WORLD TRADE  
ORGANIZATION  G/AG/N/SAU/2 
23 October 2007 
 (07-4577) 
Committee on Agriculture Original:   English 
  
 
NOTIFICATION 
  
 The following submission, dated 27 July 2007 is being circulated at the request of the 
Delegation of Saudi Arabia .  The notification concerns domestic support commitments ( Table DS:1  
and the relevant Supporting Tables) for the calendar year 2006 .  
  G/AG/N/SAU/2 
Page 2 Table DS:1 
DOMESTIC SUPPORT:  Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2006 
 
Current Total Aggregate Measurement of Support 
 
Total AMS commitment level for period in  
question Currency Current Total AMS 
(from Section I of Part IV of the Schedule) (from Section I of  Part IV of the Schedule) (from attached Supporting Tables) 
1 2 3 
3,662.6 million Saudi Riyals 1,264.07 
 
 
  
   G/AG/N/SAU/2
 Page 3Supporting Table DS:1 
DOMESTIC SUPPORT:  Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2006 
 
Measures exempt from the reduction commitment – "Green Box" 
 
Measure Type Name and description of measure with refere nce to criteria in Annex 2 Monetary value of measure 
in year in question 
 
(million SRls) Data sources 
1 2 3  
(a) General Services    
Research  Agricultural Research Stations, Plant tissue cultures lab, Operation and 
maintenance, Regional lab, Agricultural Research Centres and Distance sensors 
centres.  26.20 
 MOA 
Pest and disease control:  
 Securance of veterinary, Vaccine production,  Veterinary labs, Air spray pest and 
disease control, and Veterinary services. 88.42 MOA 
Training  Saudi Chinese Cooperation1, FAO Agreement and Veterinary  training centres. 29.73 MOA 
Extension  Agricultural Extension Expenses, Progr ams of nurseries and Extension and 
development of Honeybees. 51.27 MOA 
Inspection Services:  
 Operation of stations of sorting and pur ification of seeds and Establishment and 
equipping of veterinary quarantine. 7.90 MOA 
Infrastructural Services:  
 Construction of dams, maintenance of da ms, Irrigation and drainage systems, 
Prevention of moving sand and Planting and development of forests. 438.14 MOA 
 General services total 641.66  
(b) Public stockholding for food security 
purposes2 
 GSFMO, among other things, fulfils a publ ic stockholding role for food security 
purposes by managing and controlling the storage and distribution of grains.  32.63 GSFMO 
 TOTAL GREEN BOX 674.296  
 
1 See methodological note number 2. 
2 This meets the criteria of footnote to paragraph 3 of Annex 2 of the Agreement on Agriculture. 
 
MOA = Ministry of Agriculture 
GSFMO = Grain Silos and Flour Mills Organization  
  G/AG/N/SAU/2 
Page 4 Supporting Table DS:4 
DOMESTIC SUPPORT:  Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2006 
 
Calculation of the Current Total Aggregate Measurement of Support 
 
Description of basic products (including non-product-
specific AMS) Product-specific AMS (from 
Supporting Tables DS:5 to DS:7 
below) 
 
(million SRls) Product-specific measurements of 
support (from Supporting Table DS:8 
below) 
 
 Current Total AMS 
 
 
 
(million SRls) 
1 2 3 4 
Wheat 796.46  796.46 
Barley 00.00  00.00 
Livestock 467.61  467.61 
Poultry 240.94  de minimis1 
Dates 39.31  de minimis  
Dairy 00.00  00.00 
    
Non-product-specific AMS (from Supporting Table DS:9) 838.84  de minimis  
Total   1,264.07 
 
 
1 De minimis  calculation is explained in the attached methodological note (Annex 3) 
   G/AG/N/SAU/2
 Page 5Supporting Table DS:5 
DOMESTIC SUPPORT:  Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2006 
 
Product-Specific Aggregate Measurements of Support:  Market Price Support 
 
Description of basic 
products Calendar  year 
2006 Measure type(s) Applied 
administered 
price 
 
(SRls/tonne) External 
reference price1
  
(SRls/tonne) Eligible 
production 
 
 
(tonnes) Associated 
fees/levies Total market 
price support 
 
 
(million SRls) Data sources 
1 2 3 4 5 6 7 8 
((4-5*6)-7) 9 
Wheat  Market price support 1,000 658.29 2,330,818  796.46 GSFMO 
Barley  Market price support 0 685.22 0  0.00 GSFMO 
 
