RESTRICTEDWORLD TRADE
ORGANIZATIONIP/C/W/345
24 May 2002
(02-2898)
Council for Trade-Related Aspects
of Intellectual Property Rights
AVAILABLE INFORMATION ON
MANUFACTURING CAPACITY FOR MEDICINES
Note by the Secretariat
1. At the TRIPS Council meeting of 5 to 7 March 2002 the Secretariat was asked to prepare a
note providing available background information on manufacturing capacity for medicines in different
countries.1  Accordingly, this note provides:
- in Annex 1  the latest data available from UNIDO on the value of the output of drugs
and medicines in different countries;
-i n  Annex 2  the latest data available from UNIDO on the value addition in the
manufacture of drugs and medicines in different countries;
-i n  Annex 3  the latest data available on the total exports and imports of medicinal and
pharmaceutical products, by country, from the UN Statistical Division's Comtrade
data base;
-i n  Annex 4  a table excerpted from a UNIDO publication, The World's
Pharmaceutical Industries:  An International Perspective on Innovation, Competition
and Policy  (Robert Ballance, János Pogány and Helmut Forstner, Edward Elgar,
1992) on a typology of the world's pharmaceutical industries according to research
and manufacturing capacities.
Explanatory Notes on Annexes
Annexes 1-22. The data in Annexes 1 and 2 are taken from the UNIDO Industrial Statistical Database,
INDSTAT4 2001 and pertain to the International Standard Industrial Classification of all Economic
Activities (ISIC) Rev. 2 group code 3522 which covers
2:
"the manufacture, fabrication and processing of drugs and medicines, including
biological products, such as bacterial and virus vaccines, serums and plasmas;
medicinal chemicals and botanical products, such as antibiotics, quinine, strychnine
sulpha drugs, opium and derivatives, adrenal, caffeine, codeine derivatives, vitamins;
and pharmaceutical preparations for human and veterinary use."
                                                     
1 IP/C/M/35, para 135.
2 See. http://esa.un.org/unsd/cr/registry/regcs.asp?Cl=8&Lg=1&Co=3522.IP/C/W/345
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Both Annexes 1 and 2 contain the same column headings as explained below:
- Rank:  shows the ranking of each country in descending order with respect to the
value of output or of value addition;
- Year:  shows the year to which the data on the value of output or of value addition
pertain and in this regard it is the latest year for which data are available which is
shown against each country;
- Value:  shows the value of output or of value addition in millions of US dollars;- Definition of valuation:  shows whether th e basis for the value is known and if so,
whether it has been calculated at factor prices or at producers' prices.
3
3. It should be noted that the UNIDO data base referred to in Annexes 1 and 2 does not contain
data pertaining to a large number of countries and is thus incomplete.
Annex 3
4. The trade data in Annex 3 are taken from UN St atistical Division's Comtrade data base, 2001
and pertain to the Standard International Trade Classification (SITC) Rev. 3 group code 54, which
covers medicinal and pharmaceutical products. Group code 54 comprises of sub-groups 541,
medicinal and pharmaceutical products and 542, medicaments (including veterinary medicaments)
which, in turn, include the following4:
• 541.1 - Provitamins and vitamins, natural or reproduced by synthesis (including
natural concentrates), derivatives thereof used primarily as vitamins, and
intermixtures of the foregoing, whethe r or not in any solvent, not put up as
medicaments of group 542;
• 541.3 - Antibiotics, not put up as medicaments of group 542;
• 541.4 - Vegetable alkaloids, natural or reproduced by synthesis, and their salts, ethers,
esters and other derivatives, not put up as medicaments of group 542;
• 541.5 - Hormones, natural or reproduced by synthesis; derivatives thereof, used
primarily as hormones; other steroids used primarily as hormones, not put up as
medicaments of group 542;
• 541.6 - Glycosides; glands or other organs and their extracts; antisera, vaccines and
similar products;
• 541.9 - Pharmaceutical goods, other than medicaments;
• 542.1 - Medicaments containing antibiotics or derivatives thereof;
• 542.2 - Medicaments containing hormones or other products of subgroup 541.5 but
not containing antibiotics;
                                                     
3 See http://esa.un.org/unsd/cdbmeta/default.asp for definitions of value added, factor incomes and
producers' prices.
