WORLD TRADE  
ORGANIZATION  G/AG/N/CRI/20 
16 March 2007 
 
 (07-1097) 
Committee on Agriculture Original:   Spanish 
  
 
NOTIFICATION 
  
 The following communication, dated 9 March 2007, is being circulated at the request of the 
delegation of Costa Rica .  The notification concerns new or modified domestic support measures 
exempt from reduction ( Table DS:2 ). G/AG/N/CRI/20 
Page 2  
 
  Table DS:2 
 
DOMESTIC SUPPORT:  Costa Rica 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
  (1) Full title of measure:   Support for small producers of the Bactris gasipaes  palm  
 (2) Domestic legislation reference: 
 
• Executive Decree No. 28813 MAG-MTSS of 27 June 2000 on Support for Small 
Producers of the Bactris gasipaes  Palm, published in Official Journal ( La Gaceta ) 
No. 146 of 31 July 2000;  
 
• Executive Decree No. 29032 MAG-MTSS of 27 October 2000 relating to amendments to 
Executive Decree No. 28813 MAG-MTSS, publis hed in Official Journal No. 210 of 
2 November 2000.  
 
(3) Detailed description of measure with reference to criteria: 
 
In the second half of 2000, a measure was adopted to provide support for approximately 
1,500 producers of the Bactris gasipaes palm in the Huetar Norte, Atlántica and Brunca 
regions, who had been unable to pay their creditors because business had been seriously 
affected by adverse weather since 1998, leading to state of emergency declarations.  A total of 930 cases were considered, not including tho se benefiting under Law No. 8047 (authorizing 
the National Production Council to clear inter est and legal charges owed by small and 
medium-sized agricultural producers), or tho se eligible among the population covered by the 
Joint Social Assistance Institute (IMAS). 
 
The expenditures under the measure were designed to pay off current and overdue interest in 
respect of some 559 credit operations from 11 financial sources.  The funds were made 
available through the IMAS Comprehensive Poverty Reduction Programme. 
 
The measure conformed to the general criteria set forth in Annex 2, para. 1, of the Agreement 
on Agriculture, given that the support was provided through a publicly funded government programme not involving transfers from consumer s, and that the measure did not have the 
effect of providing price support to producers. 
 
The measure also complied with the policy-specific criteria laid down in Annex 2, para. 8, of the Agreement on Agriculture in respect of payments for relief from natural disasters. 
 (4) Cost of measure:   C 167,700,000 (US$544,144.85 at the annual average exchange rate of 
C 308.19 to the dollar, according to  the Central Bank of Costa Rica).  
 
(5) Date of entry into effect:  27 June 2000. 
 (6) Period of application:   2000 and 2001. 
 
(7) Products to principally benefit (if any individual product):   Bactris gasipaes palm.  G/AG/N/CRI/20 
 Page 3 
 
 
  Table DS:2 
 
DOMESTIC SUPPORT:  Costa Rica 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
  (1) Full title of measure:   Watershed Management Programme  
 
(2) Domestic legislation reference: 
 
Programme activities are governed by: 
 
• Law No. 276 (Water Law of 27 August 1942); 
• Law No. 449 (Establishment of the Costa Rican  Electricity Institute) of 8 April 1949; 
• Law No. 7779 (Soil Use, Management and Con servation) published in Official Journal 
No. 97 of 21 May 1998; 
• Law No. 8023 (Planning and Management of  the Upper Reventazón River Basin) 
published in Official Journa l No. 203 of 24 October 2000.  
 
(3) Detailed description of measure with reference to criteria: 
 
The measure aims to develop field activities and projects in several of the country’s 
watersheds in order to ensure sustainable u se of natural, social and economic resources 
through an integrated and participatory approach .  It consists of environmental awareness, 
agricultural, social, greencover manageme nt, ecosystem information production and 
biological corridor promotion programmes and projects. 
 
The measure seeks to make agricultural producers lo cated in the vicinity of watersheds with 
sources of energy generation aware of the need to adopt special production methods or inputs 
aimed at achieving environmental targets.  It is an aid programme designed to contribute to 
the sustainable management, rehabilitation and conservation of natural resources. 
 
The measure conforms to the general criteria se t forth in Annex 2, para. 1, of the Agreement 
on Agriculture, given that the support has been provided through a publicly funded 
government programme not involving transfers fro m consumers, and that the measure has not 
had the effect of providing price support to producers. 
 
