WT/TPR/M/407

12 April 2021

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Trade Policy Review Body 3 and 5 March 2021

TRADE POLICY REVIEW

THE KINGDOM OF SAUDI ARABIA

MINUTES OF THE MEETING

Chairperson: H.E. Mr. Harald Aspelund (Iceland)

CONTENTS

1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ...... 2 2 OPENING STATEMENT BY THE REPRESENTATIVE OF THE KINGDOM OF SAUDI ARABIA ...... 4 3 STATEMENT BY THE DISCUSSANT ...... 9 4 STATEMENTS BY MEMBERS ...... 13 5 REPLIES BY THE REPRESENTATIVE OF THE KINGDOM OF SAUDI ARABIA AND ADDITIONAL COMMENTS ...... 51 6 CONCLUDING REMARKS BY THE CHAIRPERSON ...... 58

Note: Advance written questions and additional questions by WTO Members, and the replies provided by the Kingdom of Saudi Arabia are reproduced in document WT/TPR/M/407/Add.1 and will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.

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1 INTRODUCTORY REMARKS BY THE CHAIRPERSON

1.1. The third Trade Policy Review of the Kingdom of Saudi Arabia was held on 3 and 5 March 2021. The Chairperson, H.E. Mr. Harald Aspelund (Iceland), welcomed the delegation of the Kingdom of Saudi Arabia, headed by H.E. Mr. Abdulrahman Alharbi, Governor of the Saudi General Authority of Foreign Trade; H.E. Ambassador Mr. Saqer Abdullah Almoqbel, Permanent Representative of Saudi Arabia to the WTO; the rest of the delegation from Riyadh; and the discussant H.E. Ambassador Mrs. Zhanar Aitzhanova (Kazakhstan).

1.2. The Chairperson was pleased that, in addition to physical presence, the meeting also benefited from the Interprefy online connection, allowing for a wider participation of the Membership, in particular of officials who could not make the journey from Riyadh given the current circumstances.

1.3. The Chairperson recalled the purpose of TPRs and the main elements of procedures for the meeting. The report by the Kingdom of Saudi Arabia is contained in document WT/TPR/G/407, and that of the WTO Secretariat in document WT/TPR/S/407.

1.4. Questions by the following delegations were submitted in writing before the deadline: Canada; Argentina; China; Chinese Taipei; Oman; Singapore; Chile; Ukraine; the European Union; Switzerland; Japan; the United States; and Brazil. The following delegations submitted written questions after the deadline: Malaysia; the Philippines; Egypt; the Russian Federation; the United Kingdom; Indonesia; the Republic of Korea; Iceland; and Turkey.

1.5. At the time of its previous Review in 2016, Members had commended Saudi Arabia for having one of the strongest-growing economies in the G20, with GDP growth averaging 5.3% between 2010 and 2014. Nonetheless, since mid-2014, global oil prices had declined considerably, resulting in lower economic growth. Consequently, Members had encouraged Saudi Arabia to step up its diversification efforts, not only to mitigate the immediate impact of lower oil prices, but also to prepare for a less oil-dependent future, as countries moved to alternative energy sources and tried to reduce their carbon footprints for sustainable development.

1.6. The Chairperson then focused on developments since the previous Review. According to the Secretariat report, Saudi Arabia's real GDP grew 1.6% on average during 2015-19, with very volatile oil prices, and non-oil sectors outpacing the growth of the oil sector. In 2020, the COVID-19 pandemic caused the largest contraction in world oil demand in history and, as a result, Saudi Arabia's real GDP growth was estimated to have declined from 0.3% in 2019 to -5.4% in 2020, according to the IMF. Reducing Saudi Arabia's oil dependence required certain structural changes that had led to the launch, in 2016, of "Vision 2030", a comprehensive strategy designed to further modernize and diversify the Saudi economy.

1.7. Regarding the overall orientation of Saudi Arabia's trade and investment policies, some prominent aspects suggested that openness to international trade and foreign investment was seen by the authorities as playing an essential role in Saudi Arabia's economic transformation. This included the simplification of customs procedures, the existence of a generally low level of import duties, the removal of foreign investment restrictions, and the introduction of new policy instruments to promote exports. However, certain elements, notably the emphasis on "localization" and the existence of detailed sector-specific industrial policies, might raise questions about their potential distortive effects on trade and resource allocation.

1.8. Recent measures adopted by the Saudi Government in matters such as starting a business, registering property, and protecting minority investors appeared to have entailed significant improvements in the business climate. At the same time, governance and rule-of-law issues remained that may warrant reform. Changes to the structure of government also occurred since the last Review, many of which were related to Vision 2030. These include, for example, the creation of a General Authority for Foreign Trade as a separate public entity to take over all the responsibilities related to foreign trade; the transformation of the Saudi Industrial Development Fund to make it the main enabler of the National Industrial Development and Logistics Program; the establishment of the Export-Import Bank; and the implementation of the National Strategy for Special Economic Zones. Moreover, the review period also witnessed the adoption of new legislation regarding many aspects of Saudi Arabia's economic and trade policies, notably in competition and government procurement.

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1.9. In its Government Report, Saudi Arabia indicated that it was determined to play an active role in strengthening the multilateral trading system. A key element of the Government's vision for the future includes women's empowerment and the commitment to increase female participation in the workforce from an average of just under 20% to over 30% by 2030. In this regard, the Labor Reform Initiative was due to enter into force on 14 March 2021 with the aim of improving the contractual relationship between employees and employers. Members wished to know more about these policies through their discussions.

1.10. In addition, a quick survey of the advance questions submitted for this Review showed the wide range of topics of interest to Members regarding Saudi Arabia's trade and investment regimes, such as customs procedures and valuation; tariffs and internal taxes; import licensing; the contribution of small and medium-sized enterprises (SMEs); state-owned enterprises and privatization; SPS and TBT measures; protection of intellectual property rights; agriculture and related activities; mining and energy; and financial services, telecommunications, and transport services.

1.11. In total, Saudi Arabia received 573 advance written questions from 22 delegations for this Review, of which 375 were sent within the established deadline, covering a broad range of topics. Prior to this meeting, Saudi Arabia had already provided written replies to almost all of these questions, and the Chairperson looked forward to hearing Saudi Arabia's updates on these issues during the Friday session.

1.12. This meeting was a good opportunity for Members to discuss in greater detail issues of interest to them and of systemic importance to the multilateral trading system. It was also an opportune moment for Saudi Arabia to update the Membership on the impact of COVID-19 on its economy and measures it had taken in response, given that the documentation prepared for this Review might not have covered the latest measures taken. The Chairperson looked forward to a fruitful exchange.

1.13. The Chairperson closed his introductory remarks by wishing Saudi Arabia a very successful third Trade Policy Review.

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2 OPENING STATEMENT BY THE REPRESENTATIVE OF THE KINGDOM OF SAUDI ARABIA (HE MR. ABDULRAHMAN ALHARBI)

2.1. Thank you, Mr. Chair. I am very pleased to introduce an overview of the Kingdom of Saudi Arabia's third Trade Policy Review. On behalf of the Saudi delegation, I would like to start by thanking His Excellency Ambassador Harald Aspelund from Iceland, our Chairperson, as well as our discussant Her Excellency Zhanar Aitzhanova from Kazakhstan.

2.2. Our special thanks go to Mr. Willy Alfaro, Director of the WTO Trade Policies Review Division and his team for their outstanding efforts and support during this exercise period. We also would like to express our deep gratitude to delegations for showing interest in our Trade Policy Review. Dedicated thanks also go to the Kingdom's 44 government agencies and the Saudi Mission to the WTO whom spared no efforts to make this exercise successful despite the challenges posed by the COVID-19 pandemic.

2.3. We would like to extend our sincere congratulations to H.E. Dr. Ngozi Okonjo-Iweala on her appointment as the WTO's Director-General, Saudi Arabia looks forward to engage constructively under the leadership of the new elected Director General along with other WTO Members to advance and expedite the negotiations in all areas in a consensual manner.

2.4. The Kingdom of Saudi Arabia believes that this periodical exercise is an essential transparency instrument, which provides opportunities for a collective overview of trade policies developments and practices of each Member. The Kingdom paid genuine attention and saved no efforts towards a successful completion of this exercise, the commitment was evident through the participation of different government agencies in the review. We welcome this opportunity to acquaint the WTO Members with the evolving Saudi economy and our Government's policies particularly our trade policy framework.

2.5. Saudi Arabia's trade policy is determined to play an active role in strengthening the multilateral trading system. In this context, the Kingdom during its G20 Presidency in 2020, the "Riyadh Initiative on the future of the WTO" was launched, which aims to support necessary reform of the WTO functioning. The initiative provided an additional opportunity to discuss and reaffirm the objectives and foundation principles of the multilateral trading system. The Chairs' Summary of the Exchange of Views under the Riyadh Initiative was submitted to all WTO Members through the WTO General Council. The Kingdom also contributed to shaping the future of the international trade and investment by proposing the "G20 short- and long-term Actions to Support World Trade and Investment in Response to COVID-19" which was endorsed by the G20 Trade and Investment Ministers.

2.6. During the period under review, Saudi Arabia has continued to implement its trade policies consistently with its WTO obligations and maintains an open, free, and transparent economy. Since our last TPR in 2016, the global economy has been hampered by various new challenges, especially the COVID-19 pandemic. Despite these challenges, Saudi economy has shown its resilience and ability to cope due to the strength of the Saudi economy fundamentals.

2.7. The Saudi Government, led by the Custodian of the Two Holy Mosques and the guidance of His Royal Highness the Crown Prince is determined to inject new dynamism into its economy through a productivity and investment-led transformations that could ensure future growth, diversification of the economy, employment, and prosperity. In 2016, Saudi Arabia launched its Vision 2030, which is a blueprint and an ambitious roadmap for Kingdom's economic diversification and eventual development. The Vision focuses on three main themes, "a vibrant society", "a thriving economy" and "an ambitious nation". Through predefined economic objectives, the Kingdom is set to overcome its structural challenges and leverage its unique comparative advantage, which will also assist to mitigate the adverse impacts of the turmoil of global economy.

2.8. In light of vision 2030 goals, the increasing importance of foreign trade share in Saudi economy, The General Authority for Foreign trade (GAFT) was established in January 2019, to serve achieving Vision 2030 goals and objectives which includes increasing the share of non-oil exports, assure market access for goods and services and widen Saudi network of preferential trade agreements.

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2.9. Saudi Arabia aims to lower unemployment rate from 11.6% to 7%, increase the private sector contribution to 65% of GDP, and raise the share of non-hydrocarbon exports in non-oil GDP to 50%. During the period 2015-19, the GDP increased from USD 654 billion to USD 793 billion.

2.10. One of the most ambitious undertakings to support the Kingdom's economic development objectives is Saudi ARAMCO's successful 2019 IPO, which netted the Saudi Government more than SAR 97 billion. The proceeds will be used to fund Saudi Arabia's ambitious economic reform plans.

2.11. The Kingdom undertook various steps to facilitate and promote an increased role of the private sector in the economy and to improve the ease of doing business. The Kingdom has advanced in business environment ranking which is reflected in international indicators such as the World Bank's Report on Business Facilitation 2020, which witnessed the Kingdom's improvement in many areas such as the index for ease of business, the index of business startups, and the index of protecting minority investors. Saudi Arabia has achieved prominent progress in the World Bank Doing Business 2020 report climbing up 30 places from last year, making the Kingdom the top reformer and top improver among 190 economies around the world.

2.12. Since 2016 up to now, Saudi customs facilitated and automated customs procedures to achieve customs vision of being ranked the first in the region for providing distinguished custom services. In order to become a logistic hub, the Kingdom fully applies the agreement on Trade Facilitation and has automated various customs formalities.

2.13. Saudi customs operated the Electronic Single Window, which connects Saudi customs clients with relevant authorities, and provides online payment service though "FASAH" platform, which is operational 24 hours. Also, undertook steps to facilitate customs formalities, including minimizing the number of import documents from 12 to 2 documents (Bill of Lading and invoice) and reducing the number of export documents from 8 to 2 documents (manifest and invoice). In addition, developing delivery customs procedures to stay up to date with the rapid evolution of online trade facilitation related to customs procedures. Create customs operations center that operates 24/7 to facilitate import and smooth export processes.

2.14. Saudi Arabia recognizes the importance of the competition policy and believes that it is crucial to create an efficient market conduct and promote overall productivity, innovation and competitiveness. The new competition law entered into force in May 2019 and replaced the old law. The new law is expanding the scope of application of the Law to all establishments, organizations and authorities that conduct commercial and economic activities, notwithstanding their ownership. The Law applies to all goods and services, prices of goods and services are determined according to market rules and principles of free competition.

2.15. Recognizing that Intellectual property plays a key role in driving innovation and economic growth, the Kingdom has established the Saudi Authority for Intellectual Property as an independent body that directly reports to the Prime Minister. The Decision aims to unify all IP matters under a single entity. Because of the establishment of the Authority, five IP treaties have been acceded, the legislative IP framework has been reviewed and the national IP Strategy has been drafted.

2.16. The National Committee for Enforcing Intellectual Property Rights has been established. The committee is permanent and composed of different government authorities, and aims to improve and strengthen the IP enforcement eco-system. In addition, in 2020, the Law of Commercial Courts was issued, which provides the commercial courts with subject matter jurisdiction over all criminal and civil IP cases.

2.17. The Saudi Small and Medium Enterprises Authority (Monshaat) was established based in 2015 and it has been mandated to increase the contribution of MSMEs in Saudi's GDP from 20% to 35% by 2030. Monshaat supports the growth and the competitiveness of MSMEs through building a supportive ecosystem and an entrepreneurial society by leading cooperation with strategic partners in the public and private sectors and the non-profit sector locally and internationally.

2.18. "Meras", a government program was launched aiming to facilitate conducting business. It provides government services required from the private sector to start a business in one day. Meras provides high quality integrated services through an online and physical One-Stop-Shop centers.

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2.19. Trade liberalization and investment are of a significant importance to Saudi economy. The Ministry of Investment, which was established in 2020, has succeeded in increasing and re-prioritizing investment sectors, while providing important new opportunities in unprecedented sectors such as entertainment and tourism. It also improved the investment and business climate by reducing the negative list from 19 to 10 business activities.

2.20. It has facilitated the issuance of a foreign investment license by reducing the issuance period to 20 minutes, and the number of required documents to only two documents. In addition, it provides most of its services electronically.

2.21. Saudi Arabia continues the commitment towards promoting a better tax system. A number of tax reforms were initiated since 2017 seeking to elevate attractive business environment for foreign investors to invest in the Kingdom. In light of taxation treaties, Saudi Arabia has concluded more than 55 treaties related to tax, amongst are the Bilateral Investment Treaties, and the Avoidance of Double Taxation and/or Prevention of Tax Evasion treaties which grant foreign investors more privileges and incentives.

2.22. The Ministry of Justice is currently working on drafting a bill to amend the Saudi "Code of Law Practice" to encourage increasing the presence of foreign attorneys in Saudi Arabia, which will facilitate and attract more foreign investments and raise investors' confidence.

2.23. The Ministry of Human Resources and Social Development launched the Labor Reform Initiative under the National Transformation Program on 4 November 2020. The initiative enables the HRSD vision of establishing an attractive job market through enhancing the contractual relations between employees and employers, empowering and developing labor competencies, and the work environment. The reforms will enter into force on 14 March 2021. The initiative will grant expatriates the right to transfer between employers upon the expiry of the binding work contract without the employer's consent. KSA's new initiative abolishes the sponsorship system "KAFALAH" and will enter into force by mid of March 2021.

2.24. The initiative also seeks to increase the flexibility, effectiveness, and competitiveness of the labor market and raise its attractiveness in line with international best practices. It targets to improve Saudi ranking on international competitiveness indicators, decrease dispute cases between employees and employers and attract high-level caliber from around the world.

2.25. Women empowerment in Saudi Arabia is one of the Saudi Vision 2030's main pillars. The economic empowerment of Saudi women is among the top priorities of the reform plan, which sets out a commitment to increase female participation in the workforce from an average of just under 20% to over 30% by 2030. Saudi Arabia has become recognized in terms of improvement and progress toward gender equality since 2017. Saudi Arabia has become one of the leaders in the region in terms of women empowerment.

2.26. Diversification of the Saudi economy is the cornerstone of the Kingdom's Vision 2030. It aims to increase the contribution of non-hydrocarbon exports, as a main lever source of government revenue, through national realignment. Saudi Arabia is undertaking concrete efforts to structurally transform its economy and establish the foundation for its long-term economic diversification objectives.

2.27. The Kingdom of Saudi Arabia announced at the Future Investment Initiatives Conference, held in Riyadh on 24th of October 2017, the launching of "NEOM" project. The project is a giant step and part of the Kingdom's vision 2030, which aims to reduce Saudi Arabia's dependence on oil and diversify its economic resources.

2.28. NEOM will focus on nine specialized investment sectors and living conditions that will drive the future of human, civilization, renewable energy and water, mobility, biotech, food, technological and digital sciences, advanced manufacturing, media, and entertainment with livability as its foundation. The focus on these sectors will stimulate economic growth and diversification by nurturing international innovation and manufacturing, to drive local industry, job creation, and GDP growth in the Kingdom.

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2.29. In January 2021, His Royal Highness Crown Prince Mohammed bin Salman announced launching of THE LINE project, a revolution in urban living at NEOM, and a blueprint for how people and nature can co-exist in harmony. By 2030, NEOM is expected to host over one million residents, receive more than five million tourists, create more than 380,000 jobs and contribute by SAR 180 billion to GDP. NEOM will be 100% powered by renewable energy.

2.30. Saudi Arabia has established the Economic Cities and Special Zones Authority (ECZA). ECZA target to be the national umbrella delivering the following; (1) translate national strategy and priorities into a portfolio of zones (2) centralize and streamline zones requests for Special Economic Zone (SEZ) status (3) create a strong brand for investors, ensuring uniformity and excellence of services across zones, and (4) issuing regulations at zone's level.

2.31. SEZs being developed in Saudi Arabia have competitive locations targeting (17 sectors) which can be collectively described as Industrial, Logistics, Aviation, Military, Maritime, Food processing, Pharma & Bio pharma, Machinery & equipment, Automotive, Renewables, Specialty Chemicals, Healthcare, Media, Financial services, Tourism, Digital and E-commerce.

2.32. The Kingdom considers privatization as a key tool that plays an important role in enhancing economic growth, generate revenue and increase efficiency. The Kingdom's privatization strategy, along with the related area of Public-Private Partnerships (PPP) has evolved considerably since 2016. Privatization and PPP will contribute to achieving other objectives; including those related to improving the fiscal balance, attracting foreign investment and improving the quality and efficiency of public services.

2.33. In 2019 seven PPP tenders were closed, these included three new wastewater treatment plants, two new water desalination plants and a new container terminal at Jeddah Port. The first strategic privatization sale of the Saudi Medical Service was completed.

2.34. PPP tenders were awarded for two further water and wastewater projects, a new container terminal at Dammam port, a second cargo terminal at King Khaled International Airport and the construction of 60 new schools, as well as privatization of two flourmills. Most of these transactions involved international investors. The PPP investments were financed through a combination of local and international banks.

2.35. New projects are being added to the pipeline from all sectors that will see further diversification in the sectoral focus such as health, education, municipal services, social care, agriculture and housing, as well as further projects in the water and transport sectors. Future privatizations include government's remaining flourmills and a portfolio of desalination co-generation plants.

2.36. The Kingdom's pays special attention to the development of the industrial sector. The number of factories under construction in the Kingdom reached 1494 in 2020 by a growth rate of 48% compared to last year. Furthermore, the investments of these factories and licensed employees increased by 13% and 33%, respectively. The National Industrial Strategy is being updated to align with the Kingdom's 2030 Vision aspirations.

2.37. A new Mining Investment Law entered into force in 28 December 2020. The new law is designed to increase investments in the sector through a transparent system, simplified procedures and enhanced investors' confidence.

2.38. The Kingdom's rapid economic and population growths along with its industrial and social developments as it pursues Vision 2030, have increased the demand for energy and desalinated water. One of the essential means of achieving a sustainable growth is the introduction of nuclear and renewable energy in the energy mix.

2.39. The scheme of the environment, water and agriculture sectors has achieved successfully a major transformation process in the past five years. A number of important strategies have been formulated as a roadmap to achieve the strategic goals drawn by Vision 2030 for the Ministry of Environment, Water and Agriculture (MEWA) sectors and relevant entities. Its structure ensures harmonization between these different entities; the most important strategies are food security

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- 8 - strategy, national water strategy, environment strategy, national strategy for agriculture and agricultural development fund strategy.

2.40. Saudi Arabia through the Ministry of Energy has launched in 2017 its National Renewable Program. The main goal of the program is to substantially increase the share of renewable energy in the total energy mix targeted under the Vision 2030.

2.41. In 2019, the trade in services sectors have contributed by 50.8% to the Kingdom's GDP, with an increase of 5.15% form 2018. The Kingdom targets to reach trade balance regarding trade in services by the year 2025.

2.42. The National Tourism Strategy's objectives, within Vision 2030, are achieving the 15th international tourism destination by 2022 (first destination in the Middle East), increase international and domestic trips to more than 100 million a year by 2030 and promoting tourism beyond religious purposes and share a wide range of unique experiences. In order to facilitate and enhance attracting investments in this sector, various enhancements have been introduced including issuing licenses for specific sub sectors in only 120 seconds.

2.43. The General Entertainment Authority was established to organize, develop, and lead the entertainment sector to provide entertainment options, and tailored experiences to the needs of people in the Kingdom, as well as improving and enriching the lifestyle and social cohesion among the community.

2.44. The financial sector in the Kingdom has witnessed further FDI attraction, as the number of licensed banks during the review period has increased from 23 to 29. Currently, there are 12 licensed domestic banks including the joint venture banks and 17 licensed commercial bank branches of foreign banks.

2.45. The Capital Market Law has been amended to further enhance investment protection, develop capital market infrastructure institutions, reduce risks, enable new classes of securities, and attract foreign investment to the capital market. The amendments also facilitate the provision of affected investors with compensation through the development of mechanisms for class action suits and activation of the affected investors' compensation funds.

2.46. Saudi Arabia has developed an extremely competitive telecom market. It is the largest ICT market in the MENA region with a value of USD 18 billion. ICTs help developing vibrant society and thriving economy as envisaged in Vision 2030. The Kingdom has invested more than USD 15 billion in just the last three years in innovative ICT services.

2.47. Saudi Arabia clearly recognizes the centrality of development and the need for positive efforts to ensure that developing countries, and especially the least-developed ones, get their share in the growth of international trade.

2.48. In conclusion, I have briefly outlined the framework that underpins our trade and economic policies, our goals for economic and social development, as well as trade policy initiatives implemented since our last TPR. We welcome receiving Member's questions; we have endeavored to provide answers to questions received before the deadline. While questions received afterwards will be answered within one month as per the TPR Mechanism procedures, and we look forward to your comments and views. Thank you.

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3 STATEMENT BY THE DISCUSSANT

3.1. I would like to warmly welcome the delegation of the Kingdom of Saudi Arabia headed by His Excellency Mr. Abdulrakhman Alharbi, Governor of the Saudi Arabia General Authority for Foreign Trade. I also extend my appreciation to H.E. Ambassador Saqer Almoqbel and his team, as well as to Mr. Willy Alfaro, Director of the TPR Division of the WTO for their dedicated efforts in the course of preparation for the Review meeting. Despite unprecedented challenges caused by the global COVID pandemic, today's virtual event demonstrates the importance of the WTO Trade Policy Review Mechanism for the Kingdom of Saudi Arabia.

