G/SCM/N/123/EEC/Add.23
Page 1

World Trade
Organization
G/SCM/N/123/EEC/Add.23
26 August 2005
(05-3608)
Committee on Subsidies and Countervailing Measures / Original: Spanish

subsidies

Notification Pursuant to Article XVI:1 of the GATT 1994 and Article 25
of the Agreement on Subsidies and Countervailing Measures

european communities

Addendum

The following addendum to the notification of the European Community relates to subsidy programmes of Spain.

SPAIN

TABLE OF CONTENTS

Page

I.FISHERIES

A.promotion of aquaculture

B.marine cultivation plans

C.reorganization and renovation of the fishing fleet. renovation and modernization of the fishing fleet

D.reorganization and renovation of the fishing fleet. renovation and modernization of the fishing fleet

E.reorganization and renovation of the fishing fleet. aid to shipowners affected by the stoppage of shipping

F.conversion of the fishing fleet: joint-venture projects

G.reorganization and renovation of the fishing fleet: socio economic measures

H.pilot projects for experimental fishing

II.MINING

A.development of non-energy mining

B.aid to job creation projects in mining areas

III.INDUSTRY

A.technical research development programme

B.support for the capitalization of technology-based enterprises

C.training programme in telecommunications (forintel)

D.technical research development programme for the textile/clothing sector

E.financing of research, development and innovation projects conducted by enterprises

F.support programme for science and technology parks

G.shipbuilding subsidies

H.interest subsidy for shipbuilding loans

I.aid for training shipbuilding workers

J.pamotor programme

IV.small and medium-sized enterprises (smes)

A.arte-sme programme ii

B.sme competitiveness and consolidation plan

V.regional subsidies

A.regional economic incentives scheme

B.conversion of declining industrial areas

I.FISHERIES

2003 and 2004 BUDGET – CO-FINANCED PART OF NATIONAL AID

The information includes a summary of all fisheries programmes together with detailed information on each of them.

Pursuant to Council Regulation (EC) No. 2369/2002 of 20 December 2002, amending Council Regulation (EC) No. 2792/1999 of 17 December 1999, laying down the detailed rules and arrangements regarding Community structural assistance in fisheries and aquaculture, and Royal Decree 3448/2000 of 22 December, establishing the basic regulations for structural aid in the fisheries sector and aquaculture, Royal Decree 235/2002 of 1 March, amending Royal Decree 3448/2000, Royal Decree 1048/2003 of 1 August, on the regulation of the fisheries sector and structural aid; and pursuant to Council Regulation (EC) No. 2561/2001 of 17 December, aiming to promote the conversion of fishing vessels and of fishermen that were dependent, up to 1999, on the fisheries agreement with Morocco, and Council Regulation (EC) No. 2325/2003 of 17 December, amending the above-mentioned Regulation, Royal Decree 137/2002 of 1 February, establishing measures to support shipowners and the crews of the fishing fleet affected by the termination of the fisheries agreement between the European Union and the Kingdom of Morocco, Royal Decree 498/2004 of 1April, amending Royal Decree 137/2002, the following aid has been granted:

Promotion of aquaculture

2003: €3.19 million were transferred to the Autonomous Communities.

2004: €3.99 million were transferred to the Autonomous Communities.

Marine cultivation plans

2003: €1, 377, 780 were transferred to the Autonomous Communities.

2004: €1, 998, 520 were transferred to the Autonomous Communities.

Reorganization and renovation of the fishing fleet

2003:

Definitive stoppage of fishing

€1.90 million were spent on a total of 150 projects.

Renovation and modernization of the fishing fleet

€4.18 million were transferred to the Autonomous Communities.

Aid to shipowners and fishermen affected by the stoppage of fishing

€11.61 million were transferred to the Autonomous Communities.

Socio-economic measures for reorganization of the fleet

€0.29 million in support were provided to 85 beneficiaries.

2004:

Definitive stoppage of fishing

€3.07 million were spent on 151 projects.

Renovation and modernization of the fishing fleet

€5.9 million were transferred to the Autonomous Communities.

Aid to shipowners and fishermen affected by the stoppage of fishing

€5.64 million were transferred to the Autonomous Communities.

Socio economic measures for reorganization of the fleet

€0.6 million in support were provided to 88 beneficiaries.

Conversion of the fishing fleet: joint-venture projects

2003: Average subsidy to joint ventures: €800,000

2004: Average subsidy to joint ventures: €800,000

Pilot projects for experimental fishing

2003: Average aid to pilot projects for experimental fishing: €90,000 per month for the duration of the scheme.

