RESTRICTED  
 WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/ARM/4 
12 February 1999 
 (99-0564) 
  
Working Party on the  
Accession of Armenia Original: English 
 
 
ACCESSION OF ARMENIA 
 
Export Subsidies and Domestic Support  
 
 
 The Ministry of Industry and Trade of the Republic of Armenia has submitted the following 
information on export subsidies and dom estic support in the agriculture sector. 
 
_______________ 
  
 WT/ACC/SPEC/ARM/4 
Page 2 Supporting Table DS:1 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Measures exempted from the reduction commitment - "Green Box" 
 
thousand US$ 
Measure type Name and description of measure with reference to criteria 
annex 2 of the Agreement on Agriculture Monetary value of 
measure 
in year in question Data sources 
1 2 3 4 
(a) General  Services:   
    
 Research  
    
1995 
1996 1997 
 
Average 
 Research programs in agriculture financed by the state: soil and 
plant nutrition research program, plant breeding program, animal breeding program, animal genetic  research program . Annex 2 
Paragraph 2(a) 145.04 
270.15 132.33 
 
182.51 
  
State Budget 
 Pest and disease control:
 
    
1995 
1996 
1997 
 
Average Programs financed by the state in plant and livestock sectors: 
prevention from the dissemination of pests and disease, plant 
protection, veterinary services to keep healthy and qualitative 
herd, control of sanitary conditions in animal breeding farms, anti epizootic measures. Annex 2 paragraph 2 (b) 1,580.00 
1,420.80 
1,279.73 
 
1,426.84 
  
State Budget 
 Training services
: 
    
1995 
1996 1997 
 
Average Agricultural Reform Support Project - training courses for 
representatives of regional agricu ltural agencies on agricultural 
inventory record keeping. Annex 2 paragraph 2 (c)   - 
- 
29.92 
 
9.97 
  
MAG or RA
1 
    
                                                      
1 Ministry of Agriculture of the Republic of Armenia  
  WT/ACC/SPEC/ARM/4
 Page 3Measure type Name and description of measure with reference to criteria 
annex 2 of the Agreement on Agriculture Monetary value of 
measure 
in year in question Data sources 
1 2 3 4 
 Extension and advisory 
 services :    
 
1995 
1996 
1997 
 
Average  
Computer services for creation of the information system, 
transfer of information on the results of scientific research (plant 
and animal variety, development and utilization of agromachinery) to farmers, hydrometeorology service. Annex 2 paragraph 2(d)  
41.11 
63.23 
74.19 
 
59.51 
  
 
State Budget 
 Inspection Services
: 
    
1995 
1996 1997 
 
Average State inspection agencies for h ealth and food safety purposes 
Annex 2 paragraph 2 (e) 8.76  
16.49  23.95  
 
16.4 
  
State Budget 
 Infrastructural Services
: 
    
1995 
1996 
1997 
 
Average Repair works and maintenance of  irrigation network, dams and 
drainage schemes, buildings and electric stations for the 
irrigation network, improvement of water supply facilities, land 
improvement activities.  Building of facilities for the development of the network of wholesale markets and the  distribution system for agricultura l products Establishment of a 
network of agricultural cooperative banks. Annex 2 
paragraph. 2(g)  14,816.35  
10,634.24  
6,963.34  
 
10,804.64  
  
State Budget and MAG of 
RA 
    
    
    
    
    
    
     
 WT/ACC/SPEC/ARM/4 
Page 4 Measure type Name and description of measure with reference to criteria 
annex 2 of the Agreement on Agriculture Monetary value of 
measure 
in year in question Data sources 
1 2 3 4 
 "Payments for relief from 
 natural disasters" : 
    
1995 
1996 
1997 
 
Average Repair works and maintenance of  irrigation network, dams and 
drainage schemes, buildings and electric stations for the 
irrigation network, improvement of water supply facilities, land 
improvement activities.  Building of facilities for the development of the network of wholesale markets and the  distribution system for agricultura l products Establishment of a 
network of agricultural cooperative banks.  
 14,816.35  
10,634.24  
6,963.34  
 
10,804.64  
  
State Budget  
Govt. Decree 210 
 "Regional assistance 
 programmes" : 
    
1995 
1996 1997 
 
Average Land tax exemptions to farmers in uninhabited villages, remote 
and mountainous regions, and  regions close to border, to farmers of newly privatized la nds in some regions. Annex 2 
paragraph 13 410.96
81.26
103.54
198.59
 
