G/SCM/N/95/EEC/Add.12
Page 1
Organization
G/SCM/N/95/EEC/Add.12
15 December 2003
(03-6595)
Committee on Subsidies and
Countervailing Measures / Original: English/
French
SUBSIDIES
Updating Notification Pursuant to Article XVI.1 of the GATT 1994
and Article 25 of the SCM Agreement
EUROPEAN COMMUNITIES
Addendum
The following addendum to the notification of the European Community relates to subsidy programmes of Portugal.
______
PORTUGAL
TABLE OF CONTENTS
Page
1.Operational Programme for the Economy
2.IMIT – Initiative for the Modernization of the Textile Industry
3.RETEX Operational Programme
4.Regional Incentives System (SIR)......
5.Strategic Programme for the Revitalization and Modernization of Portuguese
Industry(PEDIP II)......
6.International Development Support Programme for Trade and Services (PAIEP 2)......
Please note: 1 EURO = Esc 200.482
1.Operational Programme for the Economy
1.Title of the programme
Operational Programme for the Economy.
2.Period covered by the notification
The present notification refers to the years 2001-2002.
3.Purpose and objectives of the programme
The Operational Programme for the Economy was created to stimulate Portuguese companies developing their activities in the industrial (including building construction), tourism, commercial and services sectors and to foster their productivity and competitiveness within the global market:
- To reinforce companies' competitiveness and their participation in the global market;
- To foster potential development areas.
4.Background and authority for the programme
The Operational Programme for the Economy is financed within the European Community Support Framework for eligible community structural interventions under Objective 1 of the Structural Funds during the period 2000-06. The Programme was approved by the European Commission on 11 July 2000 [Commission Decision C (2000) 1774 of 11 July 2000].
At the national level, the Programme is regulated by Decree-Law No. 70-B/2000 of 5May2000.
5.Form of the subsidy
Subsidy modalities are as follows: non-reimbursable subsidies (grants); reimbursable subsidies that may be substituted by the payment of interest or other expenses related to a bank loan of the same value; and venture capital interventions.
6.Subsidy beneficiaries and conditions
The beneficiaries of the Programme are:
- Companies within the industrial, construction, tourism, trade and services sectors and independent investors;
- central and local public administration, tourism areas and committees and other public entities;
- scientific and technological system entities, associative entities and other entities with specific competences in the development either of areas of economic activity and/or of major territorial intervention;
- companies specialized in the development of venture capital and guarantee and counter-guarantee funds directed exclusively to micro-companies and SMEs.
The projects submitted by the beneficiaries of each measure are evaluated according to a group of previously established specific selection criteria. The subsidies for positively evaluated projects are approved by the Minister of Economy and payments made in line with the current investment process.
7.Total and annual amount paid during the years 2001 and 2002
Period: 2001 / Period: 2002 / Period: 2000-2002AXIS / Public
Expenditure / Structural
Funds / National
Expenditure / Public
Expenditure / Structural
Funds / National
Expenditure / Public
Expenditure / Structural
Funds / National
Expenditure
(1)=(2)+(3) / (2) / (3) / (4)=(5)+(6) / (5) / (6) / (7)=(8)+(9) / (8) / (9)
Act on the factors that make companies competitive / 66,757 / 50,068 / 16,689 / 260,860 / 195,645 / 65,215 / 327,617 / 245,713 / 81,904
Promote the strategic areas for development / 19,838 / 14,572 / 5,266 / 153,094 / 100,088 / 53,006 / 172,932 / 114,660 / 58,272
Improve the corporation environment / 26,441 / 18,104 / 8,337 / 117,589 / 83,389 / 34,201 / 144,030 / 101,493 / 42,538
Technical Assistance / 619 / 465 / 155 / 7,811 / 5,858 / 1,953 / 8,430 / 6,323 / 2,108
Total / 113,655 / 83,209 / 30,447 / 539,354 / 384,980 / 154,375 / 653,009 / 468,189 / 184,822
8.Duration of the programme
The duration of the Programme corresponds to the period 2000-2006.
9.Statistical data permitting an assessment of the trade effects of the subsidy
No statistical data permitting an assessment of the possible trade effects of the subsidies are available.