4 See http://esa.un.org/unsd/cr/registry/regcs.asp?Cl=14&Lg=1&Co=54.IP/C/W/345
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• 542.3 - Medicaments containing alkaloids or derivatives thereof but not containing
hormones, other products of subgroup 541.5, or antibiotics;
• 542.9 - Medicaments, not elsewhere specified.
The data contained in Annex 3 are in four columns as explained below:
- Rank:  shows the ranking of each country in descending order with respect to the
value of exports;
- Value of exports:  shows the value of total exports in millions of US dollars from the
country in the year 2000 or, where the name of the country is marked with an
asterisk, the latest year for which data are available; and
- Value of imports:  shows the value of total imports in millions of US dollars to the
country in the year 2000 or, where the name of the country is marked with an
asterisk, the latest year for which data are available.
Annex 4
5. This information comes from a study published in 1992 and is therefore not up to date.  No
doubt some countries would be in different categories in a more modern listing.
_______________IP/C/W/345
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ANNEX 1
UNIDO DATA ON THE VALUE OF OUTPUT OF DRUGS AND MEDICINES
(IN US$ MILLION)
RANK NAME OF THE
COUNTRYYEAR VALUE OF
OUTPUTDEFINITION OF VALUATION
1 UNITED STATES* 1999 106878 In factor values
2 JAPAN 1993 51089 Valuation not defined
3 FRANCE 1995 20987 Valuation not defined
4 GERMANY 1994 20889 In producers' prices
5 PUERTO RICO 1997 20244 Valuation not defined
6 UNITED KINGDOM 1992 15122 In producers' prices
7 SPAIN 1992 7764 In factor values
8 BRAZIL 1995 7693 In factor values
9 CANADA* 1999 6117 In producers' prices
10 INDIA 1997 6012 In factor values
11 KOREA, REPUBLIC OF* 1997 4815 In producers' prices
12 ITALY 1991 4450 Valuation not defined
13 NETHERLANDS 1993 2917 In producers' prices
14 SWEDEN 1994 2917 In factor values
15 AUSTRIA* 1999 2713 In producers' prices
16 TURKEY 1997 2160 In producers' prices
17 MEXICO 1995 2140 In producers' prices
18 AUSTRALIA 1992 1775 In factor values
19 DENMARK 1991 1619 In factor values
20 INDONESIA 1997 1314 In producers' prices
21 PHILIPPINES* 1997 1278 In producers' prices
22 SOUTH AFRICA 1992 1234 Valuation not defined
23 RUSSIAN FEDERATION 1998 1065 In producers' prices
24 COLOMBIA* 1999 968 In producers' prices
25 PORTUGAL 1995 925 In producers' prices
26 SINGAPORE 1994 874 In factor values
27 EGYPT 1995 844 In factor values
28 GREECE 1992 756 In factor values
29 PAKISTAN 1996 711 In producers' prices
30 THAILAND 1994 652 In producers' prices
31 CHILE* 1999 606 In producers' prices
33 NORWAY 1992 600 Valuation not defined
34 FINLAND 1994 444 Valuation not defined
35 PERU 1994 415 In producers' prices
36 VENEZUELA 1996 390 In producers' prices
37 IRAN (ISLAMIC REP. OF) 1993 349 In producers' prices
38 MOROCCO 1998 330 Valuation not defined
39 GUATEMALA 1998 303 In producers' prices
40 UKRAINE 1998 250 In factor values
41 BANGLADESH 1992 228 In producers' prices
42 EL SALVADOR 1998 209 Valuation not defined
43 MYANAMAR 1998 202 In producers' prices
44 HONG KONG, CHINA 1998 177 In producers' pricesIP/C/W/345
