WORLD TRADE
ORGANIZATIONG/SCM/N/71/EEC/Add.12
18 December 2001
(01-6193)
Committee on Subsidies and
Countervailing MeasuresOriginal:  English/
                  French
SUBSIDIES
Updating Notification Pursuant to Article XVI:1 of the GATT 1994
and Article 25 of the SCM Agreement
EUROPEAN COMMUNITIES
Addendum
The following addendum to the notification of the European Community relates to subsidy
programmes of Portugal .G/SCM/N/71/EEC/Add.12
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PORTUGAL
TABLE OF CONTENTS
Page
1. Energy Programme............................................................................................................. ..3
2. "IMIT – Initiative for the Modernization of the Textile Industry" .................................43. International Development Support Programme for Trade and Services (PAIEP II)...5
4. Strategic Programme for the Revitalization and Modernization of Portuguese 
Industry (PEDIP II)............................................................................................................ ..6
5. Trade Modernization Support (PROCOM) .......................................................................7
6. RETEX Operational Programme........................................................................................7
7. Regional Incentives System (SIR)........................................................................................8
8. Aid for shipbuilding and ship conversion...........................................................................9G/SCM/N/71/EEC/Add.12
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1. Energy Programme
1. Title of the subsidy programme
Energy programme
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To reduce the oil dependency by promoting the natural gas, fostering the use of renewable
energy resources and promoting energy efficiency in all sectors of the economy activity.
These energy objectives will have major impacts in the improvement of the Portuguese
economic competitiveness and will reduce energy environmental impacts.
4. Background and authority for the subsidy
Legal Basis :
- Community decision No. C(94) 376 and government law DL No. 195/94.
5. Form of the subsidy
Grants and Zero Interest Rate Loans.
6. To Whom and how the subsidy is provided
Subsidies can be granted to enterprises and municipalities according to the specific legislation
applied to each measure.  Subsidies are granted by the Ministry of Economy after the application has
been submitted to the approval of a Decision Committee in the Energy area. Subsidies are paid
according to the progress of the project.
7. The total amount or the annual amount budgeted for the subsidy/indicating, if possible, the
average subsidy per unit in the previous year.
The total amount of the commitments by Energy Programme in 1999 was:
(UNIT:  10 ECU)
Measures Community Grants
(FEDER)State Budget Total
Measure 1 – Natural Gas 27,311 0 27,311
Measure 2 – Renewable 2,285 0 2,285
Measure 3 – Energy Efficiency 12,485 4,162 16,647
                     Total 42,081 4,162 46,243G/SCM/N/71/EEC/Add.12
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8. Duration of the subsidy and/or any other limits attached to it
Measure 1 Grants:  no time-limits;
Measure 2 Zero Interest Rate Loans:  3 years granted period and 9 years reimbursement
period;
Measure 3 Grants:  No time limits;
Zero Interest Rate Loans:  2 years granted period and 5 years reimbursement
period.
9. The trade effects of the subsidy
No effects on international trade.
2. "IMIT – Initiative for the Modernization of the Textile Industry"
1. Title of Subsidy Programme
"IMIT – Initiative for the Modernization of the Textile Industry"
2. Period covered by the Notification
The year 1999.
3. Policy objective and purpose of the subsidy
To improve the competitiveness and to mode rnize the Portuguese textile and "clothes"
manufacturing sectors.
4. Background and authority for the subsidy
Legal Basis:
- Council of Ministers Resolution (RCM) Series No. 96-A/95 (DR 231/95 -I-B Series,
2ºSupl., 6 Oct. 1995), RCM NO. 116/98 (D R 217/98, 1-B Series, 19 Sept.) and RCM
No. 7/2000 (DR 9/2000, II Series, 12 Jan.);
- Decisions No. 61-A/B/C/ D/E/F/G/H/95 (DR 240/9 5, I-B Series, 3ºSupl.,
17 Oct. 1995), DN No. 22/99 (DR No. 97/ 99, I-B Series, 26 Apr.) and DN No. 63/99
(DR 273/99, I-B Series, 23 Nov.).
5. Form of the subsidy
Cash grants and/or reimbursable loans at zero interest rate.
6. To whom and how the subsidy is provided
Recipients:
Industrial companies of the textile and clothing sectors:  (Ref. 17, 181 and 182 of the
Portuguese Economic Activities Classification/C.A.E.);
Associations of Entrepreneurs, Chambers of Commerce;G/SCM/N/71/EEC/Add.12
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Non-profit-making organizations (official or private) providing services in "fashion and
design".
Subsidy allocation:
Subsidies are granted to industrial enterprises and/or applicant organizations on a case-by-
case basis.  Subsidies are granted by the Portuguese Ministry of Economy on application and they are
paid according to the progress of the approved project.
7. The total amount or the annual amount budgeted for the subsidy
Incentives given out during 2000 (approved projects):
(103 PTE)
Community funds
(75%)National budget
(25%)Total
Grant interest 647,313 215,771 863,084
Cash grants 10,084,416 3,361,472 13,445,888
Reimbursable loans 1,386,820 462,273 1,849,093
GRAND TOTAL 16,158,065
8. Duration of the subsidy and/or any other time limits attached to it
The initiative was implemented in 1995 and will remain available until 1999.
9. The trade effects of the subsidy
No specific economic studies have been carried out. Evaluation data for this item is not
available.
3. International Development Support Programme for Trade and Services (PAIEP II)
1. Title
International Development Support Programme for Trade and Services (PAIEP II)
2. Objectives
To promote the sustainable development of the competitiveness of trade and services
enterprises in the context of a coherent strategy for the modernization and globalization of their
activities.