3.2. It is my honour and privilege to serve in my first role as discussant for the third Trade Policy Review of the Kingdom of Saudi Arabia.

3.3. The Trade Policy Review is one of the central pillars of the multilateral trading system and an important tool for ensuring transparency in the global trade. The peer review would keep us abreast of evolving trading landscape and developments in trade policy of Saudi Arabia in the recent four years.

3.4. The Strategic Development Plan of the Kingdom of Saudi Arabia "Vision 2030" outlines the aspiration of the country to become a global investment powerhouse and a hub connecting Asia, Europe, and Africa. Kazakhstan and Saudi Arabia enjoy close political, trade and investment relations at the bilateral level, as well as within regional and multilateral institutions, including the Organization of Islamic Cooperation.

3.5. I commend the Government of Saudi Arabia and the WTO Secretariat for the high quality and in-depth reports that form a solid basis for our discussions today and this Friday.

3.6. I would like to focus my observations to Saudi Arabia's review on the following.

Economic development

3.7. The Kingdom of Saudi Arabia is the largest economy in the Middle East, the world's largest oil exporter and one of the biggest producers of oil and natural gas. According to the WTO Secretariat's Report, in 2019, 38.0% of real GDP, 64.1% of government revenues, and 77.6% of merchandise exports were based on crude petroleum and natural gas. Key exporting markets of Saudi Arabia are Asia, U.S., and Europe.

3.8. Saudi Arabia is playing a leading role in managing oil production adjustments under OPEC+agreements. Hence, spillovers from Saudi Arabia are important globally and regionally.

3.9. Saudi Arabia is the 23rd largest exporter of goods and the 31st largest import market in the world. Foreign trade represents 62% of its GDP in 2020.

3.10. The country's economy is largely based and dependent on oil and gas and heavy reliance on petroleum for national income, fiscal revenues and exports.

3.11. The IMF1 projected the risk of uncertainty in global oil markets. Extended OPEC production cuts and declining oil prices in 2020 pulled the Saudi economy into recession, with GDP contracting by an estimated 5.4%. In the recently updated World Economic Outlook, the IMF has revised its GDP growth projections for Saudi Arabia to 2.6% in 2021 and 4% in 2022.

3.12. Against this backdrop, diversification of the Kingdoms economy through enhancing the competitiveness of the non-oil sector remains priority objective for the Government of Saudi Arabia.

3.13. In 2016, the Kingdom launched "Vision 2030" strategy - a new ambitious road-map for economic diversification, fiscal adjustment and attraction of foreign investments. Vision 2030 encompasses a wide range of policies to create more private-sector jobs for Saudi nationals, support

1 Source: https://www.imf.org/en/Publications/WEO/Issues/2021/01/26/2021-world-economic-outlook- update.

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- 10 - small and medium-sized enterprises (SMEs), increase investment into non-oil sectors and promote non-oil exports.

3.14. The Fiscal Balance Program (FBP), one of the initiatives of Vision 2030, made significant progress in diversifying and stabilizing the Government's revenues. Since the FBP's initiation in 2016, non-oil revenues increased from SAR 186 billion to SAR 332 billion in 2019. This allowed an increase in the share of non-oil revenues to total revenues 35.9% in 2019 and, in turn, a reduction in Saudi Arabia's fiscal deficit. During the review period, the fiscal deficit, as percentage of GDP, went from a peak of 15.8% in 2015 to 4.5% in 2019.

3.15. The Government of Saudi Arabia implemented fiscal mitigation measures, estimated at around 7.3% of GDP to curb the impact of COVID-19 on the private sector. This, in return, brought up the public debt to a projected 33.4% of GDP in 2020 from 22.8% in 2019. Inflation rate rose to an estimated 3.6%, as the Government increased the VAT rate to 15% in July 2020 from 5%.

3.16. The industrial sector represents around 48% of the GDP and employs 25% of the workforce. It is dominated by non-manufacturing activities such as oil drilling.

3.17. Agriculture accounts for 2.2% of the GDP and employs 2.3% of the active population. Agricultural productivity remains limited compared with public investment that funds the sector. Because of geographical and climatic constraints, Saudi Arabia imports most of its agricultural and food products.

3.18. Services represent almost 42% of the GDP and employ 73% of the active population. Services sector is mainly dominated by tourism, financial and banking services and the insurance sector.

3.19. Small and medium-sized enterprises predominantly employ expatriates (75% of labor force) and accounts for 34% of private sector employment. Saudi Arabia has been taking steady reforms to boost entrepreneurship and attract investments. The Government aims to increase SMEs' contribution to GDP from the current 22% to 35% by 2030.

3.20. Priority sectors for investment are transport and logistics; ITC; health and biotechnology; education; tourism and entertainment; industry (mining and manufacturing); and renewable energy.

3.21. Saudi Arabia indicated in the context of this Review that Vision 2030 is currently being reviewed. I hope the discussions and recommendations expressed by Members in the course of this Review can be taken into account in the work on an updated National Development Strategy with the objective to promote openness and integration of Saudi economy into global trade.

Trade Policy

3.22. Saudi Arabia is a strong supporter of the multilateral trading system and the WTO.

3.23. In 2020, under Saudi Arabia's G20 Presidency, the Riyadh Initiative on the Future of the WTO has been launched. The G20 expressed pledge to support the necessary reform of the WTO and highlighted the importance of collaboration under the WTO in supporting post pandemic economic recovery.

3.24. As Article 12 Member, the country advocates for reinforcement of multilateral trade rules and support level-playing field achieved in terms of market access in services and goods. The Kingdom has been actively participating in the negotiations on JSIs on E-commerce, Investment Facilitation, Services Domestic Regulation and MSMEs with the purpose to ensure meaningful and substantive outcomes at the MC-12.

3.25. Let me also highlight some of the key developments in reforming its trade policy pursued by Saudi Arabia as follow-up to the previous TPR.

3.26. Trade Facilitation. With the objective to become a global logistics hub and into implementation of the Trade Facilitation Agreement, the Kingdom has automated various customs formalities. According to the World Bank's Doing Business 2020 study, Saudi Arabia made importing and exporting faster by enhancing an electronic trade single window, launching an online platform for

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- 11 - certification of imported goods as well as through upgrading infrastructure at Jeddah Port. As a result, in the World Bank Doing Business ranking, the country moved to 62nd place out of 190 economies.

3.27. Tariffs. Saudi Customs has updated and developed the comprehensive tariff in accordance with the classifications of the World Customs Organization. It is expected that these updates will enhance transparency of customs administration and increase customs revenues to the state budget.

3.28. According to the WTO Secretariat's Report, overall, the simple average of Saudi Arabia's 2020 applied MFN tariff rate is estimated at 5.5%, compared with 5.2% in 2015. This slight rise is mainly attributable to changes in the tariff structure but also to increases in customs duty rates for some products, such as meat products and dairy products. Based on the WTO definition, the average applied rate for agricultural products was 7.1% in 2020, while for non-agricultural products the average was 5.2%, about the same as in 2015, when it was 5.1%.

3.29. Agriculture. According to its notifications to the WTO Committee on Agriculture, Saudi Arabia did not provide export subsidies for agricultural products.

3.30. Bound tariffs on agricultural goods vary from as low as 0% to as high as 40%, with some tobacco-related bound at least at 200%. Imports of some products are prohibited, and applied tariffs vary generally from duty free to 25%, with dates attracting 40% and mixed tariffs for tobacco products having an ad valorem part of 100%. As part of the COVID-19 response, the authorities also increased tariffs on certain agricultural products, such as dairy products, juices, and vegetable and olive oils, in June 2020.

3.31. TBT. The competent authority of Saudi Arabia has issued more than 30,000 standards to date, the majority of which were adopted from international standards. The SASO notified almost 240 technical regulations and conformity assessment procedures to the WTO since the last Review. In order to facilitate and accelerate trade procedures for the entrance of goods into the Saudi market, Saudi Arabia introduced "SABER" platform, which aims to protect the businesses from fraud and ensure the health and safety of consumers.

3.32. Import Licensing. Further to the recommendations made at the previous TPR, Saudi Arabia introduced new licensing procedures in 2020. These procedures are aimed at simplification of requirements for obtaining import licenses by businesses, especially small and medium-sized enterprises.

3.33. Trade remedies. Saudi Arabia traditionally has not been a frequent user of trade remedies. During the review period, the GCC investigating authority conducted several anti-dumping and safeguards proceedings. Currently, five anti-dumping and two safeguard measures are in force.

3.34. Export control. According to the WTO Secretariat Report, Saudi Arabia does not maintain any export prohibitions/restrictions that target specific trading partners.

3.35. In response to the COVID-19 pandemic, Saudi Arabia took some temporary measures to prohibit exports of some products. These measures ensure the supply of goods necessary for preventing a critical shortage of essential products and for preserving human health. The products subject to the temporary export prohibition include personal protective equipment for safeguarding against the spread of disease, medical equipment, and pharmaceutical products.

3.36. On investments, Saudi Arabia continues to pursue an open investment regime, which is fundamental for efficient implementation of Vision 2030 and diversification of the Saudi Arabia's economy. In accordance with World Bank's Doing Business Report 2020, Saudi Arabia has made landmark reforms for improving business climate. The country has opened up tourism sector, strengthened access to credit with the introduction of a secured transactions law and a new insolvency law as well as strengthened minority investor protections measures. Saudi Arabia has simplified the procedures of obtaining construction permits by launching an online platform as well as eased requirements for receiving permits for a permanent electricity connection.

3.37. Compared to the previous Review, during the review period the further positive steps towards liberalization of investment regime have been undertaken by lifting several restrictive activities

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(reduced from 19 to 10) based on negative list. Saudi Arabia has also implemented significant reforms to simplify investment facilitation procedures and established a one-stop shop for company incorporation. As a result, Saudi Arabia has been ranked among top 10 reformers by the World Bank Doing Business Report in 2020.

3.38. In the course of the previous Review, Members noted that in order to strengthen private sector's engagement in the national economy, reforms in government procurement policy would increase efficiency of the government expenditures.

3.39. In 2019, the new Government Tenders and Procurement Law has been adopted with the aim to support SMEs and increase local content in government procurement. The conditions to benefit from local content preferences are generally to supply locally made products, hire locals and conduct research and development.

3.40. On Services, the largest contributor to real GDP of Saudi Arabia is the services sector with a 41.5% share, led by government services as indicated in the WTO Secretariat's report. In the previous TPR, many Members raised concerns that competition legislation of Saudi Arabia did not apply to state-owned enterprises, while they were largely present in priority sectors of the economy. Members called for the increased private sector participation.

3.41. The Kingdom has invested significant efforts to accelerate privatization and PPP programs. Privatization Supervisory Committees and National Center for Privatization and PPP has been established to support targeted sectors, identified by the Kingdom's privatization strategy. In addition, a new Private Sector Participation Law is expected to be enacted in 2021. The reform has been implementing Vision 2030's target to conduct privatization of state-owned assets and increase the participation of the private sector in the economy up to 65% of GDP.

Women empowerment and SME's development

3.42. I would like to note that in the Report of the Government, women empowerment in Saudi Arabia was mentioned as one of Saudi Vision 2030's main pillars. The economic empowerment of Saudi women is among the top priorities of the reform plan, which sets out a commitment to increase female participation in the workforce from an average of just under 20% to over 30% by 2030.

3.43. During its G20 Presidency Saudi Arabia led discussions with the objective to support women empowerment. Women's participation in business transformation and development of economy of the country has a great potential. It is important to underline the positive spillover effect in creating business opportunities for women and their further contribution to the Government's plans to increase the contribution of SMEs in Saudi's GDP to 35% by 2030.

3.44. In conclusion, I would like to note that Saudi Arabia is a significant player at the regional and global levels, hence the commitments and contribution of Saudi Arabia to global trading system, as well as international cooperation will support the post pandemic recovery and will have significant impact.

3.45. I wish His Excellency Mr. Alharbi and his distinguished delegation a successful Trade Policy Review. Thank you.

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4 STATEMENTS BY MEMBERS

CANADA

4.1. Thank you, Chair, and good morning colleagues. Let me first welcome HE Mr. Abdulrahman Alharbi2 and his delegation and in thanking the discussant, H.E. Mrs. Zhanar Aitzhanova3 for her thoughtful remarks.

4.2. I would like to begin by acknowledging Saudi Arabia's economic diversification plans as set out in its Vision 2030. We recognize the focus on gradually moving beyond fossilized energy sources and increasing the contribution of small and medium enterprises to the Saudi economy.

4.3. As Saudi Arabia pursues its economic goals to attract an increasing number of foreign companies, we encourage it to continue to enhance its rules-based trading framework in line with its WTO obligations.

4.4. Canada notes that, on February 15, the Saudi government announced that foreign companies will be required to establish their regional headquarters in Saudi Arabia by 2024 as a condition to participate in Saudi government procurement processes. We are concerned that this measure will create undue barriers to WTO Members' companies seeking to operate in Saudi Arabia. Establishing internationally recognized good practices would support Saudi efforts to attract foreign investment across new and emerging sectors of the economy. To that effect, we note that Saudi Arabia participates in the Government Procurement Agreement as an observer since 2007 and we invite the Saudi government to further consider its newly announced measure in light of the GPA standards.

4.5. Canada also wishes to express its concerns regarding the challenges faced by foreign entities doing business in Saudi Arabia when it comes to navigating the country's legal framework. We call on Saudi Arabia to ensure that its courts provide resolution of commercial disputes in a fair and transparent manner. On February 8, the Crown Prince introduced a new set of laws aimed at improving the current legal framework. We encourage the government to further clarify and improve the transparency and due process safeguards of its legal framework, including with regard to the treatment of foreign commercial entities.

4.6. Furthermore, Canada invites Saudi Arabia to ensure that its state-owned enterprises respect business undertakings with foreign entities, and open its bidding and procurement processes to foreign entities in a manner that is not arbitrary nor unjustifiably discriminatory.

4.7. Saudi Arabia's decisions to follow through on its WTO obligations will support the achievement of long-lasting benefits to its economy.

4.8. We recognize Saudi Arabia's recent leadership of the G20 and its focus on WTO reform through the Riyadh Initiative. Additionally, we appreciate Saudi Arabia's work on policy guidelines to boost the international competitiveness of Micro-Small & Medium-sized Enterprises (MSMEs) and its participation in the WTO Informal Working Group on MSMEs. We look forward to continue engaging with Saudi Arabia at the WTO on identifying and advancing areas for WTO reform.

4.9. Canada welcomes Saudi Arabia's acceptance of the Trade Facilitation Agreement in 2016 and its engagement in the Joint Statement Initiatives on Electronic Commerce, and on Investment Facilitation. We invite Saudi Arabia to submit its draft schedule in the context of the Joint Statement Initiative on Services Domestic Regulation and we welcome its openness to include the provision related to non-discrimination between men and women. We further encourage Saudi Arabia to consider joining the Buenos Aires Declaration and the WTO's Informal Working Group on Trade and Gender. Finally, Canada appreciates Saudi Arabia's efforts to submit its WTO notifications, which are critical to providing transparency of support programs to all Members.

4.10. We submitted a number of questions touching on many of the themes just mentioned, and we thank Saudi Arabia for the responses received. We will review these responses carefully. In

2 Governor of the Saudi General Authority of Foreign Trade. 3 Kazakhstan.

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- 14 - closing, I wish that this week's review will prove to be a constructive exchange of views on all aspects of Saudi Arabia's trade policy.

ARGENTINA

4.11. We would like to join other Members in welcoming the delegation of the Kingdom of Saudi Arabia, led by H.E. Mr Abdulrahman Alharbi of the General Authority for Foreign Trade of Saudi Arabia.

4.12. Furthermore, we thank Saudi Arabia and the Secretariat for their reports, which have enabled us to deepen our understanding of this Member's trade practices.

4.13. Saudi Arabia is one of our main trading partners in the Middle East. Argentina is the second biggest Latin American exporter to Saudi Arabia. Between January and September 2020, Argentine exports to Saudi Arabia totalled USD 813.1 million. During the first nine months of 2020, Argentine imports from Saudi Arabia amounted to USD 44.2 million. We export cereals, prepared animal feed, articles of iron or steel, oil seeds and oleaginous fruits, straw and fodder, machinery and mechanical appliances. We import organic chemicals, mineral fuels and oils, plastics and articles thereof, and fertilizers.

4.14. Argentina notes with appreciation that both real GDP and per capita GDP in Saudi Arabia increased slightly during the 2015-2019 period. Equally noteworthy is that the contribution of non-oil sectors to the growth of the economy has increased at a faster rate than that of the oil sectors. This will undoubtedly contribute towards achieving one of the key objectives of the Vision 2030 strategy, namely to diversify the Saudi economy.

4.15. With regard to Vision 2030, measures taken to improve the business environment are worth mentioning. In this context, it should be noted that according to the World Bank's Ease of Doing Business 2020 Index, Saudi Arabia was the country showing the greatest improvement in the ranking, moving up from 92nd to 62nd out of a total of 190 economies. Some of the measures that led to this result included the establishment of a single window and the updating of its electronic single window.

4.16. With regard to foreign investment, it should be emphasized that this is allowed in virtually all sectors of the economy, except in some areas specified in a negative list. In this regard, we would like to point out that, since Saudi Arabia's previous Trade Policy Review, several sectors have been removed from this list. This is in addition to the various institutional and legal reforms adopted to facilitate foreign investment, including accelerating the procedures for obtaining foreign investment licences and improving investor assistance services.

4.17. Argentina sees Saudi Arabia as a Member committed to the multilateral trading system. In addition to having ratified the Trade Facilitation Agreement in 2016, Saudi Arabia is part of various Joint Initiatives taking place at the WTO. While some notifications remain outstanding on sensitive issues for my country, such as domestic support in agriculture, it should be noted that Saudi Arabia submits its notifications on a regular basis. Beyond the WTO, but always for the benefit of the multilateral trading system, Saudi Arabia's work in the context of the G20, and more specifically in the organization of the last G20 Summit in Riyadh in November 2020, deserves recognition.

4.18. As part of this Trade Policy Review, we have submitted questions to Saudi Arabia regarding, inter alia, the process for the resolution of valuation disputes between importers and the Saudi Customs Authority (SCA), the eligibility of foreign enterprises and companies to borrow from the Saudi Industrial Development Fund (SIDF) and Saudi Arabia's new Competition Law. Lastly, we thank Saudi Arabia in advance for its replies, which will be duly studied by our authorities in Buenos Aires.

CHINA

4.19. China warmly welcomes the delegation of Saudi Arabia, led by H.E. Abdulrahman Alharbi (Governor of the Saudi General Authority of Foreign Trade) to this virtual TPR and would also like to express our appreciation to the discussant, Ambassador of Kazakhstan, Madame Zhanar Aitzhanova

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- 15 - for the detailed report and insightful comments and also the Chair and the Secretariat's efforts and contributions to this TPR.

4.20. China and Saudi Arabia enjoy the rapid trade growth since the last Trade Policy Review. The bilateral trade growth averaged about 22.7% between 2017 and 2019. Since 2013, China has been the largest trading partner for Saudi Arabia, and Saudi Arabia has been China's largest trading partner in Western Asia and Africa.

4.21. China highly commends Saudi Arabia's strong support to the rules-based multilateral trading system especially in the most difficult situation, when WTO is facing the biggest existential challenges since its establishment. In this regard, we commend Saudi Arabia's leading role in G20 as the presidency last year. We also recognize Saudi Arabia's constructive engagement in the WTO work including its early ratification of the Trade Facilitation Agreement with all commitments in category A, acceptance of the Protocol Amending the TRIPS Agreement, participation of Joint Ministerial Statements (Initiatives) on e-commerce, investment facilitation for development, domestic regulation in services, and the informal programme on micro, small, and medium-sized enterprises (MSMEs), as well as its active participation in the negotiations and other work of the Organization.

4.22. We are very impressed and appreciate the efforts of Saudi Arabia on its economic diversification and long-term development. Since the inauguration of "Vision 2030", China is pleased to notice that Saudi Arabia has made great achievements in reform and development across many fields, including government reorganization, adoption of new legislation on trade and investment policies, etc. Among these, the introduction of new policy instruments to promote exports, the simplification of custom procedures, and the removal of foreign investment restrictions, suggest that openness to international trade and foreign investment is playing an essential role in Saudi Arabia.

4.23. In the meantime, as the Secretariat Report indicated, certain elements of the new policies might raise questions about their potential distortive effects on trade and resource allocation. In this regard, we hope that the Saudi Arabian Government can provide more transparency in formulating and implementing its trade and investment policies.

4.24. Looking forward, we are ready to explore new growth points for the bilateral economic relations and also the international cooperation with Saudi Arabia.

4.25. In closing, we thank Saudi Arabia for the written replies to our written questions and wish Saudi Arabia a full successful trade policy review.

THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU

4.26. On behalf of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, I would like to extend our warm welcome to the delegation of the Kingdom of Saudi Arabia, led by H.E. Mr. Abdulrahman ALHARBI (Governor of the Saudi General Authority of Foreign Trade) for its third Trade Policy Review.

4.27. I would also like to express our thanks to the discussant, H.E. Mrs. Zhanar Aitzhanova (Kazakhstan), for her insightful comments, as well as the Secretariat for its comprehensive report.

4.28. As noted in both Reports, the Saudi Arabia makes great efforts on modernizing and diversifying the economy by launching the ambitious strategic plan "Vision 2030" in 2016, which includes a wide range of policies aiming at creating opportunities for jobs in private-sectors, woman participation in work, small and medium-sized enterprises (SMEs), and investment in non-oil sectors.

4.29. We're also pleased to see that the prominent aspects of Saudi Arabia's recent trade and economic policies, guided by "Vision 2030", suggest openness to international trade and foreign investment, including desirable business environment to attract foreign and local investment, simplification of customs procedures, the existence of a generally low level of import duties, and the removal of foreign investment restrictions.

4.30. From the perspective of multilateral trading system, Saudi Arabia's achievement is also noteworthy. In addition to the ratification of Trade Facilitation Agreement (TFA) in 2016 and acceptance of Amending the TRIPS Agreement which came into force in 2017, we recognize its broad

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- 16 - interest in JSI negotiations, including e-commerce, investment facilitation for development, domestic regulation for services, and informal working program on MSMEs. We also very much look forward to its early accession into the Government Procurement Agreement.

4.31. It is also commendable that Saudi Arabia, in order to address the global challenges posed by the COVID-19 pandemic, actively launched and promoted the Riyadh Initiative on the Future of the WTO, which aims to identify common ground and shared principles for the next 25 years of the WTO, and to provide the political support needed to make progress in the discussions on reforms among all WTO Members. At the summit held on 21-22 November 2020, G20 leaders explicitly recognized the contribution that the Riyadh Initiative made.

4.32. Turning to our bilateral relations, we have enjoyed a close economic relationship for long. The Kingdom is currently our 15th largest trading partner with USD 5.7 billion worth of two-way trade in 2020. As our main provider of crude oil, Saudi Arabia is our 11th largest source of imports. On the basis of this already close relationship, we look forward to further strengthening and expanding cooperation on trade and investment in the future to the mutual benefit of both our economies.

4.33. With Saudi's sound economic outlook and the initiatives taken to improve the overall competitiveness, we would like to further encourage the Kingdom to make its efforts in the following areas.

