Saudi-US trade plunges

BBC News ^ | Augustus 23 2002 | Roger Hardy

[knighthawk]

US exports to Saudi Arabia have plunged to a 12-year low.

Figures for the first half of this year show a drop of 30%. Saudi exports to the US during the same period dropped by 24%.

On the face of it, relations between these two old allies are becoming sourer by the day with reports of economic fall-out from the political strains.

Saudi businessmen and newspaper columnists are urging their fellow-countrymen to withdraw their money from American banks.

Expensive lawsuits are under way, as Americans allege Saudi collusion with terror - and Saudis allege defamation and harassment.

Underlying realities

Now the latest trade figures show a marked decline - and some analysts are attributing this, at least in part, to a Saudi campaign under way for much of this year to boycott American products.

The strains are real - but they should not be exaggerated.

Reports in the Financial Times this week that Saudis have already withdrawn billions of dollars from the US have been disputed by Saudi and Western businessmen.

At the government level, neither side has an interest in seeing the degradation of the relationship get out of hand.

It is still in Saudi Arabia's interest to sell its oil to America - and it is quietly signalling it will continue to exert a moderating influence on both price and supply.

It is still in America's interest to act as the guarantor of Saudi security - for a whole mix of political as well as economic reasons.

So talk of divorce is premature.

Recent events have changed perceptions and stirred up strong feelings - but without fundamentally changing the underlying realities.

[knighthawk]

Ping

[Mike Darancette]

Figures for the first half of this year show a drop of 30%. Saudi exports to the US during the same period dropped by 24%.

And yet people are blaiming that Rand Report (made public just a week or so ago) for the rift. Methinks the Saudis are feeling a little guilty.

Saudi businessmen and newspaper columnists are urging their fellow-countrymen to withdraw their money from American banks.

And which Islamic Country could they trust with their money?

[GodsLittleOne]

Methinks the Saudis are feeling a little guilty.

methinks the saudis aren't even capable of guilt.

[skeeter]

It is still in America's interest to act as the guarantor of Saudi security - for a whole mix of political as well as economic reasons.

Name one.

[Imperialist]

Saudi Arabia accounts for less than 2% of US exports.

[sheik yerbouty]

I guess the House of Saud will be having camel dung for dinner!

[bok]

The United States has bought friends or interests and it's time to cut the cord and realize very few countries if any are true friends or allies.

[Diogenesis]

"Hey Saudis, consider that a divorce."

[facedown]

Reports in the Financial Times this week that Saudis have already withdrawn billions of dollars from the US have been disputed by Saudi and Western businessmen.

I have read from several sources that the withdrawals may amount to as much as $200 bn. (Not really a big deal in a 15 tn. economy - just an annoyance, what with all the paperwork.)

Methinks the Saudis are feeling a little guilty. said Mike Darancette

I wish that were true but I'm afraid it's more likely the Saudi's are afraid that their assets may be frozen by DOJ for aiding and abetting terrorists.

methinks the saudis aren't even capable of guilt. said GodsLittleOne

Unless they get caught which is why they're spiriting the money out now before they are exposed undeniably.

[Jorge]

Saudi Arabia accounts for less than 2% of US exports.

Which is not an insignificant amount.

[knighthawk]

http://www.arabicnews.com/ansub/Daily/Day/020823/2002082314.html

Al-Walid Bin Talal speaks for the royal family: Saudi assets were not withdrawn from the US

Saudi Arabia-USA, Economics, 8/23/2002

The Saudi Prince al-Walid Bin Talal has denied the importance and the credibility of reports which talked about the withdrawal of Saudi assets from the US estimated at 200 billion dollars, noting that he is talking on behalf of the Saudi royal family.

In a statement to the BBC, Prince al-Walid said "I have read in the Financial Times and was greatly astonished." He added "according to my information nothing of the sort is correct. There might be some withdrawal operations but not on the scale the paper talked about." He stressed "What I am saying to you represents the position of the royal Saudi family one hundred percent." Al-Walid explained that "the relations between Saudi Arabia and the US is currently troubled, but matters will eventually return back normal by the ultimate end."

He continued "I keep every thing of ( my investments ) and frankly, I increased the volume of my contributions and shares in certain groups in the USA." Prince al-Walid who is number 11 on the list of the most rich in the world with a fortune of 20 billion dollars announced in March buying stocks in the USA estimated at one billion dollars since the September attacks, including 500 million dollars in the City Bank groups. Al-Walid's investments in the USA are estimated at more than $ 15 billion.

In a statement to the Qatari daily al-Jazeera al-Walid stressed that the cases filed in Washington against Saudi Arabia companies, bank and individuals are not linked to the politics pursued by the US administration, noting that these filed cases "are built on unrealistic foundation and will be evaporated by the ultimate end."

[facedown]

Saudi Arabia accounts for less than 2% of US exports.

Yes, so 30% of 2 % is...I'm running out of zeros...

[Consort]

Now the average Saudid citizen will be less well off.

[Amerigomag]

Amazing how liberals can draw a self redeming conclusion from almost any set of facts.

Fact: US Exports. The Saudis (government not royal family) are struggling financially and can't buy much from the US even if they wanted to without dipping into the royal family's Swiss bank accounts.

Fact: Saudi Exports. The US is shifting our oil import dependency away from the Saudi royal family as fast as possible.

[Cacique]

Why Sadam Hussein and the Palestinian Authority of course.

[Vidalia]

Would you trust this guy with your daughter or jump into a foxhole with him?

The Arab people make finesse-lying a sport, since for centuries they have had not a lot else to do but create and tell stories, and once they have screwed you they will tell the world about it by way of a comedic fable or tale...

[Dakmar]

What worries me is the inability or unwillingness of our national leadership to to burst out in guffaws at the effrontery of the Saudis who hide behind their paper-thin idealogie. It seems we are as willing to prostitute and or prostrate ourselves to feed our addiction to petroleum as much as any junkie ever did for his horse.

[big bad easter bunny]

The Saudis should go teach their grandmothers to suck eggs!

[big bad easter bunny]

The Saudis should go teach their grandmothers to suck eggs!