US - Saudi trade down 40% due to strained relations
Saudi Arabia-USA, Economics, 7/6/2002

American official statistics showed that economic relations between the US and Saudi Arabia, its main trade partner in the Middle East has been greatly damaged in the phase following the military operation carried out by the Israeli army in the West Bank in March, after a similar notable recession was scored in the phase following the attacks of September 11, 2001 against the US.

The American statistics indicated that the volume of trade exchange between the two countries decreased by more than 40%, while nthe umber of Saudi visitors to the US receded to unprecedented low rates.

The volume of the American exports, according to the statistics, decreased during the first four months of 2002 by 43%, reaching USD 1.3 billion in comparison to USD 2.3 billion for the same period of 2001.

Such a decrease appeared in particular at the level of consumer commodities like tobacco and drinks as a result of the Saudi boycott campaign of the American products. A campaign which witnessed great success in Saudi Arabia. The statistics indicated that the Saudi imports of drinks and tobacco cigarettes decreased during April of 2001 by more than 96% at a cost of USD 1.1 million for USD 26 million for April 2001. The take out restaurants in the US were also affected by this recession during the few past months. A situation which obliged them to give bids and make assurances to clients that the products used are of Arab and Saudi origin.

Saudi Arabia, however, is considered the second largest importer from the US following Israel, Its imports from the US in 2001 reached USD 6 billion, while Saudi Arabia is on the top list of exporters to the US as the value of these exports reached USD 13.2 billion in 2001.

The recession is not limited to US exportsto Saudi Arabia . The volume of Saudi exports to the US also decreased in the first period of 2002 by 28% and reached USD 3.5 billion against USD 4.9 billion during the same period of 2001.

Oil and its byproducts constitute almost 95% of the Saudi exports to the US. The statistics which were issued by the American embassy in Riyadh indicated that the number of Saudi travelers to the US decreased by 10% for business travel and 40% for families.

According to the American statistics, some 52,000 Saudis visited the US in 2001 and spent USD 400 million while number of Saudis who asked for US visas in the first four months of 2002 decreased into less half of what it had been before and reached only 46% of the figures of the same period of 2001.

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