US happy with UAE's progress on reforms

The UAE's progress in terms of economic reforms and trade liberalisation has been praised by Robert B. Zoellick, US Trade Representative.

"The US wants to firm up free trade agreements with countries of the Middle East, including the UAE," he said on Wednesday evening.

The rapid progress would enable the FTA with the UAE to be signed that much sooner, the US official said.

Zoellick's statement gains significance in the context of the Trade and Investment Framework Agreement (Tifa) the US has signed with the UAE and Oman a few months ago.

The signing of Tifa provides a forum for the US to examine ways to expand bilateral trade and investment, and can be used as a forum to launch negotiations for the final free trade agreement (FTA).

The US is understood to be very keen to sign FTAs with countries in the Middle East.

While the FTA signed with Jordan has already become law, the formalities with Morocco have been completed and ratified by the US Congress.

In the case of Bahrain, the formalities have been completed but ratification by Congress is still awaited.

The US already has Tifas with Egypt, Algeria and Tunisia.

In addition, it has made progress with the WTO accession of Saudi Arabia and Algeria.

During his visit to the UAE, Zoellick met American business leaders and with prominent UAE leaders.

"The US FTAs are high quality, cutting edge agreements that can play an important role in stimulating economic growth and development over time," he said.

Both the UAE and Oman have expressed interest in deepening their economic relationship with the US, including the FTAs, he added.

Trade figures

US exports to the UAE in 2003 were worth about Dh12.88 billion ($3.5 billion) and comprised machinery, aircraft, vehicles, and electrical machinery and optical and medical instruments.

The US exports of agriculture products to the UAE totalled Dh953 million ($259 million) in 2003.

On the other hand, US imports from the UAE totalled Dh4.05 billion ($1.1 billion) and comprised oil products, woven apparel and knit apparel.