WT/TPR/M/294/Add.1  
1 July 2014  
(14-3772)  Page: 1/60  
Trade Policy Review Body 
22 and 24 April 2014 Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  TRADE POLICY REVIEW 
THE KINGDOM OF BAHRAIN  
MINUTES OF THE MEETING 
Addendum 
Chairperson: H.E. Mr. Joakim Reiter (Sweden) 
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by the Kingdom of Bahrain.1 
 
 
Organe d'examen des politiques commerciales 
22 et 24 avril 2014 
EXAMEN DES POLITIQUES COMMERCIALES 
BAHREÏN  
COMPTE RENDU DE LA RÉUNION 
Addendum 
Président: S.E. M. Joakim Reiter (Suède) 
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses fournies par Bahreïn.1 
 
 Órgano de Examen de las Políticas Comerciales 
22 y 24 de abril de 2014 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
B
AHREIN  
ACTA DE LA REUNIÓN 
Addendum 
Presidente: Excmo. Sr. Joakim Reiter (Suecia) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por Bahrein.
1 
                                               
1 In English and Spanish only./En  anglais et espagnol seulement./En inglés y español solamente. WT/TPR/M/294/Add.1 
 
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TRADE POLICY REVIEW OF 
QATAR, THE KINGDOM OF BAHRAIN AND OMAN 
22 AND 24 APRIL 2014 
Replies from the Kingdom of Bahrain to advance written questions 
QUESTIONS FROM AUSTRALIA 
 
Report by the Secretariat - WT/TPR/S/294 
 SUMMARY 
Sectoral policies 
Page 7-8, Paragraph 16 
Australia notes that important legislation has entered into force on maritime transport to align the 
sector with international practices.  Could Bahrain please provide information on the key legislative 
changes? 
 Answer: 
 
Bahrain is at the final stages of drafting a new national maritime legislation which will encompass all aspects on maritime transportation and in line with international practices. It is expected, this legislation will be discussed and finalised during  2014. A copy of the final legislation will be 
submitted to the international maritime organization IMO 
 3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.4.2.2 Measures affecting production an d trade / Standards and other technical 
requirements / Sanitary and phytosanitary measures Page 38, Paragraph 3.76 
How does Bahrain work with the Gulf Standards Organisation (GSO) in standards setting under the 
Gulf Cooperation Council (GCC). Of particular interest is how Bahrain demonstrates WTO principles of transparency and trade partner participation through the standards setting process.   
It would also be of interest to other WTO countries if Bahrain could include information on its 
continuing work to align food standards with Codex Alimentarius, ISO, and other international organizations and how trading partners could be more engaged in the drafting process.  
 
Answer:  
Bahrain has been a founder member of the Gulf Standardisation Organisation (GSO) since 2003. 
Since then, the country has participated actively in several of the Gulf technical committees and sub-committees. Bahrain has held the secretariat ship of the Gulf Technical committee for Mechanical Products and its Sub-committee for Motor Vehicles and Tyres. 
 
Bahrain’s policy in standardisation activity is to rely on developing standards and technical regulations at regional level in order to serve the requirement of the GCC Customs Union and 
Single Entry Point plus the GCC industries. Theref ore all the resolutions related to the standards 
development activity are being adopted and implemented on a national level.   
Bahrain’s Participation in the standardisation process is accessible to all interested parties from 
private industrial and trade sectors, government and professionals from universities and others 
through representation at standards gulf technical committees, sub-committees and working 
groups or through the public comment process as appropriate. Any interested party may initiate 
new work proposals for standardisation or comment on draft standards or existing standards. 
 
Bahrain Standards & Metrology Directorate (BSMD) formulated technical committees in the fields 
of (chemical products and Textile, Mechanical products, electrical and electronic products,  
Metrology, food and agriculture products, construction & building materials, petroleum and gas WT/TPR/M/294/Add.1 
 
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  and Technical Information). These committees are formulated parallel to Gulf Technical 
Committees and they contribute to the following: 
 
Proposal of the unified GSO draft standards and tec hnical regulations of high priority and an urgent 
need. 
 
 Participation in the work of GSO technical committees, sub-committees or task groups. 
 Contributing to study and comment on GSO draft standards and technical regulations 
projects during the given period. 
 
To fulfil the implementation of Paragraph J of the Code of Good Practice obligations on transparency, BSMD publishes its annual work programme under this link 
http://www.moic.gov.bh/En/Commerc e/StandardizationConsumerPro tection/StandardsMetrologyDi
rectorate/Working%20Program/Pages/Working%20Program.aspx. The Standards development processes are  transparent and consensus, rely ing on the contributions, expertise and the 
participation of  interested  stakeholders who work together to produce gulf  regional or Bahraini 
Standards that is practical, timely and relevant.  4 TRADE POLICIES BY SECTOR 
4.2.1 Agriculture / Policy Objectives 
Page 45, Paragraph 4.14  
How does the government provide food support to all persons in Bahrain? Is this support through 
domestic price restrictions on retailers, or export restrictions to flour and meat (similar to fish)?  
Answer: 
 Food support is provided through the mechanism of subsidised prices for local consumption of flour milled in Bahrain, imported fresh and chilled meat and poultry produced by Delmon Poultry 
Company in Bahrain. Subsidised food Items are prohibited to be exported.  
 4.5.2 Services / Telecommunications 
Page 57, Paragraph 4.91 
 Australia notes that Bahrain introduced important changes with respect to market competition in 
the telecommunications sector, which has led to the issuance of new licences in the sector.  Could 
Bahrain please provide information on the key changes made to its market competition policy and its impact, if any, on foreign telecommunication services suppliers?  
Answer: 
 Paragraph 4.91 of the WTO report refers to the issuance of 2 national fixed wireless 
licences in 2007 (to Zain and Menatelecom), an d a third mobile licence in 2009 (to Viva, 
a subsidiary of the Saudi incumbent STC). The decision to issue the new NFW licences 
was taken by the TRA Board in 2006, in order to introduce more competition in the 
supply of fixed services in Bahrain, and the de cision to issue a third mobile licence was a 
result of TRA’s Strategic and Retail Market Review (completed in June 2008), which 
identified a need for greater competition in what had up until the time been a mobile duopoly. 
 
The deployment of Wimax-based networks under the NFW licences, and the entry of 
Viva as the third mobile network operator, has had a significant pro-competitive effect 
in Bahrain. For example, in 2008, DSL accounted for 81% of mass-market fixed 
broadband subscriptions in Bahrain, wi th the remaining 19% being Wimax-based 
services. By 2012, the DSL share had fallen to 28% and Wimax had increased to 72%. 
In 2011, standalone mobile broadband overtook  Wimax as the main technology used to 
supply broadband services in Bahrain, and accounted for more than 50% of broadband 
subscriptions by the end of 2013. Batelc o’s retail share of mass-market broadband 
services has fallen from 70%-80% in 2008, to 20%-30% in 2012. As a result, TRA 
recently issued a determinatio n that Batelco is no longer dominant in the supply of 
mass-market broadband services, due to vigo rous competition from mobile broadband 
and Wimax-based competitors (see WT/TPR/M/294/Add.1 
 
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  http://www.tra.org.bh/media/document/MC D%2003%2014%20018%20Fi nal%20SMP%20and%2
0Dominance%20Determination%20Broadband%20PV.pdf ). As a result, Batelco is no longer  
subject to ex ante  regulation at either the retail or the wholesale level in respect of the 
supply of mass-market broadba nd services in Bahrain. 
 
4.5 Services / Transport / Road and railway transport Page 62, Paragraph 4.125 
 
Australia notes that one of the main policy goals of  the Ministry of Works is to continue to expand 
road infrastructure.  Could Bahrain please explain whether it sees a role for foreign participation in its expansion of road infrastructure? 
 
Answer:  
There are no restrictions on foreign participation in general infrastructure works in the Kingdom of 
Bahrain. Please see attached Annex for further details  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3.3 Measures directly affecting exports / Ex port prohibitions, restrictions and licensing 
Page 32-33, Paragraph 3.49 & Table 3.7 &  
4 TRADE POLICIES BY SECTOR 
4.2.1 Agriculture / Policy Objectives Page 45, Paragraph 4.14 
 
Bahrain’s Ministry of Industry and Commerce prohibits exports of all flour as subsidised goods; fresh chicken of trademark “Delmon” as subsidised goods; and red meat as subsidised goods. 
Table A1.2 (page 67) also reports that “Live animals and products” contributed 0.9 per cent of 
merchandise exports in 2011.  Section 4.14 (page 45) states that domestic agricultural production is also subsidised. The 
G o v e r n m e n t  p r o v i d e s  m o s t  i n p u t s  t o  f a r m e r s ,  s u c h  a s  m a t e r i a l  f o r  i r r i g a t i o n ,  p e s t i c i d e s ,  a n d  
poultry feed at below-market prices.  
Since Bahrain subsidises inputs to farmers, how does the government distinguish between 
unsubsidised flour and meats, which are suitable for export, and flours and meats that are subsidised, which are prohibited for export? 
 
Answer:  Bahrain being a net food importing country, there is only one company that mills flour and only 
one company that imports fresh and chilled meat. Both of these companies are limited to provide 
the subsidised food items for the local market only. The subsidised food items of those two companies is prohibited from export. 
 
Report by Kingdom of Bahrain – WT/TPR/G/294  
4 TRADE POLICY 
4.3 Bilateral agreements Page 15, Paragraph 4.17 The report notes the recent conclusion of a bilateral FTA with the United States, as of January 
2014. Given GCC statements on collective negotiation, how might such an exception affect the 
durability and scope of FTA negotiations conducted with the GCC rather than with individual member states? 
 
Answer:  
The Bahrain – U.S. FTA entered into force on 1
st of August 2006. Bahrain's FTA with the U.S. and 
Oman's FTA with the U.S. as well are the only ex ceptions from the GCC collective negotiations.  
 WT/TPR/M/294/Add.1 
 
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  Annex: 
 
 WT/TPR/M/294/Add.1 
 
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 WT/TPR/M/294/Add.1 
 
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  QUESTIONS FROM CANADA 
	
Secretariat Report – Bahrain (S294)  
Part 3. Trade Policies and Practices by Meas ure: Introduction, paragraph 3.2, page 22 
 
The WTO Secretariat report states that: “The documentation for all imported products must be 
authenticated by the Consulate of Bahrain or any Arab Embassy in the country of origin.”  1. How does Bahrain authenticate agricultural products in areas of a country where no 
Consulate representation is immediately available? 
 Answer: 
 
In the absence of Bahraini consular representation any other Arab embassy or consulate could be resorted to. Any exceptional cases, the importer in Bahrain could get the Bahrain Chamber of 
Commerce and industry authentication before the imported good are to be cleared. 
 Part 4. Trade Policies by Sector: Agri culture, paragraph 4.14, page 45  
 
The WTO Secretariat report states that the Government currently provides food support (flour and 
meat) to all persons in Bahrain, through the sale of these products at below-market prices, although, non-subsidized meat products, priced substantially higher, are also available to 
consumers. Domestic agricultural production is also subsidized; the Government provides most 
inputs to farmers, such as material for irrigation, pesticides, and poultry feed, at below-market prices. 
 
2. Could Bahrain clarify how the below-market prices are determined for  
a. Food support for flour and meat? as well as;  
b. Inputs to farmers? 
 
Answer:  
a. Food support is provided through the mechanism of subsidised prices for local 
 consumption of flour milled in Bahrain, imported fresh and chilled meat and poultry  produced by Delmon Poultry Company in Bahrain. Subsidised food Items are prohibited to 
 be exported. 
b. Due to land and water scarcity in Bahrain inputs to farmers are in the form of material 
 for irrigation, pesticides, and poultry feed, at below-market prices.  
Part 4. Trade Policies by Sector: Tourism: paragraph 4.135, page 63  
 It is noted that certain types of tourism activities are reserved for Bahrainis and GCC nationals. 
 
3. Could Bahrain provide further information on restrictions that are placed on the foreign provision of tourism services, particularly of hotel and restaurant services? 
 
Answer:  All activities which are not listed in the "Negative List" are open for 100% foreign investment 
regardless of the size of business organization except trading activities for which 51% Bahraini / 
49% foreign ownership is allowed. The Negative List is reviewed periodically to open some of the sectors for 100% foreign investment.  The Negative list can be viewed at the following link:: 
http://www.moic.gov.bh/En/MoIC% 20Centers/BahrainInvestorsCe nter/Commercial%20Registratio
n/SelectionofBusinessActivities/Pages/Selection-f%20Business%20-Activities.aspx  
 
In addition, further detailed information can also be found at the website of the Ministry of 
Industry and Commerce, under Principle Business Activity section of the website at the following link:  http://www.moic.gov.bh/En/Main/eS ervices/Principle%20Business% 20Activity/Pages/Principle%20
Business%20Activity.aspx?eserviceID=5  WT/TPR/M/294/Add.1 
 
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  QUESTIONS FROM CHINA 
 Questions based on Report by the Secretariat (WT/TPR/S/294)  
Trade Policy Instruments 
 
Page 7, para.10 The Report states that “[i]n 2010, Bahrain adopted a new government procurement regime; it still 
provides for 10% and 5% price preferences for local and GCC products, respectively”. 
 Questions ： 
Please provide detailed explanation on the policy of  price preference for local and GCC products as 
well as updated information on its execution, under the new government procurement regime.  
 Answer:  
Price preference policy is limited to governme nt procurement of goods only, and it does 
not apply to government procurement of construction and services. The policy is 
adopted  with the intention to foster and encourage local and regional production of 
goods, with the aim of maximizing the effi ciency of local and regional economy. The 
policy sets a balance between encouraging and protecting the regional and local 
production of goods, and removing obstacle s before international trade. The policy is 
still adopted and applied by Bahrai n’s public procurement regime.  
 Investment Regime 
 
Page 21, para.2.40 
The Report states that “[a]s part of its investment strategy, Bahrain promotes several key sectors 
for investment. These include financial services, professional and industrial services, education and 
training, logistics, information and communications technology, manufacturing, consultancy, real estate, construction, chemicals and plastics, alumin ium, water, and healthcare. Foreign investment 
in petroleum extraction is permitted through exploration and production-sharing agreements with the Government of Bahrain; private investment in refining activities is permitted ”. 
 
Questions ： 
Please provide detailed information on sector-wise investment promotion policies regarding all 
sectors mentioned above, respectively. 
 
Answer:  
MANUFACTURING: 
 
Bahrain provides exceptional opportunities for international businesses considering a Middle East 
manufacturing hub. Bahrain offers a large, educated and skilled local workforce; there is no need 
to recruit from elsewhere. The Kingdom is strategica lly located at the heart of the Gulf with quick, 
efficient access to every market in the Middle East by road, air and sea. For example, the Bahrain International Airport (BIA) hosts more than 40 airlines, such as British Airways and American 
Airlines, amongst others, with both cargo and charter flights, and provides sophisticated facilities 
for logistics operators. Just 13 km from two other key developments, the Bahrain Logistics Zone and the Khalifa bin Salman Port, the airport offers outstanding access to Bahrain and the wider 
region. BIA is also home to Bahrain’s national carrier, Gulf Air, which has the region’s largest 
regional network and connects to more than 40 destinations worldwide. Growing demand for access to the region means that passenger numbers are growing: 8.5 million people travelled 
through BIA in 2012, 8.8% more than in 2011.To accommodate this increase, Bahrain’s Minister of 
Transportation and Acting Chief Executive of th e Economic Development Board (EDB), H.E. Kamal 
bin Ahmed announced during Bahrain International Airshow 2014 a modernisation programme for the BIA. The airport modernisation project is worth approximately US$1billion.  
Infrastructure is excellent and developing at speed, with superb logistics facilities and links to near 
neighbors in the GCC (Gulf Cooperation Council). WT/TPR/M/294/Add.1 
 
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  Bahrain continues to attract investment from major manufacturing companies across industries  
including downstream aluminum and steel, f ood and beverages, plastics and chemicals. 
All of these factors have helped Bahrain’s manufacturing sector to grow by 80% in the last five 
years, and to be on track to account for over 20% of GDP within a decade. 
The most attractive investment environment: 
 
Five further factors make Bahrain highly attractive: 
 
 The cost of setting up and running industrial facilities here is significantly lower than in the 
rest of the region. 
 
 In effect, the whole of Bahrain is a ‘free zone ’, allowing 100% foreign ownership of business 
and real estate. This allows investors free mo vement of capital, profits and dividends. 
 
 Bahrain allows duty free access of manufactured goods to the GCC, the Greater Arab Free 
Trade Area (GAFTA) and the USA (through  the US-Bahrain Free Trade Agreement). 
 Such openness is matched by the region’s lowest tax regime with no corporate or personal 
taxes, very few indirect taxes and a relatively low cost of living. 
 
 Finally, Bahrain is recognised as a liberal, investor-friendly jurisdiction with a mature 
regulatory framework. 
 
Aluminum production: 
The Kingdom has an established aluminium sector and is a major specialist in high-quality aluminum products for many industries. Demand for this metal, of course, continues to rise. 
 
Alba (Aluminium Bahrain), one of the world’s la rgest aluminium smelters, produces the highest-
grade material, creating significant opportunities in downstream aluminium manufacturing. Three further businesses underline Bahrain’s pre-eminence: 
 Gulf Aluminium Rolling Mill (Garmco), the Middle East’s largest, is close to Alba and is a 
high-quality source for aluminium sheets and coils. 
 Midal Cables Ltd is the first company in the Gulf to manufacture and export aluminium and 
aluminium alloy rods, overhead conductors, wires and conform extrusion products. It is 
known for consistent quality and reliability. 
 Bahrain Aluminium Extrusion Co (Balexco) was the first company of its kind in the Arabian 
Gulf and produces high-quality extrusions and systems to international standards for 
construction3. 
 Chemicals and plastics: 
High construction activity, together with low f eedstock and energy costs, mean that the MENA 
region is expected to have a 10% share of global petrochemical production within the next few years. Chemicals and plastics have the most planned industrial projects in the GCC, and growing 
strongly. 
 The GCC chemical industry covers subsectors that include manufacture of basic chemicals, 
fertilisers, nitrogen compounds, plastics and synthetic rubber in primary forms. There are also 
pesticides, paint, inks, soaps and cleaning products, perfumes and cosmetics, as well as synthetic 
fibres.  
Within specialty chemicals, five segments have  grown tremendously: construction chemicals, 
water treatment chemicals, polymer and plastic additives, paints and coating additives, and oilfield chemicals. 
 
