WORLD TRADE
ORGANIZATIONG/SCM/N/71/EST
10 September 2002
(02-4724)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notification Pursuant to Article XVI:1 of the GATT 1994
and Article 25 of the Agreement on Subsidies and
Countervailing Measures
ESTONIA
The following communication, dated 28 August 2002, has been received from the Permanent
Mission of Estonia.
_______________
Hereby the Republic of Estonia has the honour to submit the notification on subsidy
programmes pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on
Subsidies and Countervailing Measures for the year 2000.
Table of Contents
A. H ORIZONTAL AID........................................................................................................................3
1. Export credit and guarantee scheme.......................................................................................3
2. Aid for R&D.................................................................................................................. ............4
3. Relief on environmenta l pollution charge...............................................................................5
4. Substitution of the pollution charge ........................................................................................6
5. Support for organizing the participation of enterpreneurs in international fairs/
exhibitions.................................................................................................................... ..............7
6. Support for participation in international fairs/ exhibitions ................................................7
B. A ID FOR SMALL AND MEDIUM SIZED ENTERPRISES ....................................................................8
7. Loans for small and medi um sized ent erprises ......................................................................8
8. Guarantee scheme for small a nd medium sized enterprises .................................................9
9. Support for small entrepreneurs for participating in local fairs/exhibitions ....................10G/SCM/N/71/EST
Page 2
10. Business Advice and Training aid Subsidy Scheme for SMEs ...........................................11
C. R EGIONAL AID..........................................................................................................................12
1. Regional Development loans ..................................................................................................1 2
2. Crediting of fishery  and rural life .........................................................................................1 3
D. S ECTORAL AID..........................................................................................................................14
3. Aid for Estonian Audiovisual Industry.................................................................................14
4. Aid for transport............................................................................................................ .........15
5. Aid for Culture and Media.................................................................................................... .16
E. DOMESTIC SUPPORT IN AGRICULTURE .......................................................................................17
1. General Services............................................................................................................. .........17
2. Public Stockholding For Food Security Purposes................................................................18
3. Structural Adjustment Assistance Pr ovided Through Investment Aids ...........................19
4. Payment Under Environmental Programmemes.................................................................205. Payment Under Regional Assistance Programmemes.........................................................21
6. Payments Made on 85 Per Cent or Less of the Base Level of Production .........................22
7. Insurance Support ............................................................................................................ ......23
8. Interest Subsidy For Agricultural Loans..............................................................................24G/SCM/N/71/EST
Page 3
A. HORIZONTAL AID
1. Export credit and guarantee scheme
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The aim of the programme is to facilitate the implementation of potentially successful
projects which have a high risk factor.
3. Background and authority for the subsidy
The Estonian Export Credit and Guarantee Agency
4. Legislation under which it is granted
Government Order No 1006-k of 18 December, 1997 on transforming the Estonian Export
Credit Fund into the Export Credit and Guarantee Agency and on approving the Articles ofAssociation of the Foundation; State Export Guarantees Act of 9 February, 1999;  Government
Regulation No 265 of 7 September, 1999 approving the procedure for submission  and review of
applications, grant of guarantees, determination of degrees of risk, calculation and payment of
guarantee premiums and compensation for damages arising to the exporter from an export transaction.
5. Form of the subsidy
Loans, export guarantees
6. To whom and how the subsidy is provided
The subsidy was provided to export projects according to their economic efficiency, which is
the criterion for choosing among all applicants.  The interest rate of loans was fixed between 12-
13 per cent and was higher than the average market interest rate (which in 2000 was 9,2 per cent). The
loans could amount up to 50 per cent of the project costs.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000:
• 11 (new) loans amounting in total to 5.1 million Estonian kroons (later
abbreviated as EEK);
• 4 export guarantees, guarantee limit amounting in total to EEK 4.4 million.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.Note: export credit scheme terminated in 2000.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/AG/SCM/N/71/EST
Page 4
2. Aid for R&D
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The programme aims at the promotion of resear ch and development, the finance of high-risk
technological projects, the development of technology parks and the support of new entrepreneurs in
the area of high-technology.
3. Background and authority for the subsidy
The Estonian Innovation Fund
4. Legislation under which it is granted
Estonian State Innovation Programme (1998-2002)  approved by the Government Decision
No. 25 from 9 June, 1998;  Research and Development Arrangement Act (adopted on
26 March, 1997);  Government Order No. 725 from 30 September, 1997 approving the Articles of
Association of the Estonian Innovation Fund.
