Study on International trade betw een Saudi Arabia and Australia

A report submitted to the faculty of Business Administration in part

fulfillment of requirement of final examination in Global Trade

Prepared and submitted by-

(Matrix)

Name- Khan, Md. Saquib

ID 07-07642-1
Name Haq, Faria Taskin
ID 07-08213-1
Name Ohidullah, MD
ID 07-07679-1

Course Instructor:
Chowdhury, Ahmed Reyad
American International University-Bangladesh

A I U B

1
April 27, 2009

To

Mr. Chowdhur y, Ahmed Reyad

Course Instructor
American International University – Bangladesh
Banani, Dhaka

Subject: Letter of Transmittal

Dear Sir,

Attached please find the Group Project Report on ``International trade

between Saudi Arabia and Australia’’ that you have assigned us to prepare.
We the group members have accumulated workable secondar y data from
the internet and books. We have coiled those data furnished through this
report. It will be still a unique scope for us to learn more about the
subject by clarifying any observations if you have arising from the paper.

We are grateful to you for your continuous guidance in preparing the

Group Project Report.

Sincerely yours,

KHAN, MD.SAQUIB OHIDULLAH MD

HAQ, FARIA. TASKIN

2
 SUMMARY

Saudi Arabia is a country with population of 27,600 000(2 crore 76 lack)

of which 70 lack people are foreign workers. The countr y heavily relies on
petroleum exports. Large oil earnings, particularly since the oil price rises
of the early 1970’s, have allowed the Government to spend heavily to look
after the people and to build the infrastructure of a modern economy. The
economy is heavily dependent on oil earnings and the high level of
Government spending they make possible: a large and varied private
sector has grown up but remains vulnerable to fluctuations in the oil price
and government spending. In the 1980’s and 1990’s economic growth was
barely fast enough to keep up with population growth, but ver y high oil
prices in 2003-5 have made possible a strong spurt in growth. Australia on
the other hand has 20.7 million (2 crore 7 lack) of which 99% of the
population are of European or Asian descent. Australia has a largely
affluent society and open and innovative economy, resulting in growing
foreign investment over the past decade. Australia continues to be a strong
advocate of increased trade liberalisation in the World Trade Organisation
and plays an active role in global trade talks. Japan remains Australia’s
largest export market, followed by China, the United States, the Republic
of Korea and New Zealand. Strong political, economic and cultural links
to the UK make Australia a more significant market for UK exports than
its comparatively small population might suggest. The statistics of 2007 to
2008 shows that Australia exported passenger motor vehicles, barley,
cheese and Live animals to Saudi Arabia. Saudi Arabia exported Crude
petroleum, liquefied propane and butane, fertilisers and refined petroleum
to Australia.

3
TABLE OF CONTENTS:

1.Introduction
2.Country Profile: Saudi Arabia
3.Country Profile: Australia
4.International trade between Saudi Arabia
and Australia
5.Trade rules and regulations: Saudi Arabia
6.Trade rules and regulations: Australia
7.Trade Agreements
8.Comparative study regarding trade
activities
9.Conclusion
10.Bibliography

4
1.0 Introduction
Today global business is changing rapidly. Countries which long been
closed to the world is now beginning to open doors. They started to
believe that global trade will help these countries to grow and become
rich. In this report we will look at two of the of the ver y rare countries in
terms of geographical locations, culture and people who are involving in a
trade relationship. Australia is a country with powerful economic
background and Saudi Arabia on the other hand is a countr y of rich oil
resources and a new member of WTO. These two countries are rich with
resources and they have huge opportunities to trade. But the cultural
differences create an obstacle to relationship. Will Australia be able to
coup with challenge? Will their relations long last?

