Essay - International Trade Between Bahrain and Saudi Arabia Summary: This Is...

INTERNATIONAL TRADE BETWEEN BAHRAIN AND SAUDI ARABIA

*****: This is a paper on Trade between Bahrain and Saudi Arabia, focusing on how it affects their international trade relations with special attention to OPEC, GCC and the Qatar dispute. It uses 22 sources in MLA format.

Introduction

Both Saudi Arabia and Bahrain are members of ***** Gulf Cooperation Council along with Qatar, UAE, Kuwait and Oman. Under the GCC Agreement, preferential tariffs apply among the member states. Since independence in 1971, Bahrain has essentially pursued a liberal trade and investment policy, and has integrated its economy closely ***** those of other countries in the region, through the Unified Economic Agreement of the Gulf Cooperation Council (*****).

Trade and economic growth in Bahrain is strongly affected by variations in international energy prices. Real GDP growth, as a result, w***** slower during the 1990s compared with ***** previous decade, averaging around 3.6% annually since 1994.

Bahrain: General Policy Framework

Although the Government of Bahrain ***** controlling interests in many of the island's major industrial establishments, its overall approach to economic ***** can best be described as laissez faire. Except for a few b*****sic foodstuffs, ***** price of goods in Bahra***** is determined by market forces, and the import and distribution ***** foreign commodities and manufactured products is carried out ***** the private sec*****r. Owing to its historical position as a ********** trading center, Bahrain h***** a well-developed and ********** competitive mercantile sector in which products from ***** entire world are represented. Import duties are primarily a revenue device for the government and are assessed at a ten-percent rate on most *****. (U.S. Department Of State, 1994)

***** the last two *****s, the Government of Bahra***** has encouraged ec*****omic diversification by investing in such basic industries as aluminum smelting, petrochemicals and ship repair; and by creating a regulatory framework that has fostered the development of Bahrain as a regional financial and commercial center. Despite this, the oil and gas revenues ***** still very important. In 1994, they constituted over 60 percent of *****al revenues ***** about 80 percent of the island's exports. (U.S. ***** Of State, *****) Petroleum's share in GDP has been decl*****ing, *****ever, and st*****s at present ***** ***** 14% of GDP and 64% of merchandise exports.

***** a member of the Gulf Cooperation ***** (GCC), ***** is striving to achieve greater economic integration among its member *****. In addition to accepting imports from ***** ***** states duty-free, Bahrain has adopted GCC food product labeling and automobile standards. In recent years, the GCC ***** negotiated a tr*****de agreement with ***** [European Community European Report, 04-25-2001].

***** Bahrain imports most manufactured products it needs, prices are basically dependent upon the source of supply and shipping and handling costs. The opening up of the causeway between Bahrain and ***** ***** mainland in 1985 has *****ed ***** a fall in ***** to the levels prevailing in other GCC countries and an increase in tour*****t traffic.

Trade among states ********** as they industrialize. And their patterns