. /.   WORLD TRADE  
ORGANIZATION  G/SCM/Q2/ARG/33 
27 April 2010 
 
 (10-2213) 
Committee on Subsidies  
and Countervailing Measures Original:   Spanish 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed by the EUROPEAN UNION1 Regarding  
the New and Full Notification of ARGENTINA2 
 
  The following communication, dated 23 April 2010,  is being circulated at the request of the 
delegation of Argentina.  
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Capital Goods, Information Techno logy and Telecommunications Regime
 
  According to the notification, the purpose of  the regime is to maintain competitive 
conditions for domestically produced capi tal goods in relation to imports.   
  Could Argentina elaborate on the specific criteria to be met by manufacturers to be eligible for receiving benefits under this progr amme?  What kind of capital goods are covered 
by this regime, please provide examples?  Co uld Argentina explain why it believes this 
programme is consistent with its obligations under Article 3.1(b) ASCM? 
 
Reply
 
  The European Union has asked Ar gentina to explain:  (1) what the specific criteria to be met 
by manufacturers to be eligible for receiving bene fits under the programme are;  (2) what kind of 
capital goods are covered by the regime;  (3) why Argentina believes the programme is not 
inconsistent with its obligations under Article 3.1(b) of the SCM Agreement.  Below are the replies to 
each one of these questions, to be submitted to  the Committee on Subsidies and Countervailing 
Measures.  
 Regarding the first two questions, the benef its provided for under the regime cover sales of 
capital goods, information technology and teleco mmunications listed in the mentioned Decree
3, 
intended for investment in economic activities within  the national territory.  The benefits also cover 
goods that form part of complete  and autonomous production lines allo cated to new industrial plants, 
or to the expansion and/or modernization of existing plants producing tangible goods. 
 
 As regards the consistency of the programme w ith Article 3.1(b) of the SCM Agreement, it 
should be noted that the benefits granted under this regime (a tax bond) should be seen in relation to 
                                                      
1 G/SCM/Q2/ARG/31. 
2 G/SCM/N/186/ARG. 
3 The complete list of covered goods can be found in Annex I to Ministry of the Economy resolution  
27/2001, available at http://www.infoleg.gov.ar/infolegInternet/anexos/65000-69999/66655/norma.htm . G/SCM/Q2/ARG/33 
Page 2  
 
  another measure adopted by the Argentine Govern ment, namely the reduction to zero of the tariff 
applied to the goods covered by the benefits pr ovided for under Decree 379/2001.  Indeed, through 
Ministry of the Economy Resolutions No. 8/2001 a nd 27/2001, Argentina provided for a reduction in 
import duties on capital goods, telecommunications a nd information technology from 14 per cent to 
0 per cent. Consequently, the Capital Goods, Information Technology and Telecommunications 
Regime is not inconsistent with Argentina's oblig ations under the SCM Agreement, in particular 
Article 3.1(b) thereof.   In any case, it should be noted that the progr amme is on its way out:  under Decree 188/2010, 
the programme will be term inated on 30 June 2010. 
 
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