WORLD TRADE  
ORGANIZATION  G/SCM/N/155/EEC/Add.7 
22 November 2007 
 (07-5154) 
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  
  
EUROPEAN COMMUNITIES 
 
Addendum
 
   The following addendum to the notification of the European Communities relates to subsidy 
programmes of Estonia .   
 
_______________ 
 G/SCM/N/155/EEC/Add.7 
Page 2  
 
  ESTONIA 
 
TABLE OF CONTENTS 
 
 
  Page  
 
I. AID FOR RESEARCH AND DEVELOPMENT...................................................................3  
A. R & D FINANCING PROGRAMME .................................................................................................3  
B. COMPETENCE CENTRES PROGRAMME ........................................................................................4  
II. OTHER HORIZONTAL AID .................................................................................................5  
A. SUPPORT FOR THE PARTICIPATION OF ENTREPRENEURS IN TRADE FAIRS .................................5  
B. SUPPORT IN THE FRAMEWORK OF EXPORT PLANNING PROGRAMME .........................................6  
C. TRAINING PROGRAMMES FOR COMPANIES .................................................................................7  
D. GUARANTEE SCHEME FOR SMALL AND MEDIUM SIZED ENTERPRISES ......................................8  
E. CONSULTING PROGRAMME .......................................................................................................10  
F. START -UP PROGRAMME ............................................................................................................11  
G. TRAINING PROGRAMME FOR BUSINESS INCUBATORS ..............................................................12  
H. EMPLOYMENT AID....................................................................................................................12  
III. REGIONAL AID ................................................................................................................... .14 
A. SUBSTITUTION OF THE POLLUTION CHARGE ............................................................................14  
B. BUSINESS INFRASTRUCTURE DEVELOPMENT PROGRAMME .....................................................15  
C. PROGRAMME OF TOURISM MARKETING AND PRODUCT DEVELOPMENT .................................16  
D. PROGRAMME OF INVESTMENT SUPPORT FOR DEVELOPMENT AND DIVERSIFICATION 
OF ALTERNATIVE ECONOMIC ACTIVITIES IN RURAL AREAS ....................................................17  
IV. ENVIRONMENTAL AID......................................................................................................18  
A. ENVIRONMENTAL PROGRAMME ...............................................................................................18  
B. EXCISE DUTY EXEMPTION FOR BIOFUEL ..................................................................................18  
V. DOMESTIC SUPPORT IN AGRICULTURE.....................................................................19  
A. GENERAL SERVICES ..................................................................................................................19  
B. PUBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES ........................................................21  
C. DOMESTIC FOOD AID - SCHOOL MILK SUPPORT ......................................................................22  
D. DECOUPLED INCOME SUPPORT .................................................................................................23  
E. PAYMENT FOR RELIEF FROM NATURAL DISASTERS .................................................................24  
F. STRUCTURAL ADJUSTMENT ASSISTANCE PROVIDED THROUGH INVESTMENT AID.................25  
G. PAYMENT UNDER ENVIRONMENTAL PROGRAMMES ................................................................26  
H. PAYMENT UNDER REGIONAL ASSISTANCE PROGRAMMES .......................................................27  
  G/SCM/N/155/EEC/Add.7 
 Page 3 
 
 
  I. AID FOR RESEARCH AND DEVELOPMENT 
A. R & D FINANCING PROGRAMME  
1. Period covered by the notification  
  2005, 2006.   
 
2. Policy objective and/or purpose of the subsidy
 
  The programme aims at increasing the competitiveness of companies through the support of R&D projects leading to new technologies, products, processes and services.   
 
The programme of Tallinn City Enterprise De partment aims at helping to implement 
innovative solutions in business situating in Tallinn a nd to assist the protection of innovative solutions 
by gaining industrial property protection in foreign countries.    
3. Background and authority for the subsidy
 
  Enterprise Estonia (Foundation), which is an implementing agency for the Ministry of Economic Affairs and Communication.    
For City of Tallinn – City Enterprise Department.   
 
4. Legislation under which subsidy is granted
 
  Structural Assistance Act;  Regulation of the Minister of Economic Affairs and Communications No 51 of 9 May 2005;  Regulation of  Tallinn City Council No 23 of 20 April 2006.   
 
5. Form of the subsidy
 
  Grant.    6. To whom and how the subsidy is provided
 
 
 The subsidies are provided to SMEs, large companies and R&D institutions, which undertake 
industrial research and pre-competitive development activity projects.    
Generally industrial research projects can be sup ported up to 60 per cent of eligible costs, 
which may increase up to 75 per cent in special  cases (SMEs, cross-border cooperation, wide 
dissemination of the results etc).     In case of industrial research carried out by public R&D ins titutions, public support can go up 
to 100 per cent of the project costs.    
 Pre-competitive development activity projects ca n in general be supported up to 35 per cent, 
which may reach up to 50 per cent in special cases.     Technical feasibility studies preparatory to industrial research activities can be supported up to 75 per cent and technical feasibility studies prep aratory to pre-competitive development activities 
up to 50 per cent of the studies' costs.   
 G/SCM/N/155/EEC/Add.7 
Page 4  
 
   Maximum amount of support in case of SME is 0,3 Mio EEK
1, in case of large company 
10,0 Mio EEK and in case of R& D institution 10,0 Mio EEK.   
 
For business in Tallinn:  eligible applicants are companies, self-employed entrepreneurs, 
natural persons.  The maximum support amount is 100  000 EEK and may cover up to 2/3 of the total 
project cost.  Support can be applied for only to cove r the justified expenses of a specific project, i.e. 
to cover the costs (fees and drafting costs) of nati onal and international proc eedings related to the 
international patent applications.    7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy :   
 
Fiscal year 2005 – 24,2 Mio EEK.   Fiscal year 2006 – 24,7 Mio EEK.   
 
