RESTRICTED
WORLD TRADE G/SCM/Q2/ISR/7
3April 1997
ORGANIZATION(97-1345)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from theUNITED STATES Regarding theNew
andFullNotification ofISRAEL1
Thefollowing communication, dated 25March 1997, hasbeenreceived fromthePermanent
Mission oftheUnited States.
_______________
Magnet
1. What aretheeligibility criteria under theMagnet programme? Howarebenefitting enterprises
selected?
2. Could Israel indicate thenumber ofprojects funded under thisprogramme during 1995 and
provide examples ofprojects benefitting from assistance under thisprogramme?
3. Please clarify thetime-frame within which funds aredisbursed andtheprojects arecompleted.
TheIncubators Programme
4. What istheapplication process forstart-up companies seeking grants under thisprogramme?
What aretheeligibility criteria? How arebeneficiary enterprises selected?
5. How doestheprogramme address astart-up company ’s“need[for]infrastructure? ”Please
explain inmore detail thetypeofassistance provided under thisprogramme, e.g.scientific research,
advisory services, jobplacement, training, administration, marketing, etc.
Small Business Authority
6. DotheCentresprovidefinancialassistancedirectlytosmallenterprises-forexample,preferential
loans tooffset operating losses inorder to“prevent theircollapse? ”OrdotheCentres simply provide
advice toenterprises?
1G/SCM/N/3/ISR-G/SCM/N/16/ISR &Corr.1.
./.G/SCM/Q2/ISR/7
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Business Tutorial Programme
7. What aretheeligibility criteria for“disadvantaged areas”under thisprogramme? How are
benefitting enterprises selected under thisprogramme?
Encouragement ofMarketing Fund
8. What exactly isan“infrastructural marketing expenditure ”?
9. Iseligibility forMarketing Fund assistance contingent upon export performance?
TheImport Liberalization Fund
10. How doesamanufacturer prove thatithasbeendamaged byimport liberalization?
11. How exactly doesarecipient utilize thegrant monies?
12. Please explain howthere canbenotrade effects fromassistance aimed atimproving domestic
competitiveness vis-à-vis imports.
Non-Notified Programmes
13. Weareaware ofthefollowing programmes available toproducers inIsrael. Please explain
where andthemanner inwhich these subsidies fallwithin Israel’snotification (e.g.inrelation tothe
section concerning theLawfortheEncouragement ofCapital Investment) orwhytheprogrammes
havenotbeennotified under GATT Article XVI:1/Article 25.2oftheAgreement onSubsidies and
Countervailing Measures.
A. Reduced TaxRates under ECIL
B. ECIL Section 24Loans
C. Labour Training Grants Investment TaxAllowance
D. Dividends andInterest TaxBenefits under Section 46oftheECIL
E. ECIL Preferential Accelerated Depreciation