Sheikh Sa’ad Mohammed Al-Moajil is one of Saudi Arabia’s trading pioneers. He began 70 years ago on camels between Nejd and the Eastern Province. Sheikh Al-Moajil, now a leading businessman, owns and manages diversified businesses which include trade, industry, services and export/import. About the World Trade Organization (WTO), Sheikh Al-Moajil, said: “The WTO enables the big to take over the small and the powerful to squeeze the powerless. The Kingdom’s joining the WTO is almost compulsory, even if it isn’t in our interest. The question is: Is it in our interest not to be in the body? In my opinion, this is like facing a devil which you can’t ignore.”
If this is true, it means the WTO will exercise its influence upon us whether we join or not. We therefore have to consider closely the steps to be taken so as to avoid the negatives and benefit from the positives of WTO membership. The WTO already has more than 141 members which control nearly 85 percent of world trade. The Uruguay meeting produced important results in terms of trade in services, patent ownership, transit operations, regulating relationship between members, settlement of disputes and monitoring jurisdictions.
Weak members in the future will gain strength by collaborating with others or entering into side agreements without fear as the WTO is a controlling economic umbrella which monitors bilateral agreements and jurisdictions. In order to give an example of the importance of agreements, we refer to the famous banana war which broke out between the US and the European Union (EU). The American firm won and the EU could do nothing but yield.
The annoying thing is that we, individuals and firms, talk behind close doors about joining or not joining the WTO, discussing conditions and terms, evaluating positives and negatives, while the government is mobilizing all its resources for negotiating the best possible agreement for us.
Prince Naif’s statement was clear “We must know the benefits and the costs which will be incurred .. and that negotiations must be in line with the Kingdom’s basic beliefs and policies and that we have to be prepared for the period following the Kingdom’s joining the WTO with a clear strategy to be achieved.” In order to best serve the country Saudi businessmen will have to concentrate on new activities. They should include independent and non-independent activities in industry, tourism, patent ownership, trade marks, concessions, electronics technology and their applications. Importantly, we are to study the viability of these schemes the very commercial grounds which will produce profits and create new jobs.
For example, the possible lifting of subsidies on agricultural products by the EU, US and others will lead to price increased for exported products such as meat and fish. We should not look at this negatively but we should evaluate other positives by exploring and encouraging agricultural schemes in the Kingdom.
Situations can be changed to our benefit provided that we can overcome problems related to irrigation water shortage and the insufficient numbers of farmers. The government is negotiating terms to protect the national economy from attack by international companies so it is our duty as businessmen to evaluate our shortcomings and deficiencies and work for alternatives in order to move the economy forward in both quantitative and qualitative aspects.
At this point we can operate locally in the manner we choose and can export because we are strong and prepared.
We should make a firm stance to face global moves; it is imperative that we strengthen our ties with friendly countries who can stand with us in times of need. Saudi Arabia must enter a large number of agreements including free zones that are potential markets for its economy.
