RESTRICTED
WORLD TRADE WT/ACC/SP EC/SAU/1/Rev.1
2October 1997
ORGANIZATION(97-4172)
Working Party ontheAccession Original: English
oftheKingdom ofSaudi Arabia
ACCESSION OFTHE KINGDOM OFSAUDI ARABIA
Communication from theKingdom ofSaudi Arabia
Revision
ThePermanent Mission oftheKingdom ofSaudi Arabia hassubmitted therevised responses
totheSecretariat 'sTechnical Note onInformation tobeProvided onDomestic Support andExport
Subsidies inAgriculture (document WT/ACC/4) andsupporting tables, which isreproduced hereunder.
_______________WT/ACC/SPEC/SAU/1/Rev.1
Page2TABLE 1-DOMESTIC SUPPORT*
TOTAL AGGREGATE MEASUREMENT OFSUPPORT
DURING 1993-1995
million US$
Year Wheat Barley Livestock
feedPoultry feed Non-product-
specificTotal sub. Agri-domestic
productSub.to
A.D.P. %
1993 1056.05 159.38 161.00 56.43 1174.78 2607.64 8059.73 32.35
1994 902.93 285.89 168.91 36.93 1296.90 2691.56 8506.67 31.64
1995 319.46 60.11 521.16 30.69 692.14 1623.56 8877.33 18.29
AVERAGE 759.48 168.46 283.69 41.35 1054.61 2307.59 8481.24 27.21
*Allrelated SRls. figures havebeentranslated toUS$attheexchange rateofUS$1 =SRls. 3.75.
Differences intotals areduetotherounding figures tothenearest twodecimal points.
Sources: 1.Saudi Arabian Monetary Agency
2.Ministry ofAgriculture andWaste
3.Ministry ofPlanning
4.Saudi Arabian Agricultural Bank
5.Grain Silos andFlour Mills Organization
Note: Thebasis ofcalculation isexplained theattached explanatory noteWT/ACC/SPEC/SAU/1/Rev.1
Page3Supporting Table DS:1
DOMESTIC SUPPORT:
REPORTING PERIOD: calendar years 1993-1995
Measures exempted fromthereduction commitment -"Green Box"
million US$
Measure type Name anddescription ofmeasure withreference tocriteria
annex 2oftheAgreement onAgricultureMonetary value of
measure
inyearinquestionDatasources
1 2 3 4
(a)General Services: *
I. Research
1993
1994
1995
AverageAgricultural Research Stations, Plant tissue cultures lab,
Operation andmaintenance, Regional lab,Fish Resources
Research centers, Agricultural Research Centers andDistance
sensors centers.13.678
7.276
5.934
----------
8.963Ministry of
Agriculture &Water
II. Pestanddisease control:
1993
1994
1995
AverageSecurance ofveterinary,Vaccine production, Veterinary labs,
Airspray pestanddisease control, Control ofscarlet fever
andVeterinary services.10.623
18.156
9.60
--------
12.793
III. Training:
1993
1994
1995
AverageSaudi American Cooperations, Saudi Chinese Cooperations,
F.A.O. Agreement andVeterinary training centers.8.259
8.317
6.345
-------
7.640WT/ACC/SPEC/SAU/1/Rev.1
Page4 million US$
Measure type Name anddescription ofmeasure withreference tocriteria
annex 2oftheAgreement onAgricultureMonetary value of
measure
inyearinquestionDatasources
1 2 3 4
IV. Extension:
1993
1994
1995
AverageAgricultural Extension Expenses, Programs ofnurseries and
Extension anddevelopment ofHoney bees.3.635
0.244
0.571
--------
1.483
V. Inspection Services:
1993
1994
1995
AverageOperation ofstations ofsorting andpurification ofseeds and
Establishment andequipping ofveterinary quarantines.5.101
1.301
NA
--------
VI. Infrastructural Services:
1993
1994
1995
AverageConstruction ofdams, maintenance ofdams, Irrigation and
