WORLD TRADE  
ORGANIZATION  G/SCM/N/155/EEC/Add.18
23 November 2007 
 (07-5175) 
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 Malta .   
 
_______________ 
 G/SCM/N/155/EEC/Add.18 
Page 2  
 
  MALTA 
 
TABLE OF CONTENTS 
 
 
  Page  
 
INTRODUCTION................................................................................................................... ...............4  
I. REDUCED RATES OF INCOME TAX.................................................................................4  
II. INVESTMENT TAX CREDITS .............................................................................................5  
III. VALUE ADDED INCENTIVE SCHEME .............................................................................6  
IV. REDUCED RATES OF TAX ..................................................................................................7  
V. INVESTMENT ALLOWANCES............................................................................................8  
VI. REINVESTMENT TAX CREDITS........................................................................................9  
VII. SOFT LOANS ..................................................................................................................... ......9  
VIII.  LOAN INTEREST RATE SUBSIDIES................................................................................10  
IX. LOAN GUARANTEES ..........................................................................................................11  
X. SME LOAN GUARANTEE SCHEME ................................................................................12  
XI. INDUSTRY IN GOZO ...........................................................................................................13  
XII. SME COMPLIANCE SCHEME...........................................................................................14  
XIII.  SME FOOD PROCESSING SCHEME ................................................................................15  
XIV.  STRENGTHENING MARKET ENTRY AND INTERNATIONALISATION................15  
XV. TRAINING ASSISTANCE....................................................................................................16  
XVI.  EUREKA PROGRAMME.....................................................................................................17  
XVII.  INNOVATIVE START UP SCHEME..................................................................................18  
XVIII.  AGRICULTURAL CO-FINANCED SUBSIDIES ..............................................................19  
A. SPECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE 
(SMPPMA)  – AID IN THE TOMATOES FOR PROCESSING SECTOR .............................................19  
B. SPECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE 
(SMPPMA)  – AID IN THE FRESH FRUIT SECTOR ......................................................................20  
C. SPECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE 
(SMPPMA)  – AID IN THE FRESH VEGETABLES SECTOR ..........................................................21  
D. SPECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE 
(SMPPMA)  – AID IN THE WINE SECTOR ..................................................................................21  
E. SPECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE 
(SMPPMA)  – AID IN THE PIG HUSBANDRY SECTOR ................................................................22  
F. SPECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE 
(SMPPMA)  – AID IN THE DAIRY SECTOR ................................................................................23  
G. SPECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE 
(SMPPMA)  – AID IN THE EGG PRODUCTION SECTOR ..............................................................24   G/SCM/N/155/EEC/Add.18 
 Page 3 
 
 
  H. SPECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE 
(SMPPMA)  – AID IN THE POULTRY MEAT SECTOR ..................................................................25  
XIX.  AGRICULTURAL NATIONALLY FULL-FINANCED AID ...........................................26  
A. SPECIAL AID PROGRAMME FOR POTATO PRODUCERS ..............................................................26  
B. STATE AID FOR THE TRANSPORT OF PRODUCE FROM GOZO....................................................26  
C. CONTRIBUTION TOWARDS MARKETING EXPENSES TO AGRICULTURAL CO-
OPERATIVES ..............................................................................................................................2 7 
XX. AGRICULTURAL TEMPORARY STATE AID ................................................................28  
A. TEMPORARY STATE AID FOR THE IMPORTATION OF TOMATO PRODUCTS ...............................28  
B. TEMPORARY STATE AID FOR THE IMPORTATION OF DAIRY PRODUCTS ...................................29  
C. TEMPORARY STATE AID FOR THE IMPORTATION OF MEAT PRODUCTS ....................................30  
D. TEMPORARY STATE AID FOR THE IMPORTATION OF CEREAL PRODUCTS ................................30  
E. SPECIAL TEMPORARY STATE AID ON SUGAR IMPORTS ............................................................31  
F. AGRICULTURE INSURANCE PREMIUM (SUBSIDY ) SCHEME ......................................................32  
 G/SCM/N/155/EEC/Add.18 
Page 4  
 
  INTRODUCTION 
 
 This report covers state aid programmes a nd schemes that were in operation between 2005 
and 2006.  The amounts stated in this report are in Maltese Pounds (LM).  The average exchange rate 
between the Maltese Lira and the € was LM1 = € 2.334 in 2005 and LM1 = € 2.329 in 2006.   
  I. REDUCED RATES OF INCOME TAX 
1. Title of Subsidy
 
 
 Reduced Rates of Income Tax.   
 2. Period covered by the notification
 
 
Years 2005 - 2006.   
 
3. Policy objectives  
  To stimulate investment in Malta thr ough reduced rates of income tax.   
 4. Authority of subsidy
 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta).   
 5. Form of subsidy
 
 
 Fiscal - Tax relief.   
 6. To whom and how the subsidy is paid
 
  This incentive may be obtained by qualifyi ng enterprises engaged in activities as specified 
under Regulation 4(3) of the Business Promotion Regulations.  Such enterprises are charged tax at 
5 per cent or 10 per cent, instead of 35 per cent.   
 7. Amount of subsidy
 
  2005 Lm 9,000,905.00.   
 2006 This information is not yet available si nce it may only be obtained from the statutory 
income tax return submitted by the ente rprise.  Enterprises are bound to submit the 
income tax return for a particular year by October of the following year.  In terms of 
Regulation 20 of the Business Pr omotion Regulations (Subsidiary 
Legislation 325.06), there is a further thr ee month period to forward a copy of the tax 
return to Malta Enterprise.   
 
