RESTRICTED  
  
S/WPGR/W/25/Add.6  
 
18 March 2013  
(13-1444)  Page: 1/110  
Working Party on GATS Rules   
 
 SUBSIDIES FOR SERVICES SECTORS 
INFORMATION CONTAINED IN WTO TRADE POLICY REVIEWS 
BACKGROUND NOTE BY THE SECRETARIAT1 
Addendum 
1  INTRODUCTION 
1.1.  Government assistance for individual econom ic activities may be granted in many different 
forms and for a variety of purposes. Responding to a request by the Working Party on GATS Rules 
(WPGR), this Note presents some updated empirical evidence of subsidy programmes for services sectors, based on information contained in WTO Trade Policy Review (TPR) reports by the Secretariat.
2  
1.2.  The present Note supplements the informatio n provided in the Secretariat Background Note 
S/WPGR/W/25 (issued in January 1998) including its Addendums 1 to 5, and should thus be read in conjunction with them. It covers 45 Trade Policy Reviews carried out since the last update of the 
Note, from April 2007 to the end of 2009. For thos e Members for which a more recent TPR existed, 
the latest version was used. This was the case in nine instances, namely for: China, the European Union, India, Japan, Norway, the Republic of Korea, Singapore, Tu rkey and the United States (see 
also the first paragraph in Annex 2). New information based on the TPR reports reviewed has been 
added, in italics and colour, in the overview table already contained in the previous versions of the 
Note (Table 1). Additional services sectors, indicated in underline, have been incorporated in said Table, notably: road transport, including public transport; research and development; education; 
health/hospital services; and other utilities (added to energy). 
1.3.  The complete list of TPR reports reviewed in this Note is included in Annex 1. Relevant 
excerpts of individual TPR reports have been included in Annex 2, with some minor editing 
(notably the highlighting of specific services sectors and/or subsidy measures involved). Annex 3 
at the end of the Note provides a table of cont ents of the reviewed TPR reports for ease of 
reference. 
1.4.  As explained in the preceding Notes3, the compilation of information from TPR reports suffers 
from certain limitations due to the particular focus of these reports. First, the selection of Members for review does not reflect any subsidy-relate d analytical purpose, but the country schedule 
established by the Trade Policy Review Body. Second, coverage and content of TPRs are largely 
determined by the availability of data, which in turn depends on the Secretariat's assessment of 
country-specific review priorities at the time of drafting as well as on government co-operation. As a result, the amount of subsidy-specific information contained in reports might vary from Member 
to Member. It also often varies for any given Member from one report to the other, as measures 
already covered in a previous report are not nece ssarily repeated in the following ones, in the 
absence of major policy changes between Reviews.
4 Furthermore, TPR reports may mention the 
                                               
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO. 
2 The information added in the current document ha s been based on the revised versions of the TPR 
reports by the Secretariat.   
3 Introductions to S/WPGR/W/25,  and Add.1 to Add. 5.  
4 This makes it all the more important to read this Secretariat Background Note in conjunction with 
earlier versions.  S/WPGR/W/25/Add.6 
 
- 2 - 
 
  existence of certain subsidy programmes even if these are not necessarily used in practice. 
Conversely, the fact that some reports do not include any subsidy-related information does not imply that such schemes do not exist in the countries concerned. Finally, TPR reports do not normally attempt to assess the underlying objectives, or any possible trade-distortive effects, of 
subsidies.  
2  CONCEPTS AND ENCOUNTERED DIFFICULTIES 2.1.  The subsidy definition generally used for Trade Policy Reviews is based on the definition 
established by the WTO Agreement on Subsidies and Countervailing Measures (ASCM). 
Accordingly, subsidies are deemed to involve a financial contribution by governments or public bodies, which confers a benefit. The TPR reports thus cover assistance granted in the form of 
direct transfers of funds, including grants, loans an d equity infusions; potential direct transfers of 
funds or liabilities (e.g. loan guarantees); gove rnment revenue foregone (e.g. fiscal incentives 
such as tax credits); supply of goods and services  other than general infrastructure; purchase of 
goods; payments to funding mechanisms; or inco me and price support. The following compilation 
focuses on "specific" subsidies, in the light of Article 2 of the ASCM. 
2.2.  While most TPR reports contain some information on subsidies, the limited level of detail 
sometimes makes it difficult to identify, for example, the extent to which a benefit is actually being 
conferred or the identity of the recipient of the subsidy. For instance, subsidies granted to service 
suppliers in sectors such as transport (notably mari time and air, but also road and rail transport in 
a number of instances) and certain utilities may, in fact, benefit downstream users (i.e. the service consumer) rather than the immediate recipient (the service supplier). Likewise, some measures 
may have been intended primarily to promote public policy or infrastructural objectives.
5 The 
resulting ambiguities, in turn, could affect cross-co untry comparability. It is to be noted that the 
following compilation does not include subsidies granted directly to service consumers (the latter 
including depositors/investors/insured persons/patients, etc.).6 
2.3.  A limited level of detail in the reports has also made it difficult, in a number of instances, to 
differentiate between subsidies granted to manufacturing activities as opposed to those accorded 
to services. This has been the case notably for subsidies awarded in the context of cross-sectoral 
investment promotion schemes; regional development funds (to support remote/disadvantaged regions); programmes promoting micro-, small- and medium-sized enterprises (MSMEs); and those granted in the context of special economic/f ree zone regimes. In the latter case, suppliers 
from a range of service sectors may actually qualify for benefits under a special economic/free 
zone regime, provided they export services to natural and legal persons domiciled abroad, or provide services to industrial companies, which are beneficiaries of the free zone regime (typically 
distribution/marketing services, but also transport,  logistics, packaging, storage, inspection and 
certification services, etc.). The increased reliance of manufacturing firms on services ("servicification") in the context of global value chains, and the gradually more cross-sectoral 
nature of government policies make it more difficult to distinguish between subsidies aimed at 
manufacturing versus services activities. 
2.4.  Finally, some of the subsidies mentioned in TPR reports may be financial contributions to 
services which are beyond the scope of the GATS , i.e. services provided in the exercise of 
governmental authority (Article I:3(b)), or to  services excluded through the Annex on Air 
Transport Services. Accordingly, the information contained in this Note, while aimed at facilitating discussions, does not prejudge whether the measures listed should be considered subsidies, nor 
does it imply any judgement on the objectives they pursue or their status under the GATS. 
                                               
5 For example, the provision of basic health services  may be ensured through: (a) cost-free treatment 
in state-owned hospitals; (b) the ex tension of public funds to commer cially independent hospitals; or 
(c) government-sponsored premiums fo r basic health insurance. While conferring the same benefits to the 
same target group, such measures might be described, respectively, as  the provision of infrastructural 
services, subsidies for the health sector, and social transfers and/or subsidies for the insured or his/her 
insurance service supplier. 
6 Not included are, for instance, public measures to subsidize insurance premiums (e.g. health 
insurance) or access to transport serv ices for persons with low income.  S/WPGR/W/25/Add.6 
 
- 3 - 
 
  3  POLICY PATTERNS 
3.1.  The information contained in the Trade Policy Reviews assessed in this Note tends to confirm 
the general patterns identified in previous documents, although some new trends are also emerging.
 Available cumulative evidence, based on the reports reviewed both in this and past 
versions of the Note, suggests that, while subsidie s are found in a whole range of services sectors, 
WTO Members tend to concentrate their services-rel ated subsidies in four main areas: hotels and 
tourism (81 Members concerned); transport − especially maritime (36) and air (32), but also rail 
(17) and road transport (9); financial services (44); and telecommunications (33). Public 
involvement thus appears to be strongest in key infrastructural services. The high incidence of public support measures in the financial sector, notably banking, is also likely to be linked to the financial crisis that started in 2008. Finally, energy- and other utilities-related services and 
construction have also been the object of pu blic funding, with 24 Members maintaining such 
measures. Table 1 details the findings by sector. It is worth recalling, however, that these results may be influenced by the TPR reports' focus on sectors where politically or economically important 
developments are underway, as well as the availability of relevant data.
7 
3.2.  Compared to previous Reviews, two recent trends are noteworthy. First, software 
development, ICT-related and information processing services have attracted a significant number 
of tax incentives, as well as other support measures within special economic/free zones 
(30 Members). Second, some Members' manufacturing operations in free zones (so-called "Maquiladora " or " Maquila " schemes) increasingly treat services as directly related to, and an 
integral part of, the industrial process – a develo pment sometimes referred to as "tertiarization" or 
"servicification". Consequently, these subsidy schemes tend not to distinguish between 
manufacturing and service activities anymore. Th ereby, a range of service suppliers may qualify 
for benefits under a free zone regime, provided they export services to natural and legal persons 
domiciled abroad, or supply services to industrial companies that are beneficiaries of the free zone 
regime. Services incidental to manufacturing; distribution and trading; logistics; warehousing; packaging; storage; inspection; and certification are particularly concerned. This evolution is 
reflected in the significant rise of entries in the category "Other or unspecified sectors" (at the end 
of Table 1). 
3.3.  Concerning the types of measures used, Me mbers continued to rely on tax incentives more 
than on direct grants, as the latter usually weigh more heavily on public finances. 
Developing-country Members also often use duty-fr ee inputs as part of special economic/free zone 
regimes. 
                                               
7 As a general feature, it appears that financial se rvices, transport (mostly ma ritime and air transport), 
telecommunications and postal services  have been reviewed in more detail than, for example, environmental, 
energy-related, audiovisual, health, educat ion, distribution or logistics services.   S/WPGR/W/25/Add.6 
 
- 4 - 
 
  Table 1: Forms of financial assistance to se rvices sectors - information from TPR reports 
 
MEASURE 
 
 Direct 
grants Preferential 
credit & 
guarantees  Equity 
injections Tax 
incentives, 
concessions 
and 
allowances Duty-free 
inputs, free 
zones & 
offshore Other & 
unspecified 
measures Number 
of WTO 
Members 
2 
 
SECTOR 
        
Tourism Botswana 
(2nd, 2003) 
Canada 
Israel Czech Rep. Slovak Rep. Australia 
Lesotho 
(2
nd, 2003) 
Turkey Barbados (2
nd, 2008)  
Switzerland 
(5th, 2009) 
Liechtenstein(3
rd, 2009)  
Fiji 
(2nd, 2009) 
Morocco (4
th, 2009) 
South Africa 
(3rd, 2009)8 
India 
(5th, 2011) 
 Canada 
Nigeria1 
Iceland 
Jamaica South Africa (2
nd, 2003) 
Trinidad & 
 Tobago 
Turkey Slovak Rep. Barbados Uganda 
Botswana 
(2
nd, 2003) 
Belize Brunei D. 
(2
nd, 2008) 
Mauritius (3
rd, 2008) 
Oman (1
st, 2008) 
Switzerland 
(5th, 2009) 
Brazil (5
th, 2009)21 
South Africa 
(3rd, 2009)8 
Georgia 
(1st, 2010) 
India 
(5th, 2011) 
    
 South 
Africa 
(2
nd, 2003) 
Burundi Nigeria  
Argentina 
Egypt 
Israel Jamaica Nicaragua Philippines 
Solomon Is. 
Tanzania Trinidad &  Tobago Uruguay 
Slovak Rep. 
Malawi Haiti Barbados 
Australia 
Dominican  Rep. Zambia (2
nd, 2002) 
Venezuela 
Lesotho (2
nd, 2003)  
Niger Senegal 
Honduras 
Guyana (1
st, 2003) 
Turkey 
Sri Lanka 
Singapore Benin Burkina Faso Mali 
Belize 
Suriname Korea RP Sierra Leone Qatar 
Paraguay 
Ecuador Guinea Bolivia Malaysia 
Djibouti 
China Costa Rica (3
rd, 2007) 
Panama 
(1st, 2007) 
Cameroon (3
rd, 2007) 
Gabon 
(2nd, 2007) 
Peru (3
rd, 2007) 
Antigua & B. (2
nd, 2008) 
Dominica 
(2nd, 2008) 
Grenada (2
nd, 2008) 
St. Kitts &  
 Nevis 
(2nd, 2008) 
Saint Lucia (2
nd, 2008) 
St. Vincent  
 & G. Argentina  
Egypt 
India 
Jamaica Kenya Nicaragua Solomon Is. 
Tanzania 
Trinidad &  Tobago Turkey Uruguay 
Malawi 
Haiti Barbados Burundi 
Niger 
Senegal Honduras Bulgaria Guyana 
(1
st, 2003) 
Burkina Faso Belize Suriname Sierra Leone 
Nigeria 
Ecuador Philippines Guinea 
Bolivia 
Malaysia Djibouti Panama (1
st, 2007) 
Gabon 
(2nd, 2007) 
Antigua & B. (2
nd, 2008) 
Dominica 
(2nd, 2008) 
Grenada (2
nd, 2008) 
St. Kitts   & Nevis 
(2
nd, 2008) 
Saint Lucia (2
nd, 2008) 
St. Vincent  
 & G. 
(2nd, 2008) 
Ghana (3
rd, 2008) 
Barbados 
2nd, 2008) 
Jordan (1
st, 2009) 
Dominican   Republic 
(3
rd, 2009)  
Mozambique 
(2nd, 2009) 
Fiji (2nd, 2009) 
Morocco 
(4th, 2009) 
Senegal (3
rd, 2009) 
Turkey 
(5th, 2012) 
 Guinea1 
Lesotho 
(2nd, 2003) 
Singapore Slovenia Barbados The Gambia 
Chinese  
 Taipei Costa Rica (3
rd, 2007) 
Indonesia 
(5th, 2007) 
Thailand (5
th, 2008) 
Brunei D. 
(2nd, 2008) 
Madagascar (2
nd, 2008) 
Mauritius (3
rd, 2008)8 
Oman 
(1st, 2008) 
Mozambique (2
nd, 2009) 
New 
 Zealand 
(4th, 2009)19 
Morocco (4
th, 2009) 
Maldives 
(2nd, 2009) 
Lesotho (3
rd, 2009) 
EU-27 
(10th, 2011) 
India (5
th, 2011) 
  
 
 81
 S/WPGR/W/25/Add.6 
 
- 5 - 
 
   
MEASURE 
 
 Direct 
grants Preferential 
credit & 
guarantees  Equity 
injections Tax 
incentives, 
concessions 
and 
allowances Duty-free 
inputs, free 
zones & 
offshore Other & 
unspecified 
measures Number 
of WTO 
Members 
2 
 
SECTOR 
        
(2nd, 2008)  
Thailand 
(5th, 2008) 
Ghana (3
rd, 2008) 
Brunei D. 
(2nd, 2008) 
Mauritius (3
rd, 2008) 
Oman 
(1st, 2008) 
Barbados (2
nd, 2008) 
Jordan (1
st, 2009) 
Dominican  
 Republic (3
rd, 2009)  
Liechtenstein (3
rd, 2009)  
Mozambique 
(2nd, 2009) 
Fiji (2
nd, 2009) 
Solomon 
Islands (2
nd, 2009) 
Morocco (4
th, 2009) 
Guyana 
(2nd, 2009) 
Chile (4
th, 2009)21 
South Africa 
(3rd, 2009)8 
Senegal (3
rd, 2009) 
India (5
th, 2011) 
Turkey  
(5th, 2012) 
Korea RP  (6
th, 2012) 
  
 
 
 
 
 
Transportation 
general, 
intermodal 
transport, 
logistics, 
and/or 
unspecified Canada 
Czech Rep. 
Australia 
Namibia 
(2nd, 2003) 
South Africa 
(2nd, 2003) 
New Zealand 
Korea RP  
Panama 
(1st, 2007)9 
Barbados 
(2nd, 2008) 
Liechtenstein
(3rd, 2009)  
 
 
 
 Poland 
Barbados 
(2nd, 2008)  
  Philippines  
Poland 
Korea RP 
Slovak Rep. 
Malawi 
Australia 
Sri Lanka 
Burkina Faso 
Suriname 
Japan 
Qatar 
Paraguay 
Egypt 
Djibouti 
China 
Tanzania 
Antigua & B. 
(2nd, 2008) 
Brunei D. 
(2nd, 2008) 
Barbados 
(2nd, 2008) 
Chile 
(4th, 2009)21 
Niger 
(2nd, 2009) 
Korea RP 
(6th, 2012) Malawi  
Venezuela 
The Gambia 
Burkina Faso 
Suriname 
Philippines 
Egypt 
Djibouti 
Tanzania 
Jordan 
(1st, 2009) 
Morocco 
(4th, 2009) 
 
 Brunei D 
Czech Rep. 
Slovak Rep. 
Bulgaria 
The Gambia 
Sri Lanka 
EC (8th, 
2007) 
Bangladesh 
Central  
 African  
 Republic 
(1st, 2007) 
Gabon 
(2nd, 2007) 
Brunei D. 
(2nd, 2008) 
Mozambique 
(2nd, 2009) 
 
 34 S/WPGR/W/25/Add.6 
 
- 6 - 
 
   
MEASURE 
 
 Direct 
grants Preferential 
credit & 
guarantees  Equity 
injections Tax 
incentives, 
concessions 
and 
allowances Duty-free 
inputs, free 
zones & 
offshore Other & 
unspecified 
measures Number 
of WTO 
Members 
2 
 
SECTOR 
        
Maritime 
transport 
 Australia 
Solomon  
 Islands1 
Czech Rep. Turkey 
Singapore 
Israel U.S. (8
th, 2006) 
Thailand 
(5th, 2008) 
Fiji (2
nd, 2009) 
Solomon Islands 
(2
nd, 2009) 
New Zealand (4
th, 2009) 
U.S. (10
th, 2010) 
Japan 
(10th, 2011) 
Korea RP (6
th, 2012) 
 
 U.S. 
(8th, 2006) 
India Mexico (4
th, 2008) 
  Egypt 
Jamaica Singapore Turkey U.S. 
(8
th, 2006)  
Japan Barbados Australia Venezuela 
HK, China 
Honduras Turkey Sri Lanka EC (7
th, 
2004)  
Philippines Malaysia Djibouti Tanzania 
Panama 
(1
st, 2007) 
Thailand (5
th, 2008) 
Mexico 
(4th, 2008) 
Brunei D. (2
nd, 2008) 
Mauritius 
(3rd, 2008) 
Barbados (2
nd, 2008) 
Jordan (1
st, 2009) 
Japan 
(10th, 2011) 
India (5
th, 2011)24 
Turkey 
(5th, 2012) 
Singapore (6
th, 2012) 
Korea RP 
(6th, 2012) 
Norway (6
th, 2012) 
 Egypt  
Jamaica 
Papua NG Turkey Barbados 
Honduras 
Philippines Djibouti Chinese Taipei Tanzania 
Pakistan 
(3
rd, 2008) 
Brunei D. (2
nd, 2008) 
Barbados 
(2nd, 2008) 
Jordan (1
st, 2009) 
India (5
th, 2011)24 
 
 EC (7th, 
2004)  
Korea RP U.S. (8
th, 2006) 
India 
Australia UAE Thailand (5
th, 2008) 
Brunei D. 
(2nd, 2008) 
Mauritius (3
rd, 2008) 
Dominican  
 Republic 
(3rd, 2009) 
Brazil (5
th, 2009)21 
U.S. 
(10th, 2010) 
 
 
 
 
   36
 
 
 
Air transport 
 Canada 
U.S. 
(8th, 2006) 
Iceland 
Pakistan 
(3rd, 2008) 
Madagascar 
(2nd, 2008) 
Fiji 
(2nd, 2009) 
Solomon 
Islands 
(2nd, 2009) 
Niger 
(2nd, 2009) 
Senegal 
(3rd, 2009) 
Japan  
(10th, 2011) 
 
 
 Papua NG Hungary1 
Japan 
(10th, 
2011) 
 Egypt  
Macau, China 
Venezuela 
HK, China 
Niger 
Honduras 
Singapore 
Mongolia 
Paraguay 
Philippines 
Djibouti 
Canada  
Bahrain 
(2nd, 2007) 
Thailand 
(5th, 2008) 
Mexico 
(4th, 2008) 
Morocco 
(4th, 2009) 
India 
(5th, 2011)25 
Singapore 
(6th, 2012) 
 Hungary  
Papua NG 
Niger 
Honduras 
Philippines 
Egypt 
Djibouti 
Thailand 
(5th, 2008) 
Niger 
(2nd, 2009) 
 EC (7th, 
2004)  
EC (8th, 
2007) 
New  
 Zealand 
U.S. 
(8th, 2006) 
UAE 
Colombia 
Thailand 
(5th, 2008) 
Brunei D. 
(2nd, 2008) 
China (4th, 
2012)6bis 
 
 
 
 32 S/WPGR/W/25/Add.6 
 
- 7 - 
 
   
MEASURE 
 
 Direct 
grants Preferential 
credit & 
guarantees  Equity 
injections Tax 
incentives, 
concessions 
and 
allowances Duty-free 
inputs, free 
zones & 
offshore Other & 
unspecified 
measures Number 
of WTO 
Members 
2 
 
SECTOR 
        
Road transport 
(including 
public 
transport) Gabon  
(2nd, 2007)11 
Switzerland (5
th, 2009) 
Liechtenstein
(3rd, 2009)  
Fiji (2
nd, 2009) 
Botswana (3
rd, 2009) 
India 
(5th, 2011) 
Korea RP (6
th, 2012) 
   Jordan  
(1st, 2009) 
Fiji (2
nd, 2009) 
Morocco 
(4th, 2009) 
India (5
th, 2011) 
  Fiji
 
(2nd, 2009) 
India (5
th, 2011) 
 
  9  
Rail transport India 
Kenya 
Czech Rep. 
South Africa 
(2nd, 2003) 
Turkey 
Thailand 
(5th, 2008) 
Madagascar 
(2nd, 2008) 
Switzerland 
(5th, 2009) 
South Africa 
(3rd, 2009) 
Turkey 
(5th, 2012) 
 Bolivia  Australia  
Hong Kong, 
China 
Senegal 
Mongolia 
Tanzania 
Jordan 
(1st, 2009) 
 Tanzania  
Jordan 
(1st, 2009) 
 Slovak Rep.1 
Malawi 
India 
EC  
(7th, 2004)  
Senegal 
China 
(4th, 2012) 
 
 17 
Financial 
services Poland 
Australia 
South Africa 
(2nd, 2003) 
Korea RP Argentina U.S. 
(10
th, 2010) 
Japan (10
th, 2011) 
EU-27 
(10th, 2011) 
   Poland 
EC (7
th, 2004)  
U.S. 
Slovak Rep. Costa Rica (3
rd, 2007) 
Thailand 
(5th, 2008) 
Ghana (3
rd, 2008) 
Switzerland 
(5th, 2009) 
U.S. (10
th, 2010) 
Japan (10
th, 2011) 
EU-27  
(10th, 2011) 
   
 
 
 
 HK, China  
Norway 
Slovak  
 Rep. Turkey Korea RP China 
Indonesia 
(5
th, 2007) 
Thailand (5
th, 2008) 
Mexico 
(4th, 
2008)20 
U.S.(10th, 
2010) 
Japan 
(10th, 
2011) EU-27 (10
th, 
2011) 
India (5
th, 2011) 
Korea RP 
(6th, 2012) 
Norway (6
th, 2012) 
  
 
 Singapore
 
Tanzania 
U.S. 
Poland Korea RP Malaysia India 
Barbados 
Australia Rwanda Paraguay 
Egypt 
Trinidad &  Tobago Guinea Bolivia 
Djibouti 
Kyrgyz Rep. Uganda Canada Costa Rica 
(3
rd, 2007) 
Ghana (3
rd, 2008) 
Madagascar 
(2nd, 2008) 
Switzerland (5
th, 2009) 
China (4
th, 2012)26 
Singapore 
(6th, 2012) 
 Jamaica  
Singapore 
Tanzania 
Trinidad &  Tobago
1 
St. Vincent   & G 
Barbados 
The Gambia Saint Lucia Egypt 
Guinea 
Djibouti Chinese Taipei Tanzania  
Antigua & B. 
(2
nd, 2008)13 
Dominica (2
nd, 2008)13 
Saint Lucia (2
nd, 2008)13 
St. Vincent  
 & G. (2
nd, 2008)13 
Barbados 
(2nd, 2008) 
Morocco (4
th, 2009)13 
Botswana (3
rd, 2009)13 
Georgia (1
st, 2010)13 
Singapore (6
th, 2012) 
 Korea RP 
Czech Rep. 
Slovak Rep. 
India Barbados Japan Brunei D. 
(2
nd, 2008) 
Turkey (5
th, 2012) 
Norway 
(6th, 2012) 
   44
 S/WPGR/W/25/Add.6 
 
- 8 - 
 
   
MEASURE 
 
 Direct 
grants Preferential 
credit & 
guarantees  Equity 
injections Tax 
incentives, 
concessions 
and 
allowances Duty-free 
inputs, free 
zones & 
offshore Other & 
unspecified 
measures Number 
of WTO 
Members 
2 
 
SECTOR 
        
Software 
development, 
ICT/IT-related 
services, 
information 
processing 
(call centres, 
etc.) Canada 
Australia 
Turkey 
Panama 
(1st, 2007) 
Barbados 
(2nd, 2008) 
South Africa 
(3rd, 2009)22 
 
 
 Jamaica 
Barbados 
(2nd, 2008)  
  Canada  
Egypt 
Korea RP 
Slovak Rep. 
Australia 
Sri Lanka 
Belize 
Philippines 
Malaysia 
Djibouti 
U.S. 
(8th, 2006) 
Antigua & B. 
(2nd, 2008) 
Dominica 
(2nd, 2008) 
Saint Lucia 
(2nd, 2008) 
St. Vincent  
 & G. 
(2nd, 2008) 
Pakistan 
(3rd, 2008) 
Brunei D. 
(2nd, 2008) 
Mauritius 
(3rd, 2008) 
Barbados 
(2nd, 2008) 
Jordan 
(1st, 2009) 
Fiji 
(2nd, 2009) 
Guyana 
(2nd, 2009) 
India 
(5th, 2011) 
China  
(4th, 2012) 
Korea RP  
(6th, 2012) 
 Jamaica  
Trinidad &  
 Tobago1 
Uruguay 
The Gambia 
Belize 
Philippines 
Malaysia 
Djibouti   
Saint Lucia 
(2nd, 2008) 
St. Vincent  
 & G. 
(2nd, 2008) 
Pakistan 
(3rd, 2008) 
Brunei D. 
(2nd, 2008) 
Jordan 
(1st, 2009) 
India 
(5th, 2011) 
 
 Korea RP 
Panama 
(1st, 2007) 
Pakistan 
(3rd, 2008) 
Fiji 
(2nd, 2009) 
 
 30 
Research & 
development Ghana  
(3rd, 2008) 
   
 Mexico  
(4th, 2008) 
Brunei D. (2
nd, 2008) 
India (5
th, 2011) 
Korea RP  
(6th, 2012) 
  Switzerland  
(5th, 2009) 
 6 
Education Brunei D.  
(2nd, 2008) 
 Oman  
(1st, 2008)   Antigua & B.  
(2nd, 2008) 
Oman 
(1st, 2008)   Oman  
(1st, 2008) 
Mozambique 
(2nd, 2009) 
India 
(5th, 2011) 
 5 
Health/ 
hospital 
services Brunei D.  
(2nd, 2008) 
Barbados (2
nd, 2008) 
Jordan 
(1st, 2009) 
 Oman  
(1st, 2008) 
Barbados (2
nd, 2008)   Antigua & B.  
(2nd, 2008) 
Oman (1
st, 2008) 
Barbados 
(2nd, 2008) 
Jordan (1
st, 2009) 
India 
(5th, 2011)21 
Korea RP  
(6th, 2012) 
 Jordan  
(1st, 2009) 
 Brunei D.  
(2nd, 2008) 
Oman (1
st, 2008) 
Mozambique 
(2nd, 2009) 
India (5
th, 2011) 
 8 S/WPGR/W/25/Add.6 
 
- 9 - 
 
   
MEASURE 
 
 Direct 
grants Preferential 
credit & 
guarantees  Equity 
injections Tax 
incentives, 
concessions 
and 
allowances Duty-free 
inputs, free 
zones & 
offshore Other & 
unspecified 
measures Number 
of WTO 
Members 
2 
 
SECTOR 
        
Construction U.S. 
(8th, 2006) 
Australia 
Chile 
(3rd, 2003) 
Barbados 
(2nd, 2008) 
Mozambique 
(2nd, 2009)19 
Chile (4th, 
2009)8 & 21 
China 
(4th, 2012) 
 Argentina 
Poland 
Chinese Taipei 
Barbados 
(2nd, 2008)  Argentina  
Bolivia 
Trinidad &  
 Tobago 
Turkey 
Korea RP 
Poland 
India 
Australia 
Venezuela 
Niger 
Sri Lanka 
Burkina Faso 
Suriname 
Mongolia 
Djibouti 
U.S. 
(8th, 2006) 
Barbados 
(2nd, 2008)8 
Mozambique 
(2nd, 2009) 19 
 Brunei D.  
India 
Niger 
Burkina Faso 
Suriname 
Djibouti 
Mozambique 
(2nd, 2009)19 
 EU-27 
(10th, 2011) 
 24 
Recreation, 
culture, sports, 
betting and 
gambling 
services  Canada 
Korea RP 
Norway Australia  Jamaica 
 Bolivia  
Costa Rica 
(3rd, 2007) 
Australia Niger Senegal 
Honduras 
Sri Lanka Antigua & B. (2
nd, 2008)  
St. Kitts  
 & Nevis 
(2nd, 2008) 
Saint Lucia (2
nd, 2008) 
Jordan 
(1st, 2009) 
Korea RP  (6
th, 2012) 
 Bolivia  
Israel 
Niger Senegal Honduras Chinese Taipei 
Antigua & B. 
(2
nd, 2008) 
Dominica (2
nd, 2008) 
Saint Lucia 
(2nd, 2008) 
St. Vincent   & G. (2
nd, 2008) 
Jordan 
(1st, 2009) 
  19  
Telecoms Singapore  
Australia 
Venezuela 
El Salvador 
Canada 
Botswana 
(2nd, 2003) 
Namibia 
(2nd, 2003) 
Chile 
(3rd, 2003) 
U.S. 
(7th, 2003) 
Ghana 
(3rd, 2008)6 
Oman 
(1st, 2008)6 
Guatemala 
(2nd, 2009)6 
Brazil 
(5th, 2009)6 
Botswana 
(3rd, 
2009)6bis 
Lesotho 
(3rd. 2009)6 
 Barbados  
(2nd, 2008) 
  Venezuela  
Singapore 
Burkina Faso 
Korea RP 
Mongolia 
Paraguay 
Nigeria 
Philippines 
Egypt 
Tanzania 
 Trinidad &  
 Tobago1 
Mozambique 
The Gambia 
Burkina Faso 
Philippines 
Egypt 
Tanzania 
Saint Lucia 
(2nd, 2008) 
 Niger 
The Gambia 
Iceland 
Chinese  
 Taipei 
Central  
 African  
 Republic 
(1st, 
2007)6bis 
Mauritius 
(3rd, 
2008)6bis 
Dominican  
 Republic 
(3rd, 
2009)6bis 33 S/WPGR/W/25/Add.6 
 
- 10 - 
 
   
MEASURE 
 
 Direct 
grants Preferential 
credit & 
guarantees  Equity 
injections Tax 
incentives, 
concessions 
and 
allowances Duty-free 
inputs, free 
zones & 
offshore Other & 
unspecified 
measures Number 
of WTO 
Members 
2 
 
SECTOR 
        
Audiovisual 
services 
 Argentina 
Canada 
EC (7
th, 2004)  
Australia 
New Zealand 
The Gambia Fiji (2
nd, 2009) 
Korea RP 
(6th, 2012) 
    
 Canada  
Jamaica 
Tanzania Korea RP Singapore 
Benin 
Burkina Faso Paraguay U.S. (8
th, 2006) 
Mexico 
(4th, 2008) 
Fiji (2
nd, 2009) 
New Zealand 
(4th, 2009) 
South Africa (3
rd, 2009) 
 Jamaica  
Tanzania 
Burundi Burkina Faso  EC (
7th, 
2004)  
Chinese   Taipei South Africa 
(3
rd, 2009) 
  20
 
Wholesale 
and/or retail 
distribution, 
trade, import-
export Australia 
Barbados 
(2nd, 2008)  Turkey 
Brazil 
(5th, 2009)21 
  Trinidad  &  
 Tobago 
Korea RP 
Australia 
Venezuela 
Honduras 
Sri Lanka 
Japan 
Brunei D. 
(2nd, 2008) 
Barbados 
(2nd, 2008) 8 
Korea RP 
(6th, 2012)8 
 Tanzania  
El Salvador 
Honduras 
Bulgaria 
The Gambia 
Sri Lanka 
Chinese Taipei 
Panama 
(1st, 2007)7 
Peru  
(3rd, 2007) 7 
Saint Lucia 
(2nd, 2008)13 
St. Vincent  
 & G. 
(2nd, 2008)13 
India 
(5th, 2011)4 
 Thailand  
(5th, 2008)8 
Brunei D. 
(2nd, 2008) 
 
 21 
Real estate Australia India 
  Canada  
Japan 
Australia  Trinidad &  
 Tobago  6  
Energy and 
other utilities Australia 
Turkey 
Gabon 
(2nd, 2007)10 
Brunei D. 
(2nd, 2008)15 
Madagascar 
(2nd, 2008) 15 
Maldives 
(2nd, 2009) 
 Ghana 
(3rd, 2008) 
  Madagasca r 
Slovak Rep. 
Haiti 
Australia 
Sri Lanka 
Mongolia 
Nigeria 
Egypt 
China 
Costa Rica 
(3rd, 2007) 
Cameroon 
(3rd, 2007) 
Jordan 
(1st, 2009)17 
China 
(4th, 2012) 
 The Gambia  
Egypt 
 Brunei D. 
India 
El Salvador 
Bulgaria 
U.S. 
(7th, 2003) 
The Gambia 
Angola 
Bangladesh 
Canada 
Central  
 African  
 Republic 
(1st, 2007)5 
Gabon 
(2nd, 2007) 
India 
(5th, 2011) 
 24 
Other o r 
unspecified 
sectors Australia 
New Zealand 
Turkey Tunisia Gabon (2
nd, 2007)12 
Pakistan (3
rd, 2008)8 
Madagascar (2
nd, 2008)12 
Barbados Australia 
Bangladesh 
Turkey Czech Rep. Uganda Panama 
(1
st, 2007)8 
Thailand 
(5th, 2008)8 
Pakistan (3
rd, 2008)8 Canada  Singapore  
Korea RP Australia Venezuela Senegal Honduras 
Benin 
Burkina Faso Belize Suriname Jamaica Hungary
 
Singapore 
Dominica Saint Lucia St. Vincent  & G. 
Mauritania 
Burundi Senegal Honduras The Gambia Brunei D. 
Czech Rep. 
Mauritius Slovak Rep. El Salvador The Gambia 
HK, China 
Macao,   China (3
rd, 2007) 
Panama 63 S/WPGR/W/25/Add.6 
 
