and persons of a non-Party, or 
of the denying Party, own or control the enterprise. 
4.8.  Under Article 11.11 a Party may deny the benefits of Chapter 11 to a service supplier of the 
other Party if the service supplier is an enterprise owned or controlled by persons of a non-Party, 
and the denying Party: (a) does not maintain diplomatic relations with the non-Party; or (b) adopts or maintains measures with respect to the non-Party or a person of the non-Party that prohibit transactions with the enterprise or that would be violated or circumvented if the benefits 
of the Chapter were accorded to the enterprise. A Party may also deny the benefits of the Chapter 
to a service supplier of the other Party if the serv ice supplier is an enterprise owned or controlled 
by persons of a non-Party or of the denying Party that has no substantial business activities in the 
territory of the other Party.  
4.3  General provisions on trade in serv ices, investments and financial services 
4.3.1  Cross-Border Trade in Services 
4.3.1.1  Market access 
4.9.  Article 11.4 provides that neither Party may adopt or maintain measures that (a) impose 
limitations on the number of service suppliers, the total value of service transactions or assets, the total number of service operations or the total quantity of services output, or the total number of 
natural persons that may be employed in a particular service sector; or (b) restrict or require 
specific types of legal entities or joint ventures through which a service supplier may supply a service. This provision, like those of national and MFN treatment and local presence, is subject to 
the Parties' reservations listed in Annexes I and II. 
4.3.1.2  National and MFN treatment 4.10.  According to Articles 11.2 and 11.3, each Party shall accord to services suppliers of the 
other Party treatment no less favourable than that accorded, in like circumstances, to its own 
                                               
35 As in the financial services Chapter (see below), the carve-out for existing non-conforming measures 
applies to local government measures; these measures are not, however, listed in the relevant Annexes. WT/REG259/1 
 
- 28 - 
 
  service suppliers and to services suppliers of a third-Party. With respect to a regional level of 
government, national treatment means that each Party shall accord treatment no less favourable than the most favourable treatment accorded, in like circumstances, by that regional level of government to service suppliers of the Party of which it forms a part.  
4.3.1.3  Local presence 
4.11.  Neither Party may require a service supplier of the other Party to establish or maintain a 
representative office or any form of enterprise, or to be resident, in its territory as a condition for 
the cross-border supply of a service (Article 11.5).  
4.3.2  Investments 4.3.2.1  National and MFN treatment 4.12.  Articles 10.3 and 10.4 provide respectively  for national and MFN treatment requiring each 
Party to accord to investors of the other Party and covered investments treatment no less 
favourable than that it accords in like circumstances to its own investors and their investments and to investors of any non-Party and their investments with respect to the establishment, acquisition, 
expansion, management, conduct, operation, and sale or other disposition of investments in its 
territory. With respect to a regional level of government, national treatment means that each Party shall accord treatment no less favourable than the treatment accorded, in like circumstances, by 
that regional level of government to natural persons resident in and enterprises constituted under 
the laws of other regional levels of government of the Party of which it forms a part and to their respective investments. 
4.13.  Article 10.13 (Special formalities and info rmation requirements) provides that Article 10.3 
shall not be construed to prevent a Party from adopting or maintaining a measure that prescribes 
special formalities in connection with covered investments provided that such formalities do not materially impair the protections afforded by a Party to investors of the other Party and covered 
investments pursuant to this Chapter. Notwithstanding Articles 10.3 and 10.4, a Party may require 
an investor of the other Party or its covered investment to provide information concerning that investment solely for informational or statistical purposes.  
4.3.2.2  Performance requirements 
4.14.  Article 10.8 sets out the performance requirements which are prohibited under the 
Agreement in connection with investment activities
36 of an investor of a Party or of a non-Party in 
its territory.37 Furthermore, the Article provides that neither Party may condition the receipt or 
continued receipt of an advantage in connection wi th investment activities with compliance with 
the performance requirements listed therein38 (Article 10.8.2). However, nothing in Article 10.8.2 
shall be construed to prevent a Party form conditioning the receipt or continued receipt of an 
advantage in connection with an investment in its territory on compliance with a requirement to 
locate production, supply a service, train or em ploy workers, construct or expand particular 
facilities, or carry out research and development,  in its territory. The Agreement provides that 
                                               
36 See footnote above. 
37 This includes imposing or enforcing in connection with an investment activity any of the following: 
(a) to export a given level or percentage of goods or services; (b) to achieve a given level or percentage of 
domestic content; (c) to purchase, use, or accord a preference to goods produced in its territory, or to 
purchase goods from persons in its territory; (d) to rela te in any way the volume or value of imports to the 
volume or value of exports or to the amount of foreig n exchange inflows associated with such investment; (e) 
to restrict sales of goods or services in its territory that  such investment produces or supplies by relating such 
sales in any way to the volume or value of its exports or foreign exchange earnings; (f) to transfer a particular technology, a production process, or other proprietary know ledge to a person in its territory; or (g) to supply 
exclusively from the territory of the Party the goods that such investment produces or the services that it supplies to a specific regional market or to the world market. 
38 These include: (a) to achieve a given level or percentage of domestic content; (b) to purchase, use, 
or accord a preference to goods produced in its territory , or to purchase goods from pe rsons in its territory; (c) 
to relate in any way the volume or value of imports to  the volume or value of exports or to the amount of 
foreign exchange inflows associated with such investment; or (d) to restrict sales of goods or services in its 
territory that such investment produces or supplies by relating such sales in any way to the volume or value of its exports or foreign exchange earnings. WT/REG259/1 
 
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  specific Article 10.8 prohibitions shall not be construed to prevent the Parties from adopting or 
maintaining measures including environmental measures, necessary to secure compliance with laws and regulations that are not inconsistent with the Agreement; necessary to protect human, animal, or plant life or health; or related to the conservation of living or non-living exhaustible 
natural resources, provided that such measures are not applied in an arbitrary or unjustifiable 
manner, and provided that such measures do not constitute a disguised restriction on international trade or investment. Some of the performance requirements listed in the Article do not apply to 
qualification requirements for goods or services with respect to export promotion and foreign aid 
programs; to government procurement; and to requirements imposed by an importing Party relating to the content of goods necessary to qualif y for preferential tariffs or preferential quotas. 
4.3.2.3  Senior management and board of directors 
4.15.  Neither Party may require that an enterprise of a Party that is a covered investment 
appoints to senior management positions natural persons of any particular nationality (Article 10.9). A Party may require that a majority of the board of directors or any committee 
thereof, of an enterprise of that Party that is a covered investment, be of a particular nationality, 
or resident in the territory of the Party, provided  that the requirement does not materially impair 
the ability of the investor to exercise control over its investment. 
4.3.3  Financial services 
4.3.3.1  National and MFN treatment 4.16.  Article 12.2 requires each Party to: (a) accord to investors of the other Party treatment no 
less favourable than that it accords to its own investors, in like circumstances, with respect to the 
establishment, acquisition, expansion, manage ment, conduct, operation, and sale or other 
disposition of financial institutions and investments in financial institutions in its territory; and (b) accord to financial institutions of the other Party and to investments of investors of the other party 
in financial institutions treatment no less favourable than that it accords to its own financial 
institutions, and to investments of its own investors in financial institutions, in like circumstances, with respect to the establishment, acquisition, expansion, management, conduct, operation, and 
sale, or other disposition of financial institutions and investments. For purposes of the national 
treatment obligations in Article 12.5.1 (Cross-border trade), each Party shall accord to cross-border financial service suppliers of the other Party treatment no less favourable than that it accords to its own financial service suppliers, in like circumstances, with respect to the supply of 
the relevant service (Article 12.2.3). 
4.17.  Article 12.3 (MFN) requires each Party to accord to: (a) investors of the other Party; (b) 
financial institutions of the other Party; (c) investments of investors of the other Party in financial 
institutions; and (d) cross-border financial service suppliers of the other Party, treatment no less 
favourable than that it accords in like circumstances to the investors, financial institutions, investments of investors, financial institutions, investments of investors in financial institutions, 
and cross-border financial service suppliers of a non-Party, in like circumstances. A Party may 
recognize prudential measures of a third-Party in the application of Chapter 12, through unilateral recognition, harmonization or other means, or as a result of an agreement or arrangement with the third-Party. In such a case, the other Party shall be informed and have the opportunity to 
accede to or negotiate a comparable agreem ent, provided certain circumstances exist
39 
(Articles 12.3.2-4). 
4.18.  Article 12.12 requires the Parties to ensure observance of national and MFN treatment 
obligations by self-regulatory organizations where a Party requires a financial institution or a 
cross-border financial service supplier of the other Party to be a member of, participate in, or have access to such self-regulatory organization in order to provide a financial service in or into its 
territory. Furthermore, under terms and conditions that accord national treatment, each Party 
agrees to grant financial institutions of the other Party established in its territory access to payment and clearing systems operated by public entities, and to official funding and refinancing 
facilities available in the normal course of ordinary business (Article 12.13). 
                                               
39 Article 12.3.4 applies only where the circumstances set out in Article 12.3.3 exist. WT/REG259/1 
 
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  4.3.3.2  Market access 
4.19.  Article 12.4 provides that neither Party may adopt or maintain, with respect to financial 
institutions of the other Party or investors of the other Party seeking to establish such institutions, measures that impose limitations on: the number of financial institutions; the total value of 
financial services transactions or assets; the total number of financial services operations or the 
total quantity of financial services output; the total number of natural persons that may be employed in a particular financial service sector or that a financial institution may employ and who 
are necessary for, and directly related to, the supply of a specific financial service; or that restrict 
or require specific types of legal entity or joint ventures through which a financial institution may supply a service.  
4.20.  According to Article 12.6, each Party shall permit a financial institution of the other Party to 
supply any new financial service
40 that the Party would permit its own financial institutions, in like 
circumstances, to supply without additional legisl ative action by the Party. A Party may determine 
the institutional and juridical form through which the new financial service may be supplied and 
may require authorization for the supply of the service; such authorization may only be refused for 
prudential reasons. 
4.3.3.3  Cross-border trade 
4.21.  According to Article 12.5.1 the Parties agree to permit, under terms and conditions that 
accord national treatment, cross-border financial service suppliers of the other Party to supply the 
services specified in Annex 12.5.1 (See paragraph 4.30.  ). Furthermore each Party agrees to permit persons located in its territory, and its nationals, to purchase financial services from 
cross-border financial services suppliers of the other Party located in the territory of the other 
Party; this obligation does not require a Party to permit such suppliers to do business or solicit in its territory. In a side letter to the Agreement, the Parties confirm that with respect to cross-
border trade in financial services, and without prej udice to other means of prudential regulation, a 
Party may require the registration or authorization of cross-border financial services suppliers of the other Party and of financial instruments. 
4.3.3.4  Senior management and boards of directors  
4.22.  Neither Party may require: (a) financial institutions of the other Party to engage individuals 
of any particular nationality as senior managerial or other essential personnel; and (b) that more than a minority of the board of directors of a financial institution of the other Party be composed of 
nationals of the Party, persons residing in the territory of the Party, or a combination thereof 
(Article 12.8).  
4.4  Liberalization commitments on cross-bo rder trade in services, investments and 
financial services 
4.4.1  Cross-border trade in services and investments 4.23.  Chapters 10 and 11 adopt a negative-list approach to the scheduling of liberalization 
commitments, such that the obligations of national and MFN treatment, local presence, and market 
access, in the case of trade in services; and national and MFN treatment, performance requirements, and senior management and boards of directors, in the case of investments, apply fully except for the non-conforming measures listed in Annexes I and II. Annex I lists any existing 
measures maintained at the central and regional levels of government, that do not conform with 
Articles 10.3 or 11.2 (National Treatment), 10.4 or 11.3 (Most-Favoured-Nation Treatment), 11.4 (Market Access), 11.5 (Local Presence), 10.8 (Performance Requirements), and 10.9 (Senior 
Management and Boards of Directors);
41 Annex II lists the sectors, sub-sectors or activities for 
                                               
40 A new financial service  is defined as a financial service not supp lied in the Party's territory that is 
supplied within the territory of the other Party, and incl udes any new form of delivery of a financial service or 
the sale of a financial product that is not sold in the Party's territory (Article 12.20). 
41 The measures listed in Annex I are subject to a "ratchet" clause (Artic le 10.12.1(b) and (c) and 
Article 11.6.1(b) and (c)) meaning th at if a Party unilaterally modifies any existing non-conforming measure 
with the effect of making it more liberal, such liberalization is bound and becomes its new level of commitment towards the other Party. WT/REG259/1 
 
