G/SCM/Q2/LCA/5  
 
23 August 2019  
(19-5421) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
REPLY TO QUESTION FROM MEXICO1 REGARDING THE NEW  
AND FULL NOTIFICATION  OF SAINT LUCIA2 
The following communication, dated 19 August 2019 , is being circulated at the requ est of the 
delegation of the Saint Lucia . 
 
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Question  
 
With regard to the "Fiscal Incentives Act" programme, Santa Lucia states in its notification 
that "[t]he laws governing these existing programmes will be repealed or modified in the 
coming months to eliminate all references to e xport allowance, local content and all other 
trade -distorting factors that may be contained in the body of these existing laws. New 
procedures and amendments are currently being drafted. Programmes to be implemented 
will be WTO -compatible".  
 
Would Santa Lu cia please clarify whether these laws have already been modified and/or 
repealed and, if not, whether an approximate date for this has been set?  
 
Reply 
 
The laws governing subsidy programmes under Saint Lucia 's Fiscal Incentives Regime have not been 
repealed or modified.  
 
The Government of Saint Lucia has experienced some delay in amending the Fiscal Incentives Act 
to fully comply with its WTO commitments. Saint Lucia through a collaborative effort between the 
Ministry of Finance and the Ministry of C ommerce, International Trade, Investment, Enterprise 
Development and Consumer Affairs is currently taking credible steps to meet its obligations under 
the SCM Agreement including article 27.4 in relation to the phase out and elimination of export 
subsidy p rogrammes.  
 
More specifically, the Government is in the process of reviewing its fiscal incentives regime as 
elaborated by the Fiscal Incentives Act as part of a broader effort to establish a better Tax 
Expenditure Management system and to ensure greater compatibility with the National Investment 
Policy.  
 
This review exercise, is being done through a Business Taxation Simplification and Reform 
Project  undertaken with technical assistance from the International Finance Cooperation (IFC) of 
the World  Bank. Its objective includes to incorporate international best practice into the new Fiscal 
Incentives Regime and to reduce complexity, increase transparency as well as compliance with Saint 
Lucia's international obligation including under the various WTO  agreements. Accordingly, and 
pursuant to Saint Lucia 's obligations with respect to the WTO Agreement on Subsidies and 
Countervailing Measures, the Terms of Reference and scope of work associated with this initiative 
explicitly requires that the Fiscal Inc entives Act be amended so as to remove all non -conforming 
language (in keeping with the prohibitions of Article 3) such as export allowance, local content and 
                                                
1 G/SCM/Q2/LCA/4.  
2 G/SCM/N/284/LCA -G/SCM/N/290/LCA.  G/SCM/Q2/LCA/5  
 
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  any other export contingent performance requirements from the revised Fiscal Incentive Act. This 
work is still at an early stage and therefore is expected to be completed within 18 months.  
 
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