  
  
G/SCM/N/343/SLV  
12 November  2019 
(19-7704) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original:  Spanish  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES  
EL SALVADOR  
The following communication, dated 8 November 2 019, is being circulated at the request of the 
delegation of El Salvador . 
 
_______________  
 
 
El Salvador wishes to notify its subsidy programmes, pursuant to Article XVI:1 of the General 
Agreement on Tariffs and Trade  (GATT) 1994 and Articles  25 and 27.4 of the Agreement on Subsidies 
and Countervailing Measures  ("the SCM Agreement") and in accordance with the procedures laid 
down in the General Council Decision  in document WT/L/691 of 3 1 July 2 007 ("the Decision") . 
 
1. Title of the subsidy programme, if relevant,  or brief description or identification of the subsidy  
 
Programme for firms operating in free zones or in inward -processing warehouses . 
 
2. Period covered by the notification  
 
El Salvador submits this notification for the period 1 January 2 017 to 3 1 December 2 018. 
 
3. Policy objective and/or purpose of the subsidy  
 
To create optimal conditions for stimulating sustained economic growth that will contribute to the 
creation of more  and better jobs, the transfer of technology, and the country's economic and social 
development.  
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) 
A. BACKGROUND  
To improve the welfare of the Salvadoran people by creating opportunities to maintain and raise 
levels of employment through government policies promoting the country's economic and social 
development.  
 
B. AUTHORITY  
Export Processing Zones and Marketing Act  and amendments thereto . 
5. Form of the subsidy (i.e. grant, loan, tax concession, etc. ) 
Tax exemption . 
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  6. To whom and how the subsidy is provided (whether to producers, to exporters, or others ; 
through what mechanism ; whether a fixed or fluctuating amoun t per unit ; if the latter, how 
determined ) 
 
Export Processing Zones and Marketing Act and amendments thereto : Tax exemptions are granted 
to developers, administrators and users of free zones or inward -processing warehouses . 
 
7. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous 
year) . Where provision of per -unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
 
Due to the nature and scope of these programmes, disaggregated statistical  data reflecting the 
amount of  incentives per unit is not available . 
 
8. Duration of the subsidy and/or any other time -limits attached to it, including date of 
inception/commencement  
 
Export Processing Zones and Marketing Act and amendments thereto : The duration of the benefits 
under Salvadoran legislation is dependent on the type of beneficiary (developer, administrator or 
user of free zones or inward -processing warehouses) and the location (within or outside the 
metropolitan area). 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy . The specific 
nature and scope of such statistics is left to the judgement of the notifying Member . To the 
extent possible, relevant and/or determinable, however, it is desirable that such information 
include statistics on the production, consumption, imports and exports of th e subsidized 
product(s) or sector(s ): 
 
(See Annex  1). 
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  ANNEX  1 
COMPARATIVE TABLE  
(USD million ) 
CONCEPT  2017  2018  
(a) World exports  17,554,808 19,346,602 
(b) Salvador an exports  5,760 5,905 
(c) b/a 0.033%  0.031%  
Source : Trade Map ; Central Reserve Bank. 
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