Bahrain businessmen have identified areas to improve bilateral trade relations with the Philippines can be improved including the forging of a free trade agreement (FTA).
This was raised by Bahrain Chamber of Commerce and Industry treasurer Ebrahim Mohammed Al-Zainal during of the Philippines-Bahrain Business Council sponsored by the Philippine Chamber of Commerce and Industry.
"An FTA between Bahrain and the Philippines will be beneficial to both countries in enhancing trade and investments relations because we have just our FTA with the US is expected to be operational before the end of this year," Al-Zainal told both Filipino and Bahraini businessmen.
He noted that once the Bahrain-Philippine FTA is forged goods produced in the Philippines can freely exported to the US market.
On the other hand, a proposed FTA between the US and the Philippines still hangs.
Bahrain and the Philippines have signed two business agreements. These include the agreement on avoidance of double taxation and tax evasion and mutual protection of investments in 2001.
Bahrain is the Philippines 12th biggest trading partner in the Middle East and the country’s 66th export market globally.
Bilateral trade for the period 2000 to 2004 has been improving but both sides cannot agree who incurred the trade deficit with the Philippines claiming the balance of trade heavily tilted in favor of Bahrain while Bahrain figures also noted they suffered the trade deficit.
Both sides, however, agreed there is more room for improvement in the bilateral trade relations.
Nonetheless, Al-Zainal cited other areas of opportunities for joint ventures with Filipinos.
He also pushed for a joint venture on the aluminum business noting that Bahrain produces 850,000 tons of aluminum and petrochemical.
Other opportunities include the exports of ammonia to the Philippines or a joint agreement with Gulf Petrochemical Co.
Al-Zainal further urged for improved banking presence in Bahrain for Philippines.
Al-Zainal noted that Bahrain is the financial center of the Middle East hosting some 160 financial institutions but the Philippines has only two banks there.
These include Allied Bank, which has a full banking service, and a representative AMA Bank.
He noted there is no foreign equity restriction as to the establishment of a local bank in Bahrain and this can be wholly-owned by a foreign proponent.
