WORLD TRADE G/AG/N/ZAF/10
12June1997
ORGANIZATION(97-2424)
Committee onAgriculture Original: English
NOTIFICATION
Thefollowing notifications concerning newormodified domestic support measures exempt
from reduction (Table DS:2) were received from thedelegation ofSouth Africa on4June1997.G/AG/N/ZAF/10
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Table DS:2
DOMESTIC SUPPORT: South Africa
Notification under Article 18:3oftheAgreement:
Newormodified domestic support measures exempt fromreduction
(1)Fulltitleofmeasure: General Services, Administration
(2)Domestic legislation: Notapplicable
(3)Detailed description ofmeasure:
Toconduct theoverall management oftheNational Department ofAgriculture andrender
specialised administrative services (includes policy formulation functions, management and
advisory services, personnel, financial andlegalservices). Itconsists mainly ofsalaries for
personnel whoconduct theoverall management oftheNational Department ofAgriculture
andother supportive administrative services todothiseffectively.
(4)Costofmeasure: R53.515 million in1995
(5)Date ofentry intoeffect:
Thisitemhasalways formed partoftheDepartmental budget overhead cost,butwaswrongly
categorized asanon-exempt non-product specific support inthebaseperiod. Inthe1995year
thishasbeenincluded asa“green box”measure.
(6)Period ofapplication: see(5)above.
(7)Products toprincipally benefit (ifanyindividual product(s) ): AllG/AG/N/ZAF/10
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Table DS:2
DOMESTIC SUPPORT: South Africa
Notification under Article 18:3oftheAgreement:
Newormodified domestic support measures exempt fromreduction
(1)Fulltitleofmeasure:
Payments forrelief from natural disaster, AidtoFarmer Co-operatives.
(2)Domestic legislation:
Notapplicable
(3)Detailed description ofmeasure:
Interest subsidy toCo-operatives aimed atproviding aidtoFarmer Co-operatives infinancial
difficulty, caused bydrought andeconomic down turns. Thepurpose fortheaidistoretain
theinfrastructure intherural economy indesignated areas.
(4)Costofmeasure: R10million in1995/96
(5)Date ofentry intoeffect: 1992/93 financial year
(6)Period ofapplication: 1992/93 to1996/97 (phased outin1995/96).
(7)Products toprincipally benefit (ifanyindividual product(s) ): NotapplicableG/AG/N/ZAF/10
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Table DS:2
DOMESTIC SUPPORT: South Africa
Notification under Article 18:3oftheAgreement:
Newormodified domestic support measures exempt fromreduction
(1)Fulltitleofmeasure:
Payment forrelief from natural disasters, subsidies foraspecial assistance scheme forbee
keepers.
(2)Domestic legislation: Notapplicable (internal arrangements)
(3)Detailed description ofmeasure:
Tocompensate beekeepers whosuffered losses asaresult oftheinfiltration ofCape intruder
bees,forexpenses incurred inthere-establishment ofbeecolonies, destroyed byCapeintruder
bees.
(4)Costofmeasure: R0.488 million in1995
(5)Date ofentry intoeffect: 1992/93 financial year
(6)Period ofapplication: 1992/93 to1995/96 (phased outin1995/96 –financial year)
(6)Products toprincipally benefit (ifanyindividual product(s) ): HoneyG/AG/N/ZAF/10
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Table DS:2
DOMESTIC SUPPORT: South Africa
Notification under Article 18:3oftheAgreement:
Newormodified domestic support measures exempt fromreduction
(1)Fulltitleofmeasure:
Payment forrelief from natural disasters, co-ordinated refunding ofunmanageable debt.
(2)Domestic legislation: Notapplicable
(3)Detailed description ofmeasure:
Toassistfarmersthatfollowedcorrectfarmingandfinancialpractices,butthathadaccumulated
unmanageable debtlevels asaresult ofeconomic downturns andother factors outside oftheir
control, toreschedule theirdebts andtoplace suchfarmers ontheroadtofinancial recovery.
Assistance isthrough aco-ordinated action byallfinanciers which issupported bymeasures
available totheAgricultural Credit Board, suchaswriting offofdebtandrescheduling of
interest, financed bytheGovernment.
Applications areevaluated onanindividual merit basisandonajointandco-ordinated basis
byallthecreditors/obligee involved, through theJointLocal Committee/Agriculture Credit
Board.
