Performance Goal Statement: By September 30, 2017, countries in the Middle East and North Africa will enter into and implement accords and protocols that facilitate increased trade and investment.
Performance Goal Overview
Unsustainable fiscal policies, challenging business environments, and political instability in the MENA region all hinder increased trade and investment. The United States will promote the economic reforms necessary to combat those challenges, including helping countries to improve their public financial management, undertake regulatory improvements, transition to more targeted and efficient social safety nets, and improve government transparency and accountability. The United States will also pursue bilateral and multilateral measures to reduce trade barriers and promote the region’s integration into the global economy, including trade and investment framework agreements, bilateral investment treaties, and implementation of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA). Progress on these efforts will lead to increased trade and investment, ultimately creating jobs, facilitating economic stability, and laying the foundation for broad-based economic growth in the region. Businesses in the United States will benefit from expanded trade and investment opportunities created by improved business climates and more open markets. Because trade and investment are affected by regional and domestic stability, improved governance and transparency, and the rule of law, measuring progress on this performance goal can also provide an indirect indication of broader trends in the region.
Performance Goal Progress Update
Trade is a major factor in almost all job growth success stories. However, weak integration with the global economy prevents the MENA region from benefiting from global markets, sources of innovation, competition, and investment. Promoting the development of additional trade capacity and the enabling domestic conditions needed to support expanded investment remain a priority for the U.S. government. Unwavering U.S.
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Strategic Goal 2: Strengthen America’s Foreign Policy Impact On our Strategic Challenges
commitment to Israel’s security is a longstanding cornerstone of U.S. policy in the Middle East. The
United States is committed to ensuring that Israel is able to defend itself against a wide range of conventional and unconventional threats. U.S. assistance helps ensure that Israel maintains its qualitative military edge (QME) over potential regional threats, preventing a shift in the security balance of the region and safeguarding U.S. interests. U.S. assistance to Israel is aimed at ensuring that Israel is sufficiently secure to take the historic steps necessary to reach a peace agreement with the Palestinians and for comprehensive regional peace.
Economic growth and inclusive prosperity fueled by private sector development, increased investment, and inclusive employment are fundamental to regional stability. As Secretary Kerry has stated, building a new stability in the Middle East requires providing clear and appealing alternatives to violent extremism. These alternatives must address economic prosperity and development in the region.
As such, a focus of U.S. government programming is supporting the transition of MENA countries from relatively closed political and economic systems to more open societies that are better able to take advantage of, and benefit from, global markets. The Administration is currently pursuing three protocols in the region: 1) the Gulf Cooperation Council Trade and Investment Framework Agreement (GCC-TIFA); 2) a Bilateral Investment Treaty (BIT) with the Government of Kuwait; and 3) developing a roadmap for a Free Trade Agreement with Tunisia.
Meanwhile, discussions with a host of other countries in the region are also occurring. USAID continues to provide technical assistance to support regional partners in meeting their commitments to the WTO Trade Facilitation Agreement through two regional pilots.
The security situation in the Middle East remains a challenge to private sector growth and development, and growing unemployment rates pose a threat to the security and stability in many countries in the region. At the same time, there is also strong demand in the region for business development services and job creation programming that imparts relevant, marketable skills, particularly for the region’s large youth population. In FY 2015, USAID and MEPI programming supported private sector growth to promote expanded and equitable employment opportunities, in the MENA region. Programming focused on strengthening market linkages, improving access to capital for small and medium enterprises, and supporting job creation through demand-driven vocational training and job matching programs. Workforce development programming presents a continued opportunity to reinforce economic gains and provide youth with the skills needed to effectively enter the labor market and contribute to private sector growth and development throughout the region.
Key Indicator: Number of country programs that aim to decrease youth unemployment rates FY 2013
Baseline FY 2014 FY 2015 FY 2016 FY 2017
Target N/A 7 7 7 7
Result 7 7 7
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Strategic Goal 2: Strengthen America’s Foreign Policy Impact On our Strategic Challenges
Indicator Analysis
FY 2015, USAID met its target of implementing demand-driven workforce development programming in seven countries in the MENA region, with a focus on decreasing youth unemployment rates. Programs were
implemented in Egypt, Iraq, Jordan, Lebanon, Yemen, Tunisia, and West Bank/Gaza. In the next fiscal year, USAID will continue to implement workforce development programming in these countries in support of expanded and equitable employment opportunities in the MENA region and decreased youth unemployment rates.
Similarly, MEPI supported demand-driven workforce development programming in Tunisia, Egypt, and Yemen in FY 2015; and it will support similar programming in Algeria, in addition to Egypt and Tunisia. MEPI programming in FY 2015 supported private sector growth and development through programs aimed at improving access to finance in Egypt, expanding franchising opportunities in Tunisia, and improving company registration procedures in Jordan, Morocco, Bahrain, and Kuwait.
Indicator Methodology
Indicator data was provided by the Economic Growth Team in USAID’s Middle East Bureau.
Key Indicator: MENA region Trade Accords and Protocols
FY 2014 FY 2015 FY 2016 FY 2017
The purpose of this indicator is to track any and all agreements, binding and non-binding, that advance U.S.
trade goals in the region. This includes intra-regional trade and trade between the U.S. and MENA countries. In FY 2015, exploratory talks for a Trade and Investment Framework Agreement (TIFA) were conducted with Tunisia, Egypt, Qatar, and the GCC – each of these talks being at varying stages. For instance, the USG is
encouraging Tunisia to continue with a range of economic reforms that may eventually put them in a position to negotiate a free trade agreement. While there are multiple lines of effort that could be used to satisfy reporting requirements, this indicator currently reflects three lines of effort: the Office of Regional and Multilateral Affairs in the Bureau of Near Eastern Affairs (NEA/RMA), the U.S. Trade Representative (USTR), and the Bureau of Economic Affairs (EB).
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Strategic Goal 2: Strengthen America’s Foreign Policy Impact On our Strategic Challenges
Indicator Methodology
Data source: This information was provided by NEA/RMA and EB (with confirmation by the USTR).
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