WORLD TRADE
ORGANIZATIONG/AG/N/CYP/9
17 November 1999
(99-4995)
Committee on Agriculture Original:  English
NOTIFICATION
The attached notification concerning domestic support measures for the calendar year 1998
(Table DS:1  and the relevant supporting tables) was received from the delegation of Cyprus  on
27 October 1999.G/AG/N/CYP/9
Page 2Table DS:1
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1998
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)
123
55.3 Million £C 21.82G/AG/N/CYP/9
Page 3Supporting Table DS:1
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1998
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
123 4
Total for all exempt measures of Supporting Table DS:1 71,589,995
(a) Total general services 53,291,934 Budgets
(i) Research services
Research including general research, research in connection with environmental
programmes, and research programmes relating to particular products.3,008,934 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.194,304 Budgets
(iii) Training services
Agricultural training services provided by the Ministry of Agriculture and NaturalResources to all farmers.42,225 Budgets
(iv) Extension and advisory services
Extension and advisory services, provided by the Ministry of Agriculture to all farmers.9,829,044 Budgets
(v) Inspection services
Inspection of agricultural produce including general inspection services and the
inspection of particular products for health, safety, grading or standardization purposes.123,574 Budgets
(vi) Veterinary services
Veterinary services including veterinary public health, extension services, diseasecontrol, veterinary inspection services, quarantine services, etc.3,417,749 Budgets
(vii) Marketing and promotion  services
- Expenses for providing general marketing and promotion services by the Ministry of
Commerce and Industry;- Expenses for providing marketing and promotion services by the Vine ProductsCommission.594,292
1,030,176BudgetsG/AG/N/CYP/9
Page 4123 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 forlivestock (including works for environmental protection such as treatment of waste, etc.).35,051,636 Budgets
(b) Public stockholdings for food security purposes 6,128,210
Cyprus Grain Commission Services  (operational expenses)
The Cyprus Grain Commission among other things also fulfils a public stockholding rolefor food security purposes by managing and controlling the import, storage anddistribution of grains.Cyprus Grain
Commission
(c) Payments for relief from natural disasters 4,809,677
(i)  Compensation through the Ag ricultural Insurance Organization
Compensation paid by the Government for the exceptional drought conditions and othernatural disasters which prevailed in 1997.  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, hailstorms, frost, etc.  For the additional compensation, the Agricultural InsuranceOrganisation borrowed from the Cooperation Central Bank and the Government
undertook loan repayments.Budget
(ii)  Loans
In the case of damages caused to crops and livestock by natural calamities,  not coveredby the Agricultural Insurance Organization, the Government issued loans with subsidized
interest rate.  The total amount of loans issued during 1998 was £C 102,174.Department of
Agriculture
(d) Structural adjustment assistance conforming to Annex 2, paragraph 10 of the Agreement on Agriculture and
production-limiting programme under Article 6.5 of the Agreement2,097,991
. 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. (G/AG/N/CYP/2 refers)Department of
Agriculture
(e) Regional assistance programmes 5,262,183
Wine grapes area subsidy
An area subsidy is paid annually on a per hectare basis to all vine growers, based on the
age of vineyard as well as on geographical considerations.  In these areas we have almosta monoculture.Vine Products
CommissionG/AG/N/CYP/9
Page 5Supporting Table DS:2
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1998
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
12 3 4
Total for exempt measures, special and differential treatment 3,957,512
(a)  Total investment subsidies generally available to agriculture 1,859,328
(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 if improved irrigation systems.24,998 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.94,855
(iii) Subsidies for Citrus and Deciduous Replanting.
Provision of financial support, by the Department of Agriculture, for therestructuring of agricultural crops.797,100
(iv) Purchase of animals
Subsidization of the purchase of selected breeding stock for livestock improvementand 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.61,559
(v) Subsidies for integrated livestock development
Payments to livestock keepers for the relo cation of livestock units from residential
areas to livestock areas/zones.