8. Duration of subsidy
 
  In terms of Malta's Accession Treaty to th e EU, this incentive is valid until the end 
of December 2008.   
  G/SCM/N/155/EEC/Add.18 
 Page 5 
 
 
  9. Trade effects of the subsidy  
  No effects on international trade.     II. INVESTMENT TAX CREDITS 
1. Title of the subsidy
 
  Investment Tax Credits.    
2. Period covered by the notification
 
  Years 2005 - 2006.    3. Policy objective
 
 
 To encourage investments through a tax credit based on a percentage of the investment made 
or on the basis of wage costs.    4. Authority of subsidy
 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta).   
 5. Form of subsidy
 
  Fiscal - Tax Credit.   
 
6. To whom and how the subsidy is paid
 
  Companies eligible for Reduced Rates of Income Tax are entitled to a tax credit equivalent to 
a percentage (50 per cent if a large enterprise, 65  per cent if an SME) of the capital investment 
undertaken.   
 
7. Amount of subsidy
 
  2005 Lm 4,246,711.00.    2006 This information is not yet available si nce it may only be obtained from the statutory 
income tax return submitted by the ente rprise.  Enterprises are bound to submit the 
income tax return for a particular year by October of the following year.  In terms of 
Regulation 20 of the Business Pr omotion Regulations (Subsidiary 
Legislation 325.06), there is a further thr ee month period to forward a copy of the tax 
return to Malta Enterprise.   
 
8. Duration of subsidy
 
  No fixed duration.   
 
9. Trade effects of the subsidy
 
 
 No effects on international trade.     G/SCM/N/155/EEC/Add.18 
Page 6  
 
  III. VALUE ADDED INCENTIVE SCHEME 
1. Title of subsidy
 
  Value Added Incentive Scheme.    
2. Period covered by the notification
 
  Years 2005 - 2006.    3. Policy objective
 
 
 To support enterprise through reduced rates of  income tax related to the increase of value 
added derived from their activities.    4. Authority of subsidy
 
 
 Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).   
 5. Form of subsidy
 
  Fiscal - Tax relief.   
 
6. To whom and how the subsidy is paid
 
  This incentive is applicable to enterpri ses carrying out a manufacturing activity which 
includes the production, manufacture, improvement, assembly, processing, repair, preservation or 
maintenance of any goods, materials, commodities, equipment, plant or machinery, or the rendering 
of services of an industrial nature analogous to th ese activities.  Such companies are charged tax at a 
reduced rate of up to 15 per cent on part of their profits.    7. Amount of subsidy
 
 
 2005 Lm 355,374.00.   
 2006 This information is not yet available si nce it may only be obtained from the statutory 
income tax return submitted by the ente rprise.  Enterprises are bound to submit the 
income tax return for a particular year by October of the following year.  In terms of 
Regulation 20 of the Business Pr omotion Regulations (Subsidiary 
Legislation 325.06), there is a further thr ee month period to forward a copy of the tax 
return to Malta Enterprise.   
 8. Duration of subsidy
 
  In terms of Malta's Accession Treaty to th e EU, this incentive is valid until the end 
of December 2008.   
 9. Trade effects of the subsidy
 
  No effects on international trade.    G/SCM/N/155/EEC/Add.18 
 Page 7 
 
 
  IV. REDUCED RATES OF TAX 
1. Title of Subsidy  
  Reduced Rates of Tax.    
2. Period covered by the notification
 
 
Years 2005 - 2006.   
 3. Policy objectives
 
 
 To stimulate investment in Malta throug h reduced rates of income tax and increase 
competitiveness through the acquisition of capital asset s for more effective and efficient production 
and supply of service.  A tax rate lower than 35 pe r cent on profits set aside is utilised to finance 
investments in qualifying projects approved by Malta Enterprise.   
 
4. Authority of subsidy  
  Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta).   
 5. Form of subsidy
 
 
 Fiscal - Tax relief.    6. To whom and how the subsidy is paid
 
 
 Enterprises carrying out activities listed in th e Business Promotion Regulations (Subsidiary 
Legislation 325.06) may benefit from reduced rates of tax.    
Profits set aside and used to finance invest ments in qualifying projects approved by Malta 
Enterprise are charged at a lower tax rate than 35 per cent.  
In the case of manufacturing companies, the tax rate would be reduced by 19.25 percentage 
points, while in the case of hotels, the tax rate would be reduced by 17.5 percentage points.    
The assets through which this assistance is applic able are expected to be retained by the 
company for at least 5 years, or less, as approved by Malta Enterprise.   
 
7. Amount of subsidy
 
  2005 Lm 109,076.00.    2006 This information is not yet available si nce it may only be obtained from the statutory 
income tax return submitted by the ente rprise.  Enterprises are bound to submit the 
income tax return for a particular year by October of the following year.  In terms of 
Regulation 20 of the Business Pr omotion Regulations (Subsidiary 
Legislation 325.06), there is a further thr ee month period to forward a copy of the tax 
return to Malta Enterprise.   
 
8. Duration of subsidy
 
  No fixed duration.    G/SCM/N/155/EEC/Add.18 
Page 8  
 
  9. Trade effects of the subsidy
 
  No effects on international trade.     V. INVESTMENT ALLOWANCES 
1. Title of subsidy
 
  Investment Allowances.    
2. Period covered by the notification
 
  Years 2005 - 2006.    3. Policy objective
 
 
 To encourage investment of a tangible capital nature through a capital allowance based on the 
investment.    4. Authority of subsidy
 
 
 Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).   
 5. Form of subsidy
 
  Fiscal – Tax Relief.   
 
6. To whom and how the subsidy is paid
 
  Companies carrying out a manufacturing activit y may benefit from a deductible allowance 
equivalent to a percentage (50 per cent on plant and machinery and 20 per cent on land and buildings) 
of their investment from the taxable profits arising dur ing the year in which the investment is made.   
 
