WORLD TRADE  
ORGANIZATION  G/SCM/Q2/EEC/57 
1 February 2010 
 (10-0492) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Questions Posed by CANADA regarding the New and Full  
Notification of the EUROPEAN UNION1 
 
  The following communication, dated 25 January 2 010, is being circulated at the request of the 
Delegation of Canada.    
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Question 1 
 Section 1:  Export Refunds 
 
 The notification indicates continued use of export subsidies in a number of products, 
including sugar, fruits and vegetables, wine, beef an d pork.  In particular, Canada takes note of the 
sharp increase in export refunds provided to Pigm eat from 2007 to 2008.  Does the EU anticipate that 
these high levels of export refunds will continue in the future?   
 
Question 2 
 Section 2.1:  Cereals 
 
 The notification indicates a production refund is available for certain starches used in the 
manufacture of certain products.  Could the EU el aborate on the intended purpose of this support and 
the types of producers who receive it?    
Question 3 
 
Section 2.6:  Fruits and vegetables  
 Could the EU elaborate on Producer Organisati ons and in particular the crisis management 
operations of these organisations?    Question 4  Section 2.7:  Wine 
 
 There are a number of elements that support th e wine sector, in particular "Restructuring and 
conversion of vineyards" and "Grubbing up" where su pport is provided to certain vineyards to change 
                                                     
 
1 G/SCM/N/186/EEC.   G/SCM/Q2/EEC/57 
Page 2  
 
  their grape varieties to those that are more commerc ial.  Could the EU elaborate on the potential trade 
effects of this support?  There is also a shift to  use of national financial envelopes, which includes 
support for promotion on third-country markets.  Could the EU elaborate on how these envelopes will 
be used and monitored?   Question 5  Section 2.9:  Other plant products, Dried fodder (page 28) 
 
 Processors of dried fodder, who meet certa in conditions, can receive a processing aid of 
€33/tonne.  Could the EU elaborate on the intended purpose of this support?  
 
Question 6 
 Section 3.12:  Payments to starch potato producers 
 
 Could the EU elaborate on the intended purpo se of this support and the types of producers 
who receive it?    
Question 7 
 
Axis I:  Improving competitiveness for farm ing and forestry, Modernisation of agricultural 
holdings (page 51)  
 
 Could the EU elaborate on the types of "tangible and/or intangible investments" that have received support?   
 
Question 8 
 European Fisheries Fund  
 The notification from the European Commun ities states that the European Fisheries 
Fund (EFF) is the successor to the Financial Instru ment of Fisheries Guidan ce (FIFG) and that the 
EFF budget was €428 million in 2007 a nd €611 million in 2008.  Alt hough some EC member states 
have notified programmes under the FIFG, no me mber states have notified programmes under 
the EFF.    
 Please explain why the following EC member  states, which we unde rstand have operational 
programmes funded through the EFF, have not notified any programmes related to this fund:  Austria, 
Bulgaria, Cyprus, Germany, Denmark, Estonia, Spai n, Finland, France, Greece, Italy, Lithuania, 
Latvia, Netherlands, Portugal, Romania, Sweden, and Slovakia.     If the programmes are notifiable, please provide  all relevant information as stipulated under 
Article 25.   
 
Question 9 
 Production subsidies to shipbuilding  
 
 The notification of Italy states that the EC council regulation EC No 1540/98 provided for interest subsidies under Italy's Measures for Invest ments in the Naval Sector (page 3 of Italy's 
notification) for a period of 12 years.  The notifications of Italy also states that EU Law 132/94 provides for grants to shipyards for the production of ships (page 3 of Italy's notification).  However,  G/SCM/Q2/EEC/57 
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  the EU's response to a question based on its 2005  notification, indicated that according to the 
EC Regulation No. 1177/2002 of 27 June 2002, concerning a temporary defensive mechanism to 
shipbuilding, production aids granted to final c ontracts signed within 31 March 2005 would not be 
renewed or replaced.  Given that production aids and support to the European shipbuilding sector 
appears to be continuing on without any identifi ed termination date, could the EU provide an 
explanation as to why support for this sector is still  in place and whether such aid, including in the 
case of Italy, will be terminated?     
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