WTO and Saudi Arabia

Student: Aljoharah AlbasriInstructor :Dr.Rehana Parveen

The WTO

Background

• There was the Great Depression and World War II.– Protectionism World trade suffered.– World powers got together to put an end to that.

• First attempt the General Agreement on Tariffs and Trade (GATT) in 1948.

• Second attempt the World Trade Organization (WTO) in 1995.

Establishment

• The WTO facilitates trade between nations.• Located in Geneva, and it came into being on

January 1 1995.• The WTO is the only international organization

that produces binding international law for its members.

• Its objectives:1. Reduction of tariffs; 2. Reduction of other forms of trade barriers; and3. Elimination of discrimination.

Saudi Arabia

Saudi Arabia’s Purpose of Joining the WTO

• The country knew the the prices of oil would eventually drop need for diversification.

• Benefits of joining the The WTO: 1. Access to trade agreements with the other 148

WTO members;2. Protection against discriminatory trade policies

of other countries; and3. Economic reform.

Saudi Arabia’s accession to the WTO

• Saudi Arabia became 149th member of WTO on 11 December 2005 after 12 years of negotiations.

• Before membership Saudi Arabia had an "Observer" status.

• After membership, Saudi Arabia signed an agreement with the WTO that consisted of:1. Schedule of Concession and Commitments on Goods;2. Schedule of Specific Commitments in Services; and3. Report of the Working Party.

The Main WTO membership requirements from Saudi Arabia

• Intellectual property rights;• Decreasing tariffs;• Eliminating discriminatory practices;• Access to the Kingdom’s markets;• Equal treatment between foreign and local

investors;• Foreign participation in service sectors; and• Transparency in trade issues;

The impact of the WTO membership on the Saudi Arabian economy

• Non-oil private sector activity.• Gross Domestic Product (GDP)• Gradual growth seen in the development of non-oil private

sector over the years:

Thank you for listening!