7. Amount of subsidy
 
  2005 Lm 1,074,496.00.    2006 This information is not yet available si nce it may only be obtained from the statutory 
income tax return submitted by the ente rprise.  Enterprises are bound to submit the 
income tax return for a particular year by October of the following year.  In terms of 
Regulation 20 of the Business Pr omotion Regulations (Subsidiary 
Legislation 325.06), there is a further thr ee month period to forward a copy of the tax 
return to Malta Enterprise.   
 
8. Duration of subsidy
 
  No fixed duration.    9. Trade effects of the subsidy
 
 
 No effects on international trade.    G/SCM/N/155/EEC/Add.18 
 Page 9 
 
 
  VI. REINVESTMENT TAX CREDITS 
1. Title of the subsidy  
  Reinvestment Tax Credits.    
2. Period covered by the notification
 
  Years 2005 - 2006.    3. Policy objective
 
 
Micro enterprises that re-invest profits derive d from their trade or business in an approved 
project shall be entitled to a tax credit.  The schem e shall apply to profits earned during the year 2005 
and subsequent years up to 2007, provided the approved  project shall be completed within three years.   
 
The projects are expected to improve the effici ency and effectiveness of the business.  This 
may include the setting up of a new activity, of a ch ange in the product, or the production process.   
 4. Authority of subsidy
 
  Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta).   
 
5. Form of subsidy
 
  Fiscal – Tax Credit.    
6. To whom and how the subsidy is paid
 
  Qualifying enterprises under the Business Prom otion Act (Chapter 325 of  the Laws of Malta) 
that set aside profits for reinvestment in capital equi pment would be eligible to a tax credit equivalent 
to 35 per cent of the investment.  The tax credit ma y be deducted from the tax arising during the year 
in which the investment is made.   
 
7. Amount of subsidy
 
  2005 – 2006:  there were no applications under this scheme.    
8. Duration of subsidy
 
  No fixed duration.   
 
9. Trade effects of the subsidy
 
 
 No effects on international trade.   
  
VII. SOFT LOANS 
1. Title of the subsidy
 
 
 Soft Loans.   G/SCM/N/155/EEC/Add.18 
Page 10  
 
  2. Period covered by the notification
 
  Years 2005 - 2006.    3. Policy objective
 
 
To stimulate capital investment and provide access to finance.   
 4. Authority of subsidy
 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta).   
 5. Form of subsidy
 
  Low-interest loan.   
 
6. To whom and how the subsidy is paid
 
  Beneficiaries from this incentive are companies engaged in the manufacturing or analogous services sectors, research and development and biotec hnology.  Under this scheme Malta Enterprise 
may finance up to 75 per cent of a company's invest ment in tangible or intangible assets through a 
loan payable over a maximum period of ten (10) years, with a two (2) year moratorium period at a 
low interest rate.    7. Amount of subsidy
 
 
 2005 Lm 312,837.00.   
 2006 Lm 66,705.00.    8. Duration of subsidy
 
  No fixed duration.   
 
9. Trade effects of the subsidy
 
  No effects on international trade.   
 
 
VIII.  LOAN INTEREST RATE SUBSIDIES 
1. Title of the subsidy
 
  Loan Interest Rate Subsidy.    
2. Period covered by the notification
 
  Years 2005 - 2006.    3. Policy objective
 
 
Under this incentive Malta Enterprise may grant a subsidy on a loan taken up by a company 
from a licensed financial institution to finance its investment in tangible or intangible assets.  To 
benefit from this subsidy companies have to be engaged in the manufacturing or analogous services 
sectors, research and devel opment and biotechnology.    G/SCM/N/155/EEC/Add.18 
 Page 11 
 
 
  4. Authority of subsidy  
  Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta).   
 5. Form of subsidy
 
 
 Interest rate subsidy.    6. To whom and how the subsidy is paid
 
 
 In terms of this incentive, Malta Enterprise may grant a subsidy on a loan taken up by a 
company from a licensed financial institution to finance its investment in tangible or intangible assets.  
To benefit from this incentive, enterprises mu st be engaged in the manufacturing or analogous 
services sectors, research and development and biotechnology.    
7. Amount of subsidy
 
  2005 Lm 483,986.00.    2006 Lm 394,503.00.    8. Duration of subsidy
 
 
 No fixed duration.    9. Trade effects of the subsidy
 
 
 No effects on international trade.   
  
IX. LOAN GUARANTEES 
1. Title of the subsidy
 
 
 Loan Guarantees.   
 2. Period covered by the notification
 
  Years 2005 - 2006.   
 
3. Policy objective
 
 
To encourage capital investments by providing guarantees to secure up to 75 per cent of the 
loans taken up by qualifying enterprises to finance the acquisition of assets.    
4. Authority of subsidy
 
  Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).   
 
