U.S. Trade Representative Rob Portman and His Excellency Maqbool bin Ali Sultan, Oman’s Minister of Commerce and Industry, signed the U.S.-Oman Free Trade Agreement this week which will open a new market for corn and corn products while eliminating tariffs and barriers. National Corn Growers Association (NCGA) Chairman Leon Corzine said this is good news for corn growers who want to be competitive and increase their market access across the globe.

Oman Free Trade Agreement Benefits Corn Industry, NCGA Notes (1-20-06)

This week the United States and Oman signed a free trade agreement (FTA) that will open a new market for corn and corn products while eliminating tariffs and barriers. National Corn Growers Association (NCGA) Chairman Leon Corzine said this is good news for corn growers who want to be competitive and increase their market access across the globe.
 
"Corn growers have been working hard towards setting policies that open new markets for our products long term. Now we have a chance to work with a country that is continuing to move in a positive direction on free and fair trade,” said Corzine. “We  have the opportunity to prove the Middle East and the United States agricultural industries can work together to benefit each others’ economy. We must ensure that producers in this country and in Oman reap the maximum benefit from this agreement."
 
The senior-level Agricultural Policy Advisory Committee, of which Corzine is a member, concluded in their report to the U.S. Trade Representative (USTR) that, agriculture exports will grow significantly because of this FTA. They reported that the Oman FTA would: increase opportunities for U.S. agricultural exports through the elimination of tariff and non-tariff barriers; provide immediate duty-free access for current U.S. agricultural exports in 87 percent of agricultural tariff lines; provide immediate duty-free access for 100 percent of Oman’s current exports of agricultural products to the United States. and Oman and the United States will phase out tariffs on the remaining products within 10 years.

According to the USTR Rob Portman, “Oman will provide substantial market access across its entire services regime, provide a secure, predictable legal framework for U.S. investors operating in Oman, provide for effective enforcement of labor and environmental laws, and protect intellectual property.” 

Portman also noted this agreement is the first step in promoting peace through trade, ending political instability and bring an end to economic stagnation.
 
One hundred percent of bilateral trade in industrial and consumer products will become duty-free immediately upon entry into the Agreement.
 
“Agriculture is not the only industry that will see benefits from this agreement. Each sector of Oman and the United States will see economic and environmental rewards. This is a good deal for the citizens of each country. We encourage Congress to move swiftly in ratifying this agreement with Oman,” said Corzine.
 
Two-way goods trade between the United States and Oman was $748 million in 2004. U.S. goods exports to Oman in 2004 totaled $330 million, including machinery, automobiles, optic and medical instruments, and electrical machinery. U.S. exports of agricultural products to Oman in 2004 totaled $20 million, including vegetable oils, sugars, sweeteners and beverage bases.

The next step will be to work toward approval of the FTA by Congress this spring.