drainage systems ,Prevention ofmoving sand andPlanting
anddevelopment offorests.25.644
20.780
NA
---------
Total
1993 66.940
1994 56.074
1995
AverageWT/ACC/SPEC/SAU/1/Rev.1
Page5million US$
Measure type Name anddescription ofmeasure withreference tocriteria
annex 2oftheAgreement onAgricultureMonetary value of
measure
inyearinquestionDatasources
1 2 3 4
(b)Public stockholding for:
foodsecurity purposes:
1993
1994
1995
Average15.403
16.347
18.521
---------
16.757GSFMO
(c)to(l) NIL NILWT/ACC/SPEC/SAU/1/Rev.1
Page6Supporting Table DS:2
DOMESTIC SUPPORT:
REPORTING PERIOD: calendar years 1992-1994
Measures exempted fromthereduction commitment Special andDifferential Treatment -Development Programmes
million US$
Measure type Name anddescription ofmeasure
withreference tocriteria annex 2
oftheAgreement onAgricultureMonetary value ofmeasure
inyearinquestionDatasource
1 2 3 4
NILWT/ACC/SPEC/SAU/1/Rev.1
Page7Supporting Table DS:3
DOMESTIC SUPPORT:
REPORTING PERIOD: calendar years 1993-1995
Measures exempted fromthereduction commitment- Direct Payments under Production -Limiting Programmes -"Exempt Direct Payments "
million US$
Measure type Name anddescription of
measure withreference to
criteria annex 2ofthe
Agreement onAgricultureMonetary value ofmeasure
inyearinquestionDatasources
1 2 3 4
"Payments based onfixed areaandyields"
"Payments based on85percentorlessofthebase
levelofproduction"
"Livestock payments made onafixed number ofheads"NIL
NIL
NILNIL
NIL
NILWT/ACC/SPEC/SAU/1/Rev.1
Page8Supporting Table DS:4
DOMESTIC SUPPORT:
REPORTING PERIOD: calendar years 1993-1995
Calculation oftheTotal Aggregate Measurement ofSupport
million US$
Description ofbasic product
(including non-product specific
AMS)Product-specific AMS Non-Product-specific
measurement ofsupportCurrent Total AMS (aggregate)
1 2 3 4
1993 1994 1995 Average
1.Product A:Wheat (Local) (DS:5) 1056.05 902.93 319.46 759.48
2.Product B:Barley (Local) (DS:5) 159.38 285.89 60.11 168.46
3.Livestock feed (DS:7) 161.0 168.91 521.16 283.69
4.Poultry feed (DS:7A) 56.43 36.93 30.69 41.35
5.Non- product -specific (DS:9) 1174.78 1296.90 692.14 1054.61
Total :Current Total AMS 2607.78 2691.56 1623.56 2307.59WT/ACC/SPEC/SAU/1/Rev.1
Page9Supporting Table DS:5
DOMESTIC SUPPORT:
REPORTING PERIOD: calendar years 1993-1995
Product-Specific Aggregate Measurements ofSupport:Market Price Support
million US$
Description
of
basic productsCalendar
yearMeasure
type(s)Applied
administered
price (US$)External
reference
price(US$)Eligible
production
(Ton)Associated
fees/leviesTotal
market
price support
million (US$)3Datasources
1 2 3 4 5 6 7 8 91
Wheat 1993 Market 533.33 143.00 2705526 1056.05 Grain Silos &
(Local) 1994 price support 533.33 143.00 2313236 902.93 Flour Mills
19954 400 196 1565956 319.46 Organization
---------- ---------- ----------- ----------
Average4501.62 155.60 2194906 759.482
Barley 1993 266.67 120.18 1087988 159.38 Grain Silos &
(local) 1994 266.67 96.96 1684586 285.89 Flour Mills
1995 266.67 186 745108 60.11 Organization
----------- ---------- ------------- -----------
Average4266.67 123 1172561 168.46
