 
 RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/SAU/1/Rev.6 
8 July 2003 
 (03-3681) 
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 Ministry of Commerce of the Kingdom of Saudi Arabia has submitted revised 
information on domestic support and export subsid ies in agriculture (document WT/ACC/4) and 
supporting tables, which are reproduced hereunder. 
_______________ 
  
 WT/ACC/SPEC/SAU/1/Rev.6 
Page 2 Table DS:1 
DOMESTIC SUPPORT:   Saudi Arabia 
REPORTING PERIOD:  calendar years (1999-2001) 
 
Total Aggregate Measurement of Support (AMS)  
(From attached Supporting Tables)  
Million Saudi Riyals 
Year Wheat Barley Live stock feed Total AMS1 Agricultural Domestic 
Product Total AMS 
(Per cent) 
1999 1,828.09 48.57 -212.43 1,664.23              34,443  
2000 1,676.40 53.08 283.72 2,013.20              34,973  
2001 1,690.65 65.81 421.39 2,177.85              35,708  
Average 1,731.71 55.82 164.23 1,951.76              35,041.33 5.6 
 
*    
Sources
: 1 Saudi Arabian Monetary Agency (SAMA)    
 2 Ministry Of Agriculture (MOA)   3 Ministry of Planning (MOP). 
 4 Saudi Arabian Agricultural Bank (SAAB) 
 5 Grain Silos & Flour Mills Organization (GSFMO).   
Note
: The basis of calculation is explained in the attached methodological note.  
 
 
                                                      
1 Support of dates, palm trees, poultry feed and non-product-specific is not included (De minimis).  
  WT/ACC/SPEC/SAU/1/Rev.6
 Page 3Supporting Table DS:1 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1999-2001) 
 
Measures exempted from the reduction commitment - “Green Box“ 
Million Saudi Riyals  
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: 
1999 
2000 
2001 
 
Average 
 Research  
 
Agricultural Research Stations, Plant 
tissue cultures lab, Operation and maintenance, Regional lab, Agricultural 
Research Centers and Distance sensors 
centers.  
10.80 
 9.14 
 9.71 
 
9.88  
MOA 
 
 
1999 
2000 
2001 
 
Average Pest and disease control:  
 
Securance of veterinary, Vaccine 
production, Veterinary labs, Air spray pest and disease control, and Veterinary 
services.   
29.23 
29.15 
28.26 
 
28.88  
MOA 
 
 
1999 
2000 2001 
 
Average Training
: 
 
Saudi American Cooperation, Saudi Chinese Cooperation, F.A.O. Agreement 
and Veterinary training centers.   
20.69 
19.21 18.79 
 
19.56  
MOA 
 
  
1999 
2000 2001 
 
Average Extension
: 
 
Agricultural Extension Expenses, 
Programs of nurseries and Extension and development of Honeybees.   
 
1.91 
1.36 1.36 
 
1.54  
MOA 
  
 WT/ACC/SPEC/SAU/1/Rev.6 
Page 4 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 
 
1999 2000 
2001 
 
Average Inspection Services
: 
 Operation of stations of sorting and 
purification of seeds and Establishment 
and equipping of veterinary quarantine.   
2.97 2.97 
5.55 
 
3.83  
MOA 
 
 
1999 
2000 2001 
 
Average Infrastructural Services:
 
 
Construction of dams, maintenance of dams, Irrigation and drainage systems, 
Prevention of moving sand and Planting 
and development of forests.   
69.97 
46.66 60.24 
 
58.96  
MOA 
 
 
1999 2000 
2001 
 
Average General Services Total
  
135.57 108.49 
123.91 
 
122.66  
(b) Public stockholding for food 
security purposes2 
 
1999 
2000 
2001 
 
Average GSFMO, among other things, fulfils a 
public stockholding role for food security 
purposes by managing and controlling the storage and distribution of grains.   
 
