In November 2022, the Council of Ministers in Saudi Arabia approved the Law of Trade Remedies in International Trade (the Trade Remedies Law).¹ It regulates the conduct of anti-dumping, countervailing and  safeguard investigations on imports into Saudi Arabia,  and protects exports from Saudi Arabia from similar measures imposed by other countries. This has been followed in March 2023 by the approval by the Board of Directors of the General Authority of Foreign Trade (GAFT) of the Implementing Regulations for the Trade Remedies Law (the Implementing Regulations).²

Scope

The Trade Remedies Law, consisting of 37 articles distributed into 12 chapters, applies to imports into Saudi Arabia from members of the World Trade Organisation (WTO) and may apply to imports from countries that are not members pursuant to a decision by GAFT. The Law also applies to imports from within the States of the Gulf Cooperation Council (GCC)³, subject to certain conditions. GAFT plays a central role and represents Saudi Arabia in the WTO and the Standing Committee for Combatting Harmful Practices in International Trade at the GCC General Secretariat and the League of Arab States. Under its deputyship, it provides advice, assistance, programmes and awareness guides to exporters and producers in KSA with respect to investigations and issues of trade remedies.

Under the Trade Remedies Law, GAFT has the mandate to protect the local industry from dumping and subsidised imports, and to impose measures on imports into Saudi Arabia, as well as protecting its exports. The Trade Remedies Law will apply alongside the GCC Common Law on Antidumping, Countervailing Measures, and Safeguard Measures and Rules of Implementation.

Complaints and investigations

The Trade Remedies Law allows the Saudi domestic industry to file complaints before GAFT when suffering damages due to unfair trade or rapidly increasing imports into Saudi Arabia. The Governor and the Chairman of GAFT will take relevant decisions, including deciding on the initiation, extension and termination of investigations, where required. The investigations should take no longer than 12 months and may be extended to a maximum of 18 months.

During investigations, governmental authorities are expected to cooperate in providing the necessary information to aid the investigation process. Moreover, during investigations, the Saudi domestic industry that claims damages is expected to provide all requested information, including confidential and non-confidential data. All interested parties are required to respect the rule of confidentiality.

Imposition of measures

Pursuant to recommendations, the Chairman of GAFT will decide on the imposition of preliminary and/or final measures. A decision may be taken to impose anti-dumping and countervailing measures in the form of duties and price undertakings, or quantitative restrictions based on the investigation’s outcome. The application of the measures shall be for the period and amount necessary to offset dumping and customised subsidies that cause damage to the domestic industry and shall be to the extent necessary to prevent or treat material injury in a way that enables the local industry to adapt.

Public interest

Public interest persons⁴ shall declare themselves during the specified period in the notice of initiation of investigations, the final review and the review of the extension of preventative measures. They shall submit information supported by documents and evidence to GAFT regarding the impact of imposing measures on the public interest and whether imposing or extending measures or terminating them serves the public interest.

Dispute resolution

The concerned parties have the right to appeal within 30 days against the final measures taken under the Trade Remedies Law. Appeals will be reviewed by the Chairman of GAFT and then may be adjudicated before the administrative courts.

Implementing Regulations

Consisting of 64 articles split into 17 chapters, the Implementing Regulations aim to clarify the processes for trade remedy measures, whilst enhancing the competitiveness of domestic products as well as attracting new investments and industries to Saudi Arabia, to achieve the goals of Saudi Arabia’s Vision 2030. The Implementing Regulations set out the process of the anti-dumping, countervailing and safeguard measures which may be imposed in accordance with the international trade obligations of Saudi Arabia, including the WTO Anti-Dumping Agreement, Agreement on Subsidies and Countervailing Measures, and Safeguards.

The main takeaways

During recent years, Saudi Arabia has increasingly become an active user of trade remedy measures. Vision 2030 requires the government to support and promote the establishment and development of Saudi domestic industries and protect them from foreign unfair trade practice. The publication of the Saudi Trade Remedies Law and the Implementing Regulations provides legislative assistance to Saudi domestic industries.

It can be expected that, once the Trade Remedies Law and Implementing Regulations begin to be increasingly utilised in Saudi Arabia, GAFT may initiate a significant number of trade remedy investigations. Saudi domestic producers and traders, as well as foreign exporters, are suggested to follow up closely with the development of the Trade Remedies Law, as well as the practice of the GAFT. Once a trade remedy (such as anti-dumping, countervailing duty and safeguard) investigation is initiated, all interested parties are strongly advised to cooperate with the GAFT. Failure to cooperate may give rise to less favourable result to that party than if it would have cooperated.

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1. Royal Decree No. (M/60) on 4/29/1444 AH (corresponding to 23 November 2022). ↩
2. Issued by the decision of the Board of Directors of the General Authority for Foreign Trade (GAFT) No. (55) on 8/9/1444 AH (corresponding to 1 March 2023). ↩
3. A customs union that includes Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates. It has a regional trade remedies system that applies to imports into the GCC.↩
4. Government agencies, institutions and civil associations in Saudi Arabia that do not fall within the definition of concerned parties and have an opinion on the impact of imposing measures on the public interest, and include, for example: authorities concerned with consumer, public health, competitiveness of the local market and other parties concerned with public interest issues.↩