5. Form of the subsidy
Grants, loans, capital investment.
6. To whom and how the subsidy is provided
The subsidy was provided to the projects and programmes of industrial research and
precompetitive development activity necessary for the technological development of the transition
economy of Estonia.
The subsidies were provided on the co-financing principle to support programmes and
projects on the basis of project proposals submitted according to procedure of open competition by
scientific and development institutions, commercial undertakings or sole proprietors entered in the
commercial register.
The amount of the grant can reach up to 50 per cent of the project’s costs; the amount of the
loan cannot exceed 75 per cent of the expenses of the project to be financed.
The projects to be financed are selected by the Supervisory Board of the Foundation from
amongst competing projects on the basis of their innovative essence and economic efficiency, taking
into account the opinions of experts about such projects.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 – the total sum of subsidies amounted to EEK 15.8 million, consisting of
grants for the 15 universities and scientific centres EEK 8 million and loans paid out in 2000 for
8 companies – EEK 7.8 million.G/SCM/N/71/EST
Page 5
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
3. Relief on environmental pollution charge
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The relief of pollution charge was included in the Pollution Charge Act because of the
difficult social and economic situation of oil-shale industry and the region the industry is situated.
3. Background and authority for the subsidy
The Ministry of Environment.
4. Legislation under which is granted
Pollution Charge Act of 10 February, 1999, Article 10(3).
5. Form of the subsidy
Charge relief.
6. To whom and how the subsidy is provided
Article 10 of the Pollution Charge Act stipulates the pollution charge rates for release of
waste into environment, whereas Article 10(3) makes exception of the pollution charge rates to
landfills for oil shale semi-coke until 1 January 2002.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 – 3 companies received a relief of EEK 27.7 million (the first company
EEK 20.1 million, the second company EEK 5.2 million and the third company EEK 2.4 million).
8. Duration of a subsidy and/or any other time limits attached to it
Pollution charge relief applies until 1 January 2002.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/AG/SCM/N/71/EST
Page 6
4. Substitution of the pollution charge
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The programme aims at decreasing pollution by encouraging voluntary environmental
protection.
3. Background and authority for the subsidy
The Ministry of Environment.
4. Legislation under which it is granted
Pollution Charge Act of 10 February, 1999, Article 19.
5. Form of the subsidy
Pollution charge substitution with investments in environmental protection or participation in
approved programmes for the preservation or improvement of the state of the environment.
6. To whom and how the subsidy is provided
According to the Pollution Charge Act, companies have to pay a charge for the release of
pollutants or waste into the environment.  The obligation to pay the pollution charge can besubstituted if the polluter implements measures which ensure the reduction of pollutants over the
course of 3 years by not less than 25 per cent in comparison with the last accounting period prior to
the implementation of such measures or if the polluter participates in the financing of regional
environmental programmes or projects approved by the Minister of the Environment.  The extent to
which the pollution charge is substituted shall not exceed the cost of the environmental protectionmeasures or the cost of participation in the national or regional environmental programmes or
projects.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 – EEK 4 million.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to the programme.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/AG/SCM/N/71/EST
Page 7
5. Support for organizing the participation of entrepreneurs in international
fairs/exhibitions
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The aim of the subsidy is to support organizing participation of entrepreneurs at international
fairs.
3. Background and authority for the subsidy
Estonian Investment and Trade Development Foundation.
4. Legislation under which it is granted
Articles of Association of Estonian Invest ment and Trade Development Foundation;  the
Procedure of Estonian Investment and Trad e Development Foundation on financing projects;
Government Order No. 942-k from 25 August, 1999 "Year 2000 plan for assistance in organizing and
participating in foreign exhibitions".
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
The subsidy is provided to the fair operators/fair organizers, who organize the visit of
enterprises to the fair.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 – a total amount of EEK 4.8 million was awarded.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
6. Support for participation in international fairs/exhibitions
1. Period covered by the notification
2000G/SCM/N/71/EST
Page 8
2. Policy objective and/or purpose of the subsidy
The aim of the subsidy is to support the participation of enterprises at one international fair
once in a year.