The vibrant plastic industry accounts for 11% of total manufacturing in the GCC and is expected to reach 18% by 2015.  
Some of the main chemical and plastics companies in Bahrain are GPIC, Abahsain Fiberglass JBF, 
BASF, BFG International, Lauscha Fiber International, Hempel Paints, Berger Paints and Ilium.  WT/TPR/M/294/Add.1 
 
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  Consumer goods: 
The GCC’s increasing population and per capita income are helping drive the region’s consumer 
market, which is set to grow by 7. 9% a year and reac h $221 b illion in 2015. 
 
A combination of high Bahraini disposable income and younger demographic profile is creating 
demand for high-value luxury goods and electron ics, while the ever-growing working expatriate 
population is hungry for consumer goods. Such an attractive consumer market has drawn many 
international players with large-scale operations to Bahrain, including Kimberley-Clark and 
Unilever.  Steel production: 
Bahrain has the world’s first fully integrated steel manufacturing facility, the Foulath Steel 
Complex, which houses these subsidiaries: 
 Gulf Industrial Investment Company (GIIC), a world-class pelletizing company that 
started operation in 1984 and has an annual ca pacity of 11 million tons. It  is one of 
three merchant plants in the world and the only one in the Middle East. 
 United Stainless Steel Company (USCO), the region’s first manufacturer of stainless 
steel. 
 United Steel Company (SULB), which will be the region’s only producer of beams and 
medium and heavy structural steel sections. 
 Other downstream steel manufacturers include UNIROL, Bahrain’s high-quality 
reinforcement steel plant, which produces 200,000 tons of rebars a year. 
 Food and beverages: 
Food manufacturers are increasingly turning to Bahrain to supply the Gulf and wider Middle East  
and North Africa regions, where growing populati ons are driving increased demand for foodstuffs. 
Mondelez (formerly known as Kraft), the world’s second-largest food and beverage company, set 
up a state-of-the-art factory in Bahrain annually producing 60,000 tonnes of Kraft cheese and 
Tang products, 60% of which go to Saudi Arabia.  
LOGISTICS: 
 
Bahrain offers the best physical access to Middle East markets such as the Kingdom of Saudi Arabia, Kuwait, Qatar, the United Arab Emirates, Iraq, Jordan and Turkey. Bahrain is also a driving 
force in regional and global trade: as well as numerous Free Trade Agreements (FTAs) as part of 
the GCC (Gulf Cooperation Council), Bahrain has its own FTA with the USA and is negotiating on behalf of the GCC to establish FTAs with the European Union, China, Japan and Australia. The 
Kingdom has been a member of GAFTA (Greater Arab Free Trade Area) since 1998 alongside 
Egypt, Kuwait, Jordan, Libya, Morocco, Oman, Pale stine, Qatar, Saudi Arabia, Sudan, Tunisia, 
United Arab Emirates and Yemen. 
 
Bahrain invests significantly in integrated logistics, business and infrastructure and companies company benefit from faster, streamlined processing  of trade goods – Bahrain offers the shortest 
transit anywhere in the Gulf between seaport, airp ort and logistics processing zones. As a result, 
companies who operate here enjoy excellent va lue and low business costs. The Enabling Trade 
Index (ETI), which analyses 132 economies in terms of institutions, policies and services facilitating the free flow of goods, ranked Bahrain 30
th globally in 2012. 
 
The BIA provides sophisticated facilities for logistics operator s. In terms of capacity, 322,734 
tonnes of cargo can be carried a year. Internatio nal cargo carrier DHL has depended on Bahrain’s 
strategic location since setting up operations in Manama in 1978. The airport is DHL’s regional 
distribution centre for Eastern Europe, the Middle East and North Africa. In June 2011, DHL signed a new contract to maintain its regional headquarters in Bahrain for eight more years. BIA is also home to Bahrain’s national carrier, Gulf Air, which is considered one of the Middle East’s 
comprehensively large networks and connects to more than 40 destinations worldwide. The airport 
is also the regional hub for Lufthansa, Cathay Pacific and Air India, with links to principal global financial and business centres 
 
The Bahrain Logistics Zone (BLZ) is located close to the Kingdom’s Khalifa bin Salman Port, and is the only dedicated customs-free value-added logistics park in Bahrain. With bonded and non-WT/TPR/M/294/Add.1 
 
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  bonded areas, it is also the Middle East’s first multi-model logistics hub to focus on re-export and 
value-adding logistics. The park offers the choice of building own facilities or renting state-of-the-art warehouses with scope to operate modern logistics. Although the BLZ is still at an early stage it has gained the attention of international logistics players and signed various leasing contracts. As 
more and more businesses locate here, the BLZ will look to expand the zone and add additional 
services in response to demand.  
OUTSTANDING FACILITIES FOR MANUFACTURERS & LOGISTICS COMPANIES: 
 
Bahrain has invested and continues to invest significantly in innovative facilities, with a high degree of integration and connectivity. 
 
Salman Industrial City: Salman Industrial City is purpose-built for companies looking to set up manufacturing or industrial 
operations to service the $1.5 trillion Gulf market. 
With excellent facilities for industrial development, it is ideally placed next to the new Khalifa Bin Salman Port and close to surrounding infrastructure such as the Bahrain International Airport and 
the 25 km King Fahd Causeway to Saudi Arabia. 
 Bahrain International Investment Park (BIIP): At around 2,500,000 m2, BIIP has been develope d by the Bahrain Ministry of Industry and 
Commerce. The park is easily accessible from the Bahrain International Airport, the new Khalifa 
bin Salman Port in Hidd and Saudi Arabia via the King Fahd Causeway. On completion, the Bahrain-Qatar Causeway will provide a convenient road link to Qatar. 
 
BIIP will ultimately house over 70 companies; 28 plants have already opened with another 23 currently under construction and more than 20 in pre-construction. Approximately BHD 5 billion 
will be invested in BIIP over the next few years, with 43 new projects that expect to employ more 
than 8,000 people.  Even at an early stage, BIIP has been ranked 15th in the FDI Intelligence Middle East Free Zones 
of the Future 2012-13. 
 Bahrain Logistics Zone (BLZ): 
The BLZ was launched in 2008 and occupies 100 hectares (ha) of prime real estate close by 
Khalifa bin Salman Port (KBSP) Bahrain’s newest and biggest port. The Bahrain Logistics Zone (BLZ) is the region’s first boutique logistics area offering a high quality environment to companies 
that meet its tenancy requirements. Operated by Ports and Maritime Affairs (PMA) at the Ministry 
of Transportation, the BLZ offers local, regional and international companies a base to operate in a bonded area to take advantage of Bahrain’s highly advantageous position to cater to the Northern Gulf market and to access GCC markets quickly and economically. While logistics firms are the 
favoured candidates, the BLZ also welcomes retailers and distributors. Typical favoured logistics 
activities include component assembly, labelling, packaging and re-packaging and mixing, weighing and filling, kitting and palletizing, and testing and repair.  
 
Bahrain International Airport (BIA) expansion: BIA hosts more than 40 airlines, with both cargo and charter flights, and provides sophisticated 
facilities for logistics operators. Just 13 km from two other key developments, the Bahrain 
Logistics Zone and the Khalifa Bin Salman Port, the airport offers outstanding access. Capacity is impressive: 322,734 tonnes of cargo can be carried a year, and considerable expansion is in progress. In January 2011, the BAC signed an agreement with MENA Aerospace to build and 
operate one of the region’s largest private and general aviation hangar complexes. 
 In 2012, 8.5 million people travelled through Bahrain International Airport, 8.8% more than in 
2011. To accommodate this increase, Bahrain’s Mi nister of Transportation and Acting Chief 
Executive of the Economic Development Board (EDB), H.E. Kamal bin Ahmed announced during Bahrain International Airshow 2014 a modernisation programme for BIA. The airport 
modernisation project is worth approximately US$1billion.  
 The Airport Modernisation Programme (APM) is set to cover a timeline of 4 to 5 years. Once the programme is complete, the newly modernised and expanded airport will have increased capacity 
of 50 per cent to take a total of 13.5 million passengers per year. WT/TPR/M/294/Add.1 
 
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  Bahrain Investment Wharf: 
The Bahrain Investment Wharf (BIW) has already b oosted Bahrain’s economic infrastructure. It is 
to include a logistics park measuring 900,000 m².  
Road infrastructure: 
Bahrain benefits from excellent transport throughout the region with easy access to Gulf markets, especially Saudi Arabia. Via the King Fahd Causeway, Saudi is just a 30 minute, 25 km drive. A 
road and rail bridge to Qatar is also planned. 
 King Fahd Causeway: The 25 km King Fahd Causeway was completed in 1986 and has brought significant economic 
benefits for Bahrain and Saudi Arabia, with trade increasing across the causeway BD 3.4 million 
(US$9.06 million) a year. Around 12 million passengers a year cross between the two countries, together with goods and cargo. In 2012, 8,807,845 travellers entered Bahrain through the border 
point. 
PROFESSIONAL SERVICES: 
 
Bahrain is the ideal base for investment in professional services in the Middle East and, more 
specifically, within the GCC (Gulf Cooperation Council) market. 
 The Kingdom is committed to providing business opportunities for global professional services 
firms that cater for the GCC’s rapidly developing needs. Furthermore, we have created a highly 
attractive business environment where firms can flourish.  
This commitment is built on significant progress in reform and development. Recent programs 
have produced, for example, the region’s most skilled workforce, advanced infrastructure development and industry diversification, a trusted and transparent legal and regulatory 
environment, and the most liberal business environment. Bahrain has become a service center for 
other Gulf markets (especially Saudi Arabia). No  other country has our advantages of cultural 
neutrality, language, physical proximity, skilled labor, low operating costs, favorable legal environment and high concentration of financial services.  
 
Historically, Bahrain has been the regional leader in education. Today this heritage means not only that Bahrainis value education and training but also that our country has a reputation for high-
quality learning. Bahrain has prioritized education since the 1920s and has put a particular 
emphasis on financial training in recent years. The Bahrain Institute of Banking and Finance, the largest training institution in Bahrain, has trained over 100,000 people over the past 30 years.
2 
 
FINANCIAL SERVICES: 
 
Bahrain is the longest-established financial centre in the Gulf. Bahrain’s rigorous system of 
regulation, deep local skills and leading position in Islamic finance provide a strong base for banks 
operating across the Arab world. There are currently over 400 financial institutions licensed in Bahrain, and of the 14,009 people employed in financial services in 2012, more than 9,200 of 
them (66%) were Bahrainis.
3 Bahrain continues to see investment in the sector – in 2012, 
PineBridge Investments, the global multi-asset class investment manager, selected Bahrain as the location for its MENA headquarters. PineBridge received a Category 1 license from the Central Bank of Bahrain and has established its regional headquarters in Manama. The new firm, 
PineBridge Investments Middle East will cover the Middle East, North Africa and Turkey.  
 Among the businesses that established in Bahrain in 2013 were Cigna, a global health insurance 
and health services provider which launched its regional third party administration company 
employing 50 people in Bahrain; Julius Baer, the leading Swiss private banking business, and Takaud, the first specialist savings and pensions provider in the MENA region.  
In December 2013, KPMG published a research report  looking at the typical costs associated with 
operating a financial services firm in Bahrain, Dubai, and Qatar. This included cost of operations, cost of set-up, and living costs, and the report concluded that overall, the total cost of doing 
business in Bahrain is almost half that of Dubai and Qatar. 
 
                                               
2 http://www.bibf.com/life-at-bibf 
3 https://www.cbb.gov.bh/page-p-fi nancial_sector_f act_sheet.htm WT/TPR/M/294/Add.1 
 
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  Banking: 
Banking forms the biggest part of our financial se rvices sector and has expanded rapidly as the 
Middle East’s oil-related wealth has grown. At a time when many financial centers have shrunk, ours has remained stable with employment expanding in both 2008 and 2009. 
 
Across the Middle East, demand is building for more sophisticated products. Surging infrastructure development is creating a need for structured finance and lending products. Trade finance 
opportunities are increasing with the GCC’s integration into world markets. And, burgeoning 
private wealth is fuelling needs for private banking and wealth management products.  Bahrain’s highly regarded regulatory environment and respect for the rule of law make Bahrain the 
ideal base for all types of banking. 
 Islamic Banking & Finance: 
Bahrain is widely recognized as the global leader in Islamic finance. We have pioneered many of 
the financing instruments that have become popular in recent years, and host the largest concentration of Islamic financial institutions in the world. 
 
Since 2000, assets in Bahrain’s Islamic banking sector have increased from $1.9bn to $23.1bn in October 2013
4, accompanied by a significant increase in the number of institutions. With the 
Central Bank of Bahrain (CBB) taking a leading role , we have been at the forefront of developing 
Islamic products. As of February 2014, there are 24 Islamic banks present in Bahrain. 
 Bahrain is regarded as setting the benchmark for Islamic banking regulation, with the CBB the first 
central bank to issue a sukuk bond (2001) and to issue a regulatory framework specific to Takaful 
and re-Takaful companies (2005).  
The popularity of Takaful (Islamic insurance) is rising rapidly in the Middle East and many 
conventional insurance companies have added Takaful arms (e.g. Medgulf Allianz Takaful, Legal and General Gulf Takaful, Chartis Takaful Enay a, Hannover Retakaful and ACR Retakaful MEA). 
 
The ICD-Thomson Reuters Islamic Finance Development Indicator (IFDI), a numerical measure 
launched in December 2013 and representing the over all health and growth of the Islamic finance 
industry worldwide, highlighted Bahrain’s developed Islamic finance sector, ranking first in the 
Middle East and North African (MEN A) region, with total assets wo rth $47 b illion. Bahrai n also had 
one of the most developed Islamic Finance know ledge landscape, and performed well in terms of 
governance, with a comprehensive regulatory fr amework covering all aspects of the Islamic 
Finance industry. All 6 GCC countries made it into the top 15 worldwide, with Bahrain ranking first 
amongst them,, demonstrating the overall strength of the Islamic finance sector in the region.   Asset Management 
Bahrain’s asset management sector is now the regional leader, having been initially established in 
the 1980s. Our regulatory system and financial services infrastructure enable asset managers to meet increasing demand for managed funds, from both institutions and individuals. 
 
Anticipating investor demand, the CBB issued a new regulatory framework in June 2007 for collective investment undertakings. This broadened the range of products asset managers could 
offer and the style of funds that could be managed, including alternative investment funds. 
 As of February 2014, Bahrain has 2,829 authorized funds; 92 of which are local domiciled funds, 
comprising 51 conventional funds and 41 Islamic funds.
5 
 
Insurance Growing quickly from a low base, the insurance sector has been one of the main success stories 
within Bahrain’s financial sector in recent year s. While the last five years have been very 
challenging for the international financial services industry in general, the Gulf has proved a rare bright spot. In Bahrain, the insurance sector has continued to post double-digit average annual 
growth throughout this period. 
 
                                               
4 https://www.cbb.gov.bh/page-p-fi nancial_sector_f act_sheet.htm 
5 https://www.cbb.gov.bh/page-p-fi nancial_sector_f act_sheet.htm WT/TPR/M/294/Add.1 
 
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  A number of factors account for this resilience and growth. For a start, the internationally low 
levels of insurance provision in the region leave plenty of room for catch-up growth. Bahrain is a regional leader but still short of the international norm in many areas.   
As with the broader financial sector, insurance growth is in part driven by growth within the 
economy as a whole. In spite of difficult conditions in many developed markets, Bahrain’s economy has continued to positive growth over the past decade. 
 
The growth of financial services in the region has tended outpace overall GDP growth. The growth 
of Bahrain’s insurance market is due in part to the expanding and increasingly affluent local population, which drives demand for more sophisticated financial products, and the economic 
diversification, including the massive infrastructure needs of the broader infrastructure needs of 
the regional economy.   
The first of these, coupled with the introduction  of compulsory insurance in some areas, is 
continuing to drive demand in non-life areas that have long played an important role in the regional insurance sector – areas such as motor and medical. Regulatory developments are likely 
to further accelerate these trends through the increased coverage of mandatory policies. But 
demand is also beginning to feed through into life insurance, an encouraging development in a region where there is not an embedded long-term sa vings culture. A significant aspect of insurance 
sector growth in 2012 was attributed to a surge in long-term insurance, which registered around a 
17% increase in gross premiums to reach BD 60.2 million in  2012 compared with  BD 52. 6 million 
in 2011.   
Demand for life insurance has traditionally been driven by expatriates from cultures where take up 
of long term savings products is high. In recent years, however, demand from the local inhabitants 
has begun to grow (albeit from a low base) in both conventional life insurance and family takaful –
Shari’a-compliant long term savings products. In an important innovation, new products based on 
regular monthly contributions are emerging and gaining popularity.  TELECOMMUNICATION, MEDIA & TECHNOLOGY: 
 
Bahrain’s information, communications and technology (ICT) sector’s liberal business policies and 
advanced infrastructure make us stand apart in the Middle East, both as a thriving domestic marketplace and as a base for accessing the growing regional market. 
 
