WORLD TRADE  
ORGANIZATION  G/AG/N/MEX/14 
27 March 2007 
 
 (07-1267) 
Committee on Agriculture Original:   Spanish 
  
 
NOTIFICATION 
 
  The following submission, dated 21 March 2007, is being circulated at the request of the 
delegation of Mexico .  The notification concerns new or m odified domestic support measures exempt 
from reduction ( Table DS:2 ). G/AG/N/MEX/14 
Page 2  
 
  Table DS:2 
 
 
DOMESTIC SUPPORT:  Mexico 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
 
1. Full title of measure: 
 
 Temporary Employment Programme.  
2. Domestic legislation reference: 
 
Agricultural and Rural Development Programme 1995-2000.  
 
3. Detailed description of measure with referen ce to the criteria established, respectively 
(in Annex 2): 
 
Regional assistance programmes (paragraph 13 of Annex 2). 
 
This programme is intended to alleviate the st ructural problem affecting rural employment, 
especially in highly or very highly marginalized areas
∗, encouraging sustainable agricultural 
production in accordance with the prevailing regional and microregional conditions and 
applying technologies adapted to the conditions. 
 
Actions undertaken under this programme incl ude:  tilling and conservation;  clearing, 
building and repairing terraces;  creating and re habilitating orchards and forest plantations;  
digging ditches and laying pipes for the installation of irrigation systems;  cleaning drainage 
trenches and canals;  repairing breaches and fe nces and rehabilitating pastureland;  building 
drinking troughs;  backyard infrastructure;  and plantations in arid zones. 
 
4. Cost of measure: 
 
1998:  402,780.2 thousand current pesos. 
 
1999:  648,274.1 thousand current pesos. 
 
5. Date of entry into effect: 
 
1998. 
 
6. Period of application: 
 
Annual. 
 
7. Products that principally benefit (if any individual product): 
 
Applicable to agriculture in general. 
                                                      
∗ On the basis of the Marginalization Index calculated by the Consejo Nacional de 
Población – CONAPO (National Population Council).  G/AG/N/MEX/14 
 Page 3 
 
 
  Table DS:2 
 
 
DOMESTIC SUPPORT:  Mexico 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
 
1. Full title of measure: 
 
Strategic Inputs Support Scheme. 
 
2. Domestic legislation reference: 
 
Sectoral Programme for Agriculture, Livestoc k, Rural Development, Fisheries and Food 
(2001-2006) and Strategic Inputs Support Scheme included in the operating regulations for 
the Programme to Support Competitiveness by Branch of Production, published in the 
Official Journal of the Federation on 4 September 2003. 
 
3. Detailed description of measure with referen ce to the criteria established, respectively 
(in Article 6.2): 
 
In the case of strategic inputs for agricultural ac tivities that involve substantial costs and are 
fixed according to non-market and/or non -free competition mechanisms, the PROGRAMME 
may compensate eligible producers in the subject population who meet the criteria, by providing support to lower the cost either directly or by supplementing payments to the 
supplier of the input; this applies to the ener gy required to carry out agricultural activities. 
 
The Programme defines low-income producers as those with a maximum area of 20 hectares of irrigated land or up to 40 hectares of rain -fed land and whose main activity is agriculture;  
or livestock producers with up to 70 head of cattle  in tropical zones or up to 50 head in the 
rest of Argentina, or their equivalent in sm all livestock;  and those engaged in aquaculture 
with a production capacity of up to 100 tonnes and who use semi-intensive farming methods. 
 
4. Cost of measure: 
 
2001:  Subsidy for electric power for agricultural use :  3,241.79 million current pesos. 
 
2002:  Subsidy for electric power for agricultural use :  3,768.39 million current pesos. 
 
2003:  Subsidy for electric power for agricultural use :  4,223.951.00 thousand current pesos.  
Agricultural diesel subsidy:  1,207,516.15 thousand current pesos.  
Total:  5,431,467.15 million current pesos. 
 
2004:  Subsidy for electric power for agricultural use :  4,395,110.00 thousand current pesos.  
Agricultural diesel subsidy:  1,106,359.38 thousand current pesos.  
Total:  5,501,469.38 thousand current pesos. 
 5. Date of entry into effect: 
 
2001. G/AG/N/MEX/14 
Page 4  
 
  6. Period of application: 
 
Annual. 
 