1. World Price f.o.b. Jeddah foryears 1993,1994 andworld price c.i.fJeddah for1995
2. World Price c.i.f. Jeddah
3. Support forlocal Wheat adBarley issubsidy todomestic producers ofthese twocrops
4. TheAverage iscomputed asweighted AverageWT/ACC/SPEC/SAU/1/Rev.1
Page10Supporting Table DS:6
DOMESTIC SUPPORT:
REPORTING PERIOD: calendar years 1993-1995
Product-Specific Aggregate Measurements ofSupport: Non-Exempt Direct Payments
million US$
Description
ofbasic
productCalendar
yearMeasure
type(s)Applied
administere
dpriceExternal
reference
priceEligible
productionTotal price
related
direct
paymentsOther non-
exempt
direct
paymentAssociated
fees/
leviesTotal direct
payments
(Million
US$)Data
source
1 2 3 4 5 6 7 8 9 10 11
NILWT/ACC/SPEC/SAU/1/Rev.1
Page11Supporting Table DS:7
DOMESTIC SUPPORT:
REPORTING PERIOD: calendar years 1993-1995
Product-Specific Aggregate Measurements ofSupport:Market Price Support
million US$
Description of
basic productsCalendar
yearMeasure
type(s)Applied
administered
price1(US$)External
reference
price2(US$)Imports
(Ton)Associated
fees/leviesTotal
support*
million (US$)Datasources
1 2 3 4 5 6 7 8 9
Livestock:
Input subsidy
a.Imported barley1993
1994
1995
Average74.67
74.67
74.67
---------
74.67120.18
96.96
186
---------
130.14032449571
5892166
3936148
-----------
4092628111.49
131.36
438.21
----------
227.02GSFMO
b.Domestic
Barley1993
1994
1995
Average74.67
74.67
74.67
---------
74.67120.18
96.96
186
---------
12331087988
1684586
745108
----------
117256149.51
37.55
82.05
----------
56.67GSFMO
*8=(5-4) *6
1. Applied administered price fordomestic barely istheselling price ofGSFMO
2. Therealexternal price forimported barely isworld price (c.i.f. Jeddah)
3. Weighted AverageWT/ACC/SPEC/SAU/1/Rev.1
Page12Supporting Table DS:7(a)
DOMESTIC SUPPORT:
REPORTING PERIOD: calendar years 1993-1995
Product-Specific Aggregate Measurements ofSupport: Other Product Specific Support andTotal Product-Specific AMS
million US$
Description
ofbasic
productCalendar
yearMeasure
type(s)Other
product
specific
budgetary
outlaysOther
product
specific
support
(include
calculation
details)Associated
fees/
leviesTotal
other
product
specific
support1Market price
support
(supporting
Table DS-5)Non-exempt
direct
payments
(supporting
Table DS-6)Total
AMS1Data
sources
1 2 3 4 5 6 7
(4+5-6)8 9 10
(7+8+9)11
Combined
imported1993 161.00 161.00
domestic barely 1994 168.91 168.91
1995 521.16 521.16
----------- -----------
Average 283.96 283.96
1. Calculated from supporting table DS:7WT/ACC/SPEC/SAU/1/Rev.1
Page13Supporting Table DS:7(b)
DOMESTIC SUPPORT:
REPORTING PERIOD: calendar years 1993-1995
Product-Specific Aggregate Measurements ofSupport: Other Product Specific Support andTotal Product-Specific AMS
million US$
Description
ofbasic
productCalendar
yearMeasure
type(s)Other
product
specific
budgetary
outlaysOther
product
specific
support
(include
calculation
details)Associated
fees/
leviesTotal other
product
specific
support1Market
price
support
(supportin
gTable
DS-5)Non-
exempt
direct
payments
(supporting
Table DS-
6)Total AMS1Data
sources
1 2 3 4 5 6 7
(4+5-6)8 9 10
(7+8+9)11
Poultry feed
(imported1993 56.43 56.43 Ministry
of
planning
Corn and
