27 June 2004

MANAMA - The draft texts of the recently-signed Bahrain-US Free Trade Agreement (FTA) were released here simultaneously by the Ministry of Finance and National Economy and the Office of the US Trade Representative, making all the 21 chapters of the FTA available on the website.

The FTA consists of chapters as follows: Initial provisions and definitions; market access; textile and apparel; rules of origin; customs administration; sanitary and phytosanitary measures; technical barriers to trade; safeguards; government procurement; cross-border trade in services; financial services; telecommunications; e-commerce; intellectual property rights; labour; environment; transparency; administration of agreement; dispute settlement; exceptions and final provisions.

Bahrain and the US signed the FTA late last month in Washington, taking comparatively very short time.

The US-Bahrain FTA is expected to generate export opportunities for US goods and increase access for US services providers, creating jobs for US farmers and workers.

US goods exports to Bahrain in 2002 totalled $419.2 million, including aircraft, machinery, vehicles, pharmaceutical products, and toys, games and sports equipment. Agricultural commodities that would benefit from an FTA include US meats, fruits and vegetables, cereals, and dairy produce.

The government of Bahrain believes that the FTA will benefit the economy of the Kingdom, as well as generate a large number of job opportunities to Bahrainis and create a strong market for Bahraini goods in the US, the Minister for Finance and National Economy, Abdulla Saif has underline here.

Under the agreement Bahraini suppliers will be granted national treatment and non-discriminatory access to bid on contracts from 59 US Central Government entities and Government-owned enterprises. Similarly, US suppliers will have access to bid on contracts from 30 Bahrain Government entities.

As a result of the liberalisation of trade in goods under the Agreement, 96 per cent Bahrain industrial and agriculture products will receive immediate duty-free access to the US markets upon entry to force of the agreement while goods under three other categories will have different duty structures.

Accordingly, Bahrain will provide immediate duty-free access to all US industrial and agricultural products, with the exception of 80 products of which the duties will be phased out over a period of 10 years.

Textiles and apparel products will receive immediate duty-free access, as long as they meet the rules of origin requirements (i.e. products contain either US or Bahraini yarn and fabric).

As part of the agreement, each government reaffirms its obligations as members of the International Labour Organisation (ILO), and commits to strive to ensure that its laws provide for the highest labour standards. It also makes clear that it is inappropriate to weaken or reduce domestic labour protections to encourage trade or investment.

Furthermore, each government will be required to effectively enforce its labour laws, and this obligation is enforceable through the Agreement's dispute settlement procedures. Procedural guarantees guarantee workers and employers access to fair, equitable and transparent labour tribunals of courts.

As a result, a Labour Cooperation Mechanism is established to promote higher labour standards and to further advance common commitments, including the principles embodied in the June 1998 Declaration on Fundamental Principles and Rights at Work, and compliance with ILO Convention 182on the Worst Form of Child Labour.

The agreement covers the most updated international standards for copyrights, patents and trademark-related commitments to lock-in intellectual property protections and enforcement to deter counterfeiting and piracy. It builds on the foundations established in the World Trade Organisation (WTO) Agreement on Trade-Related Aspects of Intellectual Property (TRIPS Agreement) and other international agreements, such as the World Intellectual Property Organisation (WIPO) Copyright Treaty, the WIPO Performances and Phonograms Treaty, and the Patent Cooperation Treaty.

The minister noted that the Agreement establishes rules affirming the fairness, transparency, and predictability of government procurement procedures.

Under the agreement Bahraini suppliers will be granted national treatment and non-discriminatory access to bid on contracts from 59 US Central Government entities and Government-owned enterprises. Similarly, US suppliers will have access to bid on contracts from 30 Bahrain Government entities.

The thresholds for government contracts covered by the Agreement are $175,000 for procurement of goods and services, and $7.6 million for procurement of construction services.

Further, Bahraini and US suppliers will have increased certainty due to enhanced disciplines on procurement procedures, such as requiring advance public notice of purchases, as well as timely and effective bid review procedures.

US goods exports to Bahrain in 2002 totalled $419.2 million, including aircraft, machinery, vehicles, pharmaceutical products, and toys, games and sports equipment. Agricultural commodities that would benefit from an FTA include US meats, fruits and vegetables, cereals, and dairy produce.

On the other hand, Bahrain's goods exports to the United States in 2002 totalled $395.1 million, including articles of apparel and clothing accessories, aluminum, fertilisers, organic chemicals, mineral fuels and oils, plastics, and electrical machinery.

All those interested in the details of the recently-signed Bahrain-US Free Trade Agreement (FTA) are welcome to visit the newly-created web site http://www.fta.gov.bh/>www.fta.gov.bh, the Ministry of Finance and National Economy has said here, calling on people to make inquires and send comments by using the Internet. 

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© Khaleej Times 2004