WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  WT/TPR/M/185/Add.1 
10 September 2007 
 (07-3761) 
Trade Policy Review Body 
18 and 20 July 2007 Original:  English 
                 anglais                  inglés  
 
TRADE POLICY REVIEW 
BAHRAIN 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Mr. Vesa Himanen (Finland)  
 This document contains the advance writte n questions, and replies provided by Bahrain.1 
 
 __________________________________________________________________________________ 
 
Organe d'examen des politiques commerciales 18 et 20 juillet 2007 
 
EXAMEN DES POLITIQUES COMMERCIALES 
BAHREÏN 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. M Vesa Himanen (Finlande) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses fournies par Bahreïn.
1 
  __________________________________________________________________________________ 
 
Órgano de Examen de las Políticas Comerciales 
18 y 20 de julio de 2007 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
BAHREIN 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. Vesa Himanen (Finlandia) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Bahrein.1 
                                                      
1 In English only./En anglais seulement./En inglés solamente.  
 
    WT/TPR/M/185/Add.1 
 Page 3 
 
 
 WRITTEN QUESTIONS BY MEMBERS 
 
QUESTIONS FROM SINGAPORE  
 
Foreign Direct Investment 
 The WTO Sec report WT/TPR/S/185 page 7 para 18 not ed that  "since its last Review, Bahrain has 
been implementing measures to improve the investment  climate.  In particular, a revised Commercial 
Companies Law was enacted in 2001, and a new Comme rcial Companies law is now in the legislative 
process, to pave the way for a surg e in foreign investment inflows…" 
 
What are the key significant changes which invest ors could look forward to in the new Commercial 
Companies law, and how these changes could ai d increases in foreign investment inflows? 
 
Government Procurement 
 
It was noted in the WTO Sec report that Bahrain is "neither a member of nor an observer to the WTO 
Plurilateral Agreement on Government Procuremen t".  Would Bahrain consider to becoming a 
member or an observer to the WTO GPA?  
 
QUESTIONS FROM THE REPUBLIC OF KOREA
 
 
1. Certification System of Commercial Invoices by the Consulate of Bahrain or Any Arab 
Embassy  (WT/TPR/S/185 pp.22~23 para.6) 
 Before goods are exported to Bahrain, c ommercial Invoices are required to receive consular stamp 
from the Bahraini Embassy or any other Arab Embassy  in the countries of origin of the goods even 
after they were certified by a Chamber of Commerce of the country of origin on the origin of the 
goods and their export price.   
Korea does not require such stamping by the Consulat e of Korea to Bahraini exporters. What is the 
purpose of this stamping system, and does the Bahrai ni Government have any plan to remove the 
stamping requirement on a reciprocal basis? 
 
2. Preferences for Goods produced in B ahrain and GCC States in Government  
Procurement  (WT/TPR/S/184 p.35 para.54)    
Under Prime Ministerial Edict No. 21/1987, the Bahr aini Government is afforded to procure goods 
produced in Bahrain and GCC countries on a priority basis if the margins betw een the prices of these 
goods and their imported like products are within th e specified margins (Bahrain 10%, GCC countries 
5%). 
 
What is the position of the Bahraini Government on this issue, and does the Bahraini Government 
have any plan to address these preference practices  to enhance fair competition in government 
procurement? (The end) 
 WT/TPR/M/185/Add.1 
Page 4  
 
 QUESTIONS FROM THE UNITED STATES
 
 II. TRADE AND INVESTMENT REGIMES (4) T
RADE AGREEMENTS  
(ii) Regional agreements 
 
Gulf Cooperation Council (GCC)  
 
• Pg18, para. 21 (WT/TPR/S/185) :  Paragraph 21 reports that th e GCC was notified to the WTO in 
1983 under the Enabling Clause and describes the work being done toward the completion of a 
Customs Union by the GCC.  What percent of Bahrain’s imports from and exports to its GCC 
trading partners are duty-free?   
 
III. TRADE POLICIES AND PRACTICES BY MEASURE (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(iv) Tariffs, other duties, and taxes 
(d) Duty and tax concessions  
• Page 28, Paragraph 23 of the Secretariat’s report states:  "…In addition, duty and tax concessions 
may be granted selectively to certain industri es or companies on imports necessary for their 
operational use."  Please explain how certain industr ies or companies are selected for duty and tax 
concessions.  Upon what criteria does Bahrain base its selections? 
 (vi) Contingency trade remedies 
 
• Page 30, Paragraph 31:  According to the Secret ariat’s report, "Bahrain has not yet submitted a 
notification on laws and regulations under Artic le 32.6 of the WTO Agreement on Subsidies and 
Countervailing Measures.  However, it adopted the provisions on contingency trade remedies 
contained in the GCC Treaty through Law No. 4/ 2006; implementing regulations have yet to be 
finalized."   
 
• When will Bahrain submit a notification unde r Article 32.6 of the SCM Agreement? 
 
(ix) Local-content requirements  
• Page 36, Paragraph 57:  Has Bahrain implemente d or will it implement replacement programs for 
the two that had local-content requirements (the HRDS and the Industries Support and Protection Law)? 
• Please clarify the extent to which the Indus tries Support and Protection Law (Legislative 
Decree No. 11/1985) has been phased out.  Fo r example, what is the final date for 
beneficiary companies to receive support and protection?  
 (3) M
EASURES DIRECTLY AFFECTING EXPORTS  
 
We note that Bahrain last submitted a subsidies no tification under Article 25.8 of the SCM Agreement 
in July 2000.  What is the status of Bahrain’s efforts to submit its next subsidies notification? 
 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  
(ii)  Competition Policy and Price Controls 
 
• In paragraph 73, page 39, the Secretariat repor t states: "In addition, consumption of livestock 
imported from Australia is subsidized: th e subsidy is on the slaughter price."  WT/TPR/M/185/Add.1 
 Page 5 
 
 
 •  What is the basis for the subsidy on slaughter price that applies only to Australian 
livestock? 
• Does Bahrain intend to eliminate this subsidy? 
 
(iv) Intellectual property rights 
 Trademarks/Geographical Indications:
  With regard to the section on Geographical Indications in 
paragraph 96 of the Secretariat’s Report, please clar ify whether Bahrain is requiring that there be a 
bilateral treaty/agreement, and therefore requiring reciprocal protection, as a precondition for granting 
GI protection to foreign GIs in Bahrain.  Please conf irm that Bahrain allows for the direct application, 
opposition and cancellation by anyone of a GI, wit hout government intervention (i.e., without 
negotiation of a treaty or an agreement to protect GIs).  
 
QUESTIONS FROM THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, 
KINMEN AND MATSU  
 
A.  Report by the WTO Secretariat (WT/TPR/S/185) 
I. ECONOMIC ENVIRONMENT 
(4) OUTLOOK 
Question 1 
(Page 9, paragraph 22)  
The report mentions that the Bahrain authorities ar e considering introducing a limited welfare scheme 
to unify benefits in the public and in private sector s in order to make private sector employment more 
attractive.  
Could Bahrain please elaborate further on the details of the scheme? Would it affect the hiring of 
foreign workers by foreign-affiliated companies? 
II. ECONOMIC ENVIRONMENT 
(5) INVESTMENT FRAMEWORK 
Question 2 (Page 20, paragraph 30) 
 We note that a number of businesses, as published in a negative list, are still prohibited or restricted in 
Bahrain.  
 
Could Bahrain please advise how often it updates th e aforementioned "negative list"? Are there any 
plans to revise the list with a view to reducing the number of existing items? 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION 
Question 3 (Page 22, paragraph 3) 
 We note that the Bahrain governme nt has established a programme for the privatization of state-
owned companies. Are there any timelines set for the privatization of ALBA (aluminium), BANAGAS 
(gas) and BAPCO (petroleum)?  WT/TPR/M/185/Add.1 
Page 6  
 
 (2) MEASURES DIRECTLY AFFECTING IMPORTS 
(vii) Standards and other technical requirements (a) Standards, testing, and certification Question 4 (Pages 30 and 31, paragraph 33) 
 It is indicated that the national standards and te chnical regulations normally enter into force in 
Bahrain three to six months
 after their publication in the Official Gazette . Article 2.12 of the WTO 
Agreement on Technical Barriers to Trade requires that WTO Members allow a reasonable interval 
between the publication of technical regulations and their entry into force, and a "reasonable interval" 
usually means a period of not less than six months , except when this would be ineffective in fulfilling 
the legitimate objectives pursued, accordi ng to paragraph 5.2 of the Decision on "Implementation-
related issues and concerns"  (WT/MIN(01)/17)  adopted at the Doha Ministerial on 14 November 
2001.   Could Bahrain please explain how, in this respect,  the above-mentioned Doha Ministerial Decision is 
being taken into account in the statutory system?  
(viii) Government procurement 
Question 5 (Page 35, paragraph 52) 
 Our questions are as follows: 
a) Could Bahrain please provide us with an up date of progress on the implementation of its e-
tendering project?  
b) Are there any plans to fully replace the curren t paper-based tendering process by an electronic 
one?  
c) What are the likely effects of this e-tendering project on foreign companies entering the Bahrain 
government procurement market? 
 
(3) MEASURES DIRECTLY AFFECTING EXPORTS 
(iv) Export subsidies, finance, insurance, and assistance  
Question 6 (Page 38, paragraph 66) 
 Our questions are: 
a) What are the conditions or requirements for SMEs  to qualify for the export financing provided 
by the Bahrain Development Bank?  
b) Does the government of Bahrain provide preferen tial or favourable financing terms to SMEs?  
c) Can foreign-affiliated SMEs established in Bahrain apply for these loans as well? 
IV. TRADE POLICIES BY SECTOR 
(3) MINING, QUARRYING, AND ENERGY 
(i) Overview 
Question 7 
(Page 52, paragraph 30) 
 
We note that a Bahraini-Qatari Committee is in ch arge of the negotiation of the gas supply imported 
from Qatar and the Technical Committee of NOGA is empowered to negotiate Bahraini natural gas 
importation. Could Bahrain please explain how these tw o committees operate and coordinate with 
each other while negotiating the importation of natural gas from Qatar?   WT/TPR/M/185/Add.1 
 Page 7 
 
 
 Question 8 
(Page 52, paragraph 29, and Page 53, paragraph 32)  
The main policy goals of Bahraini mining and qua rrying sector include strengthening the participation 
of the private sector through privatization, despite  the fact that BAPCO, the wholly state-owned 
petroleum company, enjoy a monopoly in oil exploration, production and exportation.  
Could Bahrain please indicate whether there is any  plan to privatize BAPCO.  If so, we would 
appreciate knowing the privatization schedule and the rationale behind such a plan? 
Question 9 
(Page 53, paragraph 32) 
 As indicated in the Report, refining of petroleum products is de jure  open to competition, but a de 
facto  monopoly is in place. We would be interested in knowing whether foreign or private investors 
have encountered any possible obstacles or restrictions  to their entry into the Bahraini petroleum-
refined sector resulting in re duced market competition? 
Question 10 
(Page 57, paragraph 50)  
Electricity prices in Bahrain are set by the Cabinet, based on a Ministry of Electricity and Water proposal.  
When the government formulates the price, is th ere any public mechanism involved? Furthermore, 
have any important concerns come to light and what is the procedure for setti ng the electricity price? 
B. Report by the Government of Bahrain (WT/TPR/G/185) 
III. ENHANCING PRODUCTIVITY AND CAPACITY 
(1) Policy Initiatives 
Question 11 (Page 6, paragraph 19)  
We note that the government of Bahrain expects that its reform measures aimed at stimulating 
productivity will create an enabling environment whic h will more than double per capita GDP by the 
year 2015, and increase labour pr oductivity by 4-5% annually.  
 
Would Bahrain please describe for us  the reform measures being taken? 
 
(v) Competition Question 12 (Page 8, paragraphs 42-43) 
 Further information would be appreciated as follows: 
a) Could Bahrain please provide clarification of exactly how the Bahrain National 
Competitiveness Council (BNCC) monitors and repor ts on the performance and competition 
condition of the Bahraini economy?   
b) In the absence of competition law, what are the legal instruments and criteria used by the 
BNCC in make such an assessment? 
 WT/TPR/M/185/Add.1 
Page 8  
 
 (vi) Privatization 
Question 13 (Page 9, paragraph 44) 
 We note that privatization in Bahrain has been  accelerated since 2006, notably in the power 
generation, public transport and communication sectors.  
What limitations apply to foreign businesses wishing to invest in these privatization projects? If limits 
do exist, are there any plans to fully liberalize foreign participation in privatization projects? 
QUESTIONS FROM THE EUROPEAN COMMUNITIES
 
 II. 
TRADE AND INVESTMENT REGIMES  
(3) P OLICY OBJECTIVES  
 
Sustainable development 
 
1. Could Bahrain provide some information about  how the issue of trade and sustainable 
development fits into its overa ll development strategies? Have a ny particular measures been taken 
since the last Trade Policy Review in 2000? 
Trade and environment  
 
2. What mechanisms does Bahrain have in place to ensure coordination of environmental policy and 
trade policy? 
 
Trade and Labour 
Bahrain's Report, page 6, para.24 The Report by Bahrain states that the government  believes that future sustainable economic 
development lies in the strength and competitiven ess of its labour force and developing a robust 
entrepreneurial culture. Therefore, the governme nt has also embarked on a number of economic 
reform initiatives to 'empower Bahrainis with worl d class education and training to equip them with 
the skills needed to compet e in the labour market'. 
3. Does Bahrain have any policies to address the speci fic effects of more open global trade on labour 
market adjustments?  
4. How does Bahrain strike the balance between mo re labour flexibility and basic labour rights, 
particularly in trade-related sectors? 
Bahrain's Report, page 10, para.52 
The Report by Bahrain also indicates that in 2004, Bahrain embarked on an ambitious, comprehensive 
initiative to make structural reforms in the labour  market, aimed at reducing the unemployment rate 
amongst Bahrainis to less that 4% within 15 years. It also states that at the crux of this initiative are 
two overarching objectives: (1) encourage the privat e sector to become the engine of growth in 
Bahrain; and (2) make Bahrainis the employee of choice for private sector employers.  
5. Could Bahrain provide more details re garding its structural reforms?   WT/TPR/M/185/Add.1 
 Page 9 
 
 
 6. How does the Bahraini government ensure th e quality of jobs, and consequently high 
productivity, in labour-intensive sectors including th e implementation of core labour standards? 
(4) TRADE  AGREEMENTS   
(ii) Regional Trade Agreements 
WTO Secretariat's Report, page 18, para. 21 
 
7. Could Bahrain provide further information on its participation in regiona l integration, and in 
particular on the implementation of its customs union with the GCC countries? 
III. T RADE POLICIES AND PRACTICES BY MEASURE  
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(ii) Customs procedures and valuation 
 WTO Secretariat's Report, page 23, para. 11 
 
The authorities of Bahrain still have to submit the relevant notification to the WTO Customs 
Valuation Committee including its legislation of Cu stoms Valuation after the transition period.  
 8. When do Bahrain's authorities intend to submit these notifications?  
 
9. What particular difficulties is Bahrain facing in  implementing the Customs Valuation Agreement? 
 
(v) Import prohibitions, restrictions and licensing 
WTO Secretariat's Report, page 30, para. 30 
 
The WTO Secretariat's Report notes that imports of food products must be accompanied by a 
certificate declaring them to be free of radiation a nd dioxin. In light of this measure, Bahrain, for 
instance, requires a radioactivity certificate for th e importation of European black olives. The reason 
behind this requirement dates back to the accident th at occurred in Chernobyl's nuclear plant.  Given 
that 21 years have elapsed since this unfortunate accident, the EC sees this requirement as an impediment to trade rather than a genuine measure of health prevention.   10. Could Bahrain indicate on what grounds this requirement is applied?  
 
11. Is Bahrain considering the possibility to review the radioactivity certificate requirement for the 
importation of European black olives? 
 
(vii) Standards and other technical requirements 
WTO Secretariat's Report, page 33, para. 43 It is stated that imports of bovine origin from Europe are prohibited on gr ounds of bovine spongiform 
encephalopathy (BSE). In light of these measures, the EC seeks the following clarifications:  12. Could Bahrain's authorities indicate precisely to which products of bovine origin  this ban applies?  
For instance, are milk and dairy products also  affected? Do other products such as semen and 
bovine embryos, tallow and gelatine fall also within this prohibition?  
 We recognise Bahrain's, as every country's, need to  protect consumer health and safety when setting 
sanitary and phytosanitary standards, as long as thes e are in accordance with international standards WT/TPR/M/185/Add.1 
Page 10  
 
 and guidelines. The OIE Code, whic h is based on international scien tific evidence, allows a large 
number of products, including beef and beef products, to be traded freely regardless of the BSE status 
of a country. However, Bahrain continues to ba n the import of these products and has provided no 
scientific evidence to deviate from international st andards. Bahrain continued imposition of a ban on 
imports of bovine origin from EC countries with c ontrolled or undetermined BSE risk is unjustified in 
relation to its obligations u nder the WTO SPS Agreement.  
 In addition, the EC would like to stress that the WTO SPS Agreement provides, in paragraph 5:7, that 
a WTO Member may provisionally
 adopt (under special circumstances) SPS rules (e.g. when relevant 
scientific evidence is insufficien t) while a Member seeks for add itional information necessary for a 
more objective assessment of risk and review of  the SPS measures. However, this should be done 
within a reasonable period of time. Given that OIE rules and recommendations  were established in 
May 2005, we would like to recall that if Bahrain decides to go beyond international recommendations concerning BSE, it should be ab le to provide a risk assessment and to present 
supporting scientific evidence for such a decision.  
 
13. Could Bahrain indicate the reasons  behind imposing a ban on import of beef from the EC despite 
OIE recommendations?  
 14. What scientific evidence can Bahrain present to moti vate the application of a more restrictive SPS 
regime, regarding trade in beef and beef produc ts, than current international standards?  
 
15. Has Bahrain presented any risk assessment to this effect?  
 16. Has this ban on beef been prope rly updated in light of recent OIE developments for BSE (OIE 
plenary session in May 2005), in particular, with resp ect to the safety of imports of beef and beef 
products, under certain conditions, and regardless of  the BSE status of the exporting country?  
 17. If not, does Bahrain plan to amend its national le gislation in accordance with OIE international 
rules concerning BSE? Would Bahrain consider following OIE recommendation in this respect?  
If so, would Bahrain consider amending any import restrictions applied to imports of beef and 
beef products (and other pr oducts of bovine origin, including milk  and milk products, if any) from 
the EC in line with OIE recommendations?  
 
(viii) Government Procurement 
WTO Secretariat's Report, page 34, para. 51 
 
The WTO Secretariat's Report points out that 'some firms have indicated that the new procedures are 
not always strictly followed and that it may still be important to have a local representative with 
strong connections'.   
 
18. Are foreign suppliers taking part in an interna tional tender required to have a local representative? 
 WTO Secretariat's Report, page 35, para. 52 
 
It is stated that 'The amount of the performan ce bond is determined by the Tender Board on the basis 
of the nature and value of the project' .  
 
19. Could Bahrain's authorities elaborate further on this?  
 
WTO Secretariat's Report, page 35, para. 53 
  WT/TPR/M/185/Add.1 
 Page 11 
 
 
 The WTO Secretariat's report mentions that 'compl aints may be submitted in the first-instance, for 
reconsideration by the procuring entity and/or the TB, prior to the contract coming into effect'.   20. Could Bahrain provide some statistics on complaints made in the years 2005 and/or 2006? 
 
WTO Secretariat's Report, page 35, para. 54  
We note that price preferences are given for goods pr oduced in Bahrain and in other GCC States (10% 
for goods produced in Bahrain and 5% for goods produced in the GCC). 
21. Do Bahrain's authorities envisage reducing these price preferences over time? 
 
IV. T
RADE POLICIES  BY SECTOR  
(5) S ERVICES  
(i) Overview  
WTO Secretariat's Report, page 61, para.67, and page 19-20, para. .26-33 
 
With regard to the investment framework, possibiliti es of investment by foreign companies under the 
Commercial Company Law are mentioned.  22. Could Bahrain specify in which services sectors the establishment of representative offices is 
allowed and where it is prohibited? 
 
(ii) Financial Services  WTO Secretariat's Report, page 64, para.79 
 
As indicated in the WTO Secretariat's Report, fo reign-based retail banks may provide some banking 
services to residents.   23. Could Bahrain specify whether foreign-invested re tail banks are allowed to provide residents with 
all kinds of banking services, or whether their scope  of activity is restricted to only a part of 
them? 
 
WTO Secretariat's Report, page 67, para.99 
 
24. With regard to the insurance operations that can be performed by foreign companies under the 
Insurance Law, could Bahrain indicate what the possibilities are for foreign insurance companies 
not established in Bahrain to provide insurance serv ices in Bahrain on a cross-border basis? If so, 
in which kinds of insurance operations? 
 With respect to personnel requirements in the insura nce sector, the WTO Secretariat's Report refers to 
'certain management requirements' established by law.  
 
25. Could Bahrain provide more details a bout these management requirements?   
 WT/TPR/M/185/Add.1 
Page 12  
 
 (iii) Telecommunications and postal services 
Telecommunication services  WTO Secretariat's Report, page 70-71, para 110  
 
With respect to the treatment of disputes between the TRA and any licensed operator in Bahrain, the 
WTO Secretariat's Report mentions that 'the Telecommunications Law contemplates the creation of a three-member arbitration panel to determine dis putes between the TRA and any licensed operator'.  
 26. Could Bahrain specify whether the relevant law and regulations provide for a period of time 
within which a decision must be issued by the arbitration panel? 
 
Postal/courier services  WTO Secretariat's Report, page 71, para 114  
 The WTO Secretariat's Report states that 'postal se rvices are considered important, inter alia, to: 
prepare a suitable environment for investment; […]'. The EC welcomes this statement although 
further clarification is needed.  27. Could Bahrain's authorities indicate to what extent  foreign postal courier pr oviders can engage in 
the international and domestic posta l/courier market in Bahrain?  
 
In addition, the Report notes that the government st rategies for postal services include the intention to 
a) keep up with technological development and b) automate all postal systems and provide 
information systems for the operations.  
 
28. Does the government agree that these objectives c ould be best achieved through fair and open 
competition including international postal/ courier service providers, especially express delivery 
companies? 
 
