Saudi Arabia to start talks with WTO

Saudi Arabia will start commercial talks with the World Trade Organization next year, part of a bid to join the world body, Saudi Industry and Electricity Minister Hashem Yamani said on August 5.

He said, "I expected the kingdom to start at the beginning of 1998 bilateral negotiations with some WTO member states that had asked to discuss with the kingdom some commercial issues including custom tariffs and foreign investment in the services sector."

Saudi Arabia says it hopes to join the WTO as an observer next year and become a full member by the year 2002.

The world’s largest oil producer applied in 1993 to join the trade watchdog’s predecessor, GATT. They have since held three rounds of talks. Saudi Arabia is eager to diversify its oil-dependent economy and is seeking to join the WTO on the favorable terms granted to developing countries. It has repeatedly said it was taking measures to encourage foreign inflows, including steps to provide protection for foreign investment and ease bureaucratic obstacles to the licensing of foreign projects.

It is also reviewing its foreign capital law to introduce more incentives to foreign investors in a country where most foreign capital is invested in joint ventures with Saudi firms.