4.34. Firstly, there might still be room for improvement in areas such as the enforcement of commercial contracts, the application of the new bankruptcy law (effective in August 2018), and the overall legal framework for the resolution of commercial disputes.

4.35. Secondly, as stated in our written questions, the Saudi government announced an increase in customs duty rates on a quite number of items applicable from 20 June 2020. The full list of products was not published on the Saudi Customs website until 18 June. As a result, in addition to the sudden impact of unexpectedly high increases in duty rates, the exporters were also given insufficient time to react. We would like to encourage Saudi Arabia to impose this kind of measure with a reasonable buffer period.

4.36. Lastly, we notice that the Saudi's notifications on agriculture domestic support for the most recent years (2018-20) remain outstanding. We would urge the Kingdom to regularly proceed its notification to meet its obligations and to enhance the levels of transparency.

4.37. In conclusion, we commend Saudi Arabia on its achievements and the way forward. We look forward to continuing to deepen our bilateral economic and trade relations. We wish Saudi Arabia a very successful and constructive Review.

OMAN

4.38. It is a great pleasure for the delegation of the Sultanate of Oman to participate in the third Trade Policy Review of the Kingdom of Saudi Arabia.

4.39. We extend a very warm welcome to H.E. Abdul Rahman Alharbi, Governor of the Saudi General Authority of Foreign Trade, and we welcome the Saudi delegation in the capital Riyadh and the delegation here in the mission in Geneva. We commend His Excellency for the excellent and comprehensive opening statement.

4.40. The Sultanate of Oman and the Kingdom of Saudi Arabia enjoy deep-rooted fraternal, historical, and economic relations within the Gulf Cooperation Council (GCC), The Arab League and the Organization of Islamic Cooperation. Saudi Arabia is one of Oman's main trading partners.

4.41. Oman congratulates Saudi Arabia on the positive economic development during the period under review, with adequate GDP growth and moderate inflation.

4.42. We are glad to note that economic reforms continued throughout this period and focused on increasing efficiency and inclusiveness. Structural reforms and measures to improve efficiency included several steps on trade and investment facilitation. We are happy to note the creation of the

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Saudi General Authority for Intellectual Property. Oman commends the Kingdom of Saudi Arabia on the steps taken since the last review on diversification, competition policy and telecommunication.

4.43. In 2016, Saudi Arabia has launched "Vision 2030", as a comprehensive strategy designed to modernize and diversify the Saudi economy and develop public services sectors. Key goals include reinforcing economic and investment activities and improving the Kingdom's business environment. Several new policy instruments were adopted to achieve Vision 2030's objectives of increasing non-oil exports and promoting economic diversification.

4.44. Saudi Arabia considers the multilateral trading system as central to the conduct of its trade policies. In 2020, during its presidency of the G20, the Kingdom launched and actively promoted the Riyadh Initiative on the Future of the WTO providing strong support to the multilateral trading system and the WTO.

4.45. Saudi Arabia is an Article XII Member having joined the WTO in 2005. The Kingdom has made commercially meaningful commitments in agriculture, goods and services. Upon its accession, Saudi Arabia bound 100% of its tariff lines at an average bound rate of 10.9%. Which is twice the simple average applied MFN rate of 5.5%. Saudi Arabia has continued to implement its trade policies consistent with its WTO obligations - its policies and practices have a positive impact on the functioning of the multilateral trading system.

4.46. Saudi Arabia is an active member of the WTO. Currently it is the coordinator of the Arab Group. Skilfully representing the interests of the Arab region in the WTO.

4.47. Finally, the delegation of Oman wishes the delegation of the Kingdom of Saudi Arabia a very successful third Trade Policy Review.

SINGAPORE

4.48. The Singapore delegation warmly welcomes H.E. Abdulrahman Alharbi, Governor of the Saudi General Authority for Foreign Trade, and his delegation who are participating virtually. We thank Saudi Arabia for its Government Report and Statement. We would also like to express our appreciation to the TPRB Chair Ambassador Harald Aspelund, the Secretariat, and the discussant Ambassador Zhanar Aitzhanova for their invaluable insights. Allow me to make three points.

4.49. First, the Kingdom of Saudi Arabia and Singapore share longstanding economic ties. In 2020, Singapore's bilateral trade with Saudi Arabia totalled S$8.75 billion, making the Kingdom the second largest trading partner of Singapore in the Middle East, and 20th largest trading partner globally. The two-way flow of investments has continued to grow, and Singapore companies have continued to invest in Saudi Arabia, particularly in infrastructure development, transport and logistics. The GCC-Singapore FTA that was signed in 2008 has also helped to strengthen trade and investment linkages between Saudi Arabia and Singapore.

4.50. Second, Singapore applauds Saudi Arabia's significant contributions in supporting global trade and investment. Singapore was honoured to have participated in the G20 meetings as a guest country during the 2020 Chairmanship of Saudi Arabia. During its chairmanship, Saudi Arabia demonstrated leadership by rallying countries to take necessary actions to build resilience in global supply chains, with the holding of two extraordinary G20 Trade and Investment Ministerial Meetings to address the challenges posed by the COVID-19 pandemic. In line with this, Members may be interested to know that Singapore has levelled up our diversification of food supply sources to include Saudi Arabia, with Singapore's consumers able to enjoy the exquisite taste of Red Sea Shrimp that are now sold in neighbourhood supermarkets. Furthermore, the Riyadh Initiative on the Future of the WTO was instituted during the Saudi Arabia's G20 Chairmanship, and Singapore stands ready to work with Saudi Arabia and other Members on reform of the WTO.

4.51. Thirdly, Singapore has confidence that Saudi Arabia's vast economic potential can be further enhanced through diversification and stepping up its active participation in the WTO. We are pleased to note Saudi Arabia's Vision 2030 comprehensive strategy of modernising and diversifying the economy, by unlocking the potential of the Kingdom's non-oil sectors. Against the backdrop of the COVID-19 pandemic, the impetus for diversification is even more pressing. Singapore looks forward to actively participating in the promising opportunities brought about by Saudi Arabia's economic

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- 18 - transformation. We note that Saudi Arabia has taken steps to improve trade facilitation, such as introducing changes in customs procedures, developing the country-wide single window for customs procedures, and ratifying the WTO Trade Facilitation Agreement (TFA). As more efficient and transparent customs procedures will help to boost trade, especially in non-oil products, we trust that Saudi Arabia will ensure the consistent implementation of these policies across all of the Kingdom's customs ports. Given the coming into force of the new Government Tenders and Procurement Law in 2019, it would be opportune for Saudi Arabia to consider acceding to the Agreement on Government Procurement. Furthermore, although the Secretariat has observed that regular notifications are submitted to the WTO, Saudi Arabia should work on submitting its outstanding notifications on domestic support in agriculture.

4.52. To conclude, Singapore looks forward to the continued strengthening of our economic engagements in both the WTO multilateral sphere as well as on the bilateral front. We wish Saudi Arabia every success for this TPR.

CHILE

4.53. We extend a warm welcome to the delegation of the Kingdom of Saudi Arabia, led by H.E. Mr Abdulrahman Alharbi, Governor of the General Authority for Foreign Trade.

4.54. We also welcome the Mission of the Kingdom of Saudi Arabia to the WTO in Geneva, led by Ambassador Almoqbel, the discussant Ambassador Aitzhanova, and the Secretariat, which we also thank for the report that it has prepared for this exercise.

4.55. Chile has had links with the Middle East since the arrival at the end of the 19th century of people from that region, who, together with their descendants, have contributed to the development of our country. In particular, Chile's relationship with the Kingdom of Saudi Arabia dates back to 1945 and has been growing both politically and economically ever since.

4.56. More recently, our Vice Minister for Trade visited Riyadh last week, thus opening a new chapter in our trade relationship. During his visit, Vice Minister Yáñez held high-level meetings with the chancellery, trade, agriculture, energy, communications and mining authorities. The two countries also agreed on a bilateral programme of work to facilitate investment, trade, logistics and various regulatory aspects. A Memorandum of Understanding between Chile and the Secretariat General of the Gulf Cooperation Council was also signed in Riyadh, to formally begin the development of feasibility studies for a future free trade agreement between Chile and the Gulf countries.

4.57. Chile and Saudi Arabia strongly support the multilateral trading system and the role of the WTO. We both participate in Joint Initiatives, including on investment facilitation for development. We welcome Saudi Arabia's role as a promoter of the Riyadh Initiative on the Future of the WTO, which aims to identify common ground and shared principles for the next 25 years of the WTO, and also to provide the political support needed to make progress in the discussions on reforms among all WTO Members.

4.58. For this review, we have posed 13 questions in areas such as cooperation with the Gulf Cooperation Council, contingency measures on imports, competition legislation, State trading enterprises, telecommunications, e-commerce, and the investment regime. We appreciate the replies provided, which are being analysed by our technical teams in the capital.

4.59. In this regard, our delegation would like to highlight the measures implemented by Saudi Arabia with the aim of modernizing and diversifying its economy, complementing its economic dependence on the oil sector, where output has been well below the world average during the pandemic.

4.60. Indeed, we see in positive terms the preliminary results of Vision 2030, which has a holistic approach to improving various sectors of the economy and boosting competitiveness. Accordingly, we note the measures taken by Saudi Arabia to optimize its employment growth projections; the expansion of women's rights and measures to promote their economic empowerment through specific schemes such as Nitaqat; and measures that seek to open up trade and eliminate barriers to foreign investment.

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4.61. Our country, for its part, values the measures that seek to improve the contribution of small and medium-sized enterprises (SMEs) to the Saudi economy and GDP.

4.62. Notwithstanding the above, it appears to us that the Kingdom of Saudi Arabia still has room for improving certain aspects of notifications, especially in agriculture. We also consider it important that any imposition of export restrictions should be avoided, especially with regard to medicines and other goods for tackling COVID-19.

4.63. Lastly, we wish the Kingdom of Saudi Arabia a successful Trade Policy Review.

UKRAINE

4.64. On behalf of Ukraine, I would like to warmly welcome the distinguished delegation led by H.E. Mr. Abdulrahman Alharbi and express our appreciation to the Saudi Arabia team for the comprehensive Report.

4.65. We would like also to highlight the significant work done by the Secretariat in preparing its report.

4.66. The third Trade Policy Review of the Kingdom of Saudi Arabia offers a good opportunity to deepen understanding of the trade and economic policy developments during the period 2016-2020 and current challenges faced by the country due to unprecedented impact of the COVID-19 pandemic.

4.67. Ukraine acknowledges efforts of the Government of Saudi Arabia undertaken to structurally transform its economy, to change dependency on oil exports and to establish the foundation for its long-term economic diversification objectives. Ukraine believes that measures adapted by the Government will enable Saudi Arabia to minimize the adverse economic impact of COVID-19 on the scale and pace of the Vision 2030 implementation.

4.68. Ukraine appreciates improvement in Saudi Arabia's business environment reflected in international indicators such as the World Bank's Report on Business Facilitation 2020 and the World Bank Doing Business 2020 report, in particular climbing up 30 places to 62nd in the ranking out of 190 economies for the year and becoming the most improved country for doing business.

4.69. At a multilateral level, Ukraine recognizes strong support of the multilateral trading system and the WTO by Saudi Arabia, its active participation in several Joint Ministerial Statement Initiatives and negotiations. Ukraine welcomes ratification of the Protocol concerning the WTO Trade Facilitation Agreement in 2016 and notes steps made by Saudi Arabia in this area including facilitation and automatization of customs procedures, establishment of a country-wide single window.

4.70. In terms of bilateral relations, the Kingdom of Saudi Arabia is an important economic and trade partner of Ukraine.

4.71. The COVID-19 pandemic has had significant severe economic consequences across the globe, including trade relations between Ukraine and Saudi Arabia.

4.72. Despite of the quarantine measures taken in the context of the COVID-19 pandemic, Ukraine, as a reliable trading partner and key exporter of agricultural products, makes every effort to ensure uninterrupted supply of goods to foreign markets, including Saudi Arabia market.

4.73. In 2020, the trade turnover between Ukraine and Saudi Arabia decreased by 10.7% and amounted to USD 821 million, including Ukrainian exports decreased by 3,4% and amounted to USD 719 million and Saudi Arabia imports decreased by 41.8% and amounted to USD 102 million.

4.74. Ukraine is interested in mutually beneficial cooperation with the Saudi Party in the investment field. Saudi companies are taking part in the number of investment projects in the fields of energy, agriculture, infrastructure, shipbuilding, aircraft building, heavy machinery etc.

4.75. In the context of a pandemic, the Government of Ukraine clearly understands the importance of ensuring food security in the world.

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4.76. Ukraine's agricultural sector has significant potential in the production of food and agricultural raw materials and needs to attract both domestic and foreign investment. In this context, the development of investment cooperation, which would consider the interests and benefits of both countries, can give additional impetus to trade and economic cooperation in the agricultural sector between our countries. Given this, Ukraine is extremely interested in the participation of investors from Saudi Arabia in the realization of agricultural investment projects and in the privatization of state-owned agricultural enterprises.

4.77. The reports of the Government of the Kingdom of Saudi Arabia and the WTO Secretariat raised questions in a number of areas – as detailed in Ukraine's written submissions to this Review. The main themes addressed were: features of the foreign investment licensing system and legislation on protection and promotion of investments; operation of new electronic data interchange system; import prohibitions; contingency measures and decision-making procedures; requirements for halal certificates and an Islamic slaughter certificate; responsibilities of competent authorities in the field of intellectual property rights and its enforcements; views on electronic commerce initiative etc.

4.78. I would like to express our gratitude for the responses to our questions and wish the delegation of the Kingdom of Saudi Arabia successful TPR.

JAPAN

4.79. Let me first extend a warm welcome to this third Trade Policy Review meeting to the distinguished delegation of the Kingdom of Saudi Arabia led by H.E. Mr. Abdulrahman Alharbi, Governor of the Saudi General Authority of Foreign Trade. The Kingdom of Saudi Arabia is one of the most important trading partners for Japan. The trade volume between Japan and Saudi Arabia is approximately USD 22.6 billion and the volume of Japanese FDI to Saudi Arabia has reached approximately USD 4.7 billion.

4.80. Amid difficult circumstances due to the severe impacts of the decline in the price of oil as well as COVID-19, Japan looks forward to the successful continuation of the economic policy the Government of Saudi Arabia has been carrying out.

4.81. Japan applauds the excellent leadership Saudi Arabia demonstrated last year during its presidency of the G20 in spite of facing unprecedented difficulties due to the COVID19 pandemic. In terms of trade, we welcome the agreement by the G20 on the following language: "we strive to realize a free fair, inclusive, non-discriminatory, transparent, predictable, and stable trade and investment environment". At the same time, we welcome the fact that the G20 member states were able to show their political willingness to promote the WTO reform through the Riyadh Initiative.

4.82. On the subject of the WTO, Japan appreciates Saudi Arabia joining the Trade Facilitation Agreement in 2016. Japan also expresses its appreciation for Saudi Arabia's active engagement in like-minded initiatives to pursue trade liberalization such as the JSI on e-commerce as well as investment facilitation for development. Japan expects Saudi Arabia to continue to actively engage in multilateral and plurilateral frameworks with a view to contributing to sustaining and strengthening the Multilateral Trading System (MTS).

4.83. Turning back to the efforts on trade facilitation, we note that Saudi Arabia has, to date, endeavoured to actively address trade facilitation. Japan would like to express its appreciation for such efforts as Saudi Arabia's introduction of the Authorized Economic Operator and single window as well as its efforts to reduce the number of documents required for exports and imports. Having said that, we would like to point out that the exportation measure that requires pre-shipment inspection in compliance with the requirement provided by Saudi Standards, Metrology and Quality Organization (SASO) is negatively impacting the effectiveness of exportation.

4.84. Japan welcomes Saudi Arabia's establishment of the ministry of investment and its introduction of guidance for investment policy as well as its efforts to simplify requirements for investment licenses during the review period. Furthermore, we appreciate Saudi Arabia's approval for foreign investment to expand to such sectors as banking and insurance, personnel recruitment, and real estate.

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4.85. In conclusion, Japan highly appreciates Saudi Arabia's efforts to enhance its trade environment and to realize the TPR regardless of the difficulties presented by the COVID-19 crisis.

4.86. Japan wishes the Kingdom of Saudi Arabia a very successful and productive Review.

SWITZERLAND

4.87. I would like to extend a very warm welcome to the Kingdom of Saudi Arabia's delegation led by H.E. Mr. Abdulrahman Alharbi. Let me also thank the discussant, H.E. Mrs. Zhanar Aitzhanova (Kazakhstan) for her thoughtful observations and the Secretariat for their substantive contributions to this trade policy review.

4.88. The "Vision 2030" launched in 2016 has given the necessary impetus to speed up the diversification of the economy through ambitious reforms benefiting the Kingdom of Saudi Arabia in different areas, such as increasing the weight of the private sector – especially SMEs -, promoting non-oil sectors, favoring foreign investments and increasing the participation of the Saudi population in the private economy. Since 2016, non-oil revenues have steadily increased with the manufacturing sector and the renewable energy sectors driving the growth. Therefore, the continuation of the reforms is a central element in sustaining and improving the competitiveness of the non-oil sector. In order to diversify its budget resources, the Kingdom has also introduced a VAT and new excise duties on several goods among other things.

4.89. We welcome the simplification of customs procedures, the removal of foreign investment restrictions and new policy instruments to promote exports. However, we hope that the emphasis on "localization" and the existence of detailed sector specific industrial policies will not translate into further trade-restrictive policies and will not create distortive effects on trade and resource allocation. We note that the average MFN applied rate slightly increased from 5.2% to 5.5% since 2015. As a response to the COVID-19 pandemic, the Saudi Government increased the customs duties on goods classified in more than 500 tariff lines in June 2020. This increase resulted in the tripling of the customs duties in some instances, which is quite substantial. The increase could affect 6% of our exports to the Kingdom of Saudi Arabia. We wonder how this increase is in line with the GCC Common external tariff. Thus, we hope that this increase will be temporary. In addition, we regret that a safeguard investigation is ongoing on several important tariff lines in the steel sector for which the import duties increased significantly last June. As this increase provides additional border protection, we wonder if it is still appropriate to maintain these tariff lines in the scope of the investigation. We would also welcome the notification of all import prohibitions currently in force in compliance with the decision on quantitative restrictions.

4.90. The measures taken by the Saudi authorities to limit the spreading of the COVID-19 pandemic is significantly affecting the Saudi population and its economy. For instance, these measures have slowed down the private sector, which the Vision 2030 aims to develop. Thus, it would be interesting to know if and which adaptations are envisaged to the Vision 2030.

4.91. Despite this difficult context, we welcome Saudi Arabia's strong support to the multilateral trading system. Indeed in 2020 Saudi Arabia launched the "Riyadh Initiative on the future of the WTO" during its G20 presidency, which seeks to support the discussions on the WTO reform. It also held two Ministerial Meetings to address the challenges posed by the COVID-19 pandemic. In addition, Saudi Arabia participates to the negotiations on fisheries subsidies and has joined several Joint Ministerial Statement Initiatives (e-commerce, investment facilitation, domestic regulation in services, informal MSMEs programme). We would like to encourage Saudi Arabia to continue to support the reform efforts needed by the WTO.

4.92. Saudi Arabia is our second trade partner in the GCC region, with a bilateral trade volume of more than CHF 2 billion in 2019. For many years the stock of Swiss investments in the Kingdom have been stable at around CHF 1 billion over the last years.

4.93. Switzerland is of the view that FTA and the WTO are mutually supportive. We would be interested to have some details on the ongoing review about FTA negotiations by the GCC and in particular by Saudi Arabia since several FTAs negotiations started during the late 2000s. The FTA between the EFTA and the GCC States entered into force in 2014. Some challenges persist regarding

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- 22 - the implementation of the FTA. We welcome Saudi Arabia's willingness to address these challenges so that the FTA can have its full impact.

4.94. Switzerland had submitted a series of questions in writing for this TPR. We are thankful to Saudi Arabia for providing answers in due course. Switzerland raised concerns over the excise duty on beverages and the Saber Conformity Assessment Online Platform. In 2016 already, i.e. before the entry into force of the excise tax, Switzerland expressed its concerns about the discriminatory impact of selective tax on certain beverages. Since then, we had numerous exchanges bilaterally and at the WTO over this issue. As Saudi Arabia, like the rest of the GCC, plans to reform the tax in order to align it with international best practices, we are interested in knowing about the recommendations contained in the study about the tax reform. We hope it will remedy our concerns. Turning to the Saber electronic platform, Swiss manufacturers reported complex conformity assessment procedures even for low risk products as well as disproportionate fees, which make the system very costly, burdensome and time-consuming. We recall the importance of providing sufficient information to guarantee transparency of the implementation of these regulations in order to avoid unnecessary burden to the economic operators. We also underline the importance of keeping the documentation and certification requirements, as well as registration and certification fees, to what is necessary to assure an effective implementation of the applicable requirements.

4.95. To conclude, let me thank the Saudi delegation's active engagement in support of the multilateral trading system. We hope that the Saudi economy will soon return to its growth path following a stronger and more diversified integration into the world economy.

4.96. We wish Saudi Arabia a successful Trade Policy Review.

UNITED STATES

4.97. The United States is pleased to welcome Governor Alharbi and the rest of the Saudi delegation to the third Trade Policy Review (TPR) of Saudi Arabia. We welcome the Secretariat and Government reports and the opportunity to gain a clearer sense of the changes to Saudi Arabia's trade regime since its last review in 2016.

4.98. Saudi Arabia is an important economic partner of the United States, and we look forward to increased engagement on trade issues.

4.99. The United States commends Saudi Arabia for maintaining solid economic growth since its last TPR. We also acknowledge Saudi Arabia's ambitious reform efforts under "Vision 2030", a comprehensive strategy designed to modernize and diversify its economy away from reliance on traditional commodities.

4.100. While we appreciate the broad scope of Saudi Arabia's reform agenda, we remain concerned by certain trade policies. For example, the United States understands that Saudi Arabia is currently considering revisions to the excise tax on beverages. We and other WTO Members have raised concerns in several fora about the implementation of this tax, and we have asked for an opportunity to consult with Saudi Arabia on necessary revisions, including switching to a graduated tax based on sugar content, ensuring that the tax covers all beverages in which the total sugar content exceeds a minimum threshold, exempting beverages that contain no added sugar, and ensuring that there is no discrimination between energy drinks and other beverages that have similar amounts of sugar.

4.101. The United States is disappointed with Saudi Arabia's responses to U.S. questions regarding technical barriers to trade (TBT) and its inability or unwillingness to resolve issues raised through the TBT Enquiry point. Some of these issues go back as far as 2017. The underlying lack of transparency results in policy uncertainty that creates difficulties for firms trying to invest in and trade with Saudi Arabia. Examples include Saudi Arabia's unclear guidelines, inconsistent implementation, and complex registration and certification processes associated with the "Saber Conformity Assessment Online Platform/Saleem Product Safety Program." We wish to reiterate that consultation with, and involvement by, all interested parties in the regulatory process often leads to better rules and regulations that meet their objectives while minimizing trade distorting effects. U.S. firms are committed to ensuring that their products meet relevant Saudi and Gulf Cooperation Council technical regulations in order to access the Saudi market. We ask that these issues be addressed.