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RANK NAME OF THE
COUNTRYYEAR VALUE OF
OUTPUTDEFINITION OF VALUATION
45 MALAYSIA* 1999 168 In factor values
46 SLOVAKIA 1994 158 Valuation not defined
47 ZIMBABWE 1995 140 In factor values
48 JORDAN 1996 131 In producers' prices
49 TUNISIA 1998 108 In producers' prices
50 ECUADOR 1995 107 In producers' prices
51 ALGERIA 1997 85 In producers' prices
52 COSTA RICA 1997 75 In producers' prices
53 NIGERIA 1994 61 In producers' prices
54 CYPRUS* 1999 53 In producers' prices
55 FORMER YUG. R. OF
MACEDONIA1995 42 Valuation not defined
56 BOLIVIA 1995 38 In producers' prices
57 MALTA** 1996 28 In producers' prices
58 SRI LANKA 1995 25 In producers' prices
59 HONDURAS 1996 24 In producers' prices
60 PANAMA 1991 18 In producers' prices
61 SENEGAL 1997 17 Valuation not defined
62 MACAO, CHINA 1997 14 In producers' prices
63 UNITED REPUBLIC OF
TANZANIA1991 11 In factor values
64 ZAMBIA** 1994 10 In producers' prices
65 LITHUANIA 1993 8 In producers' prices
66 NEPAL 1994 7 In producers' prices
67 CAPE VERDE 1994 5 Valuation not defined
68 MAURITIUS 1997 3 In producers' prices
69 TRINIDAD AND TOBAGO 1995 3 Valuation not defined
70 BAHRAIN 1992 2 Valuation not defined
71 ARGENTINA 1994 1 Valuation not defined
72 KYRGYZTAN 1994 0 In producers' prices
73 ICELAND 1996 0 Valuation not defined
74 FIJI 1994 0 In producers' prices
75 SAINT LUCIA 1997 0 Valuation not defined
76 KUWAIT 1997 0 In producers' prices
77 GABON 1995 0 In factor values
78 COTE D'IVOIRE 1997 0 Valuation not defined
79 ALBANIA 1997 0 In factor values
EXPLANATIONS:
(i)  Data provided to UNIDO by national statistical offices except * and **.
* = UNIDO provisional estimates; ** = Data added/adjusted by UNIDO based on national publications.
(ii)  Data pertain to the manufacture of drugs and medicines (code 3522) except in the case of Italy where data
includes manufacture of chemical products not classified elsewhere and Zimbabwe where data includes soap andcleaning preparations, perfumes, cosm etics and other toilet preparations.IP/C/W/345
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ANNEX 2
UNIDO DATA ON VALUE ADDITION IN TH E MANUFACTURE OF DRUGS AND MEDICINES
(US$ MILLION)
RANK NAME OF COUNTRY YEAR VALUE DEFINITION OF VALUATION
1 UNITED STATES* 1999 75288 In factor values
2 JAPAN 1993 35127 Valuation not defined
3 GERMANY 1993 12464 In producers' prices
4 UNITED KINGDOM 1992 9760 In factor values
5 FRANCE 1995 6545 Valuation not defined
6 BRAZIL 1995 5403 In factor values
7 CANADA* 1999 3595 In producers' prices
8 SPAIN 1992 3193 In factor values
9 KOREA, REPUBLIC OF 1997 2957 In producers' prices
10 SWEDEN 1994 1891 In factor values
11 INDIA 1997 1719 In factor values
12 MEXICO 1994 1624 In producers' prices
13 ITALY 1991 1590 Valuation not defined
14 BELGIUM 1997 1391 In factor values
15 DENMARK 1991 1091 In factor values
16 AUSTRIA* 1999 1025 In producers' prices
17 NETHERLANDS 1993 1007 In producers' prices
18 TURKEY 1997 997 In producers' prices
19 AUSTRALIA*** 1991 792 In factor values
20 PHILIPPINES* 1997 776 In producers' prices
21 SINGAPORE 1994 732 In factor values
22 COLOMBIA* 1999 609 In producers' prices
