. /.WORLD TRADE
ORGANIZATIONG/SCM/99
18 December 2002
(02-6978)
Committee on Subsidies
and Countervailing Measures
EXTENSION UNDER SCM ARTICLE 27.4 OF THE TRANSITION PERIOD UNDER
ARTICLE 27.2(b) FOR TH E ELIMINATION OF EXPORT SUBSIDIES
EL SALVADOR
Export Reactivation Law
Decision of 13 December 2002
The Committee on Subsidies and Countervailing Measures (the "Committee"),
On the basis of the provisions of Article 27.4 of the Agreement on Subsidies and
Countervailing Measures ("the SCM Agreement") pertaining to extension of the transition period
under Article 27.2(b) of the SCM Agreement for the elimination of export subsidies;
Taking into account the request and other notified information provided by El Salvador to the
Committee1 for Export Reactivation Law ("the programme") during the consultations between El
Salvador and the Committee pursuant to Article 27.4 of the SCM Agreement;
Recognizing with appreciation the efforts, by El Salvador, during the review by the
Committee, to describe and clarify the provisions of the programme;
Considering for purposes of this decision , El Salvador to be a developing country Member
eligible to request an extension pursuant to Article 27.4 of the SCM Agreement;
Considering that an extension of the transition period for the programme is justified taking
into account the economic, financial and development needs of El Salvador;
Noting that El Salvador hereby commits itself:
(i) not to modify the programme so as to make it more favourable, including as
to scope, coverage and intensity of benefits, during the extension period and
final two-year period referred to in the last sentence of Article 27.4 of the
SCM Agreement, relative to the level of benefits that existed as indicated in
the full notification of the programme that accompanied the request forextension
2;
(ii) to provide adequate transparency in respect of the operation of the
programme, on an annual basis during the period referred to in (i), including
                                                     
1The notified information on the basis of which this decision is taken is found in documents
G/SCM/N/74/SLV/2, G/SCM/N/71/SLV, G/SCM/Q3/SLV/1 to G/SCM/Q3/SLV/7.
2 G/SCM/N/71/SLV.G/SCM/99
Page 2
as to implementation of the standstill commitment, and steps to phase out
export subsidies under the programme, through notifications of the
programme following the agreed format for subsidy notifications under
Article 25 of the SCM Agreement, and review by the Committee;
Noting further the firm intention of El Salvador to take all necessary internal steps with a
view to phasing out export subsidies under the programme not later than 31 December 2005, such that
calendar years 2004 and 2005 would constitute the final two-year period referred to above;
Hereby grants  to El Salvador, under Article 27.4 of the SCM Agreement and subject to the
terms contained herein,  an extension, until 31 December 2003, of the transition period, under
Article 27.2(b) of the SCM Agreement, for the elimin ation of export subsidies as referred to in the
notified information3 under the programme.
This decision does not affect the legal rights of Members with respect to any other obligations
of El Salvador under the SCM Agreement, that may apply to the programme.  Among such other
obligations, it is recognized that the progra mme remains subject to Article 3.1(b) of the
SCM Agreement, which prohibits subsidies contingent, whether solely or as one of several otherconditions, upon the use of domestic over imported goods.
This decision  does not affect any rights, obligations or commitments of Members under any
other WTO Agreement with respect to the programme; and is without prejudice to the existing and
future relationship between the SCM Agreement and any other WTO Agreement, and has noprecedential value for any other purpose.
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3Footnote 1, supra .