RIYADH, 1 August 2003 — In a boost to the negotiations for Saudi accession to the World Trade Organization, the United States has renewed its pledge to work with the Kingdom and the WTO to ensure that Riyadh’s religious and cultural requirements are respected by the WTO provisions and by its trading partners, particularly with regard to the treatment of goods such as pork and alcohol which are banned here.
“The US will ensure that the WTO does not force any country to import or open its market for goods that are prohibited or banned on moral or religious grounds,” said a report entitled “Saudi Arabia Economic Trends 2002”, prepared and released by the American Embassy here.
The Kingdom has a list of restricted and banned items, which also include night binoculars, pictures that contradict the Shariah, frog meat, dogs, fats of certain animals and intoxicants besides alcohol.
Some of the banned products like alcohol and isotopes can be imported on certain conditions.
These products can be ordered from overseas when the Saudi Health Ministry certifies that they are specifically for medical purposes.
The US Embassy report also gives an overview of the economic situation with special reference to Saudi-US commercial relations and the WTO accession, which is a fundamental component of any long-term Saudi economic reform program.
The report said the Supreme Economic Council established on the initiative of Crown Prince Abdullah, deputy premier and commander of the National Guard, also seeks to reinvigorate the WTO accession process and the economic reform program.
“Though much work remains before the accession negotiations can be concluded, the US feels Saudi accession to the WTO will bring a wide range of benefits to the Kingdom and to the global economy as a whole.”
“Continued progress in domestic reforms that encourage transparency and the rule of law will boost Saudi Arabia’s position in its WTO accession discussions,” it said. It said the accession will also require Saudi Arabia to remove protectionist barriers, place a ceiling on tariffs, open further key service sectors for foreign participation and improve intellectual property rights protection. These changes will lead to an open, transparent and rule-based trade regime with greater capital flow from foreign and domestic investors.
Moreover, the WTO membership will entitle Saudi Arabia, on a permanent contractual basis, to all the benefits that have been exchanged among GATT and WTO members during the last 50 years. “Foremost among these is protection against the arbitrary exclusion of exports from Saudi Arabia to other WTO member nations,” said the report adding that “as long as Riyadh remains outside the WTO, its economic reform and diversification efforts will be severely handicapped.”
The report said that the annual population growth rate remained above three percent, with nearly 40 percent of the population born after the 1991 Gulf War. About 70 percent of the population are below the age of 30, indicating the growth of a “youth bulge” seeking employment in a country where nationalization or Saudizaton of its workforce and attempts by the public and private sector to cut dependence on foreign workers have faced many problems.
The report also points out certain shortcomings. “The Kingdom must take steps to ensure that there is a transparent and comprehensive legal framework in place for resolving commercial disputes. Foreign investors want convenient access to multiple entry-exit visas without a Saudi sponsor, access to a skilled and motivated workforce and protection of intellectual property that meets international standards,” it said.