2.0 Country Profile: Saudi Arabia

Area: 2.25 million square kilometres

5
Population: 27,600 000 (2007 est.)
Capital City: Riyadh
People: Arabs, 7 million of the total population are foreign workers
Languages: Arabic is the official language (English is widely spoken in
business circles)
Religion: Islam; the public practise of any other religion is forbidden.
About 90% of the Muslim population is Sunni and 10% Shia.
Currency: Saudi Riyal (SR)
Major political parties: Political parties are not permitted
Government: Monarchy
Head of State: King Abdullah bin Abdul Aziz Al Saud, Custodian of the
Two Holy Mosques
First Deputy Prime Minister: His Royal Highness Prince Sultan bin
Abdul Aziz Al Saud
Prime Minister/Premier: King Abdullah bin Abdul Aziz Al Saud,
Custodian of the Two Holy Mosques
Foreign Minister: His Royal Highness Prince Saud al Faisal bin Abdul
Aziz
Mem bership of international groups/organisations: World Trade
Organisation, Arab League, Gulf Co-operation Council, Organisation of
Islamic Countries and United Nations and Organisation of Petroleum
Exporting Countries
Flag: The flag of Saudi Arabia bears the Muslim creed: 'There is no God
but God: Muhammad is the Messenger of God.' The official emblem is a
date palm, representing vitality and growth, and two crossed swords,
symbolising justice and strength rooted in faith.

HEALTH/TRAVEL
Some parts of Saudi Arabia, most notably the South Western region of
Jizan, are potentially malarial. Precautions should be taken when visiting
this area. The Foreign and Commonwealth Office recommends visitors
have immunisations for polio, hepatitis and tetanus before visiting Saudi
Arabia.

Hajj and Umrah

During the period of Hajj and Umrah, pilgrims are required by the
Government of Saudi Arabia to have a valid certificate of vaccination
against the ACWY strains of meningitis. This is a visa requirement.
Visitors may be refused entr y if they do not have a valid certificate
showing that they have received this quadrivalent meningitis vaccination.

Saudi Culture

6
Islamic principles and social customs are strictly observed in Saudi Arabia
and influence all aspects of life and society. Saudi Arabia adheres to the
Islamic sharia legal system.

The Saudi working week is from Saturday to Wednesday. Thursday and

Friday are the 'weekend'.

Economy:
Saudi Arabia has the largest proven oil reserves in the world and is by a
long way the largest exporter of oil. Oil was discovered in 1938, and
production began under the then US-controlled Aramco (Arabian American
Oil Company). Saudi Aramco, now nationalised, controls all onshore oil
and has the largest reserve base of any company in the Exporting
Countries (OPEC); It has always been the dominant player within OPEC in
adjusting production in line with market stability.

Large oil earnings, particularly since the oil price rises of the early
1970’s, have allowed the Government to spend heavily to look after the
people and to build the infrastructure of a modern economy. The economy
is heavily dependent on oil earnings and the high level of Government
spending they make possible: a large and varied private sector has grown
up but remains vulnerable to fluctuations in the oil price and government
spending. In the 1980’s and 1990’s economic growth was barely fast
enough to keep up with population growth, but ver y high oil prices in
2003-5 have made possible a strong spurt in growth.

Saudi Arabia has long had a ver y liberal policy on the use of foreign
workers, who form the vast bulk of the private sector workforce. But the
Saudi population is rapidly increasing and policy is now focusing on the
need to create more jobs for young Saudis.

Economic reform continues: moves in recent years include opening some

previously closed sectors of the economy, such as the gas industr y, to
investment by foreign companies. Upstream oil remains closed to foreign
investment. Saudi Arabia has applied to join the World Trade Organisation
and is in the process of negotiating the terms of its entrance.

