A cornerstone of the growing relationship between the US and Bahrain will be the establishment of a formal Free Trade Agreement. Much in the way that the NAFTA has fostered growth and free trade between the US, Canada and Mexico, the US-Bahrain FTA (USBFTA) will seek to establish similar open channels of business to the Arabian Gulf. The agreement will have long-term and far-reaching multiplier effects on bilateral trade and investment, deepening the ties between the two countries and enhancing economic opportunities for both.
Overall, the USBFTA will establish regulatory discipline and high standards for competition, transparency, customs and trade facilitation, intellectual property protections, labor rules, environmental policies and further efforts to deepen the use of technology and facilitate globalization.
The USBFTA will be the first step toward additional global agreements with our neighboring countries. American business will see immediate benefit from the 36 bilateral trade agreements that Bahrain has already entered with other nations in addition to the historic relationships and agreements Bahrain shares with GCC countries. Bahrain has signed a free trade agreement (FTA) with Thailand and is currently negotiating a FTA with Singapore.
Ultimately, despite the relatively small size of the Bahraini market, substantial new international markets will arise for American goods. In the long term, a USBFTA will guarantee that the historically beneficial relationship between the US and Bahrain will not only continue, but grow.
“An FTA with Bahrain will promote the President’s initiative to advance economic reforms and openness in the Middle East and the Persian Gulf, moving us closer to the creation of a Middle East Free Trade Area.”
Robert B. Zoellick
U.S. Trade Representative