7. Products that principally benefit (if any individual product): 
 
Applicable to agriculture in general. 
  G/AG/N/MEX/14 
 Page 5 
 
 
  Table DS:2 
 
 
DOMESTIC SUPPORT:  Mexico 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
 
1. Full title of measure: 
 
Liquidation of the Banco Nacional de Crédito Rural  - Banrural (National Rural Credit Bank) 
and creation of the Financiera Rural (Rural Development Finance Corporation). 
 
2. Domestic legislation reference: 
 
Basic Law on the Rural Development Finance Cor poration (Official Journal of the Federation 
of 26 December 2002).  
 
3. Detailed description of measure with referen ce to the criteria established, respectively 
(in Article 6.2): 
 
Investment subsidies generally available to agr iculture in developing countries (Article 6.2) 
 
The objective of the resources allocated to the Rural Development Finance Corporation is to 
build up the initial assets of this  decentralized body.  Pursuant  to the Basic Law on the Rural 
Development Finance Corporation, a fund has been  set up with resources to be used to meet 
the Corporation's objective. 
 
Article 2 of the Rural Development Finance Cor poration provides that its purpose is to carry 
out the State's priority activity to promote th e development of agricultural and other economic 
activities related to the rural environment.  In  order to fulfil this purpose, it will grant 
sustainable loans and will provide other fina ncial services to producers and rural financial 
intermediaries, contributing to their more e fficient organization and continued improvement. 
 
Medium- and long-term loans are channelle d through the Rural Development Finance 
Corporation for buying fixed assets such as mach inery, transport units, building or adapting 
property, infrastructure work, inter alia.  
 
The general policies on interest rates and the term of the loans granted lay down guidelines 
designed to safeguard the assets of the Rural Deve lopment Finance Corporation in real terms, 
ensure that operating costs are recovered and meet the social objective of assisting development and capitalizing the rural environment. 
 
It should be pointed out that the loans granted to producers through the Rural Development Finance Corporation (a development bank) ar e subsidies given to producers who are not 
normally eligible for the credit terms imposed  by commercial banks and who require capital 
in order to carry out investment projects in rural areas. 
 G/AG/N/MEX/14 
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  4. Cost of measure: 
 
2002:  33,197 million current pesos. 
 
5. Date of entry into effect: 
 
2002. 
 
6. Period of application: 
 
The initial build-up of assets is once only, ev en though the Rural Development Finance 
Corporation will operate indefinitely (Article  3 of the Basic Law on the Rural Development 
Finance Corporation). 
 
7. Products that principally benefit (if any individual product): 
 
Applicable to agriculture in general. 
  G/AG/N/MEX/14 
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  Table DS:2 
 
 
DOMESTIC SUPPORT:  Mexico 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
 
1. Full title of measure: 
  Support Programme for Access to the Rural Financial System (PAASFIR). 
 
2. Domestic legislation reference: 
 
Operating rules for the Support Programme fo r Access to the Rural Financial System 
(PAASFIR) – Official Journal of  the Federation of 13 June 2003. 
 
3. Detailed description of measure with referen ce to the criteria established, respectively 
(in Article 6.2): 
 
Investment subsidies generally available to agr iculture in developing countries (Article 6.2) 
 
The Programme's overall objective is to help pro ducers' organizations in the rural sector to 
gain access to the resources needed to develop their activities, assisting the efforts made by 
various Federal Executive departments to set up and strengthen an efficient rural financial 
system. 
 
The specific objectives include the following: 
 
To assist financial institutions to incr ease the flow of credit to agriculture; 
 
To facilitate access to formal financing by pr oducers in the rural sector, strengthening or 
generating new credit facilities; 
 
To encourage the capitalization of producers'  organizations, creating the appropriate 
conditions for developing agri-business; 
 
To help in creating and capitalizing a netw ork of non-governmental rural financial 
intermediaries so as to raise the credit rating of the rural sector and improve access to financial services. 
 
4. Cost of measure: 
 
2003:  553 million current pesos 
 
2004:  647.9 million current pesos. 
 
5. Date of entry into effect: 
 
2003. 
 G/AG/N/MEX/14 
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  6. Period of application: 
 
Annual. 
 
