RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/SAU/1/Rev.3 
17 September 1998 
 (98-3542) 
Working Party on the Accession  
of the Kingdom of Saudi Arabia Original:   English 
 
 
  
ACCESSION OF THE KINGDOM OF SAUDI ARABIA 
 
Communication from the Kingdom of Saudi Arabia
 
 
Domestic Support and Export Subsidies 
 
Revision  
 
 
 The Permanent Mission of the Kingdom of Saudi  Arabia has submitted revised information 
on domestic support and export subsidies in agricultu re (document WT/ACC/4) and supporting tables, 
which are reproduced hereunder.  
 WT/ACC/SPEC/SAU/1/Rev.3 
Page 2 Supporting Table DS:1 
DOMESTIC SUPPORT: 
REPORTING PERIOD:  calendar  years 1993-1995 
Total Aggregate Measurement of Support (AMS) 
(From attached supporting tables) 
Million US$ *
Year Wheat Barley Livestock feed Poultry feed Non-product-
specific Total AMS ** Agri-domestic 
product Total AMS 
(%) 
1993 1,056.05 159.38 320.38 56.43 1,174.78 2,767.02 8,059.73  
1994 902.93 285.89 454.80 36.93 1,296.90 2,977.46 8,506.67  
1995 319.46 60.11 581.27 30.69 692.14 1,683.67 8,877.33  
AVERAGE 759.48 168.46 452.15 41.35 1,054.61 2,476.05 8,481.24 29.19 
*All related SRls. figures have been translated to US$ at the exchange rate of US$1 = SRls. 3.75. 
** Support of dates and palm trees is not included (de minimis) 
Sources : 1.  Saudi Arabian Monetary Agency 
 2.  Ministry of Agriculture and Water  3.  Ministry of Planning 
 4.  Saudi Arabian Agricultural Bank 
 5.  Grain Silos and Flour Mills Organization 
Note
: The basis of calculation is explained the attached methodological note  
  WT/ACC/SPEC/SAU/1/Rev.3
 Page 3Supporting Table DS:1 
DOMESTIC SUPPORT: 
REPORTING PERIOD:  calendar  years 1993-1995 
Measures exempted from the reduction commitment - "Green Box" 
Million US$
Measure type Name and description of measure with reference to criteria 
annex 2 of the Agreement on Agriculture Monetary value of 
measure 
in year in question Data sources 
1 2 3 4 
(a) General  Services:       
 Research  
    
1993 
1994 
1995 
 
Average 
 Agricultural Research Stations, plant tissue cultures laboratory, 
operation and maintenance, regi onal laboratory, Agricultural 
Research Centers and Distance Sensors Centers. 13.678 
7.276 
5.934 
_____ 
8.963 Ministry of Agriculture 
& Water 
 Pest and disease control:     
1993 
1994 1995 
 
Average Securance of veterinary, vaccine production, veterinary 
laboratories, air spray pest and disease control and veterinary services 10.623 
18.156 
9.60 
______ 
12.793  
 Training
:    
1993 
1994 1995 
 
Average Saudi-American cooperations, Saudi-Chinese cooperations, 
F.A.O. Agreement and veterinary training centers.  8.259 
8.317 6.345 
_____ 
7.640   
 WT/ACC/SPEC/SAU/1/Rev.3 
Page 4 Million US$
1 2 3 4 
 Extension : 
1993 
1994 1995 
 
Average  
Agricultural extension expenses, programs of nurseries and 
extension and development of  honey bees.   
3.635 
0.244 0.571 
_____ 
1.483  
 Inspection Services :    
1993 
1994 1995 
 
Average Operation of stations of sorting and purification of seeds and 
establishment and equipping of veterinary quarantines. 5.101 
1.301 
NA 
_____ 
  
 Infrastructural Services
:    
1993 
1994 1995 
 
Average Construction of dams, maintena nce of dams, irrigation and 
drainage systems, prevention of moving sand and planting and development of forests. 25.644 
20.780 
NA 
______ 
  
