WORLD TRADE  
ORGANIZATION  G/SCM/N/123/EEC/Add.6
26 August 2005 
 (05-3591) 
  
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  
 
EUROPEAN COMMUNITIES 
 
Addendum  
 
 The following addendum to the notification of  the European Community relates to subsidy 
programmes of Estonia . 
 
_______________ 
   G/SCM/N/123/EEC/Add.6 
Page 2 
 
 
ESTONIA 
 
TABLE OF CONTENTS 
Page  
I. AID FOR RESEARCH AND DEVELOPMENT.................................................................................. 3  
A. R & D FINANCING  PROGRAMME .................................................................................................... 3  
B. COMPETENCE CENTRES PROGRAMME ..................................................................................................... 4  
II. OTHER HORIZONTAL AID........................................................................................................... ..... 5 
A. SUPPORT FOR THE PARTICIPATION OF ENTREPRENEURS IN TRADE FAIRS ............................................. 5  
B. SUPPORT  IN THE  FRAMEWORK  OF EXPORT  PLANNING  PROGRAMME............................ 6  
C. TRAINING PROGRAMME ........................................................................................................................... 7  
D. GUARANTEE SCHEME FOR SMALL AND MEDIUM SIZED ENTERPRISES .................................................... 8  
E. CONSULTING PROGRAMME ...................................................................................................................... 9  
F. START -UP PROGRAMME ......................................................................................................................... 10  
G. ENVIRONMENTAL AID (NATIONAL ENVIRONMENTAL PROGRAMME ).................................................... 11  
H. EXPORT CREDIT INSURANCE .................................................................................................................. 11  
III. REGIONAL AID................................................................................................................... ................ 13  
A. SUBSTITUTION OF THE POLLUTION CHARGE........................................................................ 13  
B. BUSINESS INFRASTRUCTURE DEVELOPMENT PROGRAMME .................................................................. 13  
C. PROGRAMME OF TOURISM MARKETING AND PRODUCT DEVELOPMENT .............................................. 14  
D. PROGRAMME OF INVESTMENT SUPPORT FOR DEVELOPMENT AND 
DIVERSIFICATION OF ALTERNATIVE ECONOMIC ACTIVITIES IN RURAL AREAS..... 15  
E. LOAN GUARANTEES FOR NO N-AGRICULTURAL ENTERPRIS ES IN RURAL AREAS .... 16  
F. TESTING AND NOTIFICATION OF SHALE OIL CHEMICALS PROD UCED FROM OIL 
SHALE .......................................................................................................................... ......................... 17  
IV. SECTORAL AID................................................................................................................... ................ 18  
AID FOR ESTONIAN AUDIOVISUAL INDUSTRY................................................................................ 18  
V. DOMESTIC SUPPORT IN AGRICULTURE.................................................................................... 19  
A. GENERAL SERVICES ............................................................................................................................... 19 
B. PUBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES ................................................................... 21  
C. DOMESTIC FOOD AID - SCHOOL MILK SUPPORT ................................................................................... 21  
D. STRUCTURAL ADJUSTMENT ASSISTANCE PROVIDED THROUGH INVESTMENT AIDS.......................... 22  
E. PAYMENT UNDER ENVIRONMENTAL PROGRAMMES ............................................................................. 23  
F. PAYMENT UNDER REGIONAL ASSISTANCE PROGRAMMES ................................................................... 24  
F(A) PAYMENTS MADE ON 85 PER CENT OR LES S OF THE BASE LEVEL OF PRODUCTION 
BEFORE ACCESSION TO THE EU  ON  01.MAY 2004.................................................................. 25  
F(B) PAYMENTS MADE ON 85 PER CENT OR LESS OF THE BASE LEVEL OF PRODUCTION AFTER 
ACCESSION TO THE EU ON 01 MAY  2004 ...................................................................................................... 27  
G. INSURANCE SUPPORT.............................................................................................................. ........ 28  
H. INTEREST SUBSIDY FOR AGRICULTURAL LOANS .................................................................................. 29  
I. SUPPORT FOR SUCKLER COW RAISING.................................................................................... 30  
J. SUPPORT FOR YOUNG BOVINE AND BEEF ANIMAL RAISING ............................................ 31   G/SCM/N/123/EEC/Add.6 
 Page 3 
 
 
 
I. AID FOR RESEARCH AND DEVELOPMENT 
A. R & D FINANCING  PROGRAMME 
1. Period covered by the notification  
 
 2003, 2004 
 2. Policy objective and/or purpose of the subsidy
 
  The programme aims at increasing the competitiveness of companies through the support of 
R&D projects leading to new technologies, products, processes and services.  
 3. Background and authority for the subsidy
 
  Enterprise Estonia (Foundation), which is an implementing agency for the Ministry of 
Economic Affairs and Communication. 
 4. Legislation under which subsidy is granted
 
  The Articles of Association of Enterprise Estonia; Programme document specifying the eligible activities, application procedures etc, approved by the board of Enterprise Estonia. 
 
 Regulation of the Minister of Economic Affairs and Communications No 73 of 13
th of 
April 2004.  5. Form of the subsidy
 
 
 Grant, soft loan.  6. To whom and how the subsidy is provided
 
  The subsidies are provided to SMEs, large companies and R&D institutions, which undertake 
industrial research and pre-competitive development activity projects. 
Generally industrial research projects can be s upported up to 50% of eligible costs, which may 
increase up to 75% in special cases (SMEs, cross- border cooperation, wide dissemination of the 
results etc).  
 In case of industrial  research carried out by public R&D institutions,  public support can go 
up to 100% of the project costs.   Pre-competitive development activity  project s can in general be supported up to 25%, which 
may reach up to 50% in special cases.  
 Technical feasibility studies preparatory to industrial research activities can be supported up 
to 75% and technical feasibility studies preparat ory to pre-competitive development activities up to 
50% of the studies’ costs. 
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy : 
 
Fiscal year 2003 – 57.3 Mio EEK. G/SCM/N/123/EEC/Add.6 
Page 4 
 
 
Fiscal year 2004 –  56.1 Mio EEK.  
8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to the programme. 
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A 
 
B. C
OMPETENCE CENTRES PROGRAMME  
1. Period covered by the notification  
 2003, 2004 
2. Policy objective and/or purpose of the subsidy  
 
 To improve the competitiveness of enterprises through strategic cooperation between science 
and industry sectors. To achieve this aim suppor t is given to the establishment of small R&D 
consortiums – the competence centres.  3. Background and authority for the subsidy
 