The measure also complies with the general crite ria laid down in Annex 2, para. 2 (General 
Services), of the Agreement on Agriculture, given that the service provided includes research, 
training, and extension and advisory services comp onents delivered in an integrated manner.  
This comprehensive service does not involve di rect payments to producers or processors, but 
it does provide benefits to agri culture and the rural community. 
 
For further information about the measure, see the link to the Costa Rican Electricity 
Institute’s Watershed Management Unit: 
 
http://www.grupoice.com/esp/ele/manejo_cuencas/index.html
 
 
(4) Cost of measure:   US$ 3,366,000 over a period of five years.  G/AG/N/CRI/20 
Page 4  
 
   
(5) Date of entry into effect:  2000.  
 
(6) Period of application:   Indefinite.  
 
(7) Products to principally benefit (if any individual product):   Agriculture in general.   G/AG/N/CRI/20 
 Page 5 
 
 
  Table DS:2 
 
DOMESTIC SUPPORT:  Costa Rica 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
  (1) Full title of measure:   Payment for Environmental Services in Agroforestry Systems  
 (2) Domestic legislation reference: 
 
• Executive Decree No. 31081-MINAE determining the allocation of funds for the payment 
of environmental services in 2003, publis hed in Official Journal No. 61 of 
27 March 2003; 
 
• Handbook of Procedures for the Payment of Environmental Services, published in 
Official Journal No. 84 of 5 May 2003.  
 
(3) Detailed description of measure with reference to criteria: 
 
The programme providing payment for enviro nmental services in agroforestry systems 
consists of economic compensation for land- owning farmers growing multi-purpose forest 
plantations in close combination with annual or perennial crops and/or animal breeding, as an 
effective means of maintaining, rehabili tating and developing forest ecosystems. 
  Agroforestry systems ( Sistemas Agroforestales – SAF) are plantations of timber or 
multi-purpose species associated with crops and/or animal breeding, that is, a series of plant 
species deliberately selected for human use and combined in su ch a way as to resemble a 
natural system.  An SAF begins with annual plants and develops through different sowing 
stages until it becomes an ecosystem made up of economically viable trees and widely diverse crops in the lower canopy.  It consists of a combination of multi-purpose trees and/or bushes with annual and perennial cr ops and farm-bred animals.     Its potential is to generate and 
provide a variety of products for household u se throughout the year.  The principal objective 
is to optimize production and guarantee every household different products and types of 
income at all times of the year, through floris tic diversity and integration of the animal 
component.  The characteristics of an SAF depe nd on numerous factors, in that it resembles a 
tropical forest in terms of its vertical stra ta, the amount of light it provides and its agro-
ecological functions.  It consists of different areas of agricultural management, each with its 
own structure and specific combinations de pending on the purpose it is intended to serve, 
amount of shadow providing a cooler environment for the animals, which in turn determines the kinds of crop selected.  A key factor is the extent and effectiveness of the integration of 
the animal component.  The limits of an SAF ar e determined by a mixture of geophysical and 
social factors, which include family labour and the amount of work invested.  An SAF 
increases the number of species supplying each fami ly with enough quality food products for 
a varied diet, and the sale of production surplu ses generates household income.  The types of 
SAF and the range of trees authorized under the environmental services payment programme 
include the following: 
 
• Timber trees under perennial cultivation:  40-250 trees/ha. 
• Multi-purpose trees under perennial cultivation:  40-277 trees/ha. G/AG/N/CRI/20 
Page 6  
 
  • Timber or multi-purpose trees in rows:  333-500 trees/km. 
• Windbreaker trees:  666-1,000 trees/km. 
• Smaller, 1-ha stands:  625-1,111 trees/ha. 
• Taungya scheme and improved fallow land in indigenous reserves. 
 
 The amount paid for each SAF-grown tree is ¢320 (for 2003), disbursed over a period of 
three years, as follows:  65% the first year, 20% the second year, and 15% the third year. 
 
