RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/ARM/4/Rev.1 
15 August 2001 
 (01-4021) 
Working Party on the  
Accession of Armenia Original:   English 
 
 
 
ACCESSION OF ARMENIA 
 
Export Subsidies and Domestic Support  
 
Revision  
 
  The Ministry of Industry and Trade of the Republic of Armenia has submitted the following 
additional information on export subsidies a nd domestic support in the agriculture sector. WT/ACC/SPEC/ARM/4/Rev.1 
Page 2  
 
EXPLANATORY NOTE 
Domestic Support in Agriculture
 
 Within the framework of the transition form  a centrally planned economy to a market 
economy Armenia has initiated a comprehensive la nd reform program in 1991.  Most of the 
agricultural land was privatized by 1994. The state order system has been fully dismantled, prices 
have been liberalized.  
 Simultaneously, Armenia adopted a policy of fo reign trade liberalization and integration into 
the world trading system, including WTO accession negotiations.  Customs ta riffs on importation of 
agricultural products have been brought to zero and te n percent rates.  Within the framework of its 
WTO accession Armenia has bound tariffs on imports of  agricultural products at 15 per cent level, 
and export subsidization in agriculture at zero level. 
  The agricultural reform, being an important  step towards establishing a market based 
agricultural sector, nonetheless, has created a class of small landowners with very low average income 
(agriculture employs over 40 per cent of the total la bor force in Armenia).  The process of agricultural 
reform has been endangered by the difficulties inhe rent to transition economies.  Due to the scarcity 
of budgetary resources subsidies applied during th e Soviet period have been significantly reduced, 
and the Government of Armenia adopted a policy of  granting tax privileges to agricultural producers 
(on product specific as well as non-product specific basis) as a main measure of domestic support to farmers.   
 Considering the existing situation in the agri cultural sector, Armenia claimed to avail itself 
the ten per cent de minimis  provision pursuant to the Article 6.4 (b) of the Agreement on Agriculture 
within the framework of the WTO accession. Arme nia had included tax privileges constituting the 
main portion of "amber box" type of subsidies pr ovided to farmers during the base period 1995-1997 
in its calculation of AMS (reflected in Armenia’s initial Domestic Support Tables 
WT/ACC/SPEC/ARM/4 of 12 February 1999, attached
1).  This position was  in compliance with the 
WTO provisions as according to the Agreement on Agriculture (Article 1(c)) as well as the 
Agreement on Subsidies and Countervailing Measures (A rticle 1.1 (a)(1)(ii)) the application of "tax 
credits", which imply government revenue foregone , shall be considered as a subsidy measure.  
  During the further course of negotiations Armeni a has shown considerable flexibility in order 
to accelerate the accession process. Armenia agreed to reduce the de minimis  level  from ten per cent 
to five per cent after a five year transition pe riod.  Considering the requests of the WTO Member 
States Armenia agreed also to remove tax privileg es from the AMS calculation.  In this respect, the 
Member States’ position was based on the argument that in the WTO practice the Member States do not include tax privileges in the AMS calculation, though they apply tax privileges in the agriculture.  
Due to the removal of the tax privileges from Ar menia’s AMS calculation the level of AMS for the 
base period went down to zero (reflected in the Do mestic Support Tables of 9 October, 2000).  In 
exchange, Armenia proposed to have a written statemen t in the Part IV of its Schedule ensuring that 
Armenia will be allowed to continue application of  tax privileges in the agricultural sector in the 
future as well as to avail itself the right to provid e domestic support in accordance with the Article 6.2 
of the Agreement on Agriculture. 
 
 Subsequent to removing the tax privileges fro m AMS calculation the Member States raised 
the issue of non-compliance of the Value Added Ta x exemption applied in Armenia with the WTO 
national treatment principle with respect to importe d and domestically produced agricultural products.  
                                                     
 
1 The attached document includ es some technical corrections.  WT/ACC/SPEC/ARM/4/Rev.1 
 Page 3 
 
 
According to the Member States’ position Armenia shall reform its VAT regime applied to agricultural products, in order to ensure the complia nce with the provisions of Article III of the GATT 
1994.  This, particularly, implies eliminating the existing VAT exemption
2 with respect to realization 
of domestically produced agricultural products, whic h would worsen the conditions of farming in 
Armenia.  
 
 Commitments under these conditions imply that ag ricultural support for Armenia will have to 
rest essentially on the five per cent de minimis  for "amber box" measures and on "green box" 
measures in the future.  Simulta neously, Armenia will not be able  to support its farmers through VAT 
exemption. Compliance with these obligations would limit significantly the ability of the Government 
of Armenia in designing and conducting agricultural policies in the future undermining the expected 
benefits of the WTO accession.  As the experien ce of Armenia as well as of other transition countries3 
has demonstrated, stringent budgetary constraints a nd underdeveloped agricultural institutions make it 
difficult to implement "green box" measures foreseen in the Agreement on Agriculture. 
 
