Ambassador Adam Ereli Remarks at AmCham Luncheon (copy)
Al Fanar, Diplomat Radisson Hotel
February 24, 2008
What we can do to create jobs and Wealth in Bahrain
Thank you, Jeff. And may I add my voice to the welcome for Mr. David Chavern, Executive Vice President and COO of the U.S. Chamber of Commerce. We are delighted to have you with us today.
Ladies and gentlemen, it is truly an honor to be invited to speak to you. The American Chamber of Commerce and this forum have a very special significance for me. Your luncheon six months ago was among the first events I attended after arriving in Bahrain as Ambassador and that was no accident. I had been told by my predecessor and good friend, Ambassador Bill Monroe, of the hard work that had gone into forming the American Chamber here and the critical role that it played in strengthening commercial relations between Bahrain and the United States. Since that time, I have been able to see first-hand how right Bill was.
Last November, we hosted the GCC Investment Forum, along with the U.S. Chamber of Commerce, the Ministry of Industry and Commerce, the U.S.-Bahrain Business Council and the Arab-American Bankers Association of North America. Thanks in large part to the efforts of the AmCham's leadership, it was a great success, and demonstrated clearly what a dedicated and dynamic membership the American Chamber has. You have also shown considerable initiative and energy in developing business opportunities between our two countries. And perhaps most importantly, I know from working with leaders like AmCham President Khalid al Zayani and Jim Godec of First Leasing Corporation that you guys put you money where your mouths are. Nothing demonstrates credibility and commitment more than devoting your time and resources to a project you believe in.
So it is with a great deal of respect and admiration that I appear before you today. I thought what I would do in my remarks is offer some observations based on my admittedly short time here and share with you some thoughts on how the government and private sector can work together to promote economic development.
To begin with, I firmly believe that it is in America's vital national interest to increase trade and investment with Bahrain, and I say that for several reasons.
- First, because as a public servant, I can tell you that that's what the American taxpayer expects of its government and that's what we're paid to do.
- Second, because increased trade and investment has a cascade effect. It stimulates economic growth. It creates jobs. It generates wealth. It raises standards of living. In a global economy, as the people of Bahrain prosper, so do the people of the United States.
- Finally, there is a link between economic prosperity and political stability. People in any society want a better life for their children, and they look to their governments to create an environment that allows them to provide for that. To the extent that people believe they are being given a fair shot at opportunities to advance themselves, then that is all to the good. To the extent that people believe that they are being denied that opportunity, then we're going to have problems.
I would suggest to you, therefore, that for all these reasons, we should do everything we can to promote the kind of growth and opportunity that secures for the people of Bahrain a more prosperous and productive future. The Governments of Bahrain and the United States certainly see eye-to-eye on this issue. In fact, the Government of Bahrain is among the most forward-looking and visionary in the region when it comes to creating a policy framework designed to maximize openness, transparency, competitiveness, and productivity.
All of us -- and by that I mean not only the U.S. government and the Embassy here in Manama, but you, the business community and American Chamber - have a vested interest in helping these initiatives and policies to succeed.
Together, we have accomplished a great deal over the last several years in meeting this goal and you have every right to be proud of this record of achievement:
- Since the U.S.-Bahrain Free Trade Agreement went into effect a year and a half ago, two-way trade between the United States and Bahrain has more than doubled. 2007 figures reached an historic high of more than $1.2 billion.
- Several important companies have come to Bahrain because the terms of the Free Trade Agreement give them a competitive advantage. Kraft Foods, America's largest food manufacturer, chose to build a regional factory here because of the overall investment climate, of with the FTA is an integral part. The German automobile firm Ruf Auto is opening a production line at the Bahrain International Circuit precisely because under the terms of the Free Trade Agreement, it will be able to re-export its products to the United States tax-free. General Electric has expanded industrial activity at its regional center here because the Free Trade Agreement allows it to import components duty-free and re-export the enhanced products throughout the region. These investments have created hundreds of jobs for Bahrainis, and that means that we are making a positive and tangible difference not just to our bottom line, but to the lives of the people of this country.
- As I mentioned earlier, the leadership of this Chamber was instrumental in organizing the first U.S.-GCC Investment Forum last December. This ground-breaking gathering brought together government officials and business leaders from the United States and the Gulf to discuss investment policies and opportunities. His Highness the Crown Prince gave the keynote address and other high-level participants included Sheikha Lubna al Qassimi, the Minister of Trade and Development of the UAE and the CEO of the Carlyle Group. I spoke with a number of investment firms during the event, and they told me that the success of their trip here for this event helped convince them to set up offices in Bahrain.
