Remarks by Charge d’Affaires Christopher Henzel
FTA Seminar
May 6, 2009 at 9:00am
Ritz Carlton Hotel; Manama, Bahrain
Good Morning,
I would like to thank their Excellencies Dr. Hassan Fakhro, Minister of Industry & Commerce, Sheikh Mohammed Bin Isa Al Khalifa, Chief Executive of Bahrain's Economic Development Board, and Dr. Essam Fakhro, Chairman of the Bahrain Chamber of Commerce and Industry, for co-hosting this event with the United States Government and for all the work they have done to develop the trade relationship between Bahrain and the United States.
I want to begin today by commenting briefly on the status of the trade relationship between our two countries. For many years, the trade relationship between the U.S. and Bahrain has been strong and growing. Today, the U.S. is Bahrain's number two destination for non-oil related exports, and number four in origin of imports. In 2006 total bilateral trade surpassed the $1 billion mark for the first time. By 2008 total trade exceeded $1.34 billion -- an increase of 24% in just three years, and this despite the worldwide economic slowdown of the past year. While some of this growth can be directly attributed to the FTA, much of it is a result of years of choices that have transformed Bahrain into a leader in the region.
The free-trade agreement between our countries was not the beginning of our trade relationship, it was a natural outcome - an affirmation of the wise decisions that Bahrain's leaders have been making for years. These decisions have given Bahrain one of the strongest legal and regulatory frameworks in the region and a welcoming business climate.
Despite the attention that we have all given to the FTA, I believe that it is still somewhat misunderstood. More than two years after entering into force, many businessmen and women still have little idea of how to take advantage of the FTA. It is important to note that the FTA does not create economic growth on its own. The FTA provides opportunities - opportunities to grow existing businesses and develop new ones.
I am often asked what government officials are doing to implement the FTA. And this is at the heart of the misunderstanding -- we don't need to implement the FTA, it is already fully in force. We need to exploit the opportunities that the FTA presents. We must find ways in which real business activity can take advantage of the FTA's benefits. People need to recognize the FTA for what it is - a great opportunity.
Although already substantial, the benefits of the FTA are just beginning to be seen. The next several years should see significant growth as businesses become fully aware of the advantages of the FTA. The objective of this seminar is to better inform Bahraini businesspersons in this regard and educate them about the FTA and the opportunities that it provides. One such opportunity is franchising, which has a low barrier to entry and is a tested business concept. We are pleased to have a representative from the International Franchise Association here today to discuss these opportunities with you.
Over the past two years, the U.S. and Bahraini governments have actively sought to support and expand programs related to the FTA. The U.S. has engaged with the Environmental and Wildlife Commission to improve understanding of environmental provisions in the agreement. Studies have highlighted economic benefits and identified specific sectors prime for further development. And technical training has been conducted in areas such as customs enforcement, intellectual property rights, and labor issues.
Today's seminar is one more example of how the U.S. and Bahraini Governments are seeking to engage the private sector, bringing experts on various issues here to learn about your needs, answer your questions, and help you do business with American companies. I am pleased that our friends from the U.S. Small Business Administration are here today to tell us about their efforts to promote small business development in the United States and to launch a MEPI-funded program here in Bahrain to help women in business. Also, today we will discuss and make available a comprehensive resource for businessmen -- an FTA toolkit - that will assist those businesses wanting to take advantage of the opportunities provided by our free trade agreement.
Bahrain's economy may be relatively small today, but it is growing fast. We need more work and programmatic efforts to create effective partnerships between American and Bahraini businesses that will attract new investment and take advantage of the opportunities presented by the free trade agreement.
I look forward to continuing to work with our partners here in Bahrain to grow our trade relationship and showcase the opportunities that the FTA provides American and Bahraini businesses alike. I hope you will enjoy this seminar over the next two days and find it helpful.
Thank you.