WORLD TRADE  
ORGANIZATION   
G/AG/N/CRI/39 
19 April 2012 
 (12-2081) 
Committee on Agriculture Original: Spanish 
  
 
NOTIFICATION 
 
  The following submission, dated 29 March 2012, is  being circulated at the request of the 
delegation of Costa Rica .  The notification concerns new domestic support measures exempt from 
reduction ( Table DS:2 ). 
 G/AG/N/CRI/39 
Page 2  
 
  Table DS:2 
  
DOMESTIC SUPPORT:  Costa Rica 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
 (1) Full title of measure:   Training and information in the context of the Sustainable 
Agricultural Production Promotion Programme (PFPAS).  
 
(2) Domestic legislation reference:  
 
Law No. 8408 approving Loan Contract No. 1436/OC-CR between the Republic of Costa Rica and the Inter-Ameri can Development Bank - Sustainable Agricultural Production 
Promotion Programme, published in Official Journal La Gaceta  No. 81 of 27 April 2004.  
Annex A, paragraph 2.04, of the said Law. 
 
(3) Detailed description of measure with reference to criteria: 
 
The Sustainable Agricultural Production Promo tion Programme (PFPAS) includes a training 
and information component the objectives of which are threefold:  (i) to build the capacity of 
organizations of small and me dium-sized producers, organiza tions of female agricultural 
producers, and rural youth so that these groups  can operate as enterprises and gradually move 
away from technical assistan ce from the government;  (ii) to train advisors from the 
Ministry of Agriculture and Livestock (MAG) , organizations of sm all and medium-sized 
producers and service suppliers (induction courses only for the latter) to deal with the new 
demands of the above-mentioned organizations in non-traditional areas and with respect to 
competitiveness;  and (iii) to adapt the agri cultural information system (INFOAGRO) by 
connecting the central system to all Agricultura l Service Agency (ASA) networks to ensure 
that producers have access to the necessary in formation for their individual operations. 
 
The programme conforms to the general criteri a set out in paragraph 1 of Annex 2 to the 
Agreement on Agriculture given that the support is provided through a publicly funded government programme not involving transfers fro m consumers and does not have the effect 
of providing price support to producers. 
 
The programme also meets the po licy-specific criteria under paragr aph 2(d) of Annex 2 to the 
Agreement on Agriculture regarding extension and advisory services. 
 (4) Cost of measure:  Funding is from the regular Ministry of Agriculture and Livestock (MAG) 
budget. 
 
(5) Date of entry into effect:  2010. 
 (6) Period of application:  Indefinite.
 
 
(7) Products to principally benefit (if any individual product(s)):  No individual product.  G/AG/N/CRI/39 
 Page 3 
 
 
  Table DS:2 
  
DOMESTIC SUPPORT:  Costa Rica 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
 (1) Full title of measure:   Recognition of the environmental be nefits of Sustainable Agricultural 
Production Promotion Programme (PFPAS) projects. 
 
(2) Domestic legislation reference: 
 
Law No. 8408 approving Loan Contract No. 1436/OC-CR between the Republic of Costa Rica and the Inter-Ameri can Development Bank - Sustainable Agricultural Production 
Promotion Programme, published in Official Journal La Gaceta  No. 81 of 27 April 2004.  
Annex A, paragraph 2.04, of the said Law.  
 
(3) Detailed description of measure with reference to criteria: 
 
 The measure provides for recognition of the envi ronmental benefits generated by Sustainable 
Agricultural Production Promotion Programme (PFP AS) projects.  The in centive granted will 
represent a minimum of twenty per cent (20 per cent) of the investment costs (excluding labour) of each farmer for all the approved projects.  In the case of projects that require greater investment in specific environm ental protection works (gully erosion control, 
inter alia ), the cost of such works may be recogni sed, provided that the total costs recognised 
do not exceed thirty per cent (30 per cent) of the investment in the farm.  In neither instance 
will the incentive exceed US$2,200 per producer. 
 
The programme conforms to the general criteri a set out in paragraph 1 of Annex 2 to the 
Agreement on Agriculture given that the support is provided through a publicly funded government programme not involving transfers fro m consumers and does not have the effect 
of providing price support to producers. 
 
The programme also meets the policy-specific criteria under paragraph 12 of Annex 2 to the 
Agreement on Agriculture regarding paym ents under environmental programmes. 
 
(4) Cost of measure:  Funding for this measure comes from 0.1 per cent of the annual revenue 
from the single tax on fuel, as provided for in Article 38 of Law No. 8591.  
 (5) Date of entry into effect:   2010.  
(6) Period of application:   Indefinite.  
 
(7) Products to principally benefit (if any individual product(s)):   No individual product. G/AG/N/CRI/39 
Page 4  
 
  Table DS:2 
  
DOMESTIC SUPPORT:  Costa Rica 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction 
 
 (1) Full title of measure:   Recognition of the environmental benefits of organic farming for 
micro, small and medium-sized organic producers. 
 
