SAUDI BOYCOTT CAUSES 30 PERCENT DROP IN U.S. EXPORTS

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MIDDLE EAST NEWSLINE - Sunday, August 25, 2002: ABU DHABI — Saudi Arabia's unofficial boycott on American products has significantly affected exports from the United States.

U.S. government data report that U.S. exports to the kingdom have reached their lowest level since 1990. Saudi sources cite the boycott that began in April 2002 for the reduced exports. The boycott was encouraged by prominent Saudis and advertised in newspapers, mosques, schools and over the Internet.

The U.S. Census Bureau said that during the first half of this year U.S. exports to Saudi Arabia amounted to $2.2 billion. This was a 30.5 percent decrease from the same period in 2001.

In the first half of 1998, U.S. exports to the kingdom reached an all-time high of $5 billion. In 1990, U.S. exports to Riyad were reported at $1.7 billion.

The United States has exported a range of goods and services to Riyad, much of which included weapons. For its part, Saudi Arabia exported mostly crude oil to the United States.

The greatest decrease in U.S. exports was comprised of beverages, tobacco and machinery.

The U.S. government statistics also cited a sharp drop in Saudi exports, mostly crude oil, to the United States. The Census Bureau said Saudi exports to Washington reached $5.6 billion during the first half of 2002.

This was a 24.2 percent decrease from the same period during the previous year. Saudi Arabia has been the leading U.S. trading partner in the Middle East, with Riyad exporting $14.2 billion worth of goods and importing $6.2 billion in 2000.

In all, Saudi Arabia exported $13.3 billion to the United States last year, the foreign trade division of the U.S. Census Bureau reported. Of that figure $12.6 billion, or 95 percent were oil and natural gas.