23 RUSSIAN FEDERATION 1998 545 Valuation not defined
24 INDONESIA 1997 472 In factor values
25 CHILE* 1999 363 In producers' prices
26 PORTUGAL 1995 324 In producers' prices
27 EGYPT 1995 290 In factor values
28 PAKISTAN 1996 281 In producers' prices
29 THAILAND 1994 271 In producers' prices
30 NORWAY 1992 262 Valuation not defined
31 GREECE 1992 251 In factor values
32 FINLAND 1994 222 Valuation not defined
33 VENEZUELA 1996 198 In producers' prices
34 PERU 1994 180 In producers' prices
35 IRAN 1993 167 In producers' prices
36 MYANAMAR 1998 167 Valuation not defined
37 EL SALVADOR 1998 128 In producers' prices
38 MOROCCO 1998 112 Valuation not defined
39 BANGLADESH 1992 110 In producers' prices
40 MALAYSIA* 1999 74 In factor values
41 HONG KONG, CHINA** 1998 67 In producers' prices
42 SLOVAKIA 1994 65 Valuation not defined
43 ZIMBABWE 1995 48 In factor values
44 TUNISIA 1998 48 In producers' pricesIP/C/W/345
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RANK NAME OF COUNTRY YEAR VALUE DEFINITION OF VALUATION
45 JORDAN 1996 46 In producers' prices
46 ALGERIA 1997 44 In producers' prices
47 ECUADOR 1995 27 In producers' prices
48 COSTA RICA 1997 24 In producers' prices
49 FMR. YUG. R. OF
MACEDONIA1995 23 Valuation not defined
50 BOLIVIA 1995 20 In producers' prices
51 CYPRUS* 1999 17 In producers' prices
52 SRI LANKA 1995 16 In producers' prices
53 PANAMA 1991 11 In producers' prices
54 NIGERIA 1994 7 In producers' prices
55 SENEGAL 1997 7 In producers' prices
56 MALTA** 1996 7 In producers' prices
57 HONDURAS 1996 6 In factor values
58 ZAMBIA 1994 6 In producers' prices
59 UNITED REP. OF
TANZANIA**1991 4 In factor values
60 MACAO, CHINA 1997 3 In producers' prices
61 NEPAL 1994 3 In producers' prices
62 MAURITIUS 1997 2 In producers' prices
63 TRINIDAD AND TOBAGO 1995 1 Valuation not defined
64 ICELAND 1996 0 Valuation not defined
65 FIJI 1994 0 In producers' prices
66 SAINT LUCIA 1997 0 Valuation not defined
67 KUWAIT 1997 0 In producers' prices
68 GABON 1995 0 In factor values
69 COTE D'IVOIRE 1997 0 In producers' prices
EXPLANATIONS:
(i)  Data provided to UNIDO by national statistical offices except * , ** and *** .
* = UNIDO provisional estimates;  ** = Data added/adjusted by UNIDO based on national publications;
*** = Data added/adjusted by UNIDO based on international publications.
(ii)  Data pertain to the value added in the manufacture of drugs and medicines (code 3522) except in the case of
Italy where data includes manufacture of chemical pr oducts not classified elsewhere and Zimbabwe where data
includes soap and cleaning preparations, perf umes, cosmetics and other toilet preparations.IP/C/W/345
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ANNEX 3
TOTAL EXPORTS AND IMPORT S OF MEDICINAL AND PH ARMACEUTICAL PRODUCTS BY
COUNTRY, FOR THE YEAR 2000 (*)
(US$ MILLION)
RANK NAME OF THE COUNTRY VALUE OF EXPORTS VALUE OF
IMPORTS
1   UNITED STATES 13122 14855
2   GERMANY 12945 8812
3   UNITED KINGDOM 10784 7348
4   SWITZERLAND 10655 5275
5   FRANCE, MONACO 10321 7972
6   BELGIUM 6834 5551
7   ITALY 6380 6001
8   IRELAND 4908 1417
9   NETHERLANDS 4215 3993
10   SWEDEN 3904 1335
11   DENMARK 2810 902
12   JAPAN 2732 4775
