WORLD TRADE
ORGANIZATIONG/AG/N/CYP/14
10 May 2004
(04-2078)
Committee on Agriculture Original: English
NOTIFICATION
The following submission, dated 12 February 2004, is being circulated at the request of the
Delegation of Cyprus . The notification concerns domestic support commitments ( Table DS:1 and
the relevant Supporting Tables) for the calendar year 2002 .G/AG/N/CYP/14
Page2Table DS:1
DOMESTIC SUPPORT: Cyprus
REPORTING PERIOD: Calendar year 2002
Current Total Aggregate Measurement of Support
Total AMS commitment level for period in
questionCurrency Current Total AMS
(from Section 1 of Part IV of the Schedule) (from Section 1 of Part IV of the Schedule) (from attached Supporting Tables)
1 2 3
52.2 Million £C 32.99G/AG/N/CYP/14
Page3Supporting Table DS:1
DOMESTIC SUPPORT: Cyprus
REPORTING PERIOD: Calendar year 2002
Measures exempt from the reduction commitment - "Green Box"
Measure type Name and description of measure with reference to criteria in Annex 2 Monetary value of measure
in year in question
(£C)Data sources
1 2 3 4
(a) Total general services 80,339,364
(i) Research services
Research, including general research, research in connection with environmental
programmes, and research programmes relating to particular products.3,580,054 Budgets
(ii) Pest and disease control services
Pest and disease control, including general and product-specific pest and disease control
measures, such as early warning systems, quarantine and eradication.196,388 "
(iii) Training services
Agricultural training services provided by the Ministry of Agriculture, Natural Resources
and Environment to all farmers.56,303 "
(iv) Extension and advisory services
Extension and advisory services provided by the Ministry of Agriculture to all farmers.8,793,465 "
(v) Inspection services
Inspection of agricultural produce, including general inspection services and the
inspection of particular products for health, safety, grading or standardization purposes.189,494 "
(vi) Veterinary services
Veterinary services, including veterinary public health, extension services, disease
control, veterinary inspection services, quarantine services, etc.6,842,847 "
(vii) Marketing and promotion services
- Expenses for providing general marketing and promotion services by the Ministry of
Commerce, Industry and Tourism
- Expenses for providing marketing and promotion services by the Vine Products
Commission.1,528,979
987,516"G/AG/N/CYP/14
Page41 2 3 4
(viii) Infrastructural services
Capital expenses for providing for:
- Rural development
- Water development (dams, water treatment works, water supply, etc.)
- Land consolidation works
- Development of livestock areas and zones and other infrastructural works for
livestock (including works for environmental protection such as treatment of waste, etc.).58,164,318 Budgets
(b) Public stockholdings for food security purposes 7,537,960
Cyprus Grain Commission Services (operational expenses)
The Cyprus Grain Commission, among other things, also fulfils a public stockholding
role for food security purposes by managing and controlling the import, storage and
distribution of grains.7,537,960 Cyprus Grain
Commission
(c) Payments for relief from natural disasters 12,548,491
(i) Compensation through the Agricultural Insurance Organization
Compensation paid by the Government for the exceptional drought conditions and other
natural disasters which prevailed in 2001. The compensation includes (a) the
contribution of the Government to the Agricultural Insurance Scheme and (b) the
additional compensation which was paid to farmers due to exceptional drought
conditions, hail storms, frost, etc. For the additional compensation, the Agricultural
Insurance Organization borrowed from the Cooperation Central Bank and the
Government undertook loan repayments.10,464,433 Budget
Department of
Agriculture
(ii) Other compensations due to natural disasters1
Compensation paid to potato growers for the enforcement of control against Ring Rot.2,084,058 Department of
Agriculture
(d) Structural adjustment assistance conforming to Annex 2, paragraph 10 of the Agreement on Agriculture 1,721,382
Package of measures to limit/stabilize dairy and beef production
Cyprus Notification on package of measures to limit/stabilize dairy and beef production
is relevant.21,721,382 Department of
Agriculture
(e) Regional assistance programmes 2,409,395
Acreage payments to farmers in a disadvantaged region
The mountainous and hilly area in the Limassol and Paphos districts of Cyprus
(traditionally referred to as the wine-growing area because it was used solely for this
purpose since ancient times) is a disadvantaged area with very low production potential
because of poor shallow and calcareous soils. A subsidy is paid annually on a per hectare
basis to all farmers. Since vine growing is almost a monoculture in this region, the
subsidy covers all registered vineyards. To the extent that farmers grow additional crops
(e.g. olives and almonds) they receive equivalent assistance.2,409,395 Vine Products
Commission
Total for all exempt measures of Supporting Table DS:1 104,556,592G/AG/N/CYP/14
Page51Paragraph 8(a), Annex 2, Agreement on Agriculture.
