. /.WORLD TRADE
ORGANIZATIONG/SCM/101
13 January 2003
(03-0166)
Committee on Subsidies
and Countervailing Measures
EXTENSION UNDER SCM ARTICLE 27.4 OF THE TRANSITION PERIOD
UNDER ARTICLE 27.2(b) FOR THE ELIMINATION
OF EXPORT SUBSIDIES
THAILAND
Industrial Estate Authority of Thailand
Decision of 19 December 2002
The Committee on Subsidies and Countervailing Measures (the “Committee”),
On the basis of the provisions of Article 27.4 of the Agreement on Subsidies and
Countervailing Measures ("the SCM Agreement") pertaining to extension of the transition period
under Article 27.2(b) of the SCM Agreement for the elimination of export subsidies;
Taking into account the request and other notified information provided by Thailand to the
Committee1 for Industrial Estate Authority of Thailand (“the programme”) during the consultations
between Thailand and the Committee pursuant to Article 27.4 of the SCM Agreement;
Recognizing with appreciation the efforts, by Thailand, during the review by the Committee,
to describe and clarify the provisions of the programme;
Considering for purposes of this decision , Thailand to be a developing country Member
eligible to request an extension pursuant to Article 27.4 of the SCM Agreement;
Considering that an extension of the transition period for the programme is justified taking
into account the economic, financial and development needs of Thailand;
Noting the statement of Thailand that its request for extension in respect of the programme is
limited to exemption from import duties on machinery, equipment, tools and components essential forthe production of goods, and on materials used for construction of factories or buildings;
Noting further  that Thailand hereby commits itself:
(i) as from 1 January 2003 to reduce the export requirement under the programme to no
more than 20 per cent, and to no more than 10 per cent as from 1 July 2004, and to so
notify all investors not later than 31 January 2003;
                                                     
1The notified information on the basis of which this decision is taken is found in documents
G/SCM/N/74/THA, G/SCM/N/71/THA, G/SCM/Q3/THA/1 to G/SCM/Q3/THA/17 and Suppl.1.  A summary
description of the programme can be found in document G/SCM/Q3/THA/17.G/SCM/101
Page 2
(ii) not to modify the programme so as to make it more favourable, including as to scope,
coverage and intensity of benefits, during the extension period and final two-year
period referred to in the last sentence of Article 27.4 of the SCM Agreement, relative
to the level of benefits that existed as indicated in the notified information concerning
the programme2;
(iii) to provide adequate transparency in respect of the operation of the programme, on an
annual basis during the period referred to in (ii), including as to implementation of the
standstill commitment and steps to phase out export subsidies under the programme,
through notifications of the programme following the agreed format for subsidy
notifications under Article 25 of the SCM Agreement, and review by the Committee;
Noting the firm intention of Thailand to make every effort with a view to submitting all
necessary legislative amendments to the House of Representatives not later than 31 December 2003,
so as to ensure the elimination of export subsidies under the programme not later than
31 December 2005, such that calendar years 2004 and 2005 constitute the final two-year period
referred to above; and noting the commitment of Thailand to submit a corresponding modified workplan of the IEAT Act amendment to the Committee not later than 31 March 2003;
Noting  the firm intention of Thailand not to request any further extension for the programme
beyond the year 2003;
Hereby grants  to Thailand, under Article 27.4 of the SCM Agreement and subject to the terms
contained herein,  an extension, until 31 December 2003, of the transition period, under Article 27.2(b)
of the SCM Agreement, for the elimination of expo rt subsidies taking the form of exemption from
import duties on machinery, equipment, tools and components essential for the production of goods,
and on materials used for construction of factories or buildings, under the programme.
This decision does not affect the legal rights of Members with respect to any other obligations
of Thailand under the SCM Agreement, that may apply to the programme.  Among such other
obligations, it is recognized that the programme  remains subject to Article 3.1(b) of the SCM
Agreement, which prohibits subsidies contingent, whether solely or as one of several other conditions,
upon the use of domestic over imported goods.
This decision  does not affect any rights, obligations or commitments of Members under any
other WTO Agreement with respect to the programme; and is without prejudice to the existing and
future relationship between the SCM Agreem ent and any other WTO Agreement, and has no
precedential value for any other purpose.
__________
                                                     
2 Footnote 1, supra .