8. Duration of a subsidy and/or any other time limits attached to it
 
  The programme is valid till 30 June 2008.  No time limits are attached to the Tallinn City Enterprise Department programme.    9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A.    B. C
OMPETENCE CENTRES PROGRAMME  
1. Period covered by the notification  
 
 2005, 2006.    2. Policy objective and/or purpose of the subsidy
 
  To improve the competitiveness of enterprises through strategic cooperation between science 
and industry sectors.  To achieve this aim suppor t is given to the establishment of small R&D 
consortiums – the competence centres.    3. Background and authority for the subsidy
 
 
 Enterprise Estonia (Foundation).   
 4. Legislation under which subsidy is granted
 
  Structural Assistance Act;  Regulation of the Minister of Economic Affairs and Communications No 97 of 25 August 2005.   
 
5. Form of the subsidy
 
  Grant.   
                                                     
 
1 1 EUR = 15,6466 EEK.    G/SCM/N/155/EEC/Add.7 
 Page 5 
 
 
  6. To whom and how the subsidy is provided  
  Support is given to competence centres, which carry out fundamental, industrial research or pre-competitive development activities.    
Competence centres are small R&D institutions  established and operate d together by number 
of companies and universities.  Main characteris tic of such centres is strong focus on industrial 
research, which is needed for the product deve lopment of the founders of these centres.   
  Fundamental research projects can be supported up to 100 per cent.   
 
Industrial research projects can be supported up to 60 per cent of eligible costs, which may 
increase up to 75 per cent in special cases (SMEs, cr oss-border cooperation, wide dissemination of the 
results etc).    
Pre-competitive development activity projects ca n in general be supported up to 35 per cent, 
which may reach up to 50 per cent in special cases.     Technical feasibility studies preparatory to i ndustrial research can be  supported up to 75 per 
cent and technical feasibility studies preparatory to pre-competitive development activities up to 
50 per cent of the studies' costs.  
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2005 – 22,0 Mio EEK.   
 Fiscal year 2006 – 22,6 Mio EEK.   
 8. Duration of a subsidy and/or any other time limits attached to it
 
  The programme is valid till 30 June 2008.    
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A.    
II. OTHER HORIZONTAL AID 
A. S
UPPORT FOR THE PARTICIPATION OF ENTREPRENEURS IN TRADE FAIRS 
1. Period covered by the notification  
  2005, 2006.    2. Policy objective and/or purpose of the subsidy
 
 
 To organise and support the participation of en trepreneurs in international trade fairs.   
 3. Background and authority for the subsidy
 
 
 Enterprise Estonia (Foundation).   G/SCM/N/155/EEC/Add.7 
Page 6  
 
  4. Legislation under which subsidy is granted
 
  Procedure of the Foundation Enterprise Estoni a on organisation of state-supported joint 
stands.    
5. Form of the subsidy
 
  Grant.    6. To whom and how the subsidy is provided
 
 
 Subsidy is paid to the fair operator/fair or ganiser as a payment for stand rental and other 
similar expenses.  The subsidy cannot cover more than 50 per cent of the expenses.   
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2005 – 2,8 Mio EEK.    Fiscal year 2006 – 5,0 Mio EEK.    8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to the programme.    9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A.   
 B. S
UPPORT IN THE FRAMEWORK OF EXPORT PLANNING PROGRAMME  
1. Period covered by the notification  
  2005, 2006.   
 
2. Policy objective and/or purpose of the subsidy
 
  To support the drafting of companies' l ong-term export plans and financing their 
implementation.   
 
3. Background and authority for the subsidy
 
  Enterprise Estonia (Foundation).    4. Legislation under which subsidy is granted
 
 
 Structural Assistance Act;  the Regulati on of the Minister of Economic Affairs and 
Communications No 114 of 26 September 2005.    5. Form of the subsidy
 
 
 Grant.    G/SCM/N/155/EEC/Add.7 
 Page 7 
 
 
  6. To whom and how the subsidy is provided  
 
The subsidy is provided to the company for drafting of a long-term plan of export and 
financing their implementation.  The programme en ables companies to expand their export activities 
offering them appropriate training, consultation services and funding.   
 
The Export Planning Programme consists of two ma in stages:  the drafting of an export plan 
and its implementation.  A company participati ng in the programme compiles a long-term export 
development strategy, which includes the marke ting activities required for achieving the strategic 
goals.   
 
Enterprise Estonia finances the compilation of an export plan with a maximum 
of 75,000 EEK towards covering the consultation costs.    
The execution of different marketing activities (par ticipation at trade shows, visits to foreign 
markets, consultation services, promotional materials, participation in the contact events, etc.) will be 
supported by Enterprise Estonia in the amount of up to 1,000,000 EEK.    
The self-financing rate for both stages is 50 percent of the eligible expenses.   
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2005 – 5,8 Mio EEK.    Fiscal year 2006 – 5,9 Mio EEK.    
8. Duration of a subsidy and/or any other time limits attached to it
 
  The execution period of company's long-term export plan can be up to 3 years.  The programme is valid till 31 August 2008.    9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A.    C. T
RAINING PROGRAMMES FOR COMPANIES  
1. Period covered by the notification  
 
 2005, 2006.    2. Policy objective and/or purpose of the subsidy
 
  The aim of the training support is to suppor t the in-service training and retraining of 
entrepreneurs and the persons working in the companies for maintaining or increasing the 
competitiveness of employees at the labour market, developing entrepreneurship, establishing the 
conditions for the creation of new jobs and increasing the capability of persons in the field of research 
and development activities and de velopment of technology.   
 
3. Background and authority for the subsidy  
 
 For City of Tallinn – City Enterprise Department.   
 For other regions of Estonia – Enterprise Estonia (Foundation).   G/SCM/N/155/EEC/Add.7 
Page 8  
 
  4. Legislation under which subsidy is granted
 
  Regulation of Tallinn City Council No 26 of  18 April 2002;  Regulation of Tallinn City 
Council No 64 of 22 December 2005;  Regulation of Tallinn City Council No 49 of 9 December 2004.   
 
