RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q3/PAN/9
9 April 2002
(02-1869)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Questions Posed by the UNITED STATES
Regarding the Notification of PANAMA1
The following communication, dated 5 April 2002, has been received from the Permanent
Mission of the United States.
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The following questions are submitted with respect to the request for extension of the
transition period for export subsidies under Article 27.4 of the Agreement on Subsidies and
Countervailing Measures Agreement (ASCM).  These questions are submitted without prejudice to
our final position.  We reserve the right to ask further questions.
1. Under the Tax Credit Certificates (CAT) program, one of the eligibility requirements is that
the goods exported must have "a minimum share of 20 per cent in national content and national value
added".  Given this requirement, please comment on whether this programme constitutes a prohibited
subsidy under Article 3.1(b) of the Agreement on Subsidies and Countervailing Measures.
2. In light of the fact that the Official Industry Registry programme encourages use of domestic
rather than imported goods, please comment on whether this programme constitutes a prohibited
subsidy under Article 3.1(b) of the Agreement on Subsidies and Countervailing Measures.
3. Is it possible that the special funding programme under the Official Industry Registry will be
implemented in the future?  If not, please explain.
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1 G/SCM/N/74/PAN/1 + 2;  G/SCM/N/48/PA N;  G/SCM/N/60/PAN;  G/SCM/N/71/PAN;
G/SCM/Q3/PAN/7;  G/SCM/Q3/PAN/8