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Kingdom
Moves Closer to WTO Accession, Says Yamani
P.K. Abdul Ghafour, Arab News
JEDDAH,
12 October 2005 — Saudi Arabia has completed the requisite
documents for its accession to the World Trade Organization (WTO),
Minister of Commerce and Industry Dr. Hashem Yamani said yesterday.
“The
Saudi minister told a session of the WTO working team in Geneva on
Tuesday that his country had completed all it had been asked to do
by its trading partners to win WTO membership,” the Reuters
reported quoting high-level WTO sources.
Saudi
Arabia has already signed 38 bilateral agreements — including with
the European Union and the United States — and introduced 42 new
laws and regulations to bring its trade rules in line with those of
the WTO. Yamani expressed his confidence that the Kingdom’s
accession to the WTO would strengthen the economy, especially the
industrial sector. “The Kingdom’s imports and exports represent
about two-third of the gross domestic product, which is higher than
that of many other WTO member states,” he pointed out.
The
Saudi documents would be submitted to a key meeting on Oct. 28, the
sources said. At that session, the working team, which has steered
the marathon talks, is almost certain to support the package,
clearing the path for the Kingdom’s entry.
The
WTO General Council, the organization’s highest executive body, is
likely to endorse the Kingdom’s accession early November, paving
the way for Riyadh to attend the WTO’s Ministerial Meeting in Hong
Kong in December as a full member.
Last
month, Saudi Arabia signed a landmark trade agreement with the
United States. The bilateral pact requires the Kingdom to open its
markets to imports of more US farm and manufactured goods, as well
as service companies in sectors including banking,
telecommunications, energy, express delivery, transportation and
hotel and restaurant management.
Saudi
Arabia’s move to join the WTO has drawn mixed reactions from
businessmen. Fawaz Al-Tuwaijeri, who has investments in agriculture,
said WTO membership would have negative effect on the Kingdom’s
industrial and agricultural sectors. “Farmers will not get most of
the incentives they receive now,” he said.
He
said he feared that Saudi Arabia and other developing countries
would become dumping grounds for major producers like the US and
European countries.
Abdul
Nasser Al-Nahdi, another businessman, said investments in
agriculture and industry would suffer as a result of WTO accession.
“At least 60 percent of the agricultural and industrial projects,
especially the smaller ones, face bankruptcy following WTO accession
as they will not be able to compete with international firms,” he
pointed out.
But
Agriculture Minister Dr. Fahd Balghunaim described the WTO deal with
the US as a major achievement, adding that the world trade body did
not pose any threat to Saudi interests. He said WTO entry would
improve services and products.
The
minister also emphasized the WTO accession would not affect the
government’s support to farmers. “The government aid received by
the agricultural sector now is much less than what is allowed by WTO
regulations,” he said, adding that the government would continue
to support the agricultural sector. Dr. Muhammad Al-Mutlaq,
executive director of Al-Mutlaq Group, described the Kingdom’s
efforts to join the world body as “a courageous move.”
Reprinted
with permission of Arab
News. |