3. Duration
The duration of the subsidy is 1994-1999
4. Legislative authority
Decree Law No. 290/94 of 14 November 1994Council of Ministers Resolution No. 121/94 of 15 December 1994G/SCM/N/71/EEC/Add.12
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5. Amount of the subsidy
Year:   2000
Government expenditure programmed: Esc 0
- Community subsidy Esc 0
- National subsidy Esc 0
Amounts approved and disbursed:
(millions of Esc)
Breakdown Approved Disbursed
Total 2,081,477 2,081,477
- Community 1,561,107 1,561,107Subsidy for
reimbursable financialco-participation at zero
interest rate- National 520,369 520,369
4. Strategic Programme for the Revitalization and Modernization of Portuguese
Industry (PEDIP II)
1. Title
Strategic Programme for the Revitalization and Modernization of Portuguese
Industry (PEDIP II).
2. Objectives
Assistance programme to revitalize the sustaine d growth of the competitiveness of Portuguese
enterprises in order to enhance their capacity to  respond to rapid technological and market changes,
while at the same time supporting the modernization, diversification and globalization of domestic
industry.
3. Duration
The duration of the subsidy is 1994-1999.
4. Legislative authority
Decree Law No. 177/94 of 27 June 1994Council of Ministers Resolution No. 50/94 of 1 July 1994
5. Amount of the subsidy
Year:  1999Government expenditure programmed:  Esc 281,830,364 millionAmounts approved and disbursed:G/SCM/N/71/EEC/Add.12
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(millions of Esc)
Approved Disbursed Disbursed
Grants plus reimbursable
financial co-participation1994-1999
347,028,1271994-2000
249,241,3272000
20,452,472
5. Trade Modernization Support (PROCOM)
1. Title
Trade Modernization Support Programme (PROCOM)
2. Objectives
To promote the sustainable development of the competitiveness of trade sector enterprises in
the context of a coherent strategy for the modernization of their activities.
3. Duration of the subsidy
The duration of the subsidy is 1994-1999.
4. Legislative authority
Decree Law No. 184/94 of 1 July 1994Council of Ministers Resolution No. 33/96 of 3 April 1996
5. Amount of the subsidy
Year:  2000Government expenditure programmed:  Esc 1,922,227 million
6. RETEX Operational Programme
1. Title
RETEX Operational Programme
2. Objectives
Community Initiative Programme on regional aid with the aim of facilitating the
modernization of the industrial fabric in regions strongly dependent on the textiles and clothing sector.
3. Duration
The duration of the subsidy is 1993-1999.
4. Legislative authority
Decisions ("Despachos normativos") Nos. 264, 265, 266 of 11 September 1993G/SCM/N/71/EEC/Add.12
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5. Amount of the subsidy
Year:  1994-1999
Government expenditure programmed:
(millions of Esc)
Risk Capital Fund 0
Reimbursable co-participation  6,639,201
Non-repayable subsidy 47,621,546
Amounts approved/disbursed:
(millions of Esc)
1994-1999 1994-2000 2000
Approved Disbursed Disbursed
Risk Capital Fund 0 0 0
Reimbursable co-participation*   7,125,831 6,418,619 2,538,319
Non-repayable subsidy 57,609,593 42,782,049 6,606,161
*Repayable financing at zero interest rate fo r an amount not exceeding 40 per cent of the total
financing necessary, with a ceiling of Esc 150 millions.  The duration is three to six years.
7. Regional Incentives System (SIR)
1. Title
Regional Incentives System (SIR)
2. Objectives
The objective of this regional assistance programme, which covers all the country's less-
developed inland and coastal regions, is to contribute to the endogenous development of those regions
by improving their competitiveness and helping to create jobs and thereby reduce migration, while
promoting diversification of the production of goods and services.
3. Duration
The duration of the subsidy is 1994-1999.
4. Legislative authority
Decree Law No. 193/94, of 19 July 1994Council of Ministers Resolution No. 67/94, of 11 August 1994
5. Amount of the subsidy
Year:  1994-1999
Government expenditure programmed:G/SCM/N/71/EEC/Add.12
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 (millions of Esc)
1994-1999 1994-2000 2000
Approved Disbursed Disbursed
Grants plus reimbursable
financial co-participation67,575,394 52,824,721 7,874,425
8. Aid for shipbuilding and ship conversion
1. Title
Aid for shipbuilding and ship conversion
2. Period
The notification concerns 1998, 1999 and 2000.
3. Objective
See information under point 6.
4. Legal basis
Decree Law No. 296/89 of 4 September establishing the aid regime for metal-hulled
shipbuilding and ship conversion (notified and approved by the European Commission in accordancewith the 7th Directive (90/684/EEC)), on aid to shipbuilding.
5. Form of the subsidy
Decree Law No. 296/89 provides for the grant of non-repayable subsidies.
6. To whom the subsidy is provided
Operational assistance for national shipyards leading to joint participation in shipbuilding or
ship conversion costs and compensation for losses.  This aid is subject to a common maximum ceiling
established annually by the European Commission, expressed as a percentage value of the contract
before aid which, in 1999, was 9 per cent for building ships of a contract value of more thanECU 10 million and 4.5 per cent for ships with a contract value of less than that amount and for ship
conversion.
7. Amount of the subsidy
The total amount of subsidies allocated in 1999 was (in Esc million):- 1,148 (1998)
- 1,627 (1999)
- 1,000 (2000)G/SCM/N/71/EEC/Add.12
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8. Duration of the subsidy
Decree Law No. 296/89 of 4 September entered into force on 5 September 1989 and is of
indefinite duration.
9. Trade effects of the subsidy
Statistical data not available.
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