 
25.15 
24.64 
24.75 
 
24.85  
 
 
GSFMO 
 (c) to (l) 
   
NIL 
  
 
 
                                                      
2 This meets the criteria of footnote to paragraph 3 of Annex 2 of the Agreement on Agriculture.  
  WT/ACC/SPEC/SAU/1/Rev.6
 Page 5Supporting Table DS:2 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1999-2001) 
 
Measures exempted from the reduction commitment – Sp ecial and Differential Treatment – Development Programmes 
Million Saudi Riyals  
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.6 
Page 6 Supporting Table DS:3 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1999-2001) 
 
Measures exempted from the reduction comm itment – Direct Payments under Production-Limiting Programmes – "Exempt Direct Payment s" 
Million Saudi Riyals  
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.6
 Page 7Supporting Table DS:4 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1999-2001) 
 
Calculation of the Total Aggr egate Measurement of Support 
Million Saudi Riyals 
Description of basic product (including 
non-product specific AMS) Product specific AMS (from supporting 
Tables DS:5 to DS:7 below) Product specific measurement of support 
(from supporting Table DS:8 below) Current Total AMS (Aggregate) 
1 2 3 4 
Wheat 1,731.71  1,731.71 
Barley (domestic) 55.82  55.82 
Livestock feed 164.23  164.23 
Poultry feed 264.83  De minimis 
Dates 22.00  De minimis 
Palm trees 8.91  De minimis 
Non-product specific 1,937.06  De minimis 
Current Total AMS 1,951.76 
 
  
 WT/ACC/SPEC/SAU/1/Rev.6 
Page 8 Supporting Table DS:5 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1999-2001) 
 
Product-Specific Aggregate Measuremen ts of Support:  Market Price Support 
Million Saudi Riyals  
Description  of 
Basic products Calendar year Measure 
type (s) Applied 
administered 
price (SR/T) External 
Reference 
price (SR/T)3 Eligible 
Production 
(Tons) Associated 
fees/levies Total Market 
price support 
Million (SR/T) Data sources 
1 2 3 4 5 6 7 8 
((4-5)*6)-7 9 
Wheat 1999 
2000 
2001 
 
Average Market 
price support 1,500 
1,500 
1,500 
 
1,500 482.44 
547.50 
543.75 
 
524.56 1,796,540.00 
1,760,000.00 
1,768,000.00 
 
1,774,846.67  1,828.09 
1,676.40 
1,690.65 
 
1,731.71 GSFMO 
Barley 1999 
2000 
2001 
 
Average  1,000 
1,000 
1,000 
 
1,000 363.85 
469.20 
477.66 
 
436.90 76,342.00 
100,000.00 
126,000.00 
 
100,780.67  48.57 
53.08 
65.81 
 
55.82 GFSMO 
 
 
  
                                                      
3 World Prices C.I.F. Jeddah  
  WT/ACC/SPEC/SAU/1/Rev.6
 Page 9Supporting Table DS:6 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1999-2001) 
 
Product-Specific Aggregate Meas urements of Support:  Non-Exempt Direct Payments 
Million Saudi Riyals 
Description 
of basic  
product Calendar 
year 
 Measure 
type(s) Applied 
Administe-
red price External 
Reference 
Price Eligible 
Production 
 Total price 
related direct 
payments Other non- 
Exempt 
direct 
Payment Associated 
fees / levies Total direct 
Payments 
 Data 
Source 
1 2 3 4 5 6 7 
((4-5)*6) 8 9 10 
(7+8-9) 11 
Dates 1999 
2000 2001 
 
Average      28.78 
22.62 14.59 
 
22.00  28.78 
22.62 14.59 
 
22.00 MOA 
  
 WT/ACC/SPEC/SAU/1/Rev.6 
Page 10 Supporting Table DS:7   
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1999-2001) 
 
Product-Specific Aggregate Measurements  of Support:  Other Product Specific Support and Total Pr oduct-Specific AMS 
 
Million Saudi Riyals 
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 
Subsidy4: 
 
(a)   Domestic  
        Barley   1999 
2000 2001 
 
Average     - 2 . 7 6  
6.92 9.79 
 
4.65   -2.76 
6.92 9.79 
 
4.65 Annex 2 
(b)   Imported  
        Barley 1999 
2000 
2001 
 
Average     -209.67 
276.80 
411.60 
 
159.58   -209.67 
276.80 
411.60 
 
159.58 Annex 2 
Poultry Feed 
(imported corn and 
soybean)5 1999 
2000 
2001 
 
Average     142.31 
383.91 
268.26 
 
264.83   142.31 
383.91 
268.26 
 
264.83 Ministry of 
Finance and 
National 
Economy 
Palm trees 1999 
2000 2001 
 
Average     6.57 
7.53 
12.73 
 
8.91   6.57 
7.53 
12.73 
 
8.91 MOA 
                                                      
4 For calculation, see methodological note (Annex 2). 
5 For calculation, see methodological note No. 7.  
  WT/ACC/SPEC/SAU/1/Rev.6
 Page 11Supporting Table DS:8 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar  years (1999-2001) 
 