2004: Average aid to pilot projects for experimental fishing: €90,000 per month for the duration of the scheme.

A.promotion of aquaculture

1.Title of the programme

Promotion of aquaculture

2.Period covered by the notification

2003 and 2004

3.Policy objective and/or purpose of the subsidy

Promotion and development of tangible investment in marine and inland aquaculture.

4.Authority

Royal Decree 3448/2000 of 22 December, establishing the basic regulations for structural aid in the fisheries sector and aquaculture, and Royal Decree 235/2002 of 1 March, amending Royal Decree3448/2000.

5.Form of the subsidy

Direct aid

6.Beneficiaries

Enterprises in the aquaculture sector

7.Subsidy per unit or total amount of the subsidy

2003: €3.19 million were transferred to the Autonomous Communities.

2004: €3.19 million were transferred to the Autonomous Communities.

8.Duration of the subsidy

2000 -2006

9.Statistical data permitting an assessment of the trade effects of the subsidy

There are no negative effects on trade.

B.marine cultivation plans

1.Title of the programme

National Marine Cultivation Plans

2.Period covered by the notification

2003 and 2004

3.Policy objective and/or purpose of the subsidy

Development and implementation of National Marine Cultivation Plans as a means of strengthening the balanced development of aquaculture in the Autonomous Communities.

4.Authority

Law 23/1984 of 25 June, on marine cultivation.

5.Form of the subsidy

Direct aid

6.Beneficiaries: to whom and how the subsidy is provided

Transfer to the Autonomous Communities which participate in each of the plans approved by JACUMAR (Advisory Board on Marine Cultivation).

7.Subsidy per unit or total amount of the subsidy

2003: €1, 377, 780 were transferred to the Autonomous Communities.

2004: €1, 998, 520 were transferred to the Autonomous Communities.

8.Duration of the subsidy

Annual

9.Statistical data permitting an assessment of the trade effects of the subsidy

There are no negative effects on trade.

C.reorganization and renovation of the fishing fleet. renovation and modernization of the fishing fleet

1.Title of the programme

Renovation and reorganization of fishing vessels

2.Period covered by the notification

Financial years 2003 and 2004

3.Policy objective and/or purpose of the subsidy

Promotion of investment in the renovation and modernization of the fishing fleet with a view to improving safety and working conditions in the fisheries sector.

4.Authority

Royal Decree 3448/2000 of 22 December, establishing the basic regulations for structural aid in the fisheries sector; Royal Decree 235/2002 of 1 March, amending Royal Decree 3448/2000; and Royal Decree 1048/2003 of 1 August, on the regulation of the fisheries sector and structural aid.

5.Form of the subsidy

Non-repayable subsidies

The subsidies are intended for capital investments in shipbuilding and may contribute towards a deduction of one or more percentage points from the interest payable by a shipowner to a financial institution that has granted him a loan to build a new vessel.

6.Beneficiaries

Owners of new fishing vessels. Shipowners in the fisheries sector.

7.Subsidy per unit or total amount of the subsidy

2003: €4.18 million were transferred to the Autonomous Communities.

2004: €5.90 million were transferred to the Autnonomous Communities.

8.Duration of the subsidy

The duration of the subsidy is governed by Council Regulation (EC) No. 2792/1999 of 17December, laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector, and Council Regulation (EC) No. 2369/2002 of 20 December, amending Council Regulation (EC) No. 2792/1999.

9.Statistical data permitting an assessment of the trade effects of the subsidy

The subsidies for temporary and definitive stoppage exceed those granted for shipbuilding and modernization. They consequently represent a reduction in the gross registered tonnage (GRT) of the Spanish fishing fleet, and therefore have no negative effects on trade.

D.reorganization and renovation of the fishing fleet. renovation and modernization of the fishing fleet

1.Title of the programme

Definitive stoppage of fishing

2.Period covered by the notification

Financial years 2003 and 2004

3.Policy objective and/or purpose of the subsidy

Restructuring of the fleet to encourage a complete end to fishing by certain vessels.

4.Authority

Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic regulations for structural aid in the fisheries sector.

Royal Decree 1048/2003 of 1 August, establishing the basic regulations for structural aid in the fisheries sector.

5.Form of the subsidy

Capital grants

6.Beneficiaries

The aid is paid directly to shipowners in the fisheries sector.

The amount granted varies in accordance with Table 1 of Annex Ito Royal Decree3448/2000.

The amount granted varies in accordance with Table 1 of Annex Ito Royal Decree1048/2003.

