WORLD TRADE
ORGANIZATIONG/SCM/N/60/EEC/Add.12
5 July 2000
(00-2769)
Committee on Subsidies and
Countervailing MeasuresOriginal:  English
SUBSIDIES
Updating Notification Pursuant to Article XVI:1 of the GATT 1994
and Article 25 of the SCM Agreement
EUROPEAN COMMUNITIES
Addendum
The following addendum to the notification of the European Community relates to subsidy
programmes of PortugalG/SCM/N/60/EEC/Add.12
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PORTUGAL
TABLE OF CONTENTS
Page
1. Energy Programme............................................................................................................. ..3
2. “SIMIT/IMIT – Initiative for the Modernization of the Textile Industry".....................43. International Development Support Programme for Trade and Services (PAIEP ........5
4. Strategic Programme for the Revitalization and Modernization of Portuguese 
Industry (PEDIP II)............................................................................................................ ..6
5. Trade Modernization Support.............................................................................................7
6. RETEX Operational Programme........................................................................................7
7. Regional Incentives System (SIR)........................................................................................8
8. Aid for shipbuilding and ship conversion...........................................................................9G/SCM/N/60/EEC/Add.12
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1. Energy Programme
1. Title of the subsidy programme
Energy programme
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To reduce the oil dependency by promoting the natural gas, fostering the use of renewable
energy resources and promoting energy efficiency in all sectors of the economy activity.
These energy objectives will have major impacts in the improvement of the Portuguese
economic competitiveness and will reduce energy environmental impacts.
4. Background and authority for the subsidy
Legal Basis :
- Community decision No. C(94) 376 and government law DL No. 195/94.
5. Form of the subsidy
Grants and Zero Interest Rate Loans.
6. To Whom and how the subsidy is provided
Subsidies can be granted to enterprises and municipalities according to the specific legislation
applied to each measure.  Subsidies are granted by the Ministry of Economy after the application has
been submitted to the approval of a Decision Committee in the Energy area. Subsidies are paid
according to the progress of the project.
7. The total amount or the annual amount budgeted for the subsidy/indicating, if possible, the
average subsidy per unit in the previous year.
The total amount of the commitments by Energy Programme in 1999 was:
UNIT:  10 ECU
Measures Community Grants
(FEDER)State Budget Total
Measure 1 – Natural Gas 54 952 3 312 58 264
Measure 2 – Renewable 0 0 0
Measure 3 – Energy Efficiency 16 177 5 392 21 569
                     Total 71 129 8 704 79 833G/SCM/N/60/EEC/Add.12
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8. Duration of the subsidy and/or any other limits attached to it
Measure 1 Grants:  no time limits;
Measure 2 Zero Interest Rate Loans:  3 years granted period and 9 years reimbursement
period;
Measure 3 Grants:  No time limits;
Zero Interest Rate Loans:  2 years granted period and 5 years reimbursement period.
9. The trade effects of the subsidy
No effects on international trade.
2. “SIMIT/IMIT – Initiative for the Modernization of the Textile Industry"
1. Title of Subsidy Programme
“SIMIT/IMIT – Initiative for the Modernization of the Textile Industry"
2. Period covered by the Notification
The year 1999.
3. Policy objective and purpose of the subsidy
To improve the competitiveness and to modernise the Portuguese textile and ‘clothes’
manufacturing sectors.
4. Background and authority for the subsidy
Legal Basis:
- Resolution of Council of Ministry N o. 96-A/95 (DR 231/95-I Se ries B, 2ºSupl.,
6/Oct.1995);Decisions No. 61-A/B/ C/D/E/F/G/H/95 (DR 240/95-I Series B 3ºSupl., 17/Oct.1995).
5. Form of the subsidy
Cash grants and/or reimbursable loans at zero interest rate.
6. To whom and how the subsidy is provided
Recipients:
Industrial companies of the textile and clothing sectors:  (Ref. 17, 181 and 182 of the
Portuguese Economic Activities Classification /C.A.E.);
Associations of Entrepreneurs, Chambers of Commerce;
Non-lucrative organisations (official or private) providing services in “fashion and design”.G/SCM/N/60/EEC/Add.12
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Subsidy allocation:
Subsidies are granted to industrial enterprises and/or applicant organisations on a case-by-
case basis.  Subsidies are granted by the Portuguese Ministry of Economy on application and they are
paid according to the progress of the approved project.
7. The total amount or the annual amount budgeted for the subsidy
Incentives given out during 1999 (approved projects):- Cash grants: Esc   8,985,167,000
- Reimbursable loans: Esc 12,307,503,000- Total: Esc 21,292, 669, 000
8. Duration of the Subsidy and/or any other time limits attached to it
The initiative was implemented in 1995 and will remain available until 1999.
9. The trade effects of the subsidy
No specific economic studies have been carried out.  Data for this item not available.
3. International Development Support Programme for Trade and Services (PAIEP
1. Title
International Development Support Programme for Trade and Services (PAIEP)
2. Objectives
To promote the sustainable development of the competitiveness of trade and services
enterprises in the context of a coherent strategy for the modernization and globalization of their
activities.
