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WORLD TRADE ORGANIZATION ORGANISATION MONDIALE DU COMMERCE ORGANIZACIÓN MUNDIAL DEL COMERCIO

WT/TPR/M/256/Add.1 6 March 2012

(12-1258)

Trade Policy Review Body 25 and 27 January 2012

Original: English/ anglais/ inglés

TRADE POLICY REVIEW

KINGDOM OF SAUDI ARABIA

Record of the Meeting

Addendum

Chairperson: H.E. Mr. Mario Matus (Chile) H.E. Mr. Eduardo Muñoz Gómez (Colombia) This document contains the advance written questions, and replies provided by the Kingdom of Saudi Arabia.1 __________________________________________________________________________________

Organe d'examen des politiques commerciales 25 et 27 janvier 2012

EXAMEN DES POLITIQUES COMMERCIALES

ROYAUME D'ARABIE SAOUDITE

Compte-rendu de la réunion

Addendum

Président: S.E. M. Mario Matus (Chili) S.E. M. Eduardo Muñoz Gómez (Colombie) Le présent document contient les questions écrites communiquées à l'avance et les réponses fournies par le Royaume d'Arabie saoudite.1

__________________________________________________________________________________

Órgano de Examen de las Políticas Comerciales 25 y 27 de enero de 2012

EXAMEN DE LAS POLÍTICAS COMERCIALES

REINO DE LA ARABIA SAUDITA

Acta de la reunión

Addendum

Presidente: Excmo. Sr. Mario Matus (Chile) Excmo. Sr. Eduardo Muñoz Gómez (Colombia)

En el presente documento figuran las preguntas presentadas anticipadamente por escrito, junto con las respuestas facilitadas por el Reino de la Arabia Saudita.1

1 In English only./En anglais seulement./En inglés solamente.

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REPLIES PROVIDED BY THE KINGDOM OF SAUDI ARABIA INDIA Questions Regarding the Secretariat Report Page 37, para. 62 Saudi Arabia has been an observer at the Government Procurement Agreement since December 2007 but is yet to begin negotiations for membership. Question 1 Saudi Arabia is requested to indicate the time frame, if any, in which it might be seeking to join the GPA. Answer The Kingdom of Saudi Arabia welcomes the successful deal reached by parties to the plurilateral Government Procurement revised agreement. The Saudi national committee intends to translate the new agreement into the Arabic language, to study it carefully and comprehensively, and to consult widely both within the Government and with the private sector. The Kingdom of Saudi Arabia would be grateful if the WTO Secretariat could organize for Saudi officials a national seminar and workshop on the WTO Government Procurement Agreement. This would greatly help us in our examination of the issue in the light of the new agreement. Saudi Arabia has listed this request in the Annex to the Government report as a technical assistance need of Saudi Arabia. We hope that this request can be met during the first half of 2012. After the completion of the workshop and the examination of the new agreement by Saudi officials, a recommendation will be made to the ministerial committee, which will determine appropriate steps with respect to the commencement of the accession negotiations. Page 3, para. 6 The WTO Secretariat report mentions that Saudi Arabia is taking steps to diversify the economy and modernize revenue calculation. Question 2 What are the steps being taken? India would appreciate if Saudi Arabia could share its experiences and achievements. Answer Diversification of the economic base is a primary goal for economic development in Saudi Arabia. It is a necessary condition for building a stable modern economy. Diversification is based on a broad range of economic resources and characterized by a high degree of internal integration, embodied in close interrelationships among various sectors and activities. Diversification should be based on the market mechanism and the competitiveness of the Saudi economy. A cornerstone of sustainable development and economic diversification in the Kingdom of Saudi Arabia is investment. Hence, steps have been taken to diversify the economy in the Kingdom, including the improvement in the investment climate and the elimination of obstacles to investments in Saudi Arabia. There has been a marked increase in the share of Foreign Direct Investments (FDI) attracted by the Kingdom and the industry sector acquired the biggest share of the cumulative balance of FDI. It is also important not only to increase the contribution of non-oil sectors, but also reform the productive structures of these sectors by diversifying their productive activities. To achieve tangible progress in diversifying the economic base, there will be intensified efforts to reform productive structures and diversify productive activities in industries with competitive

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advantages, such as (i) petrochemicals and energy-intensive industries; (ii) high-tech and capital-intensive industries, such as mining and pharmaceuticals, which contribute effectively to the transition to a knowledge-based economy; and (iii) capital goods industries, such as the manufacturing of metal products, machinery, equipment and electrical appliances. Furthermore, small and medium enterprises (SMEs), and export-oriented manufacturing industries should be strengthened and developed. Page vii, para. 5 and page 2, para. 3 Saudi Arabia's economy is highly dependent on international trade. The Secretariat report mentions that since the mid 1990s, Saudi Arabia has been implementing a development strategy aimed at, inter alia, reducing its high dependence on crude oil. Question 3 Please elaborate how this strategy has affected production and exports of crude oil. Answer The Kingdom's economic diversification strategy has not affected production and export of crude oil. This is made clear in section IV.2(iii) of the Secretariat's report. Page 53, table IV.I The table shows a steep fall in area under cultivation and production of grain. Question 4 What are the reasons for this decline? Answer The reason behind the significant drop in grains production is mainly due to a Government decision to terminate Saudi Arabia's production support policy for wheat gradually within 8 years, as part of a water saving strategy. Thereafter, the Kingdom would be fully dependent on imports by 2016. Page x, para. 20 The WTO Secretariat report mentions that Saudi Arabia is trialing solar thermal and other sustainable electricity generation methods. Question 5 What is Saudi Arabia's long-term strategy towards harnessing sustainable new and renewable energy sources, particularly the solar energy? Answer For its long-term strategy, the Government of Saudi Arabia created the King Abdullah City for Atomic and Renewable Energy (K.A.CARE) by Royal order # (A/35) on Apr. 17, 2010. K.A.CARE contributes to a sustainable future for Saudi Arabia by developing an alternative energy capacity that is substantial in size and supported by a world-class local industry. Shaped by science and research, and brought to life through technology development and industry partnerships, the Kingdom is building a new generation of sustainable power production capabilities that harness renewable and atomic energy to create a reliable, and long-term supply of electricity. Page 38, para. 64 Saudi Arabia maintains six-month wheat reserve stocks to face emergency situations. Question 6 Saudi Arabia is requested to provide further details of its wheat stocking operations to face emergency situations.

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Answer To meet the emergency situation related to stocking operations, GSFMO has established grain storage at more than 11 locations. Our stock is operated and monitored through a:

Pre-cleaning system; Aeration system; Temperature control system; and Fumigation system.

All the locations provide wheat to flour mills as per requirements. Questions regarding the Government Report Page 23 (Annex: Technical Assistance Needs of Saudi Arabia) Saudi Arabia has shown interest in receiving Technical Assistance in certain specified areas of its engagement with the WTO. It indicates which areas it would be seeking WTO assistance and in what manner, but does not indicate what kind of engagement it wants to have with other members. Question 7 Saudi Arabia is requested to indicate the exact nature of engagement that other members can have with it in the areas of technical assistance specified by it. Answer Saudi Arabia has identified a need for technical assistance from the WTO Secretariat in its Government Report at page 23. Page 12, para. 65 Saudi Arabia has reached a high "self-sufficiency" rate for some crops such as potatoes (161%), eggplants (102%), cucumbers (101%), watermelons (115%), table eggs (112%), fresh milk (105%) and dates (105%). The Kingdom has also achieved good rates for other crops such as okra (99%), carrots (79%), tomatoes (72%), and grapes (83%). It has also achieved low rates for other animal products such as red meat (38%) and poultry meat and fish products (48%). Question 8 Paragraph 65 of the Government report talks of self-sufficiency in certain crops. How is this estimated? Answer The formulas for calculating the self-sufficiency ratio for each agricultural product is as shown below. Self-sufficiency rate = domestic production / quantity available for domestic consumption x 100. Other Questions Reference No., title and date of law, decree, regulation, etc. WTO document no. G/AG/N/SAU/4 dated 19 April 2011 (Notification on Domestic support) Description and specific information Saudi Arabia provides non-product specific support to agriculture sector under the subheading (1) General agricultural subsidies, (2) opportunities cost for interest free agricultural loan and (3) bad debts for agricultural loans (WTO document no. G/AG/N/SAU/4 dated 19 April 2011). The methodological note on General subsidies explains that these subsidies are provided to all agricultural

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products. However, it did not put light on the various components (like fertilizer subsidy or water subsidies etc.) of "General subsidies". Question 9 Saudi Arabia is requested to explain about various components of general subsidies. Answer General agricultural subsidies notified in WTO document No. G/AG/N/SAU/4 dated 19 April 2011 (Notification on Domestic support) are under the non-product specific support category and provided to all agricultural products. These subsidies included government grants to assist farmers in purchasing production inputs such as engines, irrigation pumps, irrigation systems, agricultural machinery, poultry equipment and dairy production equipment. Other inputs such as fertilizers, seeds and pesticides are not subsidized. There are no water subsidies of any kind granted to the agriculture sector. Question 10 Does the Saudi Government provide support to the agriculture sector? If so, in what way? Answer Yes. The Kingdom of Saudi Arabia is providing support to the agricultural sector in the following forms:

Market price support (wheat); Fixed amount of subsidy for specific products (dates); Fixed amount of subsidies for some agricultural inputs; Agricultural interest-free loans; and General agricultural services.

Detailed information is in the latest WTO document G/AG/N/SAU/6 dated 13 September 2011 on domestic support as notified by Saudi Arabia. Question 11 What are Saudi Arabia's major interests or concerns in the Doha Round of trade negotiations? Answer Saudi Arabia has been engaged in many aspects of the Doha Development Agenda negotiations. The Kingdom's major interests or concerns include the following:

Saudi Arabia has been engaged in the negotiations on the environment under Paragraph 31 of the Doha mandate. It submitted to the Committee on Trade and Environment in Special Session (CTESS) a proposal pursuant to Paragraph 31(iii). Saudi Arabia's proposal has a technology drive and focuses on environmental goods that are components of key technologies for the environment: carbon capture and storage (CCS), gas flaring reduction and efficient consumption of energy technologies. Saudi Arabia's proposal has been circulated to Members in documents JOB(09)/169, Add.1 and 2.

Saudi Arabia has also been engaged in the CTE discussions under Paragraph 32 of the Doha mandate, where it raised its concerns regarding trade barriers (NTBs) to the dissemination of key technologies on commercial basis for the environment. In an effort to enhance Members' understanding of this key issue, Saudi Arabia recently submitted a proposal to the CTE for a workshop on technology dissemination issues related to CCS technologies.

In the Rules negotiations, Saudi Arabia has been involved in many aspects of the subsidies negotiations and provided input to ensure that any proposed amendments to the SCM

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Agreement would be balanced and objective and would not negate Members' natural comparative advantages. Saudi Arabia has also worked to ensure that proposed amendments to the Anti-Dumping Agreement on dumping calculation methodologies do not unfairly discriminate against exporting members.

In the Non-Agricultural Market Access (NAMA) negotiations, Saudi Arabia has actively engaged in the discussions to help ensure that any agreement would be balanced, would take into account the interests of developing countries and would not entail any additional commitments for Recently Acceded Members such as the Kingdom, in line with the Hong Kong Ministerial Declaration.

The Kingdom also attaches great importance to the negotiations on trade facilitation. Saudi Arabia's main concern with the draft negotiating text (TN/TF/W/165/Rev.11) relates to Article 11 on Freedom of Transit, and more specifically to the application of transit disciplines on fixed infrastructure including pipelines. The Kingdom clarified, with support from other WTO Members, that pipeline transport has particular characteristics that make it necessary to ensure that the application of transit rules does not disrupt the normal conduct of pipeline transportation or undermine the rights of the owners and operators of pipelines to conduct their business on normal commercial principles. Saudi Arabia has made a textual proposal to address this point, which has been incorporated in brackets as Article 11 paragraph 1bis in the draft negotiating text. Saudi Arabia's participation has also sought to ensure that the Trade Facilitation Agreement's provisions on transit do not infringe on Members' sovereign rights, and that "general use by third parties" does not include access to infrastructure granted on a contractual basis.

Question 12 What is Saudi Arabia's position on regional and bilateral trade agreements and how does it view the current stalemate in the Doha Round? Answer As a member of the Gulf Cooperation Council, Saudi Arabia is of the view that trade liberalization at the regional level, carried out in conformity with WTO requirements, can be a valuable stimulus to economic growth and welfare, both among regional partners and with the broader WTO membership. Nevertheless, Saudi Arabia is also convinced of the necessity for multilateral liberalization, and does not regard regional and bilateral agreements as a preferable or sufficient alternative to it. Like other WTO Members Saudi Arabia regrets the current impasse in the Doha Round. Saudi Arabia has been an active participant in the Round, submitting negotiating proposals in several Negotiating Groups, as discussed above, and it will be ready to do so again when multilateral negotiations are resumed. Question 13 Food security is a major concern for Saudi Arabia. What are the steps being taken on this front? Answer In addition to the traditional policy of supporting local production, the most recent step taken in this regard is the initiative by King Abdullah - Agricultural Investment Abroad. Please see details at page 55, para. 7.

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Question 14 Saudi Arabia has supported the exemption of the World Food Programme's humanitarian food purchases from export restrictions. What in Saudi Arabia's view are the factors affecting global food security? Answer Factors affecting global food security include the following:

Restrictions on exports of agricultural primary products imposed by some major exporting countries.

Decline in world production of agricultural products, particularly grains. Market speculation, especially by big companies and investors. The absence of an effective and advanced early warning information system, that (i)

determines the areas of risk before they occur, (ii) provides data and information on supply, and (iii) predicts global conditions for agriculture and food production.

Increasing trade protectionism. Diverting more land for biofuels. Population growth. Economic prosperity and demand increasing.

PAKISTAN

TRADE POLICIES BY SECTOR Agriculture At page 55, para. 7, the Secretariat report states that the King Abdullah Agricultural Initiative aims to improve long term food security by enabling private Saudi businesses to invest in agricultural projects, including fisheries in other countries. Question 1 Could Saudi Arabia share the details of this initiative? Besides, which countries are being focused by Saudi Arabia for investments under this Scheme? Answer Against the backdrop of the recent world food crisis that affected many countries, especially developing countries, and in light of the scarcity of water and other natural resources, more attention is paid by the Government of Saudi Arabia to food security issues. The main objective of "King Abdullah Agricultural investment initiative abroad" is to provide active contributions to achieve food security not only at the national level but also at the international level to enhance global food security. The initiative aims to prevent or at least to reduce the impact of shortages of food and agricultural commodities and to minimize the excessive risk of world price volatility by ensuring sufficient and sustainable supply to meet the increasing demand on food and primary agricultural products. The initiative aims to build an integrated partnership with a number of countries in the world. This initiative also has a humanitarian aspect as it aim to increase food production in the world as part of the production is allocated to the host country for its own food security. In this regard, as also referred to in paragraph 7 on page 55, there are no countries specified. However, any country that has great agricultural potential, available resources and attractive investment regulations could be targeted.

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Fisheries Page 58, para. 29 Saudi Arabia has a developing fish farming industry, as part of the Government 's efforts to promote food self-sufficiency and sustainability. However, as shown in table II.2 (page 19), this sector is not open for foreign investment. Question 2 Is there a plan to allow FDI in this sector? Answer The entire fish farming industry is open for FDI except capture fishing due to low quantities of fish in Saudi territorial waters. This sector is still on the Negative List. Manufacturing Page 69, para. 88 The Secretariat report states that "the positive tariff escalation in some industries e.g. textiles and apparel, and wood products, reflects relatively high effective rates of protection, which somewhat impede Saudi Arabia's export competitiveness of those manufactured products." Question 3 Are there any plans to address this issue? Answer A decision by the Supreme Council for the Cooperation Council for the Arab Gulf States was issued during the thirty-second session held in Riyadh in December 2011 in order to resolve outstanding issues that hindered reaching the final status of the customs union. Among the issues is the disparity in customs duties on certain goods in excess of 5%. Customs Union Port was assigned to investigate this matter within a binding timeframe to reach the final status of the customs union by 1 January 2015. Thus, the difference in customs duties on certain goods still exists. The number of such goods is "565" accounting for 7% of the total value of imports, according to 2010 statistics. Services Page 74 Services is a key component of Saudi Arabia's efforts to diversify its economy away from the traditionally dominant oil and hydrocarbons sectors. Table 1.3 (Balance-of-Payments, 2005-10) reflects that the Saudi Arabia's Balance of Payments position has deteriorated from US$21,694 million to US$66,089 million, especially in the transportation, travel and government services. Question 4 What steps is Saudi Arabia taking to improve its BOP position in services? Answer The increase in the service deficit is due to growth in domestic consumption. The average growth rate of domestic consumption during 2005-2010 was about 13%. However, Saudi Arabia continues to further diversify its economy. In this respect, the non-oil sector GDP in current prices registered an average growth rate of 7.8% during 2005-2010. Moreover, during the same period, the Balance of Payments statistics showed that transportation export, and travel services receipt recorded an average growth of 4.5 and 8.2% respectively.

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Services (Overview) Para. 113 During 2005-10, SAMA introduced new prudential and regulatory requirements, as well as procedures to enhance capital adequacy, liquidity and risk management, among others. Question 5 How far the new prudential and regulatory requirements were instrumental in preventing the spread of contagion resulting from the global crisis into the Saudi's banking sector? Answer The Saudi banking sector has been well guarded against the spread of contagion resulting from the global crisis as shown by the following indicators: the liquid assets ratio reached 34% at the end of 2010, the capital adequacy ratio is currently high at 17.1% and the stress tests conducted recently also demonstrate that Saudi banks are sound and well-equipped to withstand any shocks. UNITED STATES WT/TPR/G/256 Pages 10 and 11, paragraphs 50-53 Question 1 Please provide further detail on how the elements of the review process of the GCC Common Law on Anti-Dumping, Countervailing and Safeguard Measures (GCC Common Law) was conducted with regards to its implementation into Saudi Arabia's laws. Answer The amended GCC Common Law will be ratified by KSA National Authorities and will be published in the Saudi Official Gazette upon its implementation in Saudi Arabia. If there is a discrepancy between the GCC Common Law and Saudi Arabia's national laws, which law will prevail? Answer There will be no discrepancy between the laws because the amended GCC Common Law will be ratified by Saudi National Authorities and will be published in the Saudi Official Gazette. According to the GCC Common Law, would an antidumping, countervailing duty or safeguard measure apply to imports into all members of the GCC or may such measures be applied only to imports into certain members of the GCC? Answer The Implementing Regulation stipulates that, as a rule, anti-dumping, countervailing duty and safeguard measures apply to all imports into the GCC. However, the application of anti-dumping, countervailing and safeguard measures may be limited to one or several member States of the GCC, as per the exceptions provided in the Implementing Regulation. Page 11, paragraph 56 The Government states in its report that it "recognizes its commitment" to begin negotiations to join the WTO Government Procurement Agreement (GPA).

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Question 2 In light of the GPA Parties' agreement on the revision of the GPA at the WTO Ministerial in December 2011, will Saudi Arabia commence its accession to the GPA in the first quarter of 2012? Answer The Kingdom of Saudi Arabia welcomes the successful deal reached by parties to the plurilateral Government Procurement revised agreement. The Saudi national committee intends to translate the new agreement into the Arabic language, to study it carefully and comprehensively, and to consult widely both within the Government and with the private sector. The Kingdom of Saudi Arabia would be grateful if the WTO Secretariat could organize for Saudi officials a national seminar and workshop on the WTO Government Procurement Agreement. This would greatly help us in our examination of the issue in the light of the new agreement. Saudi Arabia has listed this request in the Annex to the Government Report as a technical assistance need of Saudi Arabia. We hope that this request can be met during the first half of 2012. After the completion of the workshop and the examination of the new agreement by Saudi officials, a recommendation will be made to the ministerial committee, which will determine appropriate steps with respect to the commencement of the accession negotiations. Page 11, paragraph 58 Question 3 Please provide more information as to how Saudi law permits the judicial authorities to provide for costs and attorney's fees (see TRIPS Articles 45.2 and 48). Answer Prosecution before state courts is free of charge. Any Party is entitled to be represented by independent attorney. Judicial authorities have the power to indent the violator to pay the right holder prosecution fees or costs which may include appropriate attorney fees. Page 12, paragraph 61 The Government lists the fines, damages, confiscation and store closures that resulted from its review of 483 cases during 2010 by the Violation Review Committee (VRC) on Copyrights and the General Directorate of Copyright. Question 4 Were any injunctions ordered during 2010? Were there appeals of the decisions in any of the 483 cases (presumably to the Board of Grievances)? Did any of the 2010 cases involve recidivists (second offenders)? In addition, can the Government provide any statistical data for actions to address copyright infringement taken during 2011? Please provide more detail on how the results of intellectual property infringement actions, including the 483 actions referred to above, were made public within the Kingdom (See TRIPS Article 63.1). Answer 60 of the 483 Decisions of the Violation Review Committee ("VRC") were appealed before the Board of Grievances ("BoG"). The BoG upheld 58 of the VRC's decisions, and 2 decisions were revoked and returned to VRC for retrial. 40 cases in 2010 involved recidivists. Penalties and fines were increased by the Violation Review Committee in this regard. In 2011, the Copyrights department received 500 complaints, decided 364 cases, embarked on 437 violations, carried out 980 inspection raids, and ordered 4 defamation penalties and 8 injunctions.

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Fines collected exceeded SAR 1.7 million, and compensation to right holders amounted to SAR 991,000. Cases will be published shortly on the website of the Copyrights department. The VRC grants right holders access to those cases through the website of the copyrights department. In addition, right holders may attend the hearings of the VRC and can appeal its decisions. Moreover, the VRC publishes a monthly press release containing information concerning violation cases. Cases adjudicated before the BoG are published, and all hearings are open to the public. Page 18, paragraph 113 and, WT/TPR/S/256, page 80, paragraph 147 Questions 5 What is the legal status of Voice over Internet Protocol (VoIP) services in Saudi Arabia and what statistics are available on the number of users? Answer Fixed and mobile facilities-based service providers licensed to provide voice services are legally entitled to offer carrier grade Voice over Internet Protocol (VoIP) services in Saudi Arabia. (Statistics on the number of VoIP users are not available.) WT/TPR/S/256 III. TRADE POLICIES AND PRACTICES BY MEASURE (1) MEASURES DIRECTLY AFFECTING IMPORTS (i) Customs registration, documentation, procedures, and valuation Page 21, paragraph 1 Question 6 Please explain why a "Saudi commercial agent is required only to import or export agricultural machinery"? What is special about agricultural machinery? Answer This requirement ensures the agricultural machinery's compliance with the standards and specifications approved by the Ministry of Agriculture and that it is suitable for the Kingdom's environment. It also exists to require the agent to provide maintenance services, spare parts and all other necessary services, since these services must be provided by authorized agents. Page 21, paragraph 2 The Secretariat report indicates that Saudi Arabia requires a certificate of origin for all imports. Question 7 Does Saudi Arabia require certificates of origin even for those imports not applying for preferential treatment? For what reason does Saudi Arabia require certificates of origin for all imports, given that it does not apply non-preferential rules of origin (as noted in paragraph 13)? Answer A certificate of origin is required for all imports, including goods re-exported to the Saudi Arabia in order to determine the nationality of the goods. Article 25 of the Common Customs Law for the demonstration of Origin accords to the rules of origin agreed under the international economic and regional organizations with the aim of recognizing the imported goods and controlling commercial fraud and counterfeiting. Trade statistics for Saudi Arabia also depend on identifying the origin of imported goods.

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(ii) Rules of origin Page 23, paragraph 12 Question 8 Can Saudi Arabia please confirm if it has notified its preferential rules of origin to the Committee on Rules of Origin? Answer All GCC products are treated as national products according to the Agreement of Economic Cooperation of the Gulf Cooperation Council, signed on 31 December 2001 AD. As for the preferential rules of origin at the level of the Arab countries, work is underway to agree on a final version. (vi) Standards and other technical requirements (a) Standards, metrology, testing, and certification Page 32, paragraph 39 According to the Secretariat, "SASO is also in-charge of WTO notifications." Question 9 Please clarify the process for the Saudi Standards, Metrology and Quality Organization's (SASO) notification of WTO inquiries. Please explain how SASO ensures that technical regulations and standards will be notified to the WTO in draft form, will allow all interested parties sufficient time to review and comment, and will take those comments into account before finalizing any regulation or standard. Answer In case of preparing technical regulations and standards where there is no relevant international standard or where the technical content of the regulation or standard is not in accordance with the technical content of relevant international standards, and if the technical regulations and standards may have a significant effect on the trade of other countries, SASO notifies the WTO. SASO, without discrimination, allows a period of at least 60 days for concerned parties to make comments in writing and to discuss these comments upon request, and for SASO to take these written comments and the results of these discussions into consideration. Page 32, paragraph 40 The Secretariat report states that the timeframe for public comment and for implementation of regulations may be altered in the case of an emergency situation. Question 10 Can Saudi Arabia comment on what constitutes an emergency situation and what entity determines when such a situation has occurred? Answer Emergency situation is any emerging persistent problem that relates to Islamic legislation, safety, health, environment or national security. Page 33, paragraph 42 The Secretariat report states that from 1 July 2011, the Government transferred the responsibility for technical regulations and standards related to food, feed, pesticides, cosmetics, and medical devices to the Saudi Food and Drug Authority (SFDA). Previous paragraphs, however, indicate that SASO is

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still responsible for setting all products quality standards in Saudi Arabia as well as WTO notifications. Question 11 Please explain the role that SFDA and SASO play in setting food and agricultural standards, medical device regulations, as well as in WTO notifications. Answer SFDA took over the responsibilities of technical regulations and standards related to food, feed pesticides, cosmetics and medical devices which were previously assigned to different local organizations such as SASO and MOCI. SFDA has a technical committee of its own that is responsible for setting and adopting technical regulations and standards in relation to food, feed, cosmetics, pesticides, and animal food and feed. SFDA has the Saudi Codex contact point and it has a representatives, through SASO, in the International Standard Organization (ISO) and GCC standard Organization as well as Arab Industrial Development and Mining Organization (AIDMO). These responsibilities were transformed based on the memorandum of understanding which signed by both SASO and SFDA on 22 March 2011, and approved on 7 July 7 as Ministerial Decision No. 31344. SFDA for the time being is notifying the WTO through the SPS and TBT contact points of any new draft of regulations and rules related to food, feed pesticides, cosmetics and medical devices, taking into account the procedures for WTO notifications. (b) Sanitary and phytosanitary measures Page 35, paragraph 48 In instances where Saudi Arabia applies GCC SPS measures, such as in the case of the Laws on Veterinary Quarantine and Plant Quarantine, Question 12 How does Saudi Arabia notify those measures to the WTO at the draft stage, which allows WTO Members to comment and for those comments to be taken into account? Answer Saudi Arabia notifies all WTO Members about any SPS measure 60 days before it comes into force. This allows interested members time to submit their comments for further review. Page 35, Paragraph 49 We appreciate the Kingdom of Saudi Arabia's efforts to provide information on its draft and approved measures on the websites of the SFDA (www.sfda.gov.sa) and MCI (www.mci.gov.sa). In reviewing those websites, we found only the overarching law of SPS measures and lists of existing measures (http://www.mci.gov.sa/circular/54-1.asp; http://www.sfda.gov.sa/Ar/Home/Topics/regulations/). Question 13 Please identify the website where the drafts and approved SPS measures, regarding BSE, AI, etc., can be found. Answer The website of Ban and Lifting Ban Decisions were established by SFDA as indicated in the following link: http://www.sfda.gov.sa/En/Food/Topics/Ban+and+ban+lifting+decisions/. For other SPS members, the concerned website is still under construction.

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(2) MEASURES DIRECTLY AFFECTING EXPORTS (iv) Export subsidies, finance, insurance, and assistance Page 41, paragraph 75 This report notes that among the main functions of the Saudi Exports Development Authority (SEDA) are "providing incentives to exporters and incentives for marketing exports and attracting foreign investors". Question 14 What are the "incentives" that SEDA provides, particularly with respect to those noted above? Please explain these incentives in light of Saudi Arabia's obligations under Article 3 of the Subsidies Agreement not to provide subsidies contingent upon export. Answer Although the Saudi Exports Development Authority (SEDA) was established in 2007 pursuant to Council of Ministers Resolution No.59, the authority has not begun any activities. Page 41, paragraph 77 The Secretariat report provides information on a duty refund allowed under Article 16 of the Implementing Regulation of the GCC Customs Law. Question 15 How does Saudi Arabia ensure that the duty refund or drawback provided is not in excess of the duties levied on imported inputs that are consumed in the production of the exported product, as provided under item (i) under Annex I of the Subsidies Agreement? Answer As required by the provisions in item 4 of Article 16 of the executive regulations of the Common Customs Law, the customs ports matches the foreign goods to be exported or applies a drawback using the import documents. (3) MEASURES AFFECTING PRODUCTION AND TRADE (i) Incentives Page 42, paragraphs 81 – 84 These paragraphs of the Secretariat report provide information on several programs that appear to meet the criteria for notification as provided under Article 25 of the Subsidies Agreement. Question 16 When does Saudi Arabia plan to notify these programmes to the WTO in light of Article 25 of the Subsidies Agreement? Answer Saudi Arabia is going to notify any program whenever it is required to do so under Article 25 of the WTO Agreement on Subsidies and Countervailing Measures. (iv) Intellectual property rights Page 48, paragraph 100 The Secretariat indicates that Saudi Arabia has committed itself to full implementation of TRIPS. Question 17 What is the current status of implementation?