 In order to be able to remedy the possible ne gative impacts of the VAT reform and to provide 
sufficient support needed for sustainable growth in agriculture, Armenia would need adequate 
flexibility in applying necessary "amber box" ty pes of support measures in the future.  This, 
particularly, can be achieved by having AMS, the level of which is determined on the basis of AMS 
calculation for 1995-1997. 
 
 
                                                      
2 VAT exemption is the largest subsidy component.  During 1995-1997 average annual level of VAT 
exemptions amounted to over US$131 million. 
3 See for instance documents G/AG/NG/W56 and G/AG/NG/W57 (November 2000) presented by 
several WTO Member countries in transition requesting inve stment and input subsidies, interest subsidies to be 
made exempt from domestic support reduction commitment and the de minimis  threshold applicable to 
transition economies to be increased.  WT/ACC/SPEC/ARM/4/Rev.1 
Page 4 ATTACHMENT 1 
 
 Supporting Table DS:1 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Measures exempted from the reduction commitment - "Green Box" 
 
thousand US$ 
Measure type Name and description of measure with reference to criteria 
annex 2 of the Agreement on Agriculture Monetary value of 
measure 
in year in question Data sources 
1 2 3 4 
(a) General  Services:      
 
 Research  
    
1995 
1996 
1997 
 Average  Research programs in agriculture financed by the state: soil and 
plant nutrition research program, plant breeding program, animal 
breeding program, animal genetic research program.  
Annex 2 Paragraph 2(a) 145.04 
270.15 
132.33 
 
182.51 
  
State Budget 
 Pest and disease control:
 
    
1995 
1996 1997  Average Programs financed by the state in plant and livestock sectors: 
prevention from the dissemination of pests and disease, plant protection, veterinary services to keep healthy and qualitative 
herd, control of sanitary conditions in animal breeding farms, anti epizootic measures. Annex 2 paragraph 2 (b) 1,580.00 
1,420.80 1,279.73 
 
1,426.84 
  
State Budget   WT/ACC/SPEC/ARM/4/Rev.1
 Page 5Measure type Name and description of measure with reference to criteria 
annex 2 of the Agreement on Agriculture Monetary value of 
measure 
in year in question Data sources 
1 2 3 4 
 Training services : 
    
1995 
1996 1997 
 
Average Agricultural Reform Support Project - training courses for 
representatives of regional agricu ltural agencies on agricultural 
inventory record keeping. Annex 2 paragraph 2 (c)   - 
- 
29.92 
 
9.97 
  
MAG or RA
4 
 Extension and advisory 
 services :    
 
1995 1996 1997  
Average  
Computer services for creation of the information system, transfer of information on the results of scientific research (plant and animal variety, development and utilization of agromachinery) to farmers, hydrometeorology service.  
Annex 2 paragraph 2(d)  
41.11 63.23 74.19 
 
59.51 
  
 
State Budget 
 Inspection Services
: 
    
1995 
1996 
1997 
 Average State inspection agencies for h ealth and food safety purposes 
Annex 2 paragraph 2 (e) 8.76  
16.49  
23.95  
 
16.4 
  
State Budget 
                                                     
 
4 Ministry of Agriculture of the Republic of Armenia  WT/ACC/SPEC/ARM/4/Rev.1 
Page 6 Measure type Name and description of measure with reference to criteria 
annex 2 of the Agreement on Agriculture Monetary value of 
measure 
in year in question Data sources 
1 2 3 4 
 Infrastructural Services : 
    
1995 
1996 1997 
 
Average Repair works and maintenance of  irrigation network, dams and 
drainage schemes, buildings and electric stations for the irrigation network, improvement of water supply facilities, land 
improvement activities.  Building of facilities for the 
development of the network of wholesale markets and the distribution system for agricultura l products Establishment of a 
network of agricultural cooperative banks.  Annex 2 paragraph. 2(g) 
 14,816.35  
10,634.24  
6,963.34  
 
10,804.64  
  
State Budget and MAG of 
RA 
 "Payments for relief from 
 natural disasters" : 
    
1995 
1996 
1997  Average Measures for protection and relief from hail and flood, 
exemption from land tax in regions suffering from natural 
disasters. Annex 2 paragraph 8  61.67 
60.90 
1,405.29 
 
509.29 
  
State Budget  
Govt. Decree 210 
 "Regional assistance 
 programmes" : 
    
1995 
1996 1997 
 
Average Land tax exemptions to farmers in uninhabited villages, remote 
and mountainous regions, and  regions close to border, to farmers of newly privatized lands in some regions.  
Annex 2 paragraph 13 410.96 
81.26 
103.54 
 
198.59 
   
TAXI of RA
5 
 
                                                      
5 Tax Inspectorate of the Republic of Armenia   WT/ACC/SPEC/ARM/4/Rev.1
 Page 7Supporting Table DS:2 
 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Measures exempted  from the reduction commitment Sp ecial and Differential Treatment - Development Programmes 
 
