Transcript Kazakhstan`s Role In A Globalizing World

Key WTO Issues from the Perspective of a
Recently-Acceded Member: The Experience of
the Kingdom of Saudi Arabia
H.E. Dr. Abdolazeez S. AL-OTAIBI
Ambassador and Permanent Representative to the WTO
Kazakhstan's Role In A Globalizing World:
Trade And Investments
Astana, Kazakhstan
4 September 2014
Benefits and Challenges
of WTO Membership
• The Kingdom of Saudi Arabia joined the WTO in
2005 after 12 years of challenging negotiations.
• We learned a great deal about the benefits and
challenges of the WTO during our accession
process.
• The Kingdom’s economic progress since 2005
shows a positive correlation between WTO
membership and economic growth.
• We strongly support Kazakhstan’s bid to join the
WTO on fair terms and the completion of your
negotiations as soon as possible.
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Benefits of Membership
• As for the Kingdom of Saudi Arabia’s progress
since WTO accession, major indicators have
improved rather markedly since our WTO
accession due to the efforts of the Kingdom and
the positive association between WTO rules and
economic growth.
• The following slides show indicators of our
progress.
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World Bank Indicators of
Saudi Arabia’s Economic Performance
US$ billion
WTO Accession
800
US$
60,000
700
50,000
600
40,000
GDP (current billion US$)
30,000
Exports of goods and services
(current billion US$)
20,000
GNI per capita, PPP (current
international US$)
500
400
300
200
10,000
100
0
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: World Bank Economic Indicators
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World Economic Forum Indicators –
Post-WTO Accession Ranking
WTO Accession
2007-2008
2012-2013
0
10
20
Global Competitiveness Index
30
IP Protection
Goods Market Efficiency
40
50
60
Source: World Economic Forum – Global Competitiveness Reports
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Investment – into KSA
$ million
WTO Accession
250,000
200,000
150,000
Inward Investment Stock
(Millon US$)
100,000
50,000
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: UNCTAD World Investment Reports
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Non-oil Exports
SR million
WTO Accession
250,000
200,000
150,000
Non-oil exports (million SR)
100,000
50,000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Saudi Arabia Central Department of Statistics and Information annual export statistics reports
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Importance of WTO Rules for
Key Saudi Arabian Exports
• Saudi Arabia is diversifying its economy and exporting steel
and petchem products.
• These sectors represent 62% of all AD cases and 57% of all
CVD cases.
• Saudi Arabia has faced such investigations but avoided
restrictions on our trade due to a proactive approach,
which relies on WTO-based rules.
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total
HS section name
VI Products of the chemical and allied industries
VII Resins, plastics and articles; rubber and articles
XV Base metals and articles
Total
1995
Anti-dumping Initiations: By Sector 01/01/1995 - 31/12/2013
31
20
43
157
42
26
39
226
21
36
64
246
24
33
111
264
74
40
111
359
63
24
109
296
67
56
137
372
96
40
96
311
73
24
53
234
49
44
38
220
37
37
39
200
39
24
31
203
56
16
24
166
34
21
70
218
47
31
52
217
44
24
43
173
29
13
58
165
34
40
76
209
48
41
93
283
908
590
1287
4519
7
1
9
3
15
1
6
2
8
3 3 6
2
2
10 11 12
25 23 33
Total
2013
2010
4
9
2012
2009
1 3 4
2 1 4
3 7 11
11 16 28
2011
2008
2
2007
2002
2
3
8
4
2006
2001
2003
2000
1999
1998
1
2
4 7 2 2
7 12 20 11 14
16 25 41 18 27
2005
10
2
2004
1
1997
1996
HS section name
VI Products of the chemical and allied industries
VII Resins, plastics and articles; rubber and articles
XV Base metals and articles
Total
1995
Countervailing Initiations: By Sector 01/01/1995 - 31/12/2013
31
30
131
335
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Source: WTO Secretariat
Summary of Benefits of Membership
• The above evidence shows that WTO accession has supported
positive growth in the Saudi economy for almost 10 years –
notwithstanding the global financial crisis.
• The average person on the street benefits from WTO
protections through:
– export-related jobs,
– enhancement of consumer welfare, and
– access to high-quality, affordable products and services in the market,
whether insurance or banking services, local industrial production, or
others.
• Benefits depend on wise leadership in parallel to WTO rules.
– King Abdullah oversaw the reform of more than 40 laws and
regulations.
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Challenges in the Accession Process
• Requests for “WTO-plus” commitments:
– Saudi Arabia’s response: focus on WTO disciplines and
the actual commercial interests of trading partners.
• Acquiring necessary WTO/trade expertise:
– Saudi Arabia’s response: create public-private
partnerships and utilize trainings from the WTO and
others.
– Fortunately, Kazakhstan already has strong leadership
and a deeply knowledgeable and competent
negotiating team.
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Issues for New Members
• Compliance with obligations:
– Ensure that implementation of obligations and new government
measures are consistent with WTO rules.
– May require new administrative mechanisms, increased
knowledge of WTO disciplines, and vigilance to avoid problems.
• Monitoring of trading partners’ actions and advancing
national interests:
– Use WTO rules both proactively and defensively to protect
national economic interests, especially in cases where exports
are restricted by measures that might violate WTO obligations.
– Find groups of countries with shared interests for cooperation in
negotiations and in day-to-day administrative work at the WTO.
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The Status of the DDA
• The absence of a conclusion to the Doha
Development Agenda:
– Important systemic impacts on the credibility of the
WTO. Rules of the past must be updated to respond to
the needs and expectations of developing countries.
– A failure of the DDA is a failure to deliver on the
promise to correct the imbalance between the
obligations of acceding countries and less ambitious
commitments by existing Members.
– Existing Members have a special responsibility to
conclude the DDA on fair terms for all Members.
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Two Points in Conclusion
• Saudi Arabia’s WTO accession has supported
our economic development and
diversification.
• Kazakhstan’s WTO accession is in Saudi
Arabia’s interest, and we support your efforts
to join as an equal and important Member.
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THANK YOU
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