5. Form of subsidy
 
 
 Loan Guarantee.   G/SCM/N/155/EEC/Add.18 
Page 12  
 
  6. To whom and how the subsidy is paid
 
  Beneficiaries from this incentive are companie s engaged in the manufacturing or analogous 
services sectors, research and development and bi otechnology.  Malta Enterprise may agree to 
guarantee up to 75 per cent of a company's loan  taken up from a licensed financial institution to 
finance an investment on tangible or intangible assets.   
 7. Amount of subsidy
 
  2005 Lm 16,685.73.   
 2006 Lm 18,150.00.   
 8. Duration of subsidy
 
  No fixed duration.    
9. Trade effects of the subsidy
 
  No effects on international trade.     X. SME LOAN GUARANTEE SCHEME 
1. Title of the subsidy
 
  SME Loan Guarantee Scheme.    
2. Period covered by the notification
 
  Years 2005 - 2006.    3. Policy objective
 
 
 This scheme provides assistance to SME's with  the issue of a Loan Guarantee for up to 
50 per cent of the bank loans required to purchase assets.   4. Authority of subsidy
 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta).   
 5. Form of subsidy
 
  Loan Guarantee.    
6. To whom and how the subsidy is paid
 
  SMEs may benefit from a Loan Guarantee of up to 50 per cent of a loan required to finance capital expenditure.  The Loan Guarantees will be i ssued for a maximum of 10 years, never exceeding 
Lm 150,000 but usually up to Lm 50,000.  These Loan Guarantees benefit from a counter-guarantee 
issued by the European Investment Fund unde r the European Community's Multiannual Programme 
for Enterprise and Entrepreneurship.    G/SCM/N/155/EEC/Add.18 
 Page 13 
 
 
  7. Amount of subsidy  
  2005 Lm 20,100.00.    2006 Lm 42,436.80.    
8. Duration of subsidy
 
  No fixed duration.    9. Trade effects of the subsidy
 
 
 No effects on international trade.     
XI. INDUSTRY IN GOZO 
1. Title of the subsidy
 
  Industry In Gozo (Gozo Transport Costs Grants).    2. Period covered by the notification
 
 
 Years 2005 - 2006.   
 3. Policy objective
 
  The aim of this aid is to offset the additiona l transport costs incurred  by enterprises based in 
Gozo due to double insularity.   
 4. Authority of subsidy
 
  Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta).   
 
5. Form of subsidy
 
  Grant.    6. To whom and how the subsidy is paid
 
 
 The beneficiaries under this incentive are enterprises engaged in the manufacturing or analogous services sector operating from Gozo.  A gran t is awarded to such enterprises to cover the 
actual, additional and necessary transport costs incu rred by the enterprise in transporting plant, 
machinery, equipment, materials and fini shed goods between Malta and Gozo.   
 
7. Amount of subsidy
 
  2005 Lm 130,605.09.   
 2006 Information is still being compiled a nd will be available later on in 2007.   
 
8. Duration of subsidy
 
  No fixed duration.   G/SCM/N/155/EEC/Add.18 
Page 14  
 
  9. Trade effects of the subsidy
 
  No effects on international trade.     XII. SME COMPLIANCE SCHEME 
1. Title of the subsidy
 
  SME Compliance Scheme.    
2. Period covered by the notification
 
  Years 2005 - 2006.    3. Policy objective
 
 
 The aim of this scheme is to provide assistance to SMEs in the manufacturing sector to comply with the directives under the Acquis Communautaire  and thus increase competitiveness of the 
processing sector.    4. Authority of subsidy
 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta).   
 5. Form of subsidy
 
 
 Grant.   
 6. To whom and how the subsidy is paid
 
  The beneficiaries under this scheme are SMEs  engaged in the manufacturing sector.  The 
scheme has been organised in four competitive call sequences and applications were evaluated at the 
end of each call on the basis of the relevance of the measures outlined by the applicants in their 
application.  Successful applications were approve d a grant of up to Lm 2,500 representing up to 
60 per cent of the applicants pr ojected investment.  Grants we re effectively disbursed upon 
presentation of a number of documents including proof of payment.    
7. Amount of subsidy
 
  2005 Lm 38,504.00.   
 2006 No aid was awarded under this scheme by Malta Enterprise after 2005.   
 8. Duration of subsidy
 
 
 Closed on the 30th November 2004.   
 9. Trade effects of the subsidy
 
 
 No effects on international trade.    G/SCM/N/155/EEC/Add.18 
 Page 15 
 
 
  XIII.  SME FOOD PROCESSING SCHEME 
 
1. Title of the subsidy  
  SME Food Processing Scheme.   
 
2. Period covered by the notification
 
  Years 2005 - 2006.    
3. Policy objective
 
  The aim of this scheme is to provide assist ance to SMEs in the food processing sector to 
upgrade their operations and achieve the standards required in food safety.   
 
4. Authority of subsidy
 
  Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta).   
 5. Form of subsidy
 
 
 Grant.   
 6. To whom and how the subsidy is paid
 
  The beneficiaries under this scheme are SMEs engaged in the food processing and 
manufacturing sector.  The scheme has been orga nised in four competitive call sequences and 
applications were evaluated at the end of each cal l on the basis of the relevance of the measures 
outlined by the applicants in thei r application.  Successful applicati ons were approved a grant of up to 
Lm 5,000 representing up to 60 per cent of the a pplicants projected investment.  Grants were 
effectively disbursed upon presentation of a number of documents, including proof of payment.   
 
7. Amount of subsidy
 
  2005 Lm 92,850.00.    2006 No aid was awarded under this scheme by Malta Enterprise after 2005.    
8. Duration of subsidy
 
  Closed on the 30
th November 2004.   
 9. Trade effects of the subsidy
 
 
 No effects on international trade.   
  
XIV.  STRENGTHENING MARKET ENTRY AND INTERNATIONALISATION 
1. Title of the subsidy
 
 
 Strengthening Market Entry and Internationalisa tion (Trade Fair and Trade Mission Support).   G/SCM/N/155/EEC/Add.18 
Page 16  
 
  2. Period covered by the notification
 
  Years 2005 - 2006.    3. Policy objective
 
 
 This scheme provides assistance to enterprises to diversify and penetrate new markets, establish business contacts and consolidate the existing market share.    4. Authority of subsidy
 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta).   
 5. Form of subsidy
 
 
 Grant.   
 6. To whom and how the subsidy is paid
 
  The aid is of a horizontal nature.  It is provi ded to all sectors of the industry, especially those 
which demonstrate an international growth potentia l in line with local capacity and resources.   
 