Soya bean)1994 36.93 36.93
1995 30.69 30.69
----------- -----------
Average 41.35 41.35
1. Thisprice support isUS$53.33 (SRls. 200)pertonforimported cornandsoyabeanwhich areoffered topoultry producers. There isnobreakdown forthese figures.WT/ACC/SPEC/SAU/1/Rev.1
Page14Supporting Table DS:8
DOMESTIC SUPPORT:
REPORTING PERIOD: calendar years 1993-1995
Product-Specific Equivalent Measurements ofSupport
million US$
Description
of
basic
productsCalendar
yearMeasure
type(s)Applied
administered
priceProduction
eligible to
receive the
applied
administered
priceMarket price
support
budgetary
outlaysEquivalent
measurem
entof
support
(include
calculation
details)Non-
exempt
direct
paymentsOther
product-
specific
supportAssociated
fees/
leviesTotal
monetary
value of
equivalent
commitmentData
sources
1 2 3 4 5 6 7 8 9 10 11
(7+8+9+10)12
NILWT/ACC/SPEC/SAU/1/Rev.1
Page15Supporting Table DS:9
DOMESTIC SUPPORT:
REPORTING PERIOD :calendar year
Non-Product-Specific Aggregate Measurements ofSupport
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
Million (U.S$)Data
sources
1 2 3 4 5 6 7
(a)Agricultural
Subsidies*1993
1994
199575.33
98.05
6.1175.33
98.05
6.11Ministry of
planning
(b)Fuel 1993
1994
1995982.1
1083.7
572.3982.1
1083.7
572.3
(c)Opportunity cost
forAgricultural
Loans1993
1994
199510.68
8.48
7.0610.68
8.48
7.06Saudi Arabian
Agricultural Bank
(d)BadDebts for
Agri. Loans**1993
1994
1995106.67
106.67
106.67106.67
106.67
106.67Saudi Arabian
Agricultural Bank
TOTAL 1993
1994
19951174.78
1296.90
692.14
*Agricultural subsidies which arepaidthrough theAgricultural Bank andtheMinistry ofAgriculture andWater. Please refer toparagraph 12oftheexplanatory
note.
**Average forlasttenyears.WT/ACC/SPEC/SAU/1/Rev.1
Page16THE OPPORTUNITY COST FOR THE MEDIUM TERM LOANS GRANTED
BYTHE SAUDI ARABIAN AGRICULTURAL BANK DURING 1993-1995
Year Amount ofM.term loans
Million US$Average Interest Rate% Opportunity costvalue Million US$
1993 247.73 4.31 10.68
1994 178.61 4.75 8.48
1995 109.87 6.43 7.06
Average 178.74 4.91*8.78
*weighted Average
Sources: 1. Saudi Arabian Agricultural Bank
2. Saudi Arabian Monetary AgencyWT/ACC/SPEC/SAU/1/Rev.1
Page17Supporting Table ES:1
EXPORT SUBSIDIES:
REPORTING PERIOD: calendar years 1993-1995
Export Subsidies
Description of
productsDirect export
subsidiesSales of
stocksProducer
financed
subsidiesCostreduction
measuresInternal
transport
subsidiesTotal product
specific export
subsidiesQuantity of
subsidized
exportDatasource
1 2 3 4 5 6 7 8 9WT/ACC/SPEC/SAU/1/Rev.1
Page18
EXPLANATORY NOTE
THE BASES OFCALCULATION INTHE TABLES OFACC/4
1. Thefigures arebased on1993-1995 data. Thedataof1996 isnotavailable.
2. Theuseofthree- yearaverages are,extended tocover allsupporting tables.
3. Theexchange raterepresents theofficial ratewhich isfixedatUS$1 =SRls. 3.745 from1989
tillnow.
4 Indetermining eligible production forwheat andbarley, Itexcludes 5percentimpurities and
5percentZakat from totalproduction.
Theratioof5percentimpurities represents ageneral average based onsamples analysis
drawn randomly from wheat andbarley received byGSFMO.
Theratioof5percentZakat isdetermined according toIslamic rules.