- 11 - 
 
   
MEASURE 
 
 Direct 
grants Preferential 
credit & 
guarantees  Equity 
injections Tax 
incentives, 
concessions 
and 
allowances Duty-free 
inputs, free 
zones & 
offshore Other & 
unspecified 
measures Number 
of WTO 
Members 
2 
 
SECTOR 
        
(2nd, 2008)16 
Jordan 
(1st, 2009)12  
Dominican 
Republic 
(3rd, 2009)8 
Switzerland  
(5th, 2009)12 
Niger (2
nd, 2009)23 
Senegal (3
rd, 2009)23 
   Mexi
co 
(4th, 2008)8 
Brunei D. 
(2nd, 2008) 
Oman  
(1st, 2008)14 
Barbados 
(2nd, 2008)8 
Dominican   Republic 
(3
rd, 2009)8 
Brazil 
(5th, 2009)21 
  
 
 Paraguay
 
Egypt 
Trinidad &   Tobago Tunisia 
Guinea 
Malaysia Djibouti U.S. (8
th, 2006) 
China 
Uganda Costa Rica
 
(3rd, 2007) 3 
Cameroon 
(3rd, 2007) 
Antigua & B. (2
nd, 2008) 
Dominica (2
nd, 2008) 
St. Kitts  
 & Nevis (2
nd, 2008) 
Saint Lucia. 
(2nd, 2008) 
St. Vincent   & G. (2
nd, 2008) 
Thailand 
(5th, 2008)8 
Mexico 
(4th, 2008)14 
Mauritius (3
rd, 2008) 14 
Oman (1
st, 2008) 14 
Barbados 2
nd, 2008) 
Switzerland 
(5th, 2009) 
Guatemala (2
nd, 2009)4 
Singapore 
(6th, 2012) 
Korea RP (6
th, 2012)8 
 Rwanda  
Burkina Faso 
Belize Suriname Jamaica  
Egypt 
Trinidad &   Tobago Tunisia Guinea 
Malaysia 
Djibouti Chinese Taipei Costa Rica
4 
(3rd, 2007) 
Indonesia 
(5th, 2007)4 
Peru (3
rd, 2007) 
Saint Lucia 
(2nd, 2008)13 
Thailand (5
th, 2008) 
Madagascar 
(2nd, 2008)4 
Mauritius (3
rd, 2008) 14 
Oman (1
st, 2008) 14 
Guatemala 
(2nd, 2009)4 
Morocco (4
th, 2009)4 
Chile 
(4th, 2009)4 
Maldives 
(2nd, 2009) 
India (5
th, 2011)4 
Turkey (5
th, 2012)4 
Korea RP (6
th, 2012)4 
 
  (1
st, 2007)8 
Gabon 
(2nd, 2007)18 
Pakistan (3
rd, 2008)8 
Ghana (3
rd, 2008)8 
Mexico  
(4th, 2008)8 
& 14 
Jordan 
(1st, 2009)18 
Dominican   Republic (3
rd, 2009) 8 
EU-27 (10th, 
2011)12 & 6bis 
China (4th, 
2012)12 & 6 
 
 
  
 
1 Subsidy programme envisaged. 
2 Counting multiple occurrences as one, and also the EU-27 as one. 
3 Notably educational, scientific and technological services. 
4 In the context of a special economic zone or free zone regime. Service suppliers from a range of sectors 
may qualify for benefits under a free zone regime, pr ovided they export services to natural and legal 
persons domiciled abroad, or provide services to in dustrial companies, which are beneficiaries of the 
free zone regime. Examples of services sector s may be, depending on the Member involved: 
distribution/trading, logistics, ware housing, packaging, storage, inspec tion, certification, etc. Suppliers 
of certain services sectors may be explicitly excluded  (for example, financial or  professional services). 
5 Unspecified "public services" in the electricity and water sectors. 6 Universal service funding mechanism. 6bis Unspecified universal service funding mechanism. 7 In particular logistics and distribution services. 
8 Incentives given to micro and/or small and medium sized enterprises (MSMEs and/or SMEs). 9 Intermodal transport and logistics. 10 Public services su ch as electricity. 
11 Urban transport services. 12 Universal postal services. In the case of Switzerland: subsidy covers only the delivery of newspapers 
with subscription. 
13 Offshore (or so-called "int ernational") institutions. S/WPGR/W/25/Add.6 
 
- 12 - 
 
  14 Notably industry supporting services  such as, for example, industrial process services (services for the 
processing, transformation or repair of good s imported temporarily)  and export services. 
15 Subsidies provided for water and energy. 16 Grants for export promotion and marketing in overseas markets. 
17 Pipeline transportation; distribution services  for water, gas, and petroleum derivatives. 
18 Postal services/dependence on government subsidies of the national post company. 19 Funding of promotional activity only. 20 Banking. 21 Support limited to specific remote , disadvantaged or rural areas, usually (but not always) provided in 
the framework of regional development funds. 
22 Business Process Outsourcing and Offshoring (BPO and O). 
23 State aid for postal services. 24 Notably incentives for ship-repair units. 25 Airports. 26 Securities investment and fund development. 
Source: WTO Secretariat. 
 S/WPGR/W/25/Add.6 
 
- 13 - 
 
  ANNEX 1 
LIST OF TRADE POLICY REVIEW (TPR) SECRETARIAT REPORTS REVIEWED IN THIS NOTE  
(45 IN TOTAL) 
2007  
180 Costa Rica (3rd review)   
181 Macau, China (3rd review)  
182 India (4th review) 249 India (5th review, 20 October 2011) 
183 Central African Republic  
184 Indonesia (5th review)  
185 Bahrain (2nd review)  
186 Panama (1st review)  
187 Cameroon (3rd review)  
188 Gabon (2nd review)  
189 Peru (3rd review)  
190 OECS (2nd review)  
191 Thailand (5th review)  
  
2008  
192 Turkey (4th review) 259 Turkey (5th review, 7 March 2012)  
193 Pakistan (3rd review)  
194 Ghana (3rd review)  
195 Mexico (4th review)  
196 Brunei Darussalam (2nd review)  
197 Madagascar (2nd review)  
198 Mauritius (3rd review)  
199 China (2nd review) 264 China (4th review, 20 July 2012)  
200 United States (9th review) 235 United States (10th review, 29 October 2010)  
201 Oman (1st review)  
202 Singapore (5th review) 267 Singapore (6th review, 18 October 2012)  
203 Barbados  
204 Republic of Korea (5th review) 268 Republic of Korea (6th review)  
205 Norway (5th review) 269 Norway (6th review, 13 November 2012)  
206 Jordan  
207 Dominican Republic (3rd review)  
208 Switzerland and Liechtenstein  
(5th+3rd review)  
209 Mozambique (2nd review)  
  
2009  
210 Guatemala (2nd review)  
211 Japan (9th review) 243 Japan (10th review, 2 May 2011)  
212 Brazil (5th review)  
213 Fiji (2nd review)  
214  European Communities (9th review) 248 European Union (10th review, 1 August 2011)  
215 Solomon Islands (2nd review)  
216 New Zealand (4th review)  
217 Morocco (4th review)  
218 Guyana (2nd review)  
219 Zambia (3rd review)  
220 Chile (4th review)  
221 Maldives (2nd review)  
222 SACU (3rd review)  
223 Niger and Senegal (2nd + 3rd review)  
224 Georgia (1st review)  S/WPGR/W/25/Add.6 
 
- 14 - 
 
  ANNEX 2 
CONTENT OF INDIVIDUAL TRADE POLICY REVIEWS 
1. The content of this Annex is taken directly, with some minor editing (notably the highlighting 
of specific services sectors and/or subsidy measures involved), from individual TPR reports 
published since the last update of the Note in March 2007. This Annex analyses the TPR reports 
contained in documents WT/TPR/S/180 to 224, replaced by the latest available reports for those nine Members that have been reviewed twice during the period from April 2007 to 
November 2012, namely: the United States (WT/TPR/S/235, 10
th review), Japan (WT/TPR/S/243, 
10th review), the European Union (WT/TPR/S/248, 10th review), India (WT/TPR/S/235, 5th review), 
Turkey (WT/TPR/S/259, 5th review), China (WT/TPR/S/264, 4th review), Singapore 
(WT/TPR/S/267, 6th review), the Republic of Korea (WT/TPR/S/268, 6th review) and Norway 
(WT/TPR/S/235, 6th review). The list of TPR reports can be found in Annex 1. 
2. References hereafter deal with subsidy measures and programmes, past or present, usually 
for individual services sectors. Also included is information on generally-available cross-sectoral 
subsidies, provided the latter can also be grante d to certain services sectors or sub-sectors. 
Examples of such generally available subsidies are those awarded in the context of investment 
promotion schemes, regional development funds (to support remote/disadvantaged regions), 
research and development programmes, or special/free economic zones. 
3. Universal service obligations and/or funding mechanisms, typically occurring in sectors such 
as telecommunications, postal or transport services, have been included in this Note only if, according to the information available, they seemed to entail some kind of financial contribution by 
the state.
1 H o w e v e r ,  t h i s  d o e s  n o t  i m p l y  per se  that a subsidy is necessarily involved, as it 
depends whether a financial contribution compensates, or overcompensates, for the additional expenditures entailed by the provision of the universal service.
2 Unfortunately, the information 
contained in TPR reports is usually not precise enough to allow an accurate determination in that 
respect. Tax and other incentives or benefits enjoyed by offshore companies have also been 
included. Finally, company-internal cross-subsidization between monopoly and market-oriented 
activities in sectors such as transport, telecommunications and utilities (water, energy) has not 
been included. 
1  COSTA RICA - WT/TPR/S/180/REV.1 (3RD REVIEW, 2 AUGUST 2007) P. ix, para. 15 
Costa Rica maintains numerous incentive schemes in addition to exports subsidies, with fiscal 
incentives and tax exemptions granted under around 200 different laws. At end-2006, the Ministry of Finance was working on a draft law on transpar ency and rationalization of incentive regimes. 
P. 16, para. 21 
Most-favoured-nation treatment is guaranteed to fo reign investors under the provisions of bilateral 
investment treaties, free trade agreements and the GATS. Foreign investors are eligible for the 
same incentives  as those granted to Costa Rican enterprises (see Chapter III). 
                                               
1 When the universal service fund is not fi nanced by contribution s from the operators. 
2 It is to be noted that, with respect to telecommunications, currently 90 Members have undertaken 
Reference Paper obligations in their schedules that contain disciplines on the universal service measures. Paragraph 3 of the Reference Paper stipulates that: "Any Member has the right to define the kind of universal 
service obligation it wishes to maintain. Such oblig ations will not be regarded as anti-competitive per se , 
provided they are administered in a transparent, non- discriminatory and competitively neutral manner and are 
not more burdensome than necessa ry for the kind of universal se rvice defined by the Member." 
 
 S/WPGR/W/25/Add.6 
 
- 15 - 
 
  Pp. 53-54, paras. 141, 145 and Table III.8  
6. Subsidies and other export-related tax benefits 
(b) Free Zone Regime Free zones are the most important export promotion instruments in Costa Rica. The principal legal 
provisions are contained in the Law on the Free Zone Regime No. 7210 of 23 November 1990, 
amendments thereto, and its implementing regulations.
3 The latter are contained in Executive 
Decree No. 29606-H-COMEX of 18 June 2001 and amen dments thereto. Other relevant provisions 
on free zones can be found in the General Customs Law No. 7557 of 20 October 1995, Section I, 
Chapter V, and amendments thereto4; the implementing regulations for the General Customs Law, 
Chapter X; and Executive Decree No. 25270-H of 28 June 1996 and amendments thereto.5 […]. 
Incentives under the Free Zone Regime include: (i) exemption from all taxes and consular fees on 
imports of raw materials, spare parts, packing materials and other products, machinery, 
equipment, replacement parts, fuel and oil; (ii) exemption from all tax relating to the export or 
re-export of products; (iii) exemption from paymen t of tax on capital and net assets and payment 
of the land tax; (iv) exemption from sales and consumption tax on purchases of goods and 
services; (v) exemption from all taxes on profits;  (vi) exemption from any municipal or business 
tax. Companies situated in relatively less-developed areas, which came under the Free Zone 
Regime prior to 8 October 2003, also have the right to a credit of 10% of the amount paid as 
salaries during the year immediately preceding; this percentage falls by two percentage points per annum until the benefit expires in the fifth year, i.e. in 2008. Export processing companies which, on completion of four years of operations, reinvest in Costa Rica may be given an additional 
exemption from payment of income tax for a percentage corresponding to the ratio of the 
reinvestment to the original investment. 
Table III.8 
Free Zone Regime incentives 
Type of incentive Feat ures and time-limits 
Exemption from taxes on capital and net 
assets, the land taxa and the property 
transfer tax Valid for 10 years 
Exemption from all profits tax and any 
other tax for which the taxable base is determined according to gross or net earnings, dividends paid to shareholders or revenue or sales For companies based in "relatively more developed areas", the 
exemption is 100% for eight years and 50% for the following four years. For companies based in "relatively less-developed areas", the exemption is 100% for up to12 years and 50% for the following six years. Export-processing companies which reinvest in Costa Rica after 
completion of four years of operation under the Regime are 
eligible for a further exemption of 75% for up to four years 
depending on the amount reinvested. 
Exemption from all municipal or business taxes Ten years 
a Law No. 7509 on property tax of May 1995 abolished exemption from the land tax. 
                                               
3 The main amendments to Law No. 7210 are: Law No. 8262 of 2 May 2002 (amending Article 23 of Law 
No. 7210); Law No. 7830 of 22 September 1998; Law No. 4924 of 17 September 1997; Law No. 7638 of 30 October 1996; Law No. 7535 of 1 August 1995; and Law No. 7467 of 20 December 1994. 
4 The amendments to the General Customs Law No. 7557 of 20 October 1995 are: Law No. 7900 of 
3 August 1999; Law No. 8373 of 4 August 2003; and Law No. 8419 of 28 June 2004. 
5 Executive Decree No. 25295 of 17 June 1996, Executive Decree No. 26285 of 18 August 1997, 
Executive Decree No. 26961 of 30 March 1998, Decree No. 27717 of 23 February 1999, Executive Decree 
No. 28242 of 30 September 1999, Executive Decree No. 28976 of 27 September 2000, Executive Decree No. 31667-H of 5 March 2004, and Executive Decree No. 32098 of 23 September 2004. S/WPGR/W/25/Add.6 
 
- 16 - 
 
  Pp. 62-64, paras. 186-188 and Table III.11 
3. Incentives 
Costa Rica grants incentives in favour of numerous economic sectors, usually through tax 
incentives or financing programmes. In 2005, over 200 laws gave tax exemptions.6 At the end of 
2006, the Ministry of Finance was working on a draf t law on transparency and rationalization of the 
exemption regimes with the intention of reducing the number of exemptions allowed. 
(a) Tax incentives 
A large number of laws allow tax exemptions. The Judiciary has estimated that these exemptions 
foster greater socio-economic equality.7 […]. With regard to profits tax, in 2005 the Government 
relinquished C 95,500 million in taxes (US$199.9 million) from free zones, cooperatives and mutual assistance organizations (C 80,800 million, C 5,900 million and C 8,800 million 
respectively). There has been no study to qu antify the overall economic impact of these 
exemptions, even though at the end of 2006 a study on the impact of free zones was being 
prepared. 
Tax exemptions are governed by the Law Regula ting Tax Exemptions, Waivers and Exceptions 
(Law No. 7293 of 31 March 1992 and amendments th ereto). This Law refers specifically to the 
exemptions granted to domestic industry and fo r imports, listing the benefits granted under 
various laws and for particular products (Table III.11). […]. 
Table III.11 
Some tax incentives included in Law No. 7293 
Product Benefit Operation 
benefiting 
[…]   
Public events ( sports events, theatre and 
cinema,  when the latter are showing films for 
children) 
Advertising services  on radio stations and 
rural newspapers 
[…] Exemption from the General Sales 
Tax pursuant to Law No. 6826 of 8 November 1982 and amendments thereto (Law on the General Sales Tax) Import and local 
sales 
Source:  WTO Secretariat, on the basis of Law No. 7293 of 31 March 1992 (Law Regulating Tax 
Exemptions, Waivers and Exceptions). 
Pp. 64-65, para. 189 and Table III.12 
Table III.12 gives details concerning the tax incentives to promote production and investment in 
addition to those granted under Law No. 7293. […]. 
                                               
6 Comptroller-General of the Republic (2005a). 
7 Idem (2002). S/WPGR/W/25/Add.6 
 
- 17 - 
 
  Table III.12 
Other tax incentives 
[…] 
Beneficiaries: Companies engaged in tourism  activities. 
Benefits: Vary depending on the activity: accommodation, air transport, water transport,  incoming 
travel agencies  and car rental  firms. Includes exemption from all taxes and charges applicable to the 
import or purchase in Costa Rica (with the exception of  the sales tax) of articles essential for the operation 
and establishment of hotel services; spare parts for the operation of ships; articles for construction, 
extension or modification of quays or other ports fo r tourists. Exemption from taxes and charges, with the 
exception of customs duty, for the import of public  transport vehicles with a minimum capacity of 
15 passengers and the import or purchase of vessels in Costa Rica. Supply of fuel at competitive prices for 
the air transport of passengers.  Exemption of 50% on the total amount obtained by applying the taxes 
in force on the import of motor vehicles solely intended for rental to tourists. 
Legal framework: Law No. 6990 of 15 July 1985 (Law on Incentives for Tourism Development), Decree 
No. 24836 of 5 December 1995, and Decree No. 25148 of 20 March 1996 (regulating car rental for Costa Rican and foreign tourists).  
Beneficiaries: Buyers of new vehicles  for the remunerated transport of persons by  taxi. 
Benefits: Exemption of 60% on all taxes of any kind paid in order to import or upon import. 
Legal framework: Law No. 7969 of 22 December 1999.  
[…] 
Source: WTO Secretariat. 
Pp. 66, para. 192 
(a) Financing programmes and other incentives 
The tourism  sector is given non-tax incentives which include access to promotion and technical 
advice programmes and the promotion programmes of the Costa Rican Tourism Institute ( Instituto 
Costarricense de Turismo  – ICT).8 […]. 
P. 92, para. 102 
(v) Financial services 
The predominance of State-owned banks results fr om regulatory and fiscal asymmetries, including 
a government guarantee on all their liabilities  (there is no deposit insurance for private 
banks). In addition, private banks are required to ho ld at least 17% of their short-term deposits in 
State banks at below-market interest rates (see below)9 to be able to receive deposits from the 
public; and there is an 8% tax exemption on retu rns at maturity for holders of fixed-term dollar 
deposit certificates issued by State banks. On the other hand, the authorities indicated that the 
State banks, for their part, are subject to costly  and cumbersome public procurement procedures. 
P. 92, para. 103 
A regulatory framework that does not provide for the supervision of banks based abroad, together 
with a number of operational facilities  and the  possibility of avoiding tax payments on certain 
operations performed abroad,  have continued to provide incentives  for financial activities 
conducted through offshore banks  – entities legally established abroad but owned by Costa Rican 
financial groups. Offshore banks conduct most of their deposit-taking and lending activities with Costa Rican residents. […]. 
                                               
8 Decree No. 25226 of 15 March 1996 (Regulation of Tourism Enterprises and Activities). 
9 IMF (2004). S/WPGR/W/25/Add.6 
 
- 18 - 
 
  2  MACAO, CHINA - WT/TPR/S/181/REV.1 (3RD REVIEW, 8 JUNE 2007) 
P. 46, paras. 64-66 
(4) M EASURES AFFECTING PRODUCTION AND TRADE 
(ii) Non-tax incentives and other forms of assistance 
(a) Non-tax incentives 
The Government continues to provide a number of incentives, other than tax measures, mainly in 
the form of support for investment pr ojects and interest rate subsidies. 
Under Decree-Law No. 49/85/M, investment in Macao, China is encouraged through repayable or 
non-repayable subsidies for the following activities: manufacturing of new products that involve high economic risk; research and development pr ojects that further Macao, China's industrial 
development; and the installation of anti-pollution  equipment and its operation.  […]. 
According to the authorities, the estimated valu e of the subsidies for 2001-05 was P 30.2 million. 
Under Decree-Law No. 23/98/M, investors may be nefit from government-funded interest rate 
subsidies ranging from 4% to 6%
10, on private bank pataca loans for buying or leasing new 
equipment or the construction or leasing of industrial buildings.11 The entitlement period ranges 
from one to four years. […]. The specified industries are: fisheries; manufacturing; wholesaling 
and agency businesses  except for motor vehicles and heavy motorcycles; cargo storage; 
warehousing; forwarding agencies and lo gistics-related businesses; communications 
and providers of services to enterprises.  Interest rebates in 2004 were granted mainly to 
enterprises engaged in manufacturing and fisheries activities, and the loans were used primarily to purchase or rent new facilities. 
P. 60, para. 14 
(3) Services 
The Government has […] introduced an offshore  tax scheme aimed at overseas companies that 
do not have their market and customer base in the territory. It offers competitive tax 
incentives, including exemption from  income taxes and stamp duties,  three years' 
exemption from salaries taxes for managers and technicians, and the use of non-Macao SAR 
currency for business activities.  
3  CENTRAL AFRICAN REPUBLIC - WT/TPR/S/183/REV.1 (1ST REVIEW, 30 JULY 2007) 
P. 44, para. 63 
(iii) Incentives 
[…] Public services  such as electricity  (Chapter IV(3)(iii)), water  (Chapter IV(3)(iv)), 
transport  (Chapter IV(5)(i)) and fixed telecommunications  (Chapter IV(5)(iii)) also benefit 
from government support. 
                                               
10 The interest rate subsidies offered are 4% to 5% for the construction, installation or lease of industrial 
facilities; 6% for investments made to improve working co nditions or safety standard s; 4% for the purchase or 
lease of new cargo vehicles, and 5% to 6% for the purchase and renovation of new facilities. Macao 
Yearbook 2005 , p. 203. 
11 The subsidy takes the form of a reduction in the bank's commercial rate. For example, a commercial 
rate of 10% might be reduced to 6%, the 4%  reduction being funded  by the Government.  From 2001 to 2005, 
the estimated value of the subsidies was P 30.2 million for total bank loans of more than P 600 million. S/WPGR/W/25/Add.6 
 
- 19 - 
 
  P. 65, para. 79 
(iii)  Telecommunications and postal services12 
The obligation to provide universal  fixed telephony services  is in principle the responsibility of 
SOCATEL, but how they are to be financed is not specified. Such obligations are not yet applicable 
to mobile telephony. 
4  INDONESIA - WT/TPR/S/184/REV.1 (1ST REVIEW, 6 NOVEMBER 2007) 
P. 57, para. 82 
(iii)  Export assistance 
(a) Free-trade export zones and similar schemes 
Indonesia has seven bonded zones and 40 industrial estates.13 Goods may be imported into 
a bonded zone and then re-exported without payment of tariffs, unless the goods are sent into the 
regular customs territory of Indonesia. Bonded zo nes are intended for the processing of goods and 
materials, including their design, engineering, sorting, init ial inspection, and packaging. 
They allow businesses to defer payment of import duties while storing, exhibiting, selling, packing 
and re-packing or processing goods originating ou tside Indonesia. Location in one of Indonesia's 
industrial estates offers a simplified application process for building and related permits and a way around complex rules on land use. […]. 
Pp. 84-85, para. 52 and p. 87, para. 58 
(i) Financial services 
Indonesia's banking sector collapsed in the wake of the 1997-98 financial and economic crises as 
a result of its huge accumulation of bad debt. Si nce then more than 50% of (2000) GDP has been 
spent to recapitalize  the banks and put them on a solid footing. […]. 
[Bank Indonesia (BI)] has moved towards full compliance with the Basel Core Principles for 
Banking Supervision […]. Regulation and supervision of the sector has been strengthened 
considerably and the blanket guarantee on bank deposits,  which has existed since the crisis, is 
being gradually phased out since a deposit insurance scheme was put in place in 2004. […]. 
P. 95, para. 79 
(ii) Transportation 
(a) Air 
[…] Domestic airport tariffs are kept low and do not allow cost recovery for the services provided. 
Consequently, only major airports with significant international traffic can break even. […]. 
P. 96, para. 82 
(iii)  Tourism 
The Government is heavily involved  in the tourism industry. It owns the main domestic and 
international airline as well as another large airline, Merpati. It is also involved in travel agencies 
and local hotel groups. The Government is involved in promoting  tourism under several themes in 
                                               
12 French Embassy in Cameroon, Economic Mission in Yaoundé (2006b); Ministry of Communications, 
Post and Telecommunications (undated). 
13 Industrial estates are widespread, though 32 are on the main Java island. Locations include 
Bintan island, Medan (North Sumatr a), Banten (Java), Bekasi, Bogor an d Tangerang (West Java), Semarang 
(Central Java) and Makassar (South Sulawesi). There is  also a transnational bonded zone – called Sijori – 
comprising Singapore, Johor (Malaysia) and Riau (Sumatra) in Indonesia. S/WPGR/W/25/Add.6 
 
- 20 - 
 
  parallel with the effort to improve Indonesia as th e one of the most varied destinations. As stated 
in the National Tourism Strategic Plan, the vision of stakeholders in Indonesian tourism development is to achieve a tourism capability that strengthens national identity and unity, increases the nation's well-being and promotes friendship among nations.
14 The promotion of 
tourism is complex, involving a number of bodies and stakeholders, although the Indonesian 
Culture and Tourism agency has overall control. 
5  BAHRAIN - WT/TPR/S/185/REV.1 (2ND REVIEW, 23 OCTOBER 2007) 
P. 72, paras. 122-123 
(iv) Transport 
(a) Maritime transport 
According to the authorities, the only conditions  associated with flying the Bahraini flag are 
registration and certification. Any ship may acquire Bahraini nationality if it is registered at any 
port in the Kingdom of Bahrain, and if the owner or  owners are Bahraini nationals; in the case of 
a corporation, it must have Bahraini nationality. The Minister of Finance may, with the consent of 
the Council of Ministers, award Bahraini nationality to ships owned by foreigners.15 According to 
the authorities, there are no incentives  for flying the Bahraini flag, and cabotage is not 
regulated. […]. 
No special government funding  is available to the maritime subsector although the Minister of 
Finance holds a general reserve for use in the case of an emergency. […]. 
P. 72, paras. 128 and 132  
(b) Air transport 
 
The following incentives  are granted to promote Bahrain's airport as a regional hub: (i) landing 
and parking fees are free of charge for two years for new airline entrants; (ii) exemption of air 
navigation fees for two years; and (iii) 50% of charges are paid by air cargo (on an unlimited 
basis). 
According to the authorities, Bahrain adopts a multiple designation approach in its bilateral 
negotiations; this allows more than one carrier from a state to operate the permitted services. 
Benefits, including special rebate s, discounts, and incentives for landing, take-off, and 
parking charges, are provided to airlines on a case-by-case basis. Some classes of aircraft are exempt by law from payment of these charges; th ese include aircraft of the Kingdom of Bahrain, 
of the United Nations and its agencies, the League of Arab States and its agencies, aircraft used 
without remuneration, and any other aircra ft that may be exempted by the CAA.
16 
6  PANAMA - WT/TPR/S/186/REV.1 (1ST REVIEW, 3 DECEMBER 2007) 
P. ix, paras. 19-20 
The Colon Free Zone (ZLC) grants similar benefits to those provided under the [Export Processing 
Zones, ZPE] regime. Although the ZLC aims to encourage both commercial and industrial 
activities, in practice only service  and re-export operations take place in it. The ZLC functions as 
a global logistical and distribution  centre, and accounts for just over three quarters of Panama's 
total merchandise exports. 
                                               
14 The plan recognizes that tourism is also a source  of increasing stress on fragile ecosystems and 
culture environment because it concentrates on vulnerable  natural and cultural sites. For the last few years, 
the development of cultural tourism in Indonesia has focused away from the mass tourism approach to the 
special interest approach, which generally involves "three pillars of sustainability": ecologically and 
environmentally friendly, socio-culturally  friendly, and economically efficient. 
15 WTO (2000). 
16 Ministry of Transportation, Civil Aviation Affairs, Civil Aviation Law, (Article 119). S/WPGR/W/25/Add.6 
 
- 21 - 
 
  Panama maintains numerous incentive schemes, in addition to export subsidies, that target micro 
and small businesses, research and development  projects, as well as specific sectors such as 
agriculture, forestry, mining, and tourism.  By and large, such schemes seek to assist the 
production of goods by granting tariff or other ta x concessions. There are no estimates of the net 
benefits to the economy of these incentives. A reassessment of the nature and number of such 
schemes with a view to their possible rationalization could contribute to greater transparency and efficiency in their use; it might also permit the redeployment of fiscal resources towards areas 
such as education and infrastructure. 
P. 64, paras. 216-218 
(b) Other fiscal and financial incentives 
 
Law No. 33 of 25 July 2000 contains support measures and incentives for promoting the 
strengthening, consolidation and self-sustainability of micro, small- and medium-sized enterprises (MSMEs). The Micro, Small and Medium-Sized Enterprise Authority (AMPYME), established by Law 
No. 8 of 29 May 2000, is the authority responsible for implementing Law No. 33 of 2000 […].
17 
The Authority provides support for company fo rmation and the implementation of training 
programmes; it also acts as an intermediary with the financial system to facilitate access to 
credit.18 However, the Law authorizes the State to establish the financial, customs and fiscal 
support programmes it considers appropriate for facilitating and promoting MSME activities. The authorities have acknowledged that in practice this has not happened. 
Law No. 33 of 2000 established a Guarantee Fund, administered by the Authority, for 
guaranteeing loans  and for training and technical assistance  for micro and small businesses, 
with annual funding of at least B 5 million deposited in the National Bank of Panama. 
P. 65, paras. 221-222 
[…] Law No. 8 of 14 June 1994 establishes tax incentives for tourism  activities, mainly in order to 
promote foreign investment in this sector. The incentives granted include total exemption from: income tax for a period of 15 years; real estate tax for a period of 20 years; import duties on 
materials and furniture needed by the investment company to meet its building and equipment 
requirements, provided the goods are not produced in sufficient quality and quantity in Panama; taxes and fees for the use of wharves and airports built by the investment company, for a period of 20 years; and tax on the income that creditors can generate in tourism investment operations. 
[…] Law No. 7 of 10 July 1990 includes incentives for enterprises engaged in leasing  movable 
property. The lease of property situated outside Panamanian territory is free of taxes, and the 
profits from Panamanian vessel chartering transactions are totally exempt from tax. 
Pp. 65-66, para. 224 
The National Strategic Plan for the Development of Science, Technology and Innovation 
2006-2010, implemented by the Government through Cabinet Resolution No. 104 of 
21 December 2005, is coordinated by the Secretaría National de Ciencia, Tecnología e Innovación  
(National Science, Technology and Innovation Secretariat – SENACYT). This Plan structures SENACYT's activities, the aim of which is to su pport the development of science, technology and 
innovation for the purpose of modernizing the publ ic, private and academic sectors and increasing 
their productivity. The Plan recognizes five core sectors for innovation and technological 
modernization in the private sector: intermodal transport and logistics, information 
technology, biosciences, tourism,  and agro-industry.
19 The main action taken within the 
context of the Plan includes: establishing funds, open to competitive bidding, for promoting 
                                               
17 Law No. 33 of 2000 covers MSMEs active in the goods and services  sector. 
18 For example, in 2001, AMPYME signed such  an agreement (Agreement No. 002-01) with 
MULTICREDIT BANK, a bank which established a financing programme especially for MSMEs. 
19 Cabinet Resolution No. 11 of 2 February 2007 establishing and adopting the National Strategic Plan 
for the Development of Science, Technology and Innovation 2006-2010. Available for consultation at: 
http://www.senacyt.gob.pa/media/documentosDireccionGestion/Plan%20Estrategico%20actualizacion%20200
7.pdf S/WPGR/W/25/Add.6 
 
- 22 - 
 
  research, development and innovation; the implementation of innovation and technological 
modernization projects in priority areas; the strengthening of conglomerates; and innovation capacity-building at enterprise level. 
P. 78, para. 9 
Panama's ship register is the largest in the world. Registration gives tax benefits  such as 
exemption from profits tax. 
P. 100, para. 133 
(b) Maritime transport services 
 Registration [in the Panama register of ships] confers fiscal benefits  such as exemption from tax 
on profits earned from the activity carried out.  Law No. 25 of 3 June 2002 allows an additional 
rebate of up to 25% on the annual tax per tonne and 50% on the annual consular fee for a period 
of four years for registered entities that operate at least four newly-built vessels with a minimum of over 50,000 GRT up to 100,000 GRT; for grou ps of four ships exceeding 100,000 GRT, the 
additional annual tax rebate is up to 35%. In order to obtain these advantages, the owners must 
undertake to keep the vessels under Panamanian registration for a period of four years. Law No. 36 of 6 July 1995 also allows reductions for the registration of groups of ships (at least three) 
or for large vessels, which may be 20 or 50% depending on the tonnage. 
7  CAMEROON - WT/TPR/S/187/REV.1 (3
RD REVIEW, 5 DECEMBER 2007) 
P. 23, paras. 47 and 49  
[It is unclear whether services sectors are covered, or not.] 
The [Investment] Charter also provides for three types of incentive:  promotion (including 
activities such as organizing events and missions, management of a range of opportunities, and marketing the country's potential); facilitation (consisting, inter alia , of assistance in completing 
formalities); and support  (consisting in the main of technical or financial support for forming or 
taking over companies and developing exports). The fiscal incentives  include lower customs 
duties, zero VAT on exports and refund of VAT collected on investments and the operating costs of 
exporting companies; as well as special incentives for research and development, vocational 
training, and environmental protection. The Char ter also envisages the creation of economic 
zones. 
Under the 1990 Code, companies can benefit from the following: the basic regime (for 
eight years); the SME regime (for ten years); the strategic enterprises regime (for 17 years); 
or the Free Zone Regime (Chapter III(3)(vi)). Under the basic regime, the benefits  include fiscal 
incentives  such as exemption from the registration tax on capital-increase instruments and leases 
for property to be used for professional purpos es, and from transfer tax on the purchase of 
property, land or buildings. Companies can also receive a 50% reduction in company tax (IS), the tax on industrial and commercial profits (BIC), and the proportional tax on income from movable 
capital (TPRCM). The SME regime and the strategic enterprises regime provide the same benefits , 
but for longer periods. In order to take advantag e of the SME regime, at least 35% of the capital 
must be held by Cameroonian nationals.
20 
P. 57, para. 118 
(v) Incentives 
Pursuant to the Investment Charter adopted in 200221, technical or financial support  may be 
given to promote investment, with the aim of promoting sustainable growth and creating 
employment. Support is given notably for setting up and taking over companies, and for 
developing exports. […]. 
                                               
20 For further details on these incentives, see WTO (2001). 
21 Law No. 2002/2004 of 19 April 2002, on the Investment Charter in the Republic of Cameroon. S/WPGR/W/25/Add.6 
 
