WORLD TRADE WT/DS129/1
G/SCM/D23/1
ORGANIZATION G/L/238
11May1998
(98-1831)
Original: English
GREECE -CERTAIN INCOME TAX MEASURES
CONSTITUTING SUBSIDIES
Request forConsultations bytheUnited States
Thefollowing communication, dated 5May1998, fromthePermanent Mission oftheUnited
StatestothePermanentMissionofGreeceandtotheDisputeSettlementBody,iscirculatedinaccordance
withArticle 4.4oftheDSU.
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Myauthorities haveinstructed metorequest consultations withtheGovernment ofGreece
pursuant toArticles 1and4oftheUnderstanding onRules andProcedures Governing theSettlement
ofDisputes, Article 4.1oftheAgreement onSubsidies andCountervailing Measures (SCM Agreement),
andArticle 30oftheSCM Agreement (totheextent thatitincorporates byreference Article XXIII:1
oftheGeneralAgreementonTariffsandTrade1994),regardingprohibitedsubsidiesprovidedbyGreece.
Based onunofficial English translations oftherelevant legislation anddescriptions insecondary sources,
itistheunderstanding oftheUnited States that,under Greek income taxlaw,Greek exporters are
entitled toaspecial annual taxdeduction calculated asapercentage ofexport income. TheUnited
States believes thattherelevant citations withrespect tothismeasure include, butarenotlimited to,
Law2238/1994, Article 31,paragraph 2.
TheUnited States considers thatthismeasure appears toconstitute anexport subsidy, andas
such, isinconsistent with theobligations oftheGovernment ofGreece under Article 3ofthe
SCM Agreement.
Welookforward toreceiving yourreply tothisrequest andtofixing amutually convenient
dateforconsultations.
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