3. Background and authority for the subsidy
Estonian Investment and Trade Development Foundation
4. Legislation under which it is granted
Articles of Association of Estonian Invest ment and Trade Development Foundation;  the
Procedure of Estonian Investment and Trad e Development Foundation on financing projects.
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
The subsidy is provided to the companies to s upport the internationalization.  The enterprises
can apply for aid to cover the costs of training, certification, recruiting consultants, advertisingmaterials, transport and customs fees of goods to be presented on the exhibition.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 – a total amount of EEK 2 million was awarded;  EEK 8.3 thousand of
which for fisheries sector.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
B. AID FOR SMALL AND MEDIUM SIZED ENTERPRISES
7. Loans for small and medium sized enterprises
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The aim of the subsidy is to promote promising projects of small enterprises by covering part
of the costs of investment and training.G/SCM/N/71/EST
Page 9
3. Background and authority for the subsidy
Small Business Loan Foundation
4. Legislation under which is granted
State Support of Enterprise Act of 10 May, 1994; Government Order No 726-k of
30 September, 1997 approving the Articles of As sociation of Small Business Loan Foundation.
5. Form of the subsidy
Loans
6. To whom and how the subsidy is provided
The subsidy is provided to small enterprises to support costs of investment and training, no
loans are provided as working capital loans.  Elig ible borrowers are companies that are registered
according to the relevant rules established by the laws of the Republic of Estonia, the number of
employees of which is up to 80 and the net turnover does not exceed EEK 100 million per year andwhich do not have subsidiaries.  The maximum loan amount for start-ups (which have acted not more
than 2 years) cannot exceed EEK 800 000 and the loan duration of 7 years.  For other SMEs the loan
amount cannot exceed EEK 3 million per company and the loan duration of 7 years.  The self-
financing has to be at least 25 per cent of the total cost of the project.
The loans provided in 2000 were at an interest  rate higher than the market interest rate.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 - loans totalling EEK 24.5 million for 40 enterprises were awarded.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
8. Guarantee scheme for small and medium sized enterprises
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The aim of the programme is to support SMEs by giving loan guarantees for promising and
potentially successful projects.
3. Background and authority for the subsidy
Small Business Loan FoundationG/SCM/N/71/EST
Page 10
4. Legislation under which it is granted
State Support of Enterprise Act of 10 May, 1994;  Government Order No. 726-k of
30 September, 1997 approving the Articles of As sociation of Small Business Loan Foundation
5. Form of the subsidy
Loan guarantees
6. To whom and how the subsidy is provided
The subsidy is provided to the companies that are registered a ccording to the relevant rules
established by the laws of Republic of Estonia, the number of employees of which is up to 80 and thenet turnover does not exceed EEK 100 million per year and which do not have subsidiaries.
The amount of a loan awarded to the company by the commercial bank not covered by the
securities of a company is guaranteed by the Foundation with a maximum of 50 per cent, but not more
than EEK 2 million.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 - loan guarantees for 4 loans in the amount of EEK 4.5 million.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
9. Support for small entrepreneurs for participating in local fairs/exhibitions
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The aim of the measure is to support participation of small entrepreneurs in Estonian fairs.
3. Background and authority for the subsidy
Estonian Regional Development Agency
4. Legislation under which it is granted
Government Order No. 284-k of 22 April, 1997 on establishing Estonian Regional
Development Agency and approving the Articles of Association of Estonian Regional Development
Agency, Decision of the Supervisory Board of the Regional Development Agency of
26 January, 2000 on approving the list of Estonian fairs and the procedure on applying for the grant.G/SCM/N/71/EST
Page 11
5. Form of the subsidy
Grants
6. To whom and how the subsidy is provided
The subsidy is provided to small enterprises operating on the territory of Estonia with number
of employees up to 80 and sole proprietors.  Enterprises which have acted less than 2 years are
preferred.  Grants are paid after participation in fairs.
Maximum aid award is EEK 7000 per applicant but not more than 75 per cent of the overall
participation costs.  Eligible costs are the costs of box, participation fee and other costs, which are
directly connected with the fair except personnel costs and transport costs.  An applicant must presenta confirmation from the Taxation Board that it does not have tax liabilities.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
In 2000 EEK 1.8 million was allocated for the grants (1.6 million EEK was paid out for
275 applicants).
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
10. Business Advice and Training aid Subsidy Scheme for SMEs
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The aim of the subsidy is to provide SMEs a reasonable possibility for advisory services and
support for business training favouring SMEs in low-income regions.