 Structural Assistance Act; Regulation of  the Minister of Economic Affairs and 
Communications No 50 of 5 May 2005;  Regulati on of the Minister of Economic Affairs and 
Communications No 80 of 22 September 2006;  Regula tion of the Minister of Economic Affairs and 
Communications No 83 of 22 September 2006.    
5. Form of the subsidy
 
  Grant.    6. To whom and how the subsidy is provided
 
 
 The subsidy is provided to companies and sole proprietors whose training project is related to 
the acquisition or raising of the professional qualifica tion of employees.  The subsidy is also provided 
to the associations of entrepreneur s and trade associations.  No support shall be provided for training 
intended to raise the general level of education.  The subsidy can cover up to 70 per cent of eligible 
costs of SMEs and up to 50 per cent of large enterprises.  If the project includes both specific and 
general vocational and management training which could not be diffe rentiated, the financing rates 
fixed for the specific vocational training are applied.    7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 
 Fiscal year 2005 – 5,4 Mio EEK.    Fiscal year 2006 – 9,6  Mio EEK.   
 8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to the Tallinn City Enterprise Department programme.  The 
programme of Enterprise Estonia is valid till 31 August 2008.   
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A.   
 D. G
UARANTEE SCHEME FOR SMALL AND MEDIUM SIZED ENTERPRISES  
1. Period covered by the notification  
  2005, 2006.   
 
2. Policy objective and/or purpose of the subsidy
 
  To promote small and medium sized enterp rises by supporting their access to capital by 
securing their bank loan.   
 
3. Background and authority for the subsidy
 
  Credit and Export Guarantee Foundation – KredEx.    G/SCM/N/155/EEC/Add.7 
 Page 9 
 
 
  4. Legislation under which subsidy is granted  
 
 The Articles of Association of Credit and Export Guarantee Foundation (KredEx);  Support of 
Enterprise and State Loan Guarantees Act;  Regul ation of the Minister of Economic Affairs and 
Communications No 74 of 3 August 2006.   
 
5. Form of the subsidy  
 
 Loan and leasing guarantees, equity loans.   
 
6. To whom and how the subsidy is provided  
 
Business loan guarantees are meant for companie s whose value of the collateral property or 
self-financing is not sufficient for getting a bank loan or who do not have a long history of operation.  
Loan guarantees are provided to SMEs, i.e. to comp anies with less than 250 employees and turnover 
less than 625 million EEK, and to sole proprietors.   
 
Investment loan guarantee serves to cover long-term investments: purchase of equipment;  
purchase, construction or renovati on of production premises.  The maximum possible guarantee 
amount is 15 million EEK.  Working capital loan gua rantee enables to secure the operations of newly 
launched companies as well as the existing small and medium-sized companies.  The loan guarantee 
is intended for short-term financing of working cap ital: purchase of inventories;  launch of large-scale 
marketing campaigns;  covering other scheduled or  unscheduled current expenses.  The maximum 
possible guarantee amount is 8 million EEK.   
 
Kredex secures loans up to 75 per cent of the loan amount.  The annual guarantee fee 
minimum is 1.8 pe cent of the balance of the guara ntee.  The exact rate of the guarantee fee depends 
on the risk level of the project.  In addition, the transaction involves an agreement fee in the amount 
of 1 per cent of the guarantee, payable upon the conclusion of the guarantee agreement.   
 
Leasing guarantee is basically a property redemption guarantee (mainly used for the lease of 
machinery and equipment).  KredEx guarantees up to  40 per cent of the unpaid redemption price of 
the leased property (i.e. the amount unpaid to the leasing company, w/o VAT and interest);  the 
guarantee amount is reduced proporti onally with the reduction of the redemption price of the leased 
property.  The maximum possible guarantee amount is 15 million EEK.  The annual guarantee fee minimum is 1.2 per cent of the balance of the guara ntee.  The exact rate of the guarantee fee depends 
on the risk level of the project.  In addition, the transaction involves an agreement fee in the amount of 
1 per cent of the guarantee, payable upon the conclusion of the guarantee agreement.   
 
The equity loan is a loan product intended for successful and quickly developing companies, 
which have already gained some track record in th eir field of business, and need additional capital for 
expanding their business but do not meet the criteria  established for receiving a bank loan in the 
desired amount.  KredEx will grant the entrepreneur  use of capital without demanding any collateral.  
Since the equity loan is not, as a rule, repayable until the end of the loan period, the equity loan will, 
in the bank's eyes, conditionally raise the company's equity, allowi ng the company to apply for an 
additional bank loan and finance its quick growth.  In addition to being able to apply for otherwise 
unavailable financing, the company can also benef it from the fact that, unlike various venture capital 
funds, KredEx will not intervene in the management of the loan recipient.  The loan amount is 1-
16 million EEK, and minimum equity 1 million EEK;  the share of equity in the balance sheet must 
amount to at least 10 per cent;  the loan principal shall, as a rule, be repaid in lump sum at the end of 
the loan period, or in equal instalments at least two times a year, starting from the end of the grace period;  the contract fee amounts to 1 per cent of the loan amount, but not more than 100,000 EEK;  
interest shall, as a rule, be paid on a monthly basis;  the interest rate has been fixed for the entire term 
of the loan, and ranges, as a rule, from annual 18 per cent to 22per cent of the loan balance.   G/SCM/N/155/EEC/Add.7 
Page 10  
 
   
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 
 Fiscal year 2005 – guarantee amount 164,1 Mio EEK.   
 Fiscal year 2006 – guarantee amount 203,3 Mio EEK.    8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to the programme.   
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A.    
E. C
ONSULTING PROGRAMME  
1. Period covered by the notification  
  2005, 2006.    
2. Policy objective and/or purpose of the subsidy
 
  To enable SMEs and sole proprietors to  purchase business consultations from professional 
consultants at affordable ra tes on favourable conditions.   
 