Product-Specific Equivalent Measurements of Support 
 
Million Saudi Riyals 
Descrip- 
tion of 
basic 
products Calendar 
Year Measure 
type(s) Applied 
administe-
red price Production 
eligible to 
receive the 
applied 
adminis-
tered price Market 
price 
support 
budgetary 
outlays Equivalent 
measure- 
ment of 
support 
(include 
calculation 
details) Non- 
Exempt 
Direct 
Payments Other 
Product- 
Specific 
Support Associated 
Fees/ 
levies Total 
Monetary 
Value of 
Equivalent 
Commit- 
ment 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.6 
Page 12 Supporting Table DS:9 
DOMESTIC SUPPORT:  Saudi Arabia 
REPORTING PERIOD:  calendar years (1999-2001) 
 
Non-Product-Specific Aggregat e Measurements of Support 
Million Saudi Riyals 
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 
  
Data 
Sources 
1 2 3 4 5 6 7 
(a)   Agricultural    
       Subsidies6 1999 
2000 
2001 197.36 
228.96 
249.88   197.36 
228.96 
249.88 Saudi Arabian 
Agricultural Bank 
(SAAB) 
(b)  Fuel7 1999 2000 2001 -154.37 
1,742.90 1,861.42   -154.37 
1,742.90 1,861.42 Ministry of Petroleum 
and MOA 
(c)   Opportunity  
       cost for  
       agricultural         Loans
8 1999 
2000 
2001 42.92 
63.27 
50.15   42.92 
63.27 
50.15 Saudi Arabian 
Agricultural Bank 
(SAAB) 
(d)  Bad Debts for  
       agricultural 
       loans9 1999 
2000 
2001 521.85 
500.64 
507.08   521.85 
500.64 
507.08 Saudi Arabian 
Agricultural Bank 
(SAAB) 
Total  
non-product-specific 1999 
2000 2001 
 
Average 607.76 
2,535.77 2,667.65 
 
1,937.06   607.76 
2,535.77 2,667.65 
 
1,937.06  
                                                      
6 Agricultural Subsidies which are paid through the Agricultural Bank and the Ministry of Agriculture. 
7 For calculation, see Methodological Note No. 11. 
8 For calculation, see Methodological Note (Annex 1). 
9 For calculation, see Methodological Note No. 12.  
  WT/ACC/SPEC/SAU/1/Rev.6
 Page 13Supporting Table ES:1 
EXPORT SUBSIDIES :  Saudi Arabia 
REPORTING PERIOD:  calendar years (1999-2001) 
 
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 
 
NIL 
 
  
 WT/ACC/SPEC/SAU/1/Rev.6 
Page 14 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 fo r the Agricultural 
sector as outlined in document (WT/ACC/4). 
 
1. The figures are expressed in Saudi Riyals, where the excha nge rate has been fixed at US$ 1 = SR 3.75 since 1986. 
 2. Saudi Chinese Cooperation: In the context of these programs, sp ecialists from China are contracted with in order to work in the Ministry of Agriculture. 
Similarly, Saudis are sent to these countries to gain experience. In addition, laboratory equipm ent is provided to support thes e programs. 
 3. In determining eligible production for wheat and barley, it excludes 5% impurities and 5% Zakat from total production. The r atio of 5% impurities 
represents a general average based on samples analysis drawn random ly from wheat and barley received by GSFMO. The ratio of 5% Zakat is 
determined according to Islamic Rules (thi s percentage of Zakat is limited only on fa rming and differs from the normal Zakat on  all kinds of money 
which is 2.5%). 
 
4. The applied administered price of whea t has been fixed at SR 1500/ton (or US$400) since 1995. During the same period, the ad ministered price of barley 
has been fixed at SR1000/ton (or US$266.67). 
 5. External reference prices of wheat are expressed as CIF Jedda h. These reference prices are determined as a sum of (Export pr ice of US Hard Winter 
Ordinary Protein, FOB US Gulf Ports) + Ocean Freight to Egyp t (Alexandria) + US$3/ton as estimated freight from Alexandria to J eddah. (Source: Food 
Outlook of the Food and Agriculture Organization of the UN, No 5, December 2002). 
 6. The external reference price for barley  is calculated as the annual average of effective import prices for barley imported b y GSFMO during the period 
1999-2001. 
 
