WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/ARG 
10 February 2012 
 (12-0797) 
Committee on Subsidies and 
Countervailing Measures Original: Spanish 
 
 
 
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 
 
ARGENTINA 
  
 The following communication, dated 6 February 2012,  is being circulated at the request of the 
delegation of Argentina.  
_______________ 
 
 
 The following is Argentina's new and full notifi cation for 2011, pursuant to Article XVI.1 of 
the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing Measures, 
corresponding to the period 1 January 2008 to 31 December 2010.   
CONTENTS 
 
Page 
 
MINING ........................................................................................................................ .......................... 2  
FORESTRY ACTIVITY ............................................................................................................. .......... 4 
FREE ZONES .................................................................................................................... .................... 6  
CAPITAL GOODS, INFORMATION TECHNOLOGY AND 
TELECOMMUNICATIONS REGIME .............................................................................................. 7  
ANNEX 1 ....................................................................................................................... ....................... 10 
 G/SCM/N/220/ARG 
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  MINING 
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
 Law No. 10.273 on tax exemptions, am ending Article 270 of the Mining Code. 
 
 Law No. 22.095 on promotion of mining activities, regulated by Decree No. 554/81. 
  Law No. 24.196 on mining investment and its Regulatory Decree No. 2.686/93.  The latter was amended on 7 May 2003 by Decree No. 1.089/03 , which incorporates a number of adjustments 
reflecting the experience gained over the nine years in which the Law has been in force, one of the 
major issues being the methodology for determining the tax burden for purposes of tax stability.  The 
Decree also regulates the benefits granted under the Law during the exploration stage.  The procedure 
for the submission of information has been am ended by AFIP General Resolution No. 2019/2006. 
  Decree No. 779/95 and amendments thereto,  Decree No. 216/96, Decree No. 1.343/99, 
Decree No. 349/00 and Decree No. 1.188/01 on the value added tax financing regime, amending Law 
No. 24.402.   Decree No. 1.591/93, regulating Law No. 24.228 on the Federal Mining Agreement. 
 
2. Period covered by the notification 
 1 January 2008 to 31 December 2010. 
 
3. Policy objective and/or purpose of the subsidy 
 The purpose of the legislation in question is to encourage mining activities in order to 
contribute to the country's development, ensure th e rational exploitation of mining resources, generate 
employment and diversify regional economies. 
 
4. Background and authority for the subsidy (including identification of the legislation 
under which it is granted) 
 Law No. 10.273:  Published in the Boletín Oficial  (Official Journal) of 17 November 1917. 
Law No. 22.095:  Published in the Official Journal of 1 November 1979 - EXPIRED IN 2008. 
 Decree No. 554/81:  Published in th e Official Journal of 31 March 1981. 
 Law No. 24.196:  Published in the Official Journal of 24 May 1993.  Decree No. 1.591/93:  Published in the Official Journal of 2 August 1993.  Law No. 24.228:  Published in the Official Journal of 2 August 1993.  Law No. 24.402:  Published in the Official Journal of 9 December 1994. 
 Decree No. 2.686/93:  Published in the Official Journal of 3 January 1994. 
 Decree No. 779/95:  Published in the Official Journal of 5 June 1995.  Decree No. 216/96:  Published in the Official Journal of 6 March 1996.  Decree No. 1.343/99:  Published in the Official Journal of 18 November 1999.  Decree No. 349/00:  Published in the Official Journal of 3 May 2000.  Decree No. 1.188/01:  Published in the Official Journal of 24 September 2001. 
 Decree No. 1.089/03:  Published in the Official Journal of 9 May 2003. 
 AFIP General Resolution No. 2019/06:  Publishe d in the Official Journal of 21 March 2006.  G/SCM/N/220/ARG 
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  5. Form of the subsidy (i.e. gran t, loan, tax concession, etc.) 
 Law No. 10.273 (amendment to Article 270 of the Mining Code):  Tax exemptions. 
Law No. 22.095:  Tax concessions and exemptions .  Special promotion:  tax concessions and 
exemptions, deferment of payment, custom s exemptions.  This scheme ended in 2008. 
 Law No. 24.196:  Tax stability.  Tax con cessions and exemptions.  Customs exemptions. 
 Law No. 24.402:  Value added tax financing regime. 
 Law No. 24.228:  Tax elimination.  
6. To whom and how the subsidy is provide d (whether to producers, to exporters or 
others;  through what mechanism;  whether a fixed sum or fluctuating amount per unit;  
if the latter, how determined) 
 Law No. 10.273 (amendment to Article 270 of th e Mining Code):  The tax exemptions relate 
to mines under concession to private individuals.   Law No. 22.095:  Potential beneficiaries of this Law are natural persons domiciled in 
Argentina and legal persons incorporated in the coun try or authorized to act within national territory 
who are engaged in the mining activities set out in Artic le 6 of the Law.  The benefits of the special 
promotion are granted to eligible  persons who apply for them under Chapter IV of the Law.  Loans 
and non-repayable contributions are granted pursuant to Articles 21, 22, 23 and 24 of the Law.  This Law was abrogated by Article 30 of Law No . 24.196 and its benefits expired in 2008. 
 