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Answer All relevant IP offices are progressively increasing their capacities in terms of human resources and improve work techniques to contribute to the acceleration of work flow. For example: - During the period from 1989-2011, 17,049 patent applications were filed, 15,652 applications

were examined and 2,815 patent certificates were granted. - For Industrial Designs,3,156 applications were submitted,2,750 applications were examined and

1,950certificate were granted. - In 2011, the Industrial Property Appeal Committee received 44 cases appealing from decisions

related to industrial property and decided on 33 cases. - Regarding trademarks, 13,240 applications were filed and 8,429 trademarks were registered in

2011. - In 2010, 3,842,742 items of counterfeiting goods were seized and destroyed, their value amounted

to over 29 million SAR. 58,465 counterfeit items were seized and destroyed over a 3 month period in 2011.

- The Board of Grievances decided 47 appeals relating to industrial property in 2010. - Regarding copyrights, about 415, 000 items were seized and destroyed and 364 cases were

reviewed in 2011. - The Customs department referred 1253 of counterfeited import shipments to the General

Department for Combating Commercial Counterfeit in 2010. Page 48, paragraph 100 and page 99 We understand that the current copyright legislation is based on the Copyrights Law, issued pursuant to Royal Decree No. M/41 of 2.7.1424H (30 August 2003) (Copyright Law of 2003) and the Implementing Regulations, issued pursuant to Ministerial Decision No. 1688/1 of 10.4.1425H (29 May 2004), as cited at WT/TPR/S/256-06, page 99. Question 18 Is the Saudi Government presently undertaking, or planning in the near future to undertake, any changes to the current copyright regime? Answer The concerned government departments periodically review its laws, regulations and enforcement efforts in order to improve the protection of IPR. However, no changes in the copyrights law are expected in the near future. Page 49, paragraph 102 and page 50, paragraph 106 The Secretariat lists the numerous conventions and treaties to which Saudi Arabia is a party. We note that the Secretariat reports that Saudi Arabia's related rights concern performers, producers of sound recordings and broadcasting organizations. Question 19 Does Saudi Arabia plan to accede to the World Intellectual Property Organization's (WIPO's) Copyright Treaty (WCT) and/or WIPO's Performances and Phonograms Treaty (WPPT)? Answer IPR treaties, including WCT and WPPT, are being reviewed by the IPR Standing Committee to evaluate the pros and cons of acceding to them. At the time of accession to the WTO, all Saudi Arabia IPR laws and regulations were brought in line with the obligations set out in the TRIPs Agreement. In 2007, the TRIPs Council reviewed all legislation related to IPR in Saudi Arabia to ensure full compliance with the provisions of the TRIPs Agreement.

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Page 49, paragraph 104 The Secretariat indicates that inventions of all fields except those that are "not contradictory to the provisions of Islamic Law or the rules of conduct" are eligible for patentability. Question 20 Please provide examples of subject matter that has been or would be prevented from patentability? Please explain these specific provisions in Saudi Law in view of the TRIPS Agreement, e.g. Article 27. Answer Article 27(2) of the TRIPS Agreement gives WTO Members the right to exclude from protection inventions whose commercial exploitation may harm order public or morality. Saudi Patent Law excludes from protection inventions which contradict public morals in Saudi Arabia and Islamic law, which is the main source of the Saudi Constitution. For example, inventions related to alcoholic beverages are not accepted for examination under Saudi patent law. Page 49, paragraph 105 The Secretariat indicates a non-exclusive compulsory license may be granted for unworked patented inventions by the Industrial Property Directorate if the applicant "proves ability to use the invention industrially, and against fair compensation to be paid to the patent holder." Several other requirements must also be met. Question 21 Please provide more detail on the requirements that must be met. Does importation of the patented invention constitute "working" the patented invention? How many, if any, requests for compulsory licenses have been made in Saudi Arabia? How many in the GCC? Answer Article 24 of Saudi Patent Law explains all cases and requirements for issuing compulsory licenses for patented inventions.

"Article Twenty Four: a. King Abdulaziz City for Science and Technology (The City) may grant a compulsory license

to a third party to exploit an invention covered by the patent or a layout design of an integrated circuit covered by a certificate of design upon an application submitted to it, according to the following: (1) The application shall be submitted after the elapse of four years from the date of filing

the patent application or three years from the date of granting the patent, whichever expires later, without the owner of the protection document exploiting his invention or having exploited it in an inadequate fashion, unless he justifies that with a legitimate excuse.

(2) The applicant for the compulsory license must prove that he has exerted -over a reasonable period of time- efforts in order to obtain a contractual license on the basis of reasonable commercial conditions, and for a reasonable financial compensation. However, this provision and the provision of the preceding paragraph do not apply where the applicant is a Government body or a person authorized by it, and the aim was to meet public interest - especially security, health, nutrition or the development other vital sectors of the national economy- or to meet a state of emergency or other very compelling circumstances, or where the aim thereof was public non-commercial purposes. In the latter case, and upon knowledge of the existence of a patent or a certificate of design, their holder shall be promptly informed.

(3) The compulsory license is basically granted to make the invention or design available in the local markets. But this provision does not apply where the aim of the license is to

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prevent or restrict practices against which a decision or judgment is issued declaring them to be acts of unlawful competition.

(4) The decision granting the license shall specify the scope and term of the license, according to the purpose for which it was granted. The license shall be subject to termination if the conditions for which it was granted cease to exist and their recurrence is not likely, with due regards to the lawful interests of the licensee.

(5) The license shall not be exclusive. (6) Each application shall be independently decided. (7) The owner of the protection document or the holder of a certificate of a design shall be

awarded a fair compensation. The Committee shall determine the amount of the compensation, and the licensee undertakes to pay it.

b. If the compulsory license is related to a patent of semiconductor technology, the purpose of the license shall be for public non-commercial purposes only or to control acts concerning which a decision or judgment is issued declaring them to be acts of unlawful competition.

c. If the patent involves a significant technological advance with a considerable economic value, which requires the exploitation of another patent, the City may grant that owner of the protection document a compulsory license to exploit the other patent. In such a case the compulsory license shall not be assigned unless the other patent is assigned. The owner of the other patent shall be entitled to a counter license from the compulsory licensee, in accordance with reasonable conditions."

Importation of the patented invention constitutes "working" of the patented invention. The Industrial Property Directorate and the GCC Patent Office have not issued any compulsory license, as no request was submitted in this regard. Page 50, paragraph 106 The Secretariat indicates that the Copyright Law protects works "as far as their distribution is allowed in Saudi Arabia." Question 22 Please explain this statement and whether copyright protection for copyrightable works in Saudi Arabia is subject or conditioned upon any type of content review. Answer Content Review is carried out to ensure that works do not conflict with Public Morals. Prohibited works do not enjoy any benefits in Saudi market anyhow. Article 5 of the Copyright Law appears to impose a copyright notice requirement that would require authors to list their name (or the name of a representative) on the work, in order to achieve the benefits of copyright protection. Please explain whether the Copyright Law in fact imposes such a requirement. Are works that do not include such identifying information fully protected under the Copyright Law? To the extent such identification is required on all works, please explain how the current law complies with Article 5(2) of the Berne Convention and the TRIPS Agreement. Answer Indication of the name of the author or his representative is not a prerequisite to grant protection of the work according to Article 5 of the Copyrights Law. The article is very flexible in this regard and does not impose any formalities as a condition for protection in accordance with article 5(2) of the Berne Convention. Page 50, paragraph 107 The Secretariat indicates that Saudi Arabia's Copyright Law provides protection for news reports. Article 4(2) of the Copyright Law states that "what is published in newspapers, magazines and

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periodicals" are excluded from protection. Article 2(7) of the Implementing Regulations of Copyright Law, however, lists news reports as a protected work. Question 23 Please explain this discrepancy and what is actually protected. Answer Article 4(2) of the Saudi Copyrights Law "excludes from protection what is published in newspapers, magazines and periodicals which are of a merely informative nature." Article 2 of the Implementing Regulations of the Copyrights Law does not contain paragraph (7). The Secretariat indicates that the Copyright Law provides a reproduction right. Is this covered in Article 9: financial rights under "the author, or whoever he delegates, shall have the right to exercise all or any of the following...all forms of material exploitation of the work in general"? If not, please indicate which provision of the Copyright Law, and/or the Implementing Regulations, provides for a right of reproduction. Answer Yes, Article 9 of the Saudi Copyrights Law warrants reproduction rights in accordance with Article 9 of the Berne Convention of 1886. Page 51, paragraph 113 The Secretariat states that Article 22 of the Copyrights Law of 2003 "sets out a three-step procedure: provisional seizure, confiscation, and destruction and imposition of penalties if the goods are found to violate the Copyrights Law by the Violation Review Committee of the Ministry. Copyright violators are subject to: imprisonment for up to six months (which may be doubled for repeat offences), a maximum fine of SAR 250,000 (which may be doubled for repeat offences), closing the establishment, and confiscation of all copies of the work." We note that while Article 22 provides for the confiscation of pirated goods and "the materials used or intended for use in the infringement of the copyrights," it appears not to expressly provide for the destruction of the goods and materials, as required by TRIPS Article 61 in criminal actions. Question 24 Please provide more information with respect to current actions that the Government takes to destroy infringing goods and materials used in the commission of the infringement, in particular in the context of criminal actions. Answer Infringing materials and instruments used in the commission of the infringement are seized by virtue of law. The VRC, orders the destruction of seized materials and instruments used in the commission of the infringement. Page 51, paragraph 113 In paragraph 113, the Secretariat report states that the Ministry of Culture and Information enforces copyright protection at the ports. In paragraph 114, the Secretariat indicates that the Customs Department applies border procedures against imports of counterfeit goods. Question 25 When goods are detained, which authorities make determinations of infringement for purposes of seizure at the border? In particular, must the right holder bring a case before a court? Alternatively, does the right holder request that the Ministry of Culture and Information make such determinations with regard to copyrights, and that the Customs Department make those determinations with regard to trademarks?

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Answer The Customs Department refers the matter to the Ministry of Commerce and Industry and the Ministry of Culture and Information to decide on infringements of trademarks and copyrights, respectively, for the purposes of seizure at the borders. Customs informs the right holder of the suspension of goods. The right holder has the right to bring a case before the Ministry of Culture and Information in cases of copyrights or before the Board of Grievances in cases of trademark infringement. Customs implements the decisions of the relevant authorities in this regard. Page 52, paragraph 115 With regard to border enforcement, Question 26 Are the Ministry of Culture and Information and the Customs Department authorized to suspend the release of goods ex officio, i.e., on their own authority? Answer The Ministry of Culture and Information is authorized to suspend the release of goods suspected of infringing intellectual property rights ex officio according to Article 27 of the Implementing Regulation of the Copyrights Law. The Customs Department is also authorized to suspend the release of goods suspected of infringing intellectual property rights ex officio according to the Regulations for Border Procedures, Article 2(b). IV. TRADE POLICIES BY SECTOR (1) AGRICULTURE AND RELATED ACTIVITIES (ii) Agricultural policy Page 55, paragraph 7 The Secretariat states: "In order to increase food security, Saudi Arabia has encouraged companies to invest in farm projects abroad. The King Abdullah Agricultural Initiative, announced in January 2009, aims to improve long-term food security by enabling private Saudi businesses to invest in agricultural projects in other country. Products targeted by the initiative include wheat, barley, corn, sorghum, soybeans, rice, sugar, oil seeds, green fodder, livestock, and fish. According to the authorities, any country with available resources and with attractive investment regulations is a target country. The initiative makes available SAR 3 billion (about US$800 million) through a holding company belonging to the Government (SALICO)." Question 27 What is the status of the King Abdullah Initiative for Saudi Agricultural Investment Abroad? Answer The Initiative has entered into force. Countries that have benefited Saudi private investment under this initiative include Sudan – Egypt – Ethiopia. No Agricultural investment protocols have been signed so far. Framework agreements have been signed with Vietnam and Ethiopia. The role that SALICO plays in supporting the Initiative includes:

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Encouraging investors on foreign investment due to the high element of risk in agricultural investments.

Achieving the objectives of the Initiative. Preparing the necessary feasibility studies and research services and to build information

database and discuss investment opportunities. Identifying suitable investment opportunities abroad.

Which countries outside of Saudi Arabia have benefitted from Saudi private investment under this initiative? What agricultural investment protocols have been signed? What role does SALICO play in supporting the King's Initiative? Seeking to provide assistance in the establishment of infrastructure projects required by the areas and sites earmarked for Saudi investments in the areas of agricultural and animal production in the hosting countries. Page 57, paragraph 18 The Secretariat report states that "the Ministry of Agriculture is responsible for the operation of the GSFMO and the Minister of Agriculture is the Chairman of the Board of Directors... The GSFMO's facilities have been earmarked for privatization in accordance with the Saudi privatization strategy..." Question 28 What is the expected timeframe for GSFMO facilities privatization? What will be the role of GSFMO after its facilities are privatized? Answer The GSFMO's facilities have been earmarked for privatization in accordance with the Saudi privatization strategy, and the timeframe for such privatization is yet to be determined. (4) SERVICES (iv) Transport Page 83, Paragraph 159 The Secretariat report states: "Saudi Arabia has signed bilateral "open skies" agreements with Bahrain, European Union, Japan, Kuwait, Oman, Qatar, Syria, United Arab Emirates, United States (signed in March 2011) [emphasis added], and Yemen." In reality, the United States agreed ad referendum to a bilateral "open skies" agreement with Saudi Arabia in April 2011. Question 29 Does Saudi Arabia agree that the Secretariat's report should be corrected to reflect our bilateral ad referendum agreement? Answer The Kingdom of Saudi Arabia agrees that the Secretariat's report should be corrected to note the following:

The Kingdom of Saudi Arabia has entered into "open skies" bilateral agreements with Egypt, Jordan, Tunisia, Morocco and Sudan. These agreements allow for unlimited designation of airlines, unlimited flights to and from all specified international routes, and no restrictions on capacity and aircraft and aircraft type for passenger and cargo services. The Kingdom of Saudi Arabia has initiated the draft text of bilateral "open skies" agreement with the United States of America on 18 April 2011. The Agreement is currently being

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processed in accordance with the Saudi internal constitutional procedures to be signed and ratified upon completion.

SWITZERLAND Report by the Secretariat I. ECONOMIC ENVIRONMENT (1) MAJOR FEATURES OF THE ECONOMY According to para. 2, Saudi Arabia ratified an agreement to establish a monetary union together with three other GCC member countries, namely Bahrain, Kuwait and Qatar. Question 1 When is this Monetary Union expected to be realized? What does the road map for its realization look like? Answer As a result of the ratification of the Monetary Union Agreement which entered into force on February 2010, the Statute of the Monetary Council became effective on 27 March 2010. The Monetary Council Board which consists of the governors of the member states is meeting regularly to set up the necessary institutional and organizational underpinnings of the Gulf Monetary Council (GMCO). The primary objective of the Gulf Monetary Council is to prepare the required infrastructure for establishing the Monetary Union, in particular the establishment of the Central Bank and laying down its analytical and operational capacities. According to article 4 of the Statute of the Monetary Council, the timeframe for the introduction and circulation of the single currency shall be specified by GMCO in light of fulfillment of the required infrastructures that include the following:

Readiness of the Payment and Settlement Systems related to the single currency. Development of necessary statistical systems with view to achieving the objectives of the

Monetary Union. Development of the necessary legal and organizational framework for the Gulf Central Bank.

The four member states have already started work in earnest with the Gulf Monetary Council that meet regularly and they are working to ensure all the pre-requisites are complete. The Gulf Central Bank will supersede GMCO once all necessary steps are achieved. (2) RECENT ECONOMIC DEVELOPMENTS Under para. 5 it is stipulated that the Saudi authorities have no plans to drop the peg to the U.S. dollar. However, in periods when the U.S. dollar is weak and the Saudi economy is growing quickly, as it has been the case in 2008, Saudi Arabia suffers from an imported inflation. Question 2 How does Saudi Arabia cope with such situations? Answer The exchange rate policy of the Kingdom was, for a long time, geared towards maintaining a stable relationship with the US dollar, which is the intervention currency. This created a stable exchange rate environment for the private sector and was also conducive to foreign investment. In the last few years, the average inflation rate has been stable around 5 percent (2009-2011). Inflation in Saudi Arabia is attributable to two major components in the CPI composite index (rent and food). Rents were driven by demographic pressure and supply bottlenecks. The increase in food prices is an

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international phenomenon due to increased global demand and higher input prices including the extensive use of food items, e.g. sugar and corn, as biofuel. Supply side inflation is better handled by addressing the bottlenecks. Thus, many initiatives have been taken, including the establishment of the Ministry of Housing and the approval for building 500,000 housing units in all regions of the Kingdom over the coming five years with allocations of SAR 250 billion, which will help to increase the supply of housing and constrain the inflationary pressures stemming from the increase in house rents. Furthermore, King Abdulla's Initiative for Agricultural Investment Abroad emerged to addresss food security on national and international levels by building integrated partnerships with countries that have the potential to develop and manage agricultural investments to ensure sufficient quantities and stable prices for important crops. II. TRADE AND INVESTMENT REGIME (4) TRADE AGREEMENTS (ii) Regional agreements (a) Gulf Co-operation Council (GCC) The Gulf Cooperation Council has concluded free-trade agreement negotiations with the European Free Trade Association (EFTA) states and Singapore. Question 3 In which stage within Saudi Arabia's ratification process is the Saudi Government? What does the ratification process look like? Answer Saudi Arabia has already ratified the GCC - EFTA FTA. (5) INVESTMENT FRAMEWORK Under paras. 30 and 31, several entities are listed that actively promote investment opportunities in Saudi Arabia. Question 4 What are the differences between the various investment entities such as SAGIA, SABIC, SIDF and for example the Royal Commission for Jubail and Yanbu? Does SAGIA also provide licenses for special economic zones? Under para. 32, exceptions are listed for cases, where SAGIA does not have to approve foreign investments by SAGIA and where the authority to license is assigned to an agency other than SAGIA. In which cases do foreign investors need a license from an authority other than SAGIA? Answer The licensing authority for foreign investors is the Saudi Arabian General Investment Authority (SAGIA). For more information refer to annex B of KSA Working Party Report. SABIC was established in 1976. SABIC remains the main petrochemical producer in Saudi Arabia and the major catalyst producer for a number of downstream petrochemical products. SABIC is the largest non-oil company in the Middle East, with its industrial complexes operated by 16 affiliates. In 2002, SABIC's production capacity reached over 40 million metric tons. SABIC is also a producer of methanol and MTBE. Eight of SABIC's production companies are joint venture partnerships with international companies, including such firms as ExxonMobil, Shell Oil, Hoechst-Celanese and Duck Energy. SABIC is a partner in three joint ventures in Bahrain and has two manufacturing plants in Germany and Holland. SABIC has an ownership interest in the Saudi Arabian Fertilizer Company, which is an exporter of urea, granular fertilizer and urea fertilizer, and is 57% privately-owned. SABIC also fully owns Saudi Iron & Steel Company (Hadeed,) which is engaged in the manufacture of a variety of steel products. SABIC's paid-up capital is SAR 20.0 billion.

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Seventy per cent of SABIC is owned by the Government; the remaining 30% is privatized. The company has been identified for further privatisation, but there is no timetable over which privatisation would occur. The Government appoints the Chairman of the Board, the CEO and three other Board Members out of a total of seven. The other two Board Members represent the private sector and are nominated and selected at the shareholders' general meeting. The Government is represented on the Board, but does not play any role in setting company policy or in making operational decisions. SABIC conducts its business based on commercial considerations. It does not enjoy any special or exclusive privileges. There are no legal impediments to competition with SABIC. SIDF the Saudi Industrial Development Fund (SIDF) provided loans to new industrial enterprises and for replacement and modernization of machinery of existing enterprises focusing principally on segments where private sector banks were shy. Moreover, SIDF loans were available, for up to 50% of the project cost only and were available to wholly-owned foreign companies and Saudi-owned companies. SIDF filled the vacuum left by private sector banks. Saudi Arabia does not have special economic zones. For investments in finance, communications, education, information or the medical services sectors, investors are required to obtain a licence from SAMA, the Telecommunications Authority and the Ministries of Education, Higher Education, Information and Culture or Health, respectively. In addition, the Ministry of Commerce and Industry issues licenses for foreign investors in professional and consulting services, e.g., engineering and accounting. In other words, a licence is required for each business depending upon the nature of the business. III. TRADE POLICIES AND PRACTICES BY MEASURES (1) MEASURES DIRECTLY AFFECTING IMPORTS (i) Customs registration, documentation, procedures and valuation With regard to para. 2 referring to a commitment undertaken in Saudi Arabia's accession working party report (document WT/ACC/SAU/61 paragraph 122 which refers to Council of Ministers Decision No. 5-B-57611 of 28.11.1424H, 20 January 2004) that Saudi Arabia does not require authentication of, inter alia, certificates of origin, Question 5 Switzerland would kindly request Saudi Arabia to confirm that this commitment applies to original electronic certificates of origin. Answer We previously received an inquiry from the Chamber of Commerce of Basel, Switzerland, and we replied prompetly that work is underway on the electronic link between the Ministry of Foreign Affairs and the Customs Department to obtain data on certificates of origin and invoices electronically. Pending the completion of the electronic networking between the Ministry of Foreign Affairs and the Customs Department, electronic certificates issued by the Swiss Chambers of Commerce will be accepted. Provide that, these certificates shall be signed and sealed manually by the issuing agency to concider that the certificate of origin which is currently provided as an electronic certificate, while in fact it is not, but it is just a hard copy "print" attached by the importer within the consignment and submitted to the Customs manually. The Saudi Embassy in Bern and the Swiss diplomatic mission briefing in Riyadh were notified of the matter. When the electronic network is completed, there will be no need for authentication. (iii) Tariffs, other duties, and taxes (a) MFN applied tariffs According to para. 15 the GCC common external tariff (CET) alignment has been extended until the end of 2011 and certain agreed differences remain among GCC members.

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Question 6 Could Saudi Arabia indicate whether these agreed differences will remain after the end of 2011 and which and how many tariff lines these differences encompass and how many imports they represent? Answer A decision by the Supreme Council for the Cooperation Council for the Arab Gulf States was issued during the thirty-second session held in Riyadh on December 2011 in order to resolve outstanding issues that hinder reaching the final status of the customs union. Among the issues is the disparity in customs duties on certain goods in excess of 5%. Customs Union Port was assigned to investigate this matter within a binding timeframe to reach the final status of the customs union by 1 January 2015. Thus, the difference in customs duties on certain goods still exists. The number of such goods is "565" accounting for 7% of the total value of imports, according to 2010 statistics. In para. 20, the WTO Secretariat indicates that "the gap between MFN applied duties and bound rates present an element of uncertainty as it gives the authorities some margin for increasing applied MFN tariffs." Question 7 Could Saudi Arabia indicate whether it had to increase its MFN applied duties since its accession to the WTO? If yes, how many times, for which products (tariff line level) and what was the initial MFN applied rate and the new MFN applied rate? Answer Saudi Arabia has not raised their actual customs duties on any commodity since its accession to the WTO. Saudi Arabia's customs duties are 5% on nearly 80% of tariff items. (c) Other duties and charges According to para. 22 "a charge of 0.004% of the value of goods in transit, is collected against the service rendered." However, according to the panel report in Argentina-Textiles and apparel (WT/DS56/R), the panel found that "an ad valorem duty with no fixed maximum fee, by its very nature, is not 'limited in amount to the approximate cost of services rendered as required by article VIII:1(a) GATT. As it seems that the ad valorem transit charge does not comply with article VIII:1(a) GATT, Question 8 Could Saudi Arabia indicate how the charge complies with article VIII:1(a) GATT requirements and which measures it would undertake so that the transit charge will comply with article VIII:1(a) GATT? Answer Article "8" paragraph "1/A" of the GATT concerning the duties and procedures related to import and export which does not include transit, while Article "5" of the GATT relates to transit but does not provide for a lump sum or a percentage on the services rendered. Paragraph "3" of this Article provides that transit shall be exempt from all customs duties and transit fees or other expenses imposed on transit except for transportation costs or equivalent expenditures for administrative implications of the transit or the cost of services rendered. Therefore, as stated in paragraph "235" of the Report of the Working Group, Saudi Arabia is committed to the requirements of Article "5" of the GATT noting that this percentage is very low and is specified in Article "5" of the Convention on the Regulation of Transit Transport of the League of Arab States for the purpose of road maintenance.

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(v) Contingency trade remedies Up to now Saudi Arabia did not have national laws or regulations regarding trade remedies, nor did Saudi Arabia foresee the imposition of trade remedies in its policy. Nevertheless, Saudi Arabia adopted the GCC Common Law on Anti-Dumping, Safeguards and Countervailing Measures in 2006. This law was amended in 2009 and Saudi Arabia, as we understood, is now in the process of adopting these amendments. Question 9 What is the relationship between the GCC Common Law and the absence of national laws or regulations regarding trade remedies in Saudi Arabia? Answer The amended GCC Common Law will be ratified by the KSA national authorities and will be published in the Saudi Official Gazette to be implemented in KSA. The WTO Secretariat mentioned in its report conducted for the Saudi Arabia Trade Policy Review (WT/TPR/S/256) under III:1:v paragraph 33 that Saudi Arabia has adopted the GCC Common Law on 14 June 2006, and currently Saudi Arabia is in the process of adopting the amended GCC Common Law. Do the GCC Common Law and the mentioned amendments affect in any way the non-application policy towards trade remedies of Saudi Arabia? Answer Although Saudi Arabia adopted the GCC Common Law on June 2006, it has not applied through GCC competent authorities any trade remedy measures. However, after the ratification of the amended GCC Common Law, if the GCC competent authorities receive a proper complaint and conduct an investigation that fulfills the requirements of the related GCC Common law and its Implementing Regulation, a measure may be applied according to the results of this investigation. If yes, what were the reasons behind such a policy change? To what extent is this change expected to affect the policy on trade remedies of Saudi Arabia? Answer The application of the GCC Common Law is designed to be applied in the six GCC countries and the representation of the domestic industry in this law is defined to include the GCC industry. Accordingly, Saudi Arabia is committed to applying the GCC Common Law if a GCC industry submitted a proper complaint to the GCC competent authorities. (2) MEASURES DIRECTLY AFFECTING EXPORTS (iv) Export subsidies, finance, insurance and assistance The Arrangement on Officially Supported Export Credits, initially came into effect in April 1978, comprises a comprehensive set of disciplines which sets out the financial terms and conditions of providing officially supported export credits. These disciplines include for example rules on repayment terms, interest rates or premium fees. The main purpose of the Arrangement is to provide a framework for the orderly use of officially supported export credits and to foster a level playing field for official support. The Arrangement receives administrative support of the OECD Secretariat but it is not an OECD Act. Non-participants of the Arrangement may be invited to become participants by the current participants of the Arrangement. Question 10 Would the Kingdom of Saudi Arabia be prepared to follow the provisions of the Arrangement in the future, and in what time horizon? If not, could you please explain why?