3. Background and authority for the subsidy
 
  Enterprise Estonia (Foundation).    4. Legislation under which subsidy is granted
 
 
 The Regulation of the Minister of Econom ic Affairs and Communications No 74 of 
13 April 2004.    5. Form of the subsidy
 
 
 Grant.   
 6. To whom and how the subsidy is provided
 
  The subsidy is provided to SMEs or sole propr ietors.  The amount of the support per applicant 
is up to 200 000 EEK per year and may cover up to 50 per cent of the advisory services costs.   
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
  Fiscal year 2005 – 2,3 Mio EEK.   
 Fiscal year 2006 – 2,8 Mio EEK.   
 8. Duration of a subsidy and/or any other time limits attached to it
 
 
 The programme is valid till 31 August 2008.    G/SCM/N/155/EEC/Add.7 
 Page 11 
 
 
  9. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 
 N/A.   
 
F. START -UP PROGRAMME  
1. Period covered by the notification  
 
 2005, 2006.   
 
2. Policy objective and/or purpose of the subsidy  
 
 To provide individuals with the incentive to st art business and create new jobs.  Likewise, the 
programme intends to increase the survival ratio of new enterprises.   
 
3. Background and authority for the subsidy  
 
 For City of Tallinn – City Enterprise Department.   
 For other parts of Estonia – Enterprise Estonia (Foundation).   
 
4. Legislation under which subsidy is granted  
 
 Regulation of Tallinn City Council No 26 of  18 April 2002;  Regulation of Tallinn City 
Council No 64 of 22 December 2005.    
Structural Assistance Act;  Regulation of the Minister of Economic Affairs and 
Communications No 75 of 13 April 2004.   
 
5. Form of the subsidy
 
 
 Grant.   
 
6. To whom and how the subsidy is provided  
 
 An applicant may be an undertaking being f ounded in Estonia or an undertaking that was 
entered into the Commercial Registry no longer than  24 months before the date of registration of the 
application, and has no private or legal person in public law as shareholder.   
 
 The grant is up to 160 000 EEK per applicant.   The grant amount will not exceed 75 per cent 
of the eligible costs, self-financing is at least 25 per cent.  
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 
 Fiscal year 2005 – 8,6 Mio EEK.   
 Fiscal year 2006 – 11,6 Mio EEK.   
 
8. Duration of a subsidy and/or any other time limits attached to it  
 
 A project must be completed within 12 months.   
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 
N/A.   G/SCM/N/155/EEC/Add.7 
Page 12  
 
  G. T
RAINING PROGRAMME FOR BUSINESS INCUBATORS  
1. Period covered by the notification  
 
 2005, 2006.   
 
2. Policy objective and/or purpose of the subsidy  
 
 The aim of the programme is to support the creation and development of innovative 
companies by providing them incubation services.   
 
3. Background and authority for the subsidy  
  Enterprise Estonia (Foundation).   
 
4. Legislation under which subsidy is granted  
 
 Structural Assistance Act;  Regulation of the Minister of Economic Affairs and 
Communication No 132 of 31 October 2005.    5. Form of the subsidy
 
  Grant.   
 
6. To whom and how the subsidy is provided
 
  Support is provided for start-ups by the way of  incubation services, which include training.  
Maximum amount of support is 3 Mio EEK, but not mo re than 75 per cent of eligible costs.   
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2005 – 0,0 Mio EEK.    Fiscal year 2006 – 0,3 Mio EEK.   
 
8. Duration of a subsidy and/or any other time limits attached to it
 
  The programme is valid till 30 June 2008.    
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A.    H. E
MPLOYMENT AID 
1. Period covered by the notification  
 
 2005, 2006.    2. Policy objective and/or purpose of the subsidy
 
 
 The aim of the programme is the integration of unemployed people and people belonging to 
risk groups to the labour market, to increase the effici ency and quality of labour market services;  to 
stimulate job-creation.    G/SCM/N/155/EEC/Add.7 
 Page 13 
 
 
  3. Background and authority for the subsidy  
  Labour Market Board.    Tallinn City Enterprise Department.   
 
4. Legislation under which subsidy is granted
 
  Structural Assistance Act;  Regulation of the Minister of Social Affairs No 89 of 7 July 2004;  Regulation of the Minister of Social Affairs No 35 of 4 April 2006;  Labour Market Services and 
Benefits Act.   
  Regulation of Tallinn City Council No 22 of 20 April 2006.    5. Form of the subsidy
 
 
 Grant.   
 6. To whom and how the subsidy is provided
 
  Subsidies are provided to companies and sole proprietors for recruitment of disadvantaged 
and disabled workers, to cover additional costs of employment of disabled workers (adapting 
premises or equipment) and for unemployed pers ons who start the entrepreneurship activity.   
 
Wage subsidy is a benefit payable to empl oyers for employing unemployed persons, who 
belong in risk groups (long-term  unemployed (unemployed for at l east 12 months), young long-term 
unemployed (for at least 6 months) and ex-prisoners.  The size of the subsidy is 50 per cent of the 
wage or salary of the employee or public servant but not more than the minimum monthly wage established by the Government.  The s ubsidy is paid for 6 months.   
 
Business start up subsidy is for registered une mployed persons who want to start business 
activities.  The size of the subsidy is up to 20 000 EEK.   
 
Subsidy for the adaptation of premises and e quipment is provided in case of recruitment of 
disadvantaged workers.  The size of the subsidy is 50  per cent of the cost of the adjustment but not in 
an amount exceeding the upper limit established for support.    
 For entrepreneurs in the City of Talli nn the maximum amount of support is 200 000 EEK, 
50 per cent of costs for job creation are covered.    7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 
 Fiscal year 2005 – 2,3 Mio EEK.   
 Fiscal year 2006 – 11,8 Mio EEK.    8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits attached to the programme.   
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A.   
 G/SCM/N/155/EEC/Add.7 
Page 14  
 
  III. REGIONAL AID 
A. S
UBSTITUTION OF THE POLLUTION CHARGE  
1. Period covered by the notification  
 
 2005, 2006.   
 2. Policy objective and/or purpose of the subsidy
 
 
 The programme aims at decreasing polluti on by encouraging voluntary environmental 
protection investments.    3. Background and authority for the subsidy
 
 
 The Ministry of Environment.   
 
