Us Saudi Arabia Trade Agreements

As the world`s largest oil producer, Saudi Arabia has always been a strategic partner for the United States. The two countries have a long history of cooperation, spanning decades, and this relationship has only grown stronger over time. Today, US-Saudi Arabia trade agreements are a vital part of the global economy, with billions of dollars in trade flowing between the two nations every year.

The Beginning of US-Saudi Arabia Relations

During the early 20th century, the United States began to realize the importance of the Middle East and its vast natural resources. In particular, oil was becoming an increasingly valuable commodity, and the US needed reliable partners in the region to ensure a steady supply.

As the world`s largest oil producer, Saudi Arabia was a natural choice for the US. The two nations established diplomatic relations in 1933, and over the decades, this relationship has only grown stronger.

Bilateral Trade Agreements

US-Saudi Arabia trade agreements cover a wide range of industries, including oil and gas, defense, technology, and agricultural products. These agreements help to promote economic growth and job creation in both countries, while also strengthening ties between the two nations.

One of the most significant trade agreements between the US and Saudi Arabia is the Bilateral Investment Treaty. This agreement provides a framework for US companies to invest in Saudi Arabia, and vice versa, by protecting investments and setting up a dispute resolution mechanism. This agreement has helped to boost investment and trade between the two countries, and it continues to play a vital role in the US-Saudi Arabia relationship.

Another key trade agreement is the US-Saudi Arabian Joint Economic Commission. This commission meets regularly to discuss economic and trade issues, and to explore ways to further strengthen the economic ties between the two countries. This platform has helped to foster cooperation on a range of issues, from energy to agriculture to intellectual property rights.

Challenges in US-Saudi Arabia Relations

Despite the many benefits of US-Saudi Arabia trade agreements, there have been some challenges in the relationship over the years. One of the most significant challenges is the ongoing tension between the two nations over the issue of human rights. The US has been critical of Saudi Arabia`s treatment of women and minorities, and there have been calls to rethink the US-Saudi Arabia relationship in light of these concerns.

Additionally, the killing of journalist Jamal Khashoggi in 2018 sparked international outrage and led to increased scrutiny of Saudi Arabia`s human rights record. This event strained US-Saudi Arabia relations and led to calls for the US to take a tougher stance on the Kingdom.


Despite the challenges, US-Saudi Arabia trade agreements continue to play a vital role in the global economy. The two nations have a long history of cooperation, and their economic ties are only growing stronger. While there are certainly areas of tension and concern, the US-Saudi Arabia relationship remains an important strategic partnership for both nations.

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