RIYADH, 8 November — Canada has reaffirmed its policy to support the immediate accession of Saudi Arabia to the World Trade Organization (WTO) before the opening of a crucial WTO ministerial conference in Doha tomorrow.

The Kingdom and Canada have agreed to sign a bilateral agreement within the framework of the WTO provisions after holding final negotiations on tariffs, access to service sector and opening of Saudi insurance industry.

Leonard J. Edwards, Canadian deputy minister for international trade, announced at a press briefing yesterday that Ottawa will support the Kingdom, which will be attending the WTO conference as an observer.

Edwards will fly to Doha today to join the 60-member Canadian delegation to the five-day WTO meeting. The press briefing was also attended by Canadian Ambassador Melvyn L. MacDonald and Third Secretary Yves Duval.

Edwards, who arrived here on Sunday in a renewed move to promote bilateral economic cooperation, held wide-ranging talks with Commerce Minister Osama Faqeeh, Deputy Commerce Minister Dr. Fawaz Al-Alami and Deputy Foreign Minister for Economic Affairs Dr. Yusuf Al-Sadoun during this trip. He also renewed the invitation to Crown Prince Abdullah, deputy premier and commander of the National Guard, to visit Canada later next year.

Asked how his country will support Saudi Arabia as a candidate for WTO membership, he said that Ottawa’s arguments will strengthen the case of Saudi Arabia and other Arab countries at the Doha conference.

The trade liberalization should not come at the expense of the country’s religious laws, social and economic factors, said the minister, while asked about opposition from certain countries hampering the Kingdom’s plans to join WTO sooner.

Press reports recently quoted Deputy Minister Dr. Al-Alami as saying that the Kingdom would not compromise Islamic principles to win WTO entry.

“We will not pay a heavy price to join WTO. This will be according to the Shariah which serves Islam and Muslims,” Al-Alami, a negotiator for the Kingdom's WTO bid, said.

But officials said adherence to Islamic principles was not the only main obstacle for Saudi Arabia, one of the world's four largest economies still outside the WTO and the only Gulf Arab state which has not yet joined the body.

A few months ago, officials said that Saudi Arabia had made substantial headway in meeting entry requirements, and would probably be in the WTO by the end of 2001.

Among Arab states, Saudi Arabia, Sudan, Algeria, Lebanon, Yemen and Syria are currently candidates for the WTO membership. A total of 16 countries out of Arab League’s 22 members, including Bahrain, Djibouti, Egypt, Jordan, Kuwait, Mauritania, Morocco, Oman, Qatar, Tunisia and the UAE, are already members.

Referring to the progressively growing relations between the Kingdom and Canada, Edwards pointed out that the two sides have decided to hold the Saudi-Canadian Joint Economic Commission meeting on June 10 next year in Ottawa.

“This will help our commercial relations to grow. Our business relations, however, have not been strained despite the adverse global impact of terror attacks on the US,” said the Canadian aide. He also referred to Canada’s interest in Saudi railway and mining projects.

“Saudi Arabia has emerged to be the largest trading partner of Canada in the Middle East,” said the minister, adding that the two-way trade exceeds 1.2 billion Canadian dollars annually.

On the investment front, the two countries have forged closer relations. Saudis are believed to have considerable investments in Canada mostly in equities and real estate.

Total Canadian investment in the Middle East was close to 1.2 billion Canadian dollars in 1999.