4. Legislation under which subsidy is granted  
  Pollution Charge Act, Article 19 (in 2005), since 2006 Environmental Charges Act, Article 48.   
 
5. Form of the subsidy  
  Pollution charge substitution with invest ments in environmental protection.   
 
6. To whom and how the subsidy is provided  
 
 According to the Pollution Charge Act (from 2006 the Environmental Charges Act) 
companies have to pay a charge for the release of pollutants or waste into the environment.  
According to Article 19 of the Pollution Charge  Act (from 2006 Article 48 of the Environmental 
Charges Act), the obligation to pay the pollution ch arge can be substituted by investments if:   
 
- the polluter implements measures, which ensure  the reduction of pollutants over the course 
of 3 years by not less than 15 per cent in comparison with the last accounting period prior to 
the implementation of such measures;   
- in case of hazardous waste, the eliminator of  such waste implements over the course 
of 3 years measures, which allow the former hazardous waste to be treated as non-hazardous 
waste;   
- in case of hazardous waste, which technically cannot  be recycled, the eliminator of the waste 
builds a waste disposal site for such waste over the course of 3 years.   
 
The extent to which the pollution charge is substituted shall not exceed the cost of the 
environmental protection measures.    
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2005 – 13,5 Mio EEK.    Fiscal year 2006 – 10,0 Mio EEK.   
 
8. Duration of a subsidy and/or any other time limits attached to it
 
  Duration of support for applicant is up to 3 years.    G/SCM/N/155/EEC/Add.7 
 Page 15 
 
 
  9. Statistical data permitting an assessmen t of the trade effects of a subsidy  
  N/A.    B. B
USINESS INFRASTRUCTURE DEVELOPMENT PROGRAMME  
1. Period covered by the notification  
  2005, 2006.    2. Policy objective and/or purpose of the subsidy
 
 
 To improve the business environment of existing enterprises, by supporting the establishment of necessary business infrastructure and industrial real estate equipped with modern infrastructure.   
 3. Background and authority for the subsidy
 
 
 Enterprise Estonia (Foundation).    4. Legislation under which subsidy is granted
 
  The Regulation of the Minister of Econom ic Affairs and Communications No 72 of 
13 April 2004.   
 5. Form of the subsidy
 
  Grant.   
 
6. To whom and how the subsidy is provided
 
  The subsidy is provided to SMEs which invest ment projects are related to building technical 
infrastructure necessary for th eir business development outside the City of Tallinn.   
 
 The minimum amount of support is 100 000 EEK , the maximum amount is 2,5 million EEK.  
Different conditions for SMEs located in the surroun ding local governments of the City of Tallinn (up 
to 25 per cent of the eligible cost s can be covered) and for SMEs located in other regions of Estonia 
(up to 50 per cent of the eligible costs can be covered).    
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2005 – 24,1 Mio EEK.    Fiscal year 2006 – 13,7 Mio EEK.    
8. Duration of a subsidy and/or any other time limits attached to it
 
  A project must be completed within 12 months.  The programme was valid till 31 December 2006.    
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A.    G/SCM/N/155/EEC/Add.7 
Page 16  
 
  C. P
ROGRAMME OF TOURISM MARKETING AND PRODUCT DEVELOPMENT  
1. Period covered by the notification  
  2005, 2006.    
2. Policy objective and/or purpose of the subsidy
 
  To diversify the choice of Estonian tourism products and services, improve the quality of such 
products and services, raise international competitiv eness of the products and services, and increase 
demand for Estonian tourism products on the international target markets.   
 
3. Background and authority for the subsidy
 
  Enterprise Estonia (Foundation).    
4. Legislation under which subsidy is granted
 
  Regulation of the Minister of Economic Affair s and Communications No 126 of 7 May 2004.   
 5. Form of the subsidy
 
 
 Grant.   
 6. To whom and how the subsidy is provided
 
  Any business company that is registered in Estonia and in which the state's or the local 
government's participation does not exceed 25 per cent, can apply for the grant.   
 
Minimum amount of a product development grant is 800 000 EEK and maximum amount 
is 10 Mio EEK.    
Minimum amount of a marketing grant is 75 000 EEK and maximum amount is 
1,5 Mio EEK. 
  Grant can cover up to 50 per cent of the costs e ligible for assistance, in the Northern regions 
of Estonia (Harjumaa County and the City of Talli nn) the percentage of aid may not exceed 40 per 
cent of the costs eligible for assistance.   
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2005 – 6,7 Mio EEK.    Fiscal year 2006 – 9,3 Mio EEK.   
 
8. Duration of a subsidy and/or any other time limits attached to it
 
  The programme is valid till 30 June 2008.    
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A.     G/SCM/N/155/EEC/Add.7 
 Page 17 
 
 
  D. PROGRAMME OF INVESTMENT SUPPORT FOR DEVELOPMENT AND DIVERSIFICATION OF 
ALTERNATIVE ECONOMIC ACTIVITIES IN RURAL AREAS  
1. Period covered by the notification  
  2005, 2006.   
 
2. Policy objective and/or purpose of the subsidy
 
  To create non-agricultural jobs and revive the life in the rural areas through the investment support of the diversification of economic activities in these areas.   
 
3. Background and authority for the subsidy
 
  Agricultural Registers and Information Board.    
4. Legislation under which subsidy is granted
 
 
 Regulation of the Minister of Agriculture No 126 of 28 July 2004.   
5. Form of the subsidy  
  Grant.   
 
