RESTRICTED
WORLD TRADE S/WPGR/W/16
5February 1997
ORGANIZATION
(97-0413)
Working Party onGATS Rules
QUESTIONS RELEVANT TOTHE INFORMATION EXCHANGE REQUIRED
UNDER THE SUBSIDIES NEGOTIATING MANDATE
Note bytheSecretariat
TheWorking Party agreed thatwherever possible Members would provide written replies to
thequestions listed below, inorder tohelpmeet therequirement under Article XVtoexchange
information concerning allsubsidies, atanylevelofgovernment, related totradeinservices provided
todomestic service suppliers. Itisalsounderstood thattheinformation provided iswithout prejudice
tothenegotiating positions ofgovernments.
TheWorking Party agreed thataworking definition ofasubsidy wasnecessary inorder to
proceed withtheinformation exchange. Forthesepurposes, itwasagreed thatthedefinition ofsubsidy
contained inArticle 1oftheAgreement onSubsidies andCountervailing Duties would serve asabasis
fortheworking definition. Therelevant definition isreproduced below:
"1.1 .............. [A]subsidy shallbedeemed toexistif:
(a)(1) there isafinancial contribution byagovernment oranypublic body within
theterritory ofaMember (referred tointhisAgreement as"government"),
i.e.where:
(i) agovernment practice involves adirect transfer offunds (e.g.grants,
loans, andequity infusion), potential direct transfers offunds or
liabilities (e.g.loanguarantees);
(ii) government revenue thatisotherwise dueisforegone ornotcollected
(e.g.fiscal incentives suchastaxcredits)1;
(iii) agovernment provides goods orservices other than general
infrastructure, orpurchases goods;
(iv) agovernment makes payments toafunding mechanism, orentrusts
ordirects aprivate body tocarry outoneormore ofthetypeof
functions illustrated in(i)to(iii)above which would normally bevested
1Inaccordance withtheprovisions ofArticle XVIofGATT 1994 (Note toArticle XVI) andtheprovisions
ofAnnexes Ithrough IIIofthisAgreement, theexemption ofanexported product from duties ortaxes borne
bythelikeproduct when destined fordomestic consumption, ortheremission ofsuchduties ortaxes inamounts
notinexcess ofthose which have accrued, shall notbedeemed tobeasubsidy.
./.S/WPGR/W/16
Page2
inthegovernment andthepractice, innorealsense, differs from
practices normally followed bygovernments;
or
(a)(2) there isanyform ofincome orprice support inthesense ofArticle XVIof
GATT 1994;
and
(b) abenefit isthereby conferred."
Members maychoose tovaryorsupplement theabove definition forthepresent purposes.
Please specify anysuchchanges intheworking definition.
QUESTIONS ONSUBSIDIES RELATED TOTRADE INSERVICES
1. Please identify anysubsidy programmes related totrade inservices, withabriefdescription
ofeachprogramme.
2. Please statethepolicy objectives underlying theuseofeachsubsidy.
3. Please indicate theavailability, inthecaseofyour country, ofinformation necessary to
distinguish subsidies toservices fromsubsidies togoods ,e.g.when acompany produces both
goods andservices.
4. Please indicate theform ofeachsubsidy (e.g.taxconcession, loan, grant etc.).
5. Unless previously indicated, please statewhich sectors areeligible under thesubsidy and/or
theestimated number ofenterprises which areeligible under thesubsidy.
6. Please indicate theeligibility criteria forsubsidies (location, nationality, destination ofoutput,
oranyother condition).
7. Please indicate howthesubsidy iscalculated (e.g.onproduction, onexports, onafixed or
fluctuating basis, etc.).
8. Please specify anytimelimits attached tothesubsidies described above.
9. Please indicate anysubsidy disciplines already assumed inthecontext ofregional agreements.
10. Where suchinformation isavailable, Members maywishtoindicate:
a) Subsidy perunitortotalannual subsidy outlays inrespect ofeachsubsidy granted;
b) Statistical dataindicating theimpact ofsubsidies ontrade inservices inthesectors
oractivities concerned.