- 31 - 
 
  which the Parties may maintain existing, or adopt new or more restrictive measures that do not 
conform with the obligations listed above.  
4.4.1.1  The United States 4.24.  Table 4.1 shows the United States' reservations for existing non-conforming measures at 
the central and regional levels of government (A nnex I). With respect to cross-border trade in 
services, the United States has taken a number of reservations on existing measures for 5 sectors mostly relating to national treatment and local pr esence and to a lesser extent to MFN treatment. 
Such measures cover, inter alia  business services, air transportation, transportation services, and 
professional services. In several cases the reservation relates to residency and nationality requirements; for example, only "citizens of the United States" operate aircraft in domestic air service (cabotage). The United States also has reserved the right to maintain all existing 
non-conforming measures adopted by all the states of the United States, the District of Columbia, 
and Puerto Rico; such measures are however not lis ted in the Annex. In the case of investments, 
reservations apply to 5 sectors mostly relating to national and MFN treatment and in some cases 
to obligations concerning senior management and boards of directors.  
Table 4.1 Non-conforming measures listed by the United States in Annex I  
Sector Reservation Mode Description 
All sectors NT/MFN I Foreign firms may not use small 
business registration forms to register public offe rings of securities, 
register a class of securities, or file annual reports. 
All sectors NT/MFN I The Overseas Private Investment 
Corporation insurance and loan 
guarantees are not available to 
certain aliens, foreign enterprises, or 
foreign-controlled domestic 
enterprises 
All sectors NT/MFN/LP CBTS All existing non-conforming measures 
at regional level NT/MFN/PR/SMBD I 
Atomic energy NT I License cannot be issued to foreign 
entities 
Business services - export 
conduct NT/LP CBTS Eligibility to apply for “certificate of 
review” with resp ect to export 
conduct 
Business services - export of 
controlled products NT/LP CBTS Eligibility to apply for a licence.  
Mining NT/MFN I Reciprocity requirement 
Air transportation NT/MFN/SMBD I Nationality/authorization and 
reciprocity requirement 
Air transportation NT/MFN/LP CBTS Authorization requirement 
NT/MFN/SMBD I Authorization requirement for foreign 
civil aircraft to conduct specialty air services 
Communications – 
Radiocommunications NT I Right to restrict ownership of radio 
licences 
Transportation services- 
Customs brokers NT/LP CBTS License/Nationality requirements 
Professional services- 
Practice before the Patent and 
Trademark Office NT/MFN/LP CBTS Nationality/ residency and reciprocity 
requirements 
Note: CBTS: Cross-border trade in services; I: Investment; LP: Local presence; MFN: Most-Favoured-
Nation treatment; NT: National Treatment; PR: Performance Requirements; SMBD: Senior Management and Boards of Directors. 
 Source: The Free Trade Agreement between the United States and Oman, Annex I.  
4.25.  In its Schedule to Annex II, the United States lists its reservations for areas where it may 
adopt or maintain non-conforming measures (Table 4.2). In the case of cross-border trade in services, reservations have been scheduled for 4 sectors, sub-sectors or activities. The 
United States reserves the right, for all sectors, to adopt or maintain any measure that is not 
otherwise inconsistent with its market access obligations under Article XVI of the GATS. In the WT/REG259/1 
 
- 32 - 
 
  maritime transportation sector, for which it has made no commitments under the GATS, the 
United States reserved the right to adopt any measure relating to the provision of maritime transport services and the operation of US-flagged vessels. This reservation does not however include vessel construction and repair, nor certain other activities such as landside aspects of port 
activities, subject to reciprocity. With respect to investments, reservations apply to 5 sectors, sub-
sectors or activities and they relate mostly to national and MFN treatment and in some cases to obligations concerning senior management and boards of directors and performance requirements.  
Table 4.2 Non-conforming measures listed by the United States in Annex II  
Sector Reservation Mode Description 
Communications MFN CBTS, I Differential treatment in relation to reciprocity measures or 
international agreements for ce rtain communication services. 
Communications 
– Cable 
Television NT/MFN/SMBD I Equivalent treatment to persons of countries that limit US 
ownership of a cable television system  
Social services NT/MFN/LP CBTS Social services 
NT/MFN/PR/S
MBD I 
Minority affairs NT/LP CBTS Measure accordin g rights or preferences to socially or 
economically disadvantaged minorities, including corporations organized under the laws of the State of Alaska in accordance with existing legislation NT/PR/SMBD I 
Transportation NT/MFN/LP CBTS Measures relating to maritime transportation 
NT/MFN/PR/S
MBD I 
All MA CBTS Any measures not inconsistent with market access obligations 
under the Uruguay Round Agreements.  
All MFN CBTS, I Any measures not inconsistent with Article XVI obligations 
under the Uruguay Round Agreements.  
Note: 
CBTS: Cross-border trade in services; I: Inve stment; LP: Local presence; MA: Market Access; 
MFN: Most-Favoured-Nation treatment; NT: National Treatment; PR: Performance Requirements; SMBD: Senior Management and Boards of Directors. 
 Source: The Free Trade Agreement between the United States and Oman, Annex II. 
 
4.4.1.2  Oman 
4.26.  Table 4.3 shows Oman's reservations for ex isting non-conforming measures at the central 
and regional levels (Annex I). Reservations on exis ting measures have been taken with respect to 
18 sectors, sub-sectors or activities all of which relate to national treatment; of these reservations, seven cover both cross-border trade in services and investments while the remaining relate only to 
investments. Such measures cover, inter alia  business, communication, distribution, tourism, 
recreational and transport services. In most cases the reservations relate to a nationality requirement restricting the supply of a service to Omani nationals and enterprises owned by 
Omani nationals; and to a limitation on the ownership by foreign nationals of enterprises 
established in Oman generally up to 70% of equity;
42 the latter constitutes a horizontal limitation 
on market access in Oman's GATS schedule in that  it applies to all scheduled sectors. Under the 
Agreement Oman has improved on its GATS commi tments by allowing the ownership by foreign 
nationals and enterprises owned by foreign nationals of real estate in designated tourist areas and 
by reducing the aforementioned limitation on co mmercial presence in the form of maximum equity 
ownership to a few selected services sectors, sub-sectors or activities. 
 
  
 
  
                                               
42 One exception to this limitation is retailing services where 100% ownership will be permitted after 
31.12.2010 in enterprises valued at greater than $1 million. WT/REG259/1 
 
- 33 - 
 
  Table 4.3 Non-conforming measures listed by Oman in Annex I  
Sector Reservation  Mode Description 
All sectors NT I Ownership of real estate by foreign nationals 
and enterprises limited to designated tourist areas 
Legal services NT I Foreign nationals may only own up to 70% of 
the equity in enterprises established in Oman 
that supplies legal services 
Real estate brokerage services NT CBTS, I Nationality requirement 
Employment placement services NT CBTS, I Nationality requirement 
Investigation and security services NT CBTS, I Right to restrict the supply of such services to 
only Omani nationals and enterprises 
Printing and publishing services NT I Nationality requirement 
Retail photographic services NT I Right to  restrict the supply of  such services to 
only Omani nationals and enterprises 
Radio and television 
transmission services NT I Nationality requirement 
Retailing services NT I Foreign na tionals may own equity up to: (a) 
70% in enterprises established in Oman that is valued at less than $5 million ; (b) 100% in enterprises valued at greater than $5 million; and (c) after 31.12.2010, 100% in enterprises valued at greater than $1 million 
Tourist guide services NT CBTS, I Nationality requirement 
News agency services NT I Foreign nationals may only own up to 70% of 
the equity in enterprises established in Oman that supplies such services 
Internal waterway transportation 
services NT CBTS, I Nationality requirement 
Maritime freight transportation NT I Fore ign nationals may only own up to 70% of 
the equity in enterprises established in Oman that supplies such services 
Taxi transportation services  NT CBTS, I Nationality requirement 
Air transportation services NT I Authorization requirement 
Speciality air services NT CBTS, I Authorization requirement 
Various air services* NT I Foreign nationals may only own up to 70% of 
the equity in enterprises established in Oman that supplies such services 
Restaurant services NT I Foreign nationals may own up to 70% of the 
equity in enterprises established in Oman that 
supplies such services 
Note: CBTS: Cross-border trade in services; I: Investment; NT: National Treatment.  * Aircraft Maintenance and Repair, Ai r Transportation Selling and Marketin g, and Computer Air Transportation 
Reservation Systems Services.  Source: The Free Trade Agreement between the United States and Oman, Annex I. 
 
4.27.  In its Schedule to Annex II, Oman lists its reservations in areas where it may adopt or 
maintain non-conforming measures (Table 4.4) . Reservations have been scheduled for four 
sectors, sub-sectors or activities all covering cross-border trade in services and, except for 
telecommunication services, investments. The rese rvation on telecommunication services applies 
to local presence (see paragraph 4.39.  ) whereas the others apply to national and MFN treatment. 
 
 WT/REG259/1 
 
- 34 - 
 
  Table 4.4 Non-conforming measures listed by Oman in Annex II  
Sector Reservation  Mode Description 
All MFN CBTS, I Differential treatment under any bilateral 
or multilateral agreement prior to the entry into force of the Agreement, and after its entry into force for aviation, fisheries or maritime matters 
Electric and electronic household 
appliance maintenance and repair, 
barbering, tailoring, laundry, ladies 
hair dressing, and instructional 
driving services NT CBTS, I Any measure regarding natural persons 
or enterprises that supply such services 
Typing, translation, small auto repair, calligraphy, photocopying, and upholstery services NT CBTS, I Any measure regarding natural persons 
or enterprises that supply such services 
Telecommunication services LP CBTS Any measure requiring 
telecommunication suppliers to establish 
or maintain an office in Oman in order to 
supply such services 
Note: CBTS: Cross-border trade in services; I: Investme nt; LP: Local presence; MFN: Most-Favoured-Nation 
treatment; NT: National Treatment. 
 Source: The Free Trade Agreement between the United States and Oman, Annex II.  
4.28.  Among the non-conforming measures listed in Annex II, both Parties reserve the right, with 
respect to all sectors, to adopt or maintain any measure (inconsistent with MFN treatment) that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of  entry into force of the Agreement; and under any 
bilateral or multilateral international agreement in force or signed after the date of entry into force 
of the Agreement involving aviation, fisheries, or maritime matters.  
4.29.  In Annex 11.12 Oman has committed not to restrict the ability of a covered investment to 
employ United States' nationals as managers and speciality personnel.
43 However, it reserves the 
right to require that up to 80% of the employees44 of a covered investment be Omani nationals 
although non-Omani national may be employed in the event that the covered investment is unable 
to locate a qualified Omani national for the relevant position. Nothing in this Annex shall be 
construed to limit Oman’s obligations under Article 12.8 (Senior Management and Boards of Directors). 
4.4.2  Financial services 
4.30.  Chapter 12 governs the Parties' scheduling of liberalization commitments in financial 
services under the Agreement. As a general rule Chapter 12 adopts a "negative-list approach" to the scheduling of liberalization commitments in financial services except for Article 12.5.1 relating 
to cross-border trade in financial services. In accordance with this Article the Parties have agreed 
to permit, under terms and conditions that accord national treatment, cross-border financial service suppliers of the other Party to supply the services specified in Annex 12.5.1 (i.e. a "positive 
list approach"). This Annex lists the following services sectors: with respect to mode 1, 
(a) insurance of risk relating to maritime shipping and commercial aviation and space launching and freight (including satellites) and risk relating to goods in international transit; and (b) reinsurance and retrocession services auxiliary to insurance
45 and insurance intermediation, such 
as brokerages and agencies; with respect to Mode 4 Article 12.5.1 applies to cross-border trade in 
financial services with respect to insurance services. In banking and all other financial services (excluding insurance), Article 12.5.1 applies with re spect to the provision and transfer or financial 
information and financial data processing and related software, and advisory and other auxiliary 
services (not excluding intermediation).  
                                               
43 Speciality personnel means natural persons who ar e employed to use their expert or proprietary 
knowledge of a covered investment's service, equipmen t, techniques, or manageme nt and may include, but 
are not limited to, members of licensed professions. 
44 "Employees" does not include managers, members of the board of directors, or specialty personnel. 
45 As referred to in Article 12.20(d) such as: consultancy, actuarial, risk assessment, and claim 
settlement services. WT/REG259/1 
 