6. To whom and how the subsidy is provided
 
  Subsidy is provided to the entrepreneurs diversifying or expanding activities and to the 
agricultural producers who start non-agricultural activiti es in rural areas.  Subsidy is provided for 
investments in rural areas related to the promotion of tourism and handicrafts, provision of services 
for the economy and inhabitants of rural areas and production of non-agricultural products (more 
specifically the products not listed in Annex I of the EC Treaty).    
Eligible applicants are small companies who have been acting on the market for at least 
12 months.  Preference is given to those companie s who use local raw materials/resources or offer 
services.  Up to 50 per cent of the eligible costs may be covered.   
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
 
 Fiscal year 2005 – 19,6 Mio EEK.   
 Fiscal year 2006 – 5,0 Mio EEK.    8. Duration of a subsidy and/or any other time limits attached to it
 
  The programme is valid till 30 June 2008.   
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A.    G/SCM/N/155/EEC/Add.7 
Page 18  
 
  IV. ENVIRONMENTAL AID 
A. E
NVIRONMENTAL PROGRAMME  
1. Period covered by the notification  
  2005, 2006.   
 
2. Policy objective and/or purpose of the subsidy
 
  To preserve the stability of environment.    
3. Background and authority for the subsidy
 
  Environmental Investment Centre (Foundation).    4. Legislation under which subsidy is granted
 
 
 Structural Assistance Act;  Regulation of the Minister of Environmental Affairs No 18 of 22 March 2005;  Regulation of Procedure of E nvironmental Investment Centre for financing 
environmental projects.    5. Form of the subsidy
 
 
 Grant.    6. To whom and how the subsidy is provided
 
 
 Subsidy is provided to applicant's projects, which meet the criteria of the measure 
"Development of Environmental Infrastructure" (R egulation of the Minister No 18) and national 
environmental programmes.    7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 
 Fiscal year 2005 – 63,3 Mio EEK.    Fiscal year 2006 – 14,1 Mio EEK.    8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to it.    9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A.   
 
B. E
XCISE DUTY EXEMPTION FOR BIOFUEL  
1. Period covered by the notification  
  2005, 2006.    G/SCM/N/155/EEC/Add.7 
 Page 19 
 
 
  2. Policy objective and/or purpose of the subsidy  
  To enhance the use of environmentally frien dly fuels (bioethanol, biodiesel) in order to 
reduce the emission of greenhouse gases by supporti ng the production and use of biofuels.   
 
3. Background and authority for the subsidy
 
  Ministry of Finance / Taxation and Customs Board.    4. Legislation under which subsidy is granted
 
 
 Alcohol, Tobacco and Fuel Excise Duty Act.    5. Form of the subsidy
 
 
 Excise duty exemption.   
 6. To whom and how the subsidy is provided
 
  Excise duty exemption is granted to any producer  of biodiesel or bioethanol in Estonia, any 
producer of biodiesel or bioethanol in another EU  Member State (or third country) whose product is 
imported into Estonia and any importer of biodiesel or bioethanol into Estonia.  The excise duty 
exemption takes place when the product is delivered for consumption, i.e. either as pure biofuel or 
blended into fossil fuel.  Both the producing and bl ending of biofuels have to take place in excise 
warehouses.    
The pure biodiesel or bioethanol are fully exempted from excise duty.  If the biodiesel is 
blended into the fossil fuel or bioethanol blende d into fossil petrol the exemption applies to the 
amount of biodiesel or bioethenol respectively in the blended fuel.    7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 
 Fiscal year 2005 – 0,0 Mio EEK.    Fiscal year 2006 – 5,0 Mio EEK.    8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to it.    9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A.   
 
 
V. DOMESTIC SUPPORT IN AGRICULTURE 
A. G
ENERAL SERVICES  
1. Period covered by the notification  
 
 2005, 2006.   G/SCM/N/155/EEC/Add.7 
Page 20  
 
  2. Policy objective and/or purpose of the subsidy
 
  
The programme aims at providing services and benef its to agriculture or the rural community.   
 
3. Background and authority for the subsidy  
 
 The Ministry of Agriculture.   
 
4. Legislation under which is granted  
 
State Budget Act of 2005;  State Budget Act of  2006;  Rural Development and Agricultural 
Market Regulation Act of 21 April, 2004;  Estoni an Rural Development Plan 2004-2006 (RDP);  
Estonian National Development Plan 2004-2006 (NDP).   
 
5. Form of the subsidy  
  Grant.    
6. To whom and how the subsidy is provided
 
  Support for research is provided to the vari ous institutions for developing agricultural 
policies, applied research for plant and livestock pr oduction, research related to breeding, incl. support 
for the breeding of farm animals.    
 The support for pest and disease control is pr ovided to institution for developing pest and 
disease control measures.     The support for training includes practical training support, technical aid (seminars) from NDP and from RDP.  Practical training support is  provided to agricultural producers for partial 
compensation of the expenses incurred with the supe rvision and organisation of practical training in 
the enterprise for students studyi ng agricultural specialities.   
 
Extension and advisory services include fa rmers' training and consultation services 
(publications, brochures, films, materials for producers), services provided by Rural Economy 
Research Centre , agricultural extension service programme  and other advisory and extension 
activities.  The aim of the advisory and extension ser vices is to support the setting up of farm advisory 
service system and to support the provision of  farm advisory and extension services.   
  The support for inspection services includes servi ces concerning veterinary and food control, 
food quality and safety inspection programmes and removal and destruction of fallen stock.   
  Marketing and promotion services are aimed at supporting the marketing and promotion activities for agricultural producers and processors thr ough participation in exhi bitions and trade fairs 
and other joint promotion activities;  issuing an d promoting the Approved Taste quality label;  
gathering market information;  granting suppor t for activities related to improving the production, 
processing or marketing of agricultural produce and introducing the latest research and development 
findings into production (including market research , product development, promotional activities, 
training, competitions and fairs, quality assurance etc).     The support for infrastructural services involv es the maintenance of amelioration structures 
aiming at promoting the development of infrastructure in rural areas.    G/SCM/N/155/EEC/Add.7 
 Page 21 
 
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2005 – 235,14 Mio EEK.   
Fiscal year 2006 – 313,63 Mio EEK.   
 
