WORLD TRADE  
ORGANIZATION  G/SCM/N/186/MKD 
8 October 2010 
 (10-5173) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 of the  
GATT 1994 and Article 25 of the Agreement on  
Subsidies and Countervailing Measures  
 
FORMER YUGOSLAV REPUBLIC OF MACEDONIA 
   The following communication, dated 5 October 2010, is being circulated at the request of the 
Delegation of the Former Y ugoslav Republic of Macedonia. 
 
_______________ 
 
  The notification covers years 2007, 2008 and 2009 and has been drawn up on the basis of the 
data supplied by the institutions in charge of the st ate aid.  The amount of aid is shown in Macedonian 
Denars (MKD).  The notification covers the programm es in the following categories:  textile industry, 
cluster association, competitiveness programme, and re gional state aid.  The information provided in 
this notification is for transparency purpose.  
 
I. TEXTILE INDUSTRY  
1. Title of the subsidy progra mme, if relevant, or brief descr iption or identification of the 
subsidy  
   "Programme for Revitalization of Textil e Industry in the Republic of Macedonia"  
 
2. Period covered by the notification
 
  2009.  
3. Policy objective and/or purpose of the subsidy
 
  The support is given for:    1.1 Technological development;  and 
  1.2 Development of human resources. 
 4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted ) 
  Programme for Support of Textile Industry in  the Republic of Macedonia, published in the 
Official Gazette No. 3/2009 and Law on the Budget of the Republic of Macedonia for 2009, published 
in the Official Gazette 166/2008.  Authority respons ible for the subsidy:  Ministry of Economy. G/SCM/N/186/MKD 
Page 2  
 
  5. Form of the subsidy (i.e., grant, loan, tax concession, etc.
) 
  The subsidy is granted in the form of grant.  6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how 
determined ) 
  The support is given in the form of compensation of a part of the expenses of the companies.  The Ministry of Economy compensates 75 per cent of the evidenced expenses of the companies, but 
not more than 180.000 MKD for each company. 
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous 
year).  Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
  The annual amount budgeted for the subsidy is:    1.1 Technological development – 1.100.000 MKD and   1.2 Development of human resources – 1.100.000 MKD 
 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
   The company contract has duration of one year. 
 
9. Statistical data
 
  Such statistical data on trade effects of the Programme for Support of Textile Industry in the 
Republic of Macedonia is not available.  The subs idy is given mostly to small and medium sized 
companies and there is a very small effect on trade. 
 
II. CLUSTER ASSOCIATION 
 
1. Title of the subsidy progra mme, if relevant, or brief descr iption or identification of the 
subsidy  
 
 "Programme for Support and Development of  Cluster Association in the Republic of 
Macedonia"   2. Period covered by the notification
 
 
 2009. 
 3. Policy objective and/or purpose of the subsidy
 
  The purpose of the subsidy is management strengt hening of the clusters and realization of the 
planned project activities. 
  G/SCM/N/186/MKD 
 Page 3 
 
 
  4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted ) 
  Programme for Support and Development of Cluster Association in the Republic of 
Macedonia, published in the Official Gazette No. 3/2009 and Law on the Budget of the Republic of 
Macedonia for 2009, published in the Official Gaze tte No. 166/2008.  Authority responsible for the 
subsidy:  Ministry of Economy. 
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc. ) 
 
 The subsidy is granted in the form of grant. 
 
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how 
determined ) 
 
 The support is given for: 
 
1.1 Projects for networking of cluster associations in the EU and in the region;  
and 
 1.2 Assistance for establishment of new clusters. 
 
 The support is given in the form of compensation of a part of the expenses of the companies.  The Ministry of Economy compensates 75 per cent of the evidenced expenses of the companies. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous 
year).  Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
  The annual amount budgeted for the subsidy is 600.000 MKD of which for: 
 
1.1 Projects for networking of cluster associations in the EU and in the region - 
300.000 MKD;  and 
 
  1.2 Assistance for establishment of new clusters - 300.000 MKD. 
 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
 The company contract has duration of one year. 
  
9. Statistical data  
 
 Statistical data on trade effects of the Progr amme for Support and Development of Cluster 
Association in the Republic of Macedonia is not availa ble.  The subsidy is given mostly to small and 
medium sized companies and there is a very small effect on trade. 
 G/SCM/N/186/MKD 
Page 4  
 
  III. COMPETITIVENESS PROGRAMME 
 
A. Y
EAR 2007 
 1. Title of the subsidy progra mme, if relevant, or brief descr iption or identification of the 
subsidy  
 
 "Programme for Improvement of the Competitiveness of the Macedonian Products and 
Services in 2007". 
2. Period covered by the notification  
  2007.  3. Policy objective and/or purpose of the subsidy
 
 
 The objective of the subsidy is to incr ease the competitiveness of the Macedonian economy 
through support of the enterprises, to accelerate th e introduction of the international standards, to 
increase the capability for innovation of the compan ies, better flexibility and cooperation with the 
research institutions.  
4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted ) 
  The Programme for Improvement of the Competitiveness of the Macedonian Products and Services in 2007, published in the Official Gazette  No. 65/2007 and 38/2007;  Law on the Budget of 
the Republic of Macedonia for 2007, published in  the Official Gazette no.139/2006.  Authority 
responsible for the subsidy:  Ministry of Economy.  5. Form of the subsidy (i.e., grant, loan, tax concession, etc.
) 
  The subsidy is granted in the form of grant. 
 