However, it should be underlined that a large percentage of the total subsidies is directed to SMEs engaged in activities related to local markets (non-tradable goods), as well as to entities not involved in market transactions (e.g., non-profit organizations).
2.IMIT – Initiative for the Modernization of the Textile Industry
1.Title of the subsidy programme
“IMIT” - Iniciativa para a Modernização da Indústria Têxtil”
2.Period covered by the notification
The years 2001-2002.
3.Policy objective and purpose of the subsidy
To improve the competitiveness of and to modernize the Portuguese textile and clothing manufacturing sectors.
4.Background and authority for the subsidy
Legal basis:
-Council of Ministers Resolution (RCM) Series No. 96-A/95 (D.R. 231/95, I-B Series, Suppl.2., 6 Oct. 1995); RCM No. 116/98 (D.R. 217/98, I-B Series, 19 Sept. 1998); RCM No.104/99 (D.R. 216/99, I-B Series, 15 Sept. 1999); and RCM No. 7/00 (D.R. 9/00, IISeries, 12 Jan. 2000).
-Decision No. 61-A/B/C/D/E/F/G/H/95 (D.R. 240/95, I-B Series, Suppl.3, 17 Oct. 1995); Decision No. 22/99 (D.R. 97/99, I-B Series, 26 April 1999); Decision No. 63/99, I-BSeries, 23 Nov. 1999).
5.Form of the subsidy
Cash grants, reimbursable loans at zero interest rate and grant interest.
6.To whom and how the subsidy is provided
Recipients:
-Industrial companies in the textile and clothing sectors (Refs. 17, 181 and 182 of the Portuguese Economic Activities Classification - C.A.E.);
-Associations of entrepreneurs;
-Non-lucrative organizations (official or private) providing "fashion and design" services).
Subsidy allocation:
Subsidies are granted to industrial enterprises and/or applicant organizations on a case-by-case basis. They are granted by the Portuguese Ministry of Economy on application and paid according to the progress of the approved project.
7.Total amount or annual amount budgeted for the subsidy
Incentives awarded in 2001 (approved projects):
(EUR thousand)
Community Funds(75%) / National Budget
(25%) / Total
Grant interest / 6,712 / 2,238 / 8,950
Cash grants / 30,559 / 10,186 / 40,745
Reimbursable loans / 10,357 / 3,453 / 13,810
Total Grant / 63,505
Incentives awarded in 2002 (approved projects):
(EUR thousand)
Community Funds(75%) / National Budget
(25%) / Total
Grant interest / 15,406 / 5,139 / 20,555
Cash grants / 25,314 / 8,438 / 33,752
Reimbursable loans / 20,710 / 6,903 / 27,613
Total Grant / 81,920
8.Duration of the subsidy and/or any other time limits attached to it
The initiative was implemented in 1995 and remained available until the end of 1999.
9.Trade effects of the subsidy
No specific economic studies have been carried out. Evaluation data for this item are not available.