7. Products that principally benefit (if any individual product): 
 
Applicable to agriculture in general. 
  G/AG/N/MEX/14 
 Page 9 
 
 
  Table DS:2 
 
 
DOMESTIC SUPPORT:  Mexico 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
 
1. Full title of measure: 
  Programme for Acquiring Water Use Rights (PADUA). 
 
2. Domestic legislation reference: 
 
Operating rules for the Programme for Acquiring Water Use Rights (PADUA), published in 
the Official Journal of the Federation on 12 August 2003.  
 
3. Detailed description of measure with referen ce to the criteria established, respectively 
(in Annex 2): 
 
Programmes within the framework of environm ental programmes (paragraph 12 of Annex 2). 
 
The aim of this Programme is to promote the sustainability of irrigation districts facing water supply problems, primarily as a result of recu rrent droughts and the evident decrease in 
sources of supply, determined in the technical studies conducted by the Comisión Nacional 
del Agua – CAN (National Water Commission), by ac quiring the concessionary rights granted 
by the CAN for the exploitation, use or deve lopment of water resources for agricultural, 
livestock or forestry use. 
 
In particular, it is intended to promote the r ecovery of volumes of water for aquifers and 
hydrological basins and to support producers in  such a way that, in  accordance with joint 
responsibility and commitment criteria, the medium- and long-term viability of the 
sustainability of water supply sources for ag ricultural, livestock and forestry use is 
guaranteed. 
 
4. Cost of measure: 
 
2003:  460 million current pesos (89.7 million 1991 pesos). 
 
2004:  2,254.3 million current pesos (470.1 million 1991 pesos). 
 
5. Date of entry into effect: 
 
2003. 
 G/AG/N/MEX/14 
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  6. Period of application: 
 
Annual. 
 
7. Products that principally benefit (if any individual product): 
 
Applicable to agriculture in general.  G/AG/N/MEX/14 
 Page 11 
 
 
  Table DS:2 
 
 
DOMESTIC SUPPORT:  Mexico 
 
Notification under Article 18.3 of the Agreement: 
New or Modified Domestic Support Measures Exempt from Reduction  
 
 
1. Full title of measure: 
  Comprehensive Programme for Sustainable Agriculture and Conversion of Production in 
Areas Liable to Recurrent Damage (PIASRE). 
  
2. Domestic legislation reference: 
  Operating rules for the Comprehensive Pr ogramme for Sustainable Agriculture and 
Conversion of Production in Areas Liable to Recurrent Damage (PIASRE), published in the 
Official Journal of the Federation on 20 June 2003.  
 
3. Detailed description of measure with referen ce to the criteria established, respectively 
(in Annex 2): 
 
Programmes within the framework of environm ental programmes (paragraph 12 of Annex 2). 
 
The aim of this Programme is to promote,  as a preventive measure and depending on the 
agro-ecological conditions, the sustainable de velopment of regions and zones frequently 
affected by adverse climatic effects that lower productivity, by converting production to 
sustainable systems as an alternative in order to make better use of local natural resources, promoting the development of comprehensive projects. 
 
This is to be achieved through the following: 
 
(a) In accordance with a preventive approach, to  upgrade the fixed assets used jointly and 
the production units of the rural population that are regularly affected by phenomena that have an adverse impact on production,  by carrying out works and action which, 
by capitalizing on fixed assets, enhance r esponse capacity and lessen vulnerability. 
(b) To develop basic rural infrastructure work s of collective benefit that allow the 
adverse impact of phenomena on produc tion and on the social life of rural 
communities to be prevented or mitigated and enable better and more efficient use, management and conservation of soil and water. 
(c) To lay down a methodological basis using a technical and human approach so as to 
replace high-risk patterns of production by  production models in harmony with 
regional specificities that can be reproduced  through their "multiplier effect" and their 
impact on regional development. 
(d) To promote the development of production adapted to the potential use of the soil, 
supporting projects for conversion to more agronomically viable and economically 
profitable crops, from annual to perennial crops, from the development of marginal 
agricultural activities to livestock activities, from both these to forest plantations or G/AG/N/MEX/14 
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  from primary activities to the development of alternatives that lead to rational use of 
soil, water and woodland. 
(e) To link the support given under various in stitutional programmes for sustainable 
development and conversion of producti on through comprehensive projects. 
 
4. Cost of measure: 
 
2003:  559,965.9 thousand current pesos 
 
2004:  432,300 thousand current pesos. 
 
5. Date of entry into effect: 
 
2003. 
 6. Period of application: 
 
Annual. 
 
7. Products that principally benefit (if any individual product): 
  Applicable to agriculture in general. 
 
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