WORLD TRADE
ORGANIZATIONG/SCM/N/48/TUR
10 November 1999
(99-4852)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Updating Notification Pursuant to Article XVI:1 of
the GATT 1994 and Article 25 of the SCM Agreement
TURKEY
The following communication, dated 20 October 1999, has been received from the Permanent
Mission of Turkey.
______________
TABLE OF CONTENTS
Page
I. ENCOURAGING INVESTME NTS IN TU RKEY .............................................................1
II. CREDIT PROGRAMMES ...................................................................................................3III. AGRICULTURAL PRODUCTS........................................................................................10
With reference to the provisions of Article XVI:1 of the GATT and Article 25.2 of the
Agreement on Subsidies and Countervailing Measures, please find attached the update notification
concerning the year 1999.
This notification contains updated information about encouraging investments and the credit
programmes.
I. ENCOURAGING INVESTMENTS IN TURKEY
The general outlines and encouragement elements in relation to Decree No. 98/10755 which
contains the current Investment Encouragement Mech anism of Turkey have been summarized in the
1998 full notification (at the part of "Encouraging Investments in Turkey") which has been published
in document G/SCM/N/38/TUR.
In connection with the legislative changes made in the tax laws and implementation practices,
Decree No. 99/12475, dated 22 February 1999 (Official Gazette, 25 March 1999) and DecreeNo. 99/12656 dated 14 April 1999 (Official Gazette,  25 April 1999) amending Decree No. 98/10755
have been published in the Official Gazette and put into force.
The changes made by the above-mentioned decrees modifies the subparagraphs 5(c) and 5(g)
of the full notification of Turkey (Part I:  Encouraging Investments in Turkey; paragraph 5 – How the
programme works).G/SCM/N/48/TUR
Page 2
5(c) – Value Added Tax (VAT) support towards the purchase of machinery and equipment
The most important changes in relation to the implemented encouragement elements have
been made with the related Articles (Article 1 and 3) of Decree No. 99/12656 dated 14 April 1999
amending Decree No. 98/10755 on the Investment Encouragement Mechanism within the general
investment encouragement system.
The previous encouragement element "Value Added Tax (VAT) deferral on the imported
machinery and equipment" had been implemented auto matically in accordance with the rules of the
tax laws and as it has taken place in the 1998 Full Notification of Turkey.  The encouragement
element "Value Added Tax (VAT) support toward s the purchase of machinery and equipment" has
been implemented simultaneously to provide equal treatment among the imported and domesticallypurchased machinery to be used within the scope of an investment encouragement certificate.
As it has been foreseen within the Tax Law No. 4369, dated 22 July 1998, the encouragement
element "Value Added Tax (VAT) deferral on the imported machinery and equipment" has been
abolished and a new encouragement element has been introduced known as "Value Added Tax (VAT)exemption".
The nature of the encouragement element called "Value Added Tax (VAT) exemption" is to
exempt the accrued value added tax over both domestically purchased and imported machinery and
equipment, as foreseen on the import and domestic global lists approved by the Undersecretariat ofTreasury during the issuance of an investment encouragement certificate.  In order to preserve the
spirit of equal treatment among the imported and domestically purchased machinery and equipment,
adaptation of the general investment encouragem ent mechanism in accordance with the Tax Law
No. 4369 was necessary and it has been accomplished.
The above-mentioned adaptation requirements in relation to the Tax Law No. 4369 have been
satisfied with the Decree No. 99/12656 amending  the Decree No. 98/10755 by means of abolishing
the encouragement element "Value Added Tax (VAT) support towards the purchase of machinery and
equipment".  The new Decree has put forward the necessary regulations on the current regime
concerning the encouragement element "Value Added Tax (VAT) exemption".
5(g) – Credit allocation from the Fund
In accordance with Article 3 of Decree No. 99/12475, dated 22 February 1999, amending
Decree No. 98/10755, investments to be realized in developed regions and normal regions and
investments of small and medium sized enterprises within the scope of an investment encouragement
certificate have been encountered as "Special Importance Sector" in investment allowanceimplementation point of view in relation to the rules of the additional Article 3 of the Income Tax
Law, Law No. 193.  With this Article, implementation of the encouragement element called
investment allowance has been foreseen as 100 per ce nt in the investments to be realized in Special
Importance Sectors, Priority Development Regions and Organized Industrial Regions and 200 per
cent for the industrial investments which TL equivalent is over US$250 million and carrying at leasttwo of the following criteria:  increasing international competition skill, requiring high technology,
having higher added value, increasing tax revenues and employment.
