WTO A PRESENTATION TO KFUPM OCT 18, 2003 FAWAZ AL-ALAMY DEPUTY MINISTER OF COMMERCE & INDUSTRY KINGDOM OF SAUDI ARABIA

contents What is the WTO Accession process Bilateral negotiations 1. Goods 2. Services Multilateral issues 1. WPR 2. COMMITMENTS Legislation The SWOT Analysis A Cost-Benefit Analysis

WHAT IS THE WTO 1

THE THIRD SIDE OF THE TRIANGLE I M FW B W T O The Bretton Woods Institutions 2

A GLOBAL VILLAGE GATT 47, ONLY 27 CONTRACTING PARTIES WTO 95, 129 MEMBER COUNTRIES GATT, GATS, TRIPS & TRIMS TODAY, 148 COUNTRIES CONTROL : 80% OF WORLD TRADE 90% OF FINANTIAL TRANSACTIONS 92% OF TELECOM & IT 97% OF IPRs 3

A MEMBER-DRIVEN ORGANIZATION UNLIKE OTHER WORLD ORGANIZATIONS IDEAS – INNITATIVES – AGREEMENTS 28 AGREEMENTS & INNITIATIVES SINGLE UNDERTAKING PRINCIPLE 4 PILARS ; 1. MARKET ACCESS 2. NATIONAL TREATMENT 3. MFN & RECIPROCITY 4. TRANSPARENCY & PREDICTABILITY 4

A BORDERLESS WORLD MFN Principle Market Access & National Treatment K S A WTO COUNTRIES 5

THE ACCESSION PROCESS THE ART OF NEGOTIATION 6

CODIFIED GLOBALIZATION Protocol of Accession Bilateral Negotiations Multilateral Issues Legislation 29 Agreement 14 Signed WP Report Commitment Para's TRIPS Customs Valuation TBT & SPS Import Licensing 7

BILATERAL NEGOTIATIONS THE CONFRONTATION 8

GOODS (GATT94) 7054 AGRI & NON-AGRI PRODUCTS : 1. ITA, 219 LINE ITEMS 2. CHEMICAL HARMONIZATION 3. ZERO-FOR-ZERO INNITIATIVE ( pharmaceuticals, equipment, steel, wood, cotton, toys, fish & paper ) 4. ARTICLE 20 OF GATT 94 ( health, environment, security, religious ) 11 OTHER SISTER AGREEMENTS 9

GOODS OFFERS Average Rate Requests 0% 10% 20% 30% 40% 50% 60% 1st2nd3rdCU 10

SERVICES (GATS) 12 MAJOR SECTORS WITH; 155 Sub-sectors & 620 Activities In: Business, Telecom, Distribution, Tourism, Education, Banking, Insurance, Recreation, Transportation, Environmental, Engineering, Health, Audio-visual & Other Services Market Access & National Treatment GATS is the most complicated agreement of WTO 11

Market Access ( Services ) 1) Cross Border Supply 2) Consumption Abroad 3) Commercial Presence 4) Movement of Natural Persons Unbound Bound None Unbound* 12

SERVICES OFFERS Market Access

GOODS I T A Zero Tariff SERVICES Telecom Agreement Nominal Cost Pervasive Computing THE ELECTRONIC TAP

MULTILATERAL ISSUES THE BATTLE OF IDEAS 15

WORKING PARTY REPORT A FACTUAL SUMMERY OF THE WP Meetings ANSWERS TO QUESTIONS RELATED TO: 1. INDUSTRY, TRADE & AGRICULTURE 2. PRIVATIZATION & STATE TRADING 3. TAXES, DUTIES, CHARGES & AMS 4. SUBSIDIES, PRICING & LICENCING 5. INVETMENT & ENT MEASURES 6. ENFORCEMENT, DUE PROCESS 7. STANDARDS & SPECIFICATIONS 16

COMMITMENTS NOTIFICATIONS WITHOUT FLEXIBILITIES ACC4, ACC5 & ACC8 TRANSPARENCY & PREDICTABILITY ENFORCEMENT & IMPLIMENTATION PLURILATERAL MATTERS TRADING ARRANGEMNTS BUSINESS & FISCAL POLICIES 17

LEGISLATION THE AGONY OF REFORM 18

THE NEW RULES OF THE GAME IPR LAWS: 1. TRADE MARKS 2. TRADE NAMES 3. COMMERCIAL DATA 4. COPYRIGHT 5. PATENTS 6. INT CIRCUITS LAYOUT & INDUSTRIAL DESIGNS 7. PLANT VARIETIES 8. COMPETITION 9. BORDER MEASURES IMPORT LICENCING SANITARY & PHYTOSANITARY MEASURES TECHNICAL BARRIER TO TRADE CUSTOMS VALUATION 19

THE SHOWDOWN GENEVA,47 – SEATLE,99 – CANCUN,03 ONE – TWENTY EIGHT – THIRTY TWO ON GOING LIBERALIZATION REGIONALISM VS MULTILATERALISM DEVELOPED VS DEVELOPING ONE WORLD, ONE LAW & ONE VOTE DISPUTE SETTLEMENT BODY 20

THE FUTURE CHALLENGES UNITED WE WIN, DIVIDED WE LOOSE STRATEGIC ALLIACES ARE REQUIRED TECHNOLOGY EDGE; IS THE FUTURE COMPARATIVE ADVANTAGE; IS A MUST SMEs ARE THE ENGINE OF GROWTH SERVICES RATHER THAN GOODS SPECIAL & DIFFERENTIAL TREATMENT 21

SWOT Analysis S T O + 10 W 10 ــ Integrated – Proactive DSB ( regulated ) Employment ( Saudization ) MKT Access – National Treatment FDI ( T & P ) – Services Upgrading Confined - Reactive Vulnerable - Undersized Unemployment Single Undertaking Stagnation IN WTO OUT OF WTO 22

A COST-BENEFIT ANALYSIS SECURED AGAINST CHAOS 23

SAUDIZATION TODAY, WE HAVE: 4.5M JOBS IN THE PRIVATE SECTOR, WITH ONLY 10% SAUDIS IN 2020, WE WILL HAVE: 10M JOBS WITH 75% SAUDIS COMMITMENTS ON ICT 25% ONLY 24

FOREIGHN DIRECT INVESTMENT EXPONENTIAL FDI INCREASE DUE TO: 1. ECONOMIC REFORM 2. RESTRACTURING STRATEGY 3. UP-TO-DATE LEGISLSTION 4. TRANSPARENCY & PREDICTABILITY 5. ENFORCEMENT & DUE PROCESS 6. COMPARATIVE ADVANTAGE 25

HEALTHY COMPETITION CONSUMER WIDER CHOICES 148 BORDERLESS MARKETS NO UNILATERAL DECISIONS AD, COUNTERVAILING & SAFEGARDS RULES OF ORIGIN MEASURES FREE TRADE AREAS ARRANGEMENTS FULL INTEGRATION IN WORLD ECONOMY 26

THANK YOU 27