- 23 - 
 
  P. 82, para. 61 
(i) Petroleum and gas products 
(c) Gas […] During the first 10 years of exploitation, persons undertaking gas transportation, 
distribution, storage and processing  activities are exempted from customs duties, taxes and 
fees on imports of the equipment to be allocated and used in such activities. They also benefit 
from the possibility of accelerated depreciation. […]. 
P. 97, para. 118 
(iii) Tourism 
The Investment Charter allows general tax incentiv es to be agreed upon to attract investment 
(both national and foreign). According to the authorities, specific measures for tourism have not 
yet been adopted. […]. 
8  GABON - WT/TPR/S/188/REV.1 (2ND REVIEW, 5 DECEMBER 2007) 
P. 42, para. 46 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(i) Incentives 
[…] Public services such as electricity  (Chapter IV(3)(iii)), water (Chapter IV(3)(iv)), urban 
transport services  (Chapter IV(5)(i)) and postal services  (Chapter IV(5)(iii)) also receive State 
support. The privatization programme has also written off the liabilities of the companies concerned (section (iv)). 
P. 51, para. 4 
Gabon has an under-exploited potential for the provision of services. It is hoped to develop 
ecotourism in order to profit from the extraordinary wealth of fauna and flora to be found in Gabon's forests. In 2002, the State established a network of national parks and protected areas, 
and Gabon is, after Costa Rica, the country that has protected the largest percentage of its 
territory. Hotel infrastructure development  is subsidized , but the sites are poorly served by 
the transport services and there are few good roads. […]. 
P. 68, para. 67 and Table IV.7 
[…] Under the National Investment Charter (Cha pter II(4)), the Government has introduced fiscal 
and customs measures to encourage large-scale hotel investments22, in excess of 
CFAF 1.8 billion23, as well as smaller investments (Table IV.7).24 In return, tourism enterprises and 
those participating exclusively in an approved project undertake to give priority to recruiting 
Gabonese workers and to comply with environmental protection standards. 
                                               
22 Ordinance No. 02/2000 of 12 February 2000. In particular, exemption from corporation tax during the 
implementation of the project and the first eight years of operation; exemption from corporation tax on half 
the taxable profits for the next eight years; exemptio n from property tax on new buildings for ten years; 
exemption from business license fees for the first five years of operatio n; a ten-year exemption from customs 
duties and import taxes on new equi pment, tools, capital goods, and means of transport used for tourism 
purposes; and exemption from VAT on capital goods and personalized su pplies for approved  tourist hotel 
enterprises (Article 166, General Code of Direct and Indirect Taxes (January 2007 edition)). 
23 Article 12, Rectified Finance Law 2002. 
24 Income tax credit corresponding to 5% of the amou nt, excluding tax, of the investment for a period 
of five years (Article 10, Finance Law 2003). S/WPGR/W/25/Add.6 
 
- 24 - 
 
  Table IV.7 
Fiscal and customs incentives for investment in tourism, June 2007 
Conditions of approval: 
The construction and/or equipping of tourist accommodation, facilities on tourist sites, tourism promotion  
and transport facilities, facilities for the operat ion of pleasure craft, and extensions thereto. 
Fiscal and customs concessions for investments in excess of CFAF 1.8 billion: 
Exemption from corporation tax (IS) or personal inco me tax during the period of construction of the  
project and the eight years of operation following comple tion of construction of the approved project, and  
a 50% reduction on the corresponding taxable profit s during the eight years following the end of the  
exemption period; 
Carry-over of losses recorded during  the exemption period to set agai nst profits made during the first  
three years of operation of the project; 
Exemption from withholding tax for payments made during the period of construction of the project and  
the first ten years of operation; Exemption from the payment of business lice nce fees for a period of five years; 
Ten-year exemption from property tax for new constr uction, and progressive application of the tax over
 
four years (20, 40, 60, and 80%); 
Exemption from customs duties and taxes on (new) plant and equipment for a period of ten years; 
Exemption from VAT on capital goods and personalized  supplies for approved tourist hotel enterprises. 
Fiscal and customs concessions for investments of less than CFAF 1.8 billion: 
Income tax credit corresponding to 5% of the amount  of the investment, excluding tax, for five years.  
Source: Ordinance No. 2/2000 of 12 October 2000, General Code of Direct and Indirect Taxes 
(January 2007 edition). 
9  PERU - WT/TPR/S/189/REV.1 (3RD REVIEW, 17 DECEMBER 2007) 
P. ix, para. 34 
[…] In 2005, Peru adopted a law to grant incentives  for the development of the national 
merchant marine; however, this is aw aiting the adoption of regulations. 
P. 54, para. 183 and Table III.6 
(b) Free zones Peru offers tax benefits through the Export, Processing, Industry, Marketing and Service  Centres 
(CETICOS) of Ilo, Matarani and Paita, and the Tacna Free Zone (ZOFRATACNA) (Table III.6). In 
mid-2005, Peru abolished the export requirements for obtaining benefits under these 
schemes.
25 […]. 
                                               
25 Thirteenth complementary, repealing, and final provision of Law No. 28569, of 5 July 2005. S/WPGR/W/25/Add.6 
 
- 25 - 
 
  Table III.6 
Main elements of CETICOS and ZOFRATACNA, March 2007 
 CETICOSa ZOFRATACNA 
Main 
legislationb Legislative Decree No. 842 (30.08.1996); 
Legislative Decree No. 865 (27.10.1996); Legislative Decree No. 864 (27.10.1996); Law No. 26953 (22.05.1998); Supreme Decree No. 023-96-ITINCI (04.01.1997) Law No. 27688 (28.03.2002); 
Supreme Decree No. 011-2002-MINCETUR (17.12.2002); Supreme Decree No. 002-2006-MINCETUR (11.02.2006); Supreme Decree No. 021-2003-MINCETUR (03.09.2003); Supreme Decree No. 005-2007-MINCETUR (15.04.2007) 
General 
objectivesc To develop the northern and southern zones 
of Peru by promoting private investment in 
infrastructure and productive activity To contribute to sustainable 
socio-economic development of the 
Department of Tacna through investment and technological development 
Main benefits Exemption from tariff duties and other taxes 
levied on imports; Exemption from Income Tax, IGV, Municipal Promotion Tax and ISC until 2012 Exemption from tariff duties and other 
taxes levied on imports until 2022; exemption from Inco me Tax, IGV, 
Municipal Promotion Tax and ISC 
Activities authorized Manufacturing, except for products classified 
in ISIC Rev 2 categories 3114 (apart from the preparation of products based on fish meal), 3115, 3118, 3122, 3530 and 3720 (apart from refined copper piping and accessories of refined copper piping), and those that have 
recorded exports of over US$15 million in 1996 (applicable only to tariff headings listed in Supreme Decree No. 005-97-ITINCI); maquila  and assembly activities; processing, 
repair and packaging of merchandise;  
and storage, distribution, marketing and 
other services related to the aforementioned activities  Manufacturing except for products 
classified in ISIC Rev 2 categories 3114, 3115, 3118, 3122, 3530 and 3720 (apart from agribusiness products from the region); maquila ; 
storage, distribution and other services 
a Only refers to provisions applicable to the CETI COS at Ilo, Matarani and Paita; the CETICOS  at 
Loreto, established by Law No. 26953 of 22 May 1998, was not operating in mid-2007. b Excluding amendatory legislation. c As indicated in the law. 
Source:  WTO Secretariat. 
P. 56, para. 194 
The Law for Investment Promotion in the Amazon Region (Law No. 27037) provides tax benefits  
in the form of reductions or exemptions  from income tax and general sales tax for firms in 
various departments engaging in […] and tourism,  among others. The benefits include a reduction 
of income tax to either 10 or 5%; exemption from that tax and other partial or complete 
exemptions from indirect taxes, as well as from other levies such as the special tax on net assets 
or municipal taxes. S/WPGR/W/25/Add.6 
 
- 26 - 
 
  10  ORGANIZATION OF EASTERN CARIBBEAN STATES (OECS) - WTO MEMBERS26 
10.1  Antigua and Barbuda  WT/TPR/S/190/ATG/Rev.1 (2nd review, 18 April 2008) 
P. 26, para. 123 
The only free zone in operation is the Free Trade and Processing Zone […]. According to the OECD, 
the license fees received from sports book and internet gambling  represent the main source of 
revenues from the free trade zone.27 Nevertheless, the size of these operations has declined 
considerably in recent years. Between 1999 and 2003, the number of licensed casino operators  
fell from 119 (with 3,000 employees) to 28 (with fewer than 500 employees). 
P. 29, para. 135 
The [Antigua and Barbuda Investment Authority (ABIA)] started functioning in May 2007. Its 
mandate is to attract foreign direct investment and build, foster, and support local investment. 
The ABIA gives priority to tourism  development, financial services,  business support 
(call centres, etc.), information/computer technology, health and wellness, education, 
logistics (e.g. transhipment), and […]. The ABIA also aims to create a level playing field for all 
investors, local or foreign, administer standard criteria as laid down in the Investment Authority 
Act for the grant of incentives  and concessions, and respond in a timely manner to applications 
for investment certificates and incentives. […]. 
P. 28, paras. 130-131 
(ii) Incentives and assistance 
The Government offers numerous concessions to investors, particularly if the investment is 
substantial. The main objectives are to promote investment in the country and develop domestic 
capacity in business, and to facilitate the establishment of investment. Decisions on the granting of 
concessions are made by Cabinet, based on criteria laid out in the various incentives laws (see below). 
Current legislation on incentives includes the Aid to Pioneer Industries Act, the Fiscal Incentives 
Act and a number of sector-specific incentives schemes, in particular for tourism , for example the 
Hotel Aid Act (Cap 204) (Chapter IV(3)(vi)). 
P. 39, paras. 195-196 
(b) Offshore fina ncial services 
International banks and insurance  companies, require a licence. They enjoy complete tax 
exemption,  guaranteed by the Government for 50 years from establishment, as well as total 
exemption from exchange control, and are allowed to issue bearer shares. There are 
17 international banks registered in Antigua and Barbuda, and 12 international insurance companies. 
[…] International banks may only conduct transactions in currencies other than those of CARICOM 
members. International banks and insurance comp anies are precluded from any active trade or 
business within Antigua and Barbuda or any other CARICOM member state, […]. 
P. 43, paras. 223-224 
(vi) Tourism 
Antigua and Barbuda offers a variety of tax incentives  to domestic and foreign property 
developers. According to the authorities, no fi gures are available on the revenue forgone as 
                                               
26 OECS Members: Antigua and Barbuda, Dominica, Gr enada, Saint Kitts and Nevis, Saint Lucia and 
Saint Vincent and the Grenadines. 
27 OECD (2006), p. 24. S/WPGR/W/25/Add.6 
 
- 27 - 
 
  a result of the benefits provided. Under the Hotel Aid Act 195228, developers may import building 
materials and equipment duty free , or drawback customs duties already paid, subject to obtaining 
a license from the Cabinet. Unde r Income Tax (Amendment) Act No. 4 of 2003, new hotels and the 
expansion of existing ones after January 2003, are eligible for relief from corporate income tax  
for seven to 25 years, depending on the number of new rooms created.29 
In 2005, to encourage development of accommodation for the Cricket World Cup, tax 
concessions  were granted for building new and renovating existing tourist accommodation. These 
concessions included income tax holidays of up to 25 years depending on the number of rooms; 
relief on stamp duty on transfer of land, property , and non-citizens' landholding license fees, based 
on the number of rooms; a percentage tax credit for financial institutions, based on the size of the investment; a waiver of custom duty  and consumption tax on imports of building materials and 
equipment; and the right to tax-free repatriation of capital, royalties, dividends, and profits.
30 
Incentives may also be granted under project-specific legislation. 
P. 46, paras. 236-237 
(viii)  Other offshore services 
[…] These companies enjoy the same tax exemptions as offshore financial services companies 
(see above), with the exception of an income tax of 3% introduced in 2001, which they must 
pay.31 They must have a registered office and a registered agent in Antigua and Barbuda. 
Information was not available on the total number of non-financial offshore business companies registered in Antigua and Barbuda, nor on the forms of business they are engaged in. 
At May 2007, there were 44 licences issued for the operation of interactive wagering and/or 
gaming  in Antigua and Barbuda, for 25 such companies. […]. 
10.2  Dominica WT/TPR/S/190/DMA/Rev.1 (2
nd review, 18 April 2008) 
P. 10, paras. 40 and 42 
The Government's strategy for the past 20 plus years has been attracting foreign investors by 
offering various incentive schemes;  […]. 
Incentive regimes for foreign investors are governed chiefly by Fiscal Incentives Act, No. 42 of 
1973 (as amended), Hotel Aids Act Cap 85, Vol. 4 of the Revised Laws of Dominica, the Income 
Tax Act, Cap 61, Vol. 1 of the Revised Laws, and Value Added Tax Act No. 7 of 2005 (see Chapter III(3)(ii)). Although the Government places particular emphasis on tourism,  […] and 
information technology,  investment in any other sector  of economic activity is welcome and 
may be eligible for incentives if the proposed investment meets policy and legislative 
requirements. Horizontal incentives for foreign investors are also in place with respect to exemptions from foreign exchange remittance limitations under the Foreign Exchange Control Act. 
P. 18, para. 80 
(c) Tariff and tax concessions 
Two of Dominica's incentives schemes also grant import duty concessions and exemptions  for 
imports of goods to be used in approved industries. Fiscal Incentives Act No. 42 of 1974 
(as amended) provides import duty relief on raw materials and inputs, materials, tools, plant, machinery and building materials, and the Hotel  Aid Act, as amended by Hotel (Amendments) Aid 
Act No. 21 of 1991 provides for the duty-free importation  of building materials and articles of 
hotel equipment for the construction or equipment of hotels. 
                                               
28 Hotel Aid Act 1952 (as amended). Viewed at: http://www.laws.gov.ag/acts/chapters/cap-204.pdf . 
29 Income Tax (Amendment) Act 2003. Viewed at: http://www.laws.gov.ag/acts/2003/a2003-4.pdf . 
Prior to the 2003 amendment to the Income Tax Act, income tax relief granted for the construction and 
development of hotels was granted under the Hotel Aid Act. 
30 The Cricket World Cup Projects (Incentives) Act, 2005. Viewed at: http://www.laws.gov.ag/acts/ 
2005/a2005-20.pdf . 
31 This tax was introduced by The Internatio nal Business Corporation (Amendment) Act, 2001. S/WPGR/W/25/Add.6 
 
- 28 - 
 
  P. 30, para. 137  
(ii) Incentives and assistance 
Under Fiscal Incentives Act No. 42 of 1973 as am ended by Act No. 3 of 1992 and Act No. 3 of 
1994, a tax holiday of up to 15 years  may be granted for the manufacture of approved products 
by approved enterprises […]. Among the Government's favoured sectors are hotels and ancillary 
services,  […], information and communication technology,  and any other sector  that has 
the potential to provide employment. 
P. 48, para. 242 
(v) Tourism 
Under the Hotels  Aid Act (1991) and the Fiscal Incentives Act, the Minister responsible for tourism 
may grant licences to investors constructing hotels (of not less than five bedrooms) to import 
building materials and articles of hotel equipment free of all customs duties.  […] Under the 
Income Tax Act, No.37, 1982, as amended by Act No. 12 of 1997, income tax exemptions  are 
available to property developers for the construc tion and extension of hotels; this tax relief is 
available for a maximum of 20 years. […]. 
Pp. 44-45, paras 218, 220 and 222 
(ii) Offshore financial services 
Offshore banking in Dominica started in the mid-19 90s. Within the Ministry of Finance, the FSU is 
responsible for regulating offshore financial services. The main legislation governing offshore banking is Offshore Banking Act No. 8 of 1996 (a s amended by Act No. 2 of 1997; No. 18 of 1999; 
and No. 16 of 2000). 
Dominica had one offshore bank, down from six in 2000. According to the authorities, these bank 
closures were as a result of the FATF report and subsequent reforms. 
Offshore insurance companies are regulated by [the] Exempt Insurance Act No. 14 of 1997 and 
the Exempt Insurance (Amendment) Act of 2000. There are no licensed offshore insurance 
companies in Dominica. 
P. 50, para. 253 
(vii)  Other offshore services 
The operations of offshore companies, other th an banks and insurance companies, are regulated 
by International Business Company Act No. 10 of 1996. […]. They are granted a 20-year tax holiday from the date of incorporation, and are not subject to the Exchange Control Ordinance. 
There are 11,796 international business companies registered in Dominica. […]. 
10.3  Grenada WT/TPR/S/190/DMA/Rev.1 (2
nd review, 21 April 2008) 
P. 50, para. 244 
(vi) Tourism 
Grenada offers fiscal incentives  to encourage the development or renovation of hotels  of 
ten rooms or more. Under the Hotels Aid Act of 195 4, goods for the construction and equipment of 
hotels, with a minimum of ten rooms, may be imported duty free.  […] The Hotels Aid Act, and the 
duty relief offered under the Act in its current form, pertains only to hotels and is unclear with S/WPGR/W/25/Add.6 
 
- 29 - 
 
  respect to villa-style developments, which are the current trend. This has led to the uneven 
application of tax incentives and a case-by-case approach.32 
10.4  Saint Kitts and Nevis WT/TPR/S/190/KNA/Rev.1 (2nd review, 21 April 2008) 
P. 8, para. 36 
[…] In order to attract foreign investment, the Government offers a range of incentives  to 
potential investors, particularly in the areas of tourism  and hotel accommodation , and […]. 
Fiscal incentives for foreign investment are gr anted under the Fiscal Incentives Act of 1974 and 
also available under different acts for investment in the tourism  sector (Chapter III(3)(ii)). […]. 
P. 15, para. 71 
[…] The Fiscal Incentives Act of 1974 provides  import duty relief  on raw materials and inputs, 
materials, tools, plant, machinery, and building materials. The Hotels Aid Act,  as amended by the 
Hotels Aid (Amendment) Act (1998), provides for duty-free imports of building materials and 
articles of hotel equipment for the construction or equipment of hotels. […]. 
P. 23, paras. 115 and 118 
St. Kitts and Nevis employs incentives schemes  in order to attract investment, encourage new 
employment opportunities, and promote diversific ation of the economy. […]. The incentives 
available are generally holidays on income tax an d profits, and import duty exemptions. […]. 
There are sector-specific incentives for tourism , as included in the Income Tax Act No. 17 of 
1966; and the Hotels Aid  (Amendment) Act (1998); (Chapter IV(3)(vi)). Tax waivers are also 
granted on a case-by-case basis to foreign investors for the construction of infrastructure, with preference given to the construction of hotels, casinos,  and villas. These incentives are decided by 
Cabinet […]. 
10.5  Saint Lucia WT/TPR/S/190/LCA/Rev.1 (2
nd review, 21 April 2008) 
P. 9, para. 38 
The Government has identified information technology,  […], hotel development,  […], and 
financial services  as priorities for expansion and investment. Incentives  to potential investors 
are offered through tax holidays and other tax concessions (see Chapter III(3)(ii)). […]. 
P. 17, para. 70 
The Government used tax and tariff concessions  a s  a n  i n s t r u m e n t  t o  h e l p  p r e p a r e  f o r  t h e  
2007 Cricket World Cup. Various forms of tax relief were granted under laws such as the Cricket 
World Cup (Tourism Accommodation) Incentives Act No. 6 of 2005, and the Cricket World Cup 
(Tourism Accommodation) Incentives (Amendment) Act No. 27 of 2006, among others. 
P. 29, para. 119 
St. Lucia's investment policy has been geared towards encouraging and developing agricultural, 
manufacturing, and services  activities. […]. A large number of incentives have been put in place 
throughout the years to promote these goals, based primarily on exemptions from taxes and 
tariffs. 
P. 30, para. 124 
The Special Development Areas Act No. 2 of 1998 […] offers special incentives to investors 
carrying out or financing development activities in  the less developed areas. Qualifying activities 
include the development of conference centres,  residential complexes, and commercial or 
industrial buildings; the improvement or expansion of tourism -related services; […]. Incentives 
                                               
32 OECD (2006). S/WPGR/W/25/Add.6 
 
- 30 - 
 
  available include exemption from income tax on interest received in respect of a loan to an 
approved developer, and exemptions from th e payment of import duty, stamp duty, and 
consumption tax on inputs for construction or renovation. 
P. 43, para. 177 
(ii) Telecommunications Telecom operators are eligible for fiscal incentives:  under Cabinet Conclusion No. 797 of 2002, 
they are eligible for 100% waiver of import duty and consumption tax on equipment and materials 
for the establishment and construction of new telecommunications networks subject to verification 
of the list of equipment and materials by the Mi nistry of Communications, Works, Transport and 
Public Utilities prior to importation. 
P. 45, paras. 190 and 192 
(b) Offshore fina ncial services 
Up to date information was not available on the number of offshore banks and international 
insurance companies registered in St. Lucia. Offshore financial services are regulated by the 
Ministry of International Financial Services. 
The main legislation governing offshore banking in St. Lucia is the International Banks Act No. 42 
of 1999 (as amended by Act No. 2 of 2003) and the main legislation governing offshore insurance 
companies is the International Insurance Act, No. 38 of 1999 (as amended by Act No. 3 of 2003). 
[…]. Under the International Business Companies Act, international business companies are not subject to exchange controls and may elect to be exempt from income tax or liable for income tax at a rate of 1% on the chargeable income of the company. […]. 
p. 49, para. 214 
(v) Tourism 
Under the Tourism Incentives  Act No. 7 of 1996, corporation tax exemptions for up to 15 years 
may be granted for approved tourism products by the Minister for Tourism and Civil Aviation, with 
the approval of the Cabinet.33 The Minister may also grant investors a permit to import specified 
building materials, articles or equipment free of  customs duty  and consumption tax, or 
drawback on duties already paid.34 
Pp. 50-51, paras. 222-224 
(vii) Other offshore services Offshore companies, otherwise known as international business companies (IBCs) in St. Lucia are 
regulated by International Business Companies Act No. 40 of 1999. 
Types of IBCs located in St. Lucia include holding companies; personal investment companies; 
import/export companies; prof essional service companies;  intellectual property holding 
companies; and, finance companies. No information was available on the number of offshore 
companies operating in St. Lucia. 
As stipulated in the International Business Companies Act, IBCs may not carry on business with 
St. Lucian residents nor own any property in the country. IBCs are, however are allowed to hold 
shares, debt obligations or other securities in companies incorporated in St. Lucia, and St. Lucian residents may hold its shares. IBCs are exempt from taxes  (unless they elect to be liable for 
                                               
33 According to the authorities, approved tourism prod ucts include any service or facility considered to 
be a tourism project such as hote ls, restaurants and refurbishments. 
34 Organization of American States (OAS) online information. Viewed at: http://www.oas.org/ 
TOURISM/incentives/st-lucia.rtf . S/WPGR/W/25/Add.6 
 
- 31 - 
 
  income tax of 1% on the chargeable income of the company), as well as stamp duty, and they are 
not subject to exchange controls. […]. 
10.6  Saint Vincent and the Grenadines WT/TPR/S/190/VCT/Rev.1 (2nd review, 
21 April 2008) 
P. 9, para. 40 
In order to attract foreign investment St. Vincent and the Grenadines offers incentives  in a range 
of areas (Chapter III(3)(ii)). The St. Vincent and the Grenadines Export Free Zone Act No. 15 of 
1999 grants the port authority responsibility fo r administering free zones. To date there are 
no free zones in operation. 
P. 24, para. 110 
National Investment Promotion Incorporated (NIPI) (Chapter II) acts as an export and investment 
promotion agency. […]. The five priority  sectors identified by the NES are: tourism;  information 
communication technology  (e.g. improved connectivity); […] and creative industries 
(e.g. music). Among the activities that may be called fo r in the NES are trade fairs, a website, 
and national branding. Two legislative proposals that are in the early stages of development would 
provide support for these activities: a Small Bu siness Development Bill 2007, and an Information 
and Communication Technology Services  Investment Incentives Bill, 2007. 
P. 27, para. 122 
[…] Incentives are granted under Fiscal Incentives Act No. 5 of 1982, and under Hotels  Aid Act 
(Cap 339 and 340 of the Laws of St. Vincen t and the Grenadines, Revised Edition, 1990), 
(see Chapter IV). 
P. 36, para. 177 
(ii) Telecommunications 
[…] The Information and Communication Technology Services Investment Incentives Bill, which is 
currently before Parliament, would allow approved companies duty-free  imports of material and 
equipment for the provision of information and communication technology services. […]. 
P. 44, para. 226 
(v) Maritime transport 
The authorities were unable to confirm whether domestically flagged ships were eligible for any 
fiscal incentives. 
P. 41, para. 207 
(iii)  Financial services 
[…] Offshore banks benefit from various tax and duty exemptions, for a minimum of 25 years from 
the date the licence is granted. 
P. 42, para. 211 
Under the Act, international insurance companies are exempt from all taxes and stamp duty for 
a minimum of 25 years from the date the certificate of tax exemption is issued. This exemption is 
renewable indefinitely. S/WPGR/W/25/Add.6 
 
- 32 - 
 
  Pp. 45-46, para. 236 
(vi) Tourism 
Tourism development is one of the priority areas in which the Government is encouraging 
investment.35 Under Hotels Aid Act No. 16 of 1988, tax concessions  include the waiver or 
drawback of customs duties and consumption taxes on imports of building materials and 
equipment as well as advertising and promotional material related to the tourist industry. Between 2001 and 2006, total revenue forgone as a result of customs duty relief under the Hotel Aid Act 
was EC$1.6 million. Over the same period, an additional EC$751,000 of revenue was forgone as 
a result of other tax relief for purposes connected with tourism. Income tax holidays are available for the development of new hotels and apartment-hotels (of not less than five rooms for citizens of St. Vincent and the Grenadines, and not less than ten rooms for other persons) or for 
improvement and expansion. […]. The income tax holiday is for nine to 15 years, depending on the 
number of rooms created. […]. 
Pp. 47-48, paras. 246-248 
(viii) Other offshore services International business companies (IBCs) must be incorporated under the International Business 
Companies Act No. 18 and Act No. 38 of 1996 (a s amended in 2002). IBCs are regulated and 
licensed by the St. Vincent and the Grenadines Offshore Finance Authority. 
In addition to offshore banks and international insurance companies, other offshore companies 
include: 16 mutual funds, 13 mutual fund  managers, and 114 trusts. There are also 
6,632 registered international business companies (IBCs).
36 No information was available on 
the contribution of offshore activities to employment, investment, or government revenue. 
Under the International Business Companies Act, IBCs are precluded from carrying on business 
with residence of St. Vincent and the Grenadines. They may, however, hold bank accounts in 
St. Vincent and the Grenadines, and may invest in stocks and entities doing business in the state. 
IBCs must have a registered agent in St. Vincent and the Grenadines and a registered office (which may be the office of the registered agen t); they do not need to appoint managers or 
directors in order to be registered. IBCs are exempt from all taxes as well as stamp duty for 
25 years from their incorporation; this tax exemption is renewable indefinitely. Tax exemptions also apply to dividends paid by IBCs. IBCs are not subject to exchange controls.
37 
11  THAILAND - WT/TPR/S/191/REV.1 (5TH REVIEW, 6 FEBRUARY 2008) 
P. 78, para. 97 
(i) Taxation 
As in many other countries, the corporate tax is used by the Thai Government not just to generate 
revenue, but also as an instrument of economic policy by means of tax incentives. Among the 
main types of incentive are corporate tax holidays  (total exemption from tax) for specified 
periods; these incentives are, in most cases, still granted by the Board of Investment 
(sections (2)(ii)(j) and (4)(ii)(a)).38 One noteworthy tax incentive outside the purview of the BOI 
involves the low tax rate of 10% granted to Inte rnational Banking Facilities (IBFs)  in an 
attempt to develop Thailand's financial sector. This incentive, by implicitly subsidizing foreign exchange borrowing by Thai enterprises, was pr obably one of the factors that exacerbated the 
financial crisis in 1997. In 2006, the Thai Government adjusted the incentive scheme for IBFs by 
                                               
35 NIPI (2007). 
36 International Financial Services Industry, St. Vincent and the Grenadines online information. Viewed 
at: http://www.stvincentoffshore.com/industry.htm . 
37 International Business Companies Act No. 18 and No. 38 of 1996. Viewed at: 
http://www.stvincentoffshore.com/pdf/inter national%20business%20companies%20act.pdf ; and International 
Business Companies (Amendment) Act, No. 26 of 2002. Viewed at: 
http://www.stvincentoffshore.com/pdf/Interna tional%20Business%20Com p%20_Amend_%20act%202002.pdf  
38 See, for example, WTO document G/SCM/N/123/THA, G/SCM/N/128/THA, 23 June 2005. S/WPGR/W/25/Add.6 
 
- 33 - 
 
  repealing the incentive for out-in facilities, but continuing the incentive for out-out facilities39, 
which are operated in the Domestic Banking Unit.  […]. 
P. 80, para. 100 
(ii) Investment incentives 
The BOI recognizes the need to remove impediments to investment rather than relying on widely 
used tax incentives; the authorities indicate that this is the BOI's long-term goal. […]. Maximum tax and duty privileges  are given to regions or areas with low income and inadequate 
investment facilities. SMEs  with minimum investment capital of B 1 million (excluding cost of land 
and working capital) are eligible for promotion incentives.  
Under the Investment Promotion Act B.E. 2520 (1977), Amendment No. 2 (1991) and Amendment 
No. 3 (2001), the BOI continues to have a wide-ranging influence on the formulation and 
implementation of investment promotion policies. The BOI, inter alia , authorizes the granting of 
tax and non-tax measures; main tax incentives include exemptions from import duties  for 
machinery or raw materials, and corporate tax exemptions,  and main non-tax measures include 
special permission for approved investments to be majority foreign-owned and to own land. […]. 
In 2006, 33% of BOI-approved projects were 100% foreign-owned investments and 42.3% were joint ventures
40; 28.5% of these projects were export-oriented and involved […] services and 
infrastructure  […]. 
P. 120, para. 64  
(iii)  Banking, finance, and insurance 
In 1997, the Government announced explicit full guarantees for depositors and creditors  of 
commercial banks, foreign bank branches, financial companies, and credit  foncier  companies. 
Later, in 2003, the guarantee for creditors was abolished owing to economic recovery. A deposit 
insurance agency  is to be established as a legally separate entity with initial capital of B 1 billion. 
Annual premiums collected from members should not exceed 1%. The existing blanket 
guarantee  will be replaced by a limited insurance with coverage of B 1 million. The authorities 
plan to reduce coverage gradually from full guarantee to the targeted amount, tentatively within 
four years. The full coverage will remain for the first year, and will be reduced each year to 
B 50 million, B 25 million, B 10 million and B 1 million, respectively. In June 2007, the draft Deposit Insurance Act was being reviewed by the Council of State; it will subsequently be proposed to the Parliament for approval. 
P. 121, para. 64 
(iii)  Banking, finance and insurance 
During the period under review, banks maintained [minimum capital adequacy ratio, CAR] in 
excess of minimum requirements: the CAR rose from 12.9% in December 2002 to 14.3% in 
April 2007 and tier 1 capital rose from 8.9% to 11.4% over the same period. This development 
was, inter alia , due to continued improvement in operations of financial institutions, the 
recapitalization  of certain banks, and the raising of new capital through the issuance of 
subordinated debt instruments, common stocks, as well as hybrid tier 1 capital instrument. […]. 
                                               
39 The authorities indicate that "out-out banking faci lity" means: accepting de posits or borrowing in 
foreign currencies from sources outside Thailand for the purpose of lendin g in foreign currencies outside the 
country; and accepting deposits or borrowing in Thai baht from foreig n banks or overseas branches of 
commercial banks for the purpose of lending in Thai baht  to foreign banks or overseas branches of commercial 
banks. 
40 BOI online statistics. Viewed at: 
http://www.boi.go.th/english/download/boi_statistics/28/0612_app_en.pdf  [14 February 2007]. S/WPGR/W/25/Add.6 
 
- 34 - 
 
  P. 129, para. 95 
(v) Transport 
(a) Railway 
The State Railway of Thailand (SRT) operates and maintains Thailand's rail services. […]. The 
Government tries to implement policies to increase efficiency of rail services and to reduce its 
financial losses, inter alia,  from track rehabilitation work, yearly maintenance costs, and social 
service provisions.41 Despite legal provisions requiring the Government to reimburse SRT for its 
annual losses,  it does not normally allocate the full am ount, which causes cash flow shortages for 
the SRT. 
Pp. 129-130, para. 99 
(b) Maritime transport 
[…] Many promotional measures  are in place to attract Thai operators to fly the Thai flag, these 
include administrative, tax relief, and funding measures.42 […]. The objective is to provide 
more flexibility to Thai ship owners du e to the shortage of Thai seafarers. 
P. 131, paras. 105-106 
(c) Air transport Since January 2004, Thai AirAsia, a Thai-Malaysian  joint-venture low-cost airline, has benefited 
from BOI investment privileges such as tax exemptions  for eight years, including taxes on 
machinery imports.
43 These incentives  are available to all airlines requesting investment 
promotion within the air transport service category  under BOI Announcement No. 2/2543 
(2000), which provides for incentives, such as import duty exemption  on machinery regardless 
of zones, corporate income tax exemptions, and other incentives according to zones, to all "priority 
activities" (Chapter III). 
[…] Thai Airways International benefits  from regulations that require civil servants and officers of 
government-related agencies to use its services. 
P. 132, paras. 110-111 
(vi) Tourism 
A Committee for National Tourism Policies (Committee for National Tourism Development until 
2005), chaired by the Prime Minister, is respon sible for preparing tourism plans and policies. 
According to the authorities, a Tourism Master Plan aims to promote foreign tourists arrivals targeting an increase of not less than 6% per year and revenue growth of not less than 10% 
per year […]. The Board of Investment offers tax and other investment incentives  for hotels  
with more than 100 rooms. However, firms located in zones 1 and 2 will receive only non-tax incentives, while those located in zone 3, except 18 least developed provinces, will receive only 
import duty exemption on machinery. These incent ives are granted to both domestic and foreign 
investors. 
The Tourism Authority of Thailand (TAT), a state agency, handles tourism promotion.
44 Its 
Thailand Tourism Promotion Policies for 2003-2006 include five main objectives: to promote  
tourism as a major instrument for improving the economy; to promote and develop proactive 
marketing operations; to promote cooperation with all parties both domestic and international in 
                                               
41 Thailand Outlook online information, Transport . Viewed at: 
http://www.thailandoutlook.com/thailandoutlook1/about+thailand/transport/  [25 March 2007]. 
42 The authorities indicate that details on these promotional measures are available in the Maritime 
Department online information ( www.md.go.th ), but no such information was available in the English version 
of this site. 
43 EIU (2006b). 
44 WTO (2003). S/WPGR/W/25/Add.6 
 
