RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/CHE/10
17 July 2001
(01-3521)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions Posed by the UNITED STATES
Regarding the New and Full Notification of SWITZERLAND1
The following communication, dated 14 July 2001, has been received from the Permanent
Mission of the United States.
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The following are questions regarding the notification of Switzerland made pursuant to
Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and CountervailingMeasures, in document G/SCM/N/71/CHE, dated 24 April 2001.
Assistance for Economic Zones Which Are under Economic Renewal
1. How is it decided whether the aid or relief under this programme will take the form tax relief,
interest subsidies on investment credits or guarantees on investment credits?  Is it possible that one
entity may be the recipient of all three types of aid?
2. What types of tax relief are granted under this programme?  Has tax relief been granted under
this programme?
3. Is assistance under this programme available to all enterprises and industries in the ‘economic
renewal areas’?
4. Are the ceilings on the interest subsidies a per year ceiling?  Or does the ceiling represent a
per-company ceiling?
5. How many enterprises or industries have been provided aid or assistance under this
programme?
6. Is assistance or aid automatic if an enterprise or industry is in an economic renewal area?  Or
must enterprises apply for each type of aid?
7. Does approval for assistance under this programme in any way depend on an enterprise’s or
industry’s ability to export its product?
                                                     
1 G/SCM/N/71/CHEG/SCM/Q2/CHE/10
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Assistance for Mountain Areas
1. Can you please explain, as part of the genera l goal or purpose of the programme, what the
desired outcome of assistance provided under this programme is?  Is it to create more business in the
mountain areas?  Is it to support the creation or manufacture of goods to export?
2. Is the Swiss Guarantee Cooperative for the Arts and Crafts a governmental body or
organization?  Does the organization operate thr oughout Switzerland?  Or does it operate only in
specific areas?
3. How do the subsidies provided by the Swiss Government to the Swiss Guarantee Cooperative
for the Arts and Crafts (the Cooperative) pass-through to recipients?  Or are only those members ofthe Cooperative eligible for assistance?  If so, are all enterprises and industries eligible for
membership in the Cooperative?
4. Is there an annual or per-enterprise limit to the amount of interest servicing contributions that
are made?  If so, what is that amount?
Contributions for Butter
1. You state that “The price-reduction contributions are granted to manufacturers (amount per
unit) and are paid monthly.”  Is this amount based on units sold in the previous month?  Or on theestimated future month’s sale?
2. Are the contributions made to manufacturers so they are able to sell their product at a reduced
price on the domestic market?
3. Do the contributions made help these manufacturers to compete against imported butter or
butter products?
4. Are all butter manufacturers eligible to receive contributions under this programme?  Or must
manufacturers apply to receive contributions under this programme?  If they must apply, how often
must they apply?  What are the application criteria?
5. What are the expected reductions in the future for this programme?
Contributions for Skimmed Milk and Skimmed Milk Powder
1. How many breeders and how many manufacturers received aid under this programme in
2000?
2. Do the manufacturers who receive contributions under this programme export their products?3. Are all breeders and manufacturers of special products such as acid casein, caseinates or milk
substitutes eligible for aid under this programme?  Or must they meet specific criteria in order to be
eligible for aid under this programme?
4. Are the contributions made automatic and directly to the breeder or manufacturer?  Or must
the breeder and manufacturer apply for the contribution?  If they must apply, what are the applicationcriteria?
5. Is any aid under this programme contingent on breeders or manufacturers exporting their
products?G/SCM/Q2/CHE/10
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6. What are the expected reductions in the future for this programme?
Special Price Reduction for Some Soft and Semi-Hard Cheeses
1. You state that the subsidies offered as a price reduction per kilogram of cheese;  could you
explain in more detail how this programme operates and how benefits are distributed?
2. If the aid is a price reduction on cheese, how is the goal of the programme "to enable the
cheese manufacturer to pay a decent milk price to the farmer" being met?
