WORLD TRADE G/AG/N/CYP/2
11February 1997
ORGANIZATION(97-0504)
Committee onAgriculture Original: English
NOTIFICATION
Theattached notifications concerning newormodified domestic support measures exempt from
reduction (Table DS:2) werereceived fromthedelegation oftheRepublic ofCyprus on30January
1997.G/AG/N/CYP/2
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Table DS:2
DOMESTIC SUPPORT: Republic ofCyprus
Notification under Article 18:3oftheAgreement:
Newormodified domestic support measures exempt fromreduction
(1) Fulltitleofmeasure:
Provision offinancial assistance topotato growers
(2) Domestic legislation reference:
Decision oftheCouncil ofMinisters N44.781, dated 4September 1996
(3) Detailed description ofmeasure withreference tocriteria:
Paymentsforrelieffromnaturaldisasters,conformingtoAnnex2,paragraph8oftheAgreement
onAgriculture.
Anamount wasapproved tobeissued totheCyprus Potato Marketing Board fortheprovision
offinancial assistance topotato growers affected bydamages caused toearly spring crop
potatoes ofcertain areas bylowtemperatures.
(4) Costofmeasure:
C£60.000
(5) Date ofentry intoeffect:
After approval bytheHouse ofRepresentatives
(6) Period ofapplication:
Endof1996
(7) Products toprincipally benefit:
Early spring croppotatoes ofareas affectedG/AG/N/CYP/2
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Table DS:2
DOMESTIC SUPPORT: Republic ofCyprus
Notification under Article 18:3oftheAgreement:
Newormodified domestic support measures exempt fromreduction
(1) Fulltitleofmeasure:
Package ofmeasures tolimit/stabilize dairy andbeefproduction
(2) Domestic legislation reference:
Decision oftheCouncil ofMinisters N44.301, dated 22May1996
(3) Detailed description ofmeasure withreference tocriteria:
Structural adjustment assistance conforming toAnnex 2,paragraph 10oftheAgreement on
Agriculture andproduction-limiting programme under Article 6:5oftheAgreement on
Agriculture.
Background: Although Cyprus 'selfsufficiency ratioinmilkanddairy products, expressed
ascows milkequivalent, doesnotexceed 75%, atotalof11million litres ofcows milk, or
8%oftotalproduction, could notbedisposed offin1995andwerepoured away. Difficulties
werealsoencountered withthedisposal ofdomestic beef.Withtheimplementation oftheWTO
Agreement thesituation deteriorated andtheGovernment wasforced totakeimmediate action
toreduce production.
Aims ofthepackage: Thepackage aims toachieve thefollowing resource retirement and
production-limiting targets:
(a)Reduce thenumber ofmilking cows byanaverage of20%.
(b)Stabilize thetotalmilk-quota allocated toproducers ataround 130million litres
annually.
(c)Reduce beefproduction byabout 20%inaddition tothereduction resulting from
theslaughter ofmilking cows.
(d)Stabilize domestic edam cheese production at1700tons.
Specific measures involved: thepackage involves one-time andrecurrent aidtoproducers and
processors asfollow:
-One-time aidtoproducers tofacilitate theslaughter ofupto7000milking cows and
toconform withamaximum number ofcows allocated toeachfarmaccording toa
clearly defined setofcriteria.
-One-time aidtoproducers tofacilitate theslaughter anddisposal ofupto5000dairy
malecalves aged12months andabove inconnection withrecurrent aidonaperhead
basistoencourage theslaughter, henceforth, ofdairy fattening calves atanagebelow
12months formales and14months forfemales, instead ofattheageof18months
aspractised sofar.
-Recurrent aidtolocal edam cheese manufacturers provided theyobserve certain
wholesale prices (fixed bytheGovernment below costforthebenefit ofconsumers)
aswellasamaximum quantity of1700tonsannually.G/AG/N/CYP/2
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(4) Costofmeasure:
One-time costexpected tobearound C£3,5 million andrecurrent expenditure around C£3,25
million annually, when fullyimplemented.
(5) Date ofentry intoeffect:
Immediate, butaperiod of6months isrequired forpreparatory work. Measures expected to
takefulleffect asfrom thebeginning of1997.
(6) Period ofapplication:
Ad-hoc measures expected tobecompleted within ayear. Nodecision taken astotheperiod
ofapplication ofrecurrent measures. They areexpected tocontinue untilthestated objectives
areachieved.
(7) Products toprincipally benefit:
Dairy cowmilk, beefandcheese