From 12 June 2022, Saudi Arabia has increased tariffs on 107 tariff lines.
These increases are within Saudi Arabia’s agreed maximum tariff rates as part of its World Trade Organization obligations.
Saudi Arabia has stated that the purpose of these tariff increases is to protect domestic industries and local agricultural production.
Saudi Arabia has not set an expiry date for these tariff increases.
The tariff increases are expected to impact approximately 2% of Australian agricultural exports to Saudi Arabia. The Australian agricultural commodity most impacted by these changes is carrots.
Higher tariffs make imported products more expensive, which impacts their competitiveness relative to products made domestically. If implemented for one year, tariff revenue on the affected Australian agricultural exports are expected to increase from around $12,000 per year to $2.7 million per year.
Australian exporters should work with their Saudi importers to review the impact these tariffs may have on their sales to Saudi Arabia.
Table 1: Australian agricultural export commodities most affected by increased Saudi Arabian import tariffs
|Commodity||Saudi Arabia HS import code||Previous tariff rate||Tariff from 12 June 2022||Australian exports to Saudi Arabia (2019-20 to 2022-22 average)||Exports to Saudi Arabia as a proportion of Australian exports to the world (2019-20 to 2022-22 average)|
Meat & offal (other)
See the full list of affected products
Australia exported a record $1.5 billion in agriculture, fisheries and forestry products to Saudi Arabia in 2021–22 (see Figure 1).
The major driver since 2019–20 has been exports of barley. This is due to higher diversification of barley exporters into the Saudi Arabian market. There were also increases in exports of wheat, beef and sheepmeat.
Figure 1: Australian AFF exports to Saudi Arabia (FY2017–18 to FY2021–22)
The Manual of Importing Country Requirements has information about Saudi Arabia’s import conditions.
Austrade has more information about doing business in Saudi Arabia.
The Australian Government’s network of Agriculture Counsellors provided information for this article. More information about the Agriculture Counsellor network, including contact details, is available on the Department of Agriculture, Fisheries and Forestry website.
Saudi Arabia’s Vision 2030 identifies mining as a key component of the Kingdom’s industry strategy. This will open major opportunities for Australian companies in the mining, equipment, technology and services (METS) sector.