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Answer Currently Saudi Arabia does not have and is not involved in any of such arrangements. However, SEP may consider being part of such an arrangement in the future. Also, we would like to confirm that all credits offered by SEP are within market practices, norms and commercial principles. (3) MEASURES AFFECTING PRODUCTION AND TRADE (ii) Competition policy and price controls Para. 85 of the Secretariat's Report indicates that competition legislation applies to all establishments in Saudi Arabia, with the exception of public and wholly state-owned enterprises. At the same time, in para. 92 of the section entitled "(iii) State trading, state-owned enterprises and privatization", the Secretariat's report notes that the public sector is one of the largest employers of Saudi Arabia. Question 11 Could the Saudi Arabia's authorities indicate the reason why the public sector enterprises are still excluded from the scope of competition legislation at a time when it is Saudi Arabia's declared objective (see para. 92) to diversify the economy, expand the production base, boost the role of the private sector, promote competition and enhance the efficient use of resources through the implementation of a privatization program? Would submitting all public sector enterprises also to the rules of the competition legislation not accelerate this process of diversification and improvement of the competitiveness of the economy to absorb an increasing labour force, jobs which the public sector and the highly capitalized oil and gas sector cannot provide ? Answer Saudi Arabia does not believe that the above-referenced aspect of its Competition Law hampers the economic objectives it has identified. State-owned enterprises in the Kingdom are subject to the commitment embodied in paragraph 52 of the Kingdom's Working Party Report to act in accordance with commercial considerations. IV. TRADE POLICIES BY SECTOR (2) MINING AND ENERGY (v) Electricity Question 12 What are the current shares of energy sources (oil, gas, renewable sources etc.) in electricity production? According to footnote 46, Saudi Arabia is seeking to reduce its consumption of oil in power stations, turning to gas and other alternatives including renewable power generation. Could Saudi Arabia indicate whether it has set any concrete targets or developed energy roadmaps on the use of alternative energy sources to oil (gas, renewable sources, nuclear, others?) that underline the mentioned intentions of Saudi Arabia to reduce the consumption of oil in power stations? Answer The current shares of energy sources are 40% out of crude oil, 34% out of gas, 22% out of diesel and 4% out of heavy fuel oil consumed for electricity production. In order to reduce the consumption of oil in power stations, the Government of Saudi Arabia created King Abdullah City for Atomic and Renewable Energy (K.A.CARE) by a Royal order # (A/35) on Apr. 17, 2010. K.A.CARE is contributing to a sustainable future for Saudi Arabia by developing an alternative energy capacity that is substantial in size and supported by a world-class local industry. Shaped by science and research, and brought to life through technology development and industry partnerships, the Kingdom is building a new generation of sustainable power production capabilities that harness renewable and atomic energy to create a reliable, long-term supply of electricity.

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CANADA Report by the Secretariat (WT/TPR/S/256) II. TRADE AND INVESTMENT REGIME (5) INVESTMENT FRAMEWORK Paragraph 28, page 19 The Kingdom of Saudi Arabia's Foreign Investment Law permits foreigners to invest in all sectors of the economy, except for activities on the Negative List, which includes fisheries. Question 1 Could the Kingdom of Saudi Arabia please explain why foreign investment is not permitted in this sector? Answer All of the fisheries industry is open to FDI except capture fishing due to low quantities of fish in Saudi Arabia's territorial waters. Question 2 Could the Kingdom of Saudi Arabia please provide information on when its Negative List will be reviewed? Answer Saudi Arabia annually reviews the Negative List and removes additional items from it. Question 3 Could the Kingdom of Saudi Arabia please indicate what the review process is and who is consulted? Answer The Negative List was issued by a decision of the Supreme Economic Council under Article 3 of the Foreign Investment Law. Thus, the Supreme Economic Council is responsible for reviewing the Negative List. SOUTH AFRICA (1) INSTITUTIONAL FRAMEWORK The Secretariat notes that "…GCC Heads of States have agreed that any new preferential agreement concluded by a member would apply pari passu to all Members, except for agreements with the United States." (Page viii). Question 1 In light of the GCC being a customs union and having a common external tariff (CET), can Saudi Arabia explain how goods from WTO Members which have not concluded a free trade agreement with the GCC be treated after entering one GCC member state, and wanting to move to other GCC member states after 2011? Answer This is not true and there may be an error in translation. The correct statement is that the leaders of the Council agreed not to sign any agreement on preferential individually and those agreements signed by the Sultanate of Oman and the Kingdom of Bahrain with the United States of America are

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an exception. We request an amendment on the statement mentioned in the report of the WTO Secretariat. Under the principle of final destination and clearing mechanism currently in place between the GCC countries, foreign goods, including U.S. commodities are circulating in accordance with the clearing mechanism. If the goods are circulated to markets in the rest of the GCC countries without clearing documents from the destination from which goods are imported, the customs duties are collected in the border ports. The GCC is looking forward for a mechanism to deal with these agreements in line with the requirements of the Customs Union. (2) COMPETITION Page 12 The Secretariat notes that "in order to create an efficient competitive environment in Saudi Arabia, the Competition Law and its implementing regulation was promulgated in 2004 and an independent competition council has been established to supervise the implementation and the enforcement of the law." Question 2 In light of Saudi Arabia being a member of a customs union, GCC, does Saudi Arabia in assessing anti-competitive behavior cast its net wide to include the whole GCC market and not only just her domestic market, specifically considering that the same approach is taken when assessing injury in the context of application of common trade remedy laws in the GCC? Answer The law is applied only to the domestic market. What are the developments on the competition policy front in Saudi Arabia in as far as the implementation of the competition law issued pursuant to Royal Decree No. M/25 of 4.5.1425H (22 June 2004) is concerned? What is the role played by transaction agents who facilitate agreements/transactions and has there been any competition cases relating to unfair commercial practices involving such agents? Answer The law is currently applied. Such application has a positive preliminary effect on certain sectors of the market. There are no such competition cases in relation in to the unfair practices. (3) OIL SECTOR Page 62 The Secretariat notes that "the (upstream) oil extraction industry in Saudi Arabia is operated exclusively by the Saudi Arabian Oil Company (Saudi Aramco). Saudi Aramco is a wholly state-owned company established by Royal Decree in 1988. Saudi Aramco sells crude oil to domestic refineries, joint-venture refineries abroad, and other foreign refineries." Question 3 Can Saudi Arabia explain the processes to be followed by foreign investors interested in accessing upstream opportunities within the oil sector in Saudi Arabia? Could you please advise on how best such opportunities can be accessed by foreign companies in Saudi Arabia? Answer In recent years, foreign investors have made significant investments in the upstream gas sector, as well as in refining and downstream oil and gas industries. As stated in paragraph 64 of the Kingdom's WPR, for reasons of important national policy, restrictions on foreign investment in the upstream

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production sector remain, while those in the exploration, drilling and oil field services sectors have been relaxed. Annex B of the WPR noted that all fields are open for investment, except those on the Negative List. The Negative List, set out in Annex C to the Kingdom's WPR, includes oil exploration, drilling and production. It should also be noted that national and international energy services companies are contracted to do the required exploration, drilling and oil field services work in the oil and gas sector. (4) PAYMENT SYSTEM Page 40 (iii) "The SEP, established in 1999 as the official national export credit agency, aims, inter alia, to help exporters overcome difficulties in receiving export proceeds for commercial reasons, i.e. an importer's failure to pay or for political reasons, i.e. the importer's country hindering payment." Question 4 The above seeks protection for Saudi exporters, can you please comment on the transparency of the payment system and what recourse is available in instances where a foreign company has not been fully paid by a client? Answer SEP provides Saudi exporters with irrevocable insurance and guarantee credits to cover risks of non-payment of the values of their exports. SEP does not provide insurance/guarantee facilities for import transactions into Saudi Arabia. Therefore, we believe that foreign firms dealing with buyers (importers) in Saudi Arabia should seek to obtain insurance/guarantee facilities from their country's Export Credit Agency (ECA) or from any regional/international credit insurers. (5) AGRICULTURE The secretariat report states: "GCC and Saudi standards are based on international standards" (page 33 (iii)). Question 5 Can Saudi Arabia provide more information relating to efforts to harmonize standards in the GCC? If this process is not completed yet, could Saudi Arabia clarify when the GCC or Saudi standard is applicable. Answer Saudi Standards, Metrology and Quality Organization (SASO) is a member of the GCC Standardization Organization (GSO). GSO formulates standards through technical committees; SASO is a member of all these committees. All GSO standards are unified and harmonized with national standards of all member states. All GSO standards are approved and implemented by SASO, and considered as Saudi Standards, these standards are also approved by all members of the GSO. The GSO is an Authority made up by the Arab States of the Gulf. GSO Standards and Technical Regulations need to be adopted by each GCC Government as national standards and technical regulations. The GSO is concerned with setting technical regulations and standards. It consists of GCC member states including Saudi Arabia as represented by SFDA which is in charge of controlling food, feed, pesticides, drug and medical devices. The Secretariat notes that "international agreements in [Saudi Arabia] enter into force as domestic laws following their ratification by Royal Decree and enactment by the Consultative Council and Council of Ministers. In general, conflicts or inconsistencies between international agreements and treaties and other provisions of domestic law are resolved in accordance with the same rules of

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interpretation applied to domestic legislation, for example, more recent laws take precedence over older laws" (page 13). In light of the above, it would be appreciated if Saudi Arabia could explain why agricultural products are still subjected to the Saudi modified standard especially when they already meet the international standard upon which the Saudi Standard is based? In addition, does the Saudi standard supersede the international standard? Answer The Saudi food technical regulations and standards are in compliance with international standards such as (Codex Alimentarius and ISO) in addition to the WTO TBT and SPS Agreements. (6) INTELLECTUAL PROPERTY RIGHTS The Secretariat Report states that: "Intellectual property rights legislation in Saudi Arabia comprises mainly the: Copyright Law and Implementing Regulations; Law on Patents, Layout-Designs of Integrated Circuits, Plant Varieties and Industrial Designs and Implementing Regulations; Trademarks Law and Implementing Regulations; Regulations for the Protection of Confidential Commercial Information; and Regulations for Border Procedures" (page 48(iv)). Question 6 What process and institutions are in place consistent with the regulation for the Protection of Confidential Commercial Information available to foreign companies? Answer Saudi Arabia has issued the Regulations for the protection of Confidential Commercial Information to protect Test data and other trade secrets. Each competent authority is responsible for protection of the confidential information submitted to it. According to Article 8 of the Regulations "any party suffering injury from the violation of the provisions of these Regulations may bring a case before the Board of Grievance to request indemnification for damages." CHINESE TAIPEI Part I - Questions regarding the Secretariat Report I. ECONOMIC ENVIRONMENT Page 9 (Para. 15) The Report states that "foreign businessmen may now obtain a multiple-entry visa, valid for 12 months, without requiring a letter of invitation from a Saudi host or approval from the local Chamber of Commerce." It is observed in practice, however, that the above does not generally apply. Only exceptional applications by high-ranking persons appear to be afforded this treatment. Question 1 Could Saudi Arabia please describe in detail how the above-mentioned easing of requirements for the issuance of visas is applied in practice.

Answer Council Of Ministers Resolution No. 286 concerning "foreign businessmen may now obtain a multiple-entry visa" issued 5/9/1428H (17/9/2007), is in the implementation phase.

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Page 11 (para. 20) Footnote 21 to Para 20 states that "the "Saudization" programme seeks to…, encourage the private sector to give job opportunities to qualified and skilled citizens willing to work, and to rationalize the recruitment of the foreign labour force and restrict it only to specializations not sufficiently available among Saudis." It is our understanding, however, that the implementation of the new Saudization scheme (known as the Nitaqat system), effective from 27 November 2011, divides all companies into four categories – "excellent", "green", "yellow" or "red" based on whether they employ sufficient nationals to comply with required quotas. Nitaqat applies 205 categories of quotas that vary based on the line of work and size of the company, and those companies falling into the "red" or "yellow" category will suffer severe penalties, such as being barred from renewing the work visas of expatriates. To be a qualified enterprise (green category), a company must meet a compulsory percentage of hiring 5% to 65% of its total staff from KSA citizens. This not only increases the cost of doing business in the Kingdom of Saudi Arabia, but also distorts the rationalization of labour force recruitment, thus going against the spirit of encouraging foreign investment expressed in Article 5 of the "Executive Rules of the Foreign Investment Act" as "the licensed entity is entitled to sponsor the foreign investor and his non-Saudi staff." Question 2 How does the Saudi Government view the possible impact of the Nitaqat policy on Saudi Arabia's attractiveness as an investment destination?

Answer Nitaqat Program has a high degree of flexibility. Foreign investment companies are treated the same as national companies in the same activity in terms of rates of Saudization and the application of incentives and sanctions. IV. TRADE POLICIES BY SECTOR Page 61 (para. 41) As indicated in the Report, the Saudi government has been implementing a development strategy since 1990 aimed at reducing its dependence on oil for its economic growth. However, 90% of government receipts and 86% of export earnings still rely on oil and gas revenues, meaning that oil continues to have a huge impact on Saudi Arabia's economy. Question 3 Could we please have an update on the content of the latest, on-going economic development strategy for Saudi Arabia? What is the possibility that policies might be improved or adjusted in the future?

Answer The long-term economic development strategy aims to move the Kingdom to the ranks of advanced countries from its current position in the upper stratum of middle-income countries. More specifically, the objective is to increase per capita real GDP from SR 43.7 thousand at the beginning of the strategy in 2004 to SR 86.5 thousand by the end of the strategy in 2024 - an overall increase of about 98%. The economic development strategy aims for sustainable development based on the diversification of the economy. A key objective of economic and social development ever since the development planning system was initiated, the economic development strategy aims for the development and appropriate employment of human resources to endow national human resources with the skill levels needed to meet demands of the labour market, as well as to correct the imbalances that hinder substitution of expatriates with national labour. The economic development strategy aims for a balanced regional development to stimulate economic activity in the least developed regions. Other parts of the on-going economic development strategy include the enhancement of

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competitiveness, laying the foundations for a knowledge-based economy in the Kingdom of Saudi Arabia as well as further regional and Arab integration. The current Ninth Development Plan (2010-2014) is the second implementation phase of the long term development strategy. Any possibility that policies might be improved or adjusted in the future depends on any mismatches between the actual path of development and the target path set by the strategy that will be addressed in the five-year review of the strategy. This review process will be conducted simultaneously with the preparation of future development plans. Page 61 (paras. 42 and 43) Foreign investors play a significant role in the upstream development of non-associated gas as well as the downstream oil and gas sector, including oil refining. It is recognized that Saudi Arabia has worked hard on the introduction of foreign investment, and has created some successful cooperation experiences with foreign investors. Nevertheless, foreign investment in upstream oil and gas industries, such as oil exploration, drilling and production, is still restricted under the "Negative List." Question 4 Does the Saudi Government have any plans to further open the upstream sector of the oil and gas industry to foreign investment? Answer In recent years, foreign investors have made significant investments in the upstream gas sector, as well as in refining and downstream oil and gas industries. As stated in paragraph 64 of the Kingdom's WPR, for reasons of important national policy, restrictions on foreign investment in the upstream production sector remain, while those in the exploration, drilling and oil field services sectors have been relaxed. Annex B of the WPR noted that all fields are open for investment, except those on the Negative List. The Negative List, set out in Annex C to the Kingdom's WPR, includes oil exploration, drilling and production. It should also be noted that national and international energy services companies are contracted to do the required exploration, drilling and oil field services work in the oil and gas sector. Page 67 (paras 78,79, 80 and 81) As indicated in the Report, Saudi Arabia consumes approximately 228 million barrels of oil on electricity production. Current projections suggest that electrical power generation could consume 900 million barrels of oil per year as of 2032. Saudi Arabia has been exploring renewable energy sources for the production of electricity for some time, as well as the use of nuclear energy. Furthermore, it has several joint R&D projects and cooperation agreements or memorandums with a number of other countries. Question 5 In line with the global trend towards energy conservation and carbon reduction, has Saudi Arabia proposed any corresponding effective energy-saving measures in its trade policy?

Answer Saudi Arabia's proposal to the Committee on Trade and Environment in Special Session (CTESS) focuses on key environmental technologies, notably carbon capture and storage (CCS), gas flaring reduction and efficient consumption of energy technologies. These technologies are essential in order to achieve large environmental benefits. Moreover, the Government of Saudi Arabia has established the King Abdullah City for Atomic and Renewable Energy (KACARE) to promote sustainable energy, as described in para. 130 of the Government's Report. The Government also established the Saudi Energy Efficiency Center (SEEC) to work on initiatives geared toward achieving higher energy efficiency in Saudi Arabia.

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Would the Saudi Government be willing to share with us any concrete experiences or outcomes with regard to its use of renewable energy and nuclear energy. Answer Many research bodies in Saudi Arabia conducted scientific researches in renewable energy and implemented many solar energy plants for research purposes. An example of these plants is the solar city in Al-Oyayna and solar desalination plant in Ah-Khafji which was established by King Abdul Aziz City for Science and Technology. Concerning the Saudi Arabia experience in the field of nuclear energy, this experience is limited to the protection against radiation, the use isotopes and radiant materials in the industrial and health sector under the supervision of the Energy Research Institute in King Abdul Aziz City for Science and Technology. Has Saudi Arabia encountered any particular challenges in these areas so far and what goals has it set for the future? Answer King Abdullah City for Atomic and Renewable Energy will supervise and organize laying down of policies and objectives, granting the economic incentives and determining the research trends for both atomic and renewable energy in Saudi Arabia. The challenges faced by Saudi Arabia later on are completely different from those expected to face KA-CARE as the body responsible for the development and improvement of the alternative energy in Saudi Arabia. Page 74 (para. 114) Several state-owned enterprises participate in the services sector on the basis of commercial considerations according to the authorities in Saudi Arabia, including the National Commercial Bank, Saudi Real Estate Company, Saudi Telecom Company and Saudi Post. Question 6 Do these state-owned enterprises generate any competition with those in the private sector? Answer Details related to SOEs are provided in KSA Working Party Report Para. (38-44). As indicated on page 47, paragraph 98, Saudi Arabia allows foreign investors acting as "strategic partners" to participate in the privatization of these state-owned enterprises. Are there any cases of foreign investors' participation? Answer Yes, there are several foreign investors who participate as strategic partners in the mobile and fixed services. For example, Mobily, Zain Saudi Arabia and Etihad Atheeb Telecom all have foreign investors as strategic partners. Questions regarding the Government Report II. ECONOMIC DEVELOPMENT Page 8 (para. 28) It is stated that the Saudi Arabian General Investment Authority (SAGIA), through its One-Stop-Shop (OSS), will be the only communications channel between investors, residents, and the Government, which include the seven ministries and entities that participate in the OSS. Nevertheless, SAGIA seems not to have been fully empowered to coordinate between the different ministries. For it to be a proper one-stop-shop platform, SAGIA should surely possess all the

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necessary resources or channels to assist investors in resolving any problem, such as difficulties in obtaining residency for foreign workers. However, its focus remains primarily on investment promotion, therefore if foreign investors do encounter a problem, they must go to a different ministry. Question 7 It would be appreciated if Saudi Arabia could please explain SAGIA's functions and powers in terms of handling the problems of investors in cooperation with other ministries within the Government, and suggest how SAGIA's functions as a one-stop-shop for investors might be enhanced in the future? Answer SAGIA established a new department for government relationships to coordinate with government entities regarding specific issues faced by local and foreign investors. IV. SECTORAL DEVELOPMENTS Page 16 (para. 93) The services sector is very important to Saudi Arabia's economy. Saudi Arabia encourages the services sector by providing market access and national treatment to foreign services suppliers. This is reflected in the number of services sub-sector commitments undertaken by Saudi Arabia during its accession to the WTO, when it undertook commitments on 120 services sub-sectors out of 160. Question 8 Which services sectors and sub-sectors has Saudi Arabia not yet opened to foreign services providers in line with commitments undertaken in the GCC, and FTAs signed by the GCC? Answer Saudi Arabia opened most of its services sectors and sub-sectors to foreign services providers in the context of the Economic Agreement between the GCC States. Are there any plans to gradually liberalize those services not yet opened to foreign services providers in line with commitments undertaken in the WTO? Answer Saudi Arabia undertook commitments on 120 services sub-sectors out of 160, consequently Saudi Arabia currently has no plans to further liberalize services sectors. CHINA Questions regarding the Secretariat Report II. TRADE POLICY REGIME Page 18 (para. 22) As a group, the GCC has concluded free-trade agreement (FTA) negotiations. In addition, the GCC has received requests for negotiations, inter alia, from the Association of South-East Asian Nations (ASEAN); Azerbaijan; Common Market for East and Southern Africa (COMESA); Georgia; Hong Kong, China; Peru, and Ukraine. In the annotation 39 of this paragraph, it is mentioned that "in September 2010, the GCC decided to put its negotiations on hold until the completion of a feasibility study to better perform in current and future negotiations". Question 1 Please let us know if the feasibility study is concluded. If so, could Saudi Arabia please elaborate on the main conclusions of that feasibility study?

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Answer Saudi Arabia attaches great importance to the negotiation and conclusion of FTAs that are beneficial to the Kingdom and to the GCC as a whole. As noted in the Secretariat's report, the GCC feasibility study on this matter is on-going, and relevant internal discussions are underway. Once these discussions have concluded, the GCC will make appropriate decisions on next steps. III. TRADE POLICIES AND PRACTICES BY MEASURE Page 37 (para. 61) Saudi Arabia grants a 10% price preference for Saudi products and 5% price preference for GCC products in all government procurement. Question 2 Could the Government of Saudi Arabia kindly explain the criteria to identify the products as Saudi products and GCC products? Answer This question is answered with the reference to Article 2 of the Decision of the GCC Supreme Council in its 5th session, which states that:

"It shall be required for granting the preference set forth in Article 1 of this Decision that the national ownership in the capital of the producing industrial establishment shall not be less than 51% and that the added value arising from the production of the goods shall not be less than 40% of its costs".

How could the Government of Saudi Arabia solve the problem when it comes to disputes regarding the products accreditation? Answer Disputes regarding product accreditation should be settled through the indication of origin. Page 37 (para. 62) Saudi Arabia became an observer to the WTO Plurilateral Agreement on Government Procurement (GPA) in December 2007; it has not begun negotiations for GPA membership. In the annotation 60, it is mentioned that "in its WTO accession commitments, Saudi Arabia indicated that it would initiate negotiations for GPA membership". Question 3 Does the Saudi Arabian Government intend to join the WTO Agreement on Government Procurement in the near term? Answer The Kingdom of Saudi Arabia welcomes the successful deal reached by parties to the plurilateral Government Procurement revised agreement. The Saudi national committee intends to translate the new agreement into the Arabic language, to study it carefully and comprehensively, and to consult widely both within the Government and with the private sector. The Kingdom of Saudi Arabia would be grateful if the WTO Secretariat could organize for Saudi officials a national seminar and workshop on the WTO Government Procurement Agreement. This would greatly help us in our examination of the issue in the light of the new agreement. Saudi Arabia has listed this request in the Annex to the Government report as a technical assistance need of Saudi Arabia. We hope that this request can be met during the first half of 2012.

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After the completion of the workshop and the examination of the new agreement by Saudi officials, a recommendation will be made to the ministerial committee, which will determine appropriate steps with respect to the commencement of the accession negotiations. Questions regarding the Government Report Page 33 (para. 44) Saudi Arabia has concluded mutual recognition agreements with Argentina, China, Egypt, Germany, Indonesia, Jordan, Korea (Rep. of), Malaysia, Pakistan, Philippines, Singapore, South Africa, Tunisia, and Turkey. The GCC Standards Committee is developing a conformity assessment scheme to be adopted by each of the seven member countries, and has set 2011 as deadline for full implementation in the case of children toys.

Question 4 Could the Government of Saudi Arabia kindly elaborate on the above mentioned "conformity assessment scheme"? Answer The GSO conformity assessment scheme focuses on procedures and practices to verify the conformity of imported and locally-produced products. The target of this scheme is to serve the national and regional interests of GCC member states, in order to streamline the commercial activities of GCC member states and between GCC member states and other countries and regions. China is concerned that the scheme might disrupt normal trade. Could Saudi Arabia explain how to make sure the conformity assessment scheme does not constitute a technical barrier to trade? Answer The scheme does not constitute any kind of technical barrier to trade; given that the object of the conformity assessment regulation for children toys is to unify regulation of the toys within all member states. Moreover, the children toys regulation was notified to the WTO. Other Questions Saudi Arabia has made great efforts since its accession to establish a set of laws and regulations corresponding to WTO laws and regulations. Question 5 Could Saudi Arabia kindly elaborate on its effort to improve laws and regulations since its accession into the WTO? Answer KSA has listed all of its amended laws and regulations since its WTO accession in table Al.l1 of the Secretariat Report WT/TPRY/S/256 (Page 97). The Competition Law of Saudi Arabia is applicable to all enterprises and institutes except public and state wholly-owned enterprises. Question 6 Does Saudi Arabia share the view that such a stipulation constitutes discriminations against enterprises of other types?

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Answer Saudi Arabia does not agree that the referenced aspect of its Competition Law constitutes discrimination against other enterprises. State-owned enterprises in the Kingdom are subject to the commitment embodied in paragraph 52 of the Kingdom's Working Party Report to act in accordance with commercial considerations. In 2010, Saudi Arabia issued a measure requiring that the product conformity program (PCP) be implemented on all imported consumer products. In 2011, the Saudi Arabia Government further required that a unified Certificate of Conformity (CoC) shall be attached to each batch of goods on their arrival at any port of Saudi Arabia, and any batch of goods without CoC would be denied to enter. In practice, however, the products without CoC are usually confiscated by the Customs authorities. Questions 7 Could the Government of Saudi Arabia please explain the reason and the rationale for applying this programme? Answer Due to huge amounts of imported goods into Saudi Arabia and the limited number of private labs for testing within the Kingdom, a Certificate of Conformity is required for the consignment of all goods exported to Saudi Arabia, with the exception of food and feed. In addition, these Conformity Certificates must be issued from accredited bodies in the country of origin. Has the Saudi Arabian Government made sufficient preparations for implementing such mandatory certification? Answer Yes, Saudi Arabia has made sufficient preparations, including the following actions: 1- SASO has signed Mutual Recognition Programs (MRPs) of Certificates of Conformity with

accredited Certification Bodies in different countries. In China, SASO signed with: CQC, Intertek, SGS, TUV SUD, Bureau Veritas, and TUV Rheinland. MRPs are one type of Conformity Assessment Procedure that is recognized in the TBT Agreement. They facilitate trade and the Customs clearance process, as the goods have been tested in the country of origin and a Conformity Certificate from an accredited Certification Body is issued by the country of origin.

2- For Electric and Electronic products Saudi Arabia joined IECEE since August 2009. Also, SASO is the national IECEE CB in the Kingdom, and recognizes certificates issued by other member bodies of the IECEE in order to facilitate trade between Saudi Arabia and other members.

If so, how could the Government make sure that the normal importation will not be adversely affected by the mandatory certification? Answer Certificate of Conformity is applied to ensure that products conform to the related standards. Saudi Arabia applies the program for legitimate objectives: protection of the health and safety of consumers; protection of the environment; national security; and preventing deceptive practices. These objectives are recognized by the TBT Agreement. Please explain how the customs would deal with the products without CoC label?

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Answer In case no CoC's are attached, the following procedures are carried out: 1- Documents sent with consignment are verified. 2- Random samples are withdrawn from consignment and sent to private labs within the Kingdom for testing. The importer will be notified with the results of testing. If the samples conform to the relevant standards, they will be cleared. The Saudi Arabian Government expressed upon its accession to the WTO that, the CoC would no longer be needed when the Government has "sufficient capability" to inspect the imported and domestic goods. China would like to ask the Saudi Arabian Government to explain or interpret what "sufficient capability" means and what efforts have been made in this respect. Answer "Sufficient capability" means the required infra-structure for conformity assessment procedures. This

includes, inter alia, testing labs and the conformity assessment bodies' development of standards.

SASO has carried out the following: 1- Adoption of standards from ISO and IEC and other international organizations. 2- Accreditation of 30 private labs to test locally produced and imported goods. This

accreditation is carried out by the Saudi Accreditation Committee (SAC). 3- Establishment of the National Measurement & Calibration Center (NMCL) in 1986. 4- Mutual Recognition Programs with different countries and accredited Certification Bodies. Question 8 What progress has been made in respect of the laws on import and export inspection, and quarantine in Saudi Arabia? Answer As far as import inspection is concerned, there is a regulation for imported food product inspection and procedures under consideration. However, this regulation is still in the draft stage. With regard to plant and plant products and live animal; the Kingdom applies the Veterinary Quarantine Law and Plant Quarantine Law and their Executive Regulation in the Cooperation Council for the Arab States of the Gulf, also recognized international standards and regulations are applied on imports and exports. Please confirm that the law concerned is consistent with the requirements stipulated in the SPS Agreement. Answer Yes, it is in compliance with the SPS Agreement. Has the business enquiry point in this respect been established? Answer If China means the SPS Enquiry Point, the answer is yes. The SFDA established a Saudi SPS Contact Point which is responsible for receiving and answering the enquiries of the interested WTO Members; it is responsible for notifying WTO Members about any new or amended SPS measures. Please explain if the procedures have accepted any methods recommended by other members. Answer The underlying procedures are drafted in accordance with the recognized international standards and guidelines, taking into account WTO Member comments.

