Saudi Arabia's Accession to WTO: Future Challenges
12 Pages Posted: 16 Jan 2007
Date Written: January 15, 2007
The membership is supposed to help access to markets in other countries under more beneficial conditions, serve as an important signal to foreign investors regarding stability and predictability of the economic system, decrease risk factors for potential investors, develop trade economy, modernize industry and reform the economic legislation.
Saudi Arabia, the world's largest oil exporter and one of the world's largest 20 economies acceded to World Trade Organization (WTO) on December 11, 2005 as 149th Member after 12 years of strenuous negotiations and multilateral trade agreements. For the Kingdom, which is unique in its socio-economic-religious fabric from the remaining 148 members of World Trade body, the accession is considered to be a significant move, though the Kingdom is not new to international trade, which accounts for 70% of the country's GDP.
The article reviews the objectives behind the accession, reforms undertaken, the experiences of China and India which acceded to WTO during the last five and ten years respectively. Further, the article identifies the future challenges and develops broad strategies to realize the objectives of accession in the coming years.
Keywords: Global trade, reforms, free trade, challenges, economy, Foreign Direct Investment, Comparative Advantage
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