RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/SPEC/JOR/2
3 July 1998
(98-2634)
Working Party on the
Accession of Jordan
ACCESSION OF JORDAN
Domestic Support and Export Subsidies
The Ministry of Industry and Trade of Jordan has submitted the information on domestic
support and export subsidies.WT/ACC/SPEC/JOR/2
Page 2Supporting Table DS:1
DOMESTIC SUPPORT:  JORDAN
REPORTING PERIOD: Average of calendar years 1994-96
Measures exempt from the reduction commitment--"Green Box"
Measures type Name & Description of
measure with reference to
criteria in Annex 2 of the
Agreement on AgricultureMonetary value of
measure in year in
question (JD)Data sources
12 3 4
Total value of green box policy
expenditures77,081,499 Budgets of the Ministry of Agriculture and its subsidiary agencies; to
Ministry of Supply, Ministry of Water and Irrigation, Ministry of
Finance, Ministry of Public Works, Ministry of Industry and Trade,
Amman Municipality, Royal Statistical Society, Ministry of Health,
Agricultural Marketing and Processing Company of Jordan, andAgricultural Marketing Organization.
General services 12,814,833
  Research 2,121,611
  Inspection Services 1,267,733
  Marketing and Promotion 395,333
  Pest and Disease Control 765,484
  Extension and Advisory Services 257,338
  Infrastructure 8,007,333
    Agricultural Roads 192,667
    Dams 900,667
    Irrigation Systems 857,667
    Rural Electricity 6,056,333
Public stockholding for food security
purposes0
Domestic food aid 64,266,667
Note:  US$1 = JD 0.71 in 1997 .WT/ACC/SPEC/JOR/2
Page 3Supporting Table DS:2
DOMESTIC SUPPORT:  JORDAN
REPORTING PERIOD:  Average of calendar years 1994-96
Measures exempt from the reduction commitment-Special and Differential Treatment - "Development Programmes"
Measures type Name and description of measure Monetary value of measure in year in
question (JD)Data sources
1234
Investment subsidies generally
available to agricultureValue of interest rate subsidy on
exempt developmental loans made by
the ACC to agricultural producers (as
per Part IV, Article 6, paragraph 2).716733.8655
Input subsidies available to low-
income or resource-poor producers --
Note:  US$1 = JD 0.71 in 1997.WT/ACC/SPEC/JOR/2
Page 4Supporting Table DS:3
DOMESTIC SUPPORT:  JORDAN
REPORTING PERIOD:  Calendar years 1994-1997
Measures exempt from the reduction commitment – Direct Payments  under Production-Limiting Programmes – “Exempt Direct Payments”
NOTE:  NO SUCH PROGRAMS IN JORDANWT/ACC/SPEC/JOR/2
Page 5Supporting Table DS:4
DOMESTIC SUPPORT:  JORDAN
REPORTING PERIOD:  Average of calendar years 1994-96
Calculation of the total Aggregate Measurement of Support
US$=JD(0.71)
Description of basic products and non-
product specific AMSProduct-specific AMS (from Supporting Tables
DS:5 to DS:7 below)
(JD)Product-specific measurement of support (from
Supporting Tables DS:8  below)
(JD)Current Total AMS (JD)
12 3 4
Wheat 221201.8499 0 221201.8499
Barley 531601.7791 0 531601.7791
Lentils 8033.212 251 0 8033.212251
Chickpeas 56710.36447 0 56710.36447
Livestock feed 16574035.48 0 16574035.48
Non-product specific support 15417731.4
  Capital 322995.7335
  Water 94735.66667
  Income tax exclusion 15000000
Total AMS before exclusions 32809314.09
Value of production, all agriculture 544112695.9
AMS share of value of agricultural
production (per cent)6.029874755
Exclusions under the 'de minimus' rule:
Value of production (JD) AMS/Value of production
  Wheat 8090475.565 0.027341019 -221201.8499
  Barley 3785769.947 0.140421047 0
  Lentils 648057.0407 0.012395841 -8033.212251
  Chickpeas 496777.1891 0.114156539 0
  Livestock feed 330763920.3 0.050108354 -16574035.48
  Non-product specific support 0.028335548 -15417731.4
  Total AMS after exclusions 588312.1436
  AMS/Value of production 0.001081232WT/ACC/SPEC/JOR/2
Page 712 3 4 5 6 7 8 9
1990 339.9 383.1 947 0 -40,886
1991 333.4 381.0 1053 0 -50,121
1992 341.3 347.6 1638 0 -10,193
1993 350.0 297.3 2354 0 124,041
1994 317.1 313.8 795 0 2,594
1995 0.0 499.7 0 0 0
1996 444.2 376.8 2461 0 165,959
1997 0.0 312.6 0 0 0
1998 0.0 n/a 0 0 0
1999 0.0 n/a 0 0 0
2000 0.0 n/a 0 0 0Chickpeas
Avg. 1994-96Price support
procurement
253.8 397 1,085 56,184Ministry of Agriculture
Department
of Statistics Ministry of
Supply
Note:  US$1 = JD 0.71 in 1997.WT/ACC/SPEC/JOR/2
Page 8Documentation for Supporting Table DS:5
Wheat
  Applied administered price Average price paid by MOS to farmer s for consumption wheat; computed as total amount paid to farmer s
(i.e., excludes MOS domestic handling costs), divided by  the total amount of wheat purchased by MOS (all MOS
supplied data).
