RESTRICTED
WORLD TRADE WT/ACC/SAU/28
23September 1997
ORGANIZATION(97-3869)
Working Party ontheAccession Original: English
oftheKingdom ofSaudi Arabia
ACCESSION OFTHE KINGDOM OFSAUDI ARABIA
Communication from Saudi Arabia
TheMinistryofCommerceoftheKingdomofSaudiArabiahassubmittedthefollowingproposals
onflexibility.
_______________
Upon accession totheWorld Trade Organization, theKingdom ofSaudi Arabia willassume
obligations andacquire rights under theMarrakesh Agreement Establishing theWTO, theGATT 1994
andtheMultilateral Agreements attached totheWTO Agreement. However, inassuming obligations,
theKingdom ofSaudi Arabia willneedthefollowing flexibilities :
1. DOMESTIC SUPPORT TOAGRICULTURE
(a) Proposal: Saudi Arabia would reduce domestic support toagriculture by13.3percentover
aperiod oftenyears. Deminimis percentage forSaudi Arabia willbe10percent.
(b) Justification: Saudi Arabia hasalowagricultural basewithdifficult environmental conditions
forsustenance ofagriculture. Support toagriculture isneeded inorder toprovide adequate standards
ofliving totherural population andtodiscourage people from abandoning thelandandmoving to
urban areas.
(c) Time-period: Thereduction insupport would bemade overaperiod oftenyears from the
dateSaudi Arabia joins theWTO.
(d) Action intheinterim: TheGovernment oftheKingdom ofSaudi Arabia willbecarrying out
areview ofitsagricultural policy, including thepolicy ofdomestic support toagriculture.
2. IMPLEMENTATION OFTHE CUSTOMS VALUATION AGREEMENT
(a) Proposal: Theprovisions ofparagraphs 1and2ofArticle 20oftheAgreement onCustoms
Valuation should beavailable totheKingdom ofSaudi Arabia.
(b) Justification: TheKingdom ofSaudi Arabia would needadequate timetoprepare newlaws,
newregulations, newguidelines andadministrative procedures forimplementing thecomplex provisions
oftheCustoms Valuation Agreement. Itwould alsoneedadequate timetotraintheCustoms staff,
theimporters andthecustoms clearing agents intheimplications andapplication ofthenewlaws,
regulations andprocedures made inaccordance withtheCustoms Valuation Agreement.WT/ACC/SAU/28
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(c) Time-period: Saudi Arabia would needfiveyears from thedateofitsaccession totheWTO
toimplement theprovisions oftheAgreement onCustoms Valuation.
(d) Action intheinterim: Progressive implementation oftheCustoms Valuation Agreement would
beinitiated aftertheKingdom joinstheWTO. Thetaskofdrafting thenewlegislation willbecompleted
during thefirsttwoyears ofSaudi Arabia 'smembership. Inthethirdyear, administrative guidelines,
procedures andmanuals would beprepared fortheproper application ofthecustoms valuation laws.
InthethirdandfourthyearsofSaudiArabia'smembership,amassiveprogrammeoftrainingthecustoms
staff, theimporters andcustoms clearing agents would beundertaken. Inthefifthyearofmembership,
theprovisions oftheproposed newlawswould beimplemented onanexperimental basis tofindout
potential difficulties andwithaviewtofamiliarizing thecustoms staff, clearing agents
3. USEOFMINIMUM VALUES FOR CUSTOMS PURPOSES
(a) Proposal: TheKingdom ofSaudi Arabia would make areservation under paragraph 2of
Annex IIItotheAgreement onCustoms Valuation tocontinue theuseofminimum values forahandful
ofproducts nowunder thissystem.
(b) Justification: Saudi Arabia would ultimately discontinue thesystem, butitwould need a
transitional timeforthispurpose asitwould havetostudy carefully theimplications ofthechange,
andtodevise procedures forchecking practices which necessitate theuseofminimum values.
(c) Time-period: Theflexibility would beneeded fortwoyears fromthedateSaudi Arabia starts
applying theprovisions oftheCustoms Valuation Agreement.
(d) Action intheinterim: Saudi Arabia would undertake acareful study inthefirstyearof
implementation todevise procedures fordiscontinuing theminimum values.
4. RESERVATIONSUNDERPARAGRAPHS3AND4OFANNEXIIITOTHEAGREEMENT
ONCUSTOMS VALUATION
(a) Proposals: TheKingdom ofSaudi Arabia would make areservation under paragraphs 3and4
ofAnnexIIItotheCustomsValuationAgreementintermsofthelanguagecontainedinthoseparagraphs.
(b) Justification: Since theCustoms Administration ofSaudi Arabia hasnotreached thelevelof
sophistication andexpertise ofdeveloped countries, itwould notbepossible forittoapply therelevant
provisions oftheCustoms Valuation Agreement.
(c) Time-period: Thereservation would continue tobeapplicable foranindefinite period.
(d) Action intheinterim: After Saudi Arabia starts implementation oftheCustoms Valuation
Agreement, itwould undertake studies toconsider ifitisfeasible toliftthereservations.
5. IMPLEMENTATION OFTHE TRIPS AGREEMENT
(a) Proposal: TheKingdom ofSaudi Arabia would availofthetransitional period offiveyears,
under paragraph 2ofArticle 65oftheAgreement onTRIPS, toapply theprovisions oftheAgreement.
(b) Justification: Athorough revision oftheexisting lawsandregulations onintellectual property,
anddrafting andenacting ofnewlawsandregulations, would beatimeconsuming process. After
thelawshavebeenwritten, numerous administrative guidelines andprocedures willhavetobedrafted
andputinplace. Ontopofthat,lawsandprocedures forenforcement ofintellectual property rightsWT/ACC/SAU/28
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willhavetoberevised/drafted. Thestaffwillhavetobetrained thoroughly intheapplication and
enforcement ofintellectual property laws.
(c) Time-period: TheKingdom ofSaudi Arabia willapply theprovisions oftheTRIPS Agreement
afterfiveyears from thedateitbecomes amember oftheWTO.
(d) Action intheinterim: Inthefirsttwoyears afterjoining theWTO, theGovernment ofthe
Kingdom ofSaudi Arabia would undertake thedrafting ofnewlawsandregulations onintellectual
property rights andtherevision ofexisting lawsandregulations. Inthethird yearofmembership,
administrativeguidelines,proceduresandmanualswouldbepreparedfortheapplicationandenforcement
oflawsandregulations. Inthethirdandfourth years ofmembership, officials andstaffofdifferent
Ministries andAgencies would bethoroughly trained intheapplication andenforcement oflawsand
ingetting fullyfamiliar withtheadministrative guidelines andprocedures. InthefifthyearofSaudi
Arabia 'smembership, thenewintellectual property laws andprocedures willbeapplied onan
experimental basistofindanyflaws ordifficulties thatmaybeencountered. Finally, fiveyears after
thedateofSaudi Arabia 'saccession totheWTO, itwillformally apply thefullprovisions oftheTRIPS
Agreement.