3.{0>Programme opérationnel (RETEX)<}91{>RETEX Operational Programme<0}
1.{0>Désignation<}0{>Title<0}
{0>Programme Opérationnel RETEX<}88{>RETEX Operational Programme<0}
2.{0>Objectifs<}100{>Objectives<0}
{0>Programme d’initiative communautaire concernant des aides régionales, qui ont pour but faciliter la modernisation du tissu industriel des régions fortement dépendantes du secteur textile-habillement.<}81{>Community Initiative Programme on regional aid with a view to facilitating the modernization of the industrial fabric in regions which are strongly dependent on the textile and clothing sector.<0}
3.{0>Durée de la subvention<}100{>Duration of the subsidy<0}
{0>La période pendant laquelle le système est en vigueur est 1993-1999.<}99{>This subsidy system was in force from 1993 to 1999.<0}
4.{0>Législation Applicable<}0{>Legislative authority<0}
- {0>Ordonnance No.<}0{>Decision No.<0}{0>264/93 ("Despacho Normativo") du 11 Septembre<}0{>264/93 ("Despacho Normativo") of 11 September 1993;
<0}
- {0>Ordonnance No.<}100{>Decision No.<0}{0>265/93 ("Despacho Normativo") du 11 Septembre<}100{>265/93 ("Despacho Normativo") of 11 September 1993;
<0}
- {0>Ordonnance No.<}100{>Decision No.<0}{0>266/93 ("Despacho Normativo") du 11 Septembre<}100{>266/93 ("Despacho Normativo") of 11 September 1993.<0}
5.{0>Montant de la subvention<}100{>Amount of the subsidy<0}
{0>Année:<}89{>Year:<0} 2001
{0>Montants approuvés et exécutés<}74{>Amounts approved/disbursed:<0}
{0>(Millions d'escudos)<}99{>(Esc million)<0}
{0>Approuvés<}99{>Approved<0} / {0>Exécutés<}0{>Disbursed<0}{0>Fonds de Capital à Risque <}86{>Risk Capital Fund<0} / 0 / 0
{0>Coparticipation Remboursable *<}0{>Reimbursable co-participation *<0} / 1,156,703 / 1,156,703
{0>Subvention à fond perdue<}83{>Non-repayable subsidy<0} / 3,775,954 / 3,962,372
* {0>* Financement remboursable à un taux d’intérêt zéro d’un montant jusqu’à l’équivalent à 40pour cent de la valeur du financement total nécessaire, avec un plafond maximum de 150 millions d'escudos.<}0{>Repayable financing at zero interest rate for an amount not exceeding 40 per cent of the total financing necessary, with a ceiling of Esc 150 million.<0}
{0>Dépense publique programmée:<}99{>Government expenditure programmed:<0} {0>Zéro<}0{>None<0}
{0>Programme est conclu le 31.12.2001<}0{>Programme completed on 31 December 2001.<0}
4.{0>Système d'incitations régionales (SIR)<}99{>Regional Incentives System (SIR)<0}
1.{0>Désignation<}100{>Title<0}
{0>Système d’Incitations Régionales (SIR)<}92{>Regional Incentives System (SIR)<0}
2.{0>Objectifs<}100{>Objectives<0}
{0>Il s'agit d’un régime d'aide régionale qui couvre toutes les régions de l'intérieur ou littoral moins développé du pays.<}0{>The objective of this regional assistance programme, which covers all of the country's less-developed inland and coastal regions, <0}{0>Son objectif est celui de contribuer au développement endogène des régions les moins développées, en augmentant la compétitivité régionale, en contribuant à la création d’emplois et conséquente fixation des populations, aussi bien qu’a la diversification de la production de biens et services.<}0{>is to contribute to the endogenous development of those regions by improving their competitiveness and helping to create jobs and thereby reduce migration, while promoting diversification of the production of goods and services.<0}
3.{0>Durée de la subvention<}100{>Duration of the subsidy<0}
{0>La période pendant laquelle le système est en vigueur est 1994-1999.<}100{>This subsidy system was in force from 1994 to 1999.<0}
4.{0>Législation Applicable<}100{>Legislative authority<0}
{0>Décret-loi n° 193/94 du 19 Juillet.<}83{>Decree-Law No. 193/94 of 19 July 1994;<0}
{0>Résolution du Conseil des ministres n° 67/94 du 11 Août.<}84{>Council of Ministers Resolution No. 67/94 of 11 August 1994.<0}
5.{0>Montant de la subvention<}100{>Amount of the subsidy<0}
{0>Année:<}100{>Year:<0} 2001
{0>Montants approuvés et exécutés<}100{>Amounts approved/disbursed:<0}
{0>(Millions d'escudos)<}100{>(Esc million)<0}
{0>Approuvés<}100{>Approved<0} / {0>Exécutés<}100{>Disbursed<0}{0>Subvention à fonds perdu +<}88{>Non-repayable subsidy +<0}
{0>Coparticipation Remboursable<}94{>Reimbursable co-participation <0} / 0 / 1,515,921
{0>Dépense publique programmée:<}100{>Government expenditure programmed:<0} {0>Zéro<}100{>None<0}
{0>Ce programme est conclu le 31.12.2001<}79{>Programme completed on 31 December 2001.<0}
5.{0>Programme stratégique de dynamisation et modernisation de l'industrie portugaise(PEDIP II)<}99{>Strategic Programme for the Revitalization and Modernization of Portuguese Industry(PEDIP II)<0}
1.{0>Désignation<}100{>Title<0}
{0>Programme Stratégique de Dynamisation et Modernisation de l’Industrie Portugaise (PEDIPII).<}89{>Strategic Programme for the Revitalization and Modernization of Portuguese Industry(PEDIP II).<0}
2.{0>Objectifs<}100{>Objectives<0}
Assistance programme to revitalize the sustained growth of the competitiveness of Portuguese enterprises in order to enhance their capacity to respond to rapid technological and market changes, while at the same time supporting the modernization, diversification and globalization of domestic industry.