Basic Economic Facts

7
  Proven oil reserves (end-2004): 262.7bn barrels
 Proven oil reserves as share of world total: 25%
 Oil production (2004): 10.6mbd
 Oil production as share of world total (2004): 13.1%
 GDP (2006): US$371.5bn
 Population including expatriates (2007): 27.6 million
 GDP per head (2006): US$13,658
 Annual growth rate in real GDP (2006): 4.3% (Oil 0.2%, non-oil
6.3%)
 Major sectors: Oil, petrochemicals, financial services, construction
 Major destinations for Saudi exports: USA, Japan, Korea, China and
EU
 Major exporters to Saudi Arabia: USA, Japan, Germany, China and
UK
 Exchange Rate (average 2006): £1=7.48 Saudi Riyals (US$1=3.75
Saudi Riyals)
 Money: The Saudi Riyal (SR) is divided into 100 halalas. Notes
come in denominations of SR1, 5, 10, 20, 50, 100, 200 and 500.
Coins come in denominations of 5,10, 25 and 50 halala
(Source: www.fco.gov.uk )

3.0 Country Profile: Australia

Area: 7,682m sq km
Population: 20.7 million
Capital city: Canberra
People: 99% of the population are of European or Asian descent
Languages: Mainly English with some other European, indigenous and
Asian languages
Religion(s): Predominantly Christian with Buddhist, Jewish and Muslim
Currency: Australian Dollar (A$)
Major political parties: There are seven registered parties. They are the:
Australian Labor Party (ALP), Liberal Party, National Party, Green Party,
One Nation, Australian Democrats, and Family First.
Government: The Australian Constitution of 1901 established a federal
system of government. Under this s ystem, powers are distributed between
a federal government (the Commonwealth) and the six States (three
Territories - the Australian Capital Territor y, the Northern Territor y, and
Norfolk Island have self-government arrangements). The Parliament is at
the ver y heart of the Commonwealth government. The Parliament consists
of The Queen (represented by the Governor-General) and two Houses, the
Senate and the House of Representatives. These three elements make
Australia a constitutional monarchy, a federation and a parliamentary
democracy.

8
Head of State: Her Majesty, Queen Elizabeth II
Governor-General: HE Ms Quentin Bryce AC became the 25th Governor
General on 5th September 2008.
Prime Minister: The Hon Kevin Rudd MP (Leader Australian Labor
Party)
Foreign Minister: The Hon Stephen Smith MP
Membership of international groups/organisations: The United Nations
(UN), the Commonwealth, the World Trade Organisation (WTO), the Asia
Pacific Economic Co-operation (APEC), Organisation for Economic
Cooperation and Development (OECD), the Association of Southeast
Asian Nations (ASEAN) Regional Forum (ARF), United Nations
Educational, Scientific and Cultural Organisation (UNESCO), Pacific
Islands Forum (PIF), Pacific Community (SPC), South Pacific Regional
Environment Programme (SPREP).

Economy:

Almost two decades of continuous economic growth, a low unemployment

rate and a strong banking system which is the result of a series of
structural and policy reforms have all left Australia better placed in the
face of a global economic downturn than many other developed nations.
Growth has slowed considerably since the middle of 2008, and eagerly
anticipated economic indicators will soon tell whether Australia will be
able to avoid recession in 2009.

The current crisis has led the Government to introduce a series of

stimulator y measures and the Reserve Bank to make repeated cuts in the
official interest rate, encouraging first home buyers to take some pressure
off the rental market. The Government's economic strategy has centred on
providing financial assistance to lower-income families and individuals,
designed to take some of the burden away from the most vulnerable.

The economy however continues to benefit from demand for resource and
minerals, and it is generally accepted that China’s continued growth -
albeit slower than previously thought - holds the key to Australia’s
recovery on the other end of the current crisis. Until then, a substantial
rise in unemployment is predicted for 2009, a year which, the Government
has said, is expected to be difficult.

9
Trade

Australia has a largely affluent society and open and innovative economy,
resulting in growing foreign investment over the past decade. Australia
continues to be a strong advocate of increased trade liberalisation in the
World Trade Organisation and plays an active role in global trade talks.
Japan remains Australia’s largest export market, followed by China, the
United States, the Republic of Korea and New Zealand. Strong political,
economic and cultural links to the UK make Australia a more significant
market for UK exports than its comparatively small population might
suggest. In 2007-08, the UK was Australia's sixth largest merchandise
trading partner and seventh largest source of merchandise imports. Today
the UK remains Australia’s top European Union trading partner.