7.Subsidy per unit or total amount of the subsidy

In 2003, €1.90 million were paid for a total of 150 projects.

In 2004, €3.07 million were paid for a total of 151 projects.

8.Duration of the subsidy

The programme covers the period from 2000 to 2006.

9.Statistical data permitting an assessment of the trade effects of the subsidy

There is no effect on trade since these payments are made to compensate for the stoppage of fishing.

E.reorganization and renovation of the fishing fleet. aid to shipowners affected by the stoppage of shipping

1.Title of the programme

Definitive stoppage of fishing by vessels dependent until 1999 on the fisheries agreement with Morocco.

2.Period covered by the notification

Financial years 2003 and 2004

3.Policy objective and/or purpose of the subsidy

Pursuant to Council Regulation (EC) No. 2561/2001 of 17 December, later amended by Council Regulation (EC) No. 2325/2003 of 17 December, establishment of a series of requirements and complementary measures to promote the conversion of fishing vessels and fishermen following the non-renewal of the fisheries agreement between the European Union and the Kingdom of Morocco.

4.Authority

Royal Decree 137/2002 of 1 February, establishing measures to support shipowners and the crews of the fishing fleet affected by the termination of the fisheries agreement between the European Union and the Kingdom of Morocco; and Royal Decree 498/2004 of 1 April, amending Royal Decree137/2002.

5.Form of the subsidy

Non-repayable subsidies

6.Beneficiaries

The aid is paid directly to the fishermen.

The amount granted varies pursuant to the provisions of Royal Decree 137/2002 and Royal Decree 498/2004.

7.Subsidy per unit or total amount of the subsidy

2003: €11.61 million were transferred to the Autonomous Communities.

2004: €5.64 million were transferred to the Autonomous Communities.

8.Duration of the subsidy

From 1 July 2001 to 31 December 2003, in the case of shipowners, and from 1 July 2001 to 31 December 2004, in the case of fishermen.

9.Statistical data permitting an assessment of the trade effects of the subsidy

There is no negative effect on trade since these payments are made to compensate for the definitive stoppage of fishing.

F.conversion of the fishing fleet: joint-venture projects

1.Title of the programme

Conversion of the fishing fleet: joint-venture projects.

2.Period covered by the notification

2003 and 2004

3.Policy objective and/or purpose of the subsidy

Aid to the owners of fishing vessels who set up joint ventures with third countries with a view to exploiting their fish stocks and supplying principally the EU market.

4.Authority

Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic regulations for structural aid in the fisheries sector.

Royal Decree 1048/2003 of 1 August, on the regulation of the fisheries sector and structural aid.

5.Form of the subsidy

Non-repayable subsidy

6.Beneficiaries: to whom and how the subsidy is provided

Owners of shipping vessels

7.Subsidy per unit or total amount of the subsidy

2003: Average subsidy to joint ventures: €800,000

2004: Average subsidy to joint ventures: €800,000

8.Duration of the subsidy

The programme covers the period from 2000 to 2004.

9.Statistical data permitting an assessment of the trade effects of the subsidy

The subsidies are intended for the creation of joint ventures with other countries and are therefore considered to have a positive impact on the fisheries trade balance of third countries.

G.reorganization and renovation of the fishing fleet: socio economic measures

1.Title of the programme

Socio economic measures

2.Period covered by the notification

2003 and 2004

3.Policy objective and/or purpose of the subsidy

To introduce socio economic measures for fishermen of boats subject to fisheries restructuring measures who fulfil certain criteria.

4.Authority

Royal Decree 3448/2001 of 22 December, establishing the basic regulations for structural aid in the fisheries sector; and Royal Decree 235/2002 of 1 March, amending Royal Decree 3448/2002.

5.Form of the subsidy

Non-repayable subsidy of a percentage of the amount requested.

6.Beneficiaries: to whom and how the subsidy is provided

Workers in the fisheries sector

7.Subsidy per unit or total amount of the subsidy

In 2003, €0.29 million in support were provided to 85 beneficiaries. Fixed amount.

In 2004, €0.26 million in support were provided to 88 beneficiaries. Fixed amount.

8.Duration of the subsidy

2000 to 2006.

9.Statistical data permitting an assessment of the trade effects of the subsidy

The subsidy is not considered to have any negative trade effects since it is intended for measures in support of workers in the sector.

H.pilot projects for experimental fishing

1.Title of the programme

Pilot projects for experimental fishing

2.Period covered by the notification

2003 and 2004

3.Policy objective and/or purpose of the subsidy

Subsidies to the owners of Spanish fishing vessels for taking part in pilot projects for experimental fishing in external and international waters and waters under the jurisdiction of third countries.

