The United States has reported a sharp drop in trade with
Arab states since the September 11 atttacks.
Deputy Assistant Commerce Secretary Molly Williamson said U.S. trade
with the Middle East has dropped by between 20 and 26 percent over the last
year. She was speaking at a seminar which also noted hopeful signs in trade relations with the Gulf states.
Officials said much of the drop in trade was the result of rising
anti-American sentiment in the Middle East over the past year. This included
a boycott in such countries as Egypt, Jordan and Saudi Arabia, Middle East Newsline reported.
"It would be irresponsible to say there was no impact on trade relations
between the United States and the region as a result of Sept. 11," Ms.
Williamson, who is responsible for Africa and the Middle East, said. "The
impact is profound."
She said U.S. trade with the Middle East prior to Sept. 11, 2001 was
$65 billion.
Addressing a seminar in Washington last week, Ms. Williamson also
attributed the drop in U.S.-Arab trade to "a
global recession, a volatile U.S. economy, as well as economic setbacks in
countries throughout the Middle East." She said Arab countries continue to
engage in huge deals with the United States, citing the November 2001
purchase of Boeing engines by Dubai Emirates Airlines.
"This was one of the biggest orders in aviation history," she told the
seminar, entitled "Revisiting Arab-U.S. Relations: September 11 ø One Year
Later and the Way Forward."
Officials said the Bush administration has been encouraging Arab trade
by instituting free trade zones in the Middle East. They cited the
U.S.-Jordan Free Trade Agreement and negotiations for a similar accord with
Morocco.
For her part, Ms. Williamson said she expected that FTA negotiations
with Morocco would advance by 2003. She would not elaborate.
But much of the conference dealt with the future of U.S. business in
Saudi Arabia, Washington's leading trade partner in the Middle East.
Speakers expressed concern that Saudi nationals would pull their investments
out of the United States in fear that they would be frozen in the
Washington-led war on terrorism. Others expressed concern that political
tensions could lead to a Saudi reduction in oil output.
But Ahmed Al Arnaout, chairman and president of Aramco Services Company,
dismissed these concerns. He said Saudi oil exports would not be disrupted.
"Saudi Aramco plans to produce oil to cover shortages in case of
interruption to ensure the stability of the world oil market, and to remain
a dependable source of energy," Al Arnaout said.
