ExecutiveOrdersEO
Proc 8039ProclamationG.W. Bush · R Quiet signal

Proclamation 8039

To Implement the United States-Bahrain Free Trade Agreement, and for Other Purposes

This proclamation implements the U.S.-Bahrain Free Trade Agreement by modifying the Harmonized Tariff Schedule to establish preferential tariff treatment, rules of origin, and tariff-rate quotas. It also removes Bahrain from the Generalized System of Preferences, authorizes the Secretary of Commerce to create an office for dispute panel assistance, delegates textile enforcement authority to CITA, and updates U.S.-Singapore FTA rules of origin effective August 1, 2006.

Federal Register Open PDF 71 FR 43635

Impact dates

  1. USSFTA rules of origin modifications effective for Singapore goods

  2. HTS modifications effective per dates in Annex II of Publication 3830

  3. Secretary of Commerce to establish/designate office under section 105(a)

Key directives

  • Modify HTS per Annex I of Publication 3830 for USBFTA implementation
  • Modify HTS per Annex II of Publication 3830 with staged duty reductions
  • Secretary of Commerce to establish/designate office for USBFTA Chapter 19 panel assistance
  • CITA authorized to exclude textile/apparel goods, verify enterprise statements, find circumvention, deny preferential treatment
  • CITA authorized to review and act on textile/apparel safeguard requests
  • Modify general note 25 to HTS for USSFTA rules of origin
  • Make technical corrections to HTS per Annex II

Who is ordered

Timeline

Immediate

  • HTS modifications for Bahrain FTA take effect per Annex II dates
  • Bahrain removed from GSP beneficiary list
  • CITA authorized for textile enforcement actions

Near term (90d)

  • August 1, 2006: Modified USSFTA rules of origin take effect for Singapore goods
  • Secretary of Commerce to establish/designate office for Chapter 19 panel assistance

Long term

  • Staged duty reductions for Bahraini products per Annex II schedule
  • Potential textile/apparel safeguard relief proceedings under sections 321-328
  • Ongoing preferential tariff treatment contingent on compliance with rules of origin

Risks & tensions

  • Textile/apparel safeguards (sections 321-328) may generate trade disputes with Bahrain
  • Delegation of broad CITA enforcement authority creates implementation uncertainty
  • Staged duty reduction schedule in Annex II not specified in text—actual calendar dates require cross-reference to Publication 3830
  • Supersession clause (paragraph 11) may create confusion with prior proclamations but scope limited to inconsistencies
Proclamation 8039: To Implement the United States-Bahrain Free Trade Agreement, and for Other Purposes · Executive Orders