- 35 - 
 
  tourist market promotion and development; to strive for organizational, management, and 
personnel skills; and to accelerate the development of an information technology system that facilitates e-tourism.
45 
P. 134, para. 122 
(vii)  Distribution services 
In recent years, the Department of Business Development of the Ministry of Commerce has also 
taken steps to help  small retailers  run their business more competitively by providing them with 
training and operation plans,  for example with respect to logistics and supply chain 
management and the establishment of networks among manufacturers, wholesalers, and small 
retailers. A state-backed firm, Allied Retail Trade, was set up to help  small retailers through such 
means as financial aid and the building up of bargaining power. 
12  PAKISTAN - WT/TPR/S/193/REV.1 (3RD REVIEW, 20 MAY 2008) 
P. 61, para. 91 and Table III.4 
(iv) Export subsidies 
(b) Sector-specific schemes A number of sector-specific schemes also assist exports  (Table III.4). Exports of computer 
software and IT-related services  are exempt from income tax until end-June 2016 (from 
1 July 2003). […]. 
Table III.4 
Sectoral export subsidies, 2006/07 
Export/industry Description 
[…]  
IT services or enabled services, 
computer software Income exempt from tax for the period 1 July 2003 until 
30 June 2016 
Source:  Government of Pakistan, Trade Policy , various years. 
P. 72, para. 124 
Small- and medium-sized enterprises (SMEs) 
Policies on SMEs are handled by the Small and Medium Enterprise Development Authority 
(SMEDA). The Government's first SME policy, approved in January 2007, highlights logistical and 
infrastructural support  and the need to lower costs of "doing  business", such as by providing an 
improved business environment, easier credit access, human resource development, and 
support for technology up-grading and marketing.  The State Bank issued new prudential 
regulations for SME financing in 2004 to raise credit access by SMEs. Banks can now extend 
cash-flow lending to them using personal guarantees. The SME Bank was restructured and is 
expected to be privatized in 2007/08. The SME Business Support Fund makes grants  to SMEs of 
up to PRs 1.8 million, on a shared-cost basis. […]. 
                                               
45 Tourism Authority of Thailand (2006). S/WPGR/W/25/Add.6 
 
- 36 - 
 
  Pp. 106-107, para. 100 
(a) Shipping 
 […] Ships (including floating craft, tugs, dre dgers, survey vessels) bought or chartered by 
a Pakistani entity and flying the country's flag are exempt  from import duties  and surcharges 
until 2020 provided they are not demolished within 5 years. […]. 
P. 107, para. 101 
(b) Air transportation […] Government subsidies apply to certain of [the state-owned Pakistan International Airways 
(PIA)]'s loss-making socio-economic routes.
46 
P. 108, para. 106 
(iv) Information technology and software development 
Pakistan has continued to promote development of information technology and computer software, 
with particular export focus. Development has been assisted by several tax, financial, and 
regulatory incentives  e.g. exemption from income tax on software exports until end-June 2016, 
allowing 100% foreign equity, […]. 
13  GHANA- WT/TPR/S/194/REV.1 (3RD REVIEW, 7 MAY 2008) 
P. 13, para. 15 
Investment incentives  are available to foreigners and Ghanaians alike. Certain machinery and 
equipment imported for investment purposes are eligible for reduced import tariffs and VAT rates (Chapter III(2)(iii)(d)). Tax rebates are available for investments in specific regions 
(Chapter III(4)(i)(c)). Special investment incentives are also available to enterprises located in 
free zones (Chapter III(3)(v)). The Ghana Investment Fund (GIF) aims to provide medium- and long-term credit facilities to investors through designated financial institutions. 
P. 21, para. 10 
A number of incentives are being provided to attract foreign direct investment into critical areas, 
including the energy,  financial, and telecommunications  sectors. Commercial lending rates are 
relatively high, and the Government has set up the Export Development Fund (EDF) to provide 
loans to the private sector at reasonable rates. 
P. 78, paras. 75-77 
(i) Incentives 
(a) Research and development 
The Ministry of Education, Science and Sports is responsible for policy issues relating to science 
and technology. The Council for Scientific and Indu strial Research (CSIR), established in 1968, is 
a statutory organization responsible for coordinating scientific and industrial research.  It has 
13 research institutes and centres under its control, and covers both agricultural and manufacturing research on, inter alia , crops, livestock, soil and land use, forestry, food processing, 
and transportation.  The Council is required to generate at least 30% of its operational budget. 
Other organizations under the Ministry involved in  technology development and transfer are: the 
Ghana Atomic Energy Commission (GAEC), the Ghana Regional Appropriate Technology Industrial Service Foundation (GRATIS), the Development and Application of Intermediate Technology 
(DAPIT), and the Rural Enterprise Project (REP). 
                                               
46 World Bank (2005a), p. 21. S/WPGR/W/25/Add.6 
 
- 37 - 
 
  The Ghana Research and Advocacy Programme G-RAP is a funding mechanism  to support the 
institutional development of research and advocacy organizations in Ghana. G-RAP is supported by various international donors. 
P. 62, para. 92 
(a) Telecommunication In order to promote universal access  to telecommunication services, the Government instituted 
the Ghana Investment Fund for Telecommunications (GIFTEL) in 2004.
47 GIFTEL's primary 
responsibility is to facilitate investment in information and communication technology in under-
served areas; priority is given to projects that seek to increase basic rural connectivity and access to broadband services. To date, GIFTEL has supported  the establishment of 77 community 
information centers and 44 common telecommunication facilities in under-served areas. GIFTEL's 
operations are financed by contributions from operators who must pay 1% of their net profit; 
additional resources may be allocated by Parliament.  Projects identified by GIFTEL are 
announced publicly and allocated by open tender. 
P. 65, para. 113 
(v) Tourism 
Hotels, guest houses, and other accommodation establishments and tour operators licensed by the 
Ghana Tourist Board are eligible for certain tariff and tax concessions.  As decided by the Ghana 
Investment Promotion Centre in June 2005, tariff and VAT exemptions  are granted on, 
inter alia , imports of capital and office equipment, furniture, and passenger vehicles. In addition, 
hotels that have between two and five stars are exempt from corporate tax  for five years. 
14  MEXICO - WT/TPR/S/195/REV.1 (4TH REVIEW, 2 MAY 2008) 
P. 31, paras. 9-10 
The two major export promotion instruments, the Maquila and the PITEX, were amalgamated into 
the IMMEX Programme at the end of 2006. This programme grants fiscal and administrative 
benefits  contingent, inter alia , on compliance with minimum export requirements. […]. 
In 2002, Mexico introduced several sectoral promotion programmes (PROSECs) under which the 
eligible companies may import inputs used to produce specified goods at a reduced tariff. […]. 
There are also a large number of other government support programmes for specific areas. 
Pp. 67, paras. 181-183 
(iv) Tariff and tax concessions 
In order to streamline procedures and lower administrative costs both for companies and for the 
Federal Government, on 1 November 2006 the Decr ee on the Promotion of the Manufacturing and 
In-Bond Assembly ( Maquiladora ) Industry and Export Services (IMMEX ) was published, 
amalgamating the Maquila and PITEX programmes into a single instrument that gradually came 
into force as of 13 November 2006.48 As a result of this amalgamation, the name of the Maquila 
programme was changed and the PITEX programme was terminated, even though the benefits of 
both programmes remained in effect until the IMMEX Programme entered into force fully, which 
was planned for 1 July 2007. In October 2007, however, it was decided to defer its full application until January 2008. The IMMEX Programme is for an indefinite period. 
The IMMEX Decree redefines the Maquila concept to include not only the industrial process or 
services for the processing, transformation or repair of goods imported temporarily before 
returning abroad , but also the supply of export services.  Sub-manufacturing operations are 
                                               
47 Ministry of Communications (2004). 
48 Decree amending the provisions on the promotion an d operation of the in-bond assembly industry for 
export, published in the Official Journal of the Federation of 1 November 2006. S/WPGR/W/25/Add.6 
 
- 38 - 
 
  defined as industrial processes or services directly related to manufacturing  in a company 
with an IMMEX Programme, carried out by a person other than the latter company's owner.  
Consequently, sub-manufacturing does not only include processes that complement manufacturing for export but also complete processes provided that they are related to the operations of an 
IMMEX company. 
The IMMEX Programme can be authorized in several forms; in addition to those included under the 
former Maquila scheme (industrial, services,  accommodation and holding companies), a new form 
has been introduced called "tertiarization"  (shift towards the tertiary sector), which allows 
a company that does not have its own produc tion facilities to engage in manufacturing 
through third parties registered in the programme.  The purpose is to respond to new 
business needs such as outsourcing and to encour age the integration of small- and medium-sized 
enterprises into the export market. 
Under the IMEX programme, the temporary import of raw materials, parts and components is 
subject to a regime called "deferred payment of tari ffs", under which the tariff is not paid as long 
as the inputs are incorporated into a product for export; the tariff on the temporary import of 
machinery and equipment still has to be paid.
49 The provisions on the application of MFN or 
preferential tariffs on inputs co ntained in FTAs signed by Mexico, where applicable, still apply. 
P. 70, paras. 199-200 and 203-205 
(v) Export financing, in surance and guarantees 
Financial support for the export sector is still mainly through the Banco Nacional de Comercio 
Exterior  – BANCOMEXT (National Foreign Trade Bank), which acts as the Federal Government's 
development bank specializing in financing and pr omoting exports and has its own legal status and 
assets. 
BANCOMEXT gives short-, medium- and long-term lo ans, and guarantees and insurance to direct 
or indirect exporters, particularly small- and medium-sized enterprises.  The main instruments 
used by the Bank to provide financial support are: loans to exporting companies to finance their working capital, export sales and export-related in vestment projects; lines of credit for importers 
of Mexican goods and services; insurance, collateral and pre- and post-export guarantees for 
commercial financing; as well as other financial services to facilitate export transactions such as letters of credit and trust fund services […]. 
The sectors with the major share of BANCOMEXT fi nancing from January to June 2007 were (their 
percentage of the total is shown in brackets): the agricultural sector (30.2), services (24.1),  
electrical-electronics sector (10.9), and building materials (8.5).
50 
Through its subsidiary Bancomext Insurance, BANCOMEXT provides export credit insurance 
and guarantees to support exports and facilitate access to credit. The guarantees protect exporters 
and commercial banks from the risk of default on the credit granted from the start of production 
until the goods or services for export are marketed. 
Bancomext Insurance provides two types of guarantee: financial guarantees and 
guarantees against political risk. Financial guarantees are channelled through the commercial banks and are intended to facilitate the financing of working capital, export sales and investment projects for direct or indirect exporters; they co ver between 50 to 70% of the credit granted to the 
companies. Political risk guarantees (or post-exp ort guarantees) are given to direct exporters in 
order to protect them against the possibility of  non-payment by a buyer abroad for political 
reasons; the guarantee covers up to 90% of the value of the export invoice. Between January and 
June 2007, BANCOMEXT insured and guarant eed operations amounting to US$134 million.
51 
                                               
49 Articles 104 and 110 of the Customs Law. See also information from the SE online. Consulted at: 
http://www.economia.gob.mx/?P=asp_gen_immex . 
50 Data provided by BANCOMEXT. 
51 Ibid. S/WPGR/W/25/Add.6 
 
- 39 - 
 
  Pp. 79-82, para. 256 and Table III.12 
(iii) Incentives 
(a) Overview 
Other programmes give tax concessions  for specified activities such as […] air and maritime 
transport,  and the cinematographic industry.  Fiscal assistance is also given for acquiring 
equipment to combat contamination  and for technological research and development 
activities  (Table III.12). 
Table III.12 
Tax incentives for the promotion of economic activities 
Institution Name of the programme Description 
[…] 
Ministry of Finance 
and Public Credit (SHCP)  
Technological development  
Deduction from income tax of the contributions made to 
technological research and development  funds. 
 Tax incentives for the 
cinematographic industry  Tax incentive for companies investing in national 
cinematographic production.  
Incentives for public 
transport of passengers or freight  Tax incentive for persons purcha sing diesel fuel for their 
final consumption to be used in vehicles exclusively intended for the public or pr ivate transport of passengers 
or freight. 
 Incentives for land 
transport of freight or passengers  Tax incentive for persons exclusively engaged in land 
transport of freight or passengers and in private transport of freight or passengers. 
 Incentives for the merchant 
marine  Tax incentive for persons pu rchasing special marine 
diesel fuel to be used in vessels for merchant marine 
activities. 
 Incentives for commercial 
corporations building or 
buying real estate  Tax incentive for companies building or buying real 
estate. 
Ministry of the Environment and Natural Resources (SEMARNAT) Duty-free import of anti-
contamination  equipment The exemption only applies if the equipment to be 
imported cannot be substitu ted by equipment produced 
or that could be produced in Mexico. Subject to prior 
authorization by the SE. 
Accelerated depreciation of equipment to be used to prevent or control contamination  Incentive for companies purchasing equipment to be 
used to prevent or control contamination of the 
environment;  95.7 to 100% of the value of the 
purchase of the asset can be depreciated. 
Source:  Information provided by the Mexican authorities (October 2007). 
 
P. 85, para. 263 
(c) Financial support and other programmes 
Apart from the credit granted by development ba nks, financial support is also given through 
credits, payments and, in some instances, risk  capital for social, technological development and 
environmental protection projects and is channelled through special funds and trust funds managed by various Federal Government agencies and organizations.
52 
P. 78, para. 97 
(v) Maritime transport In mid-2006, the Federal Government created the Mexican Merchant Marine Development Fund 
(Fondemar) with a view to helping Mexican shipping companies to obtain financing for buying, 
building or modernizing vessels for maritime traffic.  In each case the SCT must determine 
                                               
52 The CIPI publishes information about these programmes online. Consulted at: 
http://www.cipi.gob.mx/html/ body_programas_de_apoyo.htm . S/WPGR/W/25/Add.6 
 
- 40 - 
 
  Fondemar's level of participation in the credit risk through guarantees . According to 
information provided by the authorities, the resources allocated to Fondemar amounted to 117 million pesos (US$10.7 million). 
P. 124, para. 138 
(b) Banking sector From December 2000 to June 2007, total credit granted by commercial banks to the private sector 
rose by 102.7% in real terms. The overal l robust performance is attributed to the 
recapitalization  and reprivatization of banks, the consolidation of the banking system after the 
1994 financial crisis and […]. 
15  BRUNEI DARUSSALAM - WT/TPR/S/196/REV.1 (2
ND REVIEW, 4 JUNE 2008) 
P. 1, para. 1 
The Government provides a wide range of free or heavily subsidized public services and employs 
25% of the labour force.53  
P. 31, Box II.1 
Box II.2: Brunei Economic Development Board's economic diversification strategy 
The Brunei Economic Development Board's (BEDB) economic diversification strategy is designed to create 
long-term business and employment opportunities for Bruneians. It is currently focusing on developing 
downstream oil and gas industries, particularly on it s Sungai Liang Industrial Park (SPARK) and planning 
the development of a globally competitive port on Pulau Muara Besar, support ed by an export processing 
zone for logistics, distribution  and light to medium manufacturing in dustries. In additi on to industrial 
site development, in 2003 the BEDB sponsored a study to identify industry clusters with the potential for 
growth. Subsequently, four indust ry clusters were prioritized: transportation and logistics;  business 
services; financial services; and hospitality and tourism.  The BEDB collaborates with various lead 
agencies to develop these clusters. 
The BEDB's main objectives are to: stimulate the gr owth and development of the economy by promoting 
Brunei Darussalam as an investment destination; develop plans to attract foreign and local investment in industries and skill-intensive services that enjoy good  export-market prospects; promote and assist in the 
development of industrial activities; encourage foreign and local industries to invest in new technology, automation, training, research, and product development acti vities; and support the development of local 
entrepreneurs and SMEs. 
The general criteria for evaluation of investment projects are: sustainability, prospects of industrial spin-off 
and businesses opportun ities for domestic SMEs, potential to crea te employment opport unities and fit with 
the national economic development plan. In keeping with its efforts to ensure real and sustainable benefits are derived from investments, investors enter into a Cooperation Agreement with the BEDB. In signing the agreement, the BEDB helps the investor in securing incentives, utilities, and infrastructure. The investor commits to agreed quantifiable and qualitative undertak ings on a best endeavours basis in such areas as 
employment, transfer of technology, local participation, promotion of local SMEs, spin-offs, and community development.  
Source:  Authorities of Brunei Darussalam. 
P. 31, para. 49 
(ii) Incentives 
In January 2001, the Sultan issued the Investment Incentives Order 2001 and the Income Tax Act 
(Amendment) Order 2001, which contained reforms designed to stimulate investment. The first 
made application for tax incentives simpler for corporations and the second broadened the tax 
incentives.  The Investment Incentives Order 2001 provides for a number of incentives , mainly 
in the form of tax exemptions  for companies that have been granted "Pioneer Status" and for the 
expansion of established enterprises. Administration of the legislation is under the Minister of 
                                               
53 The authorities consider that government subsidies have helped to lower household income inequality 
in Brunei as measured by the Gini Coefficient, which declined from 0.413 in 1998 to 0.401 in 2005. S/WPGR/W/25/Add.6 
 
- 41 - 
 
  Industry and Primary Resources. Longer corporate tax relief periods are provided to promote the 
establishment of industries; the emphasis is on  pioneer enterprises, including high-technology 
industries, export-oriented manufacturing and services, research and development, 
transhipment,  and activities that support the introduction of new technology  into 
Brunei Darussalam. Any limited company with a Pioneer Status Certificate will be granted an 
exemption from corporate income tax (normally le vied at a rate of 30%), for between two and 
five years depending on the level of investment on capital assets. The exemption begins on the 
first day of production and may be extended to 20 years. Pioneer Status companies are also 
exempted from customs duty on plant, ma chinery, and equipment for their premises, 
and on raw materials  that are not available in Brunei and are to be used in the production of the 
pioneer products. Tax incentives are also provid ed for the expansion of an enterprise already 
established in Brunei. 
P. 33, para. 6 
Brunei continues to use extensive tax and other incentives  to encourage investment in priority 
sectors and production for export. In the abse nce of personal and value-added taxes, the 
corporate tax remains a leading instrument of industrial policy, offering tax exemptions  for up to 
eight years for companies investing in a broad range of activities under the pioneer status 
programme; these exemptions are aimed at developing small- and medium-sized enterprises 
(SMEs),  which make up nearly 95% of enterprises in Brunei. 
P. 56, para. 82 
(a) Subsidies 
As noted in the previous report, Brunei notified the Secretariat in 1997 that it maintains 
no subsidies that are notifiable pursuant to Article XVI:1 of GATT 1994, or Article 25 of the 
Agreement on Subsidies and Countervailing Measures.54 Subsidies, nevertheless, appear to be 
provided for […] water, energy,  and telecommunications services.  In addition, housing, 
education,  and medical care  are provided free of charge. […]. 
Pp. 57-58, paras. 86 and 88 
(d) Assistance for small- and medium-sized enterprises  
As part of its efforts to increase private sector participation in the economy, the Government has 
continued to encourage the development of small- and medium-sized  enterprises (SMEs),  
which make up 98% of enterprises in the country and account for 58% of Brunei's total 
employment in the private sector. Financial assistance  for SMEs consists of the Enterprise 
Facilitation Scheme (EFS), a financing scheme  developed by the Enterprise Development Centre 
in the MIPR, and the Micro-credit Financing Scheme  (MFS); the EFS and MFS provide maximum 
loans  per enterprise of B$1.5 million and B$30,000, respectively. Under the EFS, priority is given 
to enterprises operating […] as well as operators of tourism  activities in Brunei. […]. The loans  
are at a favourable rate of interest of 4%, repayable over seven years for EFS projects and 
four years for MFS loans.  
The Government is taking a "proactive" approach to diversifying the country's sources of economic 
growth and creating opportunities for SMEs. As noted in the previous chapter, the Brunei Economic Development Board (BEDB), formed in 2001, aims to attract FDI and promote joint ventures – 
targeting US$4.5 billion in new investment and at least 6,000 new permanent jobs by 2008. BEDB 
has a two-prong strategy: to develop a number of industry clusters, including tourism, 
transportation and logistics,  and financial services;  and to develop a port and industrial 
complex at Pulau Muara Besar […]. 
                                               
54 WTO document G/SCM/N/1/BRN/1, 18 March 1997. S/WPGR/W/25/Add.6 
 
- 42 - 
 
  P. 78, para. 49 
(5) SERVICES  
(i) Overview 
[…] Recognizing the importance of services for economic growth, the Government aims to 
transform Brunei into a service hub for trade and tourism (SHuTT). The SHuTT programme would 
promote trade, travel, business, and communications  in and through Brunei. The programme 
was intended to further develop Brunei's infrastructure, including upgrading facilities at Brunei 
International Airport;  expanding Muara Port, Brunei's main port , and increasing capacity in the 
telecommunications  services network to increase penetration rates, as well as expanding 
coverage by the domestic and international postal services. 
P. 91, para. 94 
Tourism promotion  is carried out by the Tourism Development Division in the Ministry of Industry 
and Primary Resources, acting under the advice of  the Brunei Tourism Board. The Ministry and the 
Board intend to develop Brunei as a unique tourism destination in South East Asia while taking into 
consideration the traditional and cultural values of Brunei and the sustainability of its environment. 
Tourism planning focuses on the economic and social benefits for Brunei, while preventing an erosion of Brunei's socio-cultural and religious values, and ensuring conservation of the 
environment. Particular activities that are targ eted include niche markets such as eco-tourism, 
adventure and cultural tourism, theme parks, and cruising targeting mature, well-travelled, tranquillity-seeking visitors from the region and beyond. 
16  MADAGASCAR - WT/TPR/S/197/REV.1 (2
ND REVIEW, 28 MAY 2008) 
Pp. 21-22, para. 41 and Table II.3 
(4) I NVESTMENT  
Under the ordinary law regime, any investment for the establishment of an enterprise is subject to 
a "capital inflow duty" ( droit sur les apports  – DA), which is determined in the light of the amount 
of the investment55, a professional tax56, miscellaneous duties and charges on the purchase of 
buildings (by Malagasy companies) or on the long-term rental of buildings (by foreign companies). 
Enterprises are subject to the company profits ta x (IBS), set at 30% wi th a minimum leviable 
amount57; this rate is set at 45% for foreign companies whose registered offices are not in 
Madagascar, except where they perform public works contracts. Microfinance institutions  are 
granted fiscal incentives  under the ordinary law regime in order to stimulate the supply of their 
services (Chapter IV(5)(iv)).58 
                                               
55 The duty (levy charged by the State) amounts to 1% for the first bracket (up to MGA 10 million), 
0.5% for the second bracket (between MGA 10 million and MGA 100 million), and 0.1% for the third bracket 
(amounts in excess of MGA 1,000 million). 
56 According to the authorities, this provision is repealed by the 2008 Finance Law. 
57 Article 01.01.16 of the General Tax Code (2006 edition). The minimum leviable amount is: 
MGA 100,000, increased by 0.5% of the annual turnover for enterprises in the manufacturing, handicrafts, 
agriculture, mining, transport, tourism and hotel se ctors; MGA 300,000, increased by 0.5% of the annual 
turnover for other enterprises. The IBS reductions provided for newly es tablished enterprises are no longer 
available as from fiscal year 2007. 
58 These are exempt from the IBS of 30% and from the minimum flat-rate tax over the first five fiscal 
years and, in the case of those that are not mutual in stitutions, an additional 50% reduction on the IBS is 
applied up to the 10th fiscal year. S/WPGR/W/25/Add.6 
 
- 43 - 
 
  Table II.3 
Fiscal regulations under the industri al free zone regime , December 2007 
 Fiscal regulation 
1 – Enterprises   
(a) Company profits tax (IBS)  
- Promotion/exploitation enterprise 
(EPE) Exempt for 15 years, thereafter liable to IBS at 10% 
- Industrial processing enterprise 
(EIT) Exempt for 5 years, thereafter liable to IBS at 10% 
- Intensive basic production 
enterprise (EPIB) Exempt for 5 years, thereafter liable to IBS at 10% 
- Service enterprise (ES) Exempt for 2 years, thereafter liable to IBS at 10% 
(b) Professional tax Exempt 
2 – Persons   
(a) Taxes on distributed dividends 10% without grace period 
(b) Taxes on salaries Maximum of 35% of  the taxable base (for expatriates) 
3 – Goods   
(a) Customs duty and import tax Exempt 
(b) Value-added tax General principle: al l VAT payments to be the subject of 
automatic reimbursement 
(c) Export duties and taxes Exempt 
(d) Excise duty Exempt 
Source: Malagasy authorities.  
P. 42, para. 48 
(i) Incentives 
Madagascar's notifications to the WTO indicate that it grants no aid or subsidy that might be 
inconsistent with its obligations under the Agreement on Subsidies and Countervailing Measures or under the GATT 1994.
59 However, support measures are granted to enterprises approved under 
the Free Zone regime (Chapter II(4)), […]. Public services,  such as electricity  
(Chapter IV(3)(iii), water  (Chapter IV(3)(iv)), air and rail transport  (Chapter IV(5)(i)) and 
postal  (Chapter IV(5)(iii)) services , also benefit from State aid,  a s  d o e s  a g r i c u l t u r e  
(Chapter IV(2)(ii)). 
P. 73, para. 85 
(ii)  Tourism 
Having identified them as having considerable development potential, the World Bank's IGP project 
has identified three priority zones for development, including two devoted to tourism  […]. In 
2003, a master plan for tourism in Madagascar, incorporating sustainable management, was adopted. In order to encourage the development of  eco-tourism, tourism land reserves have been 
set up (Isalo is the first, eight others are set up and more are being established).
60 In order to 
facilitate access to land by foreign investors (Chapter II(4)), the land is bought by the Ministry 
in charge of tourism and becomes the subjec t of an international invitation to tender61; 
investment in this subsector is subject to the ordinary law regime, but foreign promoters may 
utilize the services of the GUIDE when setti ng up their businesses (Chapter II(4)). […].  
                                               
59 WTO documents G/SCM/N/95/MDG of 16 July 2003 and G/SCM/N/95/MDG/Suppl.1 of 
21 October 2004. 
60 Ministry of the Econom y, Trade and Industry, " Madagascar, une île paradisiaque, offre à tous les 
investisseurs qui veulent entrer dans le tourisme, une grande opportunité " (Madagascar, a paradise island, 
offers all investors in to urism a great opportunity) http://www.meci.gov.mg/index.php? 
option=com_content&task= blogcategory&id=106&Itemid=282  [3 January 2008]. 
61 Consulted at: http://www.tourisme.gov.mg/ . S/WPGR/W/25/Add.6 
 
- 44 - 
 
  17  MAURITIUS - WT/TPR/S/198/REV.1 (3RD REVIEW,) 
P. 61, para. 95 
(iv) Export subsidies, and duty and tax concessions In 2001, the Government announced plans to create an information technology (IT) 
free-trade zone  (with digital parks across the country) that would offer the latest available 
technological facilities. It also announced a series of fiscal incentives,  including a five-year tax 
holiday. Construction of the Mauritius Cyber City (the Ebene Cyber City) started in 2004, with 
financial assistance from India; as of early 2006, it had attracted 25 operators. All ICT 
companies  (including those in the Ebene Cyber City) continue to enjoy tax holiday  during the 
grandfathering period. 
Pp. 61-62, paras. 97-98 
To be eligible for the Freeport Scheme62, activities (see Table AIII.2) must be carried out for 
re-export or export of goods, for the developmen t of the freeport zone, or for the provision of 
goods and services  by freeport operators to freeport developers and other freeport operators. 
However, subject to authorization by the Board of Investment, some exceptions are allowed, 
including the provision of goods and services  (of up to 20% of the total value of production) to 
a person outside the freeport zone. Companies operating in the freeport may be 100% foreign 
owned. The Mauritius Freeport Authority was merged with the BOI in 2005. 
Exporters are also entitled to duty drawback  on goods imported for the purpose of processing,  
manufacturing or repair  and then exported; and on goods re-exported in the same state. Customs 
has also introduced an inward processing scheme for 100% export-oriented enterprises allowing 
them VAT exemption on imported raw materials inputs.63 
Pp. 62-63, paras. 103 and 105 
(ii) Export promotion and assistance 
Enterprise Mauritius was set up in 2005 to help businesses to expand into regional and 
international markets, and at the same time develop their internal capability to meet the challenges of international competition, with the aim of diversifying Mauritian exports. It is 
a partnership between the public and private sector  with representatives from both groups on the 
board, and has a limited liability company structure. Its activities focus on promoting exports, supporting enterprise development, and providing competitive intelligence. Its focus is on manufacturing and non-financial, non-tourism exportable services.  Its services to facilitate 
exports of Mauritian-made products include provision of country briefs and market intelligence 
reports, assistance in the development of new products for existing or new markets, conducting market tests of sample products with potentia l buyers, dealing with issues regarding trade 
barriers, organizing activities such as trade fairs, buyer/seller meetings, one-to-one meetings in 
important countries, provision of a web-based marketing and e-Commerce transaction platform, and access to offshore resources for conducting market research.
64 It is financed by the State.  
The Government has also set up an SME Partnership Fund  of MUR 200 million to promote the 
creation, restructuring, and consolidation of SMEs. It aims to, among other things, improve exporters' international connections, through joint development of Mauritius's country brand. It invests in productive sectors, such as industry, industry supporting services, agri-industry, 
tourism,  Its main goals include moving industries from production-push to a market-driven 
approach, helping develop sector strategies, an d generally improving the business environment. 
                                               
62 Freeport facilities were initially established un der the Freeport Act 1992, then repealed and enacted 
again as the Freeport Act 2001, and by the Freeport Act 2004. 
63 MRA, Customs, The Mauritius Customs Magazine, June 2007. 
64 Enterprise Mauritius homepage at http://www.enterprisemauritius.biz . S/WPGR/W/25/Add.6 
 
- 45 - 
 
  P. 102, para. 118 
(ii) Telecommunications 
The ICT Act also provides for the Universal Service Fund (USF).  Regulations to establish the 
USF are being finalized. The ICTA worked out an interim payment mechanism, i.e. a special 
account under its general fund, in September 2003. Currently, universal services consist mainly in 
sustaining the below-cost access tariffs of the incumbent operator through payment from the special account. However, a more comprehensive proc edure is expected to be made effective upon 
the adoption of the USF regulations.  
Pp. 106-107, paras. 132-133 
(a) Maritime 
Mauritius' own merchant fleet is of 75,000 grt (Table IV.14). Ship registration and mortgaging are 
regulated by the Mauritius Merchant Shipping Act 1986 and the Mauritius Shipping (Amendment) 
Act 1992.65 The Minister is empowered to exempt  any class of ship from any of the requirements 
laid down under the Act. A new Merchant Shipping  Act has been elaborated, and introduced in the 
National Assembly. Its main declared objectives are to ensure that shipping operations and 
practices are conducted according to international safety norms to enhance maritime safety and security, to protect conditions of engagement, employment, work and living on board, and to 
safeguard interests of ship owners, op erators, passengers, and cargo. […]. 
Several fiscal exemptions  are granted under the marine legislation. Vessels registered in 
Mauritius are exempt from tax on freight earnings.  The personnel working on board 
a Mauritian flag ship is exempted from income tax , and the requirement of a work permit for 
foreigners is waived. Ships' stores, consumables, spare parts, and bunkers are exempted from 
customs and excise duties. No capital gains tax  is payable upon the sale or transfer of a ship 
or of the shares in a shipping company, and no estate duty is payable up on inheritance of shares 
in a shipping company.
66 
Pp. 110-111, paras. 146-148 
(iv) Tourism 
Mauritius expects tourism to remain a strong growth pillar of its economy […]. Low-impact and 
high-spending tourism has been further promoted through the "low-density and low-rise" hotel development policy and the priority given to hotel projects of the highest standards (the 4- and 5-star categories). It is to achieve this objective by, inter alia , further broadening and diversifying 
the tourist product portfolio by promoting eco-tourism  and cultural tourism, as well as leisure and 
recreational activities. The Government also intends to develop Mauritius as a duty-free 
shopping destination  (Chapter III(ii)). All this is to be accompanied by continuous liberalization 
of air traffic (including further relaxing its non-charter policy) (section (iii)(b) above). In addition, 
Cabinet agreed in 2005 to open up inbound tour operator services to foreign investors and promoters. Mauritius also intends to position itself as a potential cruise hub. Currently, a cruise 
jetty (the first) is being constructed and is expected to be completed by end 2007.
67  
The 2007/08 Budget introduced several measures, including setting up Events Mauritius 
Limited,  which will organize special activities to enhance the image of Mauritius as a destination; 
earmarking MUR 300 million for the Mauritius Tourism Promotion  Authority (MTPA) (see below); 
and MUR 35 million for the branding exercise, visi bility campaign, investing in the upgrading and 
                                               
65 The following are allowed to own and register ships under the Mauritian flag: citizens of Mauritius; 
companies incorporated in Mauritius and effectively contro lled by Mauritian citizens; companies incorporated in 
Mauritius or abroad, with the approval of the relevant  authorities; companies holding a Category 1 Global 
Business Licence, provided their shipping activities ar e carried out exclusively outside Mauritius. These persons 
or companies can also register a foreign ship under the Ma uritian flag if the ship is bareboat chartered to them 
for at least 12 months. 
66 Republic of Mauritius (undated c). 
67 MPA online information, "Strategy & Port Development". Viewed at: 
http://www.mauport.com/strategy . S/WPGR/W/25/Add.6 
 
- 46 - 
 
  rehabilitation of historical sites and infrastructure. All these measures are to be capped by 
a Tourism Strategy to be developed by March 2008. 
Fiscal incentives  (duty and tax concessions and rebates)  granted to hotel  promoters during 
the period under review were revised by the Finance Act 2006, through the abolition of the Hotel 
Management Services Scheme, and the Hotel Deve lopment Scheme (Table AIII.2), as part of 
government efforts to reform the investment re gime (Chapter II(5)). Currently, two incentive 
schemes benefit the tourism subsector: the Integrated Resort Scheme (IRS)68, introduced in 2002 
to encourage the purchase of luxury villas by non-residents; and the Real Estate Scheme (RES)69, 
introduced in 2007, to create opportunities for small landowners to participate in real estate development. The schemes are grouped together under the label of Real Estate Development Schemes (REDS). Concessionary interest rates on loans for the construction  or upgrading of 
hotel facilities are offered to SMEs by  the Development Bank of Mauritius. 
P. 113, para. 160 
(v) Professional services 
During the period under review the Scheme to Attract Professi onals for Emerging Sectors  
(SAPES) was introduced by the Investment Promotion (SAPES) Regulations 2002 with the aim of providing professional services of a high standa rd to investors. The sectors covered under SAPES 
included ICT and financial services.  Incentives granted included three-year contracts or 
permission to set-up an office or practice in Mauritius; three-year work and residence permits to professionals and their spouses; possibility for permanent residence in Mauritius; exemption  
from payment of duties and taxes on ho usehold and personal effects imported;  and the 
possibility to acquire an immovable property for personal residence. The authorities considered 
that the scope of the scheme was too limited, and it was repealed by the Business Facilitation (Miscellaneous Provisions) Act 2006, which allows for freer mobility for foreigners to work and live 
in Mauritius. SAPES professionals are nevertheless en titled to exercise their rights acquired under 
the repealed provision. 
18  OMAN - WT/TPR/S/201/REV.1 (1
ST REVIEW, 5 AUGUST 2008) 
P. 37, paras. 67-68 
(v) Free zones 
Oman has two free zones: the Al Mazuna free zone (AMFZ) inaugurated on 24 November 199970, 
and the Salalah free zone (SFZ) established under Sultani Decree 62/2006.71 Under the Free 
Zones Law and its rules and regulations72, the incentives  provided include: a lease for 30 years 
(renewable for another 30 years); 100% foreign ownership; duty-free imports of all raw 
materials and capital goods;  no minimum capital investment requirement; no taxes on profits 
or dividends for 30 years; no tax on personal income;  minimum Omanization requirement 
level of 10% instead of the standard level of 35% for industrial projects; and flexible customs procedures. Bonded warehouses may also be used for storage, provided certain customs 
procedures are fulfilled. According to the authorities, no distinction is made between locally and 
foreign-owned companies in respect of access to the free zones or bonded warehouses. The 
                                               
