./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/TUR/13
2 May 2000
(00-1756)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions from the UNITED STATES
Regarding the Updating Notification of TURKEY1
The following communication, dated 1 May 2000, has been received from the Permanent
Mission of the United States.
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The following are questions regarding the updating notification of Turkey made pursuant to
Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing
Measures, in document G/SCM/N/48/TUR.
I. CREDIT PROGRAMMES
Under section 1:  Title of the Subsidy Programme:
1. Under the explanation of short-term export credits in “Credit Programmes”, please explain
whether the short-term export credits offered by the commercial banks are offered on the same terms
as those offered by the Turk Eximbank.
2. In the explanation for the “Islamic Development Bank (IDB) Export Financing Scheme”
under “Credit Programmes - Medium and Long-Term Export Credits,” it appears in the first
paragraph as though the IDB has approval authorization for credit.  However, in the second
paragraph, it says that the Turk Eximbank has credit approval authorization.
(a) Please explain the loan application and approval process under the ‘Export Financing
Scheme’.
(b) Does the credit approval authorization of the Eximbank apply only to limiting the
amount of funds available?  In that case, would it be accurate to say that the
Eximbank, instead of the IDB, essentially has control over the credit approval?
3. Regarding the explanation of the “Overseas Contractors’ Services Insurance Programme”
under the “Medium- and Long-Term Insurance Facilities”, please explain why the programme iscurrently under review, and whether this means the programme is going to be phased-out.
4. Regarding the explanation of the “Oversea s Investment Insurance Programme” under the
“Medium- and Long-Term Insurance Facilities”, you state that the “programme is planned to be
                                                     
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implemented in 1999”.  Please explain whether or not this programme was implemented and whether
it is expected that it will have any trade effects.
Under section 2: Policy objective and/or purpose of the subsidy:
5. For “Specific Export Credit Programme”, the last programme under “Medium- and Long-
Term Export Credits”, the notification states that it “aims to meet credit demands which cannot be
fulfilled within the existing credit programmes of Turk Eximbank”.
(a) Please explain why the credit demands cannot be fulfilled under the existing
programmes.  Is it because the other credits are high-risk?
(b) Please explain more fully the aim of the programme and who is eligible for the
programme.
6. Under the  “Post-Shipment Export Credit Disc ount Programme”, please explain what Bank is
involved.
(a) In addition, please clarify how this Bank is able to channel proportions of commercial
banks’ funds to specific purposes?
(b) Does the Bank have control over how the commercial banks allocate their funds?
Under section 5: To whom and how is the subsidy provided
7. For the “Overseas Chain Store Investment Credit Programme”, please explain who or what
entity decides the interest rate for the projects.
II. AGRICULTURAL PRODUCTS
8. In “Decree 98/12 of the Money-Credit and Coordination Council”, part 5, it says that 100 per
cent of olive oil and 100 per cent of prepared or preserved fish is eligible for the subsidy.  Does that
mean that all producers receive 100 per cent debt-reduction for these products?  Or does this mean
that only certain producers within these categories receive 100 per cent debt-reduction?
9. For all of the agricultural programmes, please explain how the rate per ton is determined and
whether the same calculation is made across all products.
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