RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/SPEC/SAU/1/Rev.7
29 January 2004
(04-0339)
Working Party on the Accession
of the Kingdom of Saudi ArabiaOriginal:  English
ACCESSION OF THE KINGDOM OF SAUDI ARABIA
Communication from the Ki ngdom of Saudi Arabia
Domestic Support and Export Subsidies
Revision
The following communication, dated 26 January 2004, is being circulated at the
request of the Delegation of Saudi Arabia.
_______________WT/ACC/SPEC/SAU/1/Rev.7
Page 2Table DS:1
DOMESTIC SUPPORT:   Saudi Arabia
REPORTING PERIOD:  calendar years (1999-2001)
Total Aggregate Measurement of Support (AMS)
(From attached Supporting Tables)
Million Saudi Riyals
YearTotal AMS
(Per cent)
1999 1876.66
2000 2013.20
2001 2177.85
Average 2022.57
Sources: 1 Saudi Arabian Monetary Agency (SAMA)
2 Ministry Of Agriculture (MOA)
3 Ministry of Planning (MOP)
4 Saudi Arabian Agricultural Bank (SAAB)5 Grain Silos & Flour Mills Organization (GSFMO).
Note: The basis of calculation is explained in the attached methodological note.WT/ACC/SPEC/SAU/1/Rev.7
Page 3Supporting Table DS:1
DOMESTIC SUPPORT:  Saudi Arabia
REPORTING PERIOD:  calendar years (1999-2001)
Measures exempted from the re duction commitment - “Green Box“
Million Saudi Riyals
Measure typeName and description of measure with
reference to criteria annex 2 of the
Agreement on AgricultureMonetary value of
measure in year
in questionData sources
12 3 4
(a) General  Services:
199920002001
AverageResearch
Agricultural Research Stations, Plant
tissue cultures lab, Operation andmaintenance, Regional lab, AgriculturalResearch Centers and Distance sensors
centers.10.80
 9.14 9.71
9.88MOA
1999
20002001
AveragePest and disease control:
Securance of veterinary, Vaccine
production, Veterinary labs, Air spraypest and disease control, and Veterinaryservices.29.23
29.1528.26
28.88MOA
1999
20002001
AverageTraining :
Saudi American Cooperation, Saudi
Chinese Cooperation, F.A.O. Agreementand Veterinary training centers.20.69
19.2118.79
19.56MOA
1999
20002001
AverageExtension :
Agricultural Extension Expenses,
Programs of nurseries and Extension anddevelopment of Honeybees.1.91
1.361.36
1.54MOAWT/ACC/SPEC/SAU/1/Rev.7
Page 4 Measure typeName and description of measure with
reference to criteria annex 2 of the
Agreement on AgricultureMonetary value of
measure in year
in questionData sources
12 3 4
1999
20002001
AverageInspection Services :
Operation of stations of sorting and
purification of seeds and Establishmentand equipping of veterinary quarantine.2.97
2.975.55
3.83MOA
1999
2000
2001
AverageInfrastructural Services:
Construction of dams, maintenance of
dams, Irrigation and drainage systems,Prevention of moving sand and Plantingand development of forests.69.97
46.66
60.24
58.96MOA
1999
2000
2001
AverageGeneral Services Total
135.57
108.49
123.91
122.66
(b) Public stockholding for food
security purposes1
1999
2000
2001
AverageGSFMO, among other things, fulfils a
public stockholding role for food securitypurposes by managing and controllingthe storage and distribution of grains. 25.15
24.64
24.75
24.85GSFMO
Total Green Box 147.51
(c) to (l) NIL
                                                     
1 This meets the criteria of footnote to paragraph 3 of Annex 2 of the Agreement on Agriculture.WT/ACC/SPEC/SAU/1/Rev.7
Page 5Supporting Table DS:2
DOMESTIC SUPPORT:  Saudi Arabia
REPORTING PERIOD:  calendar years (1999-2001)
Measures exempted from the reduct ion commitment – Special and Differential Treatment – Development Programmes
Million Saudi Riyals
Measure typeName and description of measure with
reference to criteria annex 2 of the
