. /.   WORLD TRADE  
ORGANIZATION  G/SCM/Q2/USA/34 
20 February 2008 
 (08-0761) 
Committee on Subsidies and  
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Questions Posed by the SEPARATE CUSTOMS TERRITORY OF TAIWAN,  
PENGHU, KINMEN AND MATSU Regarding the New and Full  
Notification of the UNITED STATES1 
   The following communication, dated 15 February 2008, is being circulated at the request of 
the Delegation of the Separate Customs Territo ry of Taiwan, Penghu, Kinmen and Matsu.   
 
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  According to the Renewable Energy Resources , subsidies are granted through various 
competitive procedures.  We would be very grateful  for more information about these procedures.   
  With reference to the Alternative Fuel Production Credit , we would like to know the criteria 
determining "qualifying production".   
  As to the Fisheries Finance Programme  (FFP), it states, "Since 1991, the FFP has been 
barred by NOAA policy and Congressional directiv es from financing any project that could be 
constructed to lead to overcapitalisation of any fishery.  Because of this policy, and because any 
subsidy element that might be attributable to this programme is small or nonexistent, the trade effects 
from this programme are likely to be minima l, if any".  Except for the NOAA policy and 
Congressional directives, we would like to learn more details on the efforts made to prevent 
overcapitalisation through this progra mme.  Additionally, we also want to know what criteria and 
methods are used by the US Government to determin e whether there is overcapitalization.  Finally, we 
would like to require the rationale as to why only "m inimal" trade effect is caused due to the NOAA 
policy and any subsidy element of this programme.   
  Turning to the Emergency Steel Loan Guarantee Programme , the guaranteed loans are only 
provided to qualified steel companies in accordance  with the rules established by the Guarantee 
Board.  Therefore, it would be very apropos to specify the "rules" establis hed by the Guarantee Board 
in determining whether to c onfer benefits or not.   
 
 Concerning the Textile/Clothing Technology Corporation Programme , we notice that this 
programme does not directly benefit the producti on or exportation of particular companies or 
products.  In light of the financ ial support conferred upon particular  companies' R&D activities, we 
are wondering whether this programme may reduce th e operation costs of a subsidised company and 
whether this programme indirectly benefit this company's production or exportation.   
                                                     
 
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   With regard to the Empowerment Zones, Enterprise Communities Renewal Communities , we 
would like to know specifically what kinds of businesses are "qualified businesses", and the criteria 
and procedures determini ng the qualifications.   
 
 About the Export Credit Programmes for the Export-Import Bank of the United States , it is 
said, "All Ex-Im Bank Programmes are in full confor mity with the OECD guidelines on export credit 
practices and, concomitantly, th e Agreement on Subsidies and Countervailing Measures".  We would 
be very grateful for more details about how this  programme is conformed with OECD guidelines 
specifically (what guidelines are referred) and the SCM Agreement (Item K, Annex I).   
  Finally, in the New York Liberty Zone , income tax concessions are wage credit, tax-exempt 
bonds and bonus.  We would like to know, except for th e form of wage credit, whether these subsidies 
are also limited to qualified small businesses.  In addition, we are also concerned about the definition 
of "qualified small businesses" and the determ ination of conferring these subsidies.   
 
  
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