2Notification G/AG/N/CYP/2 concerning new or modified domestic support measures exempt from reduction is relevant.G/AG/N/CYP/14
Page6Supporting Table DS:2
DOMESTIC SUPPORT: Cyprus
REPORTING PERIOD: Calendar year 2002
Measures exempt from the reduction commitment Special and Differential Treatment – "Development Programmes"
Measure type Name and description of measure with reference to criteria in Article 6:2 Monetary value of
measure in year in
question
(£C)Data sources
1 2 3 4
(a) Total investment subsidies generally available to agriculture 2,700,800
(i) Subsidies for piping, irrigation equipment and installation of improved irrigations
systems.
Provision by the Department of Agriculture, of financial support, to farmers of
mountainous and semi-mountainous areas for piping, irrigation equipment and
installation of improved irrigation systems.24,317 Department of Agriculture
(ii) Subsidies for soil conservation works.
Provision of financial assistance by the Department of Agriculture for the
construction of soil conservation works for agricultural development.176,512 "
(iii) Subsidies for citrus, deciduous and vines uprooting and/or replanting.
Provision of financial support by the Department of Agriculture for the
restructuring of agricultural crops.1,172,215 Department of Agriculture
Vine Products Commission
(iv) Purchase of animals.
Subsidization of the purchase of selected breeding stock for livestock
improvement.46,564 Department of Agriculture
(v) Conservation of rare breeds of farm animals.
Subsidization of the purchase of genetically improved sows (hybrits) in order to
encourage the genetic improvement of the swine population.18,925 "
(vi) Subsidies for integrated livestock development.
Payments to livestock keepers for the relocation of livestock units from residential
areas to livestock areas/zones.
Subsidies on the interest of loans made for the relocation and modernization of
livestock units.
Subsidization of expenditure for the establishment of units for the
treatment/utilization of swinery waste/effluent.
Subsidies for the expenditure for the establishment of liquid feeding systems for
the utilization of whey for pig/cow feeding.770,993 "G/AG/N/CYP/14
Page71 2 3 4
(vii) Subsidies for the modernization and improvement of farms in the crop production
sector.
Provision by the Department of Agriculture of subsidies on the interest of loans in
order to encourage the technological upgrading, modernization and improvement
of farms in the crop production sector.491,274 Department of Agriculture
(viii) Low interest loans issued by the Cooperative Central Bank on behalf of the
government.
Agricultural loans were medium-term and long-term loans issued to farmers at a
subsidized interest rate of 5%, as from 1994 (it was previously 7%). It is noted
that the legal binding rate has been reduced from 9% to around 6%.
n.a.Loan Commissioners
Cooperative Central BankIn 2002, total loans disbursed through agricultural development projects were
£C 261,000. Subsidized credit was available through the following agricultural
development projects:
- Project for the development of floriculture
- Utilization of aromatic plants and encouragement of their cultivation
- Encouragement of young people to remain in rural areas
- Integrated livestock development project.
(b) Input subsidies generally available to low-income or resource-poor producers 1,728,540
(i) Subsidies for the encouragement of forage cultivation and hay making.
Provision of subsidies to farmers for forage cultivation (pasture development), for
silage and mainly for the production of hay with the objective to encourage
livestock keepers to use hay as feed, in proper quantities, thus replacing barley and
other concentrates. A small percentage of the budgetary outlays is spent on field
trials.1,702,970 Department of Agriculture
(ii) Subsidies to plant protection associations.
