./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/MEX/14
4 August 1999
(99-3278)
Committee on Subsidies and Countervailing Measures Original:  Spanish
SUBSIDIES
Questions from the European Community
Regarding the New and Full Notification of Mexico1
The following communication, dated 19 July 1999, has been received from the Permanent
Delegation of the European Commission.
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Pursuant to Article XVI, paragraph 1 of the GATT 1994 and Article 25 of the WTO
Agreement on Subsidies and Countervailing Measures, Mexico notified its subsidy programmes on19 October 1998.
With regard to the subsidies notified, the Eu ropean Community considers it useful to have
clarification on certain points.
According to information received by the Community, Mexico also has specific subsidy
programmes that have not been notified and whos e notification would appear to be required in
accordance with Article 25.2 of the Agreement on Subsidies and Countervailing Measures.
I. SUBSIDY PROGRAMMES NOTIFIED
Regarding PITEX (Programme of Temporary Imports to Produce Export Goods), the
Community would like clarification of the following points:
(a) Whether the benefits of PITEX include exemption from VAT;(b) whether the beneficiaries of PITEX are necessarily exporters at least 30 per cent of
whose total sales are exports or whether other criteria are applied for specific goods
(raw materials, fuel, etc.).
II. SUBSIDY PROGRAMMES NOT NOTIFIED
According to information obtained by the Co mmunity, Mexico has the following programmes
that should be notified under Article 25.  The Community considers that these programmes give
exporters advantages and benefits relating to specific sectors and specific export quotas.
Consequently, the Community considers that Mexico should notify the WTO of these programmes in
accordance with Article 25.
                                                     
1 G/SCM/N/38/MEXG/SCM/Q2/MEX/14
Page 2
1. Maquila  Export Programme
The legal basis of this programme is the Decree on the promotion of Maquilas (in-bond
manufacturing and processing plants), published in the Official Journal of 22 December 1989, asamended on 24 December 1993, 23 October 1996 and 11 May 1998.  The Maquila  Programme allows
exporters to import goods for the processing or production of final export goods, without paying
import duties or VAT.  The enterprises that benefit in this way are called Maquilas .
2. Draw-back Programme
The legal basis of this programme is the Decree that establishes the repayment of import
duties to exporters, published in the Official Journal of 11 May 1995.
Exporters can receive the value of the import duties on all materials incorporated or used in
the process of producing export goods or on all finished products imported to be subsequently
exported.
3. ALTEX Programme (High Exporting Companies)
The legal basis of this programme is the Decree for the promotion of exporting companies
published in the Official Journal of 3 May 1990, as amended on 17 May 1991 and 11 May 1995.
The objective of this programme is to promote Mexican exports, by granting fiscal and
administrative advantages and certain commercial benefits to exporting enterprises.
4. ECEX Programme (Foreign Trade Companies)
The legal basis of this programme is the Decree for the establishment of foreign trade
companies, published in the Official Journal of 30 May 1990, as amended on 11 May 1995 and
8 April 1997.
This programme consists of a register of trading companies that can obtain fiscal benefits and
administrative advantages.
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