The free trade agreement contains reciprocal commitments, cooperation agreements and customs rules, including: the first phases of free trade negotiations between Bahrain and the United States date back to 1999, with the signing of a bilateral investment treaty (ILO) that came into force on 31 May 2001. This is the first treaty of its kind signed between the United States and a gcc member and aims to stimulate the flow of private investment between the two countries. Both sides agreed that a stable investment framework would maximize the efficient use of economic resources and improve living standards. A year later, a Framework Agreement on Trade and Investment (TIFA) was signed on 18 June 2002, a prelude to the free trade negotiations. TIFA was conceived as a forum for an ongoing bilateral dialogue on economic reforms and trade liberalization. The U.S. Senate approved the legislation by vote on December 13, 2005. On January 11, 2006, President George W. Bush signed the USBFTA Implementation Act (Pub.L. 109-169 (text) (pdf)). [2] [3] The free trade agreement was implemented on 1 August 2006 and will remove some barriers to trade between the two countries. [4] Free trade agreements are international agreements that encourage trade in imports and exports between countries. In general, free trade agreements remove barriers between countries, so that participants can comply with agreed laws and be treated as foreign citizens in trade transactions.
Bahrain is the first member of the Gulf Cooperation Council (GCC) and a third Arab country to have a free trade agreement with the United States. In 2019, imports amounted to USD 836 million and exports from this agreement to USD 792 million. Bahrain is a member of the World Trade Organization (since 1995) and the Gulf Cooperation Council. Bahrain has bilateral trade and economic agreements with more than 40 countries, including China, France, India, Singapore, the United Kingdom, the United States and the 17 Arab countries that are affiliated with the Greater Arab Free Trade Agreement. The Arab Arabia Free Trade Area (GAFTA) is a pan-Arab free trade area designed to promote economic integration and trade in the Arab world. It removes trade barriers and strengthens intra-regional transactions while promoting competition in domestic markets.