The UK sells more to Australia than to India or China, and Australia is the
UK’s 5th largest market for goods outside the EU. Agriculture, Mining,
Oil and Gas, Information and Communication Technology, Biotechnolog y,
Creative and Media, Marine, Railways, Food and Drink, Recreation and
Leisure, and Aerospace are all sectors identified as offering significant
opportunities for British companies.

In 2007-08, two-way merchandise trade between Australia and the United

Kingdom was worth approximately A$16.8 billion. The services trade was
also strong in 2007-08, around A$4.7 billion in exports and A$4.2 billion
in imports. Recreational travel on both sides remains the strongest
contributing factor to the services sector.

Global Trade

Australia’s trade policy is geared to increasing economic activity,

liberalising trade and maximising access for Australia in the international
market place. Australia is an active player in the WTO, in particular on
agriculture. However, in the absence of progress toward a new global
trade deal at the WTO, Australia is pursuing regional and bilateral free
trade agreements, which, it hopes, will deliver faster trade and economic.
FTAs have been completed with the US, Singapore, Thailand, New
Zealand and Chile, and negotiations are underway with China, Malaysia,
Japan, and ASEAN. Further bilateral FTA’s with India, Korea and
Indonesia are also under consideration.

(Source: www.fco.gov.uk )

10
4.0 International Trade between Saudi Arab and Australia.
Current business situation

Australian's planning to travel to, or who are in the Middle East, are urged
to monitor developments that may affect their safety - through the
Department of Foreign Affairs and Trade's (DFAT) current general travel
advice and bulletins. It is recommended that Australians visiting the
region register with the nearest Australian Embassy (see relevant DFAT
travel advisory for Saudi Arabia).Australia urge it’s individuals to take
sensible precautions, dress and behave conservatively, strictly observe
Islamic customs and ensure that travel documentation, including passports
and any necessary visas, for themselves and their dependents are valid and
up-to-date. Austrade advises Australian companies with ongoing business
in Saudi Arabia to maintain contact with their business partners and to
clarify with their freight forwarders that the usual commercial
arrangements still apply. Austrade offices in Riyadh and Jeddah are fully
operational. Australian companies undertaking business in Saudi Arabia
who are unable to travel to meet with their customers and business
partners may wish to contact Austrade regarding commercial problems or
issues they are facing in the Middle East.

Major Australian exports to Saudi Arabia (2007-08)

Passenger motor vehicles – A$1,014 million

Barley – A$264 million

Cheese and curd – A$90 million

Live animals – A$83 million

Major Australian imports from Saudi Arabia (2007-08):

Crude petroleum – A$322 million

Liquefied propane and butane – A$226 million

Fertilisers (excluding crude) – A$158 million

Refined petroleum – A$30 million

(Source: Australian Governm ent: Austrade)

11
5.0 Trade Rules and Regulation: Saudi Arabia

Trade Barriers

Saudi Arabia is currently in the process of accession to the World Trade

Organization (WTO). As a result, once Saudi Arabia is admitted, the
countr y's trade regime should become more accommodating to non-Saudi
business and transparent. Saudi laws often favour Saudi citizens, and the
Kingdom still has a different set of trade barriers, mainly regulator y and
bureaucratic practices, which restrict the level of trade.

For example, only Saudi nationals are permitted to engage in trading

activities.

All industrial enterprises are open to non-Saudis, and they can also trade
in the products they manufacture. Non-Saudis are not permitted to register
as commercial agents.

Business Visas: All visitors to Saudi Arabia must have a Saudi sponsor in
order to obtain a business visa to enter Saudi Arabia. The Saudi who
agrees to act as a sponsor accepts certain legal obligations including
personal liability for the actions of the visitor. Therefore, a Saudi rarely
assumes sponsorship unless he has a personal interest in the proposed
visit.

