RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/CYP/12
17 July 2001
(01-3519)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions Posed by the UNITED STATES
Regarding the Updating Notification of CYPRUS1
The following communication, dated 14 July 2001, has been received from the Permanent
Mission of the United States.
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The following are questions regarding the notification of Cyprus made pursuant to
Article XVI:1 of the GATT 1994 and Article 25 of  the Agreement on Subsidies and Countervailing
Measures, in document G/SCM/N/48/CYP.
Halloumi Cheese
1. Can you please provide a per ton amount of  subsidy granted for 1998 as you did for 1997?
Wine, Alcohol, and Other Grape Products
1. Can you please indicate how many liters of anhydrous wine were subsidized in 1998 under
this programme?
Fruit
1. Since it is not indicated in your updating notification, does this programme still apply to the
dried grapes (raisins) industry?
2. Does this programme apply only to this industry?
3. If this programme is the same as the “Fruit: Dried Grapes” programme as notified in
G/SCM/N/38, the amount disbursed under this prog ramme increased more than ten times between
1997 and 1998 (from £C56,465 in 1997 to £C 582,000 in 1998).  Can you please indicate why there
was such a large increase in the amount disbursed?  Is there a set limit for how much money can be
disbursed in a given year?
Pig Meat
1. Since there were no amounts disbursed in 1998, does this mean that the programme has been
terminated?  If so, what is the legislation that terminated the programme?
                                                     
1 G/SCM/N/48/CYPG/SCM/Q2/CYP/12
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2. Has this programme been replaced with a different or similar programme?
Resource Centre for the Clothing Industry
1. Was the amount disbursed under this programme in 1998 an installment of the payments as
mentioned in G/SCM/N/38?   Or was a new five-year schedule begun?
Duty Relief for Selected Industries
1. Why was there such a tremendous drop in the amount of aid disbursed under this programme
in 1998 compared to 1997 (£C 1,460,325 in 1998 compared to £C5,133,434 in 1997)?  Does thismean that the programme is being phased out?
2. Is it expected that there will be a similar drop in funds in 1999?
Subsidization of Loan Interest for Technological Upgrading of the Manufacturing Industry
1. The amount disbursed under this programme in 1998 more than tripled from what was
disbursed in 1997, according to your notifications.  Can you please indicate why this occurred?
2. What industries received subsidized interest on their loans in 1998?
Exemption from Taxation of Profits Derived from the Exportation of Locally
Manufactured/Produced Goods
1. According to your notifications, the amount under this programme increased nearly eight
times between 1997 and 1998.  Can you please provide an explanation for this increase?
2. Are all exporters able to take advantage of this programme?3. In how many cases was the special exemption allowed in 1998?
Export Credit Insurance
1. Did any of the members have to use the insurance coverage offered under this programme in
1998 due to failure of the buyer to pay for goods delivered and accepted?
2. If no buyers fail to pay for goods, are exporters still reimbursed in some way for export credit
insurance?
3. Do exporters pay a percentage or fixed amount to the government for export credit insurance
the remainder of which is subsidized by the government?
4. Must an exporter apply for this insurance?  If so, is there a fee to apply?  Or are all exporters
automatically covered by this insurance?
Incentives Provided to Exporters Taking Part in International Trade Fairs/Trade Missions
Abroad
1. How many exporters were aided under this programme?
2. What was the approximate per exporter aid granted?G/SCM/Q2/CYP/12
Page 3
Financial Assistance for Market Research in Foreign Markets
1. You stated in your new and full notifi cation for 1998 (G/SCM/N/38) that the amount
budgeted each year for the subsidy or grant is £C20,000.  However, in the current notification, the
amount was £C21,000.  Can you please provide an explanation for this increase?
2. Are additional increases expected in subsequent years?
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