General Services Total
    
  1993  66.940  
  1994 
  1995 
  56.074 
NA 
______  
Average      
  WT/ACC/SPEC/SAU/1/Rev.3
 Page 5Million US$
1 2 3 4 
(b)   Public stockholding for: 
 food security purposes:* 
  1993 
  1994   1995 
 
Average  
 
GSFMO, among other things, fulfils a public stockholding role 
for food security purposes by managing and controlling the storage and distribution of grains  
 
15.403 16.347 18.521 
--------- 
16.757  
 
GSFMO 
 (c) to (l)  
  
NIL  
NIL 
 
                                                      
*This meets the criteria of footnote to paragraph 3 of Annex 2 of the Agreement on Agriculture   
 WT/ACC/SPEC/SAU/1/Rev.3 
Page 6 Supporting Table DS:2 
 
DOMESTIC SUPPORT: 
REPORTING PERIOD:  calendar  years 1993-1995 
Measures exempted  from the reduction commitment - Sp ecial and Differential Treatment - Development Programmes 
Million US$
Measure type Name and description of measure 
with reference to criteria annex 2 of 
the Agreement on Agriculture Monetary value of measure 
in year in question Data source 
1 2 3 4 
    
    
(a) to (c)        NIL 
    
 
 
  
  WT/ACC/SPEC/SAU/1/Rev.3
 Page 7Supporting Table DS:3 
DOMESTIC SUPPORT: 
 
REPORTING PERIOD:  calendar  years 1993-1995 
Measures exempted from the reduction comm itment- Direct Payments under Production - Li miting Programmes -"Exempt Direct Payment s" 
     Million US$
Measure type Name and description of 
measure with reference to 
criteria annex 2 of the 
Agreement on Agriculture Monetary value of measure 
in year in question Data sources 
1 2 3 4 
 
  
(a) to (c)         NIL 
    
 
 
  
 WT/ACC/SPEC/SAU/1/Rev.3 
Page 8 Supporting Table DS:4 
DOMESTIC SUPPORT: 
REPORTING PERIOD:  calendar years 1993-1995 
Calculation of the Total Aggregate Measurement of Support 
Million US$
Description of basic product 
(including non-product specific AMS) Product-specific AMS 
(from supporting tables 
DS:5 to DS:7 below) Non-Product-specific 
measurement of support 
(from supporting table DS:8  below) Current Total AMS 
(Aggregate) 
1 2 3 4 
   Average 
    
Wheat 759.48  759.48 
      
Barley (domestic) 168.46  168.46 
      Livestock feed 452.15  452.15 
      
Poultry feed 41.35  41.35       
Dates 4.4  de minimis 
     Palm trees 1.1  de minimis 
     
Non- product - specific   1,054.61      
  Current Total AMS 2,476.05 
 
  
  WT/ACC/SPEC/SAU/1/Rev.3
 Page 9Supporting Table DS:5 
DOMESTIC SUPPORT: 
REPORTING PERIOD: calendar  years 1993-1995 
Product-Specific Aggregate Measurem ents of Support:Market Price Support 
Million US$
Description  of 
basic products Calendar  year Measure 
type (s) Applied 
administered 
price (US$) External 
reference 
price (US$) Eligible 
production 
(Ton) Associated 
fees/levies Total 
market 
price support 
(million US$) Data sources 
1 2 3 4 5 6 7 8 
((4-5)x6)-7 9 
     
(1)     
Wheat 1993 Market 533.33 143.00 2,705,526  1,056.05 Grain Silos  & 
 1994 price support 533.33 143.00 2,313,236  902.93 Flour Mills  1995  400.00 196.00 1,565,956  319.46 Organization 
   ---------- ---------- -----------  ----------  
 Average  501.62 155.60 2,194,906  759.48       
(2)     
Barley 1993  266.67 120.18 1,087,988  159.38 Grain Silos  & 
 1994  266.67 96.96 1,684,586  285.89 Flour Mills 
 1995  266.67 186.00 745,108  60.11 Organization    ----------- ---------- -------------  -----------  
 Average  266.67 123.00 1,172,561  168.46  
 
