WORLD TRADE  
ORGANIZATION  G/SCM/Q4/URY/6 
5 March 2007 
 
 (07-0911) 
Committee on Subsidies and 
Countervailing Measures Original:   Spanish 
 
 
 
PROCEDURES FOR EXTENSIONS UNDER ARTICLE 27.4 
OF THE AGREEMENT ON SUBSIDIES AND 
COUNTERVAILING MEASURES 
 
Replies to the Questions Posed by COLOMBIA1 
   The following communication, dated 27 February 2007, is being circulated at the request of 
the delegation of Uruguay . 
 
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Question 1
 
 
 In 2005, was Uruguay's share of world merc handise export trade less than 0.1 per cent 
and was its gross national income below US$20 billion?  
Reply
 
 
 Yes. 
 
Question 2  
  How many enterprises are beneficiaries of  the Automotive Industry Export Promotion 
Regime? 
 
Reply
 
  The number varies depending on the year, but never exceeds 20.  Question 3
 
  How many persons were employed by bene ficiary enterprises under the Automotive 
Industry Export Promotion Regime in 2005? 
 Reply
 
  We have no statistical information.  
                                                     
 
1 G/SCM/Q4/URY/4. G/SCM/Q4/URY/6 
Page 2  
 
  Question 4
 
  What was the ratio of foreign capital to domestic capital in beneficiary enterprises 
under the Automotive Industry Export Promotion Regime for the most recent year for which 
statistics are available? 
 
Reply
 
  In Uruguay, "foreign" capital is treated no di fferently from domestic capital by the tax 
authorities, and its status within the legal system in  general is the same.  Consequently, the records do 
not contain any data that would enable us to answer the question. 
 
Question 5
 
  What was the value of exports by beneficiary enterprises under the above-mentioned 
programme during the years 2000-2005? 
 
Reply
 
  It varied, depending on the year, be tween 120 and 180 million US dollars. 
 
Question 6
 
  For the years 2000-2005, what was the proporti on of exports by beneficiary enterprises 
under the Automotive Industry Export Promotio n Regime in relation to total Uruguayan 
exports? 
 Reply
 
  The proportion varied between 5 and 9 per cent between 2000 and 2005. 
 
Question 7
 
  
 What were the destination markets and th e value of exports to those markets by 
enterprises benefiting from the above-mentioned regime for the years 2000-2005?  
Reply
 
 
 No statistical information is available.  
Question 8
 
  What was the ratio of foreign sales to domest ic sales for enterprises benefiting from the 
above-mentioned regime during the period 2000-2005? 
 
Reply
 
  Domestic market sales are practically non-existent.  Question 9
 
  How long has the Automotive Industry Expo rt Promotion Regime been in existence? 
  G/SCM/Q4/URY/6 
 Page 3 
 
 
  Reply  
  Since 1992, as can easily be seen by checking the date of approval of the measures which are attached to Uruguay's notifi cations to the Committee. 
 Question 10
 
  What was the value of the subsidies granted to beneficiary enterprises under the programme during the years 2000-2005? 
 Reply
 
  The value of the subsidies is 10 per cent of the f.o.b. value of the exports.  
Question 11
 
 
 The policy objective and purpose of the subs idies granted under this  programme is the 
"restructuring of the automotive sector and speci alization in market segments for export".  
What percentage of the above-mentioned restructuring was completed by the year 2005?  
Reply
 
 
 As can be seen from the reply to question 8, th e export market orientation is total;  but this 
does not mean that the programme has been completed,  since it also aims to achieve specialization in 
market segments and proper integr ation in regional production chains. 
 Question 12
 
  Why will restructuring of the automotive  sector not have been completed by 2007? 
 
Reply
 
 
 I do not think we can make any presumptions in this respect. 
 
Question 13  
  What is meant by specialization in market segments for export?  Does this refer to the 
market of the MERCOSUR countries?  
Reply
 
  Indeed, the strategy of integration in regi onal value-added chains (in MERCOSUR) is based 
on specialization in market segments. 
 
Question 14
 
  Uruguay justifies the request for an exte nsion based on its economic, financial and 
development needs.  Could Uruguay explain how the elimination of export subsidies under the 
Automotive Industry Export Regime  impacts its financial needs? 
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Page 4  
 
  Reply
 
  The subsidy is meant to stimulate investment  decisions in the sector, with the financial 
contribution that this implies.  Question 15
 
  Does Uruguay consider its automotive industry to be a fledgling industry which thus needs subsidization in order to be able to maintain a market presence? 
 Reply
 
  It is not a fledgling industry, but an indus try developed under import substitution policies.  
What we are seeking is its inte gration into the global market. 
 
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