13   SPAIN 2057 3613
14   CHINA 1788 953
15   AUSTRIA 1594 1792
16   CANADA 1228 3803
17   AUSTRALIA 1166 2358
18   INDIA* 1068 373
19   SINGAPORE 1011 717
20   MEXICO 880 1445
21   HONG KONG, CHINA 725 934
22   ISRAEL 429 601
23   SLOVENIA 396 228
24   HUNGARY 342 584
25   KOREA, REP. OF 337 825
26   ARGENTINA 309 774
27   PORTUGAL 282 923
28   BRAZIL 266 1804
29   FINLAND 262 686
30   GREECE 242 1133
31   NORWAY 240 742
32   COLOMBIA 207 458
33   CZECH REP. 203 754
34   CROATIA 189 231
35   POLAND 154 1598
36   TURKEY 148 1344
37   COSTA RICA 139 232
38   THAILAND 116 482
39   JORDAN 112 136
40   SOUTH AFRICA 108 666
41   RUSSIAN FED. 100 1325IP/C/W/345
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RANK NAME OF THE COUNTRY VALUE OF EXPORTS VALUE OF
IMPORTS
42   SLOVAK REP. 95 356
43   BULGARIA 87 130
44   GUATEMALA 85 185
45   MALAYSIA 80 341
46   INDONESIA 78 215
47   NEW ZEALAND 72 354
48   CHINESE TAIPEI 64 820
49   BELARUS 60 224
50   EL SALVADOR 58 153
51   VENEZUELA 55 462
52   LATVIA 54 138
53   CYPRUS 51 90
54   YUGOSLAVIA 51 75
55   EGYPT* 47 345
56   PAKISTAN 42 245
57   LITHUANIA 41 188
58   CHILE 36 278
59   URUGUAY 31 123
60   KENYA 31 78
61   ECUADOR 28 199
62   ROMANIA 24 307
63   ESTONIA 23 80
64   SAUDI ARABIA 22 883
65   LUXEMBOURG 21 147
66   PHILIPPINES 20 347
67   MALTA 20 50
68   TFYR MACEDONIA* 18 41
69   PERU 17 200
70   PANAMA 16 128
71   ICELAND 16 63
72   BARBADOS 15 33
73   MOROCCO 14 133
74   IRAN, ISLAMIC REP. OF 9 387
75   MACAU, CHINA 8 28
76   NEPAL* 7 50
77   ZIMBABWE 7 40
78   PARAGUAY 5 57
79   TUNISIA 5 165
80   GEORGIA 5 36
81   SYRIAN ARAB REPUBLIC 3 55
82   HONDURAS 3 127
83   MOLDOVA, REP. OF 3 42
84   KAZAKHSTAN 2 90
85   KUWAIT* 2 167
86   JAMAICA 2 82
87   NETHERLANDS ANTILLES* 2 28
88   MAURITIUS 2 30IP/C/W/345
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RANK NAME OF THE COUNTRY VALUE OF EXPORTS VALUE OF
IMPORTS
89   SENEGAL 2 44
90   ARMENIA 1 42
91   KIRGYZSTAN* 1 19
92   OMAN 1 66
93   BOLIVIA 1 32
94   NICARAGUA 1 99
95   TRINIDAD AND TOBAGO 1 43
96   GHANA 1 43
97   TANZANIA, UNITED
  REP.*14 2
98   UGANDA 1 34
99   AZERBAIJAN 0 40
100   BAHRAIN 0 42
101   BANGLADESH* 0 84
102   BRUNEI DARUSSALAM* 0 23
103   MONGOLIA* 0 6
104   NEW CALEDONIA 0 40
105   PAPUA NEW GUINEA 0 12
106   QATAR* 0 38
107   TAJIKISTAN 0 1
108   TURKMENISTAN* 0 30
109   BAHAMAS* 0 19
110   BELIZE* 0 6
111   DOMINICA 0 2
112   GRENADA* 0 3
113   ST. KITTS AND NEVIS 0 2
114   ST. LUCIA 0 4
115   ST. VINCENT AND THE
  GRENADINES02
116   SURINAME 0 7
117   ALGERIA 0 466
118   BENIN* 0 23
119   BURUNDI 0 10
120   CAMEROON* 0 45
121   CAPE VERDE* 0 4
122   CENTRAL AFRICAN
  REPUBLIC*06
123   COMOROS 0 1
124   CÔTE D'IVOIRE 0 95
125   GABON* 0 33
126   GAMBIA* 0 3
127   GUINEA 0 23
128   MADAGASCAR* 0 18
129   MALAWI* 0 11
130   MALI* 0 18
131   MAURITANIA* 0 84
132   MOZAMBIQUE* 0 23
133   NIGER* 0 12IP/C/W/345
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RANK NAME OF THE COUNTRY VALUE OF EXPORTS VALUE OF
IMPORTS
134   NIGERIA* 0 197
135   SEYCHELLES* 0 3
136   SUDAN* 0 46
137   TOGO 0 10
138   ZAMBIA* 0 19
139   ALBANIA 0 17
NOTES:
(*) Data pertain to the nearest year available.