During the recessionary period of 2008-2009, while  Global ICT spending contracted, the ICT 
spending in the Middle East grew by 6.6% and over the next five years (2011-2015) government 
and private sector ICT spending in the GCC is forecasted to reach US$318 bn.1 Governments also 
plan to lay an additional 60,000 kilometers of fiber-optic cable as part of US$2.5bn worth of 
investment aimed at developing world-class telecommunications networks.  
Bahrain’s high mobile and internet penetration rates create opportunities, as does the fact we are 
a leading financial services center. When it comes to tapping the region’s robust ICT growth, investors benefit from Bahrain’s proximity to the Middle East’s largest markets, as well as our 
innovative ICT policies and status as the one of the world’s freest economies 
 All of this explains why leading global ICT companies are selecting Bahrain as their base in the Gulf. Other reasons would include low costs, our position as an excellent testing ground for local 
markets and our large number of free trade agreements.   
 In 2013, for example, the eGovernment Authority (eGA) signed an MoU with Korea Trade 
Investment Promotion Agency (Kotra) aimed at attracting investments into Bahrain. Based on this 
memorandum, a steering committee will be formed to discuss channels of co-operation and co-ordination between the two parties as well as set a strategy to promote joint co-operation and 
maintain continuous communication between both countries in the ICT sector 
 Page 21, para.2.42 The Report states that“[e]conomic activities reserved exclusively for Bahraini nationals are real 
estate services, and rental and management of land and buildings”and so on. 
  WT/TPR/M/294/Add.1 
 
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  Questions : 
 
Please confirm whether the Government has any plan to open up those restricted sectors to 
foreign investment. 
 Answer: 
 
All activities which are not listed in the "Negative List" are open for 100% foreign investment regardless of the size of business organization except trading activities for which 51% Bahraini / 49% foreign ownership is allowed. The Negative List is reviewed periodically to open some of the 
sectors for 100% foreign investment.  The Negative list can be viewed at the following link:: 
http://www.moic.gov.bh/En/MoIC% 20Centers/BahrainInvestorsCe nter/Commercial%20Registratio
n/SelectionofBusinessActivities/Pages/Selection-f%20Business%20-Activities.aspx  WT/TPR/M/294/Add.1 
 
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  QUESTIONS FROM COLOMBIA 
 Informe del Gobierno de Bahréin WT/TPR/G/294  
4  POLÍTICA COMERCIAL 
4.2  Bahréin y la región 4.2.1  Pertenencia al CCG 
 
El párrafo 4.11 del informe del gobierno de Bahréi n indica que… “Bahréin es miembro fundador del 
Consejo de Cooperación del Golfo (CCG) junto con Arabia Saudita, los Emiratos Árabes Unidos, Kuwait, Omán y Qatar. Desde 1981, los miembros del CCG han hecho efectiva la zona de libre 
comercio eliminando los derechos aduaneros sobre todos los productos originarios de los Estados 
miembros.”   
Y, 
 Note from Bahrain: 
What is the question ? 
 4.2.2  Pertenencia a la GAFTA  
El párrafo 4.16 del informe del gobierno de Bahréin indica que… “Bahrein también es miembro 
f u n d a d o r  d e  l a  G r a n  Z o n a  Á r a b e  d e  L i b r e  C o m e r c i o  ( G A F T A ) ,  c u y o  a c u e r d o  s e  f i r m ó  e l  1 9  d e  febrero de 1997 y entró en vigor el 1º de enero de 1998. Actualmente la Liga Árabe está 
debatiendo el establecimiento de una Unión Aduanera Árabe.” 
 
1. ¿Cómo el Reinado de Bahréin estima posible compatibilizar estos resultados con las 
posibilidades de impulsar la liberación de comercio en el ámbito del Sistema Multilateral de 
Comercio? 
 Answer: 
 
Based on the MFN treatment and WTO rules. Del informe de la secretaría WT/TPR/S/294 
Políticas sectoriales 
 El párrafo 12 del informe de la Secretaría indica que… “La agricultura representa una mínima 
proporción de la economía de Bahrein: tan sólo el 0,3% del PIB. Como consecuencia de la falta de 
tierra cultivable y el escaso suministro de agua, Bahrein sigue siendo un importador neto de productos alimenticios. Se presta ayuda a la producción agrícola mediante la concesión de subvenciones y préstamos preferenciales a los agricultores. El promedio simple de los aranceles 
NMF aplicados a los productos agrícolas es del 3%.” 
 
2. ¿Cómo evalúa el gobierno del Reino de Bahréin los resultados de esta política y cómo se 
explica la compatibilidad de la misma con los compromisos que se comparten en el 
Sistema Multilateral de comercio?  
 
Answer: 
 Due to land and water scarcity in Bahrain inputs to farmers are in the form of material for irrigation, pesticides, and poultry feed, at below-market prices.  
 
El párrafo 13 del informe de la secretaría señala que… “El sector manufacturero, que siguió creciendo durante el período objeto de examen, es el tercer principal contribuyente a la economía 
de Bahrein, tras los hidrocarburos y los servicios financieros. En el marco de su proceso de 
diversificación,  Bahrein se ha centrado en industrias de elevado valor añadido y utilización intensiva de energía: por ejemplo, las del aluminio, los productos petroquímicos, los productos 
metálicos y el acero. Esas industrias están administradas principalmente por grandes empresas de 
propiedad estatal, en particular Aluminium Bahrain (ALBA) y la Compañía de Industrias Petroquímicas del Golfo (GPIC). Bahrein puede autorizar hasta el 100% de inversión extranjera en empresas del sector industrial. El promedio simple de los aranceles NMF aplicados a las 
manufacturas es del 5,2%.” WT/TPR/M/294/Add.1 
 
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  3. ¿Cuáles son los resultados de esta experiencia y qué tipos de incentivos ha aplicado o aplica 
el gobierno del Reino de Bahréin en la implementación de la  política de diversificación?  Un-official translation : 
What are the results of this experience and what types of incentives applied or applied by 
the government of the Kingdom of Bahrain in the implementation of the policy of diversification?  
 
Answer:  The energy intensive high value added manufactu ring companies such as ALBA and GPIC have 
been a highly successful diversification initiative by the government. The investments in these 
industries capitalized on Bahrain’s local gas production, produced high-wage jobs for the economy, and laid the foundations for downstream industries, particularly in the aluminium sector. These 
companies also have the highest rate of national to non-national employees, at over 80%, 
compared to an average of just 20% for the private sector as a whole. The growth of the sector in 
recent years has been, above all, driven by downstream manufacturing which operates in a fully 
market environment and contributes significant value added while diversifying employment and 
export.  The talent and skill of our well-educated, multilingual workforce, sits at the heart of our economic 
strategy, and Bahrain has the most diversified national workforce in the GCC. Schooling is free and 
compulsory for all Bahrainis and the Kingdom boasts a 91% adult literacy rate - among the highest in the region. 
 
To maintain this advantage, the Ministry of Educat ion, the Ministry of Labour and the EDB are also 
working together on initiatives to address workforce education. This is taking place through a 
comprehensive educational reform programme gear ed toward upgrading primary, secondary, and 
tertiary education. This programme includes upgrading curricula and creating new institutions to ensure that training meets labour market needs.  Other key components of the programme include 
a quality assurance regulator and extensive teacher training.  
 
In 2012, plans to implement a series of Nati onal Occupational Standards (NOS) across the 
Kingdom were announced. The standards have been developed by Bahrain’s Ministry of Labour in 
partnership with German firm Deutsche Gesellsch aft für Internationale Zusammenarbeit (GIZ), to 
assess and improve the performance and skills of the country’s current and future workforce. The 
final implementation of the NOS is expected by 2015. 
 
We’ve also focused on developing vocational institutions to prepare students to enter a workforce with practical skills related to a specific trade. Several institutes in Bahrain have been successful in endowing learners with skills that relate to a specific trade, occupation or vocation. Vocational 
education is available across various industries such as tourism, hotel management, retail, and 
technology. There are a vast number of specialist colleges offering courses in subjects such as 
finance, medicine and IT. The Bahrain Institute of Banking and Finance, the largest training 
institution in Bahrain, has trained over 100,000 people over the past 30 years. 
 Tamkeen is an independent semi-autonomous auth ority designed to foster sustainable private 
sector growth by investing in Bahraini empl oyability, job creation, and social support. The 
objectives of Tamkeen, in line with the government’s labour market reform programme, are to ensure the development of the Kingdom’s labour capital and that local employment is made more attractive, as well as to improve the performances of businesses. 
 
Labour market reform has significantly reduced market restrictions in an effort to ensure that adequately trained and experienced labour is available to meet labour market demand. 
 
All companies in Bahrain currently obtain their gas at a subsidized rate of 2.25-2.50 USD per mmbtu as of 2013. Furthermore, electricity and water are offered at subsidized rates, as well as 
government owned land which is zoned for industrial use. WT/TPR/M/294/Add.1 
 
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  QUESTIONS FROM THE EU 
 WT/TPR/S/294 – WTO Secretariat's Report - Bahrain  
2 TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2.6 Investment regime Page 21, paragraphs 2.37, 2.41 and 2.42  
 
This paragraph lists a substantial number of economic activities that are reserved exclusively for Bahraini nationals. In particular, the secretariat's report states that "under the Commercial Companies Law, depending on the activity to be undertaken, up to 100% foreign equity ownership 
in companies is permitted". 
 EU questions 1 to 3: Could Bahrain explain the reasons for the exclusion of foreign nationals from 
economic activities reserved exclusively for Bahraini nationals? In addition, could Bahrain clarify further what activities are covered under “small business activities”? Does the Kingdom of Bahrain consider reducing the list of sectors and activities in which 100% foreign equity ownership is 
allowed? 
 Answer:  
The reasons for exclusion of foreign nationals from some economic activities reserved exclusively 
for Bahraini nationals are purely economic. All activities which are not listed in the "Negative List" are open for 100% foreign investment regardless of the size of business organization except 
trading activities for which 51% Bahraini / 49% foreign ownership is allowed. The Negative List is 
reviewed periodically to open some of the sectors for 100% foreign investment.  The Negative list can be viewed at the following link:  
http://www.moic.gov.bh/En/MoIC% 20Centers/BahrainInvestorsCe nter/Commercial%20Registratio
n/SelectionofBusinessActivities/Pages/Selection-f%20Business%20-Activities.aspx  3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.2 Measures directly affecting imports 
3.2.1 Procedures Page 23, paragraph 3.11 
 
According to the report, in 2011, a new eCustoms System for Single Window and International Trade Facilitation known as OFOQ was established. This piece of information seems to be not fully 
in line with the contents of Annex I of the Government report (point 2, 2° bullet point). 
 EU question 4: Could Bahrain clarify whether a single window is already operational in Bahrain?  
 
Answer: 
 Customs Affairs is in coordination with the companies and freight forwarders on electronic 
connectivity through a single window (Horizon) (Manifest) and with some of the airlines and 
Bahrain International Airport Services, in addition to linking with the relevant authorities to fulfil and complete the procedures for customs clearance at customs entry points. And work is 
underway to complete the rest of the stakeholders during the year 2014.  
 3.2.5 Import prohibitions, restrictions, and licensing Page 29, paragraphs 3.32, 3.33, 3.34 and table 3.5 
 
EU question 5: Could Bahrain clarify whether a ban on imports of live cattle, beef and beef 
products coming from the EU despite is still maintained despite the fact that the GCC Council 
recommended to all member countries to lift the ban and the fact that Oman and United Arab 
Emirates have already lifted the ban?  
Answer: 
 A Ministerial order was issued by the Minister of Municipalities and Urban Planning No. 62 for the 
year 2013 lifting the ban on the importation of live cattle, fresh , chilled and frozen beef as well as 
beef products from the UK, Holland and Germany WT/TPR/M/294/Add.1 
 
- 19 - 
 
  3.2.7 Government procurement 
Page 30  EU questions 6 and 7: In the light of the significant public investments being made by Bahrain, of 
their environment policies, does Bahrain have a public procurement policy favouring environmentally friendly goods and services?  If  so, are such policies publically available? 
 
Answer: 
 Though it is not expressly provided for in Bahr aini Public Procurement Laws, this policy is 
considerably adhered to and encouraged by the Tender Board and the Bahrain Government 
Authorities. A relatively high weighting in tenders evaluation criteria is usually  allocated in Tender 
Documents to environmentally friendly goods, constructions and services; so, such policies would be available to contractors and suppliers who are participating  in public procurement through the 
Tender Documents. 
 Page 31, paragraphs 3.36, 3.37 and 3.38 
 
EU question 8: Does the Kingdom of Bahrain en visage a further development of the regulations 
governing its Tender Board that would ensure ad ditional transparency of the procedures with 
reference in particular to the decisions on th e exclusion of bidders and the criteria for the 
attribution of a project to a particular bidder in each individual tender procedure? 
 Answer: 
 
The current public procurement regime adopted by Bahrain ensures maximum levels of  transparency targeted by UNCITRAL Model Law of 1994. Rules with respect to the determination of 
criteria on the basis of which the comparison between bids shall take place have strictly been laid, 
Standards shall be objective and can be quantita tively estimated. Price shall be the principal 
criterion in case of fulfillment of the technical and other criteria.  
The tender documents shall contain the criteria re lied upon by the buyer in selecting the successful 
bid and the relative weighting of such criteria including time of execution, maintenance, operation, terms of payment and such other guarantees. Th e tender shall be awarded to the bidder who 
offers the best terms and lowest price after standardizing the bases and criteria of comparison 
between the tenders.  Thus, unlawful decisions on the exclusion of bidders are not permissible 
under the Bahrain public procurement regime, and th e criteria for the attribution of a project to a 
particular bidder do not exist. 
 Page 32, paragraph 3.42   
According to the report, price preferences are given for goods produced in Bahrain and in other 
GCC states.  
EU questions 9 to 11: Could Bahrain provide information regarding the economic impacts of the 
preference schemes mentioned in this paragraph? How many contracts are awarded to Bahrain 
and GCC companies on the basis of these schemes in the last three years? Can Bahrain quantify 
the additional expenditure? 
 Answer:  
Price preference policy adopted by Bahrain and GCC states has a good impact on the economies of 
Bahrain and GCC states. The policy acquires wide acceptance and contentment of local and regional companies. As stated above this policy  is limited to government procurement of goods 
only. No data on number of contracts awarded to Bahraini and GGC companies, or quantifying the 
additional expenditure is available.  WT/TPR/M/294/Add.1 
 
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  3.3 Measures directly affecting exports 
3.3.1 Procedures Page 32, paragraph 3.45  
EU question 12: Can the Kingdom of Bahrain elaborate which measures are envisaged to further 
facilitate exports via the only way to export by  land, the King Fahd Causeway, which are often 
delayed due to an apparent lack of capacity at the border control posts? 
 
Answer:  King Fahd Causeway is a border area subject to  the authorities of the Kingdom of Bahrain and 
Saudi Arabia, and since its inception, there is cooperation and coordination between the two 
countries to overcome all the problems and obstacles, especially the ones that are related to the movement of goods. 
 
A Special area has been allocated at the Bahraini side for waiting trucks for export instead of waiting on the roads of the bridge to facilitate the smooth flow of traffic. 
 
Also, Customs Affairs, in coordination with all concerned parties for regulating the entry and exit of trucks and through the allocation of a place to accommodate all of the trucks near the King Fahd Causeway equipped with all the requirements of  the export and import across the bridge. 
 
3.4.2 Standards and other technical requirements 3.4.2.1 Standards, metrology,  testing and certification 
Page 35, paragraph 3.65 
 The Secretariat's report states that at "the GCC level, Bahrain continues to harmonize its technical 
regulations and standards". 
 EU question 13: Is the Kingdom of Bahrain planning measures to bring its national rules and 
practices regarding the labelling and design of cigarette packaging in line with the GCC unified Gulf 
Standard on the Labelling of Tobacco Products of 2012 (GSO 246) as applied by the other five GCC 
member states?  
Answer: 
 According to the Ministerial order ref. 16:2012 , the national rules of The Kingdom of Bahrain 
regarding labelling and design of cigarette packaging is in line with the GCC unified Gulf Standard 
on the Labelling of Tobacco Products. The Kingdom of Bahrain enforces tobacco conformity procedure and measures based on (GSO 246: 2012) since August 2012.  
3.4.2.2 Sanitary and phytosanitary measures 
Page 37, paragraph 3.75  
The Secretariat's report states that "since 2003, Bahrain has been applying the GCC Laws on 
Veterinary Quarantine and Plant Quarantine".  
EU question 14: Could the Kingdom of Bahrain inform whether the "GCC Guide for Control of 
Imported Food" (notified to the WTO in 2011; document: G/SPS/N/SAU/14) has been adopted in 
the meantime and whether the Kingdom of Bahrain is applying the rules and procedures foreseen in its notified draft? 
 
Answer:  
The "GCC Guide for Control of Imported Food" is still under discussion within the GCC and has not 
been adopted. WT/TPR/M/294/Add.1 
 
- 21 - 
 
  3.4.3 Intellectual property rights 
3.4.3.1 Overview Page 38, paragraph 3.81   
The WTO review reports that notification of Bahrain's IPR legislation to the WTO remains overdue. 
Also, a law on plant varieties is reported to be in the legislative process.  
EU questions 15 and 16: Is there any project of no tifying such legislation? When such law would 
be adopted?  
 Answer: 
 
The responsible authorities in Kingdom of Bahrain are currently working on updating all the notifications of Bahrain's IPR legislation to the WTO  and shall be sent to the WTO ASAP. 
Regarding plant varieties law, a new draft of the la w is prepared by a legal expert appointed by the 
UNDP and it is taking its way in the legislative process. A clear defined date is not possible yet, but the responsible authorities are working to expedite the process ASAP. 
Page 39, paragraph 3.83 
 Bahrain is not part of several international treaties such as the Hague agreement, the Rome convention, the Locarno agreement or the Strasbourg  agreement. Bahrain is in process to be part 
of the Budapest treaty as well as to the UPOV treaty.  
 EU questions 17 and 18: Would Bahrain plan on be coming a part to these treaties? Is there any 
calendar for the ratification of these agreemen ts and their implementation into the national 
legislation?  
Answer: 
 No, Kingdom of Bahrain is not planning currently to become a part of the Hague agreement, nor the Locarno agreement and nor the Strasbourg ag reement. Nevertheless, the Kingdom of Bahrain 
is a member of Rome Convention since 18 January, 2006 and a member of Budapest Treaty on the 
International Recognition of the Deposit of Micr o-Organisms for the Purpose of Patent Procedure 
since 20 November, 2012. Regarding UPOV, a law was issued for Accepting to Join the 
International Treaty of the Protection of Ne w Plant Varieties (Law No. 12 of 2005), but the 
implementation is on hold until the issue of the New Plant Variety Law which is in the legislative process. 
 
3.4.3.2 Patents Page 40, paragraph 3.87  Bahrain as member of the Gulf Coalition Council is a country part of the G CC Patent Office. Several 
IPR legislations have been adopted at GCC levels. 
 EU question 19: How the patent applications are coordinated between the Bahrain national office 
(part of the PCT) and the GCC Patent Office (not part to the PCT nor the Paris Convention)?  Answer: 
 
Currently there is no coordination between the Bahrain Patent National Office and the GCC Patent Office regarding PCT applications. However, there is  a plan for exchange of information and linking 
of databases between GCC Patent Office and the National Patent Offices. 
 
3.4.3.4 Trade marks Page 41, paragraph 3.92  
 
GCC Trademark law adopted by the GCC Supreme Council in December 2012 has not been applied yet by member states.  
 
