RESTRICTED  WORLD TRADE  
ORGANIZATION    WT/ACC/SPEC/SAU/4/Rev.2 
  1 September 2003 
 (03-4576) 
Working Party on the Accession 
of the Kingdom of Saudi Arabia  
 
 
 
DRAFT REPORT OF THE WORKING PARTY ON 
THE ACCESSION OF THE KINGDOM OF SAUDI ARABIA 
TO THE WORLD TRADE ORGANIZATION  
Revision  
INTRODUCTION  
1. On 13 June 1993, the Government of the Kingdom of  Saudi Arabia (hereinafter referred to as 
Saudi Arabia) requested accession to the General Agreement on Tariffs and Trade (GATT 1947).  At 
its meeting on 21 July 1993, the GATT 1947 Council  of Representatives established a Working Party 
to examine the application of the Government of  Saudi Arabia to accede to the General Agreement 
under Article XXXIII, and to submit to the Counc il recommendations which may included a draft 
Protocol of Accession.  Membership of the Wo rking Party was open to all contracting parties 
indicating the wish to serve on it.  In pursuance of the decision of the General Council of the World 
Trade Organization (WTO) of 31 January 199 5, the GATT 1947 Accession Working Party was 
transformed into a WTO Accession Working Party.  The terms of reference and the membership of 
the Working Party were reproduced in document WT/ACC/SAU/2/Rev.6. 
2. The Working Party met on 2 and 3 May, 6 and 8 November 1996, 29-30 May, 2 and 
4 December 1997, 17 and 19 November 1998, 22 Se ptember 1999, 5 April and 17 October 2000 
under the Chairmanship of Mr. J. Weekes (Canada), and on … under the Chairmanship of H.E. 
Ambassador Munir Akram (Pakistan). 
DOCUMENTATION  
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Régime of Saudi Arabia (L/7489)  and the questions submitted by members on the 
foreign trade régime of Saudi Arabia, together  with the replies thereto, (L/7645 and Add.1; 
WT/ACC/SAU/3; WT/ACC/SAU/6, Add.1-3 and Add.3/Corr.1;  WT/ACC/SAU/8 and Corr.1;  
WT/ACC/SAU/10;  WT/ACC/SAU/13, Add.1, A dd.1/Corr.1 and Rev.1;  WT/ACC/SAU/29, 
Add.1-4, and Corr.1 and 2;  and, WT/ACC/SAU/35 and Corr.1).  The Government of Saudi Arabia 
also provided the Working Party with the following information: WT/ACC/SPEC/SAU/4/Rev.2 
Page 2  
 
- Customs Law and Implementing Regulations; - Customs Tariff; - Guide to the Licensing of Foreign Investment in Saudi Arabia; - Law for the Protection and Encour agement of National Industries; 
- Trade Marks Law and Regulations; 
- The Patents Law; 
- The Law for the Protection of Copyrights; - Law and Regulations for Commercial Agencies; - Import Statistics, 1993; - Information on Non-Oil Exports To Gulf Cooperation Council States; 
- Decree No. 142 of 199/11/1413 (10 May 1993) :  General Objectives and Strategic 
Principles of the Sixth Development Plan; 
- Law for the Protection and Encouragement of National Industry; - Saudi Industrial Development Fund Law; - Foreign Investment Law – Ro yal Decree No. M/1 of 9.4.2000; 
- Implementing Regulations under the Foreign Investment Law; 
- Rules for the Coordination of Industrial Establishments in th e Gulf Cooperation 
Council States; 
- Banking Control Law (Articles 1-4); - Ministerial Resolution by th e Ministry of Communications concerning Applications for 
Licences by Maritime Companies and Firms for Carrying on Maritime Carriage 
(Articles 1-7); 
- Ministerial Resolution No. 4104/20/M date d 4.11.1408 H (18 June 1988) concerning 
the Implementing Regulations to the Private Medical Establishments Law (Articles 1-2); 
- Implementing Regulations to Regulati on of Technical Institutes and National 
Occupational Centres (Articles 1-9); 
- Resolution from His Royal Highness the Mini ster of Defence and Aviation concerning 
the --Regulation of Tourism and Travel Agencies and Companies engaged in Air 
Transport (Articles 1-4 and 13); 
- Ministerial Order No. 264 of 16.9.1402H (7 July  1982):  Organization of the Practice of 
the Profession of Engineering Consultancy (Party I and III); 
- Law of Certified Accounta nts (Articles 1-2) and Mi nisterial Order No. 595 of 
13.11.1395 (16 November 1975). Enacting th e Implementing Regulations of the 
Accountants Law; 
- Ministerial Order No. 1190 of 16.2. 1402 (13 December 1981) Pertaining to the 
Regulation of Carrying on the Profession of Legal Consultancy (Articles 1-2. 4-7); 
- Law concerning the Carrying on of the Pr ofession of Pharmacy and Trading in 
Medicaments and Medical Prep arations (Articles 1.5); 
- List of banned items; - Rules and Procedures before the Board of Grievances; - Royal Decree M/10 of 3.3.92 H (16 April 1972) and Council of Ministers Resolution 
No. l 172 of 25.2.92 H (9.4.1972); 
- SASO Standards No. 457 and No. 702; 
- List of Saudi Standards (1-802); - Regulated Product Categories Applicable Standards; - Catalogue of Saudi Standards (1997); - Government Purchases Law and Implementing Regulations; 
- Council of Ministers Resolution No. 124 of 29.5.1403 (13 March 1983); 
- Standard Rules for Giving Priority in G overnment Purchases to National Products and 
Products of National Origin of Gu lf Cooperation Council States; 
- Companies Law; - Law of Arbitration and Im plementing Regulations to the Law of Arbitration; 
- Response to Questionnaire on Import Licensing Procedures;  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 3 
 
 
- Information on Foreign Investment by Sectors; - Information on Recent Forei gn Investments Gr anted Licences; 
- Information on Saudi Industrial Development Fund Loans; - Information on Saudi Agriculture Bank Loans; - Information on Agricultural Subsidies Disbursed through the Agriculture Bank; 
- Information on Agricu ltural Domestic Support; 
- Information on the Applicat ion of Import Licensing; 
- Information on the Technical Barriers to Trade; - Information on Sanitary and Phytosanitary Measures; 
- Information on Preferential Trading Arrangements; - ICCP - Comprehensive Procedures and Guidelines. 
INTRODUCTORY STATEMENTS  
4. The representative of Saudi Arabia stated that ove r the last 30 years, Saudi Arabia had become a 
State with a strong economy increasingly based on the private sector with a sophisticated 
infrastructure.  At the same time, government initia tives had been used to influence economic activity 
when necessary, in order to ensure the protection of the Islamic values of Saudi Arabian society.  
Economic development of Saudi Arab ia had largely depended on the utili zation of its large oil and gas 
reserves.  Saudi Arabia was the largest producer of  oil in the world and one of the world's largest 
producers of natural gas.  The availability of these resources had given rise to an economy typical of oil-rich developing countries - characterized by a major concentration of exports on a single product 
and a high propensity to import. 
5. The representative of Saudi Arabia informed me mbers of the Working Party that Saudi Arabia 
had adopted free market principles ensuring that privat e enterprise would always be the main focus of 
economic activity, and established an indicativ e planning approach to economic and social 
development based on Islamic values and principles,  which guide the development in a coordinated 
and balanced direction.  Economic indicative planning in the Kingdom provided an appropriate 
conceptual, practical and organizational framework  for the development process, with all of its 
economic, social and institutional dimensions.  In addition to the underlying objectives of the 
preservation of Islamic values and the provision of national security, the consecutive five-year indicative plans aspired to achieve a number of othe r broad goals.  These included diversification of 
the economy, particularly through laying more em phasis on industry and agriculture, and developing 
mineral resources, improvement of living standards and quality of life, achievement of balanced 
growth throughout all regions of the Kingdom, streng thening the role of the private sector, through 
encouraging its participation in various socio-econom ic development projects, achievement of social 
and economic integration among GCC countries, and support econo mic cooperation with other 
countries.  Other objectives include development and sustenance of the country’s physical 
infrastructure, protection of the environment a nd development and utilization of human resources 
through increasing the absorptive capacity of educati onal institutions.  The First and Second plans laid WT/ACC/SPEC/SAU/4/Rev.2 
Page 4  
 
the foundation for the Kingdom’s rapid transformation in to a modern industrialized state, focusing on 
the provision of basic infrastructure, improved government services and the establishment and 
expansion of supporting institutions . Rapidly rising oil revenues during the period covered by these 
two plans, further helped to accomplish their objec tives including the creation of jobs in both public 
and private sectors. The Third and Fourth plans emphasized the diversification of the economy by 
concentrating on the completion of major infrast ructure projects to meet the rapidly increasing 
demand for improved educational, health, training a nd other social services, and by encouraging the 
growth of the private non-oil sector.  The Fifth De velopment Plan enhanced and broadened the main 
objectives of the previous plans, through appropria te regulatory policies and support measures.  It 
accorded highest priority to the private sector ’s role in accelerating the process of economic 
diversification.  
6. He further recalled that the Sixth Development Pl an, continued to enhan ce and broaden the main 
objectives of the previous development plans.  It  set out to meet the Kingdom’s development needs 
through maximizing the private sector’s contribu tion in the provision of jobs, diversifying the 
economy to lessen its dependence on oil, building new physical infrastructure, improving social 
services, expanding job opportunities for the Saudi labour  force, raising the per-capita income of the 
population and maintaining a balanced budget over the plan period. The development of the country’s 
scientific and technological capabilities and the prot ection of the environment against pollution as 
well as the preservation of the country’s natural r esources, were also among the general objectives of 
the Sixth plan.  Over the past three decades, non-o il GDP increased more than five-fold and private 
investment increased seven-fold.  Infant mortality rates dropped by over 80 per cent and the ratio of 
physicians per person improved by more than 95 per cent.  Over th e same period, school enrolment 
rose from 600,000 to more than 4.7 million and Sa udi Arabia had among the lowest pupil-teacher 
ratios in the world. 
7. The representative of Saudi Arabia further added that Saudi Arabia had also improved its trade 
with other nations of the world.  Amongst devel oping countries, it ranked Sixth in the world in the 
value of traded goods, of which a large proportion  was petroleum exports.  Of the top 40 trading 
countries in the world, Saudi Arabia ranked Sixth in  the growth of trade over the period 1977-1992.  It 
maintained one of the least restrictive exchange and trade systems in the world.  There were no 
exchange restrictions and no trade restrictions were imposed for balance-of-payments reasons.  
Indeed, currently trade restrictions were only im posed for religious, health or security reasons. 
8. The representative of Saudi Arabia stated that th e diversification of the economy could only be 
achieved through much broader private sector partic ipation in the economy.  The private sector had 
already begun to pursue a wide range of business opportunities unrelated to government expenditures  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 5 
 
 
and this trend was expected to accelerate as private sector management, production and marketing 
capabilities strengthened and the competitive atmosphe re improved.  Institutional support for private 
sector-led growth and diversification would be pr ovided by the Government, through liberalisation 
and facilitation of investment, rapid development of th e Saudi Arabia's financial sector.  Saudi Arabia 
also recognized the need to build a technology base.   Whilst Saudi Arabia had kept up to date with 
global scientific and technological developments, this had largely been through the import of 
sophisticated technology owned by  foreign partners.  Saudi Arab ia still needed to improve its 
indigenous technological capabilities to the level of that existing in developed countries.  The 
Government planned to assist through the expans ion and improvement of educational courses and 
facilities related to science and te chnology at all levels, as well as improvement of the overall 
structural support for private sector initiatives.  In addition, Saudi Arabia was aware of the need to 
impart to its citizens the knowledge and skills that w ould enable them to participate effectively in all 
social, economic and cultural activities, as well as  to further develop vocational and technical 
education so that the country's skilled manpower needs could be met. 
9. In their opening remarks, members of the Workin g Party welcomed Saudi Arabia's decision to 
accede to the WTO and to implement the WTO Agre ements expeditiously through the establishment 
of institutional arrangements and the amendment and adoption of the required legislation and 
regulations.  It was noted that Saudi Arabia had played and was expected to continue to play a 
significant role in contributing to maintain econom ic and financial stability and growth, both in the 
region and globally.  Saudi Arabia's accession w ould reinforce the universality of the WTO and 
strengthen the multilateral trading system. 
10. The Working Party reviewed the economic policies and foreign trade regime of Saudi Arabia and 
the possible terms of a draft Protocol of Accession.   The views expressed by members of the Working 
Party and the various aspects of Saudi Arabia's fo reign trade regime, and on the terms and conditions 
of Saudi Arabia's accession to the WTO, are su mmarised below in paragraphs 11 to […].   
ECONOMIC POLICIES  
Privatization  
11. The representative of Saudi Arabia stated that a very important component of the Economic 
Reform Program of the Kingdom of Saudi Arabia (circulated to WTO Members in document No: 
WT/ACC/SAU/54 dated: 4 April 2003) was privatizati on. An ambitious privatization strategy was 
issued by the Council of Ministers on 4 June 2002, to  ensure a continued increase in the share of the 
private sector and to expand its participation in the national economy. This would be achieved by 
adopting the best available modality including transf erring certain types of economic activity to the WT/ACC/SPEC/SAU/4/Rev.2 
Page 6  
 
private sector, enhancing the participation of the pr ivate sector in economic development and enabling 
it to carry out its investment and financing role in accordance with the national development plans.  
The Council of Ministers had approved the privatiza tion of 20 small, medium and large state-owned 
enterprises.  These include: Telecommunications, Post al Services, Aviation and its services, Railroad, 
Airport services, Seaport services, Roads (buildi ngs and operating of new highways and managing, 
operating and maintaining of existing highways; Government shares in corporations including 
SABIC, Saudi Electricity Company, Saudi Telecom Company, Saudi Arabian Mining Company, 
Domestic oil refineries; Water & sewage, Saline water conversion (desalination), Industrial cities 
services, GSFMO, Government-owned hotels; and certain Municipalities services, Certain services 
incidental to Educational services, incidental to Medical services, incidental to Social services and 
incidental to Agricultural services. 
12. In response to questions from members of the Wo rking Party, the representative of Saudi Arabia 
stated that the objectives of the priv atization strategy were as follows: 
- Improving the efficiency of the nati onal economy and enhanc ing its competitive 
ability to meet the challenges of regional and international competition. 
- Encouraging private sector investment and effective participation in the national 
economy, and increasing its share of domestic  production to achieve growth in the 
national economy. 
- Enlarging the ownership of productive assets by Saudi citizens. - Encouraging domestic and fore ign capital to invest locally. 
- Increasing employment opportunities, optimizing the use of the national work force, 
and ensuring the continued equitable increase of individual income. 
- Provide services to citizens and investor s in a timely and cost-efficient manner. 
- Rationalizing public expenditure and re ducing the burden on the government budget 
by giving the private sector opportunities to finance, operate, and maintain certain services that it was able to provide. 
- Increasing government revenues from returns on participation in activities to be 
transferred to the private sector, and fro m financing compensation obtained, for 
example, from granting concessions and from the proceeds of the sale of part of 
government shares. 
The Supreme Economic Council of Saudi Arabia was responsible for supervising the privatization 
program and monitoring its implementation.  
13. He further noted that the basic principles that were taken into consideration when implementing 
the privatization process were: 
- Disclosure and transparency. 
- Expeditious implementation. - Changing the management pattern, and  
- A regulatory framework for privatized sectors.   WT/ACC/SPEC/SAU/4/Rev.2 
 Page 7 
 
