WORLD TRADE  
ORGANIZATION  G/SCM/Q2/USA/43 
18 March 2011 
 (11-1368) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Questions posed by INDIA regarding the New and Full  
Notification of the UNITED STATES1 
 
  The following communication, dated 15 March 2011, is being circulated at the request of the delegation of India.  
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AGRICULTURE 
 
I. EXPORT ASSISTANCE PROGRAMME 
(a) The Dairy Export Incentive Program (DEIP) 
Question: 
 
 How does the U.S. propose to calculate the maximum quantity of subsidized U.S. exports 
under the DEIP to ensure adherence to the WTO limits? 
 
II. AGRICULTURAL DOMESTIC SUPPORT PROGRAMS 
(a) Agriculture Income Support and Marke ting Assistance for Covered Commodities 
(b) Price Support for Milk and Sugar 
Questions: 
 
(i) US may please indicate the manner in which dairy farm operators are 
identified in respect of receiving the benefits under the 2002 Farm Act.  
Specifically, are the minimum prices a pplicable to all government purchases 
of non-fat dry milk, butter, and cheese?  What is the quantum of government purchases relative to total production? 
(ii) Are all milk producers eligible to enter into the 'Milk Income Loss 
Contracts'?  What are the threshold criteria to qualify for such contracts? 
                                                     
 
1 G/SCM/N/186/USA. G/SCM/Q2/USA/43 
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  (iii) In respect of the non-recourse programme for sugar, who are the 
beneficiaries:  both growers and processors or only processors?  How does the 'marketing allotments' work? 
(iv) In respect of both the dairy and sugar s ubsidies, what is the share of returns 
for the farmer/grower/processor that the subsidy represents? 
(v) What is the share of the subsidies relative to production costs? 
3. Energy Supply -- Renewable Energy Resources 
 
4. Energy Conservation Programs -- Transportation Sector 
 
5. Energy Conservation - Industry Sector 
 
6. Fossil Energy Research and Development 
 
(i) Who are the 'eligible private parties'  for CRADAs relating to the subsidies 
outlined in each of the four notifications specified above?  It is requested to 
provide a list of such parties for FY 2007 and 2008, in respect of which the U.S. notification provides data. 
(ii) What is the nature of R&D that has been developed under the CRADAs 
entered into in FY 2007 and 2008? 
(iii) Could the US provide a list of products and technologies resulting from 
CRADA and other funding in respect  of the aspects covered under the 
notifications (renewable energy, energy efficiency in transportation and industry, and fossil fuel related research) over a 10-year time period?  Could the US provide the extent to which such funding has impacted costs of 
domestic production? 
(iv) How has such funding impacted the pricing of the product developed/ license 
fees in relation thereto?  What has been  the 'license fees' or royalty charged 
by private developers who have benef ited from such funding?  What is the 
proportion of use in the domestic mark et and exports of such products? 
(v) Are there different types of CRADA, or  do they follow a similar format?  
Can the US provide the copies of typical CRADAs used? 
(vi) What are "other forms of collaboration accomplished through 
consortium-based activities between gove rnment laboratories and private 
industry", and who are the users of the R&D developed through such collaboration in each of the categories covered by the notifications?  G/SCM/Q2/USA/43 
 Page 3 
 
 
  7. Innovative Technology Loan Guarantee Program  
 
Questions: 
 
(i) What are the terms and conditions of the loan guarantee agreements under the 
program? 
(ii) How do they address the issue of fully covering the government's cost of 
providing the guarantees? 
 
FISHERIES 
 
 
1. Fisheries Finance Program (FFP)  
 
2. Saltonstall-Kennedy Grant Program:  Fisheries Research and Development  
 
3. Sea Grant 
 
4. Columbia River Hatcheries  
 
Questions: 
 
(i) Fisheries Finance Program (FFP) .  In respect of the FFP: 
(a) How does the U.S. ensure that ther e is no financing of any project 
that could be construed to lead to  overcapitalization of any fishery? 
(b) How are 'qualified projects' ascertained for availing of the loan? 
(c) What is the difference between the in terest rate for a FFP loan and for 
a commercial loan?  If the interest rates are the same, why would a recipient opt for a FFP loan?  What is the benefit in such a loan? 
(d) On what basis does the U.S. conclude that there is no 'net outflow of 
government funds'? 
(e) What are the other pertinent details of the Buy-back Loan to Bering 
Sea Aleutian Islands? 
(ii) Saltonstall-Kennedy Grant Program (R&D)
: 
(a) Who are the entities within the meaning of the Shipping Act to whom 
the subsidies can be provided? 
(b) Are all juridical persons incorporated in the U.S. eligible for funding? 
(c) How does the U.S. ensure that the research results are placed in the 
public domain (as claimed in their assessment on 'Trade effects')? G/SCM/Q2/USA/43 
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  (iii) Sea Grant Program:
 
(a) What is the nature of research results from this program?  Who 
benefits from the research done? 
 
METALS, MINERALS AND EXTRACTION (NON-FUEL) 
 
 
1. Excess of Percentage over Cost De pletion for Non-fuel Minerals 
 
2. Expensing of Exploration and Deve lopment Costs for Non-fuel Minerals 
 
3. Emergency Steel Loan Guarantee Program 
 
Questions: 
 
(i) Excess of Percentage over Cost Depletion for Non-fuel Minerals : 
 
(a) How are depletable expenditures or 'cost depletion' assessed? 
(b) How is the pricing of such minerals pursuant to the tax concession 
both in domestic and export markets is assessed? 
 
(ii) Expensing of Exploration and De velopment Costs for Non-fuel Minerals  
(a) How non-fuel mineral producers and royalty owners are permitted 
expensing of certain capital outlays associated with the development of non-fuel minerals rather than amortization over the life of the mine for federal income tax purposes? 
(b) What is the impact of the subsidy on pricing of the product in 
domestic and export markets? 
 
  
TIMEPIECES AND JEWELLERY 
 
1. The Insular Possessions Watch and Jewellery Programs . 
 
Question: 
  Whether all watches benefiting from the duty exemption are shipped only into the U.S? 
  G/SCM/Q2/USA/43 
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OTHER 
 
 1. Empowerment Zones and Renewal Communities 
 
2. New Markets Tax Credit 
 
Questions: 
 
(i) What is the nature of markets and trad ing activities that are prevalent in these 
regions? 
(ii) What is the contribution of the subs idies to product development for both 
domestic and export markets? 
 
 
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