Foreign investors 'can tap US market benefits'

23/12/2014 07:19 AST

Foreign investors have been told that by setting up manufacturing in Bahrain, they can get duty-free access to the US market, provided they add 35 per cent domestic content within the kingdom.

At a panel discussion hosted by the American Chamber of Commerce Bahrain (AmCham Bahrain), visitors to the Arab-Asia Business Partnership Summit heard that duty free import of US products and supplies benefits manufacturers in Bahrain who are selling in the Middle East and North Africa and Asian markets as well.

An independent, private, non-profit, non-political business association, AmCham Bahrain was formed in 2006 to capitalise on the newly-implemented Free Trade Agreement (FTA) between the US and Bahrain.

The FTA allows Bahraini suppliers of goods and services to be more competitive in the US market.

Bahraini manufactured goods which qualify under the agreement will afford buyers considerable cost savings in terms of import duty.

Bahraini exporters also have a competitive advantage in the US over competing third country exporters that do not have the duty benefits provided under the FTA.

It also fosters a fair process for US government procurement.

AmCham Bahrain president Qays Hatim Zu'bi said that while the FTA has certainly boosted trade between the US and Bahrain, it is widely felt that the agreement can be better utilised by more companies, especially small and medium enterprises (SMEs).

'AmCham is now looking to raise awareness and help SMEs better understand the process for using the FTA by connecting them to available resources both in Bahrain and the US,' he added.

Last year, total US-Bahrain goods trade was $1.6 billion, US Ambassador to the World Trade Organisation Michael Punke said at the WTO's Trade Policy Review of Bahrain and Oman in April this year in Geneva.

In 2005, before the FTA was signed, US exports to Bahrain were $350.8 million and US imports from Bahrain were $431.6m, the Economic Development Board (EDB) has said.

Moderated by FinMark Communications managing director and AmCham Bahrain board member Zahraa Taher, the panel featured JBF Bahrain senior general manager Chandramouli Upadrasta, EDB manufacturing and logistics business development manager Ryaan Sharif and multinational apparel manufacturing company MRS Fashions' executive director Harinder Lamba.

In 2006, the company exported 4m units of apparel per year, which has now gone up to 10m units, said Mr Lamba.

JBF Bahrain is an India-listed company that will soon be producing polyester film at the Bahrain International Investment Park primarily for the US market.

The summit and the panel discussion were held at the Bahrain International Exhibition and Convention Centre.

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