 
14. He continued that according to the Privatization Strategy, the criteria for determining priorities in 
selecting enterprises to be privatized were based on: 
- Positive effect on the national economy. 
- Readiness of enterprise for privatization. 
- Social benefits of privatizing the enterprise. 
- Inadequacies of the services provided by the public enterprises, and - The absorptive capacity of the capital market. 
15. The representative of Saudi Arabia stated th at the following implementation steps had been 
completed during the Sixth Plan Period: 
i) Tasks related to the management, operati on and maintenance of port berths, as well as 
the provision of associated equipment, ha d been assigned to the private sector in 
accordance with the Royal Approval issued  in 1417 (1997) and the Council of 
Ministers’ resolution issued in 1419 (1999) which assigned to the private sector a 
greater role in the management and operati on of ports, and called for a review of 
organizational structures and related procedures, a feasibility study on establishing free trade areas at the ports and the linking of the two ports of Jeddah and Dammam by a railroad. 
ii) The education sector received applications from the private sector to finance the 
construction of schools and to participat e in providing higher education services 
through private colleges. 
iii) The Council of Ministers’ resolution 16 9 of 11/8/1419 (30 November 1998) approved 
the restructuring of the electricity sector.   
iv) A Saudi Joint Stock Utility Company had b een established in the twin industrial cities 
of Jubail and Yanbu to operate, mainta in, manage and expand the tasks of 
infrastructure utilities as part of the privatization program. 
v) The Saudi Telecommunications Company was established as a business-oriented 
stock company providing all telecommunica tions services previously provided by the 
MOPTT. 
Investment Regime
 
16. The representative of Saudi Arabia informed the Working Party that a new Foreign Investment 
Law, replacing the Foreign Capital Investment Law,  had been promulgated by Royal Decree No. M/1 
of 9 April 2000 (5.1.1421 H).  Implementing Regulat ions under the new Foreign Investment Law had 
been issued on 9 August 2000.  Copies of these had been submitted to the WTO Secretariat.  Some 
members of the Working Party requested clarificat ion whether there were any formal requirements 
setting a minimum level of Saudi participation in any business venture.  The representative of Saudi 
Arabia stated that under the new law on foreign investment there was no requirement of a minimum 
share for Saudi investors. Under the new Foreign In vestment Law, a foreign investment may take one 
of the two following forms: (1) enterprises owned by foreign and national investors, i.e. joint 
ventures, but with no requirement for minimum shar e for national investors, (2) enterprises wholly-
owned by foreign investors, i.e. 100 per cent forei gn shareholders’ equity.  A project, whether wholly-
owned by foreign investors or a joint-venture, li censed in accordance with the Law, shall enjoy all WT/ACC/SPEC/SAU/4/Rev.2 
Page 8  
 
benefits, incentives and guarantees available to a na tional project. Foreign investment was permissible 
in all activities, except a short negative list.  Unde r the new Law, a foreign investor was entitled to 
transfer, outside the Kingdom of Saudi Arabia, th e proceeds from the sale of his shares or the excess 
funds from the liquidation of his assets or the profits earned by the enterprise or from the disposal of the business in any other legal manner.  Further, the investor was entitled to transfer outside the 
Kingdom of Saudi Arabia the required funds to se ttle any contractual obligations related to the 
project.  Article 11 of the new Foreign Investment  Law provided legal safeguards against confiscation 
or expropriation of foreign investments.  It was not permissible to confiscate foreign investments, 
wholly or partially, except by a court order.  In addition, it was not permissible to expropriate the ownership of foreign investments, wholly or par tially, except for the public interest, and on payment 
of reasonable compensation in accordance with the law. 
17. Some members of the Working Pa rty requested clarification of the incentives offered by Saudi 
Arabia to foreign investors to invest in Saudi Arab ia in order to support the inflow of technology and 
expertise, in particular whether technology tran sfer was in any way a condition for investment 
approval in all or certain areas.  The representative of  Saudi Arabia replied that under the new Foreign 
Investment Law of 9 April 2000, technology transf er was not a condition for investment approval. A 
foreign investor had to approach only one aut hority – the Saudi Arabian General Investment 
Authority – to obtain a licence. The SAGIA was re quired to decide on the investment application 
within 30 days from the date all required documents  were submitted. The SAGIA would also serve as 
the enquiry point on laws, regulations and pro cedures relating to foreign investment.  The new 
Foreign Investment Law and the implementing regula tions provide that foreign investment ventures 
had the right to own real estate necessary to carry  out their licensed activities or to accommodate their 
employees, in accordance with regulations of prop erty ownership for non-Saudis.  Further, it was 
provided that foreign investors shall have the ri ght to sponsor and bring their non-Saudi employees 
subject to numerical limits.   
18. He further noted that the Foreign Investment Law allowed foreign investors to invest in local or 
foreign ventures, provided that general conditions app licable to new investments were met.  A foreign 
investor could apply for multiple licenses permitti ng different activities, provided that the foreign 
investor was not the owner of or a shareholder in a project which was in financial default.  The Law 
laid down that the amount of capital to be invested in a licensed project must not be less than 5 million Saudi Riyals for industrial projects, not less than 25 million Saudi Riyals for agricultural 
projects and not less than 2 million Saudi Riyals for other projects. 
19. Some members of the Working Party asked wh ether the government had issued licenses to 
100 per cent foreign-owned operations.   In response the representative of Saudi Arabia stated that  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 9 
 
 
1278 licenses had been issued for wholly foreign-owne d enterprises.   In response to further questions, 
he noted that under the new Foreign Investment La w of April 2000 “national treatment” was given to 
foreign investors.  He further stated that the Fo reign Investment Law was fully consistent with the 
WTO Agreement on Trade-Related Investment Measur es, and reiterated that Saudi Arabia did not 
apply any TRIMs prohibited by the WTO Agreem ent on Trade-Related Investment Measures. 
20. In response to questions from some members of the Working Party concerning whether the 
Government of Saudi Arabia planned to liberalize its stock market and open it to non-Saudi investors, 
the representative of Saudi Arabia stated that Saudi  Arabia was gradually changing its regulations 
concerning participation of foreign investors in the shares market.  Although direct share trading in Saudi Arabia was restricted to Saudi and GCC nationa ls, there were no restrictions on investment by 
foreign investors in Government Bonds, Treasury B ills or Saudi mutual funds.  There were non-GCC 
nationals that held shares of joint stock companies which were traded in the equity share market but 
those non-GCC nationals were required to receive permission from concerned authorities, such as the 
Saudi Arabian Monetary Agency and the Ministry of Commerce and Industry, prior to selling their 
shares.  In its continuous review and assessment of the development of the financial market, the 
Kingdom of Saudi Arabia had allowed the establishm ent of a close-ended fund (SAIF) listed on the 
London Stock Exchange through which international investors could participate in the Saudi shares 
market.   In November 1999, Saudi Arabia had made further changes to its regulations and now 
permits foreigners to invest in open-ended mutual funds managed by banks that invest in the Saudi 
equity shares market. 
21. Some members of the Working Party asked wh ether Saudi Arabia planned to remove its 
restrictions on foreign investment in exploration a nd extraction of hydrocarbons. The representative of 
Saudi Arabia replied that there were no plans to remove restrictions on foreign investment in the 
upstream sector.  However, investments in gas devel opment projects by foreign investors were being 
reviewed. 
22. Some members of the Working Party sought a clarification about an Article of the Implementing 
Regulations which said that licenses granted must no t violate Saudi Arabia's regional or international 
agreements and asked Saudi Arabia to indicate where this might occur.   They further requested Saudi 
Arabia to clarify the relationship of Implementi ng Regulations to the Foreign Investment Law and 
enquired whether there were current plans for any additional elaboration of the Regulations.  In 
response to these, the representative of Saudi Arab ia stated that Article 5 of the Implementing 
Regulations provided that granting a foreign investme nt license must not contravene international or 
regional treaties signed by the Kingdom of Saudi Ar abia.  These included the WTO Agreement, the 
GCC and other treaties signed by Saudi Arabia.  He  explained that, for example, Saudi Arabia would WT/ACC/SPEC/SAU/4/Rev.2 
Page 10  
 
not issue any license to produce chemicals or mate rials that were restricted under regional or 
international agreements to which Saudi Arabia was a party.  Similarly, Saudi Arabia would not issue 
licenses to produce materials that were in breach of a regional or international agreement on 
environmental protection to which Saudi Arabia was a party.  With regard to the observations of 
Working Party members on Implementing Regulations , the representative of Saudi Arabia explained 
that Implementing Regulations were in the nature of by-laws issued by SAGIA, under Article 17 of 
the Foreign Investment Law, to im plement the Law.  He stated that there were no current plans for 
additional elaboration of th e Implementing Regulations. 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
23. The representative of Saudi Arabia explained th at the Basic Law of Government, instituted by 
Royal Decree No. A/90 dated 27 Shaaban 1412 H (1 March 1992), set down the law concerning 
political authority within Saudi Arabia.  Article 56 of the Basic Law of Government stated that the 
King was the Chairman of the Council of Ministers and was assisted by Ministers in the performance 
of his duties.  The Basic Law of Government also st ated that the Law of the Council of Ministers laid 
down the powers of the Council re garding internal and external policies, the organization and 
coordination of the various Government authorities; and the conditions to be satisfied by, the powers 
of, the method of responsibility and all affairs of the Ministers.   
24. He recalled that pursuant to Article  17 of the Consultative Council Law,  resolutions passed by the 
Consultative Council were forwarded to the Chairman of the Council of Ministers, who passed them 
to the Council of Ministers for consideration.  When the points of view of both Councils were in agreement they were enacted after being approved by the King.  In case of a difference of opinion, the 
King approved what he considered appropriate.  Article 70 of the Basic Law of Government and 
Article 20 of the Council of Ministers Law provide that laws, treaties and international agreements 
and concessions were enacted and amended by Roya l Decrees after having been considered by the 
Consultative Council and the Council of Ministers r espectively.  In general, no initials could be 
affected on any agreement or obligation until approved by the Council of Ministers.  In conclusion, he 
added that the Kingdom of Saudi Arabia would do whatever was required, whether through Royal 
Decree, Council of Ministers Decree or Ministerial Or ders to bring its trade regime into conformity 
with its WTO obligations. 
25. The representative of Saudi Arabia stated that Saudi  Arabia provided for a wide range of judicial, 
arbitral and administrative procedures with respect to trade matters .  An aggrieved party had a final 
right of appeal against all administrative decisions in matters of trade to a judicial body – the Board of Grievances.  The first channel of redress was to appeal administrative bodies.   For example, with 
regard to matters under the jurisdiction of the Customs Directorate, such as classification and  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 11 
 
 
valuation, there was an administrative system fo r appeal against rulings.  Disputes pertaining to 
Article VII related to valuati on of goods for customs purposes were under the authority of the 
standing Committee within the Customs Department.  Similar dispute settlement systems had been 
established, for example, with regard to sanitary an d phytosanitary measures, licensing, standards, and 
intellectual property rights.  Ministries and/or Agencies involved had established internal standing 
committees of senior officials to re view initial administrative decisions. All decisions made by these 
“standing Committees” were appealab le to the head of the Mini stry or Agency concerned. 
26. He further stated that if the decision under appeal  was maintained by the head of the Ministry or 
Agency concerned, these decisions were subject to  appeal to the Board of Grievances under Article 
8(a) of the Board of Grievances Law of 17.1 1402 H (14 November 1981).  The Board of Grievances 
was an independent tribunal to which appeals were made from all governmental administrative 
decisions, and addressed the obligation in Article X:3 of the GATT 1994 to provide for a right of 
appeal of administrative decisions to an independent  tribunal.  The jurisdiction of the Board included 
appeals against all administrative decisions of G overnment Departments and Government officials, 
and its decisions were binding on the government o ffice concerned.  It was composed of a President, 
Vice-Presidents and Members.  The President was appointed by and reported to the King.  The Vice-
Presidents and Members were appointed by Royal Decree on the recommendation of the President.  The time frames for hearing of appeals and handin g down of decisions depended on the volume of 
work with the Board and on the nature of appeal s.  There were no fixed time frames.  The Board 
supplied written judgements to all parties to any appeal, judgements which included the reasons for 
the decision.  Article (47) of the Board of Gr ievances Law provided for the publications of the 
Judicial decisions.   
27. He also noted that the Board’s decisions could be challenged and appealed to the Appeal Court 
(Scrutiny Commission) within the Board of Grie vances, which would either confirm or reverse 
appealed decisions.  In all cases, the Appeal Co mmission’s decisions were final and enforceable. 
28. The representative of Saudi Arabia confirmed that from the date of accession, Saudi Arabia’s 
laws would provide for the right to appeal ad ministrative rulings on matters subject to WTO 
provisions to an independent tri bunal in conformity with WTO obligations, including but not limited 
to Article X:3(b) of the GATT 1994.  The Working Party took note of this commitment. 
29. In response to further questions, the representative of Saudi Arabia stated that Article 70 of the 
Basic Law of Government provided th at international agreements entere d into force as domestic laws 
following their ratification by Royal Decree and enactment by the Consultative Council and Council 
of Ministers.  As a general rule, should Saudi Ar abia’s laws or other acts be found to contradict WT/ACC/SPEC/SAU/4/Rev.2 
Page 12  
 
international treaties or agreements, Saudi Arabia w ould bring its laws or other acts into conformity 
with such treaties or agreements.  He noted, however, that like othe r countries, Saudi Arabia could not 
use international treaties to overturn fundamental religious/legal principles, such as legalizing the 
consumption of alcohol and pork.  To bring its Laws and Regulations into conformity with WTO 
Agreements, Saudi Arabia had already enacted or  would enact Laws and amendments to existing 
Laws in relation to the various substantive pr ovisions of the WTO Agreements, such as TRIPS, 
Customs Valuation, SPS, TBT, Import Licensing, including transparency provisions.  
30. The representative of Saudi Arabia confirmed that the Kingdom had acceded to the Vienna 
Convention on the Law of Treaties 1969 vide Counc il of Ministers’ Resolution No. 165 dated 
24.6.1423 H (1 September 2002).   
31. The representative of Saudi Arabia confirme d that sub-central entities had no autonomous 
authority over issues of subsidies, taxation, tr ade policy or any other measures covered by WTO 
provisions.  He confirmed that the provisions of  the WTO Agreement, including Saudi Arabia's 
Protocol, would be applied uniformly throughout its customs territory and other territories under 
Saudi Arabia's control, including in regions engagi ng in border trade or frontier traffic, special 
economic zones, and other areas where special re gimes for tariffs, taxes and regulations were 
established.  The Working Party t ook note of these commitments.  
POLICIES AFFECTING TRADE IN GOODS  
Trading Rights (the right to import and export)
 