 
 Enterprise Estonia (Foundation)  4. Legislation under which subsidy is granted
 
 
 The Articles of Association of Enterprise Estonia; Programming document of the programme 
approved both by the government and the board of Enterprise Estonia.   5. Form of the subsidy
 
 Grant 
6. To whom and how the subsidy is provided  
 
 Support is given to competence centres, which carry out fundamental, industrial research or pre-competitive development activities. Competence centres are small R&D institutions estab lished and operated toge ther by number of 
companies and universities. Main characteristic of such centres is strong focu s on industrial research, 
which is needed for the product develo pment of the founders of these centres. 
  Fundamental research projects can be supported up to 100 %. Industrial research projects can be supported up to 50% of eligible costs, which may increase up to 
75% in special cases (SMEs, cross-border cooperation, wide dissemination of the results etc). Pre-competitive development activity projects can in general be supported up to 25%, which may 
reach up to 50% in special cases. 
  Technical feasibility studies preparatory to industrial research can be supported up to 75% 
and technical feasibility studies preparatory to pr e-competitive development activities up to 50% of 
the studies’ costs.   G/SCM/N/123/EEC/Add.6 
 Page 5 
 
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2003 –  2.4 Mio EEK 
 Fiscal year 2004 –  5.3 Mio EEK 
 8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to the programme 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  
II. OTHER HORIZONTAL AID 
A. S
UPPORT FOR THE PARTICIPATION OF  ENTREPRENEURS IN TRADE FAIRS  
1. Period covered by the notification  
  2003, 2004  
2. Policy objective and/or purpose of the subsidy
 
  To organise and support the participation of  entrepreneurs in international and local 
tradeshows.  
3. Background and authority for the subsidy
 
  Enterprise Estonia (Foundation)  4. Legislation under which subsidy is granted
 
 
 The Articles of Association of Enterprise Est onia; the Procedure of the Foundation Enterprise 
Estonia on organisation of participation in stat e-supported foreign exhibitions; the Procedure on 
applying for support for participation in local trade fairs.  5. Form of the subsidy
 
 
 Grant  6. To whom and how the subsidy is provided
 
  In case of international fairs, the subsidy is paid to the fair operators/fair organisers, as a 
payment for stand rental. The subsidy cannot cover more than 50% of the cost of the stand. 
  In case of support for participation in local fairs, the subsidy is provided to companies and sole proprietors. Maximum aid award per applicant is 9000 EEK per year, not more than 50% of the 
participation costs are covered. 
 G/SCM/N/123/EEC/Add.6 
Page 6 
 
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2003 – 5.6 Mio EEK 
Fiscal year 2004 –  8.1 Mio EEK 
8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  
B. SUPPORT
 IN THE  FRAMEWORK  OF EXPORT  PLANNING  PROGRAMME 
1. Period covered by the notification  
 
 2003, 2004  2. Policy objective and/or purpose of the subsidy
 
 
 To support the drafting of companies' l ong-term export plans and financing their 
implementation.  3. Background and authority for the subsidy
 
 
 Enterprise Estonia (Foundation) 
 4. Legislation under which subsidy is granted
 
  The Articles of Association of Enterprise Es tonia; the Procedure of Export Planning 
Programme of Enterprise Estonia; the Regulati on of the Minister of Economic Affairs and 
Communications No 145 of 7 June 2004 
 5. Form of the subsidy
 
  Grant 
 
6. To whom and how the subsidy is provided
 
 
The subsidy is provided to the company fo r drafting of a long-term plan of export 
strategy and for its implementation by offering a ppropriate training and consultation services.  
The compilation of an export plan is suppor ted with a maximum of 75,000 EEK towards 
covering the consultation costs. 
The execution of different marketing activities (participation at trade shows, visits to 
foreign markets, consultation services, promoti onal materials, participation in the contact 
events, etc.) is supported up to 1,000,000 EEK.  
The self-financing rate for both drafting of export strategy plan and marketing 
activities is not less than 50 percent of the eligible costs.   G/SCM/N/123/EEC/Add.6 
 Page 7 
 
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy : 
  Fiscal year 2003 – 20.6 Mio EEK. 
 Fiscal year 2004 –  47.4 Mio EEK 
 8. Duration of a subsidy and/or any other time limits attached to it
 
  The execution period of a long-term export plan can be up to 3 years. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  
C. 
TRAINING PROGRAMME  
1. Period covered by the notification  
  2003, 2004  2. Policy objective and/or purpose of the subsidy
 
 
 In 2003: to support the in-service training and retraining of entrepreneurs and the persons 
working in the companies for maintaining or in creasing the competitiveness of employees at the 
labour market and to support SME-s to participate in local fairs in order to make business contacts. 
 
 The objective of the grant available since July  2004 is to support the training of persons 
employed in enterprises in order to improve and ma intain employability, deve lop entrepreneurship, to 
promote the conditions facilitating job creation, as well as to boost human potential in research, science and technology.  3. Background and authority for the subsidy
 
 
 Enterprise Estonia (Foundation)  4. Legislation under which subsidy is granted
 
 
 2003:  The articles of Association of Enterprise Estonia; the procedure of applying the grant; 
Since July 2004: The Regulation of the Minister of Economic Affairs and Communications No 154 of 
15 June 2004.  5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  The subsidy, available since July 2004 is provi ded to companies and sole proprietors whose 
training project is related to the acquisition or ra ising of the professional qualification of employees. 
No support shall be provided for training intended to  raise the general level of education. The subsidy 
can cover up to 70% of eligible costs of SMEs and up to 50% of big enterprises.  
 G/SCM/N/123/EEC/Add.6 
Page 8 
 
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  In 2003 – 6.8 Mio EEK 
 In 2004 – 7.8 Mio EEK 
 8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it. 
 
