WORLD TRADE
ORGANIZATIONG/SCM/Q3/SLV/7
14 June 2002
(02-3337)
Committee on Subsidies
and Countervailing MeasuresOriginal:  Spanish
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Replies to the Follow-Up Questions Posed by the UNITED STATES 1
Regarding the Notification of EL SALVADOR2
The following communication, dated 12 June 2002, has been received from the Permanent
Mission of El Salvador.
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1. Please provide the implementing legislation for these programmes.
Reply
The implementing legislation for these programmes is detailed in and submitted as an annex
to document G/SCM/Q3/SLV/5, which presents the replies to the questions posed by the European
Communities and other countries in document G/SCM/N/74/SLV/1 of 3 January 2002, as follows:
The programme came into operation under the Export Promotion Act, approved by
Legislative Decree No. 81 of 5 September 1974, published in Official Gazette No. 180,
Volume 244, of 27 September 1974; repealed by the Free Zone and Fiscal Enclave Regime Act,
approved by Legislative Decree No. 461 of 15 March 1990, published in Official Gazette No. 88,
Volume 307, of 18 April 1990; repealed by the Export Processing Zones and Marketing Act,approved by Legislative Decree No. 405 of 3 September 1998, published in Official Gazette
No. 176, Volume No. 340, of 23 September 1998, as amended by Legislative Decree No. 464 of
22  October 1998, published in Official Gazette No. 215, Volume No. 341 of 18 November 1998.
The Export Processing Zones and Marketing Act and amendments thereto were annexed to
document G/SCM/Q3/SLV/5 at the specific request of the United States of America in Question No. 6
of that document.
2. Could El Salvador please explain how many companies operate in free-trade zones and
inward processing warehouses, and what industry sectors these companies represent?
                                                     
1 G/SCM/Q3/SLV/6.
2 G/SCM/N/74/SLV/1, G/SCM/N/74/SLV/2, G/SCM/N/71/SLV and Suppl.1.G/SCM/Q3/SLV/7
Page 2
Reply
A total of 243 companies operate in the free-trade zones and inward processing warehouses
(DPA), as stated in document G/SCM/Q3/SLV/5 which presents the replies to the questions posed by
the United States of America and other countries on 5 April 2002. The reply to Question No. 4 has,however, been expanded by breaking down the heading “Other” operating activities and the figure for
iguana breeding has been amended to include a company which was inadvertently omitted, as follows:
“As of December 2001, 243 companies, with investment from, inter alia , the United
States, Germany, China, Guatemala, the United  Kingdom, Japan, South Korea, Taiwan and
Mexico, were operating under the programme. The activities represented are:"
NUMBER OF
COMPANIES
ECONOMIC ACTIVITY
Total
Clothing 147
Electronics 2
Handbags 2
Data processing 1
Marketing 31
Services and laundries 13
Textiles and embroidery 10
Agro-industry 10
Crafts 1
Iguana breeding 2
Footwear 1
Dental prostheses 1
Chemical production 1
Cases 3
Plastic products 2
PVC pipe products 1
Manufacture of bait and fishing tackle 1
Recycling and packing of waste 3
Iron products 2
Manufacture of dispensing machines 1
Manufacture of wheelbarrows and parts thereof,
shovels, etc.1
Manufacture of bicycles, frames, etc. 1
Assembly of industrial machinery 2
Classification and packing of fabric scraps, etc. 1
Manufacture of labels and tags 1
Manufacture of polystyrene products 1
Plasticiser production 1
TOTAL 243
3. Could El Salvador please provide the total value of exports from the Export Processing
Zones, as well as exports from the zones broken down by industry sector for the past five years?G/SCM/Q3/SLV/7
Page 3
Reply
The free-zone export values for 1998 to 2000 are detailed in document
G/ADP/N/38/SLV/Suppl.1 of 15 March 2002, which contains the notification by El Salvador
pertaining to the programme of free-trade zones and inward processing warehouses to the Committeeon Subsidies and Countervailing Measures. The 1997 and 2001 values have been adjusted and added
to those of the above-mentioned document, as follows:
Exports from Free Zones and Inward-Processing Warehouses (DPA)/
El Salvador
Year Value in Millions of US$
1997 291.1
1998 339.1
1999 378.7
2000 456.3
2001 490.0
4. At the recent special meeting of the Committee on Subsidies and Countervailing
Measures, El Salvador stated that there was a 20 per cent value added requirement for the
Export Processing Zones.  Could El Salvador please explain in detail this requirement?
Reply
This requirement does not exist in the Export Processing Zones and Marketing Act.
5. Please describe the duration of the subsidy and/or any other time-limits attached to it, as
provided for in the current legislation for the programme.
Reply
No time-limit is specified for the duration of  the benefit, provided that the companies
benefiting under the law comply with its provisi ons, as stated in the reply to Question No. 5 of
document G/SCM/Q3/SLV/5, which presents the replies to the questions posed by the United States
of America and other countries on 5 April 2002.
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