National industry between development impediments and facing consequences of globalization [Archives:2004/725/Business & Economy]

April 1 2004

Mahyoub Al-Kamaly
A recent study has called on the government of Yemen to work for development and qualification of the national industry to consolidate its capability of competing with foreign commodities that flood the local markets under a trend toward liberalization of external trade and facing consequences of globalization impact on the local consumer.
The study stressed the importance of benefiting from experiences of Arab countries in the field of developing the national industries along with studying impediments that delay development of our national industry and also to protect the consumer. It has also focused on raising efficiency of production and pursuing modern trends in marketing systems as well as meeting consumers' desires and needs.
The study mentions that under the cautions of negative impact of trade freedom on national industry there is a necessity for offering facilities to producers regarding transportation, at ports, providing raw material for industry and founding just taxation and developed centers for exports. The study has also touched on the opportunities provided by agreements of World Trade Orgnisation in developing and protecting local industries. It also drew the attention that the GATT has its effect on national industry in the following areas:
– In the liberation of food stuffs the GATT has caused the annual rise in their prices by a percentage between 10-25%.
– The GATT affects the clothes and textile industry and growth of tourist, banking, insurance and transport services.
– Yemen's following of the way of liberating trade and seeking to obtain membership of World Trade Organisation would render it a market for industrial states commodities and this would lead to decrease Yemeni industries and weakening the volume of its capability of competition in external trade.
Therefore it is very important that the parties concerned should study condition of external markets and to get acquainted with opportunities available for exporting to them. They have to prepare convenient climate for countering the policy of dumping markets with goods, growth of local exports and motivation of investment in export industry sectors.
The study concluded in stressing the necessity of working in two prongs; the first is the encouragement and development of local industries and exports and the second is the warning against impact of trade globalisation on the local consumer. The study on the other hand demanded for the rights necessary for protecting consumers against outputs of globalization and defining the ways ought to be followed for facing impediments of industrial development and the impact resulting from liberating international trade.