. /.WORLD TRADE
ORGANIZATIONG/SCM/Q2/FJI/5
G/SCM/Q3/FJI/9
5 December 2002
(02-6727)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement on Subsidies and
Countervailing Measures to Extend the Transitional
Period for Elimination of Export Subsidies
Replies to Questions from the UNITED STATES1
Regarding the Notifications of FIJI2
The following communication, dated 3 December 2002, has been received from the Ministry
of Foreign Affairs and External Trade in Fiji.
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Q. According to G/SCM/N/74/FJI (5 March 2 002), Fiji has requested an extension under
Article 27.4 of the Agreement on Subsidies and Countervailing Measures, for the elimination of
certain export subsidies for three programmes: (1) the Short-Term Export Profit Deduction, (2)
Export Processing Factories/Export Processing Zones Scheme, and (3) the Income Tax Act
(Film Making and Audio Visual) Incentive Ame ndment Decree 2000.  However, in a subsequent
notification, G/SCM/N/71/FJI (5 March 2002), following the description of the Short-TermExport Profit Deduction, is the following statement:  “In addition, the Reserve Bank of Fiji also
administers two concessional facilities to assist ex porters.”  These facilities are identified as (a)
Export Finance Facility (EFF) and (b) Expo rt Credit Ratio (ECR).  According to the
information provided in G/SCM/N/71/FJI, the EF F provides credit to exporters at concessional
rates of interest.  The ECR requires commercial  banks to maintain a minimum of 5 per cent of
their average deposits and similar liabilities, in outstanding loans to eligible exporters of goods
and services.  We also note that Fiji provided some additional information regarding the ECR
and EFF in its response to question 5 of G/SCM/Q3/FJI/5 (25 June 2002).
- To our knowledge, the Committee on Subsidies and Countervailing Measures
has not received a request from Fiji to extend the transitional period for the
elimination of export subsidies under the EFF and ECR programmes, pursuant
to Article 27.4 of the Agreement on Subsidies and Countervailing Measures.
Please confirm that Fiji did not apply for an extension for these two programmes
prior to the end of 2001.
- If Fiji did apply for an extension of time to eliminate export subsidies for the
EFF and ECR programmes, please identify the document requesting such
extension.
                                                     
1 G/SCM/Q2/FJI/4-G/SCM/Q3/FJI/8
2 G/SCM/N/74/FJI, G/SCM/N/71/FJIG/SCM/Q2/FJI/5
G/SCM/Q3/FJI/9
Page 2
According to G/SCM/39 (20 N ovember 2001), the special procedure for extensions to
eliminate export subsidies under Article 27.4 only applies to those subsidies which take the form
of full or partial exemptions from import duties and internal taxes.
- Please confirm that the export subsidies provided under the EFF and ECR are
not eligible for the procedures under G/SCM/39, because they do not take the
form of full or partial exemptions from import duties and internal taxes.
Reply
With reference to document G/SCM/Q2/FJI/4 -G/SCM/Q3/FJI/8 concerning questions from
the United States regarding Fiji's request for extension under Article 27.4 of the Agreement on
Subsidies and Countervailing Measures, Fiji would like to confirm that the facilities identified as
Export Finance Facility (EFF) and Export Credit Ra tio (ECR) were included in G/SCM/N/71/FJI and
not in G/SCM/N/74/FJI.
In accordance with G/SCM/39, the special proc edure for extensions to eliminate export
subsidies under Article 27.4 only applies to those subsidies which take the form of full or partial
exemptions from import duties and internal taxes.  Since the EFF and ECR are facilities set up to
provide access to credit for eligible exporters, with the ECR facility market rate determined, Fiji hasconcluded, upon further analysis, that the EFF and ECR are not eligible for the procedures under
G/SCM/39 because they do not take the form of full or partial exemptions from import duties and
internal taxes.  In this regard, Fiji would like to withdraw its request for extension on both the EFF
and ECR pursuant to G/SCM/39.
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