WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/MKD 
18 June 2012 
 (12-3218) 
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 
 
THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA 
   The following communication, dated 29 May 2012, is being circulated at the request of the 
Delegation of the Former Y ugoslav Republic of Macedonia. 
 
_______________ 
 
  This notification has been drawn up on the basis of the data supplied by the authorities and 
institutions in charge of the state aid and is re lated on programmes financed by the State Budget for 
2010.  The notification covers programmes in the following categories:  textile industry, cluster 
association, competitiveness programmes, tourism and regional state aid. The information provided in 
this notification is for transparency purposes.  The amount of aid is shown in Macedonian Denars 
(MKD). 
 
I. TEXTILE INDUSTRY 
 
1. Title of the subsidy programme , if relevant, or brief descri ption or identification of the 
subsidy 
 
"Programme for Support of Textile Industry  in the Republic of Macedonia for 2010".  
 2. Period covered by the notification 
  2010. 
 
3. Policy objective and / or purpose of the subsidy 
  The support is given for:  
  1.1 Market development;  
  1.2 Commercial infrastructure;   1.3 Technological development;  and   1.4 Development of human resources   G/SCM/N/220/MKD 
Page 2  
 
  4. Background and authority for the subsidy (inclu ding identification of the legislation under 
which it is granted) 
 
Programme for Support of Textile Industry in  the Republic of Macedonia for 2010, published 
in the Official Gazette of the Republic of Macedonia No. 20/2010 and 134/2010.  Authority 
responsible for the subsidy:  Ministry of Economy. 
 5. Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
  The subsidy is granted in the form of grant. 
 
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how 
determined) 
 
 The support is given in the form of compensati on of a part of the expenses of the companies - 
applicants. The Ministry of Economy compensates  75 per cent of the evidenced expenses of the 
companies, but not more than 180.000 MKD for each company for items 1.1 and 1.2 of the Programme, and for items 1.3 and 1.4 no more than 150.000 MKD for each company. 
 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 subsid y information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation 
 
The annual amount budgeted for the subsidy is 1.020.000 MKD allocated by items:   
  
  1.1 Market development – 360.000 MKD;    1.2 Commercial infrastructure – 180.000 MKD;   1.3 Technological development – 330.000 MKD;  and   1.4 Development of human resources – 150.000 MKD 
   
8. Duration of the subsidy and/or any other tim e limits attached to it, including date of 
inception/commencement 
 
 One year – 2010.   
9. Statistical data 
 
 Such statistical data on trade effects of the Programme for Support of Textile Industry in the 
Republic of Macedonia is not available. The subsid y is given mostly to small and medium sized 
companies and there is a very small effect on trade.  II. CLUSTER ASSOCIATION  
1. Title of the subsidy programme , if relevant, or brief descri ption or identification of the 
subsidy 
  
"Programme for Support and Development of Cluster Association in the Republic of 
Macedonia"    G/SCM/N/220/MKD 
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  2. Period covered by the notification 
 
 2010.  3. Policy objective and/or purpose of the subsidy 
  The purpose of the subsidy is to strengthen the leadership of clusters and cluster management 
as well as implementation of projects proposed by the cluster associations aimed at developing a 
common product of members in the cluste r and networking internationally.   
   
4. Background and authority for the subsidy (inclu ding identification of the legislation under 
which it is granted) 
 
Programme for Support and Development of Cluster Association in the Republic of 
Macedonia, published in the Official Gazette of the Republic of Macedonia No. 20/2010 and 
134/2010.  Authority responsible for the subsidy:  Ministry of Economy. 
 5. Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
  The subsidy is granted in the form of grant.  
6. To whom and how the subsidy is provided (w hether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fl uctuating amount per unit;  if the latter, how it 
is determined) 
 
 The support is given for: 
 
  1.1 Developing the guide to clusters;    1.2 Organizing seminars to ra ise awareness about clustering; 
  1.3 Support of cluster associations projects.  
  For items 1.1 and 1.2 of the Programme a public procurement procedure was conducted for 
selection of consultants for the implementation of planned activities under the programme.  For 
item 1.3 the support is given in the form of compen sation of a part of the expenses of the clusters 
associations - applicants.  The Ministry of Ec onomy compensates 75 per cent of the evidenced 
expenses of the companies, but no more than 600.000 MKD.  
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 subsid y information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation 
 
The annual amount budgeted for the subsidy is 2.500.000 MKD allocated by items:   
 
  1.1 Developing the guide to clusters – 300.000 MKD;    1.2 Organizing seminars to raise aw areness about clustering – 300.000 MKD; 
  1.3 Support of cluster associations projects – 1.900.000 MKD.  
 
