WORLD TRADE  
ORGANIZATION  G/SCM/Q2/EEC/43/Suppl.1 
19 April 2004 
 (04-1757) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Questions from the UNITED STATES Regarding the New and Full  
Notification of the EUROPEAN COMMUNITIES1 
 
Supplement  
  The following communication, dated 16 April 2004,  is being circulated at the request of the 
Delegation of the United States 
 
_______________ 
 
 
FRANCE (G/SCM/N/95/EEC/Add.5
) 
 
 
I. R&D Schemes 
 1. Tax Credit to Promote Research   
(a) Would you please list the main industries that have benefited from assi stance provided under 
this programme? 
 (b) Please provide information regarding the st ages of R&D encompassed under this programme 
and what costs are covered by this assistance.  
 2. Industrial Innovation Fund (FII)  
(a) Would you please list the main industries that have benefited from assi stance provided under 
this programme? 
 
(b) Would you please provide information as to wh at percentage of the repayable advances 
provided under this programme have actua lly been repaid to the government? 
 
3. National Agency for the Promotion of Research (ANVAR) 
 
(a) Would you please list the main industries that have benefited from assi stance provided under 
this programme? 
 (b) Would you please provide information as to wh at percentage of the repayable advances 
provided under this programme have actua lly been repaid to the government? 
 
                                                     
 
1 G/SCM/N/95/EEC/Add.5 & G/SCM/N/95/EEC/Add.15. G/SCM/Q2/EEC/43/Suppl.1 
Page 2  
 
 4. Aid to Research Institutions in the Civil Aviation Sector  
 Civil Aviation Research  
(a) Please explain what the specific eligibility criteria are to receive funding under these 
programmes. 
 
(b) Are non-French or non-EU companies eligible?   Are the research r esults in all instances 
proprietary, or are they made available to the public? 
 (b) How are aerospace manufacturers involved in this research?  How do they benefit from it? 
 
5. Launch Aid 
 
 In response to US questions regarding this programme in previous years, France has not 
disputed that launch aid has been provided to the aerospace industry and has simply asserted that such 
aid does not constitute a subs idy because it is repayable. 
 (a) Is it France’s position that the repayable ai d provided cannot be cons idered a subsidy under 
the Subsidies Agreement regardless of the te rms and conditions under which such aid is 
provided?  If so, please explain. 
 
(b) Please describe in detail the amounts of launch aid provided in 2002, the dates the aid was 
provided, the terms and conditio ns under which the aid was provided and the aircraft models 
to which the aid was related. 
 (c) Please provide the sales projections which the Government of France relied upon prior to the 
provision of any launch aid for each of the releva nt aircraft models wh ich benefited in 2002. 
 
6. Funding for A380 production and infrastructure 
 
 The United States understands that, during the current reporting period, various levels of 
governments within France are providing approxima tely €150 million for improvements necessary for 
the transport of outsized Airbus A380 components between Langon and Toulouse, France.  In 
addition, it is our understanding that the government of France has also supplied Airbus with infrastructure support in the areas of Nantes and Toul ouse.  For example, the Government of France 
reportedly provided funding of €125  million for a new urban development project in the Toulouse 
area, most of which reportedly was for the building of a large assembly plant that will accommodate 
the Airbus A380.  Further, information indicates th at the Airbus facility in  Nantes was expanded for 
the A380 and other Airbus programmes at a cost of FF1.1 billion ($147 million).   (a) Would you please confirm whether the above information is correct?  If not, please provide 
the correct figures. 
 
(b) Please explain why this assistance to the aerospace industry does not qualify as notifiable 
under Article 25 of the Subsidies Agreement.  If it does qualify as notifiable, please provide the information required under Article 25.  
  G/SCM/Q2/EEC/43/Suppl.1 
 Page 3 
 
 
 UNITED KINGDOM (G/SCM/N/95/EEC/Add.15 ) 
 
 
1. Aeronautics Research Programme 
 (a) Would you please explain whether the require ments to receive aid under the Aeronautics 
Research Programme differ from those specified under the CARAD programme?  If so, please provide information regarding the conditions that must be met for a research establishment or university to r eceive funding under this programme. 
 
(b) Are non-UK or non-EU entities eligible for assistance under this programme? 
 
2. Cleaner Coal R&D Programme 
 
(a) One of the stated policy objectives of the Cl eaner Coal R&D Programme  is to "promote the 
development and export of environmentally  friendly technologies".  Would you please 
explain in what way this programme provid es assistance to promote export and development 
of such technology and what cost s are covered in this regard?   
 
3. Home Shipbuilding Credit Guarantee Scheme 
 (a) To what extent does the government guarant ee lower the interest rate paid on the loan 
guaranteed?   
 
4. Launch Investment for Civil Aerospace Projects 
 (a) Please describe in detail the terms and conditions ( e.g., the rate of return or interest rate 
expected) under which the aid was provided and th e aircraft models or engines to which the 
aid was related. 
 (b) Please provide the sales projections which the Government of the United Kingdom relied 
upon prior to the provision of any launch aid for each of the relevant aircraft models or 
engines which benefited in 2002. 
 
5. Support to Airbus 
 
 It is our understanding that, in addition to EC loans to Airbus at near government cost of 
funds, the government of the United Kingdom has also  supplied Airbus with infrastructure support in 
the area of Broughton.  Specifically, information indicates that  the UK provided $30.2 million in 
order to build a wing factory in the area.    (a) Would you please confirm whether the above information is correct?  If not, please provide 
the correct figures. 
 
(b) Please explain why this assistance to the aerospace industry does not qualify as notifiable 
under Article 25 of the Subsidies Agreement.  If it does qualify as notifiable, please provide the information required under Article 25.  
 6. Fisheries 
 
 This notification did not include any informa tion regarding fisheries subsidies administered 
by the United Kingdom.  The United States understands that the United Kingdom administers the G/SCM/Q2/EEC/43/Suppl.1 
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 following programmes to the benefit of the fisher ies industry, which were outlined in document 
G/SCM/Q2/EEC/40,  Replies by the European Communities to Questions posed by the United States : 
 1. Grants Towards the Acquisition of Fresh water Fishing Vessels and Engines (Northern 
Ireland) 
 
2. Aid to Highlands and Island s Fish Farmers and Processors 
 3. Highland Prospect Limited: Fish Processing and Fish Farming Loans  
4. Highland Opportunity Limite d: Fishing Vessel, Fish Processing and Fish Farming Loans 
 5. Aid to Highlands and Islands Fishermen  6. Safety Improvements on Fishing Vessels 
 
7. The Fish Producer’s Organization (Formation Grants) Scheme  8. Relief from Excise Duty on Mineral Oil used on Commercial Marine Voyages  9. Fisheries and Aquiculture (Wales) 
 
10. Small Firms Loan Guarantee Scheme (SFLGS)  (a) Would you please explain why these programmes have not been notified?  If notifiable, 
please provide the required information regardi ng these programmes pursuant to Article 25 of 
the Subsidies Agreement and explain whether ove rcapacity is taken into account prior to 
providing assistance. 
 
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