8. Duration of a subsidy and/or any other time limits attached to it
 
  Duration of a subsidy is the validation pe riod of National Development Plan 2004-2006 and 
Rural Development Plan 2004-2006.  Other suppor ts have no time limits attached to them.   
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A.    
B. P
UBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES  
1. Period covered by the notification  
  2005, 2006.    2. Policy objective and/or purpose of the subsidy
 
 
The programme covers the expenditures for purchasi ng and storing reserve stocks of grain.   
 3. Background and authority for the subsidy
 
 
 The Ministry of Agriculture, The Estonian Grain Broad (AS Eesti Viljasalv).   
 4. Legislation under which it is granted
 
 
State Budget Act of 2005;  State Budget Act of 2006;  National Stockpiles Act of 
23 November 1994.   
 
5. Form of the subsidy  
  The establishment, storage and replenishment of  the stockpile are financed in accordance of 
the relevant agreements.   
 
6. To whom and how the subsidy is provided
 
  The Estonian Grain Broad (AS Eesti Viljasalv) enters into an agreement with the producers 
according to the results of a public tender.  The Es tonian Grain Board storaged grain for food security 
reasons.  As The Estonian Grain Board attained its objective, the Ministry of Agriculture decided to 
sell the state share in the 12th of May 2006.   
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
 
 Fiscal year 2005 – 3,88 Mio EEK.   
 Fiscal year 2006 – 0,48 Mio EEK.   G/SCM/N/155/EEC/Add.7 
Page 22  
 
  8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it.    9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A.    C. D
OMESTIC FOOD AID - SCHOOL MILK SUPPORT  
1. Period covered by the notification  
 
 2005, 2006.    2. Policy objective and/or purpose of the subsidy
 
 
 The objective of granting school milk support is to increase the consumption of milk by 
school pupils and kindergarten children, to encourag e healthy eating habits and thereby promote the 
consumption of milk and milk products.    3. Background and authority for the subsidy
 
 
 The Ministry of Agriculture.   
 4. Legislation under which it is granted
 
  European Union Common Agricultural Policy Implementation Act of 24 March 2004.   
 
5. Form of the subsidy
 
  Grant.    6. To whom and how the subsidy is provided
 
 
 The school milk support is common market organization measure that is aimed to increase the consumption of milk by school pupils as well as to encourage healthy eating habits and thereby 
promote the consumption of milk and milk products.    
Support may be granted for learning facilities ( school/kindergarten), milk products providers, 
city governments/local municipa lity or legal person (e.g. non-prof it organization) that represent 
school/kindergarten.    7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
 
 Fiscal year 2005 – 4,87 Mio EEK.   
Fiscal year 2006 – 7,94 Mio EEK.   
 8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to it.    G/SCM/N/155/EEC/Add.7 
 Page 23 
 
 
  9. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 
 N/A.   
 
D. DECOUPLED INCOME SUPPORT  
1. Period covered by the notification  
 
 2005, 2006.   
 2. Policy objective and/or purpose of the subsidy
 
 
Support is provided as Complementary national di rect payments (CNDPs) to the single area 
payment scheme (SAPS).   
 
3. Background and authority for the subsidy  
  The Ministry of Agriculture.   
 
4. Legislation under which it is granted  
 
European Union Common Agricultural Policy Implementation Act of 24 March 2004;  
Commission Decision K (2005) 1782 of 24 July 2005;  Commission Decision K(2006) 3323 of 
26 July 2006.    5. Form of the subsidy
 
 
 Grant.   
 6. To whom and how the subsidy is provided
 
 
CNDPs are provided to the applicant who grows arable crops or seeds, raises suckler cows, 
cattle, and ewes or owns milk quota.   
 
These payments act as supportive measures to ensu re the basic reproduction of the sector and 
to prevent further growth of unused lands, which is  also a supplementary effect of the measures.   
 
The payment made on arable crops and seeds production is provided to the producers equally 
according to the arable crop area the producer atte nds, not depending on prod uction or crop yield.  
There are additional requirements that must be fulf illed in order to receive the support:  the minimum 
size of eligible field is 0,30 ha and the minimum size of the eligible area per holding is 1 ha;  arable 
crops has to be sown by June 15;  the crop is ma intained until at least the beginning of flowering 
under conditions of normal growth;  applicant has to k eep a field record book;  field has to be entered 
into Agricultural Support and Agricultural Parcel Register.   
 
The payment made on production of suckler cows, cattle and ewes is provided to the 
producers equally according to the number of animals the producer keeps.  The animals have to be 
identified and registered to the Animal Register.  It does not foresee the production growth and the support amount is neither linked to production vol umes nor to price or income levels.   
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2005 – 222,31 Mio EEK.   G/SCM/N/155/EEC/Add.7 
Page 24  
 
  Fiscal year 2006 – 454,89 Mio EEK.   
 8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to it.   
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 
N/A.    
 
E. PAYMENT FOR RELIEF FROM NATURAL DISASTERS  
1. Period covered by the notification  
  2005, 2006.    2. Policy objective and/or purpose of the subsidy
 
 
Purpose of the grants is to compensate the damage  caused by adverse climatic events that can 
be assimilated to natural disasters.    3. Background and authority for the subsidy
 
 
 The Ministry of Agriculture.    4. Legislation under which it is granted
 
 
State Budget Act of 2005;  Rural Development and Agricultural Market Regulation Act of 
21 April 2004.    5. Form of the subsidy
 
  Grant.   
 
