RESTRICTED
WORLD TRADE G/SCM/Q2/COL/4
4October 1996
ORGANIZATION(96-4008)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from theEUROPEAN COMMUNITY Regarding theNew
andFullNotification ofCOLOMBIA1
Thefollowing communication, dated 19September 1996, hasbeenreceived fromthePermanent
Delegation oftheEuropean Community.
_______________
Colombiasubmittedon30June1995itsnotificationofsubsidyprogrammestotheWTOpursuant
toArticle XVI:1 GATT 1994 andArticle 25oftheWTO Subsidies Agreement. Inthisrespect, the
European Communities would liketoobtain clarification onanumber ofissues onthenotified schemes
asdescribed below.
Moreover, theCommunity hasobtained information ondifferent subsidy schemes which were
notnotified totheWTO although theirnotification appears toberequired pursuant toArticle 25.2
oftheSubsidies Agreement.
Furthermore, theCommunity would likeColombia tocomment foreachspecific programme
onhowitwillimplement oriscurrently implementing itsobligations under theSubsidies Agreement.
I. NOTIFIED SUBSIDY PROGRAMMES
(a) TaxReimbursements Certificate
- Could Colombia provide more detailed information onthecriteria foreligibility?
- Istheprogramme alsoavailable forimported capital goods?
- Colombia states thattheduration oftheprogramme issubject tothecommitments
stemming fromtheWTO Agreements. Inthisrespect, canColombia provide thetable
indicating howthissubsidy willbephased out?
1G/SCM/N/3/COL+Suppl.1.
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(b) Special Machinery Import-Export System
- Colombia states thatanynatural orlegalperson engaged inmanufacturing, exporting
ormarketing iseligible forthese incentives. However, under thedescription ofthe
programme andtheobjective, Colombia mentions thatexport activity isthemain
criterion. Could Colombia clarify thisissue e.g.confirm thatexport activity isa
requirement?
- Could Colombia provide thetableindicating howthissubsidy willbephased out?
II. SUBSIDY PROGRAMMES NOT NOTIFIED TOWTO
TheCommunity examined thedifferent policies oftheColombian authorities withrespect to
incentives tothelocal industry. Inthisrespect, thefollowing programme isavailable inColombia
andwasnotnotified totheWTO.
(a) PROEXPO/BANCOLDEX Loans
Under thisscheme theForeign Trade BankofColombia (BANCOLDEX) gives loans atalower
interest ratethanthemarket rate.Inaddition, BANCOLDEX provides arange ofother export-related
financial services forexporters.
(b) Transport Subsidies
Colombia applies atransport subsidy forfreight andtransshipment feestoexport markets.
Thesubsidy isgiven forafive-year period withdecreasing rates, seta26percentforthefirstthree
years and13percentsubsequently.
TheCommunity would likeclarification onwhythese programmes were notnotified tothe
WTO andrequests that,ifappropriate, Colombia supplies anotification under Article 25,using the
standard format. Inaddition, theCommunity would likeColombia tocomment onthecompatibility
oftheschemes withitsobligations under Article 3oftheSubsidies Agreement, andtoindicate whether
there areanyplans tophase outthese subsidies.