EU question 20: When Bahrain would plan to implement it? 
 WT/TPR/M/294/Add.1 
 
- 22 - 
 
  Answer: 
 The Kingdom of Bahrain has ratified the GCC Trademarks law, with Law No. 6 of 2014 approving the law (system) of Trade Marks of the GCC countries was issued and published in the Official 
Gazette dated February 27, 2014. and it will be im plemented six months after the issuance of the 
Implementation regulation which is currently under discussion within the GCC.  
3.4.3.8 Enforcement 
Page 42, paragraph 3.99  Software piracy has been reported as proble matic. Bahrain has already conducted important 
progress in its copyright legislation to address main copyright infringing issues.  
 EU question 21: Would there be any administrative or legislative further measures Bahrain is 
specifically planning to implement to fight software piracy?  Answer: 
 
Bahrain is a firm proponent for the protection of intellectual property rights which is evidenced by the number of laws and regulations that have been issued and implemented during the past 
decade. 
 
EU question 22: As regards medicinal products and plant production products, does Qatar 
legislation provide for an administrative marketing approval process and a link with patent 
duration?  
 Note: Question is not addressed to Bahrain 
 
4 TRADE POLICIES BY SECTOR  4.2 Agriculture 
4.2.1 Policy objectives 
Page 45, paragraph 4.14 The Secretariat's report states that "the Government currently provides food support (flour and 
meat)". 
 EU question 23: With a view to the impact on the environment and on global food security, is the 
Kingdom of Bahrain planning to revise its subsidisation of meat consumption considering that meat production requires a significantly higher input of  natural resources for the production of the same 
amount of calories/nutrients for human consumption than non-meat food-stuffs?  
Answer: 
 Bahrain is currently studying all aspects related to re-directing subsidies to all sectors and citizens 
most in need. In regards to food subsidies, Bahr ain has identified best options to redirect meat 
subsidies. The study was conducted in cooperation with the World Bank, and it is currently undergoing dialogue between wide stakeholders gr o u p  i n  t h i s  a s p e c t  i n  t h e  a i m  o f  c r e a t i n g  
awareness and educating the public about the goals and gains of the new scheme. 
 Page 45, paragraph 4.15  According to the report “in 2013, certain export restrictions were put in place on local fish to 
maintain domestic fish prices". 
 EU questions 24 to 27: What is the legal basis for these export restrictions? Are the export 
restrictions still in place for 2014? What are th e export restrictions exactly? Do the export 
restrictions apply to domestically produced fish (harvested, farmed) or do they also apply to processed products for which imported raw materials have been used? Has Bahrain been the 
subject of complaint to the WTO concerning these export restrictions? 
 WT/TPR/M/294/Add.1 
 
- 23 - 
 
  Answer: 
 Being a net food importing country with limited sea food resources, fishing of certain types of sea 
food are seasonally prohibited and others are proh ibited from exports due to increasing depletion 
of resources. Such export quantities are usuall y rather limited due to the scarcity of national 
fishing resources.   
There were no complaints against Bahrain to the WTO. 
 4.5.3 Postal services Page 59, paragraph 4.100   
According to the report, Bahrain post launched Gulf Express to promote postal services in the GCC 
region.  
EU question 28: Could Bahrain explain the link  between Bahrain Post and the Gulf Express 
services?  
 
Answer: 
 The Gulf EX (or Gulf Express) is a joint service among the GCC countries supervised by the GCC council. This service provides express parcel delivery next day to any countries in the GCC only at 
a highly competitive rate.  
 WT/TPR/G/294 – WTO Government's Report - Bahrain 
 
2 NATIONAL DEVELOPMENT Page 4, paragraph 2.5 
 
The Government's report states that the "compe tence of the National Audit Court, has been 
expanded in 2010. During the National Dialogue in 2011 it was agreed to establish an independent authority to oversee and implement comprehensive management policies and financial 
transparency (governance) in ministries and institutions, in line with international standards. 
Furthermore the National Dialogue called for all recommendations published by the parliament’s investigation committee relating to state property and reclaimed land (landfill) to be fully 
implemented. 
 
EU question 29: Could the Kingdom of Bahrain in form whether it has taken steps to implement 
these recommendations of the National Dialogue regarding an independent oversight authority as 
well as regarding state property and reclaimed land?  
Answer:  Report on the implementation of the recommendations of the National Consensus Dialogue can be 
found at the following link:  
http://www.nd.bh/en/images/do cuments/impl_report_en.pdf  
 
3 ENHANCING PRODUCTIVITY AND CAPACITY 
3.1.7 Skilled human resource development Page 8, paragraph 3.28 
 
The Government's report states that "Bahrain is a pioneer in the region in such areas as: […] free 
labour mobility which allows all expatriate workers to shift freely from one employer to another". The Government's report states that "domestic workers are covered by the labour law". 
 
EU question 30: Building on the far-reaching reforms of the sponsorship (kafala) system since 
2009, is the Kingdom of Bahrain envisaging the abo lishment of this system and its replacement by 
a system in which the residence and other rights  of an expatriate would not depend on an 
individual Bahraini citizen or company as sponsor? WT/TPR/M/294/Add.1 
 
- 24 - 
 
  Answer: 
 
Bahrain has been a pioneer in introducing a far reaching reforms of the sponsorship system free 
labour mobility which allows all expatriate worker s to shift freely from one employer to another. 
For further information and updates please visit the website of the Labour Market Regulatory Authority: http://portal.lmra.bh/english/portal  
 
EU question 31: Is the Kingdom of Bahrain planning  to extend the elements of the 2009 reform of 
its sponsorship system to domestic workers so they can enjoy the same free mobility and other 
benefits? In this context, could the Kingdom of Bahrain inform about the implementation of the 
provisions of the ILO Domestic Workers Convention (C189)? 
 Answer: 
 Bahrain has been a pioneer in introducing a far reaching reforms of the sponsorship system free labour mobility which allows all expatriate worker s to shift freely from one employer to another. 
For further information and updates please visit the website of the Labour Market Regulatory 
Authority: http://portal.lmra.bh/english/portal  
 
3.2.6 ICT 
Page 12   
The report by Bahrain mentions "liberalisation initiatives" in the field of ICT.  
 EU question 32: Could more information be provided on the existence of foreign equity caps in the 
telecommunication sector?  
 
Answer:  
There are no restrictions on foreign ownership in the telecommunications sector in Bahrain.  The 
third mobile entrant (Viva) is 100% owned by STC, and a number of other major competitors in Bahrain have significant foreign ownership. 
 
4 TRADE POLICY 4.1 Bahrain and the world Page 14, paragraph 4.7 
 
EU question 33: Is the Kingdom of Bahrain considering the access to the Plurilateral Agreement on 
Government Procurement as a full member? 
 
Answer: 
 Bahrain is currently not considering acceding to the Government Procurement Agreement.  
Page 14, paragraph 4.15 
The Government report states that "presently the GCC countries are evaluating the feasibility 
impacts of negotiating Free Trade Agreements (FTA) with other countries and regions in order to 
finalise the priorities of negotiations in this regard".  
EU question 34: Could the Kingdom of Bahrain inform about the preliminary findings of this 
evaluation which had been initiated at the end of 2010? 
 
Answer: 
 
The GCC member states have completed an economic feasibility study on the trade negotiations with a number of countries and economic blocs, and based on the results of this study the GCC 
states will determine the priorities of the next phase of the negotiations. 
 WT/TPR/M/294/Add.1 
 
- 25 - 
 
  ANNEX 1. TRADE RELATED TECHNICAL ASSISTANCE 
 According to the information contained in this annex, the EU understands that Bahrain will seek for technical assistance for the implementation of the single window and the risk management 
provisions of the Trade Facilitation Agreement.  
 EU question 35: Could Bahrain clarify their need s for the implementation of the single window 
considering that, according to paragraph 3.11 of the Secretariat report, it seems that the single 
window is already in place since 2011?  Answer: 
 
Technical assistant is required for full coverage of  stakeholders interchange with the single window 
system.  
 
EU question 36: With reference to the Trade Facilitation Agreement, could Bahrain clarify whether 
all other provisions than risk management (and single window) will be implemented without 
Technical Assistance? 
 Answer to questions 35 and 36: 
 
Customs Affairs implement the requirements of the revised Kyoto Convention and also is currently 
in coordination with Bahrain Chamber of Commerce  and Industry is introducing the system of ATA 
Carnet, which will hopefully be implemented with effect from June 1, 2014, which will lead to 
facilitate the entry of equipment and goods under the temporary-entry system according to the 
International Convention for the Temporary Entry of the World Customs Organization.   WT/TPR/M/294/Add.1 
 
- 26 - 
 
  QUESTIONS FROM HONG KONG, CHINA 
 PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT 4.  TRADE POLICIES BY SECTOR 
 BAHRAIN 
 
Page 58 (para. 4.94)  
 
Telecommunications  
 
Bahrain Government’s third National Telecommunication Plan (NTP), which was issued in July 
2012, identified key directions for the telecommunications sector, including the creation of a national broadband network and the deployment of  long-term evolution-based mobile services.   
 
Question: 
 
Please share with us the scope and details of the third NTP, the latest administrative progress, and 
its implementation schedule (if any).  Will the Bahrain Government allow private-sector participation and/or foreign investment in the implementation of the plan?  
Answer: 
 The Government’s Third National Telecommunications Plan is available at 
http://www.tra.org.bh/media/document/ThirdN ationalTelecommunicationsPlanEnglish.pdf . Two of 
the key pillars of the 3rd NTP are referred to in the question above, namely the creation of a NBN 
and the deployment of LTE-based mobile services. 
 
The creation of an NBN is a Government initiati ve, and in February 2014, the Government signed a 
Memorandum of Understanding with Batelco rega rding the development of the NBN.  LTE-based 
mobile services were launched throughout Bahrain following the TRA’s award of additional 
spectrum in Q3 2013. 
 Page 60 (para. 4.109) 
 Maritime Transport  
 
We noted from the Secretariat Report that shipments to Bahrain must be carried by ships that are 
permitted entry into Bahraini waters (based on, inter alia, flag/ownership and age of vessel).  Question: 
 Please share with us details of the criteria for granting ships the permission to enter Bahraini waters.  Are the requirements on foreign ships the same as those on ships of Gulf Cooperation 
Council (GCC)? If not, how are they different? What is the application procedure and how long 
does it usually take?  
Answer: 
 The criteria for granting ships the permission to enter Bahraini waters is to comply with the international safety requirements and regulations as stipulated in the international conventions 
and agreements. 
 Yes, in general the requirements on foreign ships are the same as the Gulf Cooperation Council 
(GCC) and there is no favourable treatment. 
 Kindly visit the following link of the Ministry of Transportation in respect of information regarding 
maritime transport: http://mot.gov.bh/en/ports-and-maritime WT/TPR/M/294/Add.1 
 
- 27 - 
 
  QUESTIONS FROM JAPAN 
 Report by the Secretariat (WT/TPR/S/294)  
2 TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2.4 Trade agreements and arrangements 2.4.2 Regional and bilateral agreements 
2.4.2.5 Agreements not yet in force 
 (Question1: Page 20, Paragraph 2.32)  
*Similar description is found in paragraph 4.15, p14 of Report by Bahrain (WT/TPR/G/294)  
The GCC reportedly decided to resume FTA negotiations. What are the contents of the decision? What is Bahrain’s reaction to the decision? How will the GCC implement the decision? What role 
will Bahrain play in its implementation? 
 Answer: 
 
The GCC member states have completed an economic feasibility study on the trade negotiations with a number of countries and economic blocs, and based on the results of this study the GCC 
states will determine the priorities of the next phase of the negotiations. 
 WT/TPR/M/294/Add.1 
 
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  QUESTIONS FROM MALAYSIA 
 KINGDOM OF BAHRAIN SECRETARIAT REPORT 
 
3.34. Food, plant and animal imports that are restricted for health reasons must be accompanied by Sanitary and phytosanitary health certificat es from the exporting country. Imports of food 
products must be accompanied by a certificate decl aring them to be free of radiation and dioxin 
(section 3.4.2.2 below). In addition, pharmaceutical products must be imported directly from a manufacturer with a research department, and the products must be licensed in the country of manufacture and in at least two GCC countries other than Bahrain, one of which must be the 
Kingdom of Saudi Arabia. 
 QUESTIONS: 
 Could Bahrain clarify the following:   
1. Requirement on Health Certificate- 
i) What type of food and food products require Health Certificate? 
 Answer:  
kindly visit the website of the ministry of health: 
http://www.moh.gov.bh/EN/ 
 
ii) When is the enforcement date of this requirement? 
 Answer: 
kindly visit the website of the ministry of health: 
http://www.moh.gov.bh/EN/  
2. Requirement on certificate declaring food and food products to be free of radiation and 
dioxin- 
i) What type of food and food products requir e a certificate declaring them to be free of 
radiation and dioxin? 
 
Answer: kindly visit the website of the ministry of health: 
http://www.moh.gov.bh/EN/ 
 
ii) When is the enforcement date of this requirement? 
 
Answer: 
kindly visit the website of the ministry of health: http://www.moh.gov.bh/EN/  
 
3. Please provide address to a web link on Law No. 3/1985 concerning the control of foodstuff. 
 
Answer: 
 http://www.moh.gov.bh/PDF/Legisla tions/Legislatio ns-1985-3.pdf 
 
4. Please clarify the requirement for pharmaceutical product to be licensed in at least two GCC 
countries of which one must be the Kingdom of Saudi Arabia before it can enter the Bahrain market? 
 
Answer:  
kindly visit the website of the ministry  of health: http://www.moh.gov.bh/EN/ WT/TPR/M/294/Add.1 
 
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  SECRETARIAT REPORT 
 Para 3.73 Imports of foodstuffs are inspected organolepticaly by the Ministry of Health to ensure that they 
are free from physical or visible contaminants. All meat and poultry products must be accompanied 
by an Islamic (Halal) slaughter certificate issued by an approved Islamic centre in the country of origin. All imported eggs must be individual ly stamped. Random samples are drawn from 
shipments for laboratory analysis according to a predetermined plan. All consignments that are 
imported for the first time are analysed before release. Results are assessed against GCC and Codex Alimentarius standards to ensure that impo rted food items are safe for human consumption. 
Unfit foodstuffs are rejected at the port of entr y; they are either destroyed or returned to the 
country of origin (the decision is left to the importer). According to the authorities, the same 
treatment applies to locally produced foodstuffs  
QUESTIONS: 
1. How long does it take to do a laboratory analysis for foodstuff entering into Bahrain for the 
first time? 
 
Answer:  kindly visit the website of the ministry  of health: http://www.moh.gov.bh/EN/ 
 
2. What is the treatment like for goods that are imported for the first time from high risk 
countries? 
 
Answer:  
kindly visit the website of the minist ry of health: http://www.moh.gov.bh/EN/  
3. Does Bahrain share its SPS data with other trading partners? 
 Answer: 
 
kindly visit the website of the ministry  of health: http://www.moh.gov.bh/EN/ 
 
4. Para 3.73 mention that Bahrain allows all meat and poultry products accompanied by an 
Islamic (Halal) slaughter certificate issued by an approved Islamic centre in the country of origin. Are there any other conditions that are required to be fulfilled before Bahrain accepts 
the Halal Certificate from the country of origin? If there are other conditions to meet, please 
provide the procedures required to fulfil th e requirements for accreditation bodies from 
countries of origin. 
 
Answer:  
 Kindly visit the website of the Minist ry of Municipality and Urbane planning  
http://websrv.municipality.gov.bh/agri/servlet/PdfGetter?id=92 
 GOVERNMENT REPORT 
 
PARA 3.47 In the past five years, iron and steel production from Bahrain has increased markedly.  In 2010, one of the leading companies in the industry has nearly doubled its production of iron oxide pellets 
with a new plant, and a new project was launched by its sister steel company to produce steel 
beams as a downstream industry to first company, and which is forecast to create 1,700 jobs.  A new rolling mill company also started commercial production of steel re-bars in 2008. 
 
QUESTION: 
What is the role of government in the fast growing iron and steel industry of Bahrain and what are 
the measures taken to make this energy-intensive industry an eco-friendly industry? 
 WT/TPR/M/294/Add.1 
 
- 30 - 
 
  Answer: 
 Projects in this field fall under decree numbe r 21 for the year 1996 on environment and the 
ministerial order number 1 for 1998 on environmental assessment for industrial projects. Where 
these Project are being assessed for their effects on  the quality of the environment as well as the 
health and social effects and for their effects on the resources. And to avoid any negative effects, its being coordinated with the investor to implement the precautionary measures to reduce any 
possible effects, the investor is also required to  implement environmental monitoring requirements 
based on a effects assessment study.  SECRETARIAT AND GOVERNMENT REPORT 
 
PARA 3.17 - Government Report 
 
Recently, the 2012/2013 Global Free Zones of th e Future Top 50 Rankings, released by Foreign 
Direct Investment Magazine has included four zones in Bahrain.  
 
PARA 3.52 - Secretariat Report 
 
QUESTION:  
The statement/information by the Kingdom of Bahrain and the WTO Secretariat on free zones are 
not consistent.  Does Bahrain have free zones and if there is, what is the general policy/guideline on free zones/industrial estates?  
 
Answer:  
Bahrain does not have free zones or export processing zones. WT/TPR/M/294/Add.1 
 
- 31 - 
 
  QUESTIONS FROM MEXICO 
 Se solicita amablemente al Reino de Bahrein, Omán y Qatar responder a las siguientes preguntas formuladas con base en lo señalado en los documentos WT/TPR/G/294 , WT/TPR/G/295 , y 
WT/TPR/G/296 , así como  WT/TPR/S/294 ,  WT/TPR/S/295  y WT/TPR/S/296  del 18 de 
marzo de 2014.  
En la elaboración de las siguientes preguntas se utilizaron las versiones en español, por lo que las 
referencias a los documentos corresponden a dichas versiones.  INFORME DEL GOBIERNO DEL REINO DE BAHREIN (WT/TPR/G/294) 
4 POLÍTICA COMERCIAL 
4.1 Bahrein y el mundo Página 15, párrafo 4.8 
 
México pregunta 1:  ¿Existe algún interés por parte de Bahrein de negociar nuevos tratados de 
libre comercio con países latinoamericanos? En caso afirmativo, cuáles serían esos países o 
regiones. 
 
Answer:  
Bahrain negotiates Free Trade Agreements collectively with the other GCC member states, The 
GCC have recently completed an economic feasibilit y study on the trade negotiations and based on 
the results of this study the GCC states will determine the priorities of the next phase of the 
negotiations. 
 INFORME DE LA SECRETARÍA SOBRE EL TERCER EXAMEN DE LAS POLÍTICAS 
COMERCIALES DEL REINO DE BAHREIN (WT/TPR/S/294) 
1 ENTORNO ECONÓMICO 1.5 Perspectivas Página 15, párrafo 1.26. 
 
