Concluding remarks by the Chairperson

This fourth Trade Policy Review of the Kingdom of Bahrain has given us an excellent opportunity to examine the evolution of its trade and related policies over the past seven years. The success of this Review has been ensured by the active participation of WTO Members who submitted around 150 advance written questions, as well as by the comprehensive reports prepared by the Government of Bahrain and the WTO Secretariat.

I would like to express here my great appreciation to the high-level delegation of Bahrain, led by H.E. Mr. Zayed Bin Rashid Al Zayani, Minister of Industry, Commerce and Tourism. In the delegation, I recognize my colleague Ambassador, H.E. Dr. Yusuf Abdulkarim Mohammed Bucheeri, Permanent Representative of Bahrain to the WTO. My gratitude also goes to our discussant Ambassador, H.E. Mr. Li Chenggang, Permanent Representative of China to the WTO, for highlighting the main developments in Bahrain's trade policies and practices since its previous review, as well as the challenges the economy is facing. I would also like to thank the 23 Members who have taken the floor.

In his introductory remarks, Minister Al Zayani updated Members on measures being taken for the diversification and inclusive development of Bahrain's economy. These include: empowerment of women and the young; support to SMEs; improvement of the regulatory environment; and development of economic sectors such as tourism and healthcare. The Minister also indicated the measures being taken by Bahrain to weather a turbulent period of falling oil prices and COVID-19 pandemic which contributed to a 5.1% drop in GDP in 2020.

Members took note of the updates and commended Bahrain on its socio-political stability and its openness to trade. They stressed that the strategy to diversify the economy away from hydrocarbons was showing signs of success with the services sector now accounting for around 60% of GDP. Members acknowledged the important role of trade in Bahrain's economic development, with a trade to GDP ratio of invariably over 130%. They urged Bahrain to pursue its reforms which, together with the recent measures, would contribute to its economic recovery projected for 2021.

Bahrain was praised for its participation in, and support for, the multilateral trading system. The country is actively engaged in various WTO discussions and initiatives; it ratified the Trade Facilitation Agreement and implemented the related obligations ahead of time. Bahrain was invited to consider joining the JSI on Services Domestic Regulation, the Buenos Aires Declaration on Trade and Women's Economic Empowerment, the Trade and Environment Sustainability Structured Discussions, and the Multi-Party Appeal Arbitration Arrangement. Some Members also urged Bahrain to join the Government Procurement Agreement. In this regard, I warmly welcome the Minister's announcement today that Bahrain will formally support the Buenos Aires Declaration of Trade and Women's Economic Empowerment; will participate in the Trade and Environmental Sustainability Structured Discussions; will seriously consider its access to the GPA, subject to conformity with national legislation and practices; and that, Bahrain intends to join as a participant in the JSI on Services Domestic Regulation.

While acknowledging Bahrain's good record of fulfilling its WTO notification obligations, Members urged it to ensure that all its notifications are fully submitted in a timely manner. Several Members welcomed Bahrain's steps to improve the environment for trade and investment by removing restrictions to foreign direct investment, streamlining business licensing and registration requirements, introducing reforms to expedite customs clearance, improving its government procurement regime, and enacting legislation on competition, anti-money laundering and bankruptcy. Some Members also noted that the absence of corporation taxes and the low costs of running a business made Bahrain attractive for investors. Some concerns were expressed about excise taxes, on beverages in particular, and about their revisions under consideration at the GCC level.

Other areas of interest to Members included future steps in regional integration; the “made in Bahrain” initiative; digital transformation of both the public and private sectors; measures to promote the fintech industry; and efforts to mitigate climate change.  

In conclusion, I would say that this has been a very positive review, with Members overwhelmingly highlighting the positive trends since 2014 in terms of the liberalization and transformation of Bahrain's economy. Moreover, on the eve of the WTO's Twelfth Ministerial Conference, we have heard Members express their appreciation for Bahrain's engagement in the WTO and their hopes that it will be deepened even further. Members have appreciated the oral and written responses provided by the Bahraini delegation to their questions and look forward to receiving further written responses to any outstanding and follow up questions within one month. This successfully concludes this TPR of the Kingdom of Bahrain.