. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q3/THA/8
27 March 2002
(02-1565)
Committee on Subsidies
and Countervailing MeasuresOriginal:  Spanish
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement on
Subsidies and Countervailing Measures
Questions Posed by Peru
The following communication, dated 14 March 2002, has been received from the Permanent
Mission of Peru.
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Peru submits the following questions and comments in respect of the requests under
Article 27.4 of the Agreement on Subsidies and Countervailing Measures that are scheduled fordiscussion at the meeting on 13 March 2002.
THAILAND (G/SCM/N/74/THA)
1. Does Thailand consider that its economic, financial  and development needs justify an extension
of the transition period for eliminating export subsidies?
2. Article 27.4 stipulates that any developing count ry Member shall phase out its export subsidies
preferably in a progressive manner.  Although certa in developing countries have been granted a grace
period during which they may continue to apply such  subsidies, has any progress been made in phasing
out these measures since the beginning of the period in 1995, in pursuance of one of the central
principles of the multilateral trading system, i.e. freer and more competitive trade free of distortions?
3. Does Thailand have a plan for phasing out the prohibited subsidies for which the extension is
being requested.  Please provide details in this respect.
4. Why does Thailand consider that only one extens ion is needed for productive activity to attain
all the objectives under the country's strategic and development plans?
5. Why does Thailand consider that its incentives are not trade-distorting for countries which do
not apply trade-distorting measures?
6. Article 27.5 and Article 27.6 of the Ag reement on Subsidies states that:G/SCM/Q3/THA/8
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"A developing country Member which has reache d export competitiveness in any given product
shall phase out its export subsidies for such product(s) over a period of two years. (…) Export
competitiveness in a product exists if a develop ing country Member's exports of that product
have reached a share of at least 3.25 per cent in world trade of that product for two consecutive
calendar years".
Has Thailand performed any analysis of competitiveness in products subject to export subsidies?
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