WORLD TRADE
ORGANIZATIONWT/TPR/M/85/Add.1
21 August 2001
(01-4061)
Trade Policy Review Body
5 and 7 June 2001
TRADE POLICY REVIEW
OECS-WTO MEMBERS
Minutes of Meeting
Addendum
RESPONSES PROVIDED BY ANTIGUA AND BARBUDA
TO ADVANCE WRITTEN QUESTIONS
QUESTIONS FROM CANADA
WTO Secretariat Report WT/TPR/S/85/ATGIV. MARKET ACCESS IN SERVICES;  (2) Financial Services;  paragraph 133
According to para 133, offshore companies may operate  in free zones, but in this case would not be
regulated by the International Financial Regulatory Sector Authority which issues licences for
offshore banks, insurance companies and international business corporations, but by the Free Trade
and Processing Zone Commission.  Please confirm whether foreign financial services providersoperating in “free zones” would be regulated by the Free Trade and Processing Zone Commission
rather than the International Financial Regulatory Authority.
If so, would the Commission apply the same regulation used by the Authority for the rest of the
offshore financial sector?
Foreign  financial services providers involved in non-banking activities would be regulated by
the Free Trade and processing Zone Commission.   All banking related services would be regulated by
the  International Financial Sector Regulatory Authority (IFSRA.   However, companies which are
licensed and regulated by the IFSRA can be physically located in the Free Trade and Processing Zone.
Any company can apply to establish and operate an industry or engage in any commercial
activity which is not specifically prohibited by law, within the Free Trade and Processing Zone.
Enterprises located  outside the physical boundary of the Free Trade and Processing Zone
may be accorded “Free Zone” status by being designated a “Satellite Zone” by the Free Trade and
Processing Zone Commission.
IV. MARKET ACCESS IN SERVICES;  (2) Financial Services;  paragraph 134
According to para 134, the International Business Corporations (IBC) Act has been amended several
times since 1982 to tighten controls on the offshore sector.  In 1999, Antigua and Barbuda also began
to strengthen anti-money laundering legislation.  Have further measures been taken since 1999 or willthey be taken in the near future to continue to control the offshore sector?WT/TPR/M/85/Add.1
Page 2
The Money Laundering Prevention Act No. 9 of 1996 was amended in 1999 and most
recently in 2000 and  2001 to further strengthen its powers.  Since 1999, the following actions have
been taken to strengthen control of the offshore financial sector:
● Commencement of annual on-site bank examinations
● Increased in the complement of bank examiners on staff
● Training of bank examiners with the assistance of the USA
● Signing of a memorandum of Understanding with Financial Intelligence Unit
● Upgrading of IT system with the assistance of the U.S. Government
● Further amendment of the IBC Act to eliminate access to information on the
beneficial owners of bearer shares
● Passage of new regulations for the Offshore Gaming Sector, which is now regulated
by the International Financial Sector Regulatory Authority
● Requirement of the licensee to have a physical presence in Antigua and Barbuda.
● Requirement of the licensee to designate and notify to the Authority its principal
office in Antigua and Barbuda
● Imposition of an Income Tax
The Secretariat Report states that the 1999 amendment of the IBC Act “bans the acceptance of cash
or bearer of negotiable instruments in any amount.”  Please clarify what is meant by this statement.
All institutions licensed under the International Business Corporation Act cannot accept cash
or Financial instruments, which can be negotiated by the bearer.   Funds enter the licensed Institution
by electronic transfers, which are more readily traceable and would have been processed under the
“Know Your Customer Principles” as they travel through the banking system.
IV. MARKET ACCESS IN SERVICES;  (2) Financial Services;  paragraph 137
According to para 137, a draft law is presently being reviewed to harmonize the insurance acts of
CARICOM countries.  Please provide an update on the progress of this legislation and give some
details on the extent of the harmonization process.   Are there other such initiatives underway or
completed in the financial sector?
1. The draft is presently in circulation among insurance companies and agents for comments.
2. Considerations being looked deals with paid-up-capital, Government deposits, and period for
payment of claims.