32. The representative of Saudi Arabia confirmed that  there were no substantive requirements to 
register with the Ministry of Commerce & Industry in order to import, although there was a requirement to obtain Commercial Registration for the carrying on of business, whether 
manufacturing, retailing or trading.  In order for a foreign business to obtain a Commercial 
Registration for the carrying on of business in Saudi Ar abia, it had to first obtain a foreign investment 
license from the Saudi Arabian General Investment Authority (“SAGIA”).  Upon receiving a foreign 
investment license from SAGIA, the foreign business would apply to obtain a commercial registration 
from the Ministry of Commerce & Industry. Th e rules and procedures for obtaining commercial 
registration were set forth in the Law on Commercia l Registration issued pursuant to Royal Decree 
M/1 dated 21/02/1416 H (19 July 1995) and the La w on Commercial Names issued pursuant to Royal 
Decree M/15 dated 12/08/1420 H (20 November 1999)  and the rules and regulations promulgated 
thereunder. In respect of commercial registration, sep arate forms were to be filled in depending on the 
form of entity to be given commercial registration.  The procedure in commercial registration further 
provided payment of a registration fee (for a regist ration valid for five years) of SR 1000 in case of  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 13 
 
 
establishments, SR 4000 in case of partnerships, SR  6000 in case of limited liability companies; and 
SR 8000 in case of joint stock companies. In the case of limited liability companies, draft articles of 
association were required to be submitted to the Mi nistry of Commerce & Industry for review. Once 
such forms had been duly prepared, they were ch ecked and authenticated by a notary public. Having 
been signed, authenticated and legalized, these documen ts were then published in the official gazette 
(Umm Al-Qura). In the case of limited liability comp anies, after printing and formal signing of the 
articles of association before a notary public, such  articles were submitted to the Ministry of 
Commerce & Industry and commercial registration was issued.   
33. The representative of Saudi Arabia also noted that “commercial registration” was a separate 
procedure and different from registration as a “commercial agent”. Registration as a commercial agent was not necessary for the right to import or export.  Any company, whether Saudi or foreign, which 
was commercially registered in the field of impor t trade could import goods without the need to get 
any further permission or authorization, except for ite ms which require an import license.  A firm that 
wished to be legally eligible to import goods s hould formally incorporate the activity of importing 
within its “scope of business” clause of its articles of association.   
34. In response to a question, the representative of  Saudi Arabia stated that foreign companies 
holding commercial registration in Saudi Arabia coul d directly import goods, for their own use or as 
inputs, without going through a commercial agent. 
35. The representative of Saudi Arabia said that Saudi  Arabia’s requirements on the right to trade 
would not contradict Articles III, VIII and XI of  GATT 1994.  The representative of Saudi Arabia 
confirmed that there would be no restrictions on th e right of foreign and domestic individuals and 
enterprises to import and export goods to and from Saudi Arabia, except as provided in WTO 
Agreements.  Saudi Arabia emphasized that foreign enterprises and individuals had to comply with all 
WTO-consistent requirements rela ted to importing and exporting, such as those concerning import 
licensing, TBT and SPS. However, foreign enterpri ses and individuals would not have the right to 
distribute goods within Saudi Arabia. Providing  distribution services would be done in accordance 
with Saudi Arabia’s Schedule of Specific Commit ments on Services.  The representative of Saudi 
Arabia confirmed that individuals and firms were not  restricted in their registered scope of business 
and the criteria for registration of companies in Sa udi Arabia were generally  applicable and published 
in the Official Gazette. 
36. The representative of Saudi Arabia confirmed that from the date of accession Saudi Arabia would 
ensure that its laws and regulations relating to the right to trade in goods and all fees, charges or taxes 
levied on such rights would be in full conform ity with its WTO obligations, including Articles WT/ACC/SPEC/SAU/4/Rev.2 
Page 14  
 
VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and that it would also implement such laws and 
regulations in full conformity with these obligat ions.  The Working Party took note of this 
commitment. 
Application of Internal Taxes
 
37. A member of the Working Party asked whether Saudi Arabia would abide by the non-
discrimination provisions of Articles I and III of GATT 1994 in relation to in ternal taxation from the 
date of accession. 
38. In response, the representative of Saudi Arabia stated that Saudi Arabia did not impose a value 
added tax nor an excise tax upon imported products.  The representa tive of Saudi Arabia confirmed 
that in case internal taxes were introduced, Saudi Arabia would apply these taxes in compliance with 
Articles I and III of the GATT 1994.  The Working Party took note of this commitment.  
39. Some members of the Working Party requested in formation on “Zakat” applied to Saudi Arabian 
citizens and income tax applied to foreigners.  Th ese members noted that it ap peared that the “Zakat” 
and income tax were applied in such a manner that  foreign investors typically carried a higher total 
tax burden than Saudi citizens.  The representative of  Saudi Arabia stated that there was a general 
misunderstanding about “Zakat” and income tax.  It was not correct to say that the tax burden (as distinct from the nominal rates) was higher for foreigners than for Saudi nationals or Saudi 
companies. The percentage of tax to net profit of  a non-Saudi would never exceed 30 per cent, while 
percentage of Zakat may reach or even exceed 100 pe r cent of net profit. Zakat was a religious tax and 
could not be altered.  Its rate and basis of collec tion was prescribed by religion and thus could not be 
changed or altered.  
40. In response to further questions he noted that the main features of “Zakat” were the following: 
- Zakat was applied at a flat rate of 2.5 per cent on the total assets of Saudi natural 
persons, wholly Saudi-owned companies and Saudi partners in joint ventures (except 
for rain-fed agricultural products and irrigate d agricultural products for which the rate 
was 10 per cent and 5 per cent respectively); 
- The base for levy of “Zakat”, i.e. the assessable amount, was not
 the income or profits 
of the assessee.  It was much larger a nd included: capital, statutory reserves, 
circulated profits, partners’ credit account for one year or longer (treated as capital), 
loans from partners (treated as capital and additional financing for the company), and 
long term loans from other sources for the purpose of capital base expansion.  There were no exemptions; 
- “Zakat” was payable even if the company did not make a profit; and - Zakat was payable even if the company ceased its activities; it was non-payable only 
when the company was liquidated. 
 
In contrast income tax and corporate tax had the following features:  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 15 
 
 
 - Income tax was payable by foreign natura l persons, foreign partners and foreign 
shareholders in business entities on their net income.  However, wages and salaries 
were exempt from taxation. 
- Corporate tax was payable by (i) non-Saudi corporations operating inside Saudi 
Arabia or both inside and outside of Saudi Ar abia at the same time ; (ii) the total share 
of foreign partners in the net profits of Saudi corporations (limited liability companies 
and joint stock companies), and (iii) total shar es of foreign partners in the net profit of 
Saudi partnerships. 
- Corporate tax was payable on net profit, unlike Zakat which was payable on total 
assets. 
- Unlike Zakat corporate tax was not payable in relation to any year in which the 
company did not make a profit or was not in operation. 
- The maximum rate of corporate tax on ne t profit was reduced from 45 to 30 per cent. 
- There was a provision for carry forward of losses for unlimited number of years. 
Pricing Policies
 
41. Some members of the Working Part y requested information on the pricing of certain feedstock, in 
particular, methane, ethane, butane,  propane and natural gas or liquefi ed petroleum gas.  In response, 
the representative of the Kingdom of Saudi Arabia noted that pricing for methane and ethane was 
quite different from the pricing of butane and propan e and natural gasoline.  Methane and ethane in 
the Gulf region had no international reference pri ce.  There were no exports of methane and ethane 
from Saudi Arabia, due to the high costs of liquefy ing, transporting and regasifying such gases.  
Previously, methane and ethane had been burnt as waste products.  Recently, it had been decided to 
make methane and ethane available to all interested  users (whether Saudi or non Saudi) at a price of 
US$0.75 per million BTU.  Methane and ethane were used by many industries and sectors, including 
power companies, desalination plants, cement  manufactures and petrochemical plants.   
42. He further noted that for butane, propane, natura l gas or gasoline NGLs, the Council of Ministers 
Resolution of December 1992 set the price of those g ases lower than the export price.  This was done 
to take account of the co sts associated with NGLs  exports to world markets including refrigerating, 
storage, mooring and marketing.  The gases were av ailable to all industries and all users within the 
Kingdom whether Saudi or non-Saudi enterprises.  All other energy prices including naphta were 
priced at arms length.  There were no specific di scounts. Butane, propane and natural gas was made 
available to industrial consumers in Saudi Arabia at  a price 30 per cent lower than the lowest export 
price charged for those product.  He noted that heavy naphta was not subject to any discount and was 
priced at the prevailing international price.  
43. At a later stage, the representative of Saudi Arabia confirmed that the Council of Ministers 
Resolution of December 1992 on dual pricing of butane, propane, natural gas or gasoline NGLs had 
been cancelled vide Council of Minister s Resolution No. 19756/R dated 21-11-1422 
(4 February 2002), and that accordingly, no dual pricing existed on any energy products.     WT/ACC/SPEC/SAU/4/Rev.2 
Page 16  
 
Import Regime
 
44. In response to a  specific question, the representative of Saudi  Arabia stated that the application of  
secondary and tertiary boycotts had been terminated.     
Customs Tariff  
45. The representative of Saudi Arabia provided memb ers of the Working Party with information on 
the Customs Tariff applied in Saudi Arabia.  
46. The representative of Saudi Arabia  stated that taking into account its own needs and the interests 
of members of the Working Party, his Government had offered extensive bindings in its tariff, on 
practically all tariff lines.  The only exceptions were the tariff lines concerning pork and alcohol, the 
production, consumption, import a nd sale of which was prohibited in Saudi Arabia for religious 
reasons.   
47. [Following the completion of bilateral negotiations  with WTO Members, Saudi Arabia's Schedule 
of Concessions and Commitments on Goods will be repr oduced in Part I of the Annex to the Protocol 
of Accession of Saudi Arabia.] 
Other duties and charges  
48. The representative of Saudi Arabia stated that Saudi Arabia was applying “other duties and 
charges” within the meaning of Article II.1(b ) of the GATT 1994 on 22 tariff lines in HS Nos. 2401, 
2402 and 2403, which had been shown in Saudi Arabia’s revised offer of June 1999.  The 
representative of Saudi Arabia confirmed that ODCs on these 22 tariff lines would be bound at the 
rates shown in its June 99 offer.   
49. He further confirmed that Saudi Arabia would not list other duties and charges in its Schedule of 
Concessions and Commitments on Goods under Article  II.1(b) of the GATT 1994 on all other tariff 
lines, except the 22 tariff lines of HS Chapter 24, and would bind such other duties and charges at 
zero. 
Fees and Charges connected with importation (for services rendered)  
50. The representative of Saudi Arabia confirmed that  any fees or charges on imports for services 
rendered would be in accordance w ith Article VIII (1)(a) of the GATT 1994.  The Working Party took 
note of this commitment. 
Quantitative import restrictions, including pr ohibitions, quotas and import licensing systems   WT/ACC/SPEC/SAU/4/Rev.2 
 Page 17 
 
 
51. In addition to information contained in th e Memorandum on the Foreign Trade Regime, the 
representative of Saudi Arabia provided a detailed description of the import licensing procedures 
prevailing in Saudi Arabia in document WT/ACC/ SAU/30, and a list of restricted (banned and 
controlled) items in Saudi Arabia, together with  the justification for the measures in document 
WT/ACC/SAU/29/Add.3.  He also noted that a dditional information could be obtained from the 
concerned department or division of the respectiv e Ministry or from the Information Centre of the 
Ministry.  The information could also be obtained from the Chamber of Commerce and Industry.  He 
also noted that any person with a Commercial Re gistration (i.e. registration to do business), whether 
an individual or an entity, could apply for import licence. 
52. Some members of the Working Party requested information on the propor tion of Saudi imports 
subject to licensing.  In response, the representativ e of Saudi Arabia stated that no statistics were 
available to answer that question.  
53. The representative of Saudi Arabia confirmed that in addition to the Ministry of Agriculture, 
Ministry of Commerce & Industry, Ministry of Health, Ministry of Information & Culture, Ministry of Interior, and Ministry of Petroleum and Natural Resources, the Ministry of Education (Department 
of Museums and Archaeology), the Ministry of Telecommunication and Information Technology, and 
the National Commission for Wild Life Conserva tion and Development (NCWCD) and the Chivalry 
Club all had responsibilities concerning the approval of import licences.  He also confirmed that there 
were no substantive requirements to register with the Ministry of Commerce & Industry in order to 
import, although there was a requirement to obtai n Commercial Registration for the carrying on of 
business, whether manufacturing, retailing, trading, or  professional.   Any company, whether Saudi or 
foreign, which was commercially registered in the field of import trade could import goods without the need to get any further permission or author ization, except for items which required an import 
licence.   
54. In response to further questions, he noted that th e Chivalry Club would grant an import licence for 
the importation of non-Arabian horses, after clearance by the Department of Animal and Plant Quarantine at the Ministry of Agriculture and Water,  within 30 days of receipt of a complete 
application.  In this connection, some members of  the Working Party requested additional information 
on the time limits for grant of other import licences.  These members noted, in particular, that Article 
3.5(f) of the Agreement on Import Licensing provided  that ordinarily an import licence must be 
granted within 30 days of receipt of a complete application.  These members noted that for some categories of goods, import licences took longer than  30 days, in particular, radio communication 
apparatus (one to two months) a nd network equipment (six to twelve months).  These members noted 
that the importation of such products was also subjec t to approval by the Frequency Department of the WT/ACC/SPEC/SAU/4/Rev.2 
Page 18  
 
Department of Post, Telegraph a nd Telephone.  In response, the representative of Saudi Arabia stated 
that the Frequency Department ordinarily comple ted its review in one week.  If a product met the 
frequency and necessary technical specifications, the Licensing Committee would ordinarily decide 
whether to grant an import licence within 30 days.   
55. In response to requests for information con cerning the fees payable for obtaining an import 
licence, the representative of Saudi Arabia stated th at there were no fees payable for the obtaining of 
an import licence.  Companies or persons wishing to import merchandise for display at a trade fair 
were granted import licences that permitted the import ation of all necessary samples, subject to the 
condition that the samples not be offered for direct sale.  
56. Some members of the Working Party requested in formation on the precise laws and regulations 
governing the time limits for issuing an import lic ence.  In response, the representative of Saudi 
Arabia stated that there were no laws or admi nistrative orders governing the issuing of import 
licences.  Average time periods for the issuing of import licences were around 30 days.  In the event of an unsuccessful application for an import licen ce, the person requesting the licence could appeal 
the refusal to the Board of Grievances. 
57. In response to further requests for information, the representative of Saudi Arabia noted that 
decisions to not grant an import licence could first be appealed to the Minister of the concerned 
Ministry or to the head of the Ag ency concerned.  Any subsequent appeal would be to the Board of 
Grievances.  (See paragraph 24 regarding the compos ition and workings of the Board of Grievances). 
58. Some members of the Working Party asked whethe r petroleum and natural asphalt were subject to 
import licensing and requested that Saudi Arabia pr ovide the justification pursuant to the relevant 
provisions of the WTO Agreement for the maintenance of import licensing on those products. In response, the representative of Saudi Arabia stated that petroleum and asphalt were previously subject 
to import licensing, but now there was no restriction on such imports.   
59. In response to questions from some members of  the Working Party, the representative of Saudi 
Arabia stated that the import of fire extinguishers required a licence from the Ministry of Interior.  He 
also noted that high quality photocopiers required an import licence from the Public Security Department of Forgery.  This was because such  photocopiers could produce extremely high quality 
reproductions of documents, making it hard to differe ntiate between the original and the photocopies 
of paper currency and official documents, certificates , passports, maps and stamps .  He also noted that 
burglar or fire alarms required an import licence to pr event misuse by criminals or terrorists. For this 
reason import licences were only issued to governme nt enterprises, public enterprises and firms or 
individuals who had a contract with the government  to supply such security devices from inside the  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 19 
 
 
Kingdom or abroad.  Some members of the Workin g Party requested additional information on the 
justification for the import licensing requirements for security reasons.  The representative of Saudi 
Arabia stated that those measures were necessary in  order to prevent import and the misuse of the 
items by persons who could pose a security risk.  Th e Ministry of the Interior was the agency that 
determined whether the importer posed a security risk or not.  The list of items subject to import licensing was under review, and in this context he noted that the requirement for import licensing of 
fire fighting equipment had recently been lifted.  That equipment could now be imported without a 
licence, following a customs examination to dete rmine compliance with Saudi or international 
standards.   
60. Some members of the Working Party requested  information on the system for licensing the 
importation of agricultural machinery.  The represen tative of Saudi Arabia stated that the import 
licensing system for import of agricultural equipment was operated in order to administer a system of 
subsidies paid to importers of such equipment.  The import licence was required even if the importer 
did not intend to apply for a subsidy payment.   
61. Some members of the Working Party requested fu rther details of import restrictions on long life 
pasteurized milk in packing exceeding 1 litre, (tar iff item 0401.00.00).  In response, the representative 
of Saudi Arabia stated that the Kingdom of Saudi  Arabia removed the ban on long life pasteurized 
milk, and the ban was replaced by tariffs.  He stated that the import ban on dates was removed and converted to tariffs.   
62. In response to questions from some members of  the Working Party, the representative of Saudi 
Arabia provided an Action Plan for the Implementation of the Import Licensing Agreement in document WT/ACC/SAU/40. At a later stage, he stated that the Action Plan had been fully 
implemented and that the Council of Ministers issued Decision No. 84  in July 2000 and Decision No. 88 in July 2002 to implement the WTO Agreement on Import Licensing Procedures. The Import 
Licensing Law issued vide Council of Ministers'  Decision No. 88 of July 2002 incorporates all 
substantive provisions of the WTO Agreement on Import Licensing Procedures.  Applications for 
automatic licenses could be submitted on any day before the customs clearance of goods, while 
applicants for non-automatic licenses were allowed a period of 21 days, with a possible extension of 
another 10 days for submitting applications before the closing date.  Applications for automatic 
licenses have to be decided within a maximum of  10 days while those for non-automatic licenses 
within a period of 30 days from the date of receipt.  The Law provided that a pplications would not be 
rejected for minor errors or for minor variations in value.  The Law further provided that license 
applicants have to approach only one administ rative body.  The Saudi Import Licensing Law also 
contains provisions on allocation of quotas in lin e with the provisions of Article 3 of the WTO WT/ACC/SPEC/SAU/4/Rev.2 
Page 20  
 