- 35 - 
 
  4.31.  In addition, the Parties have taken specific commitments in the sectors listed in 
Annex 12.15. These relate to: the supply of investment advice and portfolio management services by a financial institution (other than a trust company) organized outside the territory of a Party to a collective investment scheme located in the Party's territory;
46 expedited availability of new 
insurance products that are subject to approval pr ocedures by the Oman authorities; branching for 
a financial institution of the United States in any one location in Oman (which shall not be conditioned on establishment of branches elsewh ere in Oman); and the right of Oman to require 
that up to 80% of the employees of a financia l institution of the United States be Omani 
nationals.
47 
4.32.  Except for the aforementioned financial serv ices, all other sectors, sub-sectors or activities 
are assumed to be liberalized under Chapter 12, unless as specified in Annex III. Section A to 
Annex III lists any existing measures maintained at the central or regional levels of government 
that do not conform with the Articles 12.2 (national treatment), 12.3 (MFN treatment), 12.4 (market access for financial institutions), 12.5 (cross-border trade) and 12.8 (senior 
management and boards of directors).
48 Section B to Annex III lists the sectors, sub-sectors or 
activities for which the Parties may maintain existing, or adopt new non-conforming measures. 
4.4.2.1  United States 
4.33.  Under Annex III, the United States specif ies that national treatment commitments in the 
subsectors scheduled in the Annex are subject to criteria such as "home state" in banking and 
"state of domicile" in insurance (Table 4.5). With respect to market access for financial institutions in banking and other financial services (not insurance), Article 12.9.1(c) (amendment of 
non-conforming measures) shall apply only to the United States' non-conforming measures on 
market access limitations (Article 12.4(a)) and not on specific types of legal entities or joint ventures (Article 12.4(b)). With respect to market access for financial institutions in the insurance 
sector, the United States reserves the right to adopt or maintain any measure that is not 
inconsistent with its obligations under Article XVI of the GATS.  
Table 4.5 Non-conforming measures listed by the United States in Annex III
 
Sub-Sector Reservation  Mode Description 
Section A 
Banking and other financial services SMBD CBTS Nationality requirement 
Banking and other financial services NT/MA CBTS  Nationality requiremen t for directors of a 
national bank and eligibility for ownership of "Edge" 
Banking and other financial services NT/MA CBTS Credit Unions, savings banks or savings 
associations may not be established 
through branches of corporations 
organized under a foreign country's law 
Banking and other financial services NT/MA CBTS Requirement to establish an insured 
banking subsidiary for foreign banks to accept or maintain domestic retail 
deposits of less than US$100,000 
Banking and other Financial Services 
(excluding Insurance) NT CBTS Registration of foreign bank as 
"investment adviser" to engage in 
securities advisory and investment 
management services 
Banking and other Financial Services 
(excluding Insurance) NT CBTS Exclusion of foreign banks from 
membership in th e Federal Reserve 
System 
Banking and other Financial Services 
(excluding Insurance) MA CBTS No commitment with respect to Article 
12.4(b) for the expansion, through 
establishment or acqu isition of a branch, 
of a foreign bank into another U.S. state  
                                               
46 This commitment is subject to Article 12.1 (Scope and coverage) and to Article 12.5.3 (registration of 
cross-border financial service suppliers).  
47 Paragraph 7 clarifies that nothing in Annex 12.15 sh all be construed to limit Oman's obligations under 
Article 12.8 (Senior Management  and Boards of Directors). 
48 The measures listed in Annex I are subject to a "r atchet" clause (Article 12. 9.1(b) and (c)) meaning 
that if a Party unilaterally modifies any existing non-conforming measure wi th the effect of making it more 
liberal, such liberalization is bound and becomes its new level of commitment towards the other Party. WT/REG259/1 
 
- 36 - 
 
  Sub-Sector Reservation  Mode Description 
Banking and other Financial Services 
(excluding Insurance) MA CBTS Interstate expansion by a foreign bank 
through establishment of branches by merger with a bank located outside the “home state” shall be accorded on a national treatment basis 
Banking and other Financial Services 
(excluding Insurance) NT/MA CBTS Establishment of a federal branch or 
agency by a foreign bank may be 
prohibited in some U.S. states 
Banking and other Financial Services (excluding Insurance) MFN/MA CBTS Reciprocity test to act as sole trustee of 
an indenture for a bond offering 
Banking and other Financial Services 
(excluding Insurance) MFN/MA CBTS Reciprocity requirement for designation 
as primary dealer in  U.S. government 
debt securities 
Banking and other Financial Services 
(excluding Insurance) MFN CBTS A broker-dealer registered under U.S. law 
that has its principal place of business in 
Canada may maintain its required reserves in a bank in Canada subject to supervision by Canada. 
Banking and other Financial Services 
(excluding Insurance) NT CBTS Advantages to specified Government-
Sponsored Enterprises 
Banking and other Financial Services (excluding Insurance) NT/MFN/ 
MA/SMBD CBTS All existing non-conforming measures of 
all states, the District of Columbia and Puerto Rico 
Insurance NT/CBT CBTS Branches of foreign insurance companies 
are not permitted to provide surety 
bonds for U.S. Gove rnment contracts 
Insurance NT/CBT CBTS Demonstration of first offer in the United 
States market for risks connected to maritime vessels 
Insurance NT/MFN/ 
MA/SMBD CBTS All existing non-conforming measures of 
all states, the District of Columbia and 
Puerto Rico 
Section B 
Insurance MA CBTS Measures not conformi ng with Article XVI 
of GATS 
Note: 
CBTS: Cross-border trade in services; MA: Market Access; MFN: Most-Favoured-Nation treatment; 
NT: National Treatment; SMBD: Senior Management Board of Directors; CBT:  Cross-Border Trade. 
 Source: The Free Trade Agreement between the United States and Oman, Annex III.  
4.34.  Under Annex III, Oman retains very few reserv ations (Table 4.6). One of these relates to its 
right to adopt or maintain a reciprocity test with respect to a United States banking subsidiary in 
Oman that mirrors any citizenship requirement im posed by the U.S. chartering authority on the 
board of directors of a foreign-owned bank incorporated in its jurisdiction. Oman specifies in the head notes to Annex III that with respect to market access for financial institutions, juridical 
persons supplying banking or other financial services (excluding insurance) and constituted under 
the laws of Oman are subject to non-discriminatory limitations on juridical form. 
Table 4.6 Non-conforming measures listed by Oman in Annex III  
Sub-Sector Reservation Mode Description 
Section A 
Banking and other financial 
services  NT CBTS Foreign nationals may acquire up to 70% of the 
equity of any licensed bank that is locally 
incorporated. This limitation does not apply to 
wholly foreign-owned subsidiaries and branches 
of foreign banks 
Banking and other financial 
services  NT CBTS Oman may grant to the Oman Housing Bank and 
the Oman Development Bank certain 
advantages 
Section B 
Banking and other financial 
services  MFN CBTS Right to adopt or maintain a reciprocity test with 
respect to a U.S. banking subsidiary in Oman  
Note: CBTS: Cross-border trade in services; NT: National Treatment; MA: Market Access.  
Source: The Free Trade Agreement between the United States and Oman, Annex III. WT/REG259/1 
 
- 37 - 
 
  4.5  Commitments in selected services sectors  
4.5.1  Communication services 4.5.1.1  Express delivery services  4.35.  Article 11.12 sets out additional specific commitments with respect to express delivery 
services.
49 Express delivery services are described as the collection, transport and delivery of 
documents, printed matter, parcels, goods or other items on an expedited basis, while tracking and maintaining control of these items throughout the supply of the service. They do not include 
air transport services, services supplied in the ex ercise of governmental authority, and maritime 
transport services. For the United States, Article 11.12 clarifies that express delivery services do not include delivery of letters subject to the Pr ivate Express Statutes but do include delivery of 
extremely urgent letters covered by exceptions to or suspensions to those Statutes.  
4.36.  Under the Agreement (Article 11.12), the Part ies endeavour to maintain at least the level of 
market access for express delivery services exis ting at the time the Agreement was signed. If a 
Party considers that the other Party is not maintaining this level of access it may request 
consultations. 
4.37.  In the GATS, both Parties have inscribed courier services in their GATS Schedule
50 with no 
limitations on national treatment or market access in Modes 1, 2, and 3.51 There is no commitment 
under Mode 4.  
4.38.  Where a Party’s monopoly supplier of postal services competes, either directly or through an 
affiliated company, in the supply of express delivery services outside the scope of its monopoly rights, that Party shall ensure that the supplier does not abuse its monopoly position to act in its 
territory in a manner inconsistent with the Party’s obligations under Articles 10.3 or 10.4 of 
Chapter 10 and Articles 11.2, 11.3, or 11.4 of Chapter 11. The Parties also reaffirm their obligations under Article VIII of the GATS and conf irm their intention to prevent the direction of 
revenues derived from the supply of monopoly postal  services to confer an advantage to their own 
or any other competitive supplier of express delivery services. 
4.5.1.2  Telecommunications services 
4.39.  In comparison with their GATS commitments , both Parties will not apply sector specific 
market access restrictions to each other's suppliers. Nevertheless, market access-related non-conforming measures that are applicable to all sectors would also apply to telecommunication services. However, in the case of telecommunications, the only market access limitation that the 
United States has scheduled in its GATS Schedule pertains to ownership of a radio licence. This 
measure is covered by Chapter 10 of the Agreement (investment), and is scheduled by the United States as an Annex I national treatment reservation. Consequently, for market access as it is 
defined in the Agreement (Article 11.4), the Annex II reservation applicable to "all sectors" would 
not affect telecommunications services. Moreover, in  Annex II, the United States reserves the right 
to adopt or maintain any measure that accords differential treatment to persons of other countries 
due to the application of reciprocity measures or through international agreements involving 
sharing of the radio spectrum, guaranteeing market  access, or national treatment with respect to 
the one-way satellite transmission of direct-to-ho me (DTH) and direct broadcasting satellite (DBS) 
television services and digital audio services. Oman has liberalized telecommunications services 
under the Agreement; however, in Annex II it rese rves the right to adopt or maintain any measure 
that requires telecommunications suppliers to establish or maintain an office in Oman in order to originate or re-originate calls within the territory of Oman, or to supply transit services on a 
facilities basis through Oman.  
4.40.  The Agreement contains a separate Chapter on telecommunications (Chapter 13) which 
builds on the Reference Paper attached to the Parties' GATS Schedule and applies to measures 
relating to: access to and use of public telecommunications services; obligations of suppliers of 
                                               
49 Neither Party has scheduled reservations in Annexes I and II with respect to this sector. 
50 Land-based courier services in the case of the United States' schedule. 
51 Oman's horizontal limitat ion on commercial presence in the form of maximum equity ownership has 
elapsed for this sector in January 2003. WT/REG259/1 
 
- 38 - 
 
  public telecommunications services; public telecommunications networks or services; and the 
supply of value-added services. The Chapter does not apply to measures relating to broadcast or cable distribution of radio or television programming except to ensure that enterprises operating broadcast stations and cable systems have continued access to and use of public 
telecommunications services. Chapter 13 does not require Parties to provide telecommunications 
networks or services not offered to the public generally; or require Parties to compel any enterprise exclusively engaged in the broadcast or cable distribution of radio or television 
programming to make available its broadcast or cable facilities as a public telecommunications 
network (Article 13.1).  
4.41.  Article 13.2 provides that each Party shall ensure that service suppliers of the other Party: 
(i) have access to and use of any public telecommunications service, including leased circuits, 
offered in its territory or across its borders, on reasonable and non-discriminatory terms and 
conditions; and (ii) may use public telecommunications services for the movement of information in its territory or across its borders and for access to information contained in databases or 
otherwise stored in machine-readable form in the territory of either Party. However, the Parties 
may adopt any measures necessary to ensure the security and confidentiality of messages, provided that such measures are not applied in a manner that would constitute a means of 
arbitrary or unjustifiable discrimination or disguised restriction on trade in services (Article 13.2).  
4.42.  Each Party shall ensure that suppliers of public telecommunications services in its territory: 
(i) provide interconnection with suppliers of public telecommunications services of the other Party at "reasonable rates"; (ii) provide number portability to the extent technically feasible, and on 
reasonable terms and conditions; and (iii) provide dialling parity to suppliers of the same public 
telecommunications services of the other Party. Moreover, the Parties shall ensure that suppliers of public telecommunications services do not impose unreasonable or discriminatory conditions or 
limitations on the resale of those services (Article 13.3).
52  
4.43.  Interconnection commitments in the Agreement mirror and build on those undertaken by 
the Parties in the GATS. Each Party shall also ensure that any supplier that it authorizes to operate 
a submarine cable system in its territory as a public telecommunications service accords 
"reasonable and non-discriminatory" treatment with respect to access to that system (including landing facilities), to suppliers of public telecommunications services of the other Party (Article 13.5).  
4.44.  Article 13.4 sets out the provisions relating  to major suppliers of public telecommunications 
services. It provides that each Party shall ensure that a major supplier
53 in its territory accords 
suppliers of public telecommunications services of the other Party treatment no less favourable 
than such major supplier accords to its subsidiaries, its affiliates, or non-affiliated service suppliers 
regarding the availability, provisioning, rates, or quality of like public telecommunications services; and the availability of technical interfaces necessary for interconnection. Both Parties must ensure 
that major suppliers provide interconnection for the facilities and equipment of suppliers of public 
telecommunications services of the other Party at any technically feasible point in the major suppliers' network; under non-discriminatory terms, conditions, and rates; of a quality no less favourable than provided by the supplier for its own like services, for like services of non-affiliated 
suppliers, of for its subsidiaries or other affiliates; in a timely fashion, and on terms, conditions, 
and cost-orientated rates that are transparent, reasonable, and sufficiently unbundled; and, on 
request, at points in addition to the network termination points offered to the majority of users.
54 
                                               