With Article 4 of Decree No. 99/12475 amendi ng Decree No. 98/10755, new regulations have
been made in relation to the credit allocation mechanism from the Fund.  Within the limits to be
determined by the Undersecretariat of Treasury, Fund-based credit can be allocated in order to guide
and encourage the investments targeting regional development, SME investments, investments in
priority technology areas to be determined by Higher Science and Technology Board, environmentalG/SCM/N/48/TUR
Page 3
protection, technology park, research and development (R&D) in compliance with the legislation
about state encouragement on investments.
In relation to the above-mentioned description, "investments targeting regional development"
it has been implied that, investments which are completely new investments, TL fixed investment costequivalent is over US$8 million, creating at least 75 jobs in the animal husbandry, weaving ready-
made wear and transportation sectors and located in Batman, Bingöl, Bitlis, Diyarbakir, Hakkari,
Hatay, Kars (annexed with the Article 7 of Decree  No. 99/12656), Mardin, Mus, Siirt, Sirnak, Tunceli
and Van provinces (compared to the western part of Turkey, these provinces are regarded as the least
developed parts with considerable differences in the socioeconomic indicators like GDP/capita,
unemployment rate, domestic migration rate etc.).  The objective of these modifications simply
consists in improving less developed regions through a regional development strategy approach.
II. CREDIT PROGRAMMES
1. Title of the subsidy programme
Credit programmes
Türk Eximbank supports exporters, export-oriented manufacturers and overseas investors
with short, medium and long-term cash and non-cash credit programmes.  Moreover, exportreceivables are discounted in order to promote sales on deferred payment conditions and to increase
export trade volume.
Short-term export credits
In 1998, 65 per cent of short-term credits offered by Türk Eximbank have been extended via
intermediary Turkish commercial banks which are allo cated credit lines and 35 per cent of the short-
term credits have been extended directly by Türk Eximbank.  Credits are extended either in TL or in
foreign currency under this programme.  The Bank has financially supported approximately 12 per
cent of Turkey's exports by its short-term credits in 1998.
Pre-shipment Turkish Lira Export Credit (PSEC TL) Programme:  a short-term credit facility
extended in TL covering all sectors and providing financial support to exporters from the early stages
of production.
Small and Medium Scale Enterprises (SMSEs) Export Credit Programme :  (a sub-programme
of PSEC TL).
Priority Development Areas Export Credit Programme :  (a sub-programme of the PSEC TL).
Pre-shipment Foreign Currency Export Credit (PSEC FX) Programme:  a short-term credit
facility extended in FX covering all sectors and providing financial support to exporters from the early
stages of production.
Foreign Trade Companies (FTC) Credit Lines:  extended to foreign trade corporate
companies and sectoral foreign trade companies in bo th TL and foreign currency to meet their export
financing needs.G/SCM/N/48/TUR
Page 4
The programme has TL and foreign exchange credit options:
FTC Short-term Turkish Lira Export Credit Programme
FTC Short-term Foreign Currency Credit Programme
Performance Related Foreign Currency Credit Programme:  extended to exporters and export-
oriented manufacturers in foreign currency.
Performance-Related Turkish Lira Export Credit Programmes:  extended to exporters and
export-oriented manufacturers in TL.
Short-Term Export Credit Discount Programme:  a post-shipment finance facility in which
export receivables subject to bankers' acceptances provided by commercial banks and/or irrevocable
letters of credit are discounted by Türk Eximbank.
Medium and Long-Term Export Credits
Buyers Credit and Guarantee Programme:  Türk Eximbank extends credit lines under
sovereign guarantee to correspondent banks and financial institutions in various countries.  Within the
framework of this programme, financing facilities are allocated for both export and project finance.
Islamic Development Bank (IDB) Export Financing Scheme:  Türk Eximbank acts as an
intermediary for the Export Financing Scheme, wher e the IDB has the credit approval authorization
and the buyer's risk is borne by the IDB.  It entails financing on buyer credit basis.