Agreement on AgricultureMonetary value of
measure in year
in questionData sources
12 3 4
(a) to (c) NILWT/ACC/SPEC/SAU/1/Rev.7
Page 6Supporting Table DS:3
DOMESTIC SUPPORT:  Saudi Arabia
REPORTING PERIOD:  calendar years (1999-2001)
Measures exempted from the reduction comm itment – Direct Payments under Production-Limiting Programmes – "Exempt Direct Payment s"
Million Saudi Riyals
Measure typeName and description of measure with
reference to criteria annex 2 of the
Agreement on AgricultureMonetary value of
measure in year
in questionData sources
12 3 4
(a) to (c) NILWT/ACC/SPEC/SAU/1/Rev.7
Page 7Supporting Table DS:4
DOMESTIC SUPPORT:  Saudi Arabia
REPORTING PERIOD:  calendar years (1999-2001)
Calculation of the Total Aggregate 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)
12 3 4 . 0 0
Wheat 1,731.71 1,731.71
Barley (domestic) 55.82 55.82
Livestock feed 235.04 235.04
Poultry feed 264.83 De minimis2
Dates 22.00 De minimis
Palm trees 8.91 De minimis
Non-product specific 1,937.06 De minimis
Current Total AMS 2022.57
                                                     
2 De minimus  calculation is explained in the attached methodological note (Annex 3).WT/ACC/SPEC/SAU/1/Rev.7
Page 8Supporting Table DS:5
DOMESTIC SUPPORT:  Saudi Arabia
REPORTING PERIOD:  calendar years (1999-2001)
Product-Specific Aggregate Measurements of Support:  Market Price Support
Million Saudi Riyals
Description  of
Basic productsCalendar yearMeasure
type (s)Applied
administered
price (SR/T)External
Reference
price (SR/T)3Eligible
Production
(Tons)Associated
fees/leviesTotal Market
price support
Million (SR/T)Data sources
12345678
((4-5)*6)-79
Wheat 1999
20002001
AverageMarket
price support1,500
1,5001,500
1,500482.44
547.50543.75
524.561,796,540.00
1,760,000.001,768,000.00
1,774,846.671,828.09
1,676.401,690.65
1,731.71GSFMO
Barley 1999
2000
2001
Average1,000
1,000
1,000
1,000363.85
469.20
477.66
436.9076,342.00
100,000.00
126,000.00
100,780.6748.57
53.08
65.81
55.82GFSMO
                                                     
3 World Prices C.I.F. JeddahWT/ACC/SPEC/SAU/1/Rev.7
Page 9Supporting Table DS:6
DOMESTIC SUPPORT:  Saudi Arabia
REPORTING PERIOD:  calendar years (1999-2001)
Product-Specific Aggregate Measurements of Support:  Non-Exempt Direct Payments
Million Saudi Riyals
Description
of basic
productCalendar
yearMeasure
type(s)Applied
Administe-
red priceExternal
Reference
PriceEligible
ProductionTotal price
related direct
paymentsOther non-
Exempt
direct
PaymentAssociated
fees / leviesTotal direct
PaymentsData
Source
1234567
((4-5)*6)8910
(7+8-9)11
Dates 1999
20002001
Average28.78
22.6214.59
22.0028.78
22.6214.59
22.00MOAWT/ACC/SPEC/SAU/1/Rev.7
Page 10Supporting Table DS:7
DOMESTIC SUPPORT:  Saudi Arabia
REPORTING PERIOD:  calendar years (1999-2001)
Product-Specific Aggregate Measurements of Support:  Ot her Product Specific Support and Total Product-Specific AMS
Million Saudi Riyals
Description
of basic
productCalendar
YearMeasure
type(s)Other
product
specific
Budgetary
outlaysOther
product
specific
support
(include
calculation
details)Associated
Fees/
LeviesTotal other
Product
specific
supportMarket price
Support
(supporting
Table DS-5)Non-exempt
direct
payments
(supporting
Table DS-6)Total AMSData
sources
1 234567
(4+5-6)8910
(7+8+9)11
Livestock Input Subsidy4:
a) Domestic
Barley1999
20002001
Average 0.00*
6.929.79
8.36
(b) Imported
Barley1999
20002001
Average  0.00*
276.80411.60
344.2Annex 2
5
Poultry Feed
(imported corn and
soybean)619992000
2001
Average142.31
383.91
268.26
264.83142.31
383.91
268.26
------
264.83Ministry of
Finance and
National
Economy
                                                     