52 Annex 13-A provides that with respect to suppliers of commercial mobile services Article 13.3.2 
(Resale) in the case of Oman, and pa ragraphs 2, 3 (Number portability) and 4 (Dialling parity) of Article 13.3 
in the case of the United States, do not apply. Furtherm ore, paragraphs 2 and 3 of Article 13.3 do not apply to 
Oman with respect to telecommunications services supplied in rural areas unless the telecommunications regulatory body orders otherwise. With respect to the United States a state regulatory authority of the 
United States may exempt a rural local exchange carrier, as defined under domestic law, from the obligations of paragraphs 2 through 4 of Article 13.3. 
53 Major suppliers means a supplier of public telecommunications services that has the ability to 
materially affect the terms of participation (having regard  to price and supply) in the relevant market for public 
telecommunications services as a result of: (a) control over essential facilities, or (b) use of its position in the market (Article 13.17). 
54 Annex 13-B provides that with re spect to suppliers of commercial mobile services Article 13.4.3 
(Resale) in the case of Oman, and Article 13.4 in the ca se of the United States, do not apply. Furthermore, 
paragraphs 3 (Resale), 4 (Unbundling of network elemen ts), 6 (Provisioning and pricing of leased circuits WT/REG259/1 
 
- 39 - 
 
  The Agreement also contains "competitive safegu ards" like those in the Parties' GATS Schedules 
that require each Party to maintain appropriate measures to prevent major suppliers in its territory from resorting to anti-competitive practices. 
4.45.  With respect to value-added services neithe r Party may require an enterprise in its territory 
that it classifies as a supplier of value-added services and that supplies those services over 
facilities that it does not own to: supply those services to the public generally; cost-justify its rates of those services, or file tariffs for those services; connect its networks with any particular 
customer for the supply of those services; or conform with any particular standard or technical 
regulation for connecting to any other network, other than a public telecommunications network. Nevertheless, a Party may take such actions to remedy any actions by a value-added service supplier that it deems to be anti-competitive under  its law or regulations, or to otherwise promote 
competition or safeguard the interests of consumers.  
4.46.  Each Party may forbear, to the extent provided  for in its law, from ap plying a regulation to a 
service that the Party classifies as a public telecommunications service, if its telecommunications 
regulatory body determines enforcement of th e regulation to be unnecessary to prevent 
unreasonable or discriminatory practices or for the protection of consumers, or that forbearance is consistent with the public interest (Article 13.15). 
4.47.  Chapter 13 contains obligations related to universal services (Article 13.8) and provisions on 
allocation and use of scarce telecommunications resources (Article 13.10) that are similar to those in the WTO Reference Paper. The Chapter also contains obligations on transparency (Article 13.13) that extend beyond those contained in the Reference Paper, including a requirement that Parties 
provide interested persons advance notice of, and opportunity to comment on, any rulemaking 
that its telecommunications regulatory body proposes. 
4.48.  A specific mechanism for the settlement of disputes relating to telecommunications matters 
envisages recourse to the Parties' Telecommunication Regulatory Bodies by enterprises and 
suppliers of public telecommunications services, which includes provisions for reconsideration and juridical review (Article 13.12).  
4.5.1.3  Audiovisual 
4.49.  Under the Agreement, the United States applies limitations in Annex I on national treatment 
to mode 3 in the radio communications sub-sector where it reserves the right to restrict ownership of radio licenses in accordance with specified statutory and regulatory provisions.
55 In Annex II, 
the United States reserves the right to adopt or maintain any measure that accords differential 
treatment to persons of other countries due to the application of reciprocity or through international agreements involving sharing of the radio spectrum, guaranteeing market access, or 
national treatment with respect to the one-way satellite transmission of direct-to-home (DTH) and 
direct broadcasting satellite (DBS) television services and digital audio services. With respect to cable television, the United States reserves the right to adopt or maintain any measure that 
accords equivalent treatment to persons of any country that limits ownership by persons of the 
United States in an enterprise engaged in the operation of a cable television system in that country. As for Oman, its GATS commitments are limited to motion picture and video tape distribution services and cinema ownership and op eration, where it lists foreign equity limits. 
Under the Agreement, Oman has listed one reserv ation, whereby the supply of free-to-air radio 
and television transmission services in its territory is limited to Omani nationals and enterprises owned by Omani nationals.  
                                                                                                                                               
services), 7 (Co-location), and 8 (Access to poles, duct s, conduits, and rights-of-way) of Article 13.4 do not 
apply to Oman with respect to telecommunications services supplied in rural areas unless the telecommunications regulatory body orders otherwise. With respect to the United States, Article 13.4 does not apply with respect to a rural telephone company, as defi ned under domestic law; in addition, a state regulatory 
authority may exempt a rural local exchange carrier, as defined under domestic law from the obligations 
contained in Article 13.4. 
55 These are contained in the Foreign Participation Order 12 FCC Rcd 23891 (1997). WT/REG259/1 
 
- 40 - 
 
  4.5.2  Transportation services 
4.50.  The United States' GATS commitments on transport services include a number of air, rail 
and road transport services sub-sectors and services  auxiliary to all modes of transport. Maritime 
transport services are not included in its GATS schedule. Under the Agreement, in Annex II, the 
United States reserves the right to adopt or maintain any measure relating to the provision of 
maritime transportation services and the operation of United States-flagged vessels, with a few specific exceptions.
56 With respect to air transportation, in Annex I the United States has 
scheduled limitations on national and MFN treatment, local presence and senior management and 
boards of directors; these provide that: (a) only ai r carriers that are “citizens of the United States” 
may operate aircraft in domestic air services (cabotage) and may provide international scheduled and non-scheduled air service as United States air carriers; (b) authorization from the Department 
of Transportation is required for the provision of specialty air services in the territory of the United 
States with respect to cross-border services
57 and authorization from the Department of 
Transportation is required for the provision of specialty air services in the territory of the United 
States by “foreign civil aircraft” with respect to mode 3. Other limitations apply to national 
treatment and local presence with respect to transportation services, specifically, only a U.S. citizen may obtain a custom broker's licence. 
4.51.  Oman's GATS commitments on transp ort services include passenger and freight 
transportation with respect to maritime transport services and aircraft maintenance and repair, air transportation selling and marketing, and computer  air transportation reservation systems services 
with respect to air transport services; these sub- sectors are subject to Oman's GATS horizontal 
limitation on market access to mode 3 in the form  of a company incorporated in Oman with foreign 
equity limited to 70%. Under the Agreement Oman has removed this limitation for maritime passenger transportation but retained it for its other GATS commitments in maritime and air 
transportation. In Annex I Oman applies limitations on national treatment to: modes 1 and 3 for 
(a) internal waterway and taxi transportation servic es sub-sectors the supply of which is limited to 
Omani nationals and enterprises owned by Omani national and (b) speciality air services 
sub-sector which may be supplied by aircraft that  are owned by foreign nationals or enterprises 
only if specifically authorized to do so by the competent Omani authorities; and to mode 3 with respect to air transportation services which bans aircraft that are owned by foreign nationals or enterprises from transporting passengers, goods, or  mail between two points within the territory of 
Oman unless specifically authorized to do so by the competent Omani authorities. Oman has listed 
no reservations in Annex II. 
4.6  Regulatory provisions on trade in se rvices, investments and financial services 
4.6.1  Domestic regulation 
4.52.  Article 11.7 calls on the Parties to endeavour to ensure that measures relating to 
qualification requirements and procedures, technical standards, and licensing requirements are: 
(a) based on objective and transparent criteria , (b) not more burdensome than necessary to 
ensure the quality of the service; and (c) in the case of licensing procedures, not in themselves a 
restriction on the supply of the service. Where a Party requires authorization for the supply of a service, the Party’s competent authorities shall, within a reasonable period of time, inform the 
applicant of the decision concerning its application; this obligation does not apply to authorization 
requirements that are within the scope of the Pa rties' Schedules to Annex II. If the results of 
negotiations on Article VI of the GATS enter into  effect for both Parties, the Parties agree to 
consult and coordinate to amend Article 11.7 of the Agreement as appropriate. The Chapter also 
contains a provision on transparency in the development and application of regulations, including those establishing or applying licensing authorization or criteria (Article 11.8).  
4.6.2  Recognition 
4.53.  Pursuant to Article 11.9, either Party may recognize the education or experience obtained, 
requirements met, or licenses or certifications granted in a particular country, for purposes of 
                                               
56 The following activities are not included in these reservations: (a) vessel construction and repair and 
(b), subject to reciprocity, landside aspects of port activities. 
57 A person of Oman will be able to obtain such an  authorization given Oman's  acceptance of the U.S. 
definition of specialty air se rvices in Chapter Eleven (Cro ss-Border Trade in Services). WT/REG259/1 
 
- 41 - 
 
  fulfilment, in whole or in part, of its standards and criteria for authorization, licensing, or 
certification of services suppliers. Such recognition, which may be achieved through harmonization or otherwise, may be based upon an agreement or arrangement with the country concerned or may be accorded autonomously. Neither Party ma y accord recognition in a manner that would 
constitute a means of discrimination between countries in the application of its standards or 
criteria for authorizing, licensing or certification of services suppliers or constitute a disguised restriction on trade in services. Where a Party recognizes autonomously or through an agreement 
or arrangement, the education or experience obtained, or licenses of certifications granted in the 
territory of a non-party, it shall not be required  by the Agreement to accord such recognition to 
the other Party. However, it shall afford adequate opportunity for the other Party, if the other Party is interested, to negotiate its accession to this agreement or arrangement or to negotiate a 
comparable one with it; where it grants recognition autonomously, it shall afford adequate 
opportunity to the other Party to demonstrate that education, experiences or licenses or certifications granted in that other Party should be similarly recognized.  
4.54.  Annex 11-9 applies to measures adopted or maintained by a Party relating to the licensing 
or certification of professional service suppliers. The Parties agree to encourage the relevant bodies in their respective territories to develop mutually acceptable standards and criteria for 
licensing and certification of professional service suppliers and to provide recommendations on 
mutual recognition to the Joint Committee. The Joint Committee will review the recommendation within a reasonable period of time to ensure its consistency with the Agreement. Following the review, the Parties' respective authorities will endeavour to implement the recommendation within 
a reasonable period of time. In addition, where the Parties agree, each Party will encourage its 
relevant bodies to develop appropriate procedures for the temporary licensing of professional services suppliers from the other Party. The Joint Committee will review the recommendation 
within a reasonable period of time to determine its consistency with the Agreement. Following the 
review, the Parties agree to encourage their respective authorities, where appropriate, to implement the recommendation within a mutually agreed time. In addition, where the Parties 
agree, each Party will encourage its relevant bodies to develop appropriate procedures for the 
temporary licensing of professional services suppliers of the other Party. The Joint Committee must review the implementation of Annex 11-9 at least once every three years. 
4.6.3  Transfers and payments 
4.55.  Under Article 11.10, each Party shall permit all transfers and payments relating to the 
cross-border supply of services to be made freely and without delay into and out of its territory, in 
a freely usable currency, and at a market rate of exchange. The same obligation applies in the 
case of transfers relating to a covered investme nt (Article 10.7). A Party may, however, deny a 
transfer or payment through equitable, non-discriminatory, and good faith application of its laws relating to: (i) bankruptcy, insolvency, or the protection of the rights of creditors; (ii) issuing, 
trading, or dealing in securities, futures, options, or derivatives; (iii) financial reporting or record 
keeping of transfers when necessary to assist law enforcement or financial regulatory authorities; (iv) criminal or penal offences; or (v) ensuring compliance with orders or judgments in judicial or administrative proceedings.  
4.56.  In the case of financial services, Articl e 12.10.3 states that notwithstanding Articles 10.7 
(Transfers) and 11.10 (Transfers and Payments), as incorporated into Chapter 12, a Party may 
prevent or limit transfers by a financial institution or cross-border financial service supplier to, or 
for the benefit of, an affiliate of or person rela ted to such institution or supplier, through the 
equitable, non-discriminatory, and good faith application of measures relating to the maintenance of the safety, soundness, integrity, or financial responsibility of financial institutions or cross-
border financial service suppliers. Furthermore, under terms and conditions that accord national 
treatment, each Party shall grant financial institutions of the other Party established in its territory access to payment and clearing systems operated by  public entities, and to official funding and 
refinancing facilities available in the normal course of ordinary business. This obligation is not 
intended to confer access to the Party’s lender of last resort facilities (Article 11.13). 
4.6.4  Other 4.57.  Chapter 10 contains several provisions relating to the treatment of investments and 
investors. Under Article 10.5 each Party shall accord to covered investments treatment in 
accordance with customary international law, including fair and equitable treatment and full WT/REG259/1 
 