7. The subsidy for poultry feed during the period 1999-2001 is a fi xed amount of SR 200 per ton paid by the Ministry of Finance  and National Economy on 
corn and soybean cake used by poultry producers. The main sour ce for these two items is imports because there is no local produ ction.  
 8. Agricultural subsidies which are included in Supporting 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: 
-  50 per cent of the price fixed by the Ministry of Agriculture for irrigation engines and pumps. 
-  45 per cent of the price fixed by the Mini stry of Agriculture for farm machinery. 
-  30 per cent of the cost of poultry and dairy farms equipments. 
 9. The support for palm trees is equal to SR 50 per each palm tree subject to a minimum of 30 trees at certain planting conditi ons. 
  
  WT/ACC/SPEC/SAU/1/Rev.6
 Page 1510. The opportunity cost for agricultural lo ans represents the amount of medium term loans granted by the Saudi Arabian Agricul tural Bank (SAAB) 
multiplied by the average commercial interest  rates because SAAB does not charge inte rest on the granted loans  (Annex 1). 
 
11. The data for fuel are calculated on the basis of the estimate d quantity of fuel used in the agricultural sector times the d ifference between the world fuel 
price and the domestic whole sales fuel price. 
 12. Bad Debts for Agricultural Loans represent due balances carri ed forward for several financial years divided by 10. These am ounts are based on 10-years 
average because medium - term loans are extended for a period of 10 years.  
 
13. Calculation of livestock feed subsidy (Annex 2) : the amount of subsidy per ton on domestic and imported barley is the diff erence between the reference 
price and the price paid by the domestic livestock produ cers. The calculation of this subsidy is as following: 
  (i)  For domestic barley:  DFBS   =  (E - P) * D , where : 
   DFBS  :  Domestic feed barley subsidy 
   E : External reference price ( = World price C.I.F Jeddah).    P : Price paid by livestock producers for barley    D : Eligible production which equal to total production - (5% impurities + 5% Zakat).  
 (ii) 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).    I : Quantity of Imported barley.  
 The total amount of livestock feed subsidy is therefore equal to the sum (DFBS + IFBS) .  
 WT/ACC/SPEC/SAU/1/Rev.6 
Page 16 ANNEX 1   
 
The Opportunity Cost For the Medium Term Loan s Granted by the Saudi Arabian Agricultural Bank 
REPORTING PERIOD:  calendar years (1999-2001) 
 
Year Amount of Medium Term loans 
Million Saudi Riyals Average Interest  
Rate % Opportunity cost   
Million Saudi Riyals 
1999 
2000 
2001 
 
Average 667.31 
922.78 
1,233.34 
 
941.14 6.432 
6.856 
4.066 42.92 
63.27 
50.15 
 
52.11 
 
Sources:  1. Saudi Arabian Agricultural Bank (SAAB). 
 2. Saudi Arabian Monetary Agency (SAMA). 
 
   
  WT/ACC/SPEC/SAU/1/Rev.6
 Page 17ANNEX 2 
 
Calculation of livestock feed subsidy 
REPORTING PERIOD:  calendar years (1999-2001) 
 
Description  of Basic 
products Calendar  year Measure 
Type (s) Applied 
administered 
price (US$/T) Reference 
price(US$/T) 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 barley 1999 
2000 2001 
 
Average  
 400 
400 400 
 
400 368.58 
469.20 477.66 
 
437.66 5,800,000 
4,000,000 5,300,000 
 
5,033,000  -209.67 
276.8 411.6 
 
159.58 GSFMO 
b.  Domestic barley 1999 
2000 2001 
 
Average  400 
400 400 
 
400 368.58 
469.20 477.66 
 
437.66 76,342 
100,000 126,000 
 
100,780.67  -2.76 
6.92 9.79 
 
4.65 GSFMO 
  
 WT/ACC/SPEC/SAU/1/Rev.6 
Page 18 ANNEX 3 
 
Calculation of De Minimis for some products 
REPORTING PERIOD:  calendar years (1999-2001) 
 
Product Name Product Value 
(1999-2001) 
Average (Million SR) Product Support 
(1999-2001) 
Average (Million SR) AMS 
(per cent) Comments 
Wheat 2,963.44 1,731.71 58.4 %  
Barley 180.57 55.82 30.91 %  
Livestock Feed 1,765.01 164.23 9.4 % De Minimis 
Poultry 3,999.93 264.83 6.6 % De Minimis 
Dates 4,876.18 22.00 0.5 % De Minimis 
Palm Trees 4,876.18 8.91 0.2 % De Minimis 
Non-Product-Specific 35,041.33 1,937.06 5.5 % De Minimis 
 
 
__________ 
 
 