Subsidization of interest on loans made for the relocation and modernization of
livestock units.Subsidization of expenditure for the establishment of units for thetreatment/utilization of swinery waste/effluent.880,816G/AG/N/CYP/9
Page 612 3 4
(vi) Interest on loans subsidy, as a difference between the maximum legal lending rate
in Cyprus and subsidized interest rate of agricultural loans issued by Government.Cash subsidies are included in subsidies for integrated livestock development.Agricultural loans are medium-term and long-term loans issued to farmers at a
subsidized interest rate of 5%, as from 1994.  (It was 7% before).  The maximum
legal lending rate in Cyprus is 9%).n.a. Loan Commissioners
Cooperative Central Bank
In 1998, total loans disbursed through agricultural development projects were
£C 400,640.  Subsidized credit was available through the following agriculturaldevelopment projects:
- Financing facilities for piping, irrigation equipment and installation
- Project for the development of floriculture
- Project for the improvement of vegetable cultivation- 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
(i) Subsidies for the encouragement of forage cultivation and hay making.
Provision of subsidies to farmers for fora ge 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 andother concentrates.  A small percentage of the budgetary outlays is spent on fieldtrials.2,077,968 Department of
Agriculture
(ii) Subsidies to plant protection associations.
Provision of subsidies to plant protection associations which cover part of theexpenses for pest and disease control, mainly for grapes and olives.20,216G/AG/N/CYP/9
Page 7Supporting Table DS:4
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1998
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)
12 3 4
Wheat 909,208 909,208
Barley 4,667,710 4,667,710
Wine grapes 3,538,546 3,538,546
Livestock products (Feedgrain subsidy) 8,485,652 8,485,652
Edam cheese 937,839 937,839
Tobacco 836,099 836,099
Carobs 278,541 278,541
Apiculture 149,398 149,398
Apples 645,210 645,210
Pears 73,136 73,136
Citrus de minimis 0 0
Peaches de minimis 0 0
Kiwis de minimis 0 0
Cherries de minimis 0 0
Sheep and goat products de minimis 0 0
Olive oil 1,298,238 1,298,238
Non-product-specific AMS 0
Total:  Current Total AMS 20,521,339 1,298,238 21,819,577G/AG/N/CYP/9
Page 8Supporting Table DS:5
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1998
Product-Specific Aggregate Measurements  of Support:  Market Price Support
Description of basic
productsCalendar year
1998Measure 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
123 4 5 6 7 8
((4-5*6)-7)9
Wheat
(10.01)Fixed producer
prices142 CIF 63.12111,600 909,208 (a) Department of Statistics
and Research, Ministry ofFinance
(b) Imports and Exports
Statistics 1986-1988,Nicosia, Department ofStatistics and Research,Ministry of Finance.
Barley(10.03)Fixed producer
prices127 CIF 38.43
253,000 4,667,710 (a) Department of Statistics
and Research, Ministry ofFinance
(b) Imports and Exports
Statistics 1986-1988,Nicosia, Department ofStatistics and Research,
Ministry of Finance
1External reference price used £C 63.12/tonne.
