WORLD TRADE G/SCM/N/25/AUS
9July1997
ORGANIZATION(97-2876)
Original: English Committee onSubsidies
andCountervailing Measures
SUBSIDIES
Updating Notifications Pursuant toArticle XVI.1 oftheGATT 1994
andArticle 25oftheAgreement onSubsidies andCountervailing Measures
AUSTRALIA
Thefollowingcommunication,dated2July1997,hasbeenreceivedfromthePermanentMission
ofAustralia.
_______________
TABLE OFCONTENTS
Page
I. BedSheeting ...............................................2
II. Books ...................................................2
III. Citric acid ................................................3
IV. Computers ................................................3
V. Dairy products ..............................................3
VI. Machine tools androbots .......................................4
VII. Printed fabrics ..............................................5
VIII. Shipbuilding ...............................................5
IX. Textile yarns ...............................................6G/SCM/N/25/AUS
Page2
I. BED SHEETING
1. Nature andExtent ofBounty
(c) Amount ofBounty Paid
Year* $A'000
1994/95 880.2
1995/96 67.4
*Unless otherwise indicated financial years throughout thisnotification begin on1Julyand
finish on30June.
II. BOOKS
1. Nature andExtent ofBounty
(a) Background andAuthority
TheBounty (Books) Act1986, which commenced on1January 1987, wasduetoexpire on
31December 1997, however, theAustralian Government hasannounced anearly expiry dateof
30June1997. Legislation fortheearly expiry datehasyettobefinalised.
(c) Amount ofBounty Paid
Year $A'000
1994/95 23,998
1995/96 21,935
2. Effect ofBounty
(b) Statistics
Year Imports (A$million) Exports*
(A$million)
1994/95 510 85
1995/96 509 100
*Australian produce -these figures refer totrade inbooks, toallofwhich would have
beensubject tobounty.G/SCM/N/25/AUS
Page3
III. CITRIC ACID
1. Nature andExtent ofBounty
Asforeshadowed inG/SCM/N/3/AUS, there have been nofurther payments under this
programme.
IV. COMPUTERS
1. Nature andExtent ofBounty
(a) Background
TheBounty (Computers) Act1984hasbeenamended toextend thisprogramme which isnow
duetoterminate on30June1997.
(c) Amount ofBounty Paid
Year A$'000
1994/95 74,760
1995/96 64,053
1996/97 56,499*
*Appropriation figure under theBounty (Computers) Act1984 inthe1996 Budget.
(d) RateofBounty
Before 6July1990thebounty waspayable tothemanufacturer attherateof20%ofthein-house
value added (therateprogressively reducing to5%by1997) ofthemanufacturer 'seligible production
costsandoncertain sub-contracted activities suchasresearch anddevelopment andoperating software
development. Thebounty willnotbepayable forresearch anddevelopment onproduction completed
onorafter30June1997. Thebounty rateisreducing asfollows:
17%in1990/91
14%in1991/92
12%in1992/93
10%in1993/94
8%in1994/95 anduntil31December 1996
5%from 1January 1997 until30June1997
V. DAIRY PRODUCTS
1. Nature andExtent ofAssistance
(a) Background andAuthority
On1July1995, theAustralian Government introduced newdomestic market support
arrangements forthedairy industry. Thearrangements constitute adomestic support scheme which
delivers adomestic support payment toproducers ofmilkusedinmanufacturing. ThearrangementsG/SCM/N/25/AUS
Page4
arescheduled toterminate on30June2000. Theexport support payment provided under theprevious
scheme, the1992 Dairy Plan, wascompletely abolished from 30June1995.
Thepurpose ofthesubsidy istoincrease thereturn toproducers ofmanufacturing milkthrough
adomestic consumer transfer created through alevymechanism, toprovide anequivalent level of
domestic support tothatwhich would havebeenprovided hadtheprevious Dairy Plancontinued and,
atthesame time, enable Australia tomeetitscommitments under theUruguay Round.
Thefollowing Acts ofParliament give effect toAustralia 'sDomestic Market Support
arrangements:
Dairy Produce Act1986 (asamended)
Dairy Produce Levy (No.1) Act1986 (asamended)
Dairy Produce Levy (No.2) Act1986 (asamended)
(b) Incidence
Thesubsidy isintheformofaconsumer funded payment made directly tofarmers whoproduce
manufacturing milk. Support isdelivered tofarmers whoproduce manufacturing milkthrough increases
intheprice ofmanufactured dairy products todomestic consumers created bythelevypaidonmilk
usedinthemanufacture ofdairy products. Levyratesaredetermined according tolegislated maximum
ratesofsupportwhicharereducedannuallyaccordingtoafixedreductionschedulewiththearrangements
toterminate intheyear2000.
(c) Amount ofSubsidy
Themilklevyraised $A147.986 million in1995/96. Thisisequivalent toaperunitlevelof
support of2.15cents perlitreonmanufacturing milkproduction of6,878 million litres.
2. Effects ofSubsidy
(a) Trade Effects
Manufacturers export atworld parity prices without anyexport subsidisation. Hence there
arenotrade effects resulting from thisdomestic subsidy.
VI. MACHINE TOOLS AND ROBOTS
1. Nature andExtent ofBounty
(a) Background andAuthority
TheBounty (Machine Tools andRobots) Act1985came intoeffect on1July1985(under the
titleofBounty (Metal-Working Machines andRobots) 1985. Itspurpose istoassist certain sections
oftheAustralian machine toolindustry andisinlieuoftariff assistance. TheActwaslastamended
inJune1991.G/SCM/N/25/AUS
Page5
(b) Incidence
TheActprovides forpayment ofbounty ondomestically produced metal working machines,
machinesforworkingadvancedmaterials,robotsandcertainpartsandaccessories.Certainmodifications
toexisting machines alsoattracts bounty.
Thebounty ispaidattworates; ahigher rateforadvanced machinery andalower onefor
standard machinery.
(c) Amount ofBounty Paid
Year $A'000
1994/95 8,357
1995/96 6,475.6
2. Effect ofBounty
(a) Trade Effects
Thebounty isdesigned toencourage local production ofmachine tools byimproving
competitiveness against imports, without increasing thecoststructure ofuserindustries.
VII. PRINTED FABRICS
1. Nature andExtent ofBounty
(c) Amount ofBounty Paid
Year $A'000
1994/95 -412.7*
1995/96 80.3
*The minus signisinrelation tothereceipt ofanoverpayment toacompany inthe
previous financial year.
VIII. SHIPBUILDING
1. Nature andExtent ofBounty
(a) Background andAuthority
On7May1997 theAustralian Government announced itsintention tofurther extend bounty
assistance to30June1999. Thebounty willapply forcommitments entered intoby31December 1997,
defined aseither financial contracts orcommitments reflected inthebusiness orfinancial plans ofthe
companies concerned. Legislation toimplement thisdecision isstillinthedrafting stage.G/SCM/N/25/AUS
Page6
(c) Amount ofBounty Paid
Year $Amillion
1994/95 22.96
1995/96 23.73
IX. TEXTILE YARNS
1. Nature andExtent ofBounty
(c) Amount ofBounty Paid
Year $A'000
1994/95 15,629
1995/96 5.9