WORLD TRADE  
ORGANIZATION  G/AG/N/HRV/12 
24 March 2010 
 (10-1610) 
Committee on Agriculture Original:   English 
  
 
NOTIFICATION  
 
  The following submission, dated 3 September 2009,  is being circulated at the request of the 
Delegation of Croatia .  The notification concerns new or modified domestic support measures exempt 
from reduction ( Table DS:2 ). 
 G/AG/N/HRV/12 
Page 2  
 
  Table DS:2 
 
DOMESTIC SUPPORT:  Croatia  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:   The introduction of direct payments 
 (2) Domestic legislation:    
 
 Law on financial incentives and input subsidies in agriculture (Official Gazette No. 29/99, 
105/99, 46/00, 101/00, 12/01, 13/02) 
 Law on state support in agriculture, fisheries and forestry (Official Gazette No. 87/02, 117/03, 
82/04, 12/05) 
 
(3) Detailed description of measure with reference to criteria:  
 
 Direct area payments are intr oduced on a hectare basis (reference year for area is 1999) in 
order to increase farmers competitivene ss and to support farmers incomes. 
 Measures introduced are as follows: 
• Direct payments per hectare for arable crops (cereals, oilseeds, forage crops, sugar 
beet)  
• Direct payments per hectare for vegetables 
• Direct payments per hectare for permanent crops (vineyards, orchards) 
   Notified scheme of direct payments per hect are is in accordance with the requirements of 
Article 6 paragraph 5 (i) of the Agreement on Agriculture. 
  Direct headage payments are introduced fo r the same purpose as above and are paid on a 
number of heads (reference year for number of  heads is 1999). Measures introduced are as 
follows: 
• Direct payments per head in livestock pr oduction (cattle, sheep, goats, pigs, horses)  
   Notified scheme of direct payments per head is  in accordance with the requirements of Article 
6 paragraph 5 (iii) of the Agreement on Agriculture. 
 
(4) Cost of measure:  Year 2001: 120,676,705 EUR 
     (5) Date of entry into effect:   As from 2000  
 
(6) Period of application:    Unlimited 
 
(7) Products to principally benefit (if any individual product(s)):   
  
 - arable crops (cereals, oilseeds, forage crops, sugar beet);  - vegetables;  - permanent crops (vineyards, orchards);  - livestock (cattle, sheep, goats, pigs, horses)    G/AG/N/HRV/12 
 Page 3 
 
 
  Table DS:2 
 
DOMESTIC SUPPORT:  Croatia  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:   Decoupled income support 
 
(2) Domestic legislation:   Law on state support in agriculture, fisheries and forestry (Official 
Gazette No. 87/02) 
 
(3) Detailed description of measure with reference to criteria:  
 
 Eligibility for these payments is limited to smaller farms with mainly older population.  
Qualified farmers are given the possibility to receive a lump sum as payment not linked to the 
type or volume of production nor domestic or international prices. The sum paid to farmers 
within the decoupled income support scheme is also not related to the factors of production 
employed. 
 
 Notified scheme is in accordance with the requirements of Annex 2 paragraph 6 of the 
Agreement on Agriculture:  "Decoupled income support". 
 
(4) Cost of measure:  Year 2003:  1,841,867 EUR 
      
(5) Date of entry into effect:   As from 2003 
 (6) Period of application:    Unlimited. 
 (7) Products to principally benefit (if any individual product(s)):   
 
  G/AG/N/HRV/12 
Page 4  
 
  Table DS:2 
 
DOMESTIC SUPPORT:  Croatia  
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction  
 
(1) Full title of measure:   Capital investment scheme 
 
(2) Domestic legislation:   Law on state support in agriculture, fisheries and forestry (Official 
Gazette No. 87/02) 
 
(3) Detailed description of measure with reference to criteria:  
 
 The capital investment scheme is a structural measure designed to improve farm 
modernization, purchase of land, machinery, equipment, etc. by supporting investments. 
  The investment aid may be granted to both physical and legal persons for restructuring of a 
producer's operations. 
 
 Notified scheme is in accordance with the requirements of Annex 2 paragraph 11 of the 
Agreement on Agriculture:  "Structural adjust ment assistance provided through investment 
aids". 
 (4) Cost of measure: Year 2003: 1,831,045 EUR 
      
(5) Date of entry into effect:   As from 2003 
 
(6) Period of application:    Unlimited 
 (7) Products to principally benefit (if any individual product(s)):   
 
   
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