FTA Would Expand U.S. Exports to Key Regional Economic
Hub
WASHINGTON - U.S. Trade Representative Robert B. Zoellick joined
Representatives Paul Ryan (R-WI) and Jim Turner (D-TX) in the launching of the
Bahrain Congressional Caucus today on Capitol Hill. Also in attendance were Bahrain’s
Minister of Finance and National Economy Abdulla Hassan Saif and representatives from the
U.S.-Bahrain FTA Business Coalition, which is co-chaired by Alcoa and Citigroup and
currently has 50 members. The launch of the Bahrain Congressional Caucus coincides
with the second round of FTA negotiations between the United States and Bahrain,
which started March 1 in Washington, D.C.
"The successful conclusion of a high quality U.S.-Bahrain FTA will
expand export opportunities for America’s farmers, workers and businesses and
improve U.S. access to a regional economic hub," said Zoellick. "Today’s launch of the
Bahrain Congressional Caucus is a clear signal of the strong support in the Congress for
an FTA with Bahrain."
"Last May President Bush proposed an initiative for creating
prosperity, opportunity and hope in the Middle East and the Gulf Region, leading to the
establishment of a Middle East Free Trade Area (MEFTA) by 2013," said Zoellick. "An FTA with
Bahrain, following the FTA with Morocco that we completed yesterday, would
be a strong step in moving that vision forward. Bahrain has shown that it is committed
to reform, and we are equally committed to joining with them in opening markets."
Bahrain is part of U.S. efforts to expand trade bilaterally. New
and pending FTA’s, taken together, constitute America’s third largest export market and the
sixth largest economy in the world.
Negotiations on the U.S.-Bahrain Free Trade Agreement commenced in
January 2004 in Bahrain and should be completed before the end of this year. The
FTA negotiations include thirteen working groups: Services, Financial Services,
Telecommunications and E-Commerce, Sanitary and Phytosanitary Measures (SPS),
Environment, Government Procurement, Legal, Technical Barriers to Trade (TBT), Customs,
Market Access (both industrial and agricultural products), Intellectual Property
Rights (IPR), Textiles, and Labor. The U.S.-Bahrain FTA Business Coalition represents a broad
range of industries including construction, energy, services, autos, pharmaceutical,
information technology, and defense companies.
Background
U.S.-Bahrain Free Trade Agreement
U.S. goods exports to Bahrain in 2003 totaled $509 million,
including aircraft, machinery, vehicles, pharmaceutical products, and toys, games and
sports equipment. Agricultural commodities that could benefit from an FTA include
U.S. meats, fruits and vegetables, cereals, and dairy products. The U.S. is seeking to
eliminate tariffs and other duties on trade between Bahrain and the United States on the
broadest possible basis, improve intellectual property rights protection, and eliminate
barriers in Bahrain’s services markets. Bahrain’s goods exports to the United States in
2003 totaled $378 million, including articles of apparel and clothing accessories,
aluminum, fertilizers, organic chemicals, mineral fuels and oils, plastics, and
electrical machinery.
Since beginning a robust economic dialogue with the United States
in June 2002, Bahrain has joined the WTO Information Technology Agreement, committing it
to zero tariffs in computer, telecommunications and related products, provided an
open environment for electronic commerce, taken initial steps to join and implement the
World Intellectual Property Organization (WIPO) Internet treaties, and pledged to
treat agricultural biotechnology fairly. Bahrain has also liberalized its
telecommunications market and passed legislation for transparent government procurement and
labor rights. An FTA will support continued economic reform and investment opportunities in
Bahrain, as well as Bahrain’s commitment to transparency, openness and the rule of
law.