This scheme also entails a limit amounting to Islamic Dinars 20 million (approximately
$29 million) provided by the IDB.  Türk Eximbank has the credit approval authorization and thebuyer's risk is borne by Türk Eximbank.  The figures in the table at the end of the document are the
disbursements from this limit.
IDB Import Trade Financing Operations (ITFO Line):  a medium-term revolving financing
facility provided by IDB's ITFO Line financing scheme.  Export commitment is required by Türk
Eximbank from the beneficiaries of this programme.
Overseas Chain Store Investment Credit Programme:  Türk Eximbank supports Turkish
entrepreneurs' overseas investments for the establishment of shopping malls and chain stores in which
Turkish brand consumer goods may be offered for sale.
Letter of Guarantee Programme for Ship-building and Exporting:  Turkish firms involved in
ship-building and/or the export of ships will be provided letters of guarantee in order to secure
financing from both domestic and foreign banks or obtain pre-financing either in advance or in
instalments from the buyer.
Specific Export Credit Programme:  a medium-term pre-shipment financing facility provided
to manufacturers/exporters for their foreign currency generating projects.  Under this programme, the
Bank provides support to companies which engage in ship-building and factory construction, and
manufacturer/exporters that produce high value-added industrial goods.
Insurance Programmes
Through the export credit insurance programmes, which is one of the Türk Eximbank's main
areas of activity, exporters' receivables are insured against commercial and political risks within
certain limits.G/SCM/N/48/TUR
Page 5
Short-Term Export Credit Insurance
Short-Term Whole Turnover Export Credit Insurance Programme:  provides companies with
one year blanket insurance cover for exports purchased on short-term credits.  This programme covers
all goods exported by Turkish companies.
Post-Shipment Export Credit Discount Programme :  a short-term facility where two of the
leading Turkish commercial banks (with whom Türk Eximbank reached an agreement) discount the
export receivables related to shipments covere d under the Short-Term Export Credit Insurance
Programme of Türk Eximbank.
Medium- and Long-Term Insurance Facilities
Specific Export Credit Insurance Programme:  a single buyer insurance programme providing
cover against political and commercial risks for both the pre-shipment and post-shipment stages.  This
programme covers the exports of capital and semi-capital goods.
Specific Export Credit Insurance Post-Shipment Political Risk Insurance Programme:  a new
single buyer insurance programme providing cover against political risks in the post-shipment stage
for receivables with credit terms of up to five years relating to the export of capital and semi-capital
goods.
Specific Export Credit Insurance Comprehensive Post-Shipment Risk Policy:  provides cover
for the medium and long-term exports of capital and semi-capital goods against both commercial and
political risks.
Overseas Contractors' Services Insurance Programme:  aims to insure Turkish contractors'
overseas activities in politically high risk countries.  The programme is currently under review.
Overseas Investment Insurance Programme:  aims to provide cover to Turkish companies'
new direct investments abroad against political risks.  The groundwork for this programme has been
laid out in coordination with the Multilateral In vestment Guarantee Agency (MIGA).  The programme
is planned to be implemented in 1999.
2. Policy objective and/or purpose of the subsidy
Credit Programmes
Short-Term Export Credits
Pre-Shipment Turkish Lira Export Credit (PSEC TL) Programme:  aims to meet the financing
needs of exporters and/or export oriented producers starting from the early stages of production.
Small and Medium Scale Enterprises (SMSEs) Credit facility:  aims to support SMSEs.
Priority Development Areas Credit Facility :  aims to help exporters in priority development
areas and ultimately eliminate the social and economic gaps which exist between these regions and
Turkey's developed regions.G/SCM/N/48/TUR
Page 6
Pre-Shipment Foreign Currency Export Credit Programme:  same as PSEC TL.
Foreign Trade Companies Credit Lines:  aims to assist large export trading companies in their
export financing needs.
Performance Related Foreign Currency and Turkish Lira Export Credit Programmes:  aims to
increase the competitiveness of exporters in international markets.
Short-Term Export Credit Discount Programme:  aims to increase the competitiveness of
Turkish exporters in international markets by enabling them to sell Turkish goods on deferred
payment conditions and eliminating overseas risks thereby encouraging them to enter into new and
target markets.