En el párrafo 1.26 del Informe de la Secretaría se menciona que el “Gobierno continuará 
aumentando el gasto en subvenciones, infraestructura y vivienda social, y contará con la 
colaboración del sector privado para mitigar ciertas presiones sobre las finanzas públicas.”  
 México pregunta 2:   
En el párrafo 1.25 se menciona que se otorgan subsidios “sobre todo aluminio”. Al respecto, 
¿Podría indicar si esos subsidios han sido notificados al Comité respectivo y dar mayor detalle sobre los subsidios otorgados?  
Answer: 
 Paragraph 1.25 has no reference to subsidies 
 
2 RÉGIMEN DE POLÍTICA COME RCIAL: MARCO Y OBJETIVOS 
2.4 Acuerdos y arreglos comerciales 
2.4.2 Acuerdos regionales y bilaterales 
2.4.2.3 Estados Unidos Página 20, párrafo 2.28.  
México pregunta 3:  ¿Podría explicar brevemente en qué consisten las disposiciones especiales 
aplicables al comercio de textiles y prendas de vestir del Tratado de Libre Comercio entre Estados 
Unidos y Bahrein? 
 
Answer:  
Please visit the following link for Chapter 3: Textiles and Apparel of the Bahrain-US FTA: 
http://www.moic.gov.bh/En/Comme rce/ForeignTrade/F TA/Legal%20Text/Do cuments/6480dce7c0
10406887dae4774022c22203textiles.pdf   WT/TPR/M/294/Add.1 
 
- 32 - 
 
  Rules of Origin for Text ile and Apparel Products 
Textile and apparel products are subject to specific  rules based on change in tariff classification. 
The rules for textile and apparel products are generally referred to as "yarn forward," which requires that the yarn production and all operations forward occur in either Bahrain or the United 
States, but the fiber may be from anywhere. There are some exceptions in the rules requiring 
"fiber forward," and some requiring "fabric forwar d." For more details, see Article 3.2: Rules of 
Origin and Related Matters in the Textile and Apparel Chapter (Chapter 3). 
 
Tariff Preference Levels (TPL) 
The U.S.- Bahrain FTA allows for a certain quantity of cotton or manmade fiber textile and apparel goods that do not meet the rules of origin to enter under a preferential tariff rate. These limited 
allowances for the use of yarn and fabric from a non-party, referred to as TPL, allows Bahraini or 
U.S. fabric and apparel manufacturers some flexibility in their inputs. The TPL is set at a level of 65,000,000 square meters equivalent (sme) for each of the first ten years of the agreement. Any 
non-originating goods exceeding the quantity limits will be subject to the non-preferential (i.e., 
MFN) rate of duty.  
De Minims = 7% 
“A textile or apparel good that is not an originating good because certain fibers or yarns used in 
the production of the component of the good that de termines the tariff classification of the good do 
not undergo an applicable change in tariff classification set out in Annex 3-A, shall nonetheless be 
considered to be an originating good if the total weight of all such fibers or yarns in that 
component is not more than seven percent of the total weight of that component”. This special 
rule does not apply to elastomeric yarns. 
 
Elastomeric Yarn Requirement is available 
“Notwithstanding the preceding sentence in the de minimis rule, a good containing elastomeric 
yarns in the component of the good that determines  the tariff classification of the good shall be 
considered to be an originating good only if such yarns are wholly formed in the territory of a Party”.  
Treatment of Sets – 10% foreign value 
“Notwithstanding the specific rules of origin set out in Annex 3-A, textile or apparel goods 
classified under General Rule of Interpretation 3 of  the Harmonized System as goods put up in sets 
for retail sale shall not be regarded as originating goods unless each of the goods in the set is an 
originating good or the total value of the non-originating goods in the set does not exceed 10 percent of the value of the set determined for purposes of assessing customs duties”. 
 
i.e. Goods put up in sets for retail sale shall not be regarded as originating unless each of the products in the set is an originating good or the total value of the non-originating goods in the set does not exceed 10% of the adjusted value (FOB value) of the set. 
 
Visible lining rule 
Certain fabrics, when used as visibl e lining material in overcoats, an oraks, suits, jackets, skirts and 
similar articles, must be formed and fi nished in the parties (fabric forward). 
The visible lining rule shall only apply to the visibl e lining fabric in the main body of the garment, 
excluding sleeves, which covers the largest surface area, and shall not apply to removable linings. 
 
Bra Rule = 75% 
A change to subheading 6212.10 from any other chap ter, provided that the good is both cut and 
sewn or otherwise assembled in the territory of one or both of the Parties, and provided that, 
during each annual period, such goods of a producer shall be eligible for preferential treatment 
under this Agreement only if the aggregate cost of  fabric(s) (exclusive of findings and trimmings) 
formed in the territory of one or both of the Part ies that is used in the production of all such 
articles of that producer during the preceding annual period is at least 75% of the aggregate 
declared customs value of the fabric (exclusive of findings and trimmings) contained in all such goods of that producer or entity that are entered during the preceding one year period. 
 
Short Supply 
On the request of either Party, the Parties shall consult to consider whether the rules of origin applicable to a particular textile or apparel good should be revised to address issues of availability 
of supply of fibers, yarns, or fabrics in the territories of the Parties. WT/TPR/M/294/Add.1 
 
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  3 POLÍTICAS COMERCIALES, POR MEDIDAS 
3.3 Medidas que afectan direct amente a las exportaciones 
3.3.1 Procedimientos Página 34, párrafo 3.45. 
 
En el párrafo 3.45 del Informe de la Secretaría se aclara que tanto en las importaciones como en las exportaciones, “sólo las empresas o los particulares inscritos en el registro mercantil del MOIC 
y que sean miembros de la BCCI pueden llevar a cabo actividades de exportación.” 
 México pregunta 4:  ¿Todos los sectores de la economía que sean importadores o exportadores 
están deben necesariamente ser miembros de la BCCI para poder importar o exportar? 
 
Answer:  
All Commercial Registration (CR) holders other than banks including importers and exporters must 
obtain BCCI membership. This membership is obtained after getting the CR and it is not a prerequisite for applying for a CR. 
 
México pregunta 5:  En caso de que la respuesta a la pregunta anterior sea negativa, ¿cuáles son 
los sectores excluidos de la obligación de pertenecer a la BCCI? 
 
Answer: 
 Please refer to previous answer. 
 
3.4 Medidas que afectan a la producción y el comercio 3.4.2  Normas y otros requisitos técnicos 
3.4.2.1  Normas, metrología, pruebas y certificación 
Página 38, párrafo 3.63 y tabla 3.9. En el párrafo 3.63 del Informe de la Secretaría se explica el régimen de reglamentos técnicos y 
normas de Bahréin. En particular, se destaca que hacia marzo de 2013, Bahrein tenía “6.693 
normas nacionales en vigor, de las que 3.433 (el 50%) se habían adoptado a partir de normas 
internacionales y 3.260 se basaban en normas internacionales modificadas por la GSO o normas extranjeras. Además, Bahrein tiene 1.601 reglamentos técnicos.”  
 
México pregunta 6:  ¿Cuáles son las normas y los reglamentos técnicos aplicables a los vehículos 
para el transporte de mercancías, refrigeradores (o frigoríficos) de comprensión y a los vehículos 
para el transporte de personas, ya sean nacionales o importados por Bahréin? 
 Answer:  
We have a technical regulation GSO 42:2003 for general requirements of motor vehicles which 
covers the requirements for construction of motor vehicles ensuring high level of safety, environmental protection, and antitheft performance, plus some other standards and technical 
regulations for the concerned subject. For more information, pls. refer to the list which is published 
under this link:  http://www.moic.gov.bh/En/Commerc e/StandardizationConsumerPro tection/StandardsMetrologyDi
rectorate/Pages/index.aspx.  
 3.4.3  Derechos de propiedad intelectual 3.4.3.3  Derecho de autor y derechos conexos 
Página 43, párrafo 3.89. 
El párrafo 3.89 del Informe de la Secretaría describe que la Ley Nº 22/2006 de Derecho de Autor y Derechos Conexos introdujo la protección de los derechos conexos y estableció la protección con 
carácter retroactivo. 
México pregunta 7:  ¿De qué manera funciona el mecanismo de protección retroactiva de 
derechos de autor y derechos conexos de la Ley Nº 22/2006? 
 
Answer: A copy of the law can be found at the following website: http://www.legalaffairs.gov.bh/Adv ancedSearchDetails.aspx?id=3305  WT/TPR/M/294/Add.1 
 
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  4  POLÍTICAS COMERCIALES, POR SECTORES 
4.5  Servicios 4.5.1  Servicios bancarios,  financieros y de seguros 
4.5.1.2  Servicios bancarios 
Página 55, párrafo 4.58. 
En el párrafo 4.58 del Informe de la Secretaría, Bahrein distingue entre bancos corrientes y bancos 
islámicos. 
 
México pregunta 8:  ¿Cuál es la diferencia entre ambos tipos de bancos? 
 
Answer: 
 
The difference between Islamic and Conventional Banking Principles: 
 
Islamic banking has the same purpose as conventional banking except that it operates in 
accordance with the rules of Shari’ah, it is known as Fiqh al-Muamalat  (Islamic rules on 
transactions). Islamic banking activities must be practiced consistent with the Shari’ah and its 
practical application through the development of Islamic economics. 
 The basic principle within Islamic banking is that it is not permissible to charge interest for the mere use of money. Whereas conventional financ ial institutions “trade” in money (buying money 
from depositors and selling money in the form of loans), Islamic financial institutions must “trade” 
in real assets or services.  
The operations of Islamic financial institutions are primarily based on a profit and loss sharing 
principle. An Islamic bank does not charge interest but rather participates in the yield resulting from the use of the funds. Its account holders also  share in the profits of the bank according to a 
predetermined ratio. There is thus a partnership between the Islamic bank and its account holders, 
on the one side, and between the bank and its investment clients, on the other. This is in contrast with a conventional bank, which mainly borrows funds paying interest on one side of the balance sheet, and lends funds charging interest on the other 
 
To avoid using the interest rate instrument Islamic financial institutions have devised a variety of different types of financial contracts which have, as their common characteristic, the concept that 
risks and rewards are shared between the institut ion and its customers. In the past decade an 
important innovation has been the development of an Islamic "bond" market. These tradable 
securities – known as "Sukuk" – differ from conventional bonds in that the coupon payments on 
them represent profits on real economic activities rather than the payment of interest. Sukuk are 
flexible financing instruments that have attracted a wide range of investors and issuers, both Muslim and non-Muslim. These structures have been used by the Governments of the Gulf 
Cooperation Council, as well as by Indonesia, Malaysia and Pakistan, the German State of Saxony-
Anhalt, the World Bank and other governments and corporations. 
 The following concepts mainly distinguish Islamic banking from conventional banking: 
 
‐ Any contact based on the occurrence or the non-occurrence of a future uncertain event, 
within Islamic banking, is not generally allowable, such as hedging, dealing with derivatives etc.  
 
‐ Any transactions undertaken for purely speculative purposes such as gambling are not 
allowed within Islamic banking.  
‐ Shari’a (Islamic law) prohibits using or dealing in certain commodities or activities. Islamic 
financing is therefore inappropriate for financing any enterprise involved in any of the following types of activities/commodities: pork, pornograph y, conventional financial services, arms and 
munitions, tobacco, gambling and alcoholic liquor. 
 ‐ Due to the prohibition on paying and receiving interest, Islamic banks cannot mobilize funds 
by paying interest to their depositors. Funds ar e mobilized on the basis of the mudaraba contact 
by which Islamic banks agree to manage the fund s of customers (investment account holders) in 
return for receiving a share of the profits from investing the funds and investment account holders agree to bear any losses incurred from investing their funds. 
 WT/TPR/M/294/Add.1 
 
- 35 - 
 
  ‐ On the “asset” side of their balance sheet, Islamic banks, unlike conventional banks, cannot 
lend money by charging interest but have to engage in permissible investment and trading activities. This is reflected in the structure of their assets being different from that of conventional banks. 
 
Islamic Financial Instruments:  
Mudarabah: Profit Sharing Agreement 
A mudarabah is a contract between investors and a financial institution that, acting as a silent 
partner, deposits in a commercial activity that earns each partner an agreed upon portion of the profits of the venture. A mudarabah can be entered into for a single investment or on a continuing 
basis with the financial institution acting as a fiduciary. Mudarabah investments may be made for 
fixed terms and arranged through negotiable instuments (called investment deposit certificates or Mudarabah certificates) and thus may have characteristics similar to those of shares. Mudarabahs 
are also similar to fixed depository accounts in conventional banking. 
 Murabaha: Cost Plus Financing 
 A murabaha is refers to contracts in which a financial institution purchases goods upon the request of a client, who makes deferred payments that cover costs and an agreed-upon profit margin for the financial institution. The financial institution handles payment to a supplier and the incidental 
expenses of delivery (against a deferred payment made by the buyer to cover delivery costs and 
an agreed-upon share of the buyer’s markup). Mura baha is the most widely used instrument of 
Islamic finance with 75% of total contracts being murabaha based. It is widely used in consumer 
and corporate financing as well as in  subordinated or term financing. 
Other Islamic Financial Instruments:  
1- Musharaka: Equity Participation 
2- Ijarah: Leasing 
3- Salam and Parallel Salam: Deferred Delivery 
4- Sukuk: Islamic Bonds 
Istisna’a: Work in Progress  WT/TPR/M/294/Add.1 
 
- 36 - 
 
  QUESTIONS FROM PAKISTAN 
 BAHRAIN 
 
1. Could Bahrain share its experience with the successes achieved under Vision 2030, and esp. 
the National Economic Strategy adopted in 2008? 
 
Answer: 
 The Vision 2030 built on the reform programme, established in 2001 under the leadership of His Majesty King Hamad, which has played a critical role in guiding Bahrain’s political, economic and 
social development and supporting the continued process of economic reform and diversification.  
 The Vision outlined several objectives, including doubling real household income by 2030, and 
outlined a vision of a fair society with opportunities for all citizens. The National Economic Strategy 
(NES), which was adopted in 2008, served as link between ministerial plans and the Vision 2030, which set out high-level goals for the nation as  a whole. The NES served several purposes:  
 
 It defined a set of tangible short to medium te rm initiatives, which were intended to which 
contribute to the overall long term goal of the Vision 2030. 
 It created a bridge between the vision and minist erial plans, creating a reference for entities 
to ensure that their plans complemented and di d not contradict the overall direction of the 
country. 
 It clearly defined roles and responsibilities for each initiative, and defined dependences 
between entities for each initiative increasing cooperation and awareness.  
 The initiatives set in the NES also served as the basis of tracking progress across 
government. 
 
In conclusion, the success of the NES has been to serve as a coordinating document for government, allowing the continuous tracking and implementation of government objectives it has set out.  
 
Some examples of the successful reforms include:  
 Undertaken labour market reforms, including establishing the Labour Market Regulatory 
Authority (LMRA) and Tamkeen 
 Launched key education initiatives, such as the establishment of Bahrain Teachers College, 
and of the Quality Assurance Authority for Educ ation and Training, an independent body to 
monitor the quality of education in the Kingdom 
 Worked to boost housing availability, including through public-private partnerships 
 Streamlined, simplified and increased the effi ciency of the process of obtaining commercial 
registration and all associated business licenses 
 In January 2014, the government launched the planning process for the 2015 to 2018 Government 
Programme. The planning process, taking place in the first half of 2014, is designed to provide all 
in government with clarity about the priorities and to develop an integrated, practical plan of 
action for the next four years. 
 
2. The Secretariat Report notes that Bahrain has relatively modest hydrocarbon resources compared with its neighbours. As a result, Bahrain has for decades followed an economic diversification strategy and expansion has been ra pid across much of the non-oil economy. On the 
other hand, the Report also points out that the trade base is still vulnerable to oil shocks and 
Bahrain therefore needs to further diversify its economy to increase the contribution of non-oil exports to the trade balance. The Report goes on to highlight that in 2011, nonoil sectors such as 
financial services and tourism were greatly affected by the Euro-zone crisis as well some domestic 
tension. These factors reflect structural vulnerabilities to exogenous influences having the potential to rock the boat. What strategic measures does Bahrain plan to tackle such vulnerabilities? 
 
Answer:  Bahrain faced the effects of the global recession and fall in oil price in 2009, and faced the effects 
of local and regional unrest in 2011, though it is important to note that Bahrain has experienced WT/TPR/M/294/Add.1 
 
- 37 - 
 
  relatively stable and consistent economic growth  throughout the past 10 years. In 2013, growth 
reached over 5 per cent.   Between 2009 and 2013, Bahrain responded with co untercyclical spending and increased its debt. 
In subsequent years, the global growth and local stability outlook improved, with Bahrain 
maintaining positive growth, and the near- to medium-term outlook offers an opportunity for Bahrain to implement structural reform to strengthen its resilience to exogenous shocks. 
 
In a reversal of the pattern observed last year, economic growth in the Kingdom in 2014 looks likely to be driven by the non-oil economy,  thanks to a number of different factors. 
 
A number of infrastructure projects approved by the Gulf Development Fund are due to be 
launched in the coming months. According to recent Ministry of Finance statements, Bahrain is due to implement projects worth around USD4.43bn in the coming years. 
 