 
Measure type Name and description of measure 
with reference to criteria annex 2 of 
the Agreement on Agriculture Monetary value of measure 
in year in question Data source 
1 2 3 4 
    
   
   
No measures of this kind were implemented during the period 1995-1997 
 
  WT/ACC/SPEC/ARM/4/Rev.1 
Page 8 Supporting Table DS:3 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Measures exempted from the reduction comm itment- Direct Payments under Production - Li miting Programmes -"Exempt Direct Payment s" 
 
 
Measure type Name and description of 
measure with reference to 
criteria annex 2 of the 
Agreement on Agriculture Monetary value of measure 
in year in question Data sources 
1 2 3 4 
 
  
No support of this kind was provided during the period 1995-1997. 
 
   
   WT/ACC/SPEC/ARM/4/Rev.1
 Page 9Supporting Table DS:4 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar years 1995-1997 
Calculation of the Total Aggregate Measurement of Support 
thousand US$ 
Description of basic 
products Product-specific AMS 
(from supporting tables 
DS:5 to DS:7 below) Product-specific 
measurements of support 
(from supporting table 
DS:8  below) Total Support Value of Production Current Total AMS 
(Aggregate) 
1 2 3 4 5 6 
Wheat  
1995 
1996 
1997  
2,333.08 
5,394.31 
6,430.67   
2,333.08 
5,394.31 
6,430.67 
  
51,840.16 
83,422.01 
57,886.48  
de minimis* 
de minimis* 
6,430.67 
 
Grapes  
1995 1996 1997  
28.12 
713.47 
23.23   
28.12 
713.47 
23.23  
19,486.68 34,500.69 21,950.47  
de minimis
* 
de minimis* 
de minimis* 
 
Fruits  
1995 1996 1997  
33.55 64.09 27.51   
33.55 64.09 27.51  
60,905.03 49,740.01 33,262.00  
de minimis
* 
de minimis* 
de minimis* 
 
Non- product - specific  
1995 1996 1997     
192,893.08 194,904.43 169,673.23  
821,277.75 829,250.01 725,250.18  
192,893.08 194,904.43 169,673.23 
TOTAL AMS
 
1995 1996 1997 1995-1997 average      
821,277.75 829,250.01 725,250.18 791,925.98  
192,893.08 194,904.43 176,103.90 187,967.14 
                                                      
* Armenia avails itself of the 10 per cent de minimis provision pursuant to Article 6.4(b) of the Agreement on Agriculture  WT/ACC/SPEC/ARM/4/Rev.1 
Page 10 Supporting Table DS:5 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD: calendar  years 1995-1997 
Product-Specific Aggregate Measuremen ts of Support :Market Price Support 
 
 
Description  of 
basic products Calendar  
year/marketing Measure 
type (s) Applied 
administered 
price External 
reference 
price Eligible 
production Associated 
fees/levies Total 
market 
price support Data sources 
1 2 3 4 5 6 7 8 
((4-5)x6)-7 9 
         
No market price support was provided during the period 1995-1997 
                    WT/ACC/SPEC/ARM/4/Rev.1
 Page 11Supporting Table DS:6 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Product-Specific Aggregate Me asurements of Support: Non-Exempt Direct Payments 
 
Description 
of basic 
product Calendar 
year/ 
marketing 
year 
beginning.. 
 Measure 
type(s) Applied 
administered 
price External 
reference 
price Eligible 
production 
 Total price 
related direct 
payments Other non- 
exempt 
direct 
payment Associated 
fees / levies Total direct 
payments 
(thousand 
US $) Data 
source 
1 2 3 4 5 6 7 
((4-5)x6) 8 9 10 
(7+8-9) 11 
           
 
No support of this kind was provided during the period 1995-1997 
  WT/ACC/SPEC/ARM/4/Rev.1 
Page 12 Supporting Table DS:7 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Product-Specific Aggregate Measurements  of Support:  Other Product Specific Support and Total Pr oduct-Specific AMS 
 
thousand US$ 
Description 
of basic 
product Calendar/ 
marketing 
year 
beginning Measure 
type(s) Other 
product 
specific 
budgetary 
outlays Other product specific 
support (include calculation details) Associated 
fees/ 
levies Total other 
product 
specific 
support  Market price 
support 
(supporting 
Table DS-:) Non-exempt 
direct 
payments 
(supporting 
Table DS:6) Total 
AMS Data 
sources 
1 2 3 4 5 6 7 
(4+5-6) 8 9 10 
(7+8+9) 11 
Wheat Incentives for wheat production through value added tax exemptions for bread producers6 
 1995   (58326.96*0.2)*0.2=2,333.08  2,333.08   2,333.08
 1996   (132909*0.2)*0.2=5,316.36  5,316.36   5,316.36
 1997   (141577.49*0.2)*0.2=5,663.10  5,663.10   5,663.10
       
