RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/LAO/1 
19 July 2006 
 
 (06-3482) 
Working Party on the 
Accession of the Lao PDR Original:   English 
 
 
 
ACCESSION OF THE LAO PDR 
 
Domestic Support and Export Subsidies in the Agricultural Sector  
 
 
 The following submission is being circulated at the request of the Delegation of the Lao People's Democratic Republic (Lao PDR).   
_______________ 
  
  WT/ACC/SPEC/LAO/1 
Page 2 Supporting Table DS: 1 
DOMESTIC SUPPORT:  LAO PEOPLE'S DEMOCRATIC REPUBLIC 
REPORTING PERIOD:  Fiscal years1 2001 - 2003 
 
Measures exempt from the re duction commitment – "Green Box" 
 
Measure type Description of the measure Monetary value of measure 
(Unit –US$) Data sources 
1 2 3 4 
1.  General services 
20012 221,137 
2002 1,056,881 (a)  Research National Agriculture and Fore stry Research Institute research on all 
aspects of agriculture development and production, in accordance with 
Annex II:2(a) of the Agr eement on Agriculture.  2003 1,036,147 
Total Average 771,388 Ministry of Agriculture and Forestry 
2001 394,319 
2002 2,487,172 (b)  Pest and 
diseases 
control and 
inspection 
services Expenditure on plant and animal inspection and plant quarantine and 
animal health control, in accordance with Annex II:2(b) and (e) of the 
Agreement on Agriculture. 2003 2,397,426 
Total Average 1,759,639 Ministry of Agriculture and Forestry 
2001 284,523 
2002 2,024,662 (c)  Training 
services Expenditure on training provided by agricultural schools, in 
accordance with Annex II:2(c) of the Agreement on Agriculture. 
2003 2,029,239 
Total Average 1,446,141 Ministry of Agriculture and Forestry 
2001 738,812 
2002 1,250,298 (d)  Extension and 
advisory 
services National Agriculture and Forestry Extension Service activities, in 
accordance with Annex II:2(d) of the Agreement on Agriculture.  
2003 2,779,712 
Total Average 1,589,607 Ministry of Agriculture and Forestry 
2.  Domestic distribut ion of food aid  
2001 56,363 
2002 29,833 (a)  Domestic food 
aid Government expenses for the distribution of foreign aid (mainly food 
and seed) to alleviate the effects of natural disasters such as flood, 
drought and fire damage.  This includes Food for Work and Food for 
activities programs under the World Fo od Program, in accordance with 
Annex II:4 of the Agreement on Agriculture. 2003 28,388 
Total Average 38,195 Ministry of Labour and Social 
Welfare 
 
                                                      
1 Fiscal Year is October to September. 
2 Exchange rate 2001=8,871 kip/US$; 2002=10,056 kip/US$; and 2003=10,568 kip/US$.  
   WT/ACC/SPEC/LAO/1
 Page 3Supporting Table DS: 2 
DOMESTIC SUPPORT:  LAO PEOPLE'S DEMOCRATIC REPUBLIC 
REPORTING PERIOD:  Fiscal years 2001 - 2003 
 
Measures exempt from the reduction commitm ent – "Development Programme" (Article 6.2) 
 
Measure type Description of the measure Monetary value of measure Data sources 
1 2 3 4 
2001:           N/A 
2002:          1,530,158 
2003:          1,447,166 (a)  Investment subsidies generally 
available to agriculture and input 
subsidies generally available to 
low-income or resource-poor 
producers Investment and operating credit at 
lower than normal market interest rates 
generally available to farmers and 
groups of farmers to promote 
agriculture production, in accordance 
with Article 6.2 of the Agreement on 
Agriculture. Average:    1,488,662 Ministry of Finance, Agriculture 
Promotion Bank, and Bank of Lao PDR 
2001:            158,610 
2002:            138,018 
2003:            146,470 (b)  Input subsidies generally 
available to low-income or 
resource-poor producers Lower than normal market electricity 
rates for farmers in accordance with 
Article 6.2 of the Agreement on 
Agriculture. Average:       147,699 Ministry of Industry and Handicraft and 
Electricity du Laos 
  
