WORLD TRADE
ORGANIZATIONG/AG/N/CYP/12
15 January 2003
(03-0193)
Committee on Agriculture Original:  English
NOTIFICATION
The attached notification concerning domestic support measures for the calendar year 2001
(Table DS:1  and the relevant Supporting Tables) was received from the delegation of Cyprus  on
2 December 2002.G/AG/N/CYP/12
Page 2Table DS:1
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 2001
Current Total Aggregate Measurement of Support
Total AMS commitment level for period in
questionCurrency Current Total AMS
(from Section 1 of Part IV of the Schedule) (from Section 1 of Part IV of the Schedule) (from attached Supporting Tables)
123
53.0 Million £C 28.36G/AG/N/CYP/12
Page 3Supporting Table DS:1
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 2001
Measures exempt from the reduction commitment - "Green Box"
Measure type Name and description of measure with reference to criteria in Annex 2 Monetary value of measure
in year in question
(£C)Data sources
123 4
(a) Total general services 78,549,516
(i) Research services
Research, including general research, research in connection with environmentalprogrammes, and research programmes relating to particular products.3,244,949 Budgets
(ii) Pest and disease control services
Pest and disease control, including general and product-specific pest and disease controlmeasures, such as early warning systems, quarantine and eradication.157,122
(iii) Training services
Agricultural training services provided by the Ministry of Agriculture and Natural
Resources and Environment to all farmers.58,475
(iv) Extension and advisory services
Extension and advisory services provided by the Ministry of Agriculture to all farmers.9,083,224
(v) Inspection services
Inspection of agricultural produce, including general inspection services and theinspection of particular products for health, safety, grading or standardization purposes.174,969
(vi) Veterinary services
Veterinary services, including veterinary public health, extension services, disease
control, veterinary inspection services, quarantine services, etc.5,362,795
(vii) Marketing and promotion services
- Expenses for providing general marketing and promotion services by the Ministry ofCommerce, Industry and Tourism
- Expenses for providing marketing and promotion services by the Vine Products
Commission.1,196,339
937,104G/AG/N/CYP/12
Page 4123 4
(viii) Infrastructural services
Capital expenses for providing for:- Rural development- Water development (dams, water treatment works, water supply, etc.)
- Land consolidation works
- Development of livestock areas and zones and other infrastructural works forlivestock (including works for environmental protection such as treatment of waste, etc.).58,334,539 Budgets
(b) Public stockholdings for food security purposes 7,536,469
Cyprus Grain Commission Services (operational expenses)
The Cyprus Grain Commission among other things also fulfils a public stockholding rolefor food security purposes by managing and controlling the import, storage anddistribution of grains.7,536,469 Cyprus Grain
Commission
(c) Payments for relief from natural disasters 9,138,086
(i)  Compensation through the Ag ricultural Insurance Organization
Compensation paid by the Government for the exceptional drought conditions and othernatural disasters which prevailed in 2000.  The compensation includes a) the contribution
of the Government to the Agricultural Insurance Scheme and b) the additional
compensation which was paid to farmers due to exceptional drought conditions, hailstorms, frost, etc.  For the additional compensation, the Agricultural InsuranceOrganization borrowed from the Cooperation Central Bank and the Government
undertook loan repayments.8,655,751 Budget
Department of
Agriculture
(ii)  Other compensations due to natural disasters
(1)
Compensation paid to potato growers for the enforcement of control against Ring Rot.482,335 Department of
Agriculture
(iii)  Loans
In the case of damages caused to crops and livestock by natural calamities, not covered
by the Agricultural Insurance Organization, the Government issued loans with subsidizedinterest rate.  The total amount of loans issued during 2001 was £C 40,231.
(d) Structural adjustment assistance conforming to Annex 2, paragraph 10 of the Agreement on Agriculture 1,771,763
. Package of measures to limit/stabilize dairy and beef production
Cyprus Notification on package of measures  to limit/stabilize dairy and beef production
is relevant.