7. Amount of subsidy
 
  2005 Lm 7,609.80.    2006 Lm 31,683.40 - Trade Fair Support.   
 2006 Lm 1,000.00 - Trade Mission Support.   
 8. Duration of subsidy
 
  The scheme will run till the 31
st December 2009.   
 
9. Trade effects of the subsidy  
  No effects on international trade.     XV. TRAINING ASSISTANCE  
1. Title of the subsidy
 
  Training Assistance.    2. Period covered by the notification
 
 
 Years 2005 - 2006.    3. Policy objective
 
 
 The objectives of this scheme is the improvement of workers' skills.    G/SCM/N/155/EEC/Add.18 
 Page 17 
 
 
  4. Authority of subsidy  
  Employment and Training Corporation – Employment and Training Services Act (Chapter 343 of the Laws of Malta).   
 
5. Form of subsidy
 
  Grant.    6. To whom and how the subsidy is paid
 
 
 Beneficiaries from this incentive are enterpri ses engaged in the manufacturing or analogous 
services sectors, research and development and biot echnology.  In this case, Malta Enterprise 
confirms to the Employment and Training Corpor ation (ETC) the eligibility or otherwise of the 
applicant and confirms whether the said enterprise is  large, small or medium-sized.  ETC will approve 
a grant in favour of the enterprise depending on it s size and on whether the training provided is 
general or specific.  The grant is calculated on the basis of eligible costs (specified in the law) 
incurred by the company in providing training to its employees.    7. Amount of subsidy
 
 
 2005 Lm 65,870.44.   
 2006 Lm 135,350.23.    8. Duration of subsidy
 
 
 Indefinite.   
 9. Trade effects of the subsidy
 
  No effects on international trade.    
 
XVI.  EUREKA PROGRAMME 
1. Title of subsidy
 
  EUREKA Programme.   
 
2. Period
 
  Year 2006 - Malta became a full member of EUREKA as from 8 June 2006.    3. Policy objective
 
 
EUREKA is a pan-European network for market-oriented collaborative research and 
development which brings together  industry and research institutes from over thirty five countries and 
the European Union.  It aims primarily to stimul ate the research efforts of enterprises and to develop 
their innovation capacity.  It assists enterprises in  unifying their resources and to collaborate with 
research institutes for the development of advanced  technologies and market oriented products.   
 4. Authority of subsidy
 
  Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).   G/SCM/N/155/EEC/Add.18 
Page 18  
 
  5. Form of subsidy
 
  Grant.    6. To whom and how the subsidy is paid
 
 
 The aid is provided to all sectors of the indus try related to advanced technology development, 
mainly to innovative enterprises.  The latter must de monstrate that the research project will lead to the 
development of innovative products, processes a nd services based on such advanced technologies 
with a world-wide market potential.    7. Amount of subsidy
 
 
 2005 Malta became a full member of EURE KA as from 8 June 2006.  Consequently, the 
EUREKA Programme started to be im plemented as from 8 June 2006.   
 2006 Lm 169,756.00.    
8. Duration of subsidy
 
  The scheme will run till the 31
st December 2010.   
 9. Trade effects of the subsidy
 
 
 No effects on international trade.   
  
XVII.  INNOVATIVE START UP SCHEME 
1. Title of the subsidy
 
 
 Innovative Start Up Scheme.    2. Period covered by the notification
 
  Years 2005 - 2006.   
 
3. Policy objective
 
  The START scheme assists innovative SMEs in all sectors during their first two years of operation mainly to undertake Research and Deve lopment and encourage innovation.  The global 
objectives of the Programme are to make it easier  for start-ups to open up markets for promising 
products and services, therefore, offering start up fina ncing and project accompanying consultation.   
 4. Authority of subsidy
 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta).   
 5. Form of subsidy
 
  Grant.    
6. To whom and how the subsidy is paid
 
  SMEs are awarded grants in support of training and capacity building.    G/SCM/N/155/EEC/Add.18 
 Page 19 
 
 
  7. Amount of subsidy  
  2005 Lm 356.00.    2006 Lm 33,434.00.    
8. Duration of subsidy
 
  The scheme will run till the 30
th June 2008.   
 9. Trade effects of the subsidy
 
 
 No effects on international trade.     
XVIII.  AGRICULTURAL CO-FINANCED SUBSIDIES 
A. S
PECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE (SMPPMA)  – AID 
IN THE TOMATOES FOR PROCESSING SECTOR  
1. Title of Subsidy  
  Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Tomatoes for Processing Sector.   
 
2. Period covered by the notification
 
 
Years 2005 - 2006.   
 
3. Policy objectives  
  Income supplements to producers plus mark eting aid to compensate the loss of revenue 
deriving from Maltese processed tomato products resu lting from the fall of prices after accession, due 
to the dismantling of import levies on agricultural products in the crops sector (vide Accession Treaty 
Annex XI/en p3271 et. seq.).   
 
4. Authority of subsidy
 
  Ministry for Rural Affairs and the Environment.    
5. Form of subsidy
 
  Fiscal.    6. To whom and how the subsidy is paid
 
 
 Producers of tomatoes production for processing.  Income supplement provided directly to 
producers.    7. Amount of subsidy
 
 
 2005 Lm 580,000.   
 2006 Data still being compiled.   G/SCM/N/155/EEC/Add.18 
Page 20  
 
  8. Duration of subsidy
 
  2014.    9. Trade effects of the subsidy
 
 
 No effects on international trade.    B. S
PECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE (SMPPMA)  – AID 
IN THE FRESH FRUIT SECTOR  
1. Title of Subsidy  
  Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Fresh Fruit Sector.    
2. Period covered by the notification
 
 
Years 2005 - 2006.   
 3. Policy objectives
 
 
 Income supplements to compensate the loss of revenue of Maltese fruit producers resulting 
from the fall of local prices after accession, due  to the dismantling of import levies on fruit (vide 
Accession Treaty Annex XI/en p3271 et. seq.).    4. Authority of subsidy
 
 
 Ministry for Rural Affairs and the Environment.    5. Form of subsidy
 
  Fiscal.   
 