Agreement on Import Licensing Procedures (though Sa udi Arabia does not apply quotas).  The Saudi 
Law was published in the Official Gazette in July 2002. 
63. The representative of Saudi Arabia confirmed that Saudi Arabia would, from the date of 
accession, eliminate and not introduce, re-introduce or apply quantitative restrictions on imports or 
other non-tariff measures such as licensing, quotas, ba ns, permits, prior authorization requirements, 
licensing requirements and other restrictions having equivalent effect that cannot be justified under 
the provisions of the WTO Agreement.  Any furthe r amendments to the import licensing regime after 
accession would be fully in accordance with all re levant provisions of the WTO, including the 
Agreement on Import Licensing Procedures.  Sa udi Arabia would replace non-automatic import 
licensing with automatic import licensing for "milk for industrial use" within three years from the date 
of accession.  He further confirmed that any discr etionary authority permitting officials of the 
Kingdom of Saudi Arabia to suspend imports an d exports or licensing requirements that could 
suspend, ban, or otherwise restrict the quantity of trade would be applied from the date of accession in 
conformity with the requirements of the WTO, in particular Articles XI, XII, XIII, XVIII, XIX, XX 
and XXI of the GATT 1994, and the Agreements on Agriculture, Application of Sanitary and 
Phytosanitary Measures, Import Licensing Procedures,  Safeguards and Technical Barriers to Trade.  
The Working Party took no te of these commitments. 
Customs Valuation
 
64. Some members of the Working Party stated that  the system of valuation described in the 
Memorandum on the Foreign Trade Regime, in Annex 4 to document WT/ACC/SAU/4 and in 
document WT/ACC/SAU/18 did not appear to fully comply with certain requirements of the Customs 
Valuation Agreement.  Some members requested th at a number of areas of the customs valuation 
regime receive further elaboration so that they  were in conformity with the WTO Agreement on 
Implementation of Article VII of the GATT 1994, its Interpretative Notes, and relevant decisions and 
declarations.  In particular, members noted that in  addition to problems related to transparency or 
predictability, Saudi Arabia’s valuation system relied on the "nearest equivalent value" as an 
alternative to transaction value.  This could give customs officials excessively wide discretion in their 
determination of customs value of the imported goo ds.   In response, the representative of Saudi 
Arabia stated that from the date of accession to  the WTO, Saudi Arabia's system of Customs 
Valuation would be in full conformity with th e provisions of the WTO Agreement on Customs 
Valuation.  
65. Concerning Article 11 of the Customs Valuation Agre ement and the right of appeal to a judicial 
authority;  the representative of Saudi Arabia stated  that appeal rights for a relevant person before an 
independent judicial body (i.e. the Board of Grie vances) was guaranteed by Royal Decree 190 dated  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 21 
 
 
16 Dhu Al-Hujah 1409H (19 July 1989).  This applie d to the Customs Department.   The requirements 
of Article 12 concerning publication of laws, regulations, and decisions  were satisfied by provision 65 
of Royal Decree No. 425 dated 5/3/1372H (22 Novemb er 1952), which required that such information 
be published in the official gazette Um Al-Qura along with all other government notices such as changes in rates of duty.  The representative of Saud i Arabia also noted that as Saudi Arabia was not 
presently applying the Agreement on Customs Va luation, it had no provisions corresponding to 
Article 14 and to Decisions 3.1 and 4.1.  These would be incorporated in Saudi law on customs 
valuation when Saudi Arabia would implement the Agreement. 
66. Concerning the use of minimum values for custom s purposes, the representative of Saudi Arabia 
stated that Saudi Arabia would wish to make a reservation under paragra ph 2 of Annex III to the 
Agreement on Customs Valuation to continue the use of minimum values for a handful of products 
now under this system.  This would be necessary,  because although Saudi Arabia would ultimately 
discontinue the system, it would need a transiti onal time for this purpose as it would have to study 
carefully the implications of the change, and to devise procedures for checking practices which 
necessitate the use of minimum values.  The flexib ility required would be needed for two years from 
the date Saudi Arabia starts applying the provisions  of the Customs Valuation Agreement.  In the 
interim, Saudi Arabia would undertake a careful study in the first year of implementation to devise procedures for discontinuing the minimum values. 
67. The representative of Saudi Arabia also noted that Saudi Arabia would seek a reservation under 
paragraphs 3 and 4 of Annex III to the Customs Va luation Agreement.  The justification for that 
request was that because the Customs Administration of Saudi Arabia had not reached the level of 
sophistication and expertise of developed countries, it would not be possible for it to apply the 
relevant provisions of the Customs Valuation Ag reement before that date.  The reservation would 
continue to be applicable for an indefinite period.  In the interim, once Saudi Arabia started to apply 
the Customs Valuation Agreement, it would undertake studies to consider if it was feasible to lift the 
reservations. 
68. At a later stage, the representative of Saudi Arabia  stated that the Action Plan on Implementation 
of the Customs Valuation Agreement circulat ed in document WT/ACC/SAU/38/Rev.1 had been 
completed, that Customs officials and brokers had been trained and necessary laws and regulations on 
Customs Valuation had been drafted.  He confirme d that Saudi Arabia was able to implement the 
Customs Valuation Agreement from the date of its accession to the WTO. 
69. The representative of Saudi Arabia stated that th e Kingdom of Saudi Arabia would implement the 
provisions of the WTO Agreement on Implemen tation of Article VII of GATT 1994 (concerning WT/ACC/SPEC/SAU/4/Rev.2 
Page 22  
 
customs valuation) in full from the date of accessi on to the WTO, without recourse to any transition 
period.  In this regard, the Customs Law and implementing regulations would fully reflect the 
requirements of Annex 1 of the Interpretative No tes of the Agreement on the Implementation of 
Article VII of the GATT 1994 and Decision 4.1 on the Valuation of Carrier Media Bearing Software 
for Data Processing Equipment.  In accordance with these latter provisions, only the cost of the carrier 
medium itself would be accounted for in the customs value.  He stated that all methods of valuation 
used would be in strict conformity with those provided for in the WTO Agreement on the 
Implementation of Article VII of the GATT 1994.  The Working Party took note of this commitment. 
Rules of Origin
 
70. The representative of Saudi Arabia stated that Sa udi Arabia did not have rules of origin for non-
preferential trade but any future rules would be implemented in accordance with the WTO Agreement 
on Rules of Origin.   In response to requests for information,  the representative of the Kingdom of 
Saudi Arabia stated that certificates of origin a ttested by the Saudi Embassy or Consulate were 
necessary for importation of preferential trade items.  Where no Saudi Embassy or Consulate existed, such certificate would be attested by the Chambers  of Commerce in the exporting country.  Other 
requirements included minimum content from within the preferential system.  From 1996 all imports 
of expensive textile products had b een required to have the origin of the goods printed or stamped 
thereon with indelible print.  This requireme nt was introduced to protect consumers against 
misleading or deceptive practices.  A textile product was deemed to be "expensive" depending on an 
analysis of factors such as the quality the brand na me, texture, design and the price relative to other 
fabrics.   
71. The representative of Saudi Arabia stated th at, from the date of accession, Saudi Arabia's 
preferential and non-preferential rules of origin would comply fully with the WTO Agreement on 
Rules of Origin.  The requirements of Article 2( h) and Annex II, Paragra ph 3(d) of the Agreement 
would also be fully implemented prior to accession.  He also stated that in any event, from the date of 
accession, the Customs authorities would provide an assessment of the origin of the import upon the 
request of an exporter, importer or any person with  a justifiable cause.  Any request for such an 
assessment would be accepted even before trade in  the goods concerned began.  Any such assessment 
would be binding for three years.  The Wo rking Party took note of these commitments. 
Other Customs Formalities
 
72. Some members of the Working Party stated that consular authentication of customs documents in 
the country of export was a common practice in Saudi Arabia's region.   Such requirements were often 
unnecessary burdens placed on exports and used to collect addition al consular fees.  They requested  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 23 
 
 
Saudi Arabia to confirm that auth entication of customs documents by its consulates or Chambers of 
Commerce was not required in the exporting country and that no additional fees were charged.  The 
representative of Saudi Arabia stated that authentica tion of certificates of or igin and of invoices by 
Saudi consulates or by Chambers of Commerce was required to combat commercial fraud and to ensure 
that products prohibited for health reas ons were not exported to Saudi Arabia. 
Anti-dumping, Countervailing and Safeguards  
73. Some members of the Working Party raised con cerns regarding the law for the Protection and 
Encouragement of National Industry.  The representati ve of Saudi Arabia stated that the law would be 
reviewed to ensure consistency with WTO requi rements by the date of accession.  Members also 
noted that Saudi Arabia did not currently have an y trade remedies legislation permitting the imposition 
of anti-dumping or countervailing duty nor the im position of safeguard measures. Those members 
requested that Saudi Arabia undertake to not impos e such measures until appr opriate WTO consistent 
legislation had been enacted.   
74. The representative of Saudi Arabia said that Saudi Arabia would not apply any anti-dumping, 
countervailing or safeguard measures to impo rts from WTO Members unt il it had notified and 
implemented appropria te laws in conformity with the pr ovisions of the WTO Agreements on the 
Implementation of Article VI, on Subsidies and Countervailing Measures and on Safeguards.  He 
confirmed that Saudi Arabia would ensure that such  legislation would be in full conformity with the 
relevant WTO provisions, including Articles VI and XIX of the GATT 1994 and the Agreement on the Implementation of Article VI, the Agreement on Subsidies and Countervailing Measures and the 
Agreement on Safeguards.  After such legislation was implemented, Saudi Arabia would only apply 
any antidumping duties, countervailing duties and saf eguard measures in full conformity with the 
relevant WTO provisions.  The Working Party took note of these commitments. 
EXPORT REGULATIONS  
Export Restrictions
 
75. Some members of the Working Party enquired whether the Kingdom of Saudi Arabia maintained 
any export controls.  In response, the representati ve of Saudi Arabia stated that Saudi Arabia 
maintained no export bans, except on some items such as  date seedlings, breeding horses, wheat and 
wheat flour.  Some members of the Working Party asked whether Saudi Arabia intended to remove 
those bans prior to its accession to the WTO.  In response, the representative of Saudi Arabia stated that 
there were no bans on the export of wheat and wh eat flour, unless the wheat and wheat flour had been 
subsidized.  He further added that Saudi Arabia bann ed the export of date seedlings and breeding horses WT/ACC/SPEC/SAU/4/Rev.2 
Page 24  
 
because the local breeds and variet ies of these two items were pur e and rare. He added that upon 
accession to the WTO, Saudi Arabia would do what ever was required under applicable WTO rules.   
76. The representative of Saudi Arabia confirmed that  from the date of accession Saudi Arabia would 
ensure that its laws, regulations a nd requirements relating to the right to export and all fees, charges or 
taxes levied on such rights would be in full c onformity with its WTO obligations, including 
Articles VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and that it would also implement such laws 
and regulations in full conformity with these ob ligations.  The Working Party took note of this 
commitment. 
77. The representative of Saudi Arabia  also confirmed that any expor t control requirements remaining 
in place on the date of accession would be fully consistent with WTO provisions, including those contained in Articles XI, XVII, XX  and XXI of the GATT 1994.  The Working Party took note of this 
commitment. 
Export Duties
 
78. Some members of the Working Party requested information on export duties applied by Saudi 
Arabia.  Those members noted that the export duties applied by Saudi Arabia appeared to be imposed 
only for revenue purposes and would have trade distorti ng effects.  In response, the representative of 
Saudi Arabia stated that Article XI of the GATT 1994 expressly pe rmitted the imposition of export 
duties, and did not restrict the right to impose such duties.  Export duties applied only to untanned 
hides and skins, falling under HS No. 4101, 4102 and 4103.  The rate of export duty was Saudi Riyals 
2000 per ton. 
INTERNAL POLICIES AFFECTING TRADE IN GOODS  
Industrial Policy, Including Subsidies  
79. In response to requests for information concer ning interest free loans provided by the Saudi 
Industrial Development Fund, the representative of Sa udi Arabia stated that wholly-owned foreign 
companies, like Saudi owned companies, were also eligible for a loan of up to 50 per cent of the 
project cost. The representative of Saudi Arabia stated that the loan programme conducted by the 
Saudi Industrial Development Fund was entirely consistent with the GATT 1994 and the WTO 
Agreement on Subsidies and Countervailing Measures.   The loans were not contingent upon export 
performance nor were they contingent upon the use of domestic over imported goods.  The decision to 
provide a loan was made on the basis of the facts appropriate to that particular case within the 
parameters of the Saudi Industrial Development Fund  Law.  Article 2 of the Law provided that the 
Fund could provide medium or long term loans to (1) new industrial enterprises established in Saudi  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 25 
 
