Notification Pursuant to Article XVI:1 of the GATT 1994

G/SCM/N/95/EEC/Add.13
Page 1

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.co-financed programmes. 2001 budget

1.Individual compensatory premiums (for the definitive stoppage of fishing)

2.Promotion of aquaculture

3.Marine cultivation plans

4.Reorganization and renovation of the fishing fleet (renovation and modernization of the fishing fleet)

5.Reorganization and renovation of the fishing fleet (definitive stoppage of fishing)

6.Aid to ship owners affected by the stoppage of fishing. Aid in 2001

7.Conversion of the fishing fleet: joint-venture projects

8.Socio-economic measures as a result of the reorganization of the fishing fleet

9.Pilot projects for experimental fishing

B.co-financed programmes. 2002 budget

1.Promotion of aquaculture

2.Marine cultivation plans

3.Reorganization and renovation of the fishing fleet (renovation and modernization of fishing vessels)

4.Reorganization and renovation of the fishing fleet (definitive stoppage of fishing)

5.Aid to ship owners affected by the stoppage of fishing. Aid in 2002

6.Conversion of the fishing fleet: joint-venture projects

7.Socio-economic measures

8.Pilot projects for experimental fishing

II.MINING

A.mining (other than energy). aid in 2001

B.mining (other than energy). aid in 2002

III.industry

A.technical research development programme (profit)

B.shipbuilding. shipbuilding subsidies

C.shipbuilding. interest subsidy for shipbuilding loans

IV.small and medium sized enterprises (SMEs)

A.arte-sme programme

B.arte-sme programme ii

C.sme competitiveness and consolidation plan

1.Information society

2.Innovation in business methods

V.Regional Subsidies

A.regional economic incentives scheme

1 EURO = 166,386 ESP (SPANISH PESETAS)

I.fisheries

A.co-financed programmes. 2001 budget

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

2001 Budget – Part of national aid co-financed by FIFG (Financial Instrument for Fisheries Guidance)

Pursuant to Council Regulation (EC) 2792/1999 of 17 December 1999 (Official Journal of the EC L337/99), laying down the detailed rules and arrangements regarding Community structural assistance in fisheries, aquaculture and the processing and marketing of products thereof; and Royal Decrees 798/1995 of 19 May, adapting the above-mentioned Regulation, and 3448/2000 of 22December (Official Journal of Spain (BOE) of 23 December 2000), establishing the basic regulations for structural aid in the fisheries sector, the following aid has been granted:

In the financial year for 2001 no co-financial subsidies were granted for the improvement of fishing.

The subsidies previously referred to as compensatory earlier retirement as a result of the reorganization of the fishing fleet were, in the financial year for 2001, granted as socio-economic measures as a result of the reorganization of the fishing fleet.

Individual compensatory premiums

• 38.13 million pesetas (0.23 million euros) were transferred to the Autonomous Communities.

Promotion of aquaculture

• 6,694,864.72 euros were transferred to the Autonomous Communities

Marine cultivations plans

• 1,040,099.52 euros were transferred to the Autonomous Communities.

Reorganization and renovation of the fishing fleet

• Renovation and modernization: 1,059.60 million pesetas (6.37 million euros) were transferred to the Autonomous Communities.

• Definitive stoppage: 10.51 million euros were transferred to the Autonomous Communities.

• Aid to shipowners affected by the stoppage of fishing. Aid in 2001: 46.90 million euros were transferred to the Autonomous Communities.

Conversion of the fishing fleet

• Establishment of joint ventures: 1.14 million euros

Socio-economic measures as a result of the reorganization of the fishing fleet

• 29.96 million pesetas (0.18 million euros) were transferred to the to the Autonomous Communities

Pilot projects for experimental fishing

• Subsidies to pilot projects for experimental fishing: 506,000 euros

1.Individual compensatory premiums (for the definitive stoppage of fishing)

(a)Title of the programme

Individual compensatory premiums

(b)Period covered by the notification

2001

(c)Policy objective and/or purpose of the subsidy

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

(d)Authority

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

(e)Form of the subsidy

Non-renewable subsidy of a percentage of the request

(f)Beneficiaries to whom and how the subsidy is provided

Workers in the fisheries sector.

(g)Subsidy per unit or total amount of the subsidy

0.23 million euros were transferred to the Autonomous Communities.

Fixed amount.

(h)Duration of the subsidy

The duration of the aid programmes depends on the applicable Community Regulations, in this case Council Regulation (EC) 2792/1999 of 17 December 1999, laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector.

The subsidies are granted annually. Period 2000-2006.

(i)Statistical data permitting an assessment of the trade effect of the subsidy

It is deemed to have no effect on trade, since the objective of the subsidy is to compensate workers in the sector who leave the industry.

