RIYADH, 2 September 2003 — Commerce Minister Dr. Hashim Yamani said yesterday that Saudi Arabia would benefit a great deal by joining the World Trade Organization.
He said the Kingdom had signed 14 bilateral agreements with major trading partners to ensure a seat on the WTO.
Saudi Arabia signed a landmark accord with EU Trade Commissioner Pascal Lamy on Sunday.
Spelling out the benefits of WTO membership, the minister said it would ensure its products increased access to world markets and strengthen the position of its companies.
“Saudi products will not be subject to anti-dumping tax and other unilateral measures,” he said.
The WTO will support the Kingdom’s economic reform programs and enhance Saudi economy’s openness, he added.
Yamani also noted the measures taken by the Kingdom to become an active member of the organization.
Meanwhile, the Kingdom is setting up special courts for financial and trade disputes while by mid-2004 parts of the telecommunications sector like mobile telephony will be opened up for foreign bidders.
Financial expert Motasher Al-Murshed told Arab News these measures would be in place before the Kingdom gears up its WTO accession bid at a special summit at Cancun (Mexico) from Sept. 10 to 14.
Al-Murshed said that as part of the economic reforms process special courts for financial and trade disputes are to be set up. At present, they are handled by the arbitration committee at the Ministry of Commerce.
He said the mobile phones segment in the telecommunications sector would also be opened up to foreign bidders. “The petrochemicals, and now telecom and gas, will be fully opened for overseas investors before entry into the WTO.”
The banking sector also needs to be liberalized, he said. “What we need is to open up for the large international investment banks. This way we will not only meet the demands of the WTO but also extend the benefit to our own financial markets.”
He said the Saudi capital market law also needs to be streamlined in the interest of promoting capital flow. “Currently the foreign investor can only sell or buy shares through the mutual funds which some banks have introduced. Once the capital market and its new rules are up and running, there will be substantial improvement in dealings with the Saudi stock market for all types of investors, foreign and local.”
Another area of concern for the Kingdom and other participants in the WTO round is how to immunize the trade body from the influence of corporate giants. According to a report released by Friends of the Earth International (FOEI), multinational companies have been making attempts to influence the decisions of the WTO.
