The Impact of the World Trade Organisation (WTO) on the Sustainability Essay

The Impact of the World Trade Organisation (WTO) on the Sustainability of Competitiveness of the Petrochemical Industry in Saudi Arabia - Essay Example o establish the rules to harmonize the rule associate with the chemical industry in Saudi Arabia (Al-Alamy, 2003; Zuhd, 2005l; Al Zuhd, 2005; Al-Sadoun, 2008). According to the GATT says Yu, this â€Å"Harmonize System would ensure greater ability for countries to monitor and protect the values of tariff concession† (Yu, 2008, p. 8). It ensures that there is only One General Rules to be applied to all Members but these rules also cover the specific commitments made by all members. For example, in the part one of the agreement concession called the Most Favored Nation Tariffs, there is a clause known as â€Å"bonded tariff† or the maximum tariff the members should levy. If the tariff levied is higher than the maximum tariff stated, the country has to compensate other parties for the excess amount, but it is based on line-by-line according to national nomenclatures of the time when concession took place. How the tariff is calculated? It is based on the description of the product base rate duty before any tariff, rate of bonded tariff, implementation period, initial negotiation, and other duties and charges (Robinson, 2004; Al-S adoun, 2008). In his paper to the World Bank, Saudi Arabia and WTO in the light of Mena Experience, (http://worldbank.org/idf/ndf3/papers/global/Al-Sahlawi.pdf.) Professor Al-Sahlawi, indicates that compare to the growth of manufacturing industry in the global market, the growth of petrochemical industry in the Middle East and Arab Regions is considered slow. He suggests that it is important to follow Egypt and Morocco to improve petrochemical industry and make it to be more competitive than the manufacturing industry in the global market or to create petrochemical products as export merchandise. In terms of joint ventures in the petrochemical industry, Al-Salawi (ibid) claims that furthering the process of privatization eases the process of foreign direct investment such as in Egypt where the rate of foreign direct investment has increased