By ROBERT SMITH

MANAMA:

The pending Free-Trade Agreement (FTA) between Bahrain and the US could spark a flurry of business activity in this country, according to Bahrain Businessmen's Association (BBA) board secretary Afnan Al Zayani.

She said the same agreement signed between Jordan and the US led to a 13-fold increase in trade between the two countries within the first two years and created 30,000 jobs.

Representatives from the BBA met with Finance and National Economy Minister Abdulla Saif on Tuesday to discuss the issue.

"Benefits will include a standard and quality environment for investment in Bahrain," she said yesterday.

"Confidence in the Bahrain market will be up.

"It will also mobilise existing industry and services as new investors seek to benefit from this agreement - whether local or foreign.

"In addition, over a set period all tariffs will be waved which will attract foreign investors to come here to establish their business."

In Jordan this was introduced over a 10-year period, but the timescale may differ for Bahrain.

Other benefits include priority on exports to the US, as well as access to the $280 million US market.

The FTA must be approved by US Congressmen before official negotiations can get underway.

But Crown Prince and BDF Commander-in-Chief Shaikh Salman bin Hamad Al Khalifa has already lobbied over 40 members of Congress, according to Ms Al Zayani.

She is urging companies with US trade partners to ask them to do the same.

"We need businessmen to contact their clients in the US to address their congressmen," said Ms Al Zayani, who was speaking to BBA members during yesterday's meeting.

"It means when the agreement goes for ratification we will already have a lobby there.

"If pressure comes from the private sector it is more effective."

Issues which will be under negotiation are such things as bio-technology, labour laws, transparency, arbitration, national product protection and opening up new markets.

However, the FTA is not expected to be affected by trade quotas with the US.

"They say we have nothing to worry about," said MS Al Zayani.

"We have not even reached half of our quota with the US. In garments and textiles we do not use up 10 pc of the quota."

Meanwhile, in a separate development Iraqi businessmen are set to travel to Manama next month to discuss reconstruction projects with Bahrain businessmen.

A group of over 100 Iraqis are expected to attend meetings on October 20 and 21 to discuss development of the country, which is struggling to come to terms with the post-war situation.

Their visit is being organised by the BBA with the backing of Prime Minister Shaikh Khalifa bin Salman Al Khalifa.

"The Prime Minister has agreed to host a large number of Iraqi people to come to participate in a special conference about Iraq," said BBA chairman Khalid Almoayed.

"We already have 100 people from Iraq who have confirmed they are coming."

The meetings will follow hot on the heels of the seventh Arab Federation of Businessmen conference, which is taking place in Bahrain on October 18 and 19 under the patronage of His Majesty King Hamad.

A special Lebanese business seminar is also being arranged by the BBA on October 20.

The announcement was made at the regular BBA meeting yesterday (sep 13), which also saw the launch of the association's official website.

Details about the BBA and the forthcoming conference can be found on the website at www.bbma.org.