4 Negative value of support is equated to zero.
5 For calculation, see methodological note (Annex 2).
6 For calculation, see methodological note # 7.WT/ACC/SPEC/SAU/1/Rev.7
Page 11Description
of basic
productCalendar
YearMeasure
type(s)Other
product
specific
Budgetary
outlaysOther
product
specific
support
(include
calculation
details)Associated
Fees/
LeviesTotal other
Product
specific
supportMarket price
Support
(supporting
Table DS-5)Non-exempt
direct
payments
(supporting
Table DS-6)Total AMSData
sources
1 234567
(4+5-6)8910
(7+8+9)11
Palm trees
1999
20002001
average6.57
7.53
12.73
8.916.57
7.53
12.73
8.91MOAWT/ACC/SPEC/SAU/1/Rev.7
Page 12Supporting Table DS:8
DOMESTIC SUPPORT:  Saudi Arabia
REPORTING PERIOD:  calendar  years (1999-2001)
Product-Specific Equivalent Measurements of Support
Million Saudi Riyals
Descrip-
tion of
basic
productsCalendar
YearMeasure
type(s)Applied
administe-
red priceProduction
eligible to
receive the
applied
adminis-
tered priceMarket
price
support
budgetary
outlaysEquivalent
measure-
ment of
support
(include
calculation
details)Non-
Exempt
Direct
PaymentsOther
Product-
Specific
SupportAssociated
Fees/
leviesTotal
Monetary
Value of
Equivalent
Commit-
mentData
sources
123456789 1 011
(7+8+9-10)12
NILWT/ACC/SPEC/SAU/1/Rev.7
Page 13Supporting Table DS:9
DOMESTIC SUPPORT:  Saudi Arabia
REPORTING PERIOD:  calendar years (1999-2001)
Non-Product-Specific Aggregate Measurements of Support
Million Saudi Riyals
Measure Type(s)Calendar / Marketing
year beginningNon-Product specific
support (include
calculation details)Other non-product-
specific support
(include calculation
details)Associated fees /leviesTotal non-product-
specific support Data
Sources
1234567
(a)   Agricultural       Subsidies
7199920002001197.36
228.96249.88197.36
228.96249.88Saudi Arabian
Agricultural Bank
(SAAB)
(b)  Fuel81999200020010.0
1,742.901,861.420.0
1,742.901,861.42Ministry of Petroleum
and MOA
(c)   Opportunity
       cost for
       agricultural       Loans
91999
2000
200142.92
63.27
50.1542.92
63.27
50.15Saudi Arabian
Agricultural Bank
(SAAB)
(d)  Bad Debts for       agricultural       loans
10199920002001521.85
500.64507.08521.85
500.64507.08Saudi Arabian
Agricultural Bank
(SAAB)
Total
non-product-specific1999
20002001
Average607.76
2,535.772,667.65
1,937.06607.76
2,535.772,667.65
1,937.06
                                                     
7 Agricultural Subsidies which are paid through the Agricultural Bank and the Ministry of Agriculture.
8 For calculation, see Methodological Note No. 11.
9 For calculation, see Methodological Note (Annex 1).
10 For calculation, see Methodological Note No. 12.WT/ACC/SPEC/SAU/1/Rev.7
Page 14Supporting Table ES:1
EXPORT SUBSIDIES :  Saudi Arabia
REPORTING PERIOD:  calendar years (1999-2001)
Export Subsidies:  Outlay and quantity
Description of
productsDirect export
SubsidiesSales of stocksProducer
financed
subsidiesCost reduction
measuresInternal
transport
subsidiesTotal product
specific export
subsidiesQuantity of
subsidized
export
(Tons)Data source
123456789
NILWT/ACC/SPEC/SAU/1/Rev.7
Page 15METHODOLOGICAL 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 dom estic support and export subsidy fo r the Agricultural
sector as outlined in document (WT/ACC/4).
1. The figures are expressed in Saudi Riyals, where the exchange rate has been fixed at US$ 1 = SR 3.75 since 1986.
2. Saudi Chinese Cooperation: In the context of these programs, sp ecialists from China are contracted with in order to work in t he Ministry of Agriculture.
Similarly, Saudis are sent to these countries to gain experience. In addition, laboratory equipment is provided to support thes e programs.
3. In determining eligible production for wheat and barley, it excludes 5% impurities and 5% Zakat from total production. The ra tio of 5% impurities
represents a general average based on samples analysis drawn randomly from wheat and barley received by GSFMO. The ratio of 5% Zakat is
determined according to Islamic Rules (this percentage of Zakat is limited only on farming and differs from the normal Zakat on  all kinds of money
which is 2.5%).
