Saudi Trade Balance Touches SAR 113 Bn Surplus in Q2

Buildings are seen in Riyadh, Saudi Arabia, December 18, 2017. Picture taken December 18, 2017. REUTERS/Faisal Al Nasser
Buildings are seen in Riyadh, Saudi Arabia, December 18, 2017. Picture taken December 18, 2017. REUTERS/Faisal Al Nasser
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Saudi Trade Balance Touches SAR 113 Bn Surplus in Q2

Buildings are seen in Riyadh, Saudi Arabia, December 18, 2017. Picture taken December 18, 2017. REUTERS/Faisal Al Nasser
Buildings are seen in Riyadh, Saudi Arabia, December 18, 2017. Picture taken December 18, 2017. REUTERS/Faisal Al Nasser

Saudi Arabia’s trade balance, representing the difference between the nation’s merchandise exports and imports, reached SAR113 billion ($30.12 billion) in the second quarter of 2023, as per recently released government data.

According to the General Authority for Statistics report, Saudi Arabia exhibited resilience in its trade performance, as the Kingdom’s overall merchandise exports reached SAR291.6 billion in the second quarter of this year, adapting to a 31.8% adjustment from SAR427.8 billion in the same period of the previous year.

The report highlighted that the decline in overall exports was predominantly driven by a 33.4 % drop in oil exports during the second quarter, amounting to SAR227.7 billion, compared to SAR341.6 billion during the same period of the previous year.

The GASTAT report added that Saudi Arabia’s non-oil exports, including re-exports, dipped 25.9 % in the second quarter to SAR63.9 billion from SAR86.2 billion in the same period of 2022.

On the other hand, non-oil exports, excluding re-exports, decreased by 30.8 % annually in the second quarter of 2023.

The report added that the Kingdom’s merchandise imports increased by 2 % or SAR3.5 billion to SAR178.9 billion in the second quarter, compared to SAR175.4 billion in the same period of the previous year.

The GASTAT report highlighted that chemical and allied products were the most important non-oil export goods in the second quarter of this year, constituting 29.6 % of total non-oil exports.

In the second quarter of this year, China was Saudi Arabia’s primary merchandise trading partner, with exports to the Asian nation amounting to SAR48.8 billion or 16.7 % of the total.

On the import side, China held the lead, accounting for 20.9 % or SR37.4 billion in imports in the second quarter of 2023.

China was followed by the US and the UAE, with imports valued at SAR15.1 billion and SAR10.6 billion, respectively.



EU Slaps Chinese Electric Cars with Tariffs of up to 38%

A European Commission probe launched last year concluded that state subsidies for Chinese EV manufacturers were unfairly undercutting European rivals © STR / AFP/File
A European Commission probe launched last year concluded that state subsidies for Chinese EV manufacturers were unfairly undercutting European rivals © STR / AFP/File
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EU Slaps Chinese Electric Cars with Tariffs of up to 38%

A European Commission probe launched last year concluded that state subsidies for Chinese EV manufacturers were unfairly undercutting European rivals © STR / AFP/File
A European Commission probe launched last year concluded that state subsidies for Chinese EV manufacturers were unfairly undercutting European rivals © STR / AFP/File

The European Union on Thursday slapped extra provisional duties of up to 38 percent on Chinese electric car imports because of Beijing's "unfair" support, a move that risks escalating tensions with Beijing.
A European Commission probe launched last year concluded that state subsidies for Chinese EV manufacturers were unfairly undercutting European rivals -- which Brussels wants to shield as they make the transition from thermal to electric power, AFP reported.

The Chinese Chamber of Commerce to the EU slammed the tariffs, coming on top of current import duties of 10 percent, as "politically-motivated" and "protectionist", while voicing hope the dispute could yet be resolved through dialogue.

Europeans are split on the move, with Germany and its homegrown auto champions, who do significant trade with China, fearing it will do more harm than good if it leads to a clampdown on EU exports as Beijing has already threatened.

German auto giant Volkswagen slammed the move as "detrimental" while the head of BMW said the tariff battle "leads to a dead end".

France and Italy have pushed for tariffs on Chinese EVs -- whose EU market share has skyrocketed -- but Sweden like Germany has expressed reservations, while Hungary is outright opposed.

The provisional tariffs kick in from Friday, with definitive duties to take effect in November for a five-year period, pending a vote by the EU's 27 states.

"Our investigation... concluded that the battery electric vehicles produced in China benefit from unfair subsidisation, which is causing a threat of economic injury to the EU's own electric car makers," the EU's trade chief Valdis Dombrovskis said.

In response, the commission imposed provisional duties on major Chinese manufacturers including 17.4 percent for market major BYD, 19.9 percent for Geely and 37.6 percent for SAIC.

Other producers in China that cooperated with Brussels will face a tariff of 20.8 percent, while those that did not would be subject to the maximum 37.6 percent duty.

US tech billionaire Elon Musk's Tesla -- which manufactures in China -- is the only electric automaker to have asked Brussels for its own duty rate, to be calculated based on evidence it has submitted.

The Tesla Model 3 would be affected as well as the electric Mini, the Volvo EX40 and all other non-Chinese branded cars made in China.
The move comes despite the opening of talks between Chinese and EU trade officials, and trade chief Dombrovskis said Brussels will continue "to engage intensively with China on a mutually acceptable solution".

China's electric car maker Nio said it still hoped for a resolution with the EU, while fellow EV maker XPeng said it would "find ways to minimise the impact on consumers" without changing its international strategy.

EU officials have indicated that, should a negotiated solution emerge, they may not ultimately need to levy the tariffs.

But Dombrovskis cautioned that "any negotiated outcome to our investigation must clearly and fully address EU concerns and be in respect of WTO rules."

Cui Dongshu, secretary-general of the China Passenger Car Association, told AFP the move "would obviously have a negative impact on the development of China's EV industry, especially its development in the EU in the short term."

Beijing has already signalled its readiness to retaliate by launching an anti-dumping probe last month into pork imports, and Chinese media suggest further probes could be in the works.
The United States has already hiked customs duties on Chinese electric cars to 100 percent, while Canada is considering similar action.

But Brussels faces a delicate balancing act as it seeks to defend Europe's auto industry -- the jewel in its industrial crown -- while both avoiding a damaging showdown with China and meeting its targets for slashing carbon emissions.

The EU aims for Europeans to switch massively to electric vehicles as it plans to outlaw the sale of new fossil fuel-powered cars from 2035.

Chinese-made EVs' market share in the EU climbed from around three percent to more than 20 percent in the past three years, according to the European Automobile Manufacturers' Association.

Chinese brands account for around eight percent of that share, it said.

Germany's Kiel Institute for the World Economy, alongside Austrian institutes, predicted the provisional higher taxes would reduce vehicle imports from China by 42 percent.

Electric car prices could rise by an average of 0.3 to 0.9 percent in the EU, they added.

German auto manufacturers fear any retaliation could hurt their activities in China.

Duties were "generally not suitable for strengthening the competitiveness of the European automotive industry in the long term -- we reject them", Volkswagen said.