(2)1,771,763 Department of
AgricultureG/AG/N/CYP/12
Page 5123 4
(e) Regional assistance programmes 4,127,139
Acreage payments to farmers in a disadvantaged region
The mountainous and hilly area in the Limassol and Paphos districts of Cyprus
(traditionally referred to as the wine-growi ng area because it was used solely for this
purpose since ancient times) is a disadvantaged area with very low production potentialbecause of poor shallow and calcareous soils.  A subsidy is paid annually on a per hectare
basis to all farmers.  Since vine growing is almost a monoculture in this region, the
subsidy covers all registered vineyards.  To the extent that farmers grow additional crops
(e.g. olives and almonds) they r eceive equivalent assistance.4,127,139 Vine Products
Commission
Total for all exempt measures of Supporting Table DS:1 101,122,973
1 Paragraph 8(a), Annex 2, Agreement on Agriculture.
2 Notification G/AG/N/CYP/2 concerning new or modified domestic support measures exempt from reduction is relevant.G/AG/N/CYP/12
Page 6Supporting Table DS:2
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 2001
Measures exempt from the reduction commitment Special and Differential Treatment – "Development Programmes"
Measure type Name and description of measure with reference to criteria in Article 6:2 Monetary value of
measure in year in
question
(£C)Data sources
12 3 4
(a)  Total investment subsidies generally available to agriculture 8,312,580
(i) Subsidies for piping, irrigation equipment and installation of improved irrigations
systems.Provision by the Department of Agriculture, of financial support, to farmers ofmountainous and semi-mountainous areas for piping, irrigation equipment and
installation of improved irrigation systems.25,000 Department of Agriculture
(ii) Subsidies for soil conservation works.
Provision of financial assistance by the Department of Agriculture for theconstruction of soil conservation works for agricultural development.199,311
(iii) Subsidies for citrus, deciduous a nd vines uprooting and/or replanting.
Provision of financial support by the Department of Agriculture for therestructuring of agricultural crops.6,484,454 Department of Agriculture
Vine Products Commission
(iv) Purchase of animals.
Subsidization of the purchase of selected breeding stock for livestock
improvement.57,864 Department of Agriculture
(v) Conservation of rare breeds of farm animals.
Subsidization of the purchase of genetically improved sows (hybrits) in order to
encourage the genetic improvement of the swine population.17,400
(vi) Subsidies for integrated livestock development.
Payments to livestock keepers for the relo cation of livestock units from residential
areas to livestock areas/zones.
Subsidies on the interest of loans made for the relocation and modernization of
livestock units.Subsidization of expenditure for the establishment of units for thetreatment/utilization of swinery waste/effluent.
Subsidies for the expenditure for the esta blishment of liquid feeding systems for
the utilization of whey for pig/cow feeding.1,030,365G/AG/N/CYP/12
Page 712 3 4
(vii) Subsidies for the modernization and improvement of farms in the crop production
sector.Provision by the Department of Agriculture of subsidies on the interest of loans inorder to encourage the technological upgrading, modernization and improvement
of farms in the crop production sector.498,186 Department of Agriculture
(viii) Low interest loans issued by the Cooperative Central Bank on behalf of the
government.
Agricultural loans were medium-term and long-term loans issued to farmers at a
subsidized interest rate of 5%, as from 1994 (it was previously 7%).  Themaximum legal lending rate in Cyprus is 9%.n.a. Loan Commissioners
Cooperative Central Bank
In 2001, total loans disbursed through agricultural development projects were
£C 607,920.  Subsidized credit was available through the following agricultural
development projects:
- Project for the development of floriculture
- Project for the improvement of vegetable cultivation
- Utilization of aromatic plants and encouragement of their cultivation
- Encouragement of young people to remain in rural areas- Integrated livestock development project.
(b)  Input subsidies generally available to low-income or resource-poor producers 2,120,750
(i) Subsidies for the encouragement of forage cultivation and hay making.
Provision of subsidies to farmers for fora ge cultivation (pasture development), for
silage and mainly for the production of hay with the objective to encouragelivestock keepers to use hay as feed, in proper quantities, thus replacing barley and
other concentrates.  A small percentage of the budgetary outlays is spent on field
trials.2,086,553 Department of Agriculture
(ii) Subsidies to plant protection associations.
