WORLD TRADE  
ORGANIZATION   
G/AG/N/SAU/7 
16 May 2012 
 (12-2647) 
Committee on Agriculture Original:   English 
  
 
NOTIFICATION 
  
 The following submission, dated 22 March 2012, is being circulated at the request of the 
Delegation of the Kingdom of Saudi Arabia .  The notification concerns domestic support 
commitments ( Table DS:1  and the relevant Supporting Tables) for the calendar year 2010 .  
  G/AG/N/SAU/7 
Page 2 Table DS:1 
 
DOMESTIC SUPPORT:  Kingdom of Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2010 
 
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 
3,465.12 Million Saudi Riyals 1,538.03 
 
   
   G/AG/N/SAU/7
 Page 3Supporting Table DS:1 
 
DOMESTIC SUPPORT:  Kingdom of Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2010 
 
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  1,321.36  
Research  Agricultural Research Stations, Plant tissue cultures lab, Operation and 
maintenance, Regional lab, Agricultural Research Centres and Distance sensors 
centres.  31.31  MOA 
Pest and disease control Securance of veterinary, Vaccine production,  Veterinary labs, Air spray pest and 
disease control, and Veterinary services. 117.38 MOA 
Training Saudi Chinese Cooperation1, FAO Agreement and Veterinary training centres. 63.20 MOA 
Extension Agricultural Extension Expenses, Progra mmes of nurseries and Extension and 
development of Honeybees. 81.15 MOA 
Inspection Services Operation of stations of sorting and pur ification of seeds and Establishment and 
equipping of veterinary quarantine. 12.00 MOA 
Infrastructural Services Construction of dams, maintenance of da ms, Irrigation and drainage systems, 
Prevention of moving sand and Planting and development of forests. 1,016.32 MOA 
(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.  16.63 GSFMO 
TOTAL GREEN BOX  1,337.99  
 
1 See methodological note number 2. 
2 This meets the criteria of footnote to paragrap h 3 of Annex 2 of the Agreement on Agriculture. 
 
MOA = Ministry of Agriculture GSFMO = Grain Silos and Flour Mills Organization  
  G/AG/N/SAU/7 
Page 4 Supporting Table DS:4 
 
DOMESTIC SUPPORT:  Kingdom of Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2010 
 
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 437.03  437.03 
Barley 0.00  0.00 
Livestock 520.40  de minimis1 
Poultry 1,101.00  1,101.00 
Dates 46.62  de minimis1 
Dairy 0.00  0.00 
    
Non-product-specific AMS (from Supporting Table DS:9) 581.35  de minimis1 
Total   1,538.03 
 
 
1 De minimis  calculation is explained in the at tached methodological note (Annex 3). 
  
   G/AG/N/SAU/7
 Page 5Supporting Table DS:5 
 
DOMESTIC SUPPORT:  Kingdom of Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2010 
 
Product-Specific Aggregate Measurements of Support:  Market Price Support 
 
Description of basic 
products Calendar year 
2010 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 1,278,939  437.03 GSFMO 
Barley  Market price support - 685.22 0  0.00 GSFMO 
 
1 World prices CIF Jeddah. 
 
GSFMO = Grain Silos and Flour Mills Organization  
  G/AG/N/SAU/7 
Page 6 Supporting Table DS:6 
 
DOMESTIC SUPPORT:  Kingdom of Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2010 
 
Product-Specific Aggregate Measurements of Support:  Non-Exempt Direct Payments 
 
Description of 
basic product Calendar 
year 2010 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     46.62  46.62 MOA 
 
 
MOA = Ministry of Agriculture  
   G/AG/N/SAU/7
 Page 7Supporting Table DS:7 
 
DOMESTIC SUPPORT:  Kingdom of Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2010 
 
Product-Specific Aggregate Measurements of Support:  Other Product-Specific Support and Total Product-Specific  AMS 
 
