Bahrain: Prepare for FTA, traders warned
Gulf Daily News, Bahrain
31 July 2004
Prepare for FTA traders warned
By TARIQ KHONJI
BUSINESSMEN are being urged to do their homework with regard to Bahrain’s upcoming Free Trade Agreement (FTA) with the US.
The FTA is expected to be passed by Bahraini and US legislators by early next year, which means businessmen should take time to build contacts with US companies, a senior source at the Finance and National Economy Ministry said.
They are also being advised to carefully read the terms of the agreement.
"The agreement is long, but it is important that businesses know what opportunities it offers them," said the source, who asked to remain anonymous.
"The FTA opens up the whole US market to Bahraini companies, offering unlimited opportunities."
The draft texts of the agreement are available online at www.fta.gov.bh.
"I know it’s very long, but it’s not necessary for businessmen from all sectors to read the whole thing from beginning to end," said the source.
"If you are, for example, an engineering services company, you don’t have to read the section on apparel and textiles, but you do have to read the section on services."
The Finance and National Economy Ministry will be working to help establish contacts among Bahraini and American companies with the support of business groups.
These include the Bahrain Chamber of Commerce and Industry, the Bahrain Businssmen’s Association, the Bahrain Businesswomen’s Society, the Bahrain Bar Association, the Bahrain Society of Engineers and others.
"Professional societies should also lobby for setting up standards for various industries, including licensing and rules and regulations," the source continued.
"These standards should be in place for American companies to enter the market and also to improve general standards.
"We don’t want, for example, low quality US firms to flood the market and hurt local companies."
The FTA also allows Bahraini companies for the first time to offer services in the US without actually setting up operations there.
"Executive and professional training programmes are also necessary to improve the standards of local companies so that they can do business in the US marketplace," said the source.
