. /.   WORLD TRADE  
ORGANIZATION  G/SCM/Q2/CRI/11 
16 April 2010 
 (10-1959) 
Committee on Subsidies and 
Countervailing Measures Original:   Spanish 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed by the Untied States1 Regarding  
the New and Full Notification of Costa Rica2 
 
  The following communication, dated 16 April 2010,  is being circulated at the request of the 
delegation of Costa Rica.  
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Duty Free Zones
 
 
Question 
 
• Please clarify whether there is a provision in each contract that clearly states 
that the export contingent benefits provided for under this programme will be 
eliminated by 31 December 2015. 
Reply  
 
 All of the duty-free zone agreements include a clause stating that the time-limits, terms and 
conditions for the benefits granted under Law No . 7210 are subject to Costa Rica's commitments 
under the international agreements  relating to the World Trade Organization (WTO), including, 
inter alia , the Agreement on Subsidies and Counterva iling Measures (SCM Agreement) and the 
decisions of the relevant WTO bodies unde r Article 27.4 of the SCM Agreement. 
 
Question 
 
• Please provide an estimated time-frame of when the draft law on Reform of the 
Duty-Free Zone Regime Law, No. 7210 will be implemented. 
Reply  
 
 In December 2009, the Legislative Asse mbly unanimously passed the Reform of 
Law No. 7210, the main objective of which was to comply with WTO commitments, specifically 
under the SCM Agreement.  This Reform provides for the elimination of subsidies subject to a 
percentage of exports.  
                                                     
 
1 G/SCM/Q2/CRI/10. 
2 G/SCM/N/186/CRI-G/SCM/N/192/CRI. G/SCM/Q2/CRI/11 
Page 2  
 
   It was published in the Official Journal, la Gaceta , of 22 January 2010.  Regulations are 
currently being drawn up to ensure its effec tive implementation, and should be ready soon. 
 
Inward Processing Regime
 
 
Question 
 
• Please clarify whether the clause in each contract clearly states that the export 
contingent benefits provided for under th is programme will be eliminated by 
31 December 2015. 
Reply  
 
 They contain a reference similar to the one th at appears in the Duty-Free Zone Agreement. 
 
Question 
 
• Please provide a detailed explanation of the specific internal steps Costa Rica 
has taken to prepare for the termination of this export subsidy programme.  Could Costa Rica please include in its de scription how it intends to ensure that 
the programme will be phased out by 31 December 2015?  Further, please explain whether the beneficiaries of this programme have already been notified individually or through industry associations that all benefits under these programmes will be terminated by 31 December 2015. 
Reply
 
  Costs Rica is bound by its commitment to brin g its inward processing regime into conformity 
with the provisions of the WTO and of the SCM Ag reement.  One of the initial objectives was to push 
ahead with the amendment of the Duty-Free Zone Re gime Law.  This has been done, and we are now 
fully concentrated on moving forward with the amendment of the Inward Processing Regime as a 
second objective.  The following acti on is being taken to that end: 
 
(a) Evaluation of the commitments; 
(b) creation of the Inter-Institutional Technical Committee to draft the reform; 
(c) meetings with the sectors involved; 
(d) drawing up of a work timetable and strategy to ensure that the reform is ready for 
2015. 
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