 average   4,437.51  4,437.51   4,437.51MAG of 
RA 
TAXI of 
RA 
           
Wheat Provision of "Seed Loans" by the state to producers of wheat, part of which was forgiven3 
 1995   0  0   0  1996   ((283.2-75.2)*135+(41.6-7)*120)/
413.47=77.95 77.95   77.95
 1997   ((7.5-1.5)*195+554.4*100)/490.65+
320000/490.65=767.57 767.57   767.57MAG of 
RA 
TAXI of 
RA 
        
 average   281.84  281.84   281.84  
  
Grapes Land tax exemptions for grape producers
7 
 1995   28.12  28.12   28.12
 1996   713.47  713.47   713.47
 1997   23.23  23.23   23.23
       
 average   254.94  254.94   254.94MAG of 
RA 
TAXI of 
RA 
 
                                                      
6 For calculation details see the Annex to DS:7 
7 Figures on land tax exemption are from reports of the Tax Inspectorate of RA reflecting the amounts of the budget revenue fore gone due to the tax exemptions.   WT/ACC/SPEC/ARM/4/Rev.1
 Page 13Supporting Table DS:7 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Product-Specific Aggregate Measurements  of Support:  Other Product Specific Support and Total Pr oduct-Specific AMS 
 
thousand US$ 
Description 
of basic 
product Calendar/ 
marketing 
year 
beginning Measure 
type(s) Other 
product 
specific 
budgetary 
outlays Other product specific 
support (include calculation details) Associated 
fees/ 
levies Total other 
product 
specific 
support  Market price 
support 
(supporting 
Table DS-:5) Non-exempt 
direct 
payments 
(supporting 
Table DS:6) Total 
AMS Data 
sources 
1 2 3 4 5 6 7 
(4+5-6) 8 9 10 
(7+8+9) 11 
 
Fruits  
Land tax exemptions for owners of newly established orchards 
 1995   33.55  33.55   33.55  
 1996   64.09  64.09   64.09   1997   27.51  27.51   27.51  
          
 average   41.72  41.72   41.72   WT/ACC/SPEC/ARM/4/Rev.1 
Page 14 ANNEX TO SUPPORTING TABLE DS:7 
 
Average annual exchange rates fo r Armenian drams against US$  
 
1995 1996 1997 
405.4 413.47 490.65 
 
 
Incentives for wheat production provided through value added tax exemptions for bread producers  
 
Wheat      
 1995   (58326.96  * 0.2)*0.2=  
    2333.08  
 
58326.96 - is the production  value of  the product co ncerned for the year in question (in thousand US$) 
 
0.2 - is the coefficient reflecting the portion of the value added by bread producers 
 
(58326*0.2) - represents the portion of the value added by bread producers  
 
0.2 - is the 20 per cent Value Added Tax 
 
 
Provision of "Seed Loans" by  the State to pr oducers of wheat, part of which was forgiven  
 
Wheat      
 1996   ((283.2-75.2)*135+(41.6-7)*120)/413.47=  
    77.95  
 
(283.2 –75.2) and (41.6-7) – are the diffe rences between the volumes of the seed loans provided and the volumes of the loans re turned by producers (in tons) 
 
135 and 120 – are per kilo prices for seeds fo r the loan in question in Armenian drams 
 
413.47 – is the annual average exchange rate of Armenian drams against US$1    WT/ACC/SPEC/ARM/4/Rev.1
 Page 15Supporting Table DS:8 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  1995-1997 
Product-Specific  Equivalent Measurements of Support 
 
 
Description 
of 
basic 
products Calendar/
marketing
year Measure 
type(s) Applied 
administered 
price Production 
eligible to 
receive the 
applied 
administered 
price Market price 
support 
budgetary 
outlays Equivalent 
measurement 
of 
support 
(include 
calculation 
details) Non- 
exempt 
direct 
payments Other 
product- 
specific 
support Associated 
fees/ 
levies Total 
monetary 
value of 
equivalent 
commitment Data 
sources 
1 2 3 4 5 6 7 8 9 10 11 
(7+8+9+10) 12 
            
            
No support of this kind was provided during the period 1995-1997 
 
  WT/ACC/SPEC/ARM/4/Rev.1 
Page 16 Supporting Table DS:9 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD :  calendar  year 
Non-Product-Specific Aggregat e Measurements of Support 
thousand US$ 
Measure 
Type(s) Calendar / 
Marketing year 
beginning Non-Product 
specific support 
(include calculation 
details) Other non-product- 
specific support 
(include calculation 
details) Associated fees 
/levies Total non-
product-specific 
support 
Million (US$) Data 
sources 
1 2 3 4 5 6 7 
1.  Exemptions from value added tax for producers of basic agricultural products8 
 1995  (821277.75*0.8)*0.2=131,404.44  131,404.44 
 1996  (829250*0.8)*0.2=132,680.00  132,680.00 
 1997  (725250.18*0.8)*0.2=116,040.03  116,040.03 
 average  126,708.16  126,708.16 
      MAG of RA 
TAXI of RA 
2.  Exemptions from profit tax for producers of basic agricultural products9 
 1995  56,838.17   56,838.17   
 1996  57,389.91   57,389.91   
 1997  50,192.39   50,192.39   
 average   54,806.82   54,806.82   
       
