WORLD TRADE
ORGANIZATIONG/SCM/N/48/URY/Rev.1
G/SCM/N/60/URY
18 April 2000
(00-1548)
Committee on Subsidies and Countervailing Measures Original: Spanish
SUBSIDIES
Updating Notification Pursuant to Article XVI:1 of the GATT 1994
and Article 25 of the Agreement on Subsidies and
Countervailing Measures
URUGUAY
Revision
The following communication, dated 30 December 1999, has been received from the
Permanent Mission of Uruguay.
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Afforestation
1. Title of the subsidy programme, if relevant, or brief description or identification of the
subsidy
Forestry Law
2. Period covered by the notification
1 January 1998 to 31 December 1999
3. Policy objective and/or purpose of the subsidy
- To increase the country's forest cover using low-productivity soils;- to expand and upgrade industrial plant and technologies for processing wood from
cultivated forests;
- alleviate the pressure on the country's native forests, and enhance their conservation
and sustainable use.
4. Background and authority for the subsidy (including identification of the legislation under
which it is granted)
Preservation, improvement, expansion and creation of forest resources, development of forest
resources, development of forest industries, and development of the forest economy in general.
Law No. 15.939 of 28 December 1987, published in the Official Journal on 9 February 1988.G/SCM/N/48/URY/Rev.1
G/SCM/N/60/URY
Page 2
Regulatory Decree No. 452/988 of 6 July 1988, published in the Official Journal on
14 July 1988.
5. Form of subsidy (i.e. grant, loan, tax concession etc.)
Tax concession, tariff concession, partial refund of planting costs.
6. To whom and how is the subsidy provided (to producers, to exporters, or others;  through
what mechanism;  fixed or fluctuating amount per unit;  if the latter, how determined)
Producers who invest in afforestation are entitled to the  subsidies, provided they qualify
under Forestry Law No. 15.939 and the regulatory decrees.  These provisions stipulate, inter alia ,
which soils can be used for afforestation, the types and species to be planted, the need for an
afforestation plan approved by the Ministry of Agriculture and Fisheries and the achievement, one
year after plantation, of a survival rate exceeding 75 per cent.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous
year).  Where provision of per unit subsidy information (for the year covered by the
notification, for the previous year, or both) is not possible, a full explanation
The amount of the refund of plantation costs has been reduced from $180 to $154 per hectare
(G/SCM/N/3/URY - G/SCM/N/16/URY) in the case of plantations, once only for each hectare
afforested.
Tax exemptions for protective forests (natural or artificial) and producing forests are
estimated at about $9 per hectare per year.
8. Duration of the subsidy and/or any other time-limits attached to it, including date of
inception/commencement
Exemptions and other tax benefits established by law apply to all taxes that in future would be
levied generically on agricultural enterprises, their owners as such, or their income.  They will be
applicable for a period of 12 years from the planting of the forests specified in Article 39 of the Law(Article 43).
Moreover, on the proposal of the Ministry of Livestock, Agriculture and Fisheries, the
Government may exempt the importation of raw materials needed for the processing of wood
produced domestically and of equipment, machinery, utility vehicles and tools needed for theinstallation and operation of such enterprises from all or part of such taxes or charges:  additional
duties and other customs levies including import taxes;  port charges or fees, surcharges, advance
deposits and appropriations, as well as any other levy on imports or applied during importation for a
period of 15 years.
9. Statistical data permitting an assessment of the trade effects of the subsidy.  The specific
nature and scope of such statistics is left to the judgement of the notifying member.  To the
extent possible, relevant and/or determinable, however, it is desirable that such information
includes statistics of production, consumption, imports and exports of the subsidized
product(s) or sector(s).
