RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/SAU/1/Rev.4 
17 November 1999 
 (99-4986) 
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 Permanent Mission of the Kingdom of Saudi  Arabia has submitted revised information 
on domestic support and export subsidies in agricultu re (document WT/ACC/4) and supporting tables, 
which are reproduced hereunder.  
 WT/ACC/SPEC/SAU/1/Rev.4 
Page 2 Table  DS : 1 
 
DOMESTIC SUPPORT :  Saudi Arabia 
 
REPORTING PERIOD : Calendar years (1995-1997) 
 
Total Aggregate Measurement of Support (AMS)  
(From attached Supporting Tables)  
 
Million (US $) * 
Year  Wheat Barley Livestock feed Poultry feed Total AMS ** Agricultural 
domestic product Total  AMS  
(Per cent) 
    
1995 345.48 60.11 521.16 30.69 957.43 8426.13  
1996 200.23 41.11 576.64 64.80 882.78 8576.53   
1997 364.48 34.84 314.66 74.40 788.38 8906.67   
 
Average  
303.40  
45.35  
470.82  
56.63  
876.20  
8636.44  
10% 
 
*  All related SR. figures have been translated to US do llars at the exchange rate of 1 US Dollar = 3.75 SR. 
**  Support of dates, palm trees, and non-pr oduct-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.4
 Page 3Supporting Table DS : 1 
 
DOMESTIC SUPPORT :  Saudi Arabia 
REPORTING PERIOD : calendar  years (1995-1997) 
Measures exempted from the reduction commitment - “ Green Box “ 
Million US$  
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: 
1995 1996 
1997 
 
Average 
 Research
 
Agricultural Research Stations, Plant tissue cultures lab, Operation and 
maintenance, Regional lab, 
Agricultural Research Centers and Distance sensors centers.  
5.934 3.469 
3.218 
---------- 
4.207 Ministry of Agriculture 
& Water 
 
 
1995 1996 1997 
 
Average Pest and disease control:
 
Securance of veterinary,Vaccine production, Veterinary labs, Air spray pest and disease control, and 
Veterinary services.  
9.600 9.711 9.263 
-------- 
9.525  
 
1995 
1996 1997 
 
Average Training
: 
Saudi American Cooperations, Saudi 
Chinese Cooperations, F.A.O. Agreement and Veterinary training centers.   
6.345 
6.276 5.661 
------- 
6.094  
 
 
1995 
1996 
1997 
 
Average Extension : 
 Agricultural Extension Expenses, 
Programs of nurseries and Extension 
and development of  Honeybees.   
 
0.571 
0.288 
0.424 
-------- 
0.428   
 WT/ACC/SPEC/SAU/1/Rev.4 
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 
 
1995 
1996 
1997 
 
Average Inspection Services : 
Operation of stations of sorting and 
purification of seeds and 
Establishment and equipping of veterinary quarantine.  
0.576 
7.733 
7.733 
-------- 
5.348  
 
1995 1996 1997 
 
Average Infrastructural Services:
 
Construction of dams, mainten-ance of dams, Irrigation and drainage systems, Prevention of moving sand 
and Planting and development of 
forests.  
10.637 
8.206 
11.118 
--------- 
9.987  
1995 
1996 
1997 
 
Average General Services Total  33.663 
35.684 
37.419 
---------- 
35.589  
 (b)  Public stockholding for     
food security purposes(*) 
1995 
 1996 
1997 
 
Average GSFMO, among other things, fulfils 
a public stockholding role for food security purposes by managing and controlling the storage and 
distribution of grains.   
 
18.521 18.521 
18.521 
--------- 
18.521  
 
GSFMO 
 
(*) This meets the criteria of  footnote to paragr aph 3 of Annex 2 of the Agreement on Agriculture 
  
  WT/ACC/SPEC/SAU/1/Rev.4
 Page 5Supporting Table DS : 2 
 
DOMESTIC SUPPORT :  Saudi Arabia 
REPORTING PERIOD : calendar  years (1995-1997) 
Measures exempted from the reduction commitment – Special  and Differential Treatment – Development Programmes 
Million US$  
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 
(c) to (l)  N I L  
 
  
 WT/ACC/SPEC/SAU/1/Rev.4 
Page 6 Supporting Table DS : 3 
 
DOMESTIC SUPPORT :  Saudi Arabia 
REPORTING PERIOD : calendar  years (1995-1997) 
Measures exempted from the reduction commitment – Direct Paymen ts under Production-Limiting Programmes – "Exempt Direct Payment s" 
Million US$  
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)  N I L  
  