3.  Provision of advantageous loans for covering debts of agricultural water users to energy suppliers5 
 1995  (1700000*(1.119-0.01))/405.4=4,650.47  4,650.47  
 1996  (2900000*(0.664-0.01))/413.47=4,587.03  4,587.03  
 1997  (2800000*(0.542-0.01))/490.65=3,035.97  3,035.97   average   4,091.16  4,091.16  
 
4.  Provision of privileged loans at lower interest  rates to producers of basic agricultural products5 
 1995  0  0  
 1996  (336613*(0.664-0.36))/413.47=247.49  247.49  
 1997  (1091397*(0.542-0.36))/490.65=404.84  404.84  
 average   217.44  217.44  
       
                                                      
8 For calculation details see the Annex to DS:9 
9 Figures on land tax exemption are from reports of the Tax Inspectorate of RA reflecting the amounts of the budget revenue fore gone due to the tax exemptions.   WT/ACC/SPEC/ARM/4/Rev.1
 Page 17Measure 
Type(s) Calendar / 
Marketing year 
beginning Non-Product 
specific support 
(include calculation 
details) Other non-product- 
specific support 
(include calculation 
details) Associated fees 
/levies Total non-
product-specific 
support 
Million (US$) Data 
sources 
1 2 3 4 5 6 7 
TOTAL NON-PRODUCT SPECIFIC AMS  
 1995    192,893.08   1996    194,904.43  
 1997    169,673.23  
 average     185,823.58  
  WT/ACC/SPEC/ARM/4/Rev.1 
Page 18 ANNEX TO SUPPORTING TABLE DS:9 
  
1. Exemptions from value added tax for producers of basic agricultural products
 
 
 1995 (821277.75*0.8)*0.2=  
  131,404.44
 
821277.75 - is the value of the gross basic agricultural production in the year in question (in thousand US$) 0.8 - is the coefficient reflecting the portion of the value added by producers of basic agricultural products 
(821277.75*0.8) - represents the portion of the value added by producers of basic agricultural products 
0.2 - is the 20 per cent Value Added Tax 
 
 
2.  Provision of advantageous loans for covering de bts of agricultural water users to energy suppliers  
 
 1995  (1700000*(1.119-0.01))/405.4= 
  4650.47 
 
1700000 - is the amount of debts of agricultural produ cers which  was covered (in thousand Armenian drams) 
1.119 (119 per cent) - is the weighted average annual lending rate of  bank loans 0.01 (1 per cent) - is the interest rate for the privileged loans provided by the State 405.4 - is the annual average exchange rate of Arme nian drams against US$1 for  the year in question 
 
 
3. Provisions of privileged loans at lower inter est rates to producers of basic agricultural products
 
 
 1996  (336613*(0.664-0.36))/413.47= 
  247.49 
 
336613 - is the amount of loans provided to agricultural producers (in thousand. Armenian drams) 0.664 (66.4 per cent) - is the weighted average annual lending rate of bank loans 
0.36 (36 per cent) - is the interest rate for the privileged loans provided by the State 
413.47 - is the annual average exchange rate of Armeni an drams against US$1  in  the year in question 
   WT/ACC/SPEC/ARM/4/Rev.1
 Page 19Supporting Table ES:1 
EXPORT SUBSIDIES: 
REPORTING PERIOD:  calendar years 1995-1997 
Export Subsidies:  Outlay and quantity 
  
Description of 
products Direct export 
subsidies Sales of stocks Producer 
financial 
subsidies Cost reduction 
measures Internal 
transport 
subsidies Total product 
specific export 
subsidies Quantity of 
subsidized 
export Data source 
1 2 3 4 5 6 7 8 9 
        
 
 
 
No export subsidies were provided during the years 1995, 1996, 1997 
   
       
       
  WT/ACC/SPEC/ARM/4/Rev.1 
Page 20 ATTACHMENT 2 
 
 
Supporting Table DS:1 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Measures exempted from the reduction commitment - "Green Box" 
 
thousand US$ 
Measure type Name and description of measure with reference to criteria 
annex 2 of the Agreement on Agriculture Monetary value of 
measure 
in year in question Data sources 
1 2 3 4 
(a)  General  Services:   
    
 Research  
    
1995 
1996 
1997 
 
Average 
 Research programs in agriculture financed by the state: soil and 
plant nutrition research program, plant breeding program, animal 
breeding program, animal genetic  research program . Annex 2 
Paragraph 2(a) 145.04 
270.15 
132.33 
 
182.51 
  
State Budget 
 Pest and disease control:  
    
