RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/SAU/1/Rev.5 
17 October 2000 
 (00-4281) 
Working Party on the Accession 
of the Kingdom of Saudi Arabia Original:   English 
 
 
 
ACCESSION OF THE KINGDOM OF SAUDI ARABIA 
 
Communication from the Kingdom of Saudi Arabia  
 
Domestic Support and Export Subsidies 
 
Revision  
 
 The Ministry of Commerce of the Kingdom of Saudi Arabia has submitted revised 
information on domestic support and export subsid ies in agriculture (document WT/ACC/4) and 
supporting tables, which are reproduced hereunder. 
_______________ 
  WT/ACC/SPEC/SAU/1/Rev.5 
Page 2 Table DS:1 
 
DOMESTIC SUPPORT:   Saudi Arabia 
REPORTING PERIOD:  calendar years (1996-1998) 
Total Aggregate Measurement of Support (AMS)  
(From attached Supporting Tables)  
 
Million Saudi Riyals 
Year  Wheat Barley Livestock feed Poultry feed Total AMS * Agricultural 
domestic product Total  AMS  
(Per cent) 
    
1996 750.87 154.17 2,162.48 243.00 3,310.52 32,162  
1997 1,366.80 130.63 1,180.03 279.00 2,956.46 33,400   
1998 1,582.97 138.53 231.89 194.07 2,147.46 33,900   
Average 1,233.55 141.11 1,191.47 238.69 2,804.81 33,154 8.5 
 
*  Support of dates, palm trees, and non-product-specific is not included (De minimis) 
 
Sources : 1 Saudi Arabian Monetary Agency     
 2 Ministry Of Agriculture and Water    3 Ministry Of Planning. 
 4 Saudi Arabian Agricultural Bank 
 5 Grain Silos & Flour Mills Organization . 
 
Note
: The basis of calculation is explained in the attached methodological note. 
   WT/ACC/SPEC/SAU/1/Rev.5
 Page 3Supporting Table DS:1 
 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1996-1998) 
Measures exempted from the reduction commitment - “Green Box“ 
Million Saudi Riyals  
Measure type Name and description of measure 
with reference to criteria annex 2 of 
the Agreement on Agriculture Monetary value of  
measure in year  
in question Data sources 
1 2 3 4 
(a) General Services: 
1996 1997 
1998 
 
Average 
 Research
 
Agricultural Research Stations, Plant tissue cultures lab, Operation and 
maintenance, Regional lab, 
Agricultural Research Centers and Distance sensors centers.  
13.01 12.07 
13.44 
---------- 
12.84 Ministry of Agriculture 
& Water 
 
 
1996 1997 1998 
 
Average Pest and disease control:
 
Securance of veterinary, vaccine production, Veterinary labs, Air spray pest and disease control, and 
Veterinary services.  
36.42 35.78 34.89 
-------- 
35.69  
 
1996 
1997 1998 
 
Average Training
: 
Saudi American Cooperations, Saudi 
Chinese Cooperations, F.A.O. Agreement and Veterinary training centers.   
23.53 
21.23 21.04 
------- 
21.93  
 
 
1996 
1997 
1998 
 
Average Extension : 
 Agricultural Extension Expenses, 
Programs of nurseries and Extension 
and development of  Honeybees.   
 
1.08 
1.59 
1.43 
-------- 
1.37   WT/ACC/SPEC/SAU/1/Rev.5 
Page 4 Measure type Name and description of measure 
with reference to criteria annex 2 of 
the Agreement on Agriculture Monetary value of  
measure in year  
in question Data sources 
 
1996 
1997 
1998 
 
Average Inspection Services : 
Operation of stations of sorting and 
purification of seeds and 
Establishment and equipping of veterinary quarantine.  
29.00 
29.00 
29.00 
-------- 
29.00  
 
1996 1997 1998 
 
Average Infrastructural Services:
 
Construction of dams, maintenance of dams, Irrigation and drainage systems, Prevention of moving sand 
and Planting and development of 
forests.  
30.77 41.69 57.21 
--------- 
43.23  
1996 
1997 
1998 
 
Average General Services Total  133.81 
141.37 
157.02 
---------- 
144.07  
 (b)  Public stockholding for     
food security purposes* 
1996 
 1997 
1998 
 
Average GSFMO, among other things, fulfils 
a public stockholding role for food security purposes by managing and controlling the storage and 
distribution of grains.   
 