  WT/ACC/SPEC/SAU/1/Rev.4
 Page 7Supporting Table  DS :  4 
 
DOMESTIC SUPPORT :  Saudi Arabia 
REPORTING PERIOD : calendar  years (1995-1997) 
Calculation of the Total Aggr egate Measurement of Support 
Million US$ 
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 303.40  303.40 
Barley (domestic) 45.35  45.35 
Livestock feed 470.82  470.82 
Poultry feed 56.63  56.63 
Dates 6.30  De minimis 
Palm trees 1.43  De minimis 
Non-product specific   De minimis 
Current Total AMS 876.20 
 
  
 WT/ACC/SPEC/SAU/1/Rev.4 
Page 8 Supporting Table DS :  5 
 
DOMESTIC SUPPORT :  Saudi Arabia 
REPORTING PERIOD : calendar  years (1995-1997) 
Product-Specific Aggregate Measurements of Support:Market Price Support 
Million US$  
Description  of 
Basic products Calendar  year Measure 
type (s) Applied 
administered 
price (U.S$) External 
Reference 
price(U.S$) Eligible 
Production 
(Ton) Associated 
fees/levies Total           (3) 
Market   
price support 
Million (U.S$) Data sources 
1 2 3 4 5 6 7 8 
((4-5)*6)-7 9 
 
(a) Wheat  
1995 
1996 1997 
              
Average  
Market 
price support  
400.00 
400.00 400.00 
---------- 
400.00                   (*) 
178.74 
235.83 196.77 
---------- 
203.78  
1,565,956 
1,219,666 1,793,438 
----------- 
1,526,353                
346.48 
200.23 364.48 
---------- 
303.73  
Grain Silos  & 
Flour Mills Organization 
 (b) Barley  
1995 1996 1997 
              
Average   
266.67 266.67 266.67 
----------- 
266.67                   (*) 
186.00 177.77 155.93 
---------- 
173.12  
745,108 460,747 314,566 
------------- 
506,807                
60.11 41.11 34.84 
----------- 
45.35  
Grain Silos  & Flour Mills Organization 
(*)  World Prices C.I.F Jeddah 
  
  WT/ACC/SPEC/SAU/1/Rev.4
 Page 9Supporting Table DS :  6 
 
DOMESTIC SUPPORT :  Saudi Arabia 
REPORTING PERIOD : calendar  years (1995-1997) 
Product-Specific Aggregate Measurements of Support: Non-Exempt Direct Payments 
Million US$ 
Description 
of basic 
pro- duct Calendar 
year 
 Measure 
type(s) Applied 
Administe-
red price External 
Reference 
Price Eligable 
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 1995 
1996 
1997 
 
Average      4.24 
7.19 
7.47 
 
6.30  4.24 
7.19 
7.47 
 
6.30  
  
 WT/ACC/SPEC/SAU/1/Rev.4 
Page 10 Supporting Table DS : 7   
DOMESTIC SUPPORT :  Saudi Arabia 
REPORTING PERIOD : calendar  years (1995-1997) 
Product-Specific Aggregate Measurements of Support:  Othe r Product Specific Support and Total Product-Specific AMS 
 
Million US$ 
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  (*) :  
Domestic Barley    
 
1995 
1996 
1997 
 
Average      
 
82.95 
47.35 
25.56 
 
51.96    
 
82.95 
47.35 
25.56 
 
51.96  
Imported Barley 1995 
1996 1997 
 
Average     438.21 
529.29 289.10 
 
418.87   438.21 
529.29 289.10 
 
418.87  
Poultry Feed 
(imported corn 
and soybean)* 1995 
1996 
1997 
 
Average     521.16 
576.64 
314.66 
 
470.82   521.16 
576.64 
314.66 
 
470.82  
Palm trees 1995 
1996 1997 
 
Average     1.09 
1.78 1.42 
 
1.43   1.09 
1.78 1.42 
 
1.43  
* For calculation, see methodological note   
  WT/ACC/SPEC/SAU/1/Rev.4
 Page 11Supporting Table DS : 8   
DOMESTIC SUPPORT :  Saudi Arabia 
REPORTING PERIOD : calendar  years (1995-1997) 
Product-Specific Equivalent Measurements of Support 
 
Million US$ 
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.4 
Page 12 Supporting Table  DS :  9 
 
