Al-Watan: Saudi Arabia and the WTO negotiations

The Saudi Arabian daily al-Watan disclosed yesterday the main European demands from Saudi Arabia in order to join the World Trade Organization, which are still pending between the two sides.

The paper quoted a well-informed source at the European commission that these demands are embodied in increasing the rate of foreign ownership in joint companies in Saudi Arabia to 51 percent during five years as well as increasing the rate of foreign participation of banks and insurance to 51 percent, noting that also among the American demands is to end old laws enacted in the area of trade and investment and adopt new laws that open the way for foreign participation and ensure the rights of such participation.

The source indicated that Saudi Arabia promised to find out understanding over the European demands and approving a balanced solution that gives rights and foreign freedom of participation at a rate that allow them to take part in decision making inside the economic establishments. The source explained that Saudi Arabia has attained a great progress towards resolving differences with the European Union especially drawing lists for industrial and agricultural items mutually agreed by the two sides on the ground of exempting them from custom fees.

For his part, the Saudi ambassador in Brussels Nasser Assaf said that recent negotiations between Saudi Arabia and the European Commission were positive, noting that his country also discussed the issues of canceling high customs fees to Europe's imports from the Gulf states of Aluminum and petrochemical products. The Saudi ambassador also stressed that the European side is committed to these fees under the pretext of protecting the European products from competition.