#1
From an official Saudi source regarding trade betwen our nations:
"The decline in British exports to the KSA can be attributed to a number of factors. The most dramatic decline, which occurred in 1998/99 - when British exports plummeted by more than 60% to just $2.5 billion in 1999 from a high of over $6 billion in 1997 - can be attributed to a decrease in the export of defence equipment. From 1985 onwards, under the Al-Yamamah deal, the UK was involved in supplying a large quantity of defence equipment to the Saudi armed forces. In 1998/99, the new Labour government began enforcing tougher weapons export guidelines, which can be attributed to going some way towards correcting the huge trade imbalance between the Kingdom and the UK.
In 1999/2000, British exports hovered around the $2.4 billion mark and began plummeting once more in 2001/2002. This serious but much less dramatic decline was a result of weak Saudi demand for British meat and dairy products, in the aftermath of the UK's BSE and foot-and-mouth crises."
In simple terms the New Labour government denied British industry the opportunity to sell over £45b of goods to Saudi during its term in office, which must have had a negative impact on our economy and jobs.
It is to be hoped the new government will get around to reversing this trend asap.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#2
no mention in the communique about the problems that one of our major exporters had over alleged "bungs".
#3
None Howard, but then that's how the Saudi's and other African and Arabic nations do business. If we want to trade in that club we have to play by their rules. That's a lesson Motorola learned in the late 90's. A few gifts in, and mega-business back. We worry too much sometimes.
#4
Unfortunately, we seem to be the only country concerned about playing things by the rules. The end result being that we lose the contracts and someone else steps in, thank you very much.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#5
fully concur with the 2 posts above, certain countries have business practices repugnant to us, however we have to play the game or do not make the sale.
#6
Sometimes those business practices are not really "bent", just based on charm. In Ireland much business is done on a handshake and some flannel, and it works. The expectation of delivery is there and sanctions follow of you don't deliver or if you renege, it is understood.