WORLD TRADE G/SCM/N/3/URY
G/SCM/N/16/URY
20December 1996
ORGANIZATION(96-5400)
Original: Spanish Committee onSubsidies andCountervailing Measures
SUBSIDIES
Notifications Pursuant toArticle XVI:1 oftheGATT 1994
andArticle 25oftheAgreement onSubsidies and
Countervailing Measures
URUGUAY
Thefollowing communication, dated 3December 1996, hasbeenreceived fromthePermanent
Mission ofUruguay.
_______________
ThePermanent delegation ofUruguay totheUnited Nations Office atGeneva presents its
compliments totheChairman oftheCommittee onSubsidies andCountervailing Measures andnotifies
herewith thesubsidies maintained byUruguay, inaccordance withArticle XVI, paragraph 1ofGATT
1994 andArticle 25oftheAgreement onSubsidies andCountervailing Measures.
Wetakethisopportunity topoint outthatthisnotification doesnotprejudge either thelegal
status ofthese measures under GATT 1994 andtheAgreement onSubsidies andCountervailing
Measures, theeffects under theSCM Agreement, orthenature ofthemeasures themselves, asset
forth inArticle 25,paragraph 7ofthesaidAgreement.
Thelaws, decrees andother regulations mentioned above willbesubmitted shortly.G/SCM/N/3/URY
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G/SCM/6 FORMAT FOR SUBSIDY NOTIFICATIONS
Afforestation
1. Titleofthesubsidy programme, ifrelevant, orbriefdescription oridentification ofthesubsidy
Forestry Law
2. Period covered bythenotification
1January 1995 to31December 1997
3. Policy objective and/or purpose ofthesubsidy
- Toincrease thecountry 'sforest cover using low-productivity soils;
- toexpand andupgrade industrial plant andtechnologies forprocessing wood from
cultivated forests;
- alleviate thepressure onthecountry 'snative forests, andenhance theirconservation
andsustainable use.
4. Background andauthority forthesubsidy (including identification ofthelegislation under which
itisgranted)
Preservation, improvement, expansion andcreation offorest resources, development offorest
resources, development offorest industries, anddevelopment oftheforest economy ingeneral.
LawNo.15.939 of28December 1987, published intheOfficial Journal on9February 1988.
RegulatoryDecreeNo.452/988of6July1988,publishedintheOfficialJournalon14July1988.
5. Form ofsubsidy (i.e.grant, loan, taxconcession etc.)
Taxconcession, tariff concession, partial refund ofplanting costs.
6. Towhom andhowisthesubsidy provided (toproducers, toexporters, orothers; through
whatmechanism; fixed orfluctuating amount perunit; ifthelatter, howdetermined)
Producers whoinvest inafforestation areentitled tothesubsidies, provided theyqualify under
Forestry LawNo.15.939 andtheregulatory decrees. These provisions stipulate, interalia,which
soilscanbeusedforafforestation, thetypes andspecies tobeplanted, theneedforanafforestation
planapproved bytheMinistry ofAgriculture andFisheries andtheachievement, oneyearafter
plantation, asurvival rateexceeding 75percent.
7. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious
year). Where provision ofperunitpersubsidy information (fortheyearcovered bythe
notification, fortheprevious year, orboth) isnotpossible, afullexplanationG/SCM/N/3/URY
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Theamount oftherefund ofplantation costsisestimated, onaverage, atabout $180perhectare
inthecaseofplantations, onceonlyforeachhectare afforested.
Taxexemptions forprotective forests (natural orartificial) andproducing forests areestimated
atabout $9perhectare peryear.
8. Duration ofthesubsidy and/or anyother time-limits attached toit,including dateof
inception/commencement
Exemptions andother taxbenefits established bylawapply toalltaxes thatinfuture would
belevied generically onagricultural enterprises, theirowners assuch, ortheirincome. They will
beapplicable foraperiod of12years from theplanting oftheforests specified inArticle 39ofthe
law(Article 43).
Moreover, ontheproposal oftheMinistry ofLivestock, Agriculture andFisheries, the
Government mayexempt theimportation ofrawmaterials needed fortheprocessing ofwood produced
domestically andofequipment, machinery, utility vehicles andtools needed fortheinstallation and
operation ofsuchenterprises from allorpartofsuchtaxes orcharges: additional duties andother
customs levies including import taxes; portcharges orfees, surcharges, advance deposits and
appropriations, aswellasanyother levyonimports orapplied during importation foraperiod of
15years.
9. Statistical datapermitting anassessment ofthetradeeffects ofthesubsidy. Thespecific nature
andscope ofsuchstatistics islefttothejudgement ofthenotifying member. Totheextent
possible, relevant and/or determinable, however, itisdesirable thatsuchinformation includes
statistics ofproduction, consumption, imports andexports ofthesubsidized product(s) or
sector(s).
