Duty free access: Optimistic Bahrain awaits US response

Manama : Thousands of jobs in the Bahraini fabrics and textile industry are at stake, if the United States authorities refuse to extend a trade agreement with the Kingdom in a period of four months.

Bahrain is seeking the extension of the Tariff Preference Level (TPL), due to expire on July 31. Under TPL, stipulated by the Free Trade Agreement (FTA) signed by Bahrain and the US, textiles exported from Bahrain to the US are exempted from tariffs.

During the weekly meeting, the Cabinet directed Industry, Commerce and Tourism Minister Zayed bin Rashid Al Zayani and Foreign Affairs Minister Shaikh Khalid bin Ahmed Al Khalifa to follow up the matter.

Speaking at the weekly post-Cabinet briefing yesterday, Al Zayani said, “The fabrics and textile industry is an important field in Bahrain and it’s more important when it comes to exporting these products to the US. 

“Though it’s not the biggest share of our exports to the US, it forms 25 per cent of Bahrain’s exports to the States. That’s less than aluminium exports. Yet, it’s a key factor in our exports.

“We have four more months to figure out a solution. Currently, there are final attempts to extend the agreement. There are no commitments or promises given to us, but we haven’t lost hope yet,” Minister Al Zayani added.

Speaking about the fate of thousands of employees in the industry, the Minister said, “In worst situations, we’ll be cooperating with Labour and Social Development Ministry and the Labour Fund (Tamkeen) to rehabilitate the Bahraini employees in the industry and accommodate them in the local labour market.”

“Some of the factories in Bahrain are mainly depending on the European market and won’t be affected by the expiry of this agreement. They recently shared their intention to expand their production. So, we’re working with them to accommodate the workers, especially Bahrainis, since they’re trained and experienced in this field,” he explained.

“The US rejection to renew the agreement comes as the textiles industry has been undergoing immense pressures during the past few years due to competition, mainly from East Asian exporters. They have lost up to 1.5 million jobs in this field. Manufacturers applied pressure on the US administration and legislators to end dealing with TPL agreement. This included other exporters to the US, such as Nicaragua, Morocco and Oman,” the Minister added.