8. Duration of the subsidy and/or any other tim e limits attached to it, including date of 
inception/commencement 
 
 One year – 2010.   G/SCM/N/220/MKD 
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  9. Statistical data 
 
 Statistical data on trade effects of the Progr amme for Support and Development of Cluster 
Association in the Republic of Macedonia is not availa ble.  The subsidy is given mostly to small and 
medium sized companies and there is a very small effect on trade. 
 
III. COMPETITIVENNESS PROGRAMMES 
 
1. Title of the subsidy programme , if relevant, or brief descri ption or identification of the 
subsidy 
  
"Programme for Improvement of the Competitiveness of the Macedonian Products and 
Services in 2010".   2. Period covered by the notification 
  2010.  3. Policy objective and / or purpose of the subsidy 
  The objective of the subsidy is to incr ease the competitiveness of the Macedonian economy 
through support of enterprises, to accelerate the intr oduction of the international standards, to increase 
the capability for innovation of the companies, bett er flexibility and cooperation with the research 
institutions.  4. Background and authority for the subsidy (inclu ding identification of the legislation under 
which it is granted) 
 
The Programme for Improvement of the Comp etitiveness of the Macedonian Products and 
Services in 2010, published in the Official G azette of the Republic of Macedonia No. 20/2010 and 
134/2010.  Authority responsible for the subsidy: Ministry of Economy.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
 
 The subsidy is granted in the form of grant.  6. To whom and how the subsidy is provided (w hether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how it 
is determined) 
 
 1. The support is given in the form of co mpensation of a part of the expenses of the 
private companies for: 
 
  1.1 Certification of quality systems ISO standards; 
  1.2 Training on HACCP team introductio n and maintenance and modification of 
the HACCP system; 
  1.3 Developed idea solution for industria l design of product placed on the market 
in the last three years;  
  1.4 Submission of an international a pplication for patent, or a request for 
substantive examination of the application. 
  G/SCM/N/220/MKD 
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   2. Contractual services and other current expenditure: 
   2.1 Organizing and participation in wo rkshops and round tables in the Republic 
of Macedonia; 
  2. 2 Presentation of individual industria l branches in the national joint stand at 
certain fairs abroad. 
  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 subsid y information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation 
 
The annual amount budgeted for the subsidy is:  5.596.000 MKD.   
1. Support to private companies – 2.260.000 MKD allocated by items: 
 
 1.1 Certification of quality systems ISO standards – 1.500.000 MKD. 
 
 The Ministry of Economy compensates 50 per cen t of the evidenced e xpenses separately per 
each company, but not more than 60.000 MKD.  
  1.2 Training on HACCP team introductio n and maintenance and modification of 
the HACCP system – 400.000 MKD. 
  The Ministry of Economy is granting financial s upport for training up to three persons of the 
company, where for any trained person will be aw arded to 20.000 MKD or, in total for one company 
not more than 60.000 MKD. 
   1.3 Developed idea solution for industria l design of product placed on the market 
in the last three years – 180.000 MKD. 
  The Ministry of Economy compensates 50 per cen t of the evidenced e xpenses separately per 
each company, but not more than 30.000 MKD. 
   1.4 Submission of an international a pplication for patent, or a request for 
substantive examination of the application – 180.000 MKD. 
 
 The Ministry of Economy compensates 50 per cen t of the evidenced e xpenses separately per 
each company, but not more than 60.000 MKD.   2. Contractual services and other current  expenditure – 3.336.000 MKD allocated by 
items:  
 
  2.1 Organizing and participation in wo rkshops and round tables in the Republic 
of Macedonia – 400.000 MKD. 
  The Ministry of Economy covers all expenses ma de for rental of space, necessary equipment 
and materials, hiring teachers and translators, and other current expenditure. 
 
