JEDDAH, 12 October 2005 — Saudi Arabia has completed the requisite documents for its accession to the World Trade Organization (WTO), Minister of Commerce and Industry Dr. Hashem Yamani said yesterday.
“The Saudi minister told a session of the WTO working team in Geneva on Tuesday that his country had completed all it had been asked to do by its trading partners to win WTO membership,” the Reuters reported quoting high-level WTO sources.
Saudi Arabia has already signed 38 bilateral agreements — including with the European Union and the United States — and introduced 42 new laws and regulations to bring its trade rules in line with those of the WTO. Yamani expressed his confidence that the Kingdom’s accession to the WTO would strengthen the economy, especially the industrial sector. “The Kingdom’s imports and exports represent about two-third of the gross domestic product, which is higher than that of many other WTO member states,” he pointed out.
The Saudi documents would be submitted to a key meeting on Oct. 28, the sources said. At that session, the working team, which has steered the marathon talks, is almost certain to support the package, clearing the path for the Kingdom’s entry.
The WTO General Council, the organization’s highest executive body, is likely to endorse the Kingdom’s accession early November, paving the way for Riyadh to attend the WTO’s Ministerial Meeting in Hong Kong in December as a full member.
Last month, Saudi Arabia signed a landmark trade agreement with the United States. The bilateral pact requires the Kingdom to open its markets to imports of more US farm and manufactured goods, as well as service companies in sectors including banking, telecommunications, energy, express delivery, transportation and hotel and restaurant management.
Saudi Arabia’s move to join the WTO has drawn mixed reactions from businessmen. Fawaz Al-Tuwaijeri, who has investments in agriculture, said WTO membership would have negative effect on the Kingdom’s industrial and agricultural sectors. “Farmers will not get most of the incentives they receive now,” he said.
He said he feared that Saudi Arabia and other developing countries would become dumping grounds for major producers like the US and European countries.
Abdul Nasser Al-Nahdi, another businessman, said investments in agriculture and industry would suffer as a result of WTO accession. “At least 60 percent of the agricultural and industrial projects, especially the smaller ones, face bankruptcy following WTO accession as they will not be able to compete with international firms,” he pointed out.
But Agriculture Minister Dr. Fahd Balghunaim described the WTO deal with the US as a major achievement, adding that the world trade body did not pose any threat to Saudi interests. He said WTO entry would improve services and products.
The minister also emphasized the WTO accession would not affect the government’s support to farmers. “The government aid received by the agricultural sector now is much less than what is allowed by WTO regulations,” he said, adding that the government would continue to support the agricultural sector. Dr. Muhammad Al-Mutlaq, executive director of Al-Mutlaq Group, described the Kingdom’s efforts to join the world body as “a courageous move.”
