September 12, 2005

Saudi Arabia removes some US agricultural import hindrances

Saudi Arabia has agreed to improvements in non-tariff measures that have historically hindered US agricultural imports, announced the US Meat Export Federation (USMEF) through a press release on Sept 10.

The agreement was reached after both countries completed negotiations on the terms of Saudi Arabia's market access commitments as part of its WTO accession package.

Saudi Arabia will now bind more than 90 percent of all agricultural tariff lines at 15 percent or lower. After implementation, the average bound tariff rate will be about 7 percent.

The country has also eliminated its import prohibition of beef and other meat products from animals treated with growth-promoting hormones. It has agreed too that any maximum residue requirements for synthetic hormones in animal products will be consistent with international standards.

Other than that, Saudi Arabia will facilitate US meat and poultry imports by recognizing an official export certificate from the USDA Food Safety and Inspection Service assuring that meat is safe, along with a producer or manufacturer self-certification that covers additional requirements not related to food safety or animal health.

The country has also committed to bind the use of agricultural export subsidies at zero.

Saudi Arabia is a net importer of agricultural goods. Virtually all corn and soy cake imports are subsidised to provide feed inputs for Saudi Arabian producers, and the US has historically been a large supplier of corn and soy cake to Saudi Arabia. 

US agricultural exports to Saudi Arabia exceeded US$480 million in 2004. The former exported 912 tonnes of beef and beef variety meat to Saudi Arabia in 2004, down from 1,861 tonnes in 2003.