G/SCM/N/299/SLV  
26 July 2016  
(16-3964)  Page: 1/3  
Committee on Subsidies and Countervailing Measures  Original: Spanish  
 
  SUBSIDIES 
FINAL TRANSPARENCY NOTIFICATION (FOR 2015) PURSUANT TO THE PROCEDURES IN 
THE GENERAL COUNCIL DECISION IN DOCU MENT WT/L/691 ON THE EXTENSIONS 
UNDER SCM ARTICLE 27.4 OF THE TRANSITION PERIOD FOR THE  
ELIMINATION OF EXPORT SUBSIDIES 
EL SALVADOR  
The following communication, dated 20 July 2016, is being circulated at the request of the 
delegation of El Salvador.  
_______________ 
In accordance with the format of the questionnaire in document G/SCM/6, prepared and adopted 
by the Committee on Subsidies and Countervailing Measures, El Salvador hereby notifies the following: 
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
Incentives for firms operating in free trade zones or in inward-processing warehouses. 
2. Period covered by the notification 
1 January to 31 December 2015 
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. B ACKGROUND  
With a view to creating favourable conditions for sustained economic growth, El Salvador is 
developing and implementing mechanisms to stimulate aggregate demand, enhancing its exportable supply and creating a macroeconomic environment conducive to the establishment of 
investment in the country. The programme of incentives to firms operating in free zones or 
inward-processing warehouses is part of a strategy  that seeks to create more and better jobs for 
Salvadorans, transfer technology, reduce the country's reliance - in terms of its balance of payments - on family remittances from the United States, and promote economic and social 
development, inter alia . G/SCM/N/299/SLV 
- 2 - 
  B. A UTHORITY  
As reported in notification G/SCM/N/253/SL V-G/SCM/N/260/SLV, submitted in 2013, and in 
accordance with its multilateral commitments, El Salvador amended its legislation pursuant to Executive Decree No. 318 of 21 February 2013. 
5. Form of the subsidy (i.e. grant, loan, tax concession, etc.) 
Tax exemptions 
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, the subsidy is 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 and scope of the programme, it is not possible to obtain this information. 
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 legi slation 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 the trade effects of the subsidy. The specific 
nature and scope of such statistics is left to the judgment of the notifying Member. To the 
extent possible, relevant and/or determinable, however, it is desirable that such information 
include statistics of production, consumption, imports and exports of the subsidized 
product(s) or sector(s): 
(See Annex 1) 10. Information concerning the steps taken pursuant to paragraphs 1(e) and 1(f) of the 
Procedures for Continuation of Extensions Pursuant to Article 27.4 of the SCM Agreement of 
the Transition Period under Article 27.2(b) of the SCM Agreement for Certain 
Developing Country Members contained in the General Council Decision in document 
WT/L/691 
As reported in notification G/SCM/N/253/SL V-G/SCM/N/260/SLV, submitted in 2013, and in 
accordance with its multilateral commitments, El Salvador amended its legislation pursuant to 
Executive Decree No. 318 of 21 February 2013. 
   
  G/SCM/N/299/SLV  
- 3 - ANNEX 1 
COMPARATIVE TABLE 
(US$ million) 
CONCEPT 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 
(a) World exports 7,837,800  8,937,700 11,196,100  12,640,600  14,716,900  17,019,465  19,693,890  20,854,876 18,713,353  21,876,684  22,427,572  23,502,426  24,352,872  23,737,603  
(b) Salvadoran exports 2,995.0  3,128.0 3,305.0  3,418.0  3,707.0  3,979.9  4,549.2  3,797.3 4,499.2  5,308.8  5,339.1  5,491.1  5,272.7  5,484.93  
(c) b/a 0.0382%  0.0350% 0.0295%  0.0270%  0.0251%  0.0234%  0.0231%  0.0240% 0.0240%  0.0242%  0.0238%  0.0233%  0.0216%  0.0231%  
(d) Salvadoran net 
maquila exports 474.00  494 465  616 620 564 647 648 666.4  1,201  1,106  1,158.1  1,024  1,112.3  
(e) d/a 0.0060%  0.0055% 0.0042%  0.0049%  0.0042%  0.0033%  0.0033%  0.0041% 0.0035%  0.0054%  0.0049%  0.0049%  0.0045%  0.0047%  
Source: International Monetary Fund, Centra l Reserve Bank, Ministry of the Economy.