QUESTIONS FROM JAPAN
 
 
GOVERNMENT REPORT (WT/TPR/G/185) 
 III. ENHANCING PRODUCTIVITY AND CAPACITY 
(1) POLICY INITIATIVES 
(ix) Monetary policy (Question 1: page 10, paragraph 60) 
 Please indicate the prospect of the GCC Monetary  Union which is scheduled for year 2010, with 
respect to Oman and Kuwait. 
 
IV. TRADE POLICY 
(2) BAHRAIN AND THE RIGION 
(i) GCC membership 
(Question 2: page 15, paragraph 100)  
According to the Government report, the FTA nego tiation with the European Union antedates those 
with other countries.  
Please indicate the principle taken by Bahrain, in order to negotiate FTA with other countries. 
  WT/TPR/M/185/Add.1 
 Page 13 
 
 
 (iii) Bilateral agreements 
(Question 3: page 16, paragraph 102) (Secretariat report: page 18, paragraph 24) 
 
Please provide information on the whole picture of  agreed and negotiating bilateral agreements, 
respectively. 
 
SECRETARIAT REPORT (WT/TPR/S/185) 
IV. TRADE POLICIES BY SECTOR 
(5) SERVICES (iv) Transport (b) Air transport 
(Question 4: page 74, paragraph 127) 
 
Japan understands that Gulf Air will be owned sole ly by Bahrain in November 2007 due to the fact 
that the Oman Government will drop its shareholding of Gulf Air. 
 
Please indicate the prospect of Bahrain’s management of Gulf Air.  (5) SERVICES (Question 5: page 62-68, paragraph 69-100)  
Japan notes that Bahrain has made full commitments of cross-border (mode 1and mode 2) services in 
all sub-sectors of the insurance sector, including  a sub-sector such as life insurance in which 
individual persons can be dealt with as a consumer.  
 
Japan would like Bahrain to explain how Bahrain can effectively protect consumers such as 
unsophisticated individuals in the sub-sector of life insurance, in accordance w ith the liberalization of 
cross border services.  
QUESTIONS FROM CANADA
 
 
Government Report WT/TPR/G/185 
 
Part III – Enhancing Productivity and Capacity, (2 ) Growth Sectors, (i) Tourism, paragraph 64, 
page 11. 
 
The Government Report states that "The Gove rnment envisions Bahrain becoming a high-quality 
leisure and business tourism destination for the out bound markets of the Middle East, Europe and 
Asia, and a process of redefining the tourism vi sion and roadmap and anchoring it with the key 
stakeholders started in June 2005".   
1. Could Bahrain please explain what the key elements of this process are and what timelines are 
envisioned?  
Secretariat Report WT/TPR/S/185 
 
Part II - Trade and Investment Regimes, (4) Trade Agreements, (ii) Regional agreements, paragraphs 21, 22, and 23, and (iii) Bila teral Agreements, paragraph 24, page 18. 
The Secretariat Report discusses the various regional and bilateral trade initiatives Bahrain is involved 
in: a free-trade area with the Gulf Cooperation C ouncil, the Greater Arab Free-Trade Area (GAFTA) 
Treaty and a free-trade area agreement (FTA) wi th the United States. Canada understands the 
importance of having strong ties with regional trade partners.  However, many WTO Members WT/TPR/M/185/Add.1 
Page 14  
 
 have made service sector commitments in their re gional and bilateral free trade agreements that go 
well beyond their existing GATS Schedules and, in many cases, beyond their GATS offers tabled 
during the Doha round.  
2. (a) Could Bahrain provide further detail with  respect to the relationship between the services 
commitments it has made in various regional/bilateral free trade agreements and its GATS 
commitments and offers?  
 (b) What policy considerations are relevant  to any gaps between Bahrain's services 
commitments in this regard? 
 
Part III - Trade Policies and Practices by Measu re, (1) Introduction, paragraph 1, page 22. 
 
The Secretariat Report notes that, as a member of the Gulf Cooperation Council (GCC) customs 
union, Bahrain has been applying the GCC common external tariff since 1 January 2003.  
3. (a) Within the GCC common external tariff, do individual GCC member countries have the 
autonomy to levy lower applied rates and ad just these same rates at their discretion? 
  (b) If so, what procedure is deployed within the GCC to do this?  Part III - Trade Policies and Practices by Measu re, (2) Measures Directly Affecting Imports, 
(iv) Tariffs, other duties and taxes, paragraph 21, page 28. 
 
The Secretariat Report says that Bahrain's averag e bound tariff is 35.6% and the overall MFN applied 
tariff is 5.3%, a binding overhang that creates an element of uncertainty for traders.  It also notes that a 
low percentage of tariff lines in certain HS Chapte rs have been bound (below 50% of all lines in those 
Chapters), notably on chemicals, wood and wood ar ticles, mineral products, pulp and paper and hides 
and skins.   4. (a) Could Bahrain please indicate whether it has plans to bring down the average bound tariff 
rate in the near future? 
 
 (b) Additionally, does Bahrain intend to incr ease the number of bound tariff lines in the HS 
Chapters noted in the Secretariat Report?  
Part III - Trade Policies and Practices by Measu re, (2) Measures Directly Affecting Imports, 
(vii) Standards and other technical requirements, (c) Marking, labelling and packaging 
requirements, paragraph 45-48, pages 33-34. 
 
Canada understands that the Standa rdization Organization for the GCC (GSO) appears to be making 
progress on revised standards concerning: (i) the "E xpiration Periods of Food Products" [which will 
annul and replace the current GS 1023/2000 "Expira tion of food products--Par t 2" and GS 150/1993 
"Expiration periods for food products--Part 1"]; a nd (ii) "Labelling Requirements for Pre-packaged 
Products" [draft standard identified by the GSO as GSO4/FDS/OIML R 79:2006 and OIML R 79:1997].  The  foreword to this second draft  standard notes "GSO through the technical 
program committee (TC) No 4 Technical Committee of Metrology Standards has adopted International Standard No OIML R 79/1997 Labelling requirements for pre-packaged products  issued 
by the International Organization for Legal Metrology in its original language.  The draft standard has 
been prepared by (Kingdom of Bahrain
)." 
  WT/TPR/M/185/Add.1 
 Page 15 
 
 
 5. (a) Could Bahrain provide clarification on what  is being proposed for agreement in terms of 
the two GCC regulatory/standard initiatives, and the di fferences that are expected to arise from the 
current regulatory framework?   (b) Could Bahrain provide an indication of when these proposed new standards, now being 
considered within the GCC, are exp ected to be notified to the WTO? 
 
Part III - Trade Policies and Practices by Measure, (4) Measures Affecting Production and Trade, (iv) Intellectual property rights, (b) Patents, paragraph 85, page 43. 
 Canada notes that according to the Secretariat Report "Technical inventions based on human 
necessities, performing operations, chemistry, phys ics, pharmaceutics, biotechnology, and mechanics 
are patentable provided they are new, involve an  inventive step, and are capable of industrial 
application."   
6. (a) Could Bahrain please clarify what is considered to be a technical invention? 
  (b) In light of the provisions of Article 27 of TRIPS, could Bahrain advise whether, by listing the areas where technical inventions are patent able, it is excluding from patentability technical 
inventions in areas not listed?  
 
Part III - Trade Policies and Practices by Measure, (4) Measures Affecting Production and 
Trade, (iv) Intellectual property rights, paragraph 88, page 43.  
According to the Secretariat Report "[t]he new pa tents regime also established the mechanism and 
conditions for the granting of compulsory licences."  
 
7. Could Bahrain please provide  additional information regarding the compulsory licensing 
provisions under the new legislation? 
 
Part III - Trade Policies and Practices by Measure, (4) Measures Affecting Production and Trade, (iv) Intellectual property rights, (h) Enforcement, paragraphs 97 and 99, page 45 and 46. 
The Secretariat Report states that "According to Article 41 of Law No.1/2004 on Patents and Utility 
Models, any person who commits an of fence shall be penalized by imprisonment of not less than three 
months and not more than one year, and/or a fi ne of not less than BD 500 and not exceeding BD 
2,000."   The Secretariat Report indicates that sim ilar provisions are available under Article 13 of Law 
No. 16/2006 on Geographical Indications. 
8. Could Bahrain please provide additional info rmation regarding what kind of infringement 
would qualify for this kind of enforcement and whet her there also civil remedies available to rights 
holders that would permit them to sue for in fringement and to obtain damages and injunctions? 
 
Part IV - Trade Policies by Sector, (5) Services,  (iii) Telecommunications and Postal Services, 
Paragraphs 102, 104 – 105, pages 68 - 69. 
The Secretariat notes that the Telecommunication Regulatory Authority (TRA) is managed by a 
Board of Directors appointed by Decree of the Council of Ministers, that the Government and 
government agencies own more than 56% of BATELCO (the former monopoly fixed telephony 
provider), and that the National Telecommunication Plan prepared by the Ministry of Transportation to be issued in the second half of  2007 has as a main objective to "create opportunities 
for BATELCO to adapt and grow by balancing the m echanism that ensures it co mpetes fairly with the 
stimulation of competition." The Reference Paper on basic telecommunications outlines the concept 
of impartiality of regulators with respect to market participants. WT/TPR/M/185/Add.1 
Page 16  
 
 9. (a) Could Bahrain please explain if the TRA is  an impartial regulator as described in the 
Reference Paper? 
 (b) If so, could Bahrain provide further detail on existing mechanisms to ensure impartiality? 
 
Part IV - Trade Policies by Sector, (5) Services , (iii) Telecommunications and Postal Services, 
paragraph 106, page 69. 
The Secretariat Report notes that under the Telecommunications Law, the requirements to grant a 
licence include, "that substantially all the infrastruct ure and personnel associated with the provision of 
telecommunications services are located in Bahrain." This would appear to limit a foreign entity's 
ability to offer telecommunication services via mode 1.  
10. Could Bahrain please provide further info rmation on the reasons for this limitation? 
Part IV - Trade Policies by Sector, (5) Serv ices, (v) Tourism, paragraph 139, page 76. 
 
The Secretariat Report states that the moratorium on new licenses for one-, two-, and three-star hotels 
still applies.  11. (a) Could Bahrain please tell Canada when  it expects to lift this moratorium?  
 
The Secretariat Report also states that licenses are granted for four- and five-star hotels if projects proposed offer new attractions not availabl e in hotels of similar categories.  
 (b) Could Bahrain please cite examples of such "new" attractions?  
 
Part IV - Trade Policies by Sector, (5) Services , (v) Tourism, paragraph 141, pages 76-77 (with 
reference to Part II - Trade and Investment Re gimes, (5) Investment Framework, paragraph 27, 
page 19). 
 
According to the Secretariat Report, foreign inv estors, subject to the Commercial Companies Law 
(CCL), may own up to 100 percent of total equity . The revised CCL adopted in 2001 authorizes the 
Minister of Industry and Commerce, in agreement w ith relevant Ministers, to allow up to 100 percent 
foreign equity ownership in companies provided for by the law.   12. In the sectors where foreign investment is a llowed, could Bahrain please explain what criteria 
are taken into account in allowing up to 100 percent foreign equity ownership?  
 Other Question:  
Canada would like to thank Bahrain for its May 11, 2007 notification to the WTO SPS Committee 
(G/SPS/N/BHR/8 ) notifying WTO members of the "Inspection Guide for Imported Foods at GCC 
Entry-Points".  Canada supports the implementation of a G CC-wide standard for food inspections and 
expects that it will result in im proved consistency and transparency among the trade policy regimes of 
member countries.  13. (a) Canada notes that the 44 page "Inspection Guide for Imported Foods at GCC Entry-
Points" in only available in Arabic. Is Bahrain or the GCC Secretariat considering preparing an 
English version of the document?    (b) If so, would Bahrain consider extending the comment period (due to expire July 10-11) to 
allow for a suitable period of time to consid er the English document once it is available?  
  WT/TPR/M/185/Add.1 
 Page 17 
 
 
 QUESTIONS FROM COLOMBIA  
 
Colombia notes that:  Services account for almost 70% of Bahrain’s real GDP (Para. 66 Section IV. (5) WTO Secretariat 
Report) 
 Services employ over 50% of the workforce (Par a. 66 Section IV. (5) WTO Secretariat Report) 
 Foreign workers account for over 70% of Bahrain’ s labor force (Para. 22 Section I. (4) WTO 
Secretariat Report) 
 Certain services sectors that are fundamental for the provision of other services and the production and trade of goods are supplied by natural persons not connected to an organization.  The supply of 
such services requires entry of such natural persons or the cross-border provision of the service.   
 
The cited figures include such services.  Therefor e, Bahrain already admits the entry of a large 
number of service suppliers that are not connected to an organization.  In light of the aforesaid, Colombia would like that the Kingdom of Bahrain indicate the policy reasons that prevent it from making mode 1 and mode 4 comm itments related to contractual services suppliers 
and independent professionals in services sectors where service suppliers need not be connected to an 
organization, such as business services, constructi on and related engineering services, educational 
services, and health related services.  
QUESTIONS BY AUSTRALIA
 
 
II. TRADE AND INVESTMENT REGIMES 
(4) TRADE AGREEMENTS (i) WTO  
1. We note that Bahrain has submitted notifi cations to the Committee on Agriculture for 
domestic support (calendar years 1995 and 1997) and export subsidies (calendar year 1996) and has 
provided a response to a survey on state trading enterprises in 2001.  We would appreciate advice as to when Bahrain will submit updated notifications for domestic support, export subsidies and STEs? 
 
(ii) Regional Agreements  
(a) Gulf Cooperation Council 
 2. The Secretariat report notes (WT/TPR/S/185, page 18, paragraph 21) that GCC states are in the process of setting up a customs union and some asp ects have been implemented.  However, the 
report also notes that practical details on certain tr ade issues have yet to be addressed, including fully 
harmonising the list of products subject to rates hi gher than 5%, standards and technical regulations. 
 
• We would appreciate further information on the progress on implementing the customs 
union, particularly harmonising tariffs at rat es higher than 5% and standards and technical 
regulations. 
 WT/TPR/M/185/Add.1 
Page 18  
 
 III TRADE POLICIES AND PRACTICES BY MEASURE  
(2) MEASURES DIRECTLY AFFECTING IMPORTS (i) Registration and documentation  
 
3. The Secretariat report (page 22, paragraph 6), it notes that commercial invoices must be 
certified by a Chamber of Commerce in the country of  origin, and stamped by the relevant Consulate 
of Bahrain or any Arab Embassy in the country of origin, before the goods may be exported to 
Bahrain.  
• Does Bahrain have any plans to cha nge these requirements in the future? 
 
• Are GCC members proposing to harmonise documentation requirements? 
 
(v) Import prohibitions, restrictions and licensing  
 
4. The Secretariat report (page 28, paragra ph 27) notes that under the GCC Common Customs 
Law, each GCC state determines its own list of prohibited or restricted products, although members 
are developing a common list. 
 
• Could Bahrain advise on the development of a common GCC list of prohibited or 
restricted products, and when it is expect ed to be completed and implemented? 
 
(vii) Standards and other technical requirements  
 
5. The Secretariat report notes (page 30, paragra ph 33) that Bahrain is harmonising its technical 
regulations and standards at the GCC level.  The re port notes that GCC-wide standards are formulated 
by the Gulf Standards Organization (GSO).  
• Could Bahrain provide more information on the roles of the Bahrain Standards and 
Metrology Directorate (BSMD) and the Gulf Standards Organisation (GS0) work in 
developing and implementing natio nal and GCC-wide standards. 
 
(3) MEASURES DIRECTLY AFFECTING EXPORTS 
(iii)  Export Prohibition and Restrictions 
 6. Australia notes Bahrain’s listing of certain e xport prohibitions of agricultural products set out 
in Tables III.7 and III.8 of the Secretariat report ( pp. 36-37).  Australia would be interested in 
Bahrain’s rationale behind these restrictions.  
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(v) Intellectual Property 
 
7. We would be grateful for information on Bahr ain's laws to implement TRIPS Article 54, in 
particular, on time frames required for notification.    8. We note that Bahrain is not yet a party to the International Union for the Protection of New 
Varieties of Plants (UPOV).  How does Bahrain provi de protection for plant varieties (Art 27.3 (b) of 
the TRIPS Agreement)?    9. Noting that Bahrain is a signatory to th e Berne Convention, we seek information on how 
Bahrain's copyright registration systems accord w ith their commitments under the Berne Convention, 
particularly, Article 5.2.    WT/TPR/M/185/Add.1 
 Page 19 
 
 
 10. With respect to copyright, is the registration of the copyright work or other subject matter a 
condition preceding the recognition of subsistence of copyright in the work or other subject matter?  
Does the registration affect evidential presumptions as to subsistence or ownership of copyright in 
civil and/or criminal copyright proceedings?  
11. We understand that the Law No. 22/2006 on Copyright and Neighbouring Rights enacted by 
Bahrain in June 2006 introduced a number of cr iminal penalties for copyright infringement.   
 
• Have any criminal proceedings been comme nced under these new provisions to date?  If 
so, have any criminal penalties been imposed as a result of such action?  (Please provide 
relevant details). 
 
12. With respect to digital copyright works, how does Bahrain provide for protection of technological protection measures?  13. Does Bahrain’s patent law exclude from patent ability computer software related inventions, 
business methods or any subject matter listed in Article 27 of TRIPS?  
 14. We note that Bahrain is a signatory to the G CC Patent Law.  What differences, if any, are 
there between the GCC patent law and Bahrain’s patent law?    
 15. Does Bahrain’s trademark law allow for the registration of new kinds of signs, including 
shape, colour, sound or scent and are there any requ irements that marks be visually perceptible?  
 16. We note Bahrain’s recent accession to the Trademark Law Treaty.  Does Bahrain intend on acceding to the Singapore Treaty on the Law of Trademarks (2006)?  IV. TRADE POLICIES BY SECTOR (5) SERVICES 
 
17. In the context of Bahrain’s Trade Policy Review report which notes (WT/TPT/G/185, page 4, 
paragraph 2) that Bahrain "now fully embra ces an open market philosophy as a means of 
underpinning future economic development….", when and how does Bahrain intend to adopt a 
competition policy which, as reported by the WTO Secretariat, "could allow for better resource 
allocation and increase the predicta bility of its trade regime"? 
 18. Given that the services sector is a key co mponent in Bahrain’s overall policy of economic 
diversification, and transparency is a key factor  for investors when considering new markets, is 
Bahrain able to make available English language copies of the following legislation and regulations: 
 
• its laws and regulations governing the establishment and operation of commercial 
business enterprises; and 
• its law and regulations governing foreign investment in Bahrain? 
 19. Noting the observation by the WTO Secretaria t (WT/TPR/S/185, page x, paragraph 18) that 
"Bahrain needs to bring some elements of its trade re gime more up to date a nd into greater conformity 
with WTO provisions", could Bahrain outline what step s it considers that this might involve in the 
services sector?  WT/TPR/M/185/Add.1 
Page 20  
 
 QUESTIONS FROM INDIA
 
 
1 Para 23 of Bahrain’s Report, mentions that the country is keen to enable the development of a 
knowledge-based economy.  We request  Bahrain to provide more details of its plans, timeframes, 
financing of this important project. 
 
2. We request Bahrain to provide more deta iled information on the new industrial policy the 
country has adopted, Para 29 of its report refers.  3. We request Bahrain to provide information as to when various science & industrial parks will 
be established as mentioned in Para 32 of its report. 
 4. On Competition Law, India would appreciate if Bahrain could inform as to timeline for finalization and implementation of  this proposed legislation. 
 
5. Para 51 of Bahrain’s report mentions of e quipping the national workforce to benefit from 
labour reforms.  Does Bahrain also envisage labour reforms for recruitment, employment terms and 
conditions of dispute settlement imp acting on non-national workforce. 
 6. The parts of Para 10 of the Government repor t states that Bahrain is welcoming and tolerant 
of all nationalities and faiths and a na tional which upholds the rule of la w. It is reported that in the 
current form the labour system give considerable  advantage to the employer over the employee and 
consequently lead to abuse. It is also reported that the present system affects not only the work force 
at semi-skill level but also at  higher levels such  as  accountants who in some cases are not permitted 
to proceed on leave even in emergencies and are for ced to continue even  after resignation or expiry 
of work contract  by withholding passports or re fusal to give ‘exit clearance’.  While we appreciate 
the relative openness and tolerance practised by th e Bahraini government, we request Bahrain to 
inform how and by when Bahrain proposes to re form the present system of sponsorship and  
implement other labour reforms. 
 7. Para 87 of its report states that Bahrain is  keen to liberalise health services.  We would 
appreciate if Bahrain could give details of th is and if this sector is open to 100% FDI. 
 
8. We would appreciate to receive informa tion as to how Bahrain proposes to enhance its 
protecting Intellectual Property and impr oving implementation of IPR regime. 
 9. While Para 42 of Bahrain’s report states that  monopolies and cartels are not considered to be 
in the public interest, on the other hand the Secret ariat report points out that mining and quarrying 
sector basically petroleum and natural gas, is do minated by State owned enterprises notably BAPCO, 
BANAGAS and ALBA, Gulf Air.  Does Bahrain ha ve plans to reduce the scope of these monopolies 
by opening up these sectors to private domestic and foreign investment and any time frame 
envisaged?  WT/TPR/M/185/Add.1 
 Page 21 
 
 
 REPLIES PROVIDED BY BAHRAIN 
 
SINGAPORE  
 
Q. 1  
Foreign Direct Investment 
 
The WTO Sec report WT/TPR/S/185 page 7 para 18 not ed that  "since its last Review, Bahrain has 
been implementing measures to improve the investment  climate.  In particular, a revised Commercial 
Companies Law was enacted in 2001, and a new Comme rcial Companies law is now in the legislative 
process, to pave the way for a surg e in foreign investment inflows…" 
 What are the key significant changes which invest ors could look forward to in the new Commercial 
Companies law, and how these changes could ai d increases in foreign investment inflows? 
 
Answer 1.  
 
The new Commercial Company Law (draft)  Design brief
 
The following characteristics were used as a basis for the drafting of the new law, currently in draft 
form and now in the legislative process :  
o conform to best international practice 
o be flexible and transparent 
o strongly support the development of corporate governance 
o focus on SMEs 
o encourage new business development  
o provide a globally competiti ve legal environment, and 
o should be simple to read by all. 
 
