WT/REG259/M/1  
 
28 July 2014  
(14-4332)  Page: 1/3  
Committee on Regional Trade Agreements 
Seventy-third Session    
 
 FREE TRADE AGREEMENT BETWEEN THE UNITED STATES AND OMAN,  
GOODS AND SERVICES 
NOTE ON THE MEETING OF 23 JUNE 2014 
Chairman: Ambassador Francisco Pirez Gordillo (Uruguay) 
1.1.  The 73rd Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/4299/Rev.1 dated 13 June 2014. 
1.2.  Under Agenda Item B.VII of the session , the CRTA considered the Free Trade Agreement 
between the United States and Oman, (hereinafter "the Agreement"). 
1.3.  The Chairman said that the Agreement ha d entered into force on 1 January 2009. It had 
been notified to the WTO by the Parties on 30 January 2009 under Article XXIV:7(a) of the 
GATT 1994 and the Understanding on the Interpretation of Article XXIV of GATT 1994 as an 
Agreement establishing a free trade area (document WT/REG259/N/1) and under 
GATS Article V:7(a) as an Agreement providing for th e liberalization of trade in services within the 
meaning of Article V of the GATS (document S/C/ N/472). The text of the Agreement was available, 
together with its Annexes, on the Parties' official websites. The Factual Presentation on the goods 
and services aspects (documents WT/REG259/1 dated 25 March 2014 had been prepared by the Secretariat on its own responsibility in full consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Me chanism for Regional Trade Agreements 
(document WT/L/671). In addition, written questi ons and replies on this Agreement had been 
distributed in document WT/REG259/2 dated 17 June 2014. He reminded delegations that this factual presentation had been prepared in 2009 and although the Section on Trade Environment 
had been updated, the rest of the factual presenta tion followed the template used at that time. He 
proposed to organize the consideration of the Agr eement by first asking the Parties and then other 
Members to give any general comments and then turn  to the specifics of the Agreement, using the 
Factual Presentation, document WT/REG259/1 to guide the debate. They would then go through 
the questions and replies document. 
1.4.  The representative of Oman was pleased to  participate in the meeting of the Committee on 
Regional Trading Arrangements to consider the Oman-United States Free-Trade Area. He thanked 
the WTO Secretariat for preparing an excellent and comprehensive Factual Presentation which was 
also a valuable summary of the many detailed provisions of the Agreement. 
1.5.  The Agreement had entered into force on 1 January 2009, and had now been under 
i m p l e m e n t a t i o n  f o r  m o r e  t h a n  f i v e  y e a r s .  I t  w a s  c o m p r e h e n s i v e ,  c o v e r i n g  n o t  o n l y  g o o d s  a n d  
services but also investment, intellectual property rights, electronic commerce, government procurement and environment, among others. It fu lly conformed with the provisions of Article 
XXIV of the GATT 1994 and Article V of the GATS. Its aim was the liberalization of trade, especially 
in goods. Though the transition period under th e Agreement was ten years ending at the end of 
2017, a very large measure of liberalization had already taken place. About 97.5% of Oman’s tariff lines and 99% of its imports from the United States were already duty free at the end of 2013. As 
for Oman’s exports to the United States, only 0.1% of US imports from Oman were dutiable at the 
end of 2013 and these would become duty-free at the beginning of 2018. It was a tremendous 
achievement. WT/REG259/M/1 
 
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  1.6.   Since 2009, Omani exports to the U.S. had increased by 60% and U.S. exports to Oman had 
increased by 26.4%. Total trade between Oman and the U.S. had increased by 40% since the 
Agreement came into force in 2009. U.S. FDI in Oman had increased from $884 million before the Agreement entered into force in 2008 to $992 million in 2011, a 12% increase, despite a severe 
global recession. 
1.7.   Oman considered that agreements conformi ng to the provisions of WTO rules were building 
blocks for promoting the objectives of the WTO leading to the liberalization and expansion of world 
trade. 
1.8.  The representative of the United States welcomed the consideration of the 
United States-Oman Free Trade Agreement by the Committee and also thanked the Omani 
Government for its hard work in preparing fo r the meeting and its thorough summary of the 
Agreement’s disciplines and commitments. The Agr eement cemented the long-standing friendship 
and growing commercial ties between the Unit ed States and Oman, and created economic 
opportunities for their citizens. The Agreement was comprehensive – reflecting the two countries’ 
commitment to free trade, openness, and transparen cy, and to fostering a favourable climate for 
trade and investment.  
1.9.  The Agreement had already generated new o pportunities for farmers, ranchers, businesses, 
service providers, workers and consumers in both countries, further reaffirming their commitment 
to open markets and economic liberalization. On the first day the Agreement had entered into force, 100% of bilateral trade in industrial goods began to flow duty-free. In addition, Oman had 
provided immediate duty-free access for 87% of agricultural products.  
1.10.  In the area of services, which was co nstantly growing in importance, the Agreement 
accorded substantial market access across nearly the entire services regime, including new service industries which might emerge in the future. The Agreement provided benefits for businesses 
wishing to supply services cross-border (for instance, by electronic means) as well as businesses 
wishing to establish a presence locally in the other country. It had provided new opportunities for companies that provided banking and securities products and firms that provided services in 
telecommunication, express delivery, distribution, health care, construction, architecture and 
engineering. The Agreement also ensured the secure and predictable legal and regulatory 
environment in Oman that foreign investors wanted to see in 21
st century commerce. Strong and 
detailed disciplines on regulatory transpar ency further supplemented the Agreement’s 
cross-cutting transparency provisions. Finally, th e Agreement also provided for non-discriminatory 
treatment of goods and services of each Party in the other’s government procurement market. 
1.11.  The United States believed that the growth in foreign investment which continued today in 
Oman was due – at least in part – to its commitment to open its market, as well as the 
transparent, predictable business climate resulting from enhanced intellectual property rights protections, improved business services, and th e pro-liberalization position signalled by the 
Agreement. The reforms undertaken to implem ent the Agreement had made Oman a more 
attractive place for investors and created new opportunities for the Omani people. 
1.12.  The representative of the European Union thanked the Parties for their presentations that 
were rich in information and the Secretariat. He noted the wide scope of liberation in goods 
between the Parties and the significant improvem ent in the level of commitments in services 
compared to their GATS commitments. The EU had submitted advance questions on how the Agreement was reconciled with the GCC Customs Union and single market. In other words, how 
the provisions of the Agreement were being implemented for goods traded with other GCC Member 
States considering the GCC principles of a single point of entry and free circulation of goods. He thanked the Parties for their written replies and co nfirmed that the EU had no further questions. 
1.13.  The representative of Chinese Taipei than ked the Secretariat and the Parties for the Factual 
Presentation and announced that her delegation would request more information about trade 
remedies and would provide written questions after the meeting. 
1.14.  The Chairman said that the consideration of the Goods and Services Aspects of the Free 
Trade Agreement between the United States and Oman had allowed the Committee to clarify a 
number of questions and the oral discussion of this RTA could be concluded in accordance with WT/REG259/M/1 
 
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  paragraph 11 of the Transparency Mechanism. If any delegations wished to ask follow up 
questions they were invited to forward submission s in writing to the Secretariat by 30 June 2014 
and Parties were asked to submit replies in writing by no later than 14 July 2014. In accordance with paragraph 13 of the Transparency Mechanism all written submissions, as well as minutes of 
this meeting would be circulated promptly, in all WTO official languages, and would be made 
available on the WTO website. 
1.15.  The Committee took note of the comments made.  
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