issues in global trade and finance

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Monday, September 27, 2004

US and Bahrain sign Free Trade Agreement

The US recently signed a free trade agreement with Bahrain. This trade agreement is a comprehensive agreement to remove trade barriers and expand regional opportunities for both parties.
Having duty-free trade between the two countries allows opportunities at many levels for both parties. The Bahrainian's will have the ability to acquire technologies to improve their society at a lesser cost. Much of the technology, such as aircraft and other machinery, will help their country establish its own identity with other countries within the region.
The US benefits fall directly in the administrations foreign trade policy theory that helping a country develop technologies and technology based economies will progress to more exposure to personal freedoms. The US and Bahrain are setting a precedent within the region that will hopefully allow other nations to follow suit.
Thsi is part of the plan that President Bush outlined to help United States expand trade with the Middle East. This expansion of trade with Bahrain along with a recently passed FTA with Morocca are examples of positive steps in the direction of following that plan.

The article can be seen here.

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