  2. 2 Presentation of individual industria l branches in the national joint stand at 
certain fairs abroad – 2.936.000 MKD. 
 G/SCM/N/220/MKD 
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   The Ministry of Economy covers all expenses ma de for rental of space, registration fees, and 
entry in fair catalogue.  8. Duration of the subsidy and/or any other tim e limits attached to it, including date of 
inception/commencement 
 
 One year, 2010.   9. Statistical data 
 
 Such statistical data on trade effects of the Programme for Improvement of the 
Competitiveness of the Macedonian Products a nd Services in 2010 is not available.  
  1. Title of the subsidy programme , if relevant, or brief descri ption or identification of the 
subsidy  
 
Macedonian Bank for Development Promotion Loan  for Small and Medium-sized Enterprises 
and Priority Projects (Credit line with European Investment Bank).  2. Period covered by the notification 
  2010.  3. Policy objective and / or purpose of the subsidy 
 
 The purpose of the subsidy is to enhance comp etitive advantage and creation of new jobs at 
the small and medium-sized enterprises and priority projects.      4. Background and authority for the subsidy (inclu ding identification of the legislation under 
which it is granted) 
 
Law on Macedonian Bank for Development Promoti on, published in the Official Gazette of 
the Republic of Macedonia No. 105/2009.  Authority responsible for the subsidy:  Macedonian Bank 
for Development Promotion.   5. Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
  The subsidy is granted in the form of interest rate.  6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;  
through what mechanism; whether a fixed or fl uctuating amount per unit;  if the latter, how it 
is determined) 
  
 Financial support for small and medium-sized enterprises and priority projects: loan on 
existing and new small and medium-sized enterprises;   loan for export oriented production – interest 
rate subsidies.  
 From this credit line, 234 SMEs were suppor ted and 1.648 new jobs were created.  The 
majority of the loans (45,26 per cent) were in the production industry.  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  G/SCM/N/220/MKD 
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  year).  Where provision of per unit subsid y information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation 
 
The amount budgeted for the subsidy is:  Interest rate subsidies  –  18.054.440 MKD.  
  
8. Duration of the subsidy and/or any other tim e limits attached to it, including date of 
inception/commencement 
 
 2010. 
  
9. Statistical data 
  Such statistical data on trade effects is not available. 
 
 1. Title of the subsidy programme , if relevant, or brief descri ption or identification of the 
subsidy 
  
"Law on Employing and Assurance in the Case of Unemployment" and "Law on Employing 
Invalid Persons"  
 
2. Period covered by the notification 
  2010.  
3. Policy objective and / or purpose of the subsidy 
 
 State aid is granted in order to remove di fficulties in the domestic economy through active 
measures of the employment policy:  employin g unemployed persons;  training, professional 
qualification and re-qualification of unemployed persons and their access to the labour market; 
creation of new jobs for the persons  having difficulties to find a job. 
    
4. Background and authority for the subsidy (inclu ding identification of the legislation under 
which it is granted) 
 
 1. Law on Employing and Assurance in th e Case of Unemployment, published in the 
Official Gazette of the Republic of Macedonia No. 39/97, 25/00, 101/00, 50/01, 
25/03, 37/04, 4/05, 50/06, 29/07, 102/08 and 161/08; and bylaw Rulebook on 
training, requalification of unemployed pe rsons and other pers ons, published in the 
Official Gazette of the Republic of Macedonia No. 30/2001.  
  2. Law on Employing Invalid Persons, published in the Official Gazette of the Republic 
of Macedonia No. 44/00, 16/04, 62/05, 113/05 and 29/07; and bylaw Rulebook on 
resources granting by the Specific Fund for providing conditions employing invalid 
persons, published in the Official Gazette of the Republic of Macedonia No. 34/2004.  
 Authorities responsible for the subsidy: Minist ry of Labour and Social Policy- Employment 
Agency of the Republic of Macedonia. 
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
  The subsidy is granted in the form of grant. G/SCM/N/220/MKD 
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6. To whom and how the subsidy is provided (w hether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how it 
is determined) 
 
 The subsidy is provided through the Employme nt Agency of the Republic of Macedonia.  
  The support is given in the form of financial aid for training, qualifica tion and re-qualification 
to unemployed persons, while the support for the employ er is in the form of participation in the cost 
of the expenses for implementing and conducting training, for the period of three months.  
 
 The support for employing of unemployed invalid  persons is given to the employer as a single 
grant.  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 subsid y information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation 
 
 The annual amount budgeted for the subsidy is 171.590.325 MKD allocated by items:  
 1.1 training, qualification and requalifica tion of unemployed persons – 5.213.320 MKD 
 
 1.2 employing of unemployed invalid persons – 166.377.005 MKD     8. Duration of the subsidy and/or any other tim e limits attached to it, including date of 
inception/commencement 
 
 The terms are specified in the Law on Employing and Assurance in the Case of Unemployment and Law on Employing Invalid Persons.   9. Statistical data 
  It is considered that the trade effects are minimal in view of the purpose of the subsidy. 
 