 Law No. 24.196:  All natural persons domicile d in Argentina and legal persons incorporated 
in the country or authorized to act within its te rritory who are engaged in the mining activities set out 
in Article 5 thereof are eligible for the regime established under this Law. 
  The tax stability granted by this Law mean s that enterprises engaged in mining activities 
within the framework of this investment regime  are not liable, beyond the total tax burden, to 
increases in the taxes and duties, of whatever desc ription, imposed by the national, provincial or 
municipal authorities adopting this regime or to the introduction of new ta xes which would legally 
apply to them, as subject to such authorities.  It also applies to the foreign exchange and tariff 
regimes, excluding exchange parity and refunds, repa yments and/or drawback of taxes on account of 
export activities.  It does not apply to value added tax. 
 
 Tax stability is granted for thirty (30) years from the date of submission of the feasibility study for the mining ventures coming under the regime.   Law No. 24.402:  This Law has instituted a re gime for financing payment of value added tax 
through credit lines granted by financial entities.  Th e beneficiaries of this regime are the purchasers 
or importers of the goods referred to in the Law (Article 1), inasmuch as they are intended for the 
productive process, and persons subject to the regime  established under Law No. 24.196 who invest in 
civil and construction works to provide the infr astructure required for the production of goods. 
  Law No. 24.228:  The provinces are called upon to eliminate taxes on mining activities from 
their legislation pursuant to points 9 and 10 of the Federal Mining Agreement. 
 G/SCM/N/220/ARG 
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  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 amounts disbursed for the development of mining activity for the period 2006-2010 were 
as follows:  
 2006 2007 2008 2009 2010 
Law No. 24.196 75.1 82 156.31 230.98 251.28 
Tax concessions 30.5 18.3 22.9 73.9 23.5 
Law No. 22.095 
(expired in 2008) 1.6 0.54 0 0 0 
 
N.B.: In millions of pesos. 
Source : Department of Mining, Ministry of Federal Planning, Public Investment and Services. 
 
8. Duration of the subsidy and/or any other time-limits attached to it, including date of 
inception/commencement 
 Pursuant to Decree No. 1343/99, the VAT financing regime came to an end on 
31 December 2005.  The legislation does not s tipulate end dates for the other programmes. 
  The application of benefits gran ted under Law No. 22.095 ended in 2008. 
 
FORESTRY ACTIVITY 
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
 Law No. 13.273 on promotion of forestry activity (regulatory enactment by Decree 
No. 710/95).   Decree No. 711/95 on promotion of forest plantations. 
 
 Law No. 24.857 on tax stability.   Law No. 25.080 on promotion of investment fo r cultivated forests (regulatory enactment by 
Decree No. 133/99), and Amendment Resolutions  Nos. 610/99, 152/00 and 22/01 (amended by 
Resolution No. 45/05), Resolution No. 260/05 (provision of security for receipt of the benefits), 
Resolution No. 686/2006 (deadline for submission of  sworn statements and relevant security) and 
Resolution No. 75/2007.  The procedure for the s ubmission of information has been amended by 
AFIP General Resolution No. 2019/2006.  Law No . 26.432 extends the established time-frames for 
a period of ten years as from their expiry.  Resolutio n No. 102/2010 of the Department of Agriculture, 
Livestock, Fisheries and Food (SAGPyA) updates the benefits. 
 