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how 
determined ) 
 
 The support is given in the form of compensation of a part of the expenses of the 
companies for:  
 1.1 Certification of quality systems ISO/HACCP standards;  1.2 Preparation of promotion materials (CD;  Web;  catalogues);  1.3 Internet connection;  and 
 1.4 Prepared idea solution for industrial design of product. 
  The Ministry of Economy compensates 50 per cen t of the evidenced e xpenses separately per 
each company, but not more than:  
 1.1 60.000 MKD for certification of quality systems ISO/HACCP; 
 1.2 60.000 MKD for preparation of promotion materials;  1.3 30.000 MKD for Internet connection;  1.4 20.000 MKD for prepared idea solution for industrial design of product. 
  G/SCM/N/186/MKD 
 Page 5 
 
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous 
year).  Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
 
 The annual amount budgeted for the subsidy is:  57.000.000 MKD.   
 8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
 The company contract has duration of one year. 
 9. Statistical data
 
  Such statistical data on trade effects of the Programme for Improvement of the 
Competitiveness of the Macedonian Products a nd Services in 2007 is not available.  
 B. Y
EAR 2008 
 1. Title of the subsidy progra mme, if relevant, or brief descr iption or identification of the 
subsidy  
  
 "Programme for Improvement of the Competitiveness of the Macedonian Products and Services in 2008"  2. Period covered by the notification
 
 
 2008.  3. Policy objective and/or purpose of the subsidy
 
  The objective of the subsidy is to incr ease the competitiveness of the Macedonian economy 
through support of the enterprises, to accelerate th e introduction of the international standards, to 
increase the capability for innovation of the compan ies, better flexibility and cooperation with the 
research institutions.   4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted)  
  The Programme for Improvement of the Competitiveness of the Macedonian Products and Services in 2008, published in the Official Gazette  No. 2/2008;  Law on the Budget of the Republic of 
Macedonia for 2008, published in the Official Gaze tte No. 160/2007.  Authority responsible for the 
subsidy:  Ministry of Economy. 
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.
) 
  The subsidy is granted in the form of grant.  G/SCM/N/186/MKD 
Page 6  
 
  6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how 
determined ) 
  The support is given in the form of compensation of a part of the expenses of the 
companies for: 
1.1 Certification of quality systems ISO/HACCP/EUREPGAP/SA 8000 
standards; 
1.2 Internet connection; 1.3 Prepared idea solution for industrial design of product;  and 
1.4 IT training of the employees. 
  The Ministry of Economy compensates 50 per cen t of the evidenced e xpenses separately per 
each company, but not more than: 
1. 60.000 MKD for certification of quality systems 
ISO/HACCP/EUREPGAP/SA 8000 standards; 
2. 20.000 MKD for Internet connection; 3. 20.000 MKD for prepared idea solution for industrial design of product;  and 4. 15.000 MKD for IT training of the employees.  
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous 
year).  Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
  The annual amount budgeted for the subsidy is:  35.000.000 MKD which includes: 
 
1. Improving competitiveness of the pr ivate companies – 5.000.000 MKD; 
2. Services supplied (business forums , workshops, international fairs – 
30.000.000 MKD. 
 8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  2008.   9. Statistical data
 
 
 Such statistical data on trade effects of the Programme for Improvement of the 
Competitiveness of the Macedonian Products a nd Services in 2008 is not available.  
 C. Y
EAR 2009 
 
1. Title of the subsidy progra mme, if relevant, or brief descr iption or identification of the 
subsidy  
  "Programme for Improvement of the Competitiveness of the Macedonian Products and Services in 2009"  
  G/SCM/N/186/MKD 
 Page 7 
 
 
  2. Period covered by the notification  
  2009.  3. Policy objective and/or purpose of the subsidy
 
 
 The objective of the subsidy is to incr ease the competitiveness of the Macedonian economy 
through support of the enterprises, to accelerate th e introduction of the international standards, to 
increase the capability for innovation of the compan ies, better flexibility and cooperation with the 
research institutions. 
4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted ) 
  The Programme for Improvement of the Competitiveness of the Macedonian Products and Services in 2009, published in the Official Gazette  No. 3/2009, 118/2009 a nd 150/2009;  Law on the 
Budget of the Republic of Macedoni a for 2009, published in the O fficial Gazette No. 166/2008.  
Authority responsible for the subsidy:  Ministry of Economy.  5. Form of the subsidy (i.e., grant, loan, tax concession, etc.
) 
  The subsidy is granted in the form of grant. 
 
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how 
determined ) 
 
 The support is given for: 
 
1. Improving competitiveness of the private companies which includes: 
   1.1 Compensation for certification of quality systems 
ISO/HACCP/EUREPGAP/SA 8000 standards; 
 1.2 Compensation for prepared id ea solution for industrial design of 
product placed on the market during the last three years;   
 1.3 Compensation of international app lication for patent, that is, request 
for complete examination of the application. 
 
