For the purposes of applying this mechanism, the words and phrases listed below - wherever they appear - shall have the meanings specified next to each:

• 1-The Authority: Saudi General Authority of Foreign Trade.

• 2-The Relevant Authority: The government agency that wishes to conclude a commercial agreement or one related to trade.

• 3-The Commercial Agreement: The agreement that governs and regulates international trade exchange.

• 4- The Trade-Related Agreement: The agreement that includes standards, measures, and technical requirements that affect inter-trade.

• 5-The Mechanism: The mechanism for the operation and governance of concluding commercial agreements and those related to trade.
   

The mechanism aims to organize the process by which the authority ensures that the commercial agreements or trade-related agreements - concluded by the relevant parties - comply with the Kingdom's international obligations, and contributes to understanding the extent of their benefits and the implications resulting from their conclusion.
 

1- The mechanism applies to the following:

• A- Drafts of trade agreements, including the following:

  • 1) Agreements of the World Trade Organization (multilateral and plurilateral).

  • 2) Free trade agreements (Freetrade agreements).

  • 3) Customs union agreements.

• B- Drafts of agreements related to trade, including those concerning the following areas:

  • 1) Customs.

  • 2) Standardization.

  • 3) Transfer.

2- The mechanism does not apply to drafts of general framework agreements.

Taking into account the provisions of the laws, decisions, and orders related to the conclusion of international agreements and their procedures; the following mechanism shall be followed regarding commercial agreements or those related to trade:

• 1- The concerned entity wishing to conclude a commercial agreement or one related to trade, before submitting the draft agreement for a delegation request, shall provide the authority with the following:

  • A- The draft agreement, along with an accurate translation if it is not in Arabic.

  • B- A model for evaluating the commercial agreement or one related to trade (attached to the mechanism).

• 2- The authority shall review the agreement to ensure its compliance with the Kingdom's obligations within the framework of the World Trade Organization and its other international and regional commitments.

• 3- The authority shall present its observations regarding the agreement to the concerned entity within (thirty) days from the date it was provided with the documents mentioned in paragraph (1) of this item. The expiration of this period without the authority expressing its observations shall be considered as the authority's opinion on the appropriateness of the project.

• 4- The concerned entity shall be guided by the authority's observations – if any – regarding the draft agreement, and shall complete the legal procedures followed concerning the project.

Model for Evaluating the Commercial Agreement and Related Trade.