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Saudi Arabia's Trade Policy. - Essay Example
Pages 4 (1004 words)
Saudi Arabia's trade policy is influenced greatly by its political and social situations and international relations with other countries. The policy framework is based on free market economy. "There are no foreign exchange controls, quantitative restrictions or tariff barriers…
Saudi Arabia has embarked upon ambitious industrialization schemes, but, apart from possessing a few large modern plants in aluminum, steel and petrochemicals, their industrial structures are essentially simple. They are dominated by food processing and the production of an array of construction materials, though a wide variety of light industry is being promoted both by local demand and government encouragement (Saudi Arabia and WTO 2008). The improvement in the situation of Saudi Arabia with respect to food imports since 1990s is partly a reflection of changed prices for food, partly the result of quite minor shifts in the composition of trade and partly the result of successful, if "pensive, food security policies. It also arises from the importance of all primary products in exports and the leading roles of industrial supplies and machinery in imports. The export trade of Saudi Arabia is dominated by petroleum for which the major markets are outside the region, and most of their import needs cannot be met from within the Middle East. Political isolation, of course, has not helped its intraregional trade (Bradley 54).
The trade information allows to say that commerce is connected with total financial flows between trading partners, whilst investment capital is essential to programs of industrial and infrastructural development (Bradley 87; appendix 1). ...
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