3. Initiatives to harmonize the financial sector will be dome in line with work presently being
carried to establish the CARICOM Single Market and Economy.
QUESTIONS FROM THE UNITED STATES
(Para. 118)
Price controls are used by all OECS Members for a wide range of products.  What are the OECS
Members’ plans to reduce the products subject to price control?
In Antigua and Barbuda’s case, there is presently an investigation underway to reduce the
number of items under price control.WT/TPR/M/85/Add.1
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(c) Offshore financial services
(Para. 145)
A report by the G-7 Financial Task Force on Money Laundering (FATF) named Dominica, St. Kitts
and Nevis, and St. Vincent and the Grenadines. as "non-cooperative countries" and urged them to
improve their anti-money laundering  regime. What  steps are these OECS Members doing to regulate
and monitor offshore banks more closely?
In Antigua and Barbuda’s case, The Money Laundering Prevention Act No. 9 of 1996 was
amended in 1999 and most recently in 2001 to further strengthen its powers.  Since 1999, the
following actions have been taken to strengthen control of the offshore financial sector:
● Commencement of annual on-site bank examinations
● Increased in the complement of bank examiners on staff
● Training of bank examiners with the assistance of the USA
● Signing of a memorandum of Understanding with Financial Intelligence Unit
● Upgrading of IT system with the assistance of the US Government
● Further amendment of the IBC Act to eliminate access to information on the
beneficial owners of bearer shares
● Passage of new regulations for the Offshore Gaming Sector, which is now regulated
by the International Financial Sector Regulatory Authority
● Requirement of the licensee to designate and notify to the Authority its principal
office in Antigua and Barbuda
● Imposition of an Income Tax
I. THE ECONOMIC ENVIRONMENT
(1) Main Economic Developments(iii) Fiscal Policy
(Para. 11)
Can you please provide further details on the planned industrial park?  What tax incentives will be
used to encourage the development of enterprise in the park?  What other incentives will be offered to
companies wishing to establish themselves in the park?  Will the government distinguish the
qualifications of enterprises for these incentives based on the amount of export production?
The Crabbs Commercial Park Limited is a private sector initiative.  Facilities offered:
● 16 acre site 750’ of commercial waterfront
● Industrially prepared rental units ranging in sizes from 1,200 to 100,000 square foot
● Efficient privately operated port facilities with regular inbound and outbound sailings
● Customs and Excise bonded storage
● Commercial water supplies
● Commercial electrical supplies
● Modern data and telecommunications
● Bulk fuel, lubricant and oil supply
● Waste and scrap removal
● CARICOM preferential access (e.g. CBI and Caribcan for those enterprises that
satisfies rules origin criteria)WT/TPR/M/85/Add.1
Page 4
Companies wishing to locate in the Crabbs Commercial Park will have access to same
incentives and concessions now enjoyed by existing manufactures and services suppliers.
The Government of Antigua and Barbuda will not grant preferential treatment  to enterprises
established in the Crabbs Commercial Park based on an export oriented strategy.
(3) Trends and Patterns in Foreign Direct Investment
(Para. 20)
Can you please provide more information on the Antigua and Barbuda Free Trade and Processing
Zone?  What enterprises may locate in the Zone?  How are enterprises able to qualify for free-zone
status if they are operating outside of the Zone?  Is preferential treatment given to enterprises
established in the zone with export their products?
The primary objective of the Free Trade and Processing Zone is to foster the development and
growth of exports of goods and services.  Hence, all licensees of the Zone, by virtue of section 14 ofthe Free Zone and Processing Act, No. 12 1994 are entitled to the Standard incentives such as duty
free importation of machinery and materials.
Enterprises operating outside the physical borders  of the Free Trade and processing Zone
may be accorded “Free Zone Status” by being designated a “Satellite Zone” by the Free Trade and
Processing Zone Commission.
There is no preferential treatment given to enterprises based on an export oriented strategy.
