RESTRICTED
WORLD TRADE G/SCM/Q2/BRA/5
1stJuly1996
ORGANIZATION(96-2498)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from CANADA Regarding theNew
andFullNotification ofBRAZIL1
Thefollowing communication, dated 20June1996, hasbeenreceived from thePermanent
Mission ofCanada.
_______________
Thefollowing arequestions regarding Brazil 'snotification pursuant toArticle XV:1 ofthe
GATT 1994 andArticle 25oftheAgreement onSubsidies andCountervailing Measures.
1. Wenotefrom Brazil 'snotification thatseveral ofthenotified programmes havescheduled
termination dates. Forexample, BEFIEX isscheduled toendinDecember 1999. However, nosuch
scheduled termination dateisprovided forPROEX. DoesBrazil haveanyplans tophase-out PROEX?
2. Withregard toPROEX, wenotethatthenumber oftransactions covered in1995 wasalmost
threetimes thenumber oftransactions covered in1991/1993 (1,111 vs.439). Doesthisincrease reflect
anexpansion oftheproducts covered byPROEX?
3. Information provided byBrazil regarding PROEX 'sbudget, indicates thatfrom"1993 onwards,
figures related toequalization reflect theissuance ofnon-negotiable treasury notes (Notas doTesouro
Nacional -Serie I-NTN-I) forthefullperiod oftherelevant operations: onetotenyears (averaging
fivetoseven years)." Does thismean thatthetreasury notes arelocked inplace or"non-revocable"
oncetheyareissued?
4. Theimpression leftfromthesubmission isthatthePROEX equalization payments areseparate
from andontopofother financing. Isthistrue?
5. HasBrazil usedthePROEX programme totarget anyparticular country indeveloping market
share?
6. HasBrazil anyintention ofextending PROEX tocover newproducts?
7. HasBrazil anyintention ofamending PROEX toextend thepayment period (current maximum
istenyears) ortofinance alarger portion ofthepurchase price (current maximum is85percentof
purchase price)?
1G/SCM/N/3/BRA.