69.45 69.45 
69.45 
--------- 
69.45 Grain Silos  &  
Flour Mills Organization 
(c) to (l)  NIL  
 
* This meets the criteria of  footnote to paragr aph 3 of Annex 2 of the Agreement on Agriculture 
   WT/ACC/SPEC/SAU/1/Rev.5
 Page 5Supporting Table DS:2 
 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1996-1998) 
Measures exempted from the reduction commitment – Sp ecial and Differential Treatment – Development Programmes 
Million Saudi Riyals  
Measure type Name and description of measure 
with reference to criteria annex 2 of 
the Agreement on Agriculture Monetary value of  
measure in year  
in question Data sources 
1 2 3 4 
(a) to (c)  NIL  
 
  WT/ACC/SPEC/SAU/1/Rev.5 
Page 6 Supporting Table DS:3 
 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1996-1998) 
Measures exempted from the reduction comm itment – Direct Payments under Production-Limiting Programmes – "Exempt Direct Payment s" 
Million Saudi Riyals  
Measure type Name and description of measure 
with reference to criteria annex 2 of 
the Agreement on Agriculture Monetary value of  
measure in year  
in question Data sources 
1 2 3 4 
(a) to (c)  NIL  
   WT/ACC/SPEC/SAU/1/Rev.5
 Page 7Supporting Table DS:4 
 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1996-1998) 
Calculation of the Total Aggr egate Measurement of Support 
Million Saudi Riyals 
Description of basic product 
(including non-product specific 
AMS) Product specific AMS (from 
supporting Tables DS:5 to DS:7 
below) Product specific measurement of 
support (from supporting Table DS:8 
below) Current Total AMS (Aggregate 
1 2 3 4 
Wheat 1,233.55  1,233.55 
Barley (domestic) 141.11  141.11 
Livestock feed 1,191.47  1,191.47 
Poultry feed 238.69  238.69 
Dates 25.10  De minimis 
Palm trees 7.31  De minimis 
Non-product specific   De minimis 
Current Total AMS 2,804.81 
 
  WT/ACC/SPEC/SAU/1/Rev.5 
Page 8 Supporting Table DS:5 
 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1996-1998) 
Product-Specific Aggregate Measuremen ts of Support:  Market Price Support 
Million Saudi Riyals  
Description  of 
Basic products Calendar year Measure 
type (s) Applied 
administered 
price (SR/T) External 
Reference 
price (SR/T)(*) Eligible 
Production 
(Tons) Associated 
fees/levies Total Market 
price support 
Million (SR/T( Data sources 
1 2 3 4 5 6 7 8 
((4-5)*6)-7 9 
 
Wheat  
1996 
1997 
1998 
              
Average  
Market 
price support  
1,500 
1,500 
1,500 
---------- 
1,500  
884.36 
737.89 
587.62 
---------- 
736.62  
1,219,666 
1,793,438 
1,735,000 
----------- 
1,582,701   
750.87 
1,366.80 
1,582.97 
---------- 
1,233.55 Grain Silos  & 
Flour Mills 
Organization 
 Barley  
1996 
1997 1998 
              
Average   
1,000 
1,000 1,000 
----------- 
1,000  
665.40 
584.74 445.87 
---------- 
565.34  
460,747 
314,566 250,000 
------------- 
341,771   
154.17 
130.63 138.53 
----------- 
141.11 Grain Silos  & 
Flour Mills 
Organization 
(*)  World Prices C.I.F Jeddah 
   WT/ACC/SPEC/SAU/1/Rev.5
 Page 9Supporting Table DS:6 
 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1996-1998) 
Product-Specific Aggregate Meas urements of Support:  Non-Exempt Direct Payments 
Million Saudi Riyals 
Description 
of basic 
pro- duct Calendar 
year 
 Measure 
type(s) Applied 
Administe-
red price External 
Reference 
Price Eligible 
Production 
 Total price 
related 
direct 
payments Other non- 
Exempt 
direct 
Payment Associated 
fees / levies Total direct 
Payments 
 Data 
Source 
1 2 3 4 5 6 7 
((4-5)*6) 8 9 10 
(7+8-9) 11 
 