(1) World Price f.o.b. Jeddah for years 1993,1994 and world price c.i.f Jeddah for 1995 
(2) World Price c.i.f.  Jeddah  
 WT/ACC/SPEC/SAU/1/Rev.3 
Page 10 Supporting Table DS:6 
DOMESTIC SUPPORT: 
REPORTING PERIOD:  calendar  years 1993-1995 
Product-Specific Aggregate Me asurements of Support: Non-Exempt Direct Payments 
Million US$
Description 
of basic 
product Calendar 
year 
 Measure 
type(s) Applied 
administered 
price External 
reference 
price Eligible 
production 
 Total price 
related direct 
payments Other non- 
exempt 
direct 
payment Associated 
fees / levies Total direct 
payments 
(Million US 
$) Data 
source 
1 2 3 4 5 6 7 
((4-5)x6) 8 9 10 
(7+8-9) 11 
           
 
Dates 1993 
1994 1995 
 
Average      6.8 
2.1 4.2 
 
4.4  6.8 
2.1 4.2 
 
4.4 
  
  
  WT/ACC/SPEC/SAU/1/Rev.3
 Page 11Supporting Table DS:7 
DOMESTIC SUPPORT: 
REPORTING PERIOD:  calendar  years 1993-1995 
Product-Specific Aggregate Measurements  of Support:  Other Product Specific Support and Total Pr oduct-Specific AMS 
Million US$
Description 
of basic 
product Calendar 
year Measure 
type(s) Other 
product 
specific 
budgetary 
outlays Other 
product 
specific 
support 
(include 
calculation 
details) Associated 
fees/ 
levies Total 
other 
product 
specific 
support  Market price 
support 
(supporting 
Table DS-5) Non-exempt 
direct 
payments 
(supporting 
Table DS-6) Total AMS Data 
sources 
1 2 3 4 5 6 7 
(4+5-6) 8 9 10 
(7+8+9) 11 
Livestock Input Subsidy*          
(a) Domestic 1993     208.89     208.89   
 Barley 1994     323.44     323.44  
 1995     143.06     143.06  
      ________   ________  
 Average     225.13     225.13  
              
(b) Imported 1993     111.49     111.49   
 Barley 1994     131.36     131.36  
 1995     438.21     438.21  
      ________   ________  
 Average     227.02     227.02  
                                                      
*For calculation, see methodological note (Annex 2)   
 WT/ACC/SPEC/SAU/1/Rev.3 
Page 12 Million US$
1 2 3 4 5 6 7 
(4+5-6) 8 9 10 
(7+8+9) 11 
Poultry feed 1993     56.43   56.43  
(imported corn  1994     36.93   36.93  
and Soya bean) * 1995     30.69   30.69  
      ________   ________  
 Average     41.35   41.35             Palm trees 1993     1.2   1.2   1994     0.9   0.9   1995     1.1   1.1  
      ________   ________  
 Average     1.1   1.1  
 
 
  
                                                     
 
* For calculation, see methodological note   
  WT/ACC/SPEC/SAU/1/Rev.3
 Page 13Supporting Table DS:8 
DOMESTIC SUPPORT: 
REPORTING PERIOD:  calendar  years 1993-1995 
Product-Specific  Equivalent Measurements of Support 
Million US$
Description 
of 
basic 
products Calendar 
year Measure 
type(s) Applied 
administered 
price Production 
eligible to 
receive the 
applied 
administered 
price Market price 
support 
budgetary 
outlays Equivalent 
measurement 
of 
support 
(include 
calculation 
details) Non- 
exempt 
direct 
payments Other 
product- 
specific 
support Associated 
fees/ 
levies Total 
monetary 
value of 
equivalent 
commitment Data 
sources 
1 2 3 4 5 6 7 8 9 10 11 
(7+8+9+10) 12 
            
            
            
NIL 
 
  
 WT/ACC/SPEC/SAU/1/Rev.3 
Page 14 Supporting Table DS:9 
DOMESTIC SUPPORT: 
REPORTING PERIOD :  calendar  years (1993-1995) 
Non-Product-Specific Aggregat e Measurements of Support 
 