Provision of subsidies to plant protection associations which cover part of the
expenses for pest and disease control, mainly for grapes and olives.34,197
Total for exempt measures, special and differential treatment 10,433,330G/AG/N/CYP/12
Page 8Supporting Table DS:4
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 2001
Calculation of the Current Total Aggregate Measurement of Support
Description of basic products
(including non-product specific
AMS)Product-specific AMS (from Supporting
Tables DS:5 to DS:7 below)
(£C)Product-specific equivalent
measurements of support (from
Supporting Table DS:8 below)
(£C)Current Total AMS (aggregate)
(£C)
12 3 4
Wheat 859,740 859,740
Barley 10,260,155 10,260,155
Wine grapes 2,406,898 2,406,898
Livestock products (Feedgrain subsidy) 8,671,337 8,671,337
Edam cheese 650,177 650,177
Tobacco 612,000 612,000
Carobs 298,504 298,504
Apples 700,097 700,097
Raisins 27,281 27,281
Olive oil 3,869,201 3,869,201
Non-product-specific AMS 0
Total:  Current Total AMS 24,486,189 3,869,201 28,355,390G/AG/N/CYP/12
Page 9Supporting Table DS:5
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 2001
Product-Specific Aggregate Measurements  of Support:  Market Price Support
Description of basic
productsCalendar year
2001Measure type(s) Applied
administered
price
(£C/tonne)External
reference
price
(generally
from
AGST/…)
(£C/tonne)Eligible
production
(tonnes)Associated
fees/levies
(£C)Total market
price support
(£C)Data sources
123 4 5 6 7 8
(4-5)*6)-79
Wheat
(10.01)Fixed producer
prices145 CIF 63.12110,500 859,740 (a) Department of Statistics
and Research, Ministry ofFinance
(b) Imports and Exports
Statistics 1986-1988,Nicosia, Department ofStatistics and Research,Ministry of Finance.
(c) Cyprus Grain
Commission
Barley
(10.03)Fixed producer
prices126.5 CIF 38.432116,500 10,260,155 (a) Department of Statistics
and Research, Ministry of
Finance
(b) Imports and Exports
Statistics 1986-1988,
Nicosia, Department of
Statistics and Research,Ministry of Finance
(c) Cyprus Grain
Commission
1External reference price used £C 63.12/tonne.
2External reference price used £C 38.43/tonne.G/AG/N/CYP/12
Page 10Supporting Table DS:6
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 2001
Product-Specific Aggregate Measurements of  Support:  Non-Exempt Direct Payments
Description of
basic productCalendar
year 2001Measure type(s) Applied
administere
d price
(£C/tonne)External
reference
price
(generally
from
AGST/…)
(£C/tonne)Eligible
production
(tonnes)Total price-
related direct
payments
(£C)Other non-
exempt direct
payments
(£C)Associated
fees/levies
(£C)Total
direct
payments
(£C)Data sources
1 2 3 4567
((4-5)*6))89 1 0
(7+8-9)11
Wine grapes
(wine of freshgrapes 22.04)(i) Subsidy by weight
of wine grapes(ii) Subsidy on
Commandaria wine,
by volume(iii) Withdrawal ofsurplus production2,343,372
59,729
3,7972,343,372
59,729
3,797Final Accounts,
Vine ProductsCommission.
