RIYADH, July 6: Bahrain’s parliament ratified on Wednesday a controversial free trade agreement with the US, the first between Washington and a Gulf Arab state that had already generated much heat with Saudi Arabia.

Bahrain is proceeding ahead with the FTA with the US despite the fact that its economy to considerable extent depends on Saudi Arabia. The US 5th fleet is also stationed in the tiny kingdom of Bahrain. Saudi Arabia has been contesting the signing of separate free trade agreements between the GCC member states and the US on ground that it would compromise the bargaining position of the GCC in dealing with the issue as a bloc with the US. It would compromise their individual interests ultimately, it has been saying.

Saudi businesses also appear apprehensive of any such arrangement fearing US products may inundate the Saudi market via Bahrain. The issue of individual FTAs with the United States is one of the major issues plaguing the six-member Gulf cooperation Council - which some say has outlived its utility now.

The deal, between the US and Bahrain was signed in September last year, will now go the country’s upper house, the shoura council, and must be approved by the king before it goes into effect.

The US Congress is also yet to ratify the accord.