-  Figure is zero or became zero due to rounding.-  Product definition:  Medicinal and pharmaceutical products are defined as the division 54 according to
Revision 3 of the Standard International Trade Statistics (SITC).
-  Valuation:  valuation of exports is f.o.b;  imports are valued c.i.f., with exception of Australia, Canada, the
Czech Republic, Papua New Guinea, Mexico, the Slovak Republic, South Africa, TFYR Macedonia,Venezuela, Zambia and Zimbabwe, for which imports are expressed in f.o.b. values.
Source :  United Nations Statistics Division (UNSD), Comtrade data base.IP/C/W/345
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ANNEX 4
THE WORLD'S PHARMACEUTICAL INDUSTRIES
A TYPOLOGY OF THE WORLD'S PHARMACEUTICAL INDUSTRIES
A. Countries with a sophisticated pharmaceutical industry and a significant research base
Belgium Netherlands
France Sweden
Germany Switzerland
Italy United Kingdom
Japan United States
B. Countries with innovative capabilities1
Argentina Ireland
Australia Israel
Austria Mexico
Canada Portugal
China Republic of Korea
Denmark Spain
Finland USSR
Hungary Yugoslavia
India
C. Countries/areas with reproductive capabilities
C1. Those producing both therapeutic ingredients and finished products
Bahamas2Indonesia3
Bolivia Macau, China4
Brazil Norway
Bulgaria Poland
Cuba Puerto Rico
Czechoslovakia Romania
Egypt Turkey
C2. Those producing only finished products
Afghanistan Brunei Cyprus
Albania Cambodia Democratic People's Republic
of Korea
Algeria Cameroon Dominican Republic
Angola Cape Verde Ecuador
Bangladesh Chile El Salvador
Barbados Colombia Ethiopia
Belize Costa Rica Fiji
Benin Côte d'Ivoire Gambia
                                                     
1 Each country in this group discovered and marketed at least one NME between 1961 and 1990.
2 Firms produce therapeutic ingredients (medicinal chemicals) for export.
3 Every foreign-owned factory is required to produce at least one therapeutic ingredient with five years
of start-up.
4 Hovione's (Portugal) subsidiary produces antibiotics and corticosteroids for export.IP/C/W/345
Page 13
Ghana Mauritius Somalia
Greece Mongolia South Africa
Guatemala Morocco Sri Lanka
Guyana Mozambique Sudan
Haiti Myanmar Syrian Arab Republic
Honduras Namibia Chinese Taipei
Hong Kong, China Nepal Thailand
Iran (Islamic Republic of) New Zealand Tonga
Iraq Nicaragua Trinidad and Tobago
Jamaica Niger Tunisia
Jordan Nigeria Uganda
Kenya Pakistan United Arab Emirates
Kiribati Panama United Republic of Tanzania
Kuwait Papua New Guinea Uruguay
Lebanon Paraguay Venezuela
Lesotho Peru Viet Nam
Liberia Philippines Yemen
Madagascar Saudi Arabia Zaire
Malawi Seychelles Zambia
Malaysia Sierra Leone Zanzibar
Mali Singapore Zimbabwe
Malta Solomon Islands
D. Countries/areas without a pharmaceutical industry
Andorra French Guyana New Caledonia
Antigua and Barbuda French Polynesia Niue
Aruba Gabon Oman
Bahrain Greenland Qatar
Bermuda Grenada Reunion
Bhutan Guadeloupe Rwanda
Botswana Guam St. Kitts and Nevis
British Virgin Islands Guinea St. Lucia
Burkina Faso Guinea-Bissau St. Vincent-Grenadines
Burundi Iceland Samoa
Central African Republic Laos San Marino
Chad Libyan Arab Jamah. Sao Tome and Principe
Comoros Liechtenstein Senegal
Congo Luxembourg Suriname
Cook Islands Maldives Swaziland
Djibouti Martinique Togo
Dominica Mauritania Tuvalu
Equatorial Guinea Mayotte US Virgin Island
Faeroe Islands Micronesia Vanuatu
Nauru Western Samoa
Netherland Antilles
__________