10/5/2010US has always found Kuwait to be a reliable economic, security partner -- Ambassador Jones
US Ambassador to Kuwait Deborah Jones with journalists during economic roundtable discussion
KUWAIT, The United States has always found Kuwait to be a reliable economic and security partner, including with petroleum products, US Ambassador to the State of Kuwait Deborah K. Jones said here Tuesday.
Her remarks came during the economic roundtable discussion, held at the US Embassy in Kuwait, with the aim to introduce the Business Council for International Understanding (BCIU), which partners with the US Department of State in hosting a multi-city tour with nine US Ambassadors serving in the Middle East.
The US-Middle East Business and Export Promotion Tour will take place from October 18 to 22, 2010, and will feature US Ambassadors serving in Algeria, Egypt, Kuwait, Libya, Oman, Qatar, Saudi Arabia, Tunisia, and the United Arab Emirates. The program will showcase growth sectors in the region and provide unique opportunities for companies to develop strategies that increase US exports and expand business in the Middle East.
Responding to a question by Kuwait News Agency (KUNA), Ambassador Jones said "Kuwaitis are extraordinarily successful entrepreneurs. The definition of entrepreneur is a Kuwaiti. I think they're known for being some of the sharpest, most talented traders and businessmen." "Kuwait should take great pride in the fact that of all the GCC countries, Kuwaiti is the number one investor in other countries .... Kuwait in the last five or six years has invested over USD 36 billion in other countries.
"But during the same period, Kuwait attracted less than USD 600 million in foreign direct investment. Does Kuwait need the capital? Not necessarily, but Kuwait needs the development and the opportunity for human resource development for its young people and for its own markets internally.
"We have had a very long and fruitful relationship with the Kuwait Investment Authority, which handles the country's Future Generations' Fund. The latest example of reports are the KIA is going to invest in the IPO offering for AIG's Asia branch.
And if that's the fact, that's a continuation of what has been a long and fruitful relationship for us with KIA." Explaining how US firms and businesses perceive Kuwait, the Ambassador told KUNA "they see it as a developing democracy, with a lively press," adding "you have the means to do it. You have a small population and high income, high level of education, you have 94.5 percent literacy in Kuwait, which is remarkable in the Gulf. You have every tool you need at your fingertips; it's a matter of doing it."
On the recently-approved privatization bill in Kuwait, and how it would help boost the country's economic status, Ambassador Jones said "a lot of people have questioned whether the privatization law will attract foreign investment, because as long as the government retains veto power, whether it's through the Parliament or other, sometimes companies - whether in the US or anywhere else - when companies see strong protections for employees that don't allow them flexibility, these are problematic.
As I mentioned before, the IPR (Intellectual Property Rights) legislation is not compliant with the requirements of the World Trade Organization's TRIPS agreement. We think that strengthened IPR laws here can contribute to the development of domestic industries that rely on intellectual property.
She added that the tenders for government projects can be extremely lengthy, as in Kuwait, winning a tender does not always necessarily mean that it is a keeper.
Responding to another KUNA question in regard of newly-imposed sanctions on Iran and how it would economically affect Kuwait's aspiration of turning into a regional and international commercial hub, especially as a re-exporter, Ambassador Jones said "Kuwait have to assess the political cost-benefit, as well as the economic cost-benefit." She added "there's no question that the sanctions are having an impact; they were designed to have an impact; but they were very carefully-targeted not to harm the Iranian people in their day-to-day living, but certainly to bring the government to reconsider its position.
On Iraq, she told KUNA "I believe that Kuwait is like a natural economic enzyme for Iraq. If Iraq really wants to open the trade and get back in, Kuwait is an excellent partner for Iraq because you already have the connections and the means." Ambassador Jones carried on to say that through 2008, US trade volume grew steadily, "but of course, last year world trade everywhere took a big drop. But we see that recovering this year - US exports to Kuwait in the first seven months of 2010 were about 80 percent higher than they were last year during the same period and they are already approaching almost 92 percent of what they were in 2009." "Now, for their part, Kuwait exports have also recovered, they are 72 percent higher than in the same period in 2009 and about 84 percent of what Kuwait's total exports to the US last year.
Pointing out to US President Obama's National Export Initiative, Jones said it aims at doubling US exports worldwide over a period of five years. "Interestingly for us, this coincides with Kuwait's announcement of its own Development Plan with USD 104 billion over the next four years, with some stellar projects." "Later this month, I'm travelling back to the United States to visit five states - New York, Illinois, Minnesota, Wisconsin and Texas - as part of a delegation of US Ambassadors to highlight business opportunities in the region. My goal is not only to talk to companies that already know Kuwait and are here, but also to discuss the opportunities - and also the challenges - in doing business in Kuwait. I will talk to that 99 percent of US companies, who are making high-quality products, but are not exporting and are not reaching out," she said.
On reasons behind picking those five states, the ambassador said "because those states exported over a quarter, about 28 percent, of total US exports last year.
That includes aircraft parts, food and medical equipment. All of these states have experience in exporting to the GCC, particularly to Saudi Arabia and to the UAE.
Again on the import side, Kuwait is the 19th largest exporter to Texas." She also revealed that later on this week, and for the first time in four years, US Undersecretary for International Trade, Francisco Sanchez, will come to Kuwait "as a demonstration of how serious we are about trade." "Our concern too is that Kuwait is a young country with a young population, which is going to need meaningful work and also opportunities to mentor and to partner and to grow with these corporations," she stressed.
"Kuwait is not an easy place, in some ways, to do business, and we know that. It ranks 61st in the world in 'ease of doing business' and 5th in the GCC. In fairness, even at 61st, Kuwait is still in the top third of all countries ranked by the World Bank. Still, we think there are opportunities and things that we can promote.
Ambassador Jones concluded by saying that her personal goal of the trip is to see how the United States can be at the front of Kuwait's own efforts to look at alternative, environmentally-correct things. Let's show how flexible and creative we (Kuwait and the United States) are. The United States understands that Kuwait has a young, creative and dynamic population that Kuwait wants to be proud of. I see young people here all the time. I always say that Kuwait has one renewable resource - its people".
http://www.kuna.net.kw/NewsAgenciesPublicSite/ArticleDetails.aspx?id=2115696&Language=en