Medium- and Long-Term Export Credits
Buyers Credit and Guarantee Programme:  aims to boost the competitiveness of Turkish
exporters and contractors in international markets.  Through this programme, Türk Eximbank enables
foreign buyers to purchase Turkish goods and services on deferred payment conditions.  Moreover,
the Bank provides a risk-free environment to thes e companies in their activities in the markets
pertaining to high political and commercial risks.
Islamic Development Bank (IDB) Export Financing Scheme:  aims to provide financing for
all goods having at least 40 per cent domestic content exported to member countries of the
Organization of Islamic Conference (OIC) and OECD.
IDB Import Trade Financing Operations (ITFO Line):  aims to provide finance for the
imports of raw materials, semi-capital and capital goods from member and non-member countries of
OIC, which are used in the production of export goods.
Overseas Chain Store Investment Credit Programme:  aims to support direct sales of Turkish
brand goods to consumers in foreign markets.
Letter of Guarantee Programme for Ship-Building and Exporting:  aims to provide export
credit facilities to Turkish dockyards in order to increase their shares in international markets.
Specific Export Credit Programme:  aims to meet credit demands which cannot be fulfilled
within the existing credit programmes of Türk Eximbank.
Insurance Programmes
As a result of revisions made in February 1997, Short-Term Export Credit Insurance, which
had previously been compulsory for the beneficiaries of the Pre-Shipment Export Credit Programme,
became optional.  In order to facilitate exports to priority target markets through the provision of
insurance protection, Türk Eximbank has extended insurance lines to selected banks in these countrieswithin the framework of the Trade Financing Agreements.  Under these agreements, ILCs issued by
these banks are covered against political and commercial risks.
Short-Term Export Credit Insurance
Short-Term Whole Turnover Export Credit Insurance Programme:  this post-shipment facility
aims to provide cover against political and commercial risks.G/SCM/N/48/TUR
Page 7
Post-Shipment Export Credit Discount Programme:  the Bank aims to channel a proportion of
the commercial banks' funds to export financing.
Medium- and Long-Term Insurance Facilities
Specific Export Credit Insurance Programme:  aims to provide insurance cover against
commercial and political risks for the export of capital and semi-capital goods having at least 60 per
cent domestic content and sold on credit terms of one to five years maturity.
Specific Export Credit Insurance Post-Shipment Political Risk Insurance Programme:  aims to
provide insurance cover against political risks in the post-shipment stage for receivables with credit
terms of up to five years relating to the export of capital and semi-capital goods with at least 60 percent domestic content.
Specific Export Credit Insurance Comprehensive Post-Shipment Risk Policy:  aims to provide
cover to the medium- and long-term exports of capital and semi-capital goods against both
commercial and political risks.
Overseas Contractors' Services Insurance Programme:  aims to insure Turkish contractors
overseas activities in politically risky countries.
Overseas Investment Insurance Programme:  aims to provide cover against political risks for
the overseas investments of Turkish firms.3. Background and authority for the subsidy
Türk Eximbank regularly presents its annual programmes to the Supreme Advisory and
Credit Guidance Committee chaired by the State Minister for Treasury.  This Committee fixes upper
limits of credits to be extended by the Bank, guarantees to be issued and insurance transactions to be
effected either as a total amount or by countries.  Procedures and guidelines concerning the
implementation of all above-mentioned programmes ar e administered within the framework of annual
programmes by the Board of Directors of the Bank.  Regarding medium- and long-term credit,
guarantee and insurance facilities, the Bank fu lly complies with the OECD Consensus, which
determines the guidelines for the officially supported export credits for two years or more.  InApril 1998, Turkey became a full member of the Export Credits and Credit Guarantees Group of
OECD.  Türk Eximbank has been a full member of  the Berne Union, an international association of
export credit insurers and sends regular information to these organizations.
4. Form of the subsidy
Short-Term Export Credits
In the form of a loan.
Buyers Credit and Guarantee Programme
It may be in the form of direct lending or guarantee.
Other medium and long-term export credits
In the form of a loan.G/SCM/N/48/TUR
Page 8
Short, Medium and Long Term Insurance Facilities
In the form of export credit insurance.