Summary of  new issues covered by the Draft Company Law
 
 
o Definitions and Terms are spec ifically provided for in the introduction to the law 
o The company legal formats are reduced to 4 only 
o Shelf-companies are provided for 
o Companies objects can be for ‘any lawful purpose’ 
o Sets out lacunae powers in the law 
o Companies can reserve their names in advance of incorporation 
o Companies can adopt assumed names 
o Introduces the ‘registered office’ and ‘registered person’ concept 
o Ministry is receiver of last resort  of notices sent by Ministry 
o Duty of care and loyalty introduced 
o More detailed provisions dealing w ith conflict of interest provided 
o Derivative actions provided for 
o Court remedies to deal with deadlock situations 
o Ministry duty is to file documents which it can rely on for validity and correctness 
o All companies, WLL and JS can have one or more members 
o Articles of Association need not be in a written form, and need not be filed with Ministry 
o Shares in   WLL may be freely transferable, or restricted depending on Articles 
o General  Assembly of WLL not required  unless provided for in the Articles 
o Shares of WLL can be partly paid 
o Introduces the concept of solvency in relation to distributions WT/TPR/M/185/Add.1 
Page 22  
 
 o WLL can purchase its own shares 
o WLL merger requirements are set out 
o In a JS the law makes it possible to advance funds to 3
rd parties for the purchase of its’ own 
shares 
o Articles of Association not mandatory for a non-public company 
o Specifically provides for differen t classes of preferred shares 
o Bearer shares not permitted 
o Shares may be un-certificated 
o Pre-emptive rights may be disabled by the Memorandum 
o Alternative format for AGM’s provided for 
o Shareholder nomination of Agenda items provided for 
o Directors can be proxies provided only for non-discretionary voting 
o Cumulative voting of Directors 
o Public company to have at least 3 independent directors 
o Board meetings by electronic means provided for 
o Actions can be taken by written consent of Board members 
o Boards of public companies must be established committees for audit, nomination, 
remuneration 
o Public companies must adopt corporate governance guidelines 
o All companies must have person nominated as Company Secretary 
o Restrictions on the issue of dividend  
o Certain unimportant changes to Memorandum no t affected shareholders rights can be made 
directly by the Board 
o More detailed merger provisions 
o Dissenting shareholders entitled to be paid- out for full value of their shares 
o Acquirer of a controlling interest to offer other shareholders within 60 days 
o 90% Acquirer has right to purchase minority interests, and minority has right to require 
acquirer to purchase 
o Annual return for filing does not include financials 
o Migration/Emigration to and from Bahrain permitted 
o Certificate of authority for foreign companies to operate required., but no guarantee 
requirement. 
o Investment Protection Chapter 
 These issues are all designed to attract new investment, but in particular we believe that the following 
characteristics will be particularl y attractive to foreign investors : 
Legal Migration : would provide a more simple st art-up process, since the migrating company would 
no require to dissolve in order to re-incorporate in B ahrain. This is a featur e of many jurisdictions 
which have been successful in attracting inward investment. 
 Off-the-shelf companies
 : available in practically all develope d and developing countries could not be 
established under the current law due to the framew ork of the law. OTS companies would provide an 
extremely fast and economical start-up ,and at the same time would enable the Ministry to engage 
with professional firms as ambassadors fo r attracting new business to Bahrain. 
 Investment Protection
 : foreign investors would like to be protected from the possibility of 
expropriation of their assets, and against changes to tax regimes etc. An Investment protection 
Chapter in the draft Law serves this purpose a nd adds greater transparency to the whole 
incorporation regime. 
 Capital requirements
 : minimum capital requirements (other than for banks and insurance 
companies) to be significantly reduced.   WT/TPR/M/185/Add.1 
 Page 23 
 
 
 Simpler incorporation requirements  : no legal requirements for a non-public company to provide 
Articles of Association  Relaxed meetings provisions
 : electronic meetings provided for. A WLL not required to have a 
General Assembly meeting. 
 
Government Procurement 
 
It was noted in the WTO Sec report that Bahrain is "neither a member of nor an observer to the WTO 
Plurilateral Agreement on Government Procuremen t".  Would Bahrain consider to becoming a 
member or an observer to the WTO GPA?  
 
Answer: 
 Bahrain is discussing the issue of the membership of  the WTO GPA within the context of the GCC. 
Nevertheless, Bahrain supports the goals of WT O GPA, as it serves the purpose of  improving 
transparency and increasing fair market access in government procedures and regulatory decisions 
that are related to procurement. In Oct ober 2002, Bahrain implemented a new government 
procurement law that establishes the basic fram ework for a transparent government procurement 
system. A tender board has been established in J anuary 2003 to oversee all government tenders and 
purchases.  
 
Bahrain has signed an FTA with USA (a GPA me mber), and is in the process, through GCC, of 
negotiating an FTA (inclusive of go vernments procurement) with so me other members of GPA, such 
as EU, Singapore and EFTA countries. 
 
KOREA
 
 
1. Certification System of Commercial Invoices by the Consulate of Bahrain or Any Arab 
Embassy (WT/TPR/S/185 pp.22~23 para.6) 
 
z Before goods are exported to Bahrain, co mmercial Invoices are required to receive 
consular stamp from the Bahraini Embassy or any other Arab Embassy in the countries of origin of 
the goods even after they were certified by a Cham ber of Commerce of the country of origin on the 
origin of the goods and their export price.    Korea does not require such stamping by the Consulate of Korea to Bahraini 
exporters. What is the purpose of this stamping sy stem, and does the Bahraini Government have any 
plan to remove the stamping requirement on a reciprocal basis?  Answer:  The  certification is required in order to be c onfident about the validity of these documents and to 
ensure that they are issued by governmental agenci es in the exporting country.  This should be done 
by a Bahrain Embassy or, in the event that there is  no Bahrain Embassy in the exporting country, then 
it should be attested by an Arab Embassy as a matter of facilitation.  Bahrain Customs are ready to 
address any specific concerns in this regard and review this requirement in the future in line with its 
continued review of procedures and formalities with a view to achieving simplification  and 
facilitation.  WT/TPR/M/185/Add.1 
Page 24  
 
 2. Preferences for Goods produced in Ba hrain and GCC States in Government  
Procurement   (WT/TPR/S/184 p.35 para.54) 
   
z Under Prime Ministerial Edict No. 21/1987, th e Bahraini Government is afforded to 
procure goods produced in Bahrain and GCC countries on a priority basis if the margins between the prices of these goods and their imported like products are within the specified margins (Bahrain 10%, 
GCC countries 5%). 
 What is the position of the Bahraini G overnment on this issue, and does the 
Bahraini Government have any plan to address these  preference practices to enhance fair competition 
in government procurement? (The end)  Answer 2. 
 
Bahrain still applies the Prime Ministerial Edic t No. 21/1987, and has no current plan to address 
these preferences, which have been implemented due  to developmental reasons and at a GCC level. 
However, the preference is given for products produced in Bahr ain based on the product and not the 
nationality of the producers. As for products produ ced in other GCC countries, the  ownership of 
GCC citizens should not be less than 51% .  UNITED STATES
 
 
II. TRADE AND INVESTMENT REGIMES 
(4) T RADE AGREEMENTS  
(ii) Regional agreements  
 Gulf Cooperation Council (GCC)
 
 
• Pg18, para. 21 (WT/TPR/S/185) :  Paragraph 21 reports that th e GCC was notified to the WTO in 
1983 under the Enabling Clause and describes the work being done toward the completion of a 
Customs Union by the GCC.  What percent of Bahrain’s imports from and exports to its GCC trading partners are duty-free?   
 
Answer: 
 
Approximately 75% of all Bahrain’s exports and 71% of all Bahrain’s imports  with the GCC 
are duty free.  
Nevertheless, all goods imported to and from the GCC states will be free of customs duty by 
December 31
st 2007. 
 III. TRADE POLICIES AND PRACTICES BY MEASURE (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
Q2 
(iv) Tariffs, other duties, and taxes (d) Duty and tax concessions 
 
• Page 28, Paragraph 23 of the Secretariat’s report states:  "…In addition, duty and tax concessions 
may be granted selectively to certain industri es or companies on imports necessary for their 
operational use."  Please explain how certain industr ies or companies are selected for duty and tax 
concessions.  Upon what criteria does Bahrain base its selections? 
  WT/TPR/M/185/Add.1 
 Page 25 
 
 
 Answer: 
 
The current concessions are applie d across the board to all industries, and there is no 
selectivity involved. 
 
Under the Law No. (3) for the year 2004 with regar ds to the ratification of the "Resolution of 
the GCC Supreme Council with respect to the exemption of industrial installation from 
customs duties levied upon industrial inputs" , the exemption is applicable across the board 
and is not specific to a particul ar industry or company, and is  granted to all factories which 
apply to Ministry of Industry & Commerce  on a non-discriminatory basis.  
 
Furthermore, items are exempted  from custom s duty by virtue of the list attached to the 
Minister of Finance’s Ministerial Order  No. (12) of 2003 as  updated. 
 
Q2 
(vi) Contingency trade remedies  
• Page 30, Paragraph 31:  According to the Secret ariat’s report, "Bahrain has not yet submitted a 
notification on laws and regulations under Artic le 32.6 of the WTO Agreement on Subsidies and 
Countervailing Measures.  However, it adopted the provisions on contingency trade remedies 
contained in the GCC Treaty through Law No. 4/ 2006; implementing regulations have yet to be 
finalized."   
 
• When will Bahrain submit a notification unde r Article 32.6 of the SCM Agreement? 
 
Answer: 
 
Implementing regulations have been finalized w ithin the relevant GCC technical committee at 
the beginning of 2007, and notification to th e WTO will be made in due course once adopted. 
 Q 4. (ix) Local-content requirements  
• Page 36, Paragraph 57:  Has Bahrain implemen ted or will it implement replacement programs for 
the two that had local-content requirements (the  HRDS and the Industries Support and Protection 
Law)? 
• Please clarify the extent to which the Indus tries Support and Protection Law (Legislative 
Decree No. 11/1985) has been phased out.  Fo r example, what is the final date for 
beneficiary companies to receive support and protection?  
 
Answer: 
• Bahrain enacted Law No. (3) for the year 2004 "Ratification of the Resolution of the GCC 
Supreme Council with respect to the exempti on of industrial installation from customs 
duties levied upon industrial inputs". This Law supersedes Law No 11 for 1985 on "Industries Support and Protection". The current law no longer requires local-content. 
• Factories which were obtaining benefits  under Law No 11 for 1985 on "Industries 
Support and Protection" which provided for duty concessions for two renewable years, 
continue to benefit until the two years expire .  WT/TPR/M/185/Add.1 
Page 26  
 
 Q
 5. 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
 
We note that Bahrain last submitted a subsidies no tification under Article 25.8 of the SCM Agreement 
in July 2000.  What is the status of Bahrain’s efforts to submit its next subsidies notification? 
 
ANSWER 5. 
 
Notification to the WTO is being prepared in  coordination with the relevant authorities and 
will be made within 2007. 
 
Q6. 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  
(ii) Competition Policy and Price Controls  
• In paragraph 73, page 39, the Secretariat repor t states: "In addition, consumption of livestock 
imported from Australia is subsidized: th e subsidy is on the slaughter price." 
•  What is the basis for the subsidy on slaughter price that applies only to Australian 
livestock? 
• Does Bahrain intend to eliminate this subsidy? 
 
Answer: 
A subsidy is provided to all consumers in  Bahrain on a non-discriminatory basis as an 
element in the human welfare regime. The subsid y given supports the price of meat in the 
domestic market by fixing the price of slaught ered meat supplied by the slaughter house, 
which is a private sector operation.  The import of live sheep is primarily, but not excl usively, from Australia only on the basis of 
local taste/habit and price considerations. The subsidy is on Australian livestock de facto, 
since this is the main current source of suppl y, but essentially applies to all slaughtered meat 
supplied by the slaughterhouse .  There is a plan under consideration to remove the subsidies and to replace this with social 
assistance to be provid ed to needy families. 
 
Q 7. 
(iv) Intellectual property rights 
 
Trademarks/Geographical Indications:
  With regard to the section on Geographical Indications in 
paragraph 96 of the Secretariat’s Report, please clar ify whether Bahrain is requiring that there be a 
bilateral treaty/agreement, and therefore requiring reciprocal protection, as a precondition for granting 
GI protection to foreign GIs in Bahrain.  Please conf irm that Bahrain allows for the direct application, 
opposition and cancellation by anyone of a GI, wit hout government intervention (i.e., without 
negotiation of a treaty or an agreement to protect GIs).   Answer: 
We confirm that Bahrain allows for the di rect application, oppos ition and cancellation by 
anyone of a GI, without government intervention (i .e., without negotiation of a treaty or an 
agreement to protect GIs). 
  WT/TPR/M/185/Add.1 
 Page 27 
 
 
 SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU  
 
A.  Report by the WTO Secretariat (WT/TPR/S/185) 
I.  ECONOMIC ENVIRONMENT 
(4)  OUTLOOK 
Question 1 
(Page 9, paragraph 22) 
 
The report mentions that the Bahrain authorities ar e considering introducing a limited welfare scheme 
to unify benefits in the public and in private sector s in order to make private sector employment more 
attractive.  
Could Bahrain please elaborate further on the details of the scheme? Would it affect the hiring of 
foreign workers by foreign-affiliated companies? 
Answer: 
The scheme is based on providing more labour rights to private sector employees, collective 
bargaining, more funds for training through the Labour Fund which was created in 2006 and 
more job security through eligibility for unemplo yment insurance which has been introduced in 
2006. The scheme does not directly affect the hiring of foreign workers by foreign affiliated 
companies. 
II.  ECONOMIC ENVIRONMENT 
(5) INVESTMENT FRAMEWORK 
Question 2 
(Page 20, paragraph 30)  
We note that a number of businesses, as published in a negative list, are still prohibited or restricted in 
Bahrain.  
 
Could Bahrain please advise how often it updates the aforementioned "negative list"? Are there any 
plans to revise the list with a view to reducing the number of existing items?  Answer 2. 
The Negative list is derived from and is depende nt on various Laws and regulations in force. 
The current Negative List was recently updated in 2006, as part of the Business Start Up 
initiative, and is under continuous review. 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION 
Question 3 (Page 22, paragraph 3) 
 We note that the Bahrain governme nt has established a programme for the privatization of state-
owned companies. Are there any timelines set for the privatization of ALBA (aluminium), BANAGAS 
(gas) and BAPCO (petroleum)?  
Answer: 
There is no timeline set, per se, for the divestitu re of ALBA, however it is expected that this 
would take place in the medium term. In so  far as BAPCO & BANAGAS are concerned, the WT/TPR/M/185/Add.1 
Page 28  
 
 Government of Bahrain is currently restructuring its oil and gas sector as a whole, including the 
establishment of a holding company that manages the Government of Bahrain’s interests in the 
oil and gas sector whether inside or outside Bahrain.  
(2) MEASURES DIRECTLY AFFECTING IMPORTS 
(vii) Standards and other technical requirements 
(a) Standards, testing, and certification 
Question 4 (Pages 30 and 31, paragraph 33)  
It is indicated that the national standards and te chnical regulations normally enter into force in 
Bahrain three to six months
 after their publication in the Official Gazette . Article 2.12 of the WTO 
Agreement on Technical Barriers to Trade requires that WTO Members allow a reasonable interval 
between the publication of technical regulations and their entry into force, and a "reasonable interval" 
usually means a period of not less than six months , except when this would be ineffective in fulfilling 
the legitimate objectives pursued, accordi ng to paragraph 5.2 of the Decision on "Implementation-
related issues and concerns"  (WT/MIN(01)/17)  adopted at the Doha Ministerial on 14 November 
2001.  
 
Could Bahrain please explain how, in this respect, the above-mentioned Doha Ministerial Decision is 
being taken into account in the statutory system?  
 
Answer 4 
The implementation of new standards is normally six months after publication. The minimum six 
month interval between publication and applic ation of new standards will apply to all new 
standards in the future. 
(viii) Government procurement 
Question 5 
(Page 35, paragraph 52)  
Our questions are as follows: 
Could Bahrain please provide us with an update of progress on the implementation of its re-tendering 
project?  
 Answer to a): 
The Tender Board has recently awar ded its e-tendering project to a contractor. The contract is 
scheduled to commence in August 2007 
Are there any plans to fully replace the current pap er-based tendering process by an electronic one?  
 Answer to b): 
Yes. 
What are the likely effects of this e-tendering project on foreign companies entering the Bahrain 
government procurement market? 
  WT/TPR/M/185/Add.1 
 Page 29 
 
 
 Answer to c): 
E-tendering project will enhance the opportuniti es for the participation of international 
companies in Bahrain government procurement. E-tendering is expected to increase the number 
of foreign companies participating in government procurement. 
(3) MEASURES DIRECTLY AFFECTING EXPORTS 
(iv) Export subsidies, finance, insurance, and assistance  
Question 6 
(Page 38, paragraph 66)  
Our questions are: 
What are the conditions or requirem ents for SMEs to qualify for th e export financing provided by the 
Bahrain Development Bank?   Answer to a): 
Conditions or requirements for SME’s to  qualify for a loan in general are: 
甲、 Registered in the Commercial Register at the Ministry of Industry & Commerce and 
fall within the BDB’s classification as a SME. 
乙、 Business plan for small businesses and a feasibility report for larger businesses 
prepared by a professional consultant 
丙、 Financial statements of the business or bank  statements of the entrepreneur for the 
last six months in the case of start ups 
丁、 Acceptable credit reference from its current bankers 
戊、  
Does the government of Bahrain provide preferen tial or favourable financing terms to SMEs?  
 
Answer to b): 
Yes. The government of Bahrain provides financing facilities to SME’s through the Bahrain 
Development Bank (BDB), which is a government owned bank.  
Can foreign-affiliated SMEs established in Bahrain apply for these loans as well? 
 Answer to c): 
Yes.  
IV. TRADE POLICIES BY SECTOR 
(3) MINING, QUARRYING, AND ENERGY 
(i) Overview 
Question 7 (Page 52, paragraph 30) 
 1. We note that a Bahraini-Qatari Committee is in  charge of the negotiation of the gas supply 
imported from Qatar and the Technical Committee of  NOGA is empowered to negotiate Bahraini 
natural gas importation. Could Bahrain please explain how these two committees operate and 
coordinate with each other while negotiating the importation of natural gas from Qatar?  
 WT/TPR/M/185/Add.1 
Page 30  
 
 Answer: 
Currently, there is only one committee that handles the negotiations of the natural gas 
importation and that is the Joint Technical Committee. 
Question 8 
(Page 52, paragraph 29, and Page 53, paragraph 32) 
The main policy goals of Bahraini mining and qua rrying sector include strengthening the participation 
of the private sector through privatization, despite  the fact that BAPCO, the wholly state-owned 
petroleum company, enjoy a monopoly in oil exploration, production and exportation.  
Could Bahrain please indicate whether there is any  plan to privatize BAPCO.  If so, we would 
appreciate knowing the privatization schedule and the rationale behind such a plan? 
Answer:  
In so far as BAPCO is concerned , the Government of Bahrain is currently restructuring its oil 
and gas sector as a whole, including the establishm ent of a holding company that manages the 
Government of Bahrain’s interests in the oil and gas sector whether inside or outside Bahrain.  
Question 9  
(Page 53, paragraph 32) 
As indicated in the Report, refining of petroleum products is de jure  open to competition, but a de 
facto  monopoly is in place. We would be interested in knowing whether foreign or private investors 
have encountered any possible obstacles or restrictions  to their entry into the Bahraini petroleum-
refined sector resulting in re duced market competition? 
Answer: 
No. There have not been any reports of obstacles or restrictions encountered for the entry of 
foreign or private investors into the Bahrain petroleum-refinery sector. However, feasibility 
studies are required that includes the technica l aspects of the project in addition to the 
commercial availability of crude petrol eum necessary for th e refinery process. 
Question 10 
(Page 57, paragraph 50) 
Electricity prices in Bahrain are set by the Cabinet, based on a Ministry of Electricity and Water 
proposal.  
When the government formulates the price, is th ere any public mechanism involved? Furthermore, 
have any important concerns come to light and what is the procedure for setti ng the electricity price? 
Answer: 
There is no public involvement per se, however, th e Parliament is actively engaged in raising 
initiatives, proposals in respect to electricity charges.  WT/TPR/M/185/Add.1 
 Page 31 
 
 
 When the Ministry of Electricity & Water (MEW) p resents electricity prices proposals, it attempts 
to recover full costs without any profit margin . Invariably, due to external conditions, the 
electricity prices agreed by the Cabine t are set normally lower than the cost. 
Furthermore, the Parliament normally raises pr oposals to different Ministries including MEW to 
reduce applicable charges applied by the Governme nt for the provision of services to the 
population. The concerned Ministry elevates the imp lication of such proposals by the Parliament 
and these implications are clarified to the Cabinet. The Cabinet then decides what course of action 
to take on the request of the Parliament to reduce charges. The last reduction in electricity charges 
in the year 2005 was due to the Parliament initiative. 
Important concerns:  
i) MEW believes that electricity charges must reflect the time cost of the provision of the 
services. 
ii) MEW believes that the electricity charges should reflect the full cost and that should be 
achieved within a predetermined time frame. 
iii) It is hoped that with the future restructuring of the electricity sector in Bahrain, that an 
independent authority is established with the responsibility of setting electricity charges. 
 
B. Report by the Government of Bahrain (WT/TPR/G/185) 
III. ENHANCING PRODUCTIVITY AND CAPACITY (1) Policy Initiatives 
Question 11 
(Page 6, paragraph 19)  
We note that the government of Bahrain expects that its reform measures aimed at stimulating 
productivity will create an enabling environment whic h will more than double per capita GDP by the 
year 2015, and increase labour pr oductivity by 4-5% annually.  
 
Would Bahrain please describe for us  the reform measures being taken? 
 
Answer: 
The program involves a number of interconnecting aspects and projects, designed to stimulate business and enabling the private sector to become  the engine of growth for the economy, as 
well as to transform Government from operato r to regulator, where feasible. The program 
involves the following : 
 
• Labor Reforms will bring legislation in line with the objectives of a liberal and open 
economy, which in turn will enhance productivity . The Labor Reforms include a focus on 
investment in training to upgrade the skills sets and work readiness of the domestic 
labor force. 
 
