RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/GEO/2/Add.2  
6 October 1998 
 (98-3862) 
Working Party on the 
Accession of Georgia Original:   English 
 
 
  
ACCESSION OF GEORGIA 
 
Communication from Georgia
 
 
Addendum  
 
  The following additional information on domestic support and export subsidies in agriculture 
has been received from the Permanent Mission of Geor gia, with the request that it be circulated to 
Working Party members.   
_______________ 
  
  
 WT/ACC/SPEC/GEO/2/Add.2 
Page 2 Supporting Table DS:1  
DOMESTIC SUPPORT:  GEORGIA 
REPORTING PERIOD: Calendar year 
 
Measures exempt from the reduction commitment - "Green box"   
 
 
Measure type  
Name and description of  measure with reference  to 
criteria in Annex 2 of the Agreement on Agriculture  
Monetary value in year 
in question 
(Thousand Lari)  
Data sources 
1 2 3 4 
General services General research (para. 2a) Scientific Research Institute of Agriculture 
Biotechnology. 
Technical–Ecological Research Centre. 
Agricultural Machinery State Inspection Centre.  Commission on Seed Selection and Protection Breeding Factories  Breeding Factories of Artificial Insemination  Ministry of Agriculture and Food 
 1995 
1996 1997 34,1 
77,6 
206,4  
General services: 
Pest and disease control (para. 2b) Regional Veterinary Stations. 
Domestic Epizootic measures.  Poti Quarantine Station. Plant Protection Measures.  Ministry of Agriculture and Food 
 1995 
1996 1997 620,3 
635,4 
1854,1  
General  services:  
Training services (para. 2c) State Institute of Agricultural Business  
State Institute of Business  Ministry of Agriculture and Food 
 1995 
1996 
1997 - 
9,7 
42,8  
General services: 
Extension and advisory services (para.  2d) Magazine "Kvali"  Ministry of Agriculture and Food 
 1995 
1996 1997 - 
4,0 5,0   
  WT/ACC/SPEC/GEO/2/Add.2
 Page 3  
Measure type  
Name and description of  measure with reference  to 
criteria in Annex 2 of the Agreement on Agriculture  
Monetary value in year 
in question 
(Thousand Lari)  
Data sources 
1 2 3 4 
General services: Inspection services (para. 2e) State Seed Inspection. 
Plant Quarantine State Inspection.  Ministry of Agriculture and Food 
 1995 
1996 1997 33,6 
89,1 
146,9  
General services: 
Infrastructure services (para. 2g) Construction of Irrigation Systems. 
Farm Melioration  Reforestation Soil  Improvement  Ministry of Agriculture and Food 
 1995 
1996 1997 3372,9 
3916,1 5957,5  
Payments for relief from 
natural disasters (para. 8a) Tea Industry Rehabilitation Programmes  (See 
Annex A).  Ministry of Agriculture and Food 
 1995 
1996 
1997 - 
- 
1000,0  
Payments for relief from 
natural disasters (para. 8a) Viniculture Promotion Programmes  (See Annex B).  Ministry of Agriculture and Food 
 1995 
1996 1997 - 
1500,0* 
1500,0  
Total: 
1995 
1996 
1997   
4060,9 
6231,9 
10712,7  
1995-1997 avg.  7001,8  
 
*  This is the value of the subsidy. Cr edit totalling 6 million Lari was made availa ble at 24 per cent interest.  The commercia l rate is approximately 45-50 per cent.  
Therefore, the annual value of the subsidy is 26 (50-24) per cent of 6 million Lari, or is approximately 1,5 million Lari.   
  
 WT/ACC/SPEC/GEO/2/Add.2 
Page 4 Supporting Table DS:2 
 
DOMESTIC SUPPORT:  GEORGIA 
REPORTING PERIOD:  Calendar year 
 
Measures exempt from the reduction commitment - Special and Different Treatment - "Development Programmes" 
 
 
Measure type 
  
Name and description of measure  with reference to 
criteria in Article 6.2 of the Agreement on Agriculture   
Monetary value in year in question, 
(Thousand Lari) 
  
Data sources 
1 2 3 4 
  
No "Development Programmes"  Subsidies were provided in 1995, 1996, 1997. 
  