Dates 1996 
1997 
1998 
 
Average      26.99 
28.01 
20.29 
 
25.10  26.99 
28.01 
20.29 
 
25.10 Ministry of 
Agriculture 
& Water 
  WT/ACC/SPEC/SAU/1/Rev.5 
Page 10 Supporting Table DS:7   
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1996-1998) 
Product-Specific Aggregate Measurements  of Support:  Other Product Specific Support and Total Pr oduct-Specific AMS 
 
Million Saudi Riyals 
Description 
of basic 
product Calendar 
Year Measure 
type(s) Other 
product 
specific 
Budgetary 
outlays Other 
product 
specific 
support 
(include 
calculation 
details) Associated 
Fees/ 
Levies Total other 
Product 
specific 
support Market price 
Support 
(supporting 
Table DS-5) Non-exempt 
direct 
payments 
(supporting 
Table DS-6) Total AMS Data 
sources 
1 2 3 4 5 6 7 
(4+5-6) 8 9 10 
(7+8+9) 11 
Livestock Input 
Subsidy * : 
 
(a) Domestic 
Barley   1996 
1997 1998 
 
Average     177.57 
95.86 
414.47 
 
104.96   177.57 
95.86 
414.47 
 
104.96 * Annex 2 
(b) Imported Barley 1996 
1997 1998 
 
Average     1,984.91 
1,084.17 
190.42 
 
1,086.50   1,984.91 
1,084.17 
190.42 
 
1,086.50 * Annex 2 
Poultry Feed (imported corn and soybean)
* 1996 
1997 1998 
 
Average     243.00 
279.00 194.07 
 
238.69   243.00 
279.00 194.07 
 
238.69 Ministry of 
Finance 
and 
National 
Economy 
Palm trees 1996 
1997 
1998 
 
Average     6.67 
5.32 
9.94 
 
7.31   6.67 
5.32 
9.94 
 
7.31 Ministry of 
Agriculture 
& Water 
* For calculation, see methodological note (Annex 2)   WT/ACC/SPEC/SAU/1/Rev.5
 Page 11Supporting Table DS:8 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar  years (1996-1998) 
Product-Specific Equivalent Measurements of Support 
 
Million Saudi Riyals 
Descrip- 
tion of 
basic 
products Calendar 
Year Measure 
type(s) Applied 
administe-
red price Production 
eligible to 
receive the 
applied 
adminis-
tered price market 
price 
support 
budgetary 
outlays Equivalent 
measure- 
ment of 
support 
(include 
calculation 
details) Non- 
Exempt 
Direct 
Payments Other 
Product- 
Specific 
Support Associated 
Fees/ 
levies Total 
Monetary 
Value of 
Equivalent 
Commit- 
ment Data 
sources 
1 2 3 4 5 6 7 8 9 10 11 
(7+8+9-10) 12 
 
NIL 
  WT/ACC/SPEC/SAU/1/Rev.5 
Page 12 Supporting Table DS:9 
 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1996-1998) 
Non-Product-Specific Aggregat e Measurements of Support 
Million Saudi Riyals 
Measure Type(s) Calendar / 
Marketing year 
beginning  Non-Product 
specific support 
(include calculation 
details) Other non-product- 
specific support 
(include calculation 
details) Associated fees 
/levies Total non-product-
specific support 
  