• Reforms in the educational, training and he alth sectors in order to enhance the 
competitiveness of the national work force. 
 
• A continuous review of the economy and Bahr ain’ s competitive advantages, will result in 
the gradual opening up of more economic sectors in line with Bahrain’ s development 
perspectives. 
 
• Those sectors which are liberalized under Bahrain’ s policy of empowering the private 
sector and downsizing government, will invol ve private sector specialists in their  WT/TPR/M/185/Add.1 
Page 32  
 
 regulation and development. 
 
• The whole process of labor reforms and economic development initiatives will 
encourage and facilitate pu blic participation in the legislative process. 
 
• More funds and technical assistance is to be provided to energize and upgrade 
productivity in SMEs, as part of the new Industrial Policy. 
 
• The Privatisation and divestiture of public sector utilities and other Government assets 
and operations will provide greater investment  opportunities for the private sector to 
increase productivity and enhance their contribution to GDP . 
 
(v) Competition 
Question 12 
(Page 8, paragraphs 42-43)  
Further information would be appreciated as follows: 
Could Bahrain please provide cl arification of exactly how the Bahrain National Competitiveness 
Council (BNCC) monitors and reports on the perform ance and competition condition of the Bahraini 
economy?   
Answer: 
The Bahrain Competitiveness Council relies most ly on the World Economic Forum’s Global 
Competitiveness Indices and sub-indices and tracks Bahrain’s ranking in those indices. The Council 
looks at the areas where Bahrain is experiencing change within its ranking both to improve and 
maintain Bahrain’s comp etitiveness position. The Council would then pick areas that would require 
recommendations and publish a white paper with  proposals addressing major findings. The Council 
would also start lobbying with policy ma kers after recommendations have been made. 
In the absence of competition law, what are the legal instruments and criteria used by the BNCC in 
make such an assessment? 
 
Answer: 
The Council looks at several legal instruments bot h general and sectoral that provides for the 
protection and promotion of competition. These in clude, inter alia, the Law of Commerce, the 
Commercial Company Law, The Central Bank of Bahrain and Financial Institutions Law, 
Telecommunications Law, and Tender Law. 
(vi) Privatization 
Question 13 (Page 9, paragraph 44) 
 We note that privatization in Bahrain has been  accelerated since 2006, notably in the power 
generation, public transport and communication sectors.  
What limitations apply to foreign businesses wishing to invest in these privatization projects? If limits 
do exist, are there any plans to fully liberalize foreign participation in privatization projects?  WT/TPR/M/185/Add.1 
 Page 33 
 
 
 Answer: 
No. There are no limitations on foreign participation in  privatisation projects, within the overall 
country policies. 
 
EUROPEAN COMMUNITIES  
 
II. TRADE AND INVESTMENT REGIMES  
(3) P OLICY OBJECTIVES  
Sustainable development  
Could Bahrain provide some information about how the issue of trade and sustainable development 
fits into its overall development strategies? Have any particular measures been taken since the last 
Trade Policy Review in 2000? 
Answer 1. 
Bahrain has adopted the principle of open-ma rkets as a development philosophy, and believes 
that sustainable development is based on so und economic policies, an open, transparent and 
efficient public administration, and that  envi ronmental policy should be integrated into the 
economic development planning.  
As a country with little in the way of resource endowment, and with a growing population, 
international trade is seen as providing a means of supporting economic diversification, 
providing the resources and investments re quired for sustainable development, through 
technology transfer and cross fertilization, and enhancing employment opportunities.. 
The ability to attract and retain foreign investments is important to job growth, and a concerted 
effort has been  initiated to create an invest ment environment which is more conducive to 
business, by adopting new procedures and a state of  the art one-stop investment centre, designed 
to encourage inward investment by making th e whole process transparent, predictable and 
efficient. A new Commercial Companies Law, will also enhance the attractiveness of Bahrain to 
foreign investors, as will the numerous invest ment projects, industrial parks and the 
Government’s privatization program. 
The Government of Bahrain has used its limited oil resources to develop a modern infrastructure 
and nurture an educated population to support the pr ivate sector as the engine of growth, and has 
opened up its market to competition as a means of enhancing the competitiveness of its domestic 
businesses for the purpose of ensuring long term sustainability. The Government is focused on 
moving the economy to a knowledge  base, and trade is a key compone nt in achieving this through 
the transfer of technology and knowledge from forei gn investors. Bahrain believes, therefore, that  
trade liberalization is a core element in prog ressing sustainable development over the long term 
Bahrain’s trade policy development is a joined -up process, in which all stakeholders are 
involved, both government and private sector. Bo th the Government Report and the Secretariat 
Report, provide a picture of the changes that have been made since Bahrain’s first trade policy 
review in 2000, in terms of the diversification and development process, labour reforms, and 
Bahrain’s commitment to the multi lateral trade  process, and clearly shows that Bahrain is 
amongst the freest economies in the world, and wh ich taken together with the political changes 
which have taken place establishing the democratic system and the Kingdom of Bahrain as a 
constitutional monarchy, and enhancing institutiona l capacity and private sector involvement, 
show the extent of the measures taken  to achieve sustainable development. WT/TPR/M/185/Add.1 
Page 34  
 
 Trade and environment  
 
What mechanisms does Bahrain have in place to ensure coordination of environmental policy and 
trade policy?  Answer: 
 
Bahrain’s trade policy development is an holistic process, in which all stakeholders, including 
those concerned with environment are in volved, both government and private sector. 
Environment concerns over water, air and land  degradation have shaped the economic policy of 
the country and resulted in a focus on the devel opment of a knowledge based economy clustered 
around a number of key sectors, including hea lth, tourism, education and down-stream 
manufacturing. 
The process of industrial licensing ensures th at environment concerns are taken into 
consideration in new developments through the integration of the environment and utility 
processes in the licensing system. In this way each Government authorities concerned with the 
provision of power, water and environment regulati on, are involved in the licensing of all new 
industrial investment, and are also part of Bahr ain’s national  trade negotiating mechanism . 
 
Trade and Labour 
Bahrain's Report, page 6, para.24 
The Report by Bahrain states that the government  believes that future sustainable economic 
development lies in the strength and competitiven ess of its labour force and developing a robust 
entrepreneurial culture. Therefore, the governme nt has also embarked on a number of economic 
reform initiatives to 'empower Bahrainis with worl d class education and training to equip them with 
the skills needed to compet e in the labour market'. 
Does Bahrain have any policies to address the spec ific effects of more open global trade on labour 
market adjustments?  
Answer: 
Yes. Bahrain believes firmly that an open market policy and foreign competition is the most 
effective means of enhancing the quality and effic iency of the labour market. However, at the 
same time, recognizing that gaps do exist in the level of preparedness of the domestic labour force 
to compete with foreign labour, the government is undertaking Educational  and Training Reforms 
and the Labour Reforms in order to enhance the co mpetitiveness of Bahrainis. The Educational 
and Training Reforms aim at developing the ed ucational system in order to create a well 
educated, qualified, and trained national generation that can o ccupy all positions in the job 
market, and the Labour Reforms aim at developing the  country's legislations in order to enable 
this workforce to compete with the foreign workforce. 
How does Bahrain strike the balance between mo re labour flexibility and basic labour rights, 
particularly in trade-related sectors? 
Answer: 
In the context of labour flexibility, labour reforms center around permitting the free 
movement of labour between employers, which is seen as being an important element in basic  WT/TPR/M/185/Add.1 
 Page 35 
 
 
 labour rights. This flexibility then puts greater pressure on ensuring that Bahrainis remain 
competitive in the labour market as compared with their foreign counterparts, and the labour 
reforms has its basis in dealing with this competitiveness issue by concentrating on removing 
the skills gap of Bahrainis and enhancing their attractiveness to employers. 
In addition, labour unions, which cover Bahraini and foreign labours in both the public and 
private sectors are active in promoting labour flexibility and basic labour rights. 
The Government of Bahrain is always keen on re gularly reviewing its regulations and laws to 
serve the interests of those effected by it in  the best way, and among those regulations are 
issues related to occupational health and safe ty and human rights, and of course basic labour 
rights which are always a priority; and the Mi d-day outdoor work ban decree - (issued by the 
Cabinet on June 24, 2007) - which bans the outdoor work from noon to 4pm in the months of 
July and August is a good example for that.  
 Bahrain's Report, page 10, para.52 
The Report by Bahrain also indicates that in 2004, Bahrain embarked on an ambitious, comprehensive 
initiative to make structural reforms in the labour  market, aimed at reducing the unemployment rate 
amongst Bahrainis to less that 4% within 15 years. It also states that at the crux of this initiative are 
two overarching objectives: (1) encourage the privat e sector to become the engine of growth in 
Bahrain; and (2) make Bahrainis the employee of choice for private sector employers.  
Could Bahrain provide more details re garding its structural reforms?  
Answer: 
 
Bahrain’s labour market reform commenced w ith the enactment of Law no 19, 2006 on 
Regulating the Labour Market. The labour market re form is part of a broader set of economic 
and education reforms with the double objective of  making: the private sector the engine for 
growth in the economy; and the Bahrainis the pref erred choice of employees in the private sector. 
 
The core of the labour market reform is a system of labour fees, 80% of which will be directed 
towards training and creating job opportunities. The fees, applicable to non-Bahraini workers, are  designed to improve the co mpetitiveness of Bahraini workers by eliminating or reducing the 
existing gap between the labour  cost of Bahraini  and that of non- Bahraini workers. The 
introduction of the labour fees together with a series of other measures is intended to provide the 
necessary incentives for employers to  increase their employment of Bahrainis in the private 
sector. The labour fees scheme is being finalised a nd should go into effect on a gradual basis 
starting in January 2008 together with a more tr ansparent and objective system of work visa 
issuance for foreign workers.  
  
The labour market reform includes improved wo rking conditions in line with international 
standards; as well as a review of the termination process of employees and provides for the mobility of foreign workers to change employers.  The law on regulating the labour market 
includes also provisions for the licensing of recruiting agencies and private employment office, 
and for work permits to self-sponsored expatriates. 
Bahrain has also introduced changes to the Trade Union laws to enable the multiplicity of Trade 
Union federations and liberalize the right to strike. In addition Bahrain has a new labour law 
before Parliament which provides fo r more predictability in respect to  the outcome of dismissal of 
workers, expeditious resolution of labour related disputes and collective bargaining. WT/TPR/M/185/Add.1 
Page 36  
 
 There is currently a draft amendm ent before Parliament to enable the multiplicity of trade unions 
in a single enterprise. 
The Labor Law has also been changed during 2006 to provide, for inter alia, protection of 
workers from dismissal due to his trade union ac tivities, as well as introducing a formula to 
provide for compensation to workers in case of late payment of salaries. 
How does the Bahraini government ensure the quality of jobs, and consequently high productivity, in 
labour-intensive sectors including the impl ementation of core labour standards? 
Answer: 
Through the provision of training, Bahrain aims  to enhance the performance of employees, and 
productivity standards of employers, through impl ementing programs such as the Productivity 
Enhancement Scheme which is the responsibility of  the Labour Fund, and encouraging employers 
to move up the value chain so as to provide a higher quality jobs. 
This is in addition to, early preparation for the younger generation through the educational and 
training reforms that targets all levels of education and training in the country. It aims at improving the abilities and qualifications of the National workforce through good basic and 
advanced education systems and continuous  training and improvement programmes . 
 
(4) TRADE
 AGREEMENTS   
(ii) egional Trade Agreements 
WTO Secretariat's Report, page 18, para. 21 
 Could Bahrain provide further information on its participation in regiona l integration, and in 
particular on the implementation of its customs union with the GCC countries? 
Answer 
 
The Kingdom of Bahrain contributes in regional integration in general, and in the Custom Union 
between the GCC countries in particular, through active participation in committees that are 
established to implement the integration process be tween the GCC countries such as Custom Union 
Committee, and other technical committees in accordance to the principle and mechanisms 
procedures stated in the "The Customs Un ion of the GCC Member States" document.   
 
III. T
RADE POLICIES AND PRACTICES BY MEASURE  
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(ii) Customs procedures and valuation  WTO Secretariat's Report, page 23, para. 11 
 The authorities of Bahrain still have to submit the relevant notification to the WTO Customs 
Valuation Committee including its legislation of Cu stoms Valuation after the transition period.  
 When do Bahrain's authorities intend to submit these notifications?  
 
Answer: 
 
The notification will be submitted to the WTO immi nently, and this is expected to be within 
the coming month or so .  WT/TPR/M/185/Add.1 
 Page 37 
 
 
 What particular difficulties is Bahrain facing in  implementing the Customs Valuation Agreement? 
 
Answer:  
Bahrain does implement the Customs Valuation Agreement and it has faced no difficulties in 
its implementation, and notificati on will be made imminently.  
 (v) Import prohibitions, restrictions and licensing 
WTO Secretariat's Report, page 30, para. 30 
 
The WTO Secretariat's Report notes that imports of food products must be accompanied by a 
certificate declaring them to be free of radiation a nd dioxin. In light of this measure, Bahrain, for 
instance, requires a radioactivity certificate for th e importation of European black olives. The reason 
behind this requirement dates back to the accident th at occurred in Chernobyl's nuclear plant.  Given 
that 21 years have elapsed since this unfortunate accident, the EC sees this requirement as an 
impediment to trade rather than a genuine measure of health prevention.  
 Could Bahrain indicate on what grounds this requirement is applied?  
 
Answer: 
 
With reference to radiation, after Chernobyl's nuc lear plant accident in April 1986, Bahrain 
required all food shipments to be accompanied by  a certificate declaring them to be free of 
radiation or that radiation levels ar e within the international standards. 
 Regarding Dioxin, this certificate was required after the incident of dioxin in chicken feed in 
Belgium. 
 The requirements for radiation and dioxin cer tificates are contained in the GCC Food Imports 
Control Guidebook.    Bahrain recognises the need to reassess the neces sity of these certificates and will notify for both 
radiation and dioxin to the WTO as soon as th ese requirements are finalised and in this context 
Bahrain will study this issue at  the GCC level.  
 
Is Bahrain considering the possibility to review the radioactivity certificate requirement for the 
importation of European black olives? 
 
Answer: 
 
Yes, Bahrain is in the process of studying th e requirement of a "radiation free certificate", not 
only for European black olives, but also for al l other food products. Bahrain’s response to the 
question regarding radiation and dioxin in relation to chicken feed also applies in this respect. 
 
(vii) Standards and other technical requirements 
WTO Secretariat's Report, page 33, para. 43 
It is stated that imports of bovine origin from Europe are prohibited on gr ounds of bovine spongiform 
encephalopathy (BSE). In light of these measures, the EC seeks the following clarifications: 
 WT/TPR/M/185/Add.1 
Page 38  
 
 Could Bahrain's authorities indicate precisely to which products of bovine orig in this ban applies?  
For instance, are milk and dairy products also a ffected? Do other products such as semen and bovine 
embryos, tallow and gelatine fall also within this prohibition?  
 
Answer: 
The importation of milk and dairy products, semen , and bovine embryos are not prohibited in 
Bahrain.  However, other products of bovine orig in are prohibited from importation into Bahrain.  
 
We recognise Bahrain's, as every country's, need to  protect consumer health and safety when setting 
sanitary and phytosanitary standards, as long as thes e are in accordance with international standards 
and guidelines. The OIE Code, whic h is based on international scien tific evidence, allows a large 
number of products, including beef and beef products, to be traded freely regardless of the BSE status 
of a country. However, Bahrain continues to ba n the import of these products and has provided no 
scientific evidence to deviate from international st andards. Bahrain continued imposition of a ban on 
imports of bovine origin from EC countries with c ontrolled or undetermined BSE risk is unjustified in 
relation to its obligations u nder the WTO SPS Agreement.  
 In addition, the EC would like to stress that the WTO SPS Agreement provides, in paragraph 5:7, that 
a WTO Member may provisionally
 adopt (under special circumstances) SPS rules (e.g. when relevant 
scientific evidence is insufficien t) while a Member seeks for add itional information necessary for a 
more objective assessment of risk and review of  the SPS measures. However, this should be done 
within a reasonable period of time. Given that OIE rules and recommendations  were established in 
May 2005, we would like to recall that if Bahrain decides to go beyond international recommendations concerning BSE, it should be ab le to provide a risk assessment and to present 
supporting scientific evidence for such a decision.   
Could Bahrain indicate the reasons behind imposing a ban on import of beef from the EC despite OIE 
recommendations?   
Answer:  
 
Bahrain has imposed the ban on beef import from Europe during the outbreak of BSE in cattle in 
England and some other European countries to pr otect the consumers from this serious disease.  
However, Bahrain is studying this issue in light of  OIE development, and will do so at the GCC 
level.. 
 
What scientific evidence can Bahrain present to mo tivate the application of a more restrictive SPS 
regime, regarding trade in beef and beef produc ts, than current international standards?  
 
Answer:  
 
Bahrain regards BSE as a serious disease, whic h has created fear among the consumers.  
Nevertheless, Bahrain will look into the curren t development in the international arena with 
respect to the BSE and study this at the GCC level. 
 
Has Bahrain presented any risk assessment to this effect?   
Answer: No. 
 
Has this ban on beef been properly updated in light of recent OIE developments for BSE (OIE plenary 
session in May 2005), in particular, with respect to the safety of imports of beef and beef products, under certain conditions, and regardless of th e BSE status of the exporting country?  
  WT/TPR/M/185/Add.1 
 Page 39 
 
 
 Answer:  
 
Bahrain is currently studying OIE guidelines and re-evaluating the ban on beef with the other GCC Countries.  
 If not, does Bahrain plan to amend its national legi slation in accordance with OIE international rules 
concerning BSE? Would Bahrain consider followi ng OIE recommendation in this respect?  If so, 
would Bahrain consider amending any import restrictions applied to im ports of beef and beef products 
(and other products of bovine origin, including milk  and milk products, if any) from the EC in line 
with OIE recommendations?  
 
Answer:  
 
Bahrain is looking into the BSE issue with the other GCC Countries.  
 
(viii) Government Procurement 
WTO Secretariat's Report, page 34, para. 51 
 
The WTO Secretariat's Report points out that 'some firms have indicated that the new procedures are 
not always strictly followed and that it may still be important to have a local representative with 
strong connections'.   
 
Are foreign suppliers taking part in an interna tional tender required to have a local representative? 
 
Answer: 
 
No. No local representative is required. The only requirement in this regard is that 
unregistered international companies and firms shall register according to the applicable 
regulations in Bahrain within 30 days from the date of awarding the tender thereto.  It is very important to note that the statement in Para 51 at page 34 of the Secretariat report, upon which this question was based, is incorrect  as previously pointed out by the Tender 
Board in response to the draft Secretariat Report.   Pursuant to Article 16 of the Tender Law 
"any person which has an interest in a tender may seek a judicial review in respect of any matter or decision related to the tender" 
 
WTO Secretariat's Report, page 35, para. 52 
 
It is stated that 'The amount of the performan ce bond is determined by the Tender Board on the basis 
of the nature and value of the project' .  
 Could Bahrain's authorities elaborate further on this?   Answer:  
Performance bond  is set at 10% of  bid value on construction contracts, and for supply of goods 
& services it is set according to the  following  table: WT/TPR/M/185/Add.1 
Page 40  
 
 BID VALUE IN BD %  OF  PERFORMANCE BOND OF BID VALUE  
FROM   TO  
LESS THAN     25,000 10%   MINIMUM BD500 
25,001 50,000 8%   MINIMUM BD2500 
50,001 100,000 6%   MINIMUM BD4000 
100,000   AND UP    5%  MINIMUM BD6000 
 
WTO Secretariat's Report, page 35, para. 53 
 
The WTO Secretariat's report mentions that 'compl aints may be submitted in the first-instance, for 
reconsideration by the procuring entity and/or the TB, prior to the contract coming into effect'.  
 Could Bahrain provide some statistics on complaints made in the years 2005 and/or 2006? 
 
Answer:  
Year Number of Complaints 
2005 101 
2006 78 
 WTO Secretariat's Report, page 35, para. 54 
 
We note that price preferences are given for goods pr oduced in Bahrain and in other GCC States (10% 
for goods produced in Bahrain and 5% for goods produced in the GCC). 
Do Bahrain's authorities envisage reducing these price preferences over time? 
 
Answer:  
At present, Bahrain is not considering the re duction of these price preferences since these 
preferences have been implemented due to developmental reasons and at a GCC level. 
Nevertheless, the preference is given for produc ts produced in Bahrain based on the product 
and not the nationality of the producers. As fo r products produced in other GCC countries, 
the  ownership of GCC citizens should not be less than 51% . 
 
IV. T
RADE POLICIES  BY SECTOR  
(5) S ERVICES  
(i) Overview  WTO Secretariat's Report, page 61, para.67, and page 19-20, para. .26-33 
 With regard to the investment framework, possibiliti es of investment by foreign companies under the 
Commercial Company Law are mentioned.  Could Bahrain specify in which services sectors th e establishment of representative offices is allowed 
and where it is prohibited?   WT/TPR/M/185/Add.1 
 Page 41 
 
 
 Answer: 
 Representative office are allo wed for all services sectors. 
 (ii) Financial Services 
 
WTO Secretariat's Report, page 64, para.79 
 
As indicated in the WTO Secretariat's Report, fo reign-based retail banks may provide some banking 
services to residents.  
 
Could Bahrain specify whether foreign-invested reta il banks are allowed to provide residents with all 
kinds of banking services, or whether their scope of  activity is restricted to only a part of them? 
 
Foreign-based or foreign-invested retail banks are required to obtain a license from the CBB 
prior to operating in Bahrain.  Such a license entails having commercial presence in Bahrain.  
Licensed retail institutions may provide banking servi ces to residents of Bahrain according to the 
services applied for and granted during the course of obtaining the license.  The list of services 
that may be provided are part of the author isation procedures set out in the CBB rulebooks . 
 
WTO Secretariat's Report, page 67, para.99 
 
With regard to the insurance operations that can be performed by foreign companies under the 
Insurance Law, could Bahrain indicate what the po ssibilities are for foreign insurance companies not 
established in Bahrain to provide insurance services  in Bahrain on a cross-border basis? If so, in 
which kinds of insurance operations? 
 
Answer: 
 
Provision of cross border insurance services is limited to Reinsurance and Retrocession . 
 With respect to personnel requirements in the insura nce sector, the WTO Secretariat's Report refers to 
'certain management requirements' established by law.  
 