3.{0>Durée de la subvention<}100{>Duration of the subsidy<0}
{0>La période pendant laquelle le système est en vigueur est 1994-1999.<}100{>This subsidy system was in force from 1994 to 1999.<0}
4.{0>Législation Applicable<}100{>Legislative authority<0}
{0>Décret-loi n° 177/94 du 27 Juin.<}87{>Decree-Law No. 177/94 of 27 June 1994;<0}
{0>Résolution du Conseil des ministres n° 50/94 du 1 Juillet.<}89{>Council of Ministers Resolution No. 50/94 of 1 July 1994.<0}
5.{0>Montant de la subvention<}100{>Amount of the subsidy<0}
{0>Année:<}100{>Year:<0} 2001
{0>Montants approuvés et exécutés<}100{>Amounts approved/disbursed:<0}
{0>(Millions d'escudos)<}100{>(Esc million)<0}
{0>Approuvés<}100{>Approved<0} / {0>Exécutés<}100{>Disbursed<0}{0>Subvention à fonds perdu + <}100{>Non-repayable subsidy +<0}
{0>Coparticipation Remboursable<}100{>Reimbursable co-participation <0} / 30,508,193 / 30,197,386
{0>Dépense publique programmée:<}100{>Government expenditure programmed:<0} {0>Zéro<}100{>None<0}
{0>Ce programme est conclu le 31.12.2001<}100{>Programme completed on 31 December 2001.<0}
6.{0>Programme d’Appui au Développement International des Activités du Commerce et des Services (PAIEP 2)<}0{>International Development Support Programme for Trade and Services (PAIEP 2)<0}
1.{0>Désignation<}100{>Title<0}
{0>Programme d’Appui au Développement International des Activités du Commerce et des Services (PAIEP 2).<}99{>International Development Support Programme for Trade and Services (PAIEP 2)<0}
2.{0>Objectifs<}100{>Objectives<0}
{0>Promouvoir le développement soutenable de la compétitivité des entreprises du domaine du commerce et services dans le cadre d’une stratégie cohérente de la modernisation et de leur internationalisation.<}89{>To promote the sustainable development of the competitiveness of trade and service enterprises in the context of a coherent strategy for the modernization and globalization of their activities.<0}
3.{0>Durée de la subvention<}100{>Duration of the subsidy<0}
{0>La période pendant laquelle le système est en vigueur est 1994-1999.<}100{>This subsidy system was in force from 1994 to 1999.<0}
4.{0>Législation Applicable<}100{>Legislative authority<0}
{0>Décret-loi n° 290/94 du 14 Novembre.<}87{>Decree-Law No. 290/94 of 14 November 1994;<0}
{0>Résolution du Conseil des ministres n° 121/94 du 15 Décembre.<}89{>Council of Ministers Resolution No. 121/94 of 15 December 1994.<0}
5.{0>Montant de la subvention<}100{>Amount of the subsidy<0}
{0>Année:<}100{>Year:<0} 2001
{0>Montants approuvés et exécutés<}100{>Amounts approved/disbursed:<0}
{0>(Millions d'escudos)<}100{>(Esc million)<0}
{0>Approuvés<}100{>Approved<0} / {0>Exécutés<}100{>Disbursed<0}{0>Subvention à fonds perdu + <}100{>Non-repayable subsidy +<0}
Reimbursable financial co-participation at zero interest rate / 521,628 / 521,628
Government expenditure programmed:<0} {0>Zéro<}100{>None
Programme completed on 31 December 2001.
______