 Statistical data permitting an assessment of the trade effects of a subsidy
 
  N/A  
 
D. GUARANTEE SCHEME FOR SMALL AND MEDIUM SIZED ENTERPRISES  
1. Period covered by the notification  
  2003, 2004  2. Policy objective and/or purpose of the subsidy
 
 
 To promote small and medium sized enterprises by supporting their access to capital. 
 3. Background and authority for the subsidy
 
  Credit and Export Guarantee Foundation – KredEx 
 
4. Legislation under which subsidy is granted
 
  The Articles of Association of Credit and Export Guarantee Foundation (KredEx); Support of Enterprise and State Loan Guarantees Act.  
5. Form of the subsidy
 
  Loan and leasing guarantees  6. To whom and how the subsidy is provided
 
 
 Loan guarantees are provided to give additio nal guarantee for the bank in case a company has 
not enough warranties of its own.  Loan guarantees are provided to SMEs (loans i ssued to agricultural, real estate development 
or state-owned companies excluded), i.e. to comp anies with less than 250 employees and turnover less 
than 625 million EEK.  
 Loan guarantees are not provided to companies in economic difficulties, having tax liabilities 
or unrealistic business plans.   Guarantee covers up to 75% of the loan, the maximum amount for one entrepreneur or a connected company is 7 million EEK. The leasing guarantee covers up to 40% of the principal 
amount outstanding.  
 The guarantee fee ranges from 1,5% to 3% of  the guarantee value per year depending on rate 
of risk of the project.   G/SCM/N/123/EEC/Add.6 
 Page 9 
 
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
  In 2003 –  guarantee amount  183.2 Mio EEK 
 In 2004 -  guarantee amount   212.5 Mio EEK 
 8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to the programme. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  
E. C
ONSULTING PROGRAMME  
1. Period covered by the notification  
  2003, 2004  2. Policy objective and/or purpose of the subsidy
 
 
 To enable SMEs and sole proprietors to  purchase business consultations from professional 
consultants on favourable conditions.  3. Background and authority for the subsidy
 
 
 Enterprise Estonia (Foundation)  4. Legislation under which subsidy is granted
 
  The Articles of Association of Enterprise Es tonia; the procedure on applying for business 
consultancy grant; the Regulation of the Minister of Economic Affairs and Communications No 74 of  
 13 April 2004  5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  The subsidy is provided to SMEs or sole propr ietors. The amount of the support per applicant 
is up to 200 000 EEK per year and may cover up to 50% of the advisory services costs.  
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
  In 2003 - grant was not available 
 In 2004 - 6.7 Mio EEK 
 8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to it. 
 G/SCM/N/123/EEC/Add.6 
Page 10 
 
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A 
 
F. S
TART -UP PROGRAMME  
1. Period covered by the notification  
 
 2003, 2004 
 
2. Policy objective and/or purpose of the subsidy  
 
 To provide individuals with the incentive to start business and create new jobs. Likewise, the 
programme intends to increase the survival ratio of new enterprises.  
3. Background and authority for the subsidy
 
 
 For the city of Tallinn – City Enterprise Department 
 For other parts of Estonia - Enterprise Estonia (Foundation) 
 
4. Legislation under which subsidy is granted  
 
 The Articles of Association of Enterprise Estonia; the Procedure on applying for start-up 
support; the Regulation of the Minister of Ec onomic Affairs and Co mmunications No 75 of 
13 April 2004. 
 
 Regulation of Tallinn City Council No  4 (09.01.2003) 
 Regulation of Tallinn City Council No 48 (09.10.2004) 
 5. Form of the subsidy
 
 
 Grant 
 
6. To whom and how the subsidy is provided  
  Subsidy is provided to applicants who have not been registered in the Register of Companies longer than 24 months, shareholders of applicant must be individuals, no business enterprises or 
public sector institutions allowed. 
 
 The grant is up to 160 000 EEK per applican t. The grant amount will not exceed 75% of the 
eligible costs, self-financing is at least 25%. 
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 
 In 2003 – 21.7 Mio EEK 
 In 2004 – 30.8 Mio EEK 
 
8. Duration of a subsidy and/or any other time limits attached to it  
  A project must be completed within 12 months.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A   G/SCM/N/123/EEC/Add.6 
 Page 11 
 
 
G. ENVIRONMENTAL AID (NATIONAL ENVIRONMENTAL PROGRAMME ) 
1. Period covered by the notification  
  2003, 2004 
 
2. Policy objective and/or purpose of the subsidy
 
  To restore the stability of environment
. 
 
3. Background and authority for the subsidy  
  Environmental Investment Centre (Foundation).  4. Legislation under which subsidy is granted
 
 
 The Articles of Association of Environmental Investment Centre. 
 5. Form of the subsidy
 
  Grant 
 
6. To whom and how the subsidy is provided
 
  Subsidy is provided to applicant’s projects, wh ich meet the criteria of national environmental 
programme. 
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  In 2003 – 0.8 Mio EEK.  In 2004 – 1.0 Mio EEK. 
 
8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  
H. E
XPORT CREDIT INSURANCE  
1. Period covered by the notification  
 
 2003, 2004  G/SCM/N/123/EEC/Add.6 
Page 12 
 
 2. Policy objective and/or purpose of the subsidy
 
  Protecting Estonian companies against any potential loss arising from export transactions 
through the grant of state export guarantees.
 
 
3. Background and authority for the subsidy  
  The Estonian Credit and Export Guarantee Fund KredEx founded by the Ministry of Economic Affairs and Communications.  
4. Legislation under which subsidy is granted
 
  State Export Guarantees Act; decisions and communications of the EU on export credit insurance (including OECD Arrangement).  
5. Form of the subsidy
 
  Beneficiaries under this scheme are pr ovided with export credit insurance. 
 6. To whom and how the subsidy is provided
 
 
 Export credit insurance is provided by the Estonian Credit and Export Guarantee Fund 
KredEx.  KredEx is founded by the Ministry of Economic Affairs and Communications and is a 
private body (foundation).    Export credit insurance could be given to undertak ings that directly or indirectly take risks 
related to the export tran sactions being guaranteed. 
 
 
 The total amount of guarantees issued per one de btor shall not exceed 10 per cent of the total 
guarantee limit provided for in State Export Guarant ees Act. The total guarantee limit in the period 
covered by the notification was 19.17 million Euros.   Premiums have to cover the costs relating to  the grant of a guarantee by KredEx and any 
possible losses during a longer period, as well as co rrespond to the risks covered, the guarantee 
amount arising from the guarantee contract and th e extent of the excess of the guarantee holder. 
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  Since the scheme is meant to be self-suffici ent, there are no annual allocations for the 
activities. The total volume of export sales insured by KredEx in 2003 was 10.67 million Euros; the 
number for 2004 was 38.92 million Euros.   
8. Duration of a subsidy and/or any other time limits attached to it
 
  Part of the scheme is conducted under the EC permission that was given to the period until 
January 31st, 2005. There is no time limit for the rest of the scheme.   
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A; considering the small volume of the cove r it could be assumed that the subsidy has got 
negligible effect on international trade.  G/SCM/N/123/EEC/Add.6 
 Page 13 
 
 
III. REGIONAL AID 
A. SUBSTITUTION OF THE POLLUTION CHARGE 
1. Period covered by the notification  
 
 2003, 2004 
 2. Policy objective and/or purpose of the subsidy
 
  The programme aims at decreasing polluti on by encouraging voluntary environmental 
protection investments. 
 3. Background and authority for the subsidy
 
