RESTRICTED
WORLD TRADE G/SCM/Q2/ROM/3
3April 1997
ORGANIZATION(97-1349)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from theUNITED STATES Regarding theNew
andFullNotification ofROMANIA1
Thefollowing communication, dated 25March 1997 hasbeenreceived from thePermanent
oftheUnited States.
_______________
PartI:Industry -Budgetary Transfers forCertain Mining andOreIndustries
1. Please provide amore detailed description ofthepolicy rationales forthisprogramme. For
example, insupporting theactivity ofthemining sector, whataretheGovernment 'sspecific objectives
(forinstance, toincrease productivity, increase supply, increase profitability, create newjobs,protect
national security interests, etc.)?
2. Describe theapplication process andhowtherecipients ofthegrants areselected. Explain
whytheGovernment issues "adecision applicable foreachproducer".
3. Explain themeaning ofthefollowing sentence: "The subsidies aregranted through monthly
allocations according totheeffective results obtained."
4. With respect totheper-unit amount ofthissubsidy, please explain yourstatement that"there
isafixed amount pereachproduct unit(ton)."
5. What ismeant bythe"horizontal character oftheextractive industry" andhowdoesthis
characteristic relate topossible trade effects ofthissubsidy?
6. Please indicate whether theprogramme isscheduled tobeterminated and,ifso,when?
PartIII:Research andDevelopment
7. Please specify theselection criteria usedtoaward thesegrants. Must recipients ofgrant awards
adhere tospecific guidelines when using grant monies (e.g., areawards limited strictly toresearch
and/or pre-competitive activities within themeaning ofthose terms assetforth intheAgreement on
Subsidies andCountervailing Measures)?
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8. Wasthisprogramme terminated on31December 1995? Ifnot,isitsettoterminate ataspecific
point intime? Ifyes,when?
PartIV:Export Promotion
9. Could Romania provide information ontheactual interest ratesandinterest ratedifferentials
between thedomestic andexport markets forwhich thisprogramme seeks tocompensate?
10. How is"export profitability" measured before agrant recipient actually exports?
11. Please explain yourstatement thatthisprogramme hasnotrade effects (especially inlightof
itsexport promotion goals). How didyoureach thatdetermination?
12. Wasthisprogramme terminated on31December 1995? Ifnot,isitsettoterminate ataspecific
point intime? Ifyes,when?