./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q3/PAN/3
22 February 2002
(02-0925)
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 requests made by Panama pursuant to
Article 27.4 of the Agreement on Subsidies and Countervailing Measures (G/SCM/N/74/PAN/1dated 4 January 2002 and G/SCM/N/74/PAN/2 dated 4 January 2002)
The European Communities pose the following questions without prejudice to the final
position on the requests and reserve the right to ask further questions in the course of the
consultations.
I. Questions concerning the programmes mentioned in G/SCM/N/74/PAN/1 dated
4 January 2002 (request based on procedure in G/SCM/39)
Q.1 Please indicate when the programmes came into operation.
Q.2 Please indicate whether the programmes provide for other forms of subsidies than exemption
of import duties and internal taxes (e.g. grants, provision of goods or services).
Q.3 Please explain what is meant by "creation of special funding programmes on a preferential
basis compare to what is normally available on the market" (page 3 of G/SCM/N/74/PAN/1).
Q.4 Do the programmes provide for a condition to use domestic goods? If yes, please describe the
relevant provision.
Q.5 Please indicate the rate of import duty or internal tax exemption as of 1 September 2001.
Q.6  Please describe any changes to the programmes since 1 September 2001, if any.  In particular,
indicate any changes to the rate of exemption or the coverage of the programmes e.g. in terms of
products, location etc.
Q.7 Please indicate for each programme how many companies have benefited from the respective
programme as of 1 September 2001.G/SCM/Q3/PAN/3
Page 2
Q.8 The notification states that the duration of the programme concerning export processing zones
is "indefinite".  Please elaborate on when Panama intends to phase out this programme.
II. Questions concerning the programme mentioned in G/SCM/N/74/PAN/2 dated
4 January 2002 (request based on Article 27.4 ASCM)
Q.9 Document G/SCM/N/74/PAN/2 states that it is requested to extend the programme for an
additional period of 5 years.  However, docume nt G/SCM/N/48/PAN states under "duration of the
subsidy" that the programme is scheduled to last until 31 December 2002.  Please elaborate on how
and until what date Panama intends to phase out this programme.
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