  The Ministry of Environment   
4. Legislation under which subsidy is granted
 
  Pollution Charge Act, Article 19.  5. Form of the subsidy
 
 
 Pollution charge substitution with inv estments in environmental protection. 
 6. To whom and how the subsidy is provided
 
 
 According to the Article 19 of the Pollution Ch arge Act companies have to pay a charge for 
the release of pollutants or waste into the environm ent. The obligation to pay the pollution charge can 
be substituted by investments if the polluter impl ements measures which ensure the reduction of 
pollutants over the course of 3 years by not less than 25% in comparison with the last accounting 
period prior to the implementation of such measur es. The extent to which the pollution charge is 
substituted shall not exceed the cost of the environmental protection measures. 
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  Fiscal year 2003 –  23.9 Mio EEK. 
 Fiscal year 2004 – 10.4 Mio EEK 
 8. Duration of a subsidy and/or any other time limits attached to it
 
  Duration of support for applicant is up to 3 years.   
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  
B. B
USINESS INFRASTRUCTURE DEVELOPMENT PROGRAMME  
1. Period covered by the notification  
 2003, 2004 G/SCM/N/123/EEC/Add.6 
Page 14 
 
 2. Policy objective and/or purpose of the subsidy
 
 To improve the business environment of existing enterprises, by supporting the establishment 
of necessary business infrastructure and industrial real  estate equipped with modern infrastructure. 
3. Background and authority for the subsidy  
 
 Enterprise Estonia (Foundation)  4. Legislation under which subsidy is granted
 
 
 The Articles of Association of Enterprise Estoni a; the Procedure on applying for the technical 
infrastructure support; the Regulation of the Minister of Economic Affairs and Communications No 72 of 13 April 2004  5. Form of the subsidy
 
 
 Grant 
 
6. To whom and how the subsidy is provided  
 The subsidy is provided to companies which investment projects are related to business 
development outside Tallinn. Compan ies engaged in agricultural production, retail or wholesale trade, 
fishery and transport are not eligible for support. 
  The minimum amount of support is 100 000 EEK, the maximum amount is 5 million EEK. For large companies up to 50% of the eligible costs and for SMEs up to 65% of the eligible costs shall 
be covered. 
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  In 2003 – 32.7 Mio EEK.  In 2004 – 4.8 Mio EEK 
 
8. Duration of a subsidy and/or any other time limits attached to it
 
  A project must be completed within 12 months   
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A 
 
C. P
ROGRAMME OF TOURISM MARKETI NG AND PRODUCT DEVELOPMENT  
1. Period covered by the notification  
 
 2003, 2004    
 
   G/SCM/N/123/EEC/Add.6 
 Page 15 
 
 2. Policy objective and/or purpose of the subsidy
 
  To diversify the choice of Estonian tourism products and services, improve the quality of such 
products and services, raise international competitiv eness of the products and services, and increase 
demand for Estonian tourism products on the international target markets. 
 3. Background and authority for the subsidy
 
  Enterprise Estonia (Foundation) 
 
4. Legislation under which subsidy is granted
 
  The Articles of Association of Enterprise Est onia; the Regulation of the Minister of Economic 
Affairs and Communications  No 126 of 7 May 2004 
 
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Any business company that is registered in Estonia and where the state or local government 
does not possess more than 25% of interests may apply for support under this programme. 
 Minimum amount of a product development grant is 800,000 EEK and maximum amount 
is 15,600,000 EEK. 
 Minimum amount of a marketing grant is 75,000 EEK and maximum amount  
is 1,500,000 EEK.   Any grant will cover up to 50% of the costs eligible for assistance.  
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  In 2003 – subsidy was not available  In 2004 –  0.6 Mio EEK  
8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A 
 
D. PROGRAMME OF INVESTMENT SUPPORT FOR DEVELOPMENT AND 
DIVERSIFICATION OF ALTERNATIVE ECONOMIC ACTIVITIES IN RURAL AREAS 
1. Period covered by the notification
 
 
 2003, 2004   G/SCM/N/123/EEC/Add.6 
Page 16 
 
 2. Policy objective and/or purpose of the subsidy
 
  To create non-agricultural jobs and revive the life in the rural areas through the investment support of the diversification of economic activities in these areas.  
 
3. Background and authority for the subsidy
 
  Agricultural Registers and Information Board  
4. Legislation under which subsidy is granted
 
 
 Government Regulations No 216 of 28 June  2001 “Procedure for presenting applications, 
proceedings and payments of investment support, given in the frames of the pre-accession programme 
of agriculture and rural development in Estonia”  and No 219 of 3 July of 2001 “Procedure for 
evaluation of the applications for investment s upport, given in the frames of the pre-accession 
programme of agriculture and rural development in  Estonia”, the Regulation of the Minister of 
Agriculture No 126 of 28 July 2004. 
5. Form of the subsidy  
  Grant 
 
6. To whom and how the subsidy is provided
 
  Subsidy is provided to the entrepreneurs diversifying or expanding activities and to the 
agricultural producers who start non-agricultural ac tivities in rural areas. Subsidy is provided for 
investments in rural areas related to the promotion of tourism and handicrafts, provision of services 
for the economy and inhabitants of rural arears a nd production of non-agricultural products (more 
specifically the products not listed in Annex I of the EC Treaty). 
 Eligible applicants are small companies who have been acting on the market for at least 
12 months. Preference is given to those companies who use local raw materials/resources or offer services. Up to 50% of the eligible costs may be covered. 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
  In 2003 - 13.6 Mio EEK  In 2004 - 28.9 Mio EEK 
 
8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A 
 
E. LOAN GUARANTEES FOR NON-AGRI CULTURAL ENTERPRISES IN RURAL 
AREAS 
1. Period covered by the notification  
 
 2003, 2004 
  G/SCM/N/123/EEC/Add.6 
 Page 17 
 
 2. Policy objective and/or purpose of the subsidy
 
  To promote investment in rural areas, provi ding guarantees for non-ag ricultural enterprises. 
 
