RESTRICTED
WORLD TRADE G/SCM/Q2/USA/9
16September 1996
ORGANIZATION(96-3621)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from theEUROPEAN COMMUNITY Regarding theNew
andFullNotification oftheUNITED STATES1
Thefollowing communication, dated 4September 1996, hasbeenreceived fromthePermanent
Delegation oftheEuropean Community.
_______________
Notified subsidy programme
2.2 Dairy Indemnity Programme
CantheUSexplain clearly thedifference between DIPandDEIP aswellasthedifference in
budget?
3.1 Partnership foraNewGeneration ofVehicles
Isthere anupper ceiling ontheamount ofsubsidy asapercentage ofeligible costs?
Non-notified federal subsidies
A. Small Business Administration (Programmes A.1toA.4)
2. Intheabove programmes what isthedefinition ofsmall businesses? Isthesame definition
usedineachsector andunder eachprogramme?
3. Ineachprogramme, aresubsidies granted automatically toeligible companies oristhere
discretion involved?
4. Howisitdetermined thattheprogrammes arenon-specific? Areanysectors excluded from
eligibility?
B.3 Economic Development Administration
5. Whatarethecriteria fordesignating eligible regions? AreGDPpercapita ortheunemployment
ratefactors taken intoconsideration?
1G/SCM/N/3/USA+Corr.1.G/SCM/Q2/USA/9
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C.2 Advanced Technology Programme
6. Towhatextent isthisprogramme opentoandactually usedbyallsectors oftheeconomy?
C.3 Energy Related Inventions Programme
7. Howaresmall andmedium-sized enterprises defined?
F. TaxIncentives
F.1. Capital Construction Fund/F.2 Construction Reserve Fund
I. Shipbuilding -Merchant Maritime Act
8. Towhatextent dothese orother available schemes provide subsidies toshipowners contingent
upon theuseofUS-built vessels, thusproviding anindirect subsidy toUSshipbuilders?
K. Foreign Sales Corporations
9. TheCommunity considers thisprogramme tobespecific. Inviewofthisdisagreement, will
theUSnotify thisprogramme forthepurpose oftransparency, bearing inmindtheprovisions
ofArticle 25.7?
SEMATECH
10. Given thatSEMATECH isdesigned topromote research intomicro-electronics, onwhatbasis
canitbedemonstrated thatthesubsidy isnon-specific?
Sub-federal programmes
11. Would theUSagree thatthefollowing areexamples ofdejurespecific subsidies which should
benotified under Article 25?Many other examples atstatelevelcanbegiven.
(a) Alabama Enterprise Zone Act
(b) Alaska -Export Assistance Programme
(c) Arizona -Export Loan Guarantee Programme
(d) Arkansas -Export Finance Programme
(e) Arkansas -Property TaxExemptions forCotton Mills
(f) Delaware -Targeted Areas TaxIncentives
(g) Maryland -Seafood andAquaculture Loan Fund
(h) Michigan -Property TaxExemption forSugar andMetallic Mineral Ores
(i) Texas -Property TaxAbatement forReinvestment Zones
(j) Wisconsin -Wisconsin Development Zone Programme.G/SCM/Q2/USA/9
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12. Asafurther illustration oftaxincentives atsub-federal level, willtheUSnotify under Article 25
thesubsidies available inenterprise zones which existinthirty states?