Middle East and United States Economic Trade Relations

Since 2003, The United States has attempted to increase trade with the Middle East, due to the increasing competition of China and Europe. The potential opportunities in the expanding regional Middle Eastern market create an environment for trade. Though political Five countries, Bahrain, Isreal, Jordan, Morocco and Oman, have adopted the bilateral trade agreement creating select free trade areas in the Middle East and North Africa (Shaikh, 2007). The World Trade Organization with support from the United States, has been working on agreements with Lebanon, Algeria, and Yemen, and also began strengthening dialogues with other key trading partners in the region, including Egypt and Saudi Arabia ("Middle east free," 2007). However, The United States and the Middle East have been unable to reach a complete synergy within these markets.

The Middle East is dependent on foreign goods since their main production and manufactured good is oil. Conversely, The United States is dependent on the importation of oil. Including imports and exports, U.S trade with the Middle East reached $158 billion in 2007. The United States exports about $55 billion worth of products to the Middle East (Shaikh, 2007). Most of these products are machinery, vehicles or aircrafts. The Middle East, as a semi-industrialized economic region of countries, continues to offer potential opportunities.

The United States uncovered a potential market for export after the political unrests in the Middle Eastern region (Schortgen, 2011). Food exportation is another large part of the United States trade international, especially in the Middle East where farming is unpredictable and difficult to produce such commodities as corn, wheat, soy beans and other grains. In order to maintain some political stability, many countries sought to increase surpluses of food for their people while the outside world feared the worst. The United States surplus of these goods leads to low prices for trade as well as tariff elimination is imperative to price reduction. These two factors how the United States has been able to provide cheap food.

However, Due to the FTA, The increase of foreign food imported into the Middle East has damaged the local farmers. The United States has been able to infiltrate the food market due to the eliminated tariffs of the agreement. The local agrarian community is unable to respond to the competition of these foreign produces since the agricultural environment is seemingly despondent.

Middle East has had troubles with stability politically and socially. The current governmental protests have made the regions too unstable and risky for companies to enter which hampering further economic growth. Though these coup d’états may bring new power and thoughts, creating a better and brighter democratic future.

Racial and Religious tensions may be historical battles, but now are current day street battles, making the Middle East a harsh environment to work within. Israel, a part of the MEFTA, is in constant turmoil because of the conflict with Palestine. Increasing infrastructure and creating economic goals are difficult to create when the leaders are aligned with the fight.

In the next 10 years the United States looks to create a peaceful environment where free trade is possibility ("Middle east free," 2007). The Middle Eastern Arab States plan on implementing a custom union, in order to increase trade, and economic power within the region. The plan will come into effect in 2015, promising increased well being for the region. With the unemployment rate and poverty as low as 40% in some underdeveloped parts of the region, the entrepreneurial efforts are attempted to be supported.

Unfortunately at this time, The Middle East is at a disadvantage to increase trade due to political and social implications. The United States has found potential markets to increase exports with the region. Free Trade Agreements have benefited the Middle East but also has had had negative recourse. Hopefully, these new agreements within the countries will lead to a better relationship with regional countries, the World Trade Organization, and international trade.

^{(2007). Middle east free trade area initiative (mefta). Retrieved from Office of United States Trade Representative website: http://www.ustr.gov/trade-agreements/other-initiatives/middle-east-free-trade-area-initiative-mefta}

^{Agence France Presse. (2010, February 12). Arabs urged to speed up economic integration.The Daily Star, Retrieved from http://www.dailystar.com.lb/Business/Middle-East/Feb/12/Arabs-urged-to-speed-up-economic-integration.ashx}

^{Schortgen, K. (2011, January 28). Demand for us food exports to grow as food riots spur middle east turmoil continue reading on examiner.com demand for us food exports to grow as food riots spur middle east turmoil - national finance examiner | examiner.com http://www.examiner.com/finance-examiner-in-national/demand-for-us-food-exports-to-grow-as-food-riots-spur-middle-east-turmoil}

^{Shaikh, A. (2007). Bilateral accords and u.s. trade with the middle east: A track record of success. Retrieved from Department of Commerce website: http://trade.gov/press/publications/newsletters/ita_0408/middle-east_0408.asp}