Seminar on Situation & Requirements of Foreign Trade [Archives:2000/48/Business & Economy]

Mahyoub Al-Kamali
During the Seminar organized by the Consultative Council during November 11-13 a number of issues related to the situation and requirements of Yemens foreign trade within the frame- work of the economic reforms being implemented were elaborately highlighted and discussed. The main point the discussions resulted in was that Yemeni exports depend heavily on revenues of oil which mean more bounds on exports.

Exports Policy
Mr. Salem Al-Miqdad, researcher from the Yemen Central Bank, has explained how Yemens foreign trade has been concentrating on non-Arab Asian Countries during the past three years.
The number of international groups importing from Yemen have fallen from 5 groups in 1997 to 2 in 1999. The research estimated volume of daily oil export to International markets at 1.6% of the total international demand estimated at about 28 million barrels per day. About 80% of oil export revenues is spent on Yemens imports of foodstuffs. The study suggested an organization of Yemens export and productive abilities and encouraging the private sector to undertake an active role in this sphere.
Yemens exports to Saudi Arabia and Kuwait can be considered as the best trade relations of Yemen with Arab countries. Rate of exports to those countries reached 2.5%, 6.2%, 3.9% during 1997-1999 against 1.2%, 4.8%, 2.8% to the rest of Arab countries.
The research highlighted the increase in Yemens manufactured exports to 44% in 1999 in comparison with a 9% growth of non-oil exports.

Imports Policy
Exporting groups to Yemen rose to 6 last year in comparison with 5 in 1997. Import relation has also been connected with 16 main exporting countries.
Yemen was able to achieve a balance in importation from international groups during 1995-1998. However, such a balance was achieved at a rate of 27.2%, 29.5% as with Arab countries, compared to non-Arab Asian countries which registered a rate of 24.1%, 24.9% and the European Economic Group whose imports to Yemen reached 24.7%, 26.6% of the total imports during the same period.
Yemen enjoyed good trade relations with American countries group. Imports from this group formed 13.2%, 10.8% during the same period.
Since 1999 Yemen has been proceeding with its trade policy for achieving more enhanced relations with Arab countries. The main Arab imports come from UAE, KSA and Kuwait. In 1999 imports from those countries were estimated at 92221.2 million Rials which is four times compared to those from the rest of Arab counties.
Yemen also imports from 6 non-Arab Asian countries. Those are: Singapore, Malaysia, Japan, India and Turkey. Imports from those countries reached 53984.7 million Rials in 1999. In this year main imports came from Britain, Germany and Italy whose exports to Yemen were estimated at 46486.8 million Rials.

Hindrances of Economic Reform
Many researchers talked about problems of economic reforms. Dr. Abdulwasie Muqbel and Dr. Sabah Sharaf from Aden University warned against the overflow of products and tax evasion. Tax evasion is estimated at 50 billion Rials which helps redouble the burden of the budget.
Smuggled goods entered the country through 95 approaches. They form 34% of total imports with an estimated cost of 93 billion Rials in 1999. Those goods are marketed in 23 markets in Sanaa, Hajah, Hodeidah, Taiz and Mareb

Illegal Trade
Brands and types of smuggled goods were illustrated by Eng. Abdu Sinan from the Ministry of Industry. Many foodstuffs, drugs, insecticides, cigarettes, etc. entered the country. In return there is a counter smuggling process in which local products are smuggled abroad. This kind includes antiquities, scripts, livestock, diesel, marine life, etc.

Recommendations
The Seminar stressed supporting industry to increase production and continuation of addressing failures of development. The seminar also came out with the need to improve agriculture, activate the private sector to match with its required role in the development process, adopt a trade policy that balances between production and consumption, control smuggling approaches and force tax evaders to abide by tax laws.

We think it is appropriate in this respect to give a brief account of the Consultative Council (CC) that has undertaken organization of the above seminar.
It is a newly established council in the Republic of Yemen. Article No 9 for the year 1994 of the constitution defined the conditions pertaining to the Consultative Council. One of the objectives of the CC is to extend advice through offering opinions and consultations on development in financial, political, social, administrative, legal and security sectors in accordance with the law defining its establishment. The council is represented by most of the political, social and technical orientations in the country. It also embraces a number of experts in different fields and specializations, besides representatives of political parties and social dignitaries.

The law defines a host of issues the council is in charge of, the most important of which are the following:
* Studying and discussing internal and external issues that are related to the national interest by offering consultations and ideas that will help form the general broadlines policies.
* Presenting studies and proposals which help implement development strategies; help mobilize public efforts to make the democratic approach take roots; extend the public participation base; introduce suggestions that help activate institutions of the country; solve social problems and deepen the national unity.
* Present consultations and advice in the primary laws which the President refers to the council.
* Presenting opinion to re-consider or amend different economic and social laws in case they have a negative effect on the public interest.
* Presenting opinions and consultations that will help draw up the national strategy of the country in the political, economic, social, military and security fields.

The council has to deal with all these issues through eight specialized permanent committees which are as follows:
1) The Constitutional, Legal and Judiciary Committee
2) The Political, External Relations and Emigrants Affairs Committee
3) The Economic, Financial, Oil and Mineral Wealth Committee
4) Services, Local Administration and Human Development Committee
5) Security and Defense Committee
6) Educational , Cultural, Media and Tourist Committee
7) Agricultural, Fish, Water and Environmental Resources Committee
8) Rights, Freedoms and Civil Society Institutions Committee

Mechanism of the Council committees:
* When the council was established a five-year plan was drawn up for the council activities. According to this plan, annual programs are prepared, except for laws and issues referred to the council by the President.
* Each of the permanent committees of the council is authorized to prepare topics and issues that it will deal with.

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