Answer: 
 
Insurance companies’ management are subject  to "fit and proper tests" and "mind and 
management tests" . 
 Could Bahrain provide more details a bout these management requirements?   
 
Answer: 
 
Mind and management tests are conducted to en sure that insurance companies licensed in 
Bahrain maintain their head office and have local physical m anagement presence appropriate to 
the nature and scale of their activities in Bahrain. 
 
Fit and proper tests are conducted to ensure t hat Directors, Senior Management, and certain 
other positions demonstrate the following: 
 
a) personal integrity, honesty and good reputation WT/TPR/M/185/Add.1 
Page 42  
 
 b) professional competence, experience and expertise 
c) financial soundness 
 
(iii) Telecommunications and postal services 
Telecommunication services 
 
WTO Secretariat's Report, page 70-71, para 110  
 
With respect to the treatment of disputes between the TRA and any licensed operator in Bahrain, the 
WTO Secretariat's Report mentions that 'the Telecommunications Law contemplates the creation of a 
three-member arbitration panel to determine dis putes between the TRA and any licensed operator'.  
 Could Bahrain specify whether the relevant law and regulations provide for a period of time within 
which a decision must be issued by the arbitration panel? 
 
Answer: 
 
With regards to Arbitration rules and pro cedures, Section 67 of the Telecommunications 
Law ("the Law") provides that "where no partic ular provision exists in this chapter with 
respect to any matter, the provisions provided  for in Chapter 7 of the Civil and Commercial 
procedural Law and not conflicting with the provis ions of this Law shall apply.  Accordingly, 
as the Telecommunications Law is silent as to the period of time within which a decision is to 
be issued by the arbitration panel, Chapter 7 of the Civil and Commercial Procedural law 
shall apply. Article 237 of the Civil and Co mmercial Procedural Law provides that if 
litigants do not specify in the arbitration agreement a time limit for the award, the arbitrators must give an award within three months of their agreement to arbitrate; 
otherwise either litigant may take the dispute to the Competent Court, unless they have 
jointly agreed to extend the time limit. 
 Postal/courier services  WTO Secretariat's Report, page 71, para 114  
 The WTO Secretariat's Report states that 'postal se rvices are considered important, inter alia, to: 
prepare a suitable environment for investment; […]'. The EC welcomes this statement although 
further clarification is needed.  
Could Bahrain's authorities indicate to what extent foreign postal courier provi ders can engage in the 
international and domestic postal/c ourier market in Bahrain?  
 
Answer: 
 
Foreign courier providers have been engaged in the supply of international courier 
operations from / to Bahrain since 1982 (foreign destinations only). Postal services are under 
control of Bahrain Post, a government entity , which is currently undergoing restructuring. 
 
In addition, the Report notes that the government st rategies for postal services include the intention to 
a) keep up with technological development and b) automate all postal systems and provide 
information systems for the operations.  
  WT/TPR/M/185/Add.1 
 Page 43 
 
 
 Does the government agree that these objectives could be best achieved through fair and open 
competition including international postal/ cour ier service providers, especially express delivery 
companies? 
 
Answer: 
 
Yes, Bahrain agrees that in the long term fair and open competition could be an essential component to enhance the quality of posta l and courier services in Bahrain.  
 However at the present time, Bahrain believes that the objectives of keeping up with 
technological developments and automation of postal systems, and providing information 
systems for the operations, in the context of the relatively limited Bahrain market are best 
served by enhancing local capacity and utilising the cross fertilisations prospects of existing 
domestic technology and service providers. In th is regard a comprehensive study is being 
considered and tenders for carrying out th e study have been received recently. 
 
Japan
 
 
Government Report (WT/TPR/G/185) 
III. ENHANCING PRODUCTIVITY AND CAPACITY (1) POLICY INITIATIVES 
(ix) Monetary policy 
(Question 1: page 10, paragraph 60)  
Please indicate the prospect of the GCC Monetary  Union which is scheduled for year 2010, with 
respect to Oman and Kuwait. 
 
Answer: 
 
The drive to the GCC Monetary Union is c ontinuing in accordance to the commitments 
undertaken by the GCC member countries in th e year 2001 in order to achieve monetary 
union by the year 2010.  The timeline for the implementation of the Monetary Union has 
drawn near and might pose a challenge to th e GCC countries in order for the commitments 
to be met.     
 
IV. TRADE POLICY (2) BAHRAIN AND THE RIGION (i) GCC membership 
(Question 2: page 15, paragraph 100) 
 
According to the Government report, the FTA nego tiation with the European Union antedates those 
with other countries. 
 
Please indicate the principle taken by Bahrain, in order to negotiate FTA with other countries. 
 
Answer: 
 
Bahrain, along with other GCC member St ates no longer negotiates bi-lateral agreements, 
these are now negotiated within the context of the GCC. 
 
In keeping with Article 2 of Chapter 1 of th e Economic Agreement between the GCC States 
which states - All GCC states are to conduct economic relations in a collective manner with WT/TPR/M/185/Add.1 
Page 44  
 
 other countries, blocs and regional groupings both regional and international - the 
Kingdom of Bahrain will contribute in the negotiations for a Free Trade area.  
After the GCC Financial and Economic Co-operation Committee has agreed to start 
negotiations with countries, blocs, or in ternational organizations, the GCC Negotiating 
Team is assigned to carry-out all necessary ac tions for the negotiations, and coordinates 
with both public an private sectors organizations and professionals. 
 
Once an agreement has been reached it is then signed at the GCC level, however it only 
becomes effective after the ra tification process has been comple ted by all concerned parties.    
 
(iii) Bilateral agreements (Question 3: page 16, paragraph 102) (Secretariat report: page 18, paragraph 24) 
 Please provide information on the whole picture of  agreed and negotiating bilateral agreements, 
respectively. 
 
The whole picture of bi-lateral agreements both agreed and negotiated is listed below: 
 1) In Force, Agreements on Avoidance of Double Taxation 
 
No. Country Signed Entered into Force 
1 Thailand 03.11.2001 27.12.2003 
2 Malaysia 14.06.1999 31.07.2000 
3 Philippines 07.11.2001 14.10.2003 
4 France 10.05.1993 01.08.1994 
5 China 16.05.2002 12.08.2002 
6 Singapore 18.02.2004 31.12.2004 
7 Belarus 27.10.2002 14.08.2004 
8 Morocco 07.04.2000 10.02.2001 
9 Egypt 17.09.1997 13.02.1999 
10 Jordan 08.02.2000 17.12.2001 
11 Syria 20.09.2000 25.10.2001 
12 Algeria 11.06.2000 29.09.2003 
13 Yemen 28.12.2002 14.07.2004 
14 Lebanon 07.08.2003 07.09.2003 
 
2) Agreements on Avoidance of Double Taxation, Signed, waiting for 
ratification and entering into force: 
 
No. Country Signed Remarks 
1 Iran 19.10.2002 Ratified by both parties. Wa iting to exchange ratification documents. 
2 Sudan 22.03.2006 Waiting for ra tification by both parties. 
3 Swiss Federation 09.11.2004 Ratified by Ba hrain. Waiting for Swiss ratification. 
4 Pakistan 27.06.2005 Ratified by Pakistan . Waiting for ratification by Bahrain. 
5 Turkey 24.11.2004 Ratified by Bahrain. Waiting for Turkish ratification. 
  WT/TPR/M/185/Add.1 
 Page 45 
 
 
 3) In Force, Agreements on Promotion and Protection of Investments: 
 
No. Country Signed Entered into Force 
1 Egypt 17.09.1997 21.01.1999 
2 Lebanon 07.08.2003 07.09.2003 
3 Syria 20.09.2000 19.06.2001 
4 Jordan 08.02.2000 05.07.2000 
5 Algeria 11.06.2000 06.05.2003 
6 Morocco 07.04.2000 09.04.2001 
7 Yemen 28.12.2002 02.07.2004 
8 China 17.06.1999 27.04.2000 
9 UK 30.10.1991 04.12.1991 
10 Thailand 21.05.2002 17.07.2002 
11 Malaysia 24.04.1998 12.03.2000 
12 USA 19.09.1999 30.05.2001 
13 Philippines 07.11.2001 01.04.2002 
14 Iran 19.102002 20.10.2004 
15 OPEC Fund for International 
Development 22.07.2004 26.07.2005 
16 France 24.02.2004 27.08.2005 
17 Belarus 26.10.2002 17.12.2003 
18 Singapore 27.10.2003 31.12.2004 
19 India 13.01.2004 11.11.2006 
 
Secretariat Report (WT/TPR/S/185) 
IV. TRADE POLICIES BY SECTOR 
(5) SERVICES (iv) Transport (b) Air transport 
(Question 4: page 74, paragraph 127) 
 
Japan understands that Gulf Air will be owned sole ly by Bahrain in November 2007 due to the fact 
that the Oman Government will drop its shareholding of Gulf Air. 
 Please indicate the prospect of Bahrain’s management of Gulf Air.  Answer:  Following Oman’s decision to withdraw from Gulf Ai r, the Government of Bahrain has taken over all 
aspects of the airline’s administration and operations. 
 
Gulf Air is vital contributor to Bahrain’s economy. The airline is, for example, responsible for a lion’s 
share of the aviation activity in Bahrain International Airport, it is also the gateway to Bahrain in its 
true sense as it reflects the rich hospitability ri ght at the point when passengers step on board . 
 
Bahrain’s leadership has on many occasions highli ghted the importance of Gulf Air to the Bahrain’s 
economy, reflecting the importance of the airline to national development. 
 
It is one of the oldest carriers in the region and also  one of the largest employers of nationals in the 
Kingdom of Bahrain. It contributes an estimated more than $1 billion annually to Bahrain’s gross 
domestic product (GDP). 
  
Gulf Air also recently introduced a totall y revamped flight schedule beginning 1
st July 2007. The new 
network as has many as 588 flights every week in the Middle East with more non-stop flights than any 
other airline. 
 
Founded in 1950, Gulf Air, now owned by the Kingdom  of Bahrain, is the only truly Pan Gulf carrier 
in the Middle East region. WT/TPR/M/185/Add.1 
Page 46  
 
 The regional, geographic and cultural values that th e airline has embraced over more than half a 
century are still central to defining its brand and service ethos.  
Today the airline’s network stretches from Europe to Asia and covers 40 cities in 26 countries. The 
fleet comprises 28 aircraft and has the distinct adv antage of possessing the strongest network across 
the Middle East. 
 
A new strategy to create a platform for sustained commercial operations has been put in place as part 
of a two phase turnaround programme announced in April 2007 by the airline’s new President and 
Chief Executive.  
 
(5) SERVICES (Question 5: page 62-68, paragraph 69-100)  
Japan notes that Bahrain has made full commitments of cross-border (mode 1and mode 2) services in 
all sub-sectors of the insurance sector, including  a sub-sector such as life insurance in which 
individual persons can be dealt with as a consumer.  
 
Japan would like Bahrain to explain how Bahrain can effectively protect consumers such as unsophisticated individuals in the sub-sector of life insurance, in accordance w ith the liberalization of 
cross border services. 
 
Answer: 
 
The commitments made to the WTO pertaining to cross-border (mode 1 and mode 2) were for 
offshore companies in all sub-sectors and for reins urance and retrocession only.  All other insurance 
services had to be through commercial presence in the form of Joint Stock companies.  Full 
commitments for the provision of cross-border in surance services (mode 1 and mode 2) to the 
residents of Bahrain were not made and are unbound. 
 
As such, the commitments made to the WTO do not  entail liberalization of cross border services in 
insurance.  
CANADA
 
 
Government Report WT/TPR/G/185 
 
Part III – Enhancing Productivity and Capacity, (2 ) Growth Sectors, (i) Tourism, paragraph 64, 
page 11. 
 
The Government Report states that "The Gove rnment envisions Bahrain becoming a high-quality 
leisure and business tourism destination for the out bound markets of the Middle East, Europe and 
Asia, and a process of redefining the tourism vi sion and roadmap and anchoring it with the key 
stakeholders started in June 2005".   1. Could Bahrain please explain what the key elements of this process are and what timelines are 
envisioned? 
 
Answer: 
 An international tourism consulting firm was cont racted to develop the tourism master plan for 
Bahrain in consultation with key stakeholders both from the relevant public and private sector  WT/TPR/M/185/Add.1 
 Page 47 
 
 
 entities.  The plan has been recently reviewed by the key stakeholders and is now under further 
consideration.  Secretariat Report WT/TPR/S/185 
 
Part II - Trade and Investment Regimes, (4) Trade Agreements, (ii) Regional agreements, paragraphs 21, 22, and 23, and (iii) Bila teral Agreements, paragraph 24, page 18. 
The Secretariat Report discusses the various regional and bilateral trade initiatives Bahrain is involved 
in: a free-trade area with the Gulf Cooperation C ouncil, the Greater Arab Free-Trade Area (GAFTA) 
Treaty and a free-trade area agreement (FTA) wi th the United States. Canada understands the 
importance of having strong ties with regional trade partners.  However, many WTO Members 
have made service sector commitments in their re gional and bilateral free trade agreements that go 
well beyond their existing GATS Schedules and, in many cases, beyond their GATS offers tabled 
during the Doha round.  
2. (a) Could Bahrain provide further detail with  respect to the relationship between the services 
commitments it has made in various regional/bilateral free trade agreements and its GATS 
commitments and offers?  
Answer: 
The Kingdom of Bahrain is following a policy of  progressive liberalization of its economy in all 
aspects, including in the services sectors. Services ar e of particular importan ce to Bahrain given the 
high percentage of the services contribution to GDP. 
 
In this respect Bahrain made its initial commitment in services at th e time of joining the GATT some 
14 years ago, at which time the commitment was made only in respect to Insurance services 
(offshore). Bahrain has made a new commitment in  the Financial Services sector under the WTO’s 
Protocol V for banking and other financial services (excluding insurance). Since that time Bahrain 
has been increasingly opening its market to fo reign competition, and has submitted new and revised 
offers in the latest round of trade negotiations in line with its development perspectives, for example, 
in tourism, telecommunications, construction and related services, in business services, air transport 
services, audiovisual services, education services and health related services.  As regards regional agreements, Bahr ain is committed to regional inte gration, as provided for under 
Article V of the GATS, under the GCC Economic Ag reement which has established a free trade area 
between the six member countries. Negotiations with the United States which led to the conclusion of 
an FTA were typically effected on the basis of a  WT O plus principle. All future negotiations on FTAs 
will be undertaken on a regional basis under the umbrella of the GCC. 
 (b) What policy considerations are relevant  to any gaps between Bahrain's services 
commitments in this regard? 
Answer: 
 
Bahrain is committed to the principle of an open market as an economic development objective. 
Nevertheless as a developing country Bahrain also recognises the need to enhance domestic capacity  
and ready certain aspects of its economy for global competition, and hence is gradually opening up  
the economy in line with its development objecti ves and perspectives, and has submitted an ambitious 
services offer at the DDA negotiations.   WT/TPR/M/185/Add.1 
Page 48  
 
 Part III - Trade Policies and Practices by Measu re, (1) Introduction, paragraph 1, page 22. 
 
The Secretariat Report notes that, as a member of the Gulf Cooperation Council (GCC) customs 
union, Bahrain has been applying the GCC common external tariff since 1 January 2003.  
3.      (a) Within the GCC common external tariff, do individual GCC member countries have the 
autonomy to levy lower applied rates and ad just these same rates at their discretion? 
  (b) If so, what procedure is deployed within the GCC to do this?  Answer to 3. a) and b):  No. The GCC common external tariff has to be followed by all the GCC members. 
 Part III - Trade Policies and Practices by Measu re, (2) Measures Directly Affecting Imports, 
(iv) Tariffs, other duties and taxes, paragraph 21, page 28.  
The Secretariat Report says that Bahrain's averag e bound tariff is 35.6% and the overall MFN applied 
tariff is 5.3%, a binding overhang that creates an element of uncertainty for traders.  It also notes that a 
low percentage of tariff lines in certain HS Chapte rs have been bound (below 50% of all lines in those 
Chapters), notably on chemicals, wood and wood ar ticles, mineral products, pulp and paper and hides 
and skins.  
 4. (a) Could Bahrain please indicate whether it has plans to bring down the average bound tariff 
rate in the near future?  
 (b) Additionally, does Bahrain intend to incr ease the number of bound tariff lines in the HS 
Chapters noted in the Secretariat Report?  
Answer to 4. a) & b): 
 Within the ongoing DDA market access negotiatio ns, there are several form ulas discussed for the 
reduction of the bound rates of the WTO member s with special consideration for developing and 
small-economy countries. Accordingly, Bahrain’s po sition will be positively defined in coordination 
and harmonisation within the GCC’s Customs Union. 
 
Part III - Trade Policies and Practices by Measu re, (2) Measures Directly Affecting Imports, 
(vii) Standards and other technical requirements, (c) Marking, labelling and packaging 
requirements, paragraph 45-48, pages 33-34. 
 
Canada understands that the Standa rdization Organization for the GCC (GSO) appears to be making 
progress on revised standards concerning: (i) the "E xpiration Periods of Food Products" [which will 
annul and replace the current GS 1023/2000 "Expira tion of food products--Par t 2" and GS 150/1993 
"Expiration periods for food products--Part 1"]; a nd (ii) "Labelling Requirements for Pre-packaged 
Products" [draft standard identified by the GSO as GSO4/FDS/OIML R 79:2006 and OIML R 79:1997].  The  foreword to this second draft  standard notes "GSO through the technical 
program committee (TC) No 4 Technical Committee of Metrology Standards has adopted International Standard No OIML R 79/1997 Labelling requirements for pre-packaged products  issued 
by the International Organization for Legal Metrology in its original language.  The draft standard has 
been prepared by (Kingdom of Bahrain
)."  
  WT/TPR/M/185/Add.1 
 Page 49 
 
 
 5. (a) Could Bahrain provide clarification on what  is being proposed for agreement in terms of 
the two GCC regulatory/standard initiatives, and the di fferences that are expected to arise from the 
current regulatory framework?   (b) Could Bahrain provide an indication of when these proposed new standards, now being 
considered within the GCC, are exp ected to be notified to the WTO? 
 
Answer to Question 5. a) & b):  At the GCC level, the following have been revised: 
GS 1023/2000 "Expiration of food products--Part 2" and  
GS 150/1993 "Expiration periods for food products--Part 1"]; and  GS 9/1995 "Labelling of pre-packaged foods . Full details are available at the GSO web site http://www.gso.org.sa
  
 
However, pursuant to Article 3a and Article 12 of Legislative Decree # 16 of 1985, as amended by 
Legislative Decree # 13 of 1992 GS standards beco me applicable in Bahrain only if adopted by the 
National Standards Committee and approved by a Mini sterial Order. Bahrain will take into account 
its international obligations before endorsing and adopting the aforementioned Gulf standards. 
 At the present time, Bahrain is controlling F ood products through national technical regulations, 
which is Codex Stan 1. 
 OIML R-79 as a technical regulation and according to clauses 1.3 & 1.4 
1, it is clear that OIML R-79 
can be used for general products (where there is no sp ecific national laws or regulations available).  
  (b) 
Any proposed change once endorsed at the national level  in Bahrain,  will be notified to the WTO in 
due course.  Part III - Trade Policies and Practices by Measure, (4) Measures Affecting Production and Trade, (iv) Intellectual property rights, (b) Patents, paragraph 85, page 43. 
 
Canada notes that according to the Secretariat Report "Technical inventions based on human necessities, performing operations, chemistry, phys ics, pharmaceutics, biotechnology, and mechanics 
are patentable provided they are new, involve an  inventive step, and are capable of industrial 
application."  
 
6. (a) Could Bahrain please clarify what is considered to be a technical invention? 
  (b) In light of the provisions of Article 27 of TRIPS, could Bahrain advise whether, by listing the areas where technical inventions are patent able, it is excluding from patentability technical 
inventions in areas not listed?  
 
                                                     
 
1 "1.3 Prepackaged products, unless subject to other specific laws or regulations, shall be labeled in 
accordance with this Recommendation before being offered for sale. 1.4 This Recommendation does not cover existing na tional regulations established for reasons of 
health, safety or tax, or for other purposes such as da te limit for sale or use, storage temperature, etc.; 
however, such labeling should be taken into account as appropriate. Declarations  of  ingredients on 
package labels or nutritional information on food pr oducts, whether compulsory or not, are also not 
covered by this Recommendation."
 
 WT/TPR/M/185/Add.1 
Page 50  
 
 Answer 6 a) & b): 
 Bahrain does not have the term "technical inventions" in the Patent & Utilities Models Law. Article 1 
of Law No. 1/2004 (as amended by Law No. 14/2006) on Patents and Utility Mode ls provides that  " A 
patent shall be granted, in accordance with the provis ions of this Law,  to any new invention , which 
involves an inventive step and industrially applicable, whether pertaining to new industrial products 
imported or locally produced , ne w industrial processes , or a new application of known industrial 
processes."  The only exclusions from patentability are those whic h do not satisfy the requirements of Article 1 and 
the following inventions which are listed under Article 3 : 
 Inventions, the prevention of the commercial exploitation within the Kingdom of Bahrain is necessary 
to protect the public order or morality, including to pr otect human, animal or plant life or health or to 
avoid serious prejudice to the environment.  
Animals. 
Diagnostic, therapeutic and surgic al methods necessary for the treatment of humans and animals, 
with the exception of products used in any of these methods . 
 
Part III - Trade Policies and Practices by Measure, (4) Measures Affecting Production and Trade, (iv) Intellectual property rights, paragraph 88, page 43. 
 According to the Secretariat Report "[t]he new pa tents regime also established the mechanism and 
conditions for the granting of compulsory licences."  
 7. Could Bahrain please provide  additional information regarding the compulsory licensing 
provisions under the new legislation? 
 
