Bahrain maintained cordial trade relations with countries like the US, Singapore, etc. Some of the trade agreements are discussed below
United States – Bahrain FTA
The US-Bahrain Free Trade Agreement, which went into effect on January 11, 2006, expands export options for the US while also providing jobs for American farmers and workers. The pact also helps Bahrain’s economic and political reforms and strengthens trade ties with an Arabian Gulf economic leader. On the first day after the agreement became effective, all two-way commerce in industrial and consumer products commenced tariff-free movement. Farmers in the United States have expanded their agricultural exports to Bahrain as a result of the FTA. Bahrain also opened its services market wider than any previous FTA partner, presenting significant new opportunities for financial service providers and companies that provide telecommunications, audiovisual, express delivery, distribution, healthcare, architecture, and engineering in the United States
The US-Bahrain Joint Committee (JC), co-chaired by the US Trade Representative’s Office and Bahrain’s Ministry of Industry and Commerce, is the primary supervisory body for the Agreement.
The FTA between the United States and Bahrain advances the Middle East’s policy of economic reform and liberalization. The Bilateral Investment Treaty (BIT) between the United States and Bahrain, which went into effect in May 2001, covers investment problems between the two countries.
Bahrain – GAFTA
GAFTA was founded in 1997 as a pan-Arab free trade zone. Bahrain, Egypt, Iraq, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, and the United Arab Emirates were among the 14 countries that created it. Following the adoption of the “Agreement to Facilitate and Develop Trade Among Arab Countries” (1981) by the Arab League’s Economic and Social Council (ESC) and the approval of the “Greater Arab Free Trade Area Agreement” by seventeen Arab League member-states at a summit in Amman, Jordan, GAFTA was formed (1997). Algeria became the eighteenth member of GAFTA in 2009. The ESC supervises and manages GAFTA.
By implementing the following conditions, the members participate in 96 percent of total internal Arab trade and 95 percent of trade with the rest of the world:
- Instruct the inter-customs fees: The 14 Arab governments reported their custom tariff programs to the Arab League’s Security Council to coordinate them to lower customs on Arab products by 10% annually. Syria has been granted an exemption and is subject to the Brussels tariff system.
- Using the locality of Arab products: All members have shared their standards and specifications to make it easier for their products to migrate from one country to the next. The League has also developed a scheme to implement the Arab Agriculture Pact, which aims to harmonize agricultural standards while also introducing some limits and stipulations. The Arab League granted six members exceptions, allowing them to pay a lower customs rate for a variety of items; however, Morocco, Lebanon, and Jordan refused requests for more exceptions.
- Private sector: The League developed a database and a service to educate and promote the benefits of the private sector.
- Communication: At its sixty-fifth meeting, the Economic and Social Council agreed to establish a contact base to facilitate communication between member nations and to work on easing interaction between the commercial and public sectors to advance the Greater Arab Free Trade Area.
- Customs Duties: At its sixty-seventh meeting, the Economic and Social Council agreed to maintain a 40% reduction in customs on goods over the previous four years of the GAFTA and to work toward eliminating all customs duties on local goods following the decisions made at the Amman summit.
GCC-Singapore FTA (GSFTA)- Bahrain
Bahrain has maintained diplomatic ties with several nations since its independence from the United Kingdom. Singapore is one such key strategic relationship. Since the signing of their first Free Trade Agreement in 1978, the two countries have had close ties.
The GCC-Singapore FTA entered into force on September 1, 2013.
FTAs are designed to increase and foster trade between countries, and the GSFTA has done just that. The GSFTA permits goods from the Gulf Cooperation Council to enter Singapore’s market duty-free. The deal also removes 99 percent of tariffs on Singaporean exports to the Gulf Cooperation Council countries. Customs processes, rules of origin, and government procurement are all covered by the GSFTA.