The measure thus conforms to the general crite ria set forth in Annex 2, para. 1, of the 
Agreement on Agriculture, given that the s upport is provided through a publicly funded 
government programme not involving transfers from consumers, and that the measure does 
not have the effect of providing price support to producers. 
  The measure is also in conformity with the ge neral criteria laid down in  Annex 2, para. 12, of 
the Agreement on Agriculture, given that the support is provided through payments made 
under a clearly defined government environmen tal and conservation programme.  Eligibility 
for payment is subject to the fulfilment of specific conditions. 
 (4) Cost of measure:   C 135,384,600 (US$339,599.16 at the 2003 average exchange rate of 
C 398.66 to the dollar, according to  the Central Bank of Costa Rica).  
 
(5) Date of entry into effect:  As of the date of publication of Executive Decree No. 31081-
MINAE, published in Official Journal No. 61 of 27 March 2003.  
 (6) Period of application:  Five years.  
 (7) Products to principally benefit (if any individual product): 
 
• Timber and multi-purpose trees; 
• livestock; 
• crops in general.  G/AG/N/CRI/20 
 Page 7 
 
 
  Table DS:2 
 
DOMESTIC SUPPORT:  Costa Rica 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
  (1) Full title of measure:   Agricultural Research by the Na tional Institute for Agricultural 
Innovation and Technology Transfer ( Instituto Nacional de Innovación y Transferencia en 
Tecnología Agropecuaria  – INTA)  
 
(2) Domestic legislation reference: 
 
• Law No. 8149 of 5 November 2001 establishing the National Institute for Agricultural 
Innovation and Technology Transfer (INTA), published in Official Journal No. 225 of 
22 November 2001; 
 
• Executive Decree No. 31857-MAG on the Regulations of the Law on the National 
Institute for Agricultural Innovation and T echnology Transfer (INTA), published in 
Official Journal No. 146 of 27 July 2004.  
 
(3) Detailed description of measure with reference to criteria: 
  
The task of the National Institute for Agricu ltural Innovation and Technology Transfer is to 
contribute to the development of Costa Rica’s agricultural sector through research, innovation 
and transfer of technology aimed at creating competitive production systems and food security while accommodating environmental concerns, by providing services and products that meet 
technological needs and improve the quality of life of Costa Rica’s population. 
  The INTA is a fully decentralized body unde r the Ministry of Agriculture and Livestock 
(MAG), with its own legal personality, which is critical to fulfilling its objective and 
managing its assets as well as the funds allocat ed to it under the Law, whether through the 
MAG’s budget or transfers from the Ministry or  other agricultural institutions, and those 
under its own management. 
  The INTA is the official State body specializ ing in innovation, research and transfer of 
agricultural technology, designated as such by Law No. 8149, which enables it to comply with Articles 48 and 49 of the Law on the Pr omotion of Agricultural Production (FODEA) 
No. 7064 of 29 April 1987 and to fulfil a num ber of functions assigned to it under the Law 
that established the Institute and other legislati on, with respect to its sphere of competence. 
  Agricultural research previously under the r esponsibility of the MAG will now be conducted 
by the INTA through research, innovation an d technology transfer programmes aimed at 
developing Costa Rica’s agricultural sector.  As  a result, the INTA will have products and 
services of strategic, environmental and social in terest to the country, mainly geared to small 
and medium-sized producers, without restricti ng the participation of other groups in the 
sector. 
 
The measure conforms to the general criteria se t forth in Annex 2, para. 1, of the Agreement 
on Agriculture, given that the support is pr ovided through a publicly funded government G/AG/N/CRI/20 
Page 8  
 
  programme not involving transfers from consumer s, and that the measure does not have the 
effect of providing price support to producers. 
  The measure is also in conformity with the general criteria on research services, including 
general research, laid down in Annex 2, para. 2(a), of the Agreement on Agriculture, given 
that it does not involve direct paym ents to producers or processors. 
 (4) Cost of measure:  The measure is financed under the State budget.  
 (5) Date of entry into effect:  As of the date of publication of Law No. 8149 in Official Journal 
No. 225 of 22 November 2001.  Its implementation began in 2004.  
 (6) Period of application:  Indefinite.  
 (7) Products to principally benefit (if any individual product):  Agriculture in general.   G/AG/N/CRI/20 
 Page 9 
 
 
  Table DS:2 
 
DOMESTIC SUPPORT:  Costa Rica 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
  (1) Full title of measure:   Support for small and medium-sized agricultural producers affected by 
pre-defined natural phenomena (Law No. 8047)  
 