Provision of subsidies to plant protection associations which cover part of the
expenses for pest and disease control, mainly for grapes and olives.25,570 "
Total for exempt measures, special and differential treatment 4,429,340G/AG/N/CYP/14
Page8Supporting Table DS:4
DOMESTIC SUPPORT: Cyprus
REPORTING PERIOD: Calendar year 2002
Calculation of the Current Total Aggregate Measurement of Support
Description of basic products
(including non-product specific
AMS)Product-specific AMS (from Supporting
Tables DS:5 to DS:7 below)
(£C)Product-specific equivalent
measurements of support (from
Supporting Table DS:8 below)
(£C)Current Total AMS (aggregate)
(£C)
1 2 3 4
Wheat 1,149,777 1,149,777
Barley 12,059,774 12,059,774
Wine grapes 2,976,705 2,976,705
Livestock products (Feedgrain subsidy) 9,053,819 9,053,819
Edam cheese 622,175 622,175
Tobacco 612,000 612,000
Carobs 226,907 226,907
Apples 815,876 815,876
Raisins 4,196 4,196
Olive oil 5,465,220 5,465,220
Non-product-specific AMS 0
Total: Current Total AMS 27,521,229 5,465,220 32,986,449G/AG/N/CYP/14
Page9Supporting Table DS:5
DOMESTIC SUPPORT: Cyprus
REPORTING PERIOD: Calendar year 2002
Product-Specific Aggregate Measurements of Support: Market Price Support
Description of basic
productsCalendar year
2002Measure type(s) Applied
administered
price
(£C/tonne)External
reference
price
(generally
from
AGST/…)
(£C/tonne)Eligible
production
(tonnes)Associated
fees/levies
(£C)Total market
price support
(£C)Data sources
1 2 3 4 5 6 7 8
(4-5)*6)-79
Wheat
(10.01)Fixed producer
prices152 CIF 63.12112,900 1,149,777 (a) Department of Statistics
and Research, Ministry of
Finance
(b) Imports and Exports
Statistics 1986-1988,
Nicosia, Department of
Statistics and Research,
Ministry of Finance.
(c) Cyprus Grain
Commission
Barley
(10.03)Fixed producer
prices132.5 CIF 38.432128,200 12,059,774 (a) Department of Statistics
and Research, Ministry of
Finance
(b) Imports and Exports
Statistics 1986-1988,
Nicosia, Department of
Statistics and Research,
Ministry of Finance
(c) Cyprus Grain
Commission
1External reference price used £C 63.12/tonne.
2External reference price used £C 38.43/tonne.G/AG/N/CYP/14
Page10Supporting Table DS:6
DOMESTIC SUPPORT: Cyprus
REPORTING PERIOD: Calendar year 2002
Product-Specific Aggregate Measurements of Support: Non-Exempt Direct Payments
Description of
basic productCalendar
year 2002Measure type(s) Applied
administered
price
(£C/tonne)External
reference
price
(generally
from
AGST/…)
(£C/tonne)Eligible
production
(tonnes)Total price-
related direct
payments
(£C)Other non-
exempt direct
payments
(£C)Associated
fees/levies
(£C)Total
direct
payments
(£C)Data sources
1 2 3 4 5 6 7
((4-5)*6))8 9 10
(7+8-9)11
Wine grapes
(wine of fresh
grapes 22.04)(i) Subsidy by weight
of wine grapes
(ii) Subsidy on
Commandaria wine,
by volume
(iii) Support for green
harvest1,193,784
48,209
1,734,7121,193,784
48,209
1,734,712Final Accounts,
Vine Products
Commission.
(Budgetary
outlays)
Total 2,976,705
Edam cheese )
Tobacco )
Carobs )
Apples )
Raisins )Product-specific
direct payments622,175
612,000
226,907
815,876
4,196622,175
612,000
226,907
815,876
4,196Treasury,
Ministry of
Finance
Citrus )
Fruit from deciduous
trees other than
apples )
Watermelons )
Tomatoes )
Sheep and goat
products )Product-specific
direct payments
de minimis1715,061
358,340
189,404
27,250
2,795,259715,061
358,340
189,404
27,250
2,795,259Treasury,
Ministry of
Finance,
Department of
Statistics and
Research,
Ministry of
Finance
1Support does not exceed 10 per cent of total value of production of each of these products for the relevant year. Under the provisions of Article 6.4 of the Agreement on Agriculture,
support falling below the de minimis level need not be included in the calculation of the Current Total AMS .G/AG/N/CYP/14
Page11Supporting Table DS:7
DOMESTIC SUPPORT: Cyprus
REPORTING PERIOD: Calendar year 2002
Product-Specific Aggregate Measurements of Support: Other Product-Specific Support and Total Product-Specific AMS
Description of
basic productCalendar year
2002Measurement
type(s)Other
product-
specific
budgetary
outlaysOther product
specific
support
(include
calculation
details)Associated
fees/levies
(£C)Total
other
product-
specific
supportMarket
price
support
(Supporting
Table DS:5)
(£C)Non-exempt
direct
payments
(Supporting
Table DS:6)
(£C)Total AMS
(£C)Data sources
1 2 3 4 5 6 7
(4+5-6)8 9 10
(7+8+9)11
Wine grapes
(wine of fresh
grapes 22.04)- Subsidy by weight of wine
grapes
- Subsidy on Commandaria wine,
by volume
- Support for green harvest2,976,705 2,976,705 Final Accounts
Vine Products
Commission.