3. Background and authority for the subsidy
 
  Rural Development Foundation  4. Legislation under which subsidy is granted
 
 
 Rural Development and Agricultural Market Regulation Act , entered into force 1 May 2004. 
 5. Form of the subsidy
 
  Loan guarantee 
 
6. To whom and how the subsidy is provided
 
  Guarantee is provided to the entrepreneurs ac ting in the rural areas when the value of the 
collateral assets of the company is not enough to apply for the loan; collateral assets are 
specific/unique and the value of the same is difficu lt to assess; the self-financing ratio of the company 
is small; the enterprise is in the initial stage of th e activity (less than 24 months). Application for the 
guarantee is presented to the Foundation by the bank. Th e limit of cover is up to 75% of the residue of 
the loan commitment of loaner.  
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  In 2003 – guarantee amount 12.8  Mio EEK  In 2004 – guarantee amount 8.2 Mio EEK  
8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A  
F. TESTING AND NOTIFICATION OF SHALE OIL CHEMICALS PRODUCED FROM 
OIL SHALE 
1. Period covered by the notification
 
 
 2003, 2004  2. Policy objective and/or purpose of the subsidy
 
 
 To support the sustainability of the oil shal e chemicals industry by taking preventive actions 
against the risk of loss of jobs by subsidizing th e testing of the shale oil chemicals for oil shale 
chemistry enterprises situated in disadvantaged region of the country.   
 G/SCM/N/123/EEC/Add.6 
Page 18 
 
 3. Background and authority for the subsidy
 
  Enterprise Estonia (Foundation)  
4. Legislation under which subsidy is granted
 
  State Budget Act; the Articles of Association of Enterprise Estonia.  5. Form of the subsidy
 
 
 Grant  6. To whom and how the subsidy is provided
 
  Subsidy is provided to oil shale chemistry ente rprises for the testing of 14 critical oil shale 
chemicals. 
  The chemicals produced from oil shale in Est onia had not been included into the European 
Inventory of Existing Commercial Chemical Substan ces and were considered to be new products for 
the EU market. Notifying of chemicals in European List of New Chemical Substances (ELINCS 
register) included an obligation for enterprises to und ertake numerous laboratory tests in laboratories 
that have a GLP certificate (Good Laboratory Practice certificate).   In case of failure of the testing and notifica tion process, the oil shale chemicals cannot be 
marketed on EU market and retaining of employme nt and creation of new jobs in the sector would 
have become impossible. Supporting the sustainability  of the oil shale chemicals industry by taking 
preventive actions against the risk of loss of jobs contributed to socially and economically stable and 
balanced regional development of Estonia.  7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 
 In 2003 – the grant was not available  In 2004 – 4.6 Mio EEK  8. Duration of a subsidy and/or any other time limits attached to it
 
 
 Duration of support: until April 2004.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  
 IV. SECTORAL AID 
 AID FOR ESTONIAN AUDIOVISUAL INDUSTRY 
1. Period covered by the notification
 
 
 2003, 2004 
     G/SCM/N/123/EEC/Add.6 
 Page 19 
 
 2. Policy objective and/or purpose of the subsidy
 
  To promote culture and heritage conservation in Estonian language, to secure the continuity 
of Estonia film-making and to enliven national f ilm culture. Movies as well as documentary films and 
animations were supported. 
 3. Background and authority for the subsidy
 
  Estonian Film Foundation 
 
4. Legislation under which is granted
 
 
 Articles of Association of the Estonian Film Foundation; the Procedure on applying, 
allocating and using the grant. 
 
5. Form of the subsidy  
  Grant  6. To whom and how the subsidy is provided
 
 
 Support is given to Estonian film producer s. The maximum intensities of support are for 
movies - 90% of production costs, for animation films - 90% of production costs and for documentaries - 100% of production costs.   
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
 
 In 2003 –  22.1 Mio EEK  
 In 2004 –  21.1 Mio EEK.   
8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to it. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy  
  N/A  V. DOMESTIC SUPPORT IN AGRICULTURE 
A. G
ENERAL SERVICES  
1. Period covered by the notification  
  2003; 2004 
 
2. Policy objective and/or purpose of the subsidy
 
 
The programme aims at providing services and bene fits to agriculture or the rural community.  
 
3. Background and authority for the subsidy  
 
 The Ministry of Agriculture 
 G/SCM/N/123/EEC/Add.6 
Page 20 
 
 4. Legislation under which is granted
 
 
- State Budget Act of 2003; 
- State Budget Act of 2004. 
 
5. Form of the subsidy  
  Grants  
6. To whom and how the subsidy is provided
  
  Support for research is provided to the vari ous institutions for developing agricultural 
policies, applied research for plant and livestock pr oduction, applied researc h for land amelioration, 
research related to breeding, incl. support for the breeding of farm animal.   
 The support for pest and disease control is pr ovided to institution for developing pest and 
disease control measures.   The support for training, extension and advi sory services include farmers’ training and 
consultation services, services provided by Jäned a Training and Advisory Centre, agricultural 
extension service programme and other advisory and extension activities.  Advisory subsidy may be 
applied for by an agricultural producer or an undertaking engaging in other rural economic activity 
who pays the part of the cost of the advisory service.  Advisory support in 2003 was granted in an amount of up to 70 per cent of the cost of th e consultation service. For the application of 
environmental support up to 100%, in case the cost of service did not exceed 1000 kroons. 
 
 In 2004 no grants were awarded for advisory support.   The support for inspection services include servi ces concerning veterinary and food control, 
food quality and safety inspection programmes.  
 The programme aimed at supporting the mark eting and promotion services for agricultural 
producers assists the participation in exhibitions a nd trade fairs.  In addition, it involves market 
information gathering and the promotion of the jo int economic activity of farmers.  The programme 
also includes the promotion of brand name Tunnus tatud Eesti Maitse (Certified Estonian Flavour). 
 
 The support for infrastructural services involv es the maintenance of amelioration structures 
aiming at promoting the development of infrastructure in rural areas. 
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 
 Fiscal year 2003 - grants of EEK 170.33 million. 
Fiscal year 2004 – grants of EEK 189.2 million. 
  8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to it. 
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A 
  G/SCM/N/123/EEC/Add.6 
 Page 21 
 
 
B. P UBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES  
1. Period covered by the notification  
  2003; 2004 
 
2. Policy objective and/or purpose of the subsidy
 
 
The programme covers the expenditures for purch asing and storing reserve stocks of grain. 
 
