. /.WORLD TRADE
ORGANIZATIONG/SCM/93
17 December 2002
(02-6945)
Committee on Subsidies
and Countervailing Measures
EXTENSION OF THE TRANSITION PERIOD UNDER ARTICLE 27.4 OF THE
AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES FOR THE
ELIMINATION OF EXPORT SUBSIDIES PURSUANT TO PARAGRAPH 10.6 OF THE
MINISTERIAL DECISION ON IMPLEMENTATION-RELATED ISSUES AND CONCERNS
COLOMBIA
Free-Zone Regime
Decision of 13 December 2002
1. The Committee on Subsidies and Countervailing Measures (the “Committee”),
2. As directed  by the Fourth Ministerial Conference, in its Decision on Implementation-Related
Issues and Concerns, (WT/MIN(01)/17, 20 November 2001) (“the Decision”);
3. In following  the “Procedures for Extensions Under Article 27.4 for Certain Developing
Country Members” (G/SCM/39, 20 November 2001) (“the Procedures”);
4. Taking into account  the request and other notified information provided by Colombia to the
Committee1, pursuant to paragraph 10.6 of the Decision for Free-Zone Regime ("the programme");
5. Recognising with appreciation  the efforts by Colombia, in light of its capacity constraints,
during the review of the Committee, to describe and clarify the provisions of the programme;
6. Considering  for the purposes of this decision, Colombia to be a developing country Member
eligible to request an extension pursuant to Article 27.4 of the Agreement on Subsidies and
Countervailing Measures ("SCM Agreement");
7. Noting that Colombia recognises that it must satisfy obligations under the transparency and
standstill provisions contained in paragraphs 3 and 4 of the Procedures;
8. Noting  that Colombia hereby commits itself
(i) not to modify the programme at any time so as to make it more favourable,
including as to the scope, coverage and intensity of benefits, than it was as at
                                                     
1 The notified information on the basis of which this decision is taken, is found in documents
G/SCM/N/74/COL, G/SCM/N/74/COL/Suppl.1, G/SCM/N/71/COL, and G/SCM/Q3/COL/1 to
G/SCM/Q3/COL/20.G/SCM/93
Page 2
1 September 2001, as specified in the full notification of the programme that
accompanied the request for extension2;
(ii) to provide adequate transparency in respect of the operation of the
programme, on an annual basis through notifications of the programme
following the agreed format for subsidy notifications under Article 25 of theSCM Agreement and review by the Committee, pursuant to the Procedures;
9. Hereby grant s to Colombia, subject to the terms contained herein, an extension, until
31 December 2003, of the transition period, under Article 27.2(b) of the SCM Agreement, for the
elimination of export subsidies which take the form  of full or partial exemptions from import duties
and internal taxes and which were in existence under the programme on 1 September 2001.
10. The period  during which the extension hereby granted can be continued on the basis of the
Procedures is through the end of calendar year 2004.  Such continuation shall be subject to annual
review by the Committee for the purposes of and subject to the conditions set forth in paragraphs 1(d)
and 1(e) of the Procedures, and to the terms set forth below:
(i) Colombia will ensure the conformity of its laws and regulations with its
commitments under this decision.  The transition period for the elimination of
the export subsidies as described in paragraph 9 shall not, in any case, be
extended beyond 2006, including the final two-year period provided for in
the last sentence of Article 27.4 of the SCM Agreement.  In consequence, the
Colombian authorities shall adopt appropriate actions to comply with thisdecision.  Among such actions, Colombia shall undertake the reform of its
legislation by 30 June 2003 so as to bring it into conformity with this
decision;
(ii) Colombia waives its right to request a continuation of the extension pursuant
to Article 27.4 of the SCM Agreement, as described in paragraph 1(f) of theProcedures, for the programme;
(iii) Colombia waives its right to make use of the full period provided for under
paragraph 1(e) of the Procedures, for the programme.
11. This decision  does not affect the legal rights of Members with respect to any other obligations
of Colombia under the SCM Agreement that may apply to the programme.  Among such other
obligations, it is recognised that this programme remains subject to Article 3.1(b) of the SCM
Agreement, which prohibits subsidies contingent, whether solely or as one of several other conditions,upon the use of domestic over imported goods.
12. This decision  does not affect any rights, obligations or commitments of Members under any
other WTO Agreement with respect to the programme; and is without prejudice to the existing and
future relationship between the SCM Agreement and any other WTO Agreement; and has noprecedential value for any other purpose.
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2 G/SCM/N/71/COL.