 
. /.  WORLD TRADE  
ORGANIZATION  G/SCM/Q2/HRV/2 
23 April 2004 
 (04-1837) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Replies to Questions Posed by the UNITED STATES1 
Regarding the New and Full Notification of CROATIA2 
 
  The following communication, dated 22 April 2004,  is being circulated at the request of the 
Delegation of Croatia.  
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I. Wheat Tender Programme 
  
 Please provide details regarding Cr oatia’s Wheat Tender programme.  Our 
understanding of this programme is that privat e companies purchase wheat from farmers at a 
minimum price and in return, receive money fr om the government in two instalments.  In 
particular, could you please explain whether fi rms must export surplus wheat before they 
receive payments from the government under this programme?  If the benefits under this programme are in fact contingent upon expo rt performance, please explain how this 
programme complies with Croatia’s WTO obligations.  
Reply
 
 
 With regard to US inquiry about the Croa tian wheat redemption programme, we are pleased 
to present the following answer.    The Croatian Government financed certain cost s associated with wheat purchases from family 
farms in 2003 to the amount of 0.12 HRK (Croatian Kuna) per kilogram.    The Ministry of Agriculture, Forestry and Wa ter Management advertised and invited bids 
from trade companies engaged in purchasing a nd processing wheat.  Separate quantities were 
specified for each of 13 counties.  The compensati on of 0.12 HRK per kilogram was conditional upon 
companies purchasing a specified quantity of wh eat in each county, based on our forecasts.  
Preference at selection was given to those trade companies which offered the highest purchase price 
for farmers’ wheat in the county area in which they bid.    Compensation of costs included the following items:  
• collecting and taking into store, and other handling costs 
• quality analysis costs 
                                                     
 
1 G/SCM/Q2/HRV/1. 
2 G/SCM/N/71/HRV/Suppl.1  and G/SCM/N/95/HRV. G/SCM/Q2/HRV/2 
Page 2  
 
 • storage costs 
• costs of maintaining sanitary validity 
  These costs are usually borne by the owners of the wheat, namely farmers.    The total quantity of wheat for which compensa tion was paid was 275,522 tonnes.  The prices 
on the bidding were 1.00 – 1.02 HRK per kilogram for standard quality (hectolitre 76 kg, moisture 
13 per cent, admixture 2 per cent).  After the purch ases, evidence was provided that payments to the 
farmers have been made.  The Ministry paid the compensation within 15 days of receiving the application for payment with the appropriate eviden ce.  The payment was made in a single instalment 
and was in no way related to  or conditional on exports.  
 
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