3. Background and authority for the subsidy  
  The Ministry of Agriculture, The Est onian Grain Board (AS Eesti Viljasalv) 
 4. Legislation under which it is granted
 
 
- State Budget Act of 2003; 
- National Stockpiles Act of 23 November, 1994; 
- State Budget Act of 2004. 
 5. Form of the subsidy
 
 
 The establishment, storage and replenishment of the stockpile is financed in accordance of the 
relevant agreements.  6. To whom and how the subsidy is provided
 
 
 The Estonian Grain Board (AS Eesti Viljasalv) enters into an agreement with the producers 
according to the results of a public tender.  7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
 
 Fiscal year 2003 - grants of EEK 9.99 million.  Fiscal year 2004 - grants of EEK 5.2 million.  8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to it.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A 
 
C. D
OMESTIC FOOD AID - SCHOOL MILK SUPPORT  
1. Period covered by the notification  
  2003; 01.01.2004 – 30.04.2004 
 
    G/SCM/N/123/EEC/Add.6 
Page 22 
 
 2. Policy objective and/or purpose of the subsidy
 
  The objective of granting school milk support is to increase the consumption of milk by 
school pupils, to encourage healthy eating habits and thereby promote the consumption of milk and 
milk products. 
 3. Background and authority for the subsidy
 
  The Ministry of Agriculture 
 
4. Legislation under which it is granted
 
  Rural Development and Agricultural Market  Regulation Act of 11 October, 2000; 
Agricultural Development Strategy.  
5. Form of the subsidy
 
  Grants  6. To whom and how the subsidy is provided
 
 
 This support is provided as a state aid measure until the end of school year 2003/2004 for local governments and is used to cover partially the cost of milk or milk products purchased. The milk 
or milk product for the purchase of which school milk support is provided and the requirements for 
the ingredients of the milk or milk products shall be determined by the Govern ment of the Republic or 
by the Minister of Social Affairs. School milk support is paid four times per school year. Rural 
municipality and city governments shall organise th e purchase of milk and milk products on the basis 
of the quantity established per pupil. The procedures shall set out the due date for the submission of 
applications, the quantity of milk or milk prod ucts per pupil to be purchased for the school milk 
support, the rate of the school milk support, the procedure for the registration of the documents 
certifying the purchase thereof, the standard format  for the report on the use of school milk support 
and the due dates for submission thereof, and the proc edure for the review of applications, payment of 
support and exercise of supervision over the use of  school milk support for its intended purpose. 
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
 
 Fiscal year 2003 - grants of EEK 14.53 million. 
Fiscal year 2004 - grants of EEK 3.7 million. 
 8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to it. 
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A 
 
D. S
TRUCTURAL ADJUSTMENT ASSISTANCE PROVIDED THROUGH INVESTMENT AIDS 
1. Period covered by the notification  
  2003; 2004 
  G/SCM/N/123/EEC/Add.6 
 Page 23 
 
 2. Policy objective and/or purpose of the subsidy
 
 
The programme aims at assisting producers by offering financial restructuring aid.   
3. Background and authority for the subsidy
 
  The Ministry of Agriculture, Rural Loans Guarantee Fund, Agricultural and Rural Life 
Crediting Foundation  
4. Legislation under which it is granted
 
 
- State Budget Act of 2003, Agricultural Development Strategy; 
- Rural Development and Agricultural Market  Regulation Act of 21 April, 2004. 
 5. Form of the subsidy
 
 
 Grants, loan guarantees  6. To whom and how the subsidy is provided
 
 
The programme includes assistance for investment s in peripheral areas and has been partly 
financed from the EU budget. The Rural Development Foundatio n supports agriculture and business activities outside the 
capital city by providing security to loans.  The aim of the scheme is to offer additional 
security to bank loans taken by farmers and ru ral entrepreneurs.  The guarantee becomes 
necessary if the collateral offered by the entrepre neur is not sufficient for the loan or if the 
lender wishes to spread the ri sks related to the project.  
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
 
 Fiscal year 2003 - grants and loan guarantees of EEK  399.141 million. 
 Fiscal year 2004 – no loan guarantees were awarded.  8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to it. 
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  E. P
AYMENT UNDER ENVIRONMENTAL PROGRAMMES  
1. Period covered by the notification  
  2003 
Since 2004 the programme has been partly financed from the EU budget. 
 
 
 
                                                     
 
1 Grants include financing of SAPARD (Estonian State Budget – 97.46 mio EEK, EU Budget – 292.2 
mio EEK) G/SCM/N/123/EEC/Add.6 
Page 24 
 
 2. Policy objective and/or purpose of the subsidy
 
 
This support is provided for environmentally friendly and sustainable production methods. 
The support enables the producers to cover the a dditional expenditures of specific conditions 
under environmental programmes.  Also, the schem e of promoting the use of certified seeds is 
a part of this programme.  The aim of the support is to increase the quality of the seeds, which are more resistant to plant diseases and insects.   The supplementary effect of the support 
measure is preventing the spreading of weed seeds, especially wild oats. 
 
3. Background and authority for the subsidy
 
 
 The Ministry of Agriculture 
 
4. Legislation under which it is granted  
 
- Rural Development and Agricultural Market  Regulation Act of 11 October, 2000; 
- Agricultural Development Strategy, Or ganic Farming Act of 11 April, 2001. 
 
5. Form of the subsidy  
 
 Grants 
 
6. To whom and how the subsidy is provided   
 
 The aim of the support is to introduce e nvironmentally friendly production methods and 
increase the share of organic farming in traditional ag riculture that will promote sustainability of the 
environment by restricting the use of fertilizers a nd pesticides in the handling of organic foodstuffs, 
and facilitates the preservation of the natural fertility of the soil, the assurance of biological diversity 
and the continued use of semi-natural grasslands.  Support is granted annually and is calculated on the 
basis of income foregone and additional costs resulti ng from the given actions and the need to provide 
an incentive.  Payments are based on limitations on th e use of fertilizers, plant protection products or 
other inputs.  
 
 The certified seed promotion support compensates part of the extra costs related to higher 
price of the seeds. It does not foresee the producti on growth and the support amount is neither linked 
to production volumes nor to price or income levels .  The requirement is the real use of quality seed. 
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
 
 Fiscal year 2003 - grants of EEK  75.21 million. 
 8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to it. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy  
  N/A 
 
F. P
AYMENT UNDER REGIONAL ASSISTANCE PROGRAMMES  
1. Period covered by the notification  
 
 2003; 2004 
  G/SCM/N/123/EEC/Add.6 
 Page 25 
 
 
2. Policy objective and/or purpose of the subsidy  
 
The aim of liming acid soils is to improve the so il fertility in the regions with low soil acidity.  
 
3. Background and authority for the subsidy  
  The Ministry of Agriculture 4. Legislation under which it is granted
 
 
- Rural Development and Agricultural Market Regulation Act of 11 October, 2000;  
- Agricultural Development Strategy;  
- Rural Development and Agricultural Market  Regulation Act of 21 April, 2004. 
 
