ExecutiveOrdersEO
MemoMemorandumG.W. Bush · R

Presidential Memorandum

Determinations Under Section 1106(a) of the Omnibus Trade and Competitiveness Act of 1988Kingdom of Saudi Arabia

President Bush issued a memorandum determining that Saudi Arabia's state trading enterprises are significant in its exports and import-competing goods, but that an affirmative determination under Section 1106(a)(2) of the Omnibus Trade and Competitiveness Act is not warranted due to Saudi commitments in its WTO accession bilateral agreement with the U.S. This clears a procedural hurdle for Saudi Arabia's WTO membership bid.

Federal Register Open PDF 70 FR 69419

Impact dates

  1. Federal Register filing

Key directives

  • Determine state trading enterprises account for significant share of Saudi exports and import-competing goods
  • Determine affirmative determination under section 1106(a)(2) is not warranted
  • Publish memorandum in the Federal Register

Who is ordered

Timeline

Immediate

  • Memorandum issued and directed to Federal Register publication

Near term (90d)

  • Federal Register publication (filed November 14, 2005)

Long term

  • Facilitation of Saudi Arabia's WTO accession process

Risks & tensions

  • Negative determination on 1106(a)(2) relies on Saudi commitments that may face implementation challenges
  • Explicit disclaimer that determinations are not binding for other statutes creates legal uncertainty
  • Energy policy considerations (National Energy Policy report) appear to have influenced trade determination
Presidential Memorandum: Determinations Under Section 1106(a) of the Omnibus Trade and Competitiveness Act of 1988Kingdom of Saudi Arabia · Executive Orders