3RD ANNIVERSARY OF FTA.

MANAMA, SEPT. 30 (BNA) THIS MONTH MARKS THE THIRD ANNIVERSARY OF THE IMPLEMENTATION OF THE U.S. BAHRAIN FREE TRADE AGREEMENT (FTA). NOW IS A GOOD TIME TO ASK, WHAT HAS THE AGREEMENT PRODUCED FOR THE TWO COUNTRIES? IN 2005, BEFORE THE AGREEMENT WENT INTO EFFECT, BILATERAL TRADE BETWEEN BAHRAIN AND THE UNITED STATES TOTALED 782 MILLION DOLLARSS, THIS WAS PUBLISHED AT BAHRAINI DAILY. AT THE END OF 2008, AND DESPITE THE GLOBAL RECESSION, BILATERAL TRADE TOTALED 1.37 BILLION DOLLARS. THIS IS AN INCREASE OF 75 PERCENT AND REPRESENTS REAL, POSITIVE CHANGE. MUCH OF THIS GROWTH IN TRADE WAS IN MANUFACTURED GOODS, HEAVY MACHINERY AND FERTILIZER. SINCE 2006, THE TEXTILE SECTOR WITNESSED A 150 PERCENT INCREASE IN BAHRAINI EXPORTS TO THE U.S. DESPITE THESE SUCCESSES, MANY BAHRAINIS WANT TO KNOW HOW THE FTA HAS IMPROVED THEIR DAILY LIVES AND THEIR OWN ECONOMIC WELL-BEING. FIRST OF ALL, THE INCREASE IN BILATERAL TRADE HAS BOOSTED BAHRAIN'S GDP OVERALL, AND THIS GROWTH IN ECONOMIC ACTIVITY BENEFITS EVERYONE. SECONDLY, BECAUSE THE FTA REMOVED ALL IMPORT TARIFFS, BAHRAINI BUSINESSES AND CONSUMERS ARE ABLE TO PURCHASE U.S. GOODS AT CHEAPER PRICES. AS A RESULT, BAHRAINI BUSINESSES BOTH LARGE AND SMALL HAVE NETTED SUBSTANTIAL PROFITS, REGARDLESS OF WHETHER THE COMPANY HAS HUNDREDS OF EMPLOYEES OR LESS THAN FIVE EMPLOYEES. THESE COMPANIES ARE DIVERSE AND INCLUDE BUSINESSES IN TEXTILES, MANUFACTURING, AND RETAIL. CONSIDER FOR EXAMPLE A MEDIUM-SIZE BAHRAINI TEXTILE COMPANY. IN 2005, THE TEXTILE SECTOR IN BAHRAIN WAS IN RECESSION. THIS COMPANY, WITH 250 EMPLOYEES, WAS NEAR BANKRUPTCY. SINCE THE FTA WENT INTO EFFECT AND ELIMINATED ALL TARIFFS ON BAHRAINI TEXTILE EXPORTS TO THE U.S., THIS COMPANY'S EXPORTS HAVE INCREASED BY 30 PERCENT AND EMPLOYMENT HAS GROWN TO OVER 300 EMPLOYEES. ACCORDING TO THE PRESIDENT OF THIS COMPANY, THE FTA IS THE REASON THAT THEY ARE STILL IN BUSINESS TODAY.

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