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Saudi Approval to Join Int’l Agreement Boosts Commercial Sector Growth

King Abdulaziz Port in Dammam, Eastern Saudi Arabia (Asharq Al-Awsat)
King Abdulaziz Port in Dammam, Eastern Saudi Arabia (Asharq Al-Awsat)
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Saudi Approval to Join Int’l Agreement Boosts Commercial Sector Growth

King Abdulaziz Port in Dammam, Eastern Saudi Arabia (Asharq Al-Awsat)
King Abdulaziz Port in Dammam, Eastern Saudi Arabia (Asharq Al-Awsat)

Saudi Commerce Minister Majid Al-Qasabi emphasized on Friday that the Cabinet’s approval of Saudi Arabia’s accession to the UN Convention on Contracts for the International Sale of Goods reflects the government’s commitment to enhancing the growth of the commercial sector.

He also said that the move helps keep pace with modern legislative reforms and regulatory frameworks that support the integration of the Saudi economy with regional and global economies.

The minister further added that the Convention will enable the adoption of regulatory and legislative frameworks for cross-border trade, facilitating the establishment of a unified system governing the conclusion of such contracts.

This will enhance the growth of the Saudi economy, especially considering that 95 countries, representing around two-thirds of the global economy, have already joined the Convention.

The Convention provides a unified and flexible legal framework for the international sale of goods across borders. It also aims to establish an international regulatory framework that is neutral and independent in addressing disputes related to international sales of goods.

Additionally, it encompasses a modern set of legal rules that consider various economic and social aspects.

The Convention contributes to removing obstacles in the field of international trade and enhancing its development. Additionally, it supports efforts to diversify the economy and promote cross-border transactions, particularly for small and medium-sized enterprises.

Joining the Convention also contributes to supporting alternative dispute resolution mechanisms, as well as facilitating the choice of applicable law in case of disputes and other transactions.

Membership also helps to avoid ambiguity regarding the applicable law, as the Convention eliminates barriers and enhances transparency in international trade procedures.

It improves legal predictability, facilitates more efficient dispute resolution, and contributes to the development of domestic contract systems within the country.

Saudi Arabia’s National Competitiveness Center (NCC) is actively studying Riyadh’s accession to several international agreements in collaboration with the United Nations Commission on International Trade Law (UNCITRAL). This collaboration is in line with the Cabinet’s approval of a memorandum of cooperation regarding financial contribution to the UNCITRAL Trust Fund.

 

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Trump Exempts Mexico Goods from Tariffs for a Month, but Doesn’t Mention Canada

Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
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Trump Exempts Mexico Goods from Tariffs for a Month, but Doesn’t Mention Canada

Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)

US President Donald Trump on Thursday said Mexico won't be required to pay tariffs on any goods that fall under the United States-Mexico-Canada Agreement on trade until April 2, but made no mention of a reprieve for Canada despite his Commerce secretary saying a comparable exemption was likely.

"After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement," Trump wrote on Truth Social. "This Agreement is until April 2nd."

Earlier on Thursday, US Commerce Secretary Howard Lutnick said the one-month reprieve on hefty tariffs on goods imported from Mexico and Canada that has been granted to automotive products is likely to be extended to all products that comply with the US-Mexico-Canada Agreement on trade.

Lutnick told CNBC he expected Trump to announce that extension on Thursday, a day after exempting automotive goods from the 25% tariffs he slapped on imports from Canada and Mexico earlier in the week.

Trump "is going to decide this today," Lutnick said, adding "it's likely that it will cover all USMCA-compliant goods and services."

"So if you think about it this way, if you lived under Donald Trump's US-Mexico-Canada agreement, you will get a reprieve from these tariffs now. If you chose to go outside of that, you did so at your own risk, and today is when that reckoning comes," he said.

Nonetheless, Trump's social media post made no mention of a reprieve for Canada, the other party to the USMCA deal that Trump negotiated during his first term as president.

Lutnick said his "off the cuff" estimate was that more than 50% of the goods imported from the two US neighbors - also its largest two trading partners - were compliant with the USMCA deal that Trump negotiated during his first term as president.

Canadian Prime Minister Justin Trudeau called Lutnick's comments "promising" in remarks to reporters in Canada.

"That aligns with some of the conversations that we have been having with administration officials, but I'm going to wait for an official agreement to talk about Canadian response and look at the details of it," Trudeau said. "But it is a promising sign. But I will highlight that it means that the tariffs remain in place, and therefore our response will remain in place."

Lutnick emphasized that the reprieve would only last until April 2, when he said the administration plans to move ahead with reciprocal tariffs under which the US will impose levies that match those imposed by trading partners.

In the meantime, he said, the current hiatus is about getting fentanyl deaths down, which is the initial justification Trump used for the tariffs on Mexico and Canada and levies on Chinese goods that have now risen to 20%.

"On April 2, we're going to move with the reciprocal tariffs, and hopefully Mexico and Canada will have done a good enough job on fentanyl that this part of the conversation will be off the table, and we'll move just to the reciprocal tariff conversation," Lutnick said. "But if they haven't, this will stay on."

Indeed, Trudeau is expecting the US and Canada to remain in a trade war.

"I can confirm that we will continue to be in a trade war that was launched by the United States for the foreseeable future," he told reporters in Ottawa.