. /.  WORLD TRADE  
ORGANIZATION  G/SCM/Q2/CRI/9 
G/SCM/Q3/CRI/9 24 October 2005 
 
(05-4882) 
Committee on Subsidies and Countervailing Measures Original:   Spanish 
  
 
SUBSIDIES 
 
New and Full Notifications Pursuant to Article XVI:1
 
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
 
Requests Pursuant to Article 27.4 of the Agreement  
on Subsidies and Countervailing Measures  
 
Replies to the Questions Posed by the UNITED STATES1 
Regarding the Notification of COSTA RICA2 
   The following communication, dated 21 October 2005, is being circulated at the request of the delegation of Costa Rica.  
_______________ 
   The Government of Costa Rica hereby submits  the replies to the questions posed by the 
United States regarding notification G/SCM/N/123/CRI-G/SCM/N/128/CRI by Costa Rica, which are 
set forth in document G/SCM/Q2/CRI/8 and G/SCM/Q3/CRI/8. 
  The above-mentioned replies are submitted in accordance with the procedures agreed at the 
Doha Ministerial Conference in document G/SCM/39 concerning the mechanism for the extension of export subsidy programmes.  Duty Free Zone Regime
 
 
 Please explain what steps Costa Rica has ta ken to meet the phase-out requirements for 
this programme.   
 
Inward Processing Regime  
 
 Costa Rica’s notification indicates that the duration of the incentives provided under 
this programme exceeds the transition period for the elimination of export subsidies provided for in document G/SCM/39.  Could Costa Rica pl ease describe the steps that are being taken to 
phase out this programme?  Has Costa Rica ex tended incentives under the programme to new 
enterprises during the notification period? 
 
                                                     
 
1 G/SCM/Q2/CRI/8-G/SCM/Q3/CRI/8. 
2 G/SCM/N/123/CRI-G/SCM/CRI/128. G/SCM/Q2/CRI/9 
G/SCM/Q3/CRI/9 Page 2 
 
 Replies
 
  In keeping with the time-period establishe d in document G/SCM/39 for the phasing out of 
export subsidies under the Free Zone and Inward Processing programmes, Costa Rica is currently 
discussing the various alternatives for reorienting it s policies to comply with the provisions of the 
Agreement.  To that end, joint efforts are being ma de at the national level to agree on the measures to 
be taken once the benefits provided for unde r the programme have come to an end. 
  Notwithstanding these efforts, it should be stressed that the benefits deriving from the 
above-mentioned programmes are a decisive factor in  the country's socio-economic development, not 
only because they help to attract foreign investment , but also owing to their linkage with domestic 
investment and their impact on the growth of exports.     The prescribed time-limit for the programmes subject to the disciplines of the Agreement 
represents an enormous challenge for the country's development in that these  mechanisms encourage 
the establishment of enterprises which carry out a broa d range of operations that generate employment 
and wealth, and contribute to the transfer of te chnology, the development of human capital, the 
diversification of exportable supply, and the generation of foreign exchange. 
 
__________