WTO and Regionalism & Saudi Investment

WTO and Regionalism & Saudi Investment

Introduction

For the last ten years, Saudi Arabia has been negotiating for its entry into the World Trade Organization. The objective has been fulfilled now, but what next? The WTO membership promises to ensure orderly development of trade in products and services and a new impetus for economic growth through larger inflow of foreign capital. While these long-term goals are ideal, there is no denying the fact that different non-oil sectors of the economy will have to face increasing competition and, therefore, they should be vigilant in the short run and re-adjust their operational pattern to move with the times. This period of adjustment may be painful for some sectors, as has already been seen from the global experience hitherto. This adjustment process in any case can be turned into a painless exercise, if timely action is taken to prevent possible pitfalls. Prevention is after all better than cure. It is with this purpose in mind that SAUDI COMMERCE has planned a series of studies on "WTO and its impact on the Saudi economy," which will enlighten different sectors about the possible pitfalls as well as new opportunities under the WTO regime(www.saudiembassy.or.jp).

Discussion

Saudi Arabia will comply with all obligations under the WTO Agreement on Technical Barriers to Trade from the date of accession without recourse to any transition period. This agreement is specifically created under the WTO, to reduce non-tariff barriers affecting international trade. To implement its obligations under this agreement, Saudi Arabia has enacted new legislation and established new institutions and procedures to ensure transparency and non-discrimination, and to avoid the creation of unnecessary barriers to international trade as follows:

• Saudi Arabia has issued the Technical Directive of the Saudi Arabian Standards Organization (SASO) on 18 July 2000, and amended on 19 July 2005, as the basis of the new, WTO compliant system(www.ameinfo.com).

Saudi Arabia has established procedures to ensure that public notice is given of proposed standards, technical regulations and conformity assessment procedures, and an opportunity to comment provided on the drafts. These include:

The mandate that SASO would follow the Code of Good Practice for the preparation, adoption and application of standards;

The establishment of a non-discriminatory and cost-based fee structure for assessing the conformity of products;

The application of national treatment and non-discrimination with respect to products in the context of development and application of technical regulations and conformity assessment ...