WORLD TRADE G/AG/N/CRI/4
10March 1998
ORGANIZATION(98-0968)
Original: Spanish Committee onAgriculture
NOTIFICATION
On24February 1998, thefollowing notification concerning export subsidy commitments
(Tables ES:1 andES:3) fortheyears 1995 and1996 wasreceived from thePermanent Mission of
Costa Rica. Thiswasaccompanied byaprovisional notification fortheyear1997.
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Pursuant toArticles 10and18:2oftheAgreement onAgriculture, theGovernment ofthe
Republic ofCosta Ricanotifies withrespect totheexport subsidy limitation commitments for1995,
1996and1997thattheexport incentive system basically consists oftheTaxCredit Certificate (CAT).
AstheCAT represents apercentage ofthevalue ofexports, itisnotfeasible toestablish areduction
commitment forGovernment outlays under thisheading. Thissituation alsoapplies inthecaseofthe
income taxexemption incentive thatexpired on30September 1996. Nevertheless, thecommitment
toreduce thepercentage oftheCAT granted bytheState, andthecommitment toeliminate theincome
taxexemption, bothfallwithin thespirit ofagricultural trade liberalization andsubstantially fulfilthe
objectives setintheUruguay Round.
Itisimportant topoint outthatthere isatimetable forphasing outthese programmes: ina
firststage theincentives werepartially eliminated on30September 1996, andinasecond stage they
willbetotally eliminated by30September 1999.
With regard tothereduction commitments relating toexport subsidies under theTaxCredit
Certificate (CAT), theGovernment oftheRepublic ofCosta Rica notifies thatapproximately
US$94.02 million wereassigned asexport subsidies during 1995, approximately US$114.52 million
during 1996 andapproximately US$46.881during 1997. Theamount ofthesubsidy corresponds to
theentire amount assigned regardless ofcountry ofdestination. TheCATiscurrently granted tonon-
traditional exports (allproducts withtheexception ofbananas, coffee, sugar andmeat) exported to
thirdmarkets (allcountries other thanCentral American countries).
Pursuant toArticles 10and18:2oftheAgreement onAgriculture, theGovernment ofthe
Republic ofCosta Rica notifies thatthere were noexports forinternational food aidpurposes
(Table ES:3) in1995, 1996 and1997.
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1UptoJune 1997.