 TAXI of RA
2 
 
                                                      
2 Tax Inspectorate of the Republic of Armenia  
  WT/ACC/SPEC/ARM/4
 Page 5Supporting Table DS:2 
 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Measures exempted  from the reduction commitment Sp ecial and Differential Treatment - Development Programmes 
 
Measure type Name and description of measure 
with reference to criteria annex 2 of 
the Agreement on Agriculture Monetary value of measure 
in year in question Data source 
1 2 3 4 
    
   
   
No measures of this kind were implemented during the period 1995-1997 
 
  
 WT/ACC/SPEC/ARM/4 
Page 6 Supporting Table DS:3 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Measures exempted from the reduction comm itment- Direct Payments under Production - Li miting Programmes -"Exempt Direct Payment s" 
 
Measure type Name and description of 
measure with reference to 
criteria annex 2 of the 
Agreement on Agriculture Monetary value of measure 
in year in question Data sources 
1 2 3 4 
 
  
No support of this kind was provided during the period 1995-1997. 
    
  
  WT/ACC/SPEC/ARM/4
 Page 7Supporting Table DS:4 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar years 1995-1997 
Calculation of the Total Aggregate Measurement of Support 
thousand US$ 
Product-specific 
measurements of support 
(from supporting table DS:8  below) Description of basic products Product-specific AMS 
(from supporting tables 
DS:5 to DS:7 below) 
Total Support Value of ProductionCurrent Total AMS 
(Aggregate) 
1 2  3 4 
     
Wheat  
1995 1996 1997  
2,333.08 5,394.31 6,430.67  
2,333.08 5,394.31 6,430.67  
51,840.16 83,422.01 57,886.48  
de minimis* de minimis* 
6,430.67 
 
Grapes
 
1995 1996 1997  
28.12 
713.47 
23.23  
28.12 
713.47 
23.23  
19,486.68 34,500.69 21,950.47  
de minimis* de minimis* de minimis* 
 
     
Fruits
 
1995 
1996 
1997  
33.55 
64.09 
27.51  
33.55 
64.09  
27.51  
60,905.03 
49,740.01  
33,262.00  
de minimis* 
de minimis* 
de minimis* 
 
Non- product - specific  
1995 
1996 
1997     
      
TOTAL AMS  
1995 1996 1997  
821,277.75 
829,250.0 
725,250.18  
192,893.08 194,904.43 169,673.23  
821,277.75 829,250.01 725,250.18  
192,893.08 194,904.43 176,103.90 
*  Armenia avails itself of the 10 per cent de minimis provision  pursuant to Article 6.4(b) of the Agreement on Agriculture  
 WT/ACC/SPEC/ARM/4 
Page 8 Supporting Table DS:5 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD: calendar  years 1995-1997 
Product-Specific Aggregate Measuremen ts of Support :Market Price Support 
 
Description  of 
basic products Calendar  
year/marketing Measure 
type (s) Applied 
administered 
price External 
reference 
price Eligible 
production Associated 
fees/levies Total 
market 
price support Data sources 
1 2 3 4 5 6 7 8 
((4-5)x6)-7 9 
         
No market price support was provided during the period 1995-1997 
         
          
  WT/ACC/SPEC/ARM/4
 Page 9Supporting Table DS:6 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Product-Specific Aggregate Me asurements of Support: Non-Exempt Direct Payments 
Description 
of basic 
product Calendar 
year/ 
marketing 
year 
beginning.. 
 Measure 
type(s) Applied 
administered 
price External 
reference 
price Eligible 
production 
 Total price 
related direct 
payments Other non- 
exempt 
direct 
payment Associated 
fees / levies Total direct 
payments 
(thousand 
US $) Data 
source 
1 2 3 4 5 6 7 
((4-5)x6) 8 9 10 
(7+8-9) 11 
           
 
No support of this kind was provided during the period 1995-1997 
  
 WT/ACC/SPEC/ARM/4 
Page 10 Supporting Table DS:7 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Product-Specific Aggregate Measurements  of Support:  Other Product Specific Support and Total Pr oduct-Specific AMS 
 
thousand US$ 
Description 
of basic 
product Calendar/ 
marketing 
year 
beginning Measure 
type(s) Other 
product 
specific 
budgetary 
outlays Other product specific 
support (include calculation details) Associated 
fees/ 
levies Total other 
product 
specific 
support  Market price 
support 
(supporting 
Table DS-:) Non-exempt 
direct 
payments 
(supporting 
Table DS:6) Total 
AMS Data 
sources 
1 2 3 4 5 6 7 
(4+5-6) 8 9 10 
(7+8+9) 11 
 