The Bahraini banking sector is also characterized by  high levels of liquidity and low loan-to-deposit 
ratios. This should enable it to boost lending once the project flow accelerates and confidence 
levels improve. 
 Current account and trade Bahrain has consistently had strong current account surpluses in the past, amounting to 7% of 
GDP in 2012 and 11% in 2011. Even with the oil price crash in 2009, Bahrain still achieved a 
positive trade balance of 2.4% of GDP. Furthermore, Bahrain was a net exporter of non-oil goods in 2012 with growth of non-oil goods of 10% in 2012 and 20% in 2011. Aluminum and steel 
products now form a large share of Bahrain’s non-oil goods exports. 
 Bahrain is also a net exporter of services, with exporters averaging about double imports of 
services in recent years. Tourism, telecommunications and financial services have all been strong 
export areas for Bahrain.  Furthermore, the central bank’s foreign exchange assets exceeds the total value of non-oil goods 
imports for the year 2012, providing a strong bu ffer in maintaining the currency peg to the US 
dollar.  
Despite our relative strength in reserves and the trade balance, Bahrain does recognize 
diversification as an important goal for reaching long-term economic sustainability. Additionally, the government realizes that a small economy must rely on trade to grow the economy. With this 
in mind, several initiatives are being undertaken, including sector development plans, SME 
financing and advisory schemes, and the proposal of  an export development center which aims to 
aid SMEs grow and expand into foreign market s. FDI inflows in 2012 were equal to 3.4% of 
Bahrain’s nominal GDP, the highest percentage in the GCC, and Bahrain also had the second 
highest rate of return to FDI in the world, according to UNCTAD. 
 Fiscal situation 
Bahrain’s fiscal situation deteriorated markedly from 2008 as oil prices fell. Debt to GDP has 
increased to approximately 40% of GDP as of 20 13, and the budget deficit for 2013 was estimated 
at approximately 2.5% of GDP. The build-up in de bt represented a countercyclical response to the 
global downturn, thus the situation in Bahrain is similar to the rest of the world. However, the 
long-term strength of the Bahraini economy and strengthening of recent economic data has meant S&P and Fitch both have BBB-stable ratings.  
Markets’ confidence in the Bahraini government’s fiscal outlook has been reflected in the ability of 
the Bahraini government to raise both short and lo ng term debt; in July 2013, Bahrain carried out 
a conventional bond issue, which saw oversubscr iption rates of 500% for the $1.5bn, ten-year 
sovereign bond. 
 Nonetheless, the government recognizes its vulnerability to oil price fluctuations and has plans to 
diversify and enhance revenues while containing the rate of spending growth. Bahrain’s system of 
subsidies is also under review with a complete pricing policy review currently underway for fuels and gas. While Bahrain is vulnerable in the medium to long term, current forecasts for oil prices remain over USD 100 over the next two years, and debt levels are still with in a manageable range, WT/TPR/M/294/Add.1 
 
- 38 - 
 
  allowing Bahrain time to implement structural reforms to its fiscal policy, with plans to involve 
more private capital in development.  3. Since the global financial crisis, Bahrain has been trying to attract FDI in sectors other than 
financial services, such as downstream industries. How far has Bahrain been successful in 
attracting FDI for the downstream industries? Has the share of downstream industries increased as 
a result?  
 
Answer:  “The Kingdom of Bahrain has met with considerable success in attracting FDI in downstream 
industries. Downstream industries are part of the manufacturing sector that has registered an 
annual average growth of 6.5% between the years 2000-2012, with the sect or growth peaking at 
16% in 2005. The sector’s contribution to GDP increased from 12.4% in 2000 to 14.8% in 2012, 
and has been responsible for 18% of GDP growth  between 2000 and 2012. Manufacturing has led 
the process of economic diversification in the Kingdom of Bahrain. According to CIO’s 2013 report, the growth rate of the downstream industries is  7.4% at constant prices and 10.4% at current 
prices. Specific data in regard to share of downstream industries in total FDI is not available.” 
 4. The Secretariat Report notes that exports wi ll be driven mainly by manufactured goods, 
primarily aluminium and petrochemicals, as competition in the area of services increases from 
other countries in the region. For financial services, Bahrain's reputation for being well-regulated 
as well as its Islamic finance niche will help sustain growth in this sector. How does Bahrain plan to sustain its lead/competitiveness in the Islamic finance niche? 
 
Answer:  
Bahrain has managed to advance its leadership position as the international hub for Islamic 
finance due to its strong fundamentals, pioneering initiatives and world-class regulatory 
environment, not to mention its continued efforts and initiatives to develop skilled resources and 
enhance existing ones in different fields of Islamic finance. The Central Bank of Bahrain has 
installed a comprehensive prudential and reporting framework, tailor-made for the specific 
concepts and needs of Islamic banking and insurance. The rulebook for Islamic banks covers areas 
such as licensing requirements, capital adequacy, risk management, business conduct, financial 
crime and disclosure/reporting requirements. Simi larly, the insurance rulebook addresses the 
specific features of takaful and re-takaful firm s. Both rulebooks were the first comprehensive 
regulatory frameworks that dealt with the Islamic finance industry. 
 
In addition to the numerous Islamic financial institutions active in its financial sector, Bahrain also 
plays host to a number of organizations central to the development of Islamic finance, including: i) 
the Accounting and Auditing Organisation for Islamic Financial Institutions ('AAOIFI'); ii) Liquidity 
Management Centre ('LMC'); iii) the International Islamic Financial Market ('IIFM'), iv) and the 
Islamic International Rating Agency ('IIRA') and v) Shari’a Review Bureau. 
 
The Kingdom of Bahrain enjoys a number of experienced and well known Shari’a scholars whom 
are in most shari’a boards of Islamic financial institution not only in Bahrain alone, but throughout 
the region. Many qualifications are available which specialize in the Islamic finance field providing 
the sufficient amount of knowledge and training needed. 
 
The Central Bank of Bahrain has also recently established a special fund to finance research, 
education and training in Islamic finance (the Waqf Fund); and is active in working with the 
industry and stakeholders in developing indust ry standards and the standardization of market 
practices. 
 
The Central Bank of Bahrain also acts as the agent of the Government of the Kingdom of Bahrain 
in implementing a regular issuance programme of Shari'a compliant short-term Government securities. A series of Government long-term leas ing Sukuk have also recently been launched. The 
leasing Sukuk are the first of their kind to be issued by a central bank. 
 5. The Secretariat Report states that the size of Bahrain’s banking sector remains a key structural vulnerability. How does Bahrain plan to address this vulnerability? 
 WT/TPR/M/294/Add.1 
 
- 39 - 
 
  Answer: 
 Bahrain’s financial sector consists of both conv entional and Islamic banks. As of February 2014, 
Bahrain has 28 Retail banks and 76 Wholesale Banks, of which 24 are Islamic.  The financial 
sector’s contribution to the domestic economy represented 17% in 2012.  The Bahraini economy 
has proved outstanding solidity and flexibility in withstanding the security challenges and global 
economic changes which is evident in the steady growth in the Kingdom. 
 
The CBB is aware of the size of its banking sect or that makes 6 times of GDP. The CBB believes 
that it has been able to overcome any vulnerabilities and obstacles through strong regulation which the CBB is well known in the region for and is the reason behind Bahrain’s reputation as a 
financial hub and a global center of Islamic Finance. 
 Bahrain has always been known for open and transparent supervisory approach with new 
regulations subject to consultation and always emphasizing international best practices. Bahrain’s 
success as an efficient regulator is reflected in CBB’s strong supervisory capacities through onsite inspections and offsite monitoring. 
 
The CBB knows the high costs of financial crises and their tendency to emerge quickly having a 
contagion effect. The CBB through contingency pla nning has a set of policies and procedures for 
prevention management and containment to face indi vidual or systemic disturbances. It is through 
these procedures that Bahrain has been able to fa ce and limit the effects of the global financial 
crisis.  
The role of the regulator in addressing these cha llenges is crucial. The CBB provides the guidance 
and create the appropriate regulatory framewor k to enable the sound and stable conduct of 
financial services. 
 
The CBB has also worked on compiling a list of Systemically Important Banks (SIBs) using the methodology provided by the Bank for International Settlement (BIS) Basel Committee on Banking Supervision. The SIB’s were chosen based on the following indicators as listed below: 
 
1. Cross-jurisdictional activity 2. Size 
3. Interconnectedness 
4. Complexity 
 
The CBB created a list of 10 SIB’s that are a combin ation of retail, wholesale, and Islamic banks. 
For the SIB list, the CBB’s Supervision works with these Banks in monitoring them more closely. 
Such institutions are more robustly regulated. Periodic reviews, contingency planning and stress 
tests are performed on these SIB’s. In case of early warning signs’ of problems, the CBB would 
intervene. 
 The CBB believes that there also should be a fo cus on locally incorporated retail banks (deposit 
taking institutions) because of the importance these banks play within the local economy. One of 
the key reasons that retail banks are regulated so  highly is that consumers and businesses place 
deposits with them which they count upon to be readily available and riskless. There can be severe 
economic disruptions if depositors find their funds suddenly unavailable. Therefore, support to 
domestic commercial banks is seen as a priority.  The CBB believes that offshore branches operating in Bahrain report to their main office and 
therefore in a financial crisis, the main office woul d be the first to intervene if one of the branch 
offices in Bahrain faced a problem. As for wholesale banks, The CBB believes that the main shareholders of these wholesale banks, who’s majori ty are from outside Bahrain, will be able to 
intervene when necessary.  Most of wholesale banks investments are outside Bahrain. A failure of 
a wholesale bank would not be seen as having significant financial stability consequences as a retail bank. 
 
6. As the regulator of the market, the Telecommunications Regulatory Authority (TRA) undertakes periodic reviews to ensure that operators do not hold significant market power or dominance in the market. Can Bahrain explain if any actions have been taken by the TRA so far? 
 WT/TPR/M/294/Add.1 
 
- 40 - 
 
  Answer: 
 Following its Strategic and Retail Market Review in 2008, TRA took a number of specific regulatory measures to increase competition in telecommunications markets in Bahrain (see 
http://216.25.41.106/EN/pdf/FINALStatementonS trategicandRetailMarketsReview20080603.pdf ). 
These included, among others, the introduction of local loop unbundling, carrier pre-selection, the 
issuance of a 3rd mobile licence, and the introduction of number portability. 
 
In addition, TRA undertakes periodic market reviews to ensure that the scope of the ex ante regulatory framework remains appropriate, taking into account competitive developments. Where an operator is found to have significant market power in a retail market or dominance in a 
wholesale market, the operator must comply with regulatory obligations (for example in terms of 
retail tariff controls and the privision of wholesale access).  For example, TRA recently issued a determination that Batelco no longer has SMP or dominance with respect to the supply of mass-
market broadband services (see 
http://www.tra.org.bh/media/document/MC D%2003%2014%20018%20Fi nal%20SMP%20and%2
0Dominance%20Determination%20Broadband%20PV.pdf ). As a result, Batelco is no longer 
required to notify TRA of any changes in its reta il tariffs for mass-market fixed broadband services, 
nor to offer regulated wholesale access in respect of mass-market fixed broadband services.  In those markets where an operator does have SMP or dominance, TRA is involved in reviewing 
tariffs to ensure that they meet the tests set out in the Telecommunications Law or in Regulations 
issued by TRA.  For example, termination services are subject to cost-based regulation in Bahrain, 
as are domestic leased line services. TRA reviews the price and non-price terms of access for these 
services to ensure that they are fair and reasonable. 
 GCC 
 1. The GCC has negotiated an FTA with EFTA but has not been ratified by all the parties. GCC 
leaders have temporarily halted negotiations on further FTAs pending the outcome of an impact study on the matter. When is the impact stud y expected to be concluded and made public? 
 
Answer:  
The GCC have recently completed an economic feasibility study on the trade negotiations and 
based on the results of this study the GCC states w ill determine the priorities of the next phase of 
the negotiations. WT/TPR/M/294/Add.1 
 
- 41 - 
 
  QUESTIONS FROM THE REPUBLIC OF KOREA 
 PART I: Questions Regarding the Secretariat Report 
 
Page 57(Para 4.89) 
 
Bahrain’s telecommunications sector grew substantially during the review period. In 2012, annual 
gross turnover reached over US$1 billion, representing around 4% of GDP. A total of 3,141 people work in the sector, a 50% increase since the la unch of the liberalization policies in 2003. The 
number of Bahraini employees in this sector is also amongst the highest in Bahrain, at 80% in 
2012. This is mainly due to the sector’s high prod uctivity and reliance on skilled employment. The 
sector also boasts a high female ratio of 29% compared with a workforce average of 21%.  
Question 1 
 
Korea recognizes Bahrain’s efforts in liberalizing its telecommunications sector, and its subsequent 
success in increasing the number of Bahraini employees in the sector. However, we also notice 
that the move toward privatization in Bahrain has generally been slow despite the establishment of a special committee on the issue in 2008. Are there any plans to renew efforts to foster private 
sector participation? 
 Answer:  
The Bahrain government currently owns a direct stake in Batelco (through the government’s 
investment company Mumtalakat Holdings).  The Bahrain government does not own stakes in the other major telecommunications companies in Bahrain.  Based on an analysis of sector revenues, 
the Bahrain government’s direct stake in Batelco translates to a 17% share of sector revenues. 
 I t is  als o wo rth noting  that Zain G rou p  p lans  to l i s t 1 5 %  of the  s hare s  of Zain Bahra i n on the  
Bahrain bourse through an IPO during 2014, which will increase the opportunity for private 
investors in Bahrain to take a direct stake in the telecommunications sector in Bahrain. WT/TPR/M/294/Add.1 
 
- 42 - 
 
  QUESTIONS FROM SINGAPORE 
 PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT  
2 TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES  
Trade policy formulation 
Page 17 (Para 2.10) 
 
1. We would like to understand the GCC customs union’s treatment of imports that qualify for 
tariff concessions under the Bahrain-US FTA. Assuming that a US-originating product qualifies for 
tariff concessions under the Bahrain-US FTA and thus enters Bahrain at a duty-free rate, would 
this US-originating product be allowed to circulate free of duty across the customs union thereafter (for example, imported into Bahrain and subsequently sent to Saudi Arabia)?   
Answer: 
 Products that qualify for tariff concessions under the Bahrain-US FTA and enters Bahrain and 
eligible for a duty-free treatment under the FTA wo uld be subject to imposition of the applicable 
GCC Unified customs tariff rate in case the product’s final destination or re-exported to other GCC states.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
Contingency measures 
Page 30 (Para 3.35) 
 2. We would like to seek clarification on how the GCC Common Law on Antidumping, 
Countervailing Measures and Safe guards is operationalised: 
 
a. How would dumping injury be assessed – would it be based on injury in one GCC 
member state or the whole of GCC? 
 
Answer:  
According to GCC Common Law, injury is assessed on GCC industry which is domestic producers 
of the like product for GCC countries as a whole. This conforms to article 4 of WTO Anti-dumping 
Agreement.  
b. Is it possible for anti-dumping, safeguards or countervailing measures be evoked if 
only 1 GCC member was injured but the rest of the GCC was not?   
Answer: 
 
According to GCC Common Law which in line with article 4 of the WTO Anti-dumping Agreement, as far as the injured industry meets the criteria mentioned in the law i.e. 25%/50% condition 
regardless its location and the number of affected countries. Thus, injury is related to domestic 
industry of the GCC market as a whole.  
 c. What are the objective criteria used to assess that injury is done to the GCC as a 
Customs Union for the purposes of imposing anti-dumping, countervailing measures and safeguards for GCC as a whole? 
 
Answer:  According to GCC Common Law, injury shall be based on positive evidence and involve an 
objective examination of both a) the volume of the dumped imports (to all GCC countries) and the 
effect of the dumped imports on prices in the domestic market (total market for all GCC members) for like products, and b) the consequent impact of this imports on domestic producers (domestic 
producers of the like products for GCC countries as a whole) of such products. This conforms to 
article 3 of WTO Anti-dumping Agreem ent regarding assessment of injury 
 WT/TPR/M/294/Add.1 
 
- 43 - 
 
   d. If a non-GCC country is found guilty of dumping into only one specific GCC Member 
State, would the anti-dumping duty on the non-GCC country apply only for the injured GCC Member State or would it apply for the rest of the GCC?  
Answer: 
 The anti-dumping duty would only apply for the injured GCC Member state. WT/TPR/M/294/Add.1 
 
- 44 - 
 
  QUESTIONS FROM TURKEY 
 
QUESTIONS REGARDING THE SECRETARIAT REPORT Para. 1.23: 
“…, Bahrain needs to attract more investors in the non-oil sector in order to support the country's economic diversification plans.….”  
Does the Government of Bahrain have a future plan in order to encourage foreign investors to 
invest in the non-oil sector?  Answer: 
 
Bahrain has been a pioneer of economic diversification in region and the route to further diversify the economy by attracting FDI in non-oil sectors is being pursued actively. The plan to attract 
foreign direct investment in non-oil industrial sector is focused on creation of a robust and 
business friendly ecosystem supported by a transparent and well- structured legal framework, a world class infrastructure and best quality of life in the region. 
 
The FDI trends over the past few years have shown that the financial services, logistics, manufacturing, healthcare, and ICT sectors all continue  to expand and we expect this to continue.   
In 2013, Bahrain attracted USD114mn of foreign investment into the country from North America, 
Europe and Asia – a 12% increase on the level of investment secured in 2012. The new arrivals 
included 35 companies. This boost will help create more than 800 jobs in the Kingdom over the course of 3 years across a range of sectors including financial services, logistics, manufacturing, 
healthcare, and ICT. The Bahrain International Investment Park has been attracting new 
investment in the industrial sector. As of firs t quarter of 2014, total number of approvals for 
investment projects in the Park reached 105. The total value of investments attained is BHD687mn 
with potential to generate around 10,000 jobs.  
 Bahrain attracted $891m in FDI in 2012, a 14% increase on the previous year, and during 2012 and 2013 EDB helped 75 firms invest in the Kingdom, across sectors including financial and 
professional services, logistics, manufacturing an d renewable energy from North America, Europe, 
Asia and the Middle East.  
We expect the manufacturing sector in particular to perform well, building on our regional access 
and FTA with the US, and year-on-year growth in the third quarter of 2013 was 5.6 per cent.   
The regional demographics alongside Bahrain’s track record will also support the long-term growth 
of the financial service sector. The CBB, the Kin gdom’s sole regulator, continues to drive forward 
regulatory reform and development. In 2013, th e CBB brought in new directives on banking 
remunerations and fees, updated directives on banks’  internal audit function in line with new Basel 
requirements and issued new rules, that meant that all applications that are prepared in 
accordance with the Unified Standards issued by th e Gulf Cooperation Council by Gulf issuers will 
be accepted in Bahrain, easing the integration of GCC securities markets. 
 
