RESTRICTED
WORLD TRADE G/SCM/Q2/EEC/6
1stJuly1996
ORGANIZATION(96-2497)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Question from CANADA Regarding theNew
andFullNotification oftheEUROPEAN COMMUNITY1
Thefollowing communication, dated 20June1996, hasbeenreceived from thePermanent
Mission ofCanada.
_______________
Thefollowing arequestions inrespect ofthenotification oftheEuropean Communities made
pursuant toArticle XVI:1 oftheGATT 1994 andArticle 25oftheAgreement onSubsidies and
Countervailing Measures. Thequestions relate toECstructural andagricultural programmes, and
selected Member State programmes.
Chapter 1,PartI:Structural Programmes
European Regional Development Fund
1. Theforms ofassistance notified under paragraph 5appear todescribe theobjectives orintent
ofthefundrather thanspecific forms ofassistance. CantheEUadvise astotheactual form ofthe
assistance provided; i.e.,istheassistance provided intheformofgrants, loans, taxconcessions etc.?
Regarding theitems listed under paragraph 5,cantheEUdescribe further whatismeant by"productive
investment"?
2. Paragraph 6indicates thatERDF aidisco-financed. Isthefinancing equally shared withthe
participating Member State, orsplitinsome other proportion?
3. TheECnotification indicates thatthetotal budget forstructural funds amounted to
ECU 23.2billion. What proportion wasattributed totheERDF?
4. CantheEUalsoexplain thedifference between theECU 26.3billion budgeted in1995 for
allstructural actions versus theECU 23.2billion budgeted forstructural funds andwhether allofthe
amounts budgeted for1995 were spent.
European Social Fund
5. CantheEUclarify theform ofassistance notified under paragraph 5;i.e.istheassistance
provided intheform ofgrants, loans, taxconcessions etc.?
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6. Paragraph 6indicates thatESFaidisco-financed. Isthefinancing equally shared withthe
participating Member State, orsplitinsome other proportion?
7. Thenotification indicates thattheESFisnormally "devoted topeople" (notenterprises). What
istheadministrative mechanism fordistributing theassistance, i.e.howarefunds disbursed to
individuals?
8. TheECnotification indicates thatthetotal budget forstructural funds amounted to
ECU 23.2billion. What proportion wasattributed totheESF?
Chapter 1,PartII:Agriculture Products
European Agricultural Guarantee andGuidance Fund (EAGGF) -Guidance Section
9. Withrespect totheGuidance Section, thereport indicates thatECU 3.5billion wasbudgeted
for1995. Could theEUindicate whether alloftheECU 3.5billion wasspent?
10. Thetableonpage12withrespect toExport Refunds, includes "food aid"refunds. Since food
aidprovided in"fully grant" form isnotanexport subsidy, cantheEUprovide separate figures for
foodaid,notincluding these intheaggregate export subsidy figures byproduct?
11. Thetwotables onpages 12and13totalnearly ECU 29.9 billion in1994 butthetotal
expenditures fortheEAGGF according totheOfficial Journal isnearly ECU 33billion. CantheEU
explain thisdiscrepancy?
Chapter 1,PartIII:Industry Sectors
AidtotheCoalIndustry
12. Thenotification indicates thatatotalofECU 5,569.4 million wasprovided in1994, however
specific programmes havenotbeenidentified. CantheEUadvise astothemechanism forproviding
assistance tothecoalsector; i.e.,hasassistance beenprovided through specific programmes, ortax
system, orsome other mechanism?
13. CantheEUalsoadvise totheextent thatassistance isprovided through specific programmes,
whether theCommission isresponsible forimplementing anyspecific programmes?
14. TheEUissilent withrespect tosubsidies totheGerman coalindustry. ItisCanada 's
understanding thatthese subsidies areintheform ofconsumer surcharges andinternal domestic
purchasing requirements. Canada would appreciate anydetails onGerman assistance tothecoalsector
andthestatus ofexisting assistance/programmes tothesector, including theduration ofassistance to
thesector.
AidtoR&D: "Third Framework Programme ofCommunity Activities intheField ofResearch and
Technological Development (1990-1994)"
15. CantheECgivesome indication oftheproportion offunding attributable toprojects inrespect
ofindustrial applications?G/SCM/Q2/EEC/6
Page3
Chapter 2,Subsidies Granted byIndividual Member States oftheEU
FRANCE
16. Concerning the"Research andTechnology Fund (FRT)", whatsortofresearch (i.e.industrial,
pre-competitive development etc.asdefined within Article 8.2(a) oftheSubsidies Agreement) was
funded through theprogramme?
17. Regarding the"ANVAR" and"Industrial Innovation Fund" programmes, which sectors have
beenthepredominant beneficiaries oftheprogramme? What proportion ofthesubsidy isrepayable
inthose cases where there iscommercial success following theendoftheprogramme?
GERMANY
18. Regarding the"Joint Scheme onImproving theRegional Economic Structure" programme,
areassistance ceilings applied toregions, and,ifso,areceilings differentiated according tolevels of
development?
ITALY
19. Thenotification indicates thatthestateagency incharge ofthe"fund tobeShared forthe
Prosecution ofLegislative Decree 96/93" was"suppressed" in1994. Hassome other administrative
mechanism replaced "Agensud"? Howmuch assistance wasdisbursed during theperiod covered by
thenotification andwhich sectors received assistance?
20. The"Fund forApplied Research "programme indicates thatafinancial intermediary (Institutio
Mobiliare Italiano) administers aid.Howmuch assistance wasdisbursed forapplied research inthe
period covered bythenotification?
SPAIN
21. Thenotificationofthe"PlanforthepromotionofIndustrialdesign"indicatesthattheprogramme
wastorununtil1995. Hastheprogramme beenterminated? Ifso,arethere funds committed under
theprogramme thatwillcontinue tobedisbursed?
22. According tothenotification, theaidforthe"Centre fortheDevelopment ofIndustrial
Technology (CDTI)" isprovided "exclusively" toR&D projects andnon-actionable within themeaning
ofArticle 8oftheSCM Agreement. What proportion oftheprogramme 's1994 outlays relate to
"promotion oftechnology"? What proportion oftheassistance wasprovided forindustrial research
andpre-competitive development activity, asdefined within Article 8?
GREAT BRITAIN
23. Does "regional selective Assistance", represent oneprogramme, oristheassistance budgeted
under thisitemdisbursed through other programmes?
24. Istheassistance topoorer regions provided onthebasis ofdifferentiated ceilings depending
onthelevelofdevelopment oftheregion?
25. Thenotification ofthe"Eureka" programme indicates thattheamount perunitin1993-1994
was£20.575 million, butthatthetotalamount budgeted for1994-1995 isonly£22million. Does
thisindicate thatthetotalamount budgeted istobeapplied toonlyoneexpenditure?