RESTRICTED
WORLD TRADE G/SCM/W/2
19April 1995
ORGANIZATION(95-0948)
Committee onSubsidies andCountervailing Measures
WORKING PARTY ONSUBSIDY NOTIFICATIONS
Issues forPossible Inclusion inFormat forYearly Updates Under Article 8.3
Background Note from theChairman
Introduction
ThisNoteidentifies various issues andtypes ofinformation thatmayberelevant totheWorking
Party'sefforts indeveloping aformat foryearly updates ofnotifications under Article 8.3.Theissues
included inthisNote weredrawn from thetextoftheAgreement, andfrom thepre-implementation
notification format circulated indocument PC/IPL/11. Every effort hasbeenmade toavoid interpreting
theAgreement beyond anypreviously agreed interpretations reflected inPC/IPL/11.
I. ForAllProgrammes Notified Under Article 8.3
1. Theperiod covered bytheupdate.
2. Anychange inpolicy objectives oftheassistance.
3. Anychange inlaw,regulation orother legalinstrument under which theassistance isprovided.
4. Anychange inthelevel(s) ofgovernment involved intheprovision ofassistance under the
notified programme.
5. Anychange inindustries, entities, regions, etc.eligible forassistance, orineligibility
requirements orapplication procedures.
6. Anychange infinancing instruments, orintheincidence and/or duration ofassistance under
eachinstrument.
7. Anychange inthetotalassistance budgeted under theprogramme.
8. Anychange inarrangements formonitoring, auditing andevaluation oftheprogramme.
9. Trade effects oftheprogramme. (Note thatthePreparatory Committee leftopenthequestion
ofwhether toinclude anotification oftrade effects intheyearly updates under Article 8.3.
SeePC/IPL/11, Annex 1,Introduction.)G/SCM/W/2
Page2
II. ForNotified Research Programmes
1. Identity ofresearch areas, projects, industries, entities, etc.(1)eligible for,and(2)receiving,
assistance during thecurrent year.
2. Anychange intheentity conducting theresearch.
3. Amounts ofassistance provided for(a)industrial research and(b)pre-competitive development:
(a) Under theprogramme asawhole:
(i) cumulatively since itsinception;
(ii) forthecurrent yearalone.
(b) Byproject, orifnotpossible, byresearch area:
(i) cumulatively since theinception oftheprogramme;
(ii) forthecurrent yearalone.
4. Anychange incontractual arrangements, ifrelevant, under which theresearch isconducted.
5. Forindustrial research projects, explanation (including methodology) anddatashowing that:
(a) current yearassistance islimited toeligible costs;
(b) current yearassistance doesnotexceed 75%ofthetotalcostoftheindustrial research;
(c) current yearassistance isconsistent inallother respects withtheconditions ofthe
programme asnotified.
6. Forpre-competitivedevelopmentactivity,explanation(includingmethodology)anddatashowing
that:
(a) current yearassistance islimited toeligible costs;
(b) current yearassistance doesnotexceed 50%ofthetotalcostofthepre-competitive
development activity;
(c) current yearassistance isconsistent inallother respects withtheconditions ofthe
programme asnotified.
7. Forprogrammes subject tothe62.5% ceiling contained infootnote 30oftheSCM Agreement,
anexplanation (including methodology) anddatashowing that:
(a) current yearassistance islimited toeligible costs;
(b) currentyearassistancedoesnotexceed62.5%ofthetotalaggregatecostoftheindustrial
research andpre-competitive development;G/SCM/W/2
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(c) current yearassistance isconsistent inallother respects withtheconditions ofthe
programme asnotified.
III. ForNotified Assistance toDisadvantaged Regions
1. Identity ofregions receiving assistance during thecurrent year,andanychange insuchregions
since thelastnotification/update.
2. Foreachproject receiving assistance during thecurrent year:
(a) amounts ofassistance provided under theprogramme for(a)jobcreation and(b)
investment:
(i) cumulatively since theprogramme 'sinception;
(ii) forthecurrent yearalone.
(b) Anexplanation (including methodology) anddatashowing:
(i) current yearceilings onassistance toeachproject, expressed interms of
investment costs andjobcreation, along withthemethodology anddatafor
calculatingthoseceilings;anddemonstrationthattheseceilingsaredifferentiated
according todifferent levels ofdevelopment oftheassisted regions;
(ii) themethodology usedduring thecurrent yearforcalculating theinvestment
costs andthecosts ofjobcreation oftheassisted projects;
(iii) howitisensured thattheamount ofassistance provided during thecurrent
yearhasbeenconsistent withtheceilings;
(iv) howitisensured thattheassistance hasnotbeenpredominantly usedby,or
disproportionately granted to,certain enterprises;
(v) howthecurrent yearassistance provided isconsistent inallother respects with
theconditions oftheprogramme asnotified.
3. Anychange inthegeneral framework ofregional development.
4. Anychange inthecriteria onthebasis ofwhich theassisted regions were designated as
disadvantaged, including anychange inthemeasurement(s) ofeconomic development used
inthose criteria.
5. Themostrecentthree-years'datausedindeterminingthattheassistedregionsaredisadvantaged.G/SCM/W/2
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IV. ForNotified Assistance toPromote Adaptation ofExisting Facilities toNewEnvironmental
Requirements
1. Assistance under theprogramme asawhole:
(a) cumulatively since itsinception;
(b) forthecurrent yearalone.
2. Foreachproject assisted during thecurrent year:
(a) thenewenvironmental requirement necessitating theassisted adaptation;
(b) therecipient oftheassistance, andthespecific facility being adapted, along withthe
datethatfacility wasputintoservice;
(c) nature andpurpose oftheassisted project withdescription ofhowtheadaptation will
result inthefacility 'smeeting thenewrequirement (i.e.,reduction ofspecific nuisances
orpollutants);
(d) thecurrent-year greater constraints andfinancial burdens imposed ontheassisted firms
bythenewrequirements.
3. Assistance during thecurrent yearbyproject andtypeofcost.
4. Explanation (including methodology) anddatashowing, foreachassisted project during the
current yearthat:
(a) assistance isone-time, non-recurring;
(b) assistance islimited toadaptation ofexisting facilities;
(c) assistance doesnotexceed 20percent ofcosts ofadaptation;
(d) assistance isdirectly linked withandproportionate totheplanned reduction innuisances
andpollution;
(e) assistance doesnotcover anymanufacturing costsavings;
(f) assistance isavailable toallfirms thatcanadopt thenewequipment and/or new
processes.