G/SCM/N/372/SLV  
14 September  2021 
(21-6825) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original:  Spanish  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES  
EL SALVADOR  
The following communication, dated and received on 1 3 September 2 021, is being circulated at the 
request of the delegation of El Salvador . 
 
_______________  
 
 
El Salvador wishes to notify its subsidy programmes, pursuant to Article XVI:1 of the 
General  Agreement on Tariffs and Trade  (GATT) 1994 and Articles  25 and 27.4 of the Agreement on 
Subsidies and Countervailing Measures  ("the SCM Agreement") and in accordance with the 
procedures laid down in the General Council Decision  in document WT/L/691 of 3 1 July 2 007 
("the Decision") . 
 
1. Title of the subsidy programme, if relevant, or brief description or identification of the subsidy  
Programme for firms operating in free zones or in inward -processing warehouses . 
2. Period covered by the notification  
El Salvador submits this notification for the period 1 January 2 019 to 31 December 2 020. 
3. Policy objective and/or purpose of the subsidy  
To create optimal conditions for stimulating sustained economic growth that will contribute to the 
creation of more and better jobs, the transfer of technology, and the country 's economic and social 
development.  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted)  
A. BACKGROUND  
To improve the welfare of the Salvadoran people by creating opportunities to maintain and raise 
levels of employment through government policies promoting the country's economic and social 
development.  
 
B. AUTHORITY  
Export Processing Zones and Marketing Act  and amendments thereto . 
5. Form of the subsidy (i.e. grant, loan, tax concession, etc.)  G/SCM/N/372/SLV  
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  Tax exemption . 
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others ; 
through what mechanism ; whether a fixed or fluctuating amount per u nit; if the latter, how 
determined ) 
Export Processing Zones and Marketing Act and amendments thereto : Tax exemptions are granted 
to developers and users of free zones or inward -processing warehouses . 
7. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous 
year) . Where provision of per -unit subsidy information (for the year covered by the 
notification, for the previ ous year, or both) is not possible, a full explanation  
Due to the nature and scope of these programmes, disaggregated statistical  data reflecting the 
amount of  incentives per unit is not available . 
8. Duration of the subsidy and/or any other time -limits attac hed to it, including date of 
inception/commencement  
Export Processing Zones and Marketing Act and amendments thereto : The duration of the benefits 
under Salvadoran legislation is dependent on the type of beneficiary (developer or user of free zones 
or inwa rd-processing warehouses) and the location (within or outside the metropolitan area). 
9. Statistical data permitting an assessment of the trade effects of the subsidy . The specific 
nature and scope of such statistics is left to the judgement of the notifying Member . To the 
extent possible, relevant and/or determinable, however, it is desirable that such information 
include statistics on the production, consumption, imports and exports of the subsidized 
product(s) or sector(s) : 
(See Annex  1). 
  G/SCM/N/372/SLV  
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  ANNEX 1  
COMPARATIVE TABLE  
(USD million ) 
CONCEPT  2019 2020 
(a) World exports  18,591,310 17,142,105 
(b) Salvador an exports  5,904.73  5,044.01  
(c) b/a 0.032% 0.029% 
 
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