The Studies and Initiatives Center of Bahrain Chamber for Commerce and Industry (BCCI) has issued its report titled “Trade in Focus”, which offers a view of the trade relations between Bahrain and South Korea.
The report exhibits key trade indicators, and highlights potential sectors.
It has been growing continuously, as the volume of trade increased by 135% from 2017 to 2021.
Exports from Bahrain to South Korea exceeded imports for the first time in the past 5 years, and witnessed a 141% increase in 2021 compared to its 2020 levels.
The report indicated that in 2021, Bahrain’s top imported product was private cars, valued at $25 million, which constituted 11% of total imports.
The import value of this product increased by 230% compared to the previous year. The second most prominent imported product was other conductors over 100 V and under 11 mm wide, which also accounted for 11% of total imports and grew by 10693% compared to 2020.
While the third major import was pitch coke, which accounted for 8% of the total annual imports and grew by 77%.
As for Bahrain’s exports, the report stated that Bahrain exported $177 million worth of unwrought Aluminium alloys to South Korea in 2021, making it the top exported commodity.
This product accounted for 43% of total exports in 2021, and grew by 287% compared to 2020. The second major exported product was (U, I, H) sections, partially-worked, under 80 mm high, accounting for 20% of the total annual exports and witnessing an annual growth rate of 122%.
The third major product exported was unwrought Aluminium, not alloyed, accounting for 18% of total exports and growing by 562% compared to 2020.
The report highlighted that South Korea is one of Bahrain’s most prominent trade partners; in 2021, the country was Bahrain’s 6th top export partner and 14th top import partner. It has a highly-developed and technologically advanced $2 trillion economy, led by sectors such as electronics, telecommunications, automobile production, chemicals, shipbuilding, textile and steel. Promising sectors for cooperation between Bahrain and South Korea include electronics, ICT, automobiles, financial services and healthcare. It is also notable that South Korea is the seventh largest exporter of goods and ninth largest importer of goods worldwide.
Bahrain and South Korea have signed 4 agreements and 12 MoUs.
BCCI has conducted several Bahrain-Korea business forums to bolster cooperation and encourage joint investment in promising sectors.
To further increase trade, the GCC and South Korea officially announced the resumption of free trade negotiations between the two sides in January 2022. The goal is to reach an agreement within six months from the date of the first round of negotiations.
The free trade agreement will be comprehensive and will contribute to promoting economic growth in the involved countries.
Source: Bahrain News Agency