1 World prices CIF Jeddah  
 
GSFMO = Grain Silos and Flour Mills Organization  
  G/AG/N/SAU/2 
Page 6 Supporting Table DS:6 
DOMESTIC SUPPORT:  Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2006 
 
Product-Specific Aggregate Measurements of Support:  Non-Exempt Direct Payments 
 
Description of 
basic product Calendar 
year 2006 Measure type(s) Applied 
administered 
price External 
reference 
price 
(generally 
from 
AGST/…) Eligible 
production Total 
price-
related 
direct 
payments 
 Other non-
exempt direct 
payments 
 
 
(million SRls) Associated 
fees/levies Total direct 
payments 
 
 
 
(million SRls) Data 
sources 
1 2 3 4 5 6 7 
((4-5)*6)) 8 
 9 10 
(7+8-9) 11 
Dates  Fixed amount of 
subsidy     39.31  39.31  MOA 
 
 
MOA = Ministry of Agriculture 
   G/AG/N/SAU/2
 Page 7Supporting Table DS:7 
DOMESTIC SUPPORT:  Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2006 
 
Product-Specific Aggregate Measurements of Support:  Other Product-Specific Support and Total Product-Specific AMS 
Description of 
basic product Calendar 
year 
2006 Measurement 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)
(million 
SRls) Non-exempt 
direct 
payments 
(Supporting 
Table DS:6)
(million 
SRls) Total 
product-
specific AMS
  
(million 
SRls) Data sources 
1 2 3 4 5 6 7 
(4+5-6) 8 
 9 10 
(7+8+9) 11 
Wheat  Market price support     796.46  796.46 GSFMO 
Barley  Market price support     0.00  0.00 GSFMO 
Dates  Fixed amount of subsidy      39.31 39.31 MOA 
  Target subsidy for palm 
trees1    0.00     
Livestock  Input subsidy    467.61   467.61 Annex 22 
Poultry  Fixed amount of input 
subsidy for feed (imported 
corn and soybean)3     
 
240.50   240.94  
 
MOF 
  Fixed amount of input 
subsidy for equipment4    0.435    SAAB 
Dairy   Fixed amount of input 
subsidy for production 
equipment and 
transportation costs    0.00   0.00 SAAB 
1 To encourage producers to use drip irrigation for water conservation. 
2 For calculations, see methodol ogical note (Annex 2). 
3 See methodological note number 7. 
4 See methodological note number 8. 
GSFMO = Grain Silos and Flour Mills Organization  
MOA = Ministry of Agriculture 
MOF = Ministry of Finance  SAAB = Saudi Arabia n Agricultural Bank  
  G/AG/N/SAU/2 
Page 8 Supporting Table DS:9 
DOMESTIC SUPPORT:  Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2006 
 
Non-Product-Specific AMS 
 
Measure type(s) Calendar year 
2006 Non-product-specific 
budgetary outlays 
 
(million SRls) Other non-product 
specific support (include 
calculation details) 
(million SRls) Associated 
fees/levies Total non-product-
specific support 
 
(million SRls) Data sources 
1 2 3 4 5 6 
(3+4-5)  
General agricultural subsidies1     258.61 SAAB 
Opportunity cost for interest-
free agricultural loans2     43.02 SAAB 
Bad debts for agricultural 
loans3     537.21 SAAB 
Total     838.84  
 
1 Agricultural subsidies are paid by SAAB. 
2 For calculations, see methodol ogical note number 9. 
3 For calculations, see methodol ogical note number 10. 
 