- The American Chamber has provided critical support to senior-level business development missions from Bahrain to the between the United States and Bahrain. You helped organize last April's trade mission led by his Highness the Crown Prince. And hopefully, we'll be able to undertake a similarly successful trip this year.
- It is a measure of the strength and depth of our relationship that in February, Gulf Air chose Boeing Aircraft as its preferred partner for transforming the airline into a world-class, full-service national carrier. The deal to purchase 24 787 long-haul aircraft is in my view the perfect example of a strategic collaboration in which American and Bahraini partners team up to benefit the people of both countries. The operating efficiencies of these state-of-the-art aircraft, and the support that Boeing will bring, will increase profits, create jobs and help Gulf Air return to profitability and competitiveness.
In looking back on what we have achieved in support of increased trade and investment, we should be pleased .... but not satisfied. We have accomplished much, but there remains a lot more we need to do.
Bahrain's leadership has a dynamic and ambitious vision for transforming this country into a world-class competitor. Realizing this vision will require difficult and controversial measures. But as businessmen, you know that in today's world, standing still is moving backwards. If you're not innovating, you're losing. We also know that for many, change is difficult.
Th U.S. government and the American Embassy are committed to supporting Bahrain's economic reform program. I firmly believe that the American Chamber should do the same and I would like to share with you all some ideas about how we can help Bahrain to stimulate growth, create jobs and increase wealth.
- The first thing we need to do is to increase the number and volume of U.S. businesses that visit Bahrain. Those of us who live and work here know very well that Bahrain is a great place to invest. It has the region's best banking and finance regime. The quality of life compares favorably to that of its neighbors. Its location and transportation links make it an ideal place to do business with the rest of the Gulf.
- Unfortunately, for most businessmen based in the U.S., Bahrain is a far-away country in a dangerous part of the world. Because of their limited familiarity with the region, they see it as a high-risk/low return prospect. The truth, as we all know, is exactly the opposite. The best way to convince people of this is to bring them here so they can see the reality for themselves first-hand.
- We have todo a better job of creating events and finding other ways to showcase the wealth of opportunities that Bahrain has to offer.
- This year's second annual GCC Investment Forum will be one way to accomplish this goal. We need to improve on last year's performance by attracting top-tier investors from not only the United States, but throughout the Gulf as well. This year, we plan to add a day of policy discussions with government officials for the U.S. and the region. The members of this Chamber should commit themselves to ensuring that this event is a success. Our goal should be to make this annual conference a destination event. It should be for investment what the Manama Dialogue is for security -- the premier event for world leaders concerned with this vital region.
- Our second challenge is to fully exploit the FTA. We have to find ways to translate a policy document into business activity that produces tangible benefits for Bahrainis. Bahrainis need to see in concrete terms how the FTA is making their lives better -- how it is leading to more jobs, better services and higher standards of living. A year and a half after the FTA's implementation, many Bahraini businessmen that I have encountered still have little more than vague notions of how to take advantage of the FTA to grow their businesses and improve their bottom lines. The American Chamber can and should work with the Bahraini private sector to address this need.
- The third item on this action agenda is education. Developing Bahrain's human capital is essential to the long-term strength of this country, both its economy and its society. This is a top priority of His Majesty the King and his government. We as a business community need to actively and visibly support it.
- Specifically, I call on you to share with young people the keys to your success: a strong work ethic, a sense of fair-play, problem-solving skills, and a belief in the future. These are the keys not only to a successful business but to a responsible citizenry. How can you do this? With the will and a little creative thinking, there are lots of ways. For example, you can develop an internship program for high school or university students. Every year, the U.S. Embassy trains dozens of young people in English, but then at the end of the program, they have nowhere to go to apply their language skills. How about we organize a follow-on program with your businesses?
- Finally, the indispensable ingredient to all these initiatives is effective partnerships. The American Chamber needs to expand and exploit its working relationships with institutional partners both here and in the U.S. Attracting American investors, developing the FTA and contributing to education are not undertakings that the American Chamber can do on its own. You need strong partners to develop and implement program ideas. In the past year, I've seen how you've worked well with the U.S. Chamber, the U.S.-Bahrain Business Council and others. We need to expand this network to include the Bahrain Chamber of Commerce and Industry, schools, universities, charities and others here in Bahrain.
It is my hope that this action agenda --- putting on a landmark investment conference this October; increasing visits by American businesses to Bahrain; enabling local businesses to take advantage of the FTA; educating Bahrain's youth and developing flourishing partnerships with others --- will guide our work in the coming year.
As always, the American Embassy stands ready to help. We both, the American Chamber and the U.S. Embassy, owe it to Bahrain to do all we can to make the future brighter and more prosperous. It's not only the smart thing to do, it's the right thing to do. Thank you.