WORLD TRADE  
ORGANIZATION  G/SCM/N/123/ARG 
25 September 2006 
 
 (06-4559) 
Committee on Subsidies and 
Countervailing Measures Original:   Spanish 
 
 
 
SUBSIDIES 
 
New and Full Notifications Pursuant to  Article XVI.1 of the GATT 1994 and  
Article 25 of the Agreement on Subsidies and  
Countervailing Measures  
 
ARGENTINA 
  
 The following communication, dated 4 September 2006, is being circulated at the request of 
the delegation of Argentina.  
_______________ 
 
  The following is Argentina's new and full notifi cation for 2005, pursuant to Article XVI.1 of 
the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing Measures, 
corresponding to the period 1 January to 31 December 2005.   
CONTENTS 
 
Page
 
MINING......................................................................................................................... ..........................2  
FORESTRY AC TIVITY .............................................................................................................. ...........4  
FREE ZONES..................................................................................................................... .....................6  
CAPITAL GOODS, INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS 
REGIME ......................................................................................................................... .........................7  
ANNEX 1 ........................................................................................................................ ........................9  
  G/SCM/N/123/ARG 
Page 2  
 
  MINING 
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
 
 Law No. 10.273 on Tax exemptions, am ending Article 270 of the Mining Code. 
 
 Law No. 22.095 on Promotion of mining activities, regulated by Decree No. 554/81.   Law No. 24.196 on Mining investment and its Regulatory Decree No. 2.686/93.  The latter 
was amended on 7 May 2003 by Decree No. 1.089/ 03, which incorporates a number of adjustments 
reflecting the experience gained over the nine years in which the Law has been in force, one of the 
major issues being the methodology for determining the tax burden for purposes of tax stability.  The 
Decree also regulates the benefits granted un der the Law during the exploration stage. 
  Decree No. 779/95 and amendments theret o, Decree No. 216/96, Decree No. 1.343/99, 
Decree No. 349/00 and Decree No. 1.188/01 on the Value-added tax financi ng regime, amending Law 
No. 24.402.   Decree No. 1.591/93, regulating Law No. 24.228 on the Federal Mining Agreement. 
 
2. Period covered by the notification 
 
 1 January to 31 December 2005.  
3. Policy objective and/or purpose of the subsidy 
  The purpose of the legislation in question is to encourage mining activities in order to 
contribute to the country's development, ensure th e rational exploitation of mining resources, generate 
employment and diversify regional economies.  
4. Background and authority for the subsidy (including identification of the legislation 
under which it is granted) 
 
 Law No. 10.273:  Published in the Boletín Oficial  (Official Journal) of 17 November 1917 
 Law No. 22.095:  Published in the Official Journal of 1 November 1979 
 Decree No. 554/81:  Published in th e Official Journal of 31 March 1981 
 Decree No. 779/95:  Published in the Official Journal of 5 June 1995 
 Decree No. 216/96:  Published in the Official Journal of 6 March 1996 
 Decree No. 1.343/99:  Published in the Official Journal of 18 November 1999  Decree No. 349/00:  Published in the Official Journal of 3 May 2000  Decree No. 1.188/01:  Published in th e Official Journal of 24 September 2001 
 Law No. 24.196:  Published in the Official Journal of 24 May 1993  Law No. 24.402:  Published in the Official Journal of 9 December 1994 
 Decree No. 2.686/93:  Published in the Official Journal of 3 January 1994 
 Decree No. 1.089/03:  Published in the Official Journal of 9 May 2003  Decree No. 1.591/93:  Published in the Official Journal of 2 August 1993  Law No. 24.228:  Published in the Official Journal of 2 August 1993  5. Form of the subsidy (i.e., gr ant, loan, tax concession, etc.) 
 
 Law No. 10.273 (amendment to Article 270 of the Mining Code):  Tax exemptions.  G/SCM/N/123/ARG 
 Page 3 
 
 
   Law No. 22.095:  Tax concessions and exempti ons.  Special promotion:  tax concessions and 
exemptions, deferment of payment, customs exemptions.     Law No. 24.196:  Tax stability.  Tax co ncessions and exemptions. Customs exemptions. 
 
 Law No. 24.402:  Value-added tax financing regime.   
  Law No. 24.228:  Tax elimination.  
6. To whom and how the subsidy is provi ded (whether to producers, to exporters or 
others; through what mechanism; whether a fixed sum or fluctuating amount per unit; 
if the latter, how determined) 
 
 Law No. 10.273 (amendment to Article 270 of the Mining Code):  the tax exemptions relate 
to mines under concession to private individuals. 
 