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It is explicitly stipulated in Government Purchasing and Bid Invitation Law of Saudi Arabia that, the principle of government purchasing and bid invitation is "through bid invitation, to select suppliers and engineering contractors on a fair and just basis with the aim of maximizing the economic efficiency of government purchasing, and to promote fair competition between suppliers or between engineering contractors." Question 9 China would like to seek the comments of the Saudi Arabia Government on this. Answer This is not accurate. Suppliers or engineering contractors, whether Saudi, foreign or mixed companies or joint ventures, have the same right and are given equal treatment if licensed as required by the law. Some restrictions remain in certain areas including fishery, the exploration, exploitation and production of petroleum oil for foreign investors. Question 10 Could the Government of Saudi Arabia please elaborate on the restrictions for foreign investment? Answer Foreign investment is permissible in all activities, except those which are included in a short "Negative List". A full list of economic activities in which foreign investment is currently not permitted can be found in the Secretariat Report (p. 19). The Supreme Economic Council of the Kingdom periodically reviews the Negative List. Saudi Arabia strives to attract foreign investment in order to facilitate innovation and economic development. The investment climate (rules, regulations, incentives, etc.) in the Kingdom is continuously improving to attract foreign investors of all types, consistent with the WTO agreements and other investment agreements to which Saudi Arabia is a party. It should also be noted that national and international energy services companies are contracted to do the required exploration, drilling and oil field services work in the oil and gas sector. Does the Saudi Arabian Government intend to eliminate or relax those restrictive measures in the near term? Answer Currently, no, given that all of the fisheries industry is open to FDI, except capture fishing due to low quantities of fish in Saudi territorial waters. The problem of "Asia Premium" has long existed in the sales of crude oil from Mid-East countries, including Saudi Arabia, to Asian countries. Question 11 Could Saudi Arabia explain the reason of "Asia Premium" and whether it is consistent with relevant WTO rules? Answer It should be noted that the "Asia Premium" does not exist; instead, global prices are the result of market forces. As it is very well known, there are three major global markets: North America, Europe and Asia. All crude oil sales and pricing are performed by companies operating on a commercial basis and following the international market fundamentals of supply and demand. Prices in these three markets determine the price of crude oil. Price differences among the three market segments reflect differences in the type of crude oil marketed by different sellers and the supply-demand conditions for the different crude oil types in the given market segment.

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Overall, Saudi Arabia's Government investment projects are not open to international contractors. Meanwhile, foreign contractors face a lot of barriers when they try to acquire qualifications under the qualification administration system of Saudi Arabia. In addition, according to Chinese enterprises, relevant departments of the Saudi Arabian Government and state monopoly enterprises (e.g. ARAMCO, SEC, etc.) control the qualifications of contractors and equipment and material suppliers accessing the market through various short lists of qualifications, which further constitutes a technical barrier to access Saudi Arabia's contract market. Question 12 We would like to know whether Saudi Arabia has plans to further open government investment projects in the project contract market to international contractors. If so, please elaborate on the future plans. Answer As noted in section III(1)(vii) of the Secretariat's Report, most of the Saudi Government's investment projects are subject to open tendering. As the scope of Government contracts is limited, and as Saudi Arabia's accession commitments on services make the Kingdom one of the most open markets among the WTO membership, the existing limitations on contracting in the Kingdom are relatively insignificant. State-owned enterprises in the Kingdom, including Saudi Aramco, follow market-based procurement policies consistent with customary business practices, as noted in paragraph 44 of the Kingdom's Working Party Report. Saudi Arabia has greatly improved the performance of its telecommunication market through opening the market by issuing operating licenses. Question 13 Will Saudi Arabia continue issuing operating licenses in the area of telecommunication? Answer Yes, Saudi Arabia intends to continue issuing operating licenses in the area of telecommunications. If so, what types of licenses will be issued, mobile telecommunication business licenses, fixed data business licenses or other types?

Answer CITC has issued licenses in many areas within the telecommunications sector. These areas include Mobile, Fixed, ISP, Data, VSAT, SMS, Telecom Hotels, Call Center Services, and many more. Further details are available at http://www.citc.gov.sa. How could foreign companies apply for the licences? Answer For class licences (e.g. ISP, SMS etc.), the process and licensing requirements are detailed on CITC's web site: http://www.citc.gov.sa. For individual facilities-based mobile and fixed services licenses, CITC follows a licensing process which includes public consultation and consideration of the availability of scarce resources. Typically, media announcements are made for such licensing initiatives, and CITC's website is continually updated to provide details to interested parties. Could the Government of Saudi Arabia explain how the foreign companies get access to the requirements and procedures of application?

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Answer Please see the answer to the previous question. Regarding the Communications and Information Technology Commission of Saudi Arabia(CITC), Question 14 Is CITC an independent regulating authority? Answer Yes, and it fully meets the requirements set out in paragraph 5 of the WTO Telecom Reference Paper. Please introduce its main functions apart from issuing licenses. Answer Apart from issuing licenses, CITC is the sole regulatory authority for the telecommunications sector. Further details on CITC functions are available at: http://www.citc.gov.sa/English/RulesandSystems/ CITCSyste/Documents/LA_002_E_CITC%20Ordinance.pdf. With respect to foreign investment licensees, please explain the division of responsibilities between CITC and the General Investment Authority (SAGIA) in the telecommunication area. Answer Para. 58 of KSA Working Party Report describe the relation between CITC and the General Investment Authority (SAGIA). Does CITC have plans to issue "Unified Licenses" and "Reselling Business Licenses" as reported? Answer Unified licensing and resale are currently under study. CITC has recently issued a public consultation process (please see details on its web site: http://www.citc.gov.sa) for MVNO, a form of resale of mobile services. If so, please explain the meaning of the "Unified Licenses". Answer The ITU defines Unified Licensing as "the unification of all services under a single license or concession allowing licensees to provide all forms of service under the umbrella of a single authorization using any type of communications infrastructure and technology capable of delivering the desired service." The Saudi Post Corporation (SPC) is a wholly state-owned corporation that monopolizes the post services in Saudi Arabia. Although the Government of Saudi Arabia has approved the privatization plan of SPC, a clear timetable to carry out the plan is not yet available. Question 15 Does Saudi Arabia have any plan to introduce new competitors into the post service area? Answer This sector is partially competitive at this stage. The Saudi Arabian Government is currently in the process of evaluating a possible expansion of this sector's competitiveness. With regard to the operation of foreign accounting firms in Saudi Arabia,

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Question 16 Are foreign investors allowed to set up accounting firms in Saudi Arabia? Answer Yes. If so, please elaborate the requirements and restrictions for foreign investors. Answer The requirements and restrictions are listed in the Kingdom's Working Party Report (WT/ACC/SAU/61 para. 280) and set forth in Saudi Arabia's Schedule of Specific Commitments. Will the regulatory authority in Saudi Arabia accept the auditing report issued by a foreign accounting firm for a foreign corporation listed in Saudi Arabia's capital market? Answer Currently, all companies listed on the Saudi Stock Exchange are Saudi companies. If so, are there any specific restrictions? Please specify. Answer Not applicable. Are foreign accounting firms allowed to operate temporary auditing business in Saudi Arabia? For example, can a foreign accounting firm entrusted by a foreign company conduct auditing for one of that company's subsidiaries located in Saudi Arabia? Answer Yes. If so, is the foreign accounting firm required to apply for a specific license? Please specify the application conditions and procedures. Answer The foreign accounting firm is required to have a license, as set forth in paragraphs 280 and 285 of the Professional Companies Law and its implementing regulations. The local companies of Saudi Arabia pay only religious tax at the rate of about 2% and their income is not subject to personal income tax. Although the tax on profits imposed on foreign companies has been reduced from 45% to 20%, it is still much higher than that imposed on the local companies. Question 17 It seems that the above practice in Saudi Arabia is not consistent with the National Treatment principle, one of the fundamental principles of the WTO. Could Saudi Arabia please provide an explanation? Answer This question is answered in full detail in KSA Working Party Report under the title "taxation and Zakat". When a foreign citizen works or runs a company in Saudi Arabia, s/he needs a Saudi Arabian with business qualification to serve as guarantor. Some cases indicate that the rights and interests of foreign labors have been violated by their guarantors.

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Question 18 Are there any laws or measures in Saudi Arabia to protect the legal rights and interests of foreign labors? Answer Yes. A foreign company must guarantee that 25% of its employees are Saudi Arabian citizens when recruiting employees in Saudi Arabia. There is also a minimum wage requirement. Otherwise, foreign employees in the same company are not able to get work visas. In 2011, Saudi Arabia published different Saudi-based proportions in different industries. The new systems and measures classify enterprises in light of their actual employment of Saudi Arabians. Question 19 Could Saudi Arabia please introduce the above new measures if they are already implemented? Answer The Ministry presented new legislation through workshops and joint meetings with the concerned players in the labor market, which were announced through various media. The Ministry gave private sector companies ample time to identify and remedy their positions before the start of the program in the 12/10/1432 AH corresponding to 10 / 09/2011 AD. It also gave facilities in the Red Area an exemption from penalties as per their status in the program until 01/01/1433 AH 26/11/2011 AD. Accordingly, it granted the facilities in the Yellow Area an exemption from penalties as per their status in the program in the program until 03/01/1433 AH 24/01/2012 AD. Saudi Arabia committed during its accession to the WTO that, if necessary, Saudi Arabia would revise its policies of employment to keep them consistent with its specific services commitments. Please explain whether the new measures are consistent with the above commitment. Answer The Nitaqat Program is consistent with the Kingdom's WTO obligations. How would the Saudi Arabian Government ensure that the above measures will not affect the operation of foreign companies in Saudi Arabia? Answer The new legislations of Nitaqat Program will not affect foreign investment companies because it does not differentiate between foreign and national companies. STATE OF ISRAEL The Secretariat Report in Part II, paragraph 16, states that the Kingdom of Saudi Arabia accords "at least MFN treatment" to all its trading partners. Could the Kingdom of Saudi Arabia please confirm this statement? Answer The Kingdom of Saudi Arabia accords MFN treatment to all its trading partners. Can the Kingdom of Saudi Arabia please provide information regarding its current legislation and practices concerning trade with Israel?

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Answer Answer to this question to be found in the Kingdom of Saudi Arabia Working Party Report para. 104. JAPAN The Secretariat Report (WT/TPR/S/256) II. TRADE AND INVESTMENT REGIME (5) INVESTMENT FRAMEWORK

Page 20, paragraphs 30 and 32 Question 1 According to paragraph 32, Saudi Arabia has some authorities which may issue an investment license other than the Saudi Arabian General Investment Authority (SAGIA), such as the Saudi Arabian Monetary Agency (SAMA) and the Capital Market Authority (CMA). Do you have any intention to unify authorities to issue an investment license on the grounds that the SAGIA has established as a one-stop shop? Answer No. IV. TRADE POLICIES BY SECTOR (4) SERVICES (ii) Financial services (a) Banking and (c) Cooperative insurance

Pages 74 and 77, paragraphs 117 and 133 Question 2 The Secretariat notes that "non-Saudi investment in such a joint-stock company in Saudi Arabia is permitted up to 60%" in the banking services and cooperative insurance. Could you provide the purpose of the limitation on foreign capital investment in the banking services and cooperative insurance? Also, we would like to know the plan for review of the limitation, if any. Answer The up to 60 percent limitation is based on the Saudi Arabia GATS commitment and it is considered to be high. In addition, the banking and cooperative insurance sectors in the Kingdom are very liberal with strong foreign participation. Saudi Arabia currently has no plans to eliminate or relax foreign equity cap restrictions beyond its GATS commitments. (iv) Transport Page 83, paragraph 157 Question 3 The Secretariat notes that "foreign investment is not permitted in land transport services, excluding inter-city passenger transport by train". Could you provide the purpose of the limitation on foreign investment in other land transport services? Also, we would like to know the plan for review of the limitation, if any.

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Answer Foreign investment is not permitted in land transport services, excluding inter-city passenger transport by train, since the regulations do not allow for such investment and there is no plan right now to liberalize the limitations placed on the participation of foreigners in land transportation services. The Government Report (WT/TPR/G/256) IV. SECTORAL DEVELOPMENTS (5) SERVICES (iv) Health and Social Services Page 20, paragraph 120 Question 4 In order to invest in health institutions to promote the transfer of technology, are there any restrictions on the health and social services sectors for foreign investment? Answer The Ministry of Health encourages foreign investment in hospitals services in accordance with the KSA services schedule of specific commitments. Japan would like to know the details of the limitations "subject to formation of a company between a foreign hospital company and a licensed Saudi medical professional" stipulated in mode 3 of limitation on market access in the sectors of hospital services and other human health services in the schedule of specific commitments of UR. Answer Such limitations are inscribed in KSA services schedules of specific commitments, the Law of the Private Health Institutions, and its Executive Regulation, issued by the Royal Decree No. (M/40) dated 3.11.1423H as stated in Chapter No. II -Table No. II.I of the secretariat report, which sets forth the details for such limitation. Are foreign diplomas and licenses for physicians, nurses and other medical professionals recognized? Answer Qualifications are assessed and registration is conducted for all healthcare workers in Saudi Arabia by the independent Saudi Commission for Health Specialties to ensure the criteria are met. To find out more information, visit the website: http://English.scfhs.org.sa III. TRADE POLICY DEVELOPMENTS (5) Trade-Related Intellectual Property Rights Page 12, paragraph 59 Question 5 Paragraph 59 of the Saudi Government's Report states that over 423 thousands counterfeited items were seized last year. Japan would like to know specific data by types of intellectual property rights (including trademark rights and copyrights), item, and final disposal (the destruction of infringement goods, etc.). Japan also would like to learn the current and planned training programmes for customs officials, which will make customs further effective. Furthermore, Japan would like to know the legal basis for informing right holders on the final disposal of infringement goods by the enforcement authorities (Ministry of Commerce and Industry or Customs).

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Answer The seizure of over 423 thousands counterfeited items that was mentioned in paragraph 59 of the Saudi's Government Report, was made by the Ministry of Commerce and Industry in 2010 with respect to violations of the Trademarks Law. They mainly consists of perfumes, cosmetics, spare parts, accessories, CDs, USB flash memories, textile products, video games, watches, sunglasses and mobile phones. The procedure relating to the disposal of these items is described below. The Ministry of Commerce and Industry is transparent in the enforcement of the Trademarks Law. As soon as the Ministry seizes any goods suspected of being counterfeit, it informs the right holder and seeks its technical assistance to confirm the counterfeit. The testimony of the trademark owner is included in the investigation file, which is then handed over to the public attorney in preparation for judicial process carried out at the Board of Grievances (BOG). The right holder has the right to attend hearings at the BOG, to intervene in the case, to get a copy of the final decision and to witness the destruction of the counterfeit goods when the decision imposes such destruction. 6,760 customs officials, constituting 67% of the total Saudi Customs workforce, were trained locally and abroad, in organization such as WIPO ,WCO and USPTO, in 2010 in the areas of the border protection of IPR "Trademarks and Copyright". The Saudi Customs has signed a number of memoranda with the right holders or their representatives to train Customs officials. For more details regarding capacity building, including training, please see the "Annual Report Saudi Customs 2010G" at: http://www.customs.gov.sa Regarding the legal basis for informing the right holders regarding the final disposal of goods seized by the Customs Authority, Article 2/a of the "Regulations Of Border Procedures For Protection Of Intellectual Property Rights of Trademarks and Copyrights", issued by the Ministerial Decision No. (1277) of 15 Jumada I 1425H (corresponding to 3 July 2004) states that "the Customs Authorities may suspend the clearance of goods suspected of bearing imitated trademarks upon having prima facie evidence to this effect, and they shall notify the importer and the trademark owner, if his address is known, of the suspension". The right holders may then follow the case up to the final disposal of infringement goods. EUROPEAN UNION Report by the Government III. TRADE POLICY DEVELOPMENTS (4) GOVERNMENT PROCUREMENT Page 11, para. 56 Parties to the GPA concluded in December 2011 the negotiations on the revised GPA text and on new and enhanced market access commitments. Saudi Arabia is an observer to the GPA since December 2007. Given the recent conclusion of the GPA negotiations, the EU would be interested in knowing when Saudi Arabia will initiate its accession negotiations? Answer The Kingdom of Saudi Arabia welcomes the successful deal reached by parties to the plurilateral Government Procurement revised agreement. The Saudi national committee intends to translate the new agreement into the Arabic language, to study it carefully and comprehensively, and to consult widely both within the Government and with the private sector.

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The Kingdom of Saudi Arabia would be grateful if the WTO Secretariat could organize for Saudi officials a national seminar and workshop on the WTO Government Procurement Agreement. This would greatly help us in our examination of the issue in the light of the new agreement. Saudi Arabia has listed this request in the Annex to the Government report as a technical assistance need of Saudi Arabia. We hope that this request can be met during the first half of 2012. After the completion of the workshop and the examination of the new agreement by Saudi officials, a recommendation will be made to the ministerial committee, which will determine appropriate steps with respect to the commencement of the accession negotiations. Report by the Secretariat I. ECONOMIC ENVIRONMENT The EU is pleased to note that Saudi Arabia has ratified five of the core ILO Conventions and one of the priority Conventions. It also welcomes Saudi Arabia's vote for the ILO Convention Concerning Decent Work for Domestic Workers at the 100th Session of the International Labour Conference. Question 1 Could Saudi Arabia please indicate its intentions in relation to the ratification of the following core and priority ILO Conventions which it has not yet ratified: Convention 87 on Freedom of Association, Convention 98 on Collective Bargaining, Convention 138 on Minimum Age, Convention 122 on Employment Policy, Convention 129 on Labour Inspection (Agriculture) and Convention 144 on Tripartite Consultation? Could Saudi Arabia explain how it ensures that the eight fundamental ILO Conventions are respected in the informal sector? Answer Those two questions are outside of the WTO scope and could be discussed in the relevant international bodies. (1) MAJOR FEATURES OF THE ECONOMY Page 2, para. 2 According to the Secretariat's Report, in December 2009, Bahrain, Kuwait, Qatar, and the Kingdom of Saudi Arabia ratified an agreement to establish a monetary union. Further integration within the GCC area, including planned single currency is expected. Question 2 Could Saudi Arabia elaborate further on technical details of the monetary union that are currently under discussion in the Gulf Monetary Council? Answer The primary objective of the Gulf Monetary Council (GMCO) is to prepare the required infrastructure for establishing the Monetary Union, in particular the establishment of the Central Bank and its analytical and operational capacities. GMCO needs to make the necessarily preparations for the Monetary Union to be successful, such as:

Integrated GCC payment and settlement system. Harmonization of banking regulations and the national central bank laws. Defining the legal criteria for adopting a common currency. Defining a common financial stability and crisis management framework.

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Harmonizing national monetary and financial statistics and producing union wide statistics that take into account intra-trade statistics.

Setting conversion rates of national currency to the new currency. However, the details of all technical issues are the sole responsibilities of GMCO. (3) TRADE PERFORMANCE AND INVESTMENTS (ii) Foreign direct investment Question 3 Could Saudi Arabia confirm that economic activity undertaken in relation to a new or existing investment respects Saudi Arabia's national labour law and the fundamental rights at work as embodied by the ILO's 2008 Declaration on Social Justice for a Fair Globalisation? How does Saudi Arabia ensure that these are in fact respected? Answer This question is outside of the WTO scope and could be discussed in the relevant international bodies. Page 8, para. 14 The Secretariat's report indicates that "Saudi Arabia has become the eighth biggest recipient of foreign direct investment (FDI) in the world./…/". It further elaborates that this was largely the result of positive developments in the economy over the period, and the steps taken by Saudi Arabia to improve its investment climate, including through the opening up to foreign investment of certain key economic activities (e.g. mining, petrochemicals, telecommunications), and the development of four economic cities and special economic zones. Question 4 In this context, could Saudi Arabia elaborate on its specific plans to further improve its investment climate? Answer Saudi Arabia plans to attract quality foreign and domestic investments to ensure sustainable development in line with national goals, such as high-value-added job creation; to enhance the role of the private sector in socioeconomic and environmental development and expand the domains of private investments (domestic and foreign) and public-private partnerships; and to enhance human development, expand the range of options open to individuals to enable them to acquire and use knowledge, skills and expertise, and to provide appropriate healthcare services. What additional steps Saudi Arabia intends to undertake so as to improve governance and enhance transparency further? In particular, could Saudi Arabia provide information on where exporters to Saudi Arabia can find information about the laws, rules, and regulations including information about the import and export taxes applied to each product category and how these taxes are administered?

Answer All related laws and regulations are published on the official web site of Ministry of Commerce and Industry at the following link: http://mci.gov.sa/english/moci.aspx?PageObjectId=713. II. TRADE AND INVESTMENT REGIME (1) THE INSTITUTIONAL FRAMEWORK Page 12, para. 2 According to the Secretariat's Report, the judicial system of Saudi Arabia is based on Shariaa (Islamic law) and the Basic Law of Governance. At the top of the judicial system is the King. The independence of the judiciary and judges is protected by the Constitution.

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Question 5 Could Saudi Arabia elaborate further on how judicial and arbitration decisions are enforced? Answer The final judicial orders are enforced by the enforcement judge. The Code of Procedures provides for all procedures of enforcement and the powers of the judge. Arbitration awards are enforced after the enforcement order is rendered by the competent court as per the provisions set forth in the Saudi Arbitration Law. Then, the awards are final and enforceable and have the power of judicial judgments. Foreign judgments and arbitration awards are enforced after an order is rendered by the Board of Grievances after ensuring the reciprocity of treatment measures or inconsistency with public order. Saudi Arabia has signed many agreements on reciprocity of treatment and the enforcement of judicial judgments and arbitration awards. (4) TRADE AGREEMENTS Question 6 Could Saudi Arabia elaborate on the extent to which, and how, social and labour issues are addressed within each of the preferential agreements referred to in the Secretariat and the Government reports? Answer Saudi Arabia is of the view that social and labour issues should not be dealt with under WTO. These issues could be discussed in the relevant international bodies. (ii) Regional Agreements (a) Gulf Co-operation Council (GCC) Pages 16 – 17 para-s 17 and 19 The Secretariat's Report states that "on 1 January 2008, the Members of the GCC also formed a common market /…/". Question 7 Could Saudi Arabia provide an update on the status of the GCC efforts to develop a common market? Are there any barriers remaining to free movement of goods within GCC? Answer GCC countries agreed in 28 December 2007 session to announce the establishment of the Gulf Common Market that was implemented as from 1 January 2008. GCC countries implemented the requirements of the customs union in January 2003, which is based on the single point of entry and on the application of single tariff rate and single customs law. This has led to the free movement of goods within the GCC countries. Page 17, para. 20 The Secretariat's Report states that while all GCC Members apply the 5% CET on most imports, certain differences remain (e.g. on alcohol products). In addition, customs checks between GCC members are maintained for security and other reasons (e.g. statistics, and to avoid piracy and commercial cheating). Prohibited goods may not circulate between Members' territories; restricted products may transit the territory of Members who restrict their import, presumably with the appropriate documentation.

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Question 8 Could Saudi Arabia provide a complete up-to-date list in HS codes with all the industrial and agricultural products and corresponding duties with respect to which it has reserved its right to impose differential duties? Answer A list of agricultural and industrial goods of different customs duties percentage in Saudi Arabia from the rest of the GCC countries is attached. Page 17, para. 22 The Secretariat's report states that GCC is in the process of FTA negotiations with several countries. Question 9 Could Saudi Arabia furnish information on how many FTAs it is currently negotiating, and when they are envisaged to enter into force? Could Saudi Arabia also spell out the main objectives pursued under the FTAs that it is negotiating? Answer Saudi Arabia does not negotiate any FTA individually. All FTAs are negotiated through a GCC unified team. The GCC, at this time, is evaluating the entire FTA negotiations process, including the main objectives. All negotiations are on hold until the evaluation is finalized and approved. Could Saudi Arabia elaborate on the objectives of its regional and bilateral trade policy, in particular on the consistency between its FTA policy and its participation in the customs union with the GCC countries? Answer As mentioned in the answer to the previous question, the FTA policy of all GCC member states is linked to the GCC custom union. It is a well-founded policy by the leaders of the GCC countries. Could Saudi Arabia confirm whether it aims at negotiating an ambitious and comprehensive FTA with China? If so, what is the envisaged scope of this Agreement? Answer Please refer to answer to question no. 12. Page 18, para. 22 The Secretariat's report mentions that some GCC members (e.g. Bahrain and Oman) also have FTAs on an individual basis. The GCC states have operated the common external tariff (CET) and since 1 January 2008, also formed a common market. Question 10 In the light of the above, how is the issue of free circulation of goods entering the GCC common market under these individual FTAs addressed under the GCC rules? Answer Under the principle of final destination and the clearing mechanism currently in place between the GCC countries, all foreign goods, including U.S. commodities circulates in accordance with the clearing mechanism. If the goods are circulated to the markets of the rest of the GCC countries without clearing documents from the destination from which the goods are imported, the customs duties are collected at the border ports. The GCC is looking forward for a mechanism to deal with these agreements in line with the requirements of the Customs Union.

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(5) INVESTMENT FRAMEWORK Page 18, para. 26 The Secretariat's Report states that "under the Foreign Investment Law of 2000 and its Implementing Regulations of 2002, foreign investment may take the form of an enterprise owned by foreign and national investors (i.e. joint-ventures but with no requirement for minimum share for national investors); or an enterprise wholly owned by foreign investors (i.e. 100% foreign equity). Foreign investment projects benefit from all of the incentives and privileges offered to local projects". Question 11 Related to foreign investment, the rule that it may take the form of an enterprise wholly owned by foreign investors does not apply for the Saudi Arabian engineering consultancy sector. Does Saudi Arabia envisage any modification in their requirements on foreign capital participation specifically in Saudi Arabian engineering consultancies? Answer Foreign investment in the engineering consultancy sector is permitted by the Saudi schedule of specific commitments on services (WT/ACC/SAU/61/Add.2), subject only to a foreign equity limit of 75%. The applicable legislation is consistent with this commitment: the Professional Companies Law (enacted Royal Decree No. M/4 of 18.2.1412H, and its Implementing Rules) allows foreign participation of up to 75% in the capital of consulting firms, including engineering consultancy firms. There is no present intention to modify this requirement. There is a proposal to reconsider the law of vocational companies to be in line with the accelerating developments in the vocational activities, including engineering consulting Moreover, in Saudi Arabian engineering consultancies it seems highly recommended for partners to be physical people while not legal entities. Does Saudi Arabia contemplate the removal of this condition in relation to Saudi Arabia partners being physical people? Answer The requirement for a partner in an engineering consultancy firm to be a physical person applies to Saudi partners, who must be duly licensed professionals in Saudi Arabia. There is no present intention to modify this requirement. The Professional Companies Law permits such licensed professionals to partner with a foreign juridical person to supply engineering consultancy services, provided that foreign equity is limited to 75%, as explained in the answer to question 16. Further related to foreign investment, legal consultancy services cannot be exercised without a local partner. Does Saudi Arabia contemplate the removal of this condition? Answer There is no intension in the meantime to remove this condition. Page 20, para. 33 The Secretariat's Report states that "Foreign investors may obtain more than one licence in diverse activities, provided they are not the owner of or a shareholder in a project that is in financial default. SAGIA set up an Investor's Service Centre (ISC) to issue licences to foreign companies, provide support services to investment projects, offer detailed information on the investment process, and coordinate with government ministries in order to facilitate investment procedures. The ISC must decide to grant or refuse a licence within 30 days of receiving an application and supporting documentation from the investor".

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Question 12 In practice, foreign companies operating in Saudi Arabia cannot simultaneously register as an engineering and construction company, even when they have capabilities for offering their services in both markets. This rule implies some constraints for foreign companies when bidding for EPC contracts. Is there any practical way to circumvent this situation? Does Saudi Arabia plan to alter this regulation in the near future? Answer The foreign companies working in the engineering sector are vocational companies established in partnership with a Saudi partner, provided that the share of such Saudi partner is not less than 25% of the company's capital. A company is established in the General Department for Companies without the need to obtain the approval of General Investment Authority. The approval of the Saudi Council for Engineers for the establishment of the engineering companies is per the requirements set forth in the law of the vocational companies. Foreign construction companies are commercial companies that need the approval of the General Investment Authority for their establishment. They may practice the EPC activity in enforcement of the directive of the Council of Ministers communicated in the letter of H.E. the second deputy of the Cabinet No. 6827/MP dated 11/8/1430 AH, directing the Ministry of Commerce and Industry to permit businesses to include in their purposes the management of construction projects, laying down detailed engineering designs, purchasing materials and implementing technically complicated projects under their management, as determined by the Ministry of Commerce and Industry in coordination with the Saudi Council for Engineers. These projects are particularly in the energy, water and petrochemicals sectors. A company needs to obtain the preliminary approval of the Saudi Council for Engineers to perform the EPC activity. After the application is considered, it is referred to the notary public for registration. Prior to the registration in the commercial register for new companies or the amendment of the commercial register for existing companies, it is required to obtain a final approval of the Saudi Council for Engineers. III. TRADE POLICIES AND PRACTICES BY MEASURE (1) MEASURES DIRECTLY AFFECTING IMPORTS (i) Customs registration, documentation, procedures, and valuation Page 21, para. 2 The Secretariat's Report states that "all imports" into Saudi Arabia must be accompanied by a certificate of origin. Question 13 Could Saudi Arabia elaborate on whether this obligation also covers non preferential imports? If so, on the basis of which rules does this non preferential origin have to be established? Which are the forms and procedures for the issuance of this certificate? Answer Yes, Saudi Arabia requires that a certificate of origin to be attached for all products, including non-preferential imports and products re-exported to Saudi Arabia under Article 25 of the Common Customs Law. This requirement exists to identify the nationality of the goods and the country of production in order to combat commercial fraud and counterfeiting and exchange trade statistics. Customs authorities accept a copy of the certificate of origin. The certificate is issued by the competent authorities in the exporting country in accordance with procedures of these countries. It is noted that Saudi Arabia has committed itself in paragraph 167 of its Working Party Report to apply the WTO Convention on Rules of Origin as of the date of accession. To date, the WTO did not issue the rules of origin for non-preferential trade.