2.Promotion of aquaculture

(a)Title of the programme

Promotion of aquaculture

(b)Period covered by the notification

2001

(c)Policy objective and/or purpose of the subsidy

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

(d)Authority

Royal Decree 3488/2000 of 22 December (BOE of 23.12.2000) establishing the basic regulations for structural aid in the fisheries sector.

(e)Form of the subsidy

Direct aid

(f)Beneficiaries

Enterprises in the aquaculture sector

(g)Subsidy per unit or total amount of the subsidy

6,694,864.72 euros were transferred to the Autonomous Communities

(h)Duration of the subsidy

The programme covers the period from 2000 to 2006

(i)Statistical data permitting an assessment of the trade effects of the subsidy

The promotion of aquaculture helps to alleviate the crisis in the supply of fish, while at the same time reducing pressure on fish stocks and thus would not appear to have any negative effects on trade.

3.Marine cultivation plans

(a)Title of the programme

National Marine Cultivation Plans

(b)Period covered by the notification

2001

(c)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.

(d)Authority

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

(e)Form of the subsidy

Direct aid

(f)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).

(g)Subsidy per unit or total amount of the subsidy

1,040,099.52 Euros were transferred to the autonomous communities.

(h)Duration of the subsidy

Annual

(i)Statistical data permitting an assessment of the trade effects of the subsidy

The promotion of aquaculture helps to alleviate the crisis in the supply of fish, while at the same time reducing pressure on fish stocks and thus would not appear to have any negative trade effects.

4.Reorganization and renovation of the fishing fleet (renovation and modernization of the fishing fleet)

(a)Title of the programme

Renovation and modernization of the fishing fleet

(b)Period covered by the notification

Financial year 2001

(c)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.

(d)Authority

Royal Decree 798/1995 of 19 May, laying down the detailed rules and arrangements for structural assistance in fisheries, aquaculture and the marketing, processing and promotion of fish products, and Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic regulations for structural aid in the fisheries sector.

(e)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.

(f)Beneficiaries

The owners of new fishing vessels. Shipowners in the fisheries sector.

(g)Subsidy per unit or total amount of the subsidy

6.37 million euros were transferred to the Autonomous Communities

(h)Duration of the subsidy

The programme covers the period from 2002 to 2004.

One-time payment on completion and on justification of the cost

(i)Statistical data permitting an assessment of the trade effects of the subsidy

The subsidies for temporary and definitive stoppage exceed those granted for renovation and modernization. Consequently, they represent a reduction in the gross registered tonnage (GRT) of the Spanish fishing fleet and thus have no effects on trade.

5.Reorganization and renovation of the fishing fleet (definitive stoppage of fishing)

(a)Title of the programme

Definitive Stoppage of Fishing

(b)Period covered by the notification

Financial year 2001

(c)Policy objective and/or purpose of the subsidy

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

(d)Authority

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

(e)Form of the subsidy

Capital grants

(f)Beneficiaries

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

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

(g)Amount of the subsidy

In 2001, 33.68 million euros were paid for a total of 174 boats.

(h)Duration of the subsidy

The programme covers the period from 2000 to 2006.

(i)Statistical data permitting an assessment of the trade effect of the subsidy

There is no effect on trade since the subsidies are directed towards the stoppage of fishing.

6.Aid to ship owners affected by the stoppage of fishing. Aid in 2001

(a)Title of the programme

Special economic aid to owners of fishing vessels operating in the Moroccan fishing grounds, on account of the stoppage of fishing.

(b)Period covered by the notification

Financial year 2001.

(c)Policy objective and/or purpose of the subsidy

Pursuant to Article 61 of Royal Decree 789/1995, of 19 May, providing assistance for the temporary cessation of the activities of fishing fleets caused by unforeseen and non-repetitive events, the requisite aid is granted to owners of fishing vessels operating in the Moroccan fishing grounds,on account of the non-renewal of the fisheries agreement between the European Union and the Kingdom of Morocco.

(d)Authority

Order of 29 November 1999 (BOE of 1 December) and Order of 3 May 2000 (BOE of 18May).

(e)Form of the subsidy

Non-repayable subsidies

(f)Beneficiaries

Shipowners in the fisheries sector, through partner agencies.

The amount granted varies in accordance with Table 2 or 2 bis of the annex of Royal Decree 798/1995 of 19 May.

(g)Amount of the subsidy

The aid is co-financed by the EC. The total amount granted is 46.90 million euros for an average of 320 boats per month.

(h)Duration of the subsidy

From 1 December 1999 to 31 December 2001.

(i)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.

7.Conversion of the fishing fleet: joint-venture projects

(a)Title of the programme

Conversion of the fishing fleet. Joint-venture projects

(b)Period covered by the notification

2001

(c)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.

(d)Authority

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

(e)Form of the subsidy

Non-repayable subsidy

(f)Beneficiaries: to whom and how the subsidy is provided

Owners of shipping vessels

(g)Subsidy per unit or total amount of the subsidy

Average subsidy to joint ventures: 900,000 euros

(h)Duration of the subsidy

The programme covers the period from 2000 to 2004.