  External reference price Average total price paid by MOS for im ports of wheat, adjusted for quality differential (i.e., from h ard winter
wheat to durum equivalent);  computed as total cost of imports plus cost of moving wheat from  Aqaba to silos in
Amman divided by total MOS imports of wheat times 1.125 where 12.5% is the estimated price differential
between hard winter and durum wheat in US and Ca nadian markets (MOS data + authors' estimate).
  Eligible production Quantity of consumption wheat actua lly purchased by MOS from farmers (all MOS supplied data).
Barley
  Applied administered price Average price paid by MOS to farmer s for barley;  computed as total amount paid to farmers divided by the total
amount of barley purchased by MOS (all MOS supplied data).
  External reference price Average price paid by MOS for imports of barley;  computed as total cost of imports plus cost of movi ng barley
from Aqaba to silos in Amman divided by to tal MOS imports of barley (all MOS data).
  Eligible production Quantity of barley actually pur chased by MOS from farmers (all MOS supplied data).
Lentils
  Applied administered price Average price paid by MOS to farmer s for lentils;  computed as total amount paid to farmers divided  by the total
amount of lentils purchased (for consumption) by MOS (all MOS supplied data).
  External reference price Average import unit value of lentils;  computed as DOS value of imports divided by DOS import volume (all
DOS data).
  Eligible production Quantity of lentils actual ly purchased by MOS (all MOS supplied data).
Chickpeas
  Applied administered price Average price paid by MOS to farmer s for chickpeas;  computed as total amount paid to farmers divid ed by the
total amount of chickpeas purchased (for cons umption) by MOS (all MOS supplied data).
  External reference price Average import unit value of chickpeas;  computed as DOS value of imports divided by DOS import volum e (all
DOS data).
  Eligible production Quantity of chickpeas actu ally purchased by MOS (all MOS supplied data).WT/ACC/SPEC/JOR/2
Page 9Supporting Table DS:6
DOMESTIC SUPPORT:  JORDAN
REPORTING PERIOD:  Calendar years 1994-1997
Product-Specific Aggregate Measurements of  Support:  Non-Exempt Direct Payments
NOTE:  NO SUCH PROGRAMS IN JORDANWT/ACC/SPEC/JOR/2
Page 10Supporting Table DS: 7
DOMESTIC SUPPORT:  JORDAN
REPORTING PERIOD:  Calendar Years 1994-1997
Product-Specific Equivalent Measurements of Support:  Othe r Product Specific Support and Total Product-Specific AMS
Product Year or period Measure
type(s)Product
acquisition cost
(JD/ton)Product  sale
price (JD/ton)Eligible
quantity
(metric tons)Associated
fees/leviesTotal other
product specific
support     (JD)Market price
support
(Supporting
Table DS:5) (JD)Non-exempt direct
payments (Support
Table DS:6)Total AMS
(JD)Data sources
123 4 5 678 9 1 0 1 1 1 2
(4-5)*6-7 (7+8+9-10)
1994 Seed sales 201 156 3,400 154,357 788,796 n/a 943,153
1995 230 172 3,100 180,560 46,228 n/a 226,788
1996 254 195 2,500 146,839 -653,174 n/a -506,335Wheat
Avg. 1994-96 228 174 3,000 160,585 60,617 221,202Ministry of Supply
Jordan Cooperative
Corporation
1994 Seed sales 151 116 1,065 37,543 287,078 n/a 324,621
1995 175 132 119 5,100 956,991 n/a 962,091
1996 212 132 516 41,065 267,029 n/a 308,093Barley
Avg. 1994-96 179 127 567 27,903 503,699 531,602Ministry of Supply
Jordan Cooperative
Corporation
1994 Seed sales 345 316 35 1,012 0 n/a 1,012
1995 387 332 13 719 -23,987 n/a -23,268
1996 440 332 47 5,062 41,294 n/a 46,356Lentils
Avg. 1994-96 391 327 32 2,264 5,769 8,033Ministry of Supply
Jordan Cooperative
Corporation
1994 Seed sales 767 322 1 445 2,594 n/a 3,039
1995 499 332 5 833 0 n/a 833
1996 532 382 2 300 165,959 n/a 166,259Chickpeas
Avg. 1994-96 599 345 3 526 56,184 56,710Ministry of Supply
Jordan Cooperative
Corporation
1994 Govern-
ment feed
sales28,002,082 n/a n/a 28,002,082
1995 -4,246,309 n/a n/a -4,246,309
1996 25,966,333 n/a n/a 25,966,333Livestock
Avg. 1994-96 16,574,035 16,574,035Ministry of Supply
Jordan Cooperative
Corporation
Note:  US$1 = JD 0.71 in 1997;  "n/a" means not applicable .WT/ACC/SPEC/JOR/2
Page 11Documentation for Supporting Table DS:7
All commodities, seed sales
Other product specific
supportValue of payments to seed producers in excess of sale price fo r seeds; computed as difference between total unit acquisition co st and sale price,
multiplied by the quantity subject to subsidy.