3. Background and authority for the subsidy
Estonian Regional Development Agency
4. Legislation under which it is granted
Government Order No. 284-k of 22 April, 1997 on establishing Estonian Regional
Development Agency and approving the Articles of Association of Estonian Regional Development
Agency, Decision of the Supervisory Board of the Regional Development Agency of
26 January, 2000 on approving the procedure on applying for the grant.G/SCM/N/71/EST
Page 12
5. Form of the subsidy
Grants
6. To whom and how the subsidy is provided
The subsidy was provided to SMEs on advisory services and on support for business training.
The grants amounted to 30 per cent of the advisory costs for the cities and richer regions, 60 per cent
for other regions. EEK 20 000 (including EEK 15 000 for advisory services and EEK 5000 for
training support) is the maximum amount for one company for one year.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
In 2000, EEK 1.75 million was allocated for the grants (EEK 1.4 million was paid out for
252 applicants).
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
C. REGIONAL AID
1. Regional Development loans
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
Regional development loan is aimed at providing small loans (up to EEK 200 000) to start-up
businesses (up to 2 years from registration) in peripheral areas.
3. Background and authority for the subsidy
Estonian Regional Development Agency
4. Legislation under which it is granted
Government Order No. 284-k of 22 April, 1997 on establishing Estonian Regional
Development Agency and approving the Articles of Association of Estonian Regional Development
Agency, Decision of the Supervisory Board of the Regional Development Agency of26 January, 2000 on approving the procedure for giving regional development loans.
5. Form of the subsidy
LoansG/SCM/N/71/EST
Page 13
6. To whom and how the subsidy is provided
The subsidy is provided to companies with le ss than 80 employees or acting sole proprietors
or start-up undertakings registered in the Commercial Register.
Loans are given primarily as investment loans for max. 5 years.  As a rule, loans for working
capital are not given.  The self-financing has to be at least 25 per cent of the total cost of the business
project.
The interest rate can be up to 3 per cent lower th an the average loan interest rate of Estonian
commercial banks.  The interest rate is determined on the case by case basis.  Loans are given only if
they are covered by collateral.
The maximum loan amount is EEK 200,000 for one company.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Year 2000 – 7.5 million EEK was paid out for 151 applicants.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
2. Crediting of fishery and rural life
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The aim of the programme is to encourage entrepreneurship in rural areas.
3. Background and authority for the subsidy
Agriculture and Rural Life Crediting Foundation
4. Legislation under which it is granted
State Support of Enterprise Act of 10 May, 1994; Government Order No. 730-k from
2 October, 1997 on approving the Articles of Asso ciation of Agriculture and Rural Life Crediting
Foundation.
5. Form of the subsidy
Loans, loan guaranteesG/SCM/N/71/EST
Page 14
6. To whom and how the subsidy is provided
Loans are awarded to support fishing and fish-culture, as well as for enterprises supplying and
maintaining non-agricultural entrepreneurship.  The foundation is limited to rural areas.
Loans are given through banks, which are selected by the contest.  The amount of the loan
cannot exceed 75 per cent of the overall expenses of the project to be financed and the ceiling of the
interest rate shall be determined by conditions of the contest between commercial banks organized by
the Council of Agriculture and Rural Life Crediting Foundation and is stipulated in the contract made
between the bank and the Foundation.
Loans can be working capital loans (duration up to 1 year); loans for purchasing technics,
equipment etc. (duration up to 5 years); for constr ucting or purchasing buildings for non-agricultural
production (duration up to 7 years).
Loan guarantee may be provided for 75 per cent of the amount of the loan.  The duration of
the loan to be guaranteed shall not exceed 10 y ears.  Guarantee is given to loan projects with
guarantee premium of 3 per cent in year.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 – loans in the amount of EEK 47.7 million.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
D. SECTORAL AID
3. Aid for Estonian Audiovisual Industry
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
Subsidies to the Estonian audiovisual industry  serve the purpose of promoting culture and
heritage conservation in the Estonian language, secu ring the continuity of Estonian film-making and
enlivening film culture.  Movies as well as documentary films and animations were supported.
