President Signs into Law Implementing Legislation for the U.S.-Bahrain FTA
On January 11, 2006, President Bush signed into law H.R. 4340, the "U.S.-Bahrain Free Trade Agreement Implementation Act" (Act).
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U.S. government sources have previously stated that once H.R. 4340 is enacted, the U.S. and Bahrain can exchange diplomatic notes, and the President can issue a proclamation implementing the U.S.-Bahrain free trade agreement (FTA).
U.S.-Bahrain FTA furthers President's goal of a MEFTA by 2013. According to a White House press release, the U.S.-Bahrain FTA is a significant step in furthering the President's goal of creating a Middle East Free Trade Area (MEFTA) by 2013. The press release states that through MEFTA, the U.S. seeks to expand trade with and investment in Middle East countries to further their domestic reforms and the rule of law, protect intellectual property, and create a foundation for economic growth and prosperity. Since the President announced MEFTA in May 2003, the U.S. has completed FTAs with Bahrain, Morocco, Oman; initiated FTA talks with the United Arab Emirates (UAE); assisted in the accession of Saudi Arabia to the WTO; and signed six Trade and Investment Framework Agreements (TIFAs) with Middle East countries, among other initiatives.
According to a previous House Ways and Means Committee advisory, the market access commitments in the U.S.-Bahrain FTA would immediately eliminate duties on nearly all current bilateral trade in consumer and industrial products. Bahrain would also provide immediate duty-free access for U.S. agricultural products in 98 percent of its agricultural tariff lines. Under the agreement, both nations would eliminate tariffs on any remaining products within 10 years. The agreement also provides strong protections for intellectual property and one of the highest levels of access for the U.S. services industry in any FTA to date.
Highlights of H.R. 4340
According to a Congressional summary, H.R. 4340, among other things (partial list):
approves the U.S.-Bahrain FTA and the statement of administrative action proposed to implement it;
authorizes the President to proclaim actions, and other appropriate officers of the U.S. government to issue regulations, necessary to ensure appropriate implementation of any provision of the Act that takes effect on the date the U.S.-Bahrain FTA enters into force;
provides for (1) administration of dispute settlement proceedings; and (2) specified tariff modifications; and
prescribes requirements for (1) enforcement of textile and apparel rules of origin; (2) actions for relief from imports benefiting from the U.S.-Bahrain FTA; and (3) certain textile and apparel safeguard measures.
(See ITT's Online Archives or 12/15/05 news, 05121505, for BP summary on Congressional passage of H.R. 4340.
See ITT's Online Archives or 09/17/04 news, 04091705, for BP summary on the signing of the U.S.-Bahrain FTA, including highlights of the U.S.-Bahrain FTA.)
H.R. 4340 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h4340pcs.txt.pdf.
White House press release (dated 01/11/06) available at http://www.whitehouse.gov/news/releases/2006/01/20060111-1.html.