G/SCM/Q2/ARG/43  
25 March  2022 
(22-2539) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original:  Spanish  
 
  
SUBSIDIES  
REPLIES TO QUESTIONS1 POSED BY THE UNITED STATES  REGARDING  
THE NEW AND FULL NOTIFICATION OF ARGENTINA2 
The following communication, dated and received on 25  March  2022, is being circulated at the 
request of the delegation of Argentina.  
 
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The United States appreciates Argentina's 2020 subsidy notification and poses the following 
questions regarding programs contained in the notification as well as a program we understand is 
maintained by Argentina , but may not be included in the notification.  
Question 1  
For the program entitled "Law No. 25.080 - Investment in Cultivated Woodland ", we 
understand the purpose of the program to be increasing the amount of investment in the 
forestry sector . What are the  criteria for the program beyond investment ? Are the 
subsidies provided based on the number of hectares planted or harvested?  
 
Reply  
Regarding the first question, the regime applies to the establishment of new industrial forestry 
undertakings and the expansion of existing ones, provided that the timber  supply is increased 
through the planting of new woodland . The activities covered are the planting of woodland, its 
maint enance and sustainable management, including research and development activities, and 
timber processing, when all of these form part of a forestry or integrated industrial forestry 
undertaking.  
All subjects making actual investments in the activities cover ed by the regime may be beneficiaries 
(natural and legal persons, including state enterprises, majority state-owned enterprises or public 
entities, undivided estates and trusts, as well as other non -corporate contractual arrangements or 
their equivalents).  
The regime applies to the provinces that expressly adopt it  through the  issuance of  a provincial law, 
which should  include an invitation to their municipalities . National and provincial implementing 
authorities must establish forest area zoning to localiz e undertakings in accordance with economic, 
social and environmental sustainability criteria ; this must also respect the land use planning for 
native woodland adopted by provincial law in line with the provisions of Law No. 26.331, under which 
undertakings  being developed outside the forest areas  in question  cannot be beneficiaries of the 
regime.  
Regarding the second question, the undertakings covered by the regime shall enjoy fiscal stability 
for up to 30 years, a period that can be extended to a maximum o f 50 years, depending on the area 
and cultivation cycle of the species planted . The owners of approved undertakings may receive 
non-repayable economic support in the form of a sum of money that is calculated per hectare and 
 
1 G/SCM/Q2/ARG/42.  
2 G/SCM/N/343/ARG/Suppl.2.  G/SCM/Q2/ARG/43  
- 2 - 
  varies according to area, specie s and forestry activity, as determined by the implementing authority 
and in accordance with the conditions established in Article 17 of Law  No. 25.080.  
Question 2  
a. For the program entitled "Law No. 24.331 - Free Zones and Law No.  25.005 - Free 
Zones", Argentina's notification indicates that "The objective of the free zones shall 
be to stimulate trade and industrial export activity ." Please explain how this 
program is consistent with Article 3 of the SCM agre ement.  
b. The program description notes that there is a duty exemption for "goods leaving the 
free zone for third countries ." How is this duty exemption structured ? What goods 
are provided this export duty exemption and what is the normal rate or export duty 
applied to these products?  
c. We further understand, based on the State Department Investment Climate 
Statement, that merchandise shipped from Argentina to a FTZ may receive export 
incentive benefits . Is this part of the same program or a different subsidy pr ogram ? 
Please explain how this program is consistent with Article 3 of the SCM agreement.  
Replies 
(a) Law No. 24.331 does not provide for the application of subsidies prohibited under Article 3 of 
the Agreement on Subsidies and Countervailing Measures . Article 30 of this Law clearly states 
that: "No incentives shall be provided for the removal of goods from the free zone to third 
countries other than the incentives consisting of the refund of taxes actually paid when such 
taxes are refundable to exporters w ithin the general customs territory . Incentives established 
in accordance with international agreements signed by the Argentine  Republic shall also be 
applicable ." 
(b) All provisions relating to tax, customs and financial matters, including criminal provis ions, 
applying in the general customs territory shall apply in the free zones. The exemptions concern 
the payment of national taxes levied on basic services provided within the free zone, such as 
the supply of drinking water, electricity, telecommunications, gas and sewerage, which are 
the responsibility of the concessionaire operatin g the free zone. These exemptions apply to all 
enterprises based in the free zones, without distinction as to the type of activity or any other 
criteria apart from where they are based.  
(c) Free zone users are not entitled to benefits and tax incentives un der the national, regional or 
sectoral industrial promotion regimes that exist , or may exist , in the national territor y. 
Moreover, as indicated in the response to question (a), Law No. 24.331  does not provide for 
the application of subsidies prohibited und er Article 3 of the Agreement on Subsidies and 
Countervailing Measures.  
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