 
Arabia, and (2) existing private industrial enterp rises for the extension of their activities or the 
replacement of their equipment and introduction of modern methods thereto.  Article 4 of the Law 
stated that the Fund should carry out a full evalua tion of the economic benefits of the enterprise 
required to be financed, taking into considera tion the soundness of its management in order to 
ascertain the benefit of the industrial enterprise fro m economic, financial and technical aspects.  In 
addition, the Fund was required to examine whethe r the financing required for the whole of the 
enterprise had been reasonably obtained and whet her the volume of the Fund’s aid represented a 
reasonable percentage of the total financing need s of the enterprise, and the Fund was required to 
obtain sufficient financial guarantees for the financing given by the Fund.   
80. In response to questions from some members of  the Working Party, the representative of Saudi 
Arabia stated that no other support, subsidies or  pricing had been approved or sanctioned for actual 
projects involving the creation of production cap acity for refined petroleum and petrochemical 
products. 
81. The representative of Saudi Arabia confirmed that any subsidy programmes would be 
administered in conformity with the Agreemen t on Subsidies and Countervailing Measures and that 
all necessary information on programmes would be  notified to the Committee on Subsidies and 
Countervailing Measures in accordance with Article 25 of the Agreement upon entry into force of 
Saudi Arabia’s Protocol of Accession.  The Working Party took note of this commitment. 
82. The representative of Saudi Arabia confirmed th at Saudi Arabia did not maintain subsidies 
including export subsidies which met the definition of a prohibited subsidy, within the meaning of 
Article 3 of the Agreement on Subsidies and Count ervailing Measures and that it would not introduce 
such prohibited subsidies in the future.  The Working Party took note of this commitment. 
Technical Barriers to Trade  
83. The representative of Saudi Arabia provided the Working Party with information on technical 
standards and its International Conformity Certification Programme (ICCP) in documents 
WT/ACC/SAU/21, 26, 29, 34, 36, 37 (Revised Co mprehensive Procedures and Guidelines concerning 
the ICCP) and WT/ACC/SAU/41 (Action Plan for th e Implementation of the TBT Agreement).   
84. In response to questions from some members of  the Working Party, the representative of Saudi 
Arabia stated that importers in Saudi Arabia were  required to comply with Saudi law which required 
all products, imported as well as domestic, to be in c onformity with Saudi standards.  Unless specified 
otherwise, compliance with Saudi standards was an  implied condition of any contract between buyer 
and seller.  Saudi Arabia's standards were inte rnationally harmonized to the most feasible degree WT/ACC/SPEC/SAU/4/Rev.2 
Page 26  
 
possible, and Saudi specific standards were only a dopted in cases where the international standards 
would be an ineffective or inappropriate means for the fulfilment of the legitimate objectives pursued 
because of Saudi Arabia's fundamental climatic, geographical or technological problems, as allowed 
under TBT Agreement Article 2.4.  Consequently, Saudi Arabia considered that the use of a 
preshipment inspection scheme to verify conformity  to Saudi standards met the criteria of the PSI 
Agreement Article 2.4 and footnote 2. 
85. In response to questions concerning the conformity of Saudi technical standa rds with international 
norms, the representative of Saudi Arabia stated th at deviation of Saudi requirements from other 
national standards due to Saudi Arabia’s fundament al climatic, cultural and national security specific 
conditions rendered ISO 9001 alone in adequate to provide sufficient confidence in the quality, safety 
and conformity of goods.  In this connection, he not ed that Saudi Arabia was a member of ISO, IEC, 
OIML and CAC.  All Saudi standards were notifie d to all other members of those international 
organisations.  A high percentage of Saudi standards used interna tional standards and other widely 
accepted national standards as references.  He provide d members of the Working Party with a list of 
SASO standards that had been based upon CODEX st andards, together with a complete list of the 
1,323 Saudi standards including a cr oss-reference to the internati onal standards adopted in their 
entirety as SASO standards (in document WT/ACC/SAU/34).   
86. Some members of the Working Party requested a list of the standards deemed to be equivalent to 
Saudi standards.  In response, the representative of Saudi Arabia stated that the Saudi Arabian 
Standards Organization had published the list of st andards, and in this connection referred to the 
information in document WT/ACC/SAU/15.  He fu rther recalled his earlier statement that Saudi 
Arabia's standards were internationally harmonized as  far as possible.  Certain Saudi standards had a 
corresponding ISO or IEC equivalent which was indicat ed in the published list of SASO standards.  
Other Saudi standards used international standa rds or other recognized national standards as a 
reference.  He noted that a predetermination of th e equivalency of such standards was not feasible, 
due to the diversity and incorporation of the nationa l requirements and deviations of various countries.  
The registration process under ICCP provided a mechanism for the case by case evaluation and 
determination of equivale ncy of the standards to which complia nce was declared by exporters, or 
recognition of the relevant elements in the standa rds that partially satisfy the requirements of the 
Saudi standards.  As additional standards were evaluated progressively, a data base was established 
and referred to in any successive assessment of equivalency. 
87.  In response to questions from members of the Wo rking Party he noted that type testing was the 
ideal additional assuring factor, particularly when it was the most widely used and accepted method to 
verify the conformity of the design as required under M odule H.  Nevertheless, in lieu of type testing,  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 27 
 
 
the ICCP would accept Module H plus additional docu mentation which demonstrated that the Saudi 
requirements were typically known, understood and taken into account by the manufacturer in all 
phases within this system, from contract review th rough design, production, inspection, testing and 
acceptance. 
88.   Some members of the Working Party stated th at the recent exemption of GCC members from the 
ICCP and its implied recognition of  equivalency of all GCC members' inspection, enforcement, and 
compliance to relevant elements of GCC and/or SA SO standards raised questions under Article 4 of 
the SPS Agreement and the transparency provision s of the WTO.  Those members asked whether 
GCC member states were obliged to adopt the GCC standards in full or in part.  In response, the 
representative of Saudi Arabia stated that GCC Members were not exempted from the ICCP.  He added that Article 5.4 of the Regulations of th e "Standardization & Metrology Organization for GCC 
Countries" stipulated that mandatory Gulf Standa rds were adopted by consensus of all members, 
while voluntary or guideline standards were adopted  by majority.  Some members of the Working 
Party also requested a list of GCC member countri es that had officially adopted and incorporated 
SASO developed standards, by product category, (in fu ll or in part) into their national standards.  In 
response, the representative of Saudi Arabia pr ovided a list of SASO st andards which had been 
adopted as GCC Standards and thereby incorporated  as national standards in other GCC Countries in 
Annex III to WT/ACC/SAU/29. 
89. Some members of the Working Party requested that  the Government of Saudi Arabia publish draft 
standards in a single official journal or other publi cation that was available to the general public, and 
other interested parties.  In response, the representativ e of Saudi Arabia stated that this would be done.  
Some members also requested further information on the manner in which SASO developed technical 
standards.  In response, the representative of Saudi Ar abia stated that standards considered to be vital 
for the legitimate objectives of safety, health, … etc. and which were of concern to a wide spectrum of 
interested parties and economic sectors were refe rred to "technical committees".  However, recent 
policy within SASO had been to refer most sta ndards to technical committe es irrespectively.  All 
parties concerned with the subject matter of the draft standard were nor mally represented on the 
relevant "technical committees" as active members;  they included pertinent governmental, academic, 
industry and trade sectors.  For this reason, only one draft circulation period was necessary to provide adequate opportunity for comments by other interest ed parties.  In case of development of draft 
standards by SASO’s technical staff, the first dr aft circulation period provided the opportunity for 
comments raised by all concerned parties to be ta ken into consideration in the preparation of the 
second draft.  He also provided the Working Party with a copy of the procedures for the development 
of SASO standards in Annex IV to document WT/ACC/SAU/29. WT/ACC/SPEC/SAU/4/Rev.2 
Page 28  
 
90. Following further comments on the draft Compre hensive Guidelines and Procedures concerning 
the ICCP, some members of the Working Party asked  whether Saudi Arabia envisaged making further 
changes to the ICCP prior to WTO accession
1.  In response, the representative of Saudi Arabia stated 
that after careful analysis and consideration of the comments made by WTO Members, further revisions were made, as set out in documents WT/ACC/SAU/34, 36, and 37.  Saudi Arabia did not 
foresee the need for any exemption or transition periods in relation to any WTO provisions in 
connection with the ICCP.  Nevertheless, Saudi Arab ia reserved the right to seek such exception at 
any time during its accession negotiations, should the need arise.  
91. In response to further questions, the representative of Saudi Arabia stated that customs valuation 
was not assessed under the ICCP.  He noted also that appeals procedures were included as an 
Appendix to the ICCP Guidelines and following the suggestions of WTO Members had been revised 
to included recourse to independent review pr ocedures in accordance with Article 4 of the PSI 
Agreement.   
92. Some members of the Working Party asked whether testing laboratories and conformity 
assessment bodies could be accredited by the authoriti es administering the ICCP.  In response, the 
representative of Saudi Arabia stated that Saudi Arabia recognized conformity assessment bodies in 
other countries via acceptance of accreditation as an indication of adequate competence, and hence as 
an eligibility criteria for approval. In other co untries that did not have accreditation bodies, 
recognition of conformity assessment bodies was achi eved by extending invitations to all trading 
partner countries to nominate their own laborat ories for approval under their governments' 
responsibility.  Any required formalities were kept  to the minimum level necessary to achieve the 
objectives of the Programme. In fact, the procedur es were fully streamlined as evidenced by the 
virtual non-existence of delays or complaints by exporters.  
93. He later added that the approval procedure was ve ry simple and straight forward.  Laboratories 
seeking SASO approval were required to complete  the "SASO/ICCP Laboratory Application Form" 
(which was supplied to members of the Workin g Party in document WT/ACC/SAU/34).  He noted 
that the form provided SASO with  information about the accreditation that the laboratory already had 
and the type of ICCP Regulated Products that it had the capabilities to test in whole or in part.  The 
information was evaluated and verified and the la boratory was approved accordingly.  In countries 
that did not have Nationally Recognized Laborator y Accreditation Bodies that accredited laboratories 
in accordance with ISO Guide 25, a higher degree of scrutinizing was conducted in order to gain 
assurance of the laboratory's competence.  There were no costs involved for laboratories seeking 
SASO approval. 
                                                     
 
1 On the ICCP system, see also the section of this  Report entitled "Pre-shipment Inspection" below.  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 29 
 
 
94. Some members of the Working Party request ed additional information on the possible 
cancellation of certificates of conformity in the event that products enjoying the benefit of a certificate 
of compliance were found to be non-compliant.  The re presentative of Saudi Arabia stated that in such 
a case Saudi Customs would withhold the certif icate of compliance number, and suspend the 
certificate of compliance.  Thereafter, Customs would notify SASO and the manufacturer.  An expedient investigation was then carried out and a ppropriate action taken on the basis of the findings.  
Depending on the severity, frequency, and cause of  the discrepancy, appropriate action could 
includedsuspension or withdrawal of the Type Approval Licence.  The action taken was always 
proportionate to the seriousness of the facts at hand on a case by case basis.  Suspension (which may 
be temporary) or withdrawal of the Licence was onl y a possibility in extreme cases, such as fraud or 
material inaccuracy. 
95. Some members of the Working Party asked whet her certificates granted by other national or 
international certification bodies were taken into consideration by the ICCP Regional Licensing 
Centers.  In response, the representative of Saudi Arab ia stated that test reports or certificates issued 
by accredited bodies for the regulated product under another national or inte rnational conformity 
assessment or certification scheme could be submitted  by exporters as documents substantiating their 
compliance.  Full recognition was duly given to those reports/certificates in so far as they satisfy the 
Saudi requirements.  Where the full Saudi requireme nts were met, the role of the ICCP Regional 
Licensing Center would be limited to evaluation, ve rification, administration, issuance and validation 
of the confirming Statement of Registration or Type Approval Licence.  The SASO Country Office 
would still carry out the required PSI associated with  Registration and issue the final Certificates of 
Conformity.  For products holding SASO Type Appr oval Licence, certificates of conformity could be 
issued by the manufacturers themselves.  Th is applied to all products and countries. 
96. In response to questions from some members of  the Working Party, the representative of Saudi 
Arabia stated that SASO was the sole standardizat ion body in Saudi Arabia.  Its Board of Directors 
consists of all concerned Ministries, Governme nt Agencies and the Private Sector.  There was 
coordination between SASO and other Saudi authorities on issuing any regulations that may have an 
effect on international trade of Saudi Arabia with other countries.  He said that technical committees 
made recommendations to SASO whether a standard  should be voluntary or mandatory.  The criteria 
for adopting a standard as mandatory would be ba sed on the fulfilment of legitimate objectives as 
provided in the TBT Agreement, such as protection of health, safety, national security, public morals, 
the environment and prevention of deceptive practic es.  In reply to a question whether guidelines 
and/or criteria would be developed to assist in determining whether an existing standard should 
remain mandatory when it was reviewed, the representa tive of Saudi Arabia stated that the criteria for 
adopting mandatory standard would also apply to a review of the existing standards. WT/ACC/SPEC/SAU/4/Rev.2 
Page 30  
 
97. Some members of the Working Party requested Saudi  Arabia to confirm that access to the SASO 
Quality Mark would be on a non-discriminatory basi s and without distinction to the origin of the 
product.  They also requested Saudi Arabia to confirm that the Saudi Conformity Assessment 
Program (SCAP) that Saudi Arabia was developing would be in compliance with the WTO rules and 
that any fees charged for assessing the conformity of the products originating in the territories of other 
Members were equitable in relation to any fees chargeable for assessing the conformity of like 
products of national origin or orig inating in any other country, as foreseen in the TBT Agreement.  In 
response, the representative of Saudi Arabia stated  that access to Saudi Quality Mark would be on a 
non-discriminative basis, without distinction as to the origin of the products.  He further stated that 
Saudi Arabia would ensure the compliance of SCAP  with all the relevant WTO requirements relating 
to national treatment, including fees charged.  The representative of Saudi Arabia stated that SCAP 
would be implemented to ensure compliance of domestically produced products with the national 
standard.  He stated that the ICCP ensured comp liance of regulated imported products with relevant 
standards.  Thus, the two programs, SCAP and ICCP would continue in paralle l, and would ensure the 
concept of equivalency of procedures for im ported and domestically produced products.  
98. In response to the above explanations and clarif ications provided by the representative of Saudi 
Arabia, members of the Working Party requested that  Saudi Arabia provide a description of the steps 
being taken to ensure full implementation of the Agreement on Technical Barriers to Trade.  In response, in document WT/ACC/SAU/41, the repre sentative of Saudi Arabia provided the Working 
Party with a comprehensive Action Plan for th e Implementation of the TBT Agreement.  The 
representative of Saudi Arabia noted that the Action Plan cross-referenced the various requirements of 
the TBT Agreement, and described the existing prov isions or practices in Saudi Arabia and also 
described any planned improvements, including the enactment of implementing legislation.  The 
Action Plan had been fully implemented and necessary legislation to implement the TBT Agreement 
had been issued under the SASO Comprehensive Directive of July 2000, copies of which had been 
circulated to Working Party members in October 2000. 
99. The representative of Saudi Arabia stated that Saudi Arabia would comply with all obligations 
under the WTO Agreement on Technical Barriers to Trade from the date of accession without 
recourse to any transition period.  The Work ing Party took note of this commitment. 
Preshipment Inspection
 
100. Some members of the Working Party stated that the ICCP program mentioned above operated 
as a PSI scheme.  They noted that although most of the requirements of the Agreement on Preshipment Inspection appeared to have been comp lied with, some elements of the ICCP continued 
to raise concerns.  Some members of the Working Party expressed concern that the ad valorem  fee  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 31 
 
 
charged for conformity assessment was not consistent  with the requirements of Article VIII of the 
GATT 1994.  In response, the representative of Saud i Arabia stated that Article VIII of GATT 1994 
aimed to ensure that fees did not include incremen tal charges imposed by Governments on top of the 
cost of services rendered.  The ICCP fees were paid  in their entirety by exporters directly to the 
entities contracted by SASO to cover actual inspec tion, registration licensing and certification services 
rendered only. No part of the fees was paid or allo cated to SASO or any other Government Body, and 
thus no protection to domestic indus try was afforded nor taxation levied.   He added that the fees 
charged were not required to equate exactly with  the exact cost of services rendered; a degree of 
reasonable approximation was allowed. Global PSI Programmes were utilised by 33 WTO Members, 
and ad valorem  was the consistently predominant fee scheme prior to the PSI Agreement.  Since the 
PSI Agreement did not specifically address the issue of fees, this implied the acceptance, versatility 
and legitimacy of the prevailing ad valorem  method, and affirmed its c onsistency with the original 
GATT 1994 Article. Otherwise, the 33 WTO Members would be in direct violation of the WTO 
Agreement.  
101. He further added that the application of ad valorem  PSI fees by WTO user Members of PSI 
Programmes had not been raised as the subject of dis pute at the WTO to date.  He added that the PSI 
Agreement further acknowledged th at Governments normally contracted PSI Programmes to PSI 
Entities as Saudi Arabia had. Fees required by all reputable PSI Entities (IFIA members) for 
delivering professional global PSI services were based on the ad-valorem  scheme. Saudi Arabia was 
not operating in a vacuum and could not unilate rally impose on the PSI industry an entirely odd 
scheme contrary to the practice prevailing throughout  that industry.  Nevertheless, Saudi Arabia had 
succeeded in introducing reasonable modifications to the fixed ad valorem  method by adopting a cost 
responsive graduated percentage of FOB fee stru cture which was amongst the lowest in the world 
coupled with shipment aggregation, resulting in a mu ch higher degree of approximation of the cost of 
services as well as higher equitability. Saudi Arabia ha d further made adjustments to situations where 
a disparity existed between the cost of PSI servi ces and the percentage of FOB value of the product 
e.g. the fees for inspection of cars had a maximum ceiling of US$48.00 per car. 
102. He further added that if a consensus of WTO Members determined that the ad valorem  
scheme was not appropriate, and if an amendment was made to the existing PSI Agreement 
prescribing an alternative fee scheme, Saudi Arabia would be ready to follow the course of prevailing 
international practice and comply accordingly.  He also noted that any unfavourable consideration of 
its ICCP Regime on grounds of its inspection fee stru cture would be discriminatory in nature, in light 
of the WTO’s acceptance of some Members’ application of the fixed ad valorem  scheme. There was 
consensus that Saudi Arabia would continue to apply ad valorem fees under the ICCP, while WTO 
Members reserved their right to settle this issue through the WTO dispute settlement provisions.   WT/ACC/SPEC/SAU/4/Rev.2 
Page 32  
 