2. Services supplied by private compan ies for:  business forums, workshops, 
international fairs, and preliminary activities for Shanghai – EXPO 2010.   
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous 
year).  Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
  The annual amount budgeted for the subsidy is 13.037.000 MKD of which for:  
1. Improving competitiveness of the pr ivate companies – 2.500.000 MKD; 
2. Services supplied (business forums, workshops, international fairs, and 
preliminary activities for Shanghai – EXPO 2010) – 10.537.000 MKD.   
 G/SCM/N/186/MKD 
Page 8  
 
  8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  2009.   
9. Statistical data
 
  Such statistical data on trade effects of the Programme for Improvement of the 
Competitiveness of the Macedonian Products a nd Services in 2009 is not available.  
 
IV. LAW ON EMPLOYING AND ASSURANCE IN THE CASE OF UNEMPLOYMENT 
 
1. Title of the subsidy progra mme, if relevant, or brief descr iption or identification of the 
subsidy  
  
 "Law on Employing and Assurance in the Case of Unemployment"   
 2. Period covered by the notification
 
  2007–2009. 
3. Policy objective and/or purpose of the subsidy
 
 
 State aid is granted in order to remove di fficulties in the domestic economy through active 
measures of the employment policy:  employin g unemployed persons;  training, professional 
qualification and re qualification of unemployed persons and their access to the labour market;  
crating of new jobs for the persons  having difficulties to find a job. 
 
4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted)  
  Law on Employing and Assurance in the Case of Unemployment, published in the Official Gazette No. 39/97, 25/00, 101/00, 50/01, 25/03, 37/04, 4/05, 50/06, 29/07, 102/08 and 161/08; 
 
 Rulebook on Training and Qualification of  Unemployed Persons and Other Persons, 
published in the Official Gazette No. 30/01;     Law on Employing Invalid Pe rsons, published in the Offici al Gazette No. 44/00, 16/04, 
62/05, 113/05 and 29/07; 
  Rulebook on resources granting by the Specific Fund for providing conditions employing invalid persons, published in the Official Gazette No. 34/2004.    Authorities responsible for the subsidy:  Ministry of Labour and Social Policy, Employment 
Agency of the Republic of Macedonia, Centres for Social Affairs. 
 5. Form of the subsidy (i.e., grant, loan, tax concession, etc.
) 
  The subsidy is granted in the form of grant. 
  G/SCM/N/186/MKD 
 Page 9 
 
 
  6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how 
determined ) 
  The subsidy is provided through the Employment Agency at the Ministry of Labour and 
Social Policy to enterprises that are employing an unemployed persons;  enterprises competent for 
professional qualification, and re qua lification of unemployed persons. 
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous 
year).  Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
  The annual amount budgeted for the subsidy is:  
 − 2007:  111.800.000 MKD 
 − 2008:  110.150.000 MKD 
 − 2009:  253.815.000 MKD 
 8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
 The terms are specified in the Law on Employing and Assurance in the Case of Unemployment and Law on Employing Invalid Persons.   9. Statistical data
 
 
 It is considered that the trade effects are minimal in view of the purpose of the subsidy. 
 
V. REGIONAL STATE AID  
1. Title of the subsidy progra mme, if relevant, or brief descr iption or identification of the 
subsidy  
  "Law on Technological Industrial Development Zones”, published in the Official Gazette of 
the Republic of Macedonia No. 14/07, 103/08, 130/08 and 139/09.  
2. Period covered by the notification
 
  2007–2009.  3. Policy objective and/or purpose of the subsidy
 
 
 The purpose of the subsidy is to accelerat e regional development supporting production 
investments and creation of the new jobs through investments.    4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted ) 
 
 The Agency for Foreign Investments of th e Republic of Macedonia concludes a contract, 
which specifies the state aid granted to the user of the zone, pursuant to the Law on Technological 
Industrial Development Zones, published in the Official Gazette of the Republic of 
Macedonia No. 14/07, 103/08, 130/08 I 139/09, Law on State Aid, published in the Official Gazette of G/SCM/N/186/MKD 
Page 10  
 
  the Republic of Macedonia No. 24/03, 70/06 and 55/ 07 and Decree Determining the Conditions and 
Procedure for Regional Aid, published in the Official Gazette of the Republic of 
Macedonia No. 81/03.   5. Form of the subsidy (i.e., grant, loan, tax concession, etc.
) 
 
 The subsidy is granted in the form of  grants, tax exemptions and relieves. 
 6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how 
determined ) 
  The maximum intensity of regional aid is determ ined up to 50 per cent of eligible investment 
expenditures or the expenditures for the newly created  jobs in the period of two years.  The maximum 
intensity for small-sized enterprises is up to 70  per cent and up to 60 per cent for medium-sized 
enterprises. 
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous 
year).  Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
 
 The amount budgeted for the subsidy is:    2007–2009:  30.300.000 MKD.  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  The terms are specified in the Law on Technological Industrial Development Zones.   9. Statistical data
 
 
 Such statistical data on trade effects is not available.    
__________