Delayed Paym ents: Although some Saudi Government agencies still have
outstanding dues in 1996 and 1997, the Saudi Government has taken
several measures to reduce its arrearages. The most notable move has
been a $4.3 billion loan package to cover payments to Boeing for aircraft
purchased by the national airline, Saudi Arabian. The Embassy estimates
that remaining arrearages still total $2 to 3 billion. Nonetheless, the
problem persists, and U.S. companies should check with the U.S. Embass y
or Consulates for information on the current arrearage situation

Copyright Law : Saudi Arabia's Copyright Law does not extend protection
to works that were first displayed outside of Saudi Arabia, unless the
author is a Saudi citizen. However, the Saudi Government maintains that
this is sufficient to extend protection to foreign works.

12
Tradem arks: Trademarks are protected under the Trademark Law. Trade
secrets are not specifically protected under any area of Saudi law;
however, they are often protected by contract. There is no specific
protection for semiconductor chip layout design. Several of these issues
are being taken up in connection with Saudi Arabia's application to
become a member of the WTO.

Counterfeiting: Consumer products and automobile spare parts

manufacturers are particularly concerned about the widespread availability
of counterfeit products in the Kingdom. While anti-counterfeiting laws
exist, the U.S. Government has urged the Saudi authorities to step up
enforcement actions against perpetrators.

Protective Tariffs and Non-Tariff Trade Barriers: Saudi tariff

protection is generally moderate, but has increased over the years. A
number of Saudi "infant industries" now enjoy 20 percent tariff protection
as opposed to the general rate of 12 percent. Saudi non-tariff barriers also
are increasing. Such barriers include preferences for national and GCC
products in Government procurement; a 30 percent of contract value "set-
aside" for local contractors on major Government projects; a requirement
that foreign contractors obtain their imported goods and services
exclusively through Saudi agents; reservation of some services for
Government-owned companies, namely, insurance and air transport; and
the economic offset requirement mandating reinvestment of a portion of
contract value in indigenous industries for certain high value Government
contracts, particularly in defence.
(Source: Saudi Arabia: Trade Regulations and Standards)

6.0 Trade Rules and Regulations: Australia

Trade Policy:
Having shielded its industr y for most of the past decades behind tariff
protection, Australia began to reduce its tariff including in its most
protected industries such as automobiles and textiles in the 1980s. The
Australian economy has since reaped the rewards of tariff reduction
through lower prices of imported business inputs, increased productivity
and improved international competitiveness.

13
Import Controls

There are no special requirements for applying an import licence, nor are
there any quotas on imports. However, under the Customs (prohibited
Imports) Regulations, controls take the form of a) an absolute prohibition
meaning that import of these goods is banned in any circumstances; and b)
a restriction where imports are allowed only if written authorisation is
obtained from the relevant authorities, or if compliance with certain
regulations is met. For some commodities, import permits are required to
facilitate clearance of goods.

Items subject to control include animals and animal products; narcotics,

psychotropic and therapeutic drugs; certain chemicals and primar y
commodities; firearms and certain weapons; motor vehicles; and certain
dangerous goods. Controls on these goods are maintained to meet health
and safety requirements or labelling, packaging or technical specification
requirements.

Customs Valuation and Tariff

Australia adopted the Harmonised Commodity Description and Coding

S ystem (HS). It is a dual-column schedule providing for both general and
preferential duty rates applied to goods from developing countries.

The Australian Government has planned for the progressive reduction of

tariff protection for local industry. The tariff reduction programme has
already reduced 48% of Australian tariff to zero and 35%. About 86% of
tariff rates now range between zero and 5%, except certain automobile
products and the textile, clothing and footwear commodities. The average
applied most-favoured-nation (MFN) rate for industrial products is 4.6%,
while the applied MFN tariff for agricultural products is less than 1%.

