G/SCM/Q2/MEX/31  
13 June 2014  
(14-3440)  Page: 1/3  
Committee on Subsidies and Countervailing Measures  Original: Spanish  
 
  SUBSIDIES 
REPLIES TO QUESTIONS POSED BY THE UNITED STATES1 REGARDING 
THE NEW AND FULL NOTIFICATION OF MEXICO2 
The following communication, dated 11 June 2014, is being circulated at the request of the 
delegation of Mexico.  
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  Voluntary Decommissioning of Shrimp Boats 
1. Please indicate what happens to the decommissioned fishing vessels. Are they 
sold, wrecked or bought back by the Mexican Government for other purposes? 
 
Reply 
 
The new and full notification submitted by Mexico as document G/SCM/N/253/MEX refers 
to information relating to this matter, which can be found in the Rules of Operation mentioned 
in the notification.  The purpose of the voluntary decommissioning of shrimp boats forming part of the commercial 
fleet is to contribute to the conservation and sustainable use of fisheries resources by providing 
support that involves the withdrawal of commerc ial deep sea shrimp fishing, rights in force 
(licences and permits) and the scrapping (total destruction to the point where they are unusable 
for fishing activities) of the vessel to be decommissioned. 
 Modernization of the Fishing Fleet and Rationalization of Fishing Effort 
2. Please explain how overcapacity in the industry is taken into consideration under 
this programme. 
 Reply 
 As stated in the new and full notification su bmitted by Mexico in document G/SCM/N/253/MEX, 
the purpose of the measure is to promote the use of improved fishing technologies and equipment 
for the sustainable exploitation of resources and the rationalization of fishing effort. 
 For the sake of clarity, it should be pointed out that the support granted under this component 
goes only to costal fishermen operating under the law with valid fishing permits and licences 
who use vessels of a length of 10.5 metres or  less with an outboard motor of no more 
than 115 horsepower, in conformity wi th the Mexican Official Standards. 
 
                                               
1 G/SCM/Q2/MEX/29. 
2 G/SCM/N/253/MEX. G/SCM/Q2/MEX/31 
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  3. Please clarify whether this programme is intended to renovate and modernize 
existing fishing vessels or to build new ones. 
 Reply 
 The purpose of the support granted under this programme is to modernize the existing fleet 
so that it operates more efficiently. 
 
Coastal Fisheries Planning 
4. Please provide more information regard ing the policy objectives/purpose of this 
programme. It is not clear how providing direct support to the fishermen helps 
support the administration and regula tion of coastal fishing activities. 
 Reply 
 In the context of the programmes subject to Rule s of Operation, the Ministry of Agriculture, 
Livestock, Rural Development, Fisheries and Food (SAGARPA) carries out fisheries planning 
activities which help to provide up-to-date information for developing management strategies 
and measures to encourage responsible small-scale fisheries based on equity, that ensures the activity's profitability and social benefit. This is being done in accordance with the Code of Conduct 
for Responsible Fisheries of the United Nations Food and Agricultural Organization (FAO). 
 
The new and full notification submitted by the Government of Mexico as document G/SCM/N/253/MEX contains the information that the United States has requested: it can be found, 
specifically, in the Rules of Operation referred to in the notification. These rules state that the 
projects must target specific actions provided for in the National Sustainable Fishing and Aquaculture Framework Programme and must contribute directly to sectoral goals. 
Information on the National Sustainable Fishing and Aquaculture Framework Programme can 
be found on the Internet at:  http://www.conapesca.sagarpa.gob.mx/wb/cona/pr ograma_rector_nacional _de_pesca_y_acuacult
ura_su. 
 
The policy objective/purpose of this programme is to contribute to the planning of the coastal 
fisheries sector by identifying, registering and monitoring users of coastal fishing, their vessels and 
their fishing methods by technological means, through inter-institutionally coordinated actions and 
with the participation of costal fishermen.  
Duly constituted fisheries organizations officially registered in the National Fisheries Registry 
and aware of their fiscal obligations may operate and exploit fisheries resources in the states with coastal and inland waters, as may fishermen and their fishing vessels that are recognized by the community as traditional fishermen. 
 
High Technology Sector 
5. What are the principal industries  that benefit from this programme? 
 
Reply 
 
The new and full notification submitted by Me xico in document G/SCM/N/253/MEX provides 
information on this matter which can be found, specifically, in the Rules of Operation, whose date of publication is clearly specified in the notification. As stated in those rules, the persons eligible are natural persons involved in business and legal entities established under Mexican Law that are 
engaged in the following activities: 
 
 the manufacture of machinery and equipment; 
 the manufacture of computer, communication, measurement and other equipment, 
electronic components and accessories; 
 the manufacture of electricity generating equipment and electrical devices 
and accessories; and 
 the manufacture of transport equipment and parts of automotive vehicles. G/SCM/Q2/MEX/31 
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6. Please explain what is meant by "tempo rary" support. Please provide an estimated 
time-frame of how long the support is normally provided.  
Reply 
The new and full notification submitted by Me xico in document G/SCM/N/253/MEX provides 
information on this matter which can be found, specifically, in the Rules of Operation, whose date 
of publication is clearly stated in the notification. 
 The support is considered temporary because the resources of subsequent fiscal years cannot be committed, so that in any case, requests for support must be submitted by fiscal year. 
 
Rule 10, in particular, states that support may not generally be given to the same project for more than three years. 
 
7. Under the policy objective, the notificati on indicates that the support is provided 
for the "implementation of projects to re spond to market failures." Please provide 
more information regarding the eligib ility criteria for this programme. 
 Reply 
 
The new and full notification submitted by Me xico in document G/SCM/N/253/MEX provides 
information on this matter which can be found, specifically, in the Rules of Operation, whose date of publication is clearly stated in the notification. 
 
As stated in Rules 6 and 7, the eligibility requirements are as follows:  
"ELIGIBILITY REQUIREMENTS 
 6. The target population entities listed in Rule 5 above shall be eligible to receive PRODIAT 
support, on a non-discriminatory basis, provid ing they meet the following requirements: 
 
I. They must be up to date with their tax obligations, pursuant to Article 32-D of the Federal 
Tax Code, and submit a tax compliance certificate in accordance with the relevant provisions 
of the current annual set of amendments to the Tax Law (Resolución Miscelánea Fiscal); 
 
II. They must not be receiving support under other federal programmes, which would imply 
the substitution or duplication of support; 
 
III. Beneficiaries under this programme or other funds or programmes in prior fiscal years 
must be up to date with their obligations. This will be verified by the Directorate-General 
of Heavy Industry and High Technology (DGIPAT); 
 
IV. Target population entities belonging to Groups III and IV must be linked to Group I 
entities through agreements or other relevant legal instruments. 
 7. Under no circumstances may civil servants from the Ministry of the Economy or from the 
economic development departments or their equivale nt in the federative entities, their spouses or 
blood relatives, or any other persons referred to in the relevant federal and State legislation on the responsibilities of public servants, be eligible for PRODIAT support."  
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