. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/MEX/13/Rev.1*
8 March 1999
(99-0921)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions from the UNITED STATES Regarding the
New and Full Notification of MEXICO1
Revision
The following communication, dated 19 January 1999, has been received from the Permanent
Mission of the United States.
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The following are questions regarding the notification of Mexico made pursuant to
Article XVI of the GATT 1994 and Article 25 of  the Agreement on Subsidies and Countervailing
Measures, in document G/SCM/N/38/MEX.
1. On 14 November 1998, SECOFI published a decree to establish various programmes for
sectoral promotion, beginning with the electric a nd electronics industry.  The sectoral promotion
programme will reduce duties for manufacturers of certain goods, but does not make the tariff
reductions available to all importers.  Is this a new programme, or does it represent a change in an
existing programme?  Based on our understanding, this programme appears to be specific within themeaning of Article 2.1(a) of the Agreement.  Is our understanding correct?
2. Based upon the information available to us, the following programmes appear to meet the
notification requirements of Article 25 of the SCM Agreement.  Please explain why these
programmes were not included in your subsidy notification.
• Technology Transfer Unit (UTT) (administered by the Ministry of Trade and Industrial
Development (SECOFI)) – provides certain industries with processed and customized
solutions needed to solve technological and production problems.
• IMIS Research and Development – the Instituto Mexicano de Investigaciones
Siderurgicas (IMIS), a government-owned research and development organization,
performs independent and joint venture research with the iron and steel industry.
• Fund for the Promotion of Exports of Mexican Manufactured Products (FOMEX) –
FOMEX is a trust of the Mexican Treasury Department, with the National Bank of
Foreign Trade acting as trustee for the programme.  The National Bank of Foreign Trade,
through financial institutions, makes FOMEX loans available at preferential rates to
                                                     
* English only.
1 G/SCM/N/38/MEXG/SCM/Q2/MEX/13/Rev.1
Page 2
Mexican manufacturers and exporters for two purposes:  pre-export financing and export
financing.
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