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4.102. A strong and effective IPR regime is a critical component of attracting investment and achieving Saudi Arabia's ambitious economic goals under Vision 2030. In pursuit of Vision 2030, Saudi Arabia is establishing innovation labs and platforms and engaging in initiatives throughout the country to encourage entrepreneurship. Moreover, in 2017, Saudi Arabia established the Saudi Authority for Intellectual Property (SAIP), ushering in a more unified institutional IP framework. Although Saudi Arabia's enforcement of IP has gradually taken steps forward, there is ample room for improvement. The United States would like to see Saudi Arabia continue to improve the adequacy and enforcement of IPR protection, including through the imposition of penalties that will deter copyright violations.

4.103. The United States is concerned about data localization requirements in Saudi Arabia and has requested additional detail on the types of data subject to localization requirements. We would like to better understand the process for determining which data must be localized, and whether there are measures planned or in place to ensure that any restrictions placed on cross-border data flows are necessary and proportional to the risks presented.

4.104. Saudi Arabia is a wealthy and influential player in the global economy. The World Bank has designated it as a "high income" economy, as it had a GNI per capita (purchasing power parity) of nearly USD 50,000 in 2019. Saudi Arabia's share of global merchandise trade exceeds 1%, and it is a member of the G20. In part for these reasons, we call on Saudi Arabia to no longer seek special and differential treatment in current and future WTO negotiations. By taking this step, Saudi Arabia would make a significant contribution to ensuring that the WTO remains a viable forum for meaningful trade negotiations.

4.105. The United States also notes that Saudi Arabia remains an observer to the WTO Agreement on Government Procurement (GPA) even though it committed in its Protocol of Accession to initiate negotiations for membership in the Agreement upon its accession in December 2005. We would appreciate if Saudi Arabia would indicate whether it intends to begin negotiations on finally joining the GPA, and if so, when?

4.106. Saudi Arabia is a valued trading partner of the United States, and we welcome Saudi Arabia's efforts to develop a more open trade and investment regime. We thank Saudi Arabia for responding to our questions and concerns, and we look forward to further discussing Saudi Arabia's trade regime over the next two days.

BRAZIL

4.107. I extend a warm welcome to the delegation of the Kingdom of Saudi Arabia, led by Mr. Abdulrahman Alharbi, Governor of the General Authority for Foreign Trade, an also to Ambassador Saqer Almoqbel and his team in Geneva. I thank the Saudi Government and the Secretariat for their reports, as well as you, Chair, for your opening remarks, and our discussant today, Ambassador Zhanar Aitzhanova (Kazakhstan), for her exhaustive comments.

4.108. Brazil attaches great importance to the third Trade Policy Review of the Kingdom of Saudi Arabia. Even though our countries have a longstanding political and economic relationship, our partnership is at an auspicious point, since President Jair Bolsonaro met with Crown Prince Mohammed bin Salman in Osaka, Japan, on the sidelines of the G20 summit, in June 2019. In October 2019, President Bolsonaro made an official visit to Riyadh, having been received by King Salman and the Crown Prince and participated, as a guest of honor, in the Future Investment Initiative forum. The 2019 presidential visit culminated the process of strengthening our bilateral relations.

4.109. Our partnership has also evolved with intensity in economic issues. Saudi Arabia is Brazil's main trading partner in the Middle East and North Africa, and Brazil is the main trading partner of Saudi Arabia in South America. Despite this, the volume of trade flows was already decreasing in the last years and declined considerably in 2020, to USD 3.4 billion, largely due to the effects of the COVID-19 pandemic on international trade.

4.110. There is immense potential for increasing commercial relations due to the complementarities of our economies, being Saudi Arabia a significant supplier of oil and petrochemicals to Brazil and an important market for Brazilian poultry, sugar and meat, among other agriculture products.

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4.111. Bilateral investments also have great untapped potential. Saudi Arabia already has some significant investments in Brazil, mainly in the agriculture and food sectors. Also relevant are corporate investments in sectors such as mining, plastics and in the hospitality sector. There is potential for increased Saudi investments in fields such as energy, rail, oil and gas in Brazil.

4.112. In the opposite direction, there are opportunities for Brazilian investments in sectors such as mining, pharmaceuticals and meat production in Saudi Arabia. After the visit of the President Jair Bolsonaro to Riyadh in 2019, an Inter-ministerial Committee for the Promotion of Trade and Investments was established between our countries. The committee became operational in 2020, with a view to follow up on the announcement made, on the occasion of the Brazilian President's visit, on the intention of the Saudi Arabia Public Investment Fund (PIF) to invest up to USD 10 billion in Brazil.

4.113. The conclusion of the ongoing bilateral negotiations on an Agreement to Eliminate Double Taxation and on an Investment Facilitation Cooperation Agreement are also important elements that will certainly contribute to expand investments between our countries.

4.114. Since the last TPR of the Kingdom in 2015, Brazil has been following the progress of Saudi Arabia in numerous economic and social aspects. Despite the impacts of the COVID-19 in the global economy, there are solid grounds for optimism based on sound macroeconomic policies, steady economic growth from 2015 to 2019, deepening of trade liberalization and continuous efforts by the Government in achieving better governance and promoting important social reforms.

4.115. We note the numerous reforms under the auspices of the Vision 2030 strategic plan to modernize and diversify the Saudi economy. We commend the Saudi government for the priority attributed to improving competition on the domestic market by different means and policies, such as encouraging innovation, opening financial markets, simplifying customs procedures, reforming the fiscal system, developing the capital markets for equity and debt, and promoting employment and participation of women in the labor force. We also follow with great interest the increasing efforts to foster investment in non-oil sectors and other measures aiming at the overall diversification of the Saudi economy.

4.116. This review exercise is also a valuable opportunity for Members to identify the areas in the Saudi trade policy framework where further improvement would be beneficial to the system.

4.117. From the Brazilian perspective, agriculture is an area that comes immediately to the forefront of our concerns.

4.118. As noted by the Secretariat report, some concerns remain about Saudi Arabia's technical regulations, non-automatic import licensing system and sanitary and phytosanitary measures, which affect some of the main imports from Brazil on food and animal products.

4.119. On the measures to promote private investment, we acknowledge that this is a key element of the Kingdom's strategy to modernize and diversify its economy. But policies such as those requiring foreign companies to establish regional headquarters in the Kingdom or aiming at self-sufficiency in local agriculture production seems to contradict the principles of achieving legitimate policy objectives through international trade.

4.120. As a positive development regarding the commitment of the Kingdom of Saudi Arabia to the multilateral trade system, Brazil praises the Saudi government for its constructive engagement in many important ongoing negotiations, such as those related to fishing subsidies and the Joint Statement Initiatives on e-commerce, domestic regulation in services, investment facilitation and the informal program on MSMEs.

4.121. Brazil would yet like to praise the efforts of the Saudi presidency of the G20 in providing political support for the discussions on WTO reforms by launching and promoting the Riyadh Initiative on the Future of the WTO.

4.122. I conclude by thanking the Kingdom of Saudi Arabia for the written responses to our questions, which will be carefully reviewed in Brasilia.

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4.123. I wish to the Saudi delegation a very successful and productive Trade Policy Review.

MALAYSIA

4.124. Malaysia is pleased to take part in the 3rd Trade Policy Review of the Kingdom of Saudi Arabia and would like to extend a warm welcome to His Excellency Mr. Abdulrahman Alharbi, the Governor of General Authority for Foreign Trade and his delegation; and Ambassador Saqer Almoqbel and his team for their dedication.

4.125. We would also like to thank the discussant, Her Excellency Ambassador Zhanar Aitzhanova for her insightful comments.

4.126. First and foremost, Malaysia would like to commend the Kingdom of Saudi Arabia for its major policy reforms through "Vision 2030" in an effort to diversify and modernize its economy. The establishment of the Export-Import Bank, and the creation of special economic zones will undoubtedly boost trade and investment inflows into the country. Through "Vision 2030", the Kingdom's fiscal deficit declined from 15.8% in 2015 to 4.5% in 2019 prior to the COVID-19 pandemic. This is a notable achievement as the Kingdom continues to pursue its efforts in modernizing and diversifying its economy.

4.127. Malaysia also commends the Kingdom's emphasis on implementing measures to create a more favourable business environment in recent years. This include areas such as starting a business, registering property and protecting minority investors which has seen the Kingdom's improvement in rankings in some world economic indicators. The modernization of the judiciary has also greatly improved the climate for local and foreign investment.

4.128. Historically, Malaysia has developed strong partnership with Saudi Arabia, particularly in the economic sphere. In 2020, the Kingdom of Saudi Arabia was Malaysia's 17th largest trading partner, with a total trade of USD 4.83 billion. Exports from Malaysia to the Kingdom increased significantly by 18% to USD 0.99 billion from USD 0.85 billion in 2019. However, we note that there is a decrease in imports by 14.2% to USD 3.84 billion from USD 4.54 billion in 2019. Malaysia continues to look forward to further improve the value of trade between both economies in the future. Bilateral investments also continue to flow. As of September 2020, a total of 18 manufacturing projects were approved in Malaysia with total investments worth USD 1.6 billion.

4.129. At the multilateral front, we applaud the Kingdom's substantial efforts in adhering to the various WTO Agreements, for example, in ratifying the WTO Trade Facilitation Agreement in 2016. Malaysia notes that during its G20 presidency, the Kingdom launched the Riyadh Initiative on the future of the WTO, which aims to identify common grounds and shared principles for the next 25 years of the WTO, and to provide the political support needed to make progress in the discussions on WTO reforms among all WTO Members. This initiative has been explicitly recognised by G20 Leaders at the Riyadh Summit on 21-22 November 2020.

4.130. We also appreciate the Kingdom's active participation in supporting the discussion on new and emerging issues in the WTO and her contribution in the Joint Statement Initiatives on E-Commerce, Investment Facilitation for Development, Domestic Regulation in Services, and the informal programme on micro, small and medium-sized enterprises (MSMEs).

4.131. For this current review, Malaysia had submitted written questions on areas such as sanitary and phytosanitary requirements, government procurement and investment. In general, Malaysia looks forward to obtain further clarifications in terms of the rules and procedures governing the technical standards and SPS requirements especially for agriculture and food products.

4.132. We would like to thank the Kingdom for the responses, and we will examine the responses with great interest. We wish the Kingdom's delegation a productive and successful TPR.

PHILIPPINES

4.133. The Philippine delegation warmly welcomes and congratulates the delegation of the Kingdom of Saudi Arabia led by Governor Abdulrahman Alharbi of the Saudi General Authority for Foreign Trade, and Ambassador Saqer Abdullah Almoqbel of the Permanent Mission of Saudi Arabia to the

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WTO on their third Trade Policy Review. We also thank Ambassador Zhanar Aitzhanova of Kazakhstan for her insightful comments as discussant, and the WTO Secretariat for its comprehensive report.

4.134. The Philippines has a longstanding bilateral relationship with the Kingdom of Saudi Arabia which was formally established in October 1969. The Philippines and the KSA have signed a number of agreements since 1980, mostly under the auspices of the Joint Commission Meetings which was established under the 1994 General Framework Agreement on Economic, Trade, Commercial, Investment and Technical Cooperation. We also signed a Bilateral Investment Treaty in October 1994 which entered into force in November 1996.

4.135. Saudi Arabia is the Philippines' second largest trading partner in the Gulf Cooperation Council and the 19th largest trading partner in the world. In 2019, total bilateral trade between our two countries amounted to USD 1.20 billion, making it the Philippines' 17th import supplier and 30th export market.

4.136. Philippine exports to KSA grew by 59% from USD 84.15 million in 2018 to USD 134.10 million in 2019 mainly due to the rise in the sales and outward shipment of bananas, pineapples, and parts of aeroplanes or helicopters from the Philippines. Meanwhile, Philippine imports from KSA declined by 43.60% from USD 1.88 billion in 2018 to USD 1.06 billion in 2019 mainly due to the decline in the inward shipment of petroleum oils and oils obtained from bituminous minerals from KSA.

4.137. The Philippines notes the heavy dependence of Saudi Arabia's economy on the oil sector. However, during the review period, we acknowledge the wide range of cross-cutting and sector-specific policy initiatives introduced by Saudi Arabia to modernize and diversify its economy. We recognize the launch of KSA's "Vision 2030" in 2016 which encompasses a wide range of policies to increase investments in non-oil sectors and promote non-oil exports, create more private-sector jobs for Saudi nationals, increase the participation of women in the workforce, support small- and medium-sized enterprises, privatize state-owned assets and government services, deregulate the energy market and reform energy and water prices, and improve the business environment to attract foreign and local investments.

4.138. The Philippines also notes the significant change in Saudi Arabia's institutional framework for trade policy formulation and implementation through the establishment of the General Authority for Foreign Trade (GAFT) in January 2019. As a separate public entity responsible for all trade policy matters, we note GAFT's lead role in KSA's international trade negotiations, including WTO-related matters.

4.139. We commend Saudi Arabia's strong support to the multilateral trading system as demonstrated in the extensive commitments it has undertaken upon its accession to the WTO in 2005. We also took note of Saudi Arabia's negotiating interests in the WTO, including its support to the Joint Ministerial Statements on electronic commerce, investment facilitation for development, domestic regulation in services, and MSMEs.

4.140. The Philippines recognizes the significant developments in Saudi Arabia's economic policies, and we look forward to learning more about these policies through this trade policy review process. Our delegation has submitted some advance written questions on the TPR reports and we thank the delegation of the Saudi Arabia in advance for their prompt replies.

4.141. In closing, the Philippines looks forward to further enhancing the mutually beneficial economic relations with the Kingdom of Saudi Arabia in the bilateral, regional, and multilateral fora.

RUSSIAN FEDERATION

4.142. I would like to extend a warm welcome to the delegation of Saudi Arabia. We appreciate the comprehensive reports by the Government the Kingdom of Saudi Arabia and the WTO Secretariat. Our thanks also go to the discussant, H.E. Mrs. Zhanar Aitzhanova, for her thoughtful remarks. We hope that this TPR will contribute significantly to the transparency of the trade regime of Saudi Arabia.

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4.143. First of all, allow me to wish best of luck to the Government of Saudi Arabia in overcoming the adverse effects of the COVID-19 pandemic. Saudi economy has been hit especially hard by the fluctuating oil prices and plummeting demand. In this regard, I would like to commend the efforts of Riyadh on implementing "Vision 2030", a comprehensive strategy designed to modernize and diversify the Saudi economy with a strong focus on promotion of international trade. Specific results are already visible in terms of simplification of customs procedures, elimination of certain trade and investment restrictions, introduction of new policy instruments. This is an important contribution to the Kingdom's general openness to international trade and foreign investment.

4.144. Saudi Arabia has been Russia's long-time trading partner. Over the years, our countries have been developing economic cooperation in a number of areas. The total trade turnover amounted in 2019 to USD 1,7 billion, growing by 58% compared to the previous year. Currently a roadmap of bilateral engagement on trade and economic issues is being discussed, with a multitude of joint projects envisioned. We highly appreciate the collaboration with the Kingdom in terms of maintaining the stability of international oil market.

4.145. Russia welcomes Saudi Arabia's continued commitment to the multilateral trading system, active participation in the WTO negotiations and joint statements initiatives, its overall commendable notification record. We appreciate the efforts of Saudi Arabia during its G20 presidency on promoting international trade agenda and building political momentum on key WTO issues.

4.146. Russia has submitted a number of written questions related to issues of agriculture, competition rules, investment, financial services and intellectual property rights. We look forward to receiving comprehensive replies.

4.147. In conclusion, we would like to thank you, Mr. Chairman, the delegation of Saudi Arabia, the Secretariat and the discussant, for the impressive work done so far and wish the Kingdom a successful Trade Policy Review.

UNITED KINGDOM

4.148. On behalf of Her Majesty's Government, I am pleased to add my welcome to the delegation of Saudi Arabia, led by His Excellency Governor Abdulrahman Alharbi. I would also like to join other delegations in expressing appreciation for the work of the Secretariat in the preparation of their report for this Trade Policy Review, and to her Excellency Ambassador Aitzhanova, for her remarks as discussant.

4.149. We were particularly encouraged by a number of positive developments since the previous review, highlighted in the reports from the Secretariat and Saudi Arabia. These include the opening of various sectors, including the intention to launch the Open Banking Framework, facilitating trade through the modernisation of customs procedures, especially during the COVID-19 pandemic, and the removal of restrictions on many sectors to encourage foreign investment.

4.150. We welcome the establishment, in 2017, of the Saudi Authority for Intellectual Property and look forward to working closely with Saudi Arabia to understand new changes, due to the closure of the GCC Patent Office, to protect intellectual property rights and entrepreneurship. A number of the advance written questions we submitted related to the IP regime, and we appreciate the replies provided by Saudi Arabia on these and our other questions.

4.151. It is encouraging to see Saudi Arabia advancing in the business environment rankings. We would like to congratulate Saudi Arabia for its commitment to opening up sectors to foreign investment. We welcome the opportunity to work more closely, to remove further restrictions on the level for foreign ownership in other key sectors such as Financial and Professional Business services, to bolster Saudi Arabia's Vision 20230 diversification efforts.

4.152. The United Kingdom strongly supports the Government Procurement Agreement, which ensures open, fair and transparent conditions of competition as well as value for money on public procurement. We hope that Saudi Arabia will consider initiating negotiations to join the GPA soon.

4.153. We would like to congratulate Saudi Arabia on successfully hosting the G20 Presidency last year, despite the complications and disruptions resulting from the pandemic. We note in particular

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- 28 - their work to protect and promote free trade, including through the Riyadh Initiative and coordinating the March 2020 G20 Trade Ministers statement, which called for any emergency measures designed to tackle COVID-19 to be targeted, proportionate, transparent, and temporary, and avoid creating unnecessary barriers to trade or disruption to global supply chains. We look forward to further cooperation on our shared objective of strengthening the multilateral trading system.

4.154. We appreciate Saudi Arabia's active participation in this WTO Review and wish them all the best.

INDONESIA

4.155. We would like to extend a warm welcome to the Governor of General Authority for Foreign Trade, H.E. Abdulrahman Alharbi, H.E. Ambassador Saqer Abdullah Almoqbel and his delegation for the third Trade Policy Review of the Kingdom of Saudi Arabia. We thank Saudi Arabia for the comprehensive Government report and Statement. We also thank the TPRB Chair, Ambassador Harald Aspelund, the Secretariat, and the discussant, Ambassador Zhanar Aitzhanova of Kazakhstan, for their insightful perspectives and comments.

4.156. Indonesia is pleased to note that Saudi Arabia has performed significant efforts in an attempt to modernize and diversify its economy through a comprehensive strategy called "Vision 2030". This strategy was launched primarily to tackle structural challenges, including the volatility of the oil market since the last review period.

4.157. We observe that Saudi Arabia's GDP grew 1.6 percent on average during 2015-19. Nevertheless, the COVID-19 pandemic has affected the world's demand for oil, resulting in a significant decrease on Saudi Arabia's revenues in 2020. Consequently, Saudi Arabia's GDP fell from 0.3% in 2019 to minus 5.4% in 2020.

4.158. In terms of international fora, Indonesia welcomes that Saudi Arabia has made an improvement in commitments by ratifying the Trade Facilitation Agreement (TFA) in 2016, its active participation in several Joint Ministerial Statement Initiatives, and its keenness to discuss the future of the WTO. Furthermore, during Saudi Arabia's G20 presidency, two extraordinary meetings were held to address the challenges posed by the COVID-19 pandemic.

4.159. Over the last few years, we note that trade balance between Indonesia and Saudi Arabia have fluctuated with the trend of total trade in goods rose by 0.56 percent from 2016-20. COVID-19 has significantly brought adverse impact to our trade balance, with the record of the total trade of USD 3.9 billion in 2020, fall from USD 5 billion in 2019 or decrease by 22.07%.

4.160. The decline of the trade balance between the two nations could also be attributed to the measures taken by Saudi Arabia to deal with the unfavorable economic situation as a result of the pandemic. The Saudi Arabian government raised the amount of Value-Added Tax (VAT) and import tariffs on various products such as: food products, chemicals, plastic, rubber, leather, paper, clothes, shoes, marble, ceramics, furniture and machinery. Indonesia appreciates if the Government of the Kingdom of Saudi Arabia could provide a detailed explanation about the measures, including the time frame of the imposition of measures in question.

4.161. Indonesia understands the concern of some nations eschew importing certain products to prevent virus transmission. However, there are also considerations for flexibility or exceptions during the pandemic, so that export and import activities will resume. In this case, Indonesia found that through a new provision, the Saudi Food and Drug Authority (SFDA) requests list of regulations regarding imported products (in English) that applies in the origin countries as additional requirement to conduct on-site audit. Indonesia seeks clarification on it and welcomes alternative on-site review.

4.162. As an Islamic country, Indonesia acknowledges the importance of having strict marking and labelling requirements, especially for imports of meat and poultry meat, as currently imposed by the Saudi Arabian government. Indonesia has an interest in expanding its export products in Saudi Arabia and, therefore look forward to further details on the requirements to obtain halal accreditation from the Saudi Halal Centre.

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4.163. Indonesia has submitted written questions related to these concerns and is waiting for the responses provided. We are going to take a careful look at them and will accordingly follow-up if necessary.

4.164. To conclude, Indonesia will continue to strengthen its cooperation with Saudi Arabia on the multilateral, regional and bilateral fronts, especially through the Comprehensive Economic Partnership Agreement between Indonesia with Gulf Countries Cooperation. We wish Saudi Arabia every success for this TPR and wish everyone for staying healthy.

EUROPEAN UNION

4.165. I would first like to welcome the delegation of the Kingdom of Saudi Arabia, led by H.E. Mr. Abdulrahman Alharbi (Governor of the Saudi General Authority of Foreign Trade). I would also like to thank the WTO Secretariat and the delegation of Saudi Arabia for their reports, which form the basis for our discussion today and the discussant, H.E. Mrs. Zhanar Aitzhanova (Ambassador of Kazakhstan) for her remarks.

4.166. Trading has a very long and illustrious history on the Arabian Peninsula. Frankincense and myrrh, highly prized in antiquity as fragrances, could only be obtained from trees growing in southern Arabia, and parts of Africa. Arab merchants brought these goods to Roman markets by camel caravans along the Incense Route.

4.167. The Kingdom of Saudi Arabia remained actively engaged in preserving the openness and the transparency of world trade during the economic and health crisis of the last years. The EU would like to underline the particular role and contribution provided by the Kingdom of Saudi Arabia during its G20 chairmanship, notably its proactive stance with regard to the WTO reform. The EU welcomed the "Riyadh initiative on the future of the WTO", which started a political dialogue to generate common views on the WTO reform. The EU counts on the ongoing commitment of the Kingdom of Saudi Arabia to the urgent task of WTO reform.

4.168. Since 2016, the Kingdom of Saudi Arabia is also pursuing an upgraded, internal economic modernisation agenda, embodied by the "Vision 2030" Programme, an ambitious roadmap for economic diversification and further economic development. The country has also taken important steps to improve the investment climate and to facilitate business cooperation.

4.169. The COVID-19 pandemic had deep worldwide repercussions on the economic landscape, including in the Kingdom of Saudi Arabia. The drop of oil prices and travel restrictions hit heavily the plans to diversify the economy, to launch wide scale projects and to attract tourism. GDP declined by 5.4 in 2020. Despite the Covid-19 pandemic, the IMF predicts that the economy of the Kingdom of Saudi Arabia will grow at 3% in 2021.

4.170. However, the EU notes also that, according to IMF data, the Saudi economy remains dependent on exports of crude oil products; and the petroleum sector accounted for two thirds of government revenue before the COVID-19 crises. Diversification away from fossil fuels is necessary in light of the global policy changes to pursue environmental and climate-friendly economic development.

