WORLD TRADE
ORGANIZATIONG/AG/N/CYP/7
16 November 1998
(98-4532)
Committee on Agriculture Original:  English
NOTIFICATION
The attached notification concerning domestic support measures for the calendar year 1997
(Table DS:1  and the relevant supporting tables) was received from the delegation of Cyprus  on
5 October 1998.G/AG/N/CYP/7
Page 2Table DS:1
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1997
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
56.1 Million £C 17.8G/AG/N/CYP/7
Page 3Supporting Table DS:1
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1997
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
Total for all exempt measures of Supporting Table DS:1 69,043,965
(a) Total general services 51,289,366 Budgets
(i) Research services
Research including general research, research in connection with environmental
programmes, and research programmes relating to particular products.2,907,434 Budgets
(ii) Pest and disease control services
Pest and disease control, including general and product-specific pest and disease control
measures, such as early warning systems, quarantine and eradication.145,206 Budgets
(iii) Training services
Agricultural training services provided by the Ministry of Agriculture and NaturalResources to all farmers.40,297 Budgets
(iv) Extension and advisory services
Extension and advisory services, provided by the Ministry of Agriculture to all farmers.9,297,889 Budgets
(v) Inspection services
Inspection of agricultural produce including general inspection services and the
inspection of particular products for health, safety, grading or standardization purposes.127,247 Budgets
(vi) Veterinary services
Veterinary services including veterinary public health, extension services, diseasecontrol, veterinary inspection services, quarantine services, etc.3,371,846 Budgets
(vii) Marketing and promotion  services
- Expenses for providing general marketing and promotion services by the Ministry of
Commerce and Industry;- Expenses for providing marketing and promotion services by the Vine ProductsCommission.644,634
1,029,997BudgetsG/AG/N/CYP/7
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.).33,724,816 Budgets
(b) Public stockholdings for food security purposes 5,970,630
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.Cyprus Grain
Commission
(c) Payments for relief from natural disasters 1,244,987
(i)  Compensation through the Ag ricultural Insurance Organization
The Agricultural Insurance Organization covers certain crops against certain naturaldisasters.  The Agricultural Insurance scheme is a contributory scheme where both the
Government and farmers contribute.  Only Government contribution is included in this
table.Budget
(ii)  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 subsidized
interest rate.  The total amount of loans issued during 1997 was £C 939,751.Department of
Agriculture
(d) Structural adjustment assistance conforming to Annex 2, paragraph 10 of the Agreement on Agriculture and
production-limiting programme under Article 6.5 of the Agreement5,107,080
. 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. (+)Department of
Agriculture
(e) Regional assistance programmes 3,399,833
Wine grapes area subsidy
An area subsidy is paid annually on a per hectare basis to all vine growers, based on theage of vineyard as well as on geographical considerations.  In these areas we have almosta monoculture.Vine Products
Commission
(f) Other Citrus area subsidy
An area subsidy was paid on ad hoc basis to citrus growers to compensate for loss ofincome due to bad production results in the previous year.2,032,069 Budget
(+)  Note:  Notification No. G/AG/N/CYP/2 concerning new or modified domestic support measures exempt from reduction is relevan t.G/AG/N/CYP/7
Page 5Supporting Table DS:2
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1997
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
Total for exempt measures, special and differential treatment 1,957,872
(a)  Total investment subsidies generally available to agriculture 445,809
(i) Subsidies for soil conservation works
Provision of financial assistance by the Department of Agriculture for theconstruction of soil conservation works.126,334 Department of
Agriculture
(ii) Purchase of animals
Subsidization of the purchase of selected breeding stock for livestock improvementand conservation of rear breeds of farm animals.8,526
(iii) Subsidies for integrated livestock development
Payments to livestock keepers for the relo cation of livestock units from residential
areas to livestock areas/zones.Subsidization of interest on loans made for the relocation and modernization oflivestock units.
Subsidization of expenditure for the establishment of units for the
treatment/utilization of swinery waste/effluent.310,949
(iv) Interest on loans subsidy, as a difference between the maximum legal lending rate
in Cyprus and subsidized interest rate of agricultural loans issued by Government
Cash subsidies are included in subsidies for integrated livestock development.
