RIYADH, 3 October — Saudi Arabia and Germany have agreed to endorse a major treaty on the avoidance of double taxation of air transport enterprises. The two countries are also working to finalize a maritime shipping agreement against the backdrop of the growing trade relations between the two sides and the importance of maritime traffic.
This was disclosed here yesterday by German Ambassador Dr. Harald Kindermann, who was speaking on the occasion of his country’s National Day.
“The Kingdom and Germany have agreed in principle on the draft text of a bilateral agreement on the avoidance of double taxation of air transport enterprises,” Kindermann said and added that the accord is likely to be signed in Riyadh in the near future.
Asked about the maritime agreement, he said that Riyadh and Bonn have started negotiations on the draft agreement. “Founded on the principles of reciprocity, the accord proposes regulations for shipping companies and the use of ports and territorial waters ,” he noted.
These two agreements will further boost the already strong relations between the Kingdom and Germany, Kindermann said.
With total exports of DM5.15 billion, Germany replaced Britain as the third largest exporter to Saudi Arabia last year, trailing closely behind the US and Japan. Saudi Arabia remains Germany’s most important trading partner in the Arab world.
Despite a sluggish economy, bilateral trade continued its upward trend in 2000, reaching a record DM7.3 billion. In the same year, the value of German imports from Saudi Arabia rose to DM2.15 billion. In the first half of 2001, German exports to Saudi Arabia touched DM2.66 billion and imports totaled DM782 million.
Asked about the German position on the Middle East peace process, Kindermann said that the recent talks between Crown Prince Abdullah, deputy premier and commander of the National
Guard, and German Chancellor Gerhard Schroder have demonstrated that both countries perceive the Middle East conflict to be a threat to world security and stability, not only in the Middle East region alone.
“Both countries have identical approaches on this issue and both will lend their support to all efforts likely to contribute to ending the ongoing violence between Palestinians and Israelis,” said the diplomat, adding that Germany and her partners in the EU, the US, Russia and the United Nations, as well as other countries in the region will continue to cooperate to achieve a lasting peace in the Middle East.
