RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q3/THA/3
22 February 2002
(02-0926)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Questions Posed by the European Community
The following communication, dated 21 February 2002, has been received from the
Permanent Delegation of the European Commission.
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Questions by the European Communities concern ing the request made by Thailand pursuant to
Article 27.4 of the Agreement on Subsidies and Countervailing Measures (G/SCM/N/74/THAdated 4 January 2002)
The European Communities pose the following questions without prejudice to the final position on
the request and reserve the right to ask further questions in the course of the consultations.
Q.1 Please elaborate on when and how Thailand intends to phase out these programmes for which
an extension is requested.
Q.2 In footnote 1 of document G/ SCM/N/74/THA it is stated that the "Machinery Upgrading
Financing" programme is not to be considered to be a prohibited subsidy and therefore not relevant to
the request.  However, information on this scheme as contained in document G/SCM/N/71/THA
would indicate that this scheme constitutes an export subsidy. (e.g. "Policy objective:  To strengthenthe competitive edge of Thai exporters").  Please elaborate on why this programme would not
constitute a prohibited export subsidy.
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