RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/CYP/10
31 July 2000
(00-3128)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions from the UNITED STATES
Regarding the New and Full Notification of CYPRUS1
The following communication, dated 26 July 2000, has been received from the Permanent
Mission of the United States.
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CONTENTS
Page
I. SECTION A:  AGRICULT URE .............................................................................................2
1. Halloumi  cheese .............................................................................................................. 2
2. Wine alcohol and other grape products:  Bulk wine subsidy covering
brennwein and grape must..........................................................................................2
3. Fruits:  Dried Grapes (Raisins) .....................................................................................2
4. Pig meat export subsidy .................................................................................................2
II. SECTION B:  INDUSTR Y.......................................................................................................3
1. Resource centre for th e clothing industry ....................................................................3
2. Scheme to encourage the establishment or expansion of manufacturing
industries in rural areas ..............................................................................................3
3. Establishment of Industrial Estates ..............................................................................3
4. Industrial Free Zone.......................................................................................................3
5. Duty relief for certain industries ...................................................................................3
6. Promotion of locally manufactured products...............................................................4
III. SECTION C:  GENERAL........................................................................................................ 4
1. Drawback on exported goods.........................................................................................4
2. Exemption from taxation of profits derived from the exportation of locally
manufactured/produced goods ...................................................................................4
3. Export Credit Insurance Scheme ..................................................................................44. Incentives provided to exporters taking part in international trade
fairs/trade miss ions abroad.........................................................................................4
5. Financial assistance for market research in fore ign markets.....................................5
                                                     
1 G/SCM/N/38/CYPG/SCM/Q2/CYP/10
Page 2
The following are questions regarding the notification of Cyprus made pursuant to
Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing
Measures, in document G/SCM/N/38/CYP.
I. SECTION A:  AGRICULTURE
1. Halloumi cheese
Q.1. Is the Cyprus Milk Organization a government organization?  Please indicate under what
legislation the subsidy is granted.
Q.2. How is the amount each exporter receives under this programme determined?  Does this
amount vary from year to year?  Is the same amount granted each year?
Q.3. In what year did the halloumi cheese programme originate?
2. Wine alcohol and other grape products:  Bulk wine subsidy covering brennwein and
grape must
Q.1. Is the subsidy available to only the four major wineries?  Are other wineries allowed to apply
for the subsidy?
Q.2. Is the Vine Products Commi ssion a government organization?
Q.3. How is the amount each winery receives under this programme determined?
3. Fruits:  Dried Grapes (Raisins)
Q.1. Must this subsidy programme be renewed each year by the Council of Ministers?
Q.2. Under what criteria is the subsidy given?Q.3. Have funds been allocated to continue the programme after 1997?4. In what form is the subsidy provided?
4. Pig meat export subsidy
Q.1. Was this programme continued after 1997?
Q.2. Please explain how the funds were disbursed to individual pig exporters by the Pig Farmers
Association.
Q.3. Is the Pig Farmers Association a government organization?Q.4. What are the criteria to receive aid under this subsidy programme?Q.5. How is the amount each exporter receives under this programme determined?
Q.6. In what year did this subsidy programme originate?G/SCM/Q2/CYP/10
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II. SECTION B:  INDUSTRY
1. Resource centre for the clothing industry
Q.1. You indicated in your response to questions posed by the Republic of Korea
(G/SCM/Q2/CYP/9) "assistance can be offered to anyone without any specific criteria".  How does
the government monitor disbursement of funds by the Resource Centre?
Q.2. Please explain how the funds were disbursed to individual companies by the Fashion
Resource Centre.  How is the amount each recipient receives under this programme determined?
2. Scheme to encourage the establishment or expansion of manufacturing industries in
rural areas
Q.1. What rural areas are eligible?
Q.2. What are the eligibility criteria for recipients in rural areas to receive grants under this
programme?
Q.3. Are all industries in these specified rural areas eligible for this aid?Q.4. In your response to questions posed by  the Republic of Korea (G/SCM/Q2/CYP/9), you
stated that subsidies are provided as a percentage of the eligible investments.  Please explain what
constitutes an eligible investment.
3. Establishment of Industrial Estates
Q.1. What types of infrastructure projects are eligible for this aid?
Q.2. What form does the subsidy take (i.e. loan, grant, rebate of taxes etc. ...)?
Q.3. Are all manufacturing industries located in Industrial Estates eligible for aid under this
programme?  What are the criteria for receiving aid under this programme?
Q.4. Is the same amount of money guaranteed for the programme each year?  How is the annual
amount decided?
Q.5. You indicated in your response to questions posed by the Republic of Korea
(G/SCM/Q2/CYP/9) that eligible enterprises should be "viable manufacturing industries".  Can you
please clarify what you mean by this statement?  Is ‘viable’ determined according to the company’s
debt-to-equity ratios?  Predicted future success?  Outstanding loans?
4. Industrial Free Zone
Q.1. Under what criteria are companies eligible to receive aid under this programme ( i.e., how is it
decided that a company is an ‘approved’ manufacturing company)?
Q.2. Are all manufacturing industries eligible for aid under this programme?  Must the industry be
located in the Industrial Free Zone to receive aid?  Are only exporting manufacturing industrieseligible for aid?
5. Duty relief for certain industries
Q.1. Does the amount of funds available for this programme change every year?G/SCM/Q2/CYP/10
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Q.2. Under what criteria is aid provided under this programme?
Q.3. Can you please indicate more clearly what you mean when saying that the policy objective of
the programme is ‘support of the manufacturing industries"?
Q.4. How is it determined how much aid each company will be given?
6. Promotion of locally manufactured products
Q.1. Please indicate the criteria under which aid is granted.
Q.2. Are all industry associations eligible for aid under this programme?Q.3. Is aid contingent on export performance?
III. SECTION C:  GENERAL
1. Drawback on exported goods
Q.1. Is this programme still in existence?
Q.2. You indicated in your response to questions posed by the Republic of Korea
(G/SCM/Q2/CYP/9) that no refund is made in excess of the amount of duty actually paid.  Would you
please explain what provisions have been put in place by the government to ensure this does notoccur.
2. Exemption from taxation of profits derived from the exportation of locally
manufactured/produced goods
Q.1. What is the expected termination date of this programme?
Q.2. How are funds disbursed under this programme?
3. Export Credit Insurance Scheme
Q.1. What are the specific criteria under which aid from this programme is granted?
Q.2. You said that 80 members were covered by this Scheme in 1997.  Can you please explain to
what organization these members belong?
Q.3. Does the company or exporter have to contribute to this programme? Do recipients of the
insurance pay any fees?
4. Incentives provided to exporters taking part  in international trade fairs/trade missions
abroad
Q.1. What is the total amount of aid given under this programme in 1997?
Q.2. What is the specific criteria under which aid from this programme is granted?Q.3. How is it decided what exhibitions and how ma ny exhibitions will be attended?  Is the aid
under this programme focused on specific exhibitions?G/SCM/Q2/CYP/10
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5. Financial assistance for market research in foreign markets
Q.1. Are any other funds provided either before or during the market research aspect of this
programme for which these same manufacturers/exporters are eligible?
Q.2. Is the amount under this programme limited to a certain applicant/manufacturer/exporter on
an annual basis?
Q.3. Are any other costs during the process of market research covered under this programme?
Q.4. Are the results of the market research undertaken made public?
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