Aidissubjected toaviability study, andaidissubject tothesustainability/viability ofthe
producer ’soperations
(4)Costofmeasure: R1.175 million in1995
(5)Date ofentry intoeffect: Since 1992/93 financial year.
(6)Period ofapplication: 1992/93 to1995/96 (wasphased outin1995/96).
(7)Products toprincipally benefit (ifanyindividual product(s) ): NotapplicableG/AG/N/ZAF/10
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Table DS:2
DOMESTIC SUPPORT: South Africa
Notification under Article 18:3oftheAgreement:
Newormodified domestic support measures exempt fromreduction
(1)Fulltitleofmeasure: Direct payments toproducers, farmlabourer housing.
(2)Domestic legislation: Notapplicable
(3)Detailed description ofmeasure:
Toimprove theliving conditions offarmworkers. These programmes willinfuture form
partoftheGovernment ’sReconstruction andDevelopment Programme toimprove theliving
conditions ofruralfarmworkers. Theprogramme consists ofasubsidy fortheconstruction
costs ofandloaninterest forfarmlabourer ’shousing. Assistance includes infrastructural
services suchaswater provision andelectricity.
(4)Costofmeasure: R20.795 million in1995
(5)Date ofentry intoeffect: 1990/91 financial year
(6)Period ofapplication: 1990/91 to1995/96
(7)Products toprincipally benefit (ifanyindividual product(s) ): NotapplicableG/AG/N/ZAF/10
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Table DS:2
DOMESTIC SUPPORT: South Africa
Notification under Article 18:3oftheAgreement:
Newormodified domestic support measures exempt fromreduction
(1)Fulltitleofmeasure: Payment forrelief from natural disasters, firedamage subsidy.
(2)Domestic legislation: Notapplicable
(3)Detailed description ofmeasure:
Subsidies were given fortherestoration offences, soilconservation works, incentives for
thereduction ofcattle, restoring oftheinfrastructure, water provision works andrebates
ontransport costs ofanimal feed.
(4)Costofmeasure: R1.768 million in1995/96
(5)Date ofentry intoeffect: Since 1991/92 financial year
(6)Period ofapplication: 1991/92 topresent
(7)Products toprincipally benefit (ifanyindividual product(s) ): Natural pasturesG/AG/N/ZAF/10
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Table DS:2
DOMESTIC SUPPORT: South Africa
Notification under Article 18:3oftheAgreement:
Newormodified domestic support measures exempt fromreduction
(1)Fulltitleofmeasure:
Payment forrelief from natural disasters, subsidy fortheprevention ofsequestration.
(2)Domestic legislation:
Settling ofdebtunder Article 22andArticle 21
(3)Detailed description ofmeasure:
Sequestration offarmers bythenormal process isprohibited bylaw. Thismeasure isto
prevent, asfaraspossible, thesequestration offarmers withtheability torecover fromthe
effects ofdrought andeconomic downturns, usually indesignated areas, thereby toretain
thesefarmers foragriculture andprevent escalated farmbankruptcies andtheresulting negative
effects ontherural economy inthese areas.
A“Crisis room”wascreated inPretoria attheAgricultural Credit Board, where identified
cases were financed outoftheexisting loanschemes oftheAgricultural Credit account.
Themeasures operate asfollows:
Allcases where theLandbank Board hasdecided tosequestrate farmers ortoprotect their
securities, thecases arereferred totheAgricultural Credit Board, tocome upwithapossible
settling agreement oranegotiated solution.
Allotherhanging sequestrations fromcreditors canpossibly bestopped bywayofnegotiations
between thedebtor andcreditor or,ifunsuccessful, areasonable settlement canbeforced
bymeans ofArticle 21-protection.
Settlement under Article 22legally facilitates asettlement planorsolution.
Inaccordance withrecommendations oftheCommission ofInquiry intotheProvisioning of
Rural Financial Services (Strauss Commission) thedirect credit delivery function ofthe
Department ofAgriculture willbeterminated during 1997. Thisassistance measure isalready
inaprocess ofphasing outbyapplying strict criteria when considering applications.
(4)Costofmeasure: R0.066 million in1995
(5)Date ofentry intoeffect: Since 1992/93 financial year.
(6)Period ofapplication: 1992/93 to1997
(7)Products toprincipally benefit (ifanyindividual product(s) ): Notapplicable