 
 
 Georgia reserves the right to maintain or introduce measures ex empted from reduction pursuant to Article 6.2 of the Agreement on Agriculture. 
  
  WT/ACC/SPEC/GEO/2/Add.2
 Page 5 Supporting Table DS:3 
DOMESTIC SUPPORT:  GEORGIA 
REPORTING PERIOD:  Calendar year 
 
Measures exempt from the reduction commitment - Dir ect Payments under Production-Limiting Programmes 
"Exempt Direct Payments" 
 
 
 
Measure type 
  
Name and description of measure  with reference 
to Annex 2   
Monetary value in year in question 
(Thousand Lari)  
Data sources 
1 2 3 4 
 
 
No "Direct Payment" subsidies were provided in 1995,1996,1997 
 
   
 WT/ACC/SPEC/GEO/2/Add.2 
Page 6 Supporting Table DS:4 
 
DOMESTIC SUPPORT:  GEORGIA 
REPORTING PERIOD:  Calendar year 
 
Calculation of the Total Aggr egate Measurement of Support 
(1995-1997) 
 
 
Description of basic 
products (including 
non-product-specific 
AMS)  
Product-specific 
AMS 
(from Supporting 
Tables DS:5 to DS:7 
below) 
(1,000 Lari)  
Product-specific 
measurement of 
equivalent level of 
support (from 
supporting Table 
DS: 8 below) 
(1,000 Lari) 
  
Current Total AMS 
(aggregate) 
(1,000 Lari)  
Value of production 
(1,000 Lari)  
% of production  
Data sources 
1 2 3 4 5 6 7 
 
None  
0  
0  
0  
7,136,000  
0  
Ministry of Agriculture and Food 
 
No non-exempt subsides of any kind  were provided 1995, 1996, 1997. 
 
  
 Georgia wishes to avail itself of the de minimis exemption pursuant to Article 6.4 (b) of the Agreement on Agriculture. 
  
  WT/ACC/SPEC/GEO/2/Add.2
 Page 7 Supporting Table DS:5 
DOMESTIC SUPPORT:  GEORGIA 
REPORTING PERIOD:  Calendar year 
 
ProductSpecific Aggregate Measurement of Support:  Market Price Support 
 
 
Description of 
basic products  
Calendar year 
beginning  
Measure type  
Fixed 
administered 
price   
Reference price 
Eligible 
production  
Associated 
levies  
Total market 
price support  
Data sources 
1 2 3 4 5 6 7 8 9 
  
No Market Price Support Subsidies were provided in 1995, 1996, 1997 
  
   
 WT/ACC/SPEC/GEO/2/Add.2 
Page 8 Supporting Table DS:6 
DOMESTIC SUPPORT:  GEORGIA 
REPORTING PERIOD:  Calendar year 
 
Product-Specific Aggregate Measurement of Support 
 
 
Description 
of basic 
product  
Year  
Measure 
type  
Applied 
administered 
price  
External 
reference 
price  
Eligible 
production  
Total  
price-
related 
direct 
payment  
Other non-
exempt 
direct 
payment  
Associated 
fees/levies  
Total direct 
payment  
Data 
sources 
1 2 3 4 5 6 7 
((4-5)*6) 8 9 10 
(7+8-9) 11 
 
  
No Non-Exempt Direct Payments Subsidies were provided in 1995, 1996, 1997  
 
 
  
  WT/ACC/SPEC/GEO/2/Add.2
 Page 9 Supporting Table DS:7 
DOMESTIC SUPPORT:  GEORGIA 
REPORTING PERIOD:  Calendar year 
 
Product-Specific Aggregate Measurement of Suppor t:  Other Product-Specific Support and Total  
 
Product-Specific AMS 
 
 
Description 
basic 
products  
Calendar 
year  
Measure 
type  
Other 
product- 
specific 
budgetary 
outlays 
(1,000 Lari) 
  
Other product- 
specific 
support 
(1,000 Lari)  
Associated fees 
and levies 
(1,000 Lari)  
Total other 
product- 
specific 
support 
(1,000 Lari)  
Market price 
support 
(DS:5) 
(1,000 Lari)  
Non-exempt 
direct 
payments 
(DS:6) 
(1,000 Lari)  
Total AMS 
(1,000 Lari)  
Data sources 
1 2 3 4 5 6 7 8 9 10 11 
 
