./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/KOR/16
2 February 1999
(99-0378)
Committee on Subsidies
and Countervailing MeasuresOriginal:  Spanish
SUBSIDIES
Questions from MEXICO Regarding the
New and Full Notification of KOREA1
The following communication, dated 18 January 1999, has been received from the Permanent
Mission of Mexico.
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1. With regard to the programme entitled Governme nt Purchase of Beef (I.B) (page 5), would
the subsidy be maintained when producers have the capacity to effect exports and, if so, what would
be its scope?
2. In connection with the Support for Pigmeat Production programme (I.B) (page 6), why is the
trade effect of the subsidy presumed to be insignificant?
- With regard to total output in 1996 and 1997, what was the total value of production and what
was the amount of subsidies for 1997?
3. Regarding the Marketing Improvement Programm e for Fruits and Flowers (I.C) (page 8),
please explain to whom and how the subsidy is provided.
- Why is its impact on trade insignificant?
4. With regard to Programme III.A, entitled Support for Development of Deep-Sea Fishery
(page 12), could a fuller description be given of the subsidy and how it is provided?
- Why is it difficult to estimate the trade effect?
5. In connection with Programme s III.B, Support for Fish Produc ts Processing Development,
III.C. Fund for Supporting Fishing Activities, and III.D.  Support for Developing Aquaculture Fishery
(pages 13-16), what are the conditions governing grants and loans?
- How do these facilities affect the international competitiveness of Korean firms?
6. In connection with Programme III.E, Reduction in Local Taxation on Building and
Acquisition of Vessels for Deep-Sea Fishery (page 17), what is the nature of the tax concession
granted?
                                                     
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7. With regard to Programme V.A, Support for Foreign Invested Enterprises (page 20), how are
the price relations of the subsidized firms affected?
- What conditions must be met by subsidized firms?
- Why is it hard to estimate the trade effects.8. With regard to Programme VI.A.  Diesel Vehicle Low Emission Technology Development
(page 25), what percentage of total costs is covered by the subsidies granted?
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