ENHANCING ECONOMIC STABILITY THROUGH INTERNATIONAL COOPERATION: THE IMPLEMENTATION OF THE U.S.-OMAN FREE TRADE AGREEMENT IN DIVERSIFYING OMAN'S ECONOMIC IN NON-OIL SECTOR

Abstract

This article analyzes Oman's diversification efforts in the non-oil sector in the free trade agreement (FTA) with the U.S. by using the concept of international cooperation to analyze the objectives of each country and the benefits gained by each country in the agreement. Seeking to reduce its dependency on oil exports and imports, Oman signed a free trade agreement with the U.S. to revive its textile and apparel industry, which had been decimated by the elimination of quotas. The implementation of the FTA especially focusing on the yarn-forward rule of origin will be scrutinized as an effort to diversify Oman's economy through the FTA with the U.S. Oman's strategic geography also makes it one of the US's efforts to implement this free trade agreement which is in line with Bush's goal to develop a spreading economic growth ambition and strengthening democracy promotion in the Middle East. Although tariff reduction is not the primary focus of this FTA, there has been an increase in US-Oman export activities during the period from 2014 to 2017.