Saudi Candidate Sets 6-Axis-Framework to Head WTO

Saudi Candidate Sets 6-Axis-Framework to Head WTO
TT

Saudi Candidate Sets 6-Axis-Framework to Head WTO

Saudi Candidate Sets 6-Axis-Framework to Head WTO

With the end of the second phase of the nomination process, Saudi Arabia’s candidate for the presidency of the World Trade Organization (WTO), Muhammad bin Mazyad Al-Tuwaijri, has put in place an international framework of six strategic axes that will be the basis for his work if he gains the members’ confidence and succeeds in assuming the position of Director General.

The second phase of the process, in which the candidates “made themselves known to the members”, will end on Monday. On that day, the third phase will begin, extending over a period of two months, during which the Chair of the General Council, together with the chairs of the Dispute Settlement Body and the Trade Policy Review Body, will start to consult with all WTO members to assess their preferences and seek to determine which candidate is best placed to attract consensus support.

The first round of consultations between the members will be held between Sept. 7 and 16, to be followed by two additional rounds, during which the field of candidates will be reduced from eight to five to two candidates in the final round.

Tuwaijri, recently launched a website in four languages, in which he explained the features of a major action plan aimed at comprehensive reform within the corridors of the trade organization, taking into account the changes in the balance of powers, the acceleration of global technological advances, and international developments.

Challenges: The Benefits of Globalization

The official portal recently launched by Tuwaijri revealed that the most prominent challenges facing the World Trade Organization are recent developments, stating that the map of the great powers in the past decades has changed at an accelerated pace, as is the case for the geopolitical forces that link the world’s major economies.

The Saudi candidate added that the Covid-19 pandemic exposed the gaps that states face internally and among each other, raising questions about the benefits and fate of globalization, which has somehow revived nationalist tendencies.

As on the global level, Tuwaijri noted that recent developments have affected the framework of the intra-trade movement, warning of the existing trends that he said were a cause for concern. He underlined, in this regard, the need to commit to supporting the international system in order to promote sustainable development.

An Impartial Mediator

In light of the current circumstances, Tuwaijri said that the Kingdom of Saudi Arabia was an impartial mediator, with a role that works to bridge the rift and resolve the divisions between Africa, China, Europe, and the United States. He also noted that the World Trade Organization (WTO) has an opportunity to create a global framework commensurate with the requirements of the 21st century.

The Six Strategies

An Evaluation

The Saudi candidate focused on promoting joint action within six strategic areas, the first of which is the assessment of needs, where he is committed to understanding the experiences of all WTO members and their views during the first 100 days of his term. He would then conduct an in-depth assessment of the global economic landscape and its vulnerability to the consequences of the Covid-19 pandemic, to improve the organization’s approach to managing the multilateral trade system.

Data Acquisition: An Analysis

In the second strategy, Tuwaijri highlights the role of data in enhancing management and improving performance, based on his high-ranking positions in the public and private sectors. He said that he intended to give priority to analyzing the operations of the WTO, enhancing its efficiency, and improving its impact around the world.

Building Trust: A Principle

According to Tuwaijri, the principle of inclusiveness is one of the most important pillars of international trade, as it is intended to listen to all the opinions expressed by all members of the WTO and to enhance the spirit of openness and transparency at the internal and external levels.

In the fourth strategy, Tuwaijri added that disputes were a possibility in multilateral scenarios. “But the mechanisms available for resolving these disputes must be effective and adaptable to the growing and dynamic commercial relations,” he said on his website.

Stimulating Innovation: Collaboration

In the fifth strategy for reforming the organization, Tuwaijri said: “Given that intergovernmental institutions face more scrutiny, the cooperation among these institutions has become necessary to maximize their impact.”

In order for the organization to deepen its relations with its counterparts and with member states, the Saudi candidate intends to launch a roadmap that provides a clear vision of the organization’s work and contributes to improving awareness about international trade issues and their importance in people’s lives.

Commitment and Impartiality

The sixth principle of the organization’s reform approach, according to Tuwaijri’s vision, is achieving progress by abandoning preconceived ideologies and focusing instead on facts.

Therefore, he stressed his commitment to effective communication with various stakeholders, internally and externally, to understand their concerns and requirements, which contributes to enhancing the efficiency of the World Trade Organization in the interest of all.

The Saudi candidate intends to spend 50% of his time interacting with stakeholders, 40% of his time focusing on innovation, and 10% focusing on management, stressing that inclusiveness was required to enhance trade cooperation between countries.



Survey: Swiss Companies Plan Investment Abroad to Offset US Tariffs

FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019.  REUTERS/Arnd WIegmann/File Photo
FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019. REUTERS/Arnd WIegmann/File Photo
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Survey: Swiss Companies Plan Investment Abroad to Offset US Tariffs

FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019.  REUTERS/Arnd WIegmann/File Photo
FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019. REUTERS/Arnd WIegmann/File Photo

Swiss companies plan to relocate some of their operations and production abroad to deal with the impact of US tariffs, according to a study by business association economiesuisse.

It surveyed more than 400 companies before and after Switzerland last month agreed a deal to reduce US tariffs from 39% to 15%, with a quarter of the firms already having identified concrete steps they were taking, Reuters reported.

