Middle East Trade and Engagement Act of 2003 - Authorizes the President to designate any of 20 specified Middle Eastern countries as a beneficiary country if the country meets specified requirements, which focus on economic policy, the rule of law, alignment with U.S. trade and foreign policy interests, the promotion of human rights, and combating terrorism. Authorizes the President to designate the Palestinian Authority as a beneficiary country if it satisfies specified requirements, including cooperation in anti-terrorism efforts and the acceptance of Israel's right to exist.
Authorizes the President to designate articles from all beneficiary countries, including Israel and Jordan, as eligible for duty-free treatment, subject to rules of origin requirements and certain restrictions under existing law.
Requires the President to establish a United States-Middle East Trade and Economic Cooperation Forum.
Declares that bilateral free trade agreements should be negotiated with interested countries or political entities in the greater Middle East. Requires any country or political entity that desires to negotiate such an agreement with the United States to be a member of the World Trade Organization (WTO) or working toward WTO membership and to satisfy the criteria for designation as a beneficiary country. Directs the President to develop a plan for negotiating and entering into trade agreements with interested beneficiary countries.
Terminates the preferential treatment extended to beneficiary countries under this Act on December 31, 2011.