WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/MEX/19 
24 August 2011 
 (11-4212) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Questions Posed by the UNITED STATES Regarding the New and Full 
Subsidy Notification of MEXICO1 
   The following communication, dated 4 August 2011, is being circulated at the request of the 
Delegation of the United States. 
 
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 1. We welcome the submission of Mexico's subsid y notification.  We note that Mexico had not 
previously provided a subsidy notification for several  years.  Has Mexico taken any steps to ensure 
that its future subsidy notifications are submitted on a more timely basis?     
 Publicly available information indicates that  Mexico administers several support programmes 
that may meet the notification requirements set fo rth under Article 25 of the SCM Agreement.  Please 
explain why the programmes below should not be no tified or provide the information required under 
Article 25 of the SCM Agreement.  
2. State Subsidy Programmes 
 
 Page 80, paragraph 250 of the Secretariat' s Report for Mexico's 2008 Trade Policy Review 
(TPR), WT/TPR/S/195/Rev.1 (2 May 2008), states that "In addition to the promotion programmes implemented at the Federal level, the states also ha ve mechanisms to promote economic activities.  In 
general terms, the support consis ts of financial assistance channelled to specific economic agents, 
mainly micro, small and medium-sized enterprises through trust funds.  In some cases, the assistance 
may also include tax concessions.  In October 2007,  the CIPI's [Interministerial Industrial Policy 
Commission] inventory contained information on around 531 programmes in 31 states." 
 
3. Tax incentives for the cinematographic industry 
 
 Page 81, paragraph 256 of the Secret ariat's Report for Mexico's 2008 TPR, 
WT/TPR/S/195/Rev.1 (2 May 2008), provides a table of subsidy programmes administered by several Ministries, including the Tax incentives for the cine matographic industry programme. Also, according 
to publicly available sources, "the  government will reimburse producers 7.5 per cent of their expenses 
if they spend more than $5.5 million during filming or $1.6 million in post-production." 
 
                                                      
1 G/SCM/N/220/MEX. G/SCM/Q2/MEX/19 
Page 2  
 
  4. PROSEC Sectoral Import Duty Reductions 
 
 Page 80, paragraph 252 of the Secret ariat's Report for Mexico's 2008 TPR, 
WT/TPR/S/195/Rev.1 (2 May 2008), states "Companies with PROSECs that manufacture particular goods may import various inputs to be used to produce those goods at a reduced tariff, irrespective of 
whether the goods are to be exported or are for the domestic market."  
 5. NAFIN 
 
 Page 83, paragraph 259 of the Secret ariat's Report for Mexico's 2008 TPR, 
WT/TPR/S/195/Rev.1 (2 May 2008), provides a tabl e of credit and financial services of the NAFIN. 
The Foreign trade service is described as "Foreign cu rrency financing for companies with the aim of 
supporting their foreign trade transactions."  6. IMMEX Programme 
 
 Page 66, Paragraphs 175 - 193 of the S ecretariat's Report for Mexico's 2008 TPR, 
WT/TPR/S/195/Rev.1 (2 May 2008), describes the various export promotion incentives that are 
available to exporting enterprises under the IMME X programme, including deferment and reduction 
of tariffs and VAT payments.  
 In so much as the incentives provided under this programme are contingent upon export 
performance, it appears that the programme could be considered a prohibited export 
subsidy, under Article 3.1 of the SCM Agre ement.  Please explain how this programme 
conforms with Mexico's obligations  under the Subsidies Agreement.  
 7. ALTEX Programme 
 
 Page 69, paragraph 195 of the Secret ariat's Report for Mexico's 2008 TPR, 
WT/TPR/S/195/Rev.1 (2 May 2008), states that "Non-pe troleum exporters of g oods exporting directly 
for an amount of US$2 million or the equivalent of 40 per cent of their annual sales are eligib le for the 
Programme; producers with indirect exports corres ponding to 50 per cent of their annual sales and 
foreign trading companies are also eligible." 
 
 In so much as the incentives provided under this programme are contingent upon export 
performance, it appears that the programme could be considered a prohibited export 
subsidy, under Article 3.1 of the SCM Agre ement.  Please explain how this programme 
conforms with Mexico's obligations  under the Subsidies Agreement.  
 
8. ECEX Programme 
 
 Page 69, paragraph 197 of the Secret ariat's Report for Mexico's 2008 TPR, 
WT/TPR/S/195/Rev.1 (2 May 2008), states that th is programme "is intended for two types of 
enterprise: "export consolidators", which must have minimum capital of Mex$2 million and export 
the products of at least five producers; and "export promoting" companies, which must have minimum 
capital of Mex$200,000 and export goods  of at least three producers." 
 
 In so much as the incentives provided under this programme are contingent upon export 
performance, it appears that the programme could be considered a prohibited export 
subsidy, under Article 3.1 of the SCM Agre ement.  Please explain how this programme 
conforms with Mexico's obligations  under the Subsidies Agreement.  
   G/SCM/Q2/MEX/19 
 Page 3 
 
 
  9. BANCOMEXT  and ProMexico 
 
 Page 70, paragraph 200 of the Secret ariat's Report for Mexico's 2008 TPR, 
WT/TPR/S/195/Rev.1 (2 May 2008), states that "The main instruments used by the Bank to provide financial support are:  loans to exporting companies to finance their working capital, export sales and 
export-related investment projects;  lines of credit for importers of Mexican goods and services;  
insurance, collateral and pre- and post-export gua rantees for commercial financing;  as well as other 
financial services to facilitate export transactions such as letters of credit and trust fund services." 
 
 In so much as the incentives provided under this programme are contingent upon export 
performance, it appears that the programme could be considered a prohibited export 
subsidy, under Article 3.1 of the SCM Agre ement.  Please explain how this programme 
conforms with Mexico's obligations  under the Subsidies Agreement.  
 10. National Finance Company 
 
 Page 72, paragraph 209 of the Secret ariat's Report for Mexico's 2008 TPR, 
WT/TPR/S/195/Rev.1 (2 May 2008), states that this  development bank "provides support for exports 
through several foreign trade financing programmes."  
 In so much as the incentives provided under this programme are contingent upon export 
performance, it appears that the programme could be considered a prohibited export 
subsidy, under Article 3.1 of the SCM Agre ement.  Please explain how this programme 
conforms with Mexico's obligations  under the Subsidies Agreement.  
 
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