2. Period covered by the notification 
 1 January 2008 to 31 December 2010. 
  G/SCM/N/220/ARG 
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  3. Policy objective and/or purpose of the subsidy 
 The environmental and economic potential of Ar gentina's forestry sector has barely been 
exploited.  The purpose of the legislation in this area is to promote forestry activity throughout the 
country with a view to encouraging medium- and long-term investment a nd generating employment. 
 4. Background and authority for the subsidy (including identification of the legislation 
under which it is granted) 
 Law No. 13.273:  Published in the Official Journal of 6 October 1948. 
 Decree No. 710/95:  Published in the Official Journal of 24 November 1995.  Decree No. 711/95:  Published in the Official Journal of 24 November 1995. 
 Law No. 24.857:  Published in the O fficial Journal of 11 September 1997. 
 Law No. 25.080:  Published in the Official Journal of 19 January 1999.  Law No. 26.432:  Published in the Official Journal of 29 December 2008.  Decree No. 133/99:  Published in the Official Journal of 1 March 1999.  Resolution No. 610/99:  Published in the Official Journal of 1 November 1999. 
 Resolution No. 152/00:  Published in the Official Journal of 19 April 2000. 
 Resolution No. 22/01:  Published in th e Official Journal of 30 March 2001. 
 Resolution No. 45/05:  Published in the Official Journal of 15 February 2005. 
 Resolution No. 260/05:  Published in the Official Journal of 27 April 2005.  Resolution No. 686/06:  Published in the Official Journal of 17 October 2006.  AFIP General Resolution No. 2019/06:  Publishe d in the Official Journal of 21 March 2006. 
Resolution No. 75/07:  Published in the Official Journal of 9 February 2007. 
Resolution No. 587/08:  Published in the Official Journal of 25 July 2008. Resolution No. 102/2010:  Published in the Official Journal of 11 March 2010. 
 
5. Form of the subsidy (i.e. gran t, loan, tax concession, etc.) 
Law No. 13.273 (regulatory enactment by D ecree No. 710/95):  Customs exemptions and 
promotion measures. 
 Decree No. 711/95:  Tax credits.  Law No. 24.857:  Tax stability.  Law No. 25.080:  Tax credits.  6. To whom and how the subsidy is provide d (whether to producers, to exporters or 
others;  through what mechanism;  whether a fixed sum or fluctuating amount per unit;  if the latter, how determined) 
 Law No. 13.273 (regulatory enactment by Decree No. 710/95):  The equipment, tools, drugs, 
seeds, cuttings and other elements needed for afforest ation, the reforestation of the country and survey 
work are exempted from customs duties. 
  Decree No. 711/95:  A tax credit, of a fixed amount  per hectare of forest classified as eligible, 
is granted to natural and legal pe rsons owning cultivated forests for the forestry activities of planting, 
pruning, thinning and other silvicultural treatments.  
 Law No. 24.857:  Tax stability is enjoyed by all forestry and forest exploitation activities 
coming under Law No. 13.273.  By tax stability it is meant that enterprises engaged in forestry or forest exploitation activities are not liable, beyond the total tax burden determined at the time of 
submission of the relevant feasibility study, to increases in the taxes a nd duties, of whatever 
description, imposed by national, provincial or m unicipal authorities or to the introduction of new 
taxes which would legally apply to them as subject to such authorities. G/SCM/N/220/ARG 
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 Law No. 25.080:  Value added tax is refunde d on the purchase or definitive importation of 
goods, leases or the provision of services effectively intended as an investment under the forestry 
project.  Non-repayable economic support is granted for planted forests of not less than 500 hectares 
on a scale established by the Law.  Law No. 26. 432 amends Article 4 of Law No. 25.080 by 
redefining the concept of a planted forest, and ex tends the time-frames provided for in Articles 17.2 
and 25 for a period of ten years as from their expiry.   Resolution No. 587/2008 amends the Annex to Resolution No. 75/07, which details the costs 
and economic support per hectare. 
 
