. /.   WORLD TRADE  
ORGANIZATION  G/SCM/Q2/TUR/22 
1 April 2008 
 (08-1431) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
 
Replies to Questions Posed by  the SEPARATE CUSTOMS TERRITORY  
OF TAIWAN, PENGHU, KINMEN AND MATSU1 Regarding the  
New and Full Notification of TURKEY2 
   The following communication, dated 31 March 2008, is being circulated at the request of the 
Delegation of Turkey.   
 
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Question  
 
 Regarding the Specific Export Credit Programme , Turk Eximbank provide 
manufacturers/exporters with credits.  We would like to know more details about the applicants 
failing to meet the Bank's existing standard.  A dditionally, we notice that this programme is 
specific and encourages the export of new products  to new markets.  We are wondering how this 
programme does not constitute a prohibited subs idy within the meaning of Article 3 of the 
SCM Agreement.    
Reply
 
 
 As mentioned in the notification doc ument (G/SCM/N/155/TUR, dated Sept. 18th, 2007) 
while implementing its programs and forming strate gies, Turk Eximbank is committed to conforming 
to the internationally accepted rules and regulations  set by WTO, the OECD Consensus, the EU and 
the Berne Union.     On January 23, 1996, the Undersecretari at of Foreign Trade issued a Communiqué 
(Export 96/12) in the Official Gazette (no:  22532)  and Turk Eximbank, as Turkey's sole official 
export credit agency, is in charge of the execu tion of this Communiqué whose guidelines are in 
parallel to those of the Arrangement on Offici ally Supported Export Credits of the OECD (OECD 
Consensus).  Thus, adoption of this Communiqué al so means full compliance with the Arrangement, 
whose main purpose is to provide institutional frame work for the orderly use of officially supported 
export credits.   
  In addition, the OECD's work related to o fficial export credit policies and practices takes 
place under the auspices of two bodies with separate, al beit similar, memberships.  The first one is 
Working Party on Export Credits and Credits Guarant ees (ECG) and the second one is the Participants 
                                                     
 
1 G/SCM/Q2/TUR/20.   
2 G/SCM/N/155/TUR.   G/SCM/Q2/TUR/22 
Page 2  
 
  to the Arrangement (PG).  Turkey became a full member of the ECG of the OECD Trade Committee 
in 1998 and an observer member of the PG at the end of the 2006.     According to the item (k) of the Annex I of the SCM Agreement, an export credit practice, 
which is in conformity with the provisions of the OECD Consensus (Arrangement on Officially 
Supported Export Credits), shall not be considered an  export subsidy prohibited by this Agreement.  
Specific Export Credit Program of Turk Eximbank is in conformity with the OECD Consensus.  In 
other words, the Program does not constitute a prohib ited subsidy within the meaning of Article 3 of 
the SCM Agreement.    
 Moreover, the Specific Export Credit Program is neither specific to an enterprise, industry or 
group of enterprises or industries, nor to a geographical region.  This program does not favor certain enterprises, products or markets;  it is horizontal in application.  All Eximbank programs with a 
maturity of 2 years or more, including this progr am, are in compliance with the OECD's guidelines on 
officially supported export credits.   
 
 Finally, in the last 3 years, the total amount of loans provided under this program was USD 465.000.    
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