Answer:  The Article 24, 25, 26 and 27 of the Patent La w (decree No. 14 of 2006 amending certain provisions 
of Decree No.1 of 2004 with respect to Patent and Utility Models) provid es for the granting of 
compulsory licenses. The forgoing articles read as follows: 
 Article (24)
 
 The Minister responsible for industrial property may grant nonexclusive compulsory licenses for the 
exploitation of a patented invention, in any of the following cases:  
 A. National emergency , extreme urgency, or public  non-commercial interest , provided that 
the patent owner shall be notified thereof –if possible- after the grant of the license. 
 B. Failure to exploit the invention by the patent ow ner in a manner sufficient to satisfy the 
requirements of the local markets in fair prices – in comparison with current prices in other 
countries- within 3 years from the grant of the pat ent or 4 years from the  filing date of the patent 
application, whichever comes later.  Nevertheless, the Minister responsible for industr ial property may afford the patent holder a grace 
period not exceeding 2 years to exploit the patent in the prescribed manner,  where the failure to 
exploit the patent was due to reasons beyond hi s power; otherwise , the Minister may issue a 
compulsory license to any third party if the patent owner refused to license ,or offers it under unfair 
commercial conditions.     WT/TPR/M/185/Add.1 
 Page 51 
 
 
 C. Where the exploitation of a patent, involv ing significant technical advance with 
considerable industrial importance, inevitably infr inges another patent, the owner of the former 
patent shall be granted a compulsory license for th e exploitation of the latter patent. The licensed 
exploitation may not be assigned without the assignment of the former patent.  
The other patent holder shall –in return- have th e right to obtain a compulsory license for the 
exploitation of the former patent.   D. If the patent owner exercised his rights in a manner contrary to fair competition.   
 
Article (25)
 
 Where a compulsory license is to be issued, th e following shall be taken into account:  
 A. The request for the grant of the license shall–after the payment of the prescribed 
application fees - be considered on the merits of each case. 
  B. The license shall mainly seek to satis fy the needs of the local market. 
 C. The party requesting the grant of a com pulsory license must have the capacity to 
efficiently use the patented invention through an est ablishment located in the Kingdom, either if the 
license is issued for the manufacture of the patent products or the importation thereof. 
 D. The requesting party shall have made serious  attempts, during a reasonable period of 
time, to obtain a voluntary license from the patent owner against fair commercial conditions and compensation, to no avail. This condition shall not extend to the case provided for in item (A) of the 
foregoing Article. 
 E. The licensee shall exploit the pat ent according to the purpose for which it is granted, and 
abide by the scope, terms and period prescribed by the decision granting such a license.  
 F. If the compulsory license application pertains to semiconductor technology, it shall be 
granted only for public non-commercial purposes, or  to remedy the consequences of any unfair 
competition practices.   G. The assignee shall not assign th e use license except with the en terprise or the part related 
to the use of the patent, and subject to the appr oval of the competent Minister responsible for 
industrial property. 
 H. The patent owner shall be entitled to a fair  compensation fixed on the basis of the 
economic value of the license.   I. The assessment of such compensation sha ll take into considera tion the necessity to 
remedy the consequences of any unfair competition practices, if have occurred. 
 J. The conditions provided for in items (B) and (C) of this Article shall not extend to a 
license granted to remedy practices restricting fair competition. 
 
K. The Minister responsible for industrial property, on his own initiative or upon a request 
from any interested party, shall have the right to  amend the license terms if the conditions under 
which the license is granted are changed.   
 WT/TPR/M/185/Add.1 
Page 52  
 
 Article (26)
 
 The Administrative Authority responsible for industria l property shall inform the patent owner with a 
copy of the license application– except in the case prov ided for in Article 24(A) of this Law – and he 
shall be entitled to submit, to the Authority, a wr itten reply to the applica tion, according to the 
procedures and in the time limit prescribed by the Re gulations. In all cases, the Minister responsible 
for industrial property shall issue a decision to accept the application or to reject it, or to suspend the 
acceptance thereof under conditions he determines . The Administrative Authority responsible for 
industrial property shall in all cases notify the paten t owner and the license applicant of the decision 
issued with respect to the application within 30 days from the issue date thereof. Such a decision shall 
be recorded in the Patent Register, and publishe d in the manner prescribed by the Regulations. 
 Article (27)
 
 The Minister responsible for industrial property shall,  on his own initiative or upon a request from the 
patent owner, terminate the li cense in the following cases:  
 A. If the reasons which led to its grant cease to  exist and are unlikely to reoccur, in such a 
case sufficient protection shall be granted for the le gitimate interests of the licensee, in which case, 
the procedure prescribed by the Regulations shall apply.  
B. If the licensee fails to exploit the subject ma tter of the license within two years from the 
grant thereof.  C. If the licensee fails to satisfy any condition upon which the license is based, or fails to 
meet the obligations provided for in this Law and the Orders issued for the implementation thereof.  
 
Part III - Trade Policies and Practices by Measure, (4) Measures Affecting Production and Trade, (iv) Intellectual property rights, (h) Enforcement, paragraphs 97 and 99, page 45 and 46. 
The Secretariat Report states that "According to Article 41 of Law No.1/2004 on Patents and Utility 
Models, any person who commits an offence shall be penalized by imprisonment of not less than three 
months and not more than one year, and/or a fi ne of not less than BD 500 and not exceeding BD 
2,000." The Secretariat Report indicates that simila r provisions are available under Article 13 of Law 
No. 16/2006 on Geographical Indications. 
8. Could Bahrain please provide additional info rmation regarding what kind of infringement 
would qualify for this kind of enforcement and whet her there also civil remedies available to rights 
holders that would permit them to sue for in fringement and to obtain damages and injunctions? 
Answer: 
 According to Patent and Utility Model Law No. 14 of 2006 amending certain pr ovisions of Law No.1 
of 2004 with respect to Patent and Utility Models  the following Articles explains the enforcement 
parts in details:  
Article (40)
 
 (1)  In case of infringement or to prevent an immi nent infringement of any right prescribed by 
the provisions of this Law, the right holder s hall be entitled to obtain an order on the basis of a 
petition from the President of the Competent Court considering the merits of the case to adopt one or 
more appropriate precautionary measures: 
  WT/TPR/M/185/Add.1 
 Page 53 
 
 
 A. To draw up detailed description of the in fringing goods materials, implements, and 
machines used or might be used  in the infringement, and to preserve relevant evidence in regard to 
the infringement.  B. To order the seizure of the articles stated  in the foregoing paragraph, as well as the 
royalties of the alleged infringement. 
 C. To prevent the entry of the goods that involve the alleged infringement into the channels 
of commerce as well as the exportation thereof, including imported goods immediately after their 
customs release.  
 
D. To desist the infringement or  prevent the occurrence thereof. 
 (2)  The president of the court shall have the authority to require the petition applicant to 
provide any reasonably available evidence that the right  is likely infringed or that such infringement 
is imminent, and to require him to provide any  information necessary to  enable the competent 
authority executing the precautionary meas ures to identify the concerned goods. 
 2. The president of the court shall decide on the petition expeditiously within a period not 
exceeding 10 days of the filing date thereof, with th e exception of the special cases he considers. 
 
3. The president of the court, when necessary sha ll be authorized to issue the aforementioned 
decision, upon a request from the petition applicant and without the summons of the other party, in 
cases where any delay in the decision issuance is li kely to cause irreparable harm to the applicant, or 
if there is a risk of evidence being disappeared or d estroyed. In such case, th e other party shall be 
notified of the decision promptly; and, when necessary,  the notification may be immediately after the 
execution of the decision. 
 4. If the president of the court orders to adopt a precautionary procedure –without the 
summons of the other party- the defendant may appeal such an order to the competent court within 10 
days from the notification date. In such case, the court may confirm, modify or revoke the order. 
 
5. The president of the court shall have the authority to require the petition applicant to 
provide an appropriate security or equivalent assu rance sufficient to protect the defendant and to 
prevent abuse, and in a manner that shall not unreasonably deter recourse to the indicated 
precautionary procedure.  
6. The right holder shall be required to submit the merits of the case within twenty days from 
the issuance date of the precautionary order or fr om the notification date of the rejection of the 
appeal provided for in Paragraph (5) of this Article , as the case maybe. Oth erwise the order shall be 
revoked upon the request of the defendant.  7. For the purpose of this Article, the patent s hall be effective unless approved otherwise. 
 
Article 40bis
 
 
A. Any party who has suffered direct injury because of an infringement of any rights conferred 
by the provisions of this Law, shall be entitled to file a case with the Competent Court to order: 
 
1. The payment of damages adequate to compensate for the injury he has suffered because of 
the infringement  WT/TPR/M/185/Add.1 
Page 54  
 
 2. The payment of royalties gained by the infri nger which were not taken into count at the 
assessment of the damages.  
The Court shall determine the amount of damages it deems adequate to comp ensate for the injury 
pursuant to Articles 161 and 162(A) of the Civil Code, provided that the Court shall take into account 
the value of the goods or services –subject of the in fringement- according to experience or what the 
applicant determines with regard to the retail price or  any other legitimate criteria he requests to be 
applied.     
 
B. The Court shall be authorized to order the defe nded found to carry out infringement to inform 
the Court or the right holder of any person or entity involved in any aspect of the infringement and of 
the methods of production or the channels of distribution of such goods or services, including the 
determination of the identity of all persons in volved in the production and distribution of the 
infringing goods or services and of their channels of distribution.  Article (41)
 
 
Without prejudice to any more sever punishment stipulated in another law, a punishment of 
imprisonment for a period of no less than three months and no more than a year and a fine of no less than 500 Bahraini Dinars and no more than 2,000 Bahraini  Dinars, or by either punishment, shall be 
inflicted upon any person who unlawfully and knowingly: 
 
A. Manufactures, uses a method of manufactures, se lls, offers for sale or trade, imports, or 
possesses with the intention to trade products that involve infringement of the rights prescribed under 
the provisions of this Law.   
B. affixes on products, advertisements, marks, packagi ng implements or the like, indications 
that may lead to believe that such a person has b een granted a patent or a utility model certificate;  
 The Court may order the publication of the judgment in a daily gazette once or more at the expense of 
the convicted party.  
  In case of repetition, the penalty with its  minimum and maximum limits may be doubled, 
along with the closure of the enterprise or project, or the suspension of the activity –as the case may 
be- for a period of no less than 15 days and no more than 6 months, with the publication of the judgment in a daily gazette once or more at the expense of the convicted party.  
 
Article 41bis
 
 
Without prejudice to any more sever punishment stipulated in another law: 
 
A. A punishment of imprisonment for a period not exceeding a month or a fine of no more 
than 300  Bahraini Dinars, shall be inflicted upon any person who does not comply with an order 
issued by the Court in conformity with the provis ions provided for in paragraph B of Article 40bis of 
this Law. 
 
B. A punishment of a fine not exceeding 2,000 B ahraini Dinars shall be inflicted upon any 
proceeding party, judicial assistant, expert, or any other person who does not comply with an order 
issued by the Court with respect to the protection of secret information disclosed or circulated in the 
context of any legal proceeding.   WT/TPR/M/185/Add.1 
 Page 55 
 
 
 Part IV - Trade Policies by Sector, (5) Services,  (iii) Telecommunications and Postal Services, 
Paragraphs 102, 104 – 105, pages 68 - 69. 
The Secretariat notes that the Telecommunication Regulatory Authority (TRA) is managed by a 
Board of Directors appointed by Decree of the Council of Ministers, that the Government and 
government agencies own more than 56% of BATELCO (the former monopoly fixed telephony 
provider), and that the National Telecommunication Plan prepared by the Ministry of 
Transportation to be issued in the second half of  2007 has as a main objective to "create opportunities 
for BATELCO to adapt and grow by balancing the m echanism that ensures it co mpetes fairly with the 
stimulation of competition." The Reference Paper on basic telecommunications outlines the concept 
of impartiality of regulators with respect to market participants. 
9. (a) Could Bahrain please explain if the TRA is  an impartial regulator as described in the 
Reference Paper? 
 (b) If so, could Bahrain provide further detail on existing mechanisms to ensure impartiality? 
Answer: 
 
Notwithstanding that Bahrain is not a party to the Reference Paper, the Reference Paper requires:  
1. The regulatory body must be separate from , and not accountable to, any supplier of basic 
telecommunications services.  
2.  The decisions of and the procedures used by  regulators shall be impartial with respect to all 
market participants 
The Telecommunications Law ("the Law") establish es effective safeguards to ensure that TRA is 
separate from and not accountable to any basic te lecommunications services. Section 7 of the Law 
provides that no Board members can have a direct or indirect equity or financial interest in a 
licensee. Where a Board member has a personal interest , directly or indirectly, in any matter to be 
considered by the Board or any other financial int erest that may conflict with the requirement of his 
position as a Board member, the Board member is requi red to disclose such interest in writing to the 
Board. The Board member will not take part in th e consideration of the matter. In addition, Section 
21 of the Law effectively prohibits the General Di rector and TRA staff to have any direct or indirect 
financial interest in the telecommunication sector thr oughout the term of their tenure or employment 
at the TRA. Each of them is required to promp tly serve a notification of any existing or potential 
direct or indirect interest. Moreover, Section 22 of the Law prohibits employees to be employed by 
market players for a year after the t ermination of employment by TRA.  
The Law also provides for effective safeguards to ensure TRA’s independ ence, impartiality and 
operation at arms length from the Government. Acco rding to Section 2(b) of the Law, TRA was 
established as a financially and administratively i ndependent juridical entity. Additionally, Section 
4(a) subjects all Board Member appointments to due consideration being given to the necessity of the 
Authority’s independence. Section 4(d) also provides that "No Boar d member can be dismissed from 
the Board before the expiry of his term except by vi rtue of a Royal decree based on a proposal by the 
Council of Ministers.  Moreover, the section 12 of the Law clearly specifies that the General Director 
cannot be removed from the office before the ex piry of the term of his office unless specific 
circumstances, pre-defined in the Law, occur.  In these circumstances he/she could only be removed 
by a Royal Decree, based on a proposal by the C ouncil of Ministers issued on the recommendation of 
the Board.   WT/TPR/M/185/Add.1 
Page 56  
 
 According to the section 3 (f) of the Law all impor tant decisions of TRA are adopted only after due 
public consultation. TRA also adopts the pr actice where it publishes responses to the public 
consultation together with its views on them. 
TRA is in no way involved in managing of th e Government shareholding in BATELCO. These 
functions are performed by the independent organisa tion Mumtalakat Holding Co. B.S.C.(c), which is 
responsible for managing of most of the Gove rnment shareholdings from financial investors 
perspective only. Other shareholdings, related to  governmental organisations are managed by the 
General Organisation for Social Insurance and th e Pension Fund Commission. These organisations 
are in no way involved in the activities of TRA. 
Collectively, all these safeguards effectively ensure  TRA’s independence, with regards to structure, 
procedure and decisions, from different market players. 
 
Part IV - Trade Policies by Sector, (5) Services , (iii) Telecommunications and Postal Services, 
paragraph 106, page 69. 
The Secretariat Report notes that under the Telecommunications Law, the requirements to grant a 
licence include, "that substantially all the infrastruct ure and personnel associated with the provision of 
telecommunications services are located in Bahrain." This would appear to limit a foreign entity's ability to offer telecommunication services via mode 1.  
10. Could Bahrain please provide further info rmation on the reasons for this limitation? 
Answer: Bahrain is a geographically small market and conseque ntly there is a concern to ensure that no single 
external operator would dominate to the disadvant age of the  domestic operators and consumers. 
Please note that section 26 of the Telecommunicati ons law enables the TRA to waive this condition 
where there exists a substantial demand for a tel ecommunications service that cannot be provided on 
an efficient basis other than by means of infr astructure and personnel located outside the Kingdom, 
provided that such service will be to the direct be nefit of subscribers and users, as determined by the 
Authority on the basis of the obligations provided for in the license or otherwise   
Generally these conditions represent the intent of the Government to encourage investment in the 
national telecommunications sector through opening the telecommunications sector (Sec. 4 of the 
National Telecommunications Plan) as well as pr omoting benefit to national economy from opening 
and liberalizing the telecommunications market (Sec. 5 of the National Telecommunications Plan). As 
such cross-border services to the Kingdom of Bahrai n could be provided via agreements with the 
operators, licensed to operate in Bahrain, or by obtaining license themselves (subject to a commercial 
presence in Bahrain). 
 
Part IV - Trade Policies by Sector, (5) Serv ices, (v) Tourism, paragraph 139, page 76. 
 
The Secretariat Report states that the moratorium on new licenses for one-, two-, and three-star hotels 
still applies. 
 
11. (a) Could Bahrain please tell Canada when  it expects to lift this moratorium?  
 The Secretariat Report also states that licenses are granted for four- and five-star hotels if projects proposed offer new attractions not availabl e in hotels of similar categories.  
  WT/TPR/M/185/Add.1 
 Page 57 
 
 
 Answer: 
 
The Government is in the process of redefining its tourism strategy, and a major study has been 
conducted by  specialist tourism consultants to crea te a plan to enhance the tourism industry based on 
the perspective of achieving a higher value added industry. 
 
Accordingly new licenses for one, two and three star hot els will be reviewed within the context of the 
new tourism plan in due course.  Bahrain would emphasise that it is keen to ensure that its hotels, operations, facilities and quality of 
services are in keeping with its new tourism direc tion and provides a higher than expected customer 
experience. The hotel industry is an important supporting service that not only creates employment opportunities and contributes to GDP in its own righ t, but is also an import support mechanism for 
the other services sectors including financial services and the exhibition in dustry. It is for this reason 
that Bahrain regards the licensing process of hotels as  being a critical element in ensuring the quality 
of services.  
(b) Could Bahrain please cite examples of such "new" attractions?   
Answer 
 
The reference to "new" attractions is an attemp t to focus new applicants on enhancing diversity and 
ensuring a range of quality services, facilities and attr actions to the industry, and to generally orient 
hotels to create a more comprehensive package to attract more high spend tourism to the Kingdom. 
 New attractions may include a whole range and mix , including leisure facilities, theme infrastructure, 
beaches, feature restaurants, family entertainment. There is no one single element, or indeed any 
specific requirement, only a need to demonstr ate that any new hotel will provide a positive 
contribution to the hotel infrastructure in addition to merely adding more hotel rooms.  Part IV - Trade Policies by Sector, (5) Services , (v) Tourism, paragraph 141, pages 76-77 (with 
reference to Part II - Trade and Investment Re gimes, (5) Investment Framework, paragraph 27, 
page 19).  
According to the Secretariat Report, foreign inv estors, subject to the Commercial Companies Law 
(CCL), may own up to 100 percent of total equity . The revised CCL adopted in 2001 authorizes the 
Minister of Industry and Commerce, in agreement w ith relevant Ministers, to allow up to 100 percent 
foreign equity ownership in companies provided for by the law.  
 12. In the sectors where foreign investment is a llowed, could Bahrain please explain what criteria 
are taken into account in allowing up to 100 percent foreign equity ownership?  
 
Answer: 
 
Sectors which are not allowed 100% foreign ow nership are dictated by current economic 
considerations. As far as the approval of applicat ions for investment in sectors which are permitted 
100% foreign ownership is concerned, there are no crit eria, per se, other than conforming to the legal 
and regulatory requirements of  commercial registration. 
 
Bahrain does allow 100% foreign ownership in most economic sectors. Those few remaining 
activities which are currently restricted from 100 % foreign ownership are published on the "Negative 
List" which is derived from and is dependent on various Laws and regulations in force and is 
available at the Ministry of Industry & Commerce website at the following address:  WT/TPR/M/185/Add.1 
Page 58  
 
 http://www.commerce.gov.bh/Englis h/DomesticTrade/Negative+List/
. The current Negative List was 
recently updated in 2006, as part of the Business St art Up initiative, and is under continuous review. 
 Other Question: 
 Canada would like to thank Bahrain for its May 11, 2007 notification to the WTO SPS Committee 
(G/SPS/N/BHR/8 ) notifying WTO members of the "Inspection Guide for Imported Foods at GCC 
Entry-Points".  Canada supports the implementation of a G CC-wide standard for food inspections and 
expects that it will result in im proved consistency and transparency among the trade policy regimes of 
member countries. 
 13. (a) Canada notes that the 44 page "Inspection Guide for Imported Foods at GCC Entry-Points" in only available in Arabic. Is Bahrain or the GCC Secretariat considering preparing an 
English version of the document?   
 (b) If so, would Bahrain consider extending the comment period (due to expire July 10-11) to 
allow for a suitable period of time to consid er the English document once it is available?  
 
Answer to Q. 13:  
a) 
Yes. An unofficial English translation of the Guide is available.   b) Extension is approved until the end of August 2007. 
 
COLOMBIA
 
 
Colombia notes that:  Services account for almost 70% of Bahrain’s real GDP (Para. 66 Section IV. (5) WTO Secretariat 
Report) 
 Services employ over 50% of the workforce (Par a. 66 Section IV. (5) WTO Secretariat Report) 
 Foreign workers account for over 70% of Bahrain’ s labor force (Para. 22 Section I. (4) WTO 
Secretariat Report) 
 Certain services sectors that are fundamental for the provision of other services and the production and trade of goods are supplied by natural persons not connected to an organization.  The supply of 
such services requires entry of such natural persons or the cross-border provision of the service.   
 
The cited figures include such services.  Therefor e, Bahrain already admits the entry of a large 
number of service suppliers that are not connected to an organization.  In light of the aforesaid, Colombia would like that the Kingdom of Bahrain indicate the policy reasons that prevent it from making mode 1 and mode 4 comm itments related to contractual services suppliers 
and independent professionals in services sectors where service suppliers need not be connected to an 
organization, such as business services, constructi on and related engineering services, educational 
services, and health related services.   WT/TPR/M/185/Add.1 
 Page 59 
 
 
 Answer 
 Bahrain has already demonstrated it’s commitmen t to the Doha Development Agenda negotiations 
and to the enhancement of its commitments, particular ly in the services field, by being one of only a 
few countries which respected the initial deadlin e for submitting initial and revised offers, and has 
offered ambitious commitments, including in term s of mode 1 and mode 4 modes of supply in 
contractual services suppliers and installers and main tainers as well as intra-corporate transferees. 
Bahrain will continue to pursue a policy of elim inating remaining barriers progressively and in line 
with its economic development perspectives.    
 
AUSTRALIA
 
 
II. TRADE AND INVESTMENT REGIMES 
(4) TRADE AGREEMENTS  (i) WTO 
 1. We note that Bahrain has submitted notifi cations to the Committee on Agriculture for 
domestic support (calendar years 1995 and 1997) and export subsidies (calendar year 1996) and has 
provided a response to a survey on state trading enterprises in 2001.  We would appreciate advice as to when Bahrain will submit updated notifications for domestic support, export subsidies and STEs? 
 Answer:  
For agriculture domestic support, Bahrain has s ubmitted the relevant notification to the WTO 
during July  2007.  
Regarding other support measures as well as S TEs, Bahrain will be submitting an  updated 
notification in due course. 
 