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 total non-repayable amounts disbursed fo r economic support in the period 2006-2010 
were as follows:  
2006 27.2 million pesos 2007 42.7 million pesos 
2008 48.6 million pesos 
2009 83 million pesos 2010 84.5 million pesos 
Source : Ministry of Agriculture, Livestock and Fisheries. 
 
8. Duration of the subsidy and/or any other time-limits attached to it, including date of 
inception/commencement 
 Undertakings under the regime will benef it from tax stability for a period of up to 
thirty (30) years from the date of approval of the corresponding project.  FREE ZONES 
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
 Free Zones.  Law No. 24.331 (the Resolutions  establishing the exploitation concessions and 
operating regulations and standards fo r free zones are listed in Annex 1). 
 
 Free Zones.  Law No. 25.005 and Regulatory Decree No. 932/98.  Amendment to Article 44 of Law No. 24.331.  
2. Period covered by the notification 
 1 January 2008 to 31 December 2010. 
3. Policy objective and/or purpose of the subsidy 
 The policy objective in this respect is set out in Article 4 of Law No. 24.331, as follows:  
"The objective of the free zones shall be to stimul ate trade and industrial export activity, helping to  G/SCM/N/220/ARG 
 Page 7 
 
 
  extend to investment and employment the increase in efficiency and reduction in costs associated with 
the activities developing within such zones.  The fr ee zones shall function in accordance with national 
trade policy, shall contribute to the growth and competitiveness of the economy and shall be fully 
incorporated into the regional integration process".  4. Background and authority for the subsidy (including identification of the legislation 
under which it is granted) 
 Law No. 24.331:  Published in the Official Journal of 17 June 1994. 
 Law No. 25.005:  Published in the Official Journal of 18 August 1998.  Decree No. 932/98:  Published in the Official Journal of 18 August 1998. 
 
5. Form of the subsidy (i.e. gran t, loan, tax concession, etc.) 
 Exemption from duties on the importation for consumption of goods entering the free zone 
and goods leaving the free zone for third countri es;  charges for services effectively supplied are 
excluded from the exemption (Articles 24 and 25 of Law No. 24.331). 
 
 Exemption from the payment of national taxes on basic services supplied within the free zone.  
For this purpose, basic services mean those involving the provis ion of telecommunications, gas, 
electricity, running water and drainage and treatment of sewage.   There are no economic prohibitions in force. 
 
6. To whom and how the subsidy is provide d (whether to producers, to exporters or 
others;  through what mechanism;  whether a fixed sum or fluctuating amount per unit;  if the latter, how determined) 
 The exemptions benefit persons  engaged in activities within the free zone in accordance with 
Law No. 24.331. 
 
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. 
 Lack of data makes such calculations impossible. 
 
8. Duration of the subsidy and/or any other time-limits attached to it, including date of 
inception/commencement 
 Benefits under this legislation apply from the commencement of activities within the free 
zone, in accordance with the conditions  established by Law No. 24.331. 
 
CAPITAL GOODS, INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS 
REGIME 
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
 The capital goods, information technology and telecommunications regime is regulated by 
Decrees Nos. 379/2001 and 502/2001.  These Decrees were in turn amended by Decree No. 594/2004, G/SCM/N/220/ARG 
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  which lays down the conditions to be fulfilled by manufacturers to obtain the benefit, Decrees 
Nos. 201/2006, 2316/2008 and 917/2010, which extend the validity of this regime, and Resolutions 
Nos. 224/2006 and 542/2006.  
2. Period covered by the notification 
 1 January 2008 to 31 December 2010. 
 
3. Policy objective and/or purpose of the subsidy 
 The objective of the legislation in this area is set out in Article 1 of Decree No. 502/2001.  
This is an incentives regime for manufacturers in the capital goods, information technology and 
telecommunications sectors with establishments in national territory.  Given that tariffs were reduced 
to 0 per cent pursuant to Resolutions Nos. 8/2001 and 27/2001, the purpose of the regime is to maintain competitive conditions for domestically  produced capital goods in relation to imports. 
 