3. Duration
The duration of the subsidy is 1994-1999
4. Legislative authority
Decree Law No. 290/94 of 14 November 1994Council of Ministers Resolution No. 121/94 of 15 December 1994G/SCM/N/60/EEC/Add.12
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5. Amount of the subsidy
Year:   1999
Government expenditure programmed:  Esc 6,348,262 millionAmounts approved and disbursed:
(millions of Esc)
Approved Disbursed
Subsidy for reimbursable
financial co-participation at zero
interest rate13,220,223 3,665,372
4. Strategic Programme for the Revitalization and Modernization of Portuguese
Industry (PEDIP II)
1. Title
Strategic Programme for the Revitalization and Modernization of Portuguese
Industry (PEDIP II).
2. Objectives
Assistance programme to revitalize the sustaine d growth of the competitiveness of Portuguese
enterprises in order to enhance their capacity to  respond to rapid technological and market changes,
while at the same time supporting the modernization, diversification and globalization of domestic
industry.
3. Duration
The duration of the subsidy is 1994-1999.
4. Legislative authority
Decree Law No. 177/94 of 27 June 1994Council of Ministers Resolution No. 50/94 of 1 July 1994
5. Amount of the subsidy
Year:  1999
Government expenditure programmed:  Esc 163,178,314 millionAmounts approved and disbursed:
(millions of Esc)
Approved Disbursed
Grants plus reimbursable
financial co-participation299,442,940 62,664,732G/SCM/N/60/EEC/Add.12
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5. Trade Modernization Support
1. Title
Trade Modernization Support Programme (PROCOM)
2. Objectives
To promote the sustainable development of the competitiveness of trade sector enterprises in
the context of a coherent strategy for the modernization of their activities.
3. Duration of the subsidy
The duration of the subsidy is 1994-1999
4. Legislative authority
Decree Law No. 184/94 of 1 July 1994Council of Ministers Resolution No. 33/96 of 3 April 1996
5. Amount of the subsidy
Year:  1999Government expenditure programmed:  Esc 5,731,780 millionAmounts approved and disbursed:
(millions of Esc)
Approved Disbursed
Interest rate subsidy
Non-repayable subsidy 16,669,496 2,064,421
6. RETEX Operational Programme
1. Title
RETEX Operational Programme
2. Objectives
Community Initiative Programme on regional aid with the aim of facilitating the
modernization of the industrial fabric in regions strongly dependent on the textiles and clothing sector.
3. Duration
The duration of the subsidy is 1993-1999.
4. Legislative authority
Decisions ("Despachos normativos") Nos. 264, 265, 266 of 11 September 1993G/SCM/N/60/EEC/Add.12
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5. Amount of the subsidy
Year:  1999
Government expenditure programmed:
(millions of Esc)
Risk Capital Fund 0
Reimbursable co-participation  6,669,685
Non-repayable subsidy 18,997,799
Amounts approved/disbursed
(millions of Esc)
Approved Disbursed
Risk Capital Fund 0 0
Reimbursable co- participation*   7,251,433 3,188,302
Non-repayable subsidy 33,370,109 8,187,759
*Repayable financing at zero interest rate fo r an amount not exceeding 40 per cent of the total
financing necessary, with a ceiling of Esc 150 millions.  The duration is three to six years.
7. Regional Incentives System (SIR)
1. Title
Regional Incentives System (SIR)
2. Objectives
The objective of this regional assistance programme, which covers all the country's less-
developed inland and coastal regions, is to contribute to the endogenous development of those regions
by improving their competitiveness and helping to create jobs and thereby reduce migration, while
promoting diversification of the production of goods and services.
3. Duration
The duration of the subsidy is 1994-1999.
4. Legislative authority
Decree Law No. 193/94, of 19 July 1994Council of Ministers Resolution No. 67/94, of 11 August 1994G/SCM/N/60/EEC/Add.12
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5. Amount of the subsidy
Year:  1999
Government expenditure programmed:Amounts approved and disbursed:
(millions of Esc)
Approved Disbursed
Grants plus reimbursable
financial co-participation5,557,595 10,326,298
8. Aid for shipbuilding and ship conversion
1. Title
Aid for shipbuilding and ship conversion
2. Period
The notification concerns 1999
3. Objective
See information under point 6.
4. Legal basis
Decree Law No. 296/89 of 4 September establishing the aid regime for metal-hulled
shipbuilding and ship conversion (notified and approved by the European Commission in accordance
with the 7th Directive (90/684/EEC)), on aid to shipbuilding.
5. Form of the subsidy
Decree Law No. 296/89 provides for the grant of non-repayable subsidies.
6. To whom the subsidy is provided
Operational assistance for national shipyards lead ing to joint participation in shipbuilding or
ship conversion costs and compensation for losses.  This aid is subject to a common maximum ceiling
established annually by the European Commission, expressed as a percentage value of the contract
before aid which, in 1998, was 9 per cent for building ships of a contract value of more thanECU 10 million and 4.5 per cent for ships with a contract value of less than that amount and for ship
conversion.
7. Amount of the subsidy
The total amount of subsidies allocated in 1999 was Esc 1,627 million.G/SCM/N/60/EEC/Add.12
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8. Duration of the subsidy
Decree Law No. 296/89 of 4 September entered into force on 5 September 1989 and is of
indefinite duration.
9. Trade effects of the subsidy
Statistical data not available.
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