103. The representative of Saudi Arabia stated th at from the date of accession to the WTO Saudi 
Arabia would ensure that the requirements of th e Agreement on Preshipment Inspection were met in 
full.  He further confirmed that Saudi Arabia w ould ensure that the opera tions of any preshipment 
inspection companies retained by Saudi Arabia  met the requirements of the WTO Agreement, 
including the establishment of charges and fees c onsistent with Article VIII of the GATT 1994, and 
would comply with the due process and transpar ency requirements of the WTO Agreements, in 
particular Article X of the GATT 1994, and the Ag reement on the Implementation of Article VII of 
the GATT 1994.  [Saudi Arabia confirmed that its pre-shipment inspection regime would be 
temporary and would only operate until such time as the Saudi Customs authorities were able to carry 
out the functions presently performed by pre-shipment inspection service providers]. The Working Party took note of these commitments. 
Sanitary and Phytosanitary Measures
 
104. In response to requests for information, the re presentative of Saudi Arabia supplied detailed 
information on the Saudi Arabian Sanitary and Ph ytosanitary regime in document WT/ACC/SAU/17.  
In addition, he also submitted information on the shelf life of food products in document 
WT/ACC/SAU/27.   
105. The representative of Saudi Arabia stated that the legal basis for sanitary and phytosanitary 
requirements in Saudi Arabia was the Royal Decree number M/10 on 3/3/1392 H (16 April 1972) 
developed by the competent standardization body (i .e. Saudi Arabian Standards Organization, SASO).  
Saudi standards covered sanitary requirements for f ood products by means of the following measures:   
(i) measures following the standards a nd guidelines of Codex Alimentarius; 
(ii) measures not cove red by the standards and guidelines  of Codex Alimentarius were 
based upon scientific st udies or the most appropriate me asures of other WTO Members. 
106. In addition, the representative of Saudi Arabia stated that the veterinary quarantine bylaw 
issued by Decree of the Council of Ministers number 208 dated 26/1/1396 H (28 January 1976) covered sanitary and veterinary re quirements and measures pertaining to animals and animal products 
conforming to the ruling of the International Zoosanitary Code specifying the regulations 
recommended for international trade with regard to animals and animal products issued by the Office 
International des Epizootics.  He noted also that  the agricultural quarantin e bylaw issued by the 
Decree of the Council of Ministers number 207 dated 26/1/1396 H (28 January 1976) set out requirements and phytosanitary measures conforming to  the rules issued from IPPC initially based on 
FAO publications.  Periodic preventive health circular s issued by the Ministry of Health pursuant to 
the weekly epidemiological circular issued by the WHO were also concerned with sanitary and 
phytosanitary measures.  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 33 
 
 
107. In response to further requests for information, the representative of Saudi Arabia stated that 
sanitary and quarantine measures for animal hea lth, living plants and seeds, measures for the 
prevention of epidemic diseases spread and the c ontrol on the use of veterinary medicines and 
pesticides were administered by the Ministry of Agriculture and Water, as well as the Ministries of 
Commerce and Municipalities.   Sanitary measures for fresh vegetables and fruits were governed by 
SASO standards and applied by the Ministry of  Agriculture and Water.  When no approved 
international standards applied to these produc ts, the Kingdom of Saudi Arabia approved the 
standards applied in EU member States and Memb ers of the WTO.  Standards concerning sanitary 
measures for food commodities (meat, meat products  and processed foods) were imposed by SASO 
but applied by the Ministries of Industry and Commerce on locally made products, and by the Ministry of Commerce & Industry on imported products .  The Ministry of Municipalities participated 
in internal control of products in the markets which were mainly controlled by the Ministry of 
Commerce.  Measures relating to effects on the human health and its relation with animal sanitary and 
phytosanitary and food safety were imposed by the Mi nistry of Health through the issuing of periodic 
preventative circulars to inform and caution other concerned bodies about relevant risks. 
108. He further noted that sanitary measures of Saudi Arabia were consistent with the SPS 
Agreement and also with the recommendations and guidelines issued by international and regional 
organizations.  Saudi Arabia was a permanent and act ive member in the international organizations on 
plant and animal regulations, including FAO and the International Office of Epizootics (IOE).  Saudi 
Arabia's SPS measures did not arbitrarily or unjust ifiably discriminate between different countries 
where identical or similar conditions prevail.  Su ch measures also did not discriminate between the 
territory of Saudi Arabia and other countries where identical or similar conditions prevailed.  Saudi 
Arabia's SPS measures were not applied in a ma nner which constitutes a disguised restriction on 
international trade. 
109. In response to requests for information on the transparency of Saudi Arabia's SPS measures, 
the representative of Saudi Arabia stated that Sa udi Arabia's SPS measures we re published in advance 
of their application.  The Kingdom of Saudi Arabia had an established system for informing governments and other standards organizations of changes, and full sets of guidelines detailing all 
requirements were freely available to any inter ested parties. Saudi Arabia's SPS measures and 
requirements were notified to the Embassies in th e Kingdom and to Saudi Chambers of Commerce.   
110. Some members of the Working Party stated that the information on Saudi Arabia's sanitary 
and phytosanitary measures gave a good overview of the regime.  They sought confirmation that 
measures were based on risk assessments carried  out in accordance with Article 5 of the SPS 
Agreement.  In response, the representative of Saudi Arabia confirmed that Saudi Arabia’s SPS WT/ACC/SPEC/SAU/4/Rev.2 
Page 34  
 
measures conformed to all standards, guidelines or  recommendations issued by the international 
bodies specifically designated by the SPS Agreem ent i.e. Codex Alimentarius Commission, the 
International Office of Epizootics and the Interna tional Plant Protection Conventions.  Saudi Arabia 
was a member of all three organizations.  In accord ance with Article 3.2 of the SPS Agreement, these 
SPS measures were fully consistent with the SPS Agreement.  For SPS measures related to risk 
assessment not covered by the above three organizat ions (such as microbiological risks and shelf life 
of food products), Saudi Arabia relied on scien tific studies, guidelines and recommendations either 
carried out by specialized internationally accepte d research institutes, universities or scientific 
references or, in limited cases, by itself.  The appropr iate level of protection adopted by Saudi Arabia 
was consistent with the guidelines and recommendati ons issued by these internationally recognized 
bodies and Saudi Arabia had thus taken into acco unt the objective of minimizing negative trade 
effects.  He confirmed that Saudi Arabia's SPS m easures were based on risk assessment in accordance 
with Article 5 of the SPS Agreement. 
111. Some members of the Working Party identified certain possible areas of inconsistency with 
the requirements of the SPS Agreement, such as the Council of Ministers Resolution No. 207 
(26.1.1396H) (28 January 1976) "Agricultural Quaran tine Regulations" requirement in Article 6 that 
products be free of all weed seeds, regardless of wh ether such weed seeds were quarantine significant, 
in accordance with relevant international guidelines.   Some members also noted that the Council of 
Ministers Decree No. 208 (26.1.1396H) (28 January 1976) "The Statutory Instrument of the 
Veterinary Quarantine", Article 3 stated that "no animal may be admitted ... from any country that was 
infected with any epidemic diseas e ...". These members were of the view that this requirement was 
inconsistent with Article 6 of the SPS Agreement.   In response the representative of Saudi Arabia 
stated that upon accession, the Kingdom of Saudi Arabia would comply with the relevant WTO obligations.  In response for further information c oncerning the importation of seeds, he noted that 
there was no fee charged for the inspection of seed s.  The seeds were first subject to a visual 
examination to check for impurities and to ensure that the phytosanitary information in the import 
documents was correct.  Thereafter samples of th e seeds were sent to laboratories to check for 
aflatoxins. 
112. Some members of the Working Party stated that certain laws, such as the "Approval of 
Importing Alfalfa and Vegetable Seeds from Non- Arab Countries", and "Approval of Importing 
Flower and Forage Crop Seeds from Non-Arab C ountries" appeared to only apply to "non-Arab" 
countries, which suggested problems in relation to the consistency of these regulations with the 
principle of most-favoured-nation treatment.  In r esponse to further questions, the representative of 
Saudi Arabia stated that upon accession, the Kingdom of Saudi Arabia would comply with the 
relevant WTO obligations.  Some members of th e Working Party stated that position appeared  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 35 
 
 
inconsistent with the SPS Agreement’s requireme nt that, in applying SPS measures, WTO Members 
recognize "regional conditions" affecting human, animal and plant health risks.  In response, to these 
and further concerns expressed by Working Party me mbers about particular regulations and practices 
in the Saudi Arabian SPS regime, the representative of  Saudi Arabia stated that those regulations 
would be reviewed.  
113. Some members of the Working Party noted that th e time limits relating to shelf life in Saudi 
Arabia appeared to be unduly short.  In response, the representative of Saudi Arabia stated that all 
Saudi Arabia’s shelf life determin ations were based on scientific i nvestigations and on international 
and other countries’ national standards, scientific studies and reports conducted/issued by specialized 
internationally reputable research institutes and univ ersities, and international scientific references.  
The final determination of shelf life was based on studies for which "the stated storage conditions" 
most closely resembled Saudi Arabian conditions. These conditions had been thoroughly investigated 
and surveyed by Saudi Arabia in the report entitled "Proceedings of Symposium on the Transportation, Handling & Storing of Food Products in the Kingdom, Part I and II dated 
26-28 February 1989".  In this connection, he noted  that Codex defined "Use-by-Date" as "the date 
which signifies the end of the estimated period und er any stated storage condition after which the 
product probably would not have the quality attri butes normally expected by the consumers.  After 
this date, the food should not be regarded as ma rketable".  He further added that the term 
"unacceptable to the consumer" and "unfit for human  consumption" respectively corresponded to, and 
were self evident from the above definition.  He  further added that Saudi Arabia relied for the 
determination of the shelf life of food products on available scientific studies by specialized, and 
internationally recognized bodies and on referen ces, based on research conducted for academic or 
industrial/commercial purposes.  The fact that part of this research was conducted by manufacturers 
demonstrated that Saudi Arabia took into consid eration differences in manufacturing and packaging 
processes.  This wide spectrum of scientific basis did not affect Saudi Arabia's right to engage in shelf 
life determination as an SPS measure for perishab le food products and as a TBT-technical regulation 
appropriate to Saudi Arabia's  climatic conditions for shel f stable food products.   
114. In response to further questions he noted that manufacturer determined shelf life practices that 
were followed in other countries were neither uni form nor could be considered as official SPS 
measures by governments.  Nevertheless, shelf life periods of perishable food products were not 
imposed unilaterally, but rather adopted in accord ance with the same open process applicable to 
standards, i.e. through technical committees entrus ted with the preparation of the standard whose 
diversified membership included representatives of  the industrial and commercial sectors.  He 
considered that those members had the opport unity to influence the decision on shelf life 
determination and insure its responsiveness to the needs of the industry, not to mention the period WT/ACC/SPEC/SAU/4/Rev.2 
Page 36  
 
afforded for consultation and comment by any inter ested parties.  In addition, SASO administrative 
procedures and directives provided the opportunities for manufacturers to submit at any time the 
scientific basis for their own determined shelf to SASO for evaluation.  If those manufacturers could 
demonstrate objectively that their shelf life periods were appropriate to Saudi  Arabia's level of SPS 
protection as well as the food quality criteria, Saud i Arabia would revise its shelf life standards 
accordingly. 
115. In response to further questions, the representativ e of Saudi Arabia noted that the same shelf 
life periods were applied to domes tic and imported food products alike.  In the case of shelf stable 
products, the TBT Agreement granted Saudi Arabia th e right to take into account the effect of the 
country’s specific climatic and infrastructural c onditions (i.e. transportation, storage and handling 
conditions).  However, climatic c onditions were the major factor cons idered by SASO in determining 
shelf life.  In rare cases covering particular pr oducts where non-concurrence or differences were found 
between the internationally recognized studies and re ferences, the tendency had been to rely more 
heavily on the shorter shelf life periods determined  by these studies as an indirect compensation for 
not specifically accounting for infrastructural factors.   With the improvement of the infrastructural 
factors, a less stringent system would be adopted. 
116. The representative of Saudi Arabia stated that Saudi Arabia would revise its shelf-life 
requirements within three years from the date of accession to the WTO. The shelf-life requirements would be consistent with WTO rules. The Working Party took note of this commitment. 
117. Some members of the Working Party noted that  the Agreement on Sanitary and Phytosanitary 
Measures required that WTO Members accept the san itary and phytosanitary measures of other 
members, subject to confirming objectively that those measures were adequate to achieve the 
importing country's level of sanitary and phytosanitary  protection.  In response, the representative of 
Saudi Arabia stated that upon accession, Saudi Arab ia would accept the certification of exporting 
countries in accordance with the requirements of the Agreement on Sanitary and Phytosanitary 
Measures.  
118. Some members of the Working Party requested that Saudi Arabia identify all areas of 
inconsistency and provide a timetable for bringing the Saudi Arabian regime into conformity with the 
requirements of the SPS Agreement.  In response, th e representative of Saudi Arabia stated that an 
internal review had already been commenced in to Saudi Arabia’s SPS regime guided by the 
comments of the WTO Working Party in this respect.   At a later stage, the representative of Saudi 
Arabia provided members of the Working Part y with a comprehensive Action Plan for the 
Implementation of the SPS Agreement in documen t WT/ACC/SAU/42.  Later, he informed the  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 37 
 
 
Working Party that the Action Plan had been fu lly implemented by issuance of the Council of 
Ministers' Decision No. 85 of July 2000 and the Council of Ministers' Decision No. 943 of 
1 July 2003 on SPS law titled "Sanitary and Phyto sanitary Unified Procedures" which was in 
compliance with the provisions of the WTO Agreem ent on Sanitary and Phytosanitary Measures.  In 
reply to questions from some Working Party members,  the representative of Saudi Arabia stated that 
the new SPS law also incorporates revisions of the "Agricultural Quarantine Regulations" and the 
"Statutory Instruments of Veterinary Quarantine" ensuring conformity with the requirements of the 
SPS Agreement. 
119. The representative of Saudi Arabia stated that  Saudi Arabia's sanitary and phytosanitary 
standards system would be in compliance w ith WTO provisions under the Agreement on the 
Application of Sanitary and Phytosanitary Measur es as of the date of accession to the WTO, and that 
Saudi Arabia would apply all measures of the Agreement on the Application of Sanitary and 
Phytosanitary Measures in a least trade distortive manner from the date of accession without recourse 
to any transition period.  The Working Party took note of these commitments. 
Trade Related Investment Measures  
120. Some members of the Working Party congratulated Saudi Arabia on its generally very liberal 
investment regime and asked whether there were any measures in place in Saudi Arabia that were 
inconsistent with the requirements of the Agreement on Trade Related Investment Measures 
(TRIMS).  In response, the representative of Saudi Ar abia stated that there were no measures in place 
in Saudi Arabia that were inconsistent with th e requirements of the Agreement on Trade Related 
Investment Measures (TRIMS).  He noted that in pa rticular, there were no measures in place in Saudi 
Arabia that were of the kind described in the "I llustrative List" in the Annex to the Agreement on 
TRIMS.  Some members of the Working Party enqu ired whether Saudi Arabia imposed any transfer 
requirements in relation to technical or manage ment know-how or upon foreign investors.  In 
response, the representative of Saudi Arabia stated  that no precise requirements on such transfers had 
been specified. 
121. The representative of Saudi Arabia stated that Saudi Arabia would not maintain any measures 
inconsistent with the TRIMs Ag reement and would apply the TRIMs Agreement from the date of 
accession without recourse to any transition period.  The Working Party took note of this commitment. 
State Trading 
 
