RESTRICTED
WORLD TRADE G/SCM/Q2/SVK/7
28May1997
ORGANIZATION(97-2238)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Replies toQuestions posed bytheUNITED STATES1
Regarding theNewandFullNotification oftheSLOVAK REPUBLIC2
Thefollowing communication, dated 23May1997, hasbeenreceived from thePermanent
Mission oftheSlovak Republic.
_______________
Please provide information concerning thefollowing programmes which didnotappear
tobeincluded within theSlovak Republic ’snotification, yetmaymeetthenotification requirements
ofGATT 1994 and/or theSCM Agreement. Ifthese programmes areencompassed elsewhere
intheSlovak Republic ’snotification, please explain. Ifnot,please include information relevant
totheelements requested inthenotification format, orexplain thebasis onwhich theSlovak
Republic determined thateachprogramme didnotmeetthenotification requirements referenced
above:
Q1. Waste Minimization demonstration project sponsored bytheWorld Environment Centre
(WEC)
Answer
TheWaste Minimization demonstration project sponsored bytheWEC iscurrently conducted
inChemolak Smolenice enterprise. Theproject started inJuly1996 andisaimed atreduction ofthe
emission oforganic substances intheair.Costs ofthisproject havebeenUS$12,000 untilnowand
havebeendonated byUSAID.
Q2. Subsidies totheState Fund onMarket Regulation forhoney andcanned meat
Answer
ExportsubsidieseffectedthroughSFMRin1995concernedthefollowingproducts:milkpowder,
other dairy products (cheese), sugar, malt, beefandpoultry, eggs. Export subsidies forhoney had
notbeengranted. Subsidies hadbeengranted forbeef,which hadbeenexported intheformofcanned
beef.
1G/SCM/Q2/SVK/5.
2G/SCM/N/3/SVK &Suppl.1.G/SCM/Q2/SVK/7
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Q3. Export Insurance provided bytheGovernment oftheSlovak Republic against long-term
commercial risks
Answer
Withtheaimtoencourage thedevelopment offoreign tradeactivities, theSlovak Government
approved LawNo.379/1997 LConForeign Trade Promotion Fund andLawNo.80/1997 onSlovak
EXIMBANK.
TheForeign Trade Promotion Fund wasestablished toprovide financial resources forthe
promotion offoreign trade. Financial resources could beprovided forthefinancing of:
- costs related toforeign fairsandexhibitions (upto50%oftotalcosts)
- costs ofadvertisement materials andpublications distributed abroad
- costs ofanalytical studies andresearches onforeign trade
- costsoforganizing ofseminars forexchange ofviews andinformation onforeign trade
- payments ofbankloans andinterest from bankloans
- maintenance andinvestment costs ofeconomic departments ofembassies
- costs ofcommercial missions
Slovak EXIMBANK willstartitsactivities asfrom1July1997 andinaccordance withstate
foreign trade, financial, monetary andindustrial policy, willsupport export andimport activities by
financing ofexport andimport loans andcover insurance costs ofexport loans tocontribute to
enhancement ofthecompetitiveness ofdomestic products andimprovement offoreign trade.
EXIMBANK willprovide:
- Financing ofexport loans:
. direct orco-financing ofmidandlong-term export loans forexport of
machinery, equipment andinvestment projects;
. re-financing ofshort-term export loans forexports ofconsumer goods and
services;
. financing ofmidandlong-term loans forinvestment promotion abroad.
- Financing ofimport loans:
. direct orco-financing ofimport loans forexports ofmachinery, equipment
andinvestment projects;
. re-financing ofshort-term import loans forexports ofconsumer goods and
services.
- Insurance ofexport loans:
. midandlong-term against commercial andpolitical risks;
. short-term against political risks
. midandlong-term export loans from investment promotion activities of
domestic producers abroad against political andcommercial risks;
. short-term against commercial riskscaused byforeign trade partners.G/SCM/Q2/SVK/7
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Q4. Taxpolicies topromote exports
Answer
Taxpolicies topromote exports donotexistincurrent taxlegislation.
Q5. Slovak Republic Export Promotion Programme
Answer
Seeanswer toQ3.
Q6. State subsidies totheenergy, gas,telecommunication andrailtransport sectors through
state-owned entities
Answer
Intheenergy andgassector maximum purchase prices havebeenestablished, butonlyfor
consumers. Inthestatebudget anamount ofSk2.6billion -US$86 million -wasallocated tosubsidies
onheatsupply forhouseholds.
There arenosubsidies inthetelecommunication sector.
Asconcerns railroad transport, statesubsidies areprovided forthedevelopment ofinfrastructure
andinvestment.
Q7. State subsidies tobrown coalmining enterprises
Answer
With theaimtomaintain social peace, theGovernment oftheSlovak Republic provides the
following subsidies:
(a) coverage ofso-called social obligations ofcoalmining workers; and
(b) subsidy onsorted coalforhouseholds.
Q8. State subsidies fortherestructuring oforemining, tosettle coalmining issues andfor
public construction projects aimed atenvironmental improvements
Answer
TheGovernment oftheSlovak Republic provides financial resources tocompensate thesocial
impact ofshutting down oftheoremining industry andalsoprovides financial resources toprogrammes
aimed ateliminating thenegative impacts oftheoremining industry, particularly ontheenvironment.G/SCM/Q2/SVK/7
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Q9. Concessionary loans andcredit guarantees offered through theState Support Fund
Answer
TheState Support Fund offers concessionary loans andguarantees bank loans, ortheir
combination, butallthese financial activities aresubject torefund. Inthecaseofnon-refunding of
theloan, theFund takes ownership ofthesupported object andbythefollowing salegetsbackthe
invested capital.