II. TRADE POLICY REGIME
(4) Investment Policy
(Para. 46 and 47)
Can you please provide more complete information on the types of fiscal incentives offered to
enterprises?  The Report notes that concessions under the Fiscal Incentives Act of 1974 include the
granting of an “export allowance in the form of an extended tax holiday on profits from the
exportation of goods produced in Antigua and Barbuda.”  Please provide more complete notification
of the export allowance.  Is the export allowance available to all enterprises in all industries?  What
are the criteria under which the export allowance is granted?
1. Below is a summary of the types of incentives offered to manufacturing or services wishing to
establish in Antigua and Barbuda:
● Exemption from Custom Duty and Consumption Taxes on the importation of inputs
● Exemption from corporate income taxes
● Exemption from Custom Duty and Consumption Taxes on the importation of building
materials to be used in the  construction of a factory
2. This a rebate for a portion of income tax paid based on their export profits as a percentage of
total profits. Schedule shown below.WT/TPR/M/85/Add.1
Page 5
Export Profits as a Percentage
of Total ProfitsRebate of Income Tax as a Percentage of the
Tax on Export Profits
10 – 20 25
21 – 40 35
41 – 60 45
61 – 100 50
3. Export allowance is only available to all export-oriented enterprises (enclaves operations).  It
is interested to note that are presently no firms operating in Antigua and Barbuda that is presently in
this category.  As matter of fact the Government of Antigua and Barbuda has not granted a company
enclave status for the last 12 years.
4. See answer for  number 2 above.
III. TRADE POLICIES AND PRACTICES BY MEASURE
(2) Measures Directly Affecting Exports
(Para. 86)
Please provide more details on the special exemptions and concessions offered to enclave
enterprises’.  In addition, please describe more fully what an enclave enterprise is and how a
company qualifies to be an enclave enterprise.
1. Below is a summary of the types of incentives offered to manufacturing or services wishing to
establish in Antigua and Barbuda:
● Exemption from Custom Duty and Consumption Taxes on the importation of inputs
● Exemption from corporate income taxes
● Exemption from Custom Duty and Consumption Taxes on the importation of building
materials to be used in the  construction of a factory
2. This a rebate for a portion of income tax paid based on their export profits as a percentage of
total profits.  Schedule shown below.
Export Profits as a Percentage
of Total ProfitsRebate of Income Tax as a Percentage of the
Tax on Export Profits
10 – 20 25
21 – 40 35
41 – 60 45
61 – 100 50
3. Export allowance is only available to all export-oriented enterprises (enclaves operations).  It
is interested to note that are presently no firms operating in Antigua and Barbuda that is presently in
this category.  As matter of fact the Government of Antigua and Barbuda has not granted a companyenclave status for the last 12 years.
4. An Enclave Enterprise is an entity that is established for the sole purpose of exporting all its
production to export markets.   An Enclave status is granted once an investigation has determined that
the company does in fact exports all its production.WT/TPR/M/85/Add.1
Page 6
(3) Measures Affecting Production and Trade
(Para. 94)
It appears that Antigua and Barbuda offer a numbe r of incentives, including import duty exemptions
and tax holidays to various enterprises.  Can you pl ease provide more complete information on all of
these types of programs, including which enterprises or industries are eligible to receive such
exemptions or holidays and in what circumstances they are eligible to receive such exemptions and
holidays?
Based on the Fiscal Incentives Act, 1975, manufactures can qualify for corporate tax holiday
between 10-15 years.  Export oriented industries can qualify for approval for up to 15 years.  Enclave
operations (for export only) do not have a value added requirement as do companies  that produce forthe domestic market.
Non-Fiscal Incentives
This is a rebate for a portion of income tax paid based on their export profits as a percentage
of total profits.
(Para. 95)How does a companies ability or intention to export affect the incentives it is offered?
There is no preferential treatment given to enterprises based on an export oriented strategy.
IV. MARKET ACCESS IN SERVICES
(i) Overview
(Para. 122)
Please describe the approval process for joint-ventures.  What are the requirements?  Is the process
transparent?  Approval for Joint Ventures are carried are given as result of submission of document
required under the Companies Act.  The approval  is given by the Registrar of Companies.