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  protection and security.58 Article 10.6 prohibits the expropriation or nationalization of covered 
investments except in certain specific circumstances and subject to prompt, adequate and effective compensation; this Article does not apply to the issuance of compulsory licenses granted in relation to intellectual property rights in accordance with the TRIPS Agreement or to the 
revocation, limitation, or creation of intellectual pr operty rights to the extent that such actions are 
consistent with Chapter 15 (Intellectual Property Rights).
59 Article 10.10 provides that nothing in 
Chapter 10 shall be construed to prevent Parties from adopting, maintain, or enforcing any 
measure otherwise consistent with Chapter 10 that they consider appropriate to ensure that 
investment activity in their territories is undertaken in a manner sensitive to environmental concerns. Section B to Chapter 10 provides for an investor-state dispute settlement mechanism. 
4.58.  Article 12.11 in Chapter 12 sets out the transparency provisions that apply to financial 
services under which the Parties commit to promote regulatory transparency in financial services 
and ensure that all measures of general applicat ion to which Chapter 12 applies are administered 
in a reasonable, objective and impartial manner; more specifically, each Party shall, to the extent 
practicable, publish in advance any proposed regulations of general application relating to the 
subject matter of the Chapter and provide intere sted persons and the other Party a reasonable 
opportunity to comment.
60 With respect to the supply of financial services in the territory of a 
Party by a covered investment, Article 12.10 (Exceptions) provides that a Party may adopt or 
maintain measures for prudential reasons61 including for the protection of investors, depositors, 
policy holders, or persons to whom a fiduciary duty is owed by a financial institution or cross-border financial service supplier, or to ensure the integrity and stability of the financial 
system. Article 12.16 establishes a Financial Services Committee which will meet annually or as 
otherwise agreed. The Committee is tasked with th e supervision of the implementation and further 
elaboration of Chapter 12; consideration of any issues regarding financial services referred to it by 
a Party; and participation in dispute settlement procedures in accordance with Article 12.19. 
Articles 12.17, 12.18 and 12.19 provide respectively for consultations, dispute settlement, and the 
settlement of investment disputes in financial services. 
5  GENERAL PROVISIONS OF THE AGREEMENT AFFECTING GOODS AND SERVICES 
5.1  General and security exceptions 5.1.  Exceptions to the Agreement's provisions are laid down in Chapter 21. Article XX of 
GATT 1994 is incorporated into and made part of the Agreement, mutatis mutandis , with regard to 
provisions contained in Chapters 2-7, while Ar ticle XIV of the GATS applies with regard to 
Chapters 11, 13 and 14, including environmental me asures necessary to protect human, animal or 
plant life or health (Article 21.1). Nothing in the Agreement shall be construed to require a Party to 
furnish information it determines to be contrary to its essential security interests or to preclude a 
Party from applying measures that it considers necessary for its essential security interests (Article 21.2). The Agreement does not apply to taxation measures except as set out in 
Article 21.3.
62 The Agreement shall not require the Parties to disclose any information relating to 
their laws on personal privacy or financial affairs and accounts of individual customers of financial institutions (Article 21.4).  
                                               
58 In Annex 10-A the Parties confirm their shared understanding that "customary international law" 
generally and as specifically referenced in Article 10.5 and Annex 10-B (Expropria tion) results from a general 
and consistent practice of States that they follow from a sense of legal obligation. 
59 Article 10.6 is to be interpreted in accordance with Annexes 10-A (Customary International Law) and 
10-B (Expropriation). 
60 According to Annex 12.11 (Transparency), Oman shal l implement the obligations of paragraphs 3 and 
4 of Article 12.11 no later than three years after the date of entry into force of the Agreement. 
61 Notwithstanding the provisions of Chapter 12 or Chapters 10 (Investment), 13 (Telecommunications), 
or 14 (Electronic Commerce), including specifically Article 13.16 (Relationship to Other Chapters), and Article 11.1.3 (Scope and Coverage). 
62 Article 2.2 (National treatment) applies to taxation measures to the same extent as does Article III of 
GATT 1994; Article 2.10 (Export taxes) applies to taxation measures. Article 21.3 lists several other provisions 
of Chapters 10 (Investment), 11 (Cross-border trade in  services), and 12 Financial services which apply to 
taxation measures.  WT/REG259/1 
 
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  5.2  Transparency63 
5.2.  Article 18.1 requires the Parties to promptly  publish or make publicly available their laws, 
regulations, procedures, and administrative rulings of general application. On request of the other Party, a Party shall promptly provide information and respond to questions pertaining to any 
proposed or actual measure, regardless of whether the other Party has been previously notified of 
that measure (Article 18.2). A review and appeal mechanism shall be established or maintained through impartial and independent judicial, quasi-judicial, or administrative tribunals 
(Article 18.4.1). Transparency mechanisms consiste nt with the provisions of the Agreement were 
in place before its entry into force. They are main tained by the Parties. The Parties are determined 
to eliminate bribery and corruption in international trade and investment and will jointly pursue this aim in relevant international fora. At the domestic level, they will adopt or maintain the 
necessary legislative or other measures to establish criminal offences against bribery and 
corruption affecting international trade or investment (Article 18.5).  
5.3  Accession 
5.3.  Under Article 22.4, any country or group of countries may become a Party to the Agreement, 
subject to terms and conditions to be agreed between the country or countries and the Parties and following approval in accordance with the applic able legal requirements and procedures of each 
country.  
5.4.  Either Party may terminate this Agreement 180 days following written notice to the other 
Party (Article 22.5.2). 
5.4  Institutional framework 
5.5.  A Joint Committee has been established under Article 19.2 comprising government officials of 
both Parties and co-chaired by the United States  Trade Representative and Oman's Minister of 
Commerce and Industry, or their designees. The Co mmittee shall convene in regular session every 
year, and in special session within 30 days of a request from a Party. The functions of the Joint 
Committee are to: review the general functioning of  the Agreement; review and consider specific 
matters; facilitate the prevention and settlemen t of disputes arising under the Agreement, 
including through consultation; consider and adopt any amendment or other modification to the 
Agreement; consider ways to further enhance trade relations; and ensure cooperation between the Parties. The Joint Committee may establish and delegate responsibilities to ad hoc and standing subcommittees or working groups. The first meeting of the Joint Committee was held on 
7 February 2010. During this meeting officials discussed a broad range of trade issues. In 
particular, as the Parties summarized, they discussed efforts to ensure effective implementation of the customs, investment and services chapters of  the Agreement, trade initiatives by the Gulf 
Cooperation Council (of which Oman is a member), and increased cooperation on initiatives in the 
WTO. In addition, the two governments discussed initiatives to monitor implementation and compliance with the labour rights and environmental obligations contained in the Agreement as 
well as additional cooperative efforts related to labour rights and environmental protection. Two 
additional committees are established under the Agreement namely the Committee on Textile and Apparel Trade Matters (Article 3.4) and the Financial Services Committee (Article 12.16). 
5.5  Dispute settlement 
5.6.  Chapter 20
64 sets out procedures for the avoidance or settlement of disputes between the 
Parties on matters relating to the interpretation or application of the Agreement, or wherever a Party considers that: (a) a measure by the other Party is inconsistent with its obligations; (b) the 
other Party failed to carry out its obligations; or (c) a benefit the Party could reasonably have 
expected to accrue to it under Chapters 2 (National Treatment and Market Access for Goods), 
                                               
63 In addition to the general provisions on transparency as set out in Chapter 18, the Agreement 
contains several other provisions on transparency wh ich are Chapter specific; these include the following 
Articles 7.6 (TBT); 10.20 (Investment); 11.8 (Cross-border trade in services); 12.11 (Financial services); 13.13 (Telecommunications); and 15.1.11 (Intellectual property rights). 
64 Chapter 20 does not apply to matters arising un der Chapter 6 (SPS); Chapter 16 (Labor) except 
Article 16.2.1(a); and Chapter 17 (Environment) except Article 17.2.1(a). Chapter 20 does apply to Chapter 12 (Financial services) but as modified by Article 12.18. WT/REG259/1 
 
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  4 (Rules of Origin), 9 (Government Procuremen t), 11 (Cross-Border Trade in Services), or 
15 (Intellectual Property Rights) is being nullified or impaired as a result of a measure whether or not the measure is inconsistent with the Agreement (Article 20.2).
65 Under Article 21.4, the 
complaining Party may select the forum for the settlement of the dispute by notifying the other 
Party of its selected forum; the forum chosen must be used to the exclusion of other possible fora.  
5.7.  The Chapter encourages the Parties to resolve disputes through cooperation and 
consultations (Article 20.1). Article 20.5 provides that either Party may request consultations with 
the other Party on any matter described in Article 20.2 (see above). If the consultations fail to 
resolve a matter within 60 days of the Party's request for consultations, or 20 days when the matter concerns perishable goods either Party may refer the matter to the Joint Committee (Article 20.6). If the Joint Committee fails to re solve the matter with 60 days (30 for perishable 
goods) after notification, the complaining Party may refer the matter to a dispute settlement panel 
through a written notification to the other Party (Article 20.7). The Agreement provides for detailed steps in the process for dispute resolution; Article 20.7-9 deal, respectively, with the 
establishment and composition, rules of proced ure and report of dispute settlement panels; 
Article 20.11-13 sets out procedures for the implementation of the award, failure to comply with the award, disagreement between the Parties wi th respect to the time for implementation, 
compensation and retaliation, non-implementation of certain disputes
66 and compliance review. 
The procedure for the settlement of a dispute is summarized in Table 5.1 below. 
                                               
65 Neither Party may invoke this paragraph with re spect to a benefit under Chapter 11 (Cross-Border 
Trade in Services) or Chapter 15 (Intellectual Property Ri ghts) if the measure is subject to an exception under 
Article 21.1 (General Exceptions). 
66 Article 20.12 sets out specific provisions regarding the non-implementation of a panel determination 
that a Party has not conformed with its obligations un der Article 16.2.1(a) (Applic ation and Enforcement of 
Labor Laws) or Article 17.2.1(a) (Application  and Enforcement of Environmental Laws). WT/REG259/1 
 
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  Table 5.1 Synopsis of the Agreement's dispute settlement provisions  
 
Source: The Free Trade Agreement between the United States and Oman, Chapter 19. 
 
5.8.  The Joint Committee shall review the implemen tation status of the Agreement not later than 
five years after its entry into force, or within six months after benefits have been suspended or 
monetary assessments have been imposed in five proceedings initiated under this Chapter, whichever occurs first (Article 20.14).  
5.9.  With respect to investment, the Agreement provides for an Investor-State Dispute 
Settlement mechanism; the rules and procedures for such disputes are detailed in Section B to Chapter 11. Referral to the Joint Committee  (Art. 20.6)  Consultations (Art. 20.5 ) 
60 or 20 days (perishable goods) 
60 or 30 days (perishable goods)  
Request for establishing a Panel  
(Art. 20.7) 
Composition  (Art. 20.7) 
Rules of procedure  (Art. 20.8) 
Max 60 days for composition 
Panel examination  (Art. 20.9) 
180 days 
Panel initial report to be sent 
to the parties (Art. 20.9.1) 
45 days  
Panel final report  (Art. 20.9.4) 
15 days  
Report becomes public  Implementation 
In agreement by the parties (Art. 20.10) 
45 days from receipt of final report 
failure to reach  agreement 
Non-implementation 
Negotiations on mutually acceptable 
compensation (Art. 20.11.1)  No retaliation  Retaliation (Art. 20.11.3) 
- 30 days after retaliation notice; or - 
after panel determination (See below)  
30 days from retaliation notice 
Request for Panel to reconvene 
upon request from losi ng party (Art.20.11.3) 
90 or 120 days from panel  
Panel determination  (Art. 20.11.3) 
Monetary assessment (Art. 20.11.5)  
upon notice from the losing Party within: 
- 30 days from notice of retaliation; or 
- 20 days from panel determination 
Failure to pay monetary assessment Notice of retaliation (Art. 20.11.2) 
-If no agreement on compensation (30 days); 
or -failure by non-conforming party to observe 
agreed compensation or  resolution WT/REG259/1 
 
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  5.6  Relationship with other agreements concluded by the Parties 
5.10.  Each Party affirms its rights and obligations under existing bilateral and multilateral 
agreements to which both Parties are party, in cluding the WTO Agreements. The Agreement shall 
not be construed to derogate from any legal obligation between the Parties that entitles goods or 
services, or suppliers of goods or services, to treatment more favourably than it accords 
(Article 1.2). 
5.11.  Table 5.2 lists all other regional trade agr eements (RTAs) notified and not notified to the 
GATT/WTO and in force to which the United States and Oman are party. 
Table 5.2 United States and Oman: Participatio n in other RTAs (notified and non-notified 
in force), as of 27 January 2014  
Partner / Agreement Date of 
entry 
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
UNITED  STATES 
Panama 31.10.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V  
Colombia 15.05.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V  
Rep. of Korea 15.03.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V  
Peru 01.02.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V  
Bahrain 01.08.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V  
DR-CAFTA 01.03.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V  
Morocco 01.01.06 Goods & Services 2005 GATT Art. XXIV & GATS Art. V  
Australia 01.01.05 Goods & Services 2004  GATT Art. XXIV & GATS Art. V  
Chile 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V  
Singapore 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V  
Jordan 17.12.01 Goods & Services 2002 GATT Art. XXIV & GATS Art. V  
NAFTA 01.01.94 Services & Services  1995 
1993 GATS Art. V 
GATT Art. XXIV 
Israel 19.08.85 Goods 1985 GATT Art. XXIV 
OMAN 
GCC 01.01.03 Goods 2007 
2009 Enabling Clause 
GATT Art. XXIV 
Pan-Arab FTA 01.01.98 Goods 2006 GATT Art. XXIV 
GCC-Singapore 01.09.13 Goods & Services Not notified 
 
DR-CAFTA: Dominican Republic-Central America – United States Free Trade Agreement. 
NAFTA:  North American Free Trade Agreement. GCC:  Gulf Cooperation Council.  
Source: WTO Secretariat. 
 
