WORLD TRADE G/AG/N/ISL/5
24February 1997
ORGANIZATION(97-0769)
Committee onAgriculture Original: English
NOTIFICATION
Theattached notification concerning newormodified domestic support measures exempt from
reduction (Table DS:2) were received from thedelegation ofIceland on14February 1997.
____________
ICELAND
Themeasure inquestion replaces theproduction-limiting programme forsheepmeat notified
byIceland inSupporting Table DS:3 ofdocument G/AG/N/ISL/2 dated 20September 1996.
./.G/AG/N/ISL/5
Page2
Table DS:2
DOMESTIC SUPPORT: Iceland
Notification under Article 18:3oftheAgreement:
Modified domestic support measures exempt fromreduction
(1) Fulltitleofmeasure:
Anagreement onsheepmeat production dated 1October 1995 pertaining toanamendment
oftheAgricultural Agreement of11March 1991forsheepmeat andmilkbetween theMinister
ofAgriculture onbehalf oftheGovernment ofIceland andtheFarmer 'sUnion.
(2) Domestic legislation reference:
ActNo.124of6December 1995; amending the1993 LawonProduction, Pricing andsales
ofAgricultural Products.
(3) Detailed description ofmeasure withreference tocriteria (i.e.those inarticle 6:5):
Themodified domestic support concerns sheep farmers intwoimportant aspects. Firstly, as
of1September 1996 sheep farmers areabletoreceive fulldirect payments without theneed
toproduce sheepmeat, provided thattheyownaminimum of0.6winter-fed sheep inrelation
toeachsheep production unit1oftheirindividually allotted production-quota. Secondly, as
of1September 1996 sheep farmers areabletoreceive fulldirect payments withaguarantee
thattheirsheepmeat willbemarketed domestically, provided thattheysignacontract andagree
toown0.7winter-fed sheep orlessinrelation toeachsheep production unitintheirindividually
allottedproduction-quota.Thismeasureofmodifieddomesticsupportconcerningsheepfarmers,
practically detaches prior association between direct payments andquantity ofproduction at
thesame timeasitpreserves theproduction-limiting goals oftheprogramme. With regard
todirect payments, themeasure replaces anearlier production-limiting programme.
(4) Costofmeasure:
Total costinproduction year1996/97 (starting on1September 1996; ending on30August
1997) is1.505,3 ISKmillion.
(5) Date ofentry intoeffect:
1September 1996
(6) Period ofapplication:
1September 1996 through 31August 2000
(7) Products toprincipally benefit (ifanyindividual product(s)):
Notapplicable.
1Onesheepmeat production unitequals 18,2 kilograms ofsheepmeat.