  WT/ACC/SPEC/LAO/1 
Page 4 Supporting Table DS: 3 
DOMESTIC SUPPORT:  LAO PEOPLE'S DEMOCRATIC REPUBLIC 
REPORTING PERIOD:  Fiscal years 2001 - 2003 
 
Measures exempt from the re duction commitment – Direct Paymen ts under Production–Lim iting Programme – "Exempt Direct Payments" 
 
Measure 
type Name and description of measure with reference to criteria in  
Article 6.5 of the Agreement on Agriculture Year Monetary value of measure Data sources 
1 2 3 4 5 
NIL 
  
   WT/ACC/SPEC/LAO/1
 Page 5Supporting Table DS: 4 
DOMESTIC SUPPORT:  LAO PEOPLE'S DEMOCRATIC REPUBLIC 
REPORTING PERIOD:  Fiscal years 2001 - 2003 
 
Calculation of the Total Aggregate Measurement of Support 
 
Description of basic products (including 
non-product specific AMS) Products-specific AMS from 
Supporting Tables DS:5 to DS:7 Product-specific measurements of support 
(from Supporting Table DS:8) Current Total AMS 
(aggregate) 
1 2 3 4 
Product-specific AMS NIL NIL NIL 
Non-product-specific AMS   de minimis 
  
  WT/ACC/SPEC/LAO/1 
Page 6 Supporting Table DS: 5 
DOMESTIC SUPPORT:  LAO PEOPLE'S DEMOCRATIC REPUBLIC 
REPORTING PERIOD:  Fiscal years 2001 - 2003 
 
Product-Specific Aggregate Measuremen ts of Support: Market Price Support 
 
Description of 
basic products Fiscal year Measure type(s) Applied 
administered 
price External 
reference price Eligible 
production Associated 
fees/Levies Total market 
price support Data sources 
1 2 3 4 
US$/MT 5 
US$/MT 6 
MT 7 8 
{(4-5)x6}-7 9 
2001 169.093 260 1,403,9684  NIL 
2002 149.16 261 1,498,230  NIL Rice 
2003 Minimum farm 
gate price 
141.94 267 1,472,562  NIL Ministry of 
Commerce, 
Ministry of 
Agriculture and 
Forestry 
and University of 
Arkansas.  
FOB  price for 
low quality rice 
in Thailand. 
 
 
    
 
     
                                                     
 
3 1,500 kip/kg converted at the following exchange rates:  2001=8,871 kip/US$; 2002=10,056 kip/US$; 2003=10,568 kip/US$. 
4 Total value in US$ of rice production 2001:  321.3 million; 2002: 324.5 million; 2003: 308.7 million 
Total value in US$ of agricultural production:  2001: 821.4 million; 2002: 832.8 million; 2003: 805.8 million 
Note: Internal market prices remained above the minimum farm gate price throughout the base period.  
  
   WT/ACC/SPEC/LAO/1
 Page 7Supporting Table DS: 6 
DOMESTIC SUPPORT:  LAO PEOPLE'S DEMOCRATIC REPUBLIC 
REPORTING PERIOD:  Fiscal years 2001 - 2003 
 
Product-Specific Aggregate Meas urements of Support:  Non-Exempt Direct Payments 
 
Description 
of basic 
products Period/year Measure 
type (s) Applied 
administered 
price External 
reference 
price Eligible 
production Total price 
related direct 
payments Other non-
exempt 
direct 
payments Associated 
fees/levies Total direct 
payments Data sources 
1 2 3 4 5 6 7 
(4-5)x6 8 9 10 
(7+8-9) 11 
NIL 
  