68 The Scheme was introduced by the Investment Promotion (Integrated Reso rt Scheme) Regulations 
2002, which were replaced in November 2007 by the Investment Promotion (Real Estate Development Scheme) Regulations 2007. 
69 The Investment Promotion (Real Estate Development Scheme) Regulations 2007. 
70 The AMFZ, located about 260 km from the Salalah Port  and near the Yemen border, is not very active 
given its land-locked situation, but it is the most im portant trade access between Oman and Yemen. The AMFZ 
is managed by the Public Establishm ent for Industrial Estates (PEIE), and contains 22 businesses and an 
exhibition area over 450 ha (Ministry of Commerce and Industry, 2005b). 
71 The SFZ is at the port of Salalah, 18 km south of  Salalah city. The SFZ is being developed in various 
phases over an area of 2,000 ha and, when completed, will have up to 4.4 million twenty foot equivalent unit (TEU) per year capacity. It will provide a mix of industrial, warehousing, logistics, office  facilities, retail outlets, 
resort, and residential space. Operat ions permitted in the SFZ are: tr ading, distribution, warehousing, 
assembling, processing/packaging, logistics, and services  (Salalah Free Zone online  information. Viewed at: 
http://www.sfzco.com ; and Ministry of Commer ce and Industry, 2003). 
72 Sultani Decree No. 56/2002. S/WPGR/W/25/Add.6 
 
- 47 - 
 
  relevant customs duties must be paid on sales of products from the free zones on the GCC market 
(including Oman). Up to 30% of free-zone production can be sold on the domestic market,  
i.e. at least 70% must be exported. 
The SFZ issues five types of licences: (i) general trading licences  allow holders to import, export, 
distribute, and store all items as provided for by the free zone rules and regulations; (ii) trading 
licences permit holders to import, export, distribute, and store items specified on the licence; (iii) industrial licences allow holders to import raw materials, carry out the manufacture of 
specified products, and export the finished product; (iv) service licences  permit holders to carry 
out the services  specified in the licence, within the free zone
73; and (v) national licences are 
designed for manufacturing companies with at least 51% GCC ownership or shareholding, and minimum value-added of 40%.
74 […]. 
P. 38, paras. 69-71 
(i) Incentives 
Oman offers various investment incentives to national and foreign investors. Their purpose is to 
encourage investments, in order to promote the country's development objectives, including the 
regional development programme; and introduce new industries, products, and technologies.75 
In addition to import duty concessions (section (2)(iv)(d) above), other general incentives  
available, to national and foreign investors include: exemption from tax on profits  for five years 
(renewable for another five years); long-term use of land at favourable rates76; subsidized 
electricity, water, and natural gas  for production77; and soft loans  for up to ten years, with 
a moratorium period of up to three years, at a subsidized interest rate.  Both new and expansion 
projects in manufacturing, agriculture, fisheries, tourism, education,  and health  are eligible for 
soft loans provided by the Oman Development Bank (ODB). 
The ODB, 100% government-owned, is Oman's primary financial development institution.78 It 
grants soft loans  to all projects. The loans must not exce ed 100% of the paid-up capital of the 
project if it is located in the Muscat area (except Quriyat), and 130% of the capital if it is outside. In all cases, the maximum loan is RO 1 million, for a period of up to ten years. ODB charges an 
interest rate of 9% per year (6% is subsidized by the government and 3% is payable by the 
borrower), with flexible grace periods (of up to two years) and repayment terms (of up to ten years). 
P. 63, para. 70 
The two state-owned specialized banks, Oman Ho using Bank (OHB) and Oman Development Bank 
(ODB), have been in operation since 1977. OHB provides finance mainly through long-term soft housing loans. ODB is principally engaged in providing loans to development projects in key 
activities, such as agriculture, fisheries, livestock, health, tourism,  and traditional industrial 
                                               
73 The type of service must conform to the parent company's licence issued by the economic department 
or municipality of the re levant region in Oman. 
74 National licences allow the holder the same status as a local GCC company inside Oman. 
75 Ministry of Commerce and Industry  online information. Viewed at: 
http://www.brunet.bn/php/kharti/invest1.htm . 
76 Oman offers land in the four industrial estates of Rusayl, Rays ut, Sohar, and Nizwa at RO 0.25 
per square meter/year for the first fi ve years, and thereafter at RO 0.5 per square meter/year. The land is 
initially leased for 25 years, renewable up to 99 years on completion of the initial lease period. The maximum 
size of a plot in the industrial estates is 4,500 square  meters. If a bigger area is required, adjoining plots can 
be leased together (Ministry of Commerce an d Industry online info rmation. Viewed at: 
http://www.brunet.bn/php/kharti/invest2.htm ). 
77 Electricity for industrial purposes is charged at  RO 0.024 per kWh from May to August, and RO 0.012 
per kWh from September to April; water costs RO 0.003 per gallon; and the price of natural gas is RO 0.0205 per cubic meter (Ministry of Commerce and Industry online information. Viewed at: 
http://www.brunet.bn/php/kharti/invest2.htm ). 
78 The ODB was established in April 1997 as a public  joint-stock company by merging the Development 
Bank of Oman (founded in 1979), and Oman Agricultur e and Fisheries Bank (founded in 1981). In March 2006, 
ODB became a Société Anonyme  through Sultani Decree No. 18/2006 (ODB online information. Viewed at: 
http://www.odboman.net/history.htm ). S/WPGR/W/25/Add.6 
 
- 48 - 
 
  craftsmanship. The interest rate on loans and advances charged by ODB is subsidized by the 
Government (Chapter III (3)(iv) and ((4)(i)).79 ODB also acts as agent on behalf of the 
Government in terms of: (i) distribution and collection of public soft loans; (ii) disbursement of amounts from the Agriculture and Fisheries Development Fund; and (iii) disbursement and 
collection of SANAD Fund loans.
80 
P. 66, para. 83 and p. 68, para. 90 
(iii) Telecommunications and postal services 
The general policy for the subsector aims to, inter alia : expand the provision of 
telecommunications services to cater for the need s of economic and social development; set up 
the telecoms universal service requirements; encourage investment in the telecommunications 
industry; introduce competition; and safeguard and develop Oman's interests internationally.81 
Under Articles 38 and 39 of the Telecommunicati ons Regulatory Act, the [Telecommunication 
Regulatory Authority (TRA)] is to float an open tender for licensing universal services 
requirements  as set up by the MTC, with subsidies  to the incumbent to be financed by the 
Treasury . If there are no bidders, Omantel will provide the services and have the right to receive 
subsidies for the related net cost as determined by the Act. In addition, Omantel will continue to provide its existing services, including 200 addi tional villages without subsidies from the 
Treasury.
82  
P. 70, para. 100 
(a) Maritime transport According to the authorities, no special incentives  are granted to the subsector. Maritime 
transport services may be provided by the priv ate sector (national and foreign). Freight and 
passenger transport charges are market determined. […]. 
P. 71, para. 106 
(b) Air transport According to the authorities, no special incentives  are granted to the subsector. Prices of air 
transport services are market determined, although  some Oman Air routes need the approval by 
the DGCAA. […]. 
P. 72, para. 110 
(c) Road transport According to the authorities, no special incentives  are granted to the subsector. Road transport 
services may be provided by the private sector (national and foreign). Foreign participation in 
transport business is limited to a maximum of 70% shares. […] Prices of road transport services are market determined. […]. 
                                               
79 In 2006, new financial lending limits were introduced allowing ODB to grant soft loans for up to 
RO 1 million for a single project at an interest rate  of 3% per year. The maximum limit on soft loans is 
RO 3 million to joint-stock companies that have o ffered 40% of their shares for public subscription. 
80 The SANAD Fund, inter alia , supports work seekers (vocational and craftsmen) by establishing 
individual and family self-employment projects (Ministry of Information online information. Viewed at: http://www.omanet.om/english/misc/omanise2.asp ). 
81 Article 3 of Sultani Decree No. 30/2002, 12 March 2002. 
82 The services specified are: to expand telecom se rvices and networks in defined areas according to 
their geographical location, or number of inhabitants, and to establish public tele com centres, including the 
installation of public payphones in these areas; to provide maritime telecom services; and to provide telecom services to person with special needs. S/WPGR/W/25/Add.6 
 
- 49 - 
 
  P. 73, para. 116 
(v) Tourism 
The Government is active in the tourism subsector, including financing  new and expansion 
projects through soft loans  (Chapter III(4)(i)). According to the authorities, the Government 
grants tourism-related investment incentives  following a feasibility study, and provided the 
project is in line with the overall vision of the count ry. Although there is no official taxation system 
for the subsector, all hotel bills include a 4% tourism tax and a 5% municipality tax. 
19  BARBADOS - WT/TPR/S/203/REV.1 (2ND REVIEW, 16 DECEMBER 2008) 
P. vii, para. 2 
Barbados' applied MFN tariff stands at a relative ly high average of 16.2%. This creates an 
anti-export bias, which Barbados has tried to offset through a wide array of fiscal and other 
incentive programmes  targeting the production of both goods and services.  
P. 14, para. 19 
Investors (including foreign) may benefit from a number of incentives  administered by the 
Ministry of Finance, Economic Affairs and Energy and the Ministry of Tourism , in coordination with 
Invest Barbados (the BIDC, prior to 2008) (Chapter III(4)(ii)).83 
P, 22, para. 6 
[…] In addition to export-support programmes, producers of goods and services  may benefit from 
tax breaks or other forms of assistance.  Although the direct fiscal cost of such assistance does 
not appear to be high, reassessing the many ince ntive programmes in place with a view to their 
possible rationalization could contribute to greater transparency and efficiency in their use, reduce 
the distortion of incentives, and help address Barbados' fiscal situation. 
P. 42, paras. 95-98 
(iv) Duty and tax concessions, including subsidies 
The Societies with Restricted Liability programme provides similar incentives as those granted to 
[international business companies (IBCs)]. The programme has its legal base on the Societies with Restricted Liability (SLR) Act of 1995, which cr eated a hybrid entity, with the features of 
a company as well as a partnership, to provide offshore services.  There is a guaranteed 
concessions period of 30 years. The programme is administered by the International Business Division of the Ministry of Foreign Affairs, Foreign Trade and International Business and the Commissioner of Inland Revenue. 
The subsidies  under SRL programme, including revenue forgone and income tax credit,  
totalled BDS$2.58 million in 2005/06, and (seven companies benefited); the accumulated benefits between 2002/03 and 2005/06  were BDS$33.4 million. 
In 2005 Barbados put in place an Export Prom otion and Marketing Fund, under the Export 
Promotion and Marketing Fund Act, 2005-20. The Fund provides financial support in the form of grants to public and private sector entities that export or promote the sale of Barbadian goods and 
services  in overseas markets. As at 31 December 2007, grants for a total of BDS$12.9 million 
(US$6.5 million) had been approved. 
Tax and duty concessions are also granted in support of exports of services  under the Hotel Aids 
Act and other legislation in favour of the tourism industry (Chapter IV(4)(v)). There are no foreign 
trade zones or free ports in Barbados. 
                                               
83 Ministry of Finance, Economic Affairs an d Energy online information. Viewed at: 
http://www.bidc.com/barbados_link.cfm?WebLink=27 . S/WPGR/W/25/Add.6 
 
- 50 - 
 
  P. 44, para. 113 and pp. 45-46, paras. 116-118 
(iii)  Incentives and other government assistance 
The Government of Barbados administers a number of incentives schemes,  particularly tax 
incentives  and, to a lesser extent, financial assistance.  Some schemes are destined mainly to 
exporting industries (Chapter III(3)), but others are targeted also or mainly at domestic 
companies supplying the domestic or regional market s. Assistance is available to companies in an 
array of sectors, from agri-food and manufacturing to tourism  and financial services.  
Under the Small Business Development Act of 1999, companies whose business is deemed to be of 
significant socioeconomic benefit to Barbados are entitled to a number of benefits. These include: an exemption from withholding tax  on dividends and interest earned on investment by small 
businesses; exemption from import duty  on plant and equipment imported for use in the 
business; exemption from withholding tax  on dividends and interest earned on investment in 
an approved small business or in any fund approved for investment in small businesses; exemption from stamp duty ; and a deduction of corporation tax  of an amount equal to 20% 
of actual expenditure in respect of the use of te chnology, market research, and any other activity 
that is, in the opinion of the Commissioner of Inland Revenue, directly related to the development of the business. Approved small businesses may also receive technical assistance to start, continue 
or expand operations. Revenue forgone under the Small Business Development Act of 1999 during 
2002-06 totalled BDS$1.32 million. 
Potential beneficiaries may be active in: agriculture, forestry, and related activities; fishing; 
manufacturing; construction;  and a number of service  activities, including entertainment, 
financial services, health care, hotel, restaurants, tourism, personal care services, real 
estate, transport, storage and communicati on services, wholesale and retail trade. 
Additionally, an approved small business may apply for loan guarantee cover under the Credit 
Guarantee Scheme  through any commercial bank or financial institution with access to the 
Scheme.
84 The Credit Guarantee Scheme for Small Busi nesses is sponsored by the Central Bank of 
Barbados.85 The scheme is designed to offer protecti on to commercial banks and other credit 
institutions approved by the Central Bank against insolvency and other possible losses in respect 
of the credit granted to small enterprises. […]. During 2002-07, 73 businesses were able to access guarantees totalling BDS$4 million under this scheme. 
P. 67, para. 53 and p. 69, para. 62 
(ii) Banking and insurance There are separate regimes for domestic and exempt (offshore)  companies. At end 2007 there 
were 30 domestic insurance companies, five of  them foreign owned. At end 2007, 459 exempt 
(offshore) insurance companies were licensed in Barbados of which 164 were active. 
Offshore banks are exempt  from various taxes,  including: capital gains taxes and other direct 
taxes on profits and gains; withholding tax; taxes on dividends, increases on the value of property, 
and other assets; and transfer of securities. The Act states that income tax may be payable on 
profits ranging on a sliding scale from 2.5% to 1% with higher profits attracting lower tax rates. Offshore banks are not exempt from payment of service or utility charges, which include charges relating to incorporation, registration or licensin g. At the Minister's discretion, offshore banks are 
eligible for customs duty exemptions  on equipment or fixtures essential for doing business in 
Barbados. Exchange controls do not apply to offshore banks. 
                                               
84 Beneficiaries must be incorporated under the Co mpanies Act and approved as a small business in 
accordance with the Small Business Development Act, or meet some eligibility criteria, including: sales not 
over BD$2 million, and paid capital not over BD $1 million, and be majo rity Barbadian-owned. 
85 Central Bank of Barbados (2008). S/WPGR/W/25/Add.6 
 
- 51 - 
 
  P. 69, paras. 63 and 69 
(c) Insurance legal framework 
As with banking, separate regimes apply to domestic insurance companies and exempt 
(offshore)  insurance companies, with the exception of "qualifying insurance companies" 
(see below). 
Companies licensed under the Exempt Insurance Act are exempt from income tax, withholding 
taxes, corporate taxes on capital gains, taxes on the transfer of assets or securities, and stamp 
duty on capital. They are not subject to ex change controls. Companies may underwrite both 
general and long-term risks under the same licence.86 All risks and premiums must originate 
outside Barbados. […]. 
Pp. 74, para. 98 
(b) Maritime transport 
Under the Shipping Incentives Act Cap. 90A (as amended by the Shipping (Incentives) 
(Amendment) Act 2005-5), approved shipping companies are entitled to a number of tax 
benefits,  when involved in the operation or leasing of ships for carriage of passengers or cargo, 
commercial shipping and boating in the tourist industry, the leasing of ships or in shipbuilding, including the reconstruction, alteration, refitting, equipping, maintenance or repair of ships. These 
benefits include: duty-free imports  of ships or any articles to be used in reconstruction, etc. of 
ships and exemption from tax  on dividends and interest. An approved shipping company is any 
company that is engaged in shipping activities, or that is wholly owned by the Crown or in which the Government has a majority interest. According to the authorities, the purpose of the Act was 
to encourage the development of a shipping indust ry in Barbados, and an indigenous industry for 
ship repairs. 
Pp. 75-76, paras. 103-106 
(v) Tourism The Government of Barbados offers a number of tax incentives  to the tourism industry. These 
fall mainly under the legislative framework of the Tourism Development Act Cap. 341 which 
replaces the Hotels Aid Act (1956), but also under the Special Development Areas Act (see below). 
Total revenue forgone as a result of these pr ogrammes amounted to BDS$16.7 million in 2007 
(around US$8.4 million); and BDS$17.3 million in 2006 (US$8.7 million). 
The Tourism Development Act Cap 341 (2002) widened the application of tax incentives to include 
not only tourist accommodation,  but also restaurants, recreational facilities, 
tourism-related services, cultural  and natural sites,  and any other tourism project.  These 
tax incentives include customs duty exemptions  for the import of building materials and a range 
of furniture and fixtures.
87 Owners or operators of tourism products are eligible for various income 
tax concessions  and are exempted from import duties, VAT and the environmental levy. 
Investors (persons providing loans, other than commercial banks) are eligible for an investment 
tax credit to be offset against tax payable. Investors also enjoy exemption from income tax. […]. 
The authorities note that terms and conditions attached to tax concessions do not include requirements to employ Barbadian nationals. 
Under the Special Development Areas Act, developers involved in constructing, renovating or 
refurbishing buildings  related to certain tourism activities in specific areas of the country are 
eligible to be exempt from certain taxes. Tax exemptions  relate to the payment of import duties, 
the environmental levy and VAT on inputs for building works. Investors making loans for such 
projects are also exempt from income tax on the interest received. 
                                               
86 BIDC (2005). 
87 The list of furniture and fixtures that may be impo rted duty free is listed in the Second Schedule to 
the Act. S/WPGR/W/25/Add.6 
 
- 52 - 
 
  The Enterprise Growth Fund Limited provides funding for certain small-scale tourism projects  
through the Small Hotels Investment Fund (SHIF) , and the Tourism Loan Fund. Through the SHIF, 
the Small Hotels of Barbados Inc. and its members may apply for loans  to assist with marketing, 
management, procurement of joint services and refurbishment. The repayment period is ten years 
at a 5% interest rate. One-quarter of the initial funding for the SHIF was provided by the 
Government (BDS$5 million), and the rest was raised by the private sector. Through the Tourism Loan Fund, loans are provided for refurbishing and upgrading hotels of 75 rooms or less and 
facilities for historical, cultural, and natural heritage attractions. The interest rate is 5.5%. The 
Government set up this fund with an initia l contribution of BDS$30million (US$15 million).
88 The 
authorities confirm that funding is available equally to citizens, residents, and foreigners. 
Pp. 79-80, paras. 126-128 and Table IV.4 
Other offshore services As at end 2007, a total of 3,334 international (offshore) companies were licensed to conduct 
business from Barbados. […]. As noted by the authorities, these increased numbers can be partly 
attributed to increased interest in investments into China from U.S. and Canadian investors 
(see Table IV.4). 
Specific legislation applies to each of the various types of offshore company set out in Table IV.4. 
International Business Companies are governed by the International Business Companies Act, 
Cap. 77. Exempt (offshore) insurance companies and offshore banks are governed by the Exempt Insurance Act 308A and the International Financial Services Act of 2002, respectively (see section (iii) above). […]. 
Table IV.4 
Offshore companies registered in Barbados, 2002-07 
 Total number of International Business Entities 
(of which new international registrations/licenses) 
 2002  2003  2004  2005  2006 2007 
International business 
companies 1,994  
(296) 1,726  
(274) 2,137  
(297) 2,323  
(372) 2,714 
(391) 2,488  
(506) 
Exempt insurance companies 187  
(11) 184 
(15) 183 
(13) 194 
(9) 202 
(8) 164 
(9) 
Exempt insurance management 
companies 31 
(3) 27 
(1) 24 
(1) 30 
(3) 31 
(1) 24 
(1) 
Societies with restricted liability 165  
(40) 104 
(31) 240 
(64) 258 
(42) 391 
(133) 417 
(151) 
Offshore banks 56  
(3) 53 
(2) 55 
(4) 55 
(0) 59 
(4) 57 
(5) 
Foreign sales corporationsa 829 400 182 170 91 54 
International Trusts (registered) 84 119 112 117 127 130 
 (84) (51) (14) (13) (10) (3) 
Total entities 3,346  2,613  2,933  3,147  3,615 3,334 
a No new licences since 2001, the figures relate to rene wed registrations. The authorities expect that the 
FSC regime will be phased out over time.  Source:  Information provided by The Ministry of  Foreign Affairs, Foreign Trade and International 
Business. 
International business companies carrying on the business of international manufacturing or 
international trade and commerce from within Barbados are governed by the International Business Companies Act, Cap. 77. IBCs benefit from a number of tax benefits,  including a lower 
rate of corporate income tax, of 2.5% to 1%, with lower rates applying to higher levels of profit; 
tax concessions for employment of non-resident sp ecially qualified individuals; tax exemption for 
dividends and other payments, as well as withholding tax; and tax exemptions for the specified 
transfer of assets. IBCs are not subject to exchange controls. Imports of machinery and equipment 
are also exempt from certain taxes and duties. […]. 
                                               
88 Enterprise Growth Fund Limited online information. Viewed at: http://egfl.bb . S/WPGR/W/25/Add.6 
 
- 53 - 
 
  20  JORDAN - WT/TPR/S/206/REV.1 (1ST REVIEW, 27 JANUARY 2009) 
P. 45, para. 100 
Under Article 13D, investments in industrial, commercial,  and services  projects established in 
the free zones  enjoy: (i) exemption from income taxes of the project's profits on goods exported 
outside the Kingdom, transit trade, and sales or transfers of goods within the free zone; profits 
from sales of goods on the domestic market are excluded from the exemption; (ii) exemption from  
income and social services taxes on salaries to non-Jordanian employees; (iii) exemption from 
customs duties and other taxes and fees (except service and rental charges) for goods imported 
into or exported from the free zone; (iv) exempt ion from licensing fees and urban property taxes 
for construction projects; and (v) exemption from customs duties on goods produced in the free 
zone and offered for sale in the domestic market: the exemption is limited to the cost of materials 
and manufacturing expenses, provided this value is approved by the Free Zone Committee . 
P. 46, paras. 104, 106 and 108 
(a) Aqaba Special Economic Zone 
The Aqaba Special Economic Zone was launched in 2001 as a duty-free, low-tax, development 
zone, to serve as a model for sustainable development and to position Jordan as a leading business hub and tourism  destination in the region. The zone spreads over 375 square kilometres 
and Jordan's entire coast line of 27 km. […]. 
One of the primary strategic goals of the ASEZA is to attract domestic and foreign investment from 
the private sector. The original objective of attr acting US$6 billion by 2020 was accomplished in 
2006.
89 The ASEZA Law provides a number of privileges  and incentives for companies registered in 
the economic zone, including: (i) exemption from customs duties, other taxes and duties on 
imports, and general sales tax or similar taxes; (ii) exemption from social services tax, and land and building taxes; and (iii) flat income tax of 5%, subject to further tax exemptions for capital 
profits. Banks, financial services companies,  (re)insurance companies and land transport 
companies are subject to applicable national taxes. 
The Aqaba Development Corporation was established in 2004 as the investment arm of the ASEZA 
and is responsible for developing assets, infrastructure, and utilities within the economic zone, 
including the port of Aqaba and the city's international airport. The backbone of the zone is services, notably tourism, trade,  and logistics  services; its industrial base is small. […]. 
P. 47, paras. 113-115  
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
Incentives Under the Investment Promotion Law, Jordan is di vided into zones A, B, and C. Investments in 
zone C, the least developed area, receive the high est level of exemptions from income and social 
services taxes (75%). All agricultural, maritime transport,  and railway  investments are 
classified as Zone C, irrespective of location. […]. Investments along the shores of the Dead Sea 
and 5km inland are classified as zone A for the hotel  subsector, with 25% exemptions. […]. The 
exemptions may rise to 100% in certain areas, subject to approval by the Council of Ministers.
90 
The exemption period is ten years but can be extended. 
The following components of investments are exempt from customs duties, sales tax, and 
other fees and charges,  with the exception of municipal fees and taxes (Articles 2 and 6): 
imports of fixed assets (for 3 years)91; imports of spare parts up to 15% of the import value of the 
                                               
89 Aqaba Special Economic Zone (2007), p. 20. 
90 WTO document WT/ACC/JOR/33, 3 December 1999, paragraph 20. 
91 The exemptions also cover any increase in the value of the fixed assets resulting from price increases, 
freight charges or changes in exchange rates. S/WPGR/W/25/Add.6 
 
- 54 - 
 
  fixed assets (for 10 years); and fixed assets need ed for expansion, provided this results in an 
increase in production of at least 25%. 
Projects in the following sectors and sub-sectors are eligible for the exemptions under the 
Investment and Promotion Law: agriculture; call centers;  conventions and exhibition centers; 
hospitals; hotels; leisure and recreational compounds;  industry; maritime transport; 
railways; pipeline transportation; and dist ribution services for water, gas, and 
petroleum derivatives.  Projects in the hotel and hospit al subsectors are granted these 
exemptions once every seven years for purchases of furniture and supplies for renewal purposes 
(Article 8). 
P. 86, para. 121  
(b) Postal and courier services 
[…]. The main objectives are to maintain the provision of universal postal services but with 
increased private-sector participation; to reduce the dependence of the Jordan Post Company on government subsidies;  and to stimulate private-sector investment through progressive market 
liberalization. […]. The Government does not intend  to interfere with the provision and conditions 
of service outside the universal services area. 
P. 87, para. 127 
(iii) Transport (a) Maritime transport The [Jordan Maritime Authority (JMA)] is also responsible for the registration of vessels flying the 
Jordanian flag. A number of incentives  are offered: exemption from income tax for shipping 
management companies registered in Jordan; 10% reduction on berthing fees, and exemption 
from anchorage and waiting fees collected by the Port of Aqaba. Under its GATS schedule, Jordan 
has reserved the right to offer preferential servic e fees to Jordanian ships for pilotage, berthing, 
and docking. […]. 
P. 89, paras. 134 and 138  
(b) Road transport 
[…] Under a Council of Ministers decision, incentives  are provided for the modernization of the 
road freight transport  fleet, including exemptions from general sales taxes and registration fees 
for trucks exceeding 20 tonnes.92 […]. 
P. 92, para. 153 
Investments in the tourism  industry are eligible for incentives  under the Investment Promotion 
Law (Chapter III(4)(i)). For investment projects  at Aqaba, the Aqaba Special Economic Zone 
incentive scheme also applies (Chapter III(3)(v)). Restaurants outside hotels, travel agency and 
tour operator services, and specialized tourist transportation services are subject to a foreign 
equity ceiling of 50%, as under th e GATS commitments (Table II.3). 
P. 94, para. 156 
[…] The private sector manages over half of the hospitals in Jordan.93 Hospitals are eligible for 
incentives  under the Investment Promotion Law (Chapter III(4)(i)). The corporate income tax for 
hospitals is 15%. 
                                               
92 Ministry of Transport (2005) . 
93 Ministry of Planning and International Cooperation (2007), p. 164. S/WPGR/W/25/Add.6 
 
- 55 - 
 
  21  DOMINICAN REPUBLIC - WT/TPR/S/207/REV.1 (3RD REVIEW, 3 MARCH 2009) 
Pp. 63-64, paras. 215-216 
(iii) Incentives (b) Support for the development of micro, small- and medium-sized enterprises 
The Dominican Republic promotes the development of micro, small- and medium-sized enterprises 
(MSMEs) through financial support, training and te chnical assistance. The National Council for the 
Promotion of and Support to Micro, Small and Medi um-Sized Enterprises, belonging to the SEIC, is 
responsible for drafting and coordinating policy in this area and administers the PROMIPYME, 
one of the major programmes supporting smal l enterprises. The PROMIPYME provides 
comprehensive support, both financial and non-financial; its services include commercial loans for working capital, for building and extending buildi ngs and for purchasing machinery, equipment and 
vehicles for the business. It also offers technica l assistance, management training and consultancy 
services to companies. 
PROMIPYME loans are given to industrial, agro-industrial, commercial and services  enterprises. 
The maximum amount of credit is RD$3 mi llion (US$88,235); the terms range from 6 to 
60 months, and the annual interest rates are 8% for industry and agro-industry, 12% for the business sector and 13.5% for services.
94 […]. The authorities have explained that the 
PROMIPYME's interest rates are subsidized  by the Government with the aim of reviving the MSME 
sector […]. 
P. 65, para. 222 
(b) Other support and instruments 
The Tourism Development (Law No. 158-01 of 2001)  and amendments thereto (Law No. 184-02 of 
November 2002) are intended to promote the development of tourism  in priority regions (see 
Chapter IV(5)(vii)). According to a study by the Dominican authorities, the fiscal cost of 
implementing the Tourism Development Law is estimated to be RD$1.066 billion 
(US$31.4 million)95 […]. 
P. 91, para. 78 
(ii) Telecommunications (b) Legal and institutional framework  INDOTEL is also responsible for administering the Fondo de Desarrollo de las Telecommunicaciones 
– FDT (Telecommunications Development Fund), which was set up to finance 
telecommunications projects in low-income areas  with funds from the CDT. In 2007, FDT 
resources amounted to RD$759 million (about US$23 million). 
Pp. 103-104, paras. 150, 155 and 157 
(vii)  Tourism 
Tourism performs a vital function in generating jobs and hard currency and attracting foreign 
investment. […]. Investors in certain tourism  projects are given various tax incentives  such as 
exemption from import taxes and income tax and must employ Dominican professionals. The cost 
of these incentives to the Treasury will am ount to RD$1,066 millio n (some US$32.2 million) 
in 2008. 
                                               
94 Information viewed on line 28 March 2008 at: http://www.promipyme.gov.do . 
95 Idem. S/WPGR/W/25/Add.6 
 
- 56 - 
 
  Law No. 158-01 offers tax incentives  to investors in tourism  projects located in "low-growth 
areas" ( polos de escaso desarrollo ) and "new poles in high-potential provinces and localities".96 
The Law provides for exemption from duties and other taxes resulting from the importation of products needed to launch a project and various other national and municipal taxes, such as those 
relating to the constitution of company capital and capital increases, the transfer of property 
rights, and construction.
97 It also establishes exemption from income tax and allows companies 
engaged in activities other than tourism to deduct their investment in a tourism project from their 
net taxable income.98 
The Ministry of Finance estimates that the value of tax concessions  granted to the tourism sector 
will amount to RD$1,066 million (about US$32.2 million) in 2008.99 
22  SWITZERLAND AND LIECHTEN STEIN - WT/TPR/S/208/REV.1 (5TH AND 3RD REVIEW, 
12 MARCH 2009) 
22.1  Switzerland P. 36, para. 65 
(5) I NVESTMENT REGIME  
Cantons may grant tax breaks (including full tax holidays) for a maximum of ten years to newly 
created enterprises.100 In addition, the Swiss Confederation may grant tax breaks for the federal 
corporate income tax101, to industrial enterprises, or those providing services  to them, that create 
or redirect employment; and to projects that meet the criteria established under the law for regional economy. In general, the length and extent  of the federal tax breaks are directly linked to 
and dependent on the cantonal ones. Many cantons also offer incentives for investment financing 
such as guarantees; interest subsidies; loans at re duced interest rates or even interest-free loans; 
one-time contributions; and incentives for the pu rchase of land and premises (e.g. favourable 
conditions; cost contributions for the planning and development of land; and cost contributions for 
reuse of premises).
102 Different subsidy programmes for businesses are also available 
(Chapter III(4)(i)).  
Pp. 70, para. 128 
(i) Incentives and other assistance […] In 2006, contributions to the old-age insurance,  the disability insurance, health and social 
assistance accounted for 45% of total federal subsidies of Sw F 30 billion, followed by transport  
(18%), research  and development  (15%), and agriculture (12%). […]. 
P. 73, paras. 135-136 
(i) Incentives and other assistance 
Swiss  Post receives an annual subsidy for the delivery of newspapers with subscription. The 
annual subsidy was reduced from Sw F 80 million and fixed at Sw F 30 million in January 2008. 
Government-financed or subsidized research and development  programmes are also open to 
foreign companies with operations in Switzerland. 
                                               
96 Law No. 158-01 of 9 October 2001 establishing the Law on the promotion of tourism development for 
low-growth areas and new poles in high potential provin ces and localities and creating the Official Tourism 
Promotion Fund. 
97 Ibid., Article 4. 
98 Article 6, paragraph II. 
99 Ministry of Finance (2007). 
100 Article 23 of RS 642.14. 
101 Article 12 of the Federal Law on regional poli cy of 6 October 2006, that entered in force on 
1 January 2008. 
102 Osec (2008). S/WPGR/W/25/Add.6 
 
- 57 - 
 
  P. 112, para. 87 
(a) Banking and fund management services 
The 24 cantonal banks, which are fully or partly owned by the cantons, concentrate on credit, 
deposit business, and mortgages in their local areas103; they account for over 30% of domestic 
banking business; 21 cantons guarantee  their bank's liabilities.  In addition, cantonal banks 
benefit from preferential treatment regarding capital requirements and  taxation.  However, 
these special rules have been under examination for a number of years with a view to eventually 
abolishing them. […]. 
P. 124, para. 139 
(iv) Postal services […] Swiss Post receives an annual subsidy from the Federal Government for the delivery of 
newspapers with subscription; the subsidy was reduced from Sw F 80 million to Sw F 30 million in 
January 2008. […]. 
Pp. 127-128, paras. 158-159 
(v) Transport (b) Overland transport Reform of the Swiss rail system is to be achiev ed in two steps. […]. The second phase of rail 
reform, for which legislation is currently under preparation, is aimed at increasing interoperability 
with railway systems of neighbouring countries and reforming financial support  for the railway 
system. 
The Swiss Federal Railways (SBB) is a joint-stock company fully owned by the Confederation; it 
remains under the supervision of the Federal Council. SBB holds exclusive rights over 
long-distance passenger services. In exchange for this privilege, it is assigned specified basic tasks by the Federal Council, in particular a regular supply of basic rail transport services throughout the 
country. The Swiss Confederation and cantons also provide financial assistance  to rail transport 
suppliers for services ordered by the public authorities. The Confederation's total financial 
support  amounted to Sw F 2.9 billion in 2007, of which Sw F 1.7 billion was paid to SBB. […]. 
P. 129, para. 165 
(vi) Tourism 
Switzerland Tourism, a public corporation, is in charge of marketing and promotional activities; its 
annual budget is some Sw F 73 million of which Sw F 46 million comes from the federal budget. 
Innotour is a programme of the State Secretariat for Economic Affairs to improve the quality of 
and promote innovation in Switzerland's tourism subsector. Between 2003 and 2007, Sw F 28 million were spent on a total of 60 projects in areas such as quality management and 
reservation systems. The Swiss Society for Hotel Credit (Société suisse de crédit hôtelier), 
a state-owned corporation, provides subprime loans  to small- and medium-sized companies 
investing in tourist areas. 
                                               
103 Each canton, except for Solothurn and Appenz ell Ausserrhoden, has its own cantonal bank. S/WPGR/W/25/Add.6 
 
- 58 - 
 
  22.2  Liechtenstein 
P. 73, para. 138 
(i) Incentives and other assistance In Liechtenstein, 80% (Sw F 15 million) of public transportation  costs are financed with public 
funds. Support is also granted to Liechtenstein Tourismus, a state institution in charge of 
promoting tourism  […]. 
P. 128, para. 162 
(v) Transport (b) Overland transport […] Public transport  throughout the country is offered by privately owned Liechtenstein 
Busanstalt, which receives subsidies for its services. […]. 
 
