USTR Notifies Congress of Intent To Initiate Free Trade Talks With Bahrain

Released by the Office of the United States Trade Representative
Executive Office of the President
Washington, DC
August 4, 2003

Contact: Richard Mills / Ricardo Reyes | (202) 395-3230

WASHINGTON - United States Trade Representative Robert B. Zoellick today formally notified Congress of the Administration's intent to initiate negotiations for a free trade agreement (FTA) with Bahrain in January 2004.

"An FTA with Bahrain will promote the President's initiative to advance economic reforms and openness in the Middle East and the Persian Gulf, moving us closer to the creation of a Middle East Free Trade Area. A U.S.-Bahrain FTA will build on the FTAs that we already have with Israel and Jordan, as well as the FTA we are currently negotiating with Morocco," wrote Zoellick in the letter to Congressional leaders.

"It has been almost one year since the President secured Trade Promotion Authority from the Congress so as to get the tools to open markets with FTAs and negotiations in the WTO [World Trade Organization] and Free Trade Area of the Americas (FTAA). Last week, Congress completed favorable action on our two new FTAs with Singapore and Chile. We are in the midst of negotiations on FTAs with Morocco, Australia, five nations in Central America, and five nations in southern Africa," said Zoellick today regarding the notification. "Today, the Administration is building on this momentum by announcing our intent to start free trade talks with Bahrain and the Dominican Republic."

Under the Trade Act of 2002, which renewed special procedures for approving trade agreements, the Administration must consult with the Congressional Oversight Group (COG) and notify Congress in writing of its intent to negotiate trade agreements. Zoellick met with the COG Thursday, July 24, to discuss the Administration's intent to initiate FTA negotiations with Bahrain. A copy of the letters that Zoellick sent to the Speaker of the House and the President Pro Tempore of the Senate can be found on the USTR website (www.ustr.gov).

An FTA with Bahrain is an important step in implementing the President's initiative to advance economic reforms and openness in the Middle East and to establish a Middle East Free Trade Area by 2013. U.S. goods exports to Bahrain in 2002 totaled $419.2 million, including aircraft, machinery, vehicles, pharmaceutical products, and toys, games and sports equipment. Agricultural commodities that could benefit from an FTA include U.S. meats, fruits and vegetables, cereals, and dairy products. Bahrain's goods exports to the United States in 2002 totaled $395.1 million, including articles of apparel and clothing accessories, aluminum, fertilizers, organic chemicals, mineral fuels and oils, plastics, and electrical machinery.

U.S. Efforts to Promote Trade Globally, Regionally and Bilaterally:
According to a recent Cato Institute Paper by Dan Griswold, the markets opened through the recently completed Chile and Singapore FTAs, the ongoing Morocco, Central America (CAFTA), South African Customs Union (SACU), and Australia FTA negotiations, and the proposed Bahrain FTA negotiations, taken together as a group would constitute the 4th largest U.S. export market and the world's 9th largest economy in terms of purchasing power.

In early 2001, the United States began to pursue a strategy of promoting trade liberalization globally, regionally and bilaterally. The United States helped launch the ongoing World Trade Organization (WTO) negotiations, called the Doha Development Agenda, and has put forward bold proposals in agriculture, services and goods to spur the talks forward. Along with its co-Chair Brazil, the United States is leading the effort to complete the Free Trade Area of the Americas on schedule, and is hosting the next FTAA Ministerial in Miami.

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