5. To whom and how the subsidy is provided
Credit Programmes
Short-Term Export Credits
Pre-Shipment Turkish Lira Export Credit (PSEC TL) Programme:  extended to
manufacturers, manufacturer-exporters and exporters and the interest rate is determined by Türk
Eximbank according to money market rates and loan repayment periods.
Small and Medium-Scale Enterprises (SMSEs) Credit Facility :  extended only to small and
medium scale manufacturers and manufacturer exporters of up to 200 employees.  Interest rate is the
same as that of PSEC TL.
Priority Development Areas Credit Facility :  extended to companies located in Turkey's
priority development areas of Turkey.  Interest rate is slightly lower than PSEC TL interest rate.
Pre-Shipment Foreign Currency Export Credit Programme:  extended to manufacturers,
manufacturer-exporters and exporters.  Interest ra te is LIBOR+spread or FIBOR+spread and TIBOR
for JPY credits.  Spread is determined by Türk Eximbank.
Foreign Trade Companies Credit Lines:  amended to Foreign Trade Corporate Companies
(FTCC) and Sectoral Foreign Companies (SFTC) and allocated on the basis of previous year's export
performance.  Applicants must be entitled to FTCC and SFTC status by the Foreign Trade
Department.  Interest rate for FTC Short-Term Export Credit Programme  is the same as that of
PSEC TL and the interest rate for FTC Short-Term Foreign Currency Credit Programme  is the
same as that of PSEC FX.
Performance Related Foreign Currency and Turkish Lira Export Credit Programmes:
extended to manufacturers, manufacturer-exporters and exporters except FTCC and SFTC.  The
interest rate for the FX option is the same as that of the PSEC FX and the rate for the TL option is the
same as that of the PSEC TL.
Short-Term Export Credit Discount Programme:  export receivables subject to bankers'
acceptance and/or irrevocable letters of credit are discounted by Türk Eximbank and in this way a
post-shipment financing facility is provided for Turkish exporters.  Export receivables with a maturity
of up to 180 days are discounted on LIBOR.
Medium- and Long-Term Export Credits
Buyers Credit and Guarantee Programme:  credit lines are extended under sovereign
guarantee to correspondent banks and financial institutions in various countries.  Interest rates are
established between the parties concerned a nd also according to the OECD Consensus.
Islamic Development Bank (IDB) Export Financing Scheme:  extended to Turkish exporters
who export goods having at least 40 per cent domestic content to member countries of the OIC and
the OECD.  The mark-up is changed to LIBOR+spr ead per annum where spread is determined on a
transaction basis.G/SCM/N/48/TUR
Page 9
IDB Import Trade Financing Operations (ITFO Line):  extended to Turkish importers for their
imported input requirements.  The mark-up rate is changed to LIBOR+1.5 for the imports from the
member countries of OIC and LIBOR+2.5 for th e imports from non-member countries of OIC.
Overseas Chain Store Investment Credit Programme:  extended to Turkish entrepreneurs who
invest abroad for the establishment of shopping malls and chain stores in foreign countries.  The
interest rate is determined specifically for each project according to market conditions and
characteristics of the projects.
Letter of Guarantee Programme for Ship-Build ing and Exporting:  Turkish firms involved in
ship-building and/or the export of ships will be provided letters of guarantee in order to secure
financing from both domestic and foreign banks or obtain pre-financing either in advance or ininstalments from the buyer.  The commission rate is determined by Türk Eximbank for each
transaction.
Specific Export Credit Programme:  a medium-term financing facility provided to
manufacturers/exporters for their foreign currency generating projects in Turkey or abroad at pre-
shipment stage.  It is provided with the terms determined on a project basis.
Insurance Programmes
Short-Term Export Credit Insurance
Short-Term Whole Turnover Export Credit Insurance Programme:  all Turkish exporters are
eligible for this programme.  The premium rates vary according to the risk classification of the buyer's
country, the terms and conditions of payment and the nature of the buyer (public/private).
Post-shipment Export Credit Discount Programme:  export receivables of Turkish exporters
related to shipments covered under the Short-Term Export Credit Insurance Programme of Türk
Eximbank are discounted by commercial banks.  The maturity is up to 360 days and the interest rate
applied is LIBOR+spread.  Spread is determined by Türk Eximbank.
