Capital Goods

• Trade and Tariffs
• Tariff Elimination

Trade and Tariffs

The capital goods sector includes the agricultural and construction equipment sectoral initiatives, as well as other machinery and equipment products. Capital goods accounted for 25 percent of total U.S. non-textile industrial exports to Bahrain in 2002, totaling $39.2 million . Compressors used in refrigerating equipment lead U.S. exports in this sector.

Bahrain applies a uniform tariff of five percent on capital goods. Bahraini exports of capital goods to the United States are minimal. The United States imposes tariffs on capital goods of 0 to 14 percent, with an average of 1.8. The highest tariffs are applied to railway cars.

Tariff Elimination

Both sides will eliminate duties on imports of capital goods from the other Party immediately upon implementation of the Agreement.