Description of 
basic product Calendar 
year 
2010 Measurement type(s) Other 
product-
specific 
budgetary 
outlays Other product 
specific support 
(include 
calculation 
details) Associated 
fees/levies Total 
other 
product-
specific 
support 
(Million 
SRls) 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     437.03  437.03 GSFMO 
Barley  Market price support     0.00  0.00 GSFMO 
Dates  Fixed amount of subsidy      46.62 46.62 MOA 
  Target subsidy for palm 
trees1    0.00     
Livestock  Input subsidy    520.40   520.40 Annex 22 
Poultry  Fixed amount of input 
subsidy for feed (imported 
corn and soybean)    1,101.00   1,101.00 MOF 
  Fixed amount of input 
subsidy for equipment    0.00    ADF 
Dairy   Fixed amount of input 
subsidy for production 
equipment and 
transportation costs    0.00   0.00 ADF 
 
1 To encourage producers to use drip  irrigation for water conservation. 
2 For calculations, see methodological note (Annex 2). 
GSFMO = Grain Silos and Flour Mills Organization  
MOA = Ministry of Agriculture 
MOF = Ministry of Finance  
ADF = Agricultural Development Fund  
  G/AG/N/SAU/7 
Page 8 Supporting Table DS:9 
 
DOMESTIC SUPPORT:  Kingdom of Saudi Arabia 
 
REPORTING PERIOD:  Calendar year 2010 
 
Non-Product-Specific AMS 
 
Measure type(s) Calendar year 
2010 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     42.77 ADF 
Opportunity cost for 
interest-free agricultural loans2     5.54 ADF 
Bad debts for agricultural 
loans3     533.04 ADF 
Total     581.35  
 
1 Agricultural subsidies are paid by ADF.  See methodological note number 7. 
2 For calculations, see met hodological note number 8. 
3 For calculations, see met hodological note number 9. 
 
ADF = Agricultural Development Fund 
The ADF replaced the Saudi Arabian Agricultural Bank (SAAB). 
  G/AG/N/SAU/7 
 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 programme, 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 programmes. 
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 expressed  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. 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. 
8. The opportunity cost for agricultural loans repres ents the amount of total loans granted by the 
Agricultural Development Fund (ADF) multiplied by the average commercial interest rates 
because ADF does not charge interest on the granted loans (Annex 1).  
9. Bad Debts for Agricultural Loans represent due balances carried forward for several financial 
years divided by ten.  These amounts are b ased on a ten-year average because medium-term 
loans are extended for a period of ten years.  
10. Calculation of livestock feed subsidy (Annex 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: 
 - 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 price C.I.F Jeddah);  and 
 - I:  Quantity of imported barley. 
 G/AG/N/SAU/7 
Page 10  
 
  ANNEX 1 
 
The Opportunity Cost for the Interest Free Total Loans 
granted by the Saudi Arabian Agricultural Bank 
Reporting period:  Calendar year 2010 
Year Amount of Total loans 
Million Saudi Riyals Average Interest Rate 
% Opportunity cost 
Million Saudi Riyals 
2010 753.10 0.736 5.54 
 
Sources : 1 – Agricultural Development Fund (ADF). 
  2 – Saudi Arabian Monetary Agency (SAMA).   
   G/AG/N/SAU/7
 Page 11ANNEX 2 
Calculation of livestock feed subsidy 
Reporting period:  Calendar year 2010 
Description of 
basic products Calendar 
year 
2010 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    
 
744 
-  
 
680 
-  
 
8,130,840 
0   
 
520.40 
 
520.40 GSFMO 
 G/AG/N/SAU/7 
Page 12  
 
  ANNEX 3 
Calculation of de minimis  for certain products 
Reporting period:  Calendar year 2010 
Product Name Production Value 2010
(Million SRls) Product Support 
2010 
(Million SRls) AMS % Comments 
Wheat 1,349.00 437.03 32.40  
Barley 0.00 0.00 0.00 0.00 
Livestock 6,020.00 520.40 8.64 de minimis  
Poultry 6,258.00 1,101.00 17.60  
Dates 6,017.00 46.62 0.77 de minimis 
Dairy  6,170.00 0.00 0.00 0.00 
Non-product-specific 42,016.00 581.35 1.38 de minimis 
 
 
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