WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/HRV 
8 June 2011 
 (11-2816) 
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 
 
CROATIA 
 
 
 The following communication, dated 6 June 2011, is being circulated at the request of the 
Delegation of Croatia.   
 
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 The Permanent Mission of the Republic of Croatia has the honour to submit the following 
New and Full notification pursuant to Article XVI: 1 of the General Agreement on Tariffs and Trade 
1994 and Article 25.1 of the Agre ement on Subsidies and Countervailing measures to the Committee 
on Subsidies and Countervailing Measures. 
 
 The notification covers year 2009 and has been drawn up on the basis of the data supplied by 
the institutions in charge of the state aid. The am ount of aid is shown in Croatian Kunas (HRK). The 
notification covers the programmes in the followi ng categories: transport, shipbuilding industry, 
tourism, textile, clothing and leather-footwear i ndustry. In 2009 state aid programs related to the 
motor vehicle parts industry were not awarded. Regional aid in term s of the application of a number 
of acts promoting cohesion in the regional devel opment (the Act on the Areas of Special State 
Concern, the Act on Reconstruction and Developmen t of the Town of Vukovar, etc.) in 2009 is 
classified in the group of de minimis aid, since tax advantages on profit tax are established in 
accordance with the rules on de minimis aid.  
  The information provided in this report is for transparency purpose and does not in any way 
prejudge the legal nature of government assistance programmes.  
 
I. TRANSPORT 
1. Title of the programme 
Promotion of intermodal transport a nd modernisation of rail transport. 
 
2. Period covered by notification 
2009. G/SCM/N/220/HRV 
Page 2 
 
 
  3. Policy objective and/or purpose of the subsidy 
Promotion of intermodal transport. 
 4. Background authority for the programme 
Ministry of the Sea, Transport and Infrastructure. 
 
5. Legal basis 
Croatian Railways Act (OG 59/94, 126/98), National railway infrastructure programme 
2008-2012. 
 
6. Form of the assistance granted 
Grants 
 
7. To whom and how the subsidy is provided 
Croatian Railways Holding (Passengers, Cargo, Infrastructure, Toll). 
 
8. Subsidy per unit or the total annual amount budget for subsidy 
 Total amount in HRK:  414,000,000.00  
 
9. Duration of the subsidy 
2008-2012. 
 
10. Statistical data permitting an assessment of the trade effects on the subsidy 
Not available. 
 
II. TRANSPORT 
1. Title of the programme 
Promotion of intermodal transport and modernisation of rail transport.   
  
2. Period covered by notification 
2009. 
 
3. Policy objective and/or purpose of the subsidy 
Modernisation of rail transport. 
 
4. Background authority for the programme 
Ministry of the Sea, Transport and Infrastructure. 
  G/SCM/N/220/HRV 
 Page 3 
 
 
  5. Legal basis 
Croatian Railways Act (OG 59/94, 126/98), National railway infrastructure programme 
2008-2012. 
 
6. Form of the assistance granted 
Grants. 
 
7. To whom and how the subsidy is provided 
Croatian Railways Holding (Passengers, Cargo, Infrastructure, Toll). 
 
8. Subsidy per unit or the total annual amount budget for subsidy 
 Total amount in HRK: 295,500,000.00 
 
9. Duration of the subsidy 
2008-2012. 
 
10. Statistical data permitting an assessment of the trade effects on the subsidy 
Not available. 
 
III. TRANSPORT 
1. Title of the programme 
 Renewal of Jadrolinija's passenger fleet. 
 2. Period covered by notification 
2009. 
 
3. Policy objective and/or purpose of the subsidy 
Maritime transport, service of  general economic interest. 
 
4. Background authority for the programme 
Ministry of the Sea, Transport and Infrastructure. 
 
5. Legal basis 
The Islands Act (OG 34/99, 32/02), Decision of th e Government of the Republic of Croatia of 
9 January 2003. 
  
6. Form of the assistance granted 
Grants   
Guarantees 
 G/SCM/N/220/HRV 
Page 4 
 
 
  7. To whom and how the subsidy is provided 
 Jadrolinija d.o.o. 
 8. Subsidy per unit or the total annual amount budget for subsidy 
Total amount in HRK:  
Grants:  20,000,000.00 
Guarantees:  7,358,026.29 
 9. Duration of the subsidy 
2009. 
 10. Statistical data permitting an assessment of the trade effects on the subsidy 
Not available. 
 
IV. SHIPBUILDING 
1. Title of the programme 
Ordinance on subsidies to shipbuilding. 
 
2. Period covered by notification 
2009. 
 
3. Policy objective and/or purpose of the subsidy 
Shipbuilding restructuring. 
 
4. Background authority for the programme 
Ministry of the Economy, Labour and Entrepreneurship. 
 
5. Legal basis 
Analysis of the current state of the shipbuilding industry in Croatia with proposals of 
measures, Government decision from 22 August 2002. 
 6. Form of the assistance granted 
Grants. 
 7. To whom and how the subsidy is provided 
Shipyards. 
 8. Subsidy per unit or the total annual amount budget for subsidy 
Total amount in HRK:  283,100,000.00 
  G/SCM/N/220/HRV 
 Page 5 
 
 
  9. Duration of the subsidy 
 Not available. 
 10. Statistical data permitting an assessment of the trade effects on the subsidy 
Not available. 
 V. SHIPBUILDING 
1. Title of the programme 
Performance and financial guarantees. 
 