Medium- and Long-Term Insurance Facilities
Specific Export Credit Insurance Programme:  all Turkish exporters are eligible for this
programme.  The premium rates vary according to the risk classification of the buyer's country, the
terms and conditions of payment and the nature of the buyer (public/private).
Specific Export Credit Insurance Post-Shipment Political Risk Programme:  same as Specific
Export Credit Insurance Programme.
Specific Export Credit Insurance Comprehensive Post-Shipment Risk Policy:  same as
Specific Export Credit Insurance Programme.
Overseas Contractors' Services Insurance Programme:  Turkish contracting companies
engaged in turnkey or partial building projects, or the expansion and assembly of industrial plants
tendered by an overseas employer are eligible for this programme.
Overseas Investment Insurance Programme:  Turkish companies who have new direct
investments in overseas enterprises.  Premium rates vary according to country and level of
investment.G/SCM/N/48/TUR
Page 10
6. Duration of the subsidy
There is no time-limit to Türk Eximbank programmes.  The programmes may be revised,
eliminated or new programmes are introduced according to the requirements of Turkish exporters and
international rules and regulations.
Türk Eximbank's Credits
in the Three Most Recent Years
($ million)
Programmes 1996 1997 1998
Pre-Shipment Turkish Lira Export Credit 772.3   732.1   855.0
Pre-Shipment Foreign Currency Export Credit    1,361.2 1,123.8 1,196.8
FTC Short-Term Export Credit 190.7   125.6   188.3
FTC Short-Term Foreign Currency Credit 361.0   415.1   436.2
Performance Related TL Export Credit - 84.9   212.0
Performance Related FX Export Credit 282.5   393.9   343.2
Short-Term Export Credit Discount Programme - 12.0     13.0
Buyer Credit & Guarantee Programme 97.6    113.3   215.0
IDB Export Financing Scheme 19.1 3.4       3.1
IDB ITFO Line -      13.3      9.7
Overseas Chain Store Investment Credit - 8.2      1.8
Letter of Guarantee Programme for Ship-Building
and Exporting- 5.3     22.7
Specific Export Credit Programme - 6.7           18.1
III. AGRICULTURAL PRODUCTS
A. DECREE 98/2 OF THE MONEY-CREDIT AND COORDINATION COUNCIL
1. Title of the subsidy programme
The title of the subsidy programme is "Export Subsidy Programme for Agricultural Products".
The Decree 98/2 of the Money-Credit and Coordination Council was announced in the OfficialGazette dated 20 February 1998. which has been applied between 1 January and 30 April 1998.
2. Policy objective and/or purpose of the subsidy
The policy objective of this export subsidy programme is to develop Turkey's export potential
and to channel excessive production to exports.
3. Background and authority of the subsidy
Authority for the subsidy is the Money-Cred it and Coordination Council.  The Council is
comprised of the Ministers of State, the Minister of Agriculture, the Undersecretary of the Ministry of
Finance, the Undersecretary for State Planning Organization, the Undersecretary for Foreign Trade,the Undersecretary for Treasury and the Head of the Central Bank.G/SCM/N/48/TUR
Page 11
4. Form of the subsidy
The form of the subsidy is cash grants.  These subsidies are provided to the exporters of this
product as a fixed amount per ton in US dollars.
5. Subsidy per unit
The subsidy rate of the product is given below.
Product Rate
(in US$/ton)Share of exported quantity
eligible to receive the subsidy
Citrus 34 95%
6. Statistical data permitting an assessment of the trade effects of the subsidy
No statistical data permitting an assessment of the trade effects of this subsidy is available.
B. DECREE 98/11 OF THE MONEY-CREDIT AND COORDINATION COUNCIL1. Title of the subsidy programme
The title of the subsidy programme is "Export Subsidy Programme for Apples".  The Decree
98/11 of the Money-Credit Coordination Council was announced in the Official Gazette dated
21 June 1998. which has been applied between 22 June and 22 July 1998.
2. Policy objective and/or purpose of the subsidy
The policy objective of this export subsidy programme is to channel excessive production to
exports.
3. Background and authority of the subsidy
Authority for the subsidy is the Money-Cred it and Coordination Council.  The Council is
comprised of the Ministers of State, the Minister of Agriculture, the Undersecretary of the Ministry of
Finance, the Undersecretary for State Planning Organization, the Undersecretary for Foreign Trade,
the Undersecretary for Treasury and the Head of the Central Bank.
