JEDDAH, 20 January 2004 — Saudi Arabia’s membership of the World Trade Organization is just a matter of time, WTO Director General Dr. Supachai Panitchpakdi announced in the last session of the Jeddah Economic Forum yesterday. It will almost certainly happen before the end of this year, he said. “After 10 years of negotiations, I see not a dim light at the end of the tunnel but an imminent reality,” he confided. The Kingdom would become a member “before the end of the year.”

It could be earlier. Dr. Arif Hussein, the WTO official in charge of the Saudi accession negotiations, was even more optimistic when he later told Arab News that although some serious issues are still outstanding, the move toward membership was “irreversible.” Negotiations may end by June, although it could be a little later, he said.

During the session some delegates wanted to know why it had taken so long. Dr. Supachai explained that it was a complicated process. China’s accession had taken 15 years. “The time it has taken is due to bilateral agreements that have to be reached before joining the world body,” added Dr. Fawaz Al-Alamy, deputy minister of commerce and industry for technical affairs who has negotiated the Saudi application. “When you’re negotiating you don’t publicize. You announce only when the negotiations end in success.”

Dr. Al-Alamy, who almost never made it to the final session because of a delayed flight from Riyadh, said he shared the view that Saudi industry and services will be affected by its joining the WTO. “In fact, agriculture and the legal sector will also be affected. But then this is a codified globalization and you’re following international law when joining the world trade body.”

“The Kingdom will reap the benefits from membership,” said Dr. Supachai earlier. “It will invigorate its private sector, help diversify its economy, and accelerate trade and investment. In fact, foreign direct investment will flow in five to six times its present rate,” Dr. Supachai said, adding that the Kingdom’s move to join the WTO was a reflection of its changing economy and the opening up of its market.

Dr. Al-Alamy said WTO membership involved both risks to a certain extent as well as advantages. “We’ve to discipline ourselves to tackle issues like dumping and settlement of disputes.”

The deputy minister countered claims about cultural and social changes ahead. Countries seeking WTO membership can protect certain areas of life such as religion, health, environment and security. He also dispelled fears that the private sector would be at a loss by the Kingdom joining the WTO. “When government negotiates, it’s also on behalf of its private sector. I fight on behalf of the private sector in the international arena. I’ve held 216 meetings with the private sector representing all categories.”

He added it was a “misconception” that oil was excluded from within the purview of negotiations. “There are 754 line items under negotiation, with the exception of a few that were part of the GATT (General Agreement on Trade and Tariff). We’ve also specified 49 items to be excluded from the purview of discussion including pork and alcohol that we don’t manufacture or consume.”

He said that small scale enterprises were an important sector and had been taken into account during negotiations. “We’ve to look more outward than inward. 148 markets will be open to our exports, and our exports can penetrate into many newer markets,” he added.