P. 129, para. 168 
(vi) Tourism 
[…] Liechtenstein Tourismus, a state institution established by the Tourism Law of 2000, is the 
main promotional agency responsible for marketing tourism  in Liechtenstein. It is financed by 
annual public support  of Sw F 750,000 and revenue derived from the accommodation tax 
(Sw F 3 per night per person). Certain promotional activities are coordinated with Switzerland. 
Tourism activities are also marketed by local tourism initiatives and the municipalities. 
23  MOZAMBIQUE - WT/TPR/S/209/REV.1 (2ND REVIEW, 30 JUNE 2009) 
Pp. 23-24, para. 44 and Table II.2 
(iii) Investment incentives104 
The Code of Fiscal Benefits offers national and fo reign investors the same set of generic incentives, 
including: customs duty exemptions; tax credits;  and accelerated depreciation for new 
immovable assets (Table II.2). Additional benefits are available to investments in agriculture, 
tourism,  and large-scale projects (at least US$500 m illion), and subject to the creation of 
employment, in Rapid Development Zones (ZRDs), and IFZs (Chapter III(3)(vi)). 
                                               
104 Decree No. 16/2002 of 27 June 2002. S/WPGR/W/25/Add.6 
 
- 59 - 
 
  Table II.2 
Investment incentivesa, 2008 
Sector  Type of incentive 
Available to all approved investment projects:  
  Exemption from payment of import duties  on equipment included in class "K" 
of the Customs Tariff Schedule, but only when the goods to be imported are either not produced within the territory of Mozam bique or, if produced, do not satisfy the 
specific purpose or operational characteristi cs required or inherent in the nature of 
the project and particular activity to be developed and carried out; 
Investment tax credit equal to 5% of the total investment realized (exceptions apply, e.g. passenger vehi cles), for five years; 
Tax credit for the professional training of Mozambican workers, up to a maximum 
of 5% of taxable income, for the first five years of operation; 
Accelerated depreciation for new immovable assets; 
Tax deductible expenditure, 100% in Maputo and 150% in the provinces, for the construction and rehabilitation of road s, railways, airports, mail delivery, 
telecommunications, water supply, electric energy, schools, hospitals, and other works, for 10 years; Exemption from stamp tax for the alteration of the share capital and the articles of 
association, for the first five years of operation; 
Reduction of 50% in the rate of the real property transfer tax (SISA) for acquisition of immovable property used  in industry, agri-industry and hotel 
industry, provided the property is acquir ed within the first three years from the 
date of authorizatio n of the investment   
Additional benefits to approved investment projects in:  
Advanced technology Tax credit for investment in advanced technology equal to 15% of total income, for 
five fiscal years; 
Tax credit for the professional training of Mozambican workers, up to a maximum 
of 10% of taxable income, for th e first five years of operation 
Agriculture Until 2012, an 80% redu ction in the tax rate applicable to profits from agricultural 
ventures  
Hotels and tourism Investment tax credit equal to 8% of the total investme nt realized, for five tax 
years (including passenger vehicles) 
Large-scale investment 
projects (> US$500 
million or investments in public domain infrastructure carried out under the regime 
of a concession)
b Generally available benefi ts for 10 years, plus: Investment tax credit  of 5-10% 
of the total investment realized (with exceptions, e.g. passenger vehicles), rising 
to 10-15% if located in Gaza, Sofala , Manica, Tete, Zambézia and Nampula 
Provinces, and to 15-30% if located in Cabo Delgado, Inhambane and Niassa 
Province 
Rapid Development 
Zonesc Investment tax credit of 20% of the total investment realized (with exceptions, 
e.g. passenger vehicles), for the first five years of operation; 
Exemption from the real proper ty transfer tax (SISA) fo r acquisition of immovable 
property used in industry, agri-industry and hotel  industry, provided the property 
is acquired within the first three years from the date the investment was 
authorized 
a Industrial Free Zones are separately regulated (C hapter III(3)(vi), as well as mining and petroleum 
(Chapter IV(3)). 
b Investments in agriculture, aquaculture, lives tock agriculture and fo restry; agro-industry; 
manufacturing; construction of railway, road, port  and airport infrastructure and related equipment; 
tourism activities.  The project must create at least 500 jobs or induce the creation of at least 1,000 
jobs within three years, and must contribute to th e reduction of regional imbalances by choice of 
location. Large-scale investment project benefits cannot be cumulated with the additional benefits for 
approved investment projects in advanced tech nology, agriculture or in hotels and tourism. 
c Zambezi Valley, Niassa Province, Nacala District, Moçambique Island and Ibo Island. Activities in 
agriculture, forestry, aquaculture,  livestock raising, lumber production; game animal exploitation; 
water supply; electric energy generation, tran smission, and distributi on; telecommunications; 
construction of public utility infrastructure; hous ing; agricultural infrastructure; hotels; tourism-
related infrastructure; infrastru cture for commerce; industry; cargo and passenger transport; 
education; health. 
Source:  WTO Secretariat, based on the English translation of Decree No. 16/2002 of 27 June 2002. 
Viewed at: http:// www.mozbusiness.go v.mz/download.php?view.6  [16 June 2008]. S/WPGR/W/25/Add.6 
 
- 60 - 
 
  P. 43, para. 60 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(i) Incentives 
[…] State-owned enterprises supplying fuel (Chapter IV(3)(i)), electricity and water 
(Chapter IV(3)(ii)), transportation services  (Chapter IV(5)(iii)), fixed-line 
telecommunication and postal services  (Chapter IV(5)(ii)), and health and educational 
services,  may also benefit from state aid,  as does agriculture (Chapter IV(2)(ii)). The authorities 
finance subsidies from the budget, supported ea ch year by contributions from Mozambique's 
Program Aid Partners (PAPs); US$774.3 million has been pledged for 2009.105  
P. 74, para. 82 
(iv) Tourism 
Investment in tourism is covered by the Investment Code, and incentives  are provided under the 
Code of Fiscal Benefits (Chapter II(4)). Touris m activities are regulated under a law adopted in 
2004106, which requires suppliers of different tourism  products and services  to be licensed, 
subject to the payment of fees, and to observe stan dards of quality, as laid down by the Ministry 
of Tourism. […]. 
24  GUATEMALA - WT/TPR/S/210/REV.1 (2ND REVIEW, 20 APRIL 2009) 
P. 57, para. 130 
(iv) Subsidies and other export concessions Free zones The Free Zones Law gives firms situated in a zone the following benefits: exemption from tariffs 
and VAT on imports; exemption from ISR for a period of five years for trading companies and 
ten years for industrial and services  companies and management firms; exemption from VAT on 
sales between free zones or within them. Exports from free zones to other CACM countries and their respective free-trade zones are exempt from  import tariffs and taxes. Up to 50% of the 
goods produced in free zones may be sold on the domestic market or exported to other CACM 
countries subject to payment of the corresponding taxes. 
P. 58, para. 135 
Free Trade and Industrial Zone (ZOLIC) This programme is covered by Decree No. 22-73 of 21 March 1973 and its purpose is to promote 
economic development in the Department of Izabal , taking advantage of its geographical situation 
as Guatemala's only door onto the Atlantic Ocean. Benefits under this regime include exemption 
from income tax on income derived from activities as an administrator or user in the Free Trade 
and Industrial Zone (ZOLIC) and exemption from tariffs and VAT on the import of machinery, 
equipment, spare parts, components and accessories needed for production. The beneficiaries of 
these incentives are trading  and/or industrial firms  operating under this special regime. The 
programme is for a period of ten years. There is no statistical information on this programme. 
P. 88, para. 80 
(ii) Telecommunications The Government has given priority to the dissemination of information technology and 
telecommunications to rural areas and areas with poor service. The strategy is aimed at 
                                               
105 Africa News , "Mozambique donor partners pledge U$774.3 in grants". Viewed at: 
http://www.apanews.net/apa.php?p age=print_eng&id_article=64962  [2 October 2008]. 
106 Law No. 4/2004 of 17 June 2004 replaced Law No. 14/99 of 1 November 1999. S/WPGR/W/25/Add.6 
 
- 61 - 
 
  encouraging the private sector to make availabl e to each municipality at least one broadband 
Internet access point and to ensure that all rural localities have at least one public telephone. A fund, FONDETEL, financed from State resources,  has also been established for the purpose 
of subsidizing the telephone service in low-in come rural or urban areas.  Parties interested in 
receiving subsidies must submit specific telephony projects to FONDETEL. FONDETEL analyses all 
investment projects, giving priority to those likely to yield a greater social return. 
25  BRAZIL - WT/TPR/S/212/REV.1 (5
TH REVIEW, 11 MAY 2009) 
Pp. 77-78, paras. 281-282 
Funds for financing the north-east, north, and mid-west regions (FNE/FNO/FCO) 
The constitutional funds to finance productive activities in the north, north-east and mid-west 
regions (FNE/FNO/FCO) were created by Law No. 7,827 of 27 September 1989, as amended by Law 
No. 10,177 of 12 January 2001. Their aim is to contribute to the social and economic development 
of these regions. […]. 
The beneficiaries of loans backed by constitutional fund resources  are producers, companies, 
and production cooperatives that carry out […] tourism, infrastructure,  commerce and service 
sectors  of the north, north-east and mid-west regions. […]. Decree No. 6,367, of 30 January 2008 
fixes annual interest rates at 5% to 8.5% for rural operations, and 6.75% to 10% for other 
agri-industry, industrial operations, infrastructure,  tourism, commerce, and services.107 These 
rates may be subject to a reduction of 15% fo r payments until the due date, or 25% if the 
beneficiary operates in the north east semi-arid area. 
P. 81, para. 300 
(d) Other credit schemes The BNDES also maintains a number of schemes that facilitate access to credit at preferential 
conditions. Operations under these credit lines may be carried out directly by the BNDES, or 
through accredited financial institutions. […]. Other eligible projects: implementation, expansion, 
and modernization of fixed assets; offering or development of services for export;  foreign 
commercialization  of eligible goods; […]. 
P. 131, para. 184 
(iii) Telecommunications 
(b) Regulatory framework Telecom operators under a concession (the public regime) are mandated to provide universal and 
continuous services.
108 […]. The Universal Telecommunications Services Fund (FUST) was 
established to complement universalization efforts; FUST is funded, inter alia , by the federal 
budget  and compulsory contributions by the operators. The Fund reached some R$6 billion 
(US$3.3 billion) at the beginning of 2008. 
P. 137, para. 222 
The domestic shipping  industry also benefits from other incentives.  Under Provisional Measure 
No. 2,158-35 of 24 August 2001, EBNs' Freight receipts from the international transportation of 
merchandise in ships registered in the REB are exempt from the PIS and COFINS taxes. The construction, maintenance, repair, and modernization of REB-registered ships  in Brazilian 
shipyards benefit from the same fiscal treatment granted to exports of industrial goods in general 
(e.g. reimbursement of domestic indirect taxes). 
                                               
107 Ministry of Integration onli ne information. Viewed at: 
http://www.integracao.gov.br/fundos /fundos_constitucionais/index.asp . 
108 Law No. 9,472 of 16 July 1997 (LGT). S/WPGR/W/25/Add.6 
 
- 62 - 
 
  26  FIJI - WT/TPR/S/213/REV.1 (2ND REVIEW, 16 JUNE 2009) 
P. xi, para. 29 
Other extensive tax incentives, also of dubious economic merit, are intended to encourage 
investment, often targeting priority sectors (e.g. tourism and audiovisual industry) , and are 
sometimes subject to minimum local-content or ex port requirements. These, including widespread 
generous tax holidays, were recently extended , and a new tourism package will replace the 
scheme that terminates at the end of 2008. […].  
P. xiv, para. 40 
[…] The IT and audiovisual sectors  receive substantial tax concessions, to be increased from 
2009. […]. 
P. 12, para. 21 
(ii) Privatization and reform  of state-owned enterprises 
State-owned enterprises (SOEs) conduct many business activities, e.g. sugar production, ship 
building, shipping,  forestry, banking, insurance and finance,  power generation, sea ports, air 
transport,  rice milling, cattle raising, crop production and aquaculture, telecommunications 
and newspapers  (Chapter III(4)(viii)). […]. Government support  to SOEs via loans, standing 
debt guarantees, equity injections,  and ad hoc explicit and timely guarantees on individual debt 
instruments entail substantial government contingent liabilities.  
P. 41, para. 51 
(iii) Incentives All exporters, including of services,  receive generous income tax exemptions intended to 
encourage investment.
109 […]. Registered foreign (and domestic) investors must apply to the Fiji 
Islands Customs and Revenue Authority (FIRCA) for duty and tax concessions, including for tourist-related  benefits under the Hotels Aid Act (previously administered by the Ministry of 
Tourism).  […]. The FTIB promotes the Kalabu ICT Park for establishing back-office operations by 
providing a ten-year tax holiday to firms setting up software development  business processing 
operations. 
P. 72, paras. 85-86 
(ii) Investment incentives  
Generous investment incentives apply by way of income tax concessions (Sixth Schedule of the 
Income Tax Act) (Table AIII.1). Incentives are seen as an integral part of Fiji's industrial policy of 
increasing investment and exports, and seemingly deliver substantial assistance. Many incentives 
were part of the Government's Investment Incentives package introduced in 2001. Some apply more generally to businesses while more generous incentives target activities or sectors. For 
example, the Fiji Islands Audiovisual Commission (FIAVC), formed in 2002 to develop the 
audiovisual  industry (FIAVC Act 2002), administers tax incentives. The ICT/IT industries  also 
receive general incentives from January 2006 until end-2012. […]. 
[…] Moreover, the 2009 Budget extended such incentives, including: a new tourism  incentive 
package including 10-year tax holidays (extendable to  20 years if Fijian indigenous participation is 
at least 25%) to replace the previous scheme that expired at end 2008; […].  
                                               
109 However, a foreign investor survey showed so me 75% of investment pr ojects catered for the 
domestic market (FIAS, 2005a, p. 20). S/WPGR/W/25/Add.6 
 
- 63 - 
 
  P. 73, para. 89 
(iii) Other forms of pr oduction assistance 
[…] Investors in new hotels,  including renovations and refurbishment of existing hotels, may elect 
to receive a subsidy of 7% of the project's total capital expenditure (excluding cost of land) in lieu 
of the 55% investment allowance (Hotels Aid Act). […]. 
P. 81, para. 118 
(viii) State-owned entities and privatization 
Government supports SOEs via loans, standing debt guarantees (e.g. activated by Fiji Sugar 
Corporation in 2001), equity injections (e.g. Amalgamated Telecom  Holdings in 2000), and ad hoc 
explicit and timely guarantees on  individual debt instruments. Fiji Development Bank borrowings 
are government guaranteed. Government contingent liabilities from SOE guarantees rose to 
F$3.3 billion at end 2007 (56% of GDP), mainly relating to […] Fiji Maritime and Ports 
Authority  (F$41.4 million); and […]. 
Pp. 85-86, paras. 7-8 
IV. TRADE POLICIES BY SECTOR (1) I
NTRODUCTION  
[…] A 21.9% subsidy was recently introduced for bus operators  f r o m  J u l y  t o  e n d  2 0 0 8 .  
Non-profitable [ sea shipping ] routes are serviced by government subsidies paid to tendered 
private operators. […]. 
[…] Tourism,  which is suffering from political developments, benefits from generous taxation 
concessions; a new tourism incentives package was announced in the 2009 Budget, again 
involving substantial investment allowances and tax holidays. 
P. 113, para. 98 
(v) Transport 
(a) Road 
[…] In lieu of increased bus fares in light of risi ng fuel costs, the Government introduced a 21,9% 
subsidy to bus operators  from July to end 2008. They also benefit from long-standing 
concessions and rebates, including an F$0.18 cents per litre fuel concession and tariff/tax 
concessions on new chassis/engines and identifiable fixtures and components.110 The revenue 
forgone from these concessions/rebates totalled F$2.6 million from January to May 2008. […].  
P. 114, para. 101 
(b) Maritime transport […] A Shipping  Franchise Subsidy Scheme,  introduced in 2003, provides regular and reliable 
shipping services on non-viable routes […]. Th e services are provided by the Fiji Shipping 
Corporation Ltd by contracting out to commercial operators. […]. 
                                               
110 Fiji Government , Press Release, Government to provide su bsidy to bus operators , 3 July 2008. The 
concessions/rebates provided by Government to the bu s industry amounted to F $2.6 million for the period 
January to May 2008. S/WPGR/W/25/Add.6 
 
- 64 - 
 
  P. 116, para. 106 
(c) Air transport 
[…] In 2004, Government approved air subsidies to  airlines  operating on identified 
uneconomical routes; the subsidy was based on an open one-year tender to all licensed air 
operators in Fiji. The amount of the subsidy was some F$0.3 million in 2007. Eight uneconomical 
routes are subsidized (Vanuabalavu, Cicia, Moala, Koro, Gau, Lakeba, Ono-i-Lau, and Rotuma). 
Pp. 117-118, para. 114 
(vi) Tourism Tourism  has benefited from generous taxation conce ssions, with the SLIP package extended until 
end-2008 to be replaced from 2009 with a possibly more generous scheme, also including tax holidays, announced in the 2009 Budget (Chapter III).
111 Current arrangements comprise standard 
allowances and a hotel incentives package. Standard allowances cover a 55% investment 
allowance on total capital expenditure provided  revenue is not shifted offshore; a 150% tax 
deduction on expenditure for environmental protection and community support; and a 125% tax 
deduction on expenditure to upgrade public infrastructure e.g. roads, sewage systems and water 
supplies. The hotel incentive package consists of a seven-year tax holiday for capital investments of at least F$10 million and import duty exempt ions on all capital goods, including plant, 
machinery and equipment, used in the investment project. The incentives to apply from 2009 
consist of two parts: a Standard Allowance, which provides for an investment allowance of 55% on total capital expenditure (provided no revenues are shifted offshore); and a Hotel Incentive package, which grants a ten-year tax holiday on projects of at least F$7 million, as well as import 
duty exemption on all capital goods not available in Fiji.
112 Increased hotel and gambling turnover 
taxes apply (Chapter III). The industry is also  assisted by a number of customs incentives 
e.g. 10% tariff on building materials, furnitur e, and fittings, and no import excise tax. 
Appendix Tables, pp. 135-137, Table AIII.1 
Table AIII.1 
Main investment incentives, November 2008 
Sector Details 
A. Tariff and other concessions 
Tourist -related 
activities Facilities subject to Short Life Invest ment package (SLIP) may import plant 
and machinery (excluding furniture and motor vehicles) exempt from all duties until end-2008. To be replaced by 2009 Hotel Incentive Package (announced in 2009 Budget) that will allow all capital goods (including capital equipment, 
plant and machinery) not available in Fiji to be imported duty free. 
Concessionary tariffs apply under Code 235 (Customs Tariff Act) of 10% on building materials, furnishing and fitti ngs, equipment including front office 
equipment, room amenities, kitchen and dining room, and equipment and utensils (in 2007 concessions only applied if goods unavailable domestically); of 3% for specialized boats and vessels including water sports equipment unavailable locally; and of 5% on hea vy plant and machinery for developing 
resorts if re-exported after completion.  
[…]  
                                               
111 FIRCA had estimated that the tax incentives for tourism had cost F$93 million in revenue forgone 
from 1998-03 (FRC, 2004). 
112 The 13-year tax holiday provided for investments in the newly established Tax Free Region will be 
increased to 20 years on hotel developments with at least 25% equity by indigenous Fijian land owners. S/WPGR/W/25/Add.6 
 
- 65 - 
 
  Sector Details 
B. Investment allowance 
Agricultural, forestry, 
marine, rural manufacturing and information technology Businesses may claim a 40% investment allowance on capital asset purchased 
(excluding land, buildings, passenger cars and trading stock) above F$50,000 annually. It began in 2001 and was extended from end 2005 to end 2008. Eligible taxpayers include […] information technology (IT) businesses, 
including call centres  (ticketing, ordering and reservation services), 
database records and list management, data entry and processing, 
website development and management,  software programming and 
design, tele-medicine, and internet services provision  (retailing and 
wholesaling of IT products, and the sale, care, repair or service of any item are 
excluded). Extended until 2011 (2009 Budget).  
Tourism -related 
businesses  Tourism-related investment receive a 55% investment allowance on total 
capital expenditure in new hotels including renovations, refurbishments and extensions as well as international retiree facilities (Eleventh Schedule, Income Tax Act). It must be claimed within five years of completing the building (any 
excess can be carried forward for eight years). Extended to 2009 (2009 
Budget).  
[…] 
C. Income tax holidays and exemptions 
Tourism -related 
activities As an alternative to the investment allowa nce tourist facilities are eligible for a 
tax holiday of 20 years (full SLIP) or 10 years (half SLIP), introduced in 1996. It covers construction by end 2008 of new hotels, retirement facilities and 
hospital resorts, with a minimum investment of F$40 million (full SLIP) or 
F$10-40 million (half SLIP), excluding land. To be replaced in 2009 by 2009 Hotel Incentive Package (announced in 2009 Budget), which includes a ten-year tax holiday for capital investments of at least F$7 million. Hotel developments in Vanua Levu and the maritime islands with minimum 25% Fijian indigenous equity will receive 20-year tax holiday.  
Film-making and 
audiovisual activities Tax incentives (Sixth Schedule, Income Tax Act) include income tax 
exemptions for making F1 or F2 audiov isual products, subject to meeting local 
content and certain minimum local expenditure requirements.b Net income 
from F1 productions (i.e. made "wholly or substantially" in Fiji with "significant" local content is exempt from tax until th e taxpayer receives a 60% return on 
capital (normal tax applies thereafter).
c Net income from F2 productions (i.e. 
where the entity has secured distribution in at least two "significant" international markets and a guaranteed minimum investment return is exempt 
from tax until the taxpayer receives a 50%  return on capital (thereafter taxed 
at normal rates).
d Licensed audiovisual producers are exempt from tax on 
income derived from production performed in a studio city zone (an area declared by the Minister for the purpose of developing infrastructure, services 
and resources for the audiovisual indust ry and tourist attractions, hotels, 
residential accommodation, sporting facilities and amusement parks).
e The 
Minister also can exempt or reduce the tax rate for certain periods income of 
"qualifying employees" where considered  expedient for developing the film-
making industry.f Approved individuals derivi ng income from audiovisual 
productions, including wages, fees and royalties, are also exempt from tax. 
Income from sale of a company or business in a studio city business within eight years is taxable at 20% if sold wi thin two years, 15% within four years, 
10% within six years, and 2.5% within eight years. Film tax rebate of 15% raised to 35% from 2009 (2009 Budget). 
ICT/IT activities 10-year tax holidays apply to companies located in any ICT Economic Free 
Zones (temporary studio city zones) to develop software or to operate ICT call 
centres.g Two zones have been declared in Suva (ATH located in Riffle Range, 
Vatuwaqa, and USP in Statham Street Vatuwaqa). The 2007 Budget declared the Kalabo Tax Free Zones an ICT zone to  enable ICT businesses to receive a 
10-year tax holiday provided they em ployed at least 50 staff for any six 
months of the financial year and export  at least 60% of sales (operates from 
January 2007 until end-2016). ICT firms locating outside zones receive income tax exemptions ranging from 80% to  40% depending on employee size.
h 
Anomalies on incentives available inside and outside the Kalabu Zone to be 
rectified from 2009 and tax holiday extended to 13 years (2009 Budget).  
[…]  S/WPGR/W/25/Add.6 
 
- 66 - 
 
  Sector Details 
Small and micro 
enterprises (SMEs) From 2006, SMEs in agriculture […], tourism  (sea cruise and river tour 
operators, sea tour operators) and supportive projects are exempt from 
income tax subject to a maximum annu al turnover threshold of F$300,000 
(increased from F$200,000 from 2008). 
[…]  
D.  Special depreciation and deduction provisions  
  
Tourist -related 
activities Facilities subject to SLIP or the investment allowance may claim a special 
depreciation allowance in each of the fifteen years immediately succeeding the 
year of expenditure (excluding land). 
[…]  
Film-making and audiovisual activities Capital expenditure on F1 and F2 audi ovisual productions are subject to an 
immediate 150% or 125% income tax deduction, respectively. Immediate deduction of 200% for contributions to the Fiji International Film Festival being held in 2010 (2009 Budget).  
[…]  
E. Other 
Tourist -related 
businesses Facilities subject to the SLIP or the investment allowance may carry forward 
losses for up to 13 years but only ag ainst income from that hotel business 
(standard carry forward of  losses is eight years). 
Film-making and 
audiovisual activities As an alternative to other tax incentives, audiovisual producers are entitled to 
a 15% tax credit or rebate on qualifying production expenditure (as under 
Division 4) incurred in Fiji. Since January 2004, the requirement was minimum 
spending in Fiji of F$250,000 (F$50,000 before 2004). If the qualifying Fiji expenditure on the film exceeds F$25 million the maximum allowable tax rebate is F$3.75 million. The claimant of  the rebate must ha ve been the sole 
company either carrying out or making the arrangements fo r carrying out all 
the activities necessary for making the film. If the total qualifying production expenditure was below F$25 million then the company's total qualifying Fiji production expenditure must be at least 35% of the firm's total production expenditure on the film.
i Fiji residents that do not hold a Fijian broadcasting 
license in radio or television or non-residents are eligible.  
[…]  
a "Substantial transformation" means resulting in the good produced having a different HS classification 
than the raw materials; it excludes repa ckaging, rebottling and timber logging.  
b  Production activities explicitly include computer software as well as interactive websites and other e-commerce and telecommunications operations for use solely in relation to eligible audiovisual products. The development of e-commerce websites and e-commerce bu sinesses used solely for audiovisual activities are 
deemed to be audiovisual products. c  For an audiovisual production that commenced between 2001 and end-2006, the minimum share of the project's budget to be spent in Fiji was 35% for larg e format or feature movies  and broadcast television 
programmes; 45% for direct to video programmes or vi deo disc programmes; and 50% for audio recordings or 
computer programs. These shares were increased for project's commencing from 2007 until end-2010 to 55%, 75% and 80%, respectively. From 2011 these shares will  be reduced to 65%, 85% and 80%, respectively. 
d Guaranteed minimum level of return from internat ional distribution must be from 2001 to end-2006 5% 
for large format films; 15% for feat ure films; 20% for broadcast televisi on programmes; 25% for direct to 
video programmes or video disk programmes; and 15% fo r an audio recording or computer programs. From 
2007 until end-2008 the rates were increased to 25%, 35 %, 40%, 45% and 30%, respectively, and from 2009 
a uniform minimum rate of 45% is to apply to all audiovisual productions. Also, to be eligible, the minimum 
share of the budget to be spent in Fi ji must be 35% for large format and feature films or broadcast television 
programmes, 40% for direct to video programmes or vi deo disk programmes, and 45% for audio recordings or 
computer programs for investment between 2001 and end 2006; 45%, 55% and 60%, respectively, for 
investment from 2007 until end-2010; and 55%, 65% an d 65%, respectively, for investment from 2011.  
e To be eligible, Fiji citizens and non-citizens must earn audiovisual earnings pre-tax of F$100,000 in the year of assessment and hold assets in the zone in that year of at least F$250,000 (including land). A non-citizen must be resident in the zone for at least 60 days in the assessment year  and maintain a permanent 
place of residence in the zone. Citizens must be a resident in the zone for at least 183 days in the assessment y e a r ,  o r  6 0  d a y s  i f  t h e y  d e r i v e  a t  l e a s t  8 0 %  o f  a u dio visual earnings from outside Fiji, and maintain a 
permanent place of residence in the zone.  f Non-resident employees of a fi lm company that are in Fiji un der contract to make a film.  
g ICT businesses include call centres (ticketing, orderi ng and reservation services ), data base records and 
list management, data entry and pr ocessing, web site development and management, software programming S/WPGR/W/25/Add.6 
 
- 67 - 
 
  and design, tele-medicine services, internet services but not the retailing and wholesaling of IC products and 
the sale, care, repair or service of any item. h Firms employing at least 101 employees receive an exemption of 80% of their income, employing at least 60 to 100 60%, and from 10 to 59 employees 40%.  i  Where the firm's total qualifying expenditure on the film was at least F$25 million, the company must 
have carried out or arranged to be carried out all the activities in the Fiji Islands that were necessary to make the film.   Notes: Includes measures announced in the 2009 Budget, which are generally scheduled to operate from 2009.   Source: Ministry of Finance and National Planning (2008), Economic and Fiscal Update: Supplement to 
the 2009 Budget Address , November, pp. 111-5. Viewed at: 
http://www.mfnp.gov.fj/Documents/2009_Budget_Supplement.pdf , and information supplied by 
the Fijian authorities. 
27  SOLOMON ISLANDS - WT/TPR/S/215/REV.1 (2ND REVIEW, 24 JUNE 2009) 
Pp. 40-41, paras. 106, 109 and 114 
(iii) Incentives A wide range of tax exemptions are available to  businesses. Under authorizing legislation, the 
authorities have wide discretion in granting exemptions, but guidelines issued in 2006 seek to 
reduce that discretion. Some income tax exemptions are granted on the basis of 
domestic-value-added criteria; others are available for specific activities, including hotels  and 
agricultural and fisheries firms. […]. 
Under the Income Tax Act, firms may apply for additional income tax exemptions, including 
a 200% deduction of training and education expenses, and a 150% deduction of domestic transport costs. Also, tourist hotels, resorts, and related projects  are eligible for a five-year 
income tax exemption. […]. 
Solomon Islands Government provides ad hoc assistance to state-owned enterprises, for example 
through preferential loans, loan guarantees, and tax exemptions.
113 In general, the purpose is to 
provide relief to enterprises in financial difficulty. 
P. 64, para. 97 
(iv) Maritime transport and ports 
Maritime transport is key for Solomon Islands' international and domestic trade. […] Solomon 
Islands subsidizes certain domestic routes, considering that they cannot be operated on 
a commercial basis but are essential for social and economic reasons. […].  
P. 65, para. 107 
Solomon Islands does not regulate tariffs for international or domestic maritime transport.  It 
subsidizes certain domestic maritime transport services, recognizing that many routes are 
essential for social and economic reasons, but cannot be operated on a commercial basis. The 
Ministry of Infrastructure Development determin es the operators and routes targeted by the 
subsidy. The amount of the subsidy is the cost of  service less the revenue received from passenger 
and cargo fees. […]. 
P. 66, para. 108 
(v) Air transport and airports […] The State owns the only national airline, which is in a weak financial position partly because it 
continues to service non-viable domestic routes. The country's only international airport (Honiara International) is owned and managed by the State. 
                                               
113 International Finance Corporation and The World Bank Group (2005). S/WPGR/W/25/Add.6 
 
- 68 - 
 
  28  NEW ZEALAND - WT/TPR/S/216/REV.1 (4TH REVIEW, 10 JULY 2009) 
P. 60, para. 90 
(4) O THER MEASURES AFFECTING PRODUCTION AND TRADE 
(c) Tax incentives 
New Zealand's tax system has relatively few concessions by international standards as a result of 
its broad-base-low-rate approach to tax policy. However, in addition to tariff and excise duty concessions (sections (2)(iii)(e) and (4)(ii)(b)) under certain concessionary treatment, the timing 
of capital expenditure deductions (e.g. for R&D) is accelerated (e.g. in respect of capital equipment 
used in petroleum and mineral mining, forestry, and film productions ).  
P. 93, para. 71 
(b) Maritime transport 
In May 2008, the Government announced its strategy for coastal shipping , under which it seeks 
to increase the share of coastal shipping in inte r-regional trade to 30% by 2040. As part of the 
strategy, the Government established a sea freight development unit, in March 2008, which acts 
as a focal point for the industry. In addition, access to funding  (NZ$36 million over four years) 
and information gathering and dissemination is being improved. 
P. 95, para. 79 
(v) Tourism Local governments are also active participants in the tourism industry. They fund promotional 
activities, mainly through regional tourism organizations (RTOs) […]. 
29  MOROCCO - WT/TPR/S/217/REV.1 (4
TH REVIEW, 13 AUGUST 2009) 
P. 59, paras. 93-94 
(iv) Export subsidies, promotion and support 
Morocco gives several incentives to enterprises whose activities are export-oriented.  These 
include fiscal incentives under the Investment Charter114, the free export zones (ZFEs) regime and 
customs regimes (REDs), as well as exchange facilities (i.e. accounts in convertible DH or in foreign currency) and export insurance. 
Under the Investment Charter, ente rprises exporting either goods or services  are eligible for total 
exemption from corporation tax (IS) and income tax (IR) for five years, after which there is a 50% 
reduction in the IS (for that part of turnover that is exported) and a 20% reduction in IR.
115 […] In 
general, exports (including export services) are exempt (without any right to deduction) from 
payment of VAT. 
                                               
114 Dahir No. 1-95-213 of 8 November 1995, enacting Framework Law No. 18-95 containing the 
Investment Charter. 
115 The Investment Charter defines th e general framework determining the limits of the incentives that 
may be granted. For example, enterprises exporting goods or services are eligible fo r tax incentives that may 
extend to full exemption from corporatio n tax (IS) and income tax (IR) for the amount of their turnover that is 
exported over a period of five years, and then a 50%  reduction. For enterprise s exporting services, these 
exemptions and reductions only apply to that part of the turnover expo rted and paid in foreign currency. S/WPGR/W/25/Add.6 
 