4.171. Open trade and investment policy would contribute to achieve transformational goals the fastest. Therefore, the EU would encourage the Kingdom of Saudi Arabia to consider further policy initiatives for enhancing the transparency of its regulatory environment and further opening up to investment. Such measures would further support economic growth and employment and steer its economy towards a more sustainable trajectory, and foster the Kingdom's attractiveness as a destination for EU foreign investment.

4.172. As regards the EU's bilateral relationship with the Kingdom of Saudi Arabia, trade, investment and economic dialogue form an important part of the bilateral agenda. The EU is Saudi Arabia's second trading partner, with 15.2 % of Saudi Arabia's global trade (the EU is first in terms of imports and second in terms of exports), while Saudi Arabia is the EU's 14th largest partner for trade in goods. Moreover, the EU is Saudi Arabia's largest foreign investor. While the negotiations for an EU-GCC FTA were suspended in 2008, the EU remains open to engage in a dialogue on how

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- 30 - to bring the trade partnership forward in order to provide for enhanced trade and investment cooperation.

4.173. In the WTO, the EU works with the Kingdom of Saudi Arabia on the Joint Statement Initiatives on e-commerce, investment facilitation for development, domestic regulation in services, and micro, small, and medium-sized enterprises, which constitute an important and forward-looking agenda for the international trade and this organisation.

4.174. While the EU acknowledges that the Kingdom of Saudi Arabia has undertaken important initiatives to facilitate trade and foreign investment, it is the EU's view that further efforts would be necessary, to enhance the transparency of the import procedures, in particular with reference to standards and technical regulations. Moreover, the EU would also see a need for a review of the requirements for investment and running businesses in Saudi Arabia, with the view to open more activities to foreign owned companies and to provide more tools to enhance the transparency over the established entities and to assist international companies in finding the appropriate partner for doing business.

4.175. On behalf of the EU, I wish the Kingdom of Saudi Arabia a very productive and successful Review.

REPUBLIC OF KOREA

4.176. I would like to extend a warm welcome to the delegates in Geneva as well as in Riyadh for the third Trade Policy Review of the Kingdom of Saudi Arabia (KSA). I would like to especially thank the Governor of General Authority for Foreign Trade, H.E. Abdulrahman Alharbi, for his comprehensive presentation.

4.177. My special appreciation also goes to Ambassador Zhanar Aitzhanova (Kazakhstan) for her contribution as a discussant and to the Secretariat for its informative report.

4.178. Also, I would like to thank Ambassador Saqer Abdulla Almoqbel, Permanent Representative of the Kingdom of Saudi Arabia to the WTO, and his team for their hard work.

4.179. Korea takes note that Saudi Arabia's economy continues to be heavily dependent on oil and shows certain structural weaknesses including the high unemployment rate among Saudi nationals.

4.180. Since oil markets have been volatile during the review years, the current account balance has significantly fluctuated and the real GDP average growth during 2015-19 was 1.6% with non-oil sectors outpacing the growth of the oil sector.

4.181. Korea also notes that Saudi Arabia has made efforts to modernize and diversify its economy, in particular Vision 2030 launched in 2016. Progress in Vision 2030 includes declining fiscal deficit, improved business climate, and changes in government structure.

4.182. Saudi Arabia is a strong supporter of the multilateral trading system and the WTO. The Kingdom's economic transformation is characterized by its openness to international trade and foreign investment. However, the emphasis on localization might raise questions about the potential trade-distorting effects involved.

4.183. My delegation would like to congratulate Saudi Arabia on successfully hosting the G20 summit. We look forward to strengthening our cooperation as members of G20.

4.184. Turning to the bilateral side, Saudi Arabia was Korea's fourth largest import partner in 2019. As the largest petroleum supplier to Korea, Saudi Arabia has played an important role in Korea's economic growth. Korea has also contributed to the economic development of Saudi Arabia by participating in building infrastructure such as highways, harbors, and plants.

4.185. Although bilateral trade decreased in 2019 due to the decline in oil prices, I believe that both countries will continue to build a comprehensive economic partnership based on the close economic relations developed so far.

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4.186. Taking this opportunity, I would like to reiterate some points to which we look forward to receiving Saudi Arabia's productive and positive response.

4.187. First, it appears that Saudi Arabia has maintained a number of local content requirements (LCRs) under Vision 2030 to boost its domestic industries across sectors. I would like to ask Saudi Arabia to provide more information on its LCR measures in detail and to share its position on the WTO consistency of such measures.

4.188. Second, in spite of the written principles for investment, there have been a lack of effective incentives (e.g. tax benefits) and strengthened restrictions and duties (e.g. Saudization). It would be appreciated if Saudi Arabia could provide a clear explanation on the principles, especially regarding incentives for investors.

4.189. Third, foreign investors pay a corporate income tax of 20% on profits. The ratio is quite high compared to KSA and GCC companies which pay Zakat at a rate of 2.5%. Would there be any possibility of adjusting the ratio of corporate income tax for foreign investors to attract more FDI?

4.190. Fourth, in the engineering sector, companies are required to hire more than 20% of Saudi Arabian citizens among the total workforce. However, it is very difficult to hire competent engineers with reasonable salaries. Does the government have any plans to cultivate more engineering personnel?

4.191. With regard to these and other matters, my delegation has submitted, albeit somewhat late, our written questions. We look forward to receiving a response in due course.

4.192. I would like to once again highlight Saudi Arabia's efforts to contribute to a more open, transparent, and efficient overall trading environment.

4.193. Let me conclude by expressing my sincere appreciation once more to the delegation of the Kingdom of Saudi Arabia for its hard work and wishing the delegation a successful TPR.

ICELAND

4.194. Iceland welcomes the distinguished delegation of the Kingdom of Saudi Arabia and H.E. Mr. Abdulrahman Alharbi to this Trade Policy Review and would like to express appreciation the WTO Secretariat, as well as to Saudi Arabia for the reports prepared, as well as to the discussant, for her excellent framing of the issues for the discussion.

4.195. Saudi Arabia's economy is heavily dependent on foreign trade of mineral products. During the review period Saudi Arabia has initiated a wide range of cross-cutting and sector-specific policy initiatives aimed at modernizing and diversifying the economy.

4.196. Specifically, the Vision 2030 initiative encompasses policies to create jobs and to increase the participation of women in the workforce as well as support small- and medium-sized enterprises and increase investment in non-oil sectors and promote non-oil exports.

4.197. Iceland welcomes all initiatives to increase women's participation in trade and we take note of the positive developments. We encourage the Saudi Authorities to continue on that path towards full gender equality in a good cooperation with defenders of equal rights.

4.198. As the impact of the COVID-19 pandemic are still unfolding, new challenges arise related to trade and trade-related activities. It is now widely recognised that women are likely to be harder hit than men by trade disruptions caused by the pandemic.

4.199. In September 2020, a group of WTO Members agreed to establish an Informal Working Group on Trade and Gender, marking the next phase of the Buenos Aires initiative kickstarted in 2017 to increase the participation of women in trade.

4.200. The trade policy review provides an excellent opportunity to share best practices of respective experiences relating to policies and programs to encourage women's participation in national and international trade and thus promoting sustainable socioeconomic development.

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4.201. Iceland submitted advance written questions on the participation of women in the economy of Saudi Arabia. The answers will be useful as we gather best practices.

4.202. Iceland appreciates Saudi Arabia's active engagement in WTO and their continued support for the multilateral trading system. We wish the delegation of Saudi Arabia every success for their trade policy review.

TURKEY

4.203. We would like to join previous speakers in extending a warm welcome to the delegation of Saudi Arabia, headed by Mr. Abdulrahman Alharbi, Governor of General Authority for Foreign Trade.

4.204. We took note of his introductory remarks and we thank the delegation of Saudi Arabia for their report. We would also like to thank the Secretariat for its comprehensive report as well as our discussant Ambassador Zhanar Aitzhanova of Kazakhstan for her substantial contribution to the review.

4.205. As the world's second-largest crude oil producer in 2019 and the world's largest crude oil exporter, Saudi Arabia's economy continues to be heavily dependent on oil. The review period witnessed a wide range of initiatives aimed at diversifying the economy. The launch of "Vision 2030" in 2016 is a step in that direction. Continuing such initiatives to improve the competitiveness of the non-oil sector is important not only for the risks arising from the volatility of oil markets, but also for addressing the structural weaknesses.

4.206. As you know, Trade Policy Review is an important pillar of this Organization. Members are expected to be monitored in terms of conformity of their policies and practices with the rules they adhered to. In this respect, we believe that trade policies of Saudi Arabia during this review period, aiming to restrict the entry of Turkish goods and services, deserve our close attention. I will outline this issue in my statement.

4.207. Turkey and Saudi Arabia have been important trade partners for many years, reaching a bilateral trade volume exceeding USD 6 billion in 2019. However, trade ties between two countries have recently been disrupted by the trade restrictive policies of Saudi Arabia against the imports from Turkey.

4.208. Especially starting in the second half of the year 2020, imports from Turkey have systematically been subject to discriminatory and arbitrary practices with unreasonably long delays at the Saudi customs and unnecessarily burdensome product safety inspections.

4.209. Due to the long delays at the customs, hundreds of containers of fresh fruits and vegetables have been perished, resulting in high additional costs related to these long delays.

4.210. These practices have also been extended to husbandry and poultry products and Saudi Arabia restricted imports from Turkey on the ground of SPS measures which has no scientific basis.

4.211. In addition to this, in Saudi customs, Turkish products have been inspected in accordance with the conformity assessment procedures applied for different kind of products. Additionally, some Turkish products are rejected at customs due to problems related to labelling, despite bearing the exact same labelling as before.

4.212. These developments are taking place despite the discourse in the Government report, claiming that Saudi customs facilitated and automated procedures to be ranked the first in the region for providing distinguished custom services.

4.213. These practices took a new turn when Turkish exporters in many sectors have been informed by the Saudi importers to suspend or cancel their already contracted shipments as the importation of Turkish products into Saudi Arabia are not permitted anymore. In addition, Turkish exporters have been informed on different occasions that Saudi companies are being forced to sign "letter of commitment" not to import from Turkey as part of pressures by Saudi authorities. Very recently, last week, Chairman of the Council of Saudi Chambers has publicly made another call for continuation

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- 33 - of the boycott on Turkish goods. We will be pleased to receive the explanation of Saudi Arabian authorities.

4.214. As a result of these prohibitive policies, Turkey's exports to Saudi Arabia decreased 30% in the second half of the 2020, while the drop in exports reached 93% in January 2021 compared to the same month of previous year. Due to the de facto "import ban", the reasons of which are incomprehensible, our bilateral trade has not been conducted in its normal flow.

4.215. We would like to emphasize that the import prohibitive policies of Saudi Arabia are not only harmful to bilateral trade, but also have disruptive effects on global value chains and these practices have systemic impact on the overall world trade. Needless to say, this is totally contradictory to the advocacy of Saudi Arabia for multilateralism in this organization and during its recent G20 presidency.

4.216. We raised this issue as an agenda item at the CTG meeting and have been raising our concerns under different Committees, but unfortunately no progress has been made so far. We sent our questions with regard to these disguised practices of Saudi Arabia and are looking to have the answers.

4.217. These restrictive policies and practices of Saudi Arabia against Turkish goods and services are clear violation of the relevant provisions of WTO Agreements and also contradicts the objectives that Saudi Arabia refers in its Government report.

4.218. Turkey urges Saudi Arabia to abide by its WTO commitments and to bring its policies and practices concerning Turkey in line with its WTO obligations for ensuring smooth flow of bilateral trade. As always, Turkey stands ready to engage bilaterally with Saudi Arabia for addressing all trade-related matters and promoting fair and balanced bilateral trade relations.

EGYPT ON BEHALF OF THE ARAB GROUP

4.219. I deliver this statement on behalf of the Arab Group, extending a very warm welcome to His Excellency Mr. Abdulrahman Al-Harbi, Governor of the General Authority for Foreign Trade of the Kingdom of Saudi Arabia and the esteemed delegation from Riyadh and in Geneva.

4.220. We thank both the Government of Saudi Arabia and the Secretariat for their comprehensive reports, as well as Her Excellency Amb. Zhanar Aitzhanova (of Kazakhstan) for her insightful comments as discussant.

4.221. The Arab Group welcomes Saudi Arabia's "Vision 2030" strategy and its overarching objectives towards modernizing and diversifying the economy, with a focus on increasing competitiveness and participation of women, as well as creating more private sector-led jobs.

4.222. To that end, Saudi Arabia adopted several new policy instruments, including cross cutting and sector-specific initiatives, most notably the National Strategy for Special Economic Zones, the National Industrial Development Program, and several mega-projects and investments, including NEOM City.

4.223. It is very promising to see that since the launch of Vision 2030 in 2016, non-oil sectors outpaced growth of the oil sector. We hope that the current global crisis stemming from the COVID-19 pandemic would not hinder the implementation of this strategy and its envisioned deliverables.

4.224. The World Bank's Ease of Doing Business 2020 Index shows that Saudi Arabia; climbed 30 positions since 2019 to reach the 62nd spot out of 190 economies, becoming the most improved country for doing business.

4.225. Much of this success owes to a wide range of reforms and institutional restructuring, aimed at improving the business climate and attracting more local and foreign investments. The Secretariat's report enlists several policies adopted in this regard, such as eliminating foreign investment restrictions, streamlining license requirements, reducing negative lists and improving access to credit, as well as implementing several trade facilitation measures.

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4.226. The Arab Group commends Saudi Arabia's leading role during its Presidency of G20 in 2020, particularly with regards to addressing the global challenges posed by the pandemic, both on the immediate term and the longer-term towards global economic recovery, where the WTO has a central role to play.

4.227. The "Riyadh Initiative" is another resourceful contribution by Saudi Arabia's G20 Presidency, seeking to resolve key areas of divergence between WTO Members on some important issues.

4.228. Saudi Arabia's nomination of its former Minister of Economy Mr. Mohammed Al-Tuwaijri for the post of Director-General is yet another testament of its strong commitment to the Multilateral Trading System. The Secretariat report seconds this commitment by highlighting Saudi Arabia's decent record in submitting notifications to the WTO, and its ratification of the Trade Facilitation Agreement in 2016.

4.229. In addition to its firm support of a rule-based Multilateral Trading System, Saudi Arabia has been actively negotiating some bilateral and regional trade agreements, in view of their contribution to free and open trade.

4.230. We praise H. E. Ambassador Saqer Abdullah Almoqbel and his esteemed team of experts for their active role in WTO discussions, as well as in coordinating the positions of the Arab Group.

4.231. Finally, the Arab Group and wishes the Kingdom of Saudi Arabia a very successful and fruitful Trade Policy Review.

EGYPT

4.232. Turning to the Statement in my national capacity, and in view of the time constraints of my intervention, I shall focus on the bilateral sphere. Needless to say, Egypt and Saudi Arabia share exceptional historic relations, including on commercial and economic fronts.

4.233. With regards to trade, Egypt and Saudi Arabia have been members of the Great Arab Free Trade Area (GAFTA) since its establishment in 1998, which contributed to the steady growth of trade between the two countries.

4.234. The volume of bilateral trade in 2019 reached USD 8 billion, and exceeded USD 5 billion in the first five months of 2020, recording a 57% increase in Egypt's non-petroleum exports to Saudi Arabia compared to the corresponding period of 2019. The diversified structure of such exports, including electronic appliances, fruits, vegetables, dairy products, iron and steel, makes Saudi Arabia one of Egypt's significant export destinations.

4.235. Saudi Arabia is Egypt's second largest investor, with more than 6 thousand companies and a capital contribution surpassing USD 6 billion, concentrated in manufacturing, construction and tourism sectors.

4.236. We look forward to continue enhancing our economic relations to a level that would further reflect the profoundness of our exceptional ties.

4.237. In conclusion, it gives us great pleasure to take part in the third Trade Policy Review of the Kingdom of Saudi Arabia, and we wish the esteemed Saudi delegation a successful and fruitful Review.

COSTA RICA

4.238. Allow me first of all to echo the words of welcome to the delegation of the Kingdom of Saudi Arabia led by H.E. Mr Abdulrahman Alharbi and to thank him for the report submitted this morning, as well as thanking the discussant, distinguished Ambassador Aitzhanova of Kazakhstan, and the Secretariat for its report.

4.239. If it was necessary to label the period since Saudi Arabia's last WTO Trade Policy Review, it could be described as a period of ongoing reform at all levels. Indeed, it is impressive to note the efforts made during these years by the Saudi authorities to modernize the country's economy,

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- 35 - diversify its production and export matrix, open sectors for foreign direct investment and reduce its dependence on oil, through the Vision 2030 strategy.

4.240. In terms of competitiveness and ease of doing business, the reform undertaken has been very successful, achieving an impressive improvement in the country's ranking in the World Bank's Ease of Doing Business 2020 Index. In the area of trade facilitation, the improvement of customs procedures should be noted, with the creation of a national single window, data exchange systems and a new risk management system. In services, we note with interest the reforms aimed at increasing participation in this sector and moving towards a knowledge-based economy. Tourism is also a prominent sector which, because of its potential, is likely to become increasingly important in the Saudi economy. In addition, we encourage Saudi Arabia to continue its efforts to promote greater empowerment of women and increase their participation in the foreign trade sector and in the Saudi economy.

4.241. We welcome Saudi Arabia's leadership in the G20 and its commitment to the reform of the WTO multilateral trading system through the Riyadh Initiative on the Future of the WTO. Saudi Arabia is an active participant in the ongoing negotiations at the WTO and it also forms part of the four Joint Initiatives on e-commerce, investment facilitation for development, micro, small and medium-sized enterprises (MSMEs), and domestic regulation in services. As the coordinator of the last of these initiatives, I would like to thank Saudi Arabia for its commitment and active participation in the discussion on disciplines relating to domestic regulation and trust that it will soon be able to complete its domestic procedures for the submission of its indicative list of commitments. In addition, I would like to take this opportunity to invite Saudi Arabia to join the initiative on trade and environmental sustainability, which is holding its first meeting this Friday, 5 March.

4.242. With these words I conclude my statement and wish the Kingdom of Saudi Arabia a fruitful Trade Policy Review.

MAURITIUS

4.243. We warmly welcome the high level of delegation from Saudi Arabia led by H.E. Mr Abdulrahman Alharbi, Governor of the Saudi General Authority of Foreign Trade and congratulate Saudi Arabia for pursuing its third policy review despite the challenges of the Pandemic.

4.244. We also thank the Secretariat for its report and the discussant, Ambassador Zhanar Aitzhanova of Kazakhstan for the insights provided about the country and its trade policy.

4.245. We would like to congratulate Saudi Arabia for the continued reform of its economy, economic diversification and modernisation.

4.246. Five years after the launch of Vision 2030, we can witness the effectiveness of this strategy. The simplification of customs procedures, the removal of foreign investment restrictions and the development of new policy instruments to promote exports suggest an open approach to international trade and foreign investments and this will no doubt further accelerate the transformation of the Kingdom.

4.247. The fiscal deficit pre-COVID 19 had already dropped from 15.8% in 2015 to 4.5% in 2019, reflecting the progress in diversifying and stabilising Government revenues. Not surprisingly, in the World Bank Doing Business 2020 report, Saudi Arabia climbed up 30 places making it the top reformer and improver among the 190 countries on the Index.

4.248. Allow me, in particular, to salute the significant progress made by Saudi Arabia, on Women's economic Inclusion and Empowerment. We note Saudi Arabia's leading ranking for the second year in a row, in the World Bank's Women, Business and the Law 2021 report. We believe this is a fundamental step in ensuring a participative approach to nation building and congratulate Saudi Arabia for its determination to ensure that women enjoy full rights.

4.249. We also commend the country for demonstrating its commitment to the multilateral trading system. During its G20 Presidency, we saw the holding of two extraordinary G20 Trade and Investment Ministerial meetings which had the merit of addressing early the COVID-19 challenges.

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4.250. The Riyadh initiative on the Future of the WTO has also underscored Saudi Arabia's continued concern about and reflection on the multilateral trading system aimed at carving out political convergence on the reform of the WTO.

4.251. Saudi Arabia's commitment to the multilateral trading system was also reflected in the excellent candidature it presented for the post of Director-General of the WTO.

4.252. As Saudi Arabia pursues its path to economic diversification and consolidation through multiple initiatives whether digital transformation; the futuristic city NEOM project; the enacting of a new competition law; the de

4.253. Development of its service sectors and a unified institutional framework on intellectual property, we believe that the lifting of export bans on some products and most recently health related products would be in line with the openness that Saudi Arabia has displayed to international trade.

4.254. At a bilateral level, Mauritius and Saudi Arabia share excellent relations and the country has often assisted us with projects. Whenever we have needed support, Saudi Arabia has responded positively. I give two concrete examples: the first is the oil spill from MV Wakashio. The second is Saudi Arabia's support for the establishment of a Cancer Hospital and a Teaching Hospital. I am also told that we have a group of medical experts on the way to assist us.

4.255. Mauritius remains highly appreciative of such contributions and look forward to strengthening these relations further both bilaterally and at the level of the African Continental free Trade Area.

4.256. With the coming into force of the AfCFTA earlier this year, we feel that a lot of opportunities will open up for Saudi Arabia to develop its trade ties with Africa.

4.257. Mauritius looks forward to working with Saudi Arabia in this direction.

4.258. We seize this opportunity to wish Saudi Arabia a very successful Trade Policy Review.

BAHRAIN ON BEHALF OF THE GULF COOPERATION COUNCIL

4.259. I deliver this statement on behalf of the States of the Gulf Cooperation Council (GCC).

4.260. We are delighted to participate in the third Trade Policy Review of the Kingdom of Saudi Arabia, and would like to warmly welcome H.E. Mr. Abdulrahman Alharbi, Governor of the General Authority for Foreign Trade.

4.261. We are delighted to see all the positive transformations and economic growth mentioned in the report. This, of course, comes after Saudi Arabia has gone through significant changes during the period under review.

4.262. As members of the GCC we share several common aspects of our trade policy, such as a common external tariff, a shared trade remedies authority, and share two free trade agreements with other trading partners.

4.263. Therefore, we are pleased that report shows that, under its Vision 2030 initiative, Saudi Arabia has implemented a number of structural reforms such as the creation of the General Authority for Foreign Trade, the Ministry of Investment, and the General Authority for intellectual property which have all aim to maximize the Kingdom's contribution to international trade in order to strengthen the national economy.

4.264. Looking forward, we view great interest and opportunity in investment in Saudi Arabia and its potential for attracting Foreign Direct Investment to our region. As the report shows, it has made significant progress in fostering its investment climate, including as part of its broader reform agenda, as over the past years, Saudi Arabia opened up new sectors to foreign investment; implemented legal and institutional changes to improve the business climate and facilitate investment.

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4.265. I cannot conclude this statement without highlighting Saudi Arabia's role as a long standing and strong supporter of the WTO and the multilateral trading system. Despite being a relatively new member to the WTO, they have been active and constructive in various negotiations, and through their leading role within the League of Arab States and the GCC, Saudi Arabia has always worked hard to safeguard the rights of developing countries, not least through their work during their leadership of the G20.

4.266. Finally, we would like to thank the discussant for her remarks and the active discussion and the WTO secretariat for their efforts in preparing the detailed report.

TAJIKISTAN

4.267. Tajikistan is pleased to participate in the third Trade Policy Review of the Kingdom of Saudi Arabia and would like to extend warm greetings to the entire delegation of Kingdom of Saudi Arabia led by H.E. Abdulrahman Alharbi, the Governor of General Authority for Foreign Trade.

