./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q3/BRB/7
30 May 2002
(02-2966)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Follow-Up Questions Posed by the UNITED STATES
Regarding the Notification of BARBADOS1
The following communication, dated 28 May 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.
Programmes for which extension is sought under Article 27.4 and G/SCM/39:
Fiscal Incentive Programme
Export Allowance
Research and Development Allowance
International Business Incentives
Societies with Restricted Liability
1. Could Barbados please provide the implementing legislation, and any relevant amendments,
for each of the programmes for which it is requesting an extension under Article 27.4 of the ASCM?
Fiscal Incentive Programme
We remain concerned with the local value added requirements under this programme.  The
discussion at the recent special meeting of the Committee on Subsidies and Countervailing Measures
concerning this issue was useful in explaining how this programme operates.  However, we seek
further clarification concerning the local value added requirements, and therefore requestconsideration of the following additional questions:
2. Under this programme, local value added is defined as the amount realized from the sales of
the product after subtracting, among other things, the cost of imported raw materials, components,
parts of components, fuels and services.  We seek clarification, therefore, whether the use of
                                                     
1 G/SCM/N/74/BRB, G/SCM/N/71/BRB and G/SCM/Q3/BRB/6.G/SCM/Q3/BRB/7
Page 2
domestically sourced raw materials, components and parts determines, in any way, the duration of the
incentives provided under this programme.
3. Please explain the statement that “the extent of benefits under the Fiscal Incentives Act to be
enjoyed by an approved enterprise is determined by the contribution of the enterprise to the nationaland regional economy measured in terms of local value added”.  Does “extent” refer only to the
duration of the benefits provided under this programme?
Societies with Restricted Liability
4. In G/SCM/Q3/BRB/6, you stated that under this programme companies also benefit from
exemption from exchange controls.  Please explain in  detail the nature of this additional benefit.
5. Please explain whether the exemption from exchange controls under these programmes meets
the eligibility criteria established under G/SCM/39.
Programmes for which an extension is being requested under the normal Article 27.4 procedures
Export Rediscount Facility
6. If this programme is dormant, why is Barbados requesting an extension for this programme?
7. Please explain what the amount of the benefit is under this programme, i.e. , to what extents
exporters could receive lower financing rates for export receivables?
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