1995 
1996 1997 
 
Average Programs financed by the state in plant and livestock sectors: 
prevention from the dissemination of pests and disease, plant protection, veterinary services to keep healthy and qualitative 
herd, control of sanitary conditions in animal breeding farms, anti epizootic measures. Annex 2 paragraph 2 (b) 1,580.00 
1,420.80 1,279.73 
 
1,426.84 
  
State Budget   WT/ACC/SPEC/ARM/4/Rev.1
 Page 21Measure type Name and description of measure with reference to criteria 
annex 2 of the Agreement on Agriculture Monetary value of 
measure 
in year in question Data sources 
1 2 3 4 
 Training services : 
    
1995 
1996 1997 
 
Average Agricultural Reform Support Project - training courses for 
representatives of regional agricu ltural agencies on agricultural 
inventory record keeping. Annex 2 paragraph 2 (c)   - 
- 
29.92 
 
9.97 
  
MAG or RA
10 
    
 Extension and advisory 
 services :    
 
1995 1996 1997 
 
Average  
Computer services for creation of the information system, transfer of information on the results of scientific research (plant and animal variety, development and utilization of 
agromachinery) to farmers, hydrometeorology service. Annex 2 
paragraph 2(d)  
41.11 63.23 74.19 
 
59.51 
  
 
State Budget 
 Inspection Services
: 
    
1995 
1996 
1997 
 
Average State inspection agencies for h ealth and food safety purposes 
Annex 2 paragraph 2 (e) 8.76 
16.49 
23.95 
 
16.40 
  
State Budget 
                                                      
10 Ministry of Agriculture of the Republic of Armenia  WT/ACC/SPEC/ARM/4/Rev.1 
Page 22 Measure type Name and description of measure with reference to criteria 
annex 2 of the Agreement on Agriculture Monetary value of 
measure 
in year in question Data sources 
1 2 3 4 
 Infrastructural Services : 
    
1995 
1996 1997 
 
Average Repair works and maintenance of  irrigation network, dams and 
drainage schemes, buildings and electric stations for the irrigation network, improvement of water supply facilities, land 
improvement activities.  Building of facilities for the 
development of the network of wholesale markets and the  distribution system for agricultura l products Establishment of a 
network of agricultural cooperative banks. Annex 2 paragraph. 2(g) 
 14,816.35 
10,634.24 
6,963.34 
 
10,804.64 
  
State Budget and MAG of 
RA 
 "Payments for relief from 
 natural disasters" : 
    
1995 
1996 
1997 
 
Average Measures for protection and relief from hail and flood. Annex 2, 
paragraph 8 61.67 
60.90 
1,405.29 
 
509.29  
State Budget  
Govt. Decree 210 
    
   WT/ACC/SPEC/ARM/4/Rev.1
 Page 23Supporting Table DS:2 
 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Measures exempted  from the reduction commitment Sp ecial and Differential Treatment - Development Programmes 
 
 
Measure type Name and description of measure 
with reference to criteria annex 2 of 
the Agreement on Agriculture Monetary value of measure 
in year in question Data source 
1 2 3 4 
    
   
 
  
Armenia has the right to provide domestic support in the future in  accordance with the provisions of Article 6 paragraph 2 of t he Agreement on Agriculture. 
 
  WT/ACC/SPEC/ARM/4/Rev.1 
Page 24 Supporting Table DS:3 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Measures exempted from the reduction comm itment- Direct Payments under Production - Li miting Programmes -"Exempt Direct Payment s" 
 
 
Measure type Name and description of 
measure with reference to 
criteria annex 2 of the 
Agreement on Agriculture Monetary value of measure 
in year in question Data sources 
1 2 3 4 
 
No support of this kind was provided during the period 1995-1997. 
 
   WT/ACC/SPEC/ARM/4/Rev.1
 Page 25Supporting Table DS:4 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar years 1995-1997 
Calculation of the Total Aggregate Measurement of Support 
thousand US$ 
 Description of basic products Product-specific AMS 
(from supporting tables 
DS:5 to DS:7 below) Product-specific 
measurements of support 
(from supporting table DS:8  
below) Total Support Value of ProductionTotal AMS 
(Aggregate) 
1 2 3 4 5 6 
      
Wheat*      
1995 0  0 51,840.16 de minimis 1996 77.95  77.95 83,422.01 de minimis 
1997 767.57  767.57 57,886.48 de minimis 
      Non-product specific
*      
1995 4,650.47  4,650.47 821,277.75 de minimis 1996 4,834.52  4,834.52 829,250.01 de minimis 
1997 3,440.81  3,440.81 725,250.18 de minimis 
      Total AMS
*      
1995   4,650.47 821,277.75 0 1996   4912.47 829,250.01 0 1997   4208.38 725,250.18 0 
1995-1997 average   4590.44 791,925.98 0 
                                                     
 
* Does not include any kind of product specific and non-product specific tax privileges.  WT/ACC/SPEC/ARM/4/Rev.1 
Page 26 Supporting Table DS:5 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD: calendar  years 1995-1997 
Product-Specific Aggregate Measuremen ts of Support :Market Price Support 
 
