During his visit to the Middle East in January, President Bush spoke of the new era that is unfolding in the region: an era defined by freedom and justice; an era where people can build a better future for themselves and their families. The United States believes that trade and investment are strategic tools for building a peaceful and prosperous future, and I am in Jordan this week to work with government and private sector leaders to enhance those tools.
In addition to important bilateral meetings, I am participating in the U.S.-Middle East and North Africa Trade and Investment Conference, a collaboration between the U.S. Department of Commerce, the Business Council for International Understanding and the U.S.-Jordan Business Alliance.
We are grateful to His Majesty King Abdullah and the people of Jordan for hosting this important conference, which aims to further intra-regional trade and investment, and spark new opportunities for economic prosperity and growth.
Today, this region is writing the next chapter in its centuries’ old history, with the promise of hope, opportunity and progress for the rising generation of talented young people. The United States wants to be partners with you in creating this new beginning.
The World Bank reports that economic growth in the region is strong and rising. Many Middle East and North Africa economies are benefiting from the surge in oil prices. Infrastructure in the region is changing, nations are investing in their citizens, and doors are opening to foreign trade and investment.
The United States supports these efforts. Since President Bush took office, free trade agreements (FTA) with Jordan, Bahrain and Morocco have been implemented, and an FTA with Oman has been signed. These agreements clear the path to greater economic engagement and growth. Our agreement with Jordan exemplifies this. Since the implementation of the U.S.-Jordan Free Trade Agreement in 2001, two-way goods trade increased from about $568 million to $2.0 billion in the first 11 months of 2007.
Jordan’s annual real GDP growth grew 44.4 percent from 2001 to 2007. Jordan is a regional success. In opening markets, liberalizing trade, and fostering freedom, entrepreneurial spirits are unleashed and quality of life increases.
The United States is encouraged by the movement toward economic freedom seen throughout the region, but further steps must be taken to invite closer economic ties. Capital is attracted to a fair, stable and open environment and companies around the world will look first for a favorable business climate.
Market access remains an essential issue. Tariff and non-tariff barriers, red tape, burdensome regulations, delays in clearing goods, and transparency concerns work against establishing stable trade relationships.
Rule of law is also an important part of a business-friendly environment. Executives and investors want to know that the playing field is level, and the rules won’t change in the middle of the game.
Openness to investment is also a mark of economic freedom and progress. Foreign direct investment promotes growth and is an important source of innovation, exports and jobs. In the U.S., we actively promote foreign investment, which has resulted in a record $2 trillion of foreign long-term investment. And, while some may be concerned about the U.S. review process, the fact is that since 2000, the Committee on Foreign Investments in the U.S. has reviewed only about five percent of potential deals.
We believe that openness to trade, investment and people is a great asset to any country. We applaud the trade liberalization that is taking place throughout the region and look forward to the day when the U.S.-Middle East Free Trade Area initiative is realized.
We believe the harmonization of regional investment laws and regulations will promote more intra-regional trade, benefiting the region’s business community, and creating a a more cohesive, large market to attract outside investment.
The value of enhanced trade and investment relationships, however, goes far beyond the economic benefits. Trade and investment help build democracies and trust. Trade and investment help support educational, health, and social programs that elevate people and communities.
Importantly, at the bottom line, trade and investment help create growth, and with growth all things are possible. The United States looks forward to working as friends and partners to create a Middle East-North Africa region that is a thriving center of freedom, peace and prosperity.
Source: U.S. Department of Commerce