5. Saudi Arabia usedworld (f.o.b.) price forwheat in1993-1994 andworld c.i.f. price Jeddah
in1995 because Saudi Arabia wasanetwheat exporter inthefirsttwoyears andstopped
exporting from 1995.
6. Theapplied administered price pertonforwheat wasSRls. 2000 upto1994 andSRls. 1500
(orUS$400) from 1995.
7. Thetotalamount ofsubsidy pertonondomestic barley isthedifference between theguaranteed
producer priceandthepricepaidbythedomestic livestock producers. However, inallocating
thetotalsubsidy between grain andlivestock producers itwould seem logical toattribute to
livestock producers onlythatamount between theexternal reference price andtheuserprice
charged byGSFMO. Theamount above theexternal reference price being asubsidy tothe
domestic barley growers. Forlivestock producers thesubsidy isthesame whether domestic
orimported barley isinvolved.
Forexample tableDS:5 computes thesubsidy which received bybarley producers asfollows:
(A-B) *Cwhere:
A = applied administered price which equal theprice paidbyGSFMO tofarmers
B = world price C.I.F. Jeddah.
C = eligible production which equal, tototalproduction -(5percentimpurities
+5percentZakat).
Butthesubsidy paidtolivestock producers orinput subsidy table (DS:7) wascomputed to
bothdomestic andimported barley using thesame basis which areasfollows:
(B-A) *Cwhere:
A = applied administered price (equal theprice paidbylivestock producers)
B = external reference price (=world price c.i.f. Jeddah)
C = thesumofEligible production andimports.
8. Thefigures provided bySaudi Arabia oneligible production ofwheat andbarley aretheaccurate
because these figures equal totherealtotalproduction received byGSFMO excluding the
impurities andZakat during 1993-1995.WT/ACC/SPEC/SAU/1/Rev.1
Page19
9. Thereference price forbarley iscalculated astheaverage ofrealimport prices forimported
barley byGSFMO during theperiod 1993-1995. Butthereference priceforwheat iscalculated
byaveraging monthly world prices during 1993-1995. (UNMonthly commodity pricebulletin
volxv,No.12,December 1995)
10. Thesubsidy forpoultry feedduring theperiod 1993-1995 isafixed amount ofUS$53.33
(SRls. 200)pertonpaidoncornandsoyabeancakeusedbypoultry producers. Themain
source forthese twoitems areimports because there isnolocalproduction. Thebudgetary
outlays hasbeenusedforpoultry feedsubsidy according toparallel annex 3.
11. Agricultural subsidies which areincluded intable DS:9 areprovided toallagricultural
projects: wheat, barley, poultry, dairy sheep, greenhouse, vegetables andfruits, fishfarms
etc.
These subsidies canbedisclosed asfollows:
- 50percentoftheprice fixed bytheMinistry ofAgriculture andWater forirrigation
engines andpumps:
- 45percentoftheprice fixed bytheMinistry ofAgriculture andWater forfarm
machinery suchastractors;
- 30percentofthecostofpoultry anddairy farms equipment:
- freight costforimporting cows (50ormore);
- SRls. 50perpalm treesubject toaminimum of30treesatcertain
planting conditions;
- SRls. 2,000 pertonforpotato seed.
There isnobreakdown showing thedistribution ofthese subsidies among thedifferent types
ofthese projects.
Forthisreason thesesubsidies areincluded intableDS:9 toreflect non-product specific AMS.
12. Thesupport fordairy projects isincluded inthefollowing items:
(i) livestock feed(barley);
(ii) agricultural subsidies (irrigation engines andpumps, farm machinery, dairy farm
equipment andfreight costforimporting cows).
13. Theopportunity costforagricultural loans represents theamount ofmedium termloans granted
bytheSaudi Agricultural Bank multiplied bytheaverage interest ratesorcommercial rates
because theSaudi Agricultural Bank doesnotcharge interest onloans (Zero interest rate).
14. BadDebts forAgricultural. Loans: represents duebalances carried forward forseveral financial
years divided byten.These amount arebased onten-years average because medium -term
loans areextended foraperiod oftenyears.