6. To whom and how the subsidy is paid
 
  Producers of fresh fruit.  Income supplement provided directly to producers.    
7. Amount of subsidy
 
  2005 Lm 460,000.    2006 Data still being compiled.    8. Duration of subsidy
 
 
 2014.    9. Trade effects of the subsidy
 
 
 No effects on international trade.   
  G/SCM/N/155/EEC/Add.18 
 Page 21 
 
 
  C. SPECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE (SMPPMA)  – AID 
IN THE FRESH VEGETABLES SECTOR  
1. Title of Subsidy  
  Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Fresh 
Vegetables Sector.   
 2. Period covered by the notification
 
 
Years 2005 - 2006.   
 
3. Policy objectives  
  Income support to compensate the loss of re venue of Maltese vegetable producers resulting 
from the fall of local prices after accession, due  to the dismantling of import levies on fresh 
vegetables (vide Accession Treaty Annex XI/en p3271 et. seq.).   
 4. Authority of subsidy
 
  Ministry for Rural Affairs and the Environment.    
5. Form of subsidy
 
  Fiscal.    6. To whom and how the subsidy is paid
 
 
 Producers of fresh vegetables.  Income supplement provided directly to producers.    7. Amount of subsidy
 
  2005 Lm 230,000.   
 2006 Data still being compiled.   
 8. Duration of subsidy
 
  2014.   
 
9. Trade effects of the subsidy
 
  No effects on international trade.   
 
D. SPECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE (SMPPMA)  – AID 
IN THE WINE SECTOR  
1. Title of Subsidy  
  Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Wine Sector.    
2. Period covered by the notification
 
 
Years 2005 - 2006.   G/SCM/N/155/EEC/Add.18 
Page 22  
 
  3. Policy objectives
 
  Subsidies to compensate the loss of revenue of Maltese wine producers resulting from the fall 
of local prices after accession, due to the disman tling of import levies on wine (vide Accession Treaty 
Annex XI/en p3271 et. seq.).   
 
4. Authority of subsidy
 
  Ministry for Rural Affairs and the Environment.    
5. Form of subsidy
 
  Fiscal.    6. To whom and how the subsidy is paid
 
 
 Producers of grapes for wine.  Aid goes directly to producers.    7. Amount of subsidy
 
  2005 Lm 570,000.   
 2006 Data still being compiled.   
 8. Duration of subsidy
 
  2014.   
 
9. Trade effects of the subsidy
 
  No effects on international trade.   
 
E. SPECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE (SMPPMA)  – AID 
IN THE PIG HUSBANDRY SECTOR  
1. Title of Subsidy  
  Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Pig Husbandry Sector.    
2. Period covered by the notification
 
 
Years 2005 - 2006.   
 3. Policy objectives
 
 
 Subsidies to compensate the loss of revenue of Maltese pigbreeders resulting from the fall of local prices after accession, due to the dismantling of import levies on fresh and processed pigmeat (vide Accession Treaty Annex XI/en p3271 et. seq.).    4. Authority of subsidy
 
 
 Ministry for Rural Affairs and the Environment.     G/SCM/N/155/EEC/Add.18 
 Page 23 
 
 
  5. Form of subsidy  
  Fiscal.     6. To whom and how the subsidy is paid
 
 
 Aid paid to pig husbandry.  Assistance provided directly to producers.    7. Amount of subsidy
 
 
 2005 Lm 1,280,000.   
 2006 Data still being compiled.    8. Duration of subsidy
 
 
 2010.   
 9. Trade effects of the subsidy
 
  No effects on international trade.    
F. S
PECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE (SMPPMA)  – AID 
IN THE DAIRY SECTOR  
1. Title of Subsidy  
  Special Marketing Policy Programme for Maltese  Agriculture (SMPPMA) – Aid in the Dairy 
Sector.   
 2. Period covered by the notification
 
 
Years 2005 - 2006.   
 
3. Policy objectives  
  Subsidies to compensate the loss of revenue of Maltese milk producers resulting from increased competition after accession, due to the dismantling of import levies on milk and milk products (vide Accession Treaty Annex XI/en p3271 et. seq.).   
 
4. Authority of subsidy
 
  Ministry for Rural Affairs and the Environment.    5. Form of subsidy
 
 
 Fiscal.    6. To whom and how the subsidy is paid
 
 
 Dairy sector producers.  Aid provided directly to producers.   G/SCM/N/155/EEC/Add.18 
Page 24  
 
  7. Amount of subsidy
 
  2005 Lm 520,000.    2006 Data still being compiled.    
8. Duration of subsidy
 
  2010.    9. Trade effects of the subsidy
 
 
 No effects on international trade.   
 
G. SPECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE (SMPPMA)  – AID 
IN THE EGG PRODUCTION SECTOR  
1. Title of Subsidy  
 
 Special Marketing Policy Programme for Malt ese Agriculture (SMPPMA) – Aid in the Egg 
Production Sector.    2. Period covered by the notification
 
 
Years 2005 - 2006.   
 3. Policy objectives
 
  Subsidies to compensate the loss of revenue of Maltese egg producers resulting from the fall 
of local prices after accession, due to the dismantling of import levies on eggs (vide Accession Treaty 
Annex XI/en p3271 et. seq.).    4. Authority of subsidy
 
  Ministry for Rural Affairs and the Environment.   
 
