The Saudi Exports Promotion Center (SEPC) strongly expressed regret towards the Indian Government decision to levy what they called flooding charges amounting to more than 22 percent on Poly Proplin, a Saudi petrochemical product, under the pretext that the feed-stock is available in the Kingdom of Saudi Arabia in less prices than in India. In a press release, the Executive Council's President of SEPC Dr. Abdulrahman Al-Zamel said today that his organization has undertaken the responsibility of promoting cross trade between the Kingdom and friendly countries, including India, considered a strategic partner over the last years upon royal instructions of our prudent leadership and emanating from the importance of encouraging cross trade among developing countries. He expressed regret of the Indian move describing it as illogical as India ignored the fact that the Kingdom possesses the preferential characteristic of availability of natural gas locally as well as the nearness of Saudi and foreign petrochemical producers to gas upstream in addition to gas low production cost in the Kingdom compared to other producers, including India. The statement quoted a similar statement by the Gulf Region for Chemicals and Petrochemicals organization as describing the Indian move as unacceptable citing the same reasons drawn by Saudi Arabia. Al-Zamel said the Kingdom has proved during bids to seek admission to the World Trade Organization that its petrochemical prices were based on commercial bases with reasonable profits for gas producers in the Kingdom, a logic accepted and approved by all WTO members, including India. The statement regrets India's indifference towards repeated attempts over the last months by Saudi concerned authorities to convince it of their views. SEPC noted that Saudi petrochemical exports to India don't exceed SR180 million while its free-or- low-duty exports to Saudi Arabia earn billions of Saudi Riyals, with Saudi Arabia not taken any protectionist step. The statement urged the Saudi government not wait for the result of the issue before the WTO arbitration authorities. Instead, decisive steps to protect our national interests should be taken, the statement concluded.
