Reports are coming out that the US-Oman Free Trade Agreement (signed in 2006) is finally coming into foce on the 1st of January 2009. It took almost two years for the congress to approve the agreement and for Oman to ensure that its legal system was updated to ensure that Oman perform its obligations under the agreement.

The purpose of the agreement is to remove all trade barries between the two countries and to grant natioanl treatment for traders from each country in all sectors. The agreement also includes a chapter on trade that has similar provisions to a billateral investment treaty.

Not sure how quickly it will take us to notice the impact of the FTA, but I suspect that participation of American companies in public tenders will be instant.

MUST READ: FTA summary here.

You can read the full text here.