RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/EEC/15
30 April 1998
(98-1752)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions from the UNITED STATES Regarding the
Updating Notification of the EUROPEAN COMMUNITY1
The following communication was received 23 April 1998 from the Permanent Mission of the
United States.
_______________
Member State Programmes
Austria
Q.1. Regarding the Guarantees by FGG (Co-Fina ncing Facility) programme, please explain what
types of projects are financed by the programme and what financing method is used.  Also, please
explain what types of guarantees are given and prov ide a more detailed explanation of what types of
companies are eligible. (p. 55)
Q.2. Concerning the Innovation and Technology Fund, what are the stipulations that determine the
per cent of the project costs that can be covered by the grant, and what industrial firms are eligible for
this assistance. (p. 57).
Q.3. That Aid Scheme Under the Business Structure Improvement Act 1969, Regional Component
provides aid for business structure improvement of SMEs.  In this and other funds, please explain the
basis by which you define small- and medium-sized enterprises.  (p. 64)
Q.4. Your notification of the District Heating Promotion Scheme details aid for district heating
projects and their supply systems.  Please explain the form of the aid given under this programme. (p.
65)
Q.5. It is stated in your  notification that the Innovation and Technology Fund (ITF) - ERP
provides assistance to increase the technological efficiency of innovation by supporting projects in the
fields of research, development and technology transfer.  What is the form of the assistance, what per
cent of the project is covered by the aid, and are there any stipulations on how the funds may be
spent? (p. 71).
Q.6. Please provide a further description for the following programmes, including type of aid,
recipient, amount of assistance, and duration.
                                                     
1 G/SCM/N/25/EECG/SCM/Q2/EEC/15
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- Guidelines on the Provision of Non-Repayable Grants (p. 85)
- Research and Development (p.86)
- Staff Quarters (p. 87)
- Participation Scheme within the Framewor k of the Concept for the Development and
Improvement of Carinthian Wintersports Facilities as well as Participation in Other Tourism
Facilities (p. 89)
- BABEG Participation Scheme (p. 90)
- ERP-Enhancement Programme of Lower Austria (p. 90)
- Special Tourism Cases (p. 91)
- Lower Austrian Participation Model - Participation in the Tourism Industry (p. 92)
- Pro Tourism Programme (p. 92)
- State Aid for Operational Innovations in Salzburg (p. 105)
- State Aid for the Facilitation of Financing Industrial Property for the Establishment of
Enterprises as well as the Foundation of Innovation and Technology Centres (p. 106)
- Fund for the Improvement of the Economic Structure of Salzburg (p. 104)
- State Aid Programme for the Settlement of New Enterprises and the Expansion of Existing
Enterprises (p. 108)
Q.7. Several programmes, including the Scheme to Promote the Establishment of Enterprises and
the Job Premium in Assisted Areas No. 1, describe the policy objective as "support of investments".
Please explain this phrase in further detail. (pp. 97, 99).  Also, in your description of the Lower
Austrian Credit Guarantee, you describe the programme policy as "support of investments and
equipment media of firms".  Please explain what is meant by the latter term.  (p. 93)
Belgium
Q.8. Regarding the Prototype Advances, please specify who the aid recipients are.  (p. 141)
Denmark
Q.9. For the Grant Scheme for Reimbursement of CO2 Tax Expenses to Enterprises with a High
Energy Consumption Programme, would you please define how "high energy consumption" is
calculated.  In addition, how is the aid allocated?  (p. 160).
Q.10. For the Promille Levy Funds and Production Levy Funds, would you please explain what per
cent of the funds is applied toward each "common activity"?  (p. 187)
Q.11. For the Structural Aid to Fish-Process Industry, Development of the Aquaculture Industry  ,
Modernization of Facilities in Fishing Harbours, and the Modernization and New Construction of
Fishing Vessels programmes, please describe what are considered to be relevant capital investments?
(pp. 208-212)
Finland
Q.12. Your description of the Start-Up Loan Prog ramme for Entrepreneurs (KERA Ltd.) states that
the subsidy is "granted by Kera Ltd. (a state-owne d company)."  What type of company is this and
what is its role in this programme?  (p. 223)G/SCM/Q2/EEC/15
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France
Q.13. Regarding the Land-Use Management Premium (PAT) programme, under form of subsidy, it
appears that the sentence was incomplete.  Please provide further information on the type of aid given
under this programme.  (p. 259)
Q.14. Could you please detail the type of tax concessions given and who the recipients are of this
aid for the Long-Term Tax Treatment in the French Overseas Departments programme?  (p. 264)
Greece
Q.15. In your notification, you list your programmes regionally detailing sector and cost, but you do
not list programme names, purpose of the programme, type of aid given, subsidy amount by
programme, and who the aid recipients are (e.g. what do you mean by "primary" and "secondary").
