Bahrain TV Interview with Deputy Chief of Mission Christopher Henzel
Bahrain TV: Bahrain and the United States have enjoyed a long standing bilateral relationship that dates back more than 100 years, when the American Mission Hospital was first established. A cornerstone of the growing relationship between Bahrain and the United States was the implementation of the U.S.-Bahrain Free Trade Agreement, or FTA, the first between the United States and a Gulf Arab country, and the third with an Arab state.
Mr. Henzel: "It has been two years now since the free trade agreement went into effect between the United States and Bahrain. There have been important benefits for both countries under the agreement. It has brought benefits especially in trade and investment for Bahrain. We have seen an increase in the bilateral trade between the two countries, up 55% over the last two years, which is pretty impressive. In certain key sectors the growth has been even more impressive."
Bahrain TV: The FTA, which took effect on August 1st, 2006, following a decree from His Majesty King Hamad bin Isa Al Khalifa and a proclamation by U.S. President George W. Bush on its implementation, provided immediate duty free access to 100% of consumer and industrial products. The implementation of the FTA had a positive impact on Bahrain's national economy and as the financial capital of the Middle East, it boosted the Kingdom as the gateway to the gulf. It liberated the trade of 69 Bahraini agricultural and industrial products, which were exempted from customs duties in U.S. markets.
Mr. Henzel: "Bahrain's exports of fertilizers to the United States have increased by 101%, Bahrain's exports of textiles to the United States have increased by 150% in the last year. These are two very important sectors for Bahrain's economy, and I think there is a lot of promise for further growth in these sectors. In addition to trade, the agreement has brought to Bahrain the benefits of foreign direct investment by new companies; there are also foreign companies that were already present in Bahrain which increased their investment because of the agreement."
Bahrain TV: The FTA also outlined bilateral cooperation in financial, banking, communications, e-trade, insurance, government purchases, and intellectual property rights. It is also expected to create new job opportunities and new investment ventures. As expected the private sector has been a key partner in the FTA, by entering into partnership with the U.S. companies operating in the Kingdom in the domains of goods and services to enhance domestic production, attract investment, boost the competence of national products in the U.S. market, and reinforce Bahrain's position in the re-export of goods.
Adel Al Safar, American Chamber of Commerce - Bahrain: "Bahrain has all of the infrastructure (it needs) to be the hub in the region, this FTA agreement is a great added value for Bahrain. At the same time, there is a great opportunity for the business community to expand their businesses outside this region. The U.S. is a huge market. If the Bahrain business community takes advantage of this FTA, and set up joint business activity... that enable it to penetrate the U.S. market, there is definitely great potential.
Bahrain TV: Benefits also accrued on the U.S. side as well. The FTA also benefited American workers, manufacturers, consumers, farmers, ranchers, and service providers. This new trade opening expanded opportunities for exports of aircraft, machinery, vehicles, pharmaceuticals, and agricultural products such as meat, fruits and vegetables, cereals and dairy products.
Mr. Henzel: "There have been a number of companies that have come to Bahrain precisely because of the agreement. Westpoint Homes invested approximately $200 million in Bahrain when it came here. Kraft Foods has created 250 jobs here in Bahrain. I'm optimistic there will be more growth in all of these companies."
Bahrain TV: The Free Trade Agreement between Bahrain and the United States has given a significant boost to bilateral trade between the two countries, and the trend is expected to continue.
Manama, Bahrain
July 31, 2008