SAAB = Saudi Arabia n Agricultural Bank  G/AG/N/SAU/2 
 Page 9 
 
 
  Methodological Note  
The Basis of Calculation of Agricultural Domestic Support  
This is an explanatory note to be read in conjunction with the current Saudi domestic support 
notification. 
1. The figures are expressed in Saudi Riyals, where th e exchange rate has been fixed at US$ 1 = 
SAR 3.75 since 1986. 
2. Saudi Chinese Cooperation: In the context of this program, specialists from China are 
contracted with in order to work in the Minist ry of Agriculture. Similarly, Saudis are sent to 
this country to gain experience.  In additi on, laboratory equipment is provided to support 
these programs. 
3. In determining eligible production for wheat, it excludes 5 per cent impurities and 5 per cent 
Zakat from total production.  The ratio of 5 per cent impurities represents a general 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 (this percentage of Zakat is 
limited only on farming and differs from the nor mal Zakat on all kinds of money which is 
2.5 per cent). 
4. The applied administered price of wheat has been reduced to SAR 1,000/tonne (or 
US$ 266.67) since 2004. 
5. External reference prices of wheat are expr essed as CIF Jeddah. These reference prices are 
determined as a sum of (Export price of US Hard Winter Ordinary Protein, FOB US Gulf Ports) + Ocean Freight to Egypt (Alexandria) + US$ 3/tonne as estimated freight from 
Alexandria to Jeddah (2001-2003 Base Year). (Source:  Food Outlook of the Food and 
Agriculture Organization of the UN, No. 5, December 2002 and No.1 April 2005). 
6. The external reference price for barley is calculated as the a nnual average of effective import 
prices for barley imported by GSFMO during the period 2001-2003 (Base Year). 
7. The subsidy for poultry feed during 2006 is a fixed amount of SR 160 per tonne paid by the 
Ministry of Finance on corn and soybean cake used by poultry producers. The main source 
for these two items is imports because there is no local production.  
8. Agricultural subsidies which are included in Supporting Table DS:9 are provided to all 
agricultural projects:  wheat, poultry, dairy,  sheep, greenhouse, vegetables and fruits, etc.  
These subsidies can be disclosed as follows: 25 per cent of the price fixed by the Ministry of 
Agriculture for farm machinery; and the co st of poultry and dairy farms equipments.  
9. The opportunity cost for agricultural loans repres ents the amount of total loans granted by the 
Saudi Arabian Agricultural Bank (SAAB) multiplie d by the average commercial interest rates 
because SAAB does not charge interest  on the granted loans (Annex 1).  
10. Bad Debts for Agricultural Loans represent due balances carried forward for several financial 
years divided by ten.  These amounts are based on ten years average because medium - term 
loans are extended for a period of ten years.  
11.  Calculation of livestock feed subsidy (Anne x 2):  the amount of subsidy per tonne on 
imported barley is the differe nce between the refe rence price and the price paid by the 
domestic livestock producers. The calcula tion of this subsidy is as following: G/AG/N/SAU/2 
Page 10  
 
  - For imported barley: IFBS   = (E - P) * I, where: 
− IFBS: Imported feed barley subsidy; 
− P: Price paid by livestock producers for barley; 
− E: External reference price (= world pri ce C.I.F Jeddah) based on the period 2001-2003 
(Base Year); and 
− I: Quantity of Imported barley.  
 
  G/AG/N/SAU/2 
 Page 11 
 
 
   
ANNEX 1 
The Opportunity Cost For the Interest Free Total Loans Granted  
by the Saudi Arabian Agricultural Bank  
Reporting period:  Calendar year 2006  
Year Amount of Total loans 
Million Saudi Riyals Average Interest Rate % Opportunity cost Million 
Saudi Riyals 
2006 814.2 5.284 43.02 
 
Sources: 1 – Saudi Arabian Agricultural Bank (SAAB). 
  2 – Saudi Arabian Monetary Agency (SAMA).   
  G/AG/N/SAU/2 
Page 12   ANNEX 2  
Calculation of livestock feed subsidy  
Reporting period:  Calendar year 2006  
Description  of 
Basic products Calendar 
year Measure 
Type (s) Reference price 
(SAR/T) Price paid by 
livestock 
producers 
(SAR/T) Quantity 
(Ton) Associated 
fees/levies Total support 
Million Saudi 
Riyals Data sources 
1 2 3 5 4 6 7 8 9 
Livestock: 
Input subsidy 
Imported barley 
Domestic barley Total  
 
2006   
 
477.66 
00.00  
 
400 
00.00 
  
 
6,021,289 
000.00   
 
467.61 
000.00 GSFMO  G/AG/N/SAU/2 
 Page 13 
 
 
   
ANNEX 3 
Calculation of de minimis  for certain products  
Reporting period: Calendar year 2006  
Product Name Product Value 2006 
(million SRls) Product Support 
2006  
(million SRls) AMS % Comments 
Wheat 2,727.4 796.46 29.20  
Barley 0.0 0.00 00.00 00.00 
Livestock  3,704.9 467.61 12.62  
Poultry  4,424.9 240.94 5.45 de minimis 
Dates 5,609.4 39.31 0.70 de minimis 
Dairy  4,423.5 00.00 00.00 00.00 
Non-product-specific 40,703.5 838.84 2.06 de minimis 
 
 
__________