JEDDAH, 13 November — Arab countries should anticipate many disadvantages if they join the World Trade Organization, but if they remain outside the world body their situation will be much worse, according to Prince Talal ibn Abdul Aziz, president of Arab Gulf Fund for the United Nations Development Program (AGFUND).
"The WTO represents a challenge to the developing countries; it is not a monster threatening to devour us as some people try to portray. Being smart here means being able to reap the maximum benefits while seeking to minimize the threats," Prince Talal told a recent business conference in Kuwait.
Like other developing countries, Arab states have serious misgivings about the trade agenda being promoted by rich countries, especially the United States and the European Union.
However, 10 of the 22 Arab League members are already in the WTO. Arab delegates attending the WTO conference in Doha, Qatar, said they would lobby for the entry of five others, including Saudi Arabia, Algeria, Lebanon, Sudan and Yemen, which presently enjoy observer status.
Arab ministers attending the Doha talks voiced support for the launch of a new round of international trade talks despite earlier reservations.
By remaining outside the WTO, oil-producing countries allowed consumer countries the freedom to manipulate the oil market.
Prince Talal cited the example of the carbon tax imposed by the European countries on petrochemical imports from Gulf countries. He said although such a move might look handsome considering the environmental concerns, it represents an injustice toward the producing countries.
"We are convinced by your justifications (the environmental criteria) for ensuring a cleaner environment. Yet, we see no reason why this should be done at the expense of our best interests," he said.
Prince Talal sees investment in petrochemicals as the best choice for Saudi Arabia and other Gulf countries to expand their export base.
Demand for petrochemicals is expected to soar in the future, and this in turn will lead to an increase in oil demand.
"The picture is not bleak for the Gulf states. On the contrary, prospects for these countries are far better than they are for developing countries in other regions," Prince Talal said.
He also talked about agriculture, which continues to be a contentious issue at WTO talks, as a vital area for Arab countries.
He said food imports by Arab countries would increase substantially in the near future. The current food import bill of $11.3 billion will jump to $15 billion in a few years.
WTO figures show that agriculture exports from the Middle East represented a mere 2.4 percent of the world’s total farm trade in 2000 while the region’s imports stood at 13.1 percent. Arab countries, especially Morocco, Egypt and Tunisia, have complained of high subsidies on farm products and export ceilings in their main market, the European Union.
