WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/MEX/21 
15 November 2011  
 
(11-5867) 
Committee on Subsidies and 
Countervailing Measures Original:   Spanish 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed by AUSTRALIA1 Regarding the 
New and Full Subsidy Notification of MEXICO2 
   The following communication, dated 3 November 2011, is being circulated at the request of the delegation of Mexico.  
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Fisheries and Aquaculture Sector 
 
Question 
 Voluntary Decommissioning of Shrimp Boats 
  With regard to the programme notified in Section I.A of G/SCM/N/220/MEX, can 
Mexico please provide: 
 
(a) Information on whether the vessel being decommissioned must be scrapped as a 
requirement of the programme;  and 
(b) information on whether the licences held are only for fishing on the high seas. 
Modernisation of the Fishing Fleet 
 
 With regard to the programme notified in Section I.C of G/SCM/N/220/MEX, can Mexico please provide: 
 
(a) Details of how "large vessels" are defined; 
(b) details of the number of vessels that are expected to benefit from the 
programme, and the average size of each grant provided; 
(c) details of the extent to which the programme's modernisation of the fishing fleet 
is expected to increase vessel  capacity, engine size, or other changes leading to 
greater catch yields and catch volumes; 
                                                      
1 G/SCM/Q2/MEX/18. 
2 G/SCM/N/220/MEX. G/SCM/Q2/MEX/21 
Page 2  
 
  (d) further details on how the subsidy provided will promote sustainable fisheries 
practice by "promot[ing] the use of better fishing technologies";  and 
(e) further details on whether the subsidi es will be used to acquire new vessels. 
Marine Diesel Component 
 
 With regard to the programme notified in Section I.D of G/SCM/N/220/MEX, can Mexico please advise: 
 
(a) What percentage of the total cost of fuel used by the recipients is funded by the 
programme;  and 
(b) what is the percentage of the programme that benefits wild capture 
(i.e. non-aquaculture) fishing. 
Fisheries Exchanges 
 
 With regard to the programme notified in Section I.F of G/SCM/N/220/MEX, can 
Mexico please advise:  
(a) Whether the programme is limited to the fisheries sector only;  and 
(b) how are "small vessels" defined. 
Multipurpose Berths 
 
 With regard to the programme notified in Section I.G of G/SCM/N/220/MEX, can Mexico please advise: 
 
(a) Whether the programme is limited to the fisheries sector only;  and 
(b) how are "small vessels" defined. 
Reply 
 
 In response to the questions posed by the dele gation of Australia, Mexico would first like to 
point out that according to Artic le 25.7 of the Agreement on Subsidies and Countervailing Measures, 
"Members recognize that notification of a measure does not prejudge either its legal status under 
GATT 1994 and this Agreement, the effects under this  Agreement, or the nature of the measure 
itself".  Therefore, and following a thorough review  of Australia's questions, Mexico considers these 
questions to be outside the scope of the Agreement.   Nevertheless, and with a view to prom oting Members' co-responsibility as regards 
transparency in the provision of s upport to such an important sector, Mexico wishes to reiterate its 
willingness to discuss these issues in the group or body th at is most appropriate for this purpose.  In 
this case, the most suitable group is considered to be the Negotiating Group on Rules, in particular as 
far as negotiations on fisheries subsidies are concerne d.  We believe that by proceeding in this way, 
with Members submitting their questions to the appr opriate bodies, we can encourage them not only 
to act with greater transparency but to provide more comprehensive information on their subsidy 
programmes. 
  G/SCM/Q2/MEX/21 
 Page 3 
 
 
   We also wish to reiterate that fo r each of the programmes notified in 
document G/SCM/N/220/MEX, we have indicated th e legal instrument under which the programme 
has been implemented, including its date of publication in the Official Journal ( Diario Oficial de la 
Federación ), which is where all the information requested  by Australia can be found.  Each of these 
official publications may be viewed on the Official Journal website ( http://www.dof.gob.mx ). 
 
 
High-Technology Sector 
 
Question 
  In respect of the grants to the High-Tec hnology Sector notified in Section II of 
G/SCM/N/220/MEX, can Mexico please provide details  of any conditions placed on recipients of 
the grants relating to the export or sale of products produced by recipients involved in the 
manufacture of "machinery and equipment", "t ransport equipment and parts of automotive 
vehicles" or their suppliers, or any conditions related to the use of inputs of domestic origin by 
these recipients? 
 
Reply 
  It is important to note that the beneficiar ies of the Programme for the Development of 
High-Technology Industries (PRODIAT) are not aske d to meet any form of performance requirement 
(conditions relating to exports, sales or the use of inputs of domestic origin) and that the support 
granted is destined mainly for technical  assistance and capacity-building projects. 
  Mexico reiterates that the conditions and requirements for receiving support under the 
programme are set forth in sections 6 ("Eligibility Requirements") and 8 ("Selection Criteria") of the 
Agreement notifying the Rules on the Operati on of PRODIAT, which was published in the 
Official Journal ( Diario Oficial de la Federación ) on 29 December 2010.  This Agreement can be 
viewed on the Official Journal website ( http://www.dof.gob.mx ) or on the website of the Ministry of 
the Economy ( http://www.economia.gob.mx ). 
 
 
Forestry Sector 
 
Question 
 
 Can Mexico please provide details of any conditions relating to the export or sale of products produced by recipients of the grants to the forestry sector notified in Section III of G/SCM/N/220/MEX? 
 
Reply 
 
 With regard to the Forestry Sector Programme  (ProÁrbol), Mexico would like to make clear 
that there are no performance requirements (i.e. export or sales requirements).  It should also be noted 
that the purpose of the support granted through this programme is to provide technical assistance and 
build the capacity needed to develop forestry , conserve and restore resources, and promote 
competitiveness.  Any Member wishing to obtain mo re detailed information on this programme may 
refer to the Rules of Operation, published in the Official Journal on 31 December 2008, which are 
available online at http://www.dof.gob.mx/ . 
 
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