Nearly a third of those firms have decided to increase investments outside Switzerland and shift production and operations abroad, the survey said.

Some 16% of companies said they were going to relocate operations to countries outside the European Union or the United States, in addition to 10% going to the US, and another 5% looking at the European Union.

Other options included looking more at other markets, raising prices and even halting exports to the US.

Rudolf Minsch, economiesuisse's chief economist, said the relocation and investment was not damaging for Switzerland, which remained an attractive business location, though he cautioned high-skilled jobs and R&D should be kept.

As part of its agreement, Bern has also pledged $200 billion in investments from its companies in the US, raising concerns about the potential long-term economic impact.

UBS has said if the pharmaceuticals industry - Switzerland's biggest export sector - relocates all US-bound production to that country - cumulative Swiss economic growth over five years would be reduced from a forecast 10% to 7.7%.

Minsch said Switzerland was too small to absorb the $200 billion, and had a long tradition of investing abroad.

Those investments also helped secure jobs at home, he said.


UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
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UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo

World food commodity prices fell for a third consecutive month in November, with all major staple foods except cereals showing a decline, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 125.1 points in November, down from a revised 126.6 in October and the lowest since January, Reuters reported.

The November average was also 2.1% below the year-earlier level and 21.9% down from a peak in March 2022 following Russia's full-scale invasion of Ukraine, the FAO said.

The agency's sugar price reference fell 5.9% from October to its lowest since December 2020, pressured by ample global supply expectations, while the dairy price index dropped 3.1% in a fifth consecutive monthly decline, reflecting increased milk production and export supplies.

Vegetable oil prices fell 2.6% to a five-month low, as declines for most products including palm oil outweighed strength in soy oil.

Meat prices declined 0.8%, with pork and poultry leading the decrease, while beef quotations stabilized as the removal of US tariffs on beef imports tempered recent strength, the FAO said.

In contrast, the FAO's cereal price benchmark rose 1.8% month-on-month. Wheat prices increased due to potential demand from China and geopolitical tensions in the Black Sea region, while maize prices were supported by demand for Brazilian exports and reports of weather disruption to field work in South America.

In a separate cereal supply and demand report, the FAO raised its global cereal production forecast for 2025 to a record 3.003 billion metric tons, compared with 2.990 billion tons projected last month, mainly due to increased wheat output estimates.

Forecast world cereal stocks at the end of the 2025/26 season were also revised up to a record 925.5 million tons, reflecting expectations of expanded wheat stocks in China and India as well as higher coarse grain stocks in exporting countries, the FAO said.


World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The World Bank affirmed on Thursday that Saudi Arabia's economy has gained significant momentum for 2026-2027, driven by robust non-oil sector expansion under Vision 2030.

In a report titled “The Gulf’s Digital Transformation: A Powerful Engine for Economic Diversification,” the World Bank said growth is expected to persist in the Kingdom with non-oil activities expanding by 4% on average.

The report lifted its forecast for Saudi Arabia’s real GDP growth to 3.8% in 2025 compared to a 3.2% last October.

The forecast represents a major upward revision affirming the resilience of the Saudi economy and its ability to absorb external volatility. It also indicates growing confidence in the effectiveness of ongoing structural reforms within Vision 2030.

On Tuesday, Saudi Arabia approved its state budget for 2026, projecting real GDP growth of 4.6% in 2026.

The report showed that in the Kingdom, economic momentum is strengthening across oil and non-oil sectors with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

It said oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

At the financial level, the fiscal deficit between 2025 and 2027 is projected to remain at an average of 3.8% of GDP.

Meanwhile, the current account balance slightly recovered, settling at 0.5% of GDP in the first quarter of 2025 against -2.6% in the second half of 2024.

The report said real GDP growth remained stable at 3.6% y/y in the first half of 2025, thanks to the stabilization of the oil sector and sustained non-oil growth.

Non-oil activities expanded by 4.8% over the period, in line with the performance of 2024 while non-oil growth was driven by the wholesale, retail trade, restaurants, and hotels sector (+7.5% y/y in the first half of 2025), consolidating the role of hospitality and tourism as engines of economic diversification.

The report also indicated that oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

These trends are expected to persist in 2026-2027, with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

Job Market and Inflation
The report said the labor market mirrors the stabilization of the real economy and is rapidly becoming more inclusive to women.

Overall unemployment decreased by 0.7 point between the first quarter of 2024 and the first quarter of 2025, with the female unemployment rate dropping from 11.8% to 8.1% over the same period.

Also, inflation remained low and stable in Saudi Arabia, settling at an average of 2.2% in the first half of 2025.

However, price increases have been concentrated in the housing and utilities sector as rental prices have become a key issue, largely because rental supply has failed to match demographic growth, especially in Riyadh.

While this reflects the government’s efforts to dynamize the Kingdom’s urban centers, the price increases prompted the government to freeze rental prices in Riyadh for the next five years, as anticipated increases in housing supply should help control rental prices.

Finally, the report said Saudi Arabia’s external position stabilized in the second half of 2024 and the first quarter of 2025.

Although net foreign direct investment has remained relatively stable, the World Bank has emphasized that recent changes in foreign ownership regulations in Saudi Arabia, coupled with continued structural reforms, are positive steps to attract greater flows of foreign direct investment (FDI).