GCC economies, including Bahrain's, are not as vulnerable as some other regions and states, in the face of the current international financial turmoil, Industry and Commerce Minister Dr Hassan Fakhro said on Wednesday.

'This is an opportune time to consolidate our efforts for accelerating our production and trading capabilities, not only to ensure our safe sailing through such high tides, but also to succeed in attaining the ambitious objectives of the Bahraini Economic Vision, which has been launched recently by His Majesty King Hamad,' he told an economic seminar at the Bahrain International Exhibition Centre.

The seminar titled, 'Bahrain International Trade Development Through the WTO & FTAs', was organised by the Industry and Commerce Ministry, in co-operation with the UN Development Programme (UNDP).

The aim of the seminar is to discuss the latest situation of the WTO Doha Round of trade negotiations, as well as issues relevant to the implementation of Bahrain's Free Trade Agreement (FTA) with the US.

Dr Fakhro thanked the UNDP, Bahrain Chamber of Commerce and Industry, and the US Embassy for their support.

UNCTAD secretary general Dr Suachai Panitchpakdi sent a message to the seminar regarding the world economic scene and the impact on trade and development.

During Bahrain's second Trade Policy Review in the summer of last year, Bahrain performed extremely well and received a number of searching questions from members, Dr Fakhro recalled.

'The Industry and Commerce Ministry's trade capacity building project, which we are implementing jointly with UNDP is providing us with valuable studies and recommendations not only in WTO and FTA negotiating forums and techniques, but also on the best manner to make use of the results of these negotiations,' he said.

'As part of this project, the 'Bahrain Basic Guide for FTAs' will be published.'

Dr Fakhro also revealed that his ministry would establish a Business Advocacy Unit and mechanism.

'This will have the dual purpose of ensuring that a consulting process with the private sector is in place through which businesses can provide their positions on trade policy, and will also be a mechanism through which the ministry can provide technical and other assistance to businesses to develop in support of an export drive,' he added.

The existence of the FTA provides Bahrain with an advantage attractive to foreign investors, said Dr Fakhro.

'The FTA is no panacea for increasing exports unless the companies involved are ready to export,' he added.

BCCI chairman Dr Essam Fakhro said trade is not the cause of financial turmoil but good trade policies may be but part of the solution.

It allows unused resources linked to the fall in domestic markets to be exported, he said.

Bahrain has rejuvenated itself to keep pace with the global changes, said Dr Fakhro.

'Bahrain has taken steps to enhance its business and investment climate for attracting foreign direct investment and to boost the flow of cross border trade and commerce,' he added.

'The Bahrain-US FTA makes the kingdom a more attractive destination for global commerce.'

The FTA eliminates tariffs on 96 per cent of the industrial and agricultural products, said Dr Fakhro.

'The bilateral trade value last year reached $943 million against $747 million in 2006 leading to a growth rate of 26 per cent compared to the growth of rate 23 per cent in 2006 against 2005,' he added.

'WestPoint Homes $200 million investment in Bahrain, and Kraft Foods, which has created 250 jobs in Bahrain, are few examples of international companies that have expanded their industrial operations to this island to capture the advantages of the FTA and thereby boosted job creation and expanded trade volumes.