3. Background and authority for the subsidy
Estonian Film Foundation
4. Legislation under which it is granted
Articles of Association of the Estonian Fi lm Foundation; National Budget Act of 2000.G/SCM/N/71/EST
Page 15
5. Form of the subsidy
Grants
6. To whom and how the subsidy is provided
The subsidy is given to Estonian film producers.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 - grants of EEK 13.1 milli on were awarded, thereof EEK 8.2 million to
movies and EEK 4.9 million to animation films.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
4. Aid for transport
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
Subsidy intended for specific purposes was granted from the state budget for the provision of
public regular transport services and acquisition of public transport vehicles.
The aim of the subsidy is to ensure an optimal relationship between public transport service
and price level to promote the preferred use of public transport vehicles and to ensure the accessibility
of public transport services to population groups whose income is below average.  In allocating
subsidies, such aspects as environmental protection and traffic safety, regional development,
employment market and social policy as well as other factors are considered.  Subsidy for acquisition
of public transport vehicles (buses) is intended to support the acquisition of new buses, operating on
the local bus routes, instead of depreciated and environment polluting buses.
3. Background and authority for the subsidy
Ministry of Transport and Communication
4. Legislation under which is granted
Railways Act of 23 February, 1999;  Public Transport Act of 1 October, 2000;  National
Budget Act of 2000;  Government Regulation of 25 March, 1992 No 98;  17 Government Regulation
of August, 1992 No 245;  Government Order of 8 March, 1996 No 240-k.G/SCM/N/71/EST
Page 16
5. Form of the subsidy
Grants
6. To whom and how the subsidy is provided
The subsidy is given for the provision of pub lic regular services: to railway companies;
domestic airlines, and domestic shipping/ferry companies, providing connection with islands; bus
companies, operating on city and county routes/lines.
Also, the subsidy is given for acquisition of public transport vehicles:  to bus companies.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 –EEK 341.1 million, including:
railways   –EEK 142.1 million
city and county bus routes –EEK 126.3 million
connection with islands –EEK 62.9 million
acquisition of buses –EEK 9.8 million
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
4. Aid for Culture and Media
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
Subsidies for home delivery of periodical publications in rural areas enable partly to cover
higher delivery costs which enable rural inhabitants to order newspapers and magazines for the same
price as in the cities and ensures the timely delivery of periodical publications
3. Background and authority for the subsidy
Ministry of Transport and Communication
4. Legislation under which it is granted
National Budget Act of 2000
5. Form of the subsidy
GrantsG/SCM/N/71/EST
Page 17
6. To whom and how the subsidy is provided
The subsidy is given to joint-stock company Eesti Post, who is the organizer of the delivery of
periodical publications for rural inhabitants, for the equalization of the home delivery tariffs between
cities and rural areas.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 – EEK 15 million
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
E. DOMESTIC SUPPORT IN AGRICULTURE
1. General Services
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The programme aims at providing services and benefits to agriculture or the rural community.
3. Background and authority for the subsidy
The Ministry of Agriculture
4. Legislation under which is granted
National Budget Act of 2000, Agricultural Development Strategy.
5. Form of the subsidy
Grants
6. To whom and how the subsidy is provided
Support for research is provided to the various institutions for developing agricultural
policies, applied research for plant and livestock production, applied research for land amelioration,research related to breeding, incl. raising Estonian native breed cattle.
The support for pest and disease control is provided to various institutions for developing pest
and disease control measures.
The support for training, extension and advisory services include farmers’ training and
consultation services, services provided by Jäneda Training and Advisory Centre, agriculturalG/SCM/N/71/EST
Page 18
extension service programme and other advisory and extension activities.  Advisory subsidy may be
applied for by an agricultural producer or an undertaking engaging in other rural economic activity
who pays the part of the cost of the advisory service.  Advisory support is granted in an amount of up
to 85 per cent of the cost of the consultation service.
The support for inspection services include services concerning veterinary and food control,
food quality and safety inspection programmes.
The programme aimed at supporting the marketing and promotion services for agricultural
producers assists the participation in exhibitions and trade fairs.  In addition, it involves market
information gathering and the promotion of the joint economic activity of farmers.  The programme
also includes the introduction and promotion of brand name Tunnustatud Eesti Maitse (Certified
Estonian Flavour).
The support for infrastructural services involves the maintenance of amelioration structures
aiming at promoting the development of infrastructure in rural areas.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 - grants of EEK 177.55 million.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
2. Public Stockholding For Food Security Purposes
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The programme covers the expenditures for purchasing and storing reserve stocks of grain.