 Law No. 22.095:  potential beneficiaries of  this Law are natural persons domiciled in 
Argentina and legal persons incorporated in the coun try or authorized to act within national territory 
who are engaged in the mining activities set out in Artic le 6 of the Law.  The benefits of the special 
promotion are granted to persons who apply for th em under Chapter IV of the Law.  Loans and non-
repayable contributions are granted pursuant to Articles 21, 22, 23 and 24 of the Law. 
 
 Law No. 24.196:  all natural pe rsons domiciled in Argentina and legal persons incorporated in 
the country or authorized to act within its territory who are engaged in the mining activities set out in Article 5 thereof are eligible for the regime established under this Law. 
 
 The tax stability granted by this Law mean s that enterprises engaged in mining activities 
within the framework of this investment regime  are not liable, beyond the total tax burden, to 
increases in the taxes and duties, of whatever desc ription, imposed by the national, provincial or 
municipal authorities adopting this regime or to the introduction of new ta xes which would legally 
apply to them, as subject to such authorities.  It  also applies to the foreign-exchange and tariff 
regimes, excluding exchange parity and refunds, repa yments and/or drawback of taxes on account of 
export activities.  It does not apply to value-added tax. 
  Tax stability is granted for thirty (30) years from the date of submission of the feasibility study for the mining ventures coming under the regime.  
 Law No. 24.402:  this Law has instituted a regi me for financing payment of value-added tax 
through credit lines granted by financial entities.  Th e beneficiaries of this regime are the purchasers 
or importers of the goods referred to in the Law (Article 1), inasmuch as they are intended for the 
productive process, and persons subject to the regime  established under Law No. 24.196 who invest in 
civil and construction works to provide the infr astructure required for the production of goods. 
 
 Law No. 24.228:  the provinces are called upon to eliminate taxes on mining activities from 
their legislation pursuant to points 9 and 10 of the Federal Mining Agreement. 
 G/SCM/N/123/ARG 
Page 4  
 
  7. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year).  Where provision of per-unit subsidy information (for the year covered by the notification, for the previo us year, or both) is not possible, a full 
explanation 
 
 The amounts disbursed for the development of mining activity for the period 2001-2004 were 
as follows:  
 2001 2002 2003 2004 2005 
Law No. 24.196 12.1 15.5 16.2 25.2 39.3 
Tax concessions 3.4 33.7 1.3 1.4 1.4 
Law No. 22.095 2.8 2.5 2.3 2.3 1.8 
N.B.: In millions of pesos. 
Source : Department of Mining,  Ministry of Federal Planning, Public Investment and Services. 
 
8. Duration of the subsidy and/or any other time-limits attached to it, including date of 
inception/commencement 
  Pursuant to Decree No. 1343/99, the regime  will come to an end on 31 December 2005. 
  
FORESTRY ACTIVITY 
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
  Law No. 13.273 on Promotion of forestry activity (regulatory enactment by Decree 
No. 710/95).   Decree No. 711/95 on Promotion of forest plantations.   
 
 Law No. 24.857 on Tax stability.   Law No. 25.080 on Promotion of investment for cultivated forests (regulatory enactment by 
Decree No. 133/99 and Amendment Resolutions Nos. 610/99, 152/00 and 22/01 (amended by 
Resolution No. 45/05). 
 
2. Period covered by the notification 
 
 1 January to 31 December 2005.  3. Policy objective and/or purpose of the subsidy 
 
 The environmental and economic potential of Ar gentina's forestry sector has barely been 
exploited.  The purpose of the legislation in this area is to promote forestry activity throughout the 
country with a view to encouraging medium- and long-term investment a nd generating employment. 
  G/SCM/N/123/ARG 
 Page 5 
 
 
  4. Background and authority for the subsidy (including identification of the legislation 
under which it is granted) 
 
 Law No. 13.273:  Published in the Official Journal of 6 October 1948 
 Decree No. 710/95:  Published in the Official Journal of 24 November 1995 
 Decree No. 711/95:  Published in the Official Journal of 24 November 1995 
 Law No. 24.857:  Published in the Official Journal of 11 September 1997 
 Law No. 25.080:  Published in the Official Journal of 19 January 1999  Decree No. 133/99:  Published in the Official Journal of 1 March 1999  Resolution No. 610/99:  Published in the Official Journal of 1 November 1999 
 Resolution No. 152/00:  Published in the Official Journal of 19 April 2000 
 Resolution No. 22/01:  Published in the Official Journal of 30 March 2001 
 Resolution No. 45/2005:  Published in the Official Journal of 15 February 2005  
5. Form of the subsidy (i.e., gr ant, loan, tax concession, etc.) 
 