Data 
Sources 
1 2 3 4 5 6 7 
(a)   Agricultural    
       Subsidies * 1996 
1997 
1998 296.97 
229.37 
252.49   296.97 
229.37 
252.49 Ministry of 
Planning 
(b)  Fuel ** 1996 
1997 
1998 389.40 
389.40 
33.00   389.40 
389.40 
33.00 Ministry of 
Petroleum 
(c)   Opportunity  
       cost for  
       agricultural         Loans 
*** 1996 
1997 
1998 7.06 
6.35 
9.51   23.80 
35.71 
37.56 Saudi Arabian 
Agricultural Bank 
(d)  Bad Debts for  
       agricultural        Loans 
** 1996 1997 1998 400.00 
400.00 400.00   400.00 
400.00 400.00 Saudi Arabian 
Agricultural Bank 
Total non-product-
specific 1996 
1997 1998 
 
Average 1,110.19 
1,054.50 
723.06 
 
962.58   1,110.19 
1,054.50 
723.06 
 
962.58  
*    Agricultural Subsidies which are paid through the Agricultu ral Bank and the Ministry of Agriculture and Water.  
**   For calculation, see methodological note 
*** For Calculation, see methodological note (Annex 1)  WT/ACC/SPEC/SAU/1/Rev.5
 Page 13Supporting Table ES:1 
 
EXPORT SUBSIDIES :  Saudi Arabia 
REPORTING PERIOD:  calendar years (1996-1998) 
Export Subsidies:  Outlay and quantity 
 
Description of 
products Direct export 
Subsidies Sales of stocks 
 Producer 
financed 
subsidies Cost reduction 
measures Internal 
transport 
subsidies Total product 
specific export 
subsidies Quantity of 
subsidized 
export 
(Tons) Data source 
1 2 3 4 5 6 7 8 9 
 
NIL 
 
  WT/ACC/SPEC/SAU/1/Rev.5 
Page 14 METHODOLOGICAL NOTE 
 
THE BASIS OF CALCULATION OF AGRICULTURAL DOMESTIC SUPPORT 
This is an explanatory note to be read in conjunction with the Saudi notification of its dome stic support and export subsidy fo r the agricultural sector as outlined 
in document (WT/ACC/4). 
1. The figures are expressed in US $, where the exchange rate represen ts the official rate which is fixed at US $ 1 = SR 3.75 sinc e 1986. 
2. Saudi American Cooperation and Saudi Chinese Cooperation:  In the context of these pr ograms, specialists from USA and China are  contracted with in 
order to work in the Ministry of Agriculture.  Similarly, Sa udis are sent to these countries to ga in experience.  In addition, laboratory equipment is 
provided to support these programs. 
3. In determining eligible production for wheat and barley, it ex cludes five per cent impurities and five per cent Zakat from tota l production.  The ratio of 
five per cent impurities represents a general average based on sa mples analysis drawn randomly from wheat and barley received b y GSFMO.  The ratio 
of five per cent Zakat is determined according to Islamic Rules (this percentage of Zakat is li mited only on farming and differ s from the normal Zakat on 
all kinds of money which is 2.5 per cent). 
4. The applied administered price of wheat has been fixed at SR  1500/ton (or US $ 400) since 1995.  During the same period, the ad ministered price of 
barley has been fixed at SR1000/ton (or  US $266.67). 
5. External reference prices of wheat are e xpressed as CIF Jeddah.  These reference prices are determined as a sum of (Export pric e of US Hard Winter 
Ordinary Protein, FOB US Gulf Ports)  + Ocean Freight to Egyp t (Alexandria) + US $ 3/ton as estim ated freight from Alexandria t o Jeddah (Source: 
Food Outlook of the Food and Agriculture Organization of the UN, No. 3, June 2000). 
6. The external reference price for barley is calculated as the annua l average of effective import prices for imported barley by G SFMO during the period 
1996-1998. 
7. The subsidy for poultry feed during the period 1996-1998 is a fixed amount of SR 200 per ton paid by the Ministry of Finance an d National Economy on 
corn and soybean cake used by poultry producers.  The main sour ce for these two items are imports because there is no local pro duction.  
8. Agricultural subsidies which are included in Supporting Table DS:9  are provided to all agricultu ral projects : wheat, barley, p oultry, dairy sheep, 
greenhouse, vegetables and fruits,... etc. These subsidies can be disclosed as follows: 
- 50 per cent of the price fixed by the Ministry of Agriculture and Water for irrigation engines and pumps. 
- 45 per cent of the price fixed by the Ministry of Agriculture and Water for farm machinery. 
- 30 per cent of the cost of poultry and dairy farms equipment. 
   WT/ACC/SPEC/SAU/1/Rev.5
 Page 159. The support for palm trees is equal to SR 50 per palm tree s ubject to a minimum of 30 trees at certain planting conditions. 
10. The opportunity cost for agricultural loans represents the amount of medium term loans granted by the Saudi Agricultural Bank ( SAB) multiplied by the 
average commercial interest rates because the SA Bank does not charge interest on the granted loans  (Annex 1). 
11. The data for fuel is calculated on the basis of the estimated qua ntity of fuel used in the ag ricultural sector times the differ ence between the world fuel 
price and the domestic whole sales fuel price of SR 53.27/barrel. 
12. Bad Debts for Agricultural Loans represent due  balances carried forward for several fina ncial years divided by ten.  These amou nts are based on ten years 
average because medium - term loans are extended for a period of ten years. 
13. Calculation of livestock feed subsidy (Annex 2):  the amount of s ubsidy per ton on domestic and imported barley is the differen ce between the reference 
price and the price paid by the domestic livestock produ cers.  The calculation of this subsidy is as following: 
 
