./.WORLD TRADE
ORGANIZATIONG/SCM/N/74/ATG
4 January 2002
(02-0043)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the
Agreement on Subsidies and Countervailing Measures
Requests Pursuant to the Procedure in Document G/SCM/39
ANTIGUA AND BARBUDA
The following communication, dated 28 December 2001, has been received from the
Government of Antigua and Barbuda.
_______________
In accordance with Article 27.4 of the Agreement on Subsidies and Countervailing Measures
(SCM Agreement) and as agreed to by the Ministers at the Fourth Ministerial Conference in Doha
(WT /MIN(01) /17), the Government of Antigua and Barbuda request an extension of the period
which it may continue to apply export subsidies.
Antigua and Barbuda’s financial, economic and development strategy is linked to a number of
incentive schemes, which are currently in place.  These are listed below without prejudice to either
their legal status under the GATT 1994 and the SCM Agreement, the effects under the Agreement, or
the measure itself:
• Incentives are administered by the Minister of Economic Development, Trade, Industry, and
Commerce; applications for incentives benefits are submitted to the Ministry and then to the
Cabinet of the Government of Antigua and Barbuda.  Available incentives include tax
holidays, import duty exemptions, repatriation of profits, and withholding tax exemptions.
• The main legal basis for Antigua and Barbuda’s tax for investors is codified in the Fiscal
Incentives Act, Cap 172 of the Laws of Antigua and Barbuda, which allows for the granting
of a tax holiday for the manufacture of approved products by approved enterprises, asfollows, (i) up to 15 years for Group 1 Enterprises, (ii) up to 12 years for Group II
Enterprises, Up to 10 years for Group III Enterprises, and up to 15 for Enclave Enterprises, in
which production is exclusively for export or capital-intensive enterprises, in which there is
an investment of not less than US10 Million.   The Act also grants import duty exemptions for
the importation of machinery, equipment, spare parts, building materials, and others, asappropriate, to be used in eligible enterprises.
• A number of incentives are also granted at a sector level.  The Hotel Aid Act, Cap 204 of the
Laws of Antigua and Barbuda, allows for the granting of a tax holiday of up to twenty yearsfor the approved hotel and resort development Companies registered under the InternationalG/SCM/N/74/ATG
Page 2
Companies Act are exempt from the payment of taxes, duties, and similar charges for a period
of twenty years from the date of incorporation.  In general terms, approved projects are
allowed exemptions from payment of withholding  taxes on dividends, interest payments, and
other relevant payments.  In conjunction with the Fisheries Act, Cap 173 and the
Consumption Tax Act, 1993 of the Laws of Antigua and Barbuda, exemption is giving toboats and vessels, navigation equipment, sail, canvas, engines, fuel, lubricants used in
commercial shipping.  As a policy the Minister acting in concert with the Cabinet of Antigua
and Barbuda does grant other incentives to commercial fishermen.
• Antigua and Barbuda has legislation with respect to the operation of a free trade and
processing zone.   Under the Free Trade and processing Zone ACT, 1994 of the Laws ofAntigua and Barbuda companies with licenses to operate in the STPZ would benefit from the
following privileges:
1. Exemption from the payment of taxes or levies imposed by the Government in respect
of any industrial or commercial activity being carried out in the FTPZ.
2. Exemption from the payment of taxes, and other duties on the importation of
machinery, equipment, spare parts, construction material and other items needed to
construct and operate facilities within the FTZ.
3. Exemption from the payment of duty and other taxes on the importation of raw
materials and other goods to be incorporated in the products produced or assembledwithin or to be utilized in the performance of services within the FTPZ.
4. Exemption from the payment of income and other taxes of any kind other Social
Security payments and Medical Benefits contributions and the Education levy on the
earnings accruing to any person by virtue of carrying on his employment in any activitywithin the FTPZ.
5. Exemption from the payment of export taxes or levies on the exportation from the
FTPZ to any place outside of Antigua and Barbuda of any goods or article produced in
the FTPZ.
6. Exemption from the payment of taxes of any kind on the repatriation of profits earned
in the FTPZ.
• The Eastern Caribbean Central Bank (ECCB) offers Antigua and Barbuda
exporters insurance coverage against risks involved in exporting on commercialterms, under the Export Credit Guarantee Scheme.   This ECCB facility covers
up to 80 per cent of political and commercial risks.   The scope of this schemehas been limited by the relative size of the manufacturing sector in Antigua and
Barbuda.
__________