Wheat 
  
Incentives for wheat production through value added tax exemptions for bread producers3 
 1995   (58326.96*0.2)*0.2=2,333.08  2,333.08   2,333.08
 1996   (132909*0.2)*0.2=5,316.36  5,316.36   5,316.36
 1997   (141577.49*0.2)*0.2=5,663.10  5,663.10   5,663.10
          
 average         MAG of 
RA 
TAXI of 
RA 
           
Wheat 
 Provision of "Seed Loans" by the state to producers of wheat, part of which was forgiven1 
 1995   0  0   0 
 1996   ((283.2-75.2)*135+(41.6-7)*120)/ 
413.47=77.95      77.95  
 1997   ((7.5-1.5)*195+554.4*100)/490.65+
320000/490.65=767.57      767.57  MAG of 
RA 
TAXI of 
RA 
           
 average   281.84  281.84   281.84    
  
    
                                                      
3 For calculation details see the Annex to DS:7  
  WT/ACC/SPEC/ARM/4
 Page 11thousand US$ 
Description 
of basic 
product Calendar/ 
marketing 
year 
beginning Measure 
type(s) Other 
product 
specific 
budgetary 
outlays Other product specific 
support (include calculation details) Associated 
fees/ 
levies Total other 
product 
specific 
support  Market price 
support 
(supporting 
Table DS-:) Non-exempt 
direct 
payments 
(supporting 
Table DS:6) Total 
AMS Data 
sources 
1 2 3 4 5 6 7 
(4+5-6) 8 9 10 
(7+8+9) 11 
Grapes 
 Land tax exemptions for grape producers4 
 1995   28.12  28.12   28.12 
 1996   713.47  713.47   713.47 
 1997   23.23  23.23   23.23 
          
 average   254.94  254.94   254.94 
          MAG of 
RA 
TAXI of 
RA 
Fruits Land tax exemptions for owners of newly established orchards 
 1995   33.55  33.55   33.55  
 1996   64.09  64.09   64.09   1997   27.51  27.51   27.51  
          average   41.72  41.72   41.72  
                                                      
4 Figures on land tax exemption are from reports of the Tax Inspectorate of RA reflecting the amounts of the budget revenue fore gone due to the tax exemptions.  
 WT/ACC/SPEC/ARM/4 
Page 12 ANNEX TO SUPPORTING TABLE DS:7 
 
Average annual exchange rates fo r Armenian drams against US$  
 
1995 196 1997 
405.4 413.47 490.65 
 
 
Incentives for wheat production provided through valu ed added tax exemptions for bread producers  
 
Wheat      
 1995   (58326.96  * 0.2)*0.2=  
    2333.08  
 
58326.96 - is the production  value of the product co ncerned for the year in question (in thousand US$) 
 
0.2 - is the coefficient reflecting the portion of the value added by bread producers 
 
(58326*0.2) - represents the portion of the value added by bread producers  
 
0.2 - is the 20 per cent Value Added Tax 
 
 
Provision of "Seed Loans" by the State to pr oducers of wheat, part of which was forgiven  
 
Wheat      
 1996   ((283.2-75.2)*135+(41.6-7)*120)/413.47=  
    77.95  
 
(283.2 -75.2) and (41.6-7) - are the differences between the vol umes of the seed loans provided and the volumes of the loans re turned by producers (in tons) 
 
135 and 120 - are per kilo prices for seeds fo r the loan in question in Armenian drams 
 
413.47 - is the annual average exchange rate of Armenian drams against US$1   
  WT/ACC/SPEC/ARM/4
 Page 13Supporting Table DS:8 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  1995-1997 
Product-Specific  Equivalent Measurements of Support 
 
Description 
of 
basic 
products Calendar/
marketing
year Measure 
type(s) Applied 
administered 
price Production 
eligible to 
receive the 
applied 
administered 
price Market price 
support 
budgetary 
outlays Equivalent 
measurement 
of 
support 
(include 
calculation 
details) Non- 
exempt 
direct 
payments Other 
product- 
specific 
support Associated 
fees/ 
levies Total 
monetary 
value of 
equivalent 
commitment Data 
sources 
1 2 3 4 5 6 7 8 9 10 11 
(7+8+9+10) 12 
            