Revised and updated statistical data concerning afforested areas and forestry exports in
physical volumes and thousands of dollars are attached hereto.G/SCM/N/48/URY/Rev.1
G/SCM/N/60/URY
Page 3Forestry exports per year, by product (physical volume)
Product Unit 1991 1992 1993 1994 1995 1996 1997 1998
Pulp wood m3145,095 149,320 87,987 197,949 467,013 507,974 686,222 622,156
Sawn timber (total) m32,380 14,799 21,590 28,319 36,458 43,469 64,481 56,649
- Coniferous m30 1,147 1,650 2,455 2,451 6,850 39,427 20,075
- Non-coniferous m32,380 13,652 19,940 25,864 34,007 36,619 25,064 36,574
Logs for sawing m30 0 0 0 0 1,810 3,973 10,139
Posts, stakes, etc. m39 7 1 1 70 1 7 , 0 8 4 1 0 , 2 8 8000
Paper and paperboard ton 21,502 22,213 20,556 18,927 13,930 19,990 31,658 34,796
V e n e e r  w o o d t o n 000080 1 , 8 1 6 4 , 0 1 8
Paper and paperboard
wasteton1,886 145 0 800 3,090 4,335 3,149 3,257
P l y w o o d t o n 01000000
Chipboard or
hardboardt o n 00000 1 200
F i b r e b o a r d t o n 01000000
O t h e r t o n 00000000
Wood pulp ton 300 1,005 800 700 1,750 64 203 0
Source: Prepared by the Ministry of Agriculture, Livestock and Fisheries (MGAP) – Forestry Department, based on data from the Ba nco de la República  Oriental de Uruguay
(BROU) and the Central Bank of Uruguay (BCU).G/SCM/N/48/URY/Rev.1
G/SCM/N/60/URY
Page 4Forestry exports per year, by product (million dollars)
Product 1991 1992 1993 1994 1995 1996 1997 1998
Paper and paperboard 16,828 15,932 14, 587 14,409 14,221 20,404 32,529 32,708
Pulp wood 5,836 7,346 3,396 6,688 24,703 27,316 34,389 30,655
Sawn timber (total) 273 1,690 2,133 3,804 5,511 7,292 7,868 9,051
- Non-coniferous 273 1,639 1,901 3,176 4,741 5,656 3,798 4,718
- Coniferous 0 51 232 628 770 1,636 4,070 4,333
L o g s  f o r  s a w i n g 00000 2 0 8 3 6 5 9 1 3
V e n e e r  w o o d 000030 2 1 5 4 9 9
Paper and paperboard
waste172 25 0 98 263 682 272 290
Posts, stakes, etc. 2 514 0 1,236 874 0 0 0
P l y w o o d 00000000
Chipboard or
hardboard00000600
F i b r e b o a r d 01000000
O t h e r 00002000
Wood pulp 143 491 369 387 1,510 47 44 0
Total 23,254 25,999 20,485 26,622 47,087 55,955 75,682 74,116
Source:  Prepared by the MGAP - Forestry Department, based on BROU and BCU data.G/SCM/N/48/URY/Rev.1
G/SCM/N/60/URY
Page 5Areas Afforested under the Project for the Period 1975-1998 (hectares)
Type:  Eucalyptus, pinus, salix, populus  and other
27 July 1999
Department 1975-80 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Total
A r t i g a s 000000000000 4 8 4 60 2 5 1 6 1 8 5 8 1 9 3
Canelones 167 70 29 30 11 307 430 297 130 233 310 420 487 518 287 266 40 40 54 4,416
C e r r o  L a r g o 6 6000000000 3 3 4 3 0 1 , 1 5 2 1 , 9 7 2 2 , 0 9 3 1 , 9 0 1 2 , 5 7 3 2 , 5 7 3 3 , 6 6 1 1 7 , 9 1 4
Colonia 131 428 18 0 5 21 0 25 0 118 90 63 189 340 269 90 137 137 0 1,861
Durazno 1,181 10 15 0 0 180 84 43 115 907 754 1,074 2,518 6,183 3,791 3,678 2,623 2,623 3,393 29,614
F l o r e s 1 4 40000000000 2 0 1 1 8 8 7 6 20 4 2 4 20 4 7 0
F l o r i d a 10 4 00000000 9 3 5 6 8 1 , 2 9 1 2 , 6 4 9 2 , 6 1 6 1 , 5 0 1 2 , 4 9 2 2 , 1 9 2 5 , 4 4 4 2 0 , 4 5 8
L a v a l l e j a 1 90000000 2 5 5 5 0 1 6 1 9 1 , 1 1 4 2 , 4 8 1 2 , 6 6 1 4 , 4 8 1 5 , 4 6 4 6 , 5 4 2 6 , 5 4 2 5 , 4 8 0 3 8 , 1 9 5
Maldonado 0 0 19 0 0 0 0 0 70 56 151 501 969 1,234 1,556 910 1,178 1,170 1,107 9,187