DOMESTIC SUPPORT :  Saudi Arabia 
REPORTING PERIOD : calendar  years (1995-1997) 
Non-Product-Specific Aggregate Measurements of Support 
Million US $ 
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 (*) 1995 
1996 
1997 6.11 
79.19 
61.17   6.11 
79.19 
61.17 Ministry of 
Planning 
(b)  Fuel 1995 
1996 
1997 572.30 
103.84 
103.84   572.30 
103.84 
103.84  
(c)   Opportunity  
       cost for  
       agricultural         Loans (**) 1995 
1996 
1997 7.06 
6.35 
9.51   7.06 
6.35 
9.51 Saudi Arabian 
Agricultural Bank 
(d)  Bad Debts for  
       agricultural        Loans 1995 
1996 1997 106.67 
106.67 106.67   106.67 
106.67 106.67 Saudi Arabian 
Agricultural Bank 
TOTAL 
 
 
 1995 
1996 1997 
 
Average 692.14 
296.05 281.19 
 
423.13   692.14 
296.05 281.19 
 
423.13  
(*)    Agricultural Subsidies which are paid through the Ag ricultural Bank and the Ministry of Agriculture and Water.  
(**)   For calculation, see methodological  note (Annex  1)  
  WT/ACC/SPEC/SAU/1/Rev.4
 Page 13Supporting Table ES: 1 
 
EXPORT SUBSIDIES :  Saudi Arabia 
REPORTING PERIOD: calendar years  (1995-1997) 
 
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.4 
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 Dollars, where the exchange rate re presents the official rate which is fixed at U.S $ 1 = SR 3. 75 since 1986. 
2. Saudi American Cooperation and Saudi Chinese Cooperation: In the context of these programs, specialists from USA and China are contracted with in 
order to work in the Ministry of Agriculture. Similarly, Saudis  are sent to these countries to gain experience. In addition, la boratory equipment is 
provided to support these programs. 
3. In determining eligible production for wheat and barley, it excl udes 5% impurities and 5% Zakat from total production. The rati o of 5% impurities 
represents a general average based on samples analysis drawn random ly from wheat and barley received by GSFMO. The ratio of 5% Zakat is determined 
according to Islamic Rules. 
4. The applied administered price of wheat has been fixed at SR  1500/ton (or US $ 400) since 1995. During the same period, the adm inistered price of 
barley has been fixed at SR1000/ton (or  US $266.67). 
5. External reference prices of wheat are expressed as CIF Jeddah,  because Saudi Arabia stopped exporting wheat starting in 1995. These reference prices 
are determined as a sum of (Export price of US Hard Winter Ordinary Protein, FOB US Gulf Ports)  + Ocean Freight to Egypt (Alex andria) + US $ 3/ton 
as estimated freight from Alexandria to Jeddah. (Source: Food Outl ook of the Food and Agriculture Organization of the UN, No 1,  February 1999). 
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 
1995-1997. 
7. The subsidy for poultry feed during the period 1995-1997 is a fixed amount of US $ 53.33 (SR 200) per ton paid on corn and soyb ean cake used by 
poultry producers. The main source for these two items  are imports because there is no local production.  
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 Agri culture and Water for farm machinery such as tractors. 
- 30 per cent of the cost of poultry and dairy farms equipment. 
  
  WT/ACC/SPEC/SAU/1/Rev.4
 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. Bad Debts for Agricultural Loans represent due balances carried forward for several financial years divided by 10. These amount s are based on 10-years 
average because medium - term loans are extended for a period of 10 years. 
12. 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 - (5% impurities + 5% 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.4 
Page 16 Annex 1: 
 
The Opportunity Cost For the Medium Term Loan s Granted by the Saudi Arabian Agricultural Bank 
 
Reporting period : Calendar years ( 1995-1997) 
   
 
Year Amount of Medium Term loans 
Million US $ Average Interest  
Rate % Opportunity cost   
Million US $ 
1995 1996 1997 
 
Average 109.87 
110.30 156.18 
 
125.45 6.43 
5.75 6.09 7.06 
6.34 9.51 
 
7.64 
 Sources:
 1. Saudi Arabian Agricultural Bank 
 2. Saudi Arabian Monetary Agency     
  WT/ACC/SPEC/SAU/1/Rev.4
 Page 17Annex 2: 
 
Calculation of livestock feed subsidy 
 
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  
1995 1996 1997 
 
Average  
  
74.67 74.67 74.67 
---------- 
74.67  
186.00 177.43 155.93 
----------- 
173.12  
3936148 5150763 3557715 
------------ 
4214875   
438.21 529.29 289.10 
--------- 
418.87  
GSFMO 
b.  Domestic barley 1995 
1996 
1997 
Average  74.67 
74.67 
74.67 
-------- 
74.67 186.00 
177.43 
155.93 
-------- 
173.12 745108 
460747 
3145566 
------------ 
506807  82.95 
47.35 
55.56 
----------- 
51.96 GSFMO 
 
__________