(ii) Regional Agreements  
 
(a) Gulf Cooperation Council 
 
2. The Secretariat report notes (WT/TPR/S/185, page 18, paragraph 21) that GCC states are in the process of setting up a customs union and some asp ects have been implemented.  However, the 
report also notes that practical details on certain tr ade issues have yet to be addressed, including fully 
harmonising the list of products subject to rates hi gher than 5%, standards and technical regulations. 
 
• We would appreciate further information on the progress on implementing the customs 
union, particularly harmonising tariffs at rat es higher than 5% and standards and technical 
regulations. 
 
Answer: 
 
The GCC Customs Union came into force as of 1
st January 2003 under the concept that the 
Customs Union is the territory wherein customs duties and trade restrictions among the constituents States are abolished, and where common customs duties and external trade regulations are implemented.  The Customs duty is collected at the first GCC entry point  and 
the products can then be moved from one  GCC country to another with the required 
documentation without again paying Customs duty. 
 WT/TPR/M/185/Add.1 
Page 60  
 
 As regards harmonising ta riffs at rates higher than 5% and standards and technical 
regulations,  the variations are being studied with a view to achieving harmonisation before 
the end of  2007. 
 
III TRADE POLICIES AND PRACTICES BY MEASURE  
(2) MEASURES DIRECTLY AFFECTING IMPORTS 
(i) Registration and documentation  
 
3. The Secretariat report (page 22, paragraph 6), it notes that commercial invoices must be 
certified by a Chamber of Commerce in the country of  origin, and stamped by the relevant Consulate 
of Bahrain or any Arab Embassy in the country of origin, before the goods may be exported to 
Bahrain.  
• Does Bahrain have any plans to cha nge these requirements in the future? 
 
Answer: 
 
The documents and certificates are required to be a ttested in order to be confident as to the 
validity of these documents, and to ensure that they are issued by governmental agencies in 
the exporting country.  This should be done by a Bahrain Embassy or, in the event that  there 
is no Bahrain Embassy in the ex porting country, then it should be attested by an Arab 
Embassy as a matter of facilitation.  Bahrai n Customs are ready to address any specific 
concerns in this regard and review this requireme nt in the future in line with its continued 
review of procedures and formalities aimed at simplification and facilitation.  
 
• Are GCC members proposing to harmonise documentation requirements? 
 
Answer: 
 
Yes, the harmonisation of the documentation requirements will be a part of the overall review process for further unification of cu stoms procedures within the GCC. 
 
(v) Import prohibitions, restrictions and licensing 
 
4. The Secretariat report (page 28, paragra ph 27) notes that under the GCC Common Customs 
Law, each GCC state determines its own list of prohibited or restricted products, although members 
are developing a common list.  
• Could Bahrain advise on the development of a common GCC list of prohibited or 
restricted products, and when it is expect ed to be completed and implemented? 
 
Answer: 
 
The development of a common GCC list of pr ohibited and restricted goods is already in 
progress within the GCC and it is expected to be finalised before the end of 2007.  
 (vii) Standards and other technical requirements  
 
5. The Secretariat report notes (page 30, paragra ph 33) that Bahrain is harmonising its technical 
regulations and standards at the GCC level.  The re port notes that GCC-wide standards are formulated 
by the Gulf Standards Organization (GSO).  WT/TPR/M/185/Add.1 
 Page 61 
 
 
 • Could Bahrain provide more information on the roles of the Bahrain Standards and 
Metrology Directorate (BSMD) and the Gulf Standards Organisation (GS0) work in developing and implementing natio nal and GCC-wide standards. 
 
Answer: 
Standards technical committees conduct the st andardisation work at Bahrain Standards and 
Metrology Directorate (BSMD). These committe es are made up of  representatives of the 
industrial sectors, public authorities,  government agencies, and consumers. 
The Standardisation work in Bahrain is closely linked with that of the Gulf Standardization 
Organization (GSO). Generally, no Bahraini stan dard is developed if there is a similar Gulf 
standard in existence, and in most cases, the Bahraini standards are prepared through a 
direct adoption of Gulf Standards  or International standards. 
BSMD participates in the GSO standards devel opment activities by submitting proposals of 
draft standards to the technical work program of GSO . BSMD also participates in studying 
the draft Gulf standards through its local tec hnical committees. Following approval of Gulf 
standards by GSO Board of Directors, the National Committee for Standards (NCSM) 
approves these Gulf standards for adoption by the competent Minister as national Bahraini 
standards . 
 
(3) MEASURES DIRECTLY AFFECTING EXPORTS 
(iii)  Export Prohibition and Restrictions 
 
6. Australia notes Bahrain’s listing of certain e xport prohibitions of agricultural products set out 
in Tables III.7 and III.8 of the Secretariat report ( pp. 36-37).  Australia would be interested in 
Bahrain’s rationale behind these restrictions. 
 
Answer:  
Restrictions relate to agricultu ral products which are either subsidized by the Government 
(e.g. flour) or those  which are required for protection of Bahrain's environment (e.g. palm 
tree offshoots).  
 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(v) Intellectual Property 
 
7. We would be grateful for information on Bahr ain's laws to implement TRIPS Article 54, in 
particular, on time frames required for notification.   
 
Answer:  
Bahrain’s Laws do provide for the implemen tation TRIPS Article 54 on the time frames 
required for notifications. 
 
Paragraphs (2) and (5a) of Article 62 of the Copyright and Neighbouring rights Law provides 
that: 
"(2) A written decision in respect of the applicatio n shall be notified to the applicant by the 
competent authority of customs clearance w ithin seven days from the date of submitting the 
application. Where the application is approved, it shall be valid for a period of one year from WT/TPR/M/185/Add.1 
Page 62  
 
 the date of application or for th e remainder of the term of protection for the goods in respect 
of which a suspension is required, unless the applicant requests a shorter period. 
 (5) Where the competent authority of customs cl earance decides , in respect of an application 
made under the provision of this article, to st op customs clearance for goods arriving at a 
customs area under its jurisdiction, it shall: 
a. promptly notify the importer of goods and the right holder of the decision to stop customs clearance. 
 
Law No. (11) of 2006 in respect to Trademarks in Chapter IX article (43) contains identical 
provisions. 
 
8. We note that Bahrain is not yet a party to the International Union for the Protection of New 
Varieties of Plants (UPOV).  How does Bahrain provi de protection for plant varieties (Art 27.3 (b) of 
the TRIPS Agreement)?   
 
Answer: 
 
Bahrain has ratified the International Convention for the Protection of New Varieties of Plants and its accession to this Convention w ill be made once the law of the New Plants 
Varieties is issued, which is now under the legislative process. Nevertheless, protection for 
plant varieties is also available under the Patent Law. 
 
9. Noting that Bahrain is a signatory to th e Berne Convention, we seek information on how 
Bahrain's copyright registration systems accord w ith their commitments under the Berne Convention, 
particularly, Article 5.2.   
 
Answer: 
 
Article (2) of  the Copyright and Neighbouri ng Rights Law No. (22) of 2006, provides:  
" (2) works of literature, arts and science sha ll enjoy protection under this law as soon as 
they are created whatever their value, type or purpose of their production or mode of 
expression without a need for compliance with any formal procedure." 
  
 
10. With respect to copyright, is the registration of the copyright work or other subject matter a 
condition preceding the recognition of subsistence of copyright in the work or other subject matter?  
Does the registration affect evidential presumptions as to subsistence or ownership of copyright in 
civil and/or criminal copyright proceedings? 
 
Answer:  
Registration of  copyright work is not a condition precedent and is not required for the 
recognition of subsistence of copyright in  the work or other subject matter.  
 
11. We understand that the Law No. 22/2006 on Copyright and Neighbouring Rights enacted by Bahrain in June 2006 introduced a number of cr iminal penalties for copyright infringement.   
  WT/TPR/M/185/Add.1 
 Page 63 
 
 
 Question: 
 
• Have any criminal proceedings been comme nced under these new provisions to date?  If 
so, have any criminal penalties been imposed as a result of such action?  (Please provide 
relevant details). 
 Answer:  
Since Bahrain enacted Law No. (22) of 2006 on  Copyright and Neighbouring Rights, forty-six 
(46) infringement cases have been prosecuted by the Public Prosector; twelve out of this number so far have been  judged and criminal penalties have been imposed. 
 
12. With respect to digital copyright works, how does Bahrain provide for protection of  protection measures? 
 
Answer: 
 
Articles 45, 64 and 65 of the Copyright and Neighbouring Rights Law, which are in line with commitment under the FTA with the United States of America as well as with  WIPO Copyright Treaty and WIPO Performances & P honograms Treaty, provides for the protection 
of effective technological measures and provides for civil and criminal sanctions against the 
circumvention of  such measures. 
 
13. Does Bahrain’s patent law exclude from patent ability computer software related inventions, 
business methods or any subject matter listed in Article 27 of TRIPS?  
 
Answer to Question 13 
 
Pursuant to Article (3) of Law No. 14 of 2006 , computer software related inventions, business 
methods are not excluded from patentability. However, the following are excluded from 
patentability: 
1. Inventions, the prevention of the commercia l exploitation within the Kingdom of 
Bahrain is necessary to protect the public order or morality, including to protect 
human, animal or plant life or health or to avoid serious prejudice to the environment.  
2. Animals. 
3. Diagnostic, therapeutic and surgical methods  necessary for the treatment of humans 
and animals, with the exception of pr oducts used in any of these methods . 
 
14. We note that Bahrain is a signatory to the G CC Patent Law.  What differences, if any, are 
there between the GCC patent law and Bahrain’s patent law?    
 
Answer: 
 
The table bellow shows the differences between th e GCC’s Patent Law and Bahrain’s Patent Law: WT/TPR/M/185/Add.1 
Page 64  
 
  
15. Does Bahrain’s trademark law allow for the registration of new kinds of signs, including 
shape, colour, sound or scent and are there any requ irements that marks be visually perceptible?  
 
Answer: 
 
Yes. Under Law No (11) of 2006 with respect to Trademarks, Bahrain allows the registration of different kinds of new Trademarks such as signs, sounds and scents. Article (2) of the 
mentioned law describes those  types of Tr ademarks together with others as follows: "A 
Trademark shall mean everything that takes a di stinctive form such as names, words, 
signatures, characters, codes, numbers, signposts , seals, drawings, sounds, scents, pictures, 
inscriptions, packaging, figurative elements, figures,  colours, combinations of colours, or any 
combination  thereof or any other sign or a group of signs if used or intended to be used in 
distinguishing goods or services of an estab lishment from goods or services of another 
establishment , or to indicate the performance of certain services, or to distinguish goods or 
services as regards their source,  ingredients, method of manuf acture, quality, identity, or any 
other characteristics."  Subject GCC’s Patent Law Bahrain’s Patent Law 
1. Islamic Sharia mentioned  not  mentioned 
2. Excluded from patentability: Discoveries, Scientific theories, 
mathematical methods and computer 
programs. 
Schemes, rules and methods for doing business performing purely mental 
acts, playing games. 
Plant varieties and biological processes for the production of plants 
or animals Inventions to protect the public order or 
morality, including to protect human, 
animal or plant life or health or to avoid 
serious prejudice to the environment.  
Animals. 
Diagnostic, therapeutic and surgical 
methods necessary for the treatment of humans and animals. 
3. Definitely not  excluding from 
patentability:  
   nothing similar 
 (interfered by FTA) 
any use or method of use of products 
used in certain medical cases. 
4. Objection Objections possible within 3 months 
period starting with the  publication of the patent (interfered by FTA) 
nothing similar 
5. Patents not effective Scientific resea rch is free  (interfered by FTA) 
non-industrial or non-commercial purposes are free 
6. Annual fees Annual fees have to be paid for 
applications and patents Annual fees have to be paid only for 
patents  
7. Licensing The licensing contract to exploit or 
dispose of the patent shall be subject 
to control by the Patent Office No control by the office 
8. Grace period to exploit the 
patent 3 years 2 years 
9. Challenged decisions 3 months 
 
from the notification date thereof 30 days  
 
from the notification date thereof 
10. Patent Court Grievance Committee  
(12 members) Minister  
11.  
12. Compensation for unjustified 
delay  
Nothing similar (interfered by  FTA) 
upon request from right holder 
13. Priority period           12 months    6 months  
(will be changed to 12 months) 
14. Exhibition protection no geogra phic limitation if officially 
recognized (interfered by legal affairs)       
     only in Bahrain 
15. Periods of proceeding  
        Nothing similar Amendments within 30 days after filing 
date; Decision within 60 days after filing  
16. Cancellation of registered patent  
Grievance Committee Administrative authority cancels the 
registration because of deceive, counterfeit or unfair act 
17. Utility Models            Not available                available 
18. Filing  PCT applications            No t possible                possible  WT/TPR/M/185/Add.1 
 Page 65 
 
 
 In addition, there are no such requirements for marks to be vi sually perceptible 
 
16. We note Bahrain’s recent accession to the Trademark Law Treaty.  Does Bahrain intend on acceding to the Singapore Treaty on the Law of Trademarks (2006)?  Answer:  
Bahrain is currently considering its accession to the Singapore Treaty on the Law of 
Trademarks (2006). 
 
IV. TRADE POLICIES BY SECTOR (5) SERVICES 
 
17. In the context of Bahrain’s Trade Policy Review report which notes (WT/TPT/G/185, page 4, 
paragraph 2) that Bahrain "now fully embra ces an open market philosophy as a means of 
underpinning future economic development….", when and how does Bahrain intend to adopt a 
competition policy which, as reported by the WTO Secretariat, "could allow for better resource 
allocation and increase the predicta bility of its trade regime"? 
 
Answer: 
 
Bahrain has recently finalised a comprehen sive draft Competition Law based on best 
international practice,  and consultations in this regard with the World Bank have elicited 
very positive comments on this draft. The draft will be referred to the Parliament once the 
consultation process is completed. 
 18. Given that the services sector is a key co mponent in Bahrain’s overall policy of economic 
diversification, and transparency is a key factor  for investors when considering new markets, is 
Bahrain able to make available English language copies of the following legislation and regulations: 
 
• its laws and regulations governing the establishment and operation of commercial 
business enterprises; and 
• its law and regulations governing foreign investment in Bahrain? 
 
Answer: 
 
Yes. Most laws and regulations are already available in English at 
http://www.commerce.gov.bh/Eng lish/DomesticTrade/Laws.htm
 , all regulations are 
contained within the investors guide  available at the following link: 
http://www.commerce.gov.bh/NR/rdonlyres/7FCD1FE3-63B5-48AD-8C8D-
05607F23CD93/0/InvestorsGuide.pdf . Laws not currently posted in English will be made 
available on the website shortly. In addition so ft copies can be made available by contacting 
the Ministry of Industry & Commerce. 
 19. Noting the observation by the WTO Secretaria t (WT/TPR/S/185, page x, paragraph 18) that 
"Bahrain needs to bring some elements of its trade re gime more up to date a nd into greater conformity 
with WTO provisions", could Bahrain outline what step s it considers that this might involve in the 
services sector?  WT/TPR/M/185/Add.1 
Page 66  
 
 Answer : 
 
Bahrain already has a liberal trade regime,  and this has been acknowledged by the 
Kingdom’s high standing the freest Arab economy by  the Heritage Foundation. Nevertheless, 
the Bahrain Government recognises the importance of  inward investment within its economic 
development strategy, and hence, has embarked on reforms to the commercial infrastructure, 
including a new Commercial Company Law, whic h is now under the legislative process. 
Other commercial laws including the Comme rcial Law, the Bankruptcy and Composition 
Law, Competition Law, and Consumer Pr otection Law  are also in process. 
 
The few remaining services which are not comple tely open to foreign investors are defined in 
a negative list, which remains under continuous review with the responsible authorities inline 
with Bahrain’s economic development.  Bahrain is also fully engaged in the DDA negotia tions and in fact, as stated in the Secretariat 
Report, in services Bahrain was one of the few members that respected the initial deadline for 
submitting the initial and revised offers, which is a clear demonstration of Bahrain’s 
commitment to further open its services sectors in line with its development perspectives and 
WTO obligations. 
 
INDIA
 
 
1.      Para 23 of Bahrain’s Report, mentions that  the country is keen to enable the development of a 
knowledge-based economy.  We request  Bahrain to provide more details of its plans, timeframes, 
financing of this important project.  Answer: 
 
The development of a knowledge based econom y is an holistic objective which involves the 
creation of synergy between different sectors,  both services and industrial towards achieving 
an economy which is joined-up for hi gher value-added production and services.  
 
The foundation of the overall plan is the recogn ition that economies are increasingly based 
on knowledge and information, which have beco me the drivers of productivity and economic 
growth, which then places emphasis on  the role of information, technol ogy and education in 
economic performance.    
In particular skill sets need to be enhanced , and the transfer of technology becomes an 
increasing more important component which then  puts focus on the attraction of inward 
investment and the creation of an enabling environment.  Consequently the drive towards a knowledge  based economy, which includes education 
reforms, labour reform, a new industrial policy, the creation of a science and technology 
infrastructure joined up with universities and colleges and empowered through IPR, is an 
overall objective which has numerous independent  yet interconnected parts, all of which 
have different time frames, but are part of an overall plan which has a number of periodic objectives within a 10-15 year strategy.  
 
2.      We request Bahrain to provide more detailed information on the new industrial policy the 
country has adopted, Para 29 of its report refers. 
  WT/TPR/M/185/Add.1 
 Page 67 
 
 
 Answer: 
 
Bahrain’s new industrial policy is focused on the developed of SMEs, moving away from low 
cost production to higher value added through non- price factors, such as design, quality and 
reliability, and enabling this shift through the ap plication of information, communication  
technology, and scientific and technological devel opment, and by  creating cluster linkages. 
 Our challenge is to achieve environmenta lly sustainable industrialization, become  
increasingly more competitive and achieve grat er market access in global markets.  
 
In order to achieve this our new industrial po licy aims at achieving higher value added links 
in existing value chains, and new higher valu e chains through a knowledge intensive SME 
sector.  The industrial policy seeks to  move up the competitiven ess ladder through knowledge 
intensive new industries, obtaining access to  cutting-edge technol ogy, making continuous 
improvements in productivity and product and pr ocess innovations, and to do this by 
developing a multi skilled base of human resources.  We will facilitate new enterp rises, nurture and sustain existing SMEs, facilitate export led 
growth, and for this purpose the plan adopt s a focused sectoral approach targeted at 
upgrading identified sectors in terms of product design, technology, quality and productivity, 
packaging and links to global markets.   The plan also does not neglect critical support areas, such as improving access to institutional credit, technology access, productiv ity improvement initiatives, gaining market 
access, both regionally and globally an d increasing the penetration of ICT. 
 There are numerous initiatives, within the overa ll plan, dealing with each element, and a 
number of sectors have been identified as having a good potential for development. 
 
3.      We request Bahrain to provide informati on as to when various science & industrial parks will be 
established as mentioned in Para 32 of its report. 
 
Answer:  
The Government of Bahrain through the Minist ry of Industry and Commerce is developing 
focused industrial areas for further privat e sector development. The Hidd Industrial Area, 
already completed has the following features :  
• Total area upon completion 640 Hectares.  
• Phase I comprising 160 Hectares available for lease. 
• All required and related industrial support services available. 
• Signed a contract with International Devel opment Ireland to assist in managing and 
marketing the park to international standards. 
• Close proximity to Bahrain International Airport with road links to King Fahad 
Causeway, and minutes drive to  major business centres. 
 
As regards the various science & other industr ial parks, these are currently at the planning 
stage but will essentially be private sector  led developments supported, from an 
infrastructure perspective, by th e Government, and such project s, including the proposed $1 
billion Science & Technology Park,  are curren tly under consideration with various parties. WT/TPR/M/185/Add.1 
Page 68  
 
  
It is hoped that the new Hidd Industrial A rea and the proposed Science and Technology 
Park, will have a catalytic effect in en couraging new business start-ups and foreign 
investment.  
 4.      On Competition Law, India would appreci ate if Bahrain could inform as to timeline for 
finalization and implementation of  this proposed legislation. 
 
Answer: 
 
A draft Competition Law has recently been developed and has received extremely positive 
comments from the World Bank as part of the consultation process. The draft will be 
submitted to Parliament once the consultati on and review process has been finalised. 
 
5.      Para 51 of Bahrain’s report mentions of  equipping the national workforce to benefit from labour 
reforms.  Does Bahrain also envisage labour re forms for recruitment, employment terms and 
conditions of dispute settlement imp acting on non-national workforce. 
 
Answer: 
 
Yes. The Labour Reforms are far reaching in scope and aim at making the Bahraini labour 
force more competitive in terms of both quality a nd cost as compared to foreign labour. 
 The reforms have a dual strategy approach of improving the quality of domestic labour and 
freeing up the access of firms to foreign labour, at the same time removing restrictions on the free movement of labour be tween employers, as well as prov iding other rights to labour, 
both local and foreign. 
 In the context of labour flexibility, labour  reforms center around permitting the free 
movement of labour between employers, which is seen as being an important element in 
basic labour rights. This flexibility then put s greater pressure on ensuring that Bahrainis 
remain competitive in the labour market as com pared with their foreign counterparts, and 
the labour reforms has its basis in dealing w ith this competitiveness issue by concentrating 
on removing the skills gap of Bahrainis and en hancing their attractiveness to employers. 
In addition, labour unions, which cover Bahrai ni and foreign labours in both the public and 
private sectors are active in promoting labour flexibility and basic labour rights. 
The Government of Bahrain is always keen on regularly reviewing its regulations and laws 
to serve the interests of those effected by it in  the best way, and among those regulations are 
issues related to occupational health and safety and human rights, and of course basic 
labour rights which are always a priority ; and the Mid-day outdoor work ban decree - 
(issued by the Cabinet on June 24, 2007) - which bans the outdoor work from noon to 4pm 
in the months of July and August is a good example for that.  
 6.      The parts of Para 10 of the Government report states that Bahrain is welcoming and tolerant of 
all nationalities and faiths and a natio nal which upholds the rule of la w. It is reported that in the 
current form the labour system give considerable  advantage to the employer over the employee and 
consequently lead to abuse. It is also reported that the present system affects not only the work force 
at semi-skill level but also at  higher levels such  as  accountants who in some cases are not permitted 
to proceed on leave even in emergencies and are for ced to continue even  after resignation or expiry 
of work contract  by withholding passports or re fusal to give ‘exit clearance’.  While we appreciate 
the relative openness and tolerance practised by th e Bahraini government, we request Bahrain to  WT/TPR/M/185/Add.1 
 Page 69 
 
 
 inform how and by when Bahrain proposes to re form the present system of sponsorship and 
implement other labour reforms. 
 