5. Form of subsidy
 
  Fiscal.    
6. To whom and how the subsidy is paid
 
  Egg production sector.  Aid provid ed directly to producers.   
 7. Amount of subsidy
 
 
 2005 Lm 540,000.    2006 Data still being compiled.    8. Duration of subsidy
 
 
 2010.    G/SCM/N/155/EEC/Add.18 
 Page 25 
 
 
  9. Trade effects of the subsidy  
  No effects on international trade.   
 
H. SPECIAL MARKETING POLICY PROGRAMME FOR MALTESE AGRICULTURE (SMPPMA)  – AID 
IN THE POULTRY MEAT SECTOR  
1. Title of Subsidy  
  Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Poultrymeat Sector.    
2. Period covered by the notification
 
 
Years 2005 - 2006.   
 3. Policy objectives
 
 
 Subsidies to compensate the loss of revenue of Maltese broiler producers resulting from the fall of local prices after accession, due to the dismantling of import levies on fresh and processed poultrymeat (vide Accession Treaty Annex XI/en p3271 et. seq.).    4. Authority of subsidy
 
 
 Ministry for Rural Affairs and the Environment.    5. Form of subsidy
 
 
 Fiscal.   
 6. To whom and how the subsidy is paid
 
  Producers in the poultrymeat sector.  Aid provided directly to producers.   
 
7. Amount of subsidy
 
  2005 Lm 250,000.    2006 Data still being compiled.    
8. Duration of subsidy
 
  2010.    9. Trade effects of the subsidy
 
 
 No effects on international trade.    G/SCM/N/155/EEC/Add.18 
Page 26  
 
  XIX.  AGRICULTURAL NATIONALLY FULL-FINANCED AID 
 
A. S
PECIAL AID PROGRAMME FOR POTATO PRODUCERS  
1. Title of Subsidy  
 
 Special Aid Programme for Potato Producers.   
 2. Period covered by the notification
 
 
Years 2005 - 2006.   
 
3. Policy objectives  
  Aid to further encourage potato production in Malta and to compensate the loss of revenue of 
potato producers resulting from the fall of local pr ices after accession, due to the dismantling of 
import levies on agricultural products in the crop sector.   
 4. Authority of subsidy
 
  Ministry for Rural Affairs and the Environment.    
5. Form of subsidy
 
  Fiscal.    6. To whom and how the subsidy is paid
 
 
 Potato producers.  Aid provided directly to producers.    7. Amount of subsidy
 
  2005 Lm 320,000.   
 2006 Data still being compiled.   
 8. Duration of subsidy
 
 
Until 2014.   
 
9. Trade effects of the subsidy  
  No effects on international trade.   
 
B. STATE AID FOR THE TRANSPORT OF PRODUCE FROM GOZO 
1. Title of Subsidy  
  Neutralisation of Additional Costs for the Tr ansportation of Gozitan Agriculture produce to 
Malta.    2. Period covered by the notification
 
 
Years 2005 - 2006.   
  G/SCM/N/155/EEC/Add.18 
 Page 27 
 
 
  3. Policy objectives  
  Ferry transport costs reimbursement to neutrali se the additional cost for the transportation of 
Gozitan Agriculture and Fisheries produce to Malta.    
4. Authority of subsidy
 
  Ministry for Rural Affairs and the Environment.    5. Form of subsidy
 
 
 Fiscal.    6. To whom and how the subsidy is paid
 
 
Re-imbursement of costs is provided to benefi ciaries making use of transport to Malta.   
 7. Amount of subsidy
 
  2005 Lm 15,000.    2006 Data still being compiled.   
 
8. Duration of subsidy
 
 
2008.   
 
9. Trade effects of the subsidy  
  No effects on international trade.   
 
C. CONTRIBUTION TOWARDS MARKETING EXPENSES TO AGRICULTURAL CO-OPERATIVES  
1. Title of Subsidy  
 
 Contribution towards Marketing expen ses to Agricultural Co-operatives.   
 2. Period covered by the notification
 
 
Years 2005 - 2006.   
 
3. Policy objectives  
  Assistance to Co-operatives related to Agriculture and Fisheries.   
 
4. Authority of subsidy
 
  Ministry for Rural Affairs and the Environment.    5. Form of subsidy
 
 
 Fiscal.   G/SCM/N/155/EEC/Add.18 
Page 28  
 
  6. To whom and how the subsidy is paid
 
  Assistance provided to cooperatives.  Ai d provided directly to these entities.   
 7. Amount of subsidy
 
 
 2005 Lm292,000.    2006 Data still being compiled.    8. Duration of subsidy
 
 
 No fixed duration.    9. Trade effects of the subsidy
 
 
 No effects on international trade.   
 
 
XX. AGRICULTURAL TEMPORARY STATE AID  
A. TEMPORARY STATE AID FOR THE IMPORTATION OF TOMATO PRODUCTS  
1. Title of Subsidy  
  Temporary State Aid for the importation of Tomato Products.   
 
2. Period covered by the notification
 
 
Years 2005 - 2006.   
 
3. Policy objectives  
  The aim of the scheme is primarily to mitigate the effects of the termination of duty-free importation of food products from third countries w ith the adoption of the Common External Tariff 
and the removal of the export refunds on food products hitherto imported from EU countries 
following Malta's accession to the EU.   
 