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Page 21, para. 4 The Secretariat's Report outlines that Saudi Arabia has been applying the GCC Common Customs Law and its Rules of Implementation and Explanatory Notes. Under the "single port of entry" principle, items imported into Saudi Arabia (or any other GCC State), and destined for another GCC market, are subject to customs duty only at the first point of entry into the GCC. Question 14 What policies is Saudi Arabia following or will follow in order to ensure uniform and consistent application and implementation by custom officials of existing import rules and procedures? How does it ensure uniformity in customs decisions across the country in relation to customs valuation, training of custom officials, disclosing internal procedures to companies, respect of schedules and written queries? Answer GCC leaders agreed at the meeting held in December 2011 on the establishment of the Board for the GCC customs union that will start on 1 June 2012. The Board composed of general directors of the Customs agencies of the GCC countries and chaired periodically. The Board's functions will be to unify customs procedures and to verify the implementation of all requirements of the Customs Union in the ports of first entry in all GCC countries. Also, working teams was formed from all Member States, and their mission to make periodic infield visits to the customs outlets in all GCC countries in order to ensure compliance with the Common Customs Law and the requirements of the Customs Union. (iv) Import prohibitions, restrictions and licensing Page 28, para. 28 The Secretariat's Report states that "Under the GCC Common Customs Law, each GCC state determines its own list of prohibited or restricted products, although members are developing a common list. /…/". Question 15 Could Saudi Arabia provide an update on the status of the GCC efforts to develop a uniform list of import prohibitions, restrictions and licensing? Answer Work is underway within the framework of the customs union of the GCC countries on the development of individual and common lists of prohibited and restricted goods. (vi) Standards and other technical requirements The Secretariat's Report does not state it but to EU's latest knowledge the imports of milk and milk products from the EU must be accompanied by a certificate declaring them to be free of radiation. Could Saudi Arabia provide information whether it is considering reviewing the radioactivity certificate requirement for the importation of imports of milk and milk products from the EU? Answer The certificate in question is no longer required for the import of milk and milk products. Page 33, para. 42 The Secretariat's Report refers to the fact that "Saudi Arabia is harmonizing its technical regulations and standards at the GCC level./…/", and that "/…/In general, GCC and Saudi standards are based on international standards./…/".

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The Saudi Food and Drug Administration (SFDA) had notified on 19 May 2011 the draft "GCC Guide for Control on Imported Foods" (hereinafter the "draft Guide") to the WTO SPS Committee (ref. G/SPS/N/SAU/14). The draft Guide includes general requirements applicable to foodstuffs (not live animals) and makes references (without listing them) to other more specific standards and regulations. Question 16 Could Saudi Arabia provide a list of existing SPS regulations and standards applicable at the level of the GCC and, where different standards and regulations exist, in Saudi Arabia, to the import of: a) Foodstuffs, including processed foods, meat of bovine, meat of ovine, meat of caprine, meat

of poultry and other birds, and also fish, eggs and dairy products? Answer All GSO-GCC standards are applicable to all GCC members, but where the GSO standard does not exist, Saudi standards shall apply. WTO Members can find the relevant standards and regulations on the GSO-GCC standardization organization website: http://www.gso.org.sa. b) Live bovines, live ovines, live caprines, live poultry and other birds, fish, and their genetic

material?

Answer The Kingdom applies the Veterinary Quarantine Law and its Executive Regulation in the Cooperation Council for the Arab States of the Gulf. Import permits are required for all live animals will be added to the list of goods subject to non-automatic import licensing , also all standards and regulations of the World Organization for Animal Health OIE are applied. Could Saudi Arabia provide a list of existing SPS regulations and standards applicable to the import at the level of the GCC and, where different standards and regulations exist, in Saudi Arabia, of plants and plant products? Answer

- Plant Quarantine Law and its Executive Regulation in the Cooperation Council for the Arab States of the Gulf, and all of the standards and requirements set by the International Convention for Plant Protection and the WTO Agreement on Sanitary and Phytosanitary (SPS).

- The Kingdom applies the quarantine law for the cooperation Council for the Arab States

of the Gulf (GCC), all SPS regulations are consistent with this law ,any differences with this law it will be amended according to it .

Could Saudi Arabia indicate if and if yes, by when, it intends to notify to the WTO any relevant change to the existing or new SPS standards or regulations of Saudi Arabia or of the GCC? Answer The Kingdom of Saudi Arabia has made 20 SPS notifications to notify WTO Members of new or amended SPS Measures since March 2010. Saudi Arabia is still notifying WTO Members of amended or new SPS measures. Could Saudi Arabia indicate when would the final version of the draft Guide be made available to the public?

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Answer Saudi Arabia notified WTO Members on 19 May 2011 about the concerned draft. Since then, Saudi Arabia and the GCC states have been modifying or amending the draft on the basis of WTO Members' comments. Could Saudi Arabia indicate whether the GCC or Saudi Arabia intend to make publicly available a guide for control on imported live animals (similar to the mentioned draft Guide)? Answer The Kingdom would prepare this guide and will be published and notified when completed. Could Saudi Arabia indicate, in the SPS field, the list of standards and regulations being harmonizing in Saudi Arabia and at the level of the GCC, and the respective work programme? Answer All technical regulations and standards are listed in the GSO on the basis of a decision from the GSO Technical Committee, of which Saudi Arabia is a Member. (b) Sanitary and phytosanitary measures Page 34, para. 47 The Secretariat's Report refers to the fact that "the national enquiry point under the WTO SPS Agreement is the Saudi Food and Drug Authority (SFDA) (…), which "/…/aims to ensure food and drug safety for humans and animals, and the safety of biological and chemical substances /…/". In the draft Guide (points 1 and 9), it is mentioned that each shipment imported into the GCC states must be accompanied by the health certificate issued by a competent authority or an officially recognized organization of the exporting country in compliance with the GCC regulations on food safety. The EU has the view that, generally, competent authorities have surveillance programmes in place to monitor the presence of several undesirable substances or to evaluate the impact of regulatory and non-regulatory measures on the maintenance of a desirable SPS level of protection. Such official surveillance programmes complement other official and management tools (e.g. HACCP) put in place by business operators. On their own, these surveillance or monitoring programmes are not designed to guarantee that individual products or consignments are safe. Question 17 Could Saudi Arabia indicate the reasons to ask that control of undesirable substances in foods (which results in deviation from the veterinary standard procedure for the export of animal products) are to be guaranteed by the competent authority of the exporting country and not by the food business operator or exporter? Answer The competent authorities in the exporting country shall be responsible for ensuring that the animal products comply with the technical regulations and standards of Saudi Arabia.

Page 35, para. 48 The Secretariat's Report refers to the fact that "since 2003, Saudi Arabia has been applying the GCC Laws on Veterinary Quarantine and Plant Quarantine. Imports, exports, and domestic production of plants and animals are subject to inspection by the Ministry of Agriculture, which also examines and issues SPS certificates for all agricultural products prior to their export. All imports of plants must be accompanied by agricultural clearance certificates issued by the appropriate authorities in the country of export. /…/"

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The draft GCC Guide for Control on Imported Foods makes a number of references to audits, i.e. "audit of systems in exporting countries" (point 4 of the draft Guide), "GCC countries or their agents" (point 5.1 of the drat Guide), the authenticity and accuracy of official certification and certification by officially-recognized bodies will be periodically verified and audited by the countries of the GCC (point 6 of the draft Guide). Question 18 Could Saudi Arabia provide detailed information about the procedures and requirements (including pre-audit questionnaires, duration of the visits to the exporting country, types of sites to be visited, associated costs, number of inspector/auditors, reporting procedures) applicable to the auditing by Saudi Arabia of competent authorities of exporting countries, to verify the compliance with hygiene, food safety and animal and plant health requirements? Answer Detailed information about the procedures and requirements in question can be found at the following link: http://www.sfda.gov.sa/En/Food/Topics/System+and+procedures+of+food+control/. Page 35, para. 50 The Secretariat's Report states that "Saudi Arabia is a member of the World Organization for Animal Health (OIE), the International Plant Protection Convention (IPPC), and Codex Alimentarius". Question 19 Could Saudi Arabia indicate whether Saudi Arabia follows, without any exception, the international standards laid down by the World Organization for Animal Health (OIE), regarding the import of animals and animal products (e.g. Chapter 11.5 on Bovine Spongiform Encephalopathy) or, if not, what are the criteria (e.g. scientific justification) that Saudi Arabia may use for not adhering to them? Answer Saudi Arabia is compliant with the OIE regulations and standards. However, Saudi Arabia has reviewed the scientific report of the European Food Safety Authority (EFSA), which indicates that although the slaughter age, according to OIE, has been raised above 48 months, there are still BSE cases expected to be reported. In addition, SFDA mandate is to protect the safety of Saudi citizens, taking the necessary precautionary actions, even if there are assurances in the EU BSE control system. Could Saudi Arabia indicate where can the list of quarantine plant pests of Saudi Arabia be found? Answer A list of all quarantine pests which annexed to the Quarantine Law for the Cooperation Council for the Arab States of the Gulf (GCC) is attached. Could Saudi Arabia indicate whether import permits are required for all plants and plant products, if the International Standard on Phytosanitary Measures ISPM 20 (point 4.2) has been or will be taken into consideration, and if import permits include phytosanitary requirements? Answer Import permits are applied to the plants and plant products used for propagation such as seedlings and seeds. Could Saudi Arabia indicate whether phytosanitary certificates are required for all plants and plant products, and whether the International Standard on Phytosanitary Measures ISPM 32 has been taken into consideration?

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Answer Yes. Could Saudi Arabia indicate for which plants or plant products is a Pest Risk Assessment (PRA) required prior to import, and what is the timeframe to perform a PRA? Answer All quarantine pests listed in the attached tables are prohibited to inter into the kingdom Could Saudi Arabia indicate whether it entirely follows, in the context of the import of food and of the evaluation of the competent authorities of exporting countries, the "principles for food import and export inspection and certification" of the Codex Alimentarius (CAC/GL 20-1995) and, if not, what parts are not followed and why and, in this case, what other procedures/requirements are followed? Answer Saudi Arabia entirely complies with the Codex Alimentarius (CAC/GL 20-1995) as adopted in 2007 by GSO-GCC Standardization organization (refer to GSO CAC/GL 20-2007). Could Saudi Arabia indicate whether it entirely follows, in the context of the import of food, the "guidelines for the design, operation, assessment and accreditation of food import and export inspection and certification systems" of the Codex Alimentarius (CAC/GL 26-1997) or, if not, what parts of these guidelines are not followed and why and, in this case, what other procedures/requirements are followed? Answer Saudi Arabia complies with the Codex Alimentarius (CAC/GL 26-1997). (c) Marking, labelling, and packaging requirements Page 35, para. 51 The Secretariat's report states that "SASO is responsible for establishing marking, labelling, and packaging requirements. Saudi Arabia is updating its packaging and product labelling standards in line with the GSO norms. In June 2007, two new standards for the labelling and expiry period of food products were approved at the GCC level. They eliminate the long-standing requirement that at least half of a product's shelf-life must be valid when a product reaches a GCC port of entry. Moreover, mandatory shelf-life is now stipulated only for perishable food products and baby food, while voluntary shelf-life standards apply to other food products". Question 20 Exporters often find difficulties on complying with SASO regulations when diverse interpretations are made at different points of the entry in the Saudi Arabian market or at different moments of time. In this sense, technical training needs to be further enhanced in order to improve understanding of these rules and encourage a greater convergence in their practical application. Is Saudi Arabia planning any step in that direction? Answer SFDA is designing courses and training programs for its inspectors at the BIPs in order to improve their understanding of the rules and regulations that are related to export and import missions. Page 35, para. 53 According to the Secretariat's report food products must carry a label indicating i.a. their country of origin.

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Question 21 Could Saudi Arabia explain under which rules is this country of origin determined? Answer Saudi standard No. 1/2007 (Labelling of prepackaged food stuffs), Paragraph 5/5 country of origin states that:

5/5/1 The country of origin of the food shall be declared on the food containers if its omission would mislead or deceive the consumer about the item, especially in the case of repacking. 5/5/2 When a foodstuff undergoes processing in a second country which may probably change its fundamental nature, the country where the processing has taken place shall be considered as the country of origin for labelling purposes.

Page 35, para. 53 The Secretariat's report refers to the fact that "As an Islamic country, Saudi Arabia has strict marking and labelling requirements for meat and poultry products, including that the product was slaughtered according to Islamic Halal procedures, if so required. /…/". The Halal attestations (6.3 of the draft Guide) applicable to import of meat, meat products and products of meat origin and the health attestations applicable to import of a number of foodstuffs (points 6.1, and 6.2 of the draft Guide), contain a number of cross references to other more specific requirements, which include hygiene, inspections by competent authority, animal health in general, infectious diseases in particular approval procedures, slaughtering procedures, quarantine pests and approved Islamic Authorities. Question 22 Could Saudi Arabia indicate whether it entirely follows, in the context of the import of food and of the evaluation of the competent authorities of exporting countries, the "general guidelines for use of the term "Halal" (CAC/GL 24-19971), and, if not, what parts are not followed and why and, in this case, what other requirements are followed? Answer Refer to the answer to question 44. Could Saudi Arabia indicate when would the competent authorities of Saudi Arabia, or of the GCC, make publicly available detailed Halal requirements − including slaughtering procedures and structural requirements to be complied with by business operators and competent authorities in slaughterhouses of exporting countries − applicable to the import of bovines, ovines, caprines, poultry and their products (including genetic material, meat, eggs and dairy products)? Answer Refer to the answer to question 44. Could Saudi Arabia provide detailed information about the procedures, timing and requirements applicable to approval by Saudi Arabia of Halal competent authorities in exporting countries? Answer Refer to the answer to question 44. Could Saudi Arabia provide detailed information about the procedures, timing and requirements applicable to the evaluation/audit by Saudi Arabia of Halal competent authorities in exporting countries?

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Answer Saudi Arabia implements the following standards:

1. GSO 1931/2009 HALAL FOOD Part (1): General Requirement. 2. GSO 2055/2010 HALAL FOOD - Part (2): Guidelines for HALAL Food Certification

Bodies and their Accreditation Requirement. 3. GSO 993/1998 Animal slaughtering requirements according to Islamic law.

(vii) Government procurement Page 36, paras. 56–57 The Secretariat's report states that "there is no central government procurement authority in Saudi Arabia; each government agency may procure goods, works, and services under its own decentralized budget. Government works and procurements must be put up for public tender, unless exempted under the Procurement Law (Article 6). The Procurement Law also applies to projects and works executed by government authorities outside Saudi Arabia (Article 70), but does not apply to certain procurements, including (Article 47): weapons and military equipment; consultancy; spare parts; goods and services available only through one supplier; and medical supplies urgently needed in outbreaks of epidemics." According to the authorities, Saudi Arabia employs mostly open tendering procedures. Other procurement procedures used include: selective tendering; limited tendering, and single tendering. The value of a single-tender purchase must not exceed SAR 1 million. Foreign suppliers that participate in government procurement are required, inter alia, to register with the Saudi Arabian General Investment Authority (SAGIA), and establish a training programme for Saudi nationals. There is frequently an offset requirement for large military projects, which is determined on a project-by-project basis". Question 23 Could Saudi Arabia provide further information on how it ensures transparency in public procurement processes and how it ensure that it applies to all bidders (whether domestic or foreign)? Does Saudi Arabia have any plans in amending its current public procurement legislative framework? Answer The Kingdom of Saudi Arabia government procurement is regulated under government tenders and the procurement law which was enacted by Royal Decree No. M/58 of 4.9.1427 H (September 2006) which aims at:

(i) Regulating procedures of tenders and procurements carried out by government authorities and ensuring they are not influenced by personal interest in order to protect the public funds;

(ii) Achieving the maximum degree of economic efficiency in government procurements and carrying out government projects at fair competitive prices;

(iii) Promoting honesty and competition and ensuring fair treatment of suppliers and contractors in accordance with the principle of equal opportunity;

(iv) Guaranteeing transparency at all stages of government tender and procurement procedures.

I. All government works and procurement are offered for in public tender except for those exempted under the provisions of the Tender and Procurement Law. Article 6 of the Law states:

"All government works and procurement are put for in public tender except for those exempted under the provisions of this Law".

II. All government tenders are announced in the Official Gazette (Um Al-Qura), in two local newspapers and by electronic means of advertisement. Article 7 (a) of the Law states:

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"All government tenders shall be announced in the Official Gazette, in two local newspapers and by electronic means of advertisement in accordance with the Implementing Regulations of this Law. The bid submission date and the sealed-bid opening date as well as places thereof shall also be specified in the tender announcement".

III. Article 10 (d) of the Implementing Regulation of the Law states: "The announcement of the tender shall include clear and comprehensive information

about the works announced and shall at least include the following: - Name of the advertising authority. - Number, description and purpose of tender. - Scope of classification. - Price of documents and place of sale. - Time and place of submission and opening of bids".

IV. The Committee announces to the bidders or their representatives present in the opening session, the name of the bidder, his total price and any increase or decrease thereon in the original bid. Article 27 (b) of the Regulation states:

"The Committee shall announce to the bidders present or their representatives, the name of the bidder, his total price and any increase or decrease thereon in the original bid letter".

V. Government authorities invited to the tender announce the results of public tenders and government procurements for which they contracted and whose values exceed (SAR 100.000) one hundred thousand riyals. Article 74 of the Law states: "Government authorities shall announce the results of public tenders and government

procurements which they contract for their execution and whose values exceed one hundred thousand riyals. The Implementing Regulations shall determine the announcement method and procedures".

VI. An excluded bidder is informed of the grounds for exclusion by an official letter upon his request. Article 40 of the regulation states: "An excluded bidder shall be informed of the grounds for exclusion by an official letter upon his request". As for whether there is an action plan for making any amendments on the existing Government Tenders and Procurement Law, there is always a possibility to amend any provisions of the law if needed.

(2) MEASURES DIRECTLY AFFECTING EXPORTS What measures – if any – does Saudi Arabia take to ensure that goods destined for export are produced in full respect of these fundamental rights at work? Answer The Kingdom of Saudi Arabia requests further clarification regarding this question. (ii) Export duties and taxes Page 38, para. 67 The Secretariat's report states that Saudi Arabia applies an export duty to untanned hides and skins at a rate of SAR 2000/tonne (about 20%). It is being reduced by 20% annually (as from 10 September 2008), and will be completely eliminated on 10 September 2013. Currently, Saudi Arabia does not apply any other export duty. Question 25 Could Saudi Arabia provide information on where exporters can find information about export duties and taxes and how are these administered?

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Answer Exporters may find information about the administration of Saudi Arabia's export procedures at the website of Saudi Customs: http://www.customs.gov.sa. In view of the above, could Saudi Arabia qualify the rule (laid down in customs circular number 850/11/m dated 25/10/1430) according to which upon export of bitumen water insulation rolls the difference between the local prices and the international prices will be collected by customs for 60% of the weight of the total net product as lump sum revenue? Answer Customs collects the difference as follows: 60% of the net weight of the waterproofing roll "bitumen" * the price difference =the amount paid by the export to the State on exportation. (3) MEASURES AFFECTING PRODUCTION AND TRADE Question 26 Could Saudi Arabia explain what it is doing to help its producers: a) Produce goods which are environmental and socially sustainable? b) Access niche markets overseas through adherence to voluntary sustainability standards (for example, Fair Trade, UTZ Certified, Global G.A.P.)? Answer

1) Apply General Environmental Law and Rules for Implementation, where the ultimate achievement is the implementation of sustainable development concept.

2) Environmental approval certificates (Environmental permits) which required for all manufactures we make sure it is environmentally and socially sustainable through Environmental Impact Assessment studies, which include environmentally and socially impacts assessment.

3) Implement Environmental standards during operation of the producers' activity. 4) Encourage producers to have international certifications to help them to access to

international markets. 5) Establishment of Saudi National Committee for energy efficiency, which will regulate energy

efficiency for goods used or produce in the country.

(iv) Intellectual property rights Page 48, para-s 100–101 and page 49 para. 104 Pharmaceutical companies have to submit their Exclusive Marketing Rights (EMR) applications under the Exclusive Marketing Rights Royal Decree (jointly formulated by the Ministry of Health and King Abdul Aziz City for Science and Technology (KACST)) to KACST, which will then review the applications and forward eligible applications to the Saudi Food & Drug Authority (SFDA) to ensure that the pharmaceuticals identified in the application receive exclusive rights for marketing and manufacturing in the Kingdom. The mechanism applies to pharmaceutical products for which patent applications had been submitted under the repealed Patent Law issued by Royal Decree No. 38/M of 1989 and were still pending at the time of coming into force of the Royal Decree No. 27/M on 17 July 2004. Question 27 How is it ensured that pharmaceutical companies are informed in a transparent and reliable way about the outcome (status) of their Exclusive Marketing Rights applications? Answer All decisions are notified to the company in writing.

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How is it ensured that in case of refusal to grant an EMR, the company is duly informed of the underlying reasons for the refusal? Answer The company is informed on writing. Can companies launch an appeal against a refusal to grant an EMR? Answer Yes, according to Article 13(b) of the Law of the Board of Grievances, any party may appeal decisions issued by administrative authorities, public agencies or independent bodies before the Board of Grievances. Page 48, para. 100 and Government's Report, page 11, para. 57 The Secretariat's report states that Saudi Arabia committed itself to full implementation of the TRIPS Agreement without a transition period during its WTO accession negotiations. Question 28 How has Saudi Arabia implemented its obligation under Article 39 of the TRIPS Agreement to protect undisclosed test or other data submitted in the framework of a regulatory approval procedure against disclosure and against unfair commercial use? Answer The Regulations for the Protection of Confidential Commercial Information provides protection for undisclosed test or other data submitted in the framework of a regulatory approval procedure against disclosure and unfair commercial use in accordance with the provisions of Article 39 of the TRIPs Agreement. Could Saudi Arabia specify the relevant domestic acts providing for data protection and explain their main provisions and how they are being implemented in practice? Answer Saudi Arabia has issued the Regulations for the Protection of Confidential Commercial Information to protect test data and other trade secrets in accordance with the TRIPs Agreement. Article 5 of the Regulations provides for the protection of test data for pharmaceuticals and agricultural-chemical products. Other provisions of the same regulation provide for the protection of confidential commercial data in general. Each competent authority is responsible for the protection of the confidential information submitted to it. According to Article 8 of the Regulations, any party suffering injury from the violation of the provisions of the Regulations may bring a case before the Board of Grievances to request indemnification for damages. Page 49, para. 102 The Secretariat's report states that Saudi Arabia has joined the GCC amended Patent Law (29 August 2001). Question 29 Could Saudi Arabia explain what is the legal status of a Gulf Cooperation Council patent in Saudi Arabia and the conditions under which said patent can be revoked?

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Answer Article 1/7 of the GCC Patent Law states: "the Document granted by the Patent Office to the owner of the invention so that his invention shall enjoy legal protection within all Cooperation Council States according to the provisions of this Regulation and its Bylaws." Also the Gulf Cooperation Council is defined under Article 1/1 to comprise the Arab States of the Gulf, including Saudi Arabia. Thus, any granted patent issued by the GCC Patent Office will enjoy full protection in Saudi Arabia. Regarding revocation of a granted patent, any interested party can file a complaint before the GCC Committee requesting the revocation of a granted patent in the GCC. Article 25 of the GCC Patent Law states that "the decision of the committee can be appealed before the competent authority according to the regulation complied with in the host country (Saudi Arabia). Settlement of such appeal shall be made in conformity with the provisions of this regulation and requirements of the laws of the said state respectively; otherwise, settlement shall be made according to general rules." Page 51, para-s 111–115 Prior to the entry into force of the current patent law (Law of Patents, Layout Designs of Integrated Circuits, Plant Varieties, and Industrial Models in force as of July 2004) pharmaceutical companies could file so-called "importation" patents before the General Directorate of Industrial Property (GDIP) under the patent law in force at that time (Patent Law No. M/38 of 10/06/1409H (January 18, 1989)). A significant number of patent applications were reviewed and either granted or substantively examined prior to the new law coming into effect. At the entry into force of the new patent law replacing Patent Law No. M/38, a transitional kind of protection (EMR) was put in place for those patent applications which were pending under the old law, but not yet substantively examined when the new law took effect. However, for those patents which were already granted or substantively examined, this transitional protection was not available. The new patent law did not supersede the law in effect for patents actually granted or substantively reviewed under Patent Law No. M/38, and it should in principle not be applicable to retroactively revoke patents examined under the prior law. Question 30 Could Saudi Arabia explain what is the legal and enforcement status of patents duly granted under the provisions of patent law M/38? Answer Article 64 of the Law of Patent, Layout Designs of Integrated Circuits, Plant Varieties and Industrial Design (New Law) states: "this Law shall replace the Patent Law issued by the Royal Decree No. (M/38) dated 10/6/1409H, and its provisions shall govern the patent applications and the patents in force, and shall supersede all provisions that are inconsistent therewith." Thus, the New Law will be applied on all applications and patents. IV. TRADE POLICIES BY SECTOR (1) AGRICULTURE AND RELATED ACTIVITIES (ii) Agricultural policy Pages 54–55, para. 5 The Secretariat's Report states that "/…/other government agencies involved include two fully state-owned enterprises: the Agricultural Development Fund (ADF), which disburses subsidies, and grants interest-free loans; and the Grain Silos and Flour Mills Organization (GSFMO), which purchases and stores wheat, constructs flour mills, and produces animal feed. The Government also offers indirect support to farmers, such as extension, training, pest and disease control services, and agricultural research".

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Question 31 Could Saudi Arabia elaborate on the subsidies (other than import subsidies) and interest-free loans provided to producers by the Agricultural Development Fund? (type of support, calculation, eligibility requirements) Answer All agricultural subsidies, direct and indirect, were classified in the latest WTO document G/AG/N/SAU/6, dated 13 September 2011 (Notification on Domestic Support). Page 55, para. 7 The King Abdullah Agricultural Initiative enables private Saudi Arabian businesses to invest in agricultural projects in other countries. Question 32 What types of measures (subsidies, loans, technical assistance) are provided to private businesses that decide to invest abroad? Are there any conditions that apply? Answer The Government promised to provide financial facilities to encourage Saudi private investors to invest abroad, as well as off-taking agreements to allow them to bring their products to Saudi Arabia. Many kinds of support are available to all Saudi investors. Page 55, para. 9 The Secretariat's report states that "following a 2007 government decision, Saudi Arabia's agriculture sector is being restructured to focus on value-added crops such as fruits and vegetables, and to implement new water-saving and irrigation technologies". Question 33 Could Saudi Arabia provide more details on the ongoing changes to its agricultural policy? Particularly concerning the measures aimed at reducing production of high water intensive agricultural commodities? Apart from wheat what are the other agricultural commodities of which production is to be reduced, and over what timeline? Answer The Agricultural sector in Saudi Arabia has been restructured in recent years because of the scarcity of water. The aim is to reduce water consumption in agriculture and to focus only on value–added crops and on crops using less water. Apart from wheat, open- field crops such as green fodder, potatoes, onions, watermelon are also targeted. By the end of 2012, no export of such products will be allowed. Page 56, para. 14 The Secretariat's report states that "barley production has also continued to decline, from 47,000 tonnes in 2005 to some 20,000 tonnes in 2009. No subsidies were paid for production of barley in 2007 and 2008. Purchase of domestically produced barley by the GSFMO for sale as feed to livestock producers stopped in 2003. In 2007 and 2008, the Government continued to subsidize imported barley for use as a livestock feed: 6.4 million tonnes in 2007 (total support of SAR 499 million), and 8.6 million tonnes in 2008 (SAR 1,800 million)". Question 34 Could Saudi Arabia provide details of its subsidy scheme for importing feed grains? How is the support calculated and which products it covers (only grains or also other feed components, in the Secretariat's Report only barley imports are mentioned as subsidised)?

