RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/EEC/28
22 May 2001
(01-2588)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions from the UNITED STATES Regarding the Updating
Notification of the EUROPEAN COMMUNITIES
(Austria,1 France,2 Greece,3 Spain4)
The following communication, dated 17 May 2001, has been received from the Permanent
Mission of the United States.
_______________
Questions to Austria
Assistance Measures by the Lower Austri an Regional Border Promotion Company Ltd.
ERP Regional Programme
ERP-SME Technology Programme
ERP Technology Programme
1. For each of the above programmes, please indicate whether there is a specified rate at which
the loans are provided under the programme?  If so, what is that rate?  If not, how is the interest rate
determined?
2. With respect to the ERP Technology Program, are all enterprises in all industries eligible for
funds under this programme?
Special Programme for the National Park Region “Hohe Tauern” in Tyrol
1. Can funds provided under this programme be used to develop commercial opportunities for
recipients?
2. Are funds provided under this programme available to exporters?
                                                     
1 G/SCM/N/60/EEC/Add.1
2 G/SCM/60/EEC/Add.5
3 G/SCM/N/48/EEC/Add.7;  G/SCM/N/60/EEC/Add.7
4 G/SCM/N/60/EEC/Add.13G/SCM/Q2/EEC/28
Page 2
Guarantees by the Tyrolean Credit Guaranteeing Company
1. Are exporting companies eligible for aid under this programme?
2. Are any of these companies ones which would not receive loans (or credits) without credit
guarantees by the Tyrolean government?
3. According to the notification, aid under this pr ogramme is provided exclusively to companies
that are being ‘defing’.  Can you please clarify this statement?
Special Programme for the Strengthening of the Tyrolean Economy (Impact Package Tyrol)
1996-2000
1. It is noted in the notification that in some instances, there are specific sectoral focal points.
What are those specific sectoral focal points?
2. Is aid under this programme available to exporters?
Regional Planning Assistance Focal Point Programme (Rpafpp) 1996 - 2000 - Focal Point:
‘Development of Industrial Sites’, Part ‘Construction and Enlargement Of Private Rail
Haulages
1. Even though the period for submitting applications ends on December 31, 2000, how long
will aid be available after this date?
Regional Planning Assistance Focal Point Programme (Rpafpp) 1996-2000 - Focal Point:
‘Assistance to Initiatives  in the Field of Agricultural Marketing’
1. What types of marketing activities are eligible for aid under this programme?
2. Does aid under this programme include such things as participation in international
expositions and promotion activities?
3. Is aid under this programme available for exporters?4. Even though the period for submitting applications ends on December 31, 2000, how long
will aid be available after this date?
Assistance to the Industrial Waste Water Management by Means of the Region of Styria
1. Even though the last date applications were accepted under this programme was December
31, 1999, how long will aid under this pr ogramme continue to be disbursed?
2. Are all manufacturing industries eligible for aid under this programme?
Assistance by Non-Repayable Cash Grants
1. What type of investments are eligible for aid?
2. What stipulations are there for enterprises to receive investment aid?G/SCM/Q2/EEC/28
Page 3
Assistance to the Structural Renewal of the Styrian Basic and Finished Products Industries
1. According to then notification, the deadline for applications under this programme was
December 31, 1999 and that commitments made prior to the deadline would be honoured after 1999.
However, it is also stated that since the deadline for applications was December 31, 1999, that nobudget forecast was made for the year 2000 or subsequent years.  If funding is still being honoured for
commitments made prior to the end of 1999, it seems that there would be an estimated budget for the
year 2000.  Please provide further details on the expected or anticipated amounts that will be provided
after the deadline date?
Assistance to Industrial Research and Development Projects
1. Is assistance under this programme available to all industrial enterprises?
Questions to France
Regional Advisory Assistance Fund (FRAC)
1. According to the notification, the subsidy takes the form of “direct subsidization” of a number
of items including recourse to outside consultancy.  Are the items that are directly subsidized items
for which the company must not pay any cost themselves?
2. Are these companies able to receive such benefi ts indefinitely or are there time limits to the
assistance that is provided to them?
Enterprise Zones
1. The notification provides that the benefits under this programme are available to corporations
in the specific zones for 10 years and that the zones closed in 1992.  For clarification purposes, does
this mean the last benefits to accrue under this programme will accrue in 2002?
Land-use Management Premium (PAT)
1. Can the EC please identify the form of subsidy granted under this programme?
2. Are there any limitations concerning how much aid a company can receive?
Mining Reconversion Programme
1. How is the repayment period determined?  What is the maximum amount of time over which
a company may repay its loan?
Industrial Development Company (SODIE)
1. What are the terms on the loans offered under this programme?G/SCM/Q2/EEC/28
Page 4
French Overseas Departments
Long-Term Tax Treatment
1. For the five authorized mining companies, can you please clarify whether the taxes being
exempted are French (national) taxes owed on “industrial activities” conducted in the departments of
Guyana, Guadeloupe, Martinique and Reunion?
2. What types of activities are included in “industrial activities”?VAT Deduction for Certain Exempted Products
1. Can you please clarify how this programme operates?  For example, from what is the
uncollected VAT deducted?
Temporary Tax Exemption for Creation of Ac tivities in the Overseas Departments
1. What types of activities are included in “authorized activities”?
Reduced Taxation of Operating Results1. What types of activities are eligible for a reduction of taxes on profits and losses?
Questions to Greece
Law 2601/98
1. It is stated state that funds from this programme are used, inter alia, to “contribute to the
exploitation of business opportunities in Greece and abroad.”  Are the funds used for export
promotional activities or international marketing activities?
2. How is the amount individuals are eligible to receive decided?
Questions to Spain
The United States notes that with respect to several of the notified programmes, the EC has
claimed that the programmes in question conform to various elements of Article 8 of the Agreement.In this regard, we would observe that the information contained in the notification is insufficient to
demonstrate whether the relevant terms and conditions of Article 8 have been satisfied.  Moreover, as
the EC is aware, these provisions of the Agreement have now lapsed.
Fisheries
1. After money or funds are transferred to the Autonomous Communities, who has oversight of
the funds?  How is the money disbursed from the Autonomous Communities?
2. Are there requirements for the ways in which aid under this programme must be used?G/SCM/Q2/EEC/28
Page 5
Special Economic Aid to Shipowners Affected by the Stoppage of Fishing
1. Since the duration of this programme is listed as 1 March to April 30, 1999, does this mean
that the programme has ceased?  Or is this a yearly renewable programme?
Development of Non-Energy Mining
1. Are funds under this programme able to be used for exportation of mined material?
Shipbuilding Subsidies
1. Under what terms and conditions do recipients receive funds under this programme?  How is
the level of funding for each individual participant decided?
2. Is there a mandated purpose for which the recipients must use the funds they receive under
this programme?
Interest Subsidy for Shipbuilding Loans
1. It is stated that under certain conditions, shipbuilders domiciled outside the European
Economic Area are eligible for this subsidy?  Please indicate under what conditions this occurs.
R&D Plan for the Aeronautical Sector
1. What are the terms for the repayable advances under this programme?
SME Industrial Development Initiative
1. Since the duration of this programme is listed until 31 December 1999, does this mean that
the programme has been terminated?
ARTE/SME Programme
1. Please indicate whether this programme was terminated in June 1999.  Also, please explain
what was meant by the phrase “subsidized projects may be terminated after this date.”  Does this
mean that after June 1999, grants will no longer be provided or that previously subsidized projects
must end?
Regional Economic Incentives Scheme
1. Who is eligible to receive funding under this programme?  Are all enterprises in every
industry eligible for aid under this programme?
__________