 
No subsidies of this sort were provided in 1995, 1996, 1997  
  
  
 WT/ACC/SPEC/GEO/2/Add.2 
Page 10 Supporting Table DS:8 
DOMESTIC SUPPORT:  GEORGIA 
REPORTING PERIOD:  Calendar year 
 
Product-Specific Equivalent Measurements of Support  
 
 
Description 
of basic 
products  
Calendar year
beginning  
Measure 
type  
Applied 
administered 
price  
Production 
eligible to 
receive 
applied 
administered 
price 
  
Market 
price support 
budgetary 
outlays  
Equivalent 
measurements 
of support 
(include 
calculation 
details  
Non-exempt 
direct 
payments  
Other 
product-
specific 
support  
Associated 
levies and fees 
Total support 
equivalent to 
assistance  
Data sources 
1 2 3 4 5 6 7 8 9 10 11 12 
  
No subsidies of this sort were provided in 1995, 1996, 1997  
 
 
 
  
  WT/ACC/SPEC/GEO/2/Add.2
 Page 11 Supporting Table DS:9 
DOMESTIC SUPPORT:  GEORGIA 
REPORTING PERIOD:  Calendar year 
 
Non-Product-Specific AMS 
 
 
Measure type  
Calendar year  
Non-product-
specific budgetary 
outlays 
(1,000 Lari)  
Other non-product-
specific support 
(incl. calculation 
details) 
(1,000 Lari) 
  
Associated  
fees/levies 
(1,000 Lari)  
Total non-product-
specific budgetary 
outlays 
(1,000 Lari)  
Data sources 
1 2 3 4 5 6 7 
  
No subsidies of this sort were provided in 1995, 1996, 1997 
 
 
  
 WT/ACC/SPEC/GEO/2/Add.2 
Page 12 Supporting Table ES:1 
DOMESTIC SUPPORT:  GEORGIA 
 REPORTING PERIOD:  Calendar year 
 
Export Subsidies:  Outlay and Quantity 
 
 
Description of 
products  
Direct export 
Subsidies  
Sale of stocks  
Producer 
financed 
subsidies  
Cost reduction 
measures  
Internal transport 
subsidies  
Total product 
specific export 
subsidies  
Quantity of 
subsidized 
exports 
  
Data source 
1 2 3 4 5 6 7 8 9 
  
No subsidies of this sort were provided in 1995, 1996, 1997  
 
 
 
 
 
  WT/ACC/SPEC/GEO/2/Add.2 
 Page 13 
 
 
 ANNEX A 
 
  Two wars, the 1991-1992 Civil War and the 1993-1994 War in Abkhazia and Samegrelo 
virtually destroyed the Georgian tea industry.  As seen from the table below tea production declined 
sharply in 1991-1992, and again after the 1993-1994 war.  
  
 
Year 
  
Collected tea 
(thousand tons) 
 
1988 
 458.7 
1989 
 497.5 
1990 
 516.7 
1991 
 451.9 
1992 
 212.3 
1993 
 132.5 
1994 
 61.6 
1995 
 36.8 
1996 
 31.7 
1997 
 34.4 
1998 
 25.0 
 
 Average production in 1989-90 (before the 1991-92 war) was 491 thousand tons. The average after 1994 war only 34.3 thousand tons, or less than 7% of the pre-war average.  WT/ACC/SPEC/GEO/2/Add.2 
Page 14  
 
 ANNEX B 
 
  The 1991-1992 Civil War severely damaged Georgi an viniculture.  As shown below, grape 
production declined significantly after the war. 
 
 
Year 
  
Produced wine 
(thousand decalitres) 
 
1988 
 15,806 
1989 
 17,335 
1990 
 16,271 
1991 
 12,743 
1992 
 9,097 
1993 
 5,205 
1994 
 4,000 
1995 
 4,123 
1996 
 2,241 
1997 
 2,231 
 
 
 Average production in 1988-90 (before the 1991-1992 war) was 16,470 thousand decalitres. 
The average in 1993-1995 was only 4,443 thousand decalitres, or approximately 27 per cent of the 
pre-war average.  
__________