- 69 - 
 
  Pp. 59-60, paras. 95-97 and Table III.6 
(a) Free export zones 
Free export zones (ZFEs) were created by La w No. 19-94 of 26 January 1995. […] At present, 
there is one ZFE operating in Morocco, situated in Tangiers, the ZFT. Another two are being put 
established, one in Nador and the other in Tangiers airport. Four more ZFEs are planned in the 
Tangiers-Mediterranean Special Development Zone; they will deal only with logistics.  
The ZFT116 covers 345 hectares and comprises an industrial in-bond zone and a logistical zone. It 
is operated by the Tangiers Free Zone Company (TFZ), a consortium made up of Moroccan private 
entities.117 Companies wishing to set up in this zone must be engaged in at least one of the 
following sectors: agro-industry; textiles and leather; chemicals and related industries; the metal, engineering, electrical or electronics industries; or in services  related to the aforementioned 
activities.
118 In 2008, there were 379 companies in all in the Tangiers ZFE, with a total turnover of 
over €1 billion and 42,367 employees. At the end of December 2007, the sectoral breakdown of 
the companies there (353 in all) was as follows: services (146);  metal, electrical and engineering 
industries, particularly the automotive and aeronautical industries (90); textiles and leather (78); 
chemicals and related industries (28) and agro-industry (11). 
In order to be eligible for ZFE status, enterprises must export the majority of their production; 
services  enterprises working with free zone enterprises are also given ZFE status. […] Goods 
entering or leaving ZFEs are exempt from all du ties and taxes on imports, exports, production, 
movement or consumption. There are also a certain number of other fiscal measures (Table III.6). The benefits given to these enterprises may not be  cumulated with other benefits under different 
legislative provisions on investment. Likewise, reduced rates of tax may not be cumulated with 
other tax benefits. Enterprises are free, however,  to opt for the most beneficial tax regime. 
Table III.6 
Fiscal incentives given to  free export zones (ZFE) 
Tax Benefit 
Registration and stamp duty Exemptio n for acts relating to the constitu tion or increase of capital for 
companies established in ZFEs. 
Exemption for land purchased to carry  out investment projects in ZFEs, 
provided that it remains the property  of the enterprise for 10 years as 
of the date of approval. 
Corporation tax (IS) Total exemption for the fi rst five years of operation and a rate of 
8.75% (instead of the usual rate of 30%) for 20 consecutive years following the fifth year of total exemption. 
Income tax (IR) Total exemption for the first five years of operation and a reduction of 
80% on the tax payable for the subsequent 20 years. 
Deduction at source for revenue 
from shares, capital participation 
and similar earnings. Exemption for dividends and other si milar share revenue when paid to 
non-residents. 
Such dividends and revenue are subjec t to a 7.5% flat rate for the IS 
or the IR when pa id to residents. 
Value added tax (VAT) Exemption with the righ t to deduction for products delivered and 
services supplied to ZFEs and comi ng from the territory where tax is 
payable. 
Professional taxa Exemption from this tax for the 15 years immediately following the 
start of operations. 
a In December 2006, the professional tax replaced the tax on business licences and the urban tax. 
Source: Directorate-General of Taxation, Le dispositif d'incitations fiscales  (The tax incentives scheme). 
Viewed at: 
http://www.invest.gov.ma/upload/10f/1003/incitations%20_fiscales_%20Francais_%202007.pdf  
                                               
116 The ZFT was created by Decree No. 2-96-511 of 10 November 1997; its rules of procedure were 
approved by a Ministerial Order of 5 June 2000. It was set up under the priority programme for infrastructure, 
which also planned another 300-hectare ZFE project in Nador (Decree No. 2-96-512, of 20 November 1997). 
117 These are: BCM, BMCE, SNI, the African In surance Company, the Royal Moroccan Insurance 
Company and the Moroccan Inter-Professional Retirement Fund. 
118 Decree No. 2-96-511 of 10 November 1997, creating the Tangiers Free Export Zone. S/WPGR/W/25/Add.6 
 
- 70 - 
 
  P. 66, para. 122 
(ii) Incentives 
Fiscal incentives (including export subsidies) are still granted for agricultural products (Chapter 
IV(2)). There are also sectoral incentives in the mining sector (Chapter IV(3)(i)), the energy sector 
(Chapter IV(3)(ii)) and in certain branches of the services  sector (for example, tourism  and 
transport  (Chapter IV(5)(iii) and (ii)). […]. 
P. 104, para. 121 
(ii) Transport (a) Road transport In order to lower transport costs, the Government is continuing to provide various tax breaks,  
such as exemption from VAT on international transport operations and the supply of related 
services; exemption from VAT on imported coaches, lorries and equipment needed for 
international road transport activities; exemption from VAT on purchases of coaches, lorries and related capital goods; imposition of a minimum customs tariff (2.5%) on imports of trailers for the 
transport of textiles and clothing products for export; and refund of VAT on the diesel fuel used by 
public road transport companies and enterprises en gaged in the road transport of goods on their 
own account. 
P. 109, para. 146 
(b) Air transport 
Since 2005, ONDA has introduced an incentives poli cy to develop air traffic. These measures will 
remain in effect until 2012 and include reductions of up to 100% on certain types of airport fees 
for establishing new routes or increasing flight frequencies. Tax reductions  (ranging from 5 to 
20%) are also granted depending on the number of movements per year on the international network within the context of major account measures. Tax reductions ranging from 2 to 6% are 
granted depending on the flight volumes handled by each airport, as volume incentives. […]. 
P. 112-113, para. 160 and Table IV.9 
(iii) Tourism 
Given the importance of tourism, investors are offered various incentives. Thus, they can take 
advantage of tax concessions, State financing, and other benefits  made available by the 
Investment Charter (Chapter II(5)), the Finance Laws and the Hassan II Fund or by specific provisions (Table IV.9). The measures adopted since Morocco's previous TPR include the 
establishment of three investment fund management companies: H Partners, a subsidiary of 
Attijariwafa Bank specializing in capital investment (established in 2005), Madaef belonging to the CDG (established in 2006) and Actif Invest, a subsidiary of the Banque marocaine du commerce 
extérieur  - BMCE (Moroccan Foreign Trade Bank) (established in 2004), the latter being Morocco's 
leading real estate and tourism fund manager. The public and parapublic sectors are expected to contribute to their capital. S/WPGR/W/25/Add.6 
 
- 71 - 
 
  Table IV.9 
System of incentives for investment in tourism 
 Description 
Registration fees Reduction in the fees for establishing to urism companies, with a rate of 0.5% 
 Exemption from registration fees for pu rchase deeds for land to be used for 
investment projects within a maximum period of 36 months 
 Reduced rate of 1% for registration fees for emphyteutic leases on properties to be 
used for hotels and ancillary buildings 
 Reduced registration fees for the sale of businesses 
Customs duties Exemption for investme nts amounting to DH 20 million or more under agreements 
concluded with the Government 
Corporation tax 
(IS) and general income tax (IGR) Total exemption from IS or IGR on the part of the taxable base corresponding to the 
turnover of hotel companies in foreign cu rrency over a period of five years and a 
50% reduction as fro m the sixth year 
 Reduction of 50% in IS for five years for all companies setting up in the following 
provinces: Larache, Nado r, Tangiers, Asilah, and Tétouan, among others 
 Reduction of 50% in the IS, without any time limit, for any company setting up in 
the province of Tangiers, which can be combined with the aforementioned benefits 
VAT Exemption for capital goods, equipment an d tools, purchased lo cally or imported, 
entered in a capital asset account and used for operating purposes  
 Rate reduced to 10% for hote l enterprises, with right to  deduction in respect of 
lodging, restaurant, and hotel and tourist facility letting operations  
Business tax and urban tax Total exemption, for a period of five year s, for investment in business creation and 
for any additional investment or extension 
Financing Partial State participation, through investment agreements, in the expenditure 
associated with the purchase of the land, the completion of the external infrastructure and professional traini ng for enterprises whose investment 
programme is very considerable by re ason of: the amount (more than DH 
200 million), the number of jobs created, the location, the technology or its contribution to the protection of the environment 
 Subsidy equal to 50% of the cost of the land (with a ceiling at a maximum of DH 
250/m.²) for hotel investors for the purchase of sites for tourist facilities  
 Investment credit for building, extensio n and renovation projects, within the 
framework of agreements conclude d with the banking institutions 
 Availability to developers of land for serv icing tourist resorts an d areas at attractive 
prices, as well as the total funding or participation in the cost of off-site infrastructure needed to supply drinking water and power or create road links 
 Guarantee from the Loan Guar antee Fund for loans intended to finance investment 
projects initiated by young Moroccan entrep reneurs, acting individually or through 
companies and cooperatives 
 Credit for renovation through the Fonds de rénovation des unités hôtelières,  
"RENOVOTEL" (Hotel Unit Renovation Fund), at  a preferential interest rate of 2% per 
annum (excl. VAT) (with a ceiling fixed by categories of accommodation) 
Other benefits Free convertibility guaranteeing foreign investors total freedom to transfer profits 
net of tax (capital, capital gains and income) 
 Reduction of 100% on dividends and ot her yields from holdings received by 
enterprises 
 Reduction and exemptions fo r capital gains and profits ma de when disposing of or 
selling fixed assets 
 Ceiling of DH 50 million on the basis used to calculate the rental value of taxable 
investment 
 State funding of the off-si te infrastructure needed to develop new tourist areas 
 Partial State funding of hotel staff training. 
Source: WTO (2003), EPC Maroc; and Ministry of Tourism, online information, Axes stratégiques  
(Strategic Outlines). Viewed at: http://www.tourinvest.ma/ main.php?Id=15&lang=fr ; and 
information provided by the Moroccan authorities. 
 S/WPGR/W/25/Add.6 
 
- 72 - 
 
  P. 122, para. 194 
(a) Banking services 
Offshore banks  benefit from several tax incentives, such as exemption from registration fees and 
stamp duty on deeds when constituting or increasing capital or purchasing property (headquarters 
and branches), provided that these remain on their assets balance sheets for ten years. They are 
also exempt from VAT on the local purchase of capital goods and supplies, and from duties and taxes on imported equipment, furniture and capital goods needed for their operations. Dividends 
paid to shareholders, as well as interest on customers' deposit accounts and investments in 
convertible foreign currencies and on loans granted by offshore banks are also exempt from levies. […]. 
30  GUYANA- WT/TPR/S/218/REV.1 (2
ND REVIEW, 10 AUGUST 2009) 
P. 45, para. 109 
(iv) Incentives and other government assistance 
Incentives in Guyana largely take the form of fiscal incentives  granted under various laws to 
a relatively large number of activities. The Minister has discretion, subject to the specific provisions 
of the law, to grant corporate income tax holidays to a wide range of sectors. Because of this, and 
given Guyana's fragile fiscal situation, it would be useful to estimate the revenue forgone and 
publish these estimates. Government provision of financial assistance to companies in the form of 
concessionary loans and grants is limited. 
P. 46, para. 113 
The 2003 Act, also set limitations on the conditions under which Ministers could grant tax holidays 
under the Income Tax (In Aid of Industry) Act: corporation tax holidays could only be granted 
when an activity created new employment in certain regions and represented a new economic activity in specific fields.
119 
31  ZAMBIA - WT/TPR/S/219/REV.1 (3RD REVIEW, 8 OCTOBER 2009) 
P. 44, para. 67 
(b) Zambia Development Agency (ZDA) Act 
Investment incentives based on tax holidays  were reintroduced in early 2007 for companies 
operating in multi-facility economic zones  and a long list of priority sectors. While additional 
investment is needed, international experience demonstrates that investors give lower priority to tax incentives than to a competitive investment climate characterized by sound economic policies 
and institutions; political and economic stability; quality infrastructure; a productive workforce; 
a secure and stable business environment; an effi cient and responsive government administration; 
as well as transparent tax rules and administration.
120 A recent IMF study on the effective tax 
burden in Zambia did not recommend  additional tax incentives […]. 
                                               
119 Qualifying regions specified in the Fiscal Enactm ents (Amendment) Act (No. 2, 2003) are: Region 1 
(Barima-Waini); Region 8 (Cuyuni-Mazaruni); Region  9 (Upper Takatu-Upper Essequibo); Region 10 (Upper 
Demerara-Upper Berbice). Qualifying new economic activi ties are: non-traditional agri-processing (excluding 
sugar refining, rice milling and chicken farming); information and communications technology  (excluding 
retail and distribution); petroleum ex ploration, extraction, or refining; tourist hotels or eco-hotels.  
120 A number of studies have come to this basic conc lusion. See Howell et al. (2002). Vito Tanzi and 
Parthasarathi Shome examined the experiences of Ea st Asian countries including Taiwan, Korea, and 
Singapore. See Tanzi and Shome (1992). For a similar conclusion for economies in transition see OECD (1995). 
The Zambian authorities acknowledged that while the IMF and World Bank contend that incentives never work in attracting investment, th e majority of countries grant incentives to  investors including developed countries. S/WPGR/W/25/Add.6 
 
- 73 - 
 
  32  CHILE - WT/TPR/S/220/REV.1 (4TH REVIEW, 5 NOVEMBER 2009) 
Pp. 66-67, para. 209 
(a) Support for regional development Tax credits 
There are also special tax and tariff incentives for activities in Tierra del Fuego and in Antarctic 
territory (Law No. 19.149). These are available to mining, manufacturing, transport,  fishing and 
tourism  companies producing goods or services  that include a minimum of 25%, by value, of 
local labour and inputs. The concessions, which are planned to remain in force until 2035 (or 2036 
in some zones), include exemption from first category income tax, VAT on sales and import duties. There is an additional credit equivalent to 20% of the value of sales made by these companies in the rest of Chile.
121 It is estimated that the cost of tax and tariff incentives under these 
programmes in 2009 will be Ch$1.18 billion (US$2 million).122 
P. 67, paras. 210-211 
Free zones 
Ministry of Finance Decree No. 341 of 1997 establis hes two free zones: one in the port of Iquique 
in the far north of Chile and the other in Punta Ar enas in the south. The revised, coordinated and 
consolidated text of the Decree can be found in DF L No. 2 of the Ministry of Finance, published on 
10 August 2001.123 Any type of activity  can be carried out in the free zones of Iquique and 
Punta Arenas, but mining, fishing and financial services are not eligible  for the concessions 
offered there. 
Management companies and firms setting up in the free zones are exempt from payment of tariffs, 
VAT and other charges on imports, first category income tax under the Income Tax Law, and 
payment of VAT on goods and services for all their operations within the zone. 
P. 68, para. 216 
It is the Ministry of Finance's task to determine th e tax regime for the free zones. […]. Activities in 
the free zones of Iquique and Arica consist of export processing,  for example, manufacturing, 
assembling and finishing imported goods, whereas in  the Punta Arenas free zone the activities are 
mainly commercial.  […]. According to information provided by the authorities, at 
31 December 2007, the Arica free zone had 116 users, while the Iquique zone had 1,831. The free zone in Punta Arenas had 58 companies in May 2008. 
P. 69, para. 219 
Fund for the Promotion and Development of Remote Areas In order to assist the development of disadvanta ged regions in the far north and south of Chile, 
the Fondo de Fomento y Desarrollo de las Regiones Extremas  (Fund for the Promotion and 
Development of Remote Areas)
124 provides financial assistance for small- and medium-sized 
enterprises  wishing to invest in these regions. The Fund operates on an annual basis and is 
approved each year under the Finance Law. It is only available to small- and medium-sized 
producers of goods and services  in the construction,  machinery, equipment, special animal feed 
and small-scale fishing sectors. The annual amount of individual investment may not exceed 50,000 UF (around US$1.8 million) and the funds provided may not exceed 20% of the investment 
                                               
121 Law No. 18.392 of 14 January 1985 (amended by Law No. 19.606 of 14 April 1999), and Law 
No. 19.149 of 6 July 1992 (amended by Law No. 19.270 of 6 December 1993). 
122 Information provided by the Chilean authorities. 
123 DFL No. 2 was the subject of some amendments under Law No. 19.827 of 31 August 2002, Law 
No. 20.122 of 28 September 2006, and Law No. 20.320 of 31 December 2008. 
124 The Fund was set up in 1980 pursuant to Decree Law No. 3.529 of the Ministry of Finance. Decree 
No. 15 of 1981 laid down the terms for the Fund and it was amended by Law No. 19.606 of March 1999. S/WPGR/W/25/Add.6 
 
- 74 - 
 
  in fixed assets. According to information provided  by the Chilean Treasury, in 2008 the Fund paid 
out Ch$1,049 million (US$1.78 million). 
33  MALDIVES - WT/TPR/S/221/REV.1 (2ND REVIEW, 20 APRIL 2009) 
P. 7, para. 17 
[…] However, some SOEs, such as the electricity and water companies, both of which provide 
subsidized services, are loss-making enterprises, and are thus a drain on the Government's already limited resources, […]. 
P. 16, para. 23 
(6) F OREIGN INVESTMENT REGIME  
All incentives apply equally to foreign and domest ic investments and depend on the scale of the 
investment. For example, investments in excess of US$200,000 are allowed duty-free imports of 
machinery, capital goods, and construction materi als for two years, while investments of less than 
US$200,000 receive the concessions for a year. […]. 
P. 28, paras. 51-52 
(v) State-owned enterprises State involvement in the economy is widespread, with some 37 state-owned enterprises operating 
in various sectors of the economy, including trade, finance, transport,  fishing, utilities,  and 
tourism  (Table III.3). SOEs account for 36% of GDP.  
Certain SOEs operate as statutory or de facto monopolies, while others are subsidized , giving 
them an advantage over the private sector. These advantages include preferential rates and fees 
for state land, and government guarantees for domestic and external loans. It would appear that 
most of SOEs are not run efficiently and are incurring losses; therefore, they are a significant drain 
on the resources of the Government. […]. However, some of the SOEs have been mandated to provide commercially non-viable services in line with government objectives. 
P. 38, para. 36 
(i) Tourism 
Since 2004, 68 islands or lands have been leased out for development.125 Among these, 
five resorts are operational, while 19 are expected to become operational in 2010. To encourage 
faster development, the Government has provided incentives  such as relief with regard to 
building completion times, deferment of rent, and deferment of performance bonds.126 These 
incentives are applicable to all islands and lands leased since 2005. 
                                               
125 Of these, 49 are leased to private parties, 9 are leased to the Maldives Tourism Development 
Corporation and 10 islands have been allocated to the Airports Investments Maldives. 
126 A performance bond is a surety bond issued by an insurance company or bank to guarantee 
satisfactory completion of a project by a contractor. S/WPGR/W/25/Add.6 
 
- 75 - 
 
  34  SACU - WT/TPR/S/222/REV.1 (3RD REVIEW, 14 DECEMBER 2009) 
34.1  Botswana P. 93, para. 126 
(4) M EASURES AFFECTING PRODUCTION AND TRADE 
(i) Incentives 
[…] Botswana does not provide special tax incentives for companies that export, except offshore 
financial services  companies.  
Pp. 118-119, para. 248 
(a) Telecommunications 
Universal services  in rural areas are subsidized . All operators may tender to supply and 
operate infrastructure, with a subsidy, in the rural areas under the Rural Telecommunications 
Programme. A draft Universal Access and Service Policy, which is under consideration, proposes 
the establishment of a Universal Service Fund.127 […].  
P. 121, para. 261 
(a) Road transport […] Government subsidies, limited to two retu rn trips per week per customer, are paid on 
a performance basis to bus operators to encourage operators to provide rural services. […]. 
Pp. 114-115, para. 227 
(a) Banking 
The Botswana International Financial Services Centre (IFSC), a subsidiary of the state-owned 
Botswana Development Corporation, was established in 2003 to develop cross-border financial 
services. The services must be provided for clients outside Botswana and in foreign currencies.128 
Incentives  for companies operating within the IFSC include a corporate tax rate of 15% 
guaranteed until 2020, exemption from domestic capital gains and withholding taxes; tax 
exemption for collective investment undertakings; and access to Botswana's network of double 
taxation treaties. […].  
34.2  Lesotho 
P. 192, para. 204 
(iv) Tourism 
The development of tourism activities is a key po licy objective in Lesotho. […] Some of the main 
goals are: improving the packaging and presentati on of existing attractions; supporting and 
promoting tourism investment and facilitating small medium and macro enterprises (SMMEs) and 
                                               
127 The services are to cover fixed and mobile te lephony, internet, data , radio and television 
broadcasting, an d print media. 
128 Offshore financial services include: banking and fi nancing operations transacted in foreign currency; 
broking and trading of securities denominated in fo reign currency; investment  advice; management and 
custodial functions in relation to collective investment  schemes; insurance and rela ted activities; registrar and 
transfer agency services; exploitation of intellectual  property; development and su pply of computer software 
for use in the provision of the above services; and accounting and financial ad ministration activities. S/WPGR/W/25/Add.6 
 
- 76 - 
 
  community-based tourism; and ensuring that the infrastructure is adequate and is further 
developed.129  
P. 78, para. 97 
(ii) Telecommunications and postal services 
The [Lesotho Communications Authority (LCA)] manages the licensing system for fixed and mobile 
telecommunications and has set out relevant fees under the (Licensing Fees) rules of 2008. Under section 48 of the LTA Act 2000 (as amended), LCA established the Universal Access Fund  (UAF) 
to ensure that the network infrastructure and communications services are expanded throughout 
Lesotho, including in remote areas. The LCA commissioned a communications demand study in 2004 to help network providers by identifying commercially viable areas. It also aimed to bridge the efficiency-gap.
130 The LCA is implementing the universal access strategy with a view to 
addressing the access gap131, and network operators' first contribution has been received. In 
addition, the LCA has put aside funds  as seed capital to start the universal access fund, and will 
contribute 25% of its annual surplus funds towards the UAF. 
34.3  Namibia 
[No reference to services-related subsidies.] 34.4  South Africa 
P. 318, para. 134 
(iv) Export subsidies, finance, and assistance 
South Africa also offers subsidized medium- and long-term loans to promote the export/import of 
capital goods and services.  Financing facilities offered by banks and financial institutions, such as 
the Industrial Development Corporation of South Af rica Limited (IDC), are enhanced by the credit 
insurance cover and interest support from the government-owned Export Credit Insurance Corporation of South Africa (ECIC). The ECIC enables exporters of capital goods and services  to 
offer extended credit facilities to foreign buyers by underwriting bank loans and investments 
outside the country. 
P. 365, para. 304 
(c) Land transport South Africa's passenger rail companies (South African Rail Commuter Corporation, Metrorail, and 
Shosholoza Meyl) merged recently into the Passenger Rail Agency of South Africa (PRASA).
132 
PRASA provides commuter rail services in urban metropolitan areas, and regional and 
long-distance passenger services. Commuter rail services  continue to be subsidized but remain 
insufficient.133 […]. 
P. 368, para. 311 
(v)  Tourism Various incentive schemes are also in place, aimed at improving tourism services  (Table AIII.4). 
In 2005, the DEAT, in partnership with TBCSA, issued the Tourism BEE Scorecard and Charter 
                                               
129 Ministry of Tourism, Environment, and Culture (2007). 
130 Efficiency gap is the difference between what markets are actually achieving and what they could 
achieve if regulatory barriers were removed and regulation were used to  provide incentives (information 
provided by the Lesotho authorities). 
131 An access gap occurs when some  areas or population groups are not served by the market without 
intervention, even if the market is operating efficientl y and is fully liberalized (information provided by the 
Lesotho authorities). 
132 Department of Transport (2008b). 
133 Total subsidies amounted to R 329 million for FY 2007/08 (Department of Transport, 2008b). S/WPGR/W/25/Add.6 
 
- 77 - 
 
  (based on the Black Economic Empowerment strategy) to ensure that opportunities and benefits 
from tourism will extend to black South Africans.134 The Tourism Enterprise Programme launched 
in 2000135, was institutionalized in 2008 as the Touris m Enterprise Partnership, to ensure the 
sustainability of the long-term support to SMMEs.136 Financial assistance in the form of 
preferential loans  is provided through the Development Bank of South Africa to SMEs involved in 
tourism; and through the Industrial Development Corporation (IDC) to medium and large tourism projects.
137 IDC provides financing  for green-field and expansion projects in the tourism sector of 
R 1 million or more. […]. Three incentive programmes are also made available to the tourism 
sector by the DTI: the Tourism Support Programme (TSP), a targeted incentive  programme to 
support the development of tourism enterprises th at will stimulate job creation and encourage 
investment in tourism by offering grants138; the Cooperatives Incentive Scheme, a generic 
incentive scheme to stimulate the creation and effective operation of cooperatives; and the Black 
Business Suppliers Development Programme, aimed at stimulating black economic empowerment (Table AIII.4). 
P. 389, Annex Table AIII.4 (extracts) 
Table AIII.4 
Incentive schemes, 2009 
Scheme: objective Criteria  Type of incentive 
Investment support    
[…]   
Business Process Outsourcing 
and Offshoring (BPO and O)a: 
create employment opportunities Incentive is offered to local and 
foreign investors in projects aimed to serve offsho re clients; 
the applicant: must be a registered legal entity in South Africa; must be a taxpayer in good standing and; must have an accepted investment project; the project: can involve the start up or an expansion of an existing operation; apply and be approved prior to the start of commercial operations; and establish an 
operation that creates employment for at least 200 people by the end of its 2
nd year in operation Investment grant  ranging 
between R 37,000 and R 60,000; and a training grant to a maximum of R 12,000 per agent 
[…]   
                                               
134 Department of Environmental Affairs and Tourism (2005a) and (2005b). 
135 The programme was launched in 2000 for four years. It was funded by Business Trust and the DEAT. 
136 Department of Environmental Affairs and Tourism (2005a); and Tourism Enterprise Partnership 
online information. Viewed at: http://www.tep.co.za/index.php  [24 March 2009]. 
137 Department of Environmental Affairs and Tourism (2005a). 
138 Department of Trade and Industry (2008c). S/WPGR/W/25/Add.6 
 
- 78 - 
 
  Scheme: objective Criteria  Type of incentive 
Enterprise Investment Scheme 
(EIP): stimulate growth and employment; and broaden participation. Two sub-programmes: (i) Manufacturing Investment Programme (MIP) to stimulate growth; and (ii) Tourism  Support 
Programme (TSP) to stimulate employment and broaden participation Local and foreign-owned entities Investment grant  of 15% to 
30% towards qualifying investment in plant, machinery and equipment, and customized vehicles required for establishing or expanding production facilities or upgrading production capacity in clothing and textiles operation or to ensure that tourism projects create employment and promote tourism in new areas; investment of less than R 5million qualifies for a 30% grant; investment of R 5 million-R 30 million for 30%-15%; and investment of R 30 million-R 20 million for 15% grant; maximum qualifying investment: R 200 million; maximum qualifying grant: R 30 million  
[…] 
Services   
Location Film and TV 
production  Incentive 
  Rebate available to foreign-owned 
qualifying productions with qualifying South African production expenditure (QSAPE) of R 12 million and above Rebate calculated as 15% of 
QSAPE;  maximum rebate capped at R 10 million 
Franchising: traditional and non-traditional areas (e.g. fast food/restaurants; communication and IT; health and beauty; speciality stores; travel; retail;  petroleum; and 
hardware/equipment rental ) An economically viable business 
plan; minimum facility amount of R 1 million  Financing for a maximum of six 
years; repayments tailored to suit the borrower's cash flow 
Health care and education  
(manufacturing of medical equipment, medical schemes administration and management, medical and dental practices activities, clinics and related 
services, hospital services, human health services ) An economically viable business 
plan; minimum financing requirement is R 1 million; compliance with the international environmental standards Shareholders/owners expected to 
make a significant financial contribution, generally 35% of total assets for going concerns and 45%-50% for start-ups, depending on the industry norms and risk profile  
Media and motion pictures  
(motion pictures, broadcasting, 
printing, post-production, 
publishing, advertising, and music) 
 An economically viable business 
plan 
Minimum financing requirement: 
R 1 million  
South African Film and TV 
production  and Co production 
Incentive Rebate available to qualifying; 
South African production and official treaty co-productions with total production budgets of R 2.5 million and above Rebate calculated as 35% of first 
R 6 million of the QSAPE; thereafter 25% for the remainder;
 
rebate is capped at R 10 million 
[…]   S/WPGR/W/25/Add.6 
 
- 79 - 
 
  Scheme: objective Criteria  Type of incentive 
Transport   
Transport promotion: promote 
entrepreneurship, facilitate transport links and access to financial services in transport services (road freight, logistic, maritime, aviation, and bus sector) An economically viable business 
plan; minimum loan of R 1 million; minimum of R 500,000 for bridging facilities; and R 5 million for equity-related transactions .. 
Tourism   
[…]   
Tourism Development Finance: 
develop and expand the tourism industry by providing finance for commercial projects in the medium to large sector of the tourism industry; increase participation in projects related to the 2010 Soccer World Cup An economically viable business 
plan with adequate financial support from shareholders;  minimum financing requirement of R 1 million Medium-term finance in the form 
of loans, equity, and quasi-equity for the creation or upgrading and renovation of tourist facilities (including hotels, and conference and convention centres); interest rates are competitive, risk 
related, and are based on the prime bank overdraft rate  
Tourism Schemes: develop tourism, in particular eco-tourism .. Capital for development of new or 
existing tourism facilities 
Tourism Support Programme: 
offer a grant up to 30% of an 
investment to establish or expand existing operations in South Africa Applicant must be a registered 
legal entity in South Africa in 
terms of the Companies Act; available to local- and foreign-owned enterprises, and granted for qualifying inve stment costs of 
furniture, equipm ent, vehicles, 
land, and buildings of up to R 200 million Maximum: R 30 million 
.. Not available. 
a Effective from 6 December 2006 to 31 March 2011. b Will be replaced by the Automotive Production and Development Programme (APDP) from 2013. 
Source: Department of Trade and Industry online in formation, "Offerings: In centives and Development 
Finance". Viewed at: http://www.dti.gov.za  [20 February 2009]; Department of Trade and 
Industry online information, "Offe rings: Information, Advice, and Fa cilitation: National Industrial 
Participation Programme". Viewed at: http://www.thedti.gov.za/offeri ngs/offering.asp?offeringid=127  [6 March 2009]; Mbendi 
Information Service online information, "S outh Africa: Incentives". Viewed at: 
http://www.mbendi.com/land/af/sa/p0027.htm  [20 February 2009]; and Industrial Development 
Corporation  online information. Available at: http://www.idc.co.za/default.asp  [29 January 
2009]; and South Africa Info online information, "Spatial Development Initiatives". Viewed at: 
http://www.southafrica.i nfo/doing_busine ss/economy/development/sdi.htm  [24 February 2009]; 
DATC online information, "The Programme". Viewed at: http://www.dact.co.za/  programme.asp; 
TradeInvest South Africa online information, "Foreign Investment Grant (FIG)". Viewed at: 
http://www.tradeinvestsa.co.za/incentives/983081.htm  [6 March 2009]; TradeInvest South 
Africa online information, "Film In dustry Rebate Sche me". Viewed at: 
http://www.tradeinvestsa.co.za/incentives/983076.htm  [6 March 2009]. WTO (2003), Trade 
Policy Review: SACU , Geneva; Department of Trade and Indu stry online inform ation, "Regulatory 
Environment: Industrial Development Zones". Viewed at: http://www.dti.gov.za/investing/regulatoryenvironment.htm  [4 March 2009]; Department of 
Trade and Industry online inform ation, "Export Marketing and Investment Assistance Scheme". 
Viewed at: http://www.dti.gov.za/offering s/offering.asp?offeringid=204  [20 February 2009]; and 
information provided by the South African authorities.  
34.5  Swaziland 
[No reference to services-related subsidies.] S/WPGR/W/25/Add.6 
 
- 80 - 
 
  35  NIGER AND SENEGAL - WT/TPR/S/223/REV.1 (2ND AND 3RD REVIEW, 
22 DECEMBER 2009) 
35.1  Niger P. 86, para. 85 
(i) Incentives […] Some public utility goods and services  such as the social tranche of the consumption of 
electricity (Chapter IV(3)(iii)) and water supplies (Chapter IV(3)(iv)), air transport services  
(Chapter IV(5)(i)) and postal services  (Chapter IV(5)(iii)), as well as […], also receive State aid 
(Chapter IV(3)(ii)). […]. 
P. 112, para. 181 
(ii) Transportation 
The transport  subsector has been particularly affected by the various revisions of the Investment 
Code aimed at increasing its attractiveness, including an exemption from tax on industrial and commercial profits (BIC). 
P. 116, para. 196 
(b) Air transport 
Niger is of the view that air transport is essential to its economic and social development and 
therefore has adopted a new Investment Code and regulations under the framework of the 
WAEMU. Air transport  enjoys import and export incentives  among other measures. These 
measures cover the movement of capital, profits ta x, the open skies policy, and a reduction in the 
rate of aeronautical charges and in the aircraft refuelling price.139 
35.2  Senegal 
P. 183, para. 96 
(4) M EASURES AFFECTING PRODUCTION AND TRADE 
(i) Incentives 
[…]. Some public utility goods and services  such as electricity (Chapter IV(3)(iii), social water 
connections (Chapter IV(3)(iv)), air transport services  (Chapter IV(5)(i)), and postal services  
(Chapter IV(5)(iii)) also receive State support (Chapter IV(3)(ii)). […].  
P. 78, para. 97 
(c) Air transport Since 2001, Air Sénégal International (ASI) has been 51% owned by Royal Air Maroc (RAM) and 
49% by the State of Senegal.
140 As at July 2001, ASI had a deficit of around CFAF 12 billion. In 
October 2007, the Senegalese Ministry responsible for air transport had announced the Government's decision to alter the company's shareh olding to allow the State to hold a majority of 
ASI shares and refloat  the company with a capital of between CFAF 20 and 24 billion.
141 
                                               
139 Ministry of Transport (undated). 
140 The agreement between RAM and Senegal, signed in 2000, is scheduled to end in 2010. Viewed at: 
http://www.air-senegal-internation al.com/index.php? pg=compagnie&m=3 . 
141 Radio France internationale , "Air Sénégal international dans la tourmente", 10 April 2009. Viewed at: 
http://www.rfi.fr/actufr/articles/112/article_80024.asp . S/WPGR/W/25/Add.6 
 