M o n t e v i d e o 000000000 1 1 3 0 2 2 4 290300 1 1 1 2 8
Paysandú 2,699 372 661 565 796 817 803 274 484 1,820 962 3,460 3,716 5,110 4,489 5,738 4,640 4,640 6,822 54,952
Río Negro 2,249 130 88 59 0 350 45 30 99 410 2,798 5,255 7,061 8,893 10,903 14,971 11,034 11,034 6,872 78,338
Rivera 4,368 781 908 599 1,724 317 999 250 415 2,289 1,100 1,399 1,174 4,156 3,687 9,070 10,669 10,669 10,225 69,215
Rocha 1,404 126 68 17 0 0 0 0 91 0 39 36 471 667 817 183 352 352 2,012 6,797
S a l t o 00000000000 1 0 3 000 1 4 2 4 0 2 4 00 3 1 5
San José 299 25 25 15 15 15 110 2 1 103 119 123 283 704 570 267 132 132 0 2,933
S o r i a n o 6 800000000 2 7 7 1 2 2 2 3 1 1 , 1 0 7 4 , 0 8 6 2 , 4 4 0 4 , 0 8 5 2 , 1 6 7 2 , 2 6 7 1 , 1 2 3 1 9 , 8 4 1
Tacuarembó 1,844 39 24 36 0 170 132 140 67 382 427 638 2,484 2,473 3,323 6,865 8,282 8,083 7,238 80,313
T r e i n t a  y  t r e s 9 000 1 2 200000000 6 2 1 0 1 5 3 0 5 1 7 9 1 0 3 1 0 8 8 1 3 , 9 8 1
Total 14,617 1,951 1,984 1,442 2,651 2,175 2,612 2,061 1,717 6,598 7,688 16,374 26,824 41,895 42,037 66,448 64,053 61,053 58,337 403,748
Source:  Forestry Department.
Note 1:  Includes both afforested area and areas zoned under afforestation purposes (roads and buffer zones).
Note 2:  Area projected for 1998 is 85,987 hectares.G/SCM/N/48/URY/Rev.1
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Motor industry
1. Title of the subsidy programme, if relevant, or brief description or identification of the
subsidy
Regulations for enterprises exporting vehicles assembled in the country.
2. Period covered by the notification
1 January 1998 to 31 December 1999
3. Policy objective and/or purpose of the subsidy
Restructuring of the motor sector and specialization in market segments for export.
4. Background and authority for the subsidy (including identification of the legislation under
which it is granted)
Adoption of measures to facilitate business decisions related to production and investment
programmes and in preparation for the common MERCOSUR regime.
Decree 60/99 of 3 March 1999 published in the Official Journal on 12 March 1999.Decree 273/99 of 10 September 1999 published in the Official Journal on
20 September 1999.
1
5. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Enterprises which export vehicles completed or part-completed in the country, or auto-parts
of national origin, may benefit from a customs concession, applicable to the importation of motor
vehicles assembled in the place of origin destined for the domestic market, in accordance with the
conditions laid down in the above-mentioned regulations.
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how
determined)
For every United States dollar of exports (based on the f.o.b. values declared in the relevant
customs declarations) imports may be made with a concession of 13 per cent of the TGA (globaltariff), applicable to the surcharge element, for new vehicles assembled in the place of origin (based
on c.i.f. imports declared to the Banco de la Republica Oriental de Uruguay (BROU)).
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous
year).  Where provision of per unit subsidy information (for the year covered by the
notification for the previous year, or both) is not possible, a full explanation
Thirteen per cent of TGA (global tariff), applicable to the surcharge element, for new vehicles
assembled in the place of origin.
