RESTRICTED
WORLD TRADE G/SCM/Q2/ZAF/3
8October 1997
ORGANIZATION(97-4280)
Original: English Committee onSubsidies andCountervailing Duties
SUBSIDIES
Questions from theEUROPEAN COMMUNITY Regarding theNew
andFullNotification ofSOUTH AFRICA1
Thefollowing communication, dated 25September 1997, hasbeenreceived fromthePermanent
Delegation oftheEuropean Commission.
_______________
South Africa submitted on18June1997 itsnotification ofsubsidy programmes totheWTO
pursuant toArticle XVI:1 GATT 1994 andArticle 25oftheWTO Subsidies Agreement.
Inthisrespect, theCommunity would liketoobtain clarification onanumber ofissues onthe
notified scheme asdescribed below.
Moreover, theCommunity hasobtained information ondifferent subsidy schemes which were
notnotified totheWTO although theirnotification seems necessary pursuant toArticle 25.2ofthe
Subsidies Agreement.
I. NOTIFIED SUBSIDY PROGRAMMES
(a) Lowinterest ratefinance scheme
South Africa states thatthisprogramme isavailable toindustrialists thatwillcreate newand/or
additional capacity generating salesofwhich 30%ormoreisdirected towards exports. Thisprogramme
seems contingent upon export performance. Inthisrespect, could South Africa givethetimetable of
howthissubsidy willbephased out?
(b) World Player Scheme
Could South Africa explain whatismeant by"manufacturers unduly affected bytariffreform"?
II. ADDITIONAL PROGRAMMES NOT NOTIFIED TOTHE WTO
South Africa hasnotnotified anumber ofprogrammes which appear tobenotifiable under
Article 25.TheCommunity finds thattheschemes described below provide afinancial contribution
which confers benefits tothelocalindustry. Inaddition theschemes areclearly specific (aspertaining
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toaspecific sector orcontingent upon exports). Inaddition tothespecific questions asked, the
Community would likeclarification whytheseprogrammes werenotnotified totheWTO andrequests
that,ifappropriate, South Africa supplies anotification under Article 25,using thestandard format.
1. Regional Industrial Development Programme
Assistance isgiven intheformofanestablishment grant forthefirsttwoyears, aprofit-based
incentive forthefollowing three years andarelocation incentive.
2. Simplified Regional Industrial Development Programme
3. General Export Incentive Scheme
4. TheExport Marketing Assistance Schemes
Thisprogramme includes theprimary export market research scheme andtheinward buying
trade mission scheme.
5. Tariff rebates orrefunds ofduties ontheimportation ofrawmaterials andcomponents used
inthemanufacturing process
6. Customs duties dispensation forthemotor industry
7. Electricity tariff concessions: electricity intensive industries mayobtain special tariffs with
therelevant localauthorities.