(i)Statistical data permitting an assessment of the trade effect of the subsidy

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

8.Socio-economic measures as a result of the reorganization of the fishing fleet

(a)Title of the programme

Socio-economic measures as a result of the reorganization of the fishing fleet

(b)Period covered by the notification

2001

(c)Policy objective and/or purpose of the subsidy

To set up early retirement schemes for fishermen of boats subject to fisheries restructuring measures and who fulfil certain criteria.

(d)Authority

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

(e)Form of the subsidy

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

(f)Beneficiaries: to whom and how the subsidy is provided

Workers in the fisheries sector

(g)Subsidy per unit or total amount of the subsidy

0.18 million euros were transferred to the Autonomous Communities.

Fixed amount.

(h)Duration of the subsidy

The programme covers the period from 2000 to 2006.

(i)Statistical data permitting an assessment of the trade effects of the subsidy

Since the subsidies are intended for workers who leave the fisheries sector they have no effects on trade.

9.Pilot projects for experimental fishing

(a)Title of the programme

Pilot projects for experimental fishing

(b)Period covered by the notification

2001

(c)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.

(d)Authority

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

(e)Form of the subsidy

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

(f)Beneficiaries: to whom and how the subsidy is provided

Owners of fishing vessels.

(g)Subsidy per unit or total amount of the subsidy

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

(h)Duration of the subsidy

The programme covers the period from 2000 to 2006

(i)Statistical data permitting an assessment of the trade effects of the subsidy

The subsidies are for purposes of research on pilot projects for experimental fishing and therefore have no effects on trade.

B.co-financed programmes. 2002 budget

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

2002 Budget – Part of national aid co-financed by FIFG (Financial Instrument for Fisheries Guidance)

Pursuant to Council Regulation (EC) 2792/1999 of 17 December 1999 (Official Journal of the EC L337/99), laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector; and Royal Decrees 798/1995 of 19 May, adapting the above-mentioned Regulation, and 3448/2000 of 22 December (Official Journal of Spain (BOE) of 23December 2000), the following aid has been granted:

In the financial year for 2002 no co-financed subsidies were granted for the improvement of fishing.

The subsidies previously referred to as compensatory earlier retirement as a result of the reorganization of the fishing fleet and individual compensatory premiums weregranted as socio-economic measures.

Promotion of aquaculture

3,986,222.37 euros were transferred to the Autonomous Communities

Marine cultivations plans

1,369,081.53 euros were transferred to the Autonomous Communities.

Reorganization and renovation of the fishing fleet

• Renovation and modernization: 6.75 million euros were transferred to the Autonomous Communities.

• Definitive stoppage: 5.41 million euros were transferred to the Autonomous Communities.

• Aid to shipowners affected by the stoppage of fishing. Aid in 2002: 15.32 million euros were transferred to the Autonomous Communities.

Conversion of the fishing fleet

• Establishment of joint ventures: 3.53 million euros

Socio-economic measures

• 0.31 million euros were transferred to the Autonomous Communities

Pilot projects for experimental fishing

• Subsidies to pilot projects for experimental fishing: 360,000 euros

1.Promotion of aquaculture

(a)Title of the programme

Promotion of aquaculture

(b)Period covered by the notification

2002

(c)Policy objective and/or purpose of the subsidy

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

(d)Authority

Royal Decree 3488/2000 of 22 December (BOE of 23.12.2000) establishing the basic regulations for structural aid in the fisheries sector.

(e)Form of the subsidy

Direct aid

(f)Beneficiaries

Enterprises in the aquaculture sector

(g)Subsidy per unit or total amount of the subsidy

3,986,222.37 euros were transferred to the Autonomous Communities

(h)Duration of the subsidy

The programme covers the period from 2000 to 2006

(i)Statistical data permitting an assessment of the trade effects of the subsidy

The promotion of aquaculture helps to alleviate the crisis in the supply of fish, while at the same time reducing pressure on fish stocks and thus would not appear to have any negative effects on trade.

2.Marine cultivation plans

(a)Title of the programme

National Marine Cultivation Plans

(b)Period covered by the notification

2002

(c)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.

(d)Authority

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

(e)Form of the subsidy

Direct aid

(f)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).

(g)Subsidy per unit or total amount of the subsidy

1,369,081.53 euros were transferred to the autonomous communities.

(h)Duration of the subsidy

Annual

(i)Statistical data permitting an assessment of the trade effects of the subsidy

The promotion of aquaculture helps to alleviate the crisis in the supply of fish, while at the same time reducing pressure on fish stocks and thus would not appear to have any negative trade effects.

3.Reorganization and renovation of the fishing fleet (renovation and modernization of fishing vessels)

(a)Title of the programme

Renovation and modernization of fishing vessels

(b)Period covered by the notification

Financial year 2002

(c)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.