Please provide this information for each notified programmes.  (pp. 293-307).
Italy
Q.16. Regarding the Technological Innovation Fund  (FIT) and Applied Research Fund (FRA) and
the  Coordination of Industrial Policy, Restructuring Reconversion and Sectorial Development, please
explain who receives this aid, what per cent of the project is covered by the aid, and whether there are
any stipulations on how the funds may be spent?  (pp. 329, 331)
Q.17. Concerning the Production Aids to Shipya rds programme, please explain (a) how "bridging
the gap between the most competitive EU shipyard and the market price" is determined, (b) whether
the subsidy is available only once, or annually, and (c ) who the actual recipient of the subsidy is.  (p.
335)
Luxembourg
Q.18. Regarding your System of Regional Aid programme, would you further explain what is meant
by capital subsidies and to whom they are available.  (p. 338)
Q.19. For the System of Aid for R&D programme, please provide what per cent of the project is
covered by the aid, whether there are any stipul ations on how the funds may be spent.  (p. 339)
Netherlands
Q.20. For the following programmes, please specify who the aid recipients are and whether there
are any stipulations on how the funds may be spent:
- T.O.K. (Decision Technical Development Loans (p. 341)
- P.B.T.S. (Decision Subsidies for Programma tic Firm-Oriented Technology Stimulation)
(p. 341)
- T&U (Subcontracting and Outsourcing)  (p. 342)
- B.T.O.C. (Firm-Oriented Support for Re search by Collective Bodies)  (p. 343)
- B.T.I.P. (Decision Subsidies Firm-Oriented En couragement of Technological Development -
International Programme)  (p. 344)
- Subsidieregeling Maritiem Onderzoek 1996 (Subsidy scheme maritime research)  (p. 355)G/SCM/Q2/EEC/15
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Portugal
Q.21. In your descriptions of the Retex Operational Programme, the System of Financial Incentives
for Investment in Tourism (SIFIT III), the Regi onal Incentive System (SIR), and the International
Development Support Programme for Trade and Services (PAIEP 2), you describe the form of aid as
either risk capital funds, grants, repayable joint participation and non-repayable subsidy.  Please
explain under what circumstances the subsidy is repaid and how the  non-repayable subsidy amount
was determined.  (pp.  358-361)
Spain
Q.22. Your notification of the Aid to Improve the Processing and Marketing of Fish and
Aquaculture Products programme states the economic effects of the programme lasted until 31
December 1996 and the regulation was derogated with the entry into force of Council Regulation
3699/93 of 21 December 1993.   Does this in effect mean the programme has been terminated or isbeing phased out?  (p. 388)
Q.23. Regarding the Competitiveness Plan for the Textile and Clothing Sector Programme, you
state the subsidy is available to (a) industrial enterprises, or groups of enterprises;  and (b) public or
private entities and organizations.  Would you please provide more information on who the actual
recipients of the aid are, how areas are selected for the granting of aid, and whether the programmewas terminated as of 1996.  (p. 414)
Q.24. In your description of the Industrial Technology Development Centre (CDTI) programme,
you state that the purpose of the subsidy is to pr omote technological innovation in Spanish companies
by granting loans at interest below the market rate in order to fund R&D projects.  Please provide
information regarding what per cent of the research is covered, and what stipulations apply to fundsgiven?  (p. 424).
Q.25. You state that Aid for the Acquisition a nd Conversion of Buildings and Machinery for
Processing and Marketing and Aid to Afforestation and Forestry Improvements  are available in the
form of a capital subsidy.  Please explain what is meant by a capital subsidy.  (pp. 628, 631)
Q.26. Concerning the Aid for the Restructurin g and Enhancement of the Competitiveness of
Agricultural Cooperatives Programme, would you pl ease specify who the recipient cooperatives are?