(2) Domestic legislation reference: 
 
Law No. 8591 on the development, promotion a nd support of organic farming, published in 
Official Journal La Gaceta  No. 155 of 14 August 2007; 
 
Executive Decree No. 35242-MAG-H-MEIC:  Impl ementing Regulations for Law No. 8591 
on the development, promotion and support of or ganic farming, published in Official Journal 
La Gaceta  No. 107 of 4 June 2009; 
 
Executive Decree No. 36472-MAG-H-MEIC ame nding the Implementing Regulations for 
Law No. 8591 on the development, promotion a nd support of organic farming, published in 
Official Journal La Gaceta  No. 59 of 24 March 2010. 
(3) Detailed description of measure with reference to criteria: 
 The measure provides for recognition of the envi ronmental benefits of organic farming by 
means of a direct payment to the producer.  Su ch payments will be granted for a maximum of 
three years and consist of a basic annual am ount per producer, to be determined by the 
technical unit established in Law No. 8591 a nd legalized by an agreement signed by the 
Ministry of Agriculture and Livestock and the organic producer.  Eligible producers are those 
classified as micro, small and medium-sized organic producers. 
  The programme conforms to the general criteri a set out in paragraph 1 of Annex 2 to the 
Agreement on Agriculture given that: 
 
(a) The support is provided through a publicly funded government programme not 
involving transfers from consumers;  and 
 
(b) The programme does not have the effect of providing price support to producers. 
 
The programme also meets the policy-specific criteria under paragraph 12 of Annex 2 to the 
Agreement on Agriculture regarding paym ents under environmental programmes. 
 
(4) Cost of measure:  Funding for this measure comes from 0.1 per cent of the annual revenue 
from the single tax on fuel, as provided for in Article 38 of Law No. 8591. 
(5) Date of entry into effect:  2010.  
 (6) Period of application:   Indefinite.  
 
(7) Products to principally benefit (if any individual product(s)):   Agricultural products 
certified as organic.  G/AG/N/CRI/39 
 Page 5 
 
 
  Table DS:2 
  
DOMESTIC SUPPORT:  Costa Rica 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
 (1) Full title of measure:   Temporary unemployment subsidy programme for small agricultural 
producers adversely affected by national emergency situations. 
 
(2) Domestic legislation reference:  
 
 No legislation reference for this specific programme.  Measure administered by the 
Ministry of Labour and Social Security (MTSS) and the Ministry of Agriculture and Livestock (MAG); 
 
 Executive Decree No. 36252-MP of 4 November 2010 declaring a state of national 
emergency in relation to the situation caused  by storm conditions and the passage of a 
low pressure system associated with the i ndirect effects of tropical storm Thomas, 
published in Official Journal La Gaceta  No. 218 of 10 November 2010. 
 
(3) Detailed description of measure with reference to criteria: 
 
The temporary programme seeks to help revitali ze the agricultural sector in the geographical 
areas affected by the national emergency decl ared in Executive Decree No. 36252-MP by 
granting temporary unemployment subsidies to  small agricultural producers who suffer major 
losses in their production activities that significantly affect their short-term income. 
 
The programme is designed to benefit up to a total of 5,555 farmers who will receive a 
monthly subsidy of ₡180,000 (one hundred and eighty th ousand colons) during a three-month 
period.  This amount is determined using the minimum wage of an ag ricultural worker as a 
reference ( ₡187,043.22 for 2010). 
 
The measure conforms to the general criteria set out in paragraph 2 of Annex 2 to the 
Agreement on Agriculture given that: 
 
(a) The support is provided through a publicly funded government programme not 
involving transfers from consumers;  and 
 
(b) The programme does not have the effect of providing price support to producers. 
 
The measure also conforms to the general crite ria set out in paragraph 6 of Annex 2 to the 
Agreement on Agriculture regarding decoupled income support given that it is granted in 
accordance with clearly defined criteria, such as income (minimum wage of an agricultural 
worker) and status as a producer (small producers).  Furthermore, the amount of the payments is not related to the type or volume of production undertaken by the producer in any subsequent year.  Neither is it related to, or based on, the prices, domestic or international, 
applying to any production undertaken in any s ubsequent year, and no production is required 
in order to receive such payments. 
 G/AG/N/CRI/39 
Page 6  
 
  (4) Cost of measure:  ₡3 billion (US$5,705,265.96 at the av erage exchange rate for the year 
of ₡525.83 to US$1, according to the Central Bank of Costa Rica). 
 (5) Date of entry into effect:  November 2010.  
 
(6) Period of application:  Three months.  
 (7) Products to principally benefit (if any individual product(s)):  No individual product;  the 
measure is generally available to agricu ltural producers in the affected region. 
 
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