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. These reference prices are determined as a sum of (Export pri ce of US Hard Winter
Ordinary Protein, FOB US Gu lf Ports) + Ocean Freight to Egypt (Alexandria) + US$3/ton as estimated freight from Alexandria to J eddah. (Source: Food
Outlook of the Food and Agriculture Organization of the UN, No 5, December 2002).
6. The external reference price for barley is calculated as the annual average of effective import prices for barley imported by  GSFMO during the period
1999-2001.
7. The subsidy for poultry feed during the period 1999-2001 is a fixed amount of SR 200 per ton paid by the Ministry of Finance and National Economy on
corn and soybean cake used by poultry producers. The main source for these two items is imports because there is no local produ ction.
8. Agricultural subsidies which are included in Supporting Table DS:9 are provided to all agricultural projects : wheat, barley,  poultry, 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 for irrigation engines and pumps.
-  45 per cent of the price fixed by the Ministry of Agriculture for farm machinery.-  30 per cent of the cost of poultry and dairy farms equipments.
9. The support for palm trees is equal to SR 50 per each palm tree subject to a minimum of 30 trees at certain planting conditio ns.WT/ACC/SPEC/SAU/1/Rev.7
Page 1610. The opportunity cost for agricultural loans represents the amount  of medium term loans granted by the Saudi Arabian Agricult ural Bank (SAAB)
multiplied by the average commercial interest rates because SAAB does not charge interest on the granted loans  (Annex 1).
11. The data for fuel are calculated on the basis of the estimated quantity of fuel used in the agricultural sector times the di fference between the world fuel
price and the domestic whole sales fuel price.
12. Bad Debts for Agricultural Loans represent due balances carried forward for several financial years divided by 10. These amo unts are based on 10-years
average because medium - term loans are extended for a period of 10 years.
13. Calculation of livestock feed subsidy (Annex 2) : the amount of subsidy per ton on domestic and imported barley is the diffe rence between the reference
price and the price paid by the domestic livestock producers. 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 barleyD : 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 barley.
The total amount of livestock feed subsidy is therefore equal to the sum (DFBS + IFBS) .WT/ACC/SPEC/SAU/1/Rev.7
Page 17ANNEX 1
The Opportunity Cost For the Medium Term Loans Granted by the Saudi Arabian Agricultural Bank
REPORTING PERIOD:  calendar years (1999-2001)
YearAmount of Medium Term loans
Million Saudi RiyalsAverage Interest
Rate %Opportunity cost
Million Saudi Riyals
1999
2000
2001
Average667.31
922.78
1,233.34
941.146.432
6.856
4.06642.92
63.27
50.15
52.11
Sources: 1. Saudi Arabian Agricultural Bank (SAAB).
2. Saudi Arabian Monetary Agency (SAMA).WT/ACC/SPEC/SAU/1/Rev.7
Page 18ANNEX 2
Calculation of livestock feed subsidy
REPORTING PERIOD:  calendar years (1999-2001)
Description  of Basic
productsCalendar  yearMeasure
Type (s)Price paid by
livestock
producers
(SR/T)Reference
price(SR/T)Quantity
(Ton)Associated
fees/leviesTotal support *
Million (US$)Data sources
1 2345678 9
Livestock :
Input subsidya.   Imported barley1999
20002001
Average400
400400
400363.85
469.20477.66
437.665,800,000
4,000,0005,300,000
5,033,0000.00
*
276.8411.6
229.47GSFMO
b.  Domestic barley 1999
2000
2001
Average400
400
400
400363.85
469.20
477.66
437.6676,342
100,000
126,000
100,780.670.0011
6.92
9.79
5.57GSFMO
                                                     
11 Negative value of support is equated to zero.WT/ACC/SPEC/SAU/1/Rev.7
Page 19ANNEX 3
Calculation of De Minimis for some products
REPORTING PERIOD:  calendar years (1999-2001)
Product NameProduct Value
(1999-2001)
Average (Million SR)Product Support
(1999-2001)
Average (Million SR)AMS
(per cent)Comments
Wheat 2,963.44 1,731.71 58.4 %
Barley 180.57 55.82 30.91 %
Livestock Feed 1,765.01 235.04 13.32 % De Minimis
Poultry 3,999.93 264.83 6.6 % De Minimis
Dates 4,876.18 22.00 0.5 % De Minimis
Palm Trees 4,876.18 8.91 0.2 % De Minimis
Non-Product-Specific 35,041.33 1,937.06 5.5 % De Minimis
__________