While there are several ways of valuing goods for customs purposes, the
method most applied is the transaction value based on the price actually
paid for the imported goods.

GST and Other Taxes

Goods and services tax (GST) was introduced in 2000 and is payable on
most goods and services imported into Australia except for some essential
commodities. GST is levied at 10% of the value of a taxable importation
which is the sum of the customs value of the goods, any customs duty
payable, deliver y costs and other expenses.

Australia imposes GST, wine equalization tax and luxury car tax on
locally produced and imported goods.

14
Anti-dum ping and Countervailing Duties

Where a consignment of goods has been imported to Australia, or is likely

to be imported, and an Australian industry producing the like goods
believes there are reasonable grounds, an applicant may apply for a
dumping duty and/or a countervailing duty notice to be published.

Australia has initiated a number of anti-dumping proceedings against

certain countries including China. Currently there are a number of
mainland origin goods subject to Australia's anti-dumping measures,
including preserved pineapples, preserved mushrooms and certain
chemicals

Customs Clearance

Importers wishing to clear their own goods should contact the Customs
Information and Support Centre for advice on Customs requirements and
operating hours. Customers should be aware of their obligations and base
on their assessments of import procedures. Penalties may be imposed for
the submission of incorrect or misleading information.

Business travelers carrying commercial goods or sample may need to

obtain permits for their goods depending on the nature of the goods,
regardless of value. Quarantine and wildlife regulations and other
restrictions may also apply to certain goods. Laptop computers and other
electronic goods for personal use may be admitted duty free provided
Customs is satisfied that these goods would be taken back on departure.

Customs advises that purchasing goods over the Internet or mail order are
subject to customs controls. Restricted goods brought into the countr y
require an import permit. Goods may be imported duty and tax free if their
value is $1000 or less, with the exceptions of tobacco and alcoholic
products. However, multiple packages to the same addressee from a single
consignor arriving at the same time are liable for tax assessment.
(Source: Small Business Resources-Trade Regulations of Australia.)

7.0 Trade Agreements between Saudi Arab and

Australia:
Australian Minister for Trade Simon Crean, who is currently visiting
Saudi Arabia, has reaffirmed the need to initiate talks for a free trade
agreement between the six-nation Gulf Cooperation Council (GCC) and
Australia. Claiming that trade was the "multiplier of global economic
activity," Crean said Australia must use the G-20 meeting later this month
to push the cause of free trade as a way of warding off the worst effects of

15
the financial crisis. "Crean’s visit is mainly intended to give a push to the
proposed free trade agreement," said Roy Clougstoun, a spokesman of the
Australian Embassy, here yesterday. This is the first formal visit to Saudi
Arabia by a minister in Prime Minister Kevin Rudd’s government.
Clougstoun said that Crean held wide-ranging talks with senior Saudi
officials including Riyadh Governor Prince Salman, Minister of
Commerce and Industry Abdullah Alireza and SAGIA Gov. Amr Al-
Dabbagh "The purpose of Crean’s visit was to meet with key Saudi
ministers to advance Australia’s trade, economic and investment interests
with Saudi Arabia," said the spokesman, while expressing satisfaction that
the purpose of the visit was served. Asked whether the issue of livestock
trade with Saudi Arabia was discussed during Crean’s talks with Saudi
officials, the spokesman said that "it did not figure in official talks."
(Source: Australia seeks free trade deal with GCC)

8.0 Comparative Study Regarding Trade Activities

between Saudi Arabia and Australia:

Saudi Arabia is a member of the Gulf Co-operative Council (GCC), and

Organization of Petroleum Exporting Countries. The six countries of the
Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia
and the United Arab Emirates) have announced the formation of a Customs
Union that is currently being phased in over the next few years. Reports
have indicated that the Union will eventually eliminate all fees, taxes,
customs and other obstacles to trade between the member countries. A
standard tariff of five per cent will then apply to most imports from
countries outside the GCC Customs Union.