Agricultural loans are medium-term and long-term loans issued to farmers at asubsidized interest rate of 5%, as from 1994.  (It was 7% before).  The maximumlegal lending rate in Cyprus is 8.5% as from 1994 (compared to 9% before).n.a. Loan Commissioners
Cooperative Central BankG/AG/N/CYP/7
Page 612 3 4
In 1997, total loans disbursed through agricultural development projects were
£C 771,780.  Subsidized credit was available through the following agriculturaldevelopment projects:
- Plant protection associations
- Project for the development of floriculture- Project for the improvement of vegetable cultivation
- Project for the organic production of vegetables
- Utilization of aromatic plants and encouragement of their cultivation- Encouragement of young people to remain in rural areas- Project for the control of Citrus Tristeza virus
- Integrated livestock development project.
(b)   Total input subsidies generally available to low-income or resource-poor producers 1,512,063
(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 encourage
livestock keepers to use hay as feed, in proper quantities, thus replacing barley andother concentrates.  A small percentage of the budgetary outlays is spent on fieldtrials.1,494,066 Department of
Agriculture
(ii) Subsidies to plant protection associations.
Provision of subsidies to plant protection associations which cover part of theexpenses for pest and disease control, mainly for grapes and olives.17,997G/AG/N/CYP/7
Page 7Supporting Table DS:4
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1997
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 measurements of
support (from Supporting Table DS:8
below)
(£C)Current Total AMS (aggregate)
(£C)
12 3 4
Wheat 846,504 846,504
Barley 2,953,800 2,953,800
Wine grapes 2,822,597 2,822,597
Livestock products (Feedgrain subsidy) 8,889,066 8,889,066
Tobacco 340,000 340,000
Edam cheese 410,930 410,930
Tomatoes de minimis 0 0
Onions de minimis 0 0
Apples de minimis 0 0
Kiwis de minimis 0 0
Cherries de minimis 0 0
Pears de minimis 0 0
Peaches de minimis 0 0
Sheep and goat products de minimis 0 0
Olive oil 1,528,989 1,528,989
Non-product-specific AMS
Total:  Current Total AMS 16,262,897 1,528,989 17,791,886G/AG/N/CYP/7
Page 8Supporting Table DS:5
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1997
Product-Specific Aggregate Measurements  of Support:  Market Price Support
Description of basic
productsCalendar /
marketing year
beginning …Measure 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)-7)9
Wheat
(10.01)Fixed producer
prices142 CIF 63.12110,800 846,504 Imports and Exports
Statistics 1986-1988,Nicosia, Department of
Statistics and Research,
Ministry of Finance.
Barley(10.03)Fixed producer
prices120 CIF 38.43
236,000 2,953,800 Imports and Exports
Statistics 1986-1988,
Nicosia, Department of
Statistics and Research,Ministry of Finance.
1External reference price used £C 63.12/tonne.