 
Description  of 
basic products Calendar  
year/marketing Measure 
type (s) Applied 
administered 
price External 
reference 
price Eligible 
production Associated 
fees/levies Total 
market 
price support Data sources 
1 2 3 4 5 6 7 8 
((4-5)x6)-7 9 
         
No market price support was provided during the period 1995-1997 
           WT/ACC/SPEC/ARM/4/Rev.1
 Page 27Supporting Table DS:6 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Product-Specific Aggregate Me asurements of Support: Non-Exempt Direct Payments 
 
Description 
of basic 
product Calendar 
year/ 
marketing 
year 
beginning.. 
 Measure 
type(s) Applied 
administered 
price External 
reference 
price Eligible 
production 
 Total price 
related direct 
payments Other non- 
exempt 
direct 
payment Associated 
fees / levies Total direct 
payments 
(thousand 
US $) Data 
source 
1 2 3 4 5 6 7 
((4-5)x6) 8 9 10 
(7+8-9) 11 
           
 
No support of this kind was provided during the period 1995-1997 
 
  WT/ACC/SPEC/ARM/4/Rev.1 
Page 28 Supporting Table DS:7 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  calendar  years 1995-1997 
Product-Specific Aggregate Measurements  of Support:  Other Product Specific Support and Total Pr oduct-Specific AMS 
 
thousand US$ 
Description 
of basic 
product Calendar/ 
marketing 
year 
beginning Measure 
type(s) Other 
product 
specific 
budgetary 
outlays Other product specific 
support (include calculation details) Associated 
fees/ 
levies Total other 
product 
specific 
support  Market price 
support 
(supporting 
Table DS-:) Non-exempt 
direct 
payments 
(supporting 
Table DS:6) Total 
AMS Data 
sources 
1 2 3 4 5 6 7 
(4+5-6) 8 9 10 
(7+8+9) 11 
           
Wheat  
 Provision of "Seed Loans" by the state to producers of wheat, part of which was forgiven11 
 1995   0  0   0 
 1996   ((283.2-75.2)*135+(41.6-7)*120)/
413.47=77.95 77.95   77.95
 1997   ((7.5-1.5)*195+554.4*100)/490.65+
320000/490.65=767.57 767.57   767.57MAG of 
RA 
 
        
 average   281.84  281.84   281.84  
 
                                                      
11 For calculation details see the annex to Supporting Table DS:7   WT/ACC/SPEC/ARM/4/Rev.1
 Page 29ANNEX TO SUPPORTING TABLE DS:7 
 
Average annual exchange rates fo r Armenian drams against US$  
 
1995 1996 1997 
405.4 413.47 490.65 
 
 
Provision of "Seed Loans" by the State to pr oducers of wheat, part of which was forgiven  
ex. 
Wheat      
 1996   ((283.2-75.2)*135+(41.6-7)*120)/413.47=  
    77.95  
 
(283.2 -75.2) and (41.6-7) - are the differences between the vol umes of the seed loans provided and the volumes of the loans re turned by producers (in tons) 
 
135 and 120 - are per kilo prices for seeds fo r the loan in question in Armenian drams 
 
413.47 - is the annual average exchange rate of Armenian drams against US$1   WT/ACC/SPEC/ARM/4/Rev.1 
Page 30 Supporting Table DS:8 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD:  1995-1997 
Product-Specific  Equivalent Measurements of Support 
 
 
Description 
of 
basic 
products Calendar/
marketing 
year Measure 
type(s) Applied 
administered 
price Production 
eligible to 
receive the 
applied 
administered 
price Market price
support 
budgetary 
outlays Equivalent 
measureme
nt of 
support 
(include 
calculation 
details) Non- 
exempt 
direct 
paymentsOther 
product- 
specific 
support Associated 
fees/ 
levies Total 
monetary 
value of 
equivalent 
commitment Data 
sources 
1 2 3 4 5 6 7 8 9 10 11 
(7+8+9+10) 12 
            
            
No support of this kind was provided during the period 1995-1997 
 
   WT/ACC/SPEC/ARM/4/Rev.1
 Page 31Supporting Table DS:9 
DOMESTIC SUPPORT:  ARMENIA 
REPORTING PERIOD :  calendar  year 
Non-Product-Specific Aggregat e Measurements of Support 
 thousand US$  
Measure 
Type(s) Calendar / 
Marketing year 
beginning Non-Product specific 
support (include 
calculation details) Other non-product- 
specific support 
(include calculation 
details) Associated 
fees /leviesTotal non-product-
specific support 
 Data 
sources 
1 2 3 4 5 6 7 
       
1.  Provision of advantageous loans for covering de bts of agricultural water users to energy suppliers12 
 1995  (1700000*(1.119-0.01))/405.4=4,650.47  4,650.47 MAG of RA  1996  (2900000*(0.664-0.01))/413.47=4,587.03  4,587.03  
 1997  (2800000*(0.542-0.01))/490.65=3,035.97  3,035.97  
 average  4,091.16  4,091.16  
 
