G/SCM/N/315/SLV  
13 March  2018 
(18-1515) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original:  Spanish  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ART ICLE XVI:1 OF THE GATT 1994 AND  
ARTICLE 25 OF THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES  
EL SALVADOR  
The following communication, dated 8 March 2 018, is being circulated at the request of the 
delegation of El Salvador . 
 
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"EXPORT PROCESSING Z ONES AND MARKETING A CT, AS AMENDED" (REF ERRED TO 
HEREINAFTER AS "FREE  ZONE AND INWARD -PROCESSING WA REHOUSE PROGRAMME")  
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") . 
 
El Salvador hereby wishes to confirm that, pursuant to paragraph 3(a) of document WT/L/691, the 
Free Zone and Inward -Processing Warehouse Programme satisfies the standstill requirements 
established therein.  
 
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 2 015 to 3 1 December 2 016. 
 
3. Policy objective and/or purpose of the subsidy  
 
No changes have been made to the programme since the last notification . 
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) 
 
A. BACKGROUND  
 
The programme seeks to create favourable conditions for sustained economic growth and a 
macroeconomic environment attractive to investors that will cont ribute to the creation of more and 
better jobs, the transfer of technology , and the country's economic and social development . 
 
B. AUTHORITY  
 
Export Processing Zones and Marketing Act  and amendments thereto . 
 G/SCM/N/315/SLV  
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  5. Form of the subsidy (i.e. grant, loan, tax c oncession, etc .) 
 
Fiscal sacrifice . 
 
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 unit ; if the latter, how 
determined ) 
 
Under Salvadoran legislation, "tax exemptions" are granted to developers, administrators 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 previous year, or both) is not possible, a full explanation  
 
Given the nature a nd scope of the programme, no statistical data reflecting the amount of 
incentives per unit are available . 
 
8. Duration of the subsidy and/or any other time -limits attached to it, including date of 
inception/commencement  
 
The duration of the benefits under  Salvadoran legislation is dependent on the type of beneficiary 
(developer, administrator or user of free zones or inward -processing warehouses) and the location 
(within or outside the metropolitan area) . 
 
9. Statistical data permitting an assessment of th e 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 th e production, consumption, imports and exports of the subsidized 
product(s) or sector(s ): 
 
(See Annex  1). 
 
   
  G/SCM/N/315/SLV  
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ANNEX 1  
COMPARATIVE TABLE  
(US$ Million) 
CONCEPT  2015  2016  
(a) World exports  16,406, 919 15,821, 381 
(b) Salvadoran exports  5,485 5,335 
(c) b/a 0.033%  0.034%  
(d) Salvadoran net maquila exports  1,112 1,155 
(e) d/a 0.0068%  0.0075%  
Source : International Monetary Fund, Central Reserve Bank, Ministry of the Economy . 
 
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