2External reference price used £C 38.43/tonne.G/AG/N/CYP/7
Page 9Supporting Table DS:6
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1997
Product-Specific Aggregate Measurements of  Support:  Non-Exempt Direct Payments
Description of basic
productCalendar /
marketing
year
beginning…Measure type(s) Applied
administered
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 fresh grapes
22.04)(i) Subsidy by
weight of wine
grapes(ii) Subsidy on
Commandaria wine,
by volume2,805,203
17,3942,805,203
17,394Final Accounts,
Vine Products
Commission.(Budgetary
outlays)
Tobacco )
Edam cheese )Calendar year Product-specific
direct payments340,000
410,930340,000
410,930Treasury, Ministry
of Finance
Total 750,930 750,930
Tomatoes )
Onions )
Apples )
Kiwis )Cherries )
Pears )
Peaches )Calendar year Product-specific
direct payments
de minimis (1)69,803
3,710
361,631
12,62413,931
14,817
8,75069,803
3,710
361,631
12,62413,931
14,817
8,750
Sheep and goat )
products )Product-specific
direct payments
de minimis (1)1,365,453 1,365,453Treasury, Ministry
of Finance,
Department of
Statistics andResearch,
Ministry of
Finance
Total 1,850,719 1,850,719
Note:
(1) Support does not exceed 10% of total value of production of each of these products, for the relevant year. Under the provisi ons 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/7
Page 10Supporting Table DS:7
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1997
Product-Specific Aggregate Measurements of Support:  Other Product-Specific Support and Total Product-Specific AMS
Description of
basic productCalendar /
marketing
year
beginning…Measurement
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)(i) Subsidy by
weight of winegrapes(ii) Subsidy on
Commandaria
wine, byvolume2,822,597 2,822,597 Final Accounts
Vine ProductsCommission.(Budgetary outlays)
Wheat
(10.01)Fixed producer
prices846,504 846,504 Imports and Exports
Statistics, 1986-
1988, Nicosia,Department ofStatistics and
Research, Ministry
of Finance
Barley
(10.03)Fixed producer
prices2,953,800 2,953,800 Imports and Exports
Statistics, 1986-
1988, Nicosia,
Department ofStatistics andResearch, Ministry
of FinanceG/AG/N/CYP/7
Page 1112 3 4 5 6 7
(4+5-6)89 1 0
(7+8-9)11
Livestock products:
Meat
Beef
Mutton and lambGoats and kids
Pork
PoultryOther meatFeedgrain
subsidy
1Cyprus GrainCommission
Milk
Eggs
8,889,066 8,889,066 8,889,066
1The fixed external reference price used was:  £C 58.11/tonne.
Tobacco )
Edam cheese )Calendar year Product-specific
direct payments340,000
410,930340,000
410,930Treasury, Ministry
of Finance
Total 750,930 750,930
Tomatoes )
Onions )
Apples )Kiwis )Cherries )
Pears )
Peaches )Calendar year Product-specific
direct payments
de minimis  (1)69,803
3,710
361,631
12,62413,931
14,817
8,7500
0
000
0
0Treasury, Ministry
of Finance.
Department ofStatistics andResearch, Ministry
of Finance
Sheep and goat )
products )Product-specific
direct payments
de minimis  (1)1,365,453 0
Total 1,850,719 0
(1) Support does not exceed 10% of the total value of productions of each of these products, for the relevant year.  Under the p rovisions 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 1997 are the following (in £C) Tomatoes 7,272,000
Onions 1,155,000
Apples 6,590,000
Kiwis 162,000Cherries 871,000Pears 993,200
Peaches 1,236,000
Sheep and goat products 28,584,000G/AG/N/CYP/7
Page 12Supporting Table DS:8
DOMESTIC SUPPORT:  Cyprus
REPORTING PERIOD:  Calendar year 1997
Product-Specific Equivalent Measurements of Support
Description
of basic
productsCalendar /
marketing
year
beginning
…Measure
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
producerprice2,100 1,300* 1,528,989 Cyprus Olive
ProductsMarketing
Board.
Department ofStatistics andResearch,Ministry of
Finance.
The AgriculturalSituation in theEuropean Union,
1996 Report,
EuropeanCommission,Brussels -
Luxembourg,
1997.
It is noted that with respect to equivalent commitments Cyprus undertook a commitment only on the basis of the difference betwe en future contemporaneous prices, i.e. future
administered and future external reference prices.External reference price 1997:  1,589.40 ECU/tonne or 923.85 £C/tonne (intervention price 1996/97)
Prices adjusted by multiplying by 1.207509 (amended to the agrimonetary system from 1 February 1995)
*Preliminary estimate:  1 Cyprus pound (£C)   =   1.7204 ECU - end December 1997G/AG/N/CYP/7
Page 1312 3 4 5 678 9 1 0 1 1
(7+8+9-10)12
Pork The price fixing
policy was abolished
by an order of theMinister ofCommerce, Industry
and Tourism on
12.9.1997.
Poultry meat The price fixing
policy was abolished
by an order of the
Minister ofCommerce, Industryand Tourism on
11.7.1997.
Eggs (in shell) The price fixing
policy was abolishedby an order of the
Minister of
Commerce, Industryand Tourism on11.7.1997.
__________