WORLD TRADE  
ORGANIZATION  G/SCM/Q2/MAR/3 
29 avril 2004 
 
 (04-1908) 
Committee on Subsidies 
and Countervailing Measures Original:   French 
 
 
 
SUBSIDIES 
 
Additional Questions Posed by the EUROPEAN COMMUNITIES  
Regarding the Updated Notification of MOROCCO1 
 
  The following communication, dated 27 April 2004,  is being circulated at the request of the 
Permanent Delegation of the European Commission.  
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1. Investment incentives 
Question 1
 
  We note that Morocco does not have any data on the amounts attributed or the number of 
companies that benefit under the programme.  Could Morocco provide at least an estimate to clarify 
the scale of the programme?  
Question 2
 
 
 We have noted that various chapters of th e Internet web site www.invest-in-morocco.gov.ma  
provide the following explanations:   (a) The main fiscal incentives for investment  (page 1 of the 2004 F.L.) include total 
exemption from taxation for five years, r unning from the financial year in which the 
first export transaction takes place, and a 50 per cent reduction beyond that period.  
The 2004 F.L. has extended this exemption to  enterprises that sell finished goods to 
exporters operating in export platforms. 
  (b) The section on the tax incen tives scheme (page 1) also deal s with tax benefits granted 
to certain sectors of activity under ordinary law in respect of general income tax or 
corporate tax.  With reference to the expor t sector, it states that enterprises exporting 
goods or services, and with an annual e xport turnover, shall benefit from total 
exemption for the first five years, running fro m the date of the first export transaction, 
and a reduction of 50 per cent beyond that period. 
 
 Could Morocco confirm this information and, if  so, clarify to what extent these provisions are 
consistent with obligations under Article 3 of the SCM Agreement? 
 
./. 
                                                     
 
1 G/SCM/N/95/MAR. G/SCM/Q2/MAR/3 
Page 2  
 
 Question 3
 
 
 The same web site specifies that the follow ing incentives are available in the mining sector: 
  (a) The main fiscal incentives for investment (page 11) include a 50 per cent exemption, 
for an indefinite period, for mining enterprises directly involved in export and 
enterprises that sell their output on the local market to export promotion companies; 
  (b) Under the tax incentives scheme, (page 2), mining enterprises benefit from a 
50 per cent reduction in income tax or corporate tax for a period of five years, 
running from the date of their first export transaction.  Mining enterprises that sell 
their products to companies for export afte r processing also benefit from this 50 per 
cent reduction, and continue to enjoy th ese benefits beyond the five-year period. 
  Could Morocco confirm this information and, if  so, clarify to what extent these provisions are 
consistent with obligations under Article 3 of the SCM Agreement? 
 
Question 4
 
 
 According to the response given by Morocco, the measures provided for in the Investment 
Charter with regard to fiscal incentives are horizont al in nature, and are related to the act of 
investment and granted automatically upon the creation of an enterprise under ordinary law. 
  Could Morocco clarify how subsidies can be cons idered horizontal in nature, when they relate 
to exports?  2. Export free zones 
 The reply indicates that measures under this pr ogramme are not intended to stimulate exports, 
rather to promote exports in general.  However, according to Article 3 of Law No. 19-94 on export 
free zones, all industrial or commercial export activities and related services activities may be 
authorized in export free zones.  Such wording seems to suggest an export requirement.  Could 
Morocco provide clarification on this point? 
 
 
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