2External reference price used £C 38.43/tonne.G/AG/N/CYP/9
Page 9Supporting Table DS:6
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1998
Product-Specific Aggregate Measurements of  Support:  Non-Exempt Direct Payments
Description of basic
productCalendar year
1998Measure 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 4567
((4-5)*6))89 1 0
(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) Withdrawal of surplus
production3,504,568
29,157
4,8213,504,568
29,157
4,821Final Accounts,
Vine Products
Commission.(Budgetary
outlays)
Total 3,538,546 3,538,546
Edam cheese )
Tobacco )
Carobs )Apiculture )
Apples )
Pears )Product-specific
direct payments937,839
836,099
278,541149,398
645,210
73,136937,839
836,099
278,541149,398
645,210
73,136Treasury, Ministry
of Finance
Total 2,920,223 2,920,223
Citrus )
Peaches )Kiwis )
Cherries )Product-specific
direct paymentsde minimis (1)660,921
30,697
6,012
38,140660,921
30,697
6,012
38,140
Sheep and goat )
products )Product-specific
direct payments
de minimis (1)2,535,643 2,535,643Treasury, Ministry
of Finance,Department of
Statistics and
Research,Ministry of
Finance
Total 3,271,413 3,271,413
Note:
(1) Support does not exceed 10% of total value of production of each of these products, for the relevant year. Under the provisi ons 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/9
Page 10Supporting Table DS:7
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1998
Product-Specific Aggregate Measurements of Support:  Other Product-Specific Support and Total Product-Specific AMS
Description of
basic productCalendar year
1998Measurement
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
12 3 4 5 6 7
(4+5-6)89 1 0
(7+8-9)11
Wine grapes
(wine of freshgrapes 22.04)- Subsidy by weight of wine
grapes- Subsidy on Commandaria wine,by volume
– Withdrawal of wine grapes3,538,546 3,538,546 Final Accounts
Vine ProductsCommission.(Budgetary outlays)
Wheat(10.01)      Fixed producer prices 909,208 909,208
Barley
(10.03)      Fixed producer prices 4,667,710 4,667,710(a) Department of
Statistics andResearch, Ministry
of Finance
(b) Imports and
Exports Statistics1986-1988, Nicosia,
Department of
Statistics andResearch, Ministryof Finance.
G/AG/N/CYP/9
Page 1112 3 4 5 6 7
(4+5-6)89 1 0
(7+8-9)11
Livestock products:        Feedgrain subsidy* 8,485,652 8,485,652 8,485,652
Meat (beef, mutton
and lamb, goats andkids, pork, poultry,other meat), milk,
eggsCyprus Grain
Commission
*The fixed external reference price used was:  £C 58.11/tonne.
Edam cheese )
Tobacco )
Carobs )Apiculture )Apples )
Pears )Product-specific
direct payments937,839
836,099
278,541149,398645,210
73,136937,839
836,099
278,541149,398645,210
73,136Treasury, Ministry
of Finance
Total 2,920,223 2,920,223
Citrus )
Peaches )
Kiwis )Cherries )Product-specific
direct payments
de minimis  (1)660,921
30,697
6,012
38,1400
0
00Treasury, Ministry
of Finance.
Department ofStatistics andResearch, Ministryof Finance
Sheep and goat )products )Product-specific
direct paymentsde minimis  (1)2,535,643 0
Total 3,271,413 0
(1) Support does not exceed 10% of the total value of productions of each of these products, for the relevant year.  Under the p rovisions 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 1998 are the following (in £C) Citrus 16,324,000
Peaches 1,425,000Kiwis 198,900
Cherries 1,023,000
Sheep and goat products 29,902,000 (meat and milk only)G/AG/N/CYP/9
Page 12Supporting Table DS:8
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1998
Product-Specific Equivalent Measurements of Support
Description
of basic
productsCalendar
year 1998Measure
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
12 3 4 5 678 9 1 0 1 1
(7+8+9-10)12
Olive oil Calendar
yearFixed
producerprice2,100 1,200* 1,298,238 1,298,238 - - - 1,298,238 Cyprus Olive
ProductsMarketing
Board.
Department ofStatistics andResearch,Ministry of
Finance.
The AgriculturalSituation in theEuropean Union,
1996 Report,
EuropeanCommission,Brussels -
Luxembourg,
1997.
External reference price 1998:  1,751.60 ECU**/tonne or 1,018.14 £C/tonne (intervention price 1997/98)
Pork ***
Poultry meat ***
Eggs (in shell) ***
G/AG/N/CYP/9
Page 13Notes:
* Preliminary estimate
** 1 Cyprus pound (£C)   = 1.7204 ECU (end December 1997)
***    The price fixing policy for pork was abolished by an order of the Minister of Commerce, Industry and Tourism on 12 Septe mber 1997. It was abolished for poultry meat and eggs
by an order of the Minister of Commerce, Industry and Tourism on 11 July 1997.
-    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.
__________