122. Some members of the Working Party asked the representative of Saudi Arabia whether there 
were any enterprises operating within the Kingdom of  Saudi Arabia that enjoyed any exclusive or WT/ACC/SPEC/SAU/4/Rev.2 
Page 38  
 
special privileges within the terms of the defin ition set down in Article XVII of GATT 1994.  In 
response, the representative of Saudi Arabia stat ed that the Saudi Arabian Oil Company (Saudi 
Aramco) was a state trading enterprise and  made purchases and sales solely in accordance with 
commercial considerations and acted in a manner  consistent with the general principles of 
non-discriminatory treatment enshri ned in Article XVII of GATT 1 994. Saudi Arabian Oil Company 
(Saudi Aramco) was established by a royal decree in 1987.  It was responsible for most of the 
production and export of crude oil and natural gas in  the Kingdom.  It was also responsible for the 
refining and marketing of products within Saudi Arab ia and entered into joint venture refineries with 
others.  Although owned by the government, it wa s run on a commercial basis by an independent 
board of management and directors, chaired by th e Minister of Petroleum and Mineral Resources.  
The board consists of members from the compan y’s executive management, government officials, 
private sector and international companies.  The ge neral policy of the Corporation was determined by 
the Supreme Council for Petroleum and Mineral Affair s which was presided over by the President of 
the Council of Ministers or his designated repr esentative.  Ten further members from the private 
sector and government officials were appointed by royal order. 
123. The Grain Silos and Flour Mills Organization (GSFMO) was established by a Royal Decree 
in 1973 in order to support the development of th e domestic agricultural sector, particularly wheat 
production for national security reasons. GSFMO was charged with forming a grain storage, flour 
production and animal feed processing conglomerate as well as with creating a stable market for 
grains in order to safeguard farmers from price fl uctuations. It was the only organization allowed to 
import grains, flour, and animal feed.  GSFMO used to be the only organization to import wheat and barley. The import regime of these products had now been liberalized. Importers  in the private sector 
could import wheat and barley. GSFMO no longer im ports these products. It was no longer a state-
trading enterprise.  In response to a question, the representative of Saudi Arabia stated that 18 private 
firms were importing wheat and barley follo wing the termination of GSFMO monopoly. 
124. The representative of Saudi Arabia confirmed that after accession to the WTO, Saudi Arabia 
would observe WTO provisions, in particular , Article XVII of the GATT 1994, the WTO 
Understanding on that Artic le, and Article VIII of the GATS regard ing state trading, with respect to 
the State-owned enterprises and other enterprises a nd entities with special or exclusive privileges 
identified above, in particular abiding by the provi sions for notification, non-discrimination, and the 
application of commercial considerations for trad e transactions.  The Working Party took note of 
these commitments. 
Free Zones
  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 39 
 
 
125. The representative of Saudi Arabia stated that Saudi Arabia had no free zones or free 
economic zones and stated that if any were estab lished, Saudi Arabia would administer them in 
compliance with WTO provisions, including those a ddressing subsidies, TRIMS and TRIPS, and that 
goods produced in these zones under tax and tariff  provisions that exempt imports and imported 
inputs from tariff and certain taxes and charges woul d be subject to normal customs formalities when 
entering the rest of Saudi Arabia including the applic ation of tariffs and any taxes and charges.  The 
Working Party took note of these commitments. 
Agricultural policy  
126. The representative of Saudi Arabia provided information on its agriculture sector, including 
tables on domestic support and export subsidies in document WT/ACC/SAU/19 and WT/ACC/SPEC/SAU/1/Rev.6 and Corr.1.  Saudi Arab ia also engaged in negotiations on domestic 
supports and export subsidies.  In this connection, the representative of Saudi Arabia also described 
the special flexibilities Saudi Arabia would require in  the support of its agriculture sector in document 
WT/ACC/SAU/28.  The commitments reflecting the r esults of these negotiations were annexed to the 
Protocol of Accession of Saudi Arabia to the WTO.   
127.  Some members of the Working Party requ ested that Saudi Arabia provide detailed 
information on the role of the Saudi Agricultural Bank,  in particular in the area of its mandate with 
regard to providing agricultural lo ans and subsidies.  In response, the representative of Saudi Arabia 
stated that the Saudi Arabian Agricultural Bank (SAAB)  was founded by the Royal Decree No. 58 
issued on 3/12/1382. It was a government financial institution specializing in providing funding to the 
agricultural sector in order to assist in the deve lopment of agriculture, and improve agricultural 
productivity through the deployment of state of the art scientific and technical methods.  The Bank 
granted loans through 13 branches, with 57 offi ces throughout the Kingdom in order to facilitate 
provision of services to farmers in their regions. The Bank grants farmers, agricultural projects, fishermen, bee keepers and farm  cooperatives two types of agricultural loans free of interest.  
However, there were unseen costs borne by agricult ural investors in order to acquire a loan from 
SAAB.  These costs were reflected in the number and amount of loans shown in the table below.  The 
time needed to process the application and approve th e loan was long due to bureaucratic formalities.  
Therefore, the opportunity costs for ag ricultural loans was very low.   
Year No. Total loans 
Amounts (thousands SRs) 
1992 4374 775,150 
1993 4429 930,561 
1994 3822 670,556 
1995 2642 412,589 
1996 3065 431,708 WT/ACC/SPEC/SAU/4/Rev.2 
Page 40  
 
1997 3942 626,956 
1998 5607 897,310 
1999 6628 903,010 
2000 6147 1,112,221 
2001 8037 1,444,925 
Source:  Saudi Arabian Agricultural Bank, the Annual Report No: 38, 1421/1422 (2001)  
 
128. He added that the Bank had also been respons ible for the disbursement of a package of 
agricultural subsidies incurred by the government to wards reduction of agricultural expenditures in 
order to increase the average retu rn on agricultural production. These subsidies included: engines, 
irrigation pumps, agricultural machinery, poultry eq uipments, dairy production equipment, in addition 
transport costs from the country of origin of high breed cows imported to the Kingdom were also paid. 
The following table shows total agricultural subs idies disbursed through the bank during the period 
1992-2001 : 
Year Total subsidies   (Thousand SRls) 
1992 677,902 
1993 248,624 
1994 355,434 
1995 0 (no subsidies) 
1996 296,937 
1997 229,376 
1998 225,492 
1999 197,358 
2000 228,960 
2001 249,880 
Source: Saudi Arabian Agricultural Bank, The Annual Report, No: 38, 1421/1422 (2001)  
 US$1 = SRls 3.75 
 
129. In response to further questions, the representative of Saudi Arabia stated that in pursuance of 
the current Development Plan, Saudi Arabia woul d distribute land in areas where suitable quantities 
of water resources were available.  Investment woul d be encouraged in large agricultural projects that 
depend on renewable water resources, using modern irrigation systems that consume low quantities of 
water.  Domestic production of ve getables and fruits grown in green-houses would be encouraged, as 
would the fishing industry using advanced technolog y.  As planned, wheat production was gradually 
reduced from more than 4 million tons before 1994 to  2.8 million tons in 1994, 2 million tons in 1998 
and 1.8 million tons in 2001.  The production of ba rley was also reduced from 2 million tons in 
1994-1995 to one million tons in 19 98, and to less than 200,000 tons in 2001. Domestically produced 
barley was purchased by the Grains, Silos and Flour Milling Organization, and then sold to livestock 
producers at the fixed price of US$ 133 per ton.  The same programmes would be continued during 
the Seventh Plan period in order to promote and encourage implementation of agricultural 
development.    WT/ACC/SPEC/SAU/4/Rev.2 
 Page 41 
 
 
130. Some members of the Working Party asked whether there was any support to the dairy sector.  
In response, the representative of Saudi Arabia stat ed that there was no specific support for the dairy 
sector, except for transportation cost of the imported cows under special conditions. 
131. In response to questions concerning the provisi on of irrigation water for crop production, the 
representative of Saudi Arabia stated that irrigati on water for crop production was provided by private 
farmers, and not by the Government.  He noted th at there were no subsidies associated with the 
running of irrigation equipment. 
132. Some members of the Working Party requested th at the representative of Saudi Arabia clarify 
the role of the Grains, Silos, Flour Milling Organi zation (GSFMO) in the export and subsidisation of 
wheat.  In response, the representative of Saudi Ar abia stated that since 1995 the GSFMO had not 
exported wheat or barley.  Export controls were ma intained for subsidized wheat and barley through 
export licences.  In response to further questions, he  added that the exportation of date palm seedlings, 
barley, corn maize and soy beans was conditional upon the repayment of subsidies intended for the 
support of domestic production.  
Trade in Civil Aircraft  
133. Some members of the Working Party asked th at Saudi Arabia enter a commitment to accede 
to the Agreement on Civil Aircraft from the date of en try into force of its Protocol of Accession.  In 
response, the representative of Saudi Arabia stat ed that Saudi Arabia had no present intention to 
accede to the Agreement on Civil Aircraft. 
Trade Related Intellectual Property Regime  
134. In addition to the Memorandum on the Forei gn Trade Regime, the representative of Saudi 
Arabia provided the Working Party with a Supplem entary Memorandum on Trad e Related Intellectual 
Property Rights (WT/ACC/SAU/5).  The representativ e of Saudi Arabia provided the Working Party 
with the text of the Trademarks Regulations, Patents Law, and the Law for the Protection of 
Copyrights (L/7645/Add.1).  
135. Some members of the Working Party congratulat ed Saudi Arabia on its generally high level 
of protection of intellectual property rights.  They noted that Saudi Arabia had taken significant steps 
towards making its trade regime fully consistent with the Agreement on Trade Related Aspects of 
Intellectual Property Rights (TRIPS), but that some  problems remained.  Some members asked that 
Saudi Arabia take immediate steps to address probl ems in its intellectual property regime, and asked 
also that Saudi Arabia commit itself to full im plementation of the TRIPS Agreement without a 
transitional period.  In particular, some members of the Working Party expressed concerns in relation WT/ACC/SPEC/SAU/4/Rev.2 
Page 42  
 
to the protection of copyrights;  the duration of pate nt protection;   protection of plant varieties;  
length of time before compulsory licensing and work ing requirements were applied;  protection for 
sound recordings and audiovisual works; protection for broadcasts and satellite transmission; explicit 
protection for computer software programs; implem entation of Articles 1-21 of the Berne Convention; 
and the protection of well-known marks.   
- Copyright  
136. With reference to copyright, some members of  the Working Party considered that Saudi 
Arabia’s laws did not fully reflect its obligatio ns under the Universal Copyright Convention.  In 
addition, the provisions of the Saudi laws did not  provide protection for sound recordings.  Saudi 
Arabia had not yet joined the Berne, Paris, or Ge neva Phonograms Conventions.  Membership in such 
multilateral intellectual property agreements demo nstrated a strong commitment to protection and 
supports local enforcement.   Other apparent deficien cies included the fact that there were no laws that 
protect broadcasts and satellite transmissions, and th at the term of protection for audiovisual works 
was 25 years, not 50 years as called for in the TRIPS Ag reement.   Saudi Arabia's laws also appeared 
to lack sufficient legal penalties to deter piracy, e.g., substantial fines or prison sentences.  In 
response, the representative of Saudi Arabia stated  that Saudi Arabia's in tellectual property regime 
would be brought into full conformity with the requirements of the Agreement on TRIPS, from the 
date of Saudi Arabia's accession to the WTO.  In document WT/ACC/SAU/39, the representative of 
Saudi Arabia provided members of the Working Party with a detailed plan on the steps being taken to 
ensure full implementation of the TRIPS Agreemen t according to the Action Plan. The representative 
stated that Saudi Arabia would soon join the Bern and Paris Conventions.  
137. In response to questions from members of the Working Party, the representative of Saudi 
Arabia stated that ongoing reviews of the WTO confor mity of Saudi law had so far revealed that there 
were some areas of incompatibility that would need  to be rectified either through amendment of 
existing legislation or enactment of new laws. It would also be necessary to introduce the 
administrative machinery to ensure the enforcement of TRIPS standards.   Later, the representative of 
Saudi Arabia informed Working Party members that  Saudi Arabia had enacted a new Copyright Law, 
which was in full conformity with the provisions of the TRIPS Agreement.  The new Copyright Law 
was issued vide Council of Ministers' Decision of 9 June 2003.  Main features of the new Law were: 
(1) more explicit protection for computer software and data bases; ( 2) more specific protection to 
audio-visual works and sound recordings; ( 3) legal usage of foreign works such as translations and 
copying would be clarified according to the TRIPS Agreement; ( 4) duration of protection of all 
artistic and literary works would be provided accord ing to the requirements of the Berne Convention.  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 43 
 
 
In the area of enforcement, the amended law would provide in detail all types of infringements and 
piracies and strengthen penalties to meet the requirements of the TRIPS Agreement. 
- Patents  
138. Concerning patents, the representative of Saudi Arabia noted that in general, patentable 
subject matter in Saudi Arabia was consistent w ith the requirements of Section 5 of the TRIPS 
Agreement.  Processes (methods of manufacturing)  were patentable, and were protected from 
infringing use.  Plant varieties protection were not currently patentable, even though the TRIPS 
Agreement required the protection of plant varie ties (Article 27(3)). The representative of Saudi 
Arabia stated that the protection of plant va rieties would be provided in accordance with the 
provisions of Article 27(3)(b) of the TRIPS Agreem ent.  Patent holders in Saudi Arabia were 
accorded the rights mentioned in Article 28 of TRI PS.  A patent holder was required to make full 
industrial use of the patent in Saudi Arabia with in two years.   Although the current Patent Law 
conferred a term of protection of 15 years with the possibility of a five year extension, the representative of Saudi Arabia stated that it was fore seen that the period of protection for nationals of 
WTO Members, could be automatically granted a five  year extension after the elapse of the initial 15 
year protection period.  The representative of Saudi  Arabia confirmed that amendments of the Patent 
Law would include a term of protection of 20 years.   
139. As to compulsory licensing, the representative of  Saudi Arabia stated that the amendment of 
Saudi Arabia's Patent Law would conform national law and practise with the requirements of Article 
31 of the TRIPS Agreement.  The ongoing review of Saudi Arabian Patent Law had revealed that in 
comparison with Article 27(3) of the TRIPS Agreemen t,  the exclusion of patentability contained in 
paragraphs (a) and (b) of Article (8) was in acco rdance with Article 27 (1) of the TRIPS Agreement 
which limits the patentable inventions to those which were related to products or processes;  
paragraph (c) of Article (8) was in full complianc e with subparagraph (b) of Article 27(3) of the 
TRIPS Agreement except that paragraph (c) did not exclude “micro-organisms” from “plants and 
animals” and did not include "non-biological processes” as processes ex cluded from “biological 
processes for the production of plants and animals";  and that paragraph (d) of the Patent Law was in 
full compliance with sub-paragraph (a) of Article 27( 3) of the TRIPS Agreement.  The representative 
of Saudi Arabia informed Working Party members th at a new Saudi Patent Law had been drafted and 
was at an advanced stage in the legislative process.  He said that the draft law was in full conformity 
with the provisions of the TRIPS Agreement. 
- Trademarks WT/ACC/SPEC/SAU/4/Rev.2 
Page 44  
 
