Us Peanut Import Limits: Bahrain's Trade Barrier

The US has a complicated history with peanuts, and while it's not illegal to grow them, there are heavier regulations than one might expect. Each state has different laws that regulate the sale of peanuts, and in the past, the government has stopped giving out licenses, preventing new sellers from entering the market. The US also has a Free Trade Agreement with Bahrain, which has generated additional commercial opportunities for both countries. However, there is no specific information about peanut imports from Bahrain to the US.

Bahrain's human rights violations

Bahrain's human rights record has been described as "dismal" by Human Rights Watch, with reports of worsening rights violations in 2019. The country has been criticised for its treatment of Shia Muslims, torture, forced disappearances, and suppression of free speech. Here is an overview of the human rights situation in Bahrain:

Marginalisation of Shia Muslims

Bahrain's native Shia Muslim population has faced marginalisation and discrimination. During the 2011 Arab Spring, there were complaints of the destruction of dozens of long-standing Shia mosques. There are also reports of sectarian discrimination, with Shia Muslims being banned from holding key government posts or serving in the police or military.

Torture and Forced Disappearances

Torture and forced disappearances are common in Bahrain. In 2011, Human Rights Watch reported that the government regularly practiced torture and ill-treatment during interrogations. Despite government denials, there have been no criminal investigations, and no disciplinary measures have been imposed on the alleged perpetrators. Death sentences in Bahrain have also increased by over 600% in the last ten years.

Restrictions on Freedom of Expression

Bahrain has banned all independent media from operating in the country and cracked down on critical online posts. The government routinely denies access to foreign journalists and human rights groups. In 2019, the Interior Ministry declared that it would prosecute people who follow or share posts on Twitter that are deemed "inciting".

Prison Conditions and Denial of Medical Care

Prison conditions in Bahrain have been a cause for concern, with prisoners going on hunger strikes to protest their treatment. There have been reports of prisoners being held in "isolation" cells with individuals of different languages, cultures, or religions. Prison authorities have also failed to provide adequate medical care to high-profile prisoners, some of whom are in critical condition.

Arbitrary Citizenship Revocations

Bahrain has revoked the citizenship of hundreds of individuals on charges of "terrorism," "national security," and "offending the country." While some individuals have had their citizenship reinstated, almost 300 people remain without Bahraini nationality and are often left stateless.

International Reactions

Despite the human rights concerns, Bahrain continues to receive support from its allies, including the United States and France. The United States approved major weapons sales to Bahrain in 2019, and France's Emmanuel Macron met with King Hamad bin Isa Al Khalifa, urging him to establish political dialogue with all components of Bahraini society. However, human rights organisations and UN special procedures, including the special rapporteur on torture, have been denied access to the country.

US-Bahrain Free Trade Agreement

The US-Bahrain Free Trade Agreement (BHFTA) came into effect on 1 August 2006. The agreement generated export opportunities for the US, creating jobs for US farmers and workers. It also supported Bahrain's economic and political reforms and enhanced its commercial relations with the US, an economic leader in the Arabian Gulf.

On the first day of the agreement, 100% of the two-way trade in industrial and consumer products flowed without tariffs. The agreement led to a significant increase in US agricultural exports to Bahrain. Additionally, Bahrain opened its services market wider than any previous FTA partner, creating new opportunities for US financial service providers and companies offering telecommunications, audiovisual, express delivery, distribution, healthcare, architecture, and engineering services.

The central oversight body for the agreement is the United States-Bahrain Joint Committee (JC), chaired by the Office of the US Trade Representative and Bahrain's Ministry of Industry and Commerce. The JC discusses a broad range of trade issues and initiatives to monitor implementation and compliance with the labour and environmental obligations in the FTA. The agreement also includes specific rules of origin that products must meet to qualify for preferential treatment.

The US-Bahrain FTA promotes the policy of advancing economic reforms and liberalization in the Middle East. The United States-Bahrain Bilateral Investment Treaty (BIT), which took effect in May 2001, covers investment issues between the two countries. Under the BHFTA, most Bahraini goods enter the US free of duty and the merchandise processing fee (MPF), and by 1 January 2015, virtually all goods will enter free of these charges.

US-Bahrain diplomatic relations

The United States established diplomatic relations with Bahrain in 1971 following its independence from the United Kingdom. The U.S. Embassy in Manama was opened on September 21, 1971, and a resident ambassador was sent in 1974. The Bahrain Embassy in Washington, D.C. opened in 1977. The American community in Bahrain can be traced back to the arrival of missionaries from the Dutch Reformed Church in the late 19th century. The American Mission Hospital and the school they established in 1903 continue to operate in Bahrain.