            
No support of this kind was provided during the period 1995-1997 
 
  
 WT/ACC/SPEC/ARM/4 
Page 14 Supporting Table DS:9 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD :  calendar  year 
Non-Product-Specific Aggregat e Measurements of Support 
 
Measure Type(s) Calendar / 
Marketing year 
beginning Non-Product specific 
support (include 
calculation details) Other non-product- 
specific support 
(include calculation 
details) Associated fees 
/levies Total non-product-
specific support 
Million (US$) Data 
sources 
1 2 3 4 5 6 7 
1.  Exemptions from value added tax for producers of basic agricultural products5 
 1995  (821277.75*0.8)*0.2=131,404.44  131,404.44 
 1996  (829250*0.8)*0.2=132,680.00  132,680.00 
 1997  (725250.18*0.8)*0.2=116,040.03  116,040.03 
 average  4,091.16   
4 091 16Ministry of 
Agriculture and Tax 
Inspectorate of 
Armenia 
2.  Exemptions from profit tax for producers of basic agricultural products6 
 1995  56,838.17   56,838.17   
 1996  57,389.91   57,389.91   
 1997  50,192.39   50,192.39   
 average   54,806.82   54,806.82   
3.  Provision of advantageous loans for covering debts of agricultural water users to energy suppliers1 
 1995  (2900000*(0.664-01))/413.47=4,587.03  4,650.47   1996  (2900000*(0.664-.01))/413.47=4,587.03  4,587.03  
 1997  (2800000*(0.542-.01))/490.65=3,035.97  3,035.97  
 average   4,091.16  4,091.16  
4.  Provision of privileged loans at lower interest  rates to producers of basic agricultural products2 
 1995  0  0  
 1996  (336613*(0.664-0.36))/413.47=247.49  247.49   1997  (1091397*(0.542-0.36))/490.65=404.84  404.84  
 average   217.44  217.44  
TOTAL NON-PRODUCT SPECIFIC AMS  
 1995    192,893.08   
 1996    194,904.43   
 1997    169,673.23   
 average     185,823.58   
                                                      
5 For calculation details see the Annex to DS:7 
6 Figures on land tax exemption are from reports of the Tax Inspectorate of RA reflecting the amounts of the budget revenue fore gone due to the tax exemptions.  
  WT/ACC/SPEC/ARM/4
 Page 15 
ANNEX TO SUPPORTING TABLE DS:9 
 
 1. Exemptions from value added tax for producers of basic agricultural products
 
 
 1995 (821277.75*0.8)*0.2
=  
  109065.69 
 
821277.75 - is the value of the gross basic agricultural production in the year in question (in thousand US$) 0.8 - is the coefficient reflecting the portion of the value added by producers of basic agricultural products 
(821277.75*0.8) - represents the portion of the value added by producers of basic agricultural products 
0.2 - is the 20% Value Added Tax 
 ex 
 1995  (1700000*(1.119-0.01))/405.4= 
  4650.47 
 
1700000 - is the amount of debts of agricultural produ cers which  was covered (in thousand Armenian drams) 
1.119 (119 per cent) - is the weighted average annual lending rate of  bank loans 
0.01 (1 per cent) - is the interest rate for the privileged loans provided by the State 
405.4 - is the annual average exchange rate of Arme nian drams against US$1 for the year in question 
  4. Provisions of privileged loans at lower inter est rates to producers of basic agricultural products
 
 
ex. 
 1996  (336613*(0.664-0.36))/413.47= 
  247.49 
 
336613 - is the amount of loans provided to agricultural producers (in thousand. Armenian drams) 0.664 (66.4 per cent) - is the weighted average annual lending rate of bank loans 0.36 (36 per cent) - is the interest rate for the privileged loans provided by the State 413.47 - is the annual average exchange rate of Arme nian drams against US$1  in the year in question 
  
 WT/ACC/SPEC/ARM/4 
Page 16 Supporting Table ES:1 
EXPORT SUBSIDIES: 
REPORTING PERIOD:  calendar years 1995-1997 
Export Subsidies:  Outlay and quantity 
  
Description of 
products Direct export 
subsidies Sales of stocks Producer 
financial 
subsidies Cost reduction 
measures Internal 
transport 
subsidies Total product 
specific export 
subsidies Quantity of 
subsidized 
export Data source 
1 2 3 4 5 6 7 8 9 
        
 
 
 
No export subsidies were provided during the years 1995, 1996, 1997 
   
       
       
 
 
__________