Why Is International Trade Important for Sudan - Egypt Essay Example
University Why is international Trade important for Sudan? - Why Is International Trade Important for Sudan introduction?? Mohammed Ali For decades and taught to schoolchildren in Arabic States that Sudan is basket world food for its vast lands suitable for agriculture and water resources and good atmosphere , In addition to other petroleum and mineral wealth, which is not so far clear statistics around.
Sudan economies adopted since independence in the middle of the last century on Agriculture and follow the same marketing approach inherited from the colonial period. And has not kept pace with global changes in either marketing or product quality except some agricultural industries that was where the Gulf capital plays a big role since the Gulf oil boom as the sugar. Trade relations and political instability
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The positions of the Sudanese Government’s political supported for Saddam Hussein during the Gulf war, led to the suspension of Arabic investments for Sudan and cut ties with most of the countries that were business partners with Sudan throughout contracts, and then increased it worse by accusing neighboring Egypt to Sudan in assassination attempt on President Hosni Mubarak in 1993 and then insert United States of Sudan on the list of countries sponsors of terrorism and the application of strict economic sanctions and continues to date.
This led to the Sudanese Administration went to countries which direct commercial interests particularly China, and began exporting oil in 1999 and then the Sudanese economy showed a growth rate of more than 10 percent in 2005 due to the increase in oil production, and continued expansion in the construction and services sectors, where it became the fastest growing economies in the world, according to a report in the New York Times in October 2006.
Despite the u. s. sanctions imposed. With the secession of southern Sudan on the Sudan in 2010, It has lost 70% of oil revenues and raising inflation to record levels, especially with the lack of agreements with the State of the fledgling southern oil-rich but landlocked where refineries and ports of export to the Sudan, which had led the parties to negotiations on dividing oil and trade integration between the parties.
In light of this, Sudan realize should not rely on oil, create alternatives and search for investments in other sectors and activate the signed trade agreements and try to appease the rich countries of the region, particularly in the light of the changes in the Arab spring With the focus in the non-oil products, which on average, 40% of GDP, a real need to Attention to quality and opening of new markets, and enhance its competitiveness.
The importance of trade relation to Sudan products non-petroleum International trade should remain profitable for the country and with greater return is to ensure the stability of the economy and the non-oil exports in cotton, Sesame, livestock, groundnuts, gum Arabic, sugar to China, Japan and Indonesia. Food imports, manufactured goods, transportation equipment and refining, pharmaceuticals, chemicals, textiles and wheat from China, Saudi Arabia, U.
A. E. , India, Egypt and Italy. China and member countries of the Gulf Cooperation Council (GCC) and Japan are key partners. If we look at the kind of non-oil exports from Sudan as agricultural and livestock products and the kind of the receiving markets are aware of the importance of trade relations of mutual agreements to develop the infrastructure for these products and ensure a stable market.
For example, the Arabic gum, although Sudan grab 80 percent of global production but there are not well-defined permanent markets despite the global importance, particularly in relation to the pharmaceutical industry, confectionery, and due to poor marketing and lack of manufacturing that make it desirable to consumers, it is sold by the indiscriminate and cheap prices for reprocessing and filled out later which achieves real return to Sudan.
Also for livestock, although it enjoys a competitive advantage in the region’s markets, but market export suffered from instability in the absence of long-term agreements which can help considerably in this sector, especially with the Gulf States and Egypt, which imports Saudi Arabia alone some two million head of sheep annually to meet religious pilgrimages. Sudan FTA’s and its significance: Sudan is a member of the common market for eastern and southern Africa and known as the COMESA , with nineteen States with an area of 12 million
square kilometers and is aimed at integration, including through several stages leading to economic integration by 2025. Can the Sudan through its access to the markets of PPC (400 million) and the marketing of products is not relevant and competitive in the global market, but in fact the COMESA is facing enormous challenges in the region politically instability, armed conflicts and lack of transport infrastructure between countries add the lack of application of conventions.
On the other hand, Sudan is one of the Member States in major Arabic free trade area since 1997 and aims to open up to the world economy with various trade blocs International (especially EU) and economic integration among the Arabian states affects for Sudan investment flows and increasing production and Arabic markets.
Also this Convention did not materialize because of the contrast between the Governments of the region and its interest in Sub Arabic blocs such as the Gulf Cooperation Council and the Maghreb Union, but it is expected that a significant difference after the smoke clears for Arab spring and articulations of political region is already creating economic integration encompassing all of Sudan, Egypt and Libya over the past few months following the Arab spring.
But it is expected that a significant difference after clearing the smoke from the Arab spring and the political stability of the region. Already started creating integration economic includes all of Sudan, Egypt and Libya before a few months and that was the result of the Arab spring. Recourses: * The Sudanese Ministry of foreign trade http://trade. gov. sd * CIA World Factbook reports for 2009 * www. globaltrade. net/m/c/Sudan. html * www. economywatch. com/world_economy/sudan/export-import. html * www. sudan. net * www. comesa. int