(Budgetary outlays)
Wheat
(10.01)Fixed producer prices 1,149,777 1,149,777 (a) Department of
Statistics and
Research, Ministry
of Finance
(b) Imports and
Exports Statistics
1986-1988, Nicosia,
Department of
Statistics and
Research, Ministry
of Finance
(c) Cyprus Grain
Commission
Barley
(10.03)Fixed producer prices 12,059,774 12,059,774
G/AG/N/CYP/14
Page121 2 3 4 5 6 7
(4+5-6)8 9 10
(7+8+9)11
Livestock products Feedgrain
subsidy9,053,819 9,053,819 9,053,819 Cyprus Grain
Commission
Meat (beef, mutton
and lamb, goats and
kids, pork, poultry,
other meat), milk,
eggs*
*The fixed external reference price used was: £C 58.11/tonne.
Edam cheese )
Tobacco )
Carobs )
Apples )
Raisins )Product-specific
direct payments622,175
612,000
226,907
815,876
4,196622,175
612,000
226,907
815,876
4,196Treasury, Ministry
of Finance
Citrus )
Fruit from
deciduous trees
other than apples)
Watermelons )
Tomatoes )
Sheep and goat
products )Product-specific
direct payments
de minimis1715,061
358,340
189,404
27,250
2,795,2590
0
0
0
0Treasury, Ministry
of Finance.
Department of
Statistics and
Research, Ministry
of Finance
1Support does not exceed 10 per cent of the total value of production of each of these products for the relevant year. Under the provisions of Article 6.4 of the Agreement on Agriculture,
support falling below the de minimis level need not be included in the calculation of the Current Total AMS.
Estimated values of production for 2002 (provisional) (in £C) Citrus 18,547,000
Fruit from deciduous
trees other than apples 4,568,400
Watermelons 8,494,000
Tomatoes 10,761,000
Sheep and goat products 44,569,000 (meat and milk only)G/AG/N/CYP/14
Page13Supporting Table DS:8
DOMESTIC SUPPORT: Cyprus
REPORTING PERIOD: Calendar year 2002
Product-Specific Equivalent Measurements of Support *
Description
of basic
productsCalendar
year 2002Measure
type(s)Applied
administered
price
(£C/tonne)Production
eligible to
receive the
applied
administered
price
(tonnes)Market
price
support
budgetary
outlays
(£C)Equivalent
measurement
of support
(include
calculation
details)Non-
exempt
direct
paymentsOther
product-
specific
supportAssociated
fees/leveesTotal
monetary
value of
equivalent
commitmentData sources
1 2 3 4 5 6 7 8 9 10 11
(7+8+9-10)12
Olive oil Calendar
yearFixed
producer
price2,100 5,000** 5,465,220 5,465,220 5,465,220 Cyprus Olive
Products
Marketing
Board.
Department of
Statistics and
Research,
Ministry of
Finance.
The Agricultural
Situation in the
European Union,
1998 Report,
European
Commission,
Brussels -
Luxembourg,
1999.
External reference price 1998 (as from 1999 only Production Market Price exists): 1,751.60 ECU***/tonne or 1,006.96 £C/tonne (intervention price 1997/98)
Notes:
* It is noted that with respect to equivalent commitments, Cyprus undertook a commitment only on the basis of the difference between future contemporaneous prices, i.e. future
administered and future external reference prices.
** Preliminary estimate.
*** 1 Cyprus pound (£C) = 1.7395 Euro (end December 2002).
__________