  WT/ACC/SPEC/LAO/1 
Page 8 Supporting Table DS: 7 
DOMESTIC SUPPORT:  LAO PEOPLE'S DEMOCRATIC REPUBLIC 
REPORTING PERIOD:  Fiscal years 2001 - 2003 
 
Product-Specific Aggregate Measurements  of Support:  Other Product-Specific Support and Total Pr oduct-Specific AMS 
 
Description 
of basic 
products 
 Period/year Measure 
type (s) Other 
product 
specific 
budgetary 
outlays Other 
product 
specific 
support Associated 
fees/levies Total other 
product 
specific 
support Market price 
support 
(Supporting 
Table DS:5) Non-Exempt 
direct 
payments 
(Supporting 
Table DS:6) Total AMS Data sources 
1 2 3 4 5 6 7 
(4-5)x6 8 9 10 
(7+8-9) 11 
NIL 
  
   WT/ACC/SPEC/LAO/1
 Page 9Supporting Table DS: 8  
DOMESTIC SUPPORT:  LAO PEOPLE'S DEMOCRATIC REPUBLIC 
REPORTING PERIOD:  Fiscal years 2001 - 2003 
 
Product-Specific Equivalent Measurements of Support 
 
Description 
of basic 
products Period or 
year Measure 
type (s) Applied 
administered 
price Production 
eligible to 
receive the 
applied 
administered 
price Market 
price 
support 
budgetary 
outlay Equivalent 
measurement 
of support 
(include 
calculation 
details) Non-
exempt 
direct 
payment Other 
product 
specific 
support Associated 
fees and 
levies Total 
monetary 
value of 
equivalent 
commitment Data 
sources 
1 2 3 4 5 6 7 8 9 10 11 12 
NIL 
  
  WT/ACC/SPEC/LAO/1 
Page 10 Supporting Table DS: 9 
DOMESTIC SUPPORT:  LAO PEOPLE'S DEMOCRATIC REPUBLIC 
REPORTING PERIOD:  Fiscal years 2001 - 2003 
 
Non-Product-Specific AMS 
 
Measure Types Year or period Non-product-specific 
budgetary outlay Other non-product-
specific support Associated 
fees/levies Total non-product-
specific support 
US$ Data sources 
1 2 3 4 5 6  
(= 3+4-5) 7 
State-owned enterprise 
purchases farm products at 
market prices and sells them 
back into the domestic market 
at a later time in order to 
stabilise supplies and prices. 
The government provided 
initial investment of 
US$19,5005 in 1994.  Since 
then the company has operated 
at a profit requiring no further 
government funding 2001 
2002 
2003 NIL 
NIL 
NIL NIL 
NIL 
NIL NIL 
NIL 
NIL NIL 
NIL 
NIL Ministry of 
Commerce 
Irrigation subsidy  2001 
2002 
2003 
Total Average 1,674,110 
11,935,551 
11,763,995 
8,457,885 NIL 
NIL 
NIL 
NIL NIL 
NIL 
NIL 
NIL 1,674,110 
11,935,551 
11,763,995 
8,457,8856 Ministry of 
Agriculture and 
Forestry 
 
                                                      
5 Exchange rate 1994:  717.5 kip/US$. 
6 de minimis.  
   WT/ACC/SPEC/LAO/1
 Page 11Supporting Table ES: 1 
EXPORT SUBSIDIES:  LAO PEOPLE'S DEMOCRATIC REPUBLIC 
REPORTING PERIOD:  Fiscal years 2001 - 2003 
 
Export Subsidies:  Outlay and Quantity 
 
Description of 
products Direct export 
subsidies Sales of stocks Producer 
financed 
subsidies Cost reduction 
measures Internal 
transport 
subsidies Total product-
specific export 
subsidies Quantity of 
subsidized 
exports Data sources 
1 2 3 4 5 6 7 8 9 
NIL 
 
  
__________