US-Bahrain Free Trade Agreement (USBFTA)

A cornerstone of the growing relationship between the U.S. and Bahrain is the U.S.-Bahrain Free Trade Agreement (USBFTA) which has opened channels of business between the U.S. and the countries of the Arabian Gulf. The agreement has had long-term and far-reaching multiplier effects on bilateral trade and investment, deepening the ties between the two countries and enhancing economic opportunities for both.

Signed in 2006, the U.S.-Bahrain Free Trade Agreement (USBFTA) was the first free trade agreement established between the United States and a Gulf Cooperation Council (GCC) country. This agreement carries specific rules of origin, as the traded goods should be made entirely in Bahrain or U.S. from materials originating from both countries.

The agreement eliminates all tariff and non-tariff barriers to trade, which reduces the cost burdens of exporting and increases the competitiveness of Bahraini products in the United States.

As part of the FTA, cross-country investment barriers are removed. In the long term, the U.S.-Bahrain Free Trade Agreement guarantees that the historically beneficial relationship between the U.S. and Bahrain will not only continue, but grow.