. /. RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/807/5/Add.1 
10 June 2002 
 (02-3199) 
Working Party on the Accession of the 
Former Yugoslav Republic of Macedonia Original:   English 
 
 
 
 
ACCESSION OF THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA  
 
Domestic Support and Export Subsidies in Agriculture  
 
Addendum  
 
 For the purposes of the accession of the Gove rnment of the Former Yugoslav Republic of 
Macedonia to the WTO, the Government has pr esented the following information on domestic 
support in agriculture, with the request that it be  circulated to members of the Working Party. 
 
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1. Creation of artificial meadows for the production of ezparzeta seed  
The measure comprises researches in ge neral and researches in connection with 
environmental programs. 
The general research is undertaken with an objective of producing quality seeds of esparzeta 
grass. The research is carried out by the Scie ntific Institution – Agricultural Institute in 
Skopje. The manner of allocation of funds by the Agricultural Institute is monitored by a 
separate Commission established within the Mini stry of Agriculture, Forestry and Water 
Economy. 
The second dimension of this program is envir onmental. Namely, the artificial meadows are 
being created only in areas which are not cultivated and on erosive terrains. 
At present, Macedonia does not apply this program, since its main purpose of  protecting the 
environment was accomplished. 
In the past, very modest amounts were allocat ed for this program. They never exceeded 
EURO 200,000 per year. 
Macedonia has seriously considered the comment s and requests expressed by members at the 
last meting on agricultural support in May and d ecided to move this measure from Table DS:1 
to Table DS:7 (Other Product-Specific Support) and include it in its AMS calculations. The change will be reflected in the next revision of WT/ACC/SPEC/807/3.  
2.  Public stockholding for food security purposes 
Legal basis for the operation of the stock reserves is the Law on Stock Reserves (Official 
Gazette 47/87, 13/93). The purchase and the disposal of goods from the stock reserves are 
carried out in accordance with the Program for the Establishment of the Stock Reserves and WT/ACC/SPEC/807/5/Add.1 
Page 2  
 
separate Government decisions. Goods are purchase d and sold at market prices and pursuant 
to the provisions of the Law on Public Procurement. 
3. Funds for infrastructure projects for liv estock farms in officially classified 
disadvantaged regions   
The Bureau (former Agency) for Developmen t of Economically Underdeveloped Regions 
(Bureau) approves grants for investment project s in the economic infrastructure of animal 
farms located in officially designate disadva ntaged regions. These funds are used for the 
construction and improvement of roads, electri city supply, and water supply for sheep, goat 
and cow water holes and for fish farms. The par ticipation of the Bureau may go up to 60 
percent or 80 percent of the investment project  depending on the level of development of the 
region. The applications for funds are submitted to the Bureau on an appropriate form. They 
must be accompanied by other required doc umentation (investment project, financial 
proposal, proof of capital provided from other sources of finance, shares issued by authorized body - agreements, approvals, licenses, etc.). Upon review of the submitted application, the 
Bureau decides on the approval of the funds, wh ich are afterwards transferred to the bank 
account of the investor or with his/her consent to contractors, suppliers of equipment etc. 
Macedonia considers this program to be in comp liance with the criteria set out in Annex 2 to 
the Agreement on Agriculture, both the general criteria pursuant to paragraph 1(a)(b) and the 
specific criteria mentioned in Paragraph 13( a), (b) and (d), for the following reasons: 
- The program is carried out by a publicly funded institution - the Bureau. 
- The program does not have the effect of providing price support to producers 
- The program is implemented only in regions  officially classified as underdeveloped. 
General criteria for such classification are set out in the Law on Stimulating the Development of Economically Underdevel oped Regions (Official Gazette 69/99). 
The specific list of underdeveloped regions for the period 1999-2003 appears in the Government Decision published in  Official Gazette  47/99.  
- The funds are not related to, or based on, the type or volume of production, after the 
grants have been disbursed. 
- Funds are generally available to all producers in areas designated as underdeveloped.  
4. Support to the cost of security payment (p ension and health) for farmers in officially 
classified disadvantaged regions  
Taking into consideration the request of a me mber, Macedonia agrees to exclude this program 
from its calculation of domestic support in agri culture. The change will be reflected in the 
next revision of WT/ACC/SPEC/807/3.  
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