4.268. The Kingdom of Saudi Arabia recognized the independence of the Republic of Tajikistan on 11 January 1992 and diplomatic relations between two countries were established on 22 February 1992.

4.269. The Kingdom of Saudi Arabia is the first Arab country that opened its diplomatic mission in Tajikistan in January 2010 as a follow up to the Tajik Embassy inauguration in Saudi Arabia in 2008.

4.270. The President of the Republic of Tajikistan, the Leader of the Nation, H.E. Emomali Rahmon has paid several visits to Saudi Arabia over the years of bilateral relations thus setting up legal framework that regulates bilateral relations between the two countries.

4.271. Bilateral relations between Tajikistan and Saudi Arabia gradually started to have firm foundation for quality improvement. In order to establish cooperation between the public sectors in the economy sphere of Tajikistan and Saudi Arabia, the joint intergovernmental commission of the Republic of Tajikistan and the Kingdom of Saudi Arabia on trade-economic and scientific-technical cooperation began to operate. Tajik and Saudi Arabian entrepreneur's Council is another tool for the development of cooperation between the private sectors of the two countries.

4.272. As the volume of foreign trade turnover between the Republic of Tajikistan and the Kingdom of Saudi Arabia does not meet the existing capabilities of the two countries it is important to make use of available opportunities for the development of trade relations between Tajikistan and the Kingdom of Saudi Arabia.

4.273. The main feature of Tajik-Saudi Arabian partnership is the further expansion of trade relations, implementation of joint socio-economic projects and deepening cooperation in different areas of the economy. The priority areas of cooperation between Tajikistan and the Kingdom of Saudi Arabia include energy, particularly the construction of power lines, mini-hydropower plants, processing of agricultural products, raw cotton, transport and communication infrastructure, banking, taxation, investment, insurance and tourism sectors as well as the science, culture and education.

4.274. We appreciate the efforts of Kingdom of Saudi Arabia and the Secretariat for the reports and the discussant, Ambassador of Kazakhstan H.E. Mrs. Zhanar Aitzhanova for her insights. The reports provide details on the developments in Saudi Arabia's economic and trade policy since its last Review in 2016.

4.275. This third Trade Policy Review of Kingdom of Saudi Arabia provides a great opportunity to understand its trade and investment regime. The Republic of Tajikistan commends Kingdom of Saudi Arabia for the achievements made since last TPR. Real GDP average growth during 2015-19 was 1.6% and the GDP increased from USD 654 billion to USD 793 billion.

4.276. We welcome the efforts of Kingdom of Saudi Arabia to advance the WTO negotiations and its engagement in a number of initiatives at the WTO. Kingdom of Saudi Arabia as a supporter of the multilateral trading system ratified the Trade Facilitation Agreement (TFA) in 2016 and regularly

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- 38 - submits notifications to the WTO. Saudi Arabia was a respondent in two cases and participated as a third party in 49 cases under the WTO dispute settlement mechanism.

4.277. To conclude, the Republic of Tajikistan highly appreciates the hard work and strong commitment and wishes Kingdom of Saudi Arabia a very successful and productive Trade Policy Review.

URUGUAY

4.278. Uruguay would like to extend its warm greetings to the delegation of the Kingdom of Saudi Arabia, led by the Governor of the General Authority for Foreign Trade, H.E. Mr Abdulrahman Alharbi, on the occasion of Saudi Arabia's third Trade Policy Review. We also thank the Permanent Representative of Kazakhstan, Ambassador Zhanar Aitzhanova, for her presentation and the Secretariat for its comprehensive report.

4.279. We note that during the review period the COVID-19 pandemic caused an unprecedented contraction in global demand for oil, and this had a significant impact on public revenue, in addition to the global economic disruption caused by the pandemic. Uruguay wishes to highlight the launch of the Vision 2030 strategy, aimed at creating more jobs in the private sector for Saudi nationals, increasing women's participation in the world of work, supporting small and medium-sized enterprises (SMEs), increasing investment in non-oil sectors and promoting non-oil exports, as well as improving the business environment to attract investment. In this regard, Uruguay encourages Saudi Arabia to continue its efforts of reform towards greater openness so that it can continue to improve its income levels and the quality of life of its population.

4.280. With regard to Saudi Arabia's trade policy, we highlight the Kingdom's recent trade and economic policies, such as the simplification of customs procedures, the existence of generally low import duties, the elimination of restrictions on foreign investment and the introduction of new policy instruments to promote exports that will undoubtedly contribute to the economic transformation of the country.

4.281. We would also like to highlight the fact that Saudi Arabia ratified the Protocol relating to the Trade Facilitation Agreement in 2016 and created a national institutional framework to implement its commitments, while introducing a number of measures that have had a positive impact on the trading environment, including the single window for trade that allows import declarations to be submitted and processed electronically.

4.282. On the bilateral front, our trade in goods amounted to over USD 11 million in 2019, with a favourable trade balance for Saudi Arabia. Sales from our country averaged around USD 4.5 million per year, the main products being plastics, everyday products and wood. Imports from Saudi Arabia averaged USD 7 million annually, consisting mainly of fertilizers and plastics. We look forward to continuing to work together to enhance our bilateral trade relationship.

4.283. Lastly, but no less importantly, we note that Saudi Arabia has set the goal of raising the contribution of SMEs to GDP from 20% to 35%, and to encourage local financial institutions to allocate up to 20% of total funding to SMEs by 2030. In this respect, we commend Saudi Arabia for supporting the package of recommendations recently approved by the Informal Working Group on MSMEs, which will undoubtedly have beneficial effects on business in Saudi Arabia.

4.284. In conclusion, we would like to reiterate our appreciation for these new exchanges on Saudi trade policy, as well as expressing our recognition of the team from the Mission of Saudi Arabia in Geneva, led by Ambassador Saqer Almoqbel, and we wish them a successful conclusion to this Trade Policy Review.

JAMAICA

4.285. Jamaica welcomes the delegation of the Kingdom of Saudi Arabia to this its third Trade Policy Review (TPR). In particular, we thank the delegation for the high quality of its presentation which has been further supplemented by the Secretariat's detailed report. In addition, we wish to thank you Chair, as well as our discussant, Ambassador Aitzhanova of Kazakhstan for your insightful and valuable contributions.

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4.286. Jamaica commends Saudi Arabia for its performance over the review period. The country maintained macro-financial stability and positive economic growth measured 1.6%. This resulted from economic activity in the oil and non-oil sectors, economic and social reforms within the framework of the country's Vision 2030 Strategy, as well as the implementation of several construction and infrastructure projects. Similar to other countries, Saudi Arabia's economy also experienced a slowdown in 2020 due to the COVID-19 pandemic but, positively, has already began to bounce back.

4.287. As the world's largest exporter of petroleum and one of the biggest producers of oil and gas. Saudi Arabia's economy continues to be heavily dependent on oil. We therefore welcome the steps which are being taken by the country to promote economic diversification, improve the competitiveness of its non-oil sector. These efforts should be further strengthened.

4.288. As a member of the G-20, Saudi Arabia is an important contributor to international trade and global value chains. We note positively the focus which has been placed by the country on accelerating the development of its investment sector and strengthening its outreach to target countries.

4.289. Jamaica commends Saudi Arabia for its continued constructive engagement in the work of the WTO, as well as its efforts to fulfil its various WTO obligations.

4.290. Jamaica wishes to further acknowledge the strides made by Saudi Arabia to, among other things, update its customs procedures, reduce existing barriers to trade and to promote trade facilitation. Saudi Arabia has also been working deliberately to strengthen its intellectual property rights system as is evidenced through its recent membership of the Locarno, Vienna and Strasbourg Agreements, as well as the Budapest Treaty, in addition to its establishment of the Saudi Authority for Intellectual Property.

4.291. On the bilateral front, Jamaica and the Kingdom of Saudi Arabia share longstanding ties, which trace back to the establishment of diplomatic relations between our two countries in August 1976. There is also growing interest in strengthening the existing trade and investment exchange at the bilateral level.

4.292. In conclusion, Jamaica appreciates the opportunity provided by this meeting to discuss Saudi Arabia's trade and investment policies and we extend to the delegation our best wishes for a successful Trade Policy Review.

KZRGYZ REPUBLIC

4.293. The Kyrgyz Republic welcomes the delegation of the Kingdom of Saudi Arabia led by Mr. Abdulrahman Alharbi.

4.294. We thank the WTO Secretariat and the Government of the Kingdom of Saudi Arabia for preparing such comprehensive and detailed Trade Policy Review reports. We would also like to thank the discussant, H.E. Mrs. Aitzhanova for her insightful comments.

4.295. Since the beginning of its membership to WTO the Kingdom of Saudi Arabia has demonstrated highest dedication to the WTO rules and as it has been said at the last TPR of 2016 has convincingly shown its commitment to trade liberalization under the multilateral trading system centered on the WTO continuously.

4.296. Among many other successful steps on the WTO platform are acceptance of Trade Facilitation Agreement and Protocol Amending the TRIPS Agreement. The Kingdom of Saudi Arabia is also the observer of plurilateral agreements such as Government Procurement Agreement and Trade in Civil Aircraft.

4.297. Bilateral trade and economic cooperation between the Kyrgyz Republic and the Republic of the Kingdom Saudi Arabia is developing steadily and systematically starting from 1992. The Kyrgyz Republic and the Kingdom Saudi Arabia closely cooperate as bilaterally, as well as multilaterally within the other organizations and initiatives such as the UN, the Islamic bank of the development and the WTO.

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4.298. The cooperation between our States continues on the basis of regular visits at high-level meetings.

4.299. Among the latest visits is the official visit of the President of the Kyrgyz Republic to the Kingdom of Saudi Arabia in 2019, during which a number of documents was signed, which, we hope, will contribute to the further evolving of the relations between the Kyrgyz Republic and Saudi Arabia.

4.300. For a quarter-century of relations between the two States has reached a quality level of development: new areas and forms of cooperation, greatly intensified the exchange of delegations of different levels, expanded legal framework, strengthened dialogue in a multilateral format on global and regional issues. These ties are gradually expanding, covering the political and economic spheres.

4.301. Our countries established an Inter-governmental Saudi-Kyrgyz Committee. Continuing to strengthen and develop the relationship, Kyrgyzstan and Saudi Arabia signed a protocol on cooperation in 2019. The protocol covers trade-related issues, areas of the cooperation as security, energy, healthcare, economic and investment spheres, as well as tourism.

4.302. Our countries have established beneficial mutual trade. The dynamics of trade from 2016 to 2018 demonstrates the positive trend.

4.303. Kyrgyzstan's imports from Saudi Arabia rose by 61.3% for the period between 2016 and 2018.

4.304. The main share of imports from Saudi Arabia is represented by fresh dates, medicines, plastic products (polyethylene), carpets, other blankets and road blankets and other goods.

4.305. Kyrgyzstan's exports to Saudi Arabia increased by 77% for the period 2016 to 2018.

4.306. Exports from Kyrgyzstan to Saudi Arabia today consist of dried fruits, bean, honey, nuts, fruits, vegetables and others.

4.307. In terms of services, it is worth to note that tourism has the potential to increase its share of trade in services.

4.308. The Kyrgyz Republic is interested on further fruitful economic cooperation and deepening trade-economic relations with the Kingdom Saudi Arabia.

4.309. The Kyrgyz Republic wishes a successful third Trade Policy Review to the Kingdom Saudi Arabia.

BOLIVARIAN REPUBLIC OF VENEZUELA

4.310. The delegation of the Bolivarian Republic of Venezuela wishes to extend a warm welcome to the delegation of the Kingdom of Saudi Arabia, headed by the Governor of the General Authority for Foreign Trade, Mr Abdulrahman Alharbi. We thank the discussant, Ambassador of Kazakhstan, Ms Zhanar Aitzhanova, for her context-setting analysis, and the Secretariat for its organization and documentation.

4.311. We would like to open our statement by highlighting the ties of brotherhood and trade cooperation that unite us with the Kingdom of Saudi Arabia. These ties extend to the human and cultural spheres for the building of peace. Since the beginning of the 21st century, we have worked closely with the Kingdom of Saudi Arabia to restore the leadership and cohesion of the Organization of the Petroleum Exporting Countries (OPEC), thereby contributing to the advancement and prosperity of our countries.

4.312. With regard to the report submitted by the WTO Secretariat for the third Trade Policy Review of the Kingdom of Saudi Arabia, which covers the period from 2016 to 2020, we note many positive points that demonstrate the country's commitment to honouring its WTO obligations by applying best practices in all areas of the management of its international trade.

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4.313. We also highlight Saudi Arabia's strategic plan to 2030 for the Kingdom's economic diversification and subsequent development, through which it is set to overcome its structural challenges. The plan is focused on three main themes, namely: "a vibrant society", "a thriving economy" and "an ambitious nation".

4.314. As we wish the Kingdom of Saudi Arabia a successful Trade Policy Review, we would like to close our statement by reaffirming our ties and shared commitment to shaping a strong, fair and predictable multilateral trading system, based on solidarity and on common and transparent rules.

TUNISIA

4.315. Let me begin by welcoming H.E. Mr Abdulrahman Alharbi, Governor of the General Authority for Foreign Trade of Saudi Arabia, and the delegation accompanying him from Riyadh and Geneva. I wish to convey to him our appreciation for the exhaustive presentation on his country's economic situation and trade policy.

4.316. I also extend my congratulations to the Secretariat for its comprehensive report submitted for this Trade Policy Review and to the discussant, H.E. Ms Zhanar Aitzhanova, Ambassador of Kazakhstan, for her insightful comments.

4.317. My delegation wishes to emphasize the considerable efforts made by Saudi Arabia since its previous Trade Policy Review to pursue its policy of economic and trade liberalization by strengthening the process of opening up of its economy, establishing an environment conducive to promoting investment and diversifying trade and economic relations with its partners, including my country.

4.318. Since its last Trade Policy Review, Saudi Arabia has undergone significant changes in the economic, human and social fields. The economy, essentially based on hydrocarbons production, the backbone of the country's industrial production and trade, has diversified by turning towards the services sector, especially the financial services sector. In this respect, Tunisia welcomes the "Vision 2030" development plan launched by the Saudi authorities in 2016, which seeks to modernize and diversify the economy, and places emphasis on youth empowerment and the active participation of women in the business world.

4.319. The wide range of reforms and institutional restructuring highlighted in the Secretariat's report and the strategy of gradually privatizing certain sectors have strengthened Saudi Arabia's regional role and have increased its international partnerships by attracting greater domestic and foreign investment.

4.320. As a result of overhauling its economic policy, Saudi Arabia has successfully stabilized its economic growth indicators, despite the fall in oil prices and the economic crisis affecting the world economy. The country's GDP continued to grow over the majority of the period under review, with the exception of 2020, a year marked by global recession. The measures rightly adopted by the Kingdom to tackle the pandemic affected the economic performance results for 2020, leading to a drop in non-oil production of over 8%, with the tourism sector hit particularly hard.

4.321. The Saudi Government has managed to limit the impact of the pandemic on the economy by implementing numerous stimulus initiatives from the start of the crisis. Such initiatives included tax exemptions and deferrals to reduce the financial and economic impact on the management of its economic activities, in addition to initiatives to support the financial sector and inject liquidity into the economy.

4.322. Tunisia commends the leading role played by Saudi Arabia during its presidency of the G20 in 2020, particularly in addressing the global short- and long-term challenges posed by the pandemic in order to ensure global economic recovery. My country also welcomes the contribution that the Riyadh Initiative on the Future of the WTO has made by providing an additional opportunity to discuss and reaffirm the objectives and foundational principles of the multilateral trading system, as well as to demonstrate the ongoing political support for the necessary reform of the WTO in the lead-up to the Twelfth Ministerial Conference.

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4.323. Tunisia and Saudi Arabia enjoy a close relationship of friendship and cooperation. Trade between our countries, within the framework of the Greater Arab Free Trade Area Agreement, is constantly developing and has increased significantly in recent years. My country attaches great importance to the long-standing relations between our countries.

4.324. Tunisia is benefitting from a significant number of projects carried out by Saudi Arabia in the industrial and tourism sectors. Our two countries are determined to strengthen and consolidate this cooperation in all areas.

4.325. Lastly, I congratulate H.E. Ambassador Saqer Abdullah Almoqbel, Permanent Representative of Saudi Arabia to the WTO, and his team for their active involvement in the work of the WTO and in the round of trade negotiations carried out here in Geneva.

4.326. In this connection, we offer our full support to the efforts of Saudi Arabia and wish it every success in this Trade Policy Review.

PAKISTAN

4.327. Pakistan warmly welcomes the delegation of The Kingdom of Saudi Arabia, led by H.E. Abdulrahman Alharbi, the Governor of General Authority for Foreign Trade, at this Trade Policy Review.

4.328. We would also like to convey our thanks to Her Excellency, Mrs. Zhanar Aitzhanova, Permanent Representative of Kazakhstan, for her insightful comments and analysis as discussant for this Trade Policy Review, and to the Secretariat for their professional work for this Review.

4.329. We would like to commend the Kingdom of Saudi Arabia on its various policies and initiatives during the review period in the context of improving trade facilitation infrastructure and encouraging support for strengthening the multilateral trading system. In particular, we note that the Kingdom of Saudi Arabia implemented 100% of its commitments under Trade Facilitation Agreement which is a significant achievement. We also note that Saudi Arabia launched its Vision 2030 which would pave the way for the Kingdom's economic diversification and development, including women empowerment and gender equality and increasing the participation of women in the work force from 20% to 30%. We note that Saudi Arabia has also achieved prominent progress in the World Bank's Ease of Doing Business 2020 report climbing 30 places from last year.

4.330. Bilateral relations between the Islamic Republic of Pakistan and the Kingdom of Saudi Arabia have remained historically strong and friendly across all spheres. The two countries have shared deep commercial, cultural, religious, political, and strategic ties since the establishment of Pakistan in 1947.

4.331. Around 1 million Pakistani nationals are resident in the Kingdom of Saudi Arabia and contributing to work in various fields. Their remittances are a major contribution for Pakistan's economy. Pakistan welcomes the developments in Saudi Arabia's Labour Reform Initiative, under which the 'KAFALAH' system would be abolished and various reforms introduced including giving the expatriate labourers, the freedom of entry/exit in the country and job switching. However, Pakistan remains concerned from time to time at some of the problems faced by Pakistani labourers in Saudi Arabia. But we are thankful to the Saudi government that the issues are resolved at a bilateral level.

4.332. Saudi Arabia is also one of the major trade partners of Pakistan and the bilateral trade volume is approximately USD 2.1 billion per year.

4.333. Pakistan's exports of USD 446 million to Saudi Arabia are concentrated in the agriculture sector. Cereals account for 21.8% share in total exports, followed by textiles which account for approximately 16.3%. Pakistan's top exports include Rice, Bovine carcasses and, textile materials, etc.

4.334. Pakistan's imports of USD 1.735 billion from Saudi Arabia mostly consist of mineral products including oil and petroleum products accounting for about 62.5% share in Pakistan's total imports from Saudi Arabia. The rest of the imports comprise plastics and chemicals etc.

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4.335. There is also a significant volume of bilateral services trade between Pakistan and Saudi Arabia of around USD 800 million in areas of transportation, telecommunication, travel, financial, government and business services.

4.336. In recent years, both countries have exchanged high-level delegations and developed plans to expand bilateral cooperation in trade, education, real estate, tourism, information technology, communications and agriculture. Despite the global slowdown, the governments of both countries have taken initiatives to facilitate trade and foreign investment. The 11th Session of Pak-Saudi Joint Ministerial Conference was held in Islamabad, Pakistan on 16-17 January 2018. Both the sides agreed for enhancing cooperation in trade and investment through the establishment of a Joint Working Group between Pakistan and Saudi Arabia. Both sides also agreed to hold single country exhibition in Saudi Arabia and convening of the first meeting of the Joint Business Council, which was convened on 27 February 2018. We look forward to maintaining the excellent bilateral relations with the Kingdom of Saudi Arabia.

4.337. Pakistan also appreciates the Kingdom of Saudi Arabia for their contribution and constructive engagement at the WTO. We note in particular, Saudi Arabia's active participation in the selection process for the DG, re-affirming their commitment to strengthening the multilateral trading system. Saudi Arabia has also launched the "Riyadh Initiative on the future of the WTO" during its G20 presidency in 2020.

4.338. In conclusion, we thank the Permanent Mission of the Kingdom of Saudi Arabia to the WTO at Geneva under the leadership of Ambassador, H.E. Mr. Saqer Almoqbel for their continued support and cooperation and we wish the Kingdom of Saudi Arabia a successful TPR.

BARBADOS

4.339. Barbados extends a warm welcome to H.E. Mr. Abdulrahman Alharbi, Governor of the General Authority for Foreign Trade of the Kingdom of Saudi Arabia, and his team on the occasion of their country's third Trade Policy Review (TPR).

4.340. We thank Mr. Alharbi, for his country's insightful opening statement and the discussant, H.E. Mrs. Zhanar Aitzhanova (Kazakhstan), for her thought-provoking analysis and perspectives. We would also like to also take this opportunity to acknowledge the WTO Secretariat for its usual thorough preparation of the report for this Review.

4.341. Barbados is acutely aware that our meeting today is set against the backdrop of the COVID-19 pandemic and the health and economic crises that have ensued from what primarily started as a health emergency. Like most other WTO Members, Saudi Arabia has also felt the impact of this unprecedented phenomenon. In 2020, the pandemic resulted in lower than expected oil prices, by extension, contributed to decline in real growth of the Saudi Arabian economy from 0.3% in 2019 to -5.4% in 2020. It is therefore heartening to hear that based on the IMFs projections, the Saudi Arabian economy is expected to recover in 2021 when GDP growth is set to rise by 3.1%. It is evident that such an accomplishment is the product of sound leadership and the implementation of rigorous fiscal policies and comprehensive legislative and regulatory reforms.

4.342. We take note of the structural challenges of faced by Saudi Arabia in modernizing and diversifying their economy away from a dependence on oil. We therefore commend Saudi Arabia on the implementation of Vision 2030 which seeks to, inter alia, enhance private-sector jobs for Saudi nationals; increase the participation of women in the workforce; increase investment in non-oil sectors and promote non-oil exports; and improve the business environment to attract foreign and local investment. We also commend Saudi Arabia on instituting new policy instruments, including the establishment of a new Export-Import Bank; special economic zones; and the Saudi Industrial Development Fund (SIDF). We wish them well in the implementation of their renewed strategic orientation and look forward to the hearing the success stories during the country's next trade policy review.

4.343. Barbados is particularly pleased to see that within three months of its last review in 2016, the Kingdom of Saudi Arabia ratified the Protocol concerning the WTO Trade Facilitation Agreement (TFA). What is perhaps more impressive, is that the country designated all of provisions in Section 1 of the Agreement under Category A, thereby committing to immediately implement those provisions

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- 44 - upon the entry into force of the Agreement. Trade facilitation is core to the development outlook that Saudi Arabia has created and is core to their efforts at diversifying and modernizing their economy.

4.344. Saudi Arabia is considered as an ardent supporter of multilateralism and the multilateral trading system. This is clearly demonstrated in the country's active participation in the regular and negotiating pillars of the WTO, as well as in a number of joint statement initiatives. They also serve an invaluable role by contributing to the Enhanced Integrated Framework (EIF) and at the bilateral level, their assistance in ensuring that graduated LDCs are not severely impacted by their change in status. Barbados looks forward to working with Saudi Arabia as we seek to ensure that our shared interests are taken up within the WTO Agenda.

