WORLD TRADE  
ORGANIZATION   
G/SCM/Q3/SLV/14 
16 October 2012 
 (12-5623) 
Committee on Subsidies 
and Countervailing Measures Original: Spanish 
 
 
 
SUBSIDIES 
 
Continuation of Extension under SCM Artic le 27.4 of the Transition Period for 
the Elimination of Export Subsidies Pursuant to the Procedures Contained 
in the General Council Decision in Document WT/L/691 
 
Replies to the Questions from COLOMBIA1 concerning the 
Updating Notification of EL SALVADOR2 
 
 
 The following communication, dated 15 October 2012, is being circulated at the request of the delegation of El Salvador. 
 
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Programme:  Free Zone and Inward-Processing Warehouse Programme 
 
Summary:  Incentives for firm s operating in free trade zones or in inward-processing 
warehouses 
 
Question 1 
 
 Has El Salvador explicitly notified the beneficiaries of the subsidy programmes that, 
pursuant to the obligations arising from the SC M Agreement and specifically in the light of 
Article 27.4 thereof, the corresponding measures  will not be extended beyond 31 December 2015 
and their dismantling will begin by 2013 at the late st?  If so, what is the procedure for notifying 
these beneficiaries, and does El Salvador envisage any transition programme towards total dismantling?  Have any domestic measures been taken yet to eliminate the subsidies?  Could 
you provide us with documentation relating to this process? 
 Reply 
 
 In accordance with the terms for notifying be neficiaries set forth in the procedures for 
extending the transition period contained in th e WTO General Council Decision of July 2007, 
document WT/L/691 (the " Procedures "), we have notified every beneficiary in conformity with 
paragraph 1(e) of this Decision, and have been  taking steps to strengthen these efforts through the 
ongoing notification of beneficiaries ever sin ce this General Council Decision was adopted. 
 
                                                      
1 G/SCM/Q3/SLV/13. 
2 G/SCM/N/243/SLV. G/SCM/Q3/SLV/14 
Page 2  
 
   With respect to the transition programme, El Salvador has, in accordance with the 
"Procedures ", systematically developed and implemente d various measures and actions such as:  
technical work towards recommendations that will implement these Procedures;  planning of the process that the measure(s) will follow in order to implement these Procedures, including due 
consideration and adoption of such measures by th e Legislative Assembly;  and establishment of an 
interinstitutional committee for the analysis of the incentives scheme for free zones and 
inward-processing warehouses responsible, inter alia , for studying the measure that is the subject of 
these Procedures, taking into account the rights and obligations arising from El Salvador's current legal framework.  All of this goes hand in hand with  El Salvador's policy to attract and maintain 
foreign investment. 
 
 As stated above and in the information that h as been provided to this Committee, El Salvador 
has been adopting measures to implement the " Procedures " ever since they were approved by the 
General Council.  The progress that has been ma de places us in a good position to continue making 
efforts aimed at upholding both our rights and our obligations in the multilateral framework. 
 
 For further information on notification of the beneficiaries concerned,  domestic measures to 
implement the " Procedures " and other related documents, please c onsult the information provided in 
El Salvador's notifications from previous years, pursuant to the Decision.  
Question 2 
 
 The Government of El Salvador states that no statistical data reflecting the amount of 
incentives per unit are available.  Nor is any information provided on the total or annual 
amount for the subsidy.  In the absence of this information, how can El Salvador establish the 
benefit levels that make it possible to ensure that standstill is maintained in respect of the 
Free Zone and Inward-Processing Warehouse Progra mme?  Would it be possible to produce an 
estimate using as a basis the exempted CIF imports so that the magnitude of the subsidies granted can be established? 
 
Reply 
 
 With regard to the standstill requirements, we should like to take this opportunity to endorse 
the statement in section I of El Salvador's a nnual notifications to this Committee under these 
"Procedures ".  Standstill has been maintained to date , as El Salvador has fulfilled the obligation 
set forth in paragraph 3(a) of these Procedures.  
 Regarding the estimate based on imports, pl ease consult paragraph 5 of the annual 
notification submitted by El Salvador under the " Procedures " and circulated in document 
G/SCM/N/243/SLV.  This paragraph contains info rmation on the form of the notified subsidy, 
which differs from the aforementioned baseline.  
Question 3 
 
 El Salvador did not include in its notification any information on whether it has made 
changes to the original programmes and whet her the number of companies linked to these 
programmes has risen.  Could El Salvador plea se inform the Committee or send information in 
this respect before the meeting scheduled for October? 
 
Reply 
  As far as changes are concerned, see the reply to Question 2.   G/SCM/Q3/SLV/14 
 Page 3 
 
 
   Members can find information on the number of companies in paragraph 4.A. of the 
annual notification submitted by  El Salvador under the " Procedures " and circulated in document 
G/SCM/N/243/SLV.  
Question 4 
 
 El Salvador does not include in its plan an y specific actions regarding the dismantling of 
subsidies.  Could El Salvador please provide the Committee with this information before its 
meeting? 
 Reply 
 
 See the reply to Question 1. 
 
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