5.12.  Article 21.3 states that if any provision of the WTO Agreement that the Parties have incorporated into the Agreement is amended, the Parties shall consult to consider amending the 
relevant provision of the Agreement, as appropriate, in accordance with the amendment 
procedure.  WT/REG259/1 
 
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  5.7  Other provisions 
5.7.1  Government Procurement 5.13.  Chapter 9 and related annexes contain detailed provisions on government procurement.
67 
The Chapter's core principles are national treatm ent, non-discrimination and transparency in the 
conduct of government procurement;68 other general principles include the prohibition of offsets 
and disciplines regarding rules of origin. Partie s undertake to accord to suppliers, goods, and 
services of the other Party treatment no less favorable than the most favorable treatment 
accorded to domestic suppliers, goods, and servic es. Annex 9 lists the government entities that 
are covered by the Chapter, the thresholds that are applied, and the specific types of procurements and procurement arrangements that each Party has exempted from the application 
of the Chapter. A Party may modify the coverage  under the Chapter subject to notification and 
offers of compensatory adjustment to the other Party where necessary to maintain a level of 
coverage comparable to that existing prior to the notification (Article 9.12). 
5.14.  In addition to the general principles, the Chapter contains a number of disciplines with 
respect to transparency and procurement procedur es; these include provisions on the publication 
of procurement information (Article 9.3) and of notices of intended procurement (Article 9.4); time-limits for tendering (Article 9.5); information on intended procurement, including provisions 
on technical specifications to avoid these being used to create unnecessary obstacles to trade 
(Article 9.6); conditions for participation (Article 9.7); tendering procedures (Article 9.8); and treatment of tenders and awarding of contracts (Article 9.9). The Chapter also sets basic procedures for dealing with supplier challenges to the conduct or outcome of procurement 
(Article 9.11). 
5.15.  The Chapter is accompanied by two Side Le tters between the Parties both dated 19 January 
2009. One Side Letter addresses the requirement in  Article 9.11 that each Party establish or 
designate at least one impartial authority, independent of the procuring entity, for the purposes of 
domestic review of supplier challenges. In this resp ect, the Side Letter states that in the case of 
Oman, the Administrative Judicature Court is the impartial authority and that the remedies 
available in, and the procedures applicable to, the court currently satisfy the requirements of 
Article 9.11. The other Side Letter states that Oman does not exercise any undue control or influence in procurement conducted by Oman tel, Petroleum Development Oman, and Oman 
Liquefied Natural Gas. Oman shall ensure that all procurement by these entities is conducted in a 
transparent and commercial manner. 
5.16.  The Agreement covers procurement of goods, services or both (except measures excluded 
from the scope of the Agreement
69) by any contractual means with a value equal to or exceeding 
thresholds specified in Annex 9. Annex 9 lists 33, in the case of Oman, and 50, in the case of the 
United States central level government entities that are covered by the Agreement.70 In addition, 
both Oman and the United States have subjected a number of other government entities to the 
disciplines of Chapter 9. Thresholds vary for different groups of entities and according to the 
nature of purchases (goods, services, or construction services); they are adjustable for inflation, and for changes in the U.S. dollar / Special Drawing Right (SDR) exchange rate; the thresholds shall be adjusted at two-year intervals.
71 The general thresholds for both goods and services 
including construction services are indicated in Table 5.3 below. 
                                               
67 The United States has been a member to the WTO Government Procurement Agreement (GPA) since 
its entry into force (1 January 2006), while Oman is negotiating its accession to the GPA. 
68 As specified in Article 9.2.5, national treatment an d non-discrimination do no t apply to customs duties 
or charges of any kind imposed on or in connection with  importation, the method of levying such duties and 
charges, other import regulations or formalities, and measures affecting tr ade in services other than measures 
governing covered procurement. 
69 Exceptions include measures adopted or maintained  by the Parties to protec t public morals, public 
order, or safety; human, animal, or  plant life or health - including environmental measures-; intellectual 
property; or measures relating to good s or services of handicapped persons, of philanthropic institutions, or of 
prison labour (Article 9.14). 
70 A few of the listed entities have set out certain limitations with respect to procurement (Section A to 
Annex 9). 
71 Section G to Annex 9; the first adjustment took effect on 1 January 2008. WT/REG259/1 
 
- 48 - 
 
  Table 5.3 United States – Oman FTA: thresh old values for government procurement of 
goods, services and construction services  
United States 
Classification Threshold Value 
GPA - SDRs US-Oman FTA - (US$)  
Goods & 
services Construction 
services Goods & 
services Construction 
services 
Central Government 
Entities SDR 130,000 5 million 193,000 8,422,165 
Other Entities SDR 400,000a 5 million 250,00072 10,366,227 
Oman 
Classification Threshold Value 
GPA - SDRs US-Oman FTA - (US$)  
Goods & 
services Construction 
services Goods & 
services Construction 
services 
Central Government 
Entities Oman is not a Party to the GPA. It is 
currently negotiating accession. 260,000  8,422,165 
Other Entities 250,000 10,366,227 
a Exceptions to the general threshold are the Te nnessee Valley Authority, four Power Marketing 
Administrations of the Department of Energy, and the St. Lawrence Seaway Development 
Corporation for which the threshold is specified in dollar terms at US$250,000. 
 Source: The Free Trade Agreement between the United States and Oman, Annex 9.  
5.17.  Services excluded from the scope of Chapter 9 are listed in the Parties' respective schedules 
to Annex 9 as shown in Box 5.1. All construction  services are covered by the Agreement according 
to Annex 9-D, except: (i) for Oman, construction services for buildings intended for religious 
purposes; and (ii) for the United States, the pr ocurement of dredging services. "Buy national" 
requirements for articles, supplies, or materials acquired for use in construction services contracts covered by Chapter 9 shall not apply to goods of either Party.  
Box 5.1 Procurement of services excluded by  the scope of the FTA between the United 
States and Oman  
 Schedule of Oman 
 Services relating to research and development: all classes 
 Printing of revenue stamps, bank notes, and religious material 
 Telecommunication services, information processing, and telecommunications network 
management services 
 Utilities: all classes 
 Transportation, travel and relocation services: all classes 
 Arbitration and conciliation services  
 Financial intermediation services, except investment banking, insurance services, and 
pension services, and investment banking services  
 
Schedule of the United States 
 Services relating to research and development: all classes 
 Information processing and related telecommunication services (except for enhanced or 
valued-added services which are covered) 
 Maintenance, repair, modification, rebuilding and installation of goods/equipment relating 
to ships 
 Operation of all government-owned facilities 
 Utilities: all classes 
 Transportation, travel and relocation services: all classes except travel agent services. 
 
Source: The Free Trade Agreement between the United States and Oman, Annex 9. 
                                               
72 Exceptions include procurement financed by the Ru ral Utilities Services with respect to all power 
generating projects for which the threshold is US$593,000. WT/REG259/1 
 
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  5.7.2  Electronic commerce  
5.18.  Chapter 14 contains specific provisions regarding electronic commerce. The Agreement 
recognizes the economic growth and opportuniti es that electronic commerce provides, the 
importance of avoiding barriers to its use and development, and the applicability of the WTO 
Agreement to measures affecting electronic commerce. With respect to digital products, 
Article 14.3 provides that the Parties may not apply customs duties, fees, or other charges on or in 
connection with the import or export of digital prod ucts by electronic transmission; accord national 
treatment to some digital products;73 and accord MFN treatment to digital products. The 
obligations of national and MFN treatment contained in paragraphs 3 and 4 of Article 14.3 do not apply to the reservations listed by the Parties in relation to the Chapters on cross-border trade in 
services, investment and financial services. 
5.7.3  Intellectual Property Rights (IPRs) 
5.19.  Intellectual property rights are the su bject of Chapter 15 of the Agreement, which 
significantly increases the level of intellectual property protection beyond existing rights and 
obligations under the TRIPS Agreement as described below. Protection is enhanced in terms of the 
acquisition, scope, maintenance, and particularly enforcement of intellectual property rights. General provisions (Article 15.1) include national treatment and transparency obligations as well 
as an indication of the Parties' intentions or actions with regards to other international agreements 
on intellectual property.
74 The Chapter is accompanied by three Side Letters dates 19 January 
2009 dealing with limitations on liability for service suppliers; optical discs; and public health. 
5.7.3.1  Trademarks and geographical indications 
5.20.  The Agreement details the nature of protection that the Parties should provide with respect 
to trademarks and geographical indications, as well as various procedural requirements. In particular, an electronic system must be created for the registration of trademarks, which shall 
include a requirement to communicate to the applicant, the reasons for a refusal to register a 
trademark; and an opportunity to appeal. Each Party shall provide an electronic trademark registration system and a publicly ava ilable electronic database. The Agreement inter alia  expands 
the definition of trademark to include protection for non-visually perceptible marks such as sounds 
and scents. It also recognizes the principles of priority and exclusivity in the relationship between trademarks and geographical indications. Article 15.3 deals with Domain Names on the Internet. 
5.7.3.2  Copyrights and related rights 
5.21.  Provisions with respect to copyright and related rights include a requirement to provide 
copyright protection for the life of the author pl us 70 years (for works measured by a person’s 
life). On the basis other than the life of a natura l person the term shall be not less than 95 years 
from the end of the calendar year of the first au thorized publication (or the creation) of the work, 
performance or phonogram. The Agreement provides for detailed measures to enhance legal protection and effective legal remedies against the circumvention of effective technological 
measures that authors, performers, and producers of phonograms use in connection with the 
exercise of their rights and that restrict unauthori zed acts in respect of their works, performances, 
and phonograms. The remedies set out in Article 15.10 include criminal procedures and penalties. Article 15.4 inter alia  forbids the retransmission of television signals (whether terrestrial, cable, or 
                                               
73 The prohibition in Article 14.3.3 on according less favourable treatment to a digital product applies 
only if the digital product is created, produced, published, contracted for, or commissioned in the territory of the other Party, or if the author, perfo rmer, producer, developer, or owner of  the digital product is a person of 
the other Party.  
74 Article 15.1.2 requires the Parties to ratify or accede to the following agreements by the date of entry 
into force of the Agreement: the Patent Cooperation Treaty (1970), as amended in 1979; the Convention 
Relating to the Distribution of Programme-Carrying Signals Transmitted by Satellite (1974); the Protocol 
Relating to the Madrid Agreement Concerning  the International Registration of Marks (1989); the Budapest 
Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure 
(1977), as amended in 1980; the International Convention for the Prot ection of New Varieties of Plants (1991) 
(UPOV Convention); the Trademark Law Treaty (1994); the WIPO Copyright Treaty (1996); and the 
WIPO Performances and Phonograms Treaty (1996). Article 15.1.3 requires the Parties to make all reasonable 
efforts to ratify or accede to: the Patent Law Treaty (2000); and the Hague Agreement Concerning the 
International Registration of Industrial Designs (1999). WT/REG259/1 
 