4. Authority of subsidy
 
  Ministry for Rural Affairs and the Environment.    
5. Form of subsidy
 
  Fiscal.    6. To whom and how the subsidy is paid
 
 
 Assistance provided for in the EC Treaty and paid directly to traditional importation of 
tomato products.     G/SCM/N/155/EEC/Add.18 
 Page 29 
 
 
  7. Amount of subsidy  
  2005 Lm 380,000.   
2006 Data still being compiled.   
 
8. Duration of subsidy
 
  2010.    9. Trade effects of the subsidy
 
 
 No effects on international trade.   
 
B. TEMPORARY STATE AID FOR THE IMPORTATION OF DAIRY PRODUCTS  
1. Title of Subsidy  
 
 Temporary State Aid for the importation of Dairy products.   
 2. Period covered by the notification
 
 
Years 2005 - 2006.   
 
3. Policy objectives  
  The aim is primarily to mitigate the effects of the termination of duty-free importation of food 
products from third countries with the adoption of th e Common External Tariff and the removal of the 
export refunds on food products hitherto importe d from EU countries following Malta's accession to 
the EU.   
 4. Authority of subsidy
 
  Ministry for Rural Affairs and the Environment.    
5. Form of subsidy
 
  Fiscal.    6. To whom and how the subsidy is paid
 
 
 Assistance provided for in the EC Treaty and paid  directly to traditional importation of dairy 
products.    7. Amount of subsidy
 
 
 2005 Lm 384,000.    2006 Data still being compiled.    8. Duration of subsidy
 
 
2010.   G/SCM/N/155/EEC/Add.18 
Page 30  
 
  9. Trade effects of the subsidy
 
  No effects on international trade.   
 
C. TEMPORARY STATE AID FOR THE IMPORTATION OF MEAT PRODUCTS  
1. Title of Subsidy  
 
 Temporary State Aid for the importation of Meat products.    2. Period covered by the notification
 
 
Years 2005 - 2006.   
 3. Policy objectives
 
  The aim is primarily to mitigate the effects of the termination of duty-free importation of food 
products from third countries with the adoption of th e Common External Tariff and the removal of the 
export refunds on food products hitherto importe d from EU countries following Malta's accession to 
the EU.    4. Authority of subsidy
 
 
 Ministry for Rural Affairs and the Environment.   
 5. Form of subsidy
 
  Fiscal.   
 
6. To whom and how the subsidy is paid
 
  Assistance provided for in the EC Treaty and paid directly to traditional importation of meat products.    
7. Amount of subsidy
 
  2005 Lm 196,000.   
2006 Data still being compiled.   
 
8. Duration of subsidy
 
 
2010.   
 9. Trade effects of the subsidy
 
 
 No effects on international trade.    D. T
EMPORARY STATE AID FOR THE IMPORTATION OF CEREAL PRODUCTS  
1. Title of Subsidy  
 
 Temporary State Aid for the importation of cereal products.    G/SCM/N/155/EEC/Add.18 
 Page 31 
 
 
  2. Period covered by the notification  
 
Years 2005 - 2006.   
 3. Policy objectives
 
 
 The aim is primarily to mitigate the effects of the termination of duty-free importation of food 
products from third countries with the adoption of th e Common External Tariff and the removal of the 
export refunds on food products hitherto importe d from EU countries following Malta's accession to 
the EU.   
 
4. Authority of subsidy  
  Ministry for Rural Affairs and the Environment.    
5. Form of subsidy
 
  Fiscal.    6. To whom and how the subsidy is paid
 
 
 Assistance provided for in the EC Treaty and paid  directly to traditional importation of cereal 
products.    7. Amount of subsidy
 
 
 2005 Lm 1,050,000.   
2006 Data still being compiled.   
 8. Duration of subsidy
 
 
2010.   
 
9. Trade effects of the subsidy  
  No effects on international trade.   
 
E. SPECIAL TEMPORARY STATE AID ON SUGAR IMPORTS  
1. Title of Subsidy  
  Special Temporary State Aid on Sugar imports.    2. Period covered by the notification
 
 
Years 2005 - 2006.   
 3. Policy objectives
 
  The aim of the scheme is primarily to mitigate the effects of the termination of duty-free 
importation of food products from third countries w ith the adoption of the Common External Tariff 
and the removal of the export refunds on food products hitherto imported from EU countries 
following Malta's accession to the EU.   G/SCM/N/155/EEC/Add.18 
Page 32  
 
  4. Authority of subsidy
 
  Ministry for Rural Affairs and the Environment.    5. Form of subsidy
 
 
 Fiscal.    6. To whom and how the subsidy is paid
 
 
 Paid directly to traditional importation of sugar.   
 7. Amount of subsidy
 
  2005 Lm 1,860,000.   
 2006 Data still being compiled.   
 8. Duration of subsidy
 
 
2010.   
 
9. Trade effects of the subsidy  
  No effects on international trade.    F. A
GRICULTURE INSURANCE PREMIUM (SUBSIDY ) SCHEME  
1. Title of Subsidy  
  Agriculture Insurance Premium (Subsidy) Scheme.    2. Period covered by the notification
 
 
Years 2005 - 2006.   
 3. Policy objectives
 
  The objective is to encourage farmers to  obtain insurance cover against exceptional 
occurrences, natural disasters and adverse weather conditions assimilated to natural disasters.   
 4. Authority of subsidy
 
  Ministry for Rural Affairs and the Environment.    
5. Form of subsidy
 
  Fiscal.    6. To whom and how the subsidy is paid
 
 
 Paid directly to farmers on insurance premiums.     G/SCM/N/155/EEC/Add.18 
 Page 33 
 
 
  7. Amount of subsidy  
  2005 Lm 0.   
2006 Data still being compiled.   
 
8. Duration of subsidy
 
  31 October 2012.    9. Trade effects of the subsidy
 
 
 No effects on international trade.      
__________