Statistical information concerning afforested areas andforestry exports areattached hereto.
QUESTIONNAIRE FORMAT FOR SUBSIDY NOTIFICATIONS G/SCM/6
Motor Industry
1. Titleofthesubsidy programme, ifrelevant, orbriefdescription oridentification ofthesubsidy
Regulations forenterprises exporting vehicles assembled inthecountry.
2. Period covered bythenotification
1January 1995 to31December 1997
3. Policy objective and/or purpose ofthesubsidy
Restructuring ofthemotor sector andspecialization inmarket segments forexport.
4. Background andauthority forthesubsidy (including identification ofthelegislation under which
itisgranted)G/SCM/N/3/URY
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Adoption ofmeasures tofacilitate business decisions related toproduction andinvestment
programmes andinpreparation forthecommon MERCOSUR regime.
Decree 316/92 of7July1992 published intheOfficial Journal on25September 1992.
Decree 340/96 of28August 1996 published intheOfficial Journal on6September 1996.
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Enterprises which export vehicles completed orpart-completed inthecountry, ormotor parts
ofnationalorigin,maybenefitfromacustomsconcession,applicabletotheimportationofmotorvehicles
assembled intheplace oforigin destined forthedomestic market, inaccordance withtheconditions
laiddown intheabove-mentioned regulations.
6. Towhom andhowthesubsidy isprovided (whether toproducers, toexporters, orothers;
through whatmechanism; whether afixed orfluctuating amount perunit; ifthelatter, how
determined)
Forevery United States dollar ofexports (based onthef.o.b. values declared intherelevant
customs declarations) imports maybemade withaconcession of10percentoftheTGA(global tariff),
applicable tothesurcharge element, fornewvehicles assembled intheplace oforigin (based onc.i.f.
imports declared totheBanco delaRepublica Oriental deUruguay (BROU)). There isanoption for
those included under theDecree 340/96 regime.
7. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious
year).Whereprovisionofperunitsubsidyinformation(fortheyearcoveredbythenotification),
fortheprevious year, orboth) isnotpossible, afullexplanation
TenpercentofTGA (global tariff), applicable tothesurcharge element, fornewvehicles
assembled intheplace oforigin.
8. Duration ofthesubsidy and/or anyother time-limits attached toit,including dateof
inception/commencement
Decree 316/992 entered intoforce in1992 and,extended bysubsequent decrees, continues
inforce.
9. Statistical datepermitting anassessment ofthetradeeffects ofthesubsidy. Thespecific nature
andscope ofsuchstatistics islefttothejudgement ofthenotifying member. Totheextent
possible, relevant and/or determinable, however, itisdesirable thatsuchinformation includes
statistics ofproduction, consumption, imports andexports ofthesubsidized products(s) or
sector(s)
Therearenodataavailableonwhichtoestablishtheeffectsontrade.In1995,Uruguayimported
motor vehicles worth US$237,396,619 (c.i.f.) representing 31,015 units.
Correspondingly, exports worth US$94,106,955 (vehicles) andUS$64,102,475 (components)
were made during 1995.G/SCM/N/3/URY
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Areas Afforested under theProject forthePeriod 1975-1995
Year Hectares
1975 2,007
1976 2,084
1977 3,429
1978 2,526
1979 2,180
1980 1,598
1981 1,801
1982 1,733
1983 1,442
1984 2,551
1985 2,175
1986 2,811
1987 1,935
1988 1,648
1989 6,444
1990 7,513
1991 15,596
1992 25,538
1993 41,135
1994 40,236
1995 32,781G/SCM/N/3/URY
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Page6EXPORTS OFFOREST PRODUCTS BYVOLUME
(M3andTons)
Product Unit 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Pulp wood M37 0 46,251 113,624 82,568 145,005 149,320 67,987 197,848 487,013
Posts, stakes, etc. M30 0 0 0 0 97 117 0 17,084 10,288
Unsawn timber M30 0 0 654 0 0 0 0 0 0
Sawn timber M30 11 58 68 2,135 2,380 14,799 21,590 28,319 36,458
Conifer wood M30 1 26 36 19 0 1,147 1,650 2,455 2,451
Non-coniferous wood M30 10 32 32 2,116 2,380 13,652 19,940 25,864 34,007
Wood pulp Ton 448 552 518 2,839 1,446 300 1,005 800 700 1,750
Paper waste Ton 840 358 800 520 0 1,886 145 0 600 3,090
Paper Ton 12,936 12,181 11,082 7,332 11,824 21,502 22,213 20,556 18,927 13,830