6. To whom and how the subsidy is provided
 
 
The aim of the natural damage support is to provide partial compensation for the damage 
suffered by agricultural producers as a result of a na tural disaster or adverse weather conditions.  
Support may be granted within a period of three years after the incurring of the damage.   
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
  Fiscal year 2005 – 26,60 Mio EEK.   
 Fiscal year 2006 – no grants were awarded.   
 8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it.   
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A.    G/SCM/N/155/EEC/Add.7 
 Page 25 
 
 
  F. STRUCTURAL ADJUSTMENT ASSISTANCE PROVIDED THROUGH INVESTMENT AID 
1. Period covered by the notification  
  2005, 2006.   
 
2. Policy objective and/or purpose of the subsidy  
 
The programme aims at assisting producers by offering financial restructuring aid.   
 
3. Background and authority for the subsidy  
  The Ministry of Agriculture.   
 
4. Legislation under which it is granted  
 
Estonian National Development Plan 2004-2006;   Estonian Rural Development Plan 2004-
2006;  European Union Common Agricultural Po licy Implementation Act of 24 March 2004.   
 5. Form of the subsidy
 
 
 Grant.    6. To whom and how the subsidy is provided
 
  Investments subsidies are provided thr ough NDP to agricultural producers who are 
continuously maintaining economic productivity or who can reach this after the investments are made.  
The producer also must fulfil at least the minimu m amount of the requirements, which involve the 
environment, the hygiene and welfare of animals.  Through investments aids different investments in agricultural area are supported:    
 1) Investments in agricultural holdings - increasing the competitiveness of agriculture 
through raising the level of technology and improving the quality of products.   
 2) Investment support for improving processi ng and marketing of agricultural products - 
bringing the processing of agricultural produc tion into conformity with new market 
requirements, finding new markets for agricultural products and improving the 
functioning of marketing channels.   
 3) Investment to integrated land improve ment - land improvement and development of 
the infrastructure related to agricultural development.   
 
 Also two different subsidies are provided through the RDP:   
 
 1) Support to the agricultural holdings that they could meet the EU requirements – to 
adjust the agricultural production and stock raising to the EU requirements.   
 2) Support for semi-subsistence farms to gi ve smaller agricultural holdings temporary 
income support in the post-accession transitiona l period, and to thus contribute to the 
maintenance of smaller agricultural hold ings and make them more economically 
viable.   
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2005 – 123,76 Mio EEK.    Fiscal year 2006 – 64,42 Mio EEK.   G/SCM/N/155/EEC/Add.7 
Page 26  
 
  8. Duration of a subsidy and/or any other time limits attached to it
 
 
Duration of a subsidy is the validation period of Estonian National Development Plan 2004-
2006 and Rural Development Plan 2004-2006.    
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A.    G. P
AYMENT UNDER ENVIRONMENTAL PROGRAMMES  
1. Period covered by the notification  
  2005, 2006.    2. Policy objective and/or purpose of the subsidy
 
 
This support is provided for environmentall y friendly and sustainable production methods.  
The aim of liming acid soils is to improve the soil fertility in the regions with low soil acidity.   
 
3. Background and authority for the subsidy  
 
 The Ministry of Agriculture.   
 
4. Legislation under which it is granted  
 
Rural Development and Agricultural Market Re gulation Act of 21 April 2004;  Estonian 
Rural Development Plan 2004-2006.   
 
5. Form of the subsidy  
 
 Grant.   
 
6. To whom and how the subsidy is provided   
 
 The aim of the support is to introduce e nvironmentally friendly production methods and 
increase the share of organic farming in traditional ag riculture that will promote sustainability of the 
environment by restricting the use of fertilizers a nd pesticides in the handling of organic foodstuffs, 
and facilitates the preservation of the natural fertility of the soil, the assurance of biological diversity 
and the continued use of semi-natural grasslands.  Support is granted annually and is calculated on the 
basis of income foregone and additional costs resulti ng from the given actions and the need to provide 
an incentive.  Payments are based on limitations on th e use of fertilizers, plant protection products or 
other inputs.    
 Liming support is provided to the farmers in  the regions with soil acidity less or equal 
to 6.0 pHkcl, which is determined by the respective,  soil research laboratories.  The state covers part 
of the expenses of the farmer in relation to  purchasing the liming services from the company 
determined via public tender.  The support do es not foresee the production growth and the support 
amount is neither linked to production volumes nor to  price or income levels.  The supplementary 
effect of the support measure is retaining inhabitati on in remote areas with agriculturally poor quality 
lands.    G/SCM/N/155/EEC/Add.7 
 Page 27 
 
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy   
 
 Fiscal year 2005 – 88,80 Mio EEK.    Fiscal year 2006 – 82,67 Mio EEK.   
 
8. Duration of a subsidy and/or any other time limits attached to it
 
 
 Duration of a subsidy is the validation peri od of Rural Development Plan 2004-2006.  Other 
supports have no time limits attached to them.   
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy  
  N/A.   
 
H. P
AYMENT UNDER REGIONAL ASSISTANCE PROGRAMMES  
1. Period covered by the notification  
 
 2005, 2006.   
 
2. Policy objective and/or purpose of the subsidy  
 
General objective of the measure is to secure to  continuous land use in less-favoured areas.   
 
3. Background and authority for the subsidy  
  The Ministry of Agriculture.   
 
4. Legislation under which it is granted
 
  Estonian Rural Development Plan 2004-2006.    
5. Form of the subsidy
 
 
 Grant.   
 
6. To whom and how the subsidy is provided  
 
The aim of the measure is to secure the continuous land use in less-favoured areas.  
According to estimation, there are about 465 000 ha  of agricultural land in Estonia that falls under 
less-favoured areas.   
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2005 – 24,94 Mio EEK.   
 Fiscal year 2006 – 22,63 Mio EEK.   G/SCM/N/155/EEC/Add.7 
Page 28  
 
  8. Duration of a subsidy and/or any other time limits attached to it
 
  Duration of a subsidy is the validation peri od of Rural Development Plan 2004-2006.   
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A.   
 
 
__________