(i)  For domestic barley:  DFBS   =  (E - P) * D , where : 
     DFBS:  Domestic feed barley subsidy      E: External reference price ( = World price C.I.F Jeddah). 
     P: Price paid by livestock producers for barley 
     D: Eligible production which equal to total production - (five per cent impurities + five per cent Zakat). 
 
(ii)  For imported barley: IFBS   =  (E - P) * I , where: 
     IFBS: Imported feed barley subsidy 
P:  Price paid by livestock producers for barley. 
E:  External reference price ( = world price C.I.F Jeddah). I:  Quantity of Imported feed barley. 
 
The total amount of livestock feed subsidy is therefore equal to the sum ( DFBS + IFBS ). 
  WT/ACC/SPEC/SAU/1/Rev.5 
Page 16 Annex 1:   
The Opportunity Cost For the Medium Term Loan s Granted by the Saudi Arabian Agricultural Bank 
REPORTING PERIOD:  calendar years (1996-1998) 
 
Year Amount of Medium Term loans 
Million Saudi Riyals Average Interest  
Rate % Opportunity cost   
Million Saudi Riyals 
1996 1997 1998 
 
Average 413.64 
585.69 604.52 
 
534.52 5.756 
6.097 6.213 23.81 
35.71 37.56 
 
32.36 
 
Sources:  1. Saudi Arabian Agricultural Bank 
 2. Saudi Arabian Monetary Agency      WT/ACC/SPEC/SAU/1/Rev.5
 Page 17Annex 2: 
Calculation of livestock feed subsidy 
REPORTING PERIOD:  calendar years (1996-1998) 
 
Description  of Basic 
products Calendar  year Measure 
Type (s) Applied 
administered 
price (US$/T) Reference 
price(US$/T) Quantity 
(Ton) Associated 
fees/levies Total support * 
Million (US$) Data sources 
1 2 3 4 5 6 7 8 9 
Livestock : 
Input subsidy a.   Imported barley 1996 
1997 1998 
 
Average  
 280 
280 280 
---------- 
280 665.36 
584.73 445.87 
----------- 
565.32 5,150,763 
3,557,715 1,147,970 
------------ 
3,285,483  1,984.91 
1,084.17 
190.42 
--------- 
1,086.50 Grain Silos  
& 
Flour Mills 
Organization 
b.  Domestic barley 1996 
1997 1998 
Average  280 
280 280 
-------- 
280 665.36 
584.73 445.87 
-------- 
565.32 460,747 
314,566 250,000 
------------ 
341,771  177.57 
59.86 41.47 
----------- 
104.96 Grain Silos  
& 
Flour Mills 
Organization 
 
__________