(Budgetary
outlays)
Total 2,406,898
Edam cheese )
Tobacco )
Carobs )
Apples )Raisins )Product-specific
direct payments650,177
612,000
298,504
700,097
27,281650,177
612,000
298,504
700,097
27,281Treasury,
Ministry of
Finance
Citrus )Bananas )
Fruit from deciduoustrees other thanapples Groundnuts )
Tomatoes )
Sheep and goatproducts )Product-specific
direct payments
de minimis
1259,406
55,704
627,693
28,125
7,158
2,533,868259,406
55,704
627,693
28,125
7,158
2,533,868Treasury,
Ministry of
Finance,Department ofStatistics and
Research,
Ministry ofFinance
1Support does not exceed 10 per cent of the total value of production of each of these products for the relevant year.  Under  t he provisions of Article 6.4 of the Agreement on
Agriculture, support falling below the de minimis  level need not be included in the calculation of the Current Total AMS .G/AG/N/CYP/12
Page 11Supporting Table DS:7
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 2001
Product-Specific Aggregate Measurements of Support:  Other Product-Specific Support and Total Product-Specific AMS
Description of
basic productCalendar year
2001Measurement
type(s)Other
product-
specific
budgetary
outlaysOther product
specific
support
(include
calculation
details)Associated
fees/levies
(£C)Total
other
product-
specific
supportMarket
price
support
(Supporting
Table DS:5)
(£C)Non-exempt
direct
payments
(Supporting
Table DS:6)
(£C)Total AMS
(£C)Data sources
12 3 4 5 6 7
(4+5-6)89 1 0
(7+8-9)11
Wine grapes
(wine of freshgrapes 22.04)- Subsidy by weight of wine
grapes- Subsidy on Commandaria wine,by volume
- Withdrawal of wine grapes2,406,898 2,406,898 Final Accounts
Vine ProductsCommission.(Budgetary outlays)
Wheat(10.01)Fixed producer prices 859,740 859,740
Barley
(10.03)Fixed producer prices 10,260,155 10,260,155(a) Department of
Statistics andResearch, Ministry
of Finance
(b) Imports and
Exports Statistics1986-1988, Nicosia,
Department of
Statistics andResearch, Ministryof Finance
(c) Cyprus Grain
Commission
G/AG/N/CYP/12
Page 1212 3 4 5 6 7
(4+5-6)89 1 0
(7+8-9)11
Livestock products Feedgrain
subsidy8,671,337 8,671,337 8,671,337
Meat (beef, mutton
and lamb, goats andkids, pork, poultry,
other meat), milk,
eggs*Cyprus Grain
Commission
*The fixed external reference price used was:  £C 58.11/tonne.
Edam cheese )
Tobacco )Carobs )Apples )
Raisins )Product-specific
direct payments650,177
612,000298,504700,097
27,281650,177
612,000298,504700,097
27,281Treasury, Ministry
of Finance
Citrus )Bananas )
Fruit from
deciduous treesother than applesGroundnuts )Tomatoes
Sheep and goat
products )Product-specific
direct payments
de minimis
1259,406
55,704
627,693
28,125
7,158
2,533,8680
0
0
0
0
0Treasury, Ministry
of Finance.
Department of
Statistics andResearch, Ministryof Finance
1Support does not exceed 10 per cent of the total value of productions of each of these products for the relevant year.  Under t he provisions of Article 6.4 of the Agreement on
Agriculture, support falling below the de minimis  level need not be included in the calculation of the Current Total AMS.
Estimated values of production for 2001 (provisional) (in £C) Citrus 16,960,080
Bananas 4,410,000Fruit from deciduoustrees other than apples 12,029,650Groundnuts 1,530,000
Tomatoes 10,125,000
Sheep and goat products 39,334,000 (meat and milk only)G/AG/N/CYP/12
Page 13Supporting Table DS:8
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 2001
Product-Specific Equivalent Measurements of Support *
Description
of basic
productsCalendar
year 2001Measure
type(s)Applied
administered
price
(£C/tonne)Production
eligible to
receive the
applied
administered
price
(tonnes)Market
price
support
budgetary
outlays
(£C)Equivalent
measurement
of support
(include
calculation
details)Non-
exempt
direct
paymentsOther
product-
specific
supportAssociated
fees/leveesTotal
monetary
value of
equivalent
commitmentData sources
12 3 4 5 678 9 1 0 1 1
(7+8+9-10)12
Olive oil Calendar
yearFixed
producerprice2,300 3,000** 3,869,201 3,869,201 3,869,201 Cyprus Olive
ProductsMarketing
Board.
Department ofStatistics andResearch,Ministry of
Finance.
The AgriculturalSituation in theEuropean Union,
1998 Report,
EuropeanCommission,Brussels -
Luxembourg,
1999.
External reference price 1998 (as from 1999 only Production Market Price exists):  1,751.60 ECU***/tonne or 1,010.27 £C/tonne ( intervention price 1997/98)
Notes:
* It is noted that with respect to equivalent commitments, Cyprus undertook a commitment only on the basis of the difference bet ween future contemporaneous prices, i.e. future
administered and future external reference prices.
** Preliminary estimate.*** 1 Cyprus pound (£C)   = 1.7338 ECU (end December 2001)
__________