SUBS.IP.3ES. Notification Pursuant to Article XVIsl. Addendum SWEDEN.

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1 GENERAL AGREEMENT ON TARIFFS AND TRADE RESTRIC 1 ] Kv^mi Limited Distribution Originals English A. SUBSIDIES ON NON-PRIfriARY PRODUCTS Nil B. SUBSIDIES ON PRIMARY PRODUCTS I» Nature and extent of subsidy (a) Background and authority The reason for the subsidy SUBS.IP.3ES Notification Pursuant to Article XVIsl Addendum SWEDEN. The Swedish agricultural policy is based on a decision by Parliament in May 1967 which entered into force on 1 September the same year. According to this decision the general aim of the agricultural policy should continue to be to give economic and social security for the people engaged in agriculture. The decision also aims at integrating,to a larger extent than previously, the agricultural policy with the national economy as a whole and creating a more efficient distribution of resources. Furthermore sthe decision aims at reducing total agricultural production in order to avoid as far as possible costly surpluses, to disengage resources bound in agriculture for the benefit of more effective investments in other sectors, and to create increased access to the Swedish market for imports of agricultural products. As in the past farm prices are supported not by means of quantitative restrictions but by import levies (instead of customs duties). The import levies are kept unchanged as long as domestic prices remain within predetermined price limits. Such price limits are fixed for the main agricultural products with the exception of grains and sugar for which products variable import levies are used. (For a fuller description of the Swedish agricultural system reference is made to document COM.AG/w/LO with addenda).

2 l/3655/add.9 Page 2 (b,c) Incidence and amount cf subsidy ' By' a decision in Parliament an annual amount of means derived from import levies is accrued to agriculture for price regulating purposes. This arrangement might be regarded as a general subsidy. Import levies for feeding stuffs ipàâëferred in this way, do not have, however, in a strict sense the character of a subsidy but are to be considered as a restitution of special costs connected with the production. During the last three crop years the amounts have been the following ( ) '-' ^2 These means are used by the semi-official market regulation bodies for price regulation purposes, e.g. to cover costs for marketing and storage.-,. Production subsidies (a) Dairy products (i) Certain budgetary means have been transferred to the dairy sector in order to facilitate the decreased milk production aimed at." During the last three crop years these means have amounted to ( ) (ii) The general milk price subsidy, which previously amounted to 0.3 per kg. was gradually abolished during the period 1 September June During the crop year total expenditure for this support amounted to (iii) An extra price supplement was paid for milk delivered in the northern 0\ regions of the country. Total costs for this support amounted to ( ). " (b) Meat' (i) Beef With a view to facilitating the disposal of those quantities of beef which were a consequence of the slaughtering of milk cows in connexion with the decrease in milk production an amount of 50 was granted during the crop years and.

3 ' l/3655/add.9 Page 3 (ii) Mutton and lamb In order to reduce the market price and thus to stimulate the consumption of mutton and lamb the import levy for these products has been decreased by 2 per kg. while the producers receive a corresponding amount. Total expenditure for this measure amounts to about 6-8 per crop year. Export aid According to the price support system used in Sweden the difference between the higher domestic prices and the prices on the world market must be levelled out when products covered by the system are exported. Special equalization or compensation funds are employed for this purpose which are administered by the market regulation bodies mentioned above. They are financed as far as export aid is concerned mainly by the proceeds from legally compulsory fees paid by the producers (except in the egg sector, where no production fees are imposed) and import levies for instance on feeding stuffs. The export aid during the last three crop years is shown in Annex I. II. Effect of subsidy (a) No indication can be given as to the estimated trade effects of the subsidy. (b) (i) See Annex II. (ii) No previous representative year meaningful in this context can be given.

4 l/3655/add.9 Page 4- ANNEX I Export Payments for Certain.agricultural Products During the Three-Year Period - BTN Product Total /kg. Total /kg. Total /kg » Wheat Rye- Barley Oats Beef Veal Pigmeat ex Bacon Poultry Butter Cheese ex Eggs

5 L/3655/Add.9 Page 5 Produc - July/June Wheat Sï2 Barley Oats Pork Beef and veal Butter Cheese Eggs ANNEX II tion, Consumption., Imports and Exports Dui the Period - (1,000 mt.) Production 1, ,776 1,575 1>90 4 1,584 1, C , Consumption ,480 1,537 1,612 1,326 1,165 1, Production of consumption, % ing Imports Exports ! »