(ii) Insurance
(Para. 135)
What are the licensing requirements for insurance firms?  Is the licensing process fair and
transparent?  What are the registration requirem ents under the Companies Act, aside from those
listed in the Secretariat’s report?  Who provides the “certificate of solvency” - the home country
supervisor?  What is the difference between the “balance sheet” and “profit and loss account?”
Paid-up-Capital of EC$200,000, Government Deposit of EC$200,000, EC$5000.00 Annual
license fee and Registration under the companies Act.  The Licensing procedure is fair, transparent,
and necessary.  The Certificate of Solvency is given by the Registrar of Insurance.  Balance Sheets list
assets and liabilities of the company for particular  period, in the insurance company case, annually.
The Profit and Loss Account is the Income Statement.WT/TPR/M/85/Add.1
Page 7
(Para. 137)
What changes will be made to the existing insurance laws under the draft law harmonizing the
insurance acts of CARICOM countries?
The draft is presently in circulation among insurance companies and agents for comments.
Considerations being looked deals with paid-up-capital, Government deposits, and period for
payment of claims.
Initiatives to harmonize the financial sector will be dome in line with work presently being
carried to establish the CARICOM Single Market and Economy.
(Para. 138)
Does Antigua and Barbuda plan to schedule commitments on other insurance sub-sectors, such as life
and non-life insurance, and services auxiliary to insurance to bind its current market practice?
CARICOM member States are in the process of establishing a single market and economy.
The OECS members are coordinating progressive liberalisation  in the ongoing mandated
negotiations.
(3) Telecommunications
(Para. 140)
Antigua and Barbuda still have state-run domestic operators (Antigua and Barbuda Public utilities
Authorities (APUA) and lack an independent regulator.  The state continues to exercise heavy control
over the pricing of basic telecommunications.  In addition, although Antigua and Barbuda have made
commitments on basic telecommunications, they have not ratified the fourth protocol and their
commitments essentially protect both APUA and C& W Antigua and Barbuda.  Is this situation going
to change?
(Para. 145)
Removing foreign equity limitations would help Antigua and Barbuda improve its position in the
region by encouraging greater private investment.  In addition, if Antigua and Barbuda improved its
market access and national treatm ent commitments in the vari ous telecommunication sectors
currently controlled by APUA and C&W, it would cr eate a more positive investment climate.  Does
Antigua and Barbuda plan to schedule commitments on tour operator and travel agency services?
Such commitments will aid in the further development of the tourism sector.
CARICOM member States are in the process of establishing a single market and economy.
The OECS members are coordinating progressive liberalisation  in the ongoing mandated
negotiations.
(4) Tourism
(Para. 151)
Please explain the rationale behind the 50-room thre shold for foreign investment in hotels under the
Hotel Proprietor Act.  Does Antigua and Barbuda plan to eliminate the 50-room threshold for foreign
investment as a way to achieving its goal of improving the quality of tourism products offered?WT/TPR/M/85/Add.1
Page 8
This is done to get and keep locals involved in investment in the hotel (tourism) sector.
Caricom intends to submit paper on small service suppliers as part of the FTAA negotiating process.
Does Antigua and Barbuda provide for duty-free entry of equipment, supplies and other materials that
are needed by conference organizers to conduct international conferences and seminars efficiently?
Antigua and Barbuda will grant duty free entry of equipment, supplies and other materials
that are needed by conference organizers to conduct international conferences and seminars
efficiently.  The main requirement is for the organise rs to make a request to the Ministry of Trade and
Customs Department.  A list of the items must be sent to the relevant authorities prior to organizers
arrival in Antigua and Barbuda.
(4) Market competition
(iv) Intellectual property rights
As developing countries, OECS-WTO Members should implement the TR IPs Agreement by 1st January
2000.  We would appreciate it if the OECS-WTO members, in particular, Antigua and Barbuda,
Grenada, and St. Vincent and the Grenadines, could you inform us of any concrete steps currently
being undertaken in order to put their legislation in conformity with the TRIPs obligations.
