RESTRICTED WT/TPR/S/294 18 March 2014
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RESTRICTED WT/TPR/S/294 18 March 2014 (14-1700) Page: 1/78 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT KINGDOM OF BAHRAIN This report, prepared for the third Trade Policy Review of the Kingdom of Bahrain, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from the Kingdom of Bahrain on its trade policies and practices. Any technical questions arising from this report may be addressed to: Ms Mena Hassan (tel.: 022 739 6522). Document WT/TPR/G/294 contains the policy statement submitted by the Kingdom of Bahrain. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on the Kingdom of Bahrain. This report was drafted in English. WT/TPR/S/294 • Kingdom of Bahrain - 2 - CONTENTS SUMMARY ........................................................................................................................ 6 Economic environment ...................................................................................................... 6 Institutional framework ...................................................................................................... 6 Trade policy instruments .................................................................................................... 6 Sectoral policies ............................................................................................................... 7 1 ECONOMIC ENVIRONMENT .......................................................................................... 9 1.1 Introduction .............................................................................................................. 9 1.2 Recent economic developments ................................................................................... 9 1.2.1 Macroeconomic indicators ........................................................................................ 9 1.2.2 Employment ......................................................................................................... 10 1.2.3 Balance of payments .............................................................................................. 11 1.2.4 Fiscal position ....................................................................................................... 12 1.3 Developments in Trade .............................................................................................. 12 1.3.1 Composition of trade .............................................................................................. 12 1.3.2 Direction of trade ................................................................................................... 14 1.4 Foreign direct investment trends ................................................................................. 14 1.5 Outlook ................................................................................................................... 14 2 TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES .......................................... 16 2.1 Institutional framework ............................................................................................. 16 2.2 Trade policy formulation ............................................................................................ 17 2.2.1 Main trade laws ..................................................................................................... 17 2.3 Economic and trade policy objectives ........................................................................... 17 2.4 Trade agreements and arrangements .......................................................................... 18 2.4.1 WTO .................................................................................................................... 18 2.4.2 Regional and bilateral agreements ............................................................................ 18 2.4.2.1 The Gulf Co-operation Council (GCC) ..................................................................... 18 2.4.2.2 PAFTA ............................................................................................................... 19 2.4.2.3 United States ..................................................................................................... 19 2.4.2.4 Singapore .......................................................................................................... 19 2.4.2.5 Agreements not yet in force.................................................................................. 20 2.4.3 Other agreements .................................................................................................. 20 2.5 Trade disputes and consultations ................................................................................ 20 2.5.1 Dispute settlement in the WTO ................................................................................ 20 2.5.2 Other ................................................................................................................... 20 2.6 Investment regime ................................................................................................... 20 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 22 3.1 Introduction ............................................................................................................. 22 3.2 Measures directly affecting imports ............................................................................. 22 3.2.1 Procedures ........................................................................................................... 22 WT/TPR/S/294 • Kingdom of Bahrain - 3 - 3.2.2 Customs valuation ................................................................................................. 23 3.2.3 Rules of origin ....................................................................................................... 23 3.2.4 Tariffs .................................................................................................................. 24 3.2.4.1 MFN applied tariffs .............................................................................................. 24 3.2.4.2 Tariff bindings .................................................................................................... 25 3.2.4.3 Other duties and taxes ......................................................................................... 27 3.2.4.4 Duty and tax concessions and exemptions .............................................................. 27 3.2.4.5 Tariff preferences ................................................................................................ 28 3.2.5 Import prohibitions, restrictions, and licensing ........................................................... 29 3.2.6 Contingency measures ........................................................................................... 30 3.2.7 Government procurement ....................................................................................... 30 3.2.8 Other measures ..................................................................................................... 32 3.3 Measures directly affecting exports ............................................................................. 32 3.3.1 Procedures ........................................................................................................... 32 3.3.2 Export taxes, charges and levies .............................................................................. 32 3.3.3 Export prohibitions, restrictions and licensing ............................................................. 32 3.3.4 Export subsidies .................................................................................................... 33 3.3.5 Export processing zones ......................................................................................... 33 3.3.6 Export finance, insurance and guarantees ................................................................. 33 3.3.7 Export promotion and marketing assistance ............................................................... 34 3.4 Measures affecting production and trade ...................................................................... 34 3.4.1 Incentives ............................................................................................................ 34 3.4.2 Standards and other technical requirements .............................................................. 34 3.4.2.1 Standards, metrology, testing and certification ........................................................ 34 3.4.2.2 Sanitary and phytosanitary measures .................................................................... 37 3.4.2.3 Marking, labelling, and packaging requirements ....................................................... 38 3.4.3 Intellectual property rights ...................................................................................... 38 3.4.3.1 Overview ........................................................................................................... 38 3.4.3.2 Patents .............................................................................................................. 39 3.4.3.3 Copyright and related rights ................................................................................. 40 3.4.3.4 Trade marks ......................................................................................................