The CBB also recently implemented new rules set to boost the takaful sector by addressing some issues around solvency, which have had the potential to hold back the rapidly expanding industry. 
The takaful industry in Bahrain has experienced a remarkable growth in the last ten years – the 
industry grew by almost 22% in 2012 - and by continuing to evolve the takaful model, the Kingdom will remain a leading jurisdiction for the sector, and for Islamic Finance as a whole.   
As part of sector development programs, Bahrain seeks to identify which parts of the value-chain 
of a particular sector would suit Bahrain and maximize the benefit for the investor and Bahrain. In turn, Bahrain will focus on maximizing its business attraction efforts to relevant companies, while 
enacting domestic reforms to further improve Bahrain’s competitive advantage is the particular 
industry and value-chain. In many instances, we seek to build on existing companies and 
operations to enhance value creation through further downstream activity and innovation. Our 
central priority with all foreign investment is to make sure that projects are sustainable and 
produce quality jobs and growth for the economy.   Another key project is the modernization and expansion of the Bahrain International Airport. We 
already have a vibrant new port, located close to the airport, and we are moving forward with the WT/TPR/M/294/Add.1 
 
- 45 - 
 
  wider GCC community in the development of a ra il network. The planned airport modernisation 
project will mean that Bahrain offers integrated connectivity as a major transportation hub with the closest links between road, sea and aviation in the region. In the meantime, the restructuring program of the national carrier, Gulf Air, ha s continued and the carrier signed a USD 100mn 
agreement with Rolls-Royce for its Airbus A330 fleet. All this helps companies to easily move their 
goods and services across the GCC and beyond.  
Para. 2.20: 
As it is known, the Gulf Cooperation Council (GCC) states have operated a common external tariff 
(CET) since January 2003, with the establishment of the GCC Customs Union.  
On the other hand, two member countries have separate individual FTAs with USA: Bahrain since 
2006 and Oman since 2009.  
In this regard, we would be pleased to get your comments on how you can manage the 
implementation of the FTA along with the customs union established with other GCC countries? What measures do you have in place to prevent trade divergence? 
 
Answer:  Products that qualify for tariff concessions under the Bahrain-US FTA and enters Bahrain at a duty-
free rate would be subject to imposition of the applicable Customs tariff in case  the final 
destination or re-exporte d to other GCC states.  
Para. 2.32: 
It is reported that the Gulf Cooperation Council (GCC) has suspended ongoing negotiations on Free 
Trade Agreements (FTA) with all of the countries and announced that it would decide to resume 
the negotiations after the feasibility studies have been completed.  
 Taking into consideration that it has been more than 4 years since the suspension, we would be 
pleased to get information about the state of play of feasibility studies? If the work is already 
concluded, what are the outcomes of the studies; will the GCC continue to pursue conclusion of 
FTAs around the globe?  
Answer: 
 The GCC have recently completed an economic feasibility study on the trade negotiations and 
based on the results of this study the GCC states w ill determine the priorities of the next phase of 
the negotiations.  
Para. 3.2 
 
The documentation for all imported products must be authenticated by the consulate of Oman or 
representative, or any Arab Embassy in the country of origin.  
 
Could Omani Government kindly explain how long does the authentication process take?  
NOTE: This question does not relate to Bahrain 
 
QUESTIONS REGARDING THE GOVERNMENT REPORT 
 
Para. 3.12 
 As stated in the Government Report, “Bahrain offers various investment incentives to national and 
foreign investors alike. These incentives include short and long-term loans with low interest rates 
from the Bahrain Development Bank for financing capital assets, and a core portion of working capital for small and medium-sized industrial projects; low rents for land in government industrial 
areas; low energy tariffs for production; and flexible regulations and procedures regarding foreign 
workforce.” 
 WT/TPR/M/294/Add.1 
 
- 46 - 
 
  Could Kingdom of Bahrain elaborate on the regulations and procedures under consideration 
regarding foreign workforce?  Answer: 
 
The Labour Regulatory Authority (LMRA) is the relevant authority for the regulations and procedures related to foreign workers. Please visit their website for further information at the 
following link: http://portal.lmra.bh/english/portal 
 Other questions 
 
Bahrain is the 12th most open economy, according to the Heritage Foundation Index of Economic 
Freedom, however it is ranked 42nd out of 184 count ries in ease of doing business, according to 
the World Bank. What are the negative factors that affect Bahrain’s ease of doing business ranking 
and (if any) what are the measures to address them? 
 Answer: 
 
Rankings are relative and reflect just as much developments in other countries as they do in Bahrain. While our rankings remains generally st rong, some deterioration has been observed in 
recent years. Bahrain now ranks  46th worldwide amongst 189 economies in the 2014 Doing 
Business (DB) Report published by the World Bank and the International Finance Corporation. 
Bahrain performs comparatively well and is the first in the MENA region in dealing with construction permits and resolving insolvency and fo urth in the region in registering property and 
paying taxes. 
 
DB pillars DB 2014 Rank *DB 2013 Rank Change in Rank 
Starting a Business  99 90 ↘ -9 
Dealing with Construction 
Permits  4 4   
No change 
Getting Electricity  52 51 ↘ -1 
Registering Property  32 30 ↘ -2 
Getting Credit  130 154 ↗ 24 
Protecting Investors  115 113 ↘ -2 
Paying Taxes  7 8 ↗ 1 
Trading Across Borders  81 79 ↘ -2 
Enforcing Contracts  122 119 ↘ -3 
Resolving Insolvency  27 27 No change 
  189 economies    
 
The main reason for the deterioration in the rank of starting a business is that the Kingdom has 
increased the cost of the business registration ce rtificate, coupled with the high minimum capital 
requirement (the Kingdom requires  new limited liability companies to deposit the equivalent of 
more than 200% of income per capita in bank accounts to complete the registration and 
commence business operations). 
Initiatives are under consideration or in process to address these concerns. These include 
initiatives to: 
1)   Simplify and streamline the business startups procedures and make the Bahrain Investor 
Centre a true online one-stop shop  2)   Abolish minimum capital requirements for companies with limited liability and in parallel, 
introduce legal provisions/amendments to the company law to improve creditor rights and minority 
protection  
 
 WT/TPR/M/294/Add.1 
 
- 47 - 
 
  3)   Expand the information availa ble from the private credit bureau 
4)   Re-organize and streamline the legal processes for businesses  5)   Facilitate and speed the process of contract dispute settlements 
 WT/TPR/M/294/Add.1 
 
- 48 - 
 
  QUESTIONS FROM THE UNITED STATES 
 PART I:  QUESTIONS ON THE SECRETARIAT REPORT (WT/TPR/S/294) 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.2 Measures Directly Affecting Imports 
3.2.5 Import Prohibitions, Restrictions, and Licensing  
Page 29, paragraph 3.32, Table 3.5:  Please provid e a copy of the most recent notification from 
Bahrain’s official journal or other official document regarding import prohibitions as well as the 
reasons for the prohibitions.  
Answer: 
 All official journal documents issued can be found at the following website address of the 
Legislative and Legal Opinion Commission: www.legalaffairs.gov.bh . Copies of the Official Gazette 
can also be found at the following link: http://iaa.bh/ar/arOfficialGazette.aspx  
 
Also, the list of prohibited goods can be found on the Customs Affairs website at the following link: 
http://www.bahraincustoms.gov .bh/page.php?SID=WTBkR2Jsc FVNREZOUTFwMFVGUlpiV015TURs
TmVrVTk%253D  
 
Please also explain how the Kingdom of Bahrain (Bahrain) defines “drugs” in Table 3.5 and the 
meaning of “drugs and narcotics reasons” as the reason given for their prohibition.  
Answer: 
 All types of Narcotic Drugs (Heroin, Cocaine, Hashish, Pills having drugs effects etc.) 
 
Also, please identify the “safety reasons” associated  with the prohibition of imported “retreated or 
used pneumatic tyres of rubber”.  How does Bahrain ex plain this prohibition in light of Article XI of 
GATT 1994?   
 
Answer:  
1. Table 3.5 is applicable and it is the most recent import prohibitions by BSMD. 
2. The reasons for the prohibitions of used and retreated tires the reasons are : 
 Reduce number of accidents caused by used and retreated tires in The Kingdom of 
Bahrain, particularly for high speed vehicles (i.e. passenger vehicles and busses) in hot 
weather conditions. 
 Due to the high risk and the absence of the proper conformity assessment infrastructure 
(Testing Facilities) it would not be possible to provide a full assurance of safety of the 
reused and retreated tires. 
The Ministry of Industry and Commerce is in proces s to re-evaluate the Ministerial order related to 
" retreated and used tires import  prohibition".  Finally, how does Bahrain explain its import prohibition of “Cultured pearls” to “Assist regeneration 
of natural pearl industry” in light of Article XI of GATT 1994? 
 Answer: 
 
In order to protect the natural pearl industry, th e Kingdom of Bahrain enforced strict laws and 
regulations. Legislative decree No. 10 with respect to the control over pearls and stones of value 
article number 5 states "Trading in cultured pearls shall be prohibited, even if they are inlaid in 
jewellery items.  The price of the cultured pearls are much cheape r than the natural pearls. These are produced in 
large quantities in comparison to the natural pearls which are rare and available in much smaller 
quantities. If such pearls were allowed to enter the market this will greatly affect the purchase of the natural pearls as their prices are much higher. The government also encourages the divers to 
fish pearls and flourish this industry. As for it, the Kingdom of Bahrain is the only country in the WT/TPR/M/294/Add.1 
 
- 49 - 
 
  world that by law bans the import of cultured pe arls. Therefore, all the pearls in the market are 
natural and this attracts people from all around the world to come to purchase their natural pearls from the kingdom of Bahrain  
Pages 29-30, paragraphs 3.33 – 3.34:   The Secretariat’s Report advises that “Bahrain has notified 
the WTO Committee on Import Licensing Procedures that it has no import licensing system.”  The 
Secretariat’s Report then advises that Bahrain administers a number of procedures that appear to 
fall within the purview of the WTO Import Lice nsing Procedures Agreement.  In light of the 
administrative procedures described in the Secretariat’s Report, please explain why Bahrain believes that these procedures are not covered by the WTO Import Licensing Procedures Agreement.  Will Bahrain notify its import licensing procedures to the Import Licensing Committee?  
If so, please advise when Bahrain will notify its procedures.  If not, please explain the reasons why 
such notification will not be forthcoming.  
Answer: 
 As mentioned in Bahrain’s reply to the US’s  question on the same (G/LIC/Q/BHR/2), “Bahrain does 
not have quantitative restrictions or non-automa tic import licensing.  However, there are some 
prohibitions and restrictions imposed on some imports for health, security, religious, and environmental reasons in accordance with Articles XX and XXI of GATT 1994”  
 
3.2.6 Contingency Measures 
Page 30, paragraph 3.35:  The Secretariat’s Report states that in 2011, Bahrain adopted the new 
GCC Common Law on Anti-Dumping, Countervailing Measures and Safeguards (Law No. 48 of 
2011).  Please advise when Bahrain will notify this legislation for review by the relevant WTO 
committees.  Please also provide a timeframe by when implementing regulations will be issued and when they will be notified to the WTO. 
 
Answer:  The notification on this law will be made collectively by a GCC member country for all GCC 
countries members of the WTO. 
 3.2.7 Government Procurement 
Page 32, paragraph 3.43:  The Secretariat’s Report notes that Bahrain became an observer to the 
WTO Government Procurement Agreement on 9 December 2008.  The revised GPA will come into 
force on April 6, 2014, and currently there are a number of countries that are in the process of 
acceding to the revised GPA.  The addition of Bahrain to the GPA would constitute an important 
expansion of the GPA.  Please provide a timefram e by which Bahrain would begin accession to the 
GPA.  
Answer: 
 Bahrain is currently not considering acceding to the GPA. 
 
3.3 Measures Directly Affecting Exports 3.3.7 Export Promotion an d Marketing Assistance 
Page 34, paragraph 3.54: The Secretariat’s Report states that sectors that benefit from the 
Economic Development Board (EDB) export promotion activities include downstream aluminium 
and information technology and support services.  Please describe the export promotion activities 
that the EDB provides. 
 
Answer:  
The Bahrain Economic Development Board (EDB) is a dynamic public agency with an overall 
responsibility for attracting inward investment into Bahrain, and is focusing on target economic sectors in which the Kingdom offers significant strengths. 
 
Key areas of focus include manufacturing, ICT, and logistics and transport services as well as other 
sub-sectors. The Financial Services sector in Bahrain is particularly strong and the EDB supports in the continuing growth of the banking industry and key sub-sectors, including Islamic finance, asset 
management, insurance and re-insurance.  WT/TPR/M/294/Add.1 
 
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  The services offered by the EDB include: 
 
 A no-cost practical facilitation service for first-time investors, and ongoing support to 
businesses already here. 
 A first point of contact in the Kingdom. 
 Discussion of incentive packages to make the set up even more attractive. 
 Attempt to understand investor objectives and re spond to them efficiently, providing all the 
information investors need to set up your business quickly and smoothly. 
 From a Business Development perspective, the EDB is particularly interested in attracting export oriented companies and companies that are looking to set up their regional hub in Bahrain. With a 
population of 1.2 million people, most companies choose to set up their regional hub in Bahrain as 
a gateway to access the $1.5 trillion GCC market (36 million consumers) and the MENA region (440 millio n consumers). Strategically located in the heart of the Gulf, Bahrain has long been 
considered the gateway to the region with easy access to the Kingdom of Saudi Arabia, Qatar, The 
United Arab Emirates, Iran and Iraq. The Kingdom continues to make substantial investments in its modern logistics infrastructure to capitaliz e on the projected growth opportunities in the 
regional economy. The modernization of the Bahrai n International Airport, amongst other projects, 
aims at improving the Kingdom’s connectivity to the region even further.  Bahrain has developed more than 120 trade agreements which companies can benefit from, most 
notably of which are the USA-Bahrain Free Trad e Agreement, the Singapore-Bahrain Free Trade 
Agreement, the GCC Trade Agreement and the GAFT A Trade Agreement. Bahrain is well positioned 
to play the hub role given its strong human capital base and a liberal regulatory environment. 
Bahrain permits 100% foreign ownership in nearly all business activities and this is not limited to 
free zones. In fact, Bahrain has no separate free zone jurisdiction. In effect, the whole of Bahrain has free zone status, and investors are free to repatriate capital, profits and dividends. A majority 
of Bahraini employees work in the private sector and Bahrainis are active on all sectors and all 
levels.  3.4 Measures Affecting Production and Trade 
3.4.2 Standards and Other Technical Requirements 
3.4.2.2 Sanitary and Phytosanitary Mesauree Page 37, paragraph 3.75:  The Secretariat’s Report  states that “{a}ll imports of plants must be 
accompanied by agricultural clearance certificates issued by the appropriate authorities in the 
country of export. Phytosanitary certificates are also required for imports of flour, rice, wheat seed, and agricultural seeds and plants.”  
 
Please clarify what is meant by “agricultural clearance certificates.”    Answer: 
 
The paragraph refers to the Ministerial Decision No . 1 of 2004 by the then Minister of Agriculture 
and Municipality for the importation of plants and the agriculture clearance certificate is according 
to article 7 of the Ministerial Order  
(http://websrv.municipality.gov.bh /mun/servlet/PdfGetter?id=80 ) which must be in compliance of 
the “Model Phytosanitary Certificate ” Annexed to the  International Plant Protection Convention. 
 
Also, please explain Bahrain’s justification for requiring phytosanitary certificates for flour, a highly processed product.  
Answer: 
 Plant products are also covered under article 1 of the Ministerial Decision No. 1 of 2004 by the 
then Minister of Agriculture and Municipality. The definition of plant product is described in the 
Plant Quarantine Law of the GCC of  2003 and ratified in Bahrain by Law No 3 of 2003, Article 2 (Definitions) ( http://websrv.municipality.gov.bh /mun/servlet/PdfGetter?id=74 ): 
“Plant Products: means unmanufactured material of plant origin (including grains) and those 
manufactured products that, by their nature or that of their processing, may cause a risk for the introduction and spread of pests;”  WT/TPR/M/294/Add.1 
 
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  3.4.3 Intellectual Property Rights 
3.4.3.1 Overview  Page 38, paragraph 3.82:  The Secretariat Report notes that the Directorate General of Customs 
within the Ministry of Finance is responsible for matters related to border measures, and courts of 
law are responsible for enforcement issues.  Please describe efforts to address trademark 
counterfeiting and provide the annual number of en forcement actions over the last three years. 
 
Answer: 
  Please note that Customs Affairs now comes under the Ministry of Interior since 2008 and not 
under the Ministry of Finance. 
 The number of cases raised by Customs Affairs related to the enforcement of intellectual 
property rights were: 
o In 2012: 22 cases 
o In 2013: 27 cases 
o In 2014: 17 cases (until April 2014) 
 
3.4.3.2 Patents  
Page 40, paragraph 3.86:  Table 3.11 indicates that over 120 patent applications have been filed 
every year since 2009, yet patent grants are just 2 in 2010 and 2 in 2012.  Please explain the reason for this.  Noting that the patent term begins at the date of filing, if Bahrain is experiencing 
difficulties processing applications, please explain any plans to improve processing systems and 
times.  
Answer: 
 The Patent Office at the Ministry of Industry and Commerce is currently experiencing difficulties in 
processing the patent applications due to the following reasons: 
 Limited number of staff in the Patent office  
 There are no trained examiners to performs the examination process 
 Budget allocated for the capacity building is very limited 
Plans to improve processing system: 
 The responsible authority and through cooperat ion with the UNDP appointed an expert to 
help in the capacity building and the expert  has completed the first phase of the project 
and helped in reviewing the current patent law and its implementation regulation. 
 The responsible authority is negotiating with ex ternal patent offices to contract with them 
for conducting substantive examination and to train the staff of the patent office. 
 The responsible authority requested extra budget  for increasing the number of staff in the 
patent office. 
 5 APPENDIX TABLES Page 71, table A2.1:  The Secretariat’s Report  indicates that the main piece of copyright 
legislation, Law No. 22/2006, appears to have been amended by Law No.12 of 2008.  Please 
provide further information summarizing this 2008 law.  Please also provide the operational status of the amended law, including a description of any implementing regulations which may be 
required to fully implement this law. Also, the last entry of the Secretariat’s Report mentions Law 
No. 29 of 2009 as Amending the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).  Please provide further information summarizing this 2009 law. 
 