(p. 634)
Q.27. You state that your programme Reorganization and Revival of Enterprises in Crisis is
available to enterprises based in Navarra.  Is ther e any restricted eligibility for recipients in this
programme?  (p. 637)
- Programmes Notified by the Government of the Canary Islands
Q.28. With regard to your identification of "sma ll and medium enterprises" in such programmes as
Improvement of Banana-Growing Sector Structures  in the Canary Islands (Production Phase) Under
Banana Operation Programme II, As Part of Community Support 1994/99 and Subsidies for Industrial
Modernization or Technological Innovation Projects, would you please identify the criteria used to
determine small or medium enterprises?  (pp. 472, 479)
Q.29. Regarding the Structural Aid to Fisheries, Aquaculture and the Processing and Marketing of
Fish Products, would you please explain in what form the aid is given.  (p. 474)G/SCM/Q2/EEC/15
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- Programmes Notified by the Autonomous Community of Cantabria
Q.30. Regarding the Aid to Promote Forestry Investment on Farms and the Development and
Exploitation of Forests in Rural Areas, would you please describe how the "ceiling" is determined?
(p. 486)
Q.31. Regarding the Support to the Mining Industry and Utilization of Mineral and/or Thermal
Subsidies, would you please explain whether those who receive the aid are individuals, companies, or
enterprises?  (p. 492)
Q.32. In the Subsidy to Small-Scale Industry, would you please explain how a "small-scale
industry" is determined?  (p. 493)
Q.33. With regard to the Support Measures for the Preparation and Marketing of Traditional Food
Products of Cantabria, you state that "the aid is available to natural or legal persons or groups thereof
which make investments or incur costs eligible for subsidies."  Would you please explain what types
of "investments" or "costs" are eligible?  (p. 494)
Q.34. In several of your programmes, such as Financial Aid to SMEs and Regional Incentives Fund
, you designate that funds are distributed to small- and medium-sized enterprises.  Please explain the
criteria used to determine small- or medium-sized companies.  (pp. 491, 495)
- Programmes Notified by the Autonomous Community of Castilla-La Mancha
Q.35. In many of your programmes, such as Aid fo r Early Retirement in the Agriculture Sector, Aid
to Food Enterprises to Attend Agri-Foodstuffs Fairs, and Aid to Promote Improvements in the Quality
of Sheep and Goat Breeding, you state that the form of the subsidy is "direct".  Would you please
explain in what form the "direct" aid in these and other programmes in your notification is given?
(pp. 499-501)
Q.36. In Aid to Promote the Agri-Foodstuffs Sect or in the Castilla-La Mancha Region, please
explain what type of "support" is intended?  How may this aid be used?  (p. 507)
Q.37. In Support to the Bee-Keeping Sector Through Pollination Premiums, please describe to
whom the aid is available,  e.g., is the aid available to individuals, as well as corporations, industries,
and enterprises.  Is there a limit to the aid granted per recipient? (p. 508)Q.38. In Measures to Encourage and Support the Promotion of New Technology in Agriculture
Machinery and Equipment, would you please explain on what the interest rate reduction is based?
How is the level of reduction determined?  (p. 509)
Q.39. For the programme Supplementary Compensation in Disadvantaged Areas, would you please
explain how the amount provided to each recipient is determined?  (p. 513)
- Programmes Notified by the Autonomous Community of Castilla-Leon
Q.40. In Aid for the Promotion of Alternative Li vestock-Raising Activities in Castilla-Leon, you
state that aid is provided for "promotion of certain small animal farmers."  Would you please specify
how a "small animal" farmer is determined?  In addition, please describe in what form the aid is given
and whether the subsidy is repayable.  (p. 522)G/SCM/Q2/EEC/15
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Q.41. For Aid for Owners of Sheep and Goat Farms,  would you please explain what the specific
activities are for which "direct" subsidies?  In addition, describe in what form the "direct subsidy"
takes? (p.524)
Q.42. Regarding Aid for Agricultural Training and Rural Development Courses, what is the limit to
the amount of aid to which each entity is allowed?  (p. 527)
Q.43. Regarding Rural Development Aid, would you please explain in what form the aid is given?
(p. 533)Q.44. In Support Plan for the Beet Sector, please expl ain in what form the "direct aid" is given.  (p.
535)
Q.45. Regarding Aid to the Trade Promotion of Agricultural and Food Industries, would you please
specify how a small or medium enterprise is defined.  (p. 537)Q.46. In Subsidies for investment in Moderniz ing the Commercial Sector in the Autonomous
Community of Castilla and Leon, would you please define for which specific types of investment the
aid is provided?  In addition, is there a limit to the amount of aid given per company, enterprise or
organization?