4.Authority

Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic regulations for structural aid in the fisheries sector.

5.Form of the subsidy

Non-repayable subsidy of 80 per cent of the maximum subsidizable cost.

6.Beneficiaries: to whom and how the subsidy is provided

Owners of fishing vessels.

7.Subsidy per unit or total amount of the subsidy

2003: Average aid to pilot projects for experimental fishing: €90,000 per month for the duration of the scheme.

2004: Average aid to pilot projects for experimental fishing: €90,000 per month for the duration of the scheme.

8.Duration of the subsidy

The programme covers the period from 2000 to 2006.

9.Statistical data permitting an assessment of the trade effects of the subsidy

Since the subsidies are intended for research and experimentation in the fisheries sector, they are not considered to have any negative effects on trade.

II.MINING

A.development of non-energy mining

1.Title of the programme

Development of non-energy mining

State aid N 722/2001

2.Period covered by the notification

2003 and 2004

3.Purpose of the subsidy

To develop geological/mining exploration and research in the non-energy mining sector and to reduce the environmental impact of non-energy mining activities.

4.Authority

Ministerial Order ECO/2181/2002 of 29 August (BOE 3.9.2002), partially amended by OrderITC/1917/2004 of 10 June (BOE 21.6.2004)

5.Form of the subsidy

Non-repayable subsidy and repayable subsidy.

Non-repayable subsidy in the case of environmental projects. Repayable subsidy in the case of geological/mining research projects if the result of the research is positive, with a repayment period of five to10 years at an interest rate of 0 per cent or the Euribor rate for one year according to the repayment period. Non-repayable subsidy if the result of the research is negative.

6.Beneficiaries: to whom and how the subsidy is provided

Enterprises, associations of enterprises or institutions which implement projects that meet the objectives set forth in section 3 are eligible for the subsidy.

The subsidies for environmental projects are available for projects located in any region.

In the case of aid for geological/mining exploration and research projects,the maximum subsidy percentage varies according to whether the region involved may avail itself of the exception under Article 87.3(a) or under Article 87.3(c) of the EC Treaty, or is not included in the above exceptions.

This aid is contingent on the applicants meeting their tax and social security obligations, and the recipients must produce documents showing that the subsidized activity has been carried out.

7.Subsidy per unit or total amount of the subsidy

2003: €5 million

2004: €5.92 million

Maximum aid varies between 20 and 70 per cent of the eligible investment depending on the kind of project, the region where it is located and whether or not the enterprise is an SME.

8.Duration of the subsidy

The programme will end on 31 December 2007, except for its mining exploration and environmental protection component, which will end on 31 December 2006.

9.Statistical data permitting an assessment of the trade effects of the subsidy

The programme has no trade effects because of its small scale compared with the size of the sector (annual turnover of between €4,000 and €4,200 million) and the high number of recipients, i.e. 78 enterprises in 2003 and 97 enterprises in 2004.

B.aid to job creation projects in mining areas

1.Title of the programme

Aid scheme for job creation business projects that promote alternative development in mining areas. State aid 476/2001.

2.Period covered by the notification

2003 and 2004

3.Policy objective and/or purpose of the subsidy

The purpose is to promote regional development through aid for investment projects that help reduce the dependency on coal mining of the areas concerned.

4.Authority

Resolution of 20 December 2002, adopted by the Institute for the Restructuring of Coal Mining and Alternative Development of Mining Regions, announcing aid for job creation business projects that promote the alternative development of mining areas.

Resolution of 15 December 2003, adopted by the Institute for the Restructuring of Coal Mining and Alternative Development of Mining Regions, announcing aid for job creation business projects that promote the alternative development of mining areas.

5.Form of the subsidy

Non-repayable subsidies, granted for production investments and calculated on the investment approved by the administration.

6.Beneficiaries: to whom and how the subsidy is provided

Aid is granted to enterprises, in general SMEs, and to independent entrepreneurs.

Once it is approved, the subsidy is notified individually to the those concerned in an individual resolution establishing the basic data for the project, including the name of the recipient enterprise that has applied for it.

The aid is paid once the Autonomous Community, acting through the relevant body, has issued a report substantiating full execution of the project and fulfilment, within the specified periods, of the conditions required in the individual resolution accepted beforehand by the beneficiary. Enterprises may apply to receive the subsidy in instalments provided that they produce evidence that the part of the investment for each instalment has been made together with adequate guarantees against failure to complete.