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Viewing cable 04MANAMA1494, BAHRAIN: TRACKING CHANGES IN TEXTILES AND APPAREL

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Reference ID Created Released Classification Origin
04MANAMA1494 2004-09-29 12:33 2011-08-24 01:00 UNCLASSIFIED Embassy Manama
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS MANAMA 001494 
 
SIPDIS 
 
STATE FOR NEA/ARPI AND EB/TPP/ABT EDWARD HEARTNEY 
COMMERCE FOR ITA/OTEXA MARIA D'ANDREA 
 
E.O. 12958: N/A 
TAGS: KTEX ECON ETRD ELAB BA
SUBJECT: BAHRAIN: TRACKING CHANGES IN TEXTILES AND APPAREL 
EMPLOYMENT AND PRODUCTION AFTER QUOTA ELIMINATION 
 
REF: STATE 184238 
 
1.  Expiration of the WTO Agreement on Textiles and Clothing 
(ATC) will likely have a small negative impact on the 
Bahraini economy because the textile and apparel sector is a 
relatively minor contributor to the gross domestic product. 
However, the potential for layoffs in the textile sector is a 
potent political issue because of the preponderance of Shia 
women among the approximately 3,700 Bahrainis employed in the 
apparel sector.  Unemployment has traditionally had a 
disproportionate impact on the Shia community, which 
represents some 70 percent of the country's population.  Some 
Bahrainis believe that the recently signed U.S.-Bahrain Free 
Trade Agreement could actually lead to an expansion of the 
sector as investors seek to benefit from tariff-free entry of 
textiles and apparel into the U.S. 
 
2.  Data available on textile and apparel production in 
Bahrain are as follows: 
 
---- 
2003 
---- 
 
-  Total Industrial Production: USD 3,676.8 million. (Source: 
Bahrain Monetary Agency) 
-  Total Textiles and Apparel Production: No official 
statistics are available.  However, industry leaders estimate 
textile production at USD 83 million and apparel production 
at USD 323 million. 
-  Textiles and apparel's share of Bahrain's imports: 4.1 
percent (Source: Bahrain Monetary Agency) 
-  Textiles and apparel's share of Bahrain's exports: 4.3 
percent (Source: Bahrain Monetary Agency) 
-  Total Manufacturing Employment:  No official statistics 
are available but Embassy estimates derived from Bahrain 
Monetary Agency statistics put manufacturing employment at 
25,100.  This figure does not distinguish between expatriate 
and Bahraini workers. 
-  Total textiles employment: No official statistics are 
available.  However, industry leaders estimate total textile 
employment in 2003 at between 1,200 to 1,700 Bahraini 
nationals. Similar estimates were used during the negotiation 
of the FTA. 
-  Total apparel employment:  No official statistics are 
available.  However, industry leaders estimate total apparel 
employment in 2003 at 11,000, of which approximately 3,600 
were Bahraini nationals.  Similar estimates were used during 
the negotiation of the FTA. 
 
---- 
2002 
---- 
 
-  Total Industrial Production: USD 3,246.2 million. 
(Source: Bahrain Monetary Agency) 
-  Total Textiles and Apparel Production: No official 
statistics are available.  Industry estimates for this period 
are not reliable. 
-  Textiles and apparel's share of Bahrain's imports: 5.09 
percent (Source: Bahrain Monetary Agency) 
-  Textiles and apparel's share of Bahrain's exports: 7.9 
percent (Source: Bahrain Monetary Agency) 
-  Total Manufacturing Employment:  No official statistics 
are available but Embassy estimates derived from Bahrain 
Monetary Agency statistics put manufacturing employment at 
23,200.  This figure does not distinguish between expatriate 
and Bahraini workers. 
-  Total textiles employment: No official statistics are 
available.  However, industry leaders estimate total textile 
employment in 2002 at approximately the same level as in 
2003, between 1,200 to 1,700 Bahraini nationals. 
-  Total apparel employment:  No official statistics are 
available.  However, industry leaders estimate total apparel 
employment in 2002 at 13,000, of which approximately 3,600 
were Bahraini nationals. 
 
3. The GOB does not regularly report statistics on textile 
and apparel employment.  Monthly unemployment statistics are 
also not available. 
 
4. Point of contact for textiles and apparel issues is 
Economic Officer Aimee Cutrona. She can be reached through 
the Embassy switchboard at: (973)1724-2700, at the office: 
(973) 1724-2986; via fax: (973) 1727-3011; or email: 
cutronaa@state.gov. 
ZIADEH