WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/USA/54 
26 July 2012  
 
(12-4095) 
Committee on Subsidies  
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Questions Posed by CANADA Regarding the New and  
Full Notification of the UNITED STATES1 
   The following communication, dated 24 July 2012, is being circulated at the request of the Delegation of Canada.  
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AGRICULTURE 
 Export Assistance Programmes 
 
The Dairy Export Incentive Programme (DEIP) 
 
Question 1 
  According to the notification, the United States provides bonuses through the Commodity 
Credit Corporation (CCC) intended to enable exporte rs to compete at commercial prices in selected 
foreign markets.  The full amount of this s ubsidy in 2009 equalled ove r 21 million dollars in 
budgetary outlays.  Could the United States identify th e criteria used to determine whether an exporter 
requires assistance to be compe titive in selected foreign markets?  Are any foreign markets 
specifically targeted by this programme?   
 
Agricultural domestic support programmes 
 Agriculture Income Support and Marketin g Assistance for Covered Commodities   
 
Question 2  
 The United States reports several programmes and also large amounts of support under the 
title Agriculture Income Support and Marketing A ssistance for Covered Comm odities and states that 
"It is difficult to determine to what extent, if an y, these programmes have affected trade, given the 
existence of other policy instruments that affect ag ricultural trade".  What are the other instruments 
that affect agricultural trade a nd where are they reported?    
 
                                                      
1 G/SCM/N/220/USA.   G/SCM/Q2/USA/54 
Page 2  
 
  Question 3 
 
 Regarding Direct Payments, Counter-Cyc lical Payments, Non-Recourse Marketing 
Assistance Loans and Loan Deficiency Payments, and Average Crop Revenue Election, what are the 
amounts for each individual commodity that make up the reported total amounts?   
 
Crop Insurance  
 
Question 4  
  The United States reports a revised amount fo r 2008 comprising only premium subsidies.  We 
appreciate the transparency provided through this revision.  We understand large amounts are also provided to insurance companies in the form of "underwriting gains".  Where are those subsidies 
notified?    
 
FISHERIES  
Fisheries Finance Program (FFP)  
 Question 5  
 Canada notes that under the Fisheries Finance Program (FFP), loans are provided directly to 
individuals or business enterprises that have qualifie d projects.  Could the United States elaborate on 
the criteria for qualified projects to be eligib le to receive support under this programme? 
 
SHIPYARDS 
 
Assistance to Small Shipyards Grant Programme  Question 6  
 The notification states that the SSGP provides grants for capital and related improvements to 
qualified small shipyard facilities, and that small sh ipyards fall into two categories: those with fewer 
than 600 employees, and those with between 600 and 1200 employees.  Could the United States 
elaborate on the criteria for small shipyards to be eligible to receive support under this programme?  
The notification provides information concerning th e starting date of the programme.  Could the 
United States confirm the expected ending date of the programme?     OTHER  New Markets Tax Credit 
 
Question 7 
 
 Could the United States provide any eligibility criteria for this programme in addition to 
making an equity investment in a CDE programme?  Could the United States elaborate on the criteria to be considered a CDE?  Specifically, how is a domestic enterprise's "primary mission to serve or provide investment capital for low-income co mmunities or individuals" defined?  Could the 
United States specify which companies or types of companies have received support under this 
programme? 
  G/SCM/Q2/USA/54 
 Page 3 
 
 
  Attachment 1 – Sub-federal Programmes 
 
Question 8 
 
 It is our understanding that in 2010, gover nment support was provided for the establishment 
of a new manufacturing facility of Electrolux in Memphis.2  Could the United States specify whether 
this support was provided under one of the notifie d programmes?  If not, could the United States 
explain why this programme was not notified?    
Question 9 
 
 Canada notes that support measures that favour  United States Virgin Island and Puerto Rico 
rum producers were not notified, in particular th e molasses subsidy and the federal excise taxes on 
rum that are returned to the treasu ries of the United States Virgin Isla nds and Puerto Rico.  Could the 
United States provide information on the molasses subsidy indicating the amount of the subsidy and 
the enterprises that have benefited from this subsi dy?  Could the United States indicate the amount of 
the federal excise taxes on rum that were returned to  the treasuries of the United States Virgin Islands 
and Puerto Rico?  Could the United States indicate th e current status of the molasses subsidy program 
and the federal excise tax reimbursement program for rum?  
Delaware 
 
Gross Receipt Tax Reductions for targeted i ndustries locating within a targeted area 
 
Question 10 
  Could the United States specify what the targeted industries are?   
 
Gross Receipt Tax Reductions for targeted industries 
 
Question 11 
  Could the United States specify what the targeted industries are?   
 
New York  
 
Qualified Empire Zone Enterprise Initiatives 
 
Question 12 
 
 Could the United States elaborate on the criteria to be considered a "qualified business" to be eligible to receive support under this programme?  
                                                      
 2 http://news.tn.gov/node/6486 , and 
http://www.cityofmemphis.org/framework.aspx?page=5 70&search?q=electrolux& btnG=Search&site=my_colle
ction&client=my_collection&proxystylesheet=my_collection&output=xml_no_dtd  G/SCM/Q2/USA/54 
Page 4  
 
  South Carolina 
 
Economic Development General Obligation Bond 
 
Question 13  
  Could the United States specify which industries or types of industries have received support 
under this programme?  Could the United States sp ecify the amount of grant money disbursed under 
this programme?  Fee-in-lieu of Local Property Taxes 
 
Question 14 
 
 Could the United States elaborate on the criteria to  be considered a "qualifying investment" to 
be eligible to receive support under this progr amme?  Could the United States specify which 
industries or types of industries have  received support under this programme? 
 
Jobs Development Credit 
 
Question 15 
 
 Canada understands that this tax credit is discretionary.  Could the United States specify 
which industries or types of industries have r eceived support under this programme?  Could the 
United States specify if any revenue has been foregone?  Can the tax credit granted under this 
programme be provided in addition to the tax cr edit under the Jobs Tax Credit for New Job Creation 
programme? 
 
Texas  
 
Product/Business Fund 
 
Question 16  
 Could the United States provide information with respect to these loans,  such as the interest 
rate, term, etc.?  Could the United States specify wh ich industries or types of industries have received 
support under this programme? 
 
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