4. Background and authority for the subsidy (including identification of the legislation 
under which it is granted) 
 Decree No. 379/2001:  Published in th e Official Journal of 30 March 2001. 
Decree No. 502/2001:  Published in the Official Journal of 2 May 2001. Resolution No. 8/2001:  Published in the Official Journal of 27 March 2001. Resolution No. 27/2001:  Published in the Official Journal of 10 April 2001. Decree No. 594/2004:  Published in the Official Journal of 13 May 2004. 
Decree No. 201/2006:  Published in the O fficial Journal of 24 February 2006. 
Resolution No. 224/2006:  Published in the Official Journal of 28 July 2006. Resolution No. 542/2006:  Published in the Official Journal of 3 January 2007. Decree No. 2316/2008:  Published in the Official Journal of 7 January 2009. 
 Decree No. 917/2010:  Published in the Official Journal of 8 July 2010. 
 
5. Form of the subsidy (i.e. gran t, loan, tax concession, etc.) 
 A tax bond, to be applied to the payment of  national taxes, of a value equivalent to 
ten per cent (10 per cent) of the amount resulting from the deduction from the sales price of the value 
of imported inputs, parts or components incorporated  in the goods and cleared through customs at an 
import duty of zero per cent (0 per cent). 
 
6. To whom and how the subsidy is provide d (whether to producers, to exporters or 
others;  through what mechanism;  whether a fixed sum or fluctuating amount per unit;  if the latter, how determined) 
 The exemptions benefit manufacturers in the capital goods, information technology and 
telecommunications sectors with industrial establishments in national territory. 
 
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. 
 Lack of data makes such calculations impossible. 
  G/SCM/N/220/ARG 
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  8. Duration of the subsidy and/or any other time-limits attached to it, including date of 
inception/commencement 
 The validity of the regime has been extended to 31 December 2010 under Decree 
No. 917/2010.  G/SCM/N/220/ARG 
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  ANNEX 1:  FREE ZONES 
 
Resolution No. 898/95 Río Gallegos and Ca leta Olivia.  Province of Santa Cruz. 
Resolution No. 33/96 Sierra Grande.  Province of Río Negro. Resolution No. 33/96 Justo Daract.  Province of San Luis. 
Resolution No. 70/96 Zapala.  Province of Neuquén. 
Resolution No. 78/96 Frías.  Province of Santiago del Estero. Resolution No. 79/96 Jachal.  Province of San Juan. Resolution No. 80/96 Cruz Alta.  Province of Tucumán. Resolution No. 275/96 Comodoro Rivadavia.  Province of Chubut. 
Resolution No. 320/96 Comodoro Rivadavia.  Province of Chubut. 
Resolution No. 286/96 General Pico.  Province of La Pampa. Resolution No. 549/96 General Güemes.  Province of Salta. Resolution No. 553/96 Perico and La Puna.  Province of Jujuy. Resolution No. 767/96 Luján de Cuyo.  Province of Mendoza. 
Resolution No. 768/96 Villa Cons titución.  Province of Santa Fe. 
Resolution No. 769/96 Córdoba.  Province of Córdoba. Resolution No. 3235/96 La Plata.  Province of Buenos Aires. Resolution No. 165/97 Paso de los Libres.  Province of Corrientes. Resolution No. 322/97 San Fernando.  Province of Chaco. Resolution No. 634/97 Clorinda.  Province of Formosa. 
Resolution No. 964/97 Chamical and Felipe Varela.  Province of La Rioja. 
Resolution No. 855/98 Tinogasta.  Province of Catamarca. Resolution No. 678/99 Puerto Iguazú.  Province of Misiones. Resolution No. 442/01 Bahía Blanca Cnel. Rosales.  Province of Buenos Aires.  
 All of these Resolutions were issued by the Ministry of the Economy, Works and Public 
Services, except for Resolution No. 3235/96, which was issued by the National Customs 
Administration.  
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