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RESTRICTED WT/TPR/S/333 29 February 2016

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RESTRICTED WT/TPR/S/333 29 February 2016 RESTRICTED WT/TPR/S/333 29 February 2016 (16-1185) Page: 1/110 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT THE KINGDOM OF SAUDI ARABIA This report, prepared for the second Trade Policy Review of the Kingdom of Saudi Arabia, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from the Kingdom of Saudi Arabia on its trade policies and practices. Any technical questions arising from this report may be addressed to Mr. John Finn (Tel: 022 739 5081); Mr. Usman Ali Khilji (Tel: 022 739 6936); Mr. Xinyi Li (Tel: 022 739 5579) and Mr. Samer Seif El Yazal (Tel: 022 739 5459). Document WT/TPR/G/333 contains the policy statement submitted by the Kingdom of Saudi Arabia. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on the Kingdom of Saudi Arabia. This report was drafted in English. WT/TPR/S/333 • The Kingdom of Saudi Arabia - 2 - CONTENTS SUMMARY ........................................................................................................................ 7 1 ECONOMIC ENVIRONMENT ........................................................................................ 10 1.1 Fiscal Policy ............................................................................................................. 13 1.2 Monetary and Exchange Rate Policy ............................................................................ 14 1.3 Balance of Payments ................................................................................................. 14 1.4 Developments in Trade .............................................................................................. 16 1.4.1 Composition of merchandise trade ............................................................................ 16 1.4.2 Direction of merchandise trade ................................................................................ 16 1.5 Foreign Direct Investment ......................................................................................... 16 2 TRADE AND INVESTMENT REGIME ............................................................................ 19 2.1 General Framework .................................................................................................. 19 2.2 Trade Policy Formulation ........................................................................................... 20 2.3 Economic and Trade Policy Objectives .......................................................................... 21 2.4 Trade Agreements and Arrangements .......................................................................... 22 2.4.1 WTO .................................................................................................................... 22 2.4.2 Regional and preferential agreements ....................................................................... 24 2.4.2.1 Cooperation Council for the Arab States of the Gulf .................................................. 24 2.4.2.2 Pan-Arab Free Trade Area (PAFTA) ........................................................................ 25 2.4.2.3 Other agreements and arrangements ..................................................................... 25 2.5 Investment Regime .................................................................................................. 25 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 30 3.1 Measures Directly Affecting Imports ............................................................................ 30 3.1.1 Customs procedures ............................................................................................... 30 3.1.2 Customs valuation ................................................................................................. 32 3.1.3 Rules of origin ....................................................................................................... 32 3.1.4 Tariffs .................................................................................................................. 33 3.1.4.1 WTO bound tariffs ............................................................................................... 33 3.1.4.2 MFN applied tariffs .............................................................................................. 33 3.1.4.3 Preferential rates ................................................................................................ 36 3.1.4.4 Tariff exemption ................................................................................................. 36 3.1.5 Internal taxes collected at the border ....................................................................... 37 3.1.6 Import controls ..................................................................................................... 37 3.1.6.1 Import prohibitions and restrictions ....................................................................... 37 3.1.6.2 Import licensing .................................................................................................. 39 3.1.7 Contingency measures ........................................................................................... 41 3.1.8 Standards and technical requirements ...................................................................... 42 3.1.9 Sanitary and phytosanitary measures ....................................................................... 43 3.2 Measures Directly Affecting Exports ............................................................................. 46 3.2.1 Export procedures and requirements ........................................................................ 46 WT/TPR/S/333 • The Kingdom of Saudi Arabia - 3 - 3.2.2 Export taxes and duties .......................................................................................... 46 3.2.3 Export control ....................................................................................................... 46 3.2.3.1 Export prohibitions .............................................................................................. 46 3.2.3.2 Export licensing .................................................................................................. 47 3.2.4 Export finance, insurance, guarantees and assistance ................................................. 48 3.2.5 Free zones ............................................................................................................ 48 3.3 Measures Affecting Production and Trade ..................................................................... 49 3.3.1 Taxation and tax incentives ..................................................................................... 49 3.3.1.1 Taxation ............................................................................................................ 49 3.3.1.2 Tax incentives .................................................................................................... 49 3.3.2 Non-tax incentives ................................................................................................. 49 3.3.3 State trading, state-owned enterprises, and privatization............................................. 50 3.3.4 Competition policy and price controls ........................................................................ 52 3.3.4.1 Competition policy .............................................................................................. 52 3.3.4.2 Price controls ..................................................................................................... 54 3.3.5 Government procurement ....................................................................................... 56 3.3.6 Intellectual property rights ...................................................................................... 57 3.3.6.1 Patents .............................................................................................................. 59 3.3.6.2 Copyrights and related rights ................................................................................ 59 3.3.6.3 Trademarks ........................................................................................................ 60 3.3.6.4 Layout-designs (topographies) of integrated circuits, industrial designs, and plant varieties ................................................................................................................. 60 3.3.6.5 Enforcement ....................................................................................................... 60 4 TRADE POLICIES BY SECTOR ..................................................................................... 62 4.1 Overview ................................................................................................................. 62 4.2 Agriculture .............................................................................................................. 64 4.2.1 Features ............................................................................................................... 64 4.2.2 Trade ................................................................................................................... 65 4.2.3 Policies ................................................................................................................. 66 4.2.3.1 Trade policies ....................................................................................................
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