3. Is there a limit to the amount of kilograms of cheese for which a manufacturer may receive
aid?
Export Contribution for Cheese
1. Can you please provide further details on how the subsidies under this programme are
offered?  Does the government provide a grant to cheese dealers for each kg of cheese that it exports?
2. Are all cheese dealers of all types of cheeses eligible for aid under this programme?3. Can you provide a dollar amount for the amount of subsidies in 2000?4. You state that the duration of the programme is the accounting year.  Does this mean that this
programme was only used in 2000?  Did the programme continue after 2000?  What is the expected
termination date of the programme?
Export Subsidy for Other Dairy Products
1. Is the export subsidy provided contingent on the use of domestically-produced whole milk?
2. Is the same per kilogram subsidy offered for the production of each of the mentioned dairy
products (i.e. cream, skimmed milk powder and milk powder, yoghurt and flavoured or containing
added fruit, nuts or cocoa)?
3. You state that the duration of the programme is the accounting year.  Does this mean that this
programme was only used in 2000?  Did the programme continue after 2000?  What is the expected
termination date of the programme?
Breeding and Dairy Cattle Export Subsidies
1. What is the fixed amount of the subsidy and how is that determined?  Does the fixed amount
change every year?
2, Is there an expected termination date of the programme?
Horses Export Subsidies
1. You state that part of the goal/purpose of the programme is to "maintain domestic horse-
breeding for the needs of agriculture".  Could you please explain how this export programme
accomplishes that goal?
2. What is the expected termination date of this programme?G/SCM/Q2/CHE/10
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Purchase of Domestic Wool
1. Is the Domestic Wool Board a governmental organization or body?  Is it federally regulated?
Is the organization under which it operates (Swiss Sheep Farmers' Federation) a governmentalorganization or body?
2. Does the Domestic Wool Board purchase all wool produced in Switzerland?  Does it purchase
the wool only when market prices fall below a certain price or price range?  Is the wool purchased by
the Domestic Wool Board exported or is the wool sold domestically for further processing?
3. Are all producers required to sell their wool to the Domestic Wool Board?  Are producers in
all areas of Switzerland eligible to receive aid under this programme?
4. Do producers pay a membership fee or any type of fee to the Domestic Wool Board in order
to be eligible for the price support?
5. What is the expected termination date, if any, of the programme?
Price Equalization Fund for Eggs and Egg Products
1. Are the additional grants that may be made for cracked eggs and price reductions also
available for imported eggs?
2. Is the aid under this programme also provided to cover expenses incurred for domestic eggs
which are intended for export?
Bonuses to promote the Growing of Feed Grains, Except Maize, and Seed Legumes
1. You state that in 2000 the growing bonuses were paid regardless of surface area.  Does this
mean that farmers were paid for their surface area regardless of whether the area was under
cultivation?
2. Are all farmers of these products eligible to receive this aid?
Potatoes Price Support
1. Could you please explain more clearly the form that the subsidy takes?  Is the subsidy a grant
that is provided for the various uses of potatoes?  Are subsidies provided to farmers who use potatoesfor feed?  If so, how is the amount granted determined?  How are subsidies provided for the export of
seed potatoes?  Are they provided in the form of export insurance, aid for shipping, etc.?
2. You state that the "Confederation mandates the interested organizations to carry out
development measures for potatoes which cannot be sold on the market and grant subsidies for thatpurpose".  Who are these "interested organizations"?
3. Are the export subsidies paid to producers of all potato products?4. What is the expected termination date, if any, of this programme?G/SCM/Q2/CHE/10
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Fruit:  Valorization of Domestic Production
1. Are the subsidies provided to exports in the form of grants?  Do the subsidies provided to
exporters need to be repaid?  Or are subsidies to exporters granted in some other form, such as export
credit insurance or export credit guarantees?
2. What is the expected termination date, if any, of this programme?
Processed Agricultural Commodities:  Export Contributions
1. What is the expected termination date, if any, of this programme?
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