'Saudi firms not in breach of WTO rules'

Saudi Arabia, January 9, 2011
Muhammad Al-Kathiri, Undersecretary at the Ministry of Trade and Industry for Industrial Affairs, has denied that Saudi exporters have contravened World Trade Organization (WTO) regulations by selling at lower prices, saying that the Kingdom “enjoys relative concessions and privileges that make its exports competitive on international markets”.

“The Kingdom is not an exception, as the same case applies to other countries,” Al-Kathiri said.

“Some countries have responded to efforts to solve issues through the economic and political relations with these countries, such as India.

Some issues concern Saudi products in Turkey, Pakistan and China, and we will resolve them through bilateral relations with those countries.”

Al-Kathiri made the remarks in Riyadh at a press conference held Saturday to highlight the advantages of the Kingdom joining the WTO, during which he also spoke of efforts to protect Saudi exporters’ rights, particularly concerning “market flooding”.

“The Kingdom has taken measures in the past and is now taking further steps through its permanent WTO representative in Geneva,” he said.

“The issue of Saudi exporters flooding markets arises periodically and the ministry has set up a department to monitor what occurs around the world and collect information on the issue as a precautionary measure should it be faced with any issue raised against Saudi products in member states.”

He said the ministry preferred to resolve its issues via “consultation through our economic and political relations and joint interests with countries in the organization”.

“We believe that to be the swiftest way of resolving such cases.”

Al-Kathiri added that the global economic crisis had helped strengthen protectionist measures resulting in some Saudi exporters having legal action taken against them.

“We look at some of the countries which have taken action against Saudi exporters where no harm to products has actually been caused.

“They have the right to ensure that their products are not affected by flooding, although this should be done in accordance with international agreements,” he said.