2. Period covered by notification 
2009. 
 
3. Policy objective and/or purpose of the subsidy 
Shipbuilding. 
 
4. Background authority for the programme 
Ministry of Finance. 
 
5. Legal basis 
State budget Act, Decision of the Government. 
 
6. Form of the assistance granted 
Guarantees. 
 
7. To whom and how the subsidy is provided 
Shipyards. 
 8. Subsidy per unit or the total annual amount budget for subsidy 
Total amount in HRK:  869,589,756.71 
 9. Duration of the subsidy 
 Not available. 
 10. Statistical data permitting an assessment of the trade effects on the subsidy 
Not available. 
 G/SCM/N/220/HRV 
Page 6 
 
 
  VI. TOURISM 
1. Title of the programme 
Invoked state guarantees. 
 
2. Period covered by notification 
2009. 
 
3. Policy objective and/or purpose of the subsidy 
Tourism, SME's. 
 
4. Background authority for the programme 
Ministry of Finance. 
 
5. Legal basis 
State budget Act, Decision of the Government. 
 
6. Form of the assistance granted 
Guarantees. 
 
7. To whom and how the subsidy is provided 
Various beneficiaries. 
 
8. Subsidy per unit or the total annual amount budget for subsidy 
Total amount in HRK:  93,038,543.61 
 
9. Duration of the subsidy 
Not available. 
 10. Statistical data permitting an assessment of the trade effects on the subsidy 
Not available. 
 
VII. TOURISM 
1. Title of the programme 
Programme of Loan Financing of Small a nd Medium-sized Enterprises in Tourism – 
"Incentives for Success". 
 
2. Period covered by notification 
2009. 
  G/SCM/N/220/HRV 
 Page 7 
 
 
  3. Policy objective and/or purpose of the subsidy 
Tourism, SME's. 
 4. Background authority for the programme 
Ministry of Tourism. 
 
5. Legal basis 
Act on the Promotion of the Development of Small Entrepreneurship (OG 29/02). 
 
6. Form of the assistance granted 
Interest rate subsidies. 
 
7. To whom and how the subsidy is provided 
SME's. 
 
8. Subsidy per unit or the total annual amount budget for subsidy 
Total amount in HRK:  58,516,773.58 
 
9. Duration of the subsidy 
Not available. 
 
10. Statistical data permitting an assessment of the trade effects on the subsidy 
Not available. 
 VIII.  TEXTILE AND LEATHER-F OOTWEAR INDUSTRY 
1. Title of the programme 
Amendments to Operative aid scheme for the de velopment of textile, clothing and leather-
footwear industry 2008-2015. 
 
2. Period covered by notification 
2009. 
 
3. Policy objective and/or purpose of the subsidy 
Specific sector development, remedy of a serious disturbance in the economy. 
 
4. Background authority for the programme 
Ministry of the Economy, Labour and Entrepreneurship. 
 G/SCM/N/220/HRV 
Page 8 
 
 
  5. Legal basis 
Development strategy of textile , clothing and leather-footwear industry 2008-2015;  State Aid 
Act (OG 140/05). 
 
6. Form of the assistance granted 
Grants. 
 
7. To whom and how the subsidy is provided 
Textile manufacturers. 
 
8. Subsidy per unit or the total annual amount budget for subsidy 
Total amount in HRK:  32,000,000.00 
 
9. Duration of the subsidy 
2008-2015. 
 
10. Statistical data permitting an assessment of the trade effects on the subsidy 
Not available. 
 
IX. TEXTILE AND LEATHER-F OOTWEAR INDUSTRY 
1. Title of the programme 
Amendments to Operative aid scheme for the development of textile, clothing and 
leather-footwear industry 2008-2015 (Tem porary framework - crisis measures). 
 
2. Period covered by notification 
2009. 
 
3. Policy objective and/or purpose of the subsidy 
Specific sector development, remedy of a serious disturbance in the economy. 
 
4. Background authority for the programme 
Ministry of the Economy, Labour and Entrepreneurship. 
 
5. Legal basis 
Temporary framework Development strategy of textile, clothing and leather-footwear 
industry 2008-2015;  State Aid Act (OG 140/05). 
 6. Form of the assistance granted 
Grants. 
  G/SCM/N/220/HRV 
 Page 9 
 
 
  7. To whom and how the subsidy is provided 
Textile manufacturers. 
 8. Subsidy per unit or the total annual amount budget for subsidy 
Total amount in HRK:  36,884,504.00 
 
9. Duration of the subsidy 
2009-2010. 
 
10. Statistical data permitting an assessment of the trade effects on the subsidy 
Not available. 
 
 
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