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Answer For the objective of water conservation, barley production has been stopped since 2003. Instead, imported barley is subsidized to make it available at a low cost for local users. However, all animal feed ingredients are subsidized for the same objective. (2) MINING AND ENERGY (iv) Natural gas (a) Gas processing Page 66, para-s. 73-75 The Secretariat's report in para. 73 states that "for several decades, Saudi Arabia has made available petroleum-based and natural-gas-based products to domestically located consumers (Saudi or foreign owned) at regulated prices./…/" Question 35 Could Saudi Arabia elaborate on how the dual pricing (differential between domestic price and world market price) is enforced? How are products which are based on the input of price-regulated gas treated when exported? Answer As an initial matter, Saudi Arabia notes that "dual pricing" does not exist in the Kingdom. As explained in the Kingdom's Working Party Report (paras. 26-37), under Saudi law prices of natural gas liquids (NGLs) are commercially-based, non-discriminatory and variable over time according to changes in market conditions. The law – promulgated in Council of Ministers Resolution No. 260 and Decision No. 15 – establishes that prices will not vary on the basis of the producer's identity, or the type or destination of the downstream product.

Council of Ministers Resolution (CMR) No. 260 of 23.10.1422H (7 January 2002), which cancelled Council of Ministers Resolution No. 68, serves as the basis for regulating the prices of NGLs, including butane, propane and natural gasoline, used as feedstock in Saudi Arabia.

CMR 260 requires that pricing of NGLs supplied to all domestic industrial users, without exception, be commercially based. Decision No. 15 of the Supreme Council for Petroleum Affairs implemented CMR 260 and established a pricing structure that is intended to ensure the full recovery of production costs and a reasonable profit.

Under CMR 260 and Decision No. 15, NGLs are available to all recipients within Saudi Arabia on a non-discriminatory basis, whether Saudi or non-Saudi, and regardless of the ultimate destination of the downstream products produced from the NGLs.

The domestic pricing structure set forth in CMR 260 and Decision No. 15 establishes detailed formulae, based on international market prices, for determining the applicable domestic prices of propane, butane and natural gasoline. The difference between domestic and international NGL prices reflects Saudi Arabia's natural comparative advantages and several cost-saving factors that are unique to domestic NGL sales in the Kingdom. These cost saving factors include (i) cost savings in infrastructure; (ii) cost savings in marketing; (iii) commercial advantage associated with long-term contracts; (iv) commercial value of reduced volatility; (v) commercial value of large volume purchases. Thus, there is no "differential" between domestic and world market prices.

Because the commercial pricing formula is based on market prices, NGL prices derived from the formula can vary on a periodic basis. These prices apply to all sales of all supplies of NGLs for domestic industrial users, without exception.

As the Kingdom's price regulations are non-discriminatory, exports of products derived from price-regulated NGLs (and natural gas) are treated just like all other exports (i.e., they are subject to applicable Saudi laws and regulations, without exception).

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HONG KONG, CHINA Questions regarding the Secretariat Report Tariffs, other duties, and taxes Pages 23-27 (para-s. 14-20; tables III.2 and III.3) Question 1 Upon its accession to the WTO, Saudi Arabia bound 100% of its tariff at rates ranging up to 200% (on tobacco and tobacco-related products) and averaging 10.9%, i.e. average bound rates of 15.4% on agricultural products, and 10.1% on non-agricultural goods. The gap between overall average MFN applied tariff and the bound rate at 5.7 percentage points presents an element of uncertainty as it gives the authorities some margin for increasing applied MFN tariffs. Saudi Arabia also made seasonal tariff binding commitments for some fruits and vegetables. In this regards, does Saudi Arabia have plans to:

(a) reduce the gaps between the applied and bound rates so as to provide greater predictability in its tariff regime; and

(b) further reduce its applied tariff rates that exceed international tariff peaks? Answer There is no plan to reduce the margin of difference between the bound customs duty and the applied customs duty, on the grounds that applied customs duties are very low and there is no value-added tax. In addition, Saudi Arabia is a developing country and has recently acceded to the WTO. By comparing the margin of the difference between the bound and applied duty rates with the rest of the developing Member States in the WTO, we find that margin of difference is very small – not exceeding 5.7%. In addition to that, 10.6% of the total numbers of items are exempted from customs duties as outlined in the table III.2 of the Report of the WTO Secretariat. Import prohibitions, restrictions and licensing Page 29 (para. 30) Question 2 It is noted that although the law provides for automatic licensing, Saudi Arabia does not have automatic licences on any products. Does Saudi Arabia have any plans to implement automatic licensing on products subject to import restrictions/licensing? Answer Please refer to the Kingdom of Saudi Arabia's Working Party Report Para. 126. Standards and other technical requirements Page 33 (para. 43) Question 3 There is a requirement that every shipment of products sold in Saudi Arabia be accompanied by a document certifying that the product conforms to the relevant Saudi technical regulation or standard. The conformity certificate has to be issued by an accredited certification body, or an accredited laboratory as a third party.

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Would Saudi Arabia consider eliminating this requirement so as to further facilitate trade and to reduce the costs on traders? Answer Saudi Arabia requires a Conformity Certificate for goods imported into Saudi Arabia. This requirement applies to all products, with the exception of food, feed and public health pesticides. The purpose of this Certificate of Conformity is, as stated in Para 43, to enhance and speed-up the release and declaration of products exported to Saudi Arabia. This requirement is for a legitimate objective: protection of health, environment and safety, and the prevention of deceptive practices. All these requirements are consistent with the TBT Agreement. Saudi Standards, Metrology and Quality Organization (SASO) signed mutual recognition programs for Conformity Certificates with accredited Certification Bodies in several different countries. In Hong Kong; SASO signed with TUV SUD, Bureau Veritas, TUV Rheinland, SGS, and Intertek. Services – Financial Services Page 77 (para. 133); page 79 (para-s. 139 and 140) Question 4 It is noted that in the field of cooperative insurance, a foreign insurance company may establish a commercial presence in the form of a locally incorporated cooperative insurance joint-stock company by obtaining relevant licences and approvals from the various government authorities, or as an established direct branch of an international insurance company. Currently, more than 91% of licensed insurance and reinsurance companies have foreign participation. Would Saudi Arabia share with us how long it takes in general to establish a locally incorporated public joint-stock cooperative insurance company and a direct branch in Saudi Arabia? Answer In accordance with Article 6 of the Implementing Regulations of the Cooperative Insurance Companies Control Law, the following time frame applies:

1. SAMA shall notify the applicant within 30 working days confirming that the application is complete. Where the application is incomplete, SAMA shall notify the applicant of any further requirements or missing documents.

2. All incomplete and/or missing documents shall be provided within 30 working days from SAMA's notification, otherwise the application shall be cancelled and the applicant must re-submit a new application for consideration.

3. SAMA shall notify the applicant within 90 working days from the receipt of a completed application of its approval or rejection by providing reasons.

Following SAMA's issuance of the license, further steps shall be taken that involve other government authorities. Services – Telecommunications and postal services Page 80 (para. 146); and page 81 (para. 148) Question 5 Saudi Arabia has currently undertaken broad commitments in telecommunications under the GATS and its telecommunications network has grown considerably during the last few years, with a substantial number of new companies entering the market. How many new companies have entered the market since its opening in 2005? How many of them have foreign participation?

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Answer The following table details the number of licenses issued by CITC since the year 2004.

2004 2005 2006 2007 2008 2009 2010 Total 49 128 223 294 290 298 313

A number of these licensees have foreign equity participation. Questions regarding the Government Report Government procurement Page 11 (para-s. 55-56) Question 6 Saudi Arabia revealed in the report that it had been examining the issue of joining the Agreement on Government Procurement but the examination was delayed because of the unfinished negotiation by GPA Parties. Now that the negotiation for a revised Agreement, the Decisions of the Committee on Government Procurement as well as the coverage negotiations have been politically concluded in December 2011. We would therefore like to know when Saudi Arabia would resume considering its accession to the (revised) GPA so as to reap the significant market access opportunities for its local suppliers and bring its government procurement system in line with the improved agreement. Answer The Kingdom of Saudi Arabia welcomes the successful deal reached by parties to the plurilateral Government Procurement revised agreement. The Saudi national committee intends to translate the new agreement into the Arabic language, to study it carefully and comprehensively, and to consult widely both within the Government and with the private sector. The Kingdom of Saudi Arabia would be grateful if the WTO Secretariat could organize for Saudi officials a national seminar and workshop on the WTO Government Procurement Agreement. This would greatly help us in our examination of the issue in the light of the new agreement. Saudi Arabia has listed this request in the Annex to the Government Report as a technical assistance need of Saudi Arabia. We hope that this request can be met during the first half of 2012. After the completion of the workshop and the examination of the new agreement by Saudi officials, a recommendation will be made to the ministerial committee, which will determine appropriate steps with respect to the commencement of the accession negotiations. Services – Transportation Page 19 (para. 119) Question 7 We note from the Government Report that a maritime trade law regulating the maritime transport sector is being developed. We would like to know the scope and details of the proposed maritime trade law, the latest legislative progress, and its implementation schedule. Answer The regulations of maritime transport sector were fragmented among different governmental entities. Therefore, the goal of the Saudi maritime trade law is to compile all regulations governing maritime

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trade into one coherent law. Currently the Saudi maritime trade law is being studied by the Expert Authority of the Council of Ministers for preparing and endorsing the final draft. Once it is endorsed by the Council of Ministers, it will be available at the website of the Ministry of Transport. AUSTRALIA Secretariat Report (WT/TPR/S/256) Summary - paragraph 13, page ix Question 1 Has Saudi Arabia eliminated the requirement to authenticate import documentation as of 31 December 2007? Answer Yes, the authentication requirement of trade documents at the Saudi consulate, including certificates of origin, invoices and related fees applicable to all exports to the Saudi Arabia was abolished under the Council of Ministers Decision No. 5 - b -57 611 dated 28/11/1424 AH (January 20, 2004). A circular letter of the Director General of Customs No. 99 / 11 / dated 27/2/1427 AH corresponding to 27 March 2006 AD.

I. ECONOMIC ENVIRONMENT (3) TRADE PERFORMANCE AND INVESTMENT (ii) Foreign Direct Investment Paragraph 15, page 9 Question 2 The report states that a foreign businessperson can obtain a multiple entry visa, valid for 12 months, without requiring a letter of invitation from a Saudi host or approval from the local Chamber of Commerce. Could Saudi Arabia advise if this is correct? Australia has experienced problems for businesspeople receiving a 12-month multiple-entry visa without a sponsorship letter from a Saudi host and the relevant Saudi Chamber of Commerce. Answer Council of Ministers Resolution No. 286 concerning "foreign businessmen may now obtain a multiple-entry visa" issued 5/9/1428H 17/9/2007 is in the implementation phase. II. TRADE AND INVESTMENT REGIME (4) TRADE AGREEMENTS (ii) Regional Agreements Paragraph 22, page 17 Question 3 Could Saudi Arabia advise on progress with their internal review of Free Trade Agreements (FTAs) and when can a decision be expected? Answer The review, which the GCC Secretariat is conducting, is at an advanced stage. When it is finalized, the GCC member states will examine it in preparation for approval. If there is a need, some further

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work may be required which may necessitate more time. Thus, no expected date can be forecasted at this time. III. TRADE POLICIES AND PRACTICES BY MEASURE (3) MEASURES AFFECTING PRODUCTION AND TRADE (i) Incentives Page 42 Question 4 Could Saudi Arabia describe the activities of the National Industrial Clusters Program (NICPD)? We would appreciate Saudi Arabia's assessment of the contribution made by the NICPD towards the development of industry in Saudi Arabia, in particular in the motor vehicle assembly sector. Answer The National Industrial Clusters Development Program is tasked with facilitating the development of competitive manufacturing industries. To achieve this mission, the Program's primary activities are: coordinating with various entities to streamline and upgrade the services provided to industry; encouraging the private sector to invest in industry; working with the private sector to define industrial human capital requirements and working with institutes to provide training; promoting industrial investment to international and national investors; facilitating work between private sector and technology institutes. The contributions of the Program include: advising stakeholders on ways to diversify and add value to the economy; identifying the required institutes for training the Saudi workforce; supporting investors with information on local conditions and suppliers; and conducting promotional activities for the industrial clusters locally and internationally. For the automotive sector, the contributions also include coordinating with companies in setting up their projects in the Kingdom." (ii) Competition Policy and Price Controls Paragraphs 85-88, page 43 Question 5 Saudi Arabia appears to have competition laws supported by executive and judicial style mechanisms, being the Competition Law, Competition Council and Saudi Arabia's Courts and Judiciary respectively, though it is not clear in the report. Is Saudi Arabia able to clarify how active and effective these mechanisms are? For example, the Competition Law is said to prohibit mergers and acquisitions that distort the competitive structure of the market, however it would be interesting to know how many merger applications the Competition Council generally considers and/or rejects on an annual basis. Answer The Council has a semi-judicial committee that considers, as per the law, any cases referred thereto in order to issue an innocence or condemnation award.

1- The law does not prohibit the mergers or acquisitions unless they are proved to affect the mechanism of the market. 2- There are only (4) applications for merger and acquisition submitted to the Council.

Would Saudi Arabia be able to provide statistics on the number of instances in which penalties were imposed for violations of the Competition Law, or examples of times when the Competition Council has acted (perhaps through the Court System) to take action to safeguard the competitiveness of markets in Saudi Arabia?

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Answer To date, the Council, through the Consideration Committee, has not imposed any penalties. However, there are certain cases under consideration pending judicial rulings to be issued. Saudi Arabia's Competition Law does not apply to public or wholly state-owned enterprises. Is there any consideration of the Competition Law being extended to apply to such entities in the future, especially given what appears to be a high level of state participation in the economy of Saudi Arabia? Answer Saudi Arabia does not agree that the referenced aspect of its Competition Law constitutes discrimination against other enterprises. State-owned enterprises in the Kingdom are subject to the commitment embodied in paragraph 52 of the Kingdom's Working Party Report to act in accordance with commercial considerations. Paragraph 89, page 44 Question 6 There appears to be a relatively high level of price regulation in Saudi Arabia. Is Saudi Arabia intending to undertake price deregulation in any of the sectors currently regulated? Answer The prices of goods and services listed in Annex A of the Working Party Report of the Kingdom of Saudi Arabia are consistent with WTO requirements. For further details please refer to KSA Working Party Report Para 26-37. It is noted that the Competition Council can impose penalties on companies that breach the Competition Law, and a company has a right of appeal to a Board of Grievances. Given issues regarding separation of powers, is Saudi Arabia able to clarify whether the Board of Grievances is a judicial or administrative body? What rights of appeal are generally available for companies whose actions the Competition Council has restrained/sanctioned?

Answer The Board of Grievances is an administrative court (administrative judiciary), and until now the Council did not issue any decision through the Consideration Committee. Consequently no appeals have been filed before the Board of Grievances. (iv) Intellectual Property Rights Pages 48-51 Question 7 Does Saudi Arabia intend to accede to the WIPO Copyright Treaty and/or the WIPO Performances and Phonograms Treaty? If so, what is the likely timeframe for accession? Answer IPR treaties, including WCT & WPPT, are being reviewed by the IPR Standing Committee to evaluate the pros and cons of acceding to them. At the time of accession, all Saudi Arabian IPR laws and regulations were brought in line with the obligations set out in the TRIPS Agreement. In 2007, the TRIPS Council reviewed all legislation related to IPR in Saudi Arabia ensure full compliance with the provisions of the TRIPS Agreement.

How does Saudi Arabian law protect computer-generated works such as non-original databases?

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Answer Article 3(5) of the Saudi Copyrights Law states that "this Law shall also protect: databases, whether they are mechanically readable or can be read in any other manner, if they are creative as to selection or arrangement of their contents." Has Saudi Arabia ever issued a compulsory license for integrated circuits? If so, what were the circumstances? If not, under what circumstances would this occur? Answer No compulsory licenses were issued for integrated circuits. A compulsory license may be issued for the patent of semiconductor technology to satisfy public demand with the condition that the license will not be used for commercial or unlawful activities. Articles 24, 26, 27, 28, 29, 30 and 31 of the Law on Patents, Layout-Designs of Integrated Circuits, Plant Varieties and Industrial Designs provides for all the conditions and requirements related to compulsory licenses. Does the Ministry of Culture and Information commence enforcement action on requests from copyright owners? Answer Yes, Article 18.1 of the Saudi Copyrights Law provides that "detection of violations of provisions of the Law and the Regulations shall be carried out in any of the following cases: pursuant to a complaint or written notice filed by owners of the right or their representatives." Are there any intellectual property enforcement (both civil and criminal) statistics available? Answer The Saudi Government conducted 2,000 raids and inspected 5,000 outlets. It also reported seizure of 3.83 million units of pirated products. Violation Review Committee VRC branches were established in Jeddah and Dammam. Moreover, the VRC increased administrative penalties, including some cases involving the maximum penalty of SR 100,000. These efforts were carried out in 2009. In 2010, raids of street vendors continued actively. The VRC improved its workflow and transparency by allowing rights holders to attend its meetings and to submit comments on the final decision and penalties. The website of the Copyrights Office is open to the right holders to follow-up on their cases. The website was updated with cases pertaining to 2010. Does Saudi Arabian law contain provisions to protect and facilitate the digital economy such as ISP safe harbours and/or provisions concerning the circumvention of technological protection measures? Answer The question is not sufficiently clear for us to provide an appropriate response; Saudi Arabia would welcome further clarification from the Government of Australia, including examples of applicable legislation in Australia. Is the violation of trade secrets a significant issue for Saudi Arabian businesses? If so, what are the existing legislative protections available? Answer Saudi Arabia recognizes the importance of the protection of trade secrets. Accordingly, trade secrets are protected under the "Regulation for the Protection of Confidential Commercial Information".

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Does Saudi Arabia have any enforcement activities related to online copyright infringement (i.e. illegal file sharing or unauthorized downloading)? Are there any statistics on the scale or extent of this kind of activity in Saudi Arabia? Answer Any right holder suffering damages from online copyright infringement (i.e. illegal file sharing or unauthorized downloading) is entitled to file a complaint before the copyrights office in the Ministry of Culture and Information. The complaint will be referred to the VRC who will decide on the matter. If the VRC decides that the complaint is valid, the right holder can submit the decision to the Communication and Information Technology Commission which will block the website; in cases where the IP Address exists in Saudi Arabia, the Copyrights office will take the necessary steps in this regard in accordance with the copyrights law. There are no official statistics on the scale and extent of this kind of activity in Saudi Arabia. Are there any reported figures on the impact of copyright infringement on Saudi Arabia's economy and relevant industries? Answer Protection of intellectual property rights is important in Saudi Arabia like any other country. Such protection ensures better investment climate, encourages research and attracts technologies.

Saudi Arabia is fully aware of the negative impacts of copyright infringement on the economy, even though official statistics on such impact do not exist. To this end, Saudi Arabia has enhanced its IPR enforcement through raids and legal actions. IPR laws and regulations are enforced strictly with severe penalties imposed to deter violators. IV. TRADE POLICIES BY SECTOR (1) AGRICULTURE AND RELATED ACTIVITIES

Page 53 Question 8 Australia notes and welcomes the significant reforms to agricultural policy and marketing arrangements over a number of years as Saudi Arabia has sought to reduce the opportunity cost of previous domestic support policies and continued its efforts to fully integrate itself with the international agricultural market. Does the Saudi Government plan to continue to review applied tariffs as part of this process? Answer The Kingdom of Saudi Arabia already has low applied tariffs on a wide range of products. Moreover, in 2009, the Government has undertaken many procedures to address food crises situations. One of them was the decision to lower tariffs on 180 goods, most of which are agricultural. ARGENTINA Report by the Secretariat (WT/TPR/S/256) I. ECONOMIC ENVIRONMENT (1) MAJOR FEATURES OF THE ECONOMY Paragraph 3 states that since the mid-1990s, Saudi Arabia has been implementing a development strategy, accompanied by structural reforms, to reduce its high dependence on crude oil.

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Would Saudi Arabia please detail what specific measures have been taken to implement structural reforms to create a more business-friendly environment? Answer Business Environment The Kingdom adopts a comprehensive business-environment development strategy, based on integrating institutional and regulatory development of government agencies, especially those relating to private sector activities, with other efforts to create an investment climate. The pace of implementation of electronic transactions has been accelerated, and the e-government initiative was launched. These measures were reinforced through the issuance of several regulations and rules, such as the Corporate Governance Regulations, the Investment Funds Regulations, and the Mergers and Acquisitions Regulations. According to the Doing Business report issued by the International Finance Corporation (IFC) of the World Bank, the Kingdom has made remarkable progress in improving the business environment. It jumped from 35th among 175 states in 2006, to 24th among 181 in 2008. The Kingdom continued to improve its ranking further, and in 2009, it reached 15th among 181 countries; in 2010, 12th among 183 countries, and in 2011, 11th among 183 countries. The Private Sector and the Privatization Strategy Council of Ministers Resolution 219 of 11/11/2002 listed the facilities and activities to be privatized. Several important developments followed, the most important of which was a Council of Ministers Resolution in 2004 that offered for public subscription all state-owned shares in the National Company for Cooperative Insurance, which amounted to 50% of total shares. In 2006, studies of privatization of the Saline Water Conversion Corporation were completed and implementation of the transitional phase started: a plan for implementing the requisite organizational structure and administrative, financial and legal procedures was drawn, and a timetable for implementation set. The private sector was also allowed to contribute to electricity generation and transmission services, under the umbrella of the Saudi Electricity Company, which has attracted investments in important power generation projects, such as Rabigh on the Red Sea coast, and the eleventh generation plant in Riyadh. In 2007, privatization contracts for a number of port facilities were completed, such as the general cargo and the bulk grain terminals at King Fahd Industrial Port, as well as the container terminal and cargo berths at Jubail Commercial Port. In addition, the northern and southern support terminals at Jeddah port and the cargo terminal at Yanbu Commercial Port were leased. Likewise, the Saudi Industrial Property Authority began implementing the privatization of industrial cities, by allowing the private sector to implement projects to develop and expand these cities, as well as by privatizing the support services therein. Currently, privatization plans for Saudi Arabian Airlines are being finalized, and the private sector is operating the free markets in the international airports. Telecommunications have been given over to a Saudi joint-stock company and the sector has been opened up for competition, while conversion of the railways to a Saudi joint-stock company also is underway. (2) RECENT ECONOMIC DEVELOPMENTS Paragraph 4 mentions fiscal stimulus measures that limited the impact of the crisis.

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Would Saudi Arabia please specify which sectors have benefitted from this fiscal stimulus programme? Answer Saudi Arabia announced on 22 December 2008 a SR 475 billion (US$126.7 billion) economic stimulus budget for the year 2009, allocating more money for education and increasing public spending by 15.8% (SR 65 billion) As part of the year 2009 overall budget of SR 475 billion, there has been allocated a record SR 225 billion for new projects and SR122 billion was slated for education, training and scholarship. The countercyclical fiscal policies adopted by Saudi Arabia, coupled with the fiscal stimulus plan provided towards infrastructure enabled Saudi Arabia to post real GDP growth of 0.6% for 2009 despite a sharp drop in oil prices. With the fiscal stimulus plan of the public investment program worth US$373 billion in public sectors and oil sectors budgeted for 2011-2014, the Saudi economy will benefit from the fiscal stimulus plan. Saudi Arabia's economic stimulus programme was aimed at strengthening the capabilities of the economy, increasing the oil production capacity and developing the infrastructure. (4) OUTLOOK The Report includes comments on Saudi Arabia's policy aimed at increasing the Saudi labour force employment rate. In particular, paragraph 20 details the objectives and goals of the "Saudization" programme. Would Saudi Arabia please elaborate on what would be the situation of international firms, should they be unable to meet the percentages set for employment of Saudi nationals?

Answer The Kingdom's policy aimed at increasing the Saudi labour force employment rate will not affect the ability of global investment firms to hire non-Saudi nationals. With regard to paragraph 20. Would Saudi Arabia please specify how and what measures it intends to take in order to accelerate growth in non-oil sectors? Answer Despite the differing conditions of the non-oil sectors and their varying levels of performance under the Eighth Development Plan (2005-2009), they all shared a strong direct relationship between the rate of growth of investment and the rate of growth of value added. Sectors that had high rates of investment growth experienced the highest growth in value added, irrespective of whether they were production or service sectors. Accelerating the rate of investment in a sector lead to expansion and enhancement of its productive capacities, as well as to enabling it to use modern technologies and to adopt advanced management systems capable of elevating partial and total factor productivity; all of which resulted in continuous improvement of value added, and hence, acceleration of growth rates. The higher rates of investment under the Ninth Development Plan (2010-2014) are anticipated to result in employing capital-intensive production methods that rely on modern, highly productive technologies. The value added of "other manufacturing industries" during the Ninth Development Plan (2010-2014) is expected to grow at a compound annual growth rate of 7.6%, compared with 6.8% under the

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Eighth Plan. To realize that, it is envisaged that both investment and employment in these industries would grow at compound annual growth rates of about 15.3% and 0.3%, respectively. The construction sector is expected to grow at a compound annual growth rate of 7.2% in the sector compared with 4.7% under the Eighth Plan. To realize these growth rates it is envisaged that both investment and employment in construction would grow at compound annual growth rates of about 23.7% and 1.3%, respectively. Also in the Service Sectors, an acceleration of growth rates will be realized by the growth in investment and employment in these sectors. Besides growth of investment and employment, the Kingdom of Saudi Arabia takes steps to support competitiveness and the increase of labor productivity through government efforts aimed at expanding and developing training and skill–building programmes; improving management and organization techniques; expanding utilization of information and communications technology (ICT) in all sectors; encouraging research, development and innovation; encouraging private-sector establishments to develop their technological research and development capabilities; helping to improve the competitiveness of national products in domestic and international markets; and to increase productivity of all factors of production as well as to achieve optimum utilization of resources. II. TRADE AND INVESTMENT REGIME (4) TRADE AGREEMENTS (ii) Regional agreements (a) Gulf Co-operation Council (GCC) Paragraphs 17 to 22 refer to the measures adopted in the framework of the GCC, of which Saudi Arabia is a member. Pursuant to the decisions adopted at the Summit of Heads of GCC States in Riyadh in December 2011, preliminary steps have been taken for Jordan and Morocco to join the GCC. How does Saudi Arabia hope to influence the transition process that will begin with the entry of these two countries in order to preserve the essential aspects of the regional agreement by harmonizing tariffs in a WTO-consistent manner? Answer Possible fields of cooperation between GCC countries and the above mentioned countries are currently being considered. With regard to paragraph 15: Would Saudi Arabia please provide further details regarding the notifications outstanding for 2011? Answer Saudi Arabia has recently submitted all outstanding notifications, in order to fulfill the WTO's notification and transparency requirements. (5) INVESTMENT FRAMEWORK Paragraph 26 states that foreign investment may take the form of an enterprise wholly owned by foreign investors.

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What would be the channels of appeal (for example administrative or judicial) available to investors in the case of enterprises wholly owned by foreign investors? Answer Please refer to KSA Working Party Report, Para. 82. III. TRADE POLICIES AND PRACTICES BY MEASURE (1) MEASURES DIRECTLY AFFECTING IMPORTS (vi) Standards and other technical requirements Paragraph 42 mentions that the Gulf Standards Organization (GSO) is responsible for the development of technical standards. However, from 1 July 2011 technical regulations and standards related to food, feed, pesticides, cosmetics, and medical devices were transferred to the Saudi Food and Drug Authority (SFDA). Would Saudi Arabia please state the reasons for this measure? Answer SFDA has been established by Royal Decree to unify and improve regulations and legislation on food, feed, pesticides, cosmetics, and medical devices in Saudi Arabia, whereas GSO is GCC entity. Any GSO standard and technical regulation needs to be adopted by each GCC government as national standard and technical regulation. (2) MEASURES DIRECTLY AFFECTING EXPORTS (iv) Export subsidies, finance, insurance, and assistance Paragraph 72 lists the main entities aiming to expand non-oil exports, including the Saudi Export Programme (SEP). Would Saudi Arabia please state the requirements for exporters to be eligible for credit under this programme? Answer Basic requirements for exporters to be eligible for SEP support include:

Exports must be Saudi origin (Made in Saudi Arabia). SEP does not support exports of prohibited goods or crude oil. Sufficient securities and collaterals have to be obtained by SEP. Audited annual reports (financial statements) of exporters, importers and guarantors have to

be submitted to SEP. All necessary legal and trade documents/registration are submitted to SEP for exporters,

importers and guarantors. IV. TRADE POLICIES BY SECTOR (3) MANUFACTURING (i) Overview Paragraph 97 states that the Saudi Industrial Development Fund (SIDF) contributes to the development of the Saudi industry by providing loans to finance new industrial projects. Would Saudi Arabia please indicate what types of industrial project have been approved and the amounts disbursed to this end?