Measure Type(s) Calendar / 
Marketing year 
beginning Non-Product specific 
support (include 
calculation details) Other non-product- 
specific support 
(include calculation 
details) Associated fees 
/levies Total non-product-
specific support 
Million (US$) Data 
sources 
1 2 3 4 5 6 7 
(a) Agricultural 
 subsidies * 1993 
1994 1995 75.33 
98.05 
6.11   75.33 
98.05 
6.11 Ministry of Planning 
 (b) Fuel 1993 
1994 
1995 982.1 
1,083.7 
572.3   982.1 
1,083.7 
572.3  
(c) Opportunity cost 
 for agricultural 
 loans** 1993 
1994 
1995 10.68 
8.48 
7.06   10.68 
8.48 
7.06 Saudi Arabian 
Agricultural Bank 
(d) Bad debts for 
 agricultural loans 1993 
1994 1995 106.67 
106.67 106.67   106.67 
106.67 106.67 Saudi Arabian 
Agricultural Bank 
       
TOTAL 1993 
1994 
1995    1,174.78 
1,296.90 
692.14  
 
                                                      
*Agricultural subsidies which are paid through the Agricu ltural Bank and the Ministry of Agriculture and Water.  
** For calculation, see methodological note (Annex 1)  
  WT/ACC/SPEC/SAU/1/Rev.3
 Page 15Supporting Table ES:1 
EXPORT SUBSIDIES: 
REPORTING PERIOD:  calendar years 1993-1995 
Export Subsidies:  Outlay and quantity 
Description of 
products Direct export 
subsidies Sales of stocks Producer 
financed 
subsidies Cost reduction 
measures Internal 
transport 
subsidies Total product 
specific export 
subsidies Quantity of 
subsidized 
export 
(tons) Data source 
1 2 3 4 5 6 7 8 9 
       
The Kingdom of Saudi Arabia no longer grants export subsidies on agricultural products.  However, the Kingdom reserves the righ t to grant 
export subsidies in the future, but will lim it budgetary outlays on export subsidies and the volume of  subsidized export to neg otiated levels. 
 WT/ACC/SPEC/SAU/1/Rev.3 
Page 16  
 
 METHODOLOGICAL NOTE 
THE BASIS OF CALCULATION OF AGRICULTURAL DOMESTIC SUPPORT 
 This is an explanatory note to be read in  conjunction with the Saudi notification of its 
domestic support and export  subsidy for the agricultural sector as outlined in document WT/ACC/4. 
1. The figures are based on 1993-1995 data.  The data of 1996 is not available. 
2. The use of three- year averages are, extended to cover all supporting tables. 
3. The exchange rate represents the official ra te which is fixed at US$1 = SRls. 3.75 since 1986. 
4. Saudi-American cooperation and Saudi-Chin ese cooperation:  in the context of these 
programs, specialists from the United States and Ch ina are contracted in order to work in the 
Ministry of Agriculture.  Similarly, Saudis are sent to these countries to gain experience.  In 
addition, laboratory equipment is provided to support these programmes. 
5. In determining eligible production for wheat  and barley, it excludes 5 per cent impurities and 
5 per cent Zakat from total production. 
The ratio of 5 per cent impurities represents a ge neral average based on samples analysis    
drawn randomly from wheat and barley received by GSFMO. 
 The ratio of 5 per cent Zakat is determined according to Islamic rules. 
6. Saudi Arabia used world (f.o.b.) price for wheat in 1993-1994 and world c.i.f. price Jeddah in 
1995 because Saudi Arabia was a net wheat e xporter in the first two years and stopped 
exporting wheat starting in 1995. 
7. The applied administered price per ton fo r wheat was SRls. 2,000 up to 1994 and SRls. 1,500 
(or US$400) from 1995. 
8. The figures provided by Saudi Arabia on eligib le production of wheat and barley are accurate 
because these figures the real total production received by GSFMO excluding the impurities and Zakat during 1993-1995. 
9. The reference price for barley is calculated as the average of real import prices for imported 
barley by GSFMO during the period 1993-1995.  The reference price for wheat is calculated 
by averaging monthly world prices during 1993-1995. (UN Monthly commodity price 
bulletin vol xv, No. 12,  December 1995) 
10. The subsidy for poultry feed during the period 1993-1995 is a fixed amount of US$53.33 
(SRls. 200) per ton paid on corn and soya bean cake used by poultry producers.  The main source for these two items are imports because there is no local production. 
11. Agricultural subsidies which are included in  table DS:9 are provided to all agricultural 
projects:  wheat, barley, poultry, dairy sheep, greenhouse, vegetables and fruits etc. 
 These subsidies can be disclosed as follows:  WT/ACC/SPEC/SAU/1/Rev.3 
 Page 17 
 