5. Form of the subsidy  
 
 Grants 
 
6. To whom and how the subsidy is provided   
  The support is provided to the farmers in the regions with soil acidity less or equal to 
6.0 pHkcl which is determined by the respective soil  research laboratories.  The state covers part of 
the expenses of the farmer in relation to purch asing the liming services from the company determined 
via public tender.  The support does not foresee the production growth and the support amount is 
neither linked to production volumes nor to price or in come levels.  The supplementary effect of the 
support measure is retaining inhabitation in remote  areas with agriculturally poor quality lands. 
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
 
 Fiscal year 2003 - grants of  14.16 million EEK. 
 Fiscal year 2004 – no grants were awarded.  8. Duration of a subsidy and/or any other time limits attached to it
 
 
 No time limits are attached to it. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 
 N/A  
F(a) PAYMENTS MADE ON 85 PER CENT OR LESS OF THE BASE LEVEL OF 
PRODUCTION BEFORE ACC ESSION TO THE EU ON  01.MAY 2004 
1. Period covered by the notification
 
  2003; 01.01.2004 – 30.04.2004 
 
2. Policy objective and/or purpose of the subsidy
 
  The payments made on 85 per cent or less of the base level of production act as supportive measure to ensure the basic reproduction of the sector  and to prevent further growth of unused lands. 
Also, the aim is to maintain inhabitants in remote areas with agriculturally poor quality lands.  It does 
not foresee the production growth and the support am ount paid to the producer is neither linked to 
production volumes nor to price or income levels.    G/SCM/N/123/EEC/Add.6 
Page 26 
 
 3. Background and authority for the subsidy
 
  The Ministry of Agriculture  
4. Legislation under which it is granted
 
 
- Rural Development and Agricultural Market Regulation Act of 11 October, 2000;  
- Agricultural Development Strategy. 
 
5. Form of the subsidy  
  Grants  6. To whom and how the subsidy is provided
  
 
These payments act as supportive measures to ensu re the basic reproduction of the sector and 
to prevent further growth of unused lands.   
 
For the year 2003  
 
The payment made on mutton and lamb meat pr oduction is provided to the producers equally 
according to the number of ewes the producer keeps.  The requirements for receiving the 
support include the requirement to enter ewe in to the Animal Register, ewes have to be 
identified and registered according to the ‘In fectious Animal Disease Control Act’. The 
minimum herd size is 5 ewes of at least a year old.  
 
The payment made on cereal production is provide d to the producers equally according to the 
arable crop area the producer attends, not depe nding on production or crop yield.  There are 
two additional requirements that must be fulfilled in order to receive the support:  (a) the basic 
phytosanitary requirements must be met;  (b ) the producer should not have any state tax 
liabilities.  It does not foresee the production grow th and the support amount is neither linked 
to production volumes nor to price or income levels. 
 
The payment made on growing potatoes, fruit,  vegetables and berries is provided to the 
producers equally according to the arable crop ar ea the producer attends, not depending on 
production or crop yield. The amount of suppor ted level of production does not exceed 85% 
of the base level production. A supplementary effect of the measure is to preserve the 
employment in rural areas. A producer of certa in vegetables and berries (which is determined 
by the Minister of Agriculture) could apply for support. The producer must grow crops on at least 1 hectare of arable land, where the rate of weeds did not exceed 30 per cent. The arable 
field of one sort of vegetables or berries should be at least 0,1 hectares. 
 
For the year 2003 and 2004  
 
The aim of the payment made on milk production is  to preserve the inhabitation in rural areas 
and maintain dairy cow raising as an agricultural activity.  The support is provided to the 
producers equally according to the number of dair y cows the producer keeps notwithstanding 
of the milk production or milk yield. The requirements for receiving the support include the requirement to enter cows into the Animal Regist er, cows have to be identified and must have 
undergone milk performance testing. The subsid y does not foresee the production growth and 
the support amount is neither linked to productio n volumes nor to price or income levels. 
 
 
  G/SCM/N/123/EEC/Add.6 
 Page 27 
 
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
  Fiscal year 2003 - grants of EEK  195.77 million. 
01.01.2004 – 30.05.2004 – grants of EEK 108.3 million 
 8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A 
 
F(b) P
AYMENTS MADE ON 85 PER CENT OR LESS OF THE BASE LEVEL OF PRODUCTION AFTER 
ACCESSION TO THE EU ON 01 MAY  2004 
1. Period covered by the notification  
  1 May 2004 - 31December 2004  
2. Policy objective and/or purpose of the subsidy
 
 
CNDP2 is paid during the transitional period for the progressive introduction of the CAP 
direct payments. 
 
3. Background and authority for the subsidy  
  The Ministry of Agriculture  4. Legislation under which it is granted
 
 
- European Union Common Agricultural Policy Implementation Act of 24 March, 2004;
  
- Commission Decision K(2004) 2301 of 29 June, 2004. 
 5. Form of the subsidy
 
 
 Grants (CNDP for arable crops, certified seed, cattle, ewes)  6. To whom and how the subsidy is provided
 
 
These payments act as supportive measures to ensu re the basic reproduction of the sector and 
to prevent further growth of unused lands, wh ich is also a supplementary effect of the 
measures. 
 
The payment made on arable crops production is  provided to the producers equally according 
to the arable crop area the producer attends, not  depending on production or crop yield.  There 
are additional requirements that must be fulfilled in order to receive the support:  the 
minimum size of eligible field is 0,30 ha; arable  crops has to be sown by June 15, the crop is  
                                                      
2 CNDP – Complementary National Direct Payments G/SCM/N/123/EEC/Add.6 
Page 28 
 
 
maintained until at least the beginning of fl owering under conditions  of normal growth; 
applicant has to keep a field record book; field has to be entered into Agricultural Support and 
Agricultural Parcel Register. 
 
It does not foresee the production growth a nd the support amount is neither linked to 
production volumes nor to price or income levels. 
 
The certified seed promotion support compensates part of the extra costs related to higher 
price of the seeds. The requirement is the real use of quality seed. Requirements that must be 
fulfilled in order to receive support: the minimum si ze of eligible field is 0,30 ha; the field has 
to be field inspected for certification of the seed by September 20; applicant has to keep a 
field record book; field has to be entered into  Agricultural Support and Agricultural Parcel 
Register. 
It does not foresee the production growth a nd the support amount is neither linked to 
production volumes nor to price or income levels.   
 