3. Background and authority for the subsidy
The Ministry of Agriculture, The State Corn-Bin
4. Legislation under which it is granted
National Budget Act of 2000, the National Stockpiles Act of 23 November, 1994
5. Form of the subsidy
The establishment, storage and replenishment of the stockpile is financed in accordance of the
relevant agreements.G/SCM/N/71/EST
Page 19
6. To whom and how the subsidy is provided
The State Corn-Bin enters into an agreement with the producers according to the results of a
public tender.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 - grants of EEK 23.21 million.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
3. Structural Adjustment Assistance Provided Through Investment Aids
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The programme aims at assisting producers by offering financial restructuring aid.  Also, land
restitution support is provided under this programme.
3. Background and authority for the subsidy
The Ministry of Agriculture, Rural Loans Guarantee Fund, Agricultural and Rural Life
Crediting Foundation
4. Legislation under which it is granted
National Budget Act of 2000, Agricultural Development Strategy.
5. Form of the subsidy
Grants, loan guarantees
6. To whom and how the subsidy is provided
The programme includes assistance for investments in peripheral areas and land restitution
support to agricultural producers.
The Rural Loans Guarantee Fund supports agriculture and business activities outside the
capital city by providing security to loans.  The aim of the scheme is to offer additional security to
bank loans taken by farmers and rural entrepreneurs.  The guarantee becomes necessary if thecollateral offered by the entrepreneur is not sufficient  for the loan or if the lender wishes to spread the
risks related to the project.G/SCM/N/71/EST
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The Agricultural and Rural Life Crediting Foundation provides loans to agricultural producers
with lower interest rates than at the market and the programme aims at supporting agricultural
production, fishing and fish-culture, enterprises supplying and maintaining agriculture and non-
agricultural entrepreneurship. The foundation is limited to rural areas.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 - grants of EEK 19.3 million.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
4. Payment Under Environmental Programmes
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
This support is provided for environmentally friendly and sustainable production methods.
The support enables the producers to cover the additional expenditures of specific conditions under
environmental programmes.  Also, the scheme of promoting the use of certified seeds is  a part of thisprogramme.  The aim of the support is to increase the quality of the seeds, which are more resistant to
plant diseases and insects.  The supplementary effect of the support measure is preventing the
spreading of weed seeds, especially wild oats.
3. Background and authority for the subsidy
The Ministry of Agriculture
4. Legislation under which it is granted
Rural Development and Agricultural Market Regulation Act of 11 October, 2000;
Agricultural Development Strategy, Organic Farming Act of 11 April, 2001.
5. Form of the subsidy
Grants
6. To whom and how the subsidy is provided
The aim of the support is to introduce environmentally friendly production methods and
increase the share of organic farming in traditional agriculture that will promote sustainability of the
environment by restricting the use of fertilizers and pesticides in the handling of organic foodstuffs,and facilitates the preservation of the natural fertility of the soil, the assurance of biological diversity
and the continued use of semi-natural grasslands.  Support is granted annually and is calculated on the
basis of income foregone and additional costs resulting from the given actions and the need to provideG/SCM/N/71/EST
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an incentive.  Payments are based on limitations on the use of fertilizers, plant protection products or
other inputs.
The certified seed promotion support compensates part of the extra costs related to higher
price of the seeds. It does not foresee the production growth and the support amount is not linked to
production volumes nor to price or income levels.  The requirement is the real use of quality seed.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 - grants of EEK 29.66 million.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
5. Payment Under Regional Assistance Programmes
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The aim of liming acid soils is to improve the soil fertility in the regions with low soil acidity.
3. Background and authority for the subsidy
The Ministry of Agriculture
4. Legislation under which it is granted
Rural Development and Agricultural Market Regulation Act of 11 October, 2000;
Agricultural Development Strategy.
5. Form of the subsidy
Grants
6. To whom and how the subsidy is provided
The support is provided to the farmers in the regions with soil acidity less or equal to
6.0 pHkcl which is determined by the respective soil research laboratories.  The state covers part of
the expenses of the farmer in relation to purchasin g the liming services from the company determined
via public tender.  The support does not foresee the production growth and the support amount is not
linked to production volumes nor to price or income levels.  The supplementary effect of the support
measure is retaining inhabitation in remote areas with agriculturally poor quality lands.G/SCM/N/71/EST
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7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 - grants of 14.8 million EEK.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
6. Payments Made on 85 Per Cent or Less of the Base Level of Production
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The payments made on 85 per cent or less of the base level of production act as supportive
measure to ensure the basic reproduction of the sector  and to prevent further growth of unused lands.