(2) Domestic legislation reference: 
 
• Law No. 8047 authorizing the National Pr oduction Council to clear interest and 
legal charges owed by small and medium-s ized agricultural producers, published in 
Official Journal No. 226 of 24 November 2000; 
 
• Executive Decree No. 29115-MAG (Regulations of Law No. 8047 of 
24 November 2000) published in Offici al Journal No. 230 of 30 November 2000; 
 
• Executive Decree No 30229-MAG, amending the Regulations of the Law 
authorizing the National Production Council to clear interest and legal charges owed 
by small and medium-sized agricultural produ cers, published in Official Journal No. 
65 of 4 April 2002: 
 
• Executive Decree No. 27402-MP-MOPT declaring a state of national emergency on 
the Pacific coast in the wake of Hurricane Mitch, the entry into effect of which was 
modified by Executive Decree No. 27909 of  21 April 1999 published in Official 
Journal No. 211 of 30 October 1998; 
 
• Executive Decree No. 27909 modifying the date of  entry into effect of the state of 
national emergency on the Pacific coast in  the wake of Hurricane Mitch, established 
in Executive Decree No. 27402, publis hed in Official Journal No. 110 of 
8 June 1999; 
 
• Executive Decree No. 28009-P-MOPT extending the declaration of state of 
emergency on the Pacific coast in the wake of Hurricane Mitch, published in 
Official Journal No. 144 of 26 July 1999; 
 
• Executive Decree No. 28178-MP-MOPT modifying the state of emergency in the 
wake of a natural disaster on the Pacific coast, published in Official Journal No. 215 of 5 November 1999; 
 
• Executive Decree No. 28197-MP-MOPT, modify ing the state of emergency in the 
wake of a national disaster on the Pacific coast, published in Official Journal No. 215 of 5 November 1999; 
 
• Executive Decree No. 28399-MP, declaring a st ate of emergency in the cantons of 
Limón, Matina, Talamanca, Siquirres, Guácimo and Pococí in the province of Limón, Turrialba, Paraíso and Jiménez in th e province of Cartago, and Sarapiquí in 
the province of Heredia, published in Offi cial Journal No. 25 of 4 February 2000; G/AG/N/CRI/20 
Page 10  
 
   
• Executive Decree No. 28524-MP, amending D ecree No. 28399-MP, which declares 
a state of emergency in the cantons of Limón, Matina, Talamanca, Siquirres, Guácimo and Pococí in the province of Li món, Turrialba, Paraíso and Jiménez in 
the province of Cartago, and Sarapiquí in  the province of Heredia, published in 
Official Journal No. 63 of 29 March 2000.  
 
(3) Detailed description of measure with reference to criteria: 
 
For the purposes of providing relief in the event of natural disasters, in this instance the 
disaster ensuing from Hurricane Mitch in 1998, st ate of emergency declarations were issued 
concerning various segments of the country’s population, i.e. those dependent on agriculture.  
The declarations were issued under Executive Decrees Nos. 27402-MP-MOPT, 28009-P-MOPT, 28178-MP-MOPT, 28197-MP-MOPT, 28399-MP, and 28524-MP. 
  Because of the crop losses caused by this natu ral disaster, the Government authorized the 
National Insurance Institute to transfer th e sum of C 1 billion to the National Production 
Council to enable small agricultural producers affected by the disaster to settle their 
outstanding interest payments and legal costs,  thus helping them re-enter the country’s 
financial system and giving them the ch ance to rebuild their production system. 
 
The measure conformed to the general criteria set forth in Annex 2, para. 1, of the Agreement 
on Agriculture, given that the support was provided through a publicly funded government 
programme not involving transfers from consumer s, and that the measure did not have the 
effect of providing price support to producers. 
 
The measure also complied with the general cr iteria laid down in Anne x 2, para. 8, of the 
Agreement on Agriculture, given that the support was provided by way of government 
financial participation towards relief from natural disasters. 
 (4) Cost of measure:   C 1 billion (US$3,244,751.61 at th e 2000 average exchange rate of 
C 308.19 to the dollar, according to  the Central Bank of Costa Rica).  
 
(5) Date of entry into effect:  24 November 2000.  
 (6) Period of application:  2000-2004.  
 (7) Products to principally benefit (if any individual product):  Agriculture in general.  
 
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