 
  - 50 per cent of the price fixed by the Mini stry of Agriculture and Water for irrigation 
engines and pumps: 
 - 45 per cent of the price fixed by the Ministry of Agriculture and Water for farm 
machinery such as tractors; 
 - 30 per cent of the cost of poultry and dairy farms equipment. 
12. The support for palm trees is as follows: 
 - SRls. 50 per palm tree subject to a mini mum of 30 trees at certain planting conditions. 
13. The opportunity cost for agricultural loans represents the amount of medium term loans 
granted by the Saudi Agricultural Bank multiplie d by the average interest rates because the 
Saudi Agricultural Bank does not charge interest on loans (Annex 1). 
14. Bad Debts for Agricultural Loans represent due  balances carried forward for several financial 
years divided by ten.  These amount are b ased on ten-years average because medium-term 
loans are extended for a period of ten years.   
15. Calculation of livestock feed subsidy (Annex 2):  the amount of subsidy per ton on domestic 
barley is the difference between the guarant eed producer price and the price paid by the 
domestic livestock producers. The calcula tion of this subsidy is as following: 
DFBS = (A - B) x C  where: DFBS: Domestic feed barley subsidy 
A: Applied administered price which equals the price paid by GSFMO to  farmers B: Price payed by livestock producers for barley 
C: Eligible production which equals total production - (5 per cent impurities + 
 5 per cent Zakat) 
For imported barley, the subsidy paid to livestock producers or input subsidy was computed 
as following: 
IFBS = (E - B) x F  where: 
IFBS: Imported feed barley subsidy 
B: Price payed by livestock producers for barley E: External reference price (= world price c.i.f. Jeddah) F: Quantity of imported feed barley 
The total amount of livestock feed subsidy is equal to DFBS + IFBS.  
 WT/ACC/SPEC/SAU/1/Rev.3 
Page 18 ANNEX 1 
THE OPPORTUNITY COST FOR THE MEDIUM TERM LOANS GRANTED 
BY THE SAUDI ARABIAN AGRI CULTURAL BANK DURING 1993-1995 
REPORTING PERIOD:  1993-1995 
Year Amount of M.term loans 
Million US$ Average Interest Rate % Opportunity cost value Million US$ 
1993 247.73 4.31 10.68 
1994 178.61 4.75 8.48 
1995 109.87 6.43 7.06 
Average 178.74 4.91* 8.78 
*  weighted Average 
Sources : 1. Saudi Arabian Agricultural Bank 
  2. Saudi Arabian Monetary Agency  
  WT/ACC/SPEC/SAU/1/Rev.3
 Page 19ANNEX 2 
CALCULATION OF LIVESTOCK FEED SUBSIDY 
   Million US$
Description of 
basic products Calendar 
Year Measure type(s) Applied 
administered 
price (US$) Reference price 
(US$) Quantity (Ton) Associated 
fees/levies Total support 
(million US$) Data sources 
1 2 3 4 5 6 7 8 9 
 
Livestock input subsidy:        
         
(a)  Imported 1993  74.67 120.18 2,449,571  111.49 GSFMO       barley 1994  74.67 96.96 5,829,166  131.36  
 1995  74.67 186.00 3,936,148  438.21  
          Average  74.67 130.14 4,092,628  227.02  
         
(b)  Domestic 1993  74.67 266.67 1,087,988  208.89 GSFMO       barley 1994  74.67 266.67 1,684,596  323.44  
 1995  74.67 266.67 745,108  143.06  
          Average  74.67 266.67 1,172,561  225.13  
__________