WORLD TRADE
ORGANIZATIONG/AG/N/CZE/46
5 February 2003
(03-0744)
Committee on Agriculture Original:  English
NOTIFICATION
The attached notifications concerning new or modified domestic support measures exempt
from reduction ( Table DS:2 ) were received from the delegation of the Czech Republic on
24 January 2003.G/AG/N/CZE/46
Page 2
Table DS:2
DOMESTIC SUPPORT:  Czech Republic
Notification under Article 18:3 of the Agreement:
 New or modified domestic support measures exempt from reduction
1. Full title of measure:
Programme of assistance in less-favoured areas
2. Domestic legislation references:
Government Regulation No. 505/2000 Coll. of 22 November 2000
3. Detailed description of measure with refe rence to criteria (i.e. those in Annex 2):
The purpose of the programme is to support producers in disadvantaged regions (in less-
favoured areas).  These are clearly designated contiguous geographical areas that have beendesignated as less-favoured ones on the basis of neutral and objective criteria clearly spelt out
in a law.  The payments are generally granted to all producers in these regions provided they
comply with stipulated conditions for farming.  The aid is granted per hectare of farmed
grassland as the main objective of this programme is to reduce as much as possible the
proportion of arable land in these areas.  The programme is designed to maintain thecountryside in cultural state and to keep farmers in these areas.
The programme conforms to the general criteria of Paragraph 1 of Annex 2  of the Agreement
on Agriculture:
(a) the programme is provided through a publicly funded government programme not
involving transfers from consumers;  and
(b) the programme does not have the effect of providing price support to producers.In addition, it meets all the policy-specific criteria under Paragraph 13 of Annex 2 of the
Agreement on Agriculture under the  payments for regional assistance programmes category.
4. Cost of measure:
For 2001:  K č 1,747.0 million
5. Date of entry into effect:
1 January 2001
6. Period of application:
As from 1 January 2001
7. Product to principally benefit (if any individual products(s)):   No individual productG/AG/N/CZE/46
Page 3
Table DS:2
DOMESTIC SUPPORT:  Czech Republic
Notification under Article 18:3 of the Agreement:
 New or modified domestic support measures exempt from reduction
1. Full title of measure:
Inspection services
2. Domestic legislation references:
Article 2/1 of the Act 252/1997 Coll . on Agriculture of 24 September 1997
3. Detailed description of measure with refe rence to criteria (i.e. those in Annex 2):
It is a programme that was extraordinarily applied in 2001 in order to protect the Czech
Republic's territory against the introduction and spread of foot-and-mouth disease. The State
Veterinary Administration imposed a number of extraordinary measures, the implementationof which resulted in extraordinary expenditure for those who had to carry out these measures.
In this context, a number of inspection activities were carried out in order to ensure the safety
of imported products, and inspections concerning the storage and disposal of confiscated
foodstuffs. Expenditures under the programme do not involve direct payments to producers or
processors.
The programme conforms to the general criteria of Paragraph 1 of Annex 2  of the Agreement
on Agriculture:
(a) the programme is provided through a publicly-funded government programme not
involving transfers from consumers;  and
(b) the programme does not have the effect of providing price support to producers.
In addition, it meets the policy-specific criteria of Paragraph 2(e) of Annex 2 of the
Agreement on Agriculture under the  payments from General services programmes category.
4. Cost of measure:
For 2001:  K č 4.2 million
5. Date of entry into effect:
Since July 2001
6. Period of application:
As from July 2001
7. Product to principally benefit (if any individual products(s)):
No individual productG/AG/N/CZE/46
Page 4
Table DS:2
DOMESTIC SUPPORT:  Czech Republic
Notification under Article 18:3 of the Agreement:
 New or modified domestic support measures exempt from reduction
1. Full title of measure:
Set-aside programme
2. Domestic legislation references:
Government Regulation No. 86/2001 Coll. of  31 January 2001
3. Detailed description of measure with refe rence to criteria (i.e. those in Annex 2):
A financial aid is granted as a payment per hectare of arable land. In order to become eligible
for this aid, a farmer has to set-aside a fixed area of arable land by sowing various crops that
are designed for non-food use. This includes for instance oilseed rape that is subsequentlyused to produce rapeseed oil methylesther, and further crops used as green manure, crops
designed as energy sources, hemp and flax.
The programme is in accordance with the requirements of Article 6 paragraph 5(a)(i) of the
Agreement on Agriculture.
4. Cost of measure:
For 2001:  K č 613.1 million
5. Date of entry into effect:
31 January 2001
6. Period of application:
As from 31 January 2001
7. Product to principally benefit (if any individual products(s)):  No individual product
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