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Answer SIDF has approved for industrial loans for 87,391 million of Saudi Riyals since its establishment. See Table 2 of page 44 of SIDF Annual Report of the calendar year 2010 for the distribution of this amount across the approved industrial sectors. http://www.sidf.gov.sa/En/MediaCenter/Documents/Annual_Report_2010_En.pdf. TURKEY Report by the Secretariat (WT/TPR/S/256) (I) ECONOMIC ENVIRONMENT Foreign direct investment Paragraph 15, page 9 With regard to foreign direct investment policies, the Secretariat report underscores the improvements in the business environment of Saudi Arabia. In this respect, it is stated that, "the minimum capital requirement for starting a business (SAR 500,000) had been removed on 16 July 2007, and foreign businessmen would obtain a multiple-entry visa, valid for 12 months, without requiring a letter of invitation from a Saudi host or approval from the local Chamber of Commerce." Question 1 However, as we understand from the reports of Turkish businessmen, minimum capital requirements (ranging from SAR 2 million to SAR 20 million) defined in the Foreign Investment Law dated 2000 and its Implementation Regulations have a deterrent effect on foreign investments. In this respect, could the Saudi Arabian Government clarify if minimum capital requirements for starting a business in all sectors are removed? If not, given that Saudi nationals are not required to obtain investment licenses and are not subjected to burdensome minimum capital requirements; do the Saudi authorities have any reform plans to ease the requirements on foreign investments? Answer In the past, there was a minimum capital investment requirement of SAR 25 million for agricultural projects, SAR 5 million for industrial projects and SAR 2 million for services projects. However, Saudi Arabia removed these requirements by applying national treatment pursuant to SAGIA Board of Directors Decision No. 1/44 of 19 April 2005, except as noted in Saudi Arabia's Schedule on Specific Commitments in Services.

Question 2 In addition, could the Saudi Arabian Government confirm that, foreign businessmen- including those who do not have any establishment in Saudi Arabia but engaging in business visits for the purpose of making investments or seeking to enter into services sales negotiations or contracts- irrespective of their nationality, would obtain a multiple-entry visa, valid for 12 months, without a letter of invitation from a Saudi host or approval from the local Chamber of Commerce? Answer Council Of Ministers Resolution No. 286 concerning "foreign businessmen may now obtain a multiple-entry visa" issued 5/9/1428H (17/9/2007), is in the implementation phase.

Labor and employment policies Paragraph 20, page 10-11 Concerning the employment policies of Saudi Arabia, the Secretariat Report notes that "given that the oil sector is not labour-intensive, and increasing public sector employment is not sustainable in the

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long-run, Saudi Arabia is trying to enhance the employability of nationals by reducing the educational mismatch between Saudis' qualifications and private-sector needs through the "Saudization" programme." Question 3 Could the Saudi Arabian Government elaborate on the specifics of the "Saudization" programme? Given that restrictions on the employment of qualified foreign personnel may have negative impacts on investment decisions; do the Saudi authorities foresee contractions in foreign investments due to this policy? Answer There is no contraction in foreign investment due to this policy, and it is consistent with Saudi Arabia's Mode 4 commitments under the GATS. Report by the Secretariat (WT/TPR/S/256) Summary Trade Policy Instruments Paragraph 13, page ix As stated in the Secretariat report, "the use of a Saudi commercial agent is required only to import or export agricultural machinery." Question 4 Could Saudi Arabia explain the reasoning behind this requirement? Answer: This requirement is in place in order to ensure (i) the agricultural machinery's compliance with the standard and specifications approved by the Ministry of Agriculture to be suitable for the Kingdom's environment and (ii) to bind the agent to provide maintenance services centers and spare parts and all other necessary services, since these services can only be provided by authorized agents. I. ECONOMIC ENVIRONMENT Paragraph 16, page 10 As stated in the Secretariat report, "on the basis of UNCTAD's Inward FDI Performance Index, Saudi Arabia ranked 17th out of 141 economies in 2009 (55th in 2007). Saudi Arabia was 29th in UNCTAD's Inward FDI Potential Index in 2008 (the same as in 2007), which reflects, in general, inhibited FDI since foreign companies still face investment restrictions in certain activities, including fisheries and oil exploration/drilling/production." Question 5 Could Saudi Arabia identify the types of investment restrictions that foreign companies still face in the country? Are the restrictions planned to be eased as part of future development plans? Answer Foreign investment is permissible in all activities, except those which are included in a short "Negative List". A full list of economic activities in which foreign investment is currently not permitted can be found in the Secretariat Report (p. 19). The Supreme Economic Council of the Kingdom periodically reviews the Negative List. Saudi Arabia strives to attract foreign investment in order to facilitate innovation and economic development. The investment climate (rules, regulations, incentives, etc.) in the Kingdom is continuously improving to attract foreign investors of all types,

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consistent with the WTO agreements and other investment agreements to which Saudi Arabia is a party. It should also be noted that national and international energy services companies are contracted to do the required exploration, drilling and oil field services work in the oil and gas sector. IV. TRADE POLICIES BY SECTOR Paragraph 92, page 70 In the Secretariat report it is stated that "Saudi Arabia considers many of its industries to be emerging industries, struggling to become internationally competitive, particularly in the context of Saudi Arabia's low tariff levels. Saudi Arabia is seeking to set standards (e.g. technical, safety, quality) or improve such standards to attract more local and foreign industrial investments." Question 6 Could Saudi Arabia provide further information on those standards? How will those standards be utilized to attract more local and foreign industrial investments? Answer Standards are documents approved by a recognized body, that provide for common and repeated use, rules, guidelines or characteristics for products or related processes and production methods. If industries produce products according to Saudi standards which are based on international standards, then their products will be accepted and compete all over the world. This means better business and profits and will attract local and foreign industrial investments. Paragraph 104, page 72 The Secretariat report states that, "in 2009, Ma'aden announced a joint venture with Alcoa to establish an integrated aluminium production plant using Saudi Arabia's advantages in feedstock, and raw miner materials. The facility will be constructed in RazAzZawr on the east coast. The joint venture is intended to be a lowest-cost supplier of primary aluminium, alumina and aluminium products. The project will eventually be a fully-integrated industrial complex, starting from a bauxite mine with an initial capacity of 4,000,000 tonnes per year; an alumina refinery with an initial capacity of 1,800,000 metric tonnes per year (mtpy); analuminium smelter with an initial capacity of ingot, slab, and billet of 740,000 mtpy; and a rolling mill, with initial hot-mill capacity of between 250,000 and 460,000 mtpy." Question 7 Could Saudi Arabia provide a general assessment on the potential spill-over effects of the new production plant on other sectors such as automotive, where aluminum sheets are used as part of the production process? Moreover, based on an evaluation, if there exists one with respect to the planned capacity building, approximately how much of it would likely to be directed to exports? Answer Spill-over effects, for example the use of aluminum sheets in the assembly of automobiles, would depend on the growth of consuming industries in Saudi Arabia's conversion sector. The Saudi Government considers that the prospects for growth in this value-added sector are promising. None of the output of the new production plant is directed to exports.

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Report by the Government (WT/TPR/G/256) II. ECONOMIC DEVELOPMENT Paragraph 26, page 8 The Government report states that "according to the Foreign Investment Law, a foreign investor may apply for multiple licenses permitting different activities, provided that the foreign investor is not the owner of /or a shareholder in a project which is or has in financial default." Question 8 Could Saudi Arabia provide information on for how many licenses a foreign investor is allowed to apply at a time, and for how long these licenses are valid? Answer The Foreign Investment Law Article (4) stated that "subject to article (2) the foreign investor may obtain more than one license in different activities" and the license validity is one year for the services sector and two years for the industrial sector. III. TRADE POLICY DEVELOPMENTS Paragraph. 34, page 9 It is stated in the Government report that "although the bound tariff commitments of the GCC Member States towards the WTO are different, all the GCC member States have harmonized its applied tariffs in order to create unified external customs tariff." Question 9 Could Saudi Arabia elaborate on whether harmonized applied tariffs of the GCC member States are published and whether there are waivers for some countries? Exports and Free Zones Paragraph 47, page 10 It is indicated in the Government report that "no free zones exist in the territory of Saudi Arabia." Answer Yes the harmonized applied tariffs are published and there are waivers for some countries. Question 10 Could Saudi Arabia give information on whether there is a future plan for establishing such zones and the reasoning behind not having established exports and/or free zones so far? Answer No free zones exist in the Kingdom and currently there is no decision taken so far in this regard. This is due to the free open market policy adopted by the Kingdom and the very low tariff rates applicable in this respect. Government procurement Paragraph 54, page 11 It is explained in the Government report that "government procurement is regulated under government tenders and the procurement law which was enacted by Royal Decree No. M/58 of 4.9.1427 H (September 2006) which aims at:

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-Regulating procedures of tenders and procurements carried out by government authorities and ensuring they are not influenced by personal interest in order to protect the public funds; -Achieving maximum degree of economic efficiency in government procurements and carrying out government projects at fair competitive prices; -Promoting honesty and competition and ensuring fair treatment of suppliers and contractors in accordance with the principle of equal opportunities; -Guaranteeing transparency at all stages of government tender and procurement procedures."

Question 11 Could Saudi Arabia elaborate on how is the transparency ensured in government procurements? Answer The Kingdom of Saudi Arabia government procurement is regulated under government tenders and the procurement law which was enacted by Royal Decree No. M/58 of 4.9.1427 H (September 2006) which aims at:

(i) Regulating procedures of tenders and procurements carried out by government authorities and ensuring they are not influenced by personal interest in order to protect the public funds;

(ii) Achieving the maximum degree of economic efficiency in government procurements and carrying out government projects at fair competitive prices;

(iii) Promoting honesty and competition and ensuring fair treatment of suppliers and contractors in accordance with the principle of equal opportunity;

(iv) Guaranteeing transparency at all stages of government tender and procurement procedures.

I. All government works and procurement are offered for in public tender except for those exempted under the provisions of the Tender and Procurement Law. Article 6 of the Law states:

"All government works and procurement are put for in public tender except for those exempted under the provisions of this Law".

II. All government tenders are announced in the Official Gazette (Um Al-Qura), in two local newspapers and by electronic means of advertisement. Article 7 (a) of the Law states:

"All government tenders shall be announced in the Official Gazette, in two local newspapers and by electronic means of advertisement in accordance with the Implementing Regulations of this Law. The bid submission date and the sealed-bid opening date as well as places thereof shall also be specified in the tender announcement".

III. Article 10 (d) of the Implementing Regulation of the Law states: "The announcement of the tender shall include clear and comprehensive information about the works announced and shall at least include the following:

- Name of the advertising authority. - Number, description and purpose of tender. - Scope of classification. - Price of documents and place of sale. - Time and place of submission and opening of bids".

IV. The Committee announces to the bidders or their representatives present in the opening session, the name of the bidder, his total price and any increase or decrease thereon in the original bid. Article 27 (b) of the Regulation states:

"The Committee shall announce to the bidders present or their representatives, the name of the bidder, his total price and any increase or decrease thereon in the original bid letter".

V. Government authorities invited to the tender announce the results of public tenders and government procurements for which they contracted and whose values exceed (SAR 100.000) one hundred thousand riyals. Article 74 of the Law states:

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"Government authorities shall announce the results of public tenders and government procurements which they contract for their execution and whose values exceed one hundred thousand riyals. The Implementing Regulations shall determine the announcement method and procedures".

VI. An excluded bidder is informed of the grounds for exclusion by an official letter upon his request. Article 40 of the regulation states:

"An excluded bidder shall be informed of the grounds for exclusion by an official letter upon his request". As for whether there is an action plan for making any amendments on the existing Government Tenders and Procurement Law, there is always a possibility to amend any provisions of the law if needed.

Paragraph 55-56, page 11 It is stated in the Government report that Saudi Arabia is carefully considering the issue of participating in the WTO Agreement on Government Procurement, "however, the Kingdom's examination has been adversely affected and thus delayed because of the following factors:

-The revised Agreement on Government Procurement has not yet been finalized; -The Draft Decisions are yet to be agreed upon and finalized; -A successful conclusion of the negotiations among party Members on the revised text has not been reach yet. Such a conclusion would give all concerned Government agencies the opportunity to set the stage for the next steps."

Question 12 Considering the revision of this Agreement has been finalized during the VIIIth Session of the WTO Ministerial Conference, Turkey would like to ask if Saudi Arabia would reconsider her participation into the WTO Agreement on Government Procurement? Answer The Kingdom of Saudi Arabia welcomes the successful deal reached by parties to the plurilateral Government Procurement revised agreement. The Saudi national committee intends to translate the new agreement into the Arabic language, to study it carefully and comprehensively, and to consult widely both within the Government and with the private sector. The Kingdom of Saudi Arabia would be grateful if the WTO Secretariat could organize for Saudi officials a national seminar and workshops on the WTO Government Procurement Agreement. This would greatly help us in our examination of the issue in the light of the new agreement. Saudi Arabia has listed this request in the Annex to the Government report as a technical assistance need of Saudi Arabia. We hope that this request can be met during the first half of 2012. After the completion of the workshop and the examination of the new agreement by Saudi officials, a recommendation will be made to the ministerial committee, which will determine appropriate steps with respect to the commencement of the accession negotiations. IV. SECTORAL DEVELOPMENTS Paragraph 67, page 13 In the 67th paragraph of the Government report, it is noted that the Kingdom of Saudi Arabia Government issued a Resolution No. 335 on 19 November 2007 aiming to phase out local wheat production within 8 years and import all wheat from abroad by 2016. It is further understood that this new practice is a part of the government's new agricultural policies for restructuring domestic agricultural sector.

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As it is well known, volatility in commodity prices is one of the most urgent problems of global economy as price hikes of main agricultural products continue in a manner threatening food security. Increasing agricultural production and productivity is essential to promote food security and foster sustainable economic growth. In this regard, at the Cannes Summit, G-20 countries, including Saudi Arabia, decided to, among others; invest in research and development of agricultural production and productivity. The so called "International Research Initiative for Wheat Improvement (Wheat Initiative)" is the concrete indication of this determination among G-20 countries. Taking into account the fact that wheat is one of the core crops constituting the predominant basis of human nutrition worldwide and that Saudi Arabia as one of the G-20 countries, support this Initiative. Question 13 Could Saudi Arabia evaluate its new agricultural policy in light of above mentioned G-20 Wheat Initiative. Answer Saudi Arabia, as a member of G-20, supports the "Wheat Initiative" from a global concern perspective. In contrast, the new agricultural policy in Saudi Arabia is mainly based on the current status of natural resources, especially water, which in recent years has been the main constraint to agricultural development in Saudi Arabia. Paragraph 68, page 13 The Government report states that "King Abdulla's Initiative for Agricultural Investment Abroad emerged to achieve food security on national and international levels by building integrated partnerships with countries that have the potential to develop and manage agricultural investments to ensure sufficient quantities and stable prices for important crops. King Abdullah's Initiative is meant to provide mutual benefits to Saudi Arabia and the country which receives Saudi's investment."

Question 14 Could Saudi Arabia provide information on with which countries Saudi Arabia cooperated regarding this issue up until now and for which crops? According to which criteria are the partners and crops are determined?

Answer Countries with which Saudi Arabia cooperated regarding this issue and which were targeted for agricultural investment are: Ukraine, Senegal, India, China, Mali, Canada, Turkey, Ethiopia, Poland, Russia, Cambodia, Sudan, Indonesia, Viet Nam, Philippine, Tanzania, Kazakhstan, Turkmenistan, Uzbekistan, Kyrgyzstan, Romania, Brazil, Argentine, Kenya, Egypt and Uruguay. The crops at issue are all strategic crops, such as wheat, barley, corn, soybeans, sugar, rice, animal feed, livestock, and fisheries The choice of investments is made by the Saudi private sector, which is the real investor. The Saudi Government will not provide direct investment; instead it will provide support. The main criteria for selecting a country for agricultural investment are:

Availability of resources. Attractive FDI rules and regulations. Political stability.

The criteria for selecting targeted countries for agricultural investment include the following: Selecting countries with good agricultural potential and attractive investment regulations.

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Report by the Secretariat (WT/TPR/S/256) III. TRADE POLICIES AND PRACTICES BY MEASURE (1) MEASURES DIRECTLY AFFECTING IMPORTS (v) Contingency trade remedies Page 31, paragraph 35 WTO Secretariat's Report states that the GCC finally reached the last step on amendment of the GCC Common law on Anti-dumping, Countervailing and Safeguard Measures in December 2010. Could Saudi Arabia kindly elaborate more on the progress of adopting and notifying its new regulation to the WTO, i.e. approximate time of its publication in the Official Gazette and the language of its publication? Answer The amended GCC Common Law is in the process of ratification by the Saudi national authorities and will be published in the Saudi Official Gazette. Saudi Arabia expects that the ratification procedures will end very soon then the amended GCC Common Law will be translated into English to be notified to the WTO. INDONESIA III. TRADE POLICIES AND PRACTICES BY MEASURES Measures Directly Affecting Imports Government Procurement As noted in the report by Secretariat, Saudi Arabia employs mostly open tendering procedures, such as: selective tendering, limited tendering, and single tendering. Foreign suppliers that participate in government procurement are required to register with the Saudi Arabian General Investment Authority (SAGIA) and also establish a training program for Saudi Nationals. Question 1 Could Saudi Arabia explain what is the minimum tender for foreign suppliers in establishing a training program for Saudi Nationals? (Referred to Document: WT/TPR/S/256, page 36, paragraph 57) Answer There is no minimum tender for foreign suppliers in establishing a training program for Saudi Nationals. Trade Policies and Practices by Measure Price Regulation, 2011 Referring to document WT/TPR/S/256, page 44, paragraph 89, prices for goods and services in Saudi Arabia are determined by market forces with the exception of the products and services subject to price regulation (Table III.9). Question 2 How does the Government of Saudi Arabia ensure that its regulated price of products and services have already consist of the profit margin of 10%, 15% or 20%?

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Answer With regards to profit margin of Pharmaceuticals products referred to in the Secretariat report paragraph 86 table III.9 "goods subject to profit regulation", the Kingdom of Saudi Arabia ensures that its regulated price of pharmaceutical products are in accordance with paragraph 35 of its Working Party Report and the amended laws and regulations stated in the Secretariat report Appendix Table AII.1 "pricing policies". EGYPT Report by the Secretariat Import licensing In document (WT/TPR/S/256), page (28), (iv) import prohibitions, restrictions and licensing, paragraph 30, it is mentioned that "although the law provides for automatic licensing, Saudi Arabia does not have automatic licenses on any product" Question 1 Egypt needs to listen to more clarification and explanation in this regard. Answer Please refer to the Kingdom of Saudi Arabia's Working Party Report Paragraph 126. Services Page 10, paragraph 16 Foreign direct investment The Report states that Saudi Arabia was 29th in UNCTAD's Inward FDI Potential Index in 2008, which reflects, in general, inhibited FDI since foreign companies still face investment restrictions in certain activities, including fisheries and oil exploration/drilling/production. Question 2 The Government of Egypt would like more elaboration on the restrictions that foreign companies face, and when, if they are expected to be removed. Answer Foreign investment is permissible in all activities, except those which are included in a short "Negative List". A full list of economic activities in which foreign investment is currently not permitted can be found in the Secretariat Report (p. 19). The investment climate (rules, regulations, incentives, etc.) in the Kingdom is continuously improving to attract foreign investors of all types, consistent with the WTO Agreements and other investment agreements to which Saudi Arabia is a party. Page 11, Paragraph 20 Outlook The Report stated that Saudi Arabia is trying to enhance the employability of nationals by reducing the educational mismatch between Saudis' qualifications and private-sector needs through the "Saudization" programme. Almost 6 million foreign workers (some 80% of the total labour force) contribute to Saudi Arabia's economy.

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Question 3 The Government of Egypt would like more elaboration on Saudi Arabia's policy for the replacement process of foreign labor force (saudization), and whether the Government will provide for adequate compensations upon layoffs? Answer The theme of the New rules is to increase the participation of Saudi nationals in private sector and it didn't include any article for layoffs foreign labour force, and regarding the compensation it depends on the contract and Saudi labour law. Question 4 Egypt would also like to know whether there is any expected change within the "kafeel" system that is now pursued in the Saudi labour market? Answer Saudi Laws do not include any reference to Kafeel system. Residence Law is the applicable legislation. This law is explained under Paragraph 283 of the report of the Working Party on the Accession of the Kingdom of Saudi Arabia dated 1/11/2005. Financial services Banking sector Page 75, paragraph 120 The report stated that the foreign presence in the Saudi banking sector is significantly high since it represents about 74% of the total number of operating and approved licensed banks in Saudi Arabia, and that there are 11 licensed foreign bank branches and 12 commercial banks operating in Saudi Arabia. Question 5 Are all foreign banks in Saudi Arabia governed by Islamic principles (i.e. operate as Islamic banks), and if not how do foreign banks operate in the Saudi market? Answer Banks are regulated by SAMA, pursuant to the Banking Control Law. The existing banking regulatory framework is a risk-based supervision approach that is flexible and sufficient enough to cover risks arising from banking services. Thus, the banking industry provide full range of banking services, including Shari'ah – compliant products. Page 75, paragraph 123 The report stated that Commercial banks' profits dropped by 10.4% to SAR 26.8 billion at the end of 2009 (SAR 29.9 billion in 2008). Question 6 Egypt would like to know the reason behind the drop in profits and whether it is related to the regulatory developments that Saudi Arabia has recently undertaken in the financial market. Answer On the contrary, sound supervisory and regulatory framework has contributed significantly to strengthening the capacity of the Saudi banking sector to withstand financial stress, which is well-capitalized and has high liquidity level. Thus, the drop in profits of 10.4% is considered to be low given the global financial crisis.

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Page 77, paragraph 130 The Report stated that the CMA has also permitted the trading of Sukuk (deeds and financial certificates) in order to promote a market in instruments less exposed to risk than ordinary equities. Question 7 Egypt would like to know whether the CMA allows for the trading of sukuk for foreigners. Answer Currently, non-resident foreigners cannot trade in the Sukuk listed on the Saudi Stock Exchange. Transport Page 83, paragraph 157 Land transport The Report stated that foreign investment is not permitted in land transport services. Question 8 Egypt questions whether that restriction is in terms of both specific commitments and domestics laws or is it in term of specific commitments only as the Saudi laws may permit that foreign investment. Answer The Kingdom of Saudi Arabia made no commitments in the land transport and it is in the negative list. Paragraph 159 Aviation transport The Report stated that Saudi Arabia has signed bilateral "open skies" agreements with different countries. Question 9 The Government of Egypt would like more elaboration on the criteria for countries with which it has concluded such agreements. Answer The Kingdom of Saudi Arabia made its commitments in accordance with Annex on Air Transport. ECUADOR Secretariat Report - WT/TPR/S/256 I. ECONOMIC ENVIRONMENT

According to paragraph 1 (page vii), "this is being done by promoting downstream industries". Would Saudi Arabia please specify which are these industries? Answer The Kingdom of Saudi Arabia has followed a general policy of diversifying from hydrocarbons by adopting measures that have broad downstream application throughout the economy. Under the Eighth Development Plan (2005-2009), the total refining capacity of the seven refineries in the Kingdom amounted to about 2.1 million barrels per day, while the refining capacity of overseas

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refineries that are partly owned by Saudi Aramco amounted by the end of 2008 to about two million barrels per day. In an effort to increase economic returns and added value of oil resources, Aramco's investment plan aims to raise domestic refining capacity and invest in foreign markets to increase refining capacity. Independent of the Government's diversification initiatives, Saudi Aramco has pursued a commercially based corporate policy of diversifying its operations downstream by increasing production of refined products. The output of refined products increased with the recent expansion of the Petro Rabigh complex. Future plans for downstream expansion include a refinery and chemical complex in Jubail, a refinery in Yanbu, and another refinery and terminal in Jazan. Saudi Aramco has agreed with Dow Chemicals to establish an integrated chemical complex joint venture in Jubail Domestic Refining Projects Underway: • Building a joint refinery between Saudi Aramco and Total of France, with a capacity of 400 thousand barrels per day for export. 30% of the shares of the project will be offered for public subscription within the context of the privatization strategy approved by the State. • Building a joint refinery between Saudi Aramco and Conoco Phillips of America, with a capacity of 400 thousand barrels per day. 30% of the shares of the project will be offered for public subscription • In 2005, Aramco, in partnership with Sumitomo Chemical of Japan, established Petro Rabigh to develop the Rabigh Refinery and build a facility for integrated oil refining and petrochemical production. This company was turned into a Saudi joint stock company in 2007 upon offering 25% of its shares for public subscription. • Within the framework of the National Strategy for Oil and Gas, the Ministry of Petroleum and Mineral Resources opened the way for investment in building, owning and operating oil refineries. An export refinery is expected to be built in the Jazan region. According to paragraph 2, Saudi Arabia established a "US$400 billion investment and development programme". Would Saudi Arabia please explain the consistency of these measures with its subsidy and domestic support commitments, and to which sectors these funds were destined? Answer Please see paragraph 21 page 11 of the Secretariat report. According to paragraph 9, the GCC members have agreed that new preferential agreements concluded by Members will apply equally to all Members. Why are agreements with the United States excluded? Answer The Kingdom of Bahrain and the Sultanate of Oman have individually entered into a free trade agreement with the United States. The GCC leaders agreed at a summit held in 2005 to consider bilateral free trade agreements signed by the GCC countries individually with the United States as a single exception from this principle. The rest of the Member States treat these agreements in such a manner that is consistent with the requirements of the customs union, in accordance with the clearing mechanism. The Customs Union Authority has been charged with finding a mechanism to deal with these agreements in line with the final status of the Customs Union. Paragraph 20 (page x) states that the Saudi Arabian Oil Company is fully State-owned. Would Saudi Arabia please confirm whether the company is a State Trading Enterprise? Answer Saudi Aramco is not a State Trading Enterprise.

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Referring to paragraph 20, footnote 21 (page 11), would Saudi Arabia please provide further details on the types of incentive granted to the private sector under the "Saudization" programme, whether the incentives are granted to enterprises engaged in specific economic activities and whether the rationalization of recruitment of foreigners pursued by this programme is consistent with the commitments undertaken by Saudi Arabia under the GATS? Answer Incentive package given to the enterprises lies in the upper zones of "Saudization" programme those who employed the required number of Saudi national, and the parameters for granted incentive depend on economic activities, geographical area, size of the enterprises. More details regarding the "Saudization" programme can be found in the Secretariat report, Page 11, paragraph 20, footnote 21. "Saudization" programme is consistent with Saudi Arabia's Mode 4 commitments under the GATS. II. TRADE AND INVESTMENT REGIME (5) INVESTMENT FRAMEWORK

Paragraph 30 (page 20): As regards the "one-stop shop to provide information and assistance to foreign investors, and to foster investment opportunities in Saudi Arabia", would Saudi Arabia please expand on the implementation of this system and the results achieved? Answer The Saudi Arabian General Investment Authority (SAGIA) was created to further promote foreign investment and serve the business community as a one-stop shop, except those activities listed in the Negative List or where the power to licence was assigned to an agency other than SAGIA. SAGIA, through its One-Stop-Shop, will be the only channel point between the investors and residents and the Government ,which include seven ministries and entities participate in OSS:

Ministry of Commerce and Industrial. Ministry of Justice. Ministry of Labor. Ministry of Foreign Affairs. General Directorate of Passport. General of Organization of Social Insurance. Zakat and Income Tax Municipality.

The results helped investors to get their license without going to each ministries, also saving time for all investors to accelerate the process of establishing their business. III. TRADE POLICIES AND PRACTICES BY MEASURE (1) MEASURES DIRECTLY AFFECTING IMPORTS

Paragraph 5, footnote 8 (page 22) and paragraph 103 (page 49): As regards the detention and seizure of an imported consignment if an explicit IPR violation is witnessed, would Saudi Arabia please indicate whether its legislation also provides for seizure (on grounds of infringement of intellectual property rights, relating to parallel imports) of goods in transit, and, if so, which WTO provisions justify such action? Answer Saudi Arabia explained how it deals with parallel imports in the Working Party Report on the Accession of Saudi Arabia, paragraph 251, pages 81-82.