Applied administered
priceSale price of seed in JCC outlets to farmers (JCC data).
Reference price Average total per unit cost of MOS and JCC;  total amount paid to farmers for seed plus costs of moving, fumigat ing, and preparing seed for sale,
divided by the total quantity of seeds purchased by MOS and JCC  (MOS and JCC data).
Quantity subject to
subsidyQuantity of seeds sold to producers in the calendar year (JCC data).
Livestock feed subsidy
Other product specific
supportTotal cost to MOS of procuring barley, corn, and wheat bran less revenue from sales of barley, corn, and wheat bran to farmers and feed mills.
Barley acquisition cost Weighted average of the unit barley procur ement cost and unit barley import cost.  Each cost is weighted  by the total procurement and total imports,
respectively (MOS data and authors' calculations).
Barley full procurement
costTotal cost to MOS of procuring barley, including amount paid to farmers for barley for consumption and costs of moving barley d omestically to
distribution centers (MOS data).
Barley full import cost Total cost to MOS of importing barley, including cost to Aqaba plus costs to transport grain to silos in  Amman (MOS data).
Barley sale price Announced sale price for barley for fodder.  Calendar year average computed as a simple average of monthly pri ces (MOS data).
Eligible product Total quantity of barley sold to livestock producers and feed mills by MOS in the calendar year (MOS data).
Corn acquisition cost Total cost to MOS of importing corn, including cost to Aqaba plus costs to transport grain to silos in Amm an, divided by MOS imports of corn (MOS
data).
Corn sale price Announced sale price for corn for fodder.  Calendar year average computed as a simple average of monthly prices (MOS data).
Eligible product Total quantity of corn sold to livestock producers and feed mills by MOS in the calendar year (MOS data).
Wheat bran acquisition
costWeighted average of the unit wheat bran procurement cost and unit wheat bran import cost.  Each co st is weighted by the total p rocurement and total
imports, respectively (MOS data and authors' calculations).
Wheat bran full
procurement costTotal cost to MOS of procuring wheat bran.  Computed as the per centage yield of wheat bran from wheat milled for flour times th e full acquisition
cost of wheat for consumption (including co sts of moving wheat domestically) (MOS data).
Wheat bran full import
costTotal cost to MOS of importing wheat bran, including cost to Aqaba plus costs to transport grain to silos in Amman (MOS data).
Wheat bran sale price Announced sale price for wheat bran for fodder.  Calendar year average computed as a simple average of mon thly prices (MOS data).