 Law No. 13.273 (regulatory enactment by Decree No. 710/95):  customs exemptions and promotion measures.   Decree No. 711/95:  Tax credits.  Law No. 24.857:  Tax stability. 
 Law No. 25.080:  Tax credits. 
 
6. To whom and how the subsidy is provi ded (whether to producers, to exporters or 
others; through what mechanism; whether a fixed sum or fluctuating amount per unit; if the latter, how determined) 
 
 Law No. 13.273 (regulatory enactment by Decree No. 710/95):  the equipment, tools, drugs, seeds, cuttings and other elements needed for afforest ation, the reforestation of the country and survey 
work are exempted from customs duties.   Decree No. 711/95:  a tax credit, of a fixed amount  per hectare of forest classified as eligible, 
is granted to natural and legal pe rsons owning cultivated forests for the forestry activities of planting, 
pruning, thinning and other silvicultural treatments.   Law No. 24.857:  tax stability is enjoyed by all forestry and forest exploitation activities 
coming under Law No. 13.273.  By tax stability it is meant that enterprises e ngaged in forestry or 
forest exploitation activities are not liable, beyond the total tax burden determined at the time of 
submission of the relevant feasibility study, to increases in the taxes a nd duties, of whatever 
description, imposed by national, provincial or m unicipal authorities or to the introduction of new 
taxes which would legally apply to them as subject to such authorities.   Law No. 25.080:  Value-added tax is refunde d on the purchase or definitive importation of 
goods, leases or the provision of services effectively intended as an investment under the forestry 
project.  Non-repayable economic support is granted to  planted forests of not less than 500 hectares on 
a scale established by the Law.    G/SCM/N/123/ARG 
Page 6  
 
  7. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year).  Where provision of per-unit subsidy information (for the year covered by the notification, for the previo us year, or both) is not possible, a full 
explanation 
  The total non-repayable amounts disbursed for economic support for the period 2001-2005 
were as follows:   
2001 19.0 million pesos 
2002   7.7 million pesos 
2003 42.0 million pesos 2004 10.9 million pesos 2005 27.3 million pesos 
 
Source:  Department of Agriculture, Livestock, Fish eries and Food – Ministry of Economy and 
Production . 
 8. Duration of the subsidy and/or any other time-limits attached to it, including date of 
inception/commencement 
 
 Undertakings under the regime will benefit from ta x stability for a period of up to thirty (30) 
years from the date of approval of the corresponding project.  
 
FREE ZONES 
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
  Free Zones.  Law No. 24.331 (the Resolutions  establishing the exploitation concessions and 
operating regulations and standards for free zones are listed in the Annex). 
  Free Zones.  Law No. 25.005 and Regulatory Decree No. 932/98.  Amendment to Article 44 of Law No. 24.331. 
 
2. Period covered by the notification 
 
 1 January to 31 December 2005.  
3. Policy objective and/or purpose of the subsidy 
 
 The policy objective in this respect is set out  in Article 4 of Law No. 24.331, as follows:  
"The objective of the free zones shall be to stimul ate trade and industrial export activity, helping to 
extend to investment and employment the increase in efficiency and reduction in costs associated with 
the activities developing within such zones.  The fr ee zones shall function in accordance with national 
trade policy, shall contribute to the growth and competitiveness of the economy and shall be fully 
incorporated into the regional integration process".  
4. Background and authority for the subsidy (including identification of the legislation 
under which it is granted) 
  Law No. 24.331:  Published in the Official Journal of 17 June 1994  G/SCM/N/123/ARG 
 Page 7 
 
 
   Law No. 25.005:  Published in the Official Journal of 18 August 1998 
 Decree No. 932/98:  Published in the Official Journal of 18 August 1998  
5. Form of the subsidy (i.e., gr ant, loan, tax concession, etc.) 
  Exemption from duties on the importation for consumption of goods entering the free zone 
and goods leaving the free zone for third countri es;  charges for services effectively supplied are 
excluded from these exemptions (Articles 24 and 25 of Law No. 24.331).   Exemption from the payment of national taxes on basic services supplied within the free zone.  
For this purpose, basic services mean those involving the provis ion of telecommunications, gas, 
electricity, running water and drainage and treatment of sewage.   There are no economic prohibitions in force.  6. To whom and how the subsidy is provi ded (whether to producers, to exporters or 
others; through what mechanism; whether a fixed sum or fluctuating amount per unit; if the latter, how determined) 
 
 The exemptions benefit persons  engaged in activities within the free zone in accordance with 
Law No. 24.331. 
 
7. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year).  Where provision of per-unit subsidy information (for the year covered by the notification, for the previo us year, or both) is not possible, a full 
explanation 
 
 Lack of data makes such calculations impossible.  
8. Duration of the subsidy and/or any other time-limits attached to it, including date of 
inception/commencement 
 
 Benefits under this legislation apply from the commencement of activities within the free 
zone, in accordance with the conditions  established by Law No. 24.331. 
  CAPITAL GOODS, INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS REGIME 
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
 
 Capital goods, information technology an d telecommunications regime.  Decrees 
Nos. 379/2001 and 502/2001. 
 
2. Period covered by the notification 
 
 1 January to 31 December 2005. 
 
3. Policy objective and/or purpose of the subsidy 
 G/SCM/N/123/ARG 
Page 8  
 
   The objective of the legislation in this area is  set out in Article 1 of Decree No. 502/2001.  
This is an incentives regime for manufacturers in the capital goods, information technology and 
telecommunications sectors with establishments in national territory.  Given that tariffs were reduced to zero per cent, pursuant to Resolutions Nos. 8/20 01 and 27/2001, the purpose of the regime is to 
maintain competitive conditions for domestically produced capital goods in relation to imports.   
 
4. Background and authority for the subsidy (including identification of the legislation 
under which it is granted) 
 
Decree No. 379/2001:  Published in th e Official Journal of 30 March 2001 
Decree No. 502/2001:  Published in the Official Journal of 2 May 2001 
Resolution No. 8/2001:  Published in the Official Journal of 27 March 2001 Resolution No. 27/2001:  Published in the Official Journal of 10 April 2001 
 
5. Form of the subsidy (i.e., gr ant, loan, tax concession, etc.) 
 
 A tax bond, to be applied to the payment of na tional taxes, of a value equivalent to ten per 
cent (10%) of the amount resulting from the deduction from the sales price of the value of imported inputs, parts or components incorporated in the goods and cleared through customs at an import duty 
of zero per cent (0%).  6. To whom and how the subsidy is provi ded (whether to producers, to exporters or 
others; through what mechanism; whether a fixed sum or fluctuating amount per unit; if the latter, how determined) 
 
 The exemptions benefit manufacturers in the capital goods, information technology and 
telecommunications sectors with industrial establishments in national territory. 
 
7. Subsidy per unit or, in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year).  Where provision of per-unit subsidy information (for the year covered by the notification, for the previo us year, or both) is not possible, a full 
explanation 
 
 Lack of data makes such calculations impossible.  
8. Duration of the subsidy and/or any other time-limits attached to it, including date of 
inception/commencement 
 
 Benefits under this legislati on apply until 31 December 2005. 
   G/SCM/N/123/ARG 
 Page 9 
 
 
  ANNEX 1:  FREE ZONES 
Resolution No. 898/95 Río Gallegos and Ca leta Olivia. Province of Santa Cruz. 
Resolution No. 33/96 Sierra Grande. Province of Río Negro. Resolution No. 33/96 Justo Daract. Province of San Luis. Resolution No. 70/96 Zapala. Province of Neuquén. 
Resolution No. 78/96 Frías. Province of Santiago del Estero. 
Resolution No. 79/96 Jachal. Province of San Juan. Resolution No. 80/96 Cruz Alta. Province of Tucumán. Resolution No. 275/96 Comodoro Rivadavia. Province of Chubut. Resolution No. 320/96 Comodoro Rivadavia. Province of Chubut. 
Resolution No. 286/96 General Pico. Province of La Pampa. 
Resolution No. 549/96 General Güemes. Province of Salta. Resolution No. 553/96 Perico and La Puna. Province of Jujuy. Resolution No. 767/96 Luján de Cuyo. Province of Mendoza. Resolution No. 768/96 Villa Cons titución. Province of Santa Fe. 
Resolution No. 769/96 Córdoba. Province of Córdoba. 
Resolution No. 3235/96 La Plata. Province of Buenos Aires. Resolution No. 165/97 Paso de los Libres. Province of Corrientes. Resolution No. 322/97 San Fernando. Province of Chaco. Resolution No. 634/97 Clorinda. Province of Formosa. Resolution No. 964/97 Chamical and Felipe Varela. Province of La Rioja. 
Resolution No. 855/98 Tinogasta. Province of Catamarca. 
Resolution No. 678/99 Puerto Iguazú. Province of Misiones. Resolution No. 442/01 Bahía Blanca Cnel. Rosales. Province of Buenos Aires.  All of these Resolutions were issued by the Mini stry of the Economy, Works and Public Services, 
except for Resolution No. 3235/96, which was issu ed by the National Customs Administration. 
 
__________