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Footnote 13 of Article 51 of the TRIPs Agreement is considered an elective provision which does not oblige WTO Members to allow transiting of infringing materials. Saudi Regulations of Border Procedures for Protection of Intellectual Property Rights of Trademarks and Copyrights did not exclude infringing goods from suspension of release even if such goods are in transit. In Addition, Article 24 of the Unified Customs Law prohibits entrance, exit or release of prohibited or infringing goods. (2) MEASURES DIRECTLY AFFECTING IMPORTS (EXPORTS)

Paragraph 73, page 40 As regards credit granted to exporters, would Saudi Arabia please provide details concerning the repayment conditions and interest rates applicable to exporters seeking to obtain export credit? Do these conditions differ from those proposed by the National Commercial Bank of Saudi Arabia? As regards the export finance insurance policy, which now covers up to 90 per cent of commercial or political default risks, would Saudi Arabia kindly explain how the evaluation is carried out to determine what percentage should be covered by the policy (numerical calculation)? Answer All credits offered by SEP are within market practices, norms and commercial principles. The SEP is a supplement to the credits that might be granted to exporters by the privet sector financial institutions. However, details related to the NCB are provided in the KSA WPR Para. 44. Regarding the insurance policies, the percentage of the coverage of these policies is determined based on the credit assessment of the exporter and importers, evaluation of the nature of the export transaction (type of exports, amount, credit tenor) and the evaluation of the political and commercial risks of the recipient country as well as its credit rating as published by the international credit rating agencies (SYP, Moody's, Fitch, EIU,…etc). (3) MEASURES AFFECTING PRODUCTION AND TRADE

According to paragraph 85, page 43 The Competition Law and its Implementing Regulations apply to all establishments in Saudi Arabia, with the exception of wholly State-owned corporations. Would Saudi Arabia please explain the reason for this exception (or privilege) and how it is that such an exception does not conflict with the prohibition (in Saudi Arabia's competition legislation) on restricting commerce or limiting competition, and, in the light of the foregoing, how this privilege is consistent with the WTO principle of non-discrimination? Answer The exception is based on Article 2 of the Competition Law. Wholly State-owned enterprises in the Kingdom are subject to the commitment embodied in paragraph 52 of the Kingdom's Working Party Report to act in accordance with commercial considerations. Please see Paragraph 52 Page 26 of the Working Party Report on the Accession of Saudi Arabia. Paragraph 84, page 43 Would Saudi Arabia please specify what type of activities will be promoted in the Industrial Cities and Technology Zones that are in the process of being set up? Answer Saudi Arabia is seeking to attract local and international investments in the industrial and logistics sectors in all industrial cities that spread in the regions of the Kingdom. The opportunities appropriate to each city are marketed according to the region's economic advantage. These investments are designed to achieve the following:

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1 - Recruiting national cadres to acquire local and specialized skills. 2 - Making use of raw materials available in the region and enhancing their added value. 3 - Attracting high-tech industries to localize international experience. 4 – Attracting projects that integrate with the existing plants in the industrial city. IV. TRADE POLICIES BY SECTOR (2) MINING AND ENERGY

Page 59 Would Saudi Arabia please expand on the cooperation it provides to other countries in the energy field, where cooperation exists. What are the requirements for benefiting from such cooperation? Answer Saudi Arabia is cooperating with energy producing and consuming countries, both individually and through International organizations, such as the International Energy Forum, to maintain stability and efficiency of the International energy market, reducing excessive market volatility and improving market data transparency. FOLLOW-UP QUESTIONS JAPAN EU's question 11, page 30 (WTO Secretariat report, page 17, para. 20) According to "the list of agricultural and industrial goods of different customs duties percentage in Saudi Arabia from the rest of the GCC countries" submitted by Saudi Arabia in response to the EU question, there are about 560 goods in 8-digit HS codes which Saudi Arabia reserves its right to impose differential duties from the rest of the GCC countries. Could Saudi Arabia elaborate on the reason for keeping higher tariff rates for these goods? Is there any prospect that Saudi Arabia might eliminate or cut the tariff rates on these goods in the future? Answer Saudi Arabia has reduced its tariffs on the imported goods from 12% to 5%, then to 80% of the tariff schedule before the formation of the Customs Union in preparation to enter into the customs union. A decision was made by Supreme Council for the Cooperation Council for the Arab States of the Gulf in its 32th session which was held in Riyadh in December 2011, where it entrusted to the Customs Union to examine the disparity in tariffs among the GCC countries within the framework of a timetable in line with the final status of the customs union and the obligations of Member States towards the World Trade Organization. UNITED STATES WT/TPR/G/256 U.S. question, pages 10 and 11, paragraphs 50-53 U.S. question According to the GCC Common Law, would an antidumping, countervailing duty or safeguard measure apply to imports into all members of the GCC or may such measures be applied only to imports into certain members of the GCC? Saudi Arabia answer

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The Implementing Regulation stipulates that, as a rule, anti-dumping, countervailing duty and safeguard measures apply to all imports into the GCC. However, the application of anti-dumping, countervailing and safeguard measures may be limited to one or several member states of the GCC, as per the exceptions provided in the Implementing Regulation. U.S. follow-up Please clarify what these exceptions are. Please also clarify how the injury, dumping and subsidization determinations will be made (whether on GCC-wide basis, or country specific basis)? Answer The exceptions concerning the scope of application of the GCC Common Law are set forth in the Implementing Regulation of the GCC Common Law. These exceptions are based on the provisions of Articles 4.1(ii) and 4.2 of the Anti-Dumping Agreement, Articles 16.2 and 16.3 of the SCM Agreement and footnote 1 of the Agreement on Safeguards. As a rule, the assessment of injury and of the effects of dumping and/or subsidization is to be made on a GCC-wide basis. However, where the scope of an investigation is limited to one or several GCC member states, the injury and the effects of dumping and/or subsidization will be assessed only for the GCC member state(s) concerned.

If there is a discrepancy between the GCC Common Law and Saudi Arabia's national laws, which law will prevail?

Saudi Arabia answer There will be no discrepancy between the laws because the amended GCC Common Law will be ratified by Saudi National Authorities and will be published in the Saudi Official Gazette. Please clarify whether your response means that GCC Common law will become Saudi Arabia's national law. If not, please explain why there will be no discrepancy between the two laws. Answer The amended GCC Common Law, as with the original GCC Common Law, will become Saudi Arabian national law upon ratification, and therefore there will be no discrepancy. WT/TPR/S/256 U.S. question/Saudi Arabia answer/U.S. follow-up, page 21, paragraph 2 In its responses to questions on paragraph 2 of the WTO Secretariat's report (page 21), Saudi Arabia indicated that certificates of origin are required for all products, including non-preferential imports, and that the certificate must be issued by "the competent authorities in the exporting country in accordance with procedures of these countries." Can Saudi Arabia please explain who are such competent authorities?

In cases where neither the exporting country's government ministries nor the local Chamber of Commerce will issue a certificate of origin, how would a company obtain an appropriate certificate of origin?

Has Saudi Arabia considered less burdensome measures to accomplish its goal of combating fraud and obtaining trade statistics?

Answer The competent authorities permitted to issue certificates of origin are usually the Ministries of Trade and Industry, Chambers of Commerce and Industry in the exporting countries. If the county’s Ministries and Chambers of Commerce and Industry do not issue certificates of origin, they are

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accepted if issued by the authority authorized by the law of the exporting country provided that they are ratified by the Chamber of Commerce or Industry in the exporting country. With regard to the examination of less burdensome measures, the measures in question are not clear. U.S. question, page 49, paragraph 102 and page 50, paragraph 106 The Secretariat lists the numerous conventions and treaties to which Saudi Arabia is a party. We note that the Secretariat reports that Saudi Arabia's related rights concern performers, producers of sound recordings and broadcasting organizations. Question 19 Does Saudi Arabia plan to accede to the World Intellectual Property Organization's (WIPO's) Copyright Treaty (WCT) and/or WIPO's Performances and Phonograms Treaty (WPPT)? Saudi Arabia Answer IPR treaties, including WCT and WPPT, are being reviewed by the IPR Standing Committee to evaluate the pros and cons of acceding to them. At the time of accession to the WTO, all Saudi Arabia IPR laws and regulations were brought in line with the obligations set out in the TRIPs Agreement. In 2007, the TRIPs Council reviewed all legislation related to IPR in Saudi Arabia to ensure full compliance with the provisions of the TRIPs Agreement. U.S. follow-up Please identify each of the IPR treaties that are under consideration by the IPR Standing Committee. Answer The Government of Saudi Arabia established a Technical Cooperation Program with WIPO. WIPO Experts are being invited to the Kingdom frequently to advise on different IP matters, and/or to hold seminars and workshops. Different matters are discussed to help further develop IPR system in KSA including related WIPO treaties during the mission. The IPR Standing Committee and the concerned IP office seek to know the benefits and costs of acceding to any of these treaties, and whether the related department and legislation are ready to accommodate new treaty, then recommendations will be made. This is the normal practice and not specific. For Example: a Royal Decree was issued recently to approve accession of Saudi Arabia to WPT and PCT. U.S. question, page 50, paragraph 106 The Secretariat indicates that the Copyright Law protects works "as far as their distribution is allowed in Saudi Arabia." Question 22 Please explain this statement and whether copyright protection for copyrightable works in Saudi Arabia is subject or conditioned upon any type of content review. Saudi Arabia answer Content Review is carried out to ensure that works do not conflict with Public Morals. Prohibited works do not enjoy any benefits in Saudi market anyhow. U.S. follow-up If a work fails Saudi Arabia's content review mechanism, is it stripped of or otherwise denied copyright protection in Saudi Arabia? If Saudi Arabia denies copyright protection to such works, please explain that practice in light of Article 5(1) of the Berne Convention, as incorporated by Article 9.1 of the TRIPS Agreement and Article 41.1 of the TRIPS Agreement. Please see the Panel Report

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Decision from Case #WT/DS362, a summary of which may be found at: http://www.wto.org/english/tratop_e/dispu_e/cases_e/1pagesum_e/ds362sum_e.pdf. A summary of the full Panel Report in this case may be found at: http://www.wto.org/english/tratop_e/ dispu_e/cases_e/ds362_e.htm. U.S. question, page 50, paragraph 107 The Secretariat indicates that Saudi Arabia's Copyright Law provides protection for news reports. Article 4(2) of the Copyright Law states that "what is published in newspapers, magazines and periodicals" are excluded from protection. Article 2(7) of the Implementing Regulations of Copyright Law, however, lists news reports as a protected work. Answer In all cases all literary and artistic works are protected under Saudi Copyrights Law in accordance with the Kingdom's commitments under TRIPs Agreement. Article 32 of the Copyright Law provides protection to such works regardless of their content. The right holder who suffers harm due to the violation of his right may claim redress according to Article 28.1 of the Copyrights Law. In cases where the content of the work is considered to be contrary to public moral and/or order, authorization of publication of such works is denied but at the same time the work remains protected. In such cases, and whether the right holder is a national or a foreigner, the violator of the copyright is punished according to Article 28 of the Copyrights Law and all pirated materials and equipment used in carrying out such act are confiscated. Question 23 (part 2) The Secretariat indicates that the Copyright Law provides a reproduction right. Is this covered in Article 9: Financial Rights under "the author, or whoever he delegates, shall have the right to exercise all or any of the following...all forms of material exploitation of the work in general"? If not, please indicate which provision of the Copyright Law, and/or the Implementing Regulations, provides for a right of reproduction. Saudi Arabia answer Yes, Article 9 of the Saudi Copyrights Law warrants reproduction rights in accordance with Article 9 of the Berne Convention of 1886. U.S. follow-up Please identify the specific language from Article 9 of the Saudi Copyrights Law that provides a right of reproduction. Answer Article 9.4 of the Saudi Copyrights Law provides for reproduction right. The Text of Article 9.4 provides that: "All forms of material exploitation of the work in general, including permissible commercial rental". EUROPEAN UNION Follow-up to questions 2, 3, 5, 9

The EU notes that Saudi Arabia has not provided responses to EU questions 2, 3, 5 and 9, stating that these questions are outside "the WTO scope". However, the EU would like to clarify that trade-related labour/social issues form part of the TPR exercise, which addresses a wide range of issues such as macroeconomic policy and other policies that have an impact on trade policy, including thus a country's contribution to sustainable development and labour policies that are conducive to fostering trade and development. The EU would also like to emphasise that trade-related labour/social issues are either partially or under separate heading (in some Members' policy statements) covered also in

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TPR reports, including in both reports for the Saudi Arabia TPR (e.g. as part of the objectives of the Saudi Arabia's Ninth Development Plan). Sustainable development is an overarching policy objective of the international community. Social development, economic growth and environmental protection are inter-related and mutually reinforcing components of sustainable development. It is incumbent upon WTO Members to ensure both that international trade contributes to – and certainly does not undermine – sustainable development and that goods and services which may be traded internationally are produced in a manner that does not violate the fundamental principles and rights at work as set out by the ILO. The EU's questions 2, 3, 5, 9 and 46 seek to obtain confirmation from Saudi Arabia that this is the case as far as both the production of goods and services, as well as its investment policy is concerned. The EU considers that these matters do fall within the ambit of the WTO TPR. Therefore, the EU invites Saudi Arabia to respond fully to questions 2, 3, 5, 9.

Questions 2 and 3 I. ECONOMIC ENVIRONMENT

The EU is pleased to note that Saudi Arabia has ratified five of the core ILO Conventions and one of the priority Conventions. It also welcomes Saudi Arabia's vote for the ILO Convention Concerning Decent Work for Domestic Workers at the 100th Session of the International Labour Conference.

Could Saudi Arabia please indicate its intentions in relation to the ratification of the following core and priority ILO Conventions which it has not yet ratified: Convention 87 on Freedom of Association, Convention 98 on Collective Bargaining, Convention 138 on Minimum Age, Convention 122 on Employment Policy, Convention 129 on Labour Inspection (Agriculture) and Convention 144 on Tripartite Consultation?

Could Saudi Arabia explain how it ensures that the eight fundamental ILO Conventions are respected in the informal sector? Question 5 (3) TRADE PERFORMANCE AND INVESTMENT (ii) Foreign direct investment Could Saudi Arabia confirm that economic activity undertaken in relation to a new or existing investment respects Saudi Arabia's national labour law and the fundamental rights at work as embodied by the ILO's 2008 Declaration on Social Justice for a Fair Globalisation? How does Saudi Arabia ensure that these are in fact respected? Question 9 (1) THE INSTITUTIONAL FRAMEWORK (4) TRADE AGREEMENTS Could Saudi Arabia elaborate on the extent to which, and how, social and labour issues are addressed within each of the preferential agreements referred to in the Secretariat and the Government reports? Answer Saudi Arabia holds its previous position that questions (2,3,5,9) are outside of the WTO scope and have to be discussed in the relevant international bodies. However, the Kingdom respects ILO's 2008

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Declaration on Social Justice for a Fair Globalisation, through fixing articles in Saudi Labour law prohibit child work, forced labour, non-discrimination and trade union rights, also a department was established to handle foreign labour affairs, as well as a judiciary commission for foreign labour complaints. Follow-up to question 29 (WTO Secretariat's Report, page 33, para. 42) Saudi Arabia informs that all technical regulations and standards are listed in the GSO on the basis of a decision from the GSO Technical Committee, of which Saudi Arabia is a member. Could Saudi Arabia provide a copy of the decision of the GSO Technical Committee relating to the regulations and standards under revision?

EU's initial question 29 Could Saudi Arabia indicate, in the SPS field, the list of standards and regulations being harmonizing in Saudi Arabia and at the level of the GCC, and the respective work programme? Reply by Saudi Arabia All technical regulations and standards are listed in the GSO on the basis of a decision from the GSO Technical Committee, of which Saudi Arabia is a member. Answer Saudi Arabia participates as a working member of the GSO which is a regional organization responsible, among other duties, for setting GCC standards through specialized technical committees. GSO Technical Committee No. 5 "the GCC Technical Committee for Standards of food and agricultural products" carries out its respective work programme by preparing, updating and adopting the relevant technical regulations in accordance with the following steps:

1. GSO Technical Committee No. 5 meets to draw up the annual project proposals.

2. The proposed projects are distributed among the GCC state members for drafting.

3. After drafting, the projects assigned to each GCC member state are circulated to other members for review and comments. The recommendations, if there are any, of the other members are submitted to the concerned GCC Member for consideration during the finalization stage.

4. The respective member circulates the final draft once again among the other members after considering their submissions.

5. The Technical Committee meets again for approving the final draft. 6. Each GCC member state notifies its respective technical standard projects to

the WTO SPS and TBT Secretariats. 7. After notification, the GSO Technical Committee No. 5 meets to approve

these drafts for adoption as GCC Technical regulations by the GSO board of directors.

All the above stages are carried out according to a specific schedule as indicated by the GSO/Work Program for Standard Setting Part 1/Regulations and Work Procedures. Follow-up to question 30 (WTO Secretariat's report, page 34, para. 47)

According to the reply, the competent authorities in the exporting country shall be responsible for ensuring that the animal products comply with the technical regulations and standards of Saudi Arabia. Could Saudi Arabia provide a scientific justification upon which these technical regulations and standards are based?

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Answer Saudi Arabia bases its food and agricultural technical standards on the relevant available international and scientific references, taking into account the religious and environmental circumstances in the region. Such references are indicated in the notification forms submitted to the WTO SPS and TBT Secretariats. For the most part, the aforementioned technical standards include references such as:

1. Codex Alimentarius. 2. EU Regulations. 3. Technical regulations and standards of the USA. 4. ISO

EU's initial question 30 Could Saudi Arabia indicate the reasons to ask that control of undesirable substances in foods (which results in deviation from the veterinary standard procedure for the export of animal products) are to be guaranteed by the competent authority of the exporting country and not by the food business operator or exporter? Reply by Saudi Arabia The competent authorities in the exporting country shall be responsible for ensuring that the animal products comply with the technical regulations and standards of Saudi Arabia.

Follow-up to question 32 (WTO Secretariat's report, page 35, para. 50)

The EU would like to ask further information as regards adhering to the international standards laid down by the World Organization for Animal Health (OIE), regarding the import of animals and animal products (e.g. Chapter 11.5 on Bovine Spongiform Encephalopathy:

a) Chapter 11.5.1 of the OIE states that:

When authorizing import or transit of the following commodities and any products made from these commodities and containing no other tissues from cattle, Veterinary Authorities should not require any BSE related conditions, regardless of the BSE risk status of the cattle population of the exporting country, zone or compartment:

a. milk and milk products; b. semen and in vivo derived cattle embryos collected and handled in accordance with

the recommendations of the International Embryo Transfer Society; c. hides and skins; d. gelatine and collagen prepared exclusively from hides and skins; e. tallow with maximum level of insoluble impurities of 0.15 percent in weight and

derivatives made from this tallow; f. dicalcium phosphate (with no trace of protein or fat); g. deboned skeletal muscle meat (excluding mechanically separated meat) from cattle

which were not subjected to a stunning process prior to slaughter, with a device injecting compressed air or gas into the cranial cavity or to a pithing process, and which passed ante- and post-mortem inspections and which has been prepared in a manner to avoid contamination with tissues listed in Article 11.5.14.;

h. blood and blood by-products, from cattle which were not subjected to a stunning process, prior to slaughter, with a device injecting compressed air or gas into the cranial cavity, or to a pithing process.

Could Saudi Arabia please indicate the full title, date and page of the mentioned report of the EFSA where the reference made by Saudi Arabia can be found (as mentioned in the reply to question

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provided by Saudi Arabia, i.e. "(…) Saudi Arabia has reviewed the scientific report of the European Food Safety Authority (EFSA), which indicates that although the slaughter age, according to OIE, has been raised above 48 months, there are still BSE cases expected to be reported")?

Answer The title of the report is: Scientific Opinion on a second update on the risk for human and animal health related to the revision of the BSE monitoring regime in some Member States. EFSA Panel on Biological Hazards (BIOHAZ) European Food Safety Authority (EFSA), Parma, Italy. Date: This Scientific Opinion, published on 15 February 2011, replaces the earlier version published on 13December 2010 (EFSA Journal 2010; 8(12):1946). Page: 4- Abstract (P# 9 & 10) which Stated that:

iii. Under a third situation where testing for healthy slaughtered animals would stop on 1 January 2011, 2012 or 2013 less than three, two and one Classical BSE cases would be missed for each of the respective years. After this date and with the hypothesis that BSE continue to decline, less than one Classical BSE case would be missed for each calendar year.

It is pointed out that these figures are estimated with the model employed in this opinion and previously related documents. The likelihood of detecting new cases in specific age groups is very low, but there remains a small probability of detecting one or more cases in some of these age groups.

b) The EU understands that Saudi Arabia: − Bases its reasoning in the EFSA report for banning the import of deboned skeletal

muscle meat" from the EU, i.e. not entirely on the recommendations of Chapter 11.5 on BSE of the OIE Code;

− Imports all the commodities listed in Article 11.5.1 of the OIE Code, except "deboned skeletal muscle meat" (point 1 (g) of article 11.5.1);

− Should be fully consistent with the OIE recommendations, and either follow them entirely or provide a complete risk assessment (based on the principles of the applicable international standards) to deviate to the OIE recommendations.

Could Saudi Arabia please explain its reasoning, including a specific scientific justification, for applying the OIE recommendations for all the above listed commodities (Chapter 11.5.1 of the OIE Code) except for "deboned skeletal muscle meat"?

Answer Saudi Arabia allows the importation of deboned skeletal muscle meat if it comes from animal aged 30 months or less according to OIE Terrestrial Animal health Code published 2008. Saudi Arabia and more than 30 other countries voted during the 77th annual meeting of OIE on March 2009 against omitting item # 11.5.1(g) of the OIE Code of 2008 which stated "it is allowed to import deboned beef meat from cattle aged 30 months or less." EU's initial question 32 Could Saudi Arabia indicate whether Saudi Arabia follows, without any exception, the international standards laid down by the World Organization for Animal Health (OIE), regarding the import of animals and animal products (e.g. Chapter 11.5 on Bovine Spongiform Encephalopathy) or, if not, what are the criteria (e.g. scientific justification) that Saudi Arabia may use for not adhering to them? Reply by Saudi Arabia Saudi Arabia is compliant with the OIE regulations and standards. However, Saudi Arabia has reviewed the scientific report of the European Food Safety Authority (EFSA), which indicates that

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although the slaughter age, according to OIE, has been raised above 48 months, there are still BSE cases expected to be reported. In addition, SFDA mandate is to protect the safety of Saudi citizens, taking the necessary precautionary actions, even if there are assurances in the EU BSE control system.

Follow-up to question 38 (WTO Secretariat's report, page 35, para. 50) Could Saudi Arabia please confirm that it accepts:

a. Evaluating SPS official inspection and certification systems in exporting countries − rather than individual commodities or exporting establishments − according to this standards, and that this evaluating includes all the requirements of this standard (without any exception)?

b. Granting to exporting EU member States a "pre-listing" system for products of animal origin − entirely based by the requirements of this standard − similar to the one granted by the European Union to Saudi Arabia?

Answer The SFDA has produced a guideline on the registration of facilities involved in processing, cutting, manufacturing and packing; chilled and frozen meat, and their products as certified exporters into Saudi Arabia (viewed at: http://www.sfda.gov.sa/En/Food/Topics/System+and+procedures+of+food+control/). This guideline applies to the inspection of all plants exporting meat and meat products into KSA, including GCC meat establishments. EU's initial question 38 Could Saudi Arabia indicate whether it entirely follows, in the context of the import of food, the "guidelines for the design, operation, assessment and accreditation of food import and export inspection and certification systems" of the Codex Alimentarius (CAC/GL 26-1997) or, if not, what parts of these guidelines are not followed and why and, in this case, what other procedures/requirements are followed? Reply by Saudi Arabia Saudi Arabia complies with the Codex Alimentarius (CAC/GL 26-1997).

Follow-up to question 44 (WTO Secretariat's report, page 35, para. 53) Could Saudi Arabia please:

a. Confirm that it accepts evaluating and approving Halal inspection and certification systems in exporting countries − rather than individual commodities or exporting establishments − according to the Codex Alimentarius principles of the standards CAC/GL 24-19971 and CAC/GL 26-1997?

b. Confirm that the evaluation and approval of Halal inspection and certifying bodies include all the requirements of the standard CAC/GL 26-1997 on the evaluation of inspection and certifying bodies (without any exception)?

c. If the answer is no to the above questions, could Saudi Arabia please justify? d. Provide a list of the Halal certifying bodies in the European Union which are

approved by Saudi Arabia? Answer As per Royal decree No. 5887 dated 6 June 2005, all matters related to Halal inspection and certification system fall under the jurisdiction of the Muslim World League.

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EU's initial question 44 Could Saudi Arabia provide detailed information about the procedures, timing and requirements applicable to the evaluation/audit by Saudi Arabia of Halal competent authorities in exporting countries? Reply by Saudi Arabia Saudi Arabia implements the following standards: 1. GSO 1931/2009 HALAL FOOD Part (1): General Requirement. 2. GSO 2055/2010 HALAL FOOD - Part (2): Guidelines for HALAL Food Certification Bodies and their Accreditation Requirement. 3. GSO 993/1998 Animal slaughtering requirements according to Islamic law. Follow-up to question 46 Saudi Arabia has requested further clarification as to the meaning of EU question 46: "What measures – if any – does Saudi Arabia take to ensure that goods destined for export are produced in full respect of these fundamental rights at work?": The EU wishes to ascertain whether (and if so, how) Saudi Arabia ensures that goods which are exported – particularly to the EU – have not been produced in violation of the fundamental rights at work as embodied by the ILO's 2008 Declaration on Social Justice for a Fair Globalisation (notably the relevant ILO Conventions on child labour, forced labour, non-discrimination and trade union rights, the principles of which should be respected whether or not a country has ratified the Convention(s) in question)? Given that the goods in question are traded internationally, the EU considers that this question falls within the purview of the Trade Policy Review process. Answer Saudi Arabia respects ILO's 2008 Declaration on Social Justice for a Fair Globalisation, through fixing articles in Saudi Labour law prohibit child work, forced labour, non-discrimination and trade union rights, also a department was established to handle foreign labour affairs, as well as a judiciary commission for foreign labour complaints. Follow-up to question 58 (Secretariat's report, page 55, para. 7) In its reply to question 58, Saudi Arabia refers to "off-taking agreements". Could Saudi Arabia be more specific on the "off-taking agreements"? Will the products be brought under a specific preferential duty regime? Answer The products brought to the Saudi market by the Saudi investors will be treated under the existing duty regime. EU's initial question 58 The King Abdullah Agricultural Initiative enables private Saudi Arabian businesses to invest in agricultural projects in other countries. What types of measures (subsidies, loans, technical assistance) are provided to private businesses that decide to invest abroad? Are there any conditions that apply? Reply by Saudi Arabia The Government promised to provide financial facilities to encourage Saudi private investors to invest abroad, as well as off-taking agreements to allow them to bring their products to Saudi Arabia. Many kinds of support are available to all Saudi investors.

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Additional questions Report by the WTO Secretariat III. TRADE POLICIES AND PRACTICES BY MEASURE (3) MEASURES AFFECTING PRODUCTION AND TRADE (iv) Intellectual property rights WTO Secretariat's report, page 48, para. 100

1. Could Saudi Arabia explain if procedures according to articles 51-60 of TRIPS Agreement are in place to enable right holders who have valid grounds for suspecting an IPR infringement to lodge an application for action with competent authorities?

Answer Yes, the right holder has the right to proceed to the competent authority to take an action according to articles 5 and 6 of the Regulations of Border Procedures for Protection of Intellectual Property Rights of Trademarks and Copyrights.

2. Can competent authorities also carry out ex-officio actions according to article 58 of TRIPS Agreement?

The Ministry of Culture and Information is authorized to suspend the release of goods suspected of infringing intellectual property rights ex officio according to Article 27 of the Implementing Regulation of the Copyrights Law. The Customs Department is also authorized to suspend the release of goods suspected of infringing intellectual property rights ex officio according to Article 2(b) of the Regulations of Border Procedures for Protection of Intellectual Property Rights of Trademarks and Copyrights. Report by the Government

IV. FUTURE DIRECTION OF SAUDI ARABIA'S TRADE POLICY (1) SAUDI ARABIA AND THE G20

Report by the Government, page 21, para 128

3. In addition to providing development assistance as mentioned in paragraph 128, does Saudi Arabia have any plans to put in place a Duty-Free-Quota-Free scheme for goods from Least Developed Countries?

Answer With respect to exemption from the quotas, there is no quota system in Saudi Arabia to be applied on imports or exports so as to grant exemption to the imports of the least developed. As for whether Saudi Arabia has a plan to exempt the imports from least developed countries from the tariff duties, any amendment on the tariffs or granting preferential treatment must be under the umbrella of the Cooperation Council for the Arab States of the Gulf and the upon a collective approval of all the GCC countries as they form a customs union and apply a common tariffs.

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