JEDDAH, 24 March 2004 — A large number of businessmen and women attended a seminar on the effects of joining the WTO on Saudi Arabia at the Jeddah Chamber of Commerce & Industry yesterday.
WTO membership reinforces Saudi position as an important trading nation, said Christopher Roberts, a former director of foreign policy at the British Ministry of Commerce and Industry, and currently a consultant with a law firm. But it also offered the flexibility to retain cultural idiosyncrasies — thus no one will force the Kingdom to import pork, he added.
He said it would, however, force the Kingdom to be competitive. “Investment is a seller’s market. Countries which offer the most attractive conditions will do best,” he said.
But businesses will benefit from WTO membership — expected as early as this summer — because it will mean lower cost of inputs for manufacturers, wider access to modern services, and cheaper imports for importers and consumers. But of course there will be more competition. “Studies show that across the board, liberalization benefits the consumer,” he added without giving details.
Julian Arkell, an expert on international trade and services policy, explained the core features of the General Agreement on Trade in Services. He pointed to the positive outlook for Saudi services, saying the benefits of GATS to services will be in helping develop synergies, ease the flow of service sector innovation, and the improve electronic commerce.
GATS benefits to manufacturers include the increase in value added from professional and business services inputs to goods production.
Responding to the concerns of the businesses big and small on competing with foreign suppliers, Arkell suggests following proven practices. Focusing on niche market specialties and joining forces with other exporters were also possible strategies, he said. There is no need to be afraid of the WTO; rather businesses should actively engage with it and influence trade policy formulation. “Identify which policies are holding you back so they can be negotiated,” he said.
