The business to business connection between the United States and Saudi Arabia, an important part of the historic relationship, has lost ground in recent years. When Ambassador Chas Freeman talked with SUSRIS this summer about the America's ties with the Kingdom he discussed the business component:
"..there is indeed a serious decline in US market share in Saudi Arabia. The overall level of US exports in absolute terms is fairly constant; it�s about $6 billion or so in exports a year. However, the fact that our exports to Saudi Arabia are constant should not be a source of satisfaction because over the past five years Saudi Arabia�s economy has grown by about two thirds, and the exports of other countries to the Kingdom have grown proportionately.. ..we have been under performing in the market. What this suggests is that Americans are foregoing opportunities or being denied them as a result of various impediments to business transactions and cooperation."
The question of commercial ties also came up when SUSRIS talked with Assistant Secretary of State [Near Eastern Affairs] Welch in March. He said, "As the kingdom looks at globalizing its economy, now that it is entering the WTO, and looking down the road to how it develops its commercial and other relationships with the outside, we intend to play a big part. This is an area where we have a very strong commercial interest."
With those comments in mind it is important to note that the Department of Commerce/International Trade Administration is organizing a trade mission to the Kingdom. Today we are pleased to share an article that appeared in
Arab News today outlining the visit.
US Trade Delegation to Visit Kingdom
Mohammed Rasooldeen, Arab News
RIYADH, 21 September 2006 � The United States will send an official trade delegation to the Kingdom after the holy month of Ramadan, Israel Hernandez, Assistant Secretary and Director General of the Trade Promotion and Commercial Service
[US Department of Commerce/International Trade
Administration], announced at a reception hosted yesterday in his honor by the
US-Saudi Arabian Business
Council.
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Hernandez who is on a brief visit to the Kingdom met Custodian of the Two Holy Mosques King Abdullah in Jeddah on Tuesday. Senior officials of the
Riyadh Chamber of Commerce &
Industry, prominent businessmen in the capital and US Ambassador James C. Oberwetter were present at the reception held at the Equestrian Club.
�The time is ripe for a US delegation to the Kingdom to strengthen the bilateral trade relations between the two countries, Hernandez said, describing the Kingdom as a strong voice in the region.
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�For the past 30 years we have grown together and this is the time that we need to have person to person dialogue to enhance the relations.�
He noted that with such a meeting, the US and Saudi businessmen could continue their dialogue and identify new areas of joint ventures in the Kingdom.
�We have 1,700 specialized companies and 100 trade offices to promote foreign trade and investment in the US and I will bring the best people here to promote trade in the Kingdom,� he said.
He said the structure and the composition of the delegation are yet to be decided and hoped that the intended visit will open new areas of cooperation in the field of trade.
During the audience with the king, he discussed the steps that could be taken to pursue the economic dialogue following President George W. Bush and King Abdullah�s last talks. Describing the
Kingdom�s accession to the World Trade Organization (WTO) as a remarkable entry, he said: �The WTO has become stronger with the Kingdom�s admission. The entire international community was supportive of the Kingdom�s entry into this organization.�
Regarding the issuance of visas to Saudi businessmen seeking entry to US, he said that he would help find the best solution to ease this problem.
�The Saudi businessmen have given me a set of recommendations and that issue will be settled in the coming months to facilitate quick issuance of visas,� he said. �The purpose of the proposed delegation is to keep the bilateral business relations intact,� said Oberwetter, pointing out that the two-way relations are progressing at a good pace and they have improved over the past two years without any impediments.
Hussein Al-Athel, secretary general of the Riyadh Chamber of Commerce and
Industry, told Arab News that this is a good development in the Saudi-US trade relations.
�An official US trade delegation is to come to the Kingdom after a lapse of one year,� he said. �This shows that things are falling into right places.�
Saudi Arabia is the United States� largest trading partner in the Near East and North Africa and it is the 17th worldwide. Additionally, the United States remains Saudi Arabia�s largest investment partner with close to $9.3 billion in foreign direct investment (FDI). As of 2005, the United States exported $5.56 billion worth of goods to the Kingdom while its imports from the Kingdom stood at $26.1 billion.
Source: Arab News
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