A preliminary assessment of the customs union, based on available

reporting indicates that:

 The standardisation of customs requirements and procedures will

benefit exporters active in multiple GCC markets.
 The tariff will eventually be applied at any port of entry to the
customs union, which will positively impact on exporters of
transhipped goods - who may now pay only one customs duty.
 The tariff of five per cent is significantly lower than that currently
applied in some GCC markets, but is also higher than that applied in
others, with mixed implications for Australian exporters.
 It is likely that many goods currently exempt (particularly basic
foodstuffs and manufacturing inputs) will maintain their duty-free
status (where it currently exists). Though some goods currently
exempt from duty may have a five per cent duty imposed on them.

16
A list of products will be exempt from the maximum five per cent tariff to
protect local GCC industr y. It is anticipated that this list will not be
finalised until 2004. Restrictions on passage of certain products through
GCC countries will also apply. For example it is currently a requirement
for meat products exported from Australia to Saudi Arabia is shipped
direct (with transhipment through Singapore only being allowed).

Australian exporters will not be disadvantaged vis-à-vis competing

international suppliers. GCC countr y suppliers will enjoy a five per cent
tariff advantage vis-à-vis Australian and other overseas competitors in
those product areas where competing GCC suppliers exist. Ver y few
products from Australia compete with GCC countries and so Australia’s
competitive position - even if a duty is applied - should not be affected to
an y significant degree.

There remain a number of issues yet to be resolved between the six

member states. In the short-term, exporters are advised that import
requirements and procedures for many GCC markets remain unaffected.
Transition periods of two years or more exist on a range of industries.
Transition periods also exist for the implementation of general product,
and food safety standards, with a genuine common market not anticipated
until 2007.

In the longer-term, Australian exporters will be required to develop

greater brand recognition and uniformity in and between GCC markets and
will have to guard against pricing disparities between GCC markets which
might trigger competition among different GCC agents and distributor.

The Customs Union will promote trade and investment in the Gulf
countries and is expected to continue to provide opportunities for
Australian exporters. Australian trade with the GCC shows total exports
valuing A$3.9 billion in 2003. It is also recommended that exporters check
with their customers in GCC countries, and shipping agents to verif y
customs requirements.

(Source: Saudi Arabia: Trade Regulations and Standards)

17
9.0 Conclusion:

The Australian government is showing positive steps towards the trade

relations with Saudi Arabia. They advised the travelers to show respect to
the Saudi cultures and to maintain a conservative dress code. The level of
trade between the two countries is also increasing. Recently the
Australian Foreign Minister has visited Saudi Arabia for trade talks. Saudi
Arabia is a member of GCC and trying to acquire a membership in WTO.
In response to this WTO has proposed several steps to eliminate
discriminatory trade practices in Saudi Arabia.

18
Bibliography:

I. (30 October 2007).Foreign and Commonwealth office (FCO). Retrieved in April

14, 2009 from http://www.fco.gov.uk/en/about-the-fco/country-profiles/middle-
east-north-africa/saudi-arabia/?profile=economy&pg=2
II. (11 March 2009). Australian Government Austrade. Retrieved in April 14, 2009
from http://www.austrade.gov.au/Saudi-Arabia-profile/default.aspx
III. Saudi Arabia: Trade Regulations and Standards. Retrieved in April 16, 2009 form
http://www.the-saudi.net/saudi-arabia/trade_regulations_and_standards.htm
IV. (Dec 01, 2007). Small Business Resources-Trade Regulations of Australia.
Retrieved in April 16, 2009 from
http://sme.hktdc.com/sme_content.aspx?contentid=174178&src=List_ir&w_sid=1
94&w_pid=886&w_nid=11436&w_cid=6&w_idt=1900-01-01
V. (4 Nov 2008). Australia seeks free trade deal with GCC. Retrieved in April 16,
2009 from http://www.bilaterals.org/article.php3?id_article=13672

19