In Antigua and Barbuda's case, Copy Right and Related Acts Law, and Trade Mark Act based
on the World Intellectual Property Organization  (WIPO) model has been drafted and is expected tobe tabled in the Parliament by the end of the year . Geographical Indicators and Patent Acts are being
prepared.
QUESTIONS FROM JAPAN
General Questions concerning Trade and Investments
Are there any inquiry points that respond to questions concerning the laws and systems of investment
or trade in each OECS country?
Ministries with responsibility for Trade, Ministries of Legal Affairs, Trade and Investment
promotion Agencies.  In Antigua and Barbuda’s case, it is the Permanent Secretary, Ministry of
Economic Development, Trade, Industry, and Comme rce, Redcliffe Street, PO Box1550, St. John’s,
Antigua, Telephone:268-462-1532/1542, Facsimile: 268-262-1625. Commissioner, Free Trade and
Processing Zone, Coolidge, PO Box 817, St. John’s, Antigua, Tel:268-481-1650, Facsimile:  268-481-
1672, E-mail:  ftpzone@candw.ag Permanent Secretary, Ministry of Legal Affairs and Justice,Redcliffe Street, St. John’s, Antigua, Tel: 268-462-0245, Facsimile:  268-462-2465.
Each OECS country is making efforts to diversify its economy, which has traditionally depended on a
few agricultural products.  Please explain in detail the strategies for diversifying the economies of
each OECS country.  When foreign companies invest in new industries and products in OECS
countries, what conditions are imposed?  When a tourism company stations a Japanese person as a
guide and interpreter for Japanese tourists, what co nditions are imposed?  In such a case, how much
is the fee to obtain a one-year visa?  Japan considers that IT would play a key role for the
development of national economies.  Does each of the OECS countries have any strategies to utilize
IT for their economic developments  (for example, opening a web-site for tourist information which
includes hotel reservations, as well as providing services through the use of IT to foreign banks andinsurance companies).WT/TPR/M/85/Add.1
Page 9
Report on Antigua and Barbuda by the Secretariat (WT/TPR/S/85/ATG)
According to the Report, reconditioned vehicles from Japan and Korea are restricted because freon is
used in their air-conditioning system.  Is it correct to understand that reconditioned vehicles from
countries other than Japan and Korea are also restricted if freon is used in their air-conditioning
system?
The Government of Antigua and Barbuda has removed this restriction.  It is now possible to
import a used and or reconditioned from any country in the world.
In keeping with the Montreal Protocol, vehicles with Air-conditioning system using freon
refrigerant is retrofitted to an ozone safe refrigerant at the port of St. John's regardless of the country
of origin of the vehicle.
(p. 34, para. 154)
According to the Report, an International Ship’s Registry is in operation under the Merchant
Shipping Acts.  Please provide an explanation in concrete terms on the content of the system of
registry (for example, the required conditions for registry).
To register a vessel, the following documentation must be submitted to Registry offices:
● Original written application
● Original declaration of ownership
● Original Deletion Certificate or Proof of the cancellation of a foreign registry
● Photocopy of present Certificate of registration, if previously registered.
● Photocopies of vessel’s present trading certificates
● Original Power of Attorney from owner to person requesting registration
● Original Bill of sale or Construction Certificate
● Original application for radio license
On completion of registration procedures, and when all fees and expenses are paid, the
Department of Marine Services will supply the official number and call sign (and selective call sign, if
required), and issue the Permanent Registration Certificate.
Concerning mode 3 of the Antigua and Barbuda’s GATS Schedule of Commitments on maritime
transport services, there is a reservation based on the Merchant Shipping Acts referred in this
paragraph.  Please explain in detail the limitation arising from this reservation.
Vessels must be wholly owned by citizens or public bodies of Antigua and Barbuda ,or by
authorized public bodies corporate.  No-citizens ar e required to register as foreign maritime trust and
also maintains an operating office in the Antigua and Barbuda or appoint a qualified resident business
agent.
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