. /.   WORLD TRADE  
ORGANIZATION  G/SCM/Q2/TUR/19 
5 February 2008 
 (08-0533) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
  
SUBSIDIES 
 
Questions Posed by the UNITED STATES
 
Regarding the New and Full Notification of TURKEY1 
   The following communication, dated 28 January 2 008, is being circulated at the request of the 
Delegation of the United States.   
 
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1 G/SCM/N/155/TUR.   G/SCM/Q2/TUR/19 
Page 2  
 
  I. INVESTMENT ENCOURAGEMENT IN TURKEY 
 
A. E
NCOURAGING INVESTMENTS IN TURKEY  
The Investment Encouragement Programme (I EP);  Application Procedure to Obtain 
an Investment Encouragement Certificate 
 
 According to the notification, IEP investors must first apply for and qualify to receive an 
investment encouragement certificate, and are grante d the certificate after an evaluation and analysis 
of each project proposal.  Other than the administra tive requirements described in the notification, 
what criteria or conditions must the investor me et in order to qualify for the certificate?  Please 
confirm that eligibility is not contingent upon  exportation or use of domestic inputs?   
 
II. EXPORT SUBSIDY PROGRAMME FOR AGRICULTURAL PRODUCTS  
 
 According to the notification, this is an e xport subsidy program to develop Turkey's export 
potential in processed agricultural products.  Produ cers/exporters receive a deduction of debts to 
public corporations (taxes, social insurance prem ium costs, energy costs, telecommunication costs) 
from their subsidy entitlement, calculated on the basis of fixed amount per unit.  What are the specific 
export performance requirements that producers must m eet to receive benefits under this program?   
 
 According to the Report of the Secretariat on the recent Trade Policy Review of Turkey 
(WT/TPR/S/192, 5 November 2007) ("TPR Report"), at section III(3)(v), pp.61-62, paras. 101-106, 
there are various types of incentives available to companies operating in Turkey's 20 free zones.  
These include, inter alia , exemptions from income, corporate a nd value-added taxes, and exemptions 
from customs duties and fees, as well as attractive term s for rental of facilities.  Furthermore, the TPR 
Report at section III(4)(i), p.63, para.112, notes that Turkey has nine state aid programs, some of 
which are only for SMEs, that may be contingent upon exportation.   
  Please explain the eligibility criteria for receiving benefits under these programs, why the programs were not notified and how they are c onsistent with Turkey's Subsidy Agreement 
obligations?    
According to the TPR Report at section III(4)(i),  p.63, paras.113-114, Turkey has numerous 
organized industrial zones and small-scale industr ial estates which enjoy various incentives such as 
subsidized credit.  Furthermore, the TPR Report at section III(4)(i), p.65, para.116, indicates that 
Turkey provides certain other incentives under the Technology Development Zones Law (No. 4691), 
which promote the use of high/advanced technologi es and the development/production of technology 
or software.  Among the incentives are income and corporation tax exemptions.   
   
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