./.WORLD TRADE
ORGANIZATIONG/SCM/N/74/BRB
4 January 2002
(02-0038)
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
BARBADOS
The following communication, dated 28 December 2001, has been received from the
Permanent Mission of Barbados.
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In accordance with Article 27.4 of the Agreement on Subsidies and Countervailing Measures,
and pursuant to paragraph 10.6 of the Doha Mini sterial Decision on Implementation-Related Issues
and Concerns (WT/MIN(01)17) and the proced ures contained in document G/SCM/39, the
Government of Barbados wishes to seek an extension of the transition period for the use of certain
measures which it provides.
The requested extension is necessary in light of Barbados’ economic, financial and
development needs.  Without the assistance of go vernment, Barbados’ productive sectors would be at
a considerable disadvantage in an environment of reciprocity and competition.  Local companies
would not be able to maintain market share on export markets, and investment would significantly
decline along with Barbados’ foreign exchange earnin gs.  Therefore, an extension of the period for the
use of subsidies which may not be covered under Article 3 of the Agreement on Subsidies andCountervailing Measures is necessary for the economic survival and development of Barbados.
The measures offered to the industrial sector for which the Government of Barbados is
seeking an extension are provided for in the legislation listed below.  The measures listed hereunder
are without prejudice either to their legal status under the GATT 1994 and the Agreement onSubsidies and Countervailing Measures, the effects under that Agreement or the measure itself :
1. The Central Bank Act(i) Export Credit Insurance Scheme:  provides insurance cover to exporters against non-payment
by overseas buyers due to commercial and political risks.
(ii) Export Finance Guarantee Scheme:  enables exporters to obtain finance for their export
orders.
(iii) Export Rediscount:  assists exporters, especially small and medium-sized exporters, to obtain
export finance at reduced rates.G/SCM/N/74/BRB
Page 2
(iv) Credit Guarantee scheme for Small Businesses:  assists small businesses in obtaining
adequate security for their loans from commercial banks.
(v) Barbados Investment Fund:  provides equity finance for small and medium-sized businesses
operating in Barbados.
(vi) Industrial Credit Fund:  contributes to indust rial development by providing medium and long-
term credit to private enterprises.
(vii) Line of Credit from the Andean Development Corporation:  provides finance to facilitate
trade with the Andean countries.
2. Fiscal Incentives Act(i) Fiscal Incentive Programme:  grants tax concessions to producers in an effort to stimulate
greater levels of production of selected products required for domestic use and in demandextra-regionally, as well as to increase employment.
(ii) Export Grant and Incentive Scheme:  assists in market research, facilitating outward and
inward missions, participation in trade shows and exhibitions, advertising and promotion for
exporters.
3. Income Tax Act(i) Research and Development Allowance:  enc ourages exporters to thoroughly study their
potential markets.
(ii) Export Allowance:  provides for tax credits in proportion to export sales in an effort to
stimulate exports to new foreign markets.
4. Societies With Restricted Liability Act
Tax and Duty Concessions:  provides for companies registered as SRLs to receive incentives
such as tax on profits and duty free concessions in an effort to attract foreign investment.
5. International Business Companies Act
International Business Incentives:  offers a number of incentives to IBCs by way of tax
reduction, exemptions and benefits.
In addition, the Government of Barbados provides financial assistance to its services,
manufacturing and agricultural sectors in order to foster their growth and development.  This
assistance is necessary given the constraints and disadvantages these sectors face as a result of thesmall size of the Barbados economy. Tax and duty concessions are offered to these sectors through
the Hotel Aids Act, the Income Tax Act, and the Customs Act among others.  This assistance is
critical to the survival of these sectors and is necessary in light of Barbados’ economic, financial and
development needs.
It is to be noted that the Government of Barbados reserves its rights and obligations under the
Agreement on Subsidies and Countervailing Measures and other WTO Agreements.
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