140. In response to requests for information concer ning the protection of trademarks in Saudi 
Arabia, the representative of Saudi Arabia gave a description of various provisions of the existing 
Trade Marks Law and their relationship to the resp ective provisions of the TRIPS Agreement.  In 
response to questions from Working Party members, he stated that geographical names could not be 
registered as a trademark under Saudi Arabia’s Trademarks Regulations if their use caused a 
misunderstanding as to the source of products or services, or their origin.  Since the production, sale, 
consumption and import of alcoholic  beverages were prohibited in the Kingdom for religious reasons, 
geographical indications of origin of wines and sp irits were not protected in Saudi Arabia.  Some 
members of the Working Party noted that the period of protection for a trademark when the 
requirement of use was not fulfilled was five years, two years more than the period required by Article 19 of the Agreement on TRIPS.  These memb ers noted also that the initial and renewable 
period of period of protection for trademarks where the requirement of use was fulfilled was ten years, 
three years more than the period required by Ar ticle 18 of the Agreement on TRIPS.  Later, the 
representative of Saudi Arabia stated that a ne w WTO-consistent Trade Marks Law, which also 
contained provisions on protection of Geographical Indications, was issued, vide Council of Ministers' 
Decision No. 140 of 5 August 2002.  
- Industrial designs 
141. In response to requests for information concer ning the protection available for industrial 
designs, the representative of Saudi Arabia responded th at industrial designs would be protected by a 
Proposed Industrial Designs Law which would be implemented by The King Abdulaziz City for 
Science and Technology (KACST).   
- Layout designs 
142. In response to requests for information concerni ng the protection available for layout designs, 
the representative of Saudi Arabia noted that Layout  Designs of Integrated Ci rcuits were not covered 
by current laws.  This issue was under review and the protection provided would be consistent with 
WTO obligations.  
- Undisclosed information 
143. Some members of the Working Party requested information on the protection available for 
undisclosed information.  The representative of Sa udi Arabia stated that although undisclosed 
information was currently protected by the Compan ies Law, Labour Law and Banks Control Law, 
work was underway to prepare an Unfair Competition Law that would deal comprehensively with this  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 45 
 
 
issue.  That law would be implemented by the Mi nistry of Commerce & Industry.  He added that 
anti-competitive practices would be covered by the law as well. 
- Enforcement  
144. Some members of the Working Party noted the st eps being taken by Saudi Arabia to eliminate 
some problems in the area of enforcement, in partic ular the piracy of intellectual property.  It was 
clear that much of the necessary legislation was in place, but that was experi encing difficulty in fully 
implementing and enforcing the new laws.  These members of the Working Party urged Saudi Arabia 
to work towards full conformity with the Agre ement on TRIPS from the date of Saudi Arabia's 
accession to the WTO.  In response to comments co ncerning the enforcement of border measures, the 
representative of Saudi Arabia stated that border m easures in Saudi Arabia were broadly consistent 
with the provisions of the TRIPS Agreement which authorized the judicial or administrative bodies to 
issue a provisional seizure decision.  The legal gr ound to make a detention order was contained in 
Articles 67 and  132(3) of the Implementing Rules of the Saudi Customs Law.  Moreover, Customs 
authorities, in coordination with the Ministry  of Commerce & Industry and the Ministry of 
Information, seize consignments infringing intellect ual property rights, according to the applicable 
laws in Saudi Arabia.   
145. The representative of Saudi Arabia stated that it was the intention of Saudi Arabia to fully 
comply with the requirements of the Agreement on TRIPS as soon as possible.  Much of the required 
legislation was already in place.  In addition, Sh ariah provided significant protection of intellectual 
property rights.  Saudi Arabia was working towa rds codification of all laws required by the 
agreements on TRIPS. 
146. In response to requests from members of the Working Party, the representative of Saudi 
Arabia stated that the Action Plan for the Impl ementation of the TRIPS Agreement presented in 
document WT/ACC/SAU/43, was being implemented.  Some TRIPS laws, for example, Trade Marks 
Law, including Geographical Indications, Copyright  Law and the GCC Patent Law (applicable to 
Saudi Arabia also) had already been enacted, while  other IP laws, including the Saudi Patent Law, 
were at an advanced stage in the legi slative process and would soon be enacted. 
147. The representative of Saudi Arabia stated th at Saudi Arabia woul d apply fully all the 
provisions of the Agreement on Trade-Related Aspect s of Intellectual Property Rights from the date 
of accession to the WTO, without recourse to any tr ansition period.  The Working Party took note of 
this commitment. 
Policies Affecting Trade in Services  WT/ACC/SPEC/SAU/4/Rev.2 
Page 46  
 
148. Following the completion of bilateral negotia tions with WTO Members, the schedule of 
specific commitments on services of Saudi Arabia will be reproduced in Part II of the Annex to the 
Protocol of Accession of Saudi Arabia.  
149. In response to requests from some members of the Working Party, the representative of Saudi 
Arabia confirmed that in the event that Saudi Ar abia promulgated an insurance legislation allowing 
the supply of such services in the Kingdom, it would commit to ensure that foreign insurance service 
providers would not be treated less favourably than fo reign providers of other financial services.  The 
Working Party took note of this commitment. 
Government Procurement
 
150. Some members of the Working Party requested that Saudi Arabia undertake to accede to the 
Agreement on Government Procurement upon accession to the WTO.  The representative of Saudi 
Arabia replied that the Agreement on Governme nt Procurement was a Plurilateral Agreement, 
adherence to which was not a precondition for accession to the WTO.   
151. Members observed that government procurem ent accounted for a major part of Saudi 
Arabia’s imports, and that Saudi participation in  the Agreement on Government Procurement was an 
important issue.  The benefits of joining the GPA included lower procurement costs and greater 
transparency.  In particular, the transparency provi sions of the Agreement could be useful to Saudi 
Arabia in ensuring the least cost/best quality out come for procurement in covered agencies.   
152. The representative of Saudi Arabia stated that, upon accession, his Government would seek 
observer status in the Government Procuremen t Committee and would follow the work of the 
Working Group on Transparency in Government Procurement Procedures.  The Working Party took 
note of this commitment. 
Transparency  
153. Some members of the Working Party request ed information on whether legislation was 
required to be published in any official journal prio r to its entering into force.  In response, the 
representative of Saudi Arabia stated that Article 71 of the Basic Law of Government provided that 
any law was required to be published in the Official  Gazette before it could enter into effect.  He 
further added that Article 47 of the Board of Grievances Law required the publication of judicial 
decisions. 
154. The representative of Saudi Arabia said that from the date of accession all laws and 
regulations and decrees,  judicial decisions and admi nistrative rulings of genera l application related to  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 47 
 
 
trade would be published in a manner that complied with all requirements of the WTO Agreements, 
including Article X of the GATT 1994. 
Notifications  
155. The representative of Saudi Arabia said that upon entry into force of the Protocol of 
Accession, Saudi Arabia would submit all initial not ifications required by any Agreement constituting 
part of the WTO Agreements.  Any regulations s ubsequently enacted by Saudi Arabia which gave 
effect to the laws enacted to implement any Ag reement constituting part of the WTO Agreements 
would also conform to the requirements of that Ag reement.  The Working Party took note of these 
commitments. 
Trade Agreements  
156. In response to questions the representative of Saudi Arabia submitted th e text of the Unified 
Economic Agreement signed on 11 November 1981 under the Gulf C ooperation Council.  He said that 
the free-trade agreement met all the requireme nts of Article XXIV of GATT Agreement 1994, 
including in particular paragraphs 5 (b) and 8 (b) thereof.  The free-trade area had eliminated duties 
and other restrictive regulations of commerce and al so all the trade between the members of the Gulf 
Cooperation Council in the products originating in the member stat es and work was proceeding to 
further harmonise trade and commercial policies.   He also submitted the programme for the 
implementation of the Agreement Facilitating and Developing Trade Exchange among Arab States to 
create a Free-trade Area and the Agreement F acilitating and Developi ng Trade Exchanges among 
Arab States.  Saudi Arabia would notify these agreements upon becoming a WTO Member. 
157. The representative of Saudi Arabia stated that  his Government would observe the provisions 
of the WTO including Article XXIV of the GAT T 1994 and Article V of the GATS in its trade 
agreements, and would ensure that the provisi ons of these WTO Agreements for notification, 
consultation and other requirement s concerning free trade areas and customs unions of which Saudi 
Arabia was a member were met from the date of accession.  He confirmed that Saudi Arabia would, upon accession, submit notifications and copies of the GCC Customs Union and the Arab League Free Trade Area for review by the Committee on Re gional Trade Agreements (CRTA).  The Working 
Party took note of these commitments. 
Conclusions
 
158. [The Working Party took note of the explanations  and statements of Saudi Arabia concerning 
its foreign trade regime, as reflected in this repor t.  The Working Party took note of the assurances 
given by Saudi Arabia in relation to certain specifi c matters which are reproduced in paragraphs [...] WT/ACC/SPEC/SAU/4/Rev.2 
Page 48  
 
of this report.  The Working Party took note of th e commitments given by Saudi Arabia in relation to 
certain specific matters which are reproduced in para graphs [… ] of this report.  The Working Party 
took note that these commitments had been incorporated in paragraph 2 of the Draft Protocol of 
Accession of Saudi Arabia to the WTO .] 
159. [Having carried out the examination of the fore ign trade regime of Saudi Arabia and in the 
light of the explanations, commitments and concessi ons made by the representative of Saudi Arabia, 
the Working Party reached the conclusion that Saud i Arabia be invited to accede to the Marrakesh 
Agreement Establishing the WTO under the provisions of  Article XII.  For this purpose, the Working 
Party has prepared the draft Decision and Protocol  of Accession reproduced in the Appendix to this 
report, and takes note of Saudi Arabia's Schedul e of Concessions and Commitments on Goods [to be 
prepared] and its Schedule of Specific Commitments on Services [to be prepared] that are annexed to 
the Protocol.  It is proposed that these texts be  adopted by the General Council when it adopts the 
report.  When the Decision is adopted, the Protoc ol of Accession would be open for acceptance by 
Saudi Arabia which would become a Member thir ty days after it accepts the said Protocol.  The 
Working Party agreed, therefore, that it had comp leted its work concerning the negotiations for the 
accession of Saudi Arabia to the Marrak esh Agreement Establishing the WTO.] 
[TO BE COMPLETED.]  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 49 
 
 
APPENDIX 
 
 
 
[ DRAFT DECISION 
 
ACCESSION OF THE KINGDOM OF SAUDI ARABIA 
 
Decision of […]  
The General Council, 
 Having regard to  paragraph 2 of Article XII and paragr aph 1 of Article IX of the Marrakesh 
Agreement Establishing the World Trade Organizati on (the "WTO Agreement"), and the Decision-
Making Procedures under Articles IX and XII of the WTO Agreement agreed by the General Council 
(WT/L/93), 
 Conducting  the functions of the General Council in th e interval between meetings pursuant to 
paragraph 2 of Article IV of the WTO Agreement, 
 Taking note of the application of the Kingdom of Saudi Arabia for accession to WTO 
Agreement dated "date", 
 
 Noting  the results of the negotiations directed toward the establishment of the terms of 
accession of the Kingdom of Saudi Arabia to the WTO Agreement and having pr epared a Protocol on 
the Accession of the Kingdom of Saudi Arabia, 
  Decides  as follows: 
 
1. The Kingdom of Saudi Arabia may accede to the WTO Agreement on the terms and 
conditions set out in the Protoc ol annexed to this Decision. 
 
_______________ 
 
 WT/ACC/SPEC/SAU/4/Rev.2 
Page 50  
 
DRAFT PROTOCOL  
 
ON THE ACCESSION OF THE KINGDOM OF SAUDI ARABIA 
 
Preamble
 
 
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the approval 
of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement Establishing the World Trade Organiza tion (hereinafter referred to as the "WTO Agreement"), and the 
Kingdom of Saudi Arabia,  
 
 Taking note
 of the Report of the Working Party on the Accession of the Kingdom of Saudi 
Arabia to the WTO Agreement reproduced in doc ument WT/ACC/SAU[…], dated […] (hereinafter 
referred to as the "Working Party Report"),  
 Having regard
 to the results of the negotiations on the accession of the Kingdom of Saudi 
Arabia to the WTO Agreement,    Agree
 as follows: 
 
PART I -  GENERAL 
 
1. Upon entry into force of this Protocol pursu ant to paragraph 8, the Kingdom of Saudi Arabia 
accedes to the WTO Agreement pursuant to Article XII of that Agreement and thereby becomes a Member of the WTO.   
2. The WTO Agreement to which the Kingdom of  Saudi Arabia accedes shall be the WTO 
Agreement, including the Explanatory Notes to that Agreement, as rectified,  amended or otherwise 
modified by such legal inst ruments as may have entered into force be fore the date of entry into force of 
this Protocol.  This Protocol, which shall include th e commitments referred to in paragraph […] of the 
Working Party Report, shall be an integral part of the WTO Agreement.  
3. Except as otherwise provided for in para graph […] of the Working Party Report, those 
obligations in the Multilateral Trade Agreements annexed to the WTO Agreement that are to be 
implemented over a period of time starting with the entry into force of that Agreement shall be 
implemented by the Kingdom of Saudi Arabia as if it had accepted th at Agreement on the date of its 
entry into force. 
 
4. The Kingdom of Saudi Arabia may maintain a measure inconsistent with paragraph 1 of 
Article II of the GATS provided that such a measure was recorded in the list of Article II Exemptions annexed to this Protocol and meets the conditions of the Annex to the GATS on Article II Exemptions. 
 
PART II - SCHEDULES 
 
5. The Schedules reproduced in Annex I to th is Protocol shall become the Schedule of 
Concessions and Commitm ents annexed to the General Agr eement on Tariffs and Trade 1994 
(hereinafter referred to as the "GATT 1994") and the Schedule of Specific Co mmitments annexed to the 
General Agreement on Trade in Services (hereinafter referred to as "GATS") relating to the Kingdom of 
Saudi Arabia.  The staging of the concessions an d commitments listed in the Schedules shall be 
implemented as specified in the releva nt parts of the respective Schedules. 
 6. For the purpose of the reference in paragraph 6(a)  of Article II of the GATT 1994 to the date of 
that Agreement, the applicable date in respect of the Schedules of Conc essions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol.  WT/ACC/SPEC/SAU/4/Rev.2 
 Page 51 
 
 
 
PART III - FINAL PROVISIONS 
 7. This Protocol shall be open for acceptance, by signature or otherwise, by the Kingdom of Saudi 
Arabia until […]. 
 
8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall have been accepted by the Kingdom of Saudi Arabia.   9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-General 
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance by 
the Kingdom of Saudi Arabia thereto pursuant to pa ragraph 9 to each Member of the WTO and to the 
Kingdom of Saudi Arabia.     This Protocol shall be registered in accordance with the provisions of Ar ticle 102 of the Charter 
of the United Nations.   
  Done at [place] this [date of month in full] day of [month and year in full] in a single copy in the 
English, French and Spanish languages, each te xt being authentic, except that a Schedule 
annexed hereto may specify that it is au thentic in only one of these languages. 
 
_______________ 
 
 WT/ACC/SPEC/SAU/4/Rev.2 
Page 52  
 
ANNEX I 
    
 
  
  
SCHEDULE […] – THE KINGDOM OF SAUDI ARABIA 
 
 
Authentic only in the … language. 
 
(Circulated in document WT/ACC/SAU/[…]/Add.1) 
 
  
_______________ 
  
  
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES 
LIST OF ARTICLE II EXEMPTIONS 
 
 
Authentic only in the … language. 
 
(Circulated in document WT/ACC/SAU/[…]/Add.2) ] 
 
 
  
__________