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  satellite) on the Internet without the authorization of the rights holders of the content of the signal 
and, if any, of the signal; this provision is su bject to review in a side-letter to the Chapter. 
Article 15.7 concerns the Protection of Encrypted Program-Carrying Satellite Signals. 
5.7.3.3  Patents 
5.22.  With respect to patents, the Agreement permits the Parties to exclude from patentability 
inventions as necessary to protect public order  or morality, including to protect human, animal, or 
plant life or health or the environment, provided that such exclusion is not made merely because 
the exploitation is prohibited by law. Each Party may also exclude from patentability animals other 
than micro-organisms, and essentially biological processes for the production of animals other than non-biological and microbial processes; and animals and diagnostic, therapeutic, and surgical procedures for the treatment of humans or animals.  However, patents shall be made available for 
any new uses or methods of using a known product, including products to be used for particular 
medical conditions, subject to the aforementioned exclusions and the conditions of patentability. Article 15.8 also provides that a patent may be revoked only on grounds that would have justified 
a refusal to grant the patent. However, a Party may also provide that fraud, misrepresentation, or 
inequitable conduct may be the basis for revoking or holding a patent unenforceable. Article 15.9 - Measures Related to Certain Regulated Products - grants protection from use by third parties to 
data and other information submitted in conne ction with marketing approval. The products 
concerned are agricultural chemical products and pharmaceuticals. Protection is for a period of three to 10 years. 
5.23.  With respect to enforcement of IPRs Article 15.10 provides that each Party shall publish final 
judicial decisions or administrative rulings of general applicability; make available to rights holders 
civil judicial procedures concerning the enforcemen t of any IPRs; establish or maintain a system of 
pre-established damages for copyright and relate d rights, and trademark counterfeiting; grant 
provisional measures, upon request, for relief inaudita altera parte ; and provide for criminal 
procedures and penalties to be applied at least in cases of wilful trademark counterfeiting or copyright or related rights piracy on a commercial scale. The Article contains additional provisions 
relating to border measures and liability for service providers and limitations. The latter is 
accompanied by a Side Letter in which Oman agrees to adopt requirements for (a) effective written notice to service providers with respect to materials that are claimed to be infringing IPRs and (b) effective written counter-notification by those whose material is removed or disabled and 
who claim that it was removed or disabled by mistake or misidentification. 
5.24.  In the Side Letter on optical discs Oman agrees to adopt and maintain measures to provide 
adequate legal protection with respect to optical discs and expeditious legal remedies that 
constitute a deterrent against the unauthorized production of optical discs. The Side Letter 
i n c l u d e s  s p e c i f i c  m e a s u r e s  t h a t  O m a n  a g r e e s  t o  g i v e  e f f e c t  t o  i n  r e s p e c t  o f  l i c e n s e s  a n d  enforcement measures. The Side Letter on public health states that the obligations of Chapter 15 
do not affect the ability of either Party to take necessary measures to protect public health by 
promoting universal access to medicines, in particular for illnesses such as HIV/AIDS, tuberculosis, malaria, and other epidemics as well as circumstances of extreme urgency or national emergency. Furthermore, the Chapter does not prevent the effe ctive utilization of the provisions on the TRIPS 
Agreement and public health.  
5.7.4  Labour 5.25.  In Chapter 16 the Parties reaffirm their obligations as members of the International Labour 
Organization (ILO), and strive to ensure that their labour laws are consistent with internationally 
recognized labour rights and are enforced thro ugh appropriate access to tribunals. The Agreement 
requires the Parties to effectively enforce labour laws that affect trade between the Parties while 
recognizing their right to exercise discretion with respect to investigatory, prosecutorial, regulatory 
or compliance matters, or decisions regarding the allocation of resources. The Parties agree to strive to ensure that they do not waive or otherwise derogate from their labour laws in a manner that weakens or reduces adherence to internationally recognized labour rights. 
5.26.  Annex 16-A establishes a labour cooperation mechanism between the Parties in view of 
providing enhanced opportunities for the Parties to improve labour standards and to further advance common commitments with respect to labour matters. The Annex includes a WT/REG259/1 
 
- 51 - 
 
  non-exhaustive list of cooperation activities and ways to undertake these. The Joint Committee 
shall consider issues and review activities rela ted to the operation of the Chapter. A Party may 
request consultations with the other Party regarding any matter arising under the Chapter; Article 16.6 sets out the procedures for labour consultations. 
5.7.5  Environment 
5.27.  In Chapter 17 the Parties agree to ensure that their domestic environmental laws and 
policies provide for high levels of environmental pr otection and recognize it to be inappropriate to 
encourage trade or investment by weakening or reducing the protections afforded by domestic 
environmental laws. In light of these objectives the Parties will encourage the development of incentives and other flexible and voluntary mechanisms to enhance environmental performance by involving the private sector and local communities; a Side Letter to Chapter 17 clarifies that the 
list of incentives in subparagraph (b) of Article 17. 4.1 is illustrative and that the encouragement of 
the development of such incentives is at the discretion of each Party. In the event of a violation of environmental laws, each Party shall ensure that interested persons have appropriate access to 
"judicial, quasi-judicial, or administrative procee dings", which shall be administrated in a "fair, 
equitable, and transparent" manner. The Parties remain committed to multilateral environmental 
agreements to which they are both party, and recognize the importance of current and future 
environmental cooperation that may be undertaken outside the Agreement.  
5.28.  With regard to the settlement of disput es, neither Party may have recourse to dispute 
settlement under the Agreement for any matter arising under Chapter 17 other than on the application and enforcement of environmental laws (paragraph 1(a) of Article 17.2). In all other 
cases, they have recourse to environmental consultations as provided by Article 17.8.  
5.29.  The Parties will also undertake cooperative environmental activities pursuant to a 
Memorandum of Understanding on Environmenta l Cooperation between the United States and 
Oman. The objective of the Memorandum is to identi fy environmental issues of mutual interest to 
the Parties and to establish a mechanism through which to pursue cooperative efforts in those areas. In this respect the Parties agree to establish a Joint Forum on Environmental Cooperation to 
meet within one year of the signing of the Memo randum, and as appropriate thereafter, to discuss 
ways in which the Parties can work together to strengthen the capacity of Oman to protect and conserve the environment. Among the topics to be considered by the Joint Forum are the development and implementation of science-based standards for the protection of the environment 
and human health; the promotion of sustainable de velopment; and environmental issues of mutual 
policy interest to the Parties. The Parties expect that the Joint Forum will develop a Plan of Action; 
review and assess cooperative environmental activiti es undertaken pursuant to the Plan of Action; 
recommend ways to improve cooperation; and undertake such other activities as the Parties may 
deem to be appropriate. In the Plan of Action, th e Joint Forum should identify priority projects for 
environmental cooperation guided by the subj ect areas set forth in the Annex to this 
Memorandum.
75 
 
                                               
75 The Parties have identified the following subject areas as priorities for environmental cooperation: 
Environmental Laws and Regulations; Environmental Impact Assessments; Environmental Incentives; Public Participation in Environmental Protection; Integrated  Water Resources Management and Protection; Coastal 
Protection and Preservation of Marine Resources; Prot ected Area Management and Conservation of Flora and 
Fauna; Cleaner Production and Environmental Techno logy; Chemical and Hazardous Waste Management and 
Disposal; Environmental Disaster Preparedness. WT/REG259/1 
 
- 52 - 
 
  ANNEX 1 
DETAILS OF THE TARIFF LIBERALIZATION UNDER THE AGREEMENT 
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the MFN rates applied by the United States and Oman is shown in Tables A1.1 
(the United States) and A1.2 (Oman) below, by total products, agricultural products and 
non-agricultural products. 
2. The United States' overall average applied MFN rate in 2009 was 4.8%; the average applied 
tariff on agricultural products was 8.8% compared to an average applied tariff of 4.1% for 
non-agricultural products. MFN duty-free tariff lines accounted for 36.4% of all tariff lines. On entry into force of the Agreement, Oman's export ers enjoyed a relative margin of preference of 
64.8% for agricultural goods vis-à-vis  the prevailing average MFN tariff in 2009, and 92.7% for 
non-agricultural goods. Overall, Oman's exporter s enjoyed a relative margin of preference of 
85.4% vis-à-vis the prevailing average applied MFN tariff, as well as an increase to 94.4% in the 
share of the United States' duty-free lines. By  the end of implementation, 100% of tariffs and 
trade are due to be covered by the Agreement.  
Table A1.1 United States: Indicators of MFN tariff rates and preferential rates for 
imports from Oman  
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2009 4.8 7.5 36.4 8.8 11.3 22.4 4.1 6.7 39.1 
Oman 2009 0.7 16.6 94.4 3.1 25.9 81.2 0.3 10.3 96.8 
 2010 0.6 14.2 94.4 2.7 22.6 81.2 0.3 8.7 96.8 
 2011 0.5 11.9 94.4 2.3 19.2 81.2 0.2 7.1 96.8 
 2012 0.4 9.6 94.4 1.9 15.8 81.2 0.2 5.4 96.8 
 2013 0.3 12.5 96.4 1.5 19.2 86.3 0.1 7.1 98.3 
 2014 0.3 10.1 96.4 1.2 15.4 86.3 0.1 5.7 98.3 
 2015 0.2 7.6 96.4 0.9 11.7 86.3 0.1 4.3 98.3 
 2016 0.1 5.1 96.4 0.6 7.9 86.3 0.0 2.8 98.3 
 2017 0.1 2.6 96.4 0.3 4.2 86.3 0.0 1.4 98.3 
 2018 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
 2019 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
a  WTO Definition. 
 
Note:  For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related 
calculations; Calculation of MFN averages includes AVEs provided by USA authorities; for preferential tariffs with non- ad valorem  components, only the ad valorem  part of the rate was included in the 
calculation of the tariff averages. 
 Source: WTO Secretariat estimates based on  data provided by the United States. 
 
3. Oman's overall average applied MFN rate in 2009 was 5.6%; the average applied tariff on 
agricultural products was 10.7% compared to an average applied tariff of 4.6% for non-
agricultural products. MFN duty-free tariff lines acco unted for 9.5% of all tariff lines. On entry into 
force of the Agreement, United States' exporters en joyed a relative margin of preference of 41.1% 
for agricultural goods vis-à-vis  the prevailing average MFN tariff in 2009, and 95.7% for 
non-agricultural goods. Overall, United States' expo rters enjoyed a relative margin of preference of 
98.2% vis-à-vis the prevailing average applied MFN tariff, as well as an increase to 94.8% in the 
share of Oman's duty-free lines. By the end of implementation, 99.8% of tariffs, representing 
100% of the trade, are due to be covered by the Agreement.  WT/REG259/1 
 
- 53 - 
 
  Table A1.2 Oman: Indicators of MFN tariff ra tes and preferential rates for imports from 
United States  
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2009 5.6 6.2 9.5 10.7 13.7 21.6 4.6 5.0 7.3 
United 
States 2009 1.1 22.6 94.8 6.3 46.2 85.5 0.2 5.5 96.5 
 2010 1.1 21.9 94.8 6.2 45.7 85.5 0.2 4.7 96.5 
 2011 1.1 21.2 94.8 6.1 45.1 85.5 0.1 3.9 96.5 
 2012 1.0 20.5 94.8 6.0 44.6 85.5 0.1 3.2 96.5 
 2013 1.0 46.7 97.7 6.0 100.0 93.0 0.1 5.8 98.6 
 2014 1.0 46.4 97.7 6.0 100.0 93.0 0.1 5.3 98.6 
 2015 1.0 46.2 97.7 6.0 100.0 93.0 0.1 4.8 98.6 
 2016 1.0 45.9 97.7 6.0 100.0 93.0 0.1 4.4 98.6 
 2017 1.0 45.7 97.7 6.0 100.0 93.0 0.1 3.9 98.6 
 2018 0.0 0.0 99.8 0.0 0.0 98.9 0.0 0.0 100.0 
a WTO Definition. 
Note: For the calculation of tariff averages with non- ad valorem  components, only the ad valorem  part of 
the rate was included. 
 Source: WTO Secretariat estimates based on data provided by the Oman. 
 