- Programmes Notified by the Autonomous Community of Extremadura
Q.47. Regarding Non-Repayable Subsidy to promote Productive Investment by SMEs in
Extremadura, would you please specify the criteria for a small- or medium-sized enterprise?  In
addition, how is the subsidy for the "percentage of the investment made" determined?  (p. 559)
Q.48. Regarding Subsidized Interest on Loans or Leasing Operations for SMEs in Extremadura, is
there a limit to the subsidy for individual recipients?  (p. 560)
Q.49. Regarding System of Aid to Improve Mark eting Conditions for Agri-Food Products, how are
"certain limits" defined?  (p. 562)
Sweden
Q.50. In your notification of the Support for Research and Development, you stated that the
duration of the programme was from 1 July 1993 to  1 January 1997, but that the programme would be
prolonged.  Is there a new termination date for this programme?  (p. 661)
Q.51. Several of your programmes, including Support for Technological R&D through NUTEK,
Project Financing through the Fund for Industry, the Regional Development Companies, ALMI,
Temporary Support to Small Companies, and Project Financing through the Fund for Swedish-
Norwegian Governments are aimed at SMEs.  How do you define small- and medium-sized
enterprises?  (pp. 661, 662, 670, 671 and 668)
Q.52. Your notification of the Temporary Support to  Small Companies states that the programme
was prolonged until 31 December 1997.  Does this mean this programme has been terminated or is
being phased out?  (p. 671)
Q.53. Concerning your notification of the Swedish Council for Work Life Research (formerly the
Swedish Work Environment Fund), you state that the programme has a primary objective of
improvement of work conditions and quality of work, and a secondary objective of aid for R&D.  Is
there  a certain portion of aid that must go to the primary objective or can a majority of funds be usedG/SCM/Q2/EEC/15
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toward R&D with Council approval?  For the portion of the aid that concerns R&D activity, what
portion of the R&D project is covered and are there any stipulations on how the funds can be spent?
(p. 675)
Q.54. In the notification of State Subsidy for Ci vil Emergency Preparedness Supply, you state that
the programme was to be terminated in May 1996.  Has this programme been terminated or phased
out?  (p. 693)
Q.55. You state in the description of Export Prom otion for Processed Food Products that the support
commenced in 1992 and was originally scheduled for a four year period.  Has this programme been
terminated?  (p. 701)
Q.56. With regard to the Aid for Fleet Renewal and Modernization of Fishing Vehicles and
Investment Aid to Aquaculture Enterprises, what is the determination for an "economically viable"
enterprise?  (pp. 727-728)
United Kingdom
Q.57. Regarding the Home Shipbuilding Credit Gu arantee Scheme, you state that "the objective of
the scheme is to finance the construction, completion or alteration of ships and mobile offshore
installations at a yard first approved by the Secretary of State ...".  Would you please clarify to how
many shipyards this scheme applies?  (p. 748)
Q.58. Regarding the Link Initiative programme, would you please clarify what are included in
eligible costs.  (p. 750)Q.59. Regarding Regional Selective Assistance, on what basis are the "special hardship" areas
determined?  (p. 750)
Q.60. Regarding Complete Programme (NI), please specify for what types of projects the aid can be
used.  (p. 752)
Q.61. In numerous programmes, such as Cardiff Bat Development Corporation and Development
Board for Rural Wales, would you please specify what criteria are used to determine small- and
medium-sized enterprises?  (pp. 753-754)
Q.62. Regarding Local Challenge, please specify on what basis the intermediate organizations base
their selection of recipients.  (p. 756)
Q.63. Regarding Offshore Supplies and Service Company Assistance for Research, would you
please specify what the criteria are for a project to "involve significant innovation"?  (p. 758)
Q.64. Concerning the Single Regeneration Budget,  please clarify which types of business are
eligible for aid.  (p. 765)Q.65. Regarding Milk Development Council, please define the term "liable" producer?  Also
provide the percentage of R&D covered by the aid and any stipulations on how the funds may be
spent.  (p. 778)
Q.66. With respect to crofting programmes, such as Working Capital Loans and Aids to Crofters
and Other Agricultural Producers in the Crofting Counties of Scotland, would you please specify the
terms on which the loans are made?  (pp. 778, 780)G/SCM/Q2/EEC/15
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Q.67. In addition, concerning other programmes in volving crofting, such as Livestock Aids in
Crofting Counties and Aids to Crofters and Other Agricultural Producers in the Crofting Counties of
Scotland, would you please clarify which types of recipients are eligible for aid, e.g. business,
families, individual or cooperative farms, or others.  (p. 780)
Q.68. Regarding the crofting programmes, such as New Entrants to Crofting (North West
Sutherland) Scheme, Ross and Cromarty Croft Entrants Scheme  and Shetland Croft Entrant Scheme,
would you please explain what per cent or amount of aid is given to each recipient?  (pp. 781-784)
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