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U.S. Embassy Marks Second Anniversary of the Free Trade Agreement
On August 1, 2008 the U.S. Embassy marked the second anniversary of the Bahrain-U.S. Free Trade Agreement (FTA). In a statement released on July 30, 2008 Deputy Chief of Mission Christopher Henzel highlighted the overall growth in trade, the 2007 U.S.-Gulf Investment Forum, and direct investment in Bahrain by American and international companies taking advantage of the FTA. Mr. Henzel also highlighted trade in the services sector as an emerging growth area of the FTA. Second Anniversary FTA Statement (English / Arabic) Since the FTA entered into force two years ago, bilateral trade between the U.S. and Bahrain has grown to an all time high - more than $1.2 billion by the end of 2007. In 2007 alone, trade increased by $109 million. In the first five months of 2008 bilateral trade was valued at over $540 million, signaling a continuing growth trend. In the two years that the FTA has been in force, several prominent U.S. and international companies have made significant investment in the Bahraini economy, creating hundreds of jobs and generating millions of dollars in trade. In 2006, Kraft Foods built a regional factory in Bahrain that produces and distributes products throughout the region. German automobile firm Ruf Auto is opening a production line at the Bahrain International Circuit, taking advantage of the U.S. market access that the FTA offers. General Electric has expanded its industrial activity at its Bahrain regional center because the FTA allows it to import components duty-free and re-export enhanced products throughout the region. Foreign Direct Investment in Bahrain for 2006 and 2007 were among the highest levels ever recorded. In 2007, Bahrain hosted the first ever U.S.-GCC Investment Forum, focusing attention on foreign direct investment between the United States and the GCC. Bahrain plans to host the upcoming conference in October 2008, which will serve to further promote the advantages the FTA offers to spur even greater growth. Deputy Treasury Secretary's remarks at the 2007 Forum One of the most exciting opportunities that the FTA offers to U.S. and Bahraini businesses is expanded trade in the services sector. It provides one of the highest degrees of market access of any U.S. FTA, and covers areas such as audiovisual services, express delivery services, telecommunications, computer services, healthcare, construction, architecture and engineering. The FTA allows businesses to operate in a cross-border fashion, with or without establishing a local presence. This feature of the agreement is particularly well suited for financial sector companies seeking to provide services such as insurance, data processing, financial information, and financial advising - again in either country.