Eligible product Total quantity of wheat bran sold to livestock producers and feed mills by MOS in the calendar year (MOS data).WT/ACC/SPEC/JOR/2
Page 12Supporting Table DS:8
DOMESTIC SUPPORT:  JORDAN
REPORTING PERIOD:  Calendar years 1994-1997
Product-Specific Equivalent Measurements of Support
NOTE:  NO SUCH MEASURES IN JORDANWT/ACC/SPEC/JOR/2
Page 13Supporting Table DS:9
DOMESTIC SUPPORT:  JORDAN
REPORTING PERIOD:  Calendar Years 1990-1997
Non-Product-Specific AMS
Measure type(s) Year or period Non-product-specific
budgetary outlaysOther non-product-
specific support (JD)Associated
fees/leviesTotal non-product
specific- support (JD)Data sources
12 3 4 5 6 7
(3+4-5)
1990 2,904,949 2,904,949
1991 3,232,915 3,232,915
1992 4,006,813 4,006,813
1993 669,524 669,524
1994 143,977 143,977
1995 78,093 78,093
1996 62,137 62,137Water subsidy in the Jordan
Valley
Avg. 1994-96 94,736 94,736Ministry of Water and Irrigation/ Jordan
Valley Authority
1990 n/a n/a
1991 n/a n/a
1992 n/a n/a
1993 n/a n/a
1994 240,173 240,173
1995 312,969 312,969
1996 415,845 415,845Interest rate subsidy on
operational loans and non-
exempt "developmental
loans"
Avg. 1994-96 322,996 322,996Agricultural Credit Corporation / Jordan
Cooperative Corporation / Central Bank
of Jordan /  Industrial Development
Bank of Jordan
1990 n/a n/a
1991 n/a n/a
1992 n/a n/a
1993 n/a n/a
1994 15,000,000 15,000,000
1995 15,000,000 15,000,000
1996 15,000,000 15,000,000Income tax exclusion for
agricultural products
Avg. 1994-96 15,000,000 15,000,000Income tax law / Department of
Statistics / Ministry of Agriculture
Note:  US$1 = JD 0.71 in 1997;  "n/a" means not available .WT/ACC/SPEC/JOR/2
Page 14Documentation for Supporting Table DS:9
Water subsidy in Jordan Valley Difference between the average operating and maintenance unit cost of water to agriculture and the average price paid by agricu ltural users, times water used by
agriculture.
Average price paid for water Total receipts by JWA for water from agricultural users (JWA).
Average operating and maintenance cost for agricultural water Total costs of supplying water to all users times share of water u sed by agriculture, divided by total water used by agriculture (JWA data).
Eligible quantity Cubic meters of water sold for agricultural purposes (JWA data).
Interest rate subsidy Sum of operational loans and non-exempt developmental loans subsidies plus value of forgiven loans by JCC.
Operational loans subsidy Value of operational loans times the difference between the ACC and commercial bank interest rates for  comparable loan terms.
Operational loans Value of operational loans defined as total seasonal and short-term (up to 24 months) loans made by ACC to any  size holder (ACC data).
Interest rate on operational loans from ACC Weighted-average of interest rate on seasonal and short term loans;  weighted by val ue of loan (ACC data).
Interest rate on operational loans from commercial banks Weighted -average of interest rates on overdrafts and loans and advances  made by commercial banks;  weighted by share of each type of loan in commercial bank
loan total (Central Bank of Jordan).
Non-exempt developmental loans subsidy Value of non-exempt developmental loans times the difference between the ACC and Industri al Development Bank interest rate for loans.
Non-exempt development loans Value of developmental (medium and long-term loans) made by ACC for rural housing.  Note that data also include loans for farm buildings which is exempt but
are unable to separate the two by value of loan (ACC data).
Interest rate on non-exempt developmental loans from ACC Weighted-average of interest rate on developmental (medium and long ter m loans) given by ACC;  weighted by value of loan (ACC data).
Interest rate on developmental loans from commercial banks Interest rate plus commission fees for medium and long-term loans mad e by the Industrial Development Bank of Jordan (IDB data).
Forgiven loans Value of principal and interest forgiven annually by JCC (JCC data).Income tax exclusion
Estimated value of revenue foregone by government due to income tax exclusion computed as:
Jordan Valley farms average income (JD/farm) 15,000 Estimate
Eastern highlands average income (JD/farm) 12,000 Estimate
Average number of persons in farm household (persons) 6 Estimate based on preliminary 1997 Census data
Income exclusions (JD/farm) 3,994 Tax Law
Net taxable income, Jordan Valley farms (JD/farm) 11,006 Calculated
Number of Jordan Valley farms (farms) 4,000 Estimate based on preliminary 1997 Census data
Average tax revenue foregone from Jordan Valley farms (JD) 1,501 Tax Law
Net taxable income, eastern highlands (JD/farm) 8,006 Calculated
Number of eastern highlands farms (farms) 10,000 Estimate based on preliminary 1997 Census data
Average tax revenue foregone from eastern highlands farms (JD) 901 Tax Law
Total value of income tax foregone (JD) 15,016,748 Calculated
Notes: 1. Farmers with holdings of less than 30 dunum are assumed to earn less than the average excludable income.
2. Farmers with holdings of up to 200-300 dunum in the western highlands and plains are assumed to earn less than the average e xcludable income.WT/ACC/SPEC/JOR/2
Page 15Supporting Table ES:1
EXPORT SUBSIDIES:  JORDAN
REPORTING PERIOD:  Calendar years 1994-1997
Export Subsidies:  Outlay and Quantity
NOTE:  NO SUCH PROGRAMS IN JORDAN
__________