4.345. In closing, Barbados congratulates the Kingdom of Saudi Arabia and wishes the Saudi Arabian delegation a successful conclusion to its third Trade Policy Review.

NIGERIA

4.346. On behalf of the delegation of Nigeria, I would like to extend our warm welcome to the delegation of the Kingdom of Saudi Arabia, led by his Excellency Mr. Alharbi joining us from Capital and their capable team present in Geneva. I would also like to thank the discussant her Excellency Ambassador Zhanar Aitzhanova of Kazakhstan for introducing the discussions here at the TPR Body. We shall begin by congratulating the Kingdom of Saudi Arabia on their third Trade policy review.

4.347. The reports before us today reflect the excellent work done by the Secretariat and the Kingdom of Saudi Arabia. Both reports spelt out the key objectives of the Kingdom of Saudi Arabia's trade and economic policies and the progress made since the last review. Nigeria has maintained a strong diplomatic and economic relationship with the Kingdom of Saudi Arabia.

4.348. We note that services which make up 41.5% share of the real GDP are the Largest contributors to the real GDP of the Kingdom of Saudi Arabia, and between 2015 and 2019, the GDP per capital witnessed an increase. Due to the booming oil prices during the periods between 2010 and 2013, Saudi Arabia experienced growth in all sectors. However as a result of the decline of the oil prices in 2014 and the current COVID-19 pandemic, the economy was negatively impacted, which is similar to how the economic sectors in Nigeria as an oil producing country, was also negatively affected by the mentioned events.

4.349. Despite these challenges, some of the achievements since their last trade policy review can be observed by Saudi Arabia`s wide range of new legislations and policy initiatives, such as the launch of its vision 2030, which is a roadmap for the Kingdom's economic diversification and further development. It is commendable that the aim of the initiative is to advance to the top 15 economies in the world. Private sector increased contribution to the countries' GDP among other strategies as stated in the report by the secretariat will no doubt help achieve that goal. It is also worthy of note that other goals of the vision 2030 include creating more jobs for Saudi nationals so as to reduce their average unemployment rate and also the goal to expand the participation of women in the workforce. We are pleased that Saudi Arabia's goal is to facilitate gender equality. However, the pace of the implementation of vision 2030 may seem uncertain as pointed out in the secretariat's report due to the impact of the drop in oil prices as well as the costs due to the COVID 19 pandemic. We are confident that the kingdom shall utilize the right economic tools to assist with their economic plans.

4.350. We are encouraged to note from the Secretariat's report that aspects of Saudi Arabia's trade and economic policies are geared towards openness to trade with policies which include simplification of customs procedures, the existence of low levels of import duties, the removal of foreign investment restrictions and new policies that promote exports. All these policies support International trade liberalization which is important for increased economic integration of all countries in global trade not withstanding their level of development.

4.351. We observe from the Saudi Arabia's policy paper, that it takes its rights and obligations in the WTO seriously and is committed to preserving a stable and predictable international trading environment based on clear and enforceable rules. For example, in light of the WTO crisis, Saudi Arabia is remarkably committed to the reform and the modernization of the WTO through its Launch

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- 45 - of the Riyadh Initiative on the future of the WTO during its G20 presidency in 2020. We welcome Saudi Arabia's Acceptance of the TFA and its active participation in the various joint statement initiatives of which Nigeria also plays an active role.

4.352. In conclusion, my delegation would continue to work closely with the Kingdom of Saudi Arabia and the rest of the membership, to achieve a rule based multilateral trading system that is responsive to the 21st century economic realities. We are confident that the Saudi Arabia, would continue its role as an active player in the multilateral trading system and make its contributions according to its capacity.

4.353. We congratulate the entire delegation for their engagement, and we wish the Kingdom of Saudi Arabia a successful third Trade Policy Review exercise.

INDIA

4.354. At the very outset, my delegation is very pleased to participate in the third Trade Policy Review of the Kingdom of Saudi Arabia, and would like to extend a very warm welcome to the delegation of the Kingdom of Saudi Arabia. My delegation would like to commend the government of the Kingdom of Saudi Arabia and the WTO secretariat for the comprehensive reports and also thank the discussant H.E. Mrs. Zhanar Aitzhanova from Kazakhstan for her insights.

4.355. India and Saudi Arabia share ancient economic and socio-cultural ties. Economic ties constitute a significant aspect of the bilateral strategic partnership. The landmark visits of our Prime Minister Mr. Narendra Modi to the Kingdom in 2016 and 2019 and the State visit of Crown Prince Mohammad bin Salman to India in, 2019 marked a new era in the bilateral relations.

4.356. Saudi Arabia is India's fourth largest trade partner, with bilateral trade of about USD 33 billion between the two countries. India's imports from Saudi Arabia are largely of petroleum crude and petroleum products, whereas imports of Saudi Arabia from India are largely of cereals, motor vehicles and organic chemicals. Saudi Arabia is the 21st largest investor in India with investments amounting to USD 1.8 billion (between April 2000 to September 2020). Apart from the major investors Saudi Sovereign Wealth Funds have invested several billion dollars in Indian Start-ups as well. With a presence of 476 companies, Indian investment stands at USD 1.5 billion as of March 2020. Being a major provider of India's energy needs Saudi Arabia has been invited to participate in India's Strategic Petroleum Reserves Programme.

4.357. The trade and economic policy measures adopted by the Government of Kingdom of Saudi Arabia, during the period under review, reflect its commitment to the economic transformation and growth of the country. The launch of ambitious and comprehensive Vision 2030 strategy, envisioning reduced dependence on oil, diversification of economy, strengthening investments, manufacturing sectors and development of public service sectors, coupled with restructuring of key government establishments accompanied with the necessary legislative changes are some significant noteworthy steps undertaken by the Kingdom of Saudi Arabia, since the last review.

4.358. Since its accession to the WTO, the Kingdom of Saudi Arabia has persistently remained committed towards the multilateral trading system one of the significant contributions that may be highlighted here is the leadership role it played during its G20 Presidency in the midst of the pandemic last year.

4.359. India and the Kingdom of Saudi Arabia as strategic partners have always maintained close relations not only on the bilateral front but also in the multilateral and international fora.

4.360. Ongoing COVID crisis has, however, exposed the world to vulnerabilities forcing us to explore ways to support each other. Trade can be an engine of reviving growth in such a scenario and this is premised on strengthening of the WTO based on its principles of openness, fairness, transparency, and inclusivity.

4.361. To conclude, I extend my congratulations to the H.E. Mr. Saqer Abdullah Almoqbel, Ambassador and Permanent Representative and his delegation for their positive contributions and wish the entire delegation a successful Trade Policy Review.

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NEPAL

4.362. Thank you chair for giving me the floor. First, my delegation would like to welcome the delegation of Kingdom of Saudi Arabia led by the Governor of General Authority for Foreign Trade H.E. Abdulrahman Alharbi, and appreciate him for the comprehensive opening remarks.

4.363. My delegation thanks H.E. Mrs. Zhanar Aitzhanova, Ambassador/PR of Kazakhstan for her insightful remarks as a discussant.

4.364. Let me congratulate the Government of Kingdom of Saudi Arabia for its comprehensive report and commend the Secretariat for the detailed report of the trade policy review of Saudi Arabia.

4.365. We appreciate Saudi Arabia's continuous commitment to rule-based, just and predictable multilateral trading system and its contribution.

4.366. Launching and actively promoting the Riyadh Initiative on the Future of the WTO with a view to identifying common ground and shared principles for the next 25 years of the WTO, and providing needful political support to make progress in the discussions on reforms among all WTO Members are highly commendable.

4.367. While going through the reports, it is evident that Kingdom of Saudi Arabia has taken wide range of cross-cutting and sector-specific policy initiatives aimed at modernizing and diversifying the economy over the review period and continuation of such initiatives to improve the competitiveness of the non-oil sector remained important.

4.368. Such initiatives would contribute to achieving higher economic growth even in the period of volatile oil markets and COVID-19 pandemic.

4.369. Launching of "Vision 2030" as comprehensive strategy with a view to modernizing and diversifying the Saudi economy seems a remarkable step to further strengthen its socio-economic development in the days ahead by enhancing the efficiency of government, including through accelerating decision-making processes and further developing e-government services, embracing standards of transparency and accountability, monitoring performance, and improving the management of public finances.

4.370. Similarly, measures adopted by the Government in matters such as starting a business, registering property, and protecting minority investors appear to have significantly improved the business climate.

4.371. Significant reforms in cross border trade facilitation including electronic data interchange system, an electronic trade single window, new risk management system and others are not less important.

4.372. In addition, the National Strategy for Special Economic Zones, new Competition Law and launching of the "second growth wave" are further supportive in production and productivity enhancement, and employment generation.

4.373. Initiatives to transform the ICT sector, support technology localization, and expand the IT and emerging tech market are also notable.

4.374. Nepal and the Kingdom of Saudi Arabia have been enjoying cordial relations since the establishment of diplomatic relation in 1977.

4.375. Our bilateral relations are based on goodwill, friendship, and mutual understanding.

4.376. With the passage of time, our ties have been advancing with increased interactions and close cooperation mainly due to increased economic relation.

4.377. Exchanges of high-level visits from both sides have further contributed to widening the relationship in different dimensions.

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4.378. Nepal extends its sincere appreciation to the government of Kingdom of Saudi Arabia for its continuous supports extended to Nepal's development endeavours.

4.379. Every year a large number of people from the Muslim Community pay a visit to the holy sites of Mecca and Medina to perform Hajj pilgrimage. The Government of Nepal has been providing all possible assistance to the Community so that Nepali Muslims could perform their time-honoured pilgrimage without any hindrance.

4.380. The support and cooperation received from the Saudi Government to Nepali pilgrims is also noteworthy and has greatly contributed to further cementing the bonds of friendly relations existing between the two countries and the people.

4.381. People to people relations have grown steadily after the arrival of Nepali workers in Kingdom of Saudi Arabia.

4.382. Despite coming from a different social, geographical and religious as well as cultural environment, Nepalis have been welcomed by the Saudi people very much due to their dedication to work, loyalty, sincerity and integrity.

4.383. Nepal's partnership with Saudi Arabia in the areas of trade, tourism and investment is a matter of utmost importance to Nepal.

4.384. Trade data shows that Nepal imported various goods from Saudi Arabia worth of about 9 billion Nepali rupees while exported to Saudi Arabia worth of only about 12.5 million Nepali rupees in the year 2019, translating to a huge trade gap in our bilateral trade in goods.

4.385. Such gap underlines the need for enriched collaboration and partnership between both the countries in the areas of trade, tourism and investment for our mutual benefit.

4.386. Both the countries have huge possibility of enhancing economic relation through partnership mainly in production of organic agriculture products in Nepal and bringing to the Saudi market, investment in manufacturing, tourism and infrastructure development in Nepal, among others for mutual economic benefits.

4.387. Besides the bilateral cooperation, Both the nations have expressed avowed commitments and loyalty to the principles of the United Nations Charter and work together at various multilateral forums for the common benefit of the humankind.

4.388. My delegation wishes for a successful Trade Policy Review of the Kingdom of Saudi Arabia.

JORDAN

4.389. We would like to associate ourselves with the statement delivered by Egypt on behalf of the Arab group. I would like to start by extending a warm welcome to H.E. Mr. Abdulrahman Alharbi and the entire Saudi's delegation, and join other delegations in congratulating them and recognizing their remarkable efforts exerted in the preparation of the reports and the trade policy review.

4.390. I would like to thank the Head of the delegation H.E. Mr. Abdulrahman Alharbi for his opening statement and the Chair for his introductory remarks, and the secretariat for their excellent report. Our appreciation is also extended to the discussant for her insightful and thorough remarks.

4.391. Saudi Arabia is an active player in the world trade and strong believer in free trade through its membership in the WTO and its Membership in the Gulf Cooperation Council and the Great Arab Free Trade Area together with its bilateral preferential agreements and FTAs signed with different countries and regions, including Jordan, and the other FTAs that is negotiating, in addition, Saudi Arabia is a chief world merchandise and services trader that is firmly committed to free trade policy and the multilateral trading system from which its economic sectors will benefit and prosper.

4.392. The economy of the Kingdom of Saudi Arabia exhibited stable growth during the review period in parallel with the introduction of the ambitious economic policies; the GDP during 2015-19

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- 48 - grew 1.6% on average, increased from USD 654 billion in 2015 to reach USD 793 billion in 2019, and the GDP per capita increased from USD 21,180 to USD 23,174 during the same period.

4.393. We commend the bold economic aspirations of the Government of Saudi Arabia reflected in "Saudi Vision 2030", which vividly caters for modernizing and diversifying its economy and creates a more competitive, knowledge-based economy. Additionally, this vision places a profound significance on maintaining a welcoming investment environment and motivating the private sector to take the lead in driving the economy. We are deeply encouraged with these endeavors. We wish the Government of Saudi Arabia further success in the implementation of the Saudi Vision 2030 Strategy.

4.394. Jordan and Saudi Arabia enjoy excellent bilateral and economic relations, alongside the strong ties between Jordan and Saudi Arabia. Jordan ranks third as Saudi Arabia's largest export destination in the Middle East region. In addition, Saudi Arabia is one of our most valuable trading partners. In terms of trade volume in the world, the bilateral trade volume between our two brotherly countries reached in 2019 almost USD 4 billion with 15% of Jordan trade volume with the whole world. As the numbers suggest, both of our countries have a strong trading relation with one another along with the historical ties which always existed between the two nations.

4.395. Jordan would like to wish the brotherly Kingdom of Saudi Arabia more prosperity and we look forward to further strengthening our trade and investment relations.

4.396. We wish our brothers a productive and a successful Trade Policy Review.

AFGHANISTAN

4.397. Afghanistan extends its gratitude to you, Mr. Chair, and to the Secretariat for convening this meeting and for preparing the comprehensive report. I would like to thank our discussant, Excellency Ambassador Zhanar Aitzhanova, Permanent Representative of Kazakhstan to the WTO, for her insightful remarks, and welcome Saudi Arabia's capital and Geneva-based delegates to the meeting, led by HE. Abdulrahman Alharbi, Governor of General Authority for Foreign Trade. In particular, we wish to extend our congratulations to Saudi Arabia for its third Trade Policy Review, specially, to H.E. Ambassador Saqer Abdullah Almoqbel, Permanent Representative of Saudi Arabia to the WTO, for his leadership, and to his competent team for their constant good work here in Geneva.

4.398. We commend Kingdom of Saudi Arabia for their commitment to trade liberalization under the multilateral trading system centered on WTO, and for a wide range of policy initiatives aimed at modernizing the economy. As a WTO Member, we thank Saudi Arabia for ratifying the protocol concerning the WTO Trade Facilitation Agreement in 2016 and for regularly submitting notifications to the WTO. It is great to see that during the period 2015-19, the GDP increased from USD 654 billion to USD 793 billion and Saudi Arabia has been transforming on almost all fronts.

4.399. We congratulate Saudi Arabia for the launch of its Vision 2030, a giant plan for economic development. The period under review has seen the establishment of General Authority for Foreign Trade, development of various laws and regulations including Companies Law, eCommerce Law, and initiation of Franchising Law. All these positive developments have resulted in improvement in the World Bank Doing Business 2020 report climbing up 30 places from last year, making it the top reformer and top improver around the world. The reforms in employment, abolishment of Kafalah system, and freedom of exit and re-entry visas have been extremely welcoming by the foreign workers.

4.400. The history of Afghan-Saudi relations reaches about 90 years. Although limited, but the trade between Afghanistan and Saudi Arabia is on the right trajectory and opportunities exist to quadruple the trade volume between the two countries in the near future. The Government of Saudi Arabia has been very cooperative with Afghanistan and embraces the proposals of the Afghan side as they have shown their commitment to expand political, cultural, economic and trade relations with Afghanistan.

4.401. We would like to take this opportunity to thank Saudi Arabia for its development assistance with the Afghan Government. Saudi Arabia is ranked as the 24th largest donor to Afghanistan and has pledged about USD 430 million from 2002 till 2020. Majority of Saudi Arabia's development assistance is provided as soft loans through its official agency, the Saudi Fund for Development.

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4.402. Considering the recent challenges facing the multilateral trading system, Afghanistan counts on Saudi Arabia's role among others in preserving an open, rules-based multilateral trading system with the WTO at its core, which is transparent and inclusive, with development as the core objective. We thank Saudi Arabia for launching the "Riyadh Initiative on the future of the WTO" during its G20 presidency in 2020, which aims to support reform of the WTO. I conclude my statement by wishing Saudi Arabia's delegation a very successful and productive trade policy review.

HONDURAS

4.403. On behalf of the Republic of Honduras, we welcome and congratulate the authorities of Saudi Arabia on the occasion of their third Trade Policy Review.

4.404. We extend a very warm welcome to the entire distinguished delegation headed by H.E. Abdulrahman Alharbi, Governor of the General Authority for Foreign Trade, and to our colleagues and friends from the Mission of Saudi Arabia to the WTO in Geneva.

4.405. We thank the discussant for her informative analysis, the WTO Secretariat for the high- quality report and the Saudi authorities for their policy statement.

4.406. An examination of the reports shows that, during the period under review, Saudi Arabia undertook a wide range of cross-cutting and sector-specific policy initiatives aimed at modernizing and diversifying the economy.

4.407. We note with interest the important adoption in 2016 of the Vision 2030 plan, which is a blueprint and ambitious roadmap for the Kingdom's economic diversification and subsequent development. It focuses on creating a vibrant society, a thriving economy and an ambitious nation.

4.408. The ICT Sector Strategy 2023 outlines key initiatives to transform the sector, with a view to supporting technology localization and expanding the IT and emerging tech market.

4.409. We also note that, in order to improve the services balance, the tourism sector has undergone major changes following the launch of Vision 2030, which aims to increase international and domestic trips to more than 100 million a year by 2030.

4.410. We highlight that Saudi Arabia has made major progress in the World Bank Doing Business Report 2020 and has climbed 30 places from the previous year, making it the top reformer and top improver among 190 economies around the world.

4.411. Meanwhile, we note with satisfaction that, in order to become a global logistics hub, the Kingdom fully applies the Agreement on Trade Facilitation and has automated various customs formalities, in addition to implementing an electronic single window.

4.412. Lastly, we wish to acknowledge Saudi Arabia's leadership and its participation in the negotiations on various initiatives. We commend Saudi Arabia for its significant achievements and efforts during the period under review and wish it every success.

PANAMA

4.413. First of all, I would like to warmly welcome and congratulate Governor Abdulrahman Alharbi, head of the delegation of Saudi Arabia, Ambassador Saqer Abdullah Almoqbel and the entire Saudi delegation for their outstanding preparatory work. I would also like to welcome Ambassador Zhanar Aitzhanova of Kazakhstan, discussant at this Review, and thank the Secretariat for preparing the respective reports.

4.414. Trade between Panama and Saudi Arabia over the past five years has ranged from USD 169,000 per year to USD 3.2 million in 2020. Panama's exports to Saudi Arabia of food products, particularly agricultural products such as coffee, cocoa and pineapple, account for a small portion of this trade. Saudi Arabia's exports to Panama consist almost entirely of chemical and manufacturing sector products.

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4.415. In recent years, Saudi Arabia has implemented a series of policies designed to modernize and diversify its economy, which are encompassed in a roadmap entitled Vision 2030. We note Saudi Arabia's efforts to establish a General Authority for Foreign Trade (GAFT) and transform the Saudi Arabian General Investment Authority (SAGIA) into the Ministry of Investment (MISA).

4.416. However, that the country remains highly dependent on oil. The COVID-19 pandemic caused the largest contraction in world oil demand in history, with significant repercussions for Saudi Arabia's government revenues. This laid bare the fragility of the Saudi economy and the extent to which it is exposed to the fluctuations of the fossil fuel market.

4.417. We therefore welcome the steps taken to strengthen non-oil industries. Not only will this increase the resilience of the Saudi economy, but it will also promote its diversification. Indeed, these sectors grew at a faster rate than the oil sector over the period from 2015 to 2019, especially the mining sector.

4.418. We are following with interest the domestic reforms in favour of female participation in the economy and highlight the progress on gender made by Saudi Arabia since its last Review. Nonetheless, there is still room for improvement and we trust that the Vision 2030 plan will achieve its goals in this area.

4.419. We would like to commend the Kingdom of Saudi Arabia on its active participation in the multilateral system, such as in the Joint Statement on Electronic Commerce, and on the leadership on trade-related aspects during the COVID-19 pandemic that it showed during its presidency of the G20.

4.420. In particular, we wish to commend Saudi Arabia for the major changes and efforts undertaken in moving towards a market economy more open to the world. Although specific points remain to be addressed, we view these endeavours and changes in a positive light.

4.421. We wish Saudi Arabia success in this Review and would like to highlight the admirable work of its delegation in Geneva led by Ambassador Saqer Abdullah Almoqbel.

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5 REPLIES BY THE REPRESENTATIVE OF THE KINGDOM OF SAUDI ARABIA AND ADDITIONAL COMMENTS

5.1. I would like to express our appreciation to you, Mr. Chair, for your able management of the Kingdom's Trade Policy Review meeting. My special thanks goes to the discussant, Her Excellency Ambassador Zhanar Aitzhanova from Kazakhstan, for her insightful and detailed introductory remarks. We also reiterate our gratitude to the WTO TPR Division for their technical and effective coordination through the entire review process.

5.2. The Government of Saudi Arabia attaches great importance to the Trade Policy Review Mechanism as it considers it truly a crucial process for ensuring the multilateral trading system's foundational values of accountability, predictability and transparency.

5.3. The Saudi delegation values the contributions and thoughtful interventions made by Members during the opening session on Wednesday. This valuable exercise has provided an exceptional opportunity to listen to insightful views and suggestions from Members on our trade policies and practices.

5.4. We are deeply encouraged and motivated by the positive feedback on the Kingdom's policies and reforms as well as the calls expressed by Members for deeper bilateral economic, trade and investment engagement with the Kingdom.

5.5. We appreciated the positive comments offered by most Members on the Kingdom's sustained efforts to maintain an open, free and transparent economy. We also noted with great pleasure that the majority of the intervening Members commended the Kingdom for its active role in supporting the multilateral trading system particularly through launching the "Riyadh Initiative on the future of the WTO" during the Kingdom's G20 presidency in unprecedented circumstances.

5.6. We are highly pleased to notice that a number of issues that have raised Members' concerns in our second review in 2016 were resolved and reconciled. This confirms the improvement in the Kingdom's trade and investment policies, practices and our persistence to continue adhering to the rules, disciplines and commitments under various WTO Agreements.

5.7. The reports by both the Secretariat and the Government issued in the framework of this trade policy review have illustrated the achievements of the Kingdom over the last five years. It is not my intention, today, to restate the points raised during our first session. I intend to focus on the observations that were made by some Members on the 1st day and to clarify some of the issues that are key to the Kingdom's ambitious plan that aims at deeper integration in the international trade and economy.

5.8. Let me begin with the remarks stated by Members on the Kingdom's economic environment. The positive remarks of most intervening Members have been highly appreciative of the Kingdom's economic performance and the strategic development plan of the kingdom of Saudi Arabia Vision 2030- which outlines the aspirations of the country in becoming a global investment powerhouse. Saudi Arabia is the largest economy in the Middle East and the largest oil exporter in the world. Foreign trade accounts for 62% of Saudi Arabia's economy. Diversification of the kingdom's economy through enhancing the non-oil sector remains a key priority to the kingdom's government, since the implementation of the kingdom's vision 2030 in 2016, non-oil exports have experienced significant increase.