Answer: 
 
Bahrain is a tolerant and ope n economy, and gains its legitimacy in international markets 
by the quality of its legal and regulatory infras tructure, and by respect to the rule of law. 
 Nevertheless there are always those that will seek to misuse any system for their own 
advantage. Bahrain is aware of some reported cases , and it is for this very reason that 
labour and other regulatory reforms are taki ng place and are continuously reviewed. It 
should be noted that in Bahrain the withholdi ng of passports from the rightful owner is 
illegal, and recourse to the Court system is always available.  The Bahrain Court system, the existence of l abour unions and the role of regulators ensure 
that abuses are minimized, nevertheless within the context of overall economic reforms, and 
in particular the labour reforms, all asp ects of the current system and procedures which 
effects both Bahraini and non-Bahraini work fo rce is under review with a view to removing 
all those impediments which detract from B ahrain’s objective of achieving a world-class 
knowledge based, fair and open economy. 
 7.      Para 87 of its report states that Bahrai n is keen to liberalise health services.  We would 
appreciate if Bahrain could give details of th is and if this sector is open to 100% FDI. 
 
Answer: 
 
This  sector is largely open to 100% FDI, and numerous private hosp itals are already in 
existence in Bahrain. Those aspects of hea lth services which are not currently available on a 
100% foreign owned basis are under review in the context of Bahrain’s overall development plan. 
 
8.      We would appreciate to receive information as to how Bahrain proposes to enhance its 
protecting Intellectual Property and impr oving implementation of IPR regime. 
 
Answer: 
 
Bahrain has recently enacted several new laws in this area, which include, Patents, 
Trademarks, Copyright & Neighboring Rights,  Trade Secrets, Topographic Designs of 
Integrated Circuits,  Industrial Design, Ge ographical Indications, and Manufacturing of 
Optical Discs as well as becoming a party to numerous international agreements and treaties. 
Bahrain considers that a solid IPR infrastructu re is a vital component to attracting both FDI 
and in fostering domestic innovation. 
 9.      While Para 42 of Bahrain’s report states th at monopolies and cartels are not considered to be in 
the public interest, on the other hand the Secretaria t report points out that mining and quarrying sector 
basically petroleum and natural gas, is dominat ed by State owned enterprises notably BAPCO, 
BANAGAS and ALBA, Gulf Air.  Does Bahrain ha ve plans to reduce the scope of these monopolies 
by opening up these sectors to private domestic and foreign investment and any time frame 
envisaged? 
 WT/TPR/M/185/Add.1 
Page 70  
 
 Answer (Suggested by MOIC): 
 
Bahrain’s Government report, Para 42 reads as follows : "Whilst monopolies and cartels-not cons idered to be in the public interest-
 are not permitted 
under the consumer law…" 
 
As regards plans to open up certain sect ors,  Bahrain has adopted an ambitious 
privatisation/divestiture progr am, and the Government has created a holding company, 
Mumtalakat to hold the government shares and with a new focus on commercialization, 
privatisation and divestiture. 
 
The divestiture of those companies which are cu rrently owned or majority owned by the 
Government through Mumtalakat will be achi eved over time on the basis of commercial 
decisions, and for that reason there is no specific time line at the present time, only an overall objective to empower the private sector  through divestiture and at the same time 
achieve a down-sizing of Government. 
 
In so far as BAPCO & BANAGAS are concerned , the Government of Bahrain is currently 
restructuring its oil and gas sector as a whol e, including the establishment of a holding 
company that manages the Government of Bahr ain’s interests in the oil and gas sector 
whether inside or outside Bahrain.   WT/TPR/M/185/Add.1 
 Page 71 
 
 
 Trade Policy Review of Bahrain 
20th July 2007 
Response of Bahrain to Members 1st day interventions 
  
Mr. Chairman,  
 I would first like to thank you for managing the first days’ proceedings , the Discussant Ambassador 
Ichiro Fujisaki of Japan, for his ex cellent Arabic and for his incisi ve and well thought summarization 
of  Bahrain’s economic development, as well for setting the scene for the discussions by highlighting 
key aspects of the Secretariat and Government Report which I believe reflected very well the interests 
and observations of other participating members.  We also very much appreciated the intervention of WTO members both for their supporting and positive statements, and we welcomed, as in fact we always do, comments on areas of our economic 
and trade policies that either require additional e xplanation, or where members believed that further 
progress is desirable.  Mr. Chairman you have provided a brief of the th emes under which our responses can be directed, and 
it is our intention to observe such a structured r esponse. However, in the in terests of transparency, 
which of course is the main purpose of the Trade Po licy Review Process, I propose to begin this final 
session today, by going first to those specific questio ns which were raised by participating members 
in their interventions, and then to complete my response drawing on these and the previous written 
questions, in order to summarize the main issues under the themes of Economic Environment, Trade 
Policies and Sectoral Policies.  
As I have already mentioned our Discussant was very perceptive in his summarization of the main 
issues which are of particular interest to members, as a number of statements from members did identify the same issues of greater market access and removing impediments or restrictions to FDI, Intellectual Property Rights, Competition Legislation,  Privatisation,  and G overnment Procurement. 
 In terms of market access Mr. Chairman, I would like to reiterate that Bahrain is solidly committed to 
the opening up of its markets and to the  DDA  negotiations, and in our response to the written 
questions from our Canadian, Columbian and Euro pean Communities colleagues on this and related 
subjects, we have explained that Bahrain continu es to follow a policy of progressive liberalization in 
line with its economic development, and this applie s to all sectors, including services, and we believe 
that our new and revised offers, in areas such as tourism, telecommunications, construction and 
related services, business services, air transport services, audiovisual services, education and health 
related services, is a clear demonstration that wh at I am saying is reality, not simply words.  
 Bahrain has already demonstrated it’s commitment  to the Doha Agenda negotiations and to the 
enhancement of its commitments, particularly in the services field, by being one of only a few 
members which respected the initial deadline for s ubmitting initial and revised offers, and has offered 
ambitious commitments, including in terms of mode  1 and mode 4 modes of supply in contractual 
services suppliers and installers and maintainers as well as intra-corporate transferees.   
Bahrain has adopted the principle of open-market s as a development philosophy, and believes that 
sustainable development is based on sound economi c policies, an open, transparent and efficient 
public administration, and that the private sector is the economic growth engine.  
         As a country with little in the way of resource endowment, and w ith a growing population, 
international trade and inward investment is seen as providing a means of supporting economic WT/TPR/M/185/Add.1 
Page 72  
 
 diversification, providing the resources and inv estments required for sustainable development, 
through technology transfer, cross fertiliza tion, and enhancing employment opportunities. 
In Bahrain we do not talk about foreign companies, we simply do not have any foreign companies in 
Bahrain, in our language they are all Bahraini comp anies no matter the nationality of the shareholders. 
We believe that the ability to attract and retain fo reign investments is important to job growth, and a 
concerted effort has been  initiated to create an investment environment which is more conducive to 
business. A number of members have recalled that the Bahrain Investment Centre, our One-Stop-
Shop, is an example of the measures which have been taken since our 1
st Trade Policy Review not 
simply to open our market by removing barriers, but to actively pursue a policy of encouraging FDI. 
Our new Commercial Companies Law, will we think bring a new dimension to the attractiveness of 
Bahrain by making the corporate legal infrastructure more transparent, flexible and predictable. 
The Bahrain Government has used its limited oil resources to develop a modern infrastructure and 
nurture an educated population to support the privat e sector as the engine of growth, and has opened 
up its market to competition as a means of enhancing the competitiveness of its domestic businesses 
for the purpose of ensuring long term sustainab ility. The Government is focused on moving the 
economy to a knowledge base, and foreign investment is key to this development. Bahrain believes, 
therefore, that   liberalization is a core element in progressing sustainable development over the long 
term. 
Both the Government Report and the Secretariat Repor t, provide a picture of the changes that have 
been made since Bahrain’s first trade policy revi ew in 2000, in terms of the diversification and 
development process, which have brought the coun try to a point where it is amongst the freest 
economies in the world.  
Comments from members, including European Commun ities, India, Japan, Korea, Nigeria, Singapore, 
Turkey and United States, have all touched on th e issue of FDI and a greater opening up of the 
market. Members have asked that the remaining im pediments and restrictions be removed, and Mr. 
Chairman we are committed to do just that thr ough the progressive reduction of the Negative List. 
This is a continuous process, and with many stakeholders involved, as you would expect in a 
democratic system, but  I sincerely hope that at the time of our next TPR, we can report a greatly reduced List, and of course that our Discussant will be Ambassador Fujisaki, who will I have no doubt 
have progressed even further with his impressive Arabic.   
On the issue of Intellectual Property Rights, which was also touched on by  Japan, as well as in the 
advanced written questions submitted by India; Bahrai n has recently enacted sever al new laws in this 
area, which include, Patents, Trademarks, Copyright & Neighbouring Rights, Trade Secrets, Topographic Designs of Integrated Circuits,  Industrial Design, Geographical Indications, and 
Manufacturing of Optical Discs as well as becoming a party to numerous international agreements 
and treaties. Bahrain considers that a solid IPR infrastructure is a vital component to attracting both 
FDI and in fostering domestic innovation, and is intent on placing as much emphasis on enforcement 
as it has in enacting WTO compliant legislation in this regard. We very much appreciate the link 
between IPR, innovation and economic development a nd the role that foreign direct investment can 
play in this regard, particularly for a small de veloping economy like Bahrain, and I can assure you 
that we are absolutely committed to ensuring a cl ean environment for IPR through a  process of rigid 
enforcement and judicial process. 
 Mr. Chairman, a number of members posed advanced  written questions regarding Competition Policy, 
and additionally we had specific references to this same issue during our Wednesday session from the European Communities, Japan, Korea, Nigeria, Singapore, and Turkey. 
  WT/TPR/M/185/Add.1 
 Page 73 
 
 
 I am very pleased to inform members that Competition Legislation is a priority issue in Bahrain which 
we are working on at different levels, both in the Kingdom, and with our colleagues in the GCC. In Bahrain we do already have a Consumer Protect ion Law which contains certain key competition 
elements, but we do also have a comprehensive Competition Law in draft form, a draft which has 
already received very positive comments by the Wo rld Bank, and which is now in the consultation 
process, before being passed to the legislature. I am certain that the draft Competition Law will set 
members concerns to rest, and we shall be more th an happy to share this draft with members once we 
have completed the current review process, for any comments or observations which could improve 
the final product.  
Mr. Chairman, Privatization is another issue whic h you so incisively highlighted in your opening 
remarks, and which has been brought up by a number of members through their advanced written questions, as well as being touched on by our coll eagues from the United States in the first day of 
these discussions.   
As I have already mentioned, in Bahrain we are following a process of private sector led growth, 
which has entailed changing the role of Government  to that of facilitation, support and regulation. 
This involves encouraging the private sector by a ll means to become fully engaged in the economic 
development process, and one important aspect of this  is naturally, taking up those elements of the 
economy which up to now the Government has been in volved in, such as utilities, education, health 
and so on. The Government is also the owner of as sets in some entities, and the divestiture of these 
assets to the private sector is yet another element in the changing public/p rivate sector landscape. 
 I cannot give you any time lines here, but let me say that we are committed  to the divesture of 
Government assets as a matter of general policy, an d this will be a process which is dynamic and 
develops with experience. We take great store from success in the privatization projects which we 
have been achieved thus far, and you may be assured that we will continue to build on this as we look 
to accelerating this process, as we learn from the forgone and add experience and value. 
 Members have asked specifically abou t the privatization of the some specific entities, and we received 
advance written questions from India and the Separa te Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu in this regard. 
 
It is absolutely not my intention to dodge any bulle ts here, but at the present time I cannot provide any 
timelines for the divestiture of some of the major industries such as BAPCO. We have to remember 
that oil does contribute significantly, in fact more  than 75% to Government revenue,  and changing 
the dynamics of an economy which has based its ec onomic development and the attraction of inward 
investment by creating a world-class infrastructure by using oil revenues in this matter so as to 
support diversification, cannot be achieved easily  or quickly. Nevertheless, the Government of 
Bahrain is currently restructuring its oil and gas sector as a whole, including the establishment of a 
holding company to manage the Government of Ba hrain’s oil and gas interests, and this is an 
indication of the direction of future policy in this  regard as well as in the manner in which other assets 
are now being held by the Government holding co mpany Mumtalakat, which is already engaged in 
the divestiture, based on commercial decisions, of G overnment holdings, and this will increase as we 
learn from previous experiences  Government Procurement, Mr. Chairman was the s ubject of interventions by a number of members 
including Brazil, Japan, Korea, Singapore and the Un ited States, as well as being referred to in some 
advanced written questions. 
 Bahrain is discussing the issue of the membership of the WTO GPA within the context of the GCC. 
Nevertheless, Bahrain supports the goals of WTO GPA, as it serves the purpose of  improving transparency and increasing fair market access in government procedures and regulatory decisions WT/TPR/M/185/Add.1 
Page 74  
 
 that are related to procurement. In Octobe r 2002, Bahrain implemented a new government 
procurement law that establishes the basic framework for a tran sparent government procurement 
system. A tender board has been established in Ja nuary 2003 to oversee all government tenders and 
purchases.   
Bahrain has signed an FTA with USA (a GPA memb er), and is in the process, through GCC, of 
negotiating an FTA (inclusive of governments procurement) with some other members of GPA, such 
as EU, Singapore and EFTA members. Nevertheless, recognizing members con cerns on this issue, 
Bahrain will make positive efforts within the GCC to finalize this issue at the earliest time. 
 
I would also like to recall at this time that our fri ends from Japan have referr ed to some reports of  
companies experiencing some difficulties in terms of government procurement. We have not been 
aware of any such complaints, and would be most inter ested to have details so that we may take future 
corrective action in this regard , and prevent any reoccurrence. 
 
Mr. Chairman, a number of other questions were raised during the opening session from member 
members, and in this first part of my address this  morning I would now like to turn to those issues, 
wherever an issue has been duplicated I would provide a single response, and as a matter of housekeeping, if you will, I will try to deal with these questions in the same order which they were 
raised, leaving out the questions which I have alrea dy provided answers to at the start of my address 
today. 
 
The issue of the difference between applied and bound rates was raised by our friends from 
Singapore, and also referred to in the interven tions from the European Communities, Nigeria and 
Turkey. Members have expressed their concerns that this gap leaves a certain measure of 
unpredictability in terms of trade policy and have  expressed the desire to see a reduction in the bound 
rates.  
 Within the ongoing DDA market access negotiations , there are several formulas discussed for the 
reduction of the bound rates of the WTO members w ith special consideration for developing and 
small-economy members. Accordingly, Bahrain’s po sition will be positively defined in coordination 
and harmonisation within the GCC’s Customs Union. Ho wever, I believe that it is fair to say that 
Bahrain’s history in terms of applied tariff ra tes and their application since its’ initial GATT 
commitments speak volumes for our perspective on this  issue, particularly keeping in mind that we 
are in any event a net importer of non-oil produc ts. In the meantime bound rates will continue to 
decline.  
Consular issues with regard to the requirement that  export invoices should be authenticated at an Arab 
embassy was an issue raised by our fellow members from Korea and New Zealand. We do understand and appreciate your concerns and valid comments in this regard. 
 The reason behind certification requirement is to deal  with certain problems that have occurred in the 
past, where documentation has been found to be in accurate, and as a result as a general policy, was 
required from all members,  in order to be conf ident about the validity of these documents and to 
ensure that they are issued by governmental agen cies in the exporting country.  This should be done 
by a Bahrain Embassy or, in the event that there is no Bahrain Embassy in the exporting country, then 
it should be attested by an Arab Embassy as a matter of facilitation.  In the interim, Bahrain Customs are ready to address any specific concerns in this rega rd and review this requirement in the future in 
line with its continued review of procedures and fo rmalities with a view to achieving simplification  
and facilitation. Nevertheless, Bahrain will undertak e a leading role within the GCC to achieve a 
removal of this requirement as soon as possible in the interest of more predictability and facilitation of 
imports.   WT/TPR/M/185/Add.1 
 Page 75 
 
 
 Our colleagues from the United States looked for less restriction in land transportation, and I would 
like to assure members that this is an issue which is under active consideration at the present time, 
together with our GCC partners, in order to deal with the back-loading issue, which of course for a 
small island country with a single road entry point is a critical factor in terms of local operators unless reciprocity is achieved. Bahrain will make every effo rt to achieve a result in this regard which will 
then facilitate the removal of restrictions in this area. 
 The United States, is also keen to see the opening up of some sectors, and retail and travel services 
have been cited as examples. As I have already el aborated in answers to previous questions, our 
Negative List of restricted activities is a dynamic lis t, subject to continuous review and change in line 
with economic development perspectives, and I would expect to see this list positively and 
progressively reduced, and retail and travel services ar e certainly not sacrosanct to future elimination 
from the Negative List. I could perhaps mention here  that His Highness the Crown Prince, who is so 
committed to a totally free economy, was directly inst rumental in creating transparency in this issue 
of restricted activities by instructing the creation of a Negative List approach, and takes a keen and 
continuous interest in reducing the items on this list. 
 In terms of the GCC harmonization, Bahrain plays an  active role within the GCC and will make every 
effort to accelerate the harmonization process with its  brotherly neighbours, for the benefit of all GCC 
members and their trade partners.  
I have already talked about Competition Policy in relation to some previous questions raised, but 
answering the specific question of the European Communities with regard to the GCC Competition 
Policy, we will do our utmost with our GCC colleagues to finalise this draft at the earliest.  The European Communities asked to what extent Bahrain pays atten tion to the relationship between 
high productivity and high social standards and its  links between economic/trade polices and core 
labour standards.  Mr Chairman, Bahrain is undergoing significant a nd comprehensive economic reforms, which have 
separate and connected education, labour, health, a nd productivity characteristics. I believe that this 
has been set out in the Secretariat Report as well as being described in our Government Report as well 
as in answers to members questions. Nevertheless, I w ould like to reiterate that Bahrain considers that 
its main wealth is in its one renewable asset, its people. In the past the Government has used oil 
revenues to nurture the population to be educated a nd healthy and to be calculated risk takers and 
work ready. This process continues, but is now be ing redefined and refocused in current labour and 
education reforms which aim at making the Bahraini labour force more competitive by removing the 
disparity between local and foreign labour. A core el ement in this process is to provide higher skilled 
jobs by moving firms up the value chain, and make Bahrainis ready to compete for these higher skilled jobs through education and training reforms.  A complimentary element in these reforms, is fr eeing up the labour market and ensuring equal rights 
for all workers, irrespective of nationality,  including the free movement between employers. Bahrain 
is proud to recognize the important contribution of fo reign labour to the devel opment of Bahrain in all 
sectors, and pays the greatest respect to these valu able assets, which we believe the current reforms 
will enhance and protect.  The European Communities have express their great  concern regarding the current ban imposed on 
European Beef, we have responded in our answers to  the written questions  that Bahrain has imposed 
the ban on beef imported from Europe during the outbr eak of BSE in cattle in the UK and some other 
European members to protect the consumers from th is serious disease, and deal with the fear which 
the outbreak had caused amongst local consumers.  Howeve r, Bahrain is studying this issue in light of  
OIE development, and will do so at the GCC level. WT/TPR/M/185/Add.1 
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Bahrain regards BSE as a serious disease, which has created fear among the consumers.  Nevertheless, Bahrain will look into the current devel opment in the international arena with respect to 
the BSE and will most certainly raise this at the GCC level, with a view to supporting its removal. 
Colleagues from Canada also touched on this BSE issue.  
 
We appreciate the comments regarding the accuracy a nd timeliness of statistics, and we would like to 
assure members that Bahrain is addressing the issue of statistics, and in particular trade data will be 
positively effected by changes in the Customs pr ocedures and the automation of customs forms, 
thereby making the collection and collation of data  at the entry point faster and more accurate. 
 
I would like to assure the Australian members that Ba hrain will continue to work tirelessly within the 
WTO in all negotiating and other forums to ramp- up the participation of developing members in the 
multi-lateral process, and further looks forward to progressing the GCC/Australian Free Trade Agreement, in which Bahrain hopes to play a signifi cant contributory role. In terms of the bi-lateral 
MOU regarding live animals, Bahrain shares Australia ’s desire to see an early completion and will do 
everything to facilitate the same.  Responding to Brazil, Bahrain is also keen to see an early completion of the GCC/Mercusor 
Agreement and will use its best efforts to make progress at the GCC in this regard. 
 
Brazil also raised the sa me question posed by the United States in its advanced written questions, and 
to which Bahrain answered that a subsidy is provided to all consumers in Bahrain on a non-
discriminatory basis as an element in the human welf are regime. The subsidy given supports the price 
of meat in the domestic market by fixing the price of slaughtered meat supplied by the slaughter house, which is a private sector operation. 
 
The import of live sheep is primarily, but not excl usively, from Australia only on the basis of local 
taste/habit and price considerations. The subsidy is on Australian livestock de facto, since this is the 
main current source of supply, but essentially a pplies to all slaughtered meat supplied by the 
slaughterhouse . We will be very happy to entertai n imports of meat from other members, Brazil for 
one, as we are experiencing shortages. 
 
There is a plan under consideration to remove the su bsidies and to replace this with social assistance 
to be provided to needy families.  We support our New Zealand colleagues statement that making progress in the Doha Round is a trade 
priority, and we can assure members that Bahrai n is committed to achieving success in this round and 
by working tirelessly within its competence to make this happen.  We would also assure New Zealand that agricultura l input subsidies are minimal, Bahrain is a net 
importer of agricultural products, with the Agricu ltural trade deficit in 2005 reaching US$337.7m, and 
Agriculture as a whole contributes only 0.6% to GDP  and only 1.3% of employment, yet remain 
under constant review. Indeed such support is give n primarily as part of the social welfare support 
mechanism, which is in any event now under revi ew as a new support mechanism aimed at needy 
families.  
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