2.  Provision of privileged loans at lower interest  rates to producers of basic agricultural products
13 
 1995  0  0 MAG of RA  1996  (336613*(0.664-0.36))/413.47=247.49  247.49   1997  (1091397*(0.542-0.36))/490.65=404.84  404.84  
 average  217.44  217.44  
       
TOTAL NON-PRODUCT SPECIFIC AMS 
 1995    4,650.47   1996    4,834.52   1997    3,440.81   average    4,308.6  
 
 
                                                      
12 For calculation details see the annex to Supporting Table DS:9 
13 For calculation details see the annex to Supporting Table DS:9 
  WT/ACC/SPEC/ARM/4/Rev.1 
Page 32 ANNEX TO SUPPORTING TABLE DS:9 
  
1.   Provision of advantageous loans for covering debts of agricultural water users to energy suppliers
 
 ex 
 1995  (1700000*(1.119-
0.01))/405.4=4650.47 
   
 
1700000 - is the amount of debts of agricultural produ cers which  was covered (in thousand Armenian drams) 
1.119 (119 per cent) - is the weighted average annual lending rate of  bank loans 0.01 (1 per cent) - is the interest rate for the privileged loans provided by the State 405.4 - is the annual average exchange rate of Arme nian drams against US$1 for the year in question 
 
 2.  Provisions of privileged loans at lower inter est rates to producers of basic agricultural products
 
 ex. 
 1996  (336613*(0.664-
0.36))/413.47=247.49 
   
 
336613 - is the amount of loans provided to agricultural producers (in thousand. Armenian drams) 0.664 (66.4 per cent) - is the weighted average annual lending rate of bank loans 
0.36 (36 per cent) - is the interest rate for the privileged loans provided by the State 
413.47 - is the annual average exchange rate of Arme nian drams against US$1  in the year in question 
   WT/ACC/SPEC/ARM/4/Rev.1
 Page 33Supporting Table ES:1 
EXPORT SUBSIDIES: 
REPORTING PERIOD:  calendar years 1995-1997 
Export Subsidies:  Outlay and quantity 
  
Description of 
products Direct export 
subsidies Sales of stocks Producer 
financial 
subsidies Cost reduction 
measures Internal 
transport 
subsidies Total product 
specific export 
subsidies Quantity of 
subsidized 
export Data source 
1 2 3 4 5 6 7 8 9 
        
No export subsidies were provided during the years 1995-1997 
 
       
       
 
 
  WT/ACC/SPEC/ARM/4/Rev.1 
Page 34 ANNEX 
 
PART IV – AGRICULTURAL PRODUCTS: COMMITMENTS LIMITING SUBSIDIZATION 
 
(Article 3 of the Agreement on Agriculture) 
 
SECTION I – Domestic Support: Total AMS Commitments  
 
BASE TOTAL AMS Final bound commitment le vels Relevant Supporting Tables and 
document reference 
1 2 3 
 
US $ 135,000,000 
   
 
The de minimis  percentage with respect to product speci fic domestic support and non-product specific domestic support, respectively, which wo uld 
otherwise be required to be included in a Member’s calculation of its Current AMS, sh all be 10 per cent in the first year perio d following the date of 
Armenia’s accession to the WTO.  
The de minimis  percentage for product specific and non-product specific domestic  support, respectively, shall be 5 per cent after a six year period 
following the date of Armenia’s accession to the WTO. 
 Armenia has the right to provide domestic support in the future  in accordance with the provisions of Article 6 paragraph 2 of the Agreement on 
Agriculture.   Armenia’s de minimis  commitment does not include any kind of product specific and non- product specific tax privileges, and shall not be required to  
include tax privileges in the calculation of its Current AMS in the future.    WT/ACC/SPEC/ARM/4/Rev.1
 Page 35PART IV – AGRICULTURAL PRODUCTS: COMMITMENTS LIMITING SUBSIDIZATION 
 
SECTION II – Export Subsidies: Budgetary Outlay and Quantity Reduction Commitments 
 
Description of 
products and 
tariff item 
numbers at HS 
six digit level Base outlay 
level Calendar/other 
year applied 
 Annual and final 
outlay commitment 
levels Base 
quantity Calendar/other 
year applied 
 Annual and final 
quantity 
commitment levels Relevant Supporting 
Tables and document 
reference 
1 2 3 4 5 6 7 8 
  
Nil 
  
 
  WT/ACC/SPEC/ARM/4/Rev.1 
Page 36 PART IV – AGRICULTURAL PRODUCTS: COMMITMENTS LIMITING SUBSIDIZATION 
 
SECTION III – Export Subsidies: Commitments  Limiting the Scope of Export Subsidies 
 
Description of products Nature of commitments 
1 2 
 
 
Nil 
 
 
  
__________ 
 
  