4. Form of the subsidy
The form of the subsidy is cash grants.  These subsidies are provided to the exporters of this
product as a fixed amount per ton in US dollars.G/SCM/N/48/TUR
Page 12
5. Subsidy per unit
The subsidy rate of the product is given below.
Product Rate
(in US$/ton)
Apples 65
6. Statistical data permitting an assessment of the trade effects of the subsidy
No statistical data permitting an assessment of the trade effects of this subsidy is available.
C. DECREE 98/12 OF THE MONEY-CREDIT AND COORDINATION COUNCIL
1. Title of the subsidy programme
The title of the subsidy programme is "Export Subsidy Programme for Agricultural Products".
The Decree 98/12 of the Money-Credit Coordination Council was announced in the Official Gazette
dated 30 June 1998. which has been applied between 1 January and 31 December 1998.  This
programme came into force replacing Decree 97/2 and 97/4.
2. Policy objective and/or purpose of the subsidy
The policy objective of this export subsidy programme is to develop Turkey's export potential
in processed agricultural products.
3. Background and authority of the subsidy
Authority for the subsidy is the Money-Cred it and Coordination Council.  The Council is
comprised of the Ministers of State, the Minister of Agriculture, the Undersecretary of the Ministry of
Finance, the Undersecretary for State Planning Organization, the Undersecretary for Foreign Trade,
the Undersecretary for Treasury and the Head of the Central Bank.
4. Form of the subsidy
The subsidies are given to the producer/exporters or exporters by deducting their debts (taxes,
social insurance premium costs, energy costs, te lecommunication costs) to the public corporations
from the subsidy amounts they acquire.G/SCM/N/48/TUR
Page 13
5. Subsidy per unit
The subsidy rate per product is given below.
Product Rate
(in US$/ton)Share of exported quantity
eligible to receive the subsidy
Cut flowers (fresh) 297 59%
Vegetables frozen (excl.
potatoes)107 40%
Vegetables (dehydrated) 370 23%
Fruits (frozen) 94 32%
Preserves, pastes 57 72%
Homogenized fruit preparations 55 69%
Fruit juices (concentrated) 170 33%
Olive oil 96 100%
Potatoes (frozen and fried) 55 85%
Prepared or preserved fish 150 100%
Meat of poultry (excl. edible
offals)202 28%
Creams 70 87%
Eggs $7/1,000 pieces 10%
The second column specifies that the subsidy will only be paid on determined percentage of
the quantity exported.  This system has been used owing to the quantity constraint of each subsidizedproducts that was accepted by the Turkish Government by signifying WTO Agreement on
Agriculture.
6. Statistical data permitting an assessment of the trade effects of the subsidy
No statistical data permitting an assessment of the trade effects of this subsidy is available.
D. DECREE 98/18 OF THE MONEY-CREDIT AND COORDINATION COUNCIL1. Title of the subsidy programme
The title of the subsidy programme is "Export Subsidy Programme for Apples".  The
Decree 98/18 of the Money-Credit and Coordination Council was announced in the Official Gazette
dated 30 September 1998, which has been applied between 1 October 1998 and 30 April 1999.G/SCM/N/48/TUR
Page 14
2. Policy objective and/or purpose of the subsidy
The policy objective of this export subsidy programme is to develop Turkey's export potential
and to channel excessive production to exports.
3. Background and authority of the subsidy
Authority for the subsidy is the Money-Cred it and Coordination Council.  The Council is
comprised of the Ministers of State, the Minister of Agriculture, the Undersecretary of the Ministry of
Finance, the Undersecretary for State Planning Organization, the Undersecretary for Foreign Trade,
the Undersecretary for Treasury and the Head of the Central Bank.
4. Form of the subsidy
The form of the subsidy is cash grants.  These subsidies are provided to the exporters of this
product as a fixed amount per ton in US dollars.
5. Subsidy per unit
The subsidy rate of the product is given below.
Product Rate
(in US$/ton)
Apples 65
6. Statistical data permitting an assessment of the trade effects of the subsidy
No statistical data permitting an assessment of the trade effects of this subsidy is available.
__________