The support for cattle raising (exc l. dairy cows covered by app lications of dairy cow support 
in 2004) is provided to the producers equally acco rding to the number of animals the producer 
keeps. The requirements for receiving the suppor t include the requirement to enter bovine 
animals into the Animal Register, have to be  identified and registered according to the 
‘Infectious Animal Disease Control Act’.  
The support amount is neither linked to pr oduction volumes nor to  price or income 
levels.  
The payment made on mutton and lamb meat pr oduction is provided to the producers equally 
according to the number of ewes the producer keeps.  The requirements for receiving the 
support include the requirement to enter ewes into the Animal Register, ewes have to be 
identified and registered according to the ‘In fectious Animal Disease Control Act’. The 
minimum herd size is 10 ewes of at least a year old.  
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
 
 Fiscal year 1 May – 31 December 2004 - grants of EEK 86.3 million. 
 8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
N/A 
 
G. INSURANCE SUPPORT 
1. Period covered by the notification  
 
 2003; 2004     
  G/SCM/N/123/EEC/Add.6 
 Page 29 
 
 2. Policy objective and/or purpose of the subsidy
 
 
The aim of the support measure is to facilitate the insurance for agricultural crops, productive 
animals or fisheries against natural disasters a nd to motivate the producers to take a larger 
share of responsibility in case of a possible damage. 
 3. Background and authority for the subsidy
 
  The Ministry of Agriculture 
 
4. Legislation under which it is granted
 
 
- Rural Development and Agricultural Market Regulation Act of 11 October, 2000;  
- Agricultural Development Strategy;  
- Rural Development and Agricultural Market  Regulation Act of 21 April, 2004. 
 
5. Form of the subsidy  
  Grants up to 40 percent of the insurance payment.  
 
6. To whom and how the subsidy is provided
  
 
The support is provided to the agricultural pr oducers who, as a precautionary measure, have 
concluded an insurance contract for agricultura l crops, productive animals or fisheries against 
natural disasters.  The requirement for receiving the support is that the payments are made correctly and on time. 
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
 
 Fiscal year 2003 - grants of EEK  0.41 million were awarded. 
 Fiscal year 2004 – no grants were awarded. 
 8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it.  
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A 
 
H. I NTEREST SUBSIDY FOR AGRICULTURAL LOANS  
1. Period covered by the notification  
 
 2003; 2004 
 
2. Policy objective and/or purpose of the subsidy  
 
The state aid acts as financial assistance used  as partial compensation for interest on a long-
term loan (with a term of repayment longer th an one year) or payments for a capital lease 
taken by an agricultural producer to invest in the development of agricultural production or by 
a fish farmer to make an investment in the deve lopment of fish farming.  It is paid during the 
calendar year preceding application for the interest support. 
 G/SCM/N/123/EEC/Add.6 
Page 30 
 
 3. Background and authority for the subsidy
 
  The Ministry of Agriculture  
4. Legislation under which it is granted
 
 
- Rural Development and Agricultural Market  Regulation Act of 11 October, 2000; 
- Agricultural Development Strategy; 
- Rural Development and Agricultural Market  Regulation Act of 21 April, 2004. 
5. Form of the subsidy  
  Grants up to ten percentage points of the interest rate.  6. To whom and how the subsidy is provided
  
 
Interest support is provided to agricultural producers who have used a loan to purchase, 
construct or reconstruct tangible assets necessar y to develop the production of agricultural 
produce or who have entered into a capital lease contract (lease) for the use and purchase of tangible assets necessary to develop the production of agricultural produce.  
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
  Fiscal year 2003 - grants of EEK 13.12 million.  Fiscal year 2004 – no grants were awarded. 
 
8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A  
I. SUPPORT FOR SUCKLER COW RAISING 
1. Period covered by the notification
 
 
 2003  (since 01May 2004 the programme h as been integrated into CAP3) 
 2. Policy objective and/or purpose of the subsidy
 
  This support is provided as a state aid measure for beef breed cattle raising. The aim of the 
support is to introduce new production branch as an  alternative for milk production and assist the 
producers in transition from dairy cow raising to b eef breed cattle raising in order to diversify 
production in the grasslands. A supplementary effect of the measure is to preserve the employment in 
rural areas and to prevent further growth of the area of unused lands. The support amount is neither 
linked to production volumes nor to price or income levels. 
 
   
                                                     
 
3 CAP – Common Agricultural Policy  G/SCM/N/123/EEC/Add.6 
 Page 31 
 
 3. Background and authority for the subsidy
 
  The Ministry of Agriculture  
4. Legislation under which it is granted
 
 
- Rural Development and Agricultural Market  Regulation Act of 11 October, 2000; 
- Agricultural Development Strategy. 
 
5. Form of the subsidy  
  Grants  6. To whom and how the subsidy is provided
 
 
 The support is provided to the producers equa lly according to the number of female animals 
for at least eight months old. The requirements for receiving the support include the requirement to enter suckler cows into the Anim al Register, suckler cows have to be identified and registered 
according to the ‘Infectious Animal Disease Control Act’. 
 
7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy   
  Fiscal year 2003 - grants of EEK 4.0 million.  
8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 N/A 
 
J. SUPPORT FOR YOUNG BOVINE  AND BEEF ANIMAL RAISING 
1. Period covered by the notification  
 
 2003 (since 01.05.2004 the programme has been integrated into CAP) 
 2. Policy objective and/or purpose of the subsidy
 
  Support is provided as a state aid measure for young male bovine animal raising. The aim of the support is to introduce a new production branch as an alternative for milk production. A 
supplementary effect of the measure is to main tain the employment in rural areas and to prevent 
further growth of the area of unused lands. The support amount is not linked to production volumes 
nor to price or income levels.  3. Background and authority for the subsidy
 
 
 The Ministry of Agriculture    
 G/SCM/N/123/EEC/Add.6 
Page 32 
 
 4. Legislation under which it is granted
 
 - Rural Development and Agricultural Market  Regulation Act of 11 October, 2000; 
- Agricultural Development Strategy. 
 
5. Form of the subsidy
 
  Grants  
6. To whom and how the subsidy is provided
  
 
 The support for young bovine and beef animal raising can be applied by an agricultural 
producer for at least seven months old bulls or st eers. The applicant can apply this support for up to 
90 animals in a year, only once during the lifetime of  that animal. The requirements for receiving the 
support include the requirement to enter bovine an imals into the Animal Register, bovine animals 
have to be identified and registered according to  the ‘Infectious Animal Disease Control Act’. 
 7. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 
 Fiscal year 2003 - grants of EEK 28.6 million. 
 8. Duration of a subsidy and/or any other time limits attached to it
 
  No time limits are attached to it. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N/A  
__________