NUR International Sees Proliferation of Free Trade Agreements with the Middle East; FTAs Create Growth Opportunities for US Businesses.

CHICAGO -- NUR International, a consulting firm that helps companies expand into the Middle East, announced that it sees significant growth opportunities for US companies resulting from the proliferation of Free Trade Agreements with Middle Eastern countries. In addition to reaping the benefits of Free Trade Agreements (FTAs) with individual countries, NUR International says US companies should prepare now to take advantage of the proposed Middle East Free Trade Area (MEFTA), which the Bush Administration seeks to be created by 2013.

The FTAs, and eventually MEFTA, are designed to increase trade and investment with the US and the Middle East by reducing and eliminating barriers to trade. US companies directly benefit through additional export opportunities, access to new markets for their goods and services, and expanded opportunities for foreign direct investment. FTAs were a key topic in a speech last week by Jordan's Ambassador to the US, His Excellency Karim Kawar, at a lunch hosted by NUR International in Chicago. Ambassador Kawar told the audience of corporate executives that many expansion opportunities for their businesses exist as a direct result of FTAs, which, among other trade enhancements, significantly reduce tariffs and quotas. Jordan was one of the first Middle East countries to have an FTA with the US. Under the FTA with Jordan, signed in 2000, tariffs and quotas for many goods will be completely phased out over the next few years.

FTAs represent an advancement in international trade regulations over to the Qualified Industrial Zone (QIZs) that were previously established in Jordan and other Middle East countries in the late 1990s and early 2000s. QIZs are designated zones in industrial parks where goods manufactured in those zones can be exported to the US quota and duty free. US companies already taking advantage of Jordan's FTA and QIZ include many textile and clothes manufacturing companies with brand names such as Kenneth Cole, Ralph Lauren, Wal-Mart, JC Penny's, Sears, Brooks Brothers, HartMarx, Liz Claiborne, Perry Ellis, Calvin Klein, Victoria's Secret and Sara Lee.

In addition to reducing quotas and duties on goods for export, the FTAs encourage import and direct investment by US companies. Before signing an FTA, the US sets out guidelines for countries to improve in a number of areas such as intellectual property rights, financial accountability, labor laws and environmental standards.

Other Middle East countries are following Jordan's FTA lead. Morocco's FTA will take effect in 2006, followed by Bahrain and Oman. Negotiations are also underway for an FTA with UAE. In addition, according to US Trade Representative Rob Portman, the US is considering signing FTAs with four Middle East countries including Qatar and Egypt, where the US has seen progress with the Egyptian government's recent financial reform policies.

Regarding the creation of a regional MEFTA, the Bush administration is proposing a plan of graduated steps for each country to achieve FTA status: 1) join WTO (World Trade Organization); 2) sign TIFA (Trade and Investment Framework Agreement; 3) sign BIT (Bilateral Investment Treaties); and 4) conclude with FTA.

According to Chari Aweidah, Managing Director of NUR International, the proliferation of FTAs is representative of major economic reform taking place throughout the Middle East and North Africa. "The Middle East is rapidly becoming more conducive to US business. Now is the time for US companies to become proactive participants in one of the world's wealthiest, most developed and underappreciated emerging markets."

Many US companies have already profited from the improving Middle East business environment and FTAs in particular. For Hewlett Packard, one of Bahrain's largest technology providers, the FTA will immediately remove taxes on products such as printers and computers. Citigroup, which has been present in Bahrain for over 30 years as a financial services company, also stands to benefit greatly from the FTA, according to a Citigroup spokesperson, who added, "Bahrain is perfectly positioned to serve as the economic gateway to the Gulf." In addition to tapping other Middle East markets, some US companies use Bahrain and other Middle East countries as a low-cost gateway to service markets in Europe and Asia.

About NUR International

NUR International is dedicated to growing US businesses by tapping the huge potential of the Middle East and North Africa (MENA). Based on decades of experience in the MENA region, it provides a full array of consulting services aimed at geographic expansion, market development and acquisitions. More information can be found at www.nurinternational.net.