Answer:  The Law No. 22/2006 has assigned the Minister of Finance, who was at that time the Minister 
responsible for Customs Affairs, to issue an order outlining the conditions and procedures to halt 
the customs clearance of goods accordingly to this law. But in 2008, the Decree No. 43 was issued for the re-organisation of the Ministry of Interior and included the designation of the responsibility 
of Customs Affairs to the Minister of Interior, which necessitated the amendment made to the Law 
No 22/2006 which was mainly related to substituting the words “the Minister responsible for Customs Affairs” wherever it is mentioned in the Law No. 22/2006 instead of “the Minister of 
Finance”.  
 WT/TPR/M/294/Add.1 
 
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  Law No. 29 of 2009 as Amending the Agreement on Trade-Related Aspects of Intellectual Property 
Rights (TRIPS) ratifies the Amendments to the TRIPS Agreement as per the decision made by 
General Council of the WTO of 6 December 2005 as it related the TRIPS and Public Health.   
Page 72, table A2.1: The Secretariat’s Report re fers to Law No. 3 of 2011 relating to Trademark 
and Legal Protection of Copyright and Neighbouri ng Rights. Please provide further information 
summarizing this 2011 law, and provide an English translation of Law No. 3 of 2011 if it is 
available. Also, please provide an update on the status of this amended law, including a 
description if any implementing regulations were necessary to further implement the law.  Answer: 
 
Law No. 3 of 2011 relating to Trademark and Lega l Protection of Copyright and Neighbouring 
Rights Replaces the phrase "finance minister" with "the minister responsible for customs affairs" 
wherever mentioned in Law No. (11) for the year 2006 on the brands, and Law No. (22) of 2006 
on the protection of copyright and related rights , as amended by Law No. (12) for the year 2008. 
Following is a link to Law No. 3 of 2011 
http://www.legalaffairs. gov.bh/AdvancedSearc hDetails.aspx?id=2136 
 PART II:  QUESTIONS ON THE GOVERNMENT REPORT (WT/TPR/G/294) 
3 ENHANCING PRODUCTIVITY AND CAPACITY 
3.1 Policy Initiatives 
3.1.5 Importance of Inte llectual Property Rights 
Page 7, paragraph 3.19:  
Please describe the “spectrum of penalties” av ailable for IPR violations, and the number of 
successful criminal prosecutions for IPR infringement, if any.  Please also provide information on your public awareness campaigns. 
 
Answer:  The number of cases raised by Customs Affairs related to the enforcement of intellectual property 
rights were:  
o In 2012: 22 cases 
o In 2013: 27 cases 
o In 2014: 17 cases (until April 2014) 
 Bahrain, as part of its public awareness campaigns celebrates annually the World Intellectual 
Property Day of the World Intellectual Property Organization. 
 
There is close cooperation among relevant Government ministries and entities aimed at raising awareness and transfer of knowledge and exchan ge experiences. Moreover, the University of 
Bahrain hosted on its campus the celebration of World Intellectual Property Day in 2013 and 
inaugurated an electronic publication called "International Journal of Intellectual Property" which 
can be found at the following link:  http://www.uob.edu.bh/english/pages. aspx?module=pages&id=3159&SID=708  WT/TPR/M/294/Add.1 
 
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  FOLLOW UP QUESTIONS AND RESPONSES 
FROM CHINA 
 Questions based on Report by the Secretariat (WT/TPR/S/294) 
Developments in Trade 
 
Page 12, para.1.16 and para.1.17; Page 13, para.1.18 The Report states that “Bahrain's economy is highly dependent on international trade. In 2012, 
Bahrain ranked 51st among world merchandise ex porters and 62nd among importers (Chart 1.2). 
The share of fuels in total merchandise export s averaged around 72% during 2006-11.  Oil 
revenue from exports helps maintain Bahrain's trade balance, the exchange rate, and the currency 
peg to U.S. Dollar.”  
Questions: 
As for directions of merchandise trade reflected in  Chart 1.2-(b) in the report, please explain why 
68.8% of exports are to “areas, not elsewhere specified”. 
How does the Government value the impact of the global economic prospects on Bahrain’s energy 
exports in the years to come?  Answer: 
This chart was prepared with information from the (UNSD comtrade database, further information 
on this could be found on the site of the Central Informatics Organization: http://www.cio.gov.bh/cio_eng/SubDetailed.aspx?subcatid=604  
Also look at the National Oil and Gas Authorities: http://www.noga.gov.bh/  
 
Foreign Direct Investment Trends 
 Page 14, para.1.22 and Page 34, para.3.56 The Report states that “[a]s a percentage of GD P, the stock of inward FDI decreased from 70.6% 
in 2006 to 59.6% in 2011. On the basis of UNCTAD's Inward FDI Performance Index, Bahrain 
ranked 121st out of 141 economies in 2010 (30th in 2008)”. In the meanwhile, Bahrain “offers 
various investment incentives to national and foreign investors” to promote foreign investment”.  
Questions: 
Please confirm whether the Government will initiate any promotion efforts to help reverse the downward trend of foreign investment flow to Bahrain in recent years.  
Please clarify what are those sectors that the Government makes endeavors to attract foreigners 
to invest in.  Answer:  
The Bahrain Economic Development Board organize s regular Direct Marketing Campaigns (DMC), 
to target specific international companies abroad by marketing Bahrain’s business environment, in order for them to use Bahrain as their regional headquarters to service the region. 
 
The EDB also organizes several roadshows & VIP trips around the year to raise awareness about Bahrain and what it has to offer in terms of business and investment opportunities. During those 
trips the EDB would invite a Bahraini delegation to represent Bahrain abroad, and would organize a 
business seminar and invite relevant businessmen and stakeholders from the visited country.  In order to increase Bahrain’s international outreach, the EDB has 6 international offices (UK, USA, 
Japan, India, Germany, & China) to represent Bahrain in those countries and regions in terms of 
investment promotion and to attract FDIs. The EDB would also sponsor international events and exhibitions in order to advertise Bahrain’s name and image. 
 
The EDB also receives inbound business delegations and introduces them to Bahrain’s business environment, the EDB would also organize site visits and networking events to meet relevant 
Bahraini businesses. 
Bahrain Investment Proactive Sectors: 
 Food & Beverages  
 Metals WT/TPR/M/294/Add.1 
 
- 54 - 
 
   Industrial Services 
 Logistics 
 FMCG 
 Chemicals & Plastics 
 Telecommunication 
 IT: Software Development & Integration 
 Media  
 E-commerce 
 Professional Services 
 Training 
 Education 
Financial and Insurance Institutions 
 
Export Promotion and Marketing Assistance 
 
Page 34, para.3.54 
The Report states that “[e]xport promotion activities are carri ed out by the Economic Development 
Board (EDB) in lieu of the Bahrain Promotions and Marketing Board (BPMB). Sectors that benefit 
from EDB export promotion activities include downstream aluminum and information technology and support services”.  
Questions: 
Please elaborate on the specificities of the main export promotion measures carried out by EDB.  
Answer:  
During outbound or inbound delegation visits, the EDB would look into the delegate’s profiles and 
business sectors of interest, and match them with Bahrain or international business within the 
same sector, in order to schedule business-to-business meetings and identify any potential project 
collaborations, joint ventures, or trading and franchising opportunities.  In order to align EDB’s marketing strategy with Bahrain’s current needs, the EDB would meet the 
Bahraini businesses and stakeholders to discuss their business development strategies and future 
needs. The EDB would then target companies that share the same interest and business strategies 
as the Bahraini companies. 
 
Page 51, para.4.53 and Page 53, para.4.63 The Report states that “The CBB pursued the strategy of advising banks to merge, with the aim of 
creating strong financial entities, able to absorb all types of shock to the financial system.” And 
“According to the IMF, Bahrain has the highest foreign ownership of foreign-owned banks by total 
assets, at 57%”. 
 
Questions ： 
How will Bahrain be able to prevent global financial risk from transmitting to and affecting its 
domestic financial system? Consequently, how could Bahrain be able to mitigate the systemic 
shocks caused by the risk of its financial system transmitted to real economy?   
Answer: 
The Bahraini economy has proved outstanding solidity and flexibility in withstanding the security challenges and global economic changes which is evident in the steady growth in the Kingdom. 
 
The CBB believes that financial stability is a key factor for economic growth  and to mitigating any 
risk that can be transmitted to the real economy.  Most transactions in the real economy are made 
through the financial system. When stable, the system absorbs shocks and prevents disrupting the 
real economy. A stable financial system helps the economy efficiently allocate resources manages 
financial risks . 
 
The CBB believes that it will be able to mitigate any systemic shocks that can be transmitted to 
real economy through  a number of measures to ensure that Bahrain’s financial system remains sound, stable and able to provide the credit that the domestic economy needs: 
 
 WT/TPR/M/294/Add.1 
 
- 55 - 
 
  1. Strong Regulation 
The CBB is well known in the region for and is the reason behind Bahrain’s reputation as a financial 
hub and a global center of Islamic Finance.  Bahrain has always been known for open and 
transparent supervisory approach with new regulations subject to consultation and always 
emphasizing international best practices. Bahrain’s success as an efficient regulator is reflected in CBB’s strong supervisory capacities through onsite inspections and offsite monitoring.  
 
2. Contingency Planning 
The CBB knows the high costs of financial crises and their tendency to emerge quickly having a 
contagion effect. The CBB through contingency planning has a set of policies and procedures for 
prevention management and containment to face individual or systemic disturbances.  It is 
through these procedures that Bahrain has been able to face and limit the effects of the global financial crisis.   
The role of the regulator in addressing these cha llenges is crucial. The CBB provides the guidance 
through appropriate regulatory framework to enable the sound and stable conduct of financial services.  The CBB will then be able to monitor an y risk to its financial system and decide what 
type of problem it has and decide the action that needs to take place. 
 
3. Macro prudential Tools 
The CBB has also worked on compiling a list of Systemically Important Banks (SIBs) using the 
methodology provided by the Bank of Internat ional Settlement (BIS) Basel Committee on Banking 
Supervision.  The CBB created a list of 10 SIB’s that are a combination of retail, wholesale, and Islamic banks. For the SIB list, the CBB’s Supervision works with these Banks in monitoring them more closely.   Such institutions are more robustly regulated. Periodic reviews, contingency 
planning and stress tests are performed on these SIB’s.  In case of early warning signs’ of 
problems, the CBB would intervene.   
The CBB believes that there also should be a focu s on locally incorporated retail banks (deposit 
taking institutions) because of the importance these banks play within the local economy.  There can be severe economic disruptions if depositors find their funds suddenly unavailable. Therefore, 
support to domestic commercial banks is seen as a priority. 
 Questions based on Report by the Secretariat (WT/TPR/G/294)  
Monetary Policy 
 
Page 9, para.3.35 
The Report states that “Bahrain follows a policy of maintaining a fixed exchange rate against the 
United States dollar. Bahrain and the other GCC countries all agreed to have their currencies pegged to the U.S. dollar, as a first step towards creating a GCC Monetary Union”. 
 
Questions: Does the Government have a plan to adopt a more flexible and resilient exchange rate regime in future?  If yes, what will be the expected impa ct of the policy on Bahrain’s trade and economy? 
 
Answer:  Bahrain will maintain its fixed exchange rate regime between the Bahraini dinar and the US dollar. 
The peg has been effectively unchanged since 1980.  
 The exchange rate peg provides an anchor for mo netary policy, low inflation and a stable currency 
which are important long-term features of the Bahraini economy which support a stable business 
environment and high levels of investment , both of domestic and foreign origin. 
 The use of a large foreign currency as a nominal anchor for monetary policy is a frequent 
arrangement among small open economies and ha s proven to be successful if supported by 
appropriate fiscal and structural policies. The US  dollar peg serves to enhance credibility and 
transparency of monetary policy to maintain financial stability. 
 
Since Bahrain is a small and open economy with la rge foreign trade, the exchange rate represents 
a logical anchor for monetary policy. It reduces transaction costs and exchange rate uncertainty, WT/TPR/M/294/Add.1 
 
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  and thereby stimulates trade. 
 Bahrain is a small open economy and a net exporter with main exports being oil, aluminum and aluminum products. Oil exports continue to play an important role in sustaining the current 
account surplus and hence maintaining the currency peg to the US Dollar.  It is therefore important 
to have a monetary arrangement which mirrors that of major trading partners.  
Given the role of the US Dollar as the leading global reserve currency as well as its central role in 
international trade and finance, pegging Dinar to the Dollar enhances the credibility of monetary policy and contributes to financial stability. WT/TPR/M/294/Add.1 
 
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  FROM THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
 PART I: REGARDING THE SECRETARIAT REPORT (WT/TPR/S/294) 
 
1. Economic Environment 
1.2.2 Employment Page 10 
A new labour law was adopted in July 2012 (Law No. 36) to improve labour standards for national 
and foreign workers (replacing Law No. 73 of 2006). With the aim to establish better working conditions and increase salaries, the new law, inter alia, aligns private sector labour practices with the Government sector; expedites the process for labour disputes; extends legal protection for 
domestic staff; and increases employee benefits. 
Question(s): 
1. Please describe the numbers of nontechnical foreign workers (blue collar) and foreign 
professionals (white collar) that have been introduced into Bahrain. What are the numbers of 
foreign blue collar workers base on nationality and industry (e. g. manufacturing, construction, fishing, institute care taking, house care taking and domestic service, etc.)? What is the 
proportion of Bahrain’s national workforce to its foreign workforce? 
2. What is the average payment for foreign worker s in manufacturing, domestic service and care 
taking? What are the specifications  for board and lodging expenses? 
Answer 
The Bahraini work force is about 30% of the pr ivate sector activities employment. For further 
categories details about work force by activity please follow the link: http://www.cio.gov.bh/cio_eng/Su bDetailed.aspx ?subcatid=604  
Also  
http://blmi.lmra.bh/2014/03/mi_dashboard.xml  
4. Trade Policies By Sector 
4.3 Energy 
4.3.2 Petroleum Page 48.(4.25) Government policy in the petroleum sector has focused on consolidating the oil industry, including 
the further developing of petroleum resources, expanding seismographic surveys, and enhancing 
developmental drilling. 
Question(s): 
1. Please describe the policy objectives and measures taken by the Government. 
2. How does the policy affect the economic activiti es of foreign investors? As to the role of 
foreign investors, how can they further participate in Bahrain’s oil industry in line with the 
Government’s policy objectives? 
Answer: 
-   Approach and encourage petroleum companies to explore offshore blocks under 
exploration and production sharing agreem ents (EPSA), and Endeavour to increase 
petroleum reserves. 
-   Encourage the establishment of joint ventures.  
In doing so, the National Oil & Gas Authority, being the umbrella of the operating oil and gas 
companies in the Kingdom, stick to its values, that are: Transparency, Integrity, Fairness, Creativity, Professionalism, Teamwork and Respect.  Our Transparency is being applied in all our 
practices, including our tendering processes wher e the Tender Board is the body responsible to 
screen and decide upon all submitted bids. WT/TPR/M/294/Add.1 
 
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  4.3.4 Electricity and water 
Page 49.(4.34) Domestic users consume around half of total electricity, followed by commercial users (about 30%) and industrial users. There are four consumer tariff categories, with a subsidized tariff in 
place for the industrial sector (since August 1990) and private hospitals (since November 2002) on 
the basis of an MOIC regulation. Electricity prices are set by the Cabinet, based on an EWA proposal. According to NOGA, the Electricity and Water Authority (EWA) consumed around 37% of 
Bahrain's natural gas, the largest user in 2011. Prices of electricity and water services are 
regulated by Law No. 1 of 2007. 
Question(s): 
1. Please provide information about the four consumer tariff categories and elaborate on the 
subsidized tariffs for the industrial sector and private hospitals. 
2. Is the subsidized tariff applicable to investors from foreign countries? 
Answer: 
Please check at the Electricity and Water Authority for information:  
http://www.mew.gov.bh/  
Page 49.(4.36) 
In recent years, Bahrain has recognized the importance of renewable energy sources as an 
alternative source of power. Two renewable ener gy projects are being implemented: the 5 MW 
solar plant in Awali, with roof panels and connection through a smart grid, is a joint-venture between BAPCO, NOGA and two U.S.-based firms, Caspian Energy Holdings and Petra Solar; and 
the second project is a combined solar/wind plant in the south with a capacity of 3 MW and 2MW 
for solar and wind, respectively. 
Question(s): 
1. Please describe how the Government promotes the projects and measures adopted by the 
Government. 
2. Please elaborate on the two renewable energy  projects, including the project schedules, 
objectives, current achievements, and industrial benefits. 
3. Are there any other policies or strategies wh ich have been implemented by the Government 
to promote the renewable energy industry? If so, please provide information. 
4. What is the impact has the Government’s positive attitude had on foreign investors while it 
promotes the renewable energy industry? Will there be more opportunities for foreign 
investors to participate in the renewable energy sector such as solar industry? 
Answer: 
Please check at the Electricity and Water Authority for information: http://www.mew.gov.bh/  WT/TPR/M/294/Add.1 
 
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  FROM THE EUROPEAN UNION 
 WT/TPR/S/294 – WTO Secretariat's Report – Bahrain  
3.4.3.8 Enforcement 
Page 42, paragraph 3.99  
Initial EU question 22: As regards medicinal products and plant production products, does Qatar 
legislation provide for an administrative marketing approval process and a link with patent 
duration?  
Note: Question is not addressed to Bahrain 
 EU follow-up question 22: As regards medicinal products and plant production products, does 
Bahrain legislation provide for an administrative marketing approval process and a link with patent duration?   
Answer:  
With regards to plant production products, Industrial Property Directorate at the Ministry of Industry and Commerce, is responsible only for the protection of the plants which is either through 
Patent and Utility Model Law (Law No. (1) of 2004 and Law No. (14) of 2006 for amendment of law 
No. (1) of 2004 with respect to Patent & Utility Models with respect to Patent & Utility Models) WT/TPR/M/294/Add.1 
 
- 60 - 
 
  FROM THE UNITED STATES 
 3.2.6 Contingency Measures Page 30, paragraph 3.35:  The Secretariat’s Report states that in 2011, Bahrain adopted the new 
GCC Common Law on Anti-Dumping, Countervailing Measures and Safeguards (Law No. 48 of 2011).  Please advise when Bahrain will notify this legislation for review by the relevant WTO committees.  Please also provide a timeframe by when implementing regulations will be issued and 
when they will be notified to the WTO. 
 Answer: The notification on this law will be made collectively by a GCC member country for all GCC 
countries members of the WTO. 
 U.S. Follow-Up Question:  
We remain interested in Bahrain’s notification of the new GCC Common Law on Anti-Dumping, 
Countervailing Measures and Safeguards.  It falls upon each WTO Member to notify the laws that are relevant to the trade remedy instrument in plac e.  Therefore, please advise when, specifically, 
Bahrain will notify this legislation so that it can be reviewed by the relevant WTO committees and 
also when implementing regulations will be issued and notified.    Answer: 
The new GCC Common Law on Anti-Dumping, Countervailing Measures and Safeguards will be 
effective once ratified by all GCC member states. Only then Bahrain will notify the GCC Common Law. 
 
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