                                                     
1 Decrees 60/99 and 273/99 amended Decree 316/92 and prescribed a tax benefit not limited strictly to
the importation of vehicles but which can also be used for meeting tax obligations.G/SCM/N/48/URY/Rev.1
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8. Duration of the subsidy and/or any other time-limits attached to it, including date of
inception/commencement
Decree 60/99 entered into force in 1999 and continues in force in virtue of Decree 273/99.
9. Statistical data permitting an assessment of the trade effects of the subsidy.  The specific
nature and scope of such statistics is left to the judgement of the notifying member.  To the
extent possible, relevant and/or determinable, however, it is desirable that such information
includes statistics of production, consumption, imports and exports of the subsidized
products(s) or sector(s)
The 1999 data are not yet available.G/SCM/N/48/URY/Rev.1
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Ministry of the Economy and Finance
Ministry of Industry, Energy and Mining
Montevideo, 3 March 1999
HAVING REGARD TO the regime governing the automotive industry;
WHEREAS it is necessary to amend the regime so that it may more efficiently attain the
objectives for which it was adopted;
ACCORDINGLY
THE PRESIDENT OF THE REPUBLIC
HEREBY DECREES:
Article 1 - Article 1 of Decree No. 316/992 of 7 July 1992 shall be replaced by the following:
"Article 1 - Enterprises which export completed or part-completed vehicles assembled in the
country, or auto-parts of national origin, may avail themselves of the following mechanism,
applicable to the importation of motor vehicles a ssembled in the place of origin destined for the
domestic market and to products they impor t under Tariff Heading 8708.99.00.50 of the MERCOSUR
Common Nomenclature.
They may make imports with a concession of up to 13 per cent of the TGA (global tariff),
which includes the 3 per cent increase resulting from Article 1 of Decree No.  484/997 of
29 December 1997, subject to a ceiling of the equivalent of US$0.10 (ten United States cents) forevery United States dollar of exports, based on th e f.o.b. value declared in customs declarations.
Enterprises that cumulate the benefi t provided under Decree No. 558/994 of
21 December 1994 may reduce the ceiling provided for in the preceding paragraph to US$0.07 (seven
United States cents), and may allocate US$0.005 (point zero zero five United States cents) to be usedin the manner established in Decree No. 558/994 under reference, in which case the ceiling shall fall
to US$0.065 (point zero six five United States cents).
The enterprises covered in the first subparagraph of this Article which, within a period of
90 days counted as from the date of the export declaration, fail to make use of the TGA benefit using
any of the alternatives envisaged, may allocate th e balances for the payment of taxes due to the
Directorate-General of Taxation".
Article 2 - The National Department of Industr y of the Ministry of Industry, Energy and
Mining shall monitor the use of the benefit envisaged under Article 1 and shall issue the
corresponding certificates for presentation to the competent government authorities.
Article 3 - (Transitional provision).  The enterprises covered by Article 1 may earmark for the
payment of taxes due to the Directorate-General of Taxation such balances as may exist on the
effective date of this Decree owing to the non-use of the TGA concession envisaged under the present
regime and which are no older than 90 days as from said date.
Article 4 - Article 3 of Decree No. 340/996 of 28 August 1996 and all provisions conflicting
with the present Decree are hereby revoked.G/SCM/N/48/URY/Rev.1
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Article 5 - This Decree shall become effective upon publication and shall remain in force until
31 December 1999.
Article 6 - Proclaimed, published, etc.,
(Signed) SANGUINETTIG/SCM/N/48/URY/Rev.1
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Ministry of Industry, Energy and Mining
Ministry of the Economy and Finance
Montevideo, 10 September 1999
HAVING REGARD TO the regime governing the automotive industry and the provisions
Decree 60/999 of 3 March 1999.
WHEREAS it is necessary to maintain in forc e the regime governing the automotive industry
as of 1 January 2000, with the amendments made by Decree 60/999 of 3 March 1999.
ACCORDINGLY the foregoing.
THE PRESIDENT OF THE REPUBLIC
HEREBY DECREES:
Article 1 - Article 5 of Decree 60/999 of 3 March 1999 is hereby revoked.
Article 2 - Proclaimed, published, etc.,
(Signed) SANGUINETTI
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