The United States designated Bahrain a Major Non-NATO Ally in 2002. Bahrain plays a key role in the region's security architecture and is a vital U.S. partner in defense initiatives. Bahrain hosts the U.S. Navy's Fifth Fleet and U.S. Naval Forces Central Command and participates in U.S.-led military coalitions, including the Global Coalition to Defeat ISIS. Bahrain's security forces have supported the International Security Assistance Force in Afghanistan, providing perimeter security at a military base. Bahrain was the first Arab state to lead a Coalition Task Force patrolling the Gulf region and has supported the coalition's counter-piracy mission with a deployment of its flagship. In August 2019, Bahrain was the first country in the Gulf region to announce publicly that it had joined the U.S.-led International Maritime Security Construct to promote freedom of navigation in the region.

The U.S.-Bahrain Free Trade Agreement (FTA) entered into force in 2006, generating additional commercial opportunities for both countries. In 2021, U.S.-Bahrain two-way trade exceeded $2 billion, up from $1.5 billion in 2020. The primary U.S. exports to Bahrain include aircraft, machinery, and motor vehicles. The leading U.S. imports from Bahrain include aluminum, oil, textiles, and plastics. In 2019, the United States accounted for 12.4% of Bahrain's non-oil exports.

Bahrain has an elected lower house of parliament, the Council of Representatives (COR), and an appointed upper house, the Shura Council. Bahrain last held elections for the COR and municipal councils in November and December 2018. The United States supports Bahrain's efforts to develop the parliament's institutional capacity and encourages inclusive and transparent governance.

U.S. assistance enables the Bahraini government to obtain the equipment and training it requires to provide for its own defense and to operate alongside U.S. air and naval forces. This assistance strengthens Bahrain's interoperability for regional security and counterterrorism cooperation, boosts its maritime defenses against smuggling and terrorism, and improves its ability to counter terrorism while respecting its international human rights obligations and commitments.

Bahrain's economy and trade

Bahrain's economy is largely dependent on oil and gas, with petroleum being the country's most exported product. However, Bahrain has been working to diversify its economy, and the oil and gas sector now makes up less than 20% of the country's GDP. The country has invested in banking and tourism, with Manama, the country's capital, being home to many large financial institutions. Bahrain's banking sector is very successful, with the country being named the world's fastest-growing financial centre by the City of London's Global Financial Centres Index in 2008.

Bahrain's other exports include aluminium, finance, and construction materials. The country has a successful aluminium smelter, which is the largest in the world with an annual production of about 1,500,000 metric tons. Bahrain also has a growing financial technology (fintech) sector, with the Central Bank of Bahrain introducing regulations in 2017 that enabled the launch of cryptocurrency and blockchain startups.

In terms of trade, Bahrain has a positive and stable investment climate, with the government taking a proactive approach to attracting foreign investment and business. The country has a bilateral investment treaty (BIT) and a free trade agreement (FTA) with the United States, which provide benefits and protection to US investors in Bahrain. Bahrain also has double taxation treaties (DTTs) in force with various countries and economies, including the United States, China, and the United Kingdom.

The country's total exports were worth USD 30 billion in 2022, while total imports were USD 22 billion. Bahrain's fiscal deficit averaged 11.3% of GDP in the decade leading up to 2022. The country's unemployment rate averaged 4.5% during this period, and inflation averaged 1.7%.

US regulations on peanut growing

Peanut cultivation in the United States has been subject to various regulations over the years, with restrictions on both personal and commercial growth. While it is not currently illegal to grow peanuts in the US, the plant is subject to heavier regulations than many other crops.

Historical Regulations

From the 1930s until 2002, peanuts were regulated by "the use of supply-limiting marketing quotas and price supports," according to the U.S. Department of Agriculture. These regulations were designed to stabilise prices and ensure farmers made a livable income. In 1949, the U.S. Congress made it illegal to grow peanuts without a federal license, and at one point, the government stopped issuing new licenses altogether.

Current Regulations

Today, growing peanuts for personal consumption is permitted, but commercial growth and sales are heavily regulated and require a license. Each state has different laws that must be followed, and some types of peanuts are the intellectual property of specific companies, making them illegal to sell without permission.

The 2002 Farm Bill requires that all peanuts marketed in the US be inspected and graded by federal inspectors or federally licensed state inspectors. The USDA has also appointed a Peanut Standards Board of industry members to advise on quality and handling standards for domestically produced and imported peanuts.

The US imposes regulations on peanut imports from Bahrain due to concerns about aflatoxins, a type of mould that can contaminate peanuts. Commercially sold peanuts are tested to ensure they are safe for consumption.

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