 
IV TOURISM 
 1. Title of the subsidy programme , if relevant, or brief descri ption or identification of the 
subsidy 
  
"Programme for Development of Touris m in the Republic of Macedonia"  
 
2. Period covered by the notification 
 
 2010.  3. Policy objective and / or purpose of the subsidy 
  The purpose of the subsidy is to encourage th e development of tourism in the Republic of 
Macedonia, to attract more foreign tourists in the country subsidizing organized foreign tourist 
turnover.   G/SCM/N/220/MKD 
 Page 9 
 
 
  4. Background and authority for the subsidy (inclu ding identification of the legislation under 
which it is granted) 
 
Programme for Development of Tourism in th e Republic of Macedonia, published in the 
Official Gazette No. 23/2010 and 141/2010.  Author ity responsible for the subsidy: Ministry of 
Economy. 
 5. Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
  The subsidy is granted in the form of grant. 
 
6. To whom and how the subsidy is provided (w hether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fl uctuating amount per unit;  if the latter, how it 
is determined) 
 
 The support is given to the tour operators a nd touristic agencies offering complete touristic 
package arrangements for foreign tourists visiting the Republic of Macedonia in accordance with the 
Guidelines on subsiding organized foreign tourist tur nover, published in the Official Gazette of the 
Republic of Macedonia 21/2010 and 2/2011.   1. The subsidy is given for programmes act ivities stipulated in the Guidelines for: 
 
  1.1 bus transfer (advance leasable bus ) - 10 to 20 EUR,  depending of the 
country; 
  1.2 air transfer - 25 to 65 EUR, depending of the country destination;   1.3 charter transfer - 25 to 65 EUR, depending of the country destination; 
  1.4 rail transfer  - 15 EUR;  
  1.5 combine transfer - 10 to15 EUR;    1.6 round group tours - 15 EUR.   The subsidies for all above items are granted by bringing tourists into the Republic of 
Macedonia and in MKD counter value.  
 
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 subsid y information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation 
 
The annual amount budgeted for the subsidy is 16.915.000 MKD.  
 8. Duration of the subsidy and/or any other tim e limits attached to it, including date of 
inception/commencement 
 
 2010.  
  9. Statistical data 
  Statistical data on trade effects of the Pr ogramme for Development of Tourism in the 
Republic of Macedonia is not available.  
 
 G/SCM/N/220/MKD 
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  V. REGIONAL STATE AID 
 
1. Title of the subsidy programme , if relevant, or brief descri ption or identification of the 
subsidy 
  
"Law on T echnological Industrial Development Zones”,  published in the Official Gazette 
of the Republic of Macedonia No. 14/07, 103/08, 130/08 and 139/09. 
 2. Period covered by the notification 
  2010. 
 
3. Policy objective and / or purpose of the subsidy 
  The purpose of the subsidy is to accelerat e regional development supporting production 
investments and creation of the new jobs through investments.   
 
4. Background and authority for the subsidy (inclu ding identification of the legislation under 
which it is granted) 
 
 The Agency for Foreign Investments and Ex port Promotion of the Republic of Macedonia 
concludes a contract, which specifies the state aid gran ted to the user of the zone, pursuant to the Law 
on Technological Industrial Development Zones, publishe d in the Official Gazette of the Republic of 
Macedonia No. 14/07, 103/08, 130/08 and 139/09, Law on State Aid, published in the Official 
Gazette of the Republic of Macedonia No. 24/03, 70/06 and 55/07 and Decree Determining the 
Conditions and Procedure for Regional Aid, published in the Official Gazette of the Republic of 
Macedonia No. 81/03.   
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
 
 The subsidy is granted in the form of  grants, tax exemptions and relieves. 
 6. To whom and how the subsidy is provided (w hether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how 
determined) 
 
 The maximum intensity of regional aid is determ ined up to 50 per cent of eligible investment 
expenditures or the expenditures for the newly created  jobs in the period of two years. The maximum 
intensity for small-sized enterprises is up to 70  per cent and up to 60 per cent for medium-sized 
enterprises.   
  
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 subsid y information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation 
 
 The annual amount budgeted for the subsidy is:  91.008.569 MKD.   8. Duration of the subsidy and/or any other tim e limits attached to it, including date of 
inception/commencement 
 
 The terms are specified in the Law on Technological Industrial Development Zones.     G/SCM/N/220/MKD 
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  9. Statistical data 
 
 Such statistical data on trade effects is not available.   
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