WORLD TRADE  
ORGANIZATION  G/SCM/Q2/ARG/27 
6 August 2008 
 (08-3736) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Questions from the UNITED STATES Regarding the  
New and Full Notification of ARGENTINA1 
 
  The following communication, dated 5 August 2008, is being circulated at the request of the Delegation of the United States.    
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Investment Promotion Law Scheme for Capital Goods 
 
 We understand that the Investment Prom otion Law scheme for capital goods provides 
benefits from accelerated depreciation and advance re fund of value-added tax, "except in investment 
projects producing exclusively for the export market".    
Question 1 
  Please explain why this programme was not  notified pursuant to Article 25.   
 
Question 2  
 
 Please explain why this programme is not incons istent with the provisions under Article 3 of 
the Subsidies Agreement.    Special Regime for Turnkey Exports  
 We understand that exports of complete indus trial plants or engineering works under the 
special regime receive a certain amount of additional drawback if, inter alia , the domestic component 
is not less than 60 per cent of the contractual f.o.b. value.   
 
Question 3  
 
 Please explain why this special regime was not notified pursuant to Article 25.   
 
Question 4  
 
 Please explain why this programme is not incons istent with the provisions under Article 3 of 
the Subsidies Agreement?   
 
                                                     
 
1 G/SCM/N/155/ARG. G/SCM/Q2/ARG/27 
Page 2  
 
  Import Regime for Used Production Lines 
 
 We understand that benefits under the Im port Regime for Used Production Lines are 
"conditional on the purchase of dom estic products".  Firms must purchase new goods of domestic 
origin amounting to 30 per cent of the investment, in  order to receive the duty exemptions under this 
programme.   
 
Question 5  
 
 Please explain why this regime was not notifie d under Article 25 of the SCM Agreement.   
 
Question 6  
 
 Please explain how this programme is not incons istent with the provisions under Article 3 of 
the Subsidies Agreement.   
 
Imports of Goods Forming Part of Large-Scale Investment Projects 
 
 Under the Large-Scale Investment Projects program, tariff reductions are available if a firm 
purchases goods of domestic origin amounting to at least 30 per cent of the investment project.   
 Question 7  
 
 Please explain why this programme was not notif ied under Article 25 of the SCM Agreement.   
 
Question 8  
 
 Please explain why this programme is not incons istent with the provisions under Article 3 of 
the Subsidies Agreement?   
 
Framework Agreements on the Financing of Shipbuilding 
  We understand that Argentina established a frame work for the financing of the shipbuilding 
industry, under which agreements were signed in  2006 to provide ARG$149 million in subsidies for 
projects worth ARG$430 million.    
Question 9  
 
 Please explain why these subsidies were notified under Article 25 of the SCM Agreement.   
 
Question 10  
 
 Please describe the nature and scope of the assi stance being provided under this programme.   
 Cash Refund for Local Auto Parts  
 We understand that Argentina established an in centive regime to improve the competitiveness 
of local auto parts, which provides benefits in th e form of a cash refund on the value of purchases of 
local auto parts, i.e., those with a non-local content of not more than 30 per cent.    G/SCM/Q2/ARG/27 
 Page 3 
 
 
  Question 11 
 
 Please explain why these refunds were not notifie d under Article 25 of the SCM Agreement.   
 
Question 12  
 
 Please explain why this programme is not incons istent with the provisions under Article 3 of 
the Subsidies Agreement?       
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