JEDDAH, 30 August 2003 — Saudi Arabia came a step closer yesterday toward joining the World Trade Organization when it reached a landmark deal with the European Union, its largest trading partner.
A spokesman for European Trade Commissioner Pascal Lamy said in Brussels that the EU had agreed to back Saudi Arabia’s candidacy for the WTO.
“Mr. Lamy will leave for Saudi Arabia to sign the accord on Sunday. With today’s conclusion (of the accord) Saudi Arabia is a little closer to membership,” said spokesman Arancha Gonzalez.
To ensure its seat, Riyadh will now only have to conclude bilateral negotiations with the United States, its second largest trading partner.
The Kingdom has so far signed WTO accords with 10 major trading partners including Japan, Australia, Pakistan, Canada, South Korea, Mexico, Brazil and Argentina.
Saudi Arabia negotiated with the 15-member EU various sectors including telecommunications and financial services.
Oil giant Saudi Arabia originally applied to join the WTO’s predecessor, GATT, in 1993, but negotiations were never completed. Along with Russia, also an oil producer, it is one of the world’s few key economies still outside the WTO.
The EU is Saudi Arabia’s top trading partner with total bilateral trade turnover of around 27 billion euros ($29.5 billion) in 2002. The Kingdom is the only GCC country which is not yet a WTO member.
