Muscat – Ministry of Commerce, Industry and Investment Promotion (MoCIIP) organised an event on Monday to commemorate the 15th anniversary of the signing of the Free Trade Agreement (FTA) between the Sultanate of Oman and the United States of America.

The celebration, in collaboration with the US Embassy in Oman, US State Department, Oman Chamber of Commerce and Industry (OCCI), and Oman American Business Council (OABC),  marked a significant milestone in bilateral relations.

The ceremony was attended by H E Qais bin Mohammed al Yousef, Minister of Commerce, Industry and Investment Promotion, Faisal bin Abdullah al Rawas, Chairman of OCCI, and several government officials, diplomats and businessmen from both nations.

Pankaj Khimji, Advisor for Foreign Trade and International Cooperation at MoCIIP, highlighted the key achievements of the Oman-US FTA, which was signed in 2006 and came into effect on January 1, 2009. The agreement eliminated tariffs on most goods, significantly boosting trade and transforming Oman’s trade balance with the US from a deficit of RO108mn in 2009 to a surplus of RO487mn in 2022. “The agreement also fostered US investment in Oman’s energy, logistics and infrastructure sectors, while contributing to Vision 2040 goals. It has led to substantial growth in non-oil sectors and provided SMEs better access to US markets.”

The FTA also enhanced Oman’s trade laws, aligning these with international standards and promoting transparency and innovation. Additionally, it has contributed to job creation, enhanced workforce skills, and positioned Oman as a regional logistics hub, particularly through its strategic ports like Duqm and Salalah. It facilitated greater collaboration in education and science, with exchange programmes such as Fulbright supporting academic research and cultural exchange. The agreement has helped foster partnerships in fields like aquaculture and advanced science and technology.

US Ambassador H E Ana Escrogima spoke about the significance of the FTA, noting how it has deepened trade relations and provided a strong foundation for future economic collaboration. She acknowledged the contributions of H E Hunainah al Mughairy – Oman’s ambassador to the US from 2005 to 2020 – who played a crucial role in the FTA. H E Ana added that US FDI in Oman increased 36.3% last year, positioning the US as Oman’s second-largest foreign investor. She expressed optimism for the future of US-Oman relations, particularly in sectors such as space exploration, education and business.

According to Jose W Fernandez, US Undersecretary of State for Economic Growth, Energy and the Environment, US-Oman bilateral trade has consistently exceeded US$3bn annually since 2021. US companies have contributed significantly to job creation and skill development in Oman’s oil and energy sectors. The US has invested US$13bn in Oman’s infrastructure, energy and technology sectors as of Q2 2024.

While reflecting on the success of the FTA and the invaluable insights shared during the anniversary celebration, Rebecca Olson, CEO of OABC, expressed her pride in the continued partnership between the US and Oman, which has not only benefited both economies but also strengthened the ties between their people.