4. Table A1.3 shows the market access opportunities in the United States for Oman's top 
25 exports, which in the period surveyed (2006-2008) accounted on average for 86% of Oman's global exports. The table shows at which year all HS 8-digit tariff lines corresponding to the 
product definition (i.e. applying to the 6-digit HS code used to capture the volume of trade) will 
become duty-free in the United States. 
5. Oman's top 25 exports cover a total of 51 HS 8-digit tariff lines of which 13 are already 
duty-free on an MFN basis. Nine of Oman's top 25 exports (which account for 12 HS 8-digit lines 
and 16.5% of Oman's average global exports in the period 2006-08) already benefit from zero 
MFN duties in the United States' market; a further 14 products (accounting for 34 tariff lines and a further 69.2% of Oman's average global export s) gain immediate duty-free access while the 
remaining two are granted duty-free access in 2018.  The margin of preference granted to Oman 
by the United States under the Agreement varies from 0 to 19.7 percentage points. 
Table A1.3 United States: Market access o pportunities under the agreement for Oman's 
top 25 exports 
Oman's top export products in 2006-2008  Access Conditions to the United 
States' import market  
MFN (2009)  
Duty-free in  Avg. 
MFN 
applied 
rate (%)  No. of tariff 
lines  
HS number and description of the product Share in 
global 
exports 
(%) 
Duty-free 
Dutiable 
2009 
2018 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 60.4 0.1  2 2  
271111 Natural gas 12.2 0.0 1    
271011 Light oils and preparations 4.5 1.6  5 5  
271119 Other 1.7 0.0 1    
854420 Co-axial cable and other co-axial electric 
conductors 1.2 5.3  1 1  
310210 Urea, whether or not in aqueous solution 1.2 0.0 1    
271019 Other 0.7 1.9  11 11  
040221 Not containing added sugar or other 
sweetening matter 0.6 16.8  6 3 3 WT/REG259/1 
 
- 54 - 
 
  Oman's top export products in 2006-2008  Access Conditions to the United 
States' import market  
MFN (2009)  
Duty-free in  Avg. 
MFN 
applied 
rate (%)  No. of tariff 
lines  
HS number and description of the product Share in 
global 
exports 
(%) 
Duty-free 
Dutiable 
2009 
2018 
390210 Polypropylene 0.5 6.5  1 1  
290511 Methanol (methyl alcohol) 0.3 2.8 1 1 1  
843143 Parts for boring or sinking machinery of 
subheading 8430.41 or 8430.49 0.3 0.0 2    
730531 Longitudinally welded 0.3 0.0 3    
880330 Other parts of aeroplanes or helicopters 0.2 0.0 1    
252329 Other 0.2 0.0 1    
151190 Other 0.2 0.0 1    
261000 Chromium ores an d concentrates. 0.2 0.0 1    
680221 Marble, travertine and alabaster 0.2 3.1  2 2  
740811 Of which the maximum cross-sectional 
dimension exceeds 6 mm 0.2 2.0  2 2  
690890 Other 0.1 8.5  1  1 
610510 Of cotton 0.1 19.7  1 1  
850710 Lead-acid, of a kind used for starting 
piston engines 0.1 3.5  1 1  
010420 Goats 0.1 0.2  1 1  
151219 Other 0.1 4.2  1 1  
610910 Of cotton 0.1 16.5  1 1  
151529 Other 0.1 3.4  1 1  
Total of above 86.0  13 38 34 4 
Note: Calculation of MFN averages includes AVEs provided by the United States' authorities. 
 Source: WTO estimates based on data provided by USA authorities and UNSD, Comtrade data. 
 
6. Table A1.4 shows the market access opportunities in Oman for the United States' top 
25 exports, which in the period surveyed (2006-2008) accounted on average only for 27.5% of the United Sates global exports, illustrating the wide diversity of products exported by the United States to Oman. The table shows at which year all HS 8-digit tariff lines corresponding to the 
product definition (i.e. applying to the 6-digit HS code used to capture the volume of trade) will 
become duty-free in Oman. 
7. The United States top 25 exports cover a total of 96 HS 8-digit tariff lines of which 23 were 
already duty-free on an MFN basis at the date of  entry into force of the Agreement. A further 
73 tariff lines gained immediate duty-free access at the entry into force of the Agreement. This means that at the entry into force of the Agreemen t, all United States top 25 exports entered duty 
free into Oman's market. The gained margin of pr eference granted to the United States by Oman 
under the Agreement for these products varies from 0 to 5 percentage points. 
Table A1.4 Oman: Market access opportunities  under the agreement for United States' 
top 25 exports 
United States' top export products in 2006-2008  Access Conditions to the Oman's 
import market  
MFN (2009)  
Avg. MFN 
applied 
rate 
(%) No. of tariff lines  
HS number and description of the product Share in 
global 
exports 
(%) Duty-free Duty-free  
in 2009 
880240 - Aeroplanes and other aircraft, of an 
unladen weight exceeding 15,000 kg 3.4 0.0 1  
271019 -- Other 2.2 5.0  15 
870323 -- Of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 cc 1.8 5.0  9 WT/REG259/1 
 
- 55 - 
 
  United States' top export products in 2006-2008  Access Conditions to the Oman's 
import market  
MFN (2009)  
Avg. MFN 
applied 
rate 
(%) No. of tariff lines  
HS number and description of the product Share in 
global 
exports 
(%) Duty-free Duty-free  
in 2009 
880330 - Other parts of aeroplanes or 
helicopters 1.6 5.0  1 
847330 - Parts and accessories of the 
machines of heading 84.71 1.4 0.0 1  
870324 -- Of a cylinder capacity exceeding 
3,000 cc 1.4 5.0  8 
854231 -- Processors and controllers, whether 
or not combined with memories, 
converters, logic ci rcuits, amplifiers, 
clock and timing circuits, or other circuits 1.3 0.0 1  
300490 - Other 1.2 0.0 2  
710239 -- Other 1.0 5.0  1 
710812 -- Other unwrought forms 1.0 0.0 2  
841191 -- Of turbo-jets or turbo-propellers 1.0 5.0  1 
854239 -- Other 1.0 0.0 1  
100590 - Other 0.9 0.0 4  
120100 Soya beans, whether or not broken. 0.9 0.0 2  
843143 -- Parts for boring or sinking 
machinery of subheading 8430.41 or 8430.49 0.8 5.0  2 
854232 -- Memories 0.8 0.0 1  
870829 -- Other 0.8 5.0  2 
870899 -- Other 0.8 5.0  1 
100190 - Other 0.7 0.0 3  
851762 -- Machines for the reception, 
conversion and transmission or 
regeneration of voic e, images or other 
data, including switching and routing 
apparatus 0.7 0.0 3  
901890 - Other instruments and appliances 0.7 5.0  8 
271011 -- Light oils and preparations 0.6 5.0  16 
880230 - Aeroplanes and other aircraft, of an 
unladen weight exceeding 2,000 kg but not exceeding 15,000 kg 0.6 0.0 1  
300210 - Antisera and other blood fractions 
and modified immunological products, 
whether or not obtained by means of 
biotechnological processes 0.5 0.0 1  
870431 -- g.v.w. not exceeding 5 tonnes 0.5 5.0  9 
Total of above 27.5  23 73 
 
Note: For the calculation of tariff averages with non ad valorem  components, only the ad valorem  part of 
the rate was included. 
 Source: WTO estimates based on data provided by Oman authorities and UNSD, Comtrade data.  WT/REG259/1 
 
- 56 - 
 
  ANNEX 2 
TARIFF RATE QUOTAS UNDER THE AGREEMENT  
Table A2.1 United States Tariff-rate quotas  in favour of Oman's suppliers under the 
Agreement, agricultural products 
HS tariff line code (description) Out-of-
quota duty  In-quota quantity In-
quota 
duty Date 
quota 
removed  
Bovine meat fresh, chilled or 
frozen 0201.10.50, 0201.20.80, 0201.30.80, 0202.10.50, 0202.20.80, 0202.30.80    
26.4% 15 metric tonnes (MT) in 
2009, plus 9% compounded annually (c.a.) every year thereafter; unlimited in 2018 0 2018 
Dairy products (liquid) 
0401.30.25, 0403.90.16 
 
 
2105.00.20  
  
77 .2 cents 
/litre; 
 
50.2 
cents/kg + 
17% 1,000 litres in 2009, plus 
4% c.a. every year 
thereafter; unlimited in 
2018 0 2018 
Cheese  
0406.10.08, 0406.10.18, 
0406.10.28, 0406.10.38, 0406.10.48, 0406.10.58, 0406.10.68, 0406.10.78, 0406.10.88, 0406.20.28, 0406.20.33, 0406.20.39, 0406.20.48, 0406.20.53, 0406.20.63, 0406.20.67, 0406.20.71, 0406.20.75, 0406.20.79, 0406.20.83, 0406.20.87, 0406.20.91, 0406.30.18, 0406.30.28, 0406.30.38, 0406.30.48, 0406.30.53, 0406.30.63, 0406.30.67, 0406.30.71, 0406.30.75, 0406.30.79, 0406.30.83, 0406.30.87, 
0406.30.91, 0406.40.70, 
0406.90.12, 0406.90.18, 0406.90.32, 0406.90.37, 0406.90.42, 0406.90.48, 0406.90.54, 0406.90.68, 0406.90.74, 0406.90.78, 0406.90.84, 0406.90.88, 0406.90.92, 0406.90.94, 0406.90.97, 1901.90.36  
US$1.6/kg
 15 MT in 2009, plus 9% 
c.a. every year thereafter, 
unlimited in 2018 0 2018 
Milk powder  
0402.10.50, 0402.21.25, 
0402.21.50, 0403.90.45, 
0403.90.55, 0404.10.90 
 
2309.90.28, 2309.90.48   
US$0.9/kga 
 
 
US$0.8/kg 
+ 6.4% 5 MT in 2009, plus 9% 
c.a. every year 
thereafter; unlimited in 
2018 0 2018 
Butter 
0401.30.75, 0402.21.90, 0403.90.65, 0403.90.78, 0405.10.20, 0405.20.30, 2106.90.26, 2106.90.36  0405.90.20   
US$1.74/kg 
 
  US$1.87/kg + 8.5% 5 MT in 2009, plus 9% 
c.a. every year thereafter., unlimited in 2018 0 2018 WT/REG259/1 
 
- 57 - 
 
  HS tariff line code (description) Out-of-
quota duty  In-quota quantity In-
quota 
duty Date 
quota 
removed  
Other dairy products 
0402.29.50, 0402.99.90, 
0403.10.50, 0403.90.95, 
0404.10.15, 0404.90.50, 
0405.20.70, 1704.90.58, 
1806.20.26, 1806.20.28, 
1806.20.36, 1806.20.38, 
1806.20.82, 1806.20.83, 
1806.20.87, 1806.20.89, 
1806.32.06, 1806.32.08, 
1806.32.16, 1806.32.18, 
1806.32.70, 1806.32.80, 
1806.90.08, 1806.90.10, 
1806.90.18, 1806.90.20, 
1806.90.28, 1806.90.30, 
1901.10.30, 1901.10.40, 
1901.10.75, 1901.10.85, 
1901.20.15, 1901.20.50, 
1901.90.43, 1901.90.47, 
2105.00.40, 2106.90.66, 
2106.90.87 
 
0402.91.70, 0402.91.90, 
0402.99.45, 0402.99.55, 
1517.90.60, 2106.90.09 
2202.90.28  
US$0.6/kg  
+ 9.1% 
 
 
 
 
 
 
 
 
US$0.47/kg 
 
 
 
23.5 
cents/litre 
+ 14.9% 5 MT in 2009, plus 9% 
c.a. every year thereafter, 
unlimited in 2018  
 0 2018 
Peanuts 
1202.10.80, 1202.20.80, 
2008.11.15, 2008.11.35, 2008.11.60   
138.2% 1 MT in 2009, plus 9% 
c.a. every year thereafter, unlimited in 2018 0 2018 
Sugar and sugar-containing 
products   
1701.11.50, 1701.12.50, 
1701.91.30, 1701.99.50, 
1702.90.20, 1806.10.15, 
1806.10.28, 1806.10.38, 
1806.10.55, 1806.10.75, 
2106.90.46 
 
1701.91.48, 1701.91.58, 
1702.20.28, 1702.30.28, 
1702.40.28, 1702.60.28, 
1702.90.58, 1702.90.68, 
1704.90.68, 1704.90.78, 
1806.20.73, 1806.20.77, 
1806.20.94, 1806.20.98, 
1806.90.39, 1806.90.49, 
1806.90.59, 1901.20.25, 
1901.20.35, 1901.20.60, 
1901.20.70, 1901.90.54, 
1901.90.58, 2101.12.38, 
2101.12.48, 2101.12.58, 
2101.20.38, 2101.20.48, 
2101.20.58, 2103.90.78, 
2106.90.72, 2106.90.76, 
2106.90.80, 2106.90.91, 
2106.90.94, 2106.90.97   
 
5.52 
cents/kg 
 
 
 
 
 
35.9 
cents/kg + 
7.6% 
 
  
 
15 MT in 2009, plus 
around 4% c.a. every 
year thereafter, unlimited 
in 2018  
 
0  
 
2018 
Cotton 
5201.00.18, 5201.00.28, 
5201.00.38, 5201.00.80, 5202.99.30, 5203.00.30   
US$0.27/kg 5 MT in 2009, plus 9% 
c.a. every year thereafter 
unlimited in 2018 0 2018 WT/REG259/1 
 
- 58 - 
 
  HS tariff line code (description) Out-of-
quota duty  In-quota quantity In-
quota 
duty Date 
quota 
removed  
Tobacco 
2401.10.65, 2401.20.35, 
2401.20.87, 2401.30.70, 
2403.10.90, 2403.91.47, 
2403.99.90   
350% 5 MT in 2009, plus 9% 
c.a. every year thereafter, 
unlimited in 2018 0 2018 
 
c.a. Compounded annually. 
 Source: WTO estimates, based on the Agreement and on information provided by the United States. 
 
__________