. /.  WORLD TRADE  
ORGANIZATION  G/SCM/Q2/ISL/10 
21 April 2004 
 (04-1792) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Reply to Question Posed by the UNITED STATES1 
Regarding the New and Full Notification of ICELAND2 
 
 
 The following communication, dated 19 April 2004,  is being circulated at the request of the 
Delegation of Iceland.  
_______________ 
 
 
I. Assistance to Development Projects 
 
 In document G/SCM/Q2/ISL/7, the United States asked Iceland to explain, "what are 
the other types of support" under the Assistance  to Development Projects programme.  Iceland 
responded that the above wording was outdated and with the new Act No. 106/1999 on the 
Institute of Regional Development, there are no le gal provisions, which exist for "other types of 
support".  However, in Iceland’s latest New and Full subsidy notification (G/SCM/N/95/ISL), 
the Assistance to Development Projects programme again states, "The institute has legal provisions for other types of support".  It was our understanding, based on your previous 
response, that these other types of support no long er exist.  Can you please explain if  "other 
types of support" under this programme are curren tly available, and if so, what they may be? 
 
Reply
 
  Act No. 106/1999 on the Institute of Regiona l Development, became effective from 
1 January 2000, and replaced the Act No. 64/1985, re ferred to in the Annual Re ports submitted. With 
this new Act the legal provisions for support to Development Projects was reorganized and since 
1 January 2000 there are no general legal provisions wh ich exist for "other types of support".  Hence, 
references to “other types of support” in the notifi cations for the years 2000 and 2001 are not correct.  
The necessary corrections will be done for the next updating. 
 
 For further clarification the following should be noted.    Article 10 of Act No. 106/1999 states that the In stitute of Regional Development is authorised 
to provide grants to projects in the field of employment development and innovation. 
 
 Article 11 of Act No. 106/1999 states that the In stitute of Regional Development is authorised 
to grant loans and guarantees, as assistance to Deve lopment Projects which fall within the objectives 
of the Act.   
                                                     
 
1 G/SCM/Q2/ISL/9 & G/SCM/Q2/ISL/7 
2 G/SCM/N/95/ISL G/SCM/Q2/ISL/10 
Page 2  
 
 Article 12 of Act No. 106/1999 states that the In stitute of Regional Development is authorised 
to finance venturesome projects within the field of  local employment development and innovation, in 
accordance with rules laid down by the Minister of  Industry. These rules have not yet been issued. 
  Act No. 106/1999 does not contain other auth orisations for the Institute of Regional 
Development to provide other types of support. 
  
__________ 
  