Also, the aim is to maintain inhabitants in remote areas with agriculturally poor quality lands.  It doesnot foresee the production growth and the support amount paid to the producer is not linked to
production volumes nor to price or income levels.
3. Background and authority for the subsidy
The Ministry of Agriculture
4. Legislation under which it is granted
Rural Development and Agricultural Market Regulation Act of 11 October, 2000;
Agricultural Development Strategy.
5. Form of the subsidy
Grants
6. To whom and how the subsidy is provided
These payments act as supportive measures to ensure the basic reproduction of the sector and
to prevent further growth of unused lands.  A supplementary effect of the measures is preventing
further growth of unused lands.
The payment made on mutton and lamb meat production is provided to the producers equally
according to the number of ewes the producer has.  The requirements for receiving the support include
the absence of state tax liabilities.  The number of animals raised for environmental purposes as the
"natural lawn mowers" may increase.
The aim of the payment made on milk production is to preserve the inhabitation in rural areas
and maintain dairy cow raising as an agricultural activity.  The support is provided to the producers
equally according to the number of dairy cows the producer has notwithstanding of the milkG/SCM/N/71/EST
Page 23
production or milk yield. There are two additional requirements that must be fulfilled in order to
receive the support:  (a) the basic veterinary requirements must be met;  (b) the producer should not
have any state tax liabilities.  The subsidy does not foresee the production growth and the support
amount is not linked to production volumes nor to price or income levels.
The payment made on cereal production is provided to the producers equally according to the
arable crop area the producer attends, not depending on production or crop yield.  There are two
additional requirements that must be fulfilled in order to receive the support:  (a) the basic
phytosanitary requirements must be met;  (b) the prod ucer should not have any state tax liabilities.  It
does not foresee the production growth and the support amount is not linked to production volumes
nor to price or income levels.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 - grants of EEK 213.51 million.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
7. Insurance Support
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The aim of the support measure is to facilitate the insurance for agricultural crops, productive
animals or fisheries against natural disasters and to motivate the producers to take a larger share of
responsibility in case of a possible damage.
3. Background and authority for the subsidy
The Ministry of Agriculture
4. Legislation under which it is granted
Rural Development and Agricultural Market Regulation Act of 11 October, 2000;
Agricultural Development Strategy.
5. Form of the subsidy
Grants up to 40 percent of the insurance payment.G/SCM/N/71/EST
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6. To whom and how the subsidy is provided
The support is provided to the agricultural producers who, as a precautionary measure, have
concluded an insurance contract for agricultural crops, productive animals or fisheries against natural
disasters.  The requirement for receiving the support is that the payments are made correctly and ontime.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 - grants of EEK 0.6 million were awarded.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
8. Interest Subsidy For Agricultural Loans
1. Period covered by the notification
2000
2. Policy objective and/or purpose of the subsidy
The state aid acts as financial assistance used as partial compensation for interest on a long-
term loan (with a term of repayment longer than one year) or payments for a capital lease taken by an
agricultural producer to invest in the development of agricultural production or by a fish farmer to
make an investment in the development of fish farming.  It is paid during the calendar year preceding
application for the interest support.
3. Background and authority for the subsidy
The Ministry of Agriculture
4. Legislation under which it is granted
Rural Development and Agricultural Market Regulation Act of 11 October, 2000;
Agricultural Development Strategy.
5. Form of the subsidy
Grants up to ten percentage points of the interest rate.
6. To whom and how the subsidy is provided
Interest support is provided to agricultural producers who have used a loan to purchase,
construct or reconstruct tangible assets necessary to develop the production of agricultural produce or
who have entered into a capital lease contract (lease) for the use and purchase of tangible assets
necessary to develop the production of agricultural produce.G/SCM/N/71/EST
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7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy
Fiscal year 2000 - grants of EEK 26.9 million.
8. Duration of a subsidy and/or any other time limits attached to it
No time limits are attached to it.
9. Statistical data permitting an assessment of the trade effects of a subsidy
N/A
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