5.9. Regarding diversification challenges and changing economic environment in the aftermath of the decline in oil price, the Kingdom believes that diversification has to be based on market principles and the competitiveness of the Saudi economy. It is worth to highlight, that a number of corrective measures have been implemented since the beginning of 2016, including optimizing government expenditures as well as increasing non-oil revenues.

5.10. According to the Ministry of Finance figures, the non-oil revenues for Q3-2020 amounted to SAR 122.9 billion, while oil revenues reached SAR 92.5 billion, marking a continuation of an upward trend since Vision 2030 announcement in 2016 to diversify the Saudi economy to lower the country's reliance on oil revenues.

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5.11. The continued upward trend of non-oil revenues resulted in increased fiscal stability and a positive outlook for foreign investors. Moreover, the non-oil sectors including manufacturing and renewable energy sectors continue to drive growth.

5.12. Small and medium-sized enterprises (SMEs) are integral part of Vision 2030. The Saudi Small and Medium Enterprises Authority (Monshaat) has been mandated to increase the contribution of SMEs to the Kingdom's GDP from 20 to 35% over this decade.

5.13. Regarding investment, the Kingdom has accelerated the development of the investment sector, which is one of the most important pillars of its economy. The kingdom aims for economic diversification and a comprehensive development, including all aspects of the investment climate.

5.14. Other developments included establishing international investment attraction offices in a number of targeted countries; and enabling 100% foreign investment in the retail and wholesale sectors, transportation, engineering services, associated consultations and private health institutions.

5.15. Furthermore, the Ministry of Investment has succeeded in increasing and re-prioritizing investment sectors, while providing important new opportunities in unprecedented sectors such as entertainment and tourism. It also improved the investment climate by reducing the negative list from 19 business activities to 10.

5.16. In the field of the protection of intellectual property rights, Saudi Arabia is giving this matter its utmost attention. It is worth mentioning that on 12 November 2020, a Ministerial Order has been issued to link the Saudi Authority for Intellectual Property (SAIP) directly to the Prime Minister. SAIP being put under the purview of the Prime Minister office clearly indicates that the Kingdom of Saudi Arabia attaches great importance to the enhancement of the IP ecosystem in the Kingdom of Saudi Arabia.

5.17. In the area of TBT and SPS, the Kingdom is keen to have its mandatory standards aligned with international norms; it had established a coordination mechanism for all governmental bodies responsible for standards and conformity assessment to enhance transparency, and ensure that these standards were consistent with its TBT and SPS obligations.

5.18. With regard to questions raised on the issue of localization and "local content", it is important to highlight that with the aim to fulfill the strategic objectives embodied in Vision 2030 to promote growth, diversify the economy, promote local production and improve workforce skills, some measures to unlock the potential of non-oil sectors were undertaken, including through localization of promising manufacturing industries along with some initiatives aimed at promoting local content in specific sectors of the industry. All these legitimate goals are in line with the WTO objectives set in the Marrakesh Agreement.

5.19. The Kingdom is fully committed to the foundational value of predictability and transparency of this Organization. A Special attention is given to the fulfilment of our WTO notification obligations and to the publication of legislations. All laws and regulations are published on the official website of the Bureau of Experts in the Council of Ministers, as well as the National Center for Archives & Records, which is the official government entity in charge of keeping official documents and records. In addition, each government agency is required to publish the laws and regulations relevant to its mandate on its website, in order to facilitate obtaining all legislative materials.

5.20. It is worth mentioning that the Kingdom as a developing country, and upon its accession to the WTO, has undertaken extensive commitments and wide range of reforms. It has been always committed to the rules-based trading system, in which development dimension remains one of its main pillars.

5.21. Regarding the future participation of the Kingdom to the Government Procurement Agreement (GPA), it is worth recalling that at the time of Saudi Arabia's accession to the WTO and its confirmation to initiate negotiations for the membership in the Agreement on Government Procurement by tabling an entity offer and the condition that, if the results of the negotiations were satisfactory to the interests of Saudi Arabia and other Parties to the Agreement, Saudi Arabia would

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- 53 - complete negotiations for membership in the Agreement. The said confirmation by the Saudi representative at that time pertains and was specific to a previous version of the Agreement.

5.22. The active participation in the ongoing negotiations, particularly, on Fisheries Subsidies and the Joint Statement Initiatives in WTO is a strong testimony of the Kingdoms' commitment to work constructively with Members to achieve meaningful outcomes for MC12.

5.23. The Kingdom confirms that answers to all questions received after the deadline will be submitted within one month as per the TPR mechanism.

5.24. In conclusion, I would like to reiterate the Kingdom's commitment towards the multilateral trading system and our continued efforts to maintain an open, free, fair and transparent trading regime. The Kingdom of Saudi Arabia confirms the compliance of its trade policies and practices with all WTO rules and principle including according MFN treatment to imports from all trading partners in full conformity with the its obligations. I also would like to thank once again our discussant, WTO Members' Delegations, and the TPR Division for their time and effort to make our Review a productive and purposeful exercise.

5.25. My special thanks go to my colleagues of my Saudi delegation team for their tireless efforts to complete this review successfully.

DISCUSSANT

5.26. I would like to congratulate His Excellency Mr. Abdulrakhman Alharbi, Governor of General Authority for Foreign Trade and His Excellency Ambassador Saqer Almoqbel with the outstanding work undertaken in the course of preparation and presentations at the third Trade Policy Review of the Kingdom of Saudi Arabia.

5.27. The third TPR of Saudi Arabia has provided with deep and broad overview of the developments in the Kingdom's trade, economic and investment policies, made during the review period. The interventions made by 40 delegations emphasized the importance Members placed with regard to this Review as well as the significant role played by the Kingdom of Saudi Arabia in the multilateral trading system. Members also highlighted the largest economy in the Arab region as an important and strategic partner in their bilateral and regional trade and investment relations.

5.28. Members appreciated the major achievements made in various areas of economic and trade policies of Saudi Arabia. Whilst, some practical and concrete recommendations provided by Members on improvement of the certain domestic policy areas could be beneficial to Saudi Arabia's sustainable economic development and could enhance its trade regime. Saudi Arabia acknowledged the intention to update "Vision 2030" Development Strategy to meet objectives of economic transformation and sustainable growth.

5.29. I would like to highlight key deliberations made during the review process.

5.30. First, Members praised the Kingdom's leadership in the course of its G20 presidency in 2020 for hosting two major Ministerial events and launching the Riyadh Initiative on the Future of the WTO. The Riyadh Declaration provided a high-level political support to the WTO reform process and underlined importance of international cooperation to accelerate the post pandemic economic recovery.

5.31. In the lead up for MC12, Members also highlighted Saudi Arabia's active engagement in the ongoing multilateral and plurilateral negotiations, including JSIs on e-commerce, services domestic regulation, investment facilitation for development and MSMEs.

5.32. Members also welcomed the launch of ambitious and comprehensive "Vision 2030" strategy, envisioning reduced dependence on oil, diversification of economy, increased share of the private sector in the economy and promotion of non-oil exports, strengthening investments, manufacturing sectors and development of public service sectors. These measures coupled with restructuring of key government establishments and accompanied with the necessary legislative changes have been mentioned by Members as significant noteworthy steps undertaken by the Kingdom of Saudi Arabia since the last review.

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5.33. The majority of Members highlighted that the Kingdom's reforms that resulted in significant reduction of the fiscal deficit, in opening of certain sectors to foreign direct investments, including financial markets; privatization of public companies; and strengthened competition and intellectual property regimes.

5.34. Members praised the Kingdom's ratification of the WTO Trade Facilitation Agreement and bold measures undertaken for its implementation, such as simplification of custom procedures and establishment of a country-wide single window for customs as well as new policy instruments for promotion of exports. All these trade and economic measures also help to effectively address economic challenges caused by global pandemic. Members supported efforts of Saudi Arabia to create more opportunities for development of SMEs as well as women empowerment and gender equality by targeting an increased participation of women in the work force from 20% to 30% by 2030.

5.35. Second, on certain domestic policy measures, Members suggested for further improvements towards trade and investment liberalization.

5.36. On investments, Members commended that Saudi Arabia continued to improve its investment climate. At the same, they noted that to achieve goals of the diversification of national economy and develop domestic industries across sectors, the Government applied local content requirements. In this regard, several Members questioned WTO consistency of such measures and asked for more detailed information regarding incentives for foreign investors, including tax benefits.

5.37. Members also encouraged the Government of Saudi Arabia to improve the transparency and due process safeguards of its legal framework, including with regard to the treatment of foreign commercial entities. A number of Members requested to review the requirements for investment and running businesses in Saudi Arabia with the view to open more activities to foreign investors and to assist international companies in finding the appropriate partner for doing business.

5.38. On trade measures. To promote openness to international trade and to enhance it trading framework in line with its WTO commitments, several Members pointed out the need to increase transparency of application of technical regulations as well as complex certification procedures, and the high costs associated with the electronic conformity assessment platform "SABER".

5.39. Some Members also expressed concerns regarding discriminatory impact of selective tax on certain beverages, non-automatic import licensing system, exportation measures, such as preshipment inspection and export bans on some products.

5.40. On import tariffs, some Members mentioned the increase in customs duty rates on certain goods in response to the COVID-19 pandemic and expressed their hope that this measure would be of temporary nature.

5.41. On government procurement. Members invited Saudi Arabia to start negotiations on joining the GPA in order to provide fair competition and open its bidding processes for foreign entities in a non-discriminatory manner.

5.42. In conclusion, it is important to emphasize that, all in all, Members consider Saudi Arabia as reliable and leading trading partner in the region and expressed their hope that the Kingdom of Saudi Arabia will continue exercising its leadership role in support of the global trade. Since its accession to the WTO, the Kingdom of Saudi Arabia has persistently remained committed towards the multilateral trading system. Many Members highlighted significant contribution made by the Kingdom during its G20 Presidency in the midst of the pandemic last year.

5.43. Finally, on behalf of Kazakhstan, I would like to express our deep appreciation for the profound and continued support demonstrated by the Kingdom of Saudi Arabia towards Kazakhstan's chairmanship of the 12th Ministerial Conference scheduled for December 2021 in Geneva and commitment to engage constructively in order to ensure meaningful and substantial outcomes at MC12.

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5.44. I also would like to thank the Chair, Ambassador Harald Aspelund, for inviting me to be a discussant in the third TPR of Saudi Arabia. It has been a great honor for me to contribute as discussant to this Review. Thank you.

UNITED STATES

5.45. The United States would very much like to thank the delegation of Saudi Arabia for their presence online here today in addition to expressing appreciation for the work which has gone into preparation for Saudi Arabia's third Trade Policy Review. As mentioned on day one, Saudi Arabia is an important economic partner of the United States, and we look forward to increased engagement on several trade issues. We also look forward to gaining more clarity regarding certain concerning trade policies.

5.46. As highlight previously, Saudi Arabia is a wealthy and influential player in the global economy and a member of the G20. As such, we again call on Saudi Arabia to no longer seek special and differential treatment in current and future WTO negotiations. By taking this step, Saudi Arabia would make a significant contribution to ensuring that the WTO remains a viable forum for meaningful trade negotiations.

5.47. We appreciate Saudi Arabia's responses to our advanced written questions. In a few cases; however, we had hoped that Saudi Arabia would have responded more thoroughly. We resubmitted those questions again this morning and ask the Saudi Government to answer in greater detail.

5.48. For example, the United States seeks greater clarity and detail in Saudi Arabia's responses to U.S. questions regarding technical barriers to trade (TBT) and asks for its cooperation in resolving issues raised through the TBT Enquiry point. As noted, some of these issues go back as far as 2017. The underlying lack of transparency results in policy uncertainty that creates difficulties for firms trying to invest in trade with Saudi Arabia.

5.49. We additionally would like to reiterate our concerns about data localization requirements in Saudi Arabia and we have requested additional detail on the types of data subject to localization requirements. We would like to better understand the process for determining which data must be localized, and whether there are measures planned or in place to ensure that any restrictions placed on cross-border data flows are necessary and proportional to the risks presented.

5.50. In conclusion, we would like to emphasize that Saudi Arabia is a valued trading partner of the United States, and for that reason we welcome Saudi Arabia's efforts to develop a more open trade and investment regime. We look forward to continued discussion regarding multiple themes and concerns highlighted during this Review.

EUROPEAN UNION

5.51. On behalf of the EU, let me first thank the Kingdom of Saudi Arabia for the comprehensive overview presented of the main trade and economic developments that occurred during the review period.

5.52. The EU welcomes the useful insights that this review has provided into modernisation and diversification strategy of the Kingdom of Saudi Arabia under the "Vision 2030" strategy. Saudi Arabia is a strong supporter of the multilateral trading system and an active WTO Member, as also underlined by the Riyadh Initiative on the Future of the WTO during its G20 Presidency.

5.53. However, as it was observed on several occasions, the economy of the Kingdom of Saudi Arabia is still very dependent on the oil and gas sector that suffered from the largest contraction in world oil demand in history, due to the COVID-19 pandemic in 2020 which also resulted in significant impact on government revenues.

5.54. The exchanges in this TPR underlined the concerns of WTO Members such as the emphasis on "localization" and the existence of detailed sector-specific industrial policies that have potentially distortive effects on trade and resource allocation. We also note the concerns regarding lack of transparency, on restrictive conditions for government procurement procedures, and some issues related to standards, technical regulations including SPS.

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5.55. The EU appreciates the responses provided by the Kingdom of Saudi Arabia to the advance questions we have submitted. We also submitted some follow-up questions on issues such as tariff increases, "minimized clearance time", import licensing, application of export duties, export prohibitions, and collection of royalties and we look forward to further clarifications and replies within the foreseen timeframe for this exercise.

5.56. In conclusion, the EU would like to thank the delegation of the Kingdom of Saudi Arabia for undertaking this important transparency exercise despite of the difficult circumstances and thus demonstrating its commitment to WTO. We are confident that our good cooperation will continue in the future.

KINGDOM OF MOROCCO

5.57. We thank both the Government of Saudi Arabia and the Secretariat for their reports, as well as H.E. Mrs. Aitzhanova, Ambassador of Kazakhstan, for her relevant comments.

5.58. Morocco commends the Government of Saudi Arabia for its engagement in the multilateral trading system and for conducting its third Trade Policy Review here by contributing to compliance with WTO rules.

5.59. We also congratulate him on his successful pathway since joining the WTO, as well as his dynamism in the multilateral trading system and his contribution to establishing free and open trade.

5.60. The trade policy review reports note notable advances made by Saudi Arabia in recent years, enabling it to consolidate its position among the world's top 20 economies, and achieve industrial and social change supported by the Vision 2030 which has enabled this friend and brother country to acquire a sustainable economy by developing new strategic sectors and by channeling energies toward industries and services that provide long-term competitive advantage.

5.61. Morocco welcomes the truce of Saudi Arabia to make free trade as means of strengthening competitiveness and productivity in the long term.

5.62. It is in this period that the free trade agreement establishing the Greater Arabs Free Trade Area is inscribed, which has made it possible to open up new horizons for economic operators in our two countries, especially as our respective economies have complementarities and potentialities not yet fully exploited.

5.63. We therefore reiterate our desire to further promote the level of cooperation with Saudi Arabia in the light of the excellence of our bilateral relationship and of the strategic partnership between the two countries which links us throughout the Gulf Cooperation Council. All our years of common interest, in particular those of an economic and commercial nature, should be strengthened with a view to strengthen levels of trade and employment, and investment opportunities.

5.64. Saudi Arabia has chosen to adopt a wide range of reforms aimed to improving the business climate and attracting more local and foreign investment. Indeed, the Secretariat report listed several policies adopted in this regard, such as the elimination of restrictions on foreign investment, the rationalization of licensing requirements, the reduction of negative lists, and the improvement of access to funds, as well as the implementation of several trade-facilitation measures.

5.65. The Kingdom of Morocco welcomes the leading role played by Saudi Arabia during its G20 Presidency in 2020 which has strived to provide adequate responses to global challenges posed by the pandemic, both in the short and long term, with a view to a global economic recovery.

5.66. Finally, the Kingdom of Morocco wishes the Kingdom of Saudi Arabia a fruitful review of its trade policy.

CHAD

5.67. My delegation welcomes and expresses our full solidarity with the delegation of Saudi Arabia. I would also like to thank the Head of Delegation for the comprehensive presentation of his country's trade policy. My delegation thanks and commends the Permanent Representative of Saudi Arabia

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- 57 - and his team in Geneva for their decisive role in safeguarding and consolidating the multilateral trading system.

5.68. Chad highly appreciates the WTO's commitment to supporting Saudi Arabia's efforts to create favourable conditions for development, especially for the most vulnerable countries, in accordance with multilateral trade rules.

5.69. The level of exports from Chad to Saudi Arabia is encouraging. However, much remains to be done if we are to increase our exports to Saudi Arabia on the basis of preference utilization rates.

5.70. Chad also commends Saudi Arabia's approach to the multilateral trade rules, its determination to satisfy the notification requirements and its commitment to comply with its WTO obligations.

5.71. As acknowledged by all Members, Saudi Arabia is an important partner with which we hope to further develop our trade relations.

5.72. Chad welcomes Saudi Arabia's support for aid-for-trade initiatives.

5.73. Lastly, Chad commends the considerable efforts of Saudi Arabia to revitalize trade and the multilateral trading system.

5.74. My delegation encourages Saudi Arabia to continue with its efforts and wishes it every success in this Trade Policy Review.

SWITZERLAND

5.75. I would like to thank the delegation of the Kingdom of Saudi Arabia for the answers provided to the questions of the Members for this Trade Policy Review. We examined the answers and would have some follow up comments and requests.

5.76. As indicated on Wednesday, Switzerland expressed its longstanding concern regarding the selective tax on beverages. The aim of our written questions was to have a sense about the direction of the foreseen reform of the tax. We are interested in knowing when the reform will take place. Will it be this year or next year? We would also have expected to get more details on the possible options envisaged to reform the tax. Most of these issues remain unanswered. Although we understand that the final decision will be taken at the GCC level, we would like to have in advance an idea of the reflections currently undergoing on this issue before a decision is taken.

5.77. According to the answers provided, is our understanding correct that Saudi Arabia – as well as the rest of the GCC members – will not harmonize the tax rate for all beverages subject to the selective tax and this, until the reform of the tax is implemented? Thank you in advance for a clarification regarding this point.

5.78. We also note that one of our requests remains unanswered, i.e. to obtain a copy of the study relating to the tax reform. We encourage the Kingdom of Saudi Arabia to answer all requests and questions sent by the members for this TPR.

5.79. We wish Saudi Arabia a successful Trade Policy Review.

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6 CONCLUDING REMARKS BY THE CHAIRPERSON

6.1. The third Trade Policy Review of the Kingdom of Saudi Arabia has provided us with a good opportunity to deepen our understanding of recent developments in, and challenges to its trade, economic, and investment policies. Despite some technical challenges, our discussions were rich as 40 delegations took the floor, underlining the importance attached by Members to Saudi Arabia's trade and investment policies and practices. 573 advance written questions were submitted by Members with additional questions submitted after the first day of our meeting.

6.2. I would like to thank the delegation of Saudi Arabia, headed by H.E. Mr. Abdulrahman Alharbi, the Governor of the Saudi General Authority of Foreign Trade, for the participation in this exercise despite the challenges imposed by the COVID-19 pandemic. I would also like to thank our discussant, H.E. Ambassador Zhanar Aitzhanova of Kazakhstan, for her insightful remarks, and all the delegations that took the floor for their valuable contributions to this Review.

6.3. Saudi Arabia's strong support to the multilateral trading system was stressed by Members, and in particular its leadership in the G20 to discuss issues around trade and investment, including during two dedicated ministerial meetings. They applauded Saudi Arabia in particular for initiating and advancing the Riyadh Initiative on the Future of the WTO aiming at discussing and reaffirming the principles of the WTO and its reform. Members also took note of the Kingdom's ratification of the TFA, and its active participation in ongoing discussions such as the fisheries negotiations and the four Joint Statement Initiatives of e-commerce, Domestic Services Regulation, Investment Facilitation, and MSMEs. A number of Members requested further information regarding the Kingdom's plans to join the Government Procurement Agreement, encouraging it to do so as per its accession commitments.

6.4. Members commended Saudi Arabia for its achievements since its previous Review in 2016. They took note of the comprehensive reform efforts undertaken by the Kingdom in the context of its Vision 2030 to address structural economic challenges by reducing its dependence on oil and to diversify the economy in an environment open to trade and investment. Members in particular commended the Kingdom for its policies to improve the business environment, implementing trade facilitating measures, and opening up a number of economic sectors, including through privatization and by shortening the negative list for investments. They also noted efforts to modernize the judiciary, strengthening the intellectual property framework, the adoption of new competition and government procurement laws, and reforms of the labour market. They noted that these policy changes had been complemented by wide ranging institutional changes such as the creation of the General Authority for Foreign Trade, as well as procedural changes, such as the introduction of electronic trade platforms to register conformity certificates for consumer products ("SABER") and the electronic single window. Members acknowledged that some of Saudi Arabia's policy responses seem to have contributed to allowing it to weather the COVID-related economic upheaval relatively well. While appreciating the reforms undertaken, Members called on Saudi Arabia to continue its efforts to diversify its economy and enhance transparency around investment, trade procedures, and product regulations.

6.5. Members raised questions and concerns regarding policies that appear to restrict trade, and areas where transparency can be improved. For example, Members requested additional information regarding recent government policies aiming at localization of production and expressed some concerns regarding the recently announced requirement for firms to establish their regional headquarters in Saudi Arabia as a precondition for being eligible for government contracts. Members also raised concerns regarding the increase in customs duties during the pandemic, export restrictions, the introduction and administration of varying excise duties for certain beverages, preshipment inspection requirements for selected products, halal certification, and new conformity assessment procedures and fees linked to the introduction of the SABER platform. Members also referred to continued challenges with effective IP enforcement and the resolution of commercial disputes. Likewise, Members raised questions regarding the varying treatment of national and international companies regarding corporate income tax and Zakat, Saudization policies which Members claimed did negatively affect hiring and business operations, and data localization requirements. Concerns were also raised regarding what was considered as systematic discrimination in customs practices affecting one member's exports to Saudi Arabia, and the impact these practices may have on international value chains and the global economy.

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6.6. Members also highlighted the importance of timely WTO notifications and encouraged the Kingdom to submit pending notifications in a timely manner, mentioning explicitly the area of domestic support in agriculture, or the delayed notification of recent tariff changes.

6.7. Acknowledging recent gender-related reforms, several Members encouraged the Kingdom to share experiences with the implementation and outcomes of these reforms while stressing that they saw scope for further deepening. In this context, they invited the Kingdom to join the Buenos Aires Declaration on Women's Economic Empowerment and the WTO's Informal Working Group on Trade and Gender.

6.8. I hope that the delegation of Saudi Arabia will consider the issues raised during our discussions, some of which I have just mentioned. From the interventions made this morning and the follow-up questions sent to Saudi Arabia, it is clear that Members still have concerns regarding particular aspects of the Kingdom's trade policies, to which I am sure Saudi Arabia will give due consideration. The questions, constructive comments, and experiences shared during this Review offer food for thought for the Saudi authorities to reflect on as the Government continues to review and adapt policies to achieve their policy objectives. Members look forward to receiving the answers from Saudi Arabia to any outstanding questions within one month, at which point the Review will be successfully concluded.

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