- 81 - 
 
  P. 226, para. 229 
(iv) Tourism 
[…] Opportunities for hotel investment in Senegal are highly dependent on these tourist zones. The 
Investment Code sets a minimum eligibility threshold of CFAF 100 million for the granting of 
customs duty, fiscal and social incentives  to undertake a tourism project (Chapter II). […]. 
36  GEORGIA - WT/TPR/S/224/REV.1 (1ST REVIEW, 19 JANUARY 2010) 
Pp. 47-47, para. 56 and Table III.5 
(ii) Incentives (a) Special taxation regimes According to the authorities, no specific incentives are currently envisaged under Georgian tax 
legislation. There are, however, special taxation regimes  for international financial 
companies,  international companies operating in a free industrial zone and for free 
warehouse companies  (Table III.5). Under the Law on free industrial zones and the Tax Code of 
Georgia, companies registered and operating in fr ee industrial zones are exempted from VAT and 
property tax. The import of foreign goods into free industrial zones is exempted from VAT and 
customs duties. The term International Financial Company (IFC) is defined in the Tax Code as a financial company receiving no more than 10% of total revenue from activities in Georgia. Under 
the Code, profits gained by an IFC from its financial operations are exempted from profit tax.  
Table III.5 
Special taxation regimes, 2009 
Type of tax International financial 
company International company 
operating in a free 
industrial zone Free warehouse 
company 
Corporate income tax 0% 0% 0% 
Value added tax 0% 0% 0% 
Customs duties 0%, 5% or 12% 0% 0% 
Property tax up to 1% 0% up to 1% 
Personal income tax 20% 20% 20% 
Source: Georgian authorities.9P. 48, para. 58 
(b) State aid 
The authorities note that government economic programmes, including those aimed at industry 
assistance, are open and transparent and selection is on a competitive basis. The "Cheap Credit" 
programme, implemented in 2008, allocated GEL 62 mil lion to 117 projects to develop activities in 
agriculture, food processing, handicrafts, and tourism.  The number of new jobs and indirect 
beneficiaries from the projects exceeds 32,000 persons. […]. 
P. 78, para. 97 
(ii) Financial services 
(e) Financial regulatory framework […] A new law – the Global Competitiveness of the Financial Services Sector Act – was approved 
by Parliament in March 2008 to modernize the financ ial sector including: […] and (iv) developing 
an international financial centre to attract foreign funding by offering tax exemptions to large 
international financial companies  whose activity in Georgia does not exceed 10% of their 
financial turnover (Box IV.1). S/WPGR/W/25/Add.6 
 
- 82 - 
 
  37  UNITED STATES - WT/TPR/S/235/REV.1 (10TH REVIEW, 29 OCTOBER 2010) 
P. 63, para. 199 
(iv) Subsidies and other government assistance (a) General features 
Government assistance to businesses is granted at the federal level, as well as by state and local 
governments. The main instruments of support are tax benefits, direct payments,  and credit 
programmes. Tax benefits have traditionally been the main form of federal government support 
to business. 
Pp. 95-96, paras. 64-66 
(3) F INANCIAL SERVICES  
(iii) Policy actions in response to the crisis 
The immediate measures taken fall into the following categories: (1) guarantees of bank 
liabilities;  (2) retail deposit guarantees; (3) central bank assistance measures; (4) bank 
recapitalization through equity investments  by private investors and Government;  (5) 
open-market or negotiated acquisitions of illiquid or otherwise undesirable assets from weakened 
financial institutions; and (6) assistance to individual financial institutions. 
On 3 October 2008, the U.S. President signed into law the Emergency Economic Stabilization 
Act of 2008 (EESA), which provided budgetary author ization of up to US$700 billion to respond to 
the crisis. This authorization was utilized through the Troubled Assets Relief Program (TARP) , 
which enabled the Secretary of the Treasury to purchase, and to make and fund commitments to 
purchase troubled assets from any financial institutions. […] Foreign institutions established and 
regulated in the United States were therefore, in principle, eligible for relief. In May 2010, the 
Department of the Treasury notified Congress that the projected lifetime cost of TARP would total 
US$105.4 billion.142 
To meet the goals of the EESA, the Treasury es tablished several programmes under the TARP, and 
defined eligibility guidelines for each programme. According to the application guidelines for the Capital Purchase Program, the largest single program under TARP, and the TARP Capital Assistance 
Program, "applicants must be established and operating in the United States and may not be 
controlled by a foreign bank or company".
143 Similarly, according to the "summary of terms" for 
the TARP Legacy Loans Program, banks or savings associations owned or controlled by a foreign 
bank or company are not eligible to participate in this programme.144 According to the U.S. 
authorities, this approach was based on the rationale that: U.S. subsidiaries of foreign banks that 
needed additional capital should initially look to their parent banks; and the financial regulator of the country where the parent bank is subject to comprehensive consolidated supervision are best 
positioned to determine the overall strength of the financial conglomerate. The U.S. authorities 
also note that this principle is well established in international banking supervision and regulation, as set out, for example, in the Basel Committee’s Concordat.
145 
                                               
142 U.S. Department of the Treasury (2010), Troubled Assets Relief Program: Monthly 105(a) Report 
May 2010, 10 June. Viewed at: http://www.financialstability.gov/docs/May%202010%20105(a)%20Report_final.pdf . 
143 Application Guidelines for TARP Ca pital Purchase Program. Viewed at: 
http://www.financialstab ility.gov/docs/CPP/appl ication-guidelines.pdf ; and Application Guidelines for Capital 
Assistance Program. Viewed at: http://www.financialstability.g ov/docs/CAP_App-Guidelines.pdf .  
144 Legacy Loans Program Summ ary of Terms. Viewed at: 
http://www.treas.gov/press/releases/eports/legacy_loans_terms.pdf . 
145 Principles for the Supervision of  Bank’s Foreign Establishments.  S/WPGR/W/25/Add.6 
 
- 83 - 
 
  P. 102, para. 92 
(ii) Maritime transport 
(b) Regulatory framework  The regulatory framework for maritime transport in  the United States has not changed during the 
review period. […]. In addition, the Maritime Administration (MARAD) of the Department of 
Transportation is responsible for certain maritime regulations, programmes that promote  the 
use of waterborne transportation and its integration with other segments of the transportation 
system, and the viability of the U.S. merchant marine.  MARAD is also responsible for a variety 
of programmes involving ships and shipbuilding, port operations, environment, and safety. […]. 
P. 103, para. 98 
(c) Water-borne trade  
The United States administers a number of mari time transport programmes related to national 
defence: 
− The Maritime Security Program (MSP) provides a fixed payment  to operators of 
domestically flagged vessels  under the Maritime Security Act of 2003.  
− Annual spending of up to US$156 million was authorized for FY2006-08, US$174 for 
2009-11; and US$186 for FY2012-15146; In FY2009, 59 vessels received MSP payments 
totalling US$166.5 million, or an averag e of US$2.8 million per vessel; […]. 
38  JAPAN - WT/TPR/S/243/REV.1 (10TH REVIEW, 2 MAY 2011) 
P. 62, paras. 114 and 116 
(ii) Subsidies and other financial assistance 
Japan has notified various specific subsidy programmes  to the WTO. In its latest notification, 
Japan indicated 68 subsidy schemes to assist ag riculture, forestry, and fisheries, industry, 
finance,  and transport  sectors.147 Changes since 2009, as noted in the notification, include 
elimination of the subsidy for the promotion of advanced research and development in salt 
manufacturing technology and the subsidy for promoting bio-fuel in March 2009. 
Under the new Growth Strategy, adopted by the Cabinet on 18 June 2010, the Government has 
concentrated its resources into the development of "seven strategic areas" (environment and 
energy, medical  and health care,  economic integration with other Asian countries, tourism  and 
revitalization of regional economies, science and technology, human resources, and financial 
services) .148 The strategy indicates that potential demand is largest in these seven areas.149 
Although the details of implementing measures are yet to be decided, the strategy suggests a 
possible policy to "pick winners".150  
                                               
146 MARAD online information. Viewed at: 
http://www.marad.dot.gov/ships_shipping_landing _page/domestic_shipping/Domestic_Shipping.htm  
[March 2010]. 
147 WTO document G/SCM/N/186/JPN, 25 June 2009. 
148 Prime Minister's Office online information. Viewed at: http://www.kantei.go.jp/foreign/kan/topics/ 
sinseichou01_e.pdf  [14 October 2010]. 
149 Cabinet Office online information. Viewed at: http://www5.cao.go.jp/keizai2/2010/0618 
reference.pdf  [14 October 2010]. 
150 National Policy Unit onli ne information. Viewed at: http://www.npu.go.jp/policy/policy04/pdf/ 
20100618_shinseityou_gaiyou_eigo.pdf  [14 October 2010]. S/WPGR/W/25/Add.6 
 
- 84 - 
 
  P. 87, paras. 42-43 
(a) Banking 
To mitigate the impact of the crisis, the authorities took a number of measures to ensure the 
smooth flow of credit as well as shoring up bank s' balance sheets. Measures taken by the Bank of 
Japan include: an increase in outright purchases of government bonds and facilitation of bank 
lending to the corporate sector151; introduction of a "special funds supplying operation" in 
January 2009, which provided banks with unlimited funds  at the policy rate and expanded the 
range of corporate financing instruments that could be used as collateral for such funds; 
resumption of the purchase of equities held by banks by the Bank of Japan in February 2009152; 
and the provision of subordinated loans to banks that were engaged in international operations. 
Action taken by the FSA included allowing the Banks Shareholding Purchase Corporation to 
purchase equities held by banks, and raising the up per limit on such purchases to ¥20 trillion. This 
measure was expected to improve the capital posi tion of the banking sector. The Act on Special 
Measures for Strengthening Financial Functions was reactivated and its conditions relaxed in 
December 2008. The Act provides a framework for the injection of public funds in depository 
institutions.  Since the Act's revival, three institutions have received a total of ¥121 billion under 
its provisions. Capital adequacy requirements for banks were also relaxed until March 2012, so 
that large changes in the capital adequacy ratio do not hamper intermediation functions. In 
addition, the Financial Revival Programme, which started in 2002, has continued to provide support  to the financial sector through grants for losses, injection of capital, and purchase 
of assets.  […]. 
P. 90, para. 59 
(iii) Transport 
(a) Maritime transport 
The Government continues to provide support to  Japanese flag carriers  under the international 
ship regime.153 It also continues to provide a tonnage tax, adopted in 2008, under which a 
company may calculate its corporate tax based on assumed profit per net tonne of vessels flying 
the Japanese flag. The presumably lower tonnage tax is applicable instead of the corporate tax and 
is an incentive  for shipping companies. An internationally operating shipping company must 
submit a plan that ensures stable international maritime transport to the MLIT; this must be 
approved by the Minister before the tonnage tax can be applied. As of March 2010, 11 companies 
had been approved by the MLIT to apply the tonnage tax. 
P. 91, paras. 64-66 
(b) Air transport 
A significant development during the review period was the bankruptcy of Japan Airlines (JAL)  
and its subsequent rescue  by the Government. JAL had reportedly been carrying legacy costs, 
which had resulted in the airline having to negotiate three rescue deals with banks and the 
Government since 2001. The global financial crisis in 2008 resulted in further significant losses for 
JAL. It had become obvious by the end of 2009 that unless radical reforms were instituted the 
airline would be bankrupt.  
The Government decided to rescue JAL and directed  the airline to submit a restructuring plan. 
However, a change in Government in August 2009 resulted in the restructuring plan being 
scrapped. Under, a new plan, announced in No vember 2009, as a condition of government 
support, the Enterprise Turnaround Initiative Corporation of Japan (ETIC) would assume control of 
JAL. In January 2010, JAL made a formal applicatio n for support from ETIC and filed a petition for 
                                               
151 Prior to December 2008, outright purchases of go vernment bonds were at ¥14.4 trillion annually; 
this increased to ¥21.6 trillion annually in March 2009. 
152 Between February 2009 and April 2010, the Bank of Japan had bought equities worth ¥387.8 billion 
from banks. 
153 For details, see WTO document WT/TPR/S/211/Rev.1, 12 May 2009. S/WPGR/W/25/Add.6 
 
- 85 - 
 
  the commencement of reorganization proceedings under the Corporate Reorganization Law. It 
submitted a restructuring plan that aims to return  the airline to profitability by 2012. Measures 
[…]. 
Under the plan, ETIC will inject over ¥300 billion in equity, and ETIC and the Development Bank of 
Japan will provide lines of credit  amounting to ¥600 billion. JAL stocks will be de-listed, and ETIC 
will assume control and ownership of the airline.154 […].  
39  EUROPEAN UNION - WT/TPR/S/248/REV.1 (10TH REVIEW, 1 AUGUST 2011) 
P. 70, para. 161 
(iii) Subsidies and other government assistance 
(a) General legal and institutional framework Subsidies and other government assistance are granted at the EU and member State levels. The 
latest EU subsidies notification to the WTO, su bmitted in December 2009, covers both types of 
subsidies, and contains statistical information at least up to end 2008.
155 […]. 
P. 73, Chart III.2  
(iii) Subsidies and other government assistance 
(b) Overall assistance 
01020304050607080
Manufacturing
sectorsFinancial
servicesOther services Agriculture Fisheries Coal Other non
nanufacturing
sectorsTransport (excl.
railways)Chart III.2
Non-crisis aid provided by member States, 2004-09
% of total aid
Source:
European Commission online information, "Scoreboard:  Data on State Aid Expenditure".  Viewed at:  
http://ec.europa.eu/competition/state_aid/studies_reports/expenditure.html.Average 2004-06
Average 2007-09
 
 
                                               
154 ETIC is obliged to sell its shares of JAL within three years of the capital injection. 
155 WTO document G/SCM/N/186/EEC, 23 December 2009.  Subsidies granted by individual Member 
States are contained in adde nda to this notification. S/WPGR/W/25/Add.6 
 
- 86 - 
 
  Pp. 73-74, paras. 173-175 
(c) Assistance in response to th e financial and economic crisis 
Following the onset of the financial crisis in 2008, the Commission issued several communications 
providing guidance on the design and impl ementation of state aid in support of banks.156 The 
communications cover public guarantees, recapitalization measures, impaired asset relief, 
and "restructuring aid".  […] According to the Commission, the objective of the guidance is to 
ensure that emergency measures granted to maintain financial stability "guarantee a level playing-
field between banks located in different Member States as well as between banks who receive 
public support and those who do not".157 
Between October 2008 and October 2010, the Commission authorized state aid measures for the 
financial sector in 22 member States on the basis of Article 107(3)(b) of the Treaty on the 
Functioning of the EU.158 The "maximum volume" of this state aid totalled nearly €4,590 billion, or 
some 40% of EU-27 GDP.159 Around three-quarters was in the form of guarantees,  including the 
blanket guarantees  covering all bank debts adopted by Denmark and Ireland. According to the 
Commission, member States relied principally on guarantee measures, because they had a 
"stabilising effect for the financ ial sector without weighing heavily on the public finances as 
opposed to more interventionist instruments such as recapitalisations or the cleaning of impaired 
assets".160 Denmark, France, Germany, Ireland, and the United Kingdom accounted for nearly 
70% of approved state aid for the financial sector. 
The "amount actually used" of state aid in 2009, which reflects the volume of aid implemented by 
member States, totalled €1,107 billion, or around 9% of EU-27 GDP. Approximately three quarters 
corresponds to guarantees,  under general schemes and ad hoc interventions in support of 
individual financial institutions.  
P. 74, para. 177 
Apart from support to the financial sector, member States provided support for the real economy, 
mostly within the broader framework of the European Economic Recovery Plan, adopted in December 2008 to ensure a coordinated EU response to the crisis.
161 The Plan called on member 
States to devote 1.2% of GDP to counter the effe cts of the crisis and adopt short-term measures 
in support of employment, infrastructure, construction,  and business. As part of the Plan, the EU 
adopted in early 2009 a "temporary framework" allowing member States to provide state aid in response to "the exceptional difficulties of companies to obtain finance" until the end of 2010.
162 
Like the communications on bank support, the temporary framework is based on the consideration 
that the severity of the crisis justifies, for a limited period, state-aid measures on the basis of Article 107(3)(b) of the Treaty on the Functioning of the EU. 
                                               
156 See Communication from the Commission – The applic ation of State aid rules to measures taken in 
relation to financial institutions in the context of the current global financial crisis (OJ C 270, 25 October 2008); Communication from the Commission – The recapitalisation of financial institutions in the current financial crisis: limitation of aid to the minimum necessary and safeguards against undue distortions of competition 
(OJ C 10, 15 January 2009); Communication from the Commission on the treatment of impaired assets in the Community banking sector (OJ C 72, 26 March 2009); and Communication from the Commission on the return 
to viability and the assessment of the restructuring measures in the financia l sector in the current crisis under 
the State aid rules (OJ C 195, 19 August 2009). 
157 European Commission (2009a). 
158 European Commission document COM(2010) 701, 1 December 2010. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0701:FIN:EN:PDF . 
159 The maximum volume is the upper limit of suppo rt approved by the Commission; it does not 
represent the amounts handed to financial institutions. 
160 European Commission document SEC(2010) 1462 final, 1 December 2010. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=SEC:2010:1462:FIN:EN:PDF . 
161 European Commission document COM(2008) 800 final, 26 November 2008. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0800:FIN:EN:PDF . 
162 Communication from the Commissi on-Temporary Community framework  for State aid measures to 
support access to finance in the curre nt financial and economic crisis (OJ C 83, 7 April 2009); and European 
Commission press release IP/08/1993, "State aid: Commission adopts temporary framework for Member 
States to tackle effects of credit squeeze on real economy", 17 December 2008. Viewed at: http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/1993 . S/WPGR/W/25/Add.6 
 
- 87 - 
 
  P. 76, para. 185 
Assistance provided under the temporary framework was not sector specific. Thus, there are no 
consolidated data on the volume of aid under the temporary framework disaggregated by economic sector. Nonetheless, some parts of member States' fiscal stimulus packages targeted 
particular economic sectors. According to one estimate, one-third of all measures introduced by 
member States under the European Economic Recovery Plan were sector specific. The automobile sector, along with tourism  and construction  received the largest share of sectoral support […]. 
P. 121, paras. 64-65 
(2) T RADE IN SERVICES  
(ii) Financial services (c) Response to the global financial crisis 
The Commission published guidance to the member States in October and December 2008 to 
ensure that support to financial institutions in response to the financial crisis does not unduly distort competition by allowing beneficiary banks to have access to capital and funding without 
differentiating beneficiary banks according to their risk profiles. In December 2008, the 
Commission also adopted a temporary framework for state-aid measures to support access to finance applicable horizontally to all sectors. The temporary framework was modified in 2009, and 
replaced by a new temporary framework in December 2010. Between October 2008 and 
October 2010, the Commission approved aid schemes of 22 member States pursuant to the temporary framework. The maximum volume of  Commission-approved measures from the 
beginning of the crisis until 1 October 2010, in cluding the schemes and ad hoc interventions, 
amounts to €4,590 billion, or some 40% of  EU-27 GDP for 2009 (C hapter III(3)(iii)(c)).
163 In its 
assessments, the Commission has evaluated all measures against the criteria for compliance with state-aid rules, in particular the principle of non- discrimination, to preserve the proper functioning 
of the internal market.  
[…] Assistance could, for example, take the form of asset purchase, swaps, insurance, guarantees 
or a combination of such measures. The measures  would be elaborated and implemented by the 
member States, but subject to assessment and approval by the Commission.  
Pp. 133-134, para. 107 
(b) Postal services […] The Directives also provide that member States may establish a compensation fund  to 
ensure that universal service is provided, should  the universal service obligation constitute an 
unfair financial burden for the designated universal service provider.
164 
40  INDIA - WT/TPR/S/249/REV.1 (5TH REVIEW, 20 OCTOBER 2011) 
P. xii, para. 19 
India grants direct and indirect assistance to various sectors. Most central government subsidies 
are destined for agriculture. […] The states also  provide additional subsidies, especially for basic 
services  such as education and health, electricity, and water.  
                                               
163 European Commission document COM(2010) 701final, 1 December 2010. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0701:FIN:EN:PDF .   
164 WTO document S/C/W/319, "Postal and Courier Services", Background Note by the Secretariat, 
11 August 2010. S/WPGR/W/25/Add.6 
 
- 88 - 
 
  P. 82, para. 147 
(a) Free-trade zones and export-oriented units (EOUs) 
Exports are encouraged through the establishm ent of special economic zones (SEZs) and 
export-oriented units (EOUs). 
Pp. 82-83, paras. 149 and 151, and Tables III.18 and III.19 
Special economic zones (SEZs) 
[…] Firms established in an SEZ benefit from seve ral incentives subject to generating net foreign 
exchange earnings within five years of operatio n (Table III.18). SEZ units are exempt from various 
taxes, including income tax, central sales tax, mi nimum alternate tax, dividend distribution tax, 
service tax, and from a series of state taxes (i .e. sales tax, stamp duty, and electricity duty) 
(Table III.18).165 […]. 
As at end 2010, India had 374 SEZs with 3,245 units producing manufactured goods and 
providing services and warehousing  for a total investment of US$43 billion and 
644,073 employees. As at end 2010, India had 374 SEZs with 3,245 units producing manufactured 
goods and providing services and warehousing for a total investment of US$43 billion and 
644,073 employees. […]. 
Table III.18 
Incentives granted to SEZ units, 2011 
Duty-free imports/domestic procurement of goods for development, operatio n, and maintenance of 
SEZ units. 
100% income tax exemption for SEZ units for the first five years, 50% for the next five years, and 50% of 
the ploughed-back export profit for the next five years. 
Exemption from minimum alternate tax. 
Exemption from the central sales tax. 
Exemption from the service tax. 
Exemption from the state sales tax and other levies (e.g. stamp duty and electricity duty) as extended by 
the respective state government. 
External commercial borrowing by SEZ units up to US$500 million in one year without any maturity 
restriction through recognized banking channels. 
100% FDI investment through automatic route. 
Single-window clearance for central and state level approval procedures. 
Source:  Department of Industrial Policy and Promotion (2010), National Manufacturing Policy: A 
Discussion Paper . Viewed at: 
http://dipp.nic.in/NMP_DiscussionPaper/NMP_DiscussionPaper_2010.pdf ; SEZ Rules 2006, as 
amended; SEZ Act 2005; and SEZ online informatio n, "About SEZs: facilities and incentives". 
Viewed at: http://sezindia.nic.in/about-fi.asp . 
                                               
165 SEZ Rules 2006, as amended; SEZ Act 2005; and SEZ online information, "About SEZs: facilities and 
incentives". Viewed at: http://sezindia.nic.in/about-fi.asp . S/WPGR/W/25/Add.6 
 
- 89 - 
 
  Table III.19 
Exports from SEZs, 2007-10  (US$ billion, unless otherwise specified) 
Sector 2007/08 2008/09 2009/10 
Biotech 0.04 0.19 0.10 
Computer/electronic software 0.89 3.61 10.17 
Electronics hardware 2.47 2.90 3.87 
Electronics 0.12 0.08 0.21 
Engineering 0.37 0.69 0.93 
Gems and jewellery 5.11 7.43 9.74 
Chemicals and pharmaceuticals 0.32 1.42 16.44 
Handicrafts 0.01 0.01 0.01 
Plastic and rubber 0.15 0.08 0.15 
Leather, footwear, and sports goods 0.05 0.06 0.10 
Food and agri-industry 0.14 0.07 0.08 
Non-conventional energy 0.03 0.05 0.31 
Textiles and garments 0.29 0.66 0.74 
Trading and services 4.64 4.18 5.53 
Miscellaneous 0.20 0.75 0.66 
Total 14.81 22.15 49.05 
Percentage share of SEZs exports of India's total 
exports  9.1 12.0 27.4 
Source:  Information provided by the Indian authorities. 
Pp. 84-85, para. 155 and Table III.20 
Export-oriented units (EOUs) 
As in the case of the SEZs, [Export Oriented Units (EOUs)] are exempt from various taxes, 
including income tax, until 31 March 2011 (Table III.20).166 […]. 
Table III.20 
Incentives granted to EOUs, 2011 
Inputs are exempt from customs duty. 
Exemption from customs and central excise duties on  import/local procurement of capital goods, raw 
materials, consumables, spares, packing material, etc. 
Reimbursement of central sales tax. 
Corporate/income tax holiday until 31 March 2011. 
Reimbursement of duty paid on fuel s procured from domestic oil compan ies as per the rate of drawback. 
No import licences are required. 
Import of second-hand capital goods are allowed. 
Supplies from the DTA to EOUs are deemed exports and are exempt from payment of the excise duty. 
50% of production may be sold in the domestic mark et on payment of duty, generally 25%, plus a 100% 
additional customs duty. 
100% FDI investment through automatic route. 
Source:  Department of Industrial Policy and Promotion (2010), National Manufacturing Policy: A 
Discussion Paper . Viewed at: 
http://dipp.nic.in/NMP_DiscussionPaper/NMP_DiscussionPaper_2010.pdf ; and Export Promotion 
Council for EOUs and SEZs, Circular No. 77, 6 July 2009. 
                                               
166 Export Promotion Council for EOUs and SEZs, Circular No. 77, 6 July 2009. S/WPGR/W/25/Add.6 
 
- 90 - 
 
  Pp. 85-86, para. 158 and Table III.21  
In 2009/10, India had 2,553 EOUs, manufacturing goods and providing services, excluding 
trading, which is not allowed.167 […]. 
Table III.21 
Exports from EOUs, 2007-10 
(US$ billion, unless otherwise specified) 
Sectors 2007/08 2008/09 2009/10 
Textiles and garments, yarn 1.73 1.20 0.79 
Computer software 1.20 0.75 0.89 
Electronics hardware 1.15 1.19 0.98 
Engineering goods 4.74 4.14 3.18 
Chemicals and pharmaceuticals 24.02 23.69 4.52 
Leather and sports goods 0.18 0.18 0.17 
Gems and jewellery 2.33 0.93 1.04 
Plastic, rubber, and synthetic 0.38 0.37 0.32 
Foods and agri and forest products 0.93 1.02 0.90 
Miscellaneous 5.30 5.01 4.86 
Total 41.96 38.47 17.64 
Percentage share of EO Us exports of India's 
total exports  25.7 20.8 9.9 
Note: The figures do not include the export performance of Software Tec hnology Park of India (STPI) units.  
Source:  Information provided by the authorities. 
P. 91, para. 175, Table III.22 and para. 177 
(4) M EASURES AFFECTING PRODUCTION AND TRADE 
(i) Incentives 
(a) Tax incentives 
India provides a number of tax incentives aimed at promoting investment. Under the Income Tax 
Act 1961, tax incentives  are provided to several sectors (Section 35AD) and to disadvantaged 
areas. […] The authorities noted that several tax incentive programmes have been phased out 
since 2007 (Table III.22). During the period under review, revenue forgone due to incentives amounted to some US$27.94 billion (Table AIII.8). 
                                               
167 Export Promotion Council for EOUs and SEZs online information, "How to set-up an Export Oriented 
Unit". Viewed at: http://www.eouindia.gov.in/eou_settingup.htm . S/WPGR/W/25/Add.6 
 
- 91 - 
 
  Table III.22 
Tax incentives phased out, 2006-10 
Tax incentive Income Tax 
Act 1961, 
Section Date 
Tax deductions provided to cooperative banks   80P 2006/07 
Profit-linked tax deduction provided to companies carrying on scientific 
research and development   80IB 2006/07 
Profit-linked tax deduction pr ovided to the business of operating and 
maintaining a hospital in rural areas  80IB 2008/09 
Profit-linked tax deduction provided  to the business of laying and 
operating a cross-country natural gas distribution network, including 
pipelines and storage facilities  80IA 2009/10 
Source:  Information provided by the Indian authorities. 
The Income Tax Act 1961 provides additional incentives, including for the shipping companies  
(Section 33AC) and deductions for revenue and capital expenditure (other than for land) on 
scientific research  (under Section 35).168 In 2009, a new section (35AD) was introduced in the 
Income Tax Act 1961, which provides investment-linked deduction of 100% of capital expenditure (other than on land, and financial instruments) to sectors such as […]. This incentive was extended 
to the hotel, hospital, and slum rehabilitation  sectors in 2010.
169 
P. 140, para. 60  
IV TRADE POLICIES BY SELECTED SECTOR 
(3) S ERVICES  
(ii) Financial services  (a) Banking 
India's banking sector continues to be dominated by public sector banks (PSBs), which account for 
approximately 73.7% of the sector's total assets. At end-March 2010, of the 81 scheduled 
commercial banks, there were 27 PSBs (19 nationalized banks, the State Bank of India (SBI), six SBI associate banks and the Industrial Development Bank of India (IDBI), 22 private sector 
banks, and 32 foreign banks (Table AIV.1). An important issue during the period under review was 
the recapitalization  of PSBs, for which the 2010/11 Budget provided Rs 165 billion to help banks 
maintain a Tier I capital adequacy ratio in excess of 8%. […]. 
P. 147, para. 86 
Other financial institutions 
The financial situation of [regional rural banks, RRBs], reported as difficult in the last review, 
improved in 2009/10, partly as a result of their restructuring, amalgamation, and 
recapitalization,  along with the application of the pruden tial regulatory requirements to RRBs. 
[…]. The Committee noted that to meet this goal, a recapitalization  of Rs 22 billion was required 
for 40 of the 82 RRBs, and recommended that the amount be released in two instalments: 
Rs 13.38 billion in 2010/11 and Rs 8.63 billion in 2011/12; and an additional Rs 7 billion be kept to 
meet the additional capitalization needs of th e weaker RRBs of the north-eastern and eastern 
regions. 
                                               
168 Income Tax Act 1961, as amended. 
169 Ministry of Finance (2007a). S/WPGR/W/25/Add.6 
 
- 92 - 
 
  P. 164, paras. 141-142 
(iv) Transport 
(a) Maritime transport Shipping 
Imports of repair materials by ship-repair  units registered with the [Directorate General of 
Shipping, DGS] are exempt  from customs duties, and domestic goods are exempt from excise 
duties.
170 The recent budget extended some of the incentives , including duty-free imports of 
spare parts and other items used for repairs, provided for ocean going vessels owned by 
ship-owners registered in India.171 
In an attempt to develop coastal shipping, certain concessions  are granted to operators, 
e.g. relaxation in customs procedures172, and lower charges at ports.173 Coastal vessels enjoy 
a 40% reduction on various tariffs and in cargo handling fees (except for vessels transporting 
thermal coal, crude oil, and petroleum/oil/lubricants).174 
P. 167, para. 157 
(b) Air transport FDI in airport projects is allowed up to 100% under the automatic route for Greenfield projects; 
and up to 100% for existing projects, subject to governmental approval beyond 74% and to 
sectoral regulations notified by the Ministry of Ci vil Aviation and Security clearance (Table AII.4). 
Private domestic partners in airport projects are granted full tax exemption for ten years.
175 
Pp. 169-170, para. 170 and Table IV.12 
(c) Overland transport 
Road transport 
Domestic and foreign investors may bid for "concession contracts" (Table IV.11). Contractors must 
pay an annual nominal fee (Rs 1) to the NHAI throughout the concession period; they may benefit 
from a number of incentives  (Table IV.12) […]. 
                                               
170 Press note 1990 series No. SY-22013/7/89-SBR, 10 October 1990. 
171 Ministry of Finance (2011b). 
172 Notification of 7 October 1997 and Public Notice No. 190/97 of 20 October 1997 exempt coastal ships 
from the provisions of Sections 92, 94, 97, and 98(1) of the Customs Act 1962. Hence coastal ships are not required to file a bill of entry when loading at ports or  a bill of entry at discharge ports, or to obtain written 
permission before leaving a port. 
173 Planning Commission (2008). 
174 Information provided by the authorities. 
175 Kacker (undated). S/WPGR/W/25/Add.6 
 
- 93 - 
 
  Table IV.12 
Selected incentives to ro ad concessionaires, 2011 
Grants of up to 40% of the cost of the project  (including for projects of high economic importance but  
not commercially viable). 
100% tax holiday in any ten-year peri od out of 20 years in operation. 
Exemption from the service tax  for certain activities re lated to road constructiona. 
Exemption from import duties on imports  of high capacity equipment to be used in the construction of  
roads. 
Basic customs duty of 0% for imports of goods to be used in specific projects. 
a Commercial or industrial cons truction services; site format ion and clearance, excavation, 
earthmoving, and demolition  services; work contract services; an d management, maintenance, and repair 
services. 
Source:  National Highways  Authority of India (2010), Guidelines for Investment in Road Sector , 22 July. 
Viewed at: http://www.nhai.org/ doc/22July10/nhai.pdf ; and Ministry of Road and Highways 
online information, "National Highways Development Projects (NHDP)". Viewed at: 
http://morth.nic.in/index3.asp?langid=2&sublink2id=173 . 
Goods transport agencies are liable for the service tax (10%).176 However, road transport of fruits, 
vegetables, eggs, milk, food grains, and pulses is exempt.177 Exemptions  also apply to individual 
consignments not exceeding a value ranging from Rs 750 to Rs 1,500; and to specific taxable 
services when provided by a Goods Transport Agency (GTA). 
Pp. 174-175, para. 184 and Table IV.13 
(v) Tourism […] In 2002, the [Ministry of Tourism, MoT] launched the National Tourism Policy to make tourism 
a major engine of economic growth. The key obje ctives of the policy are to increase India's 
competitiveness in the world tourism market; im prove, expand, and market tourism products 
effectively; and develop world-class tourism infrastructure.
178 To support  these objectives, the 
MoT launched 14 schemes,  in particular the Product/Infrastructure Development for Destinations 
and Circuits, to develop tourism products and infrastructure for mega projects and rural 
tourism179; and the Market Development Assistance  Scheme , to promote India as a tourism 
destination. These two schemes accounted for 76% of the Ministry's total outlays in 2010/11. Other schemes are aimed at capacity building in tourism-related activities (Table IV.13).
180 
                                               
176 An education cess (2%) and a secondary and hi gher education cess (1%) apply on the payable 
service tax. For details, see Central Board of Excise an d Customs online information, "Service Tax: Service 
Profile". Viewed at: http://www.cbec.gov.in/cae1-english.htm . 
177 Service Tax Notifications Nos. 4/2010, 27 February 2010; and 33/2004, 3 December 2004. 
178 Ministry of Tourism online informat ion, "Policy and Schemes". Viewed at: http://tourism.gov.in/ . 
179 Mega projects refer to "the deve lopment of destinations/circuits of national importance in a holistic 
and integrated manner" (Ministry of Tourism, 2010a). 
180 For details, see Ministry of Tourism online information, "P olicy and Scheme". Viewed at: 
http://tourism.gov.in/ . See also Ministry of Tourism (2010b). S/WPGR/W/25/Add.6 
 
- 94 - 
 
  Table IV.13 
Selected support schemes for tourism, 2011 (Rs million) 
 
Objective Assistance Outlay 
2010/11  
Scheme for Product/Infrastructure Deve lopment for Destinations and Circuits  
Major destinations and circuits development  
 Develop new tourism products 
to the world standard Ministry of Tourism bears 100% of the project cost  
or a maximum of Rs 250 million for destination development and Rs 500 million for circuit development 5,450 
Rural Tourism Infrastructure Development 
 Develop rural tourisma Maximum of Rs 5 million 70 
Scheme of Assistance for Large Reve nue Generating Projects (revised)  
 Large projects with a tourism 
impactb Grant  to prepare the detailed project report, up to 50% 
of the actual cost, subject to a maximum of Rs 2.5 million per project; Amount of subsidy  for private sector/public private 
partnership projects determ ined through a competitive 
bidding process by the concerned state governments/union territory administrations; Subsidy  capped at Rs 500 million, subject to 
a maximum of 25% of total project cost or 50% of equity contribution of the promot ers, whichever is lower 150 
[…] 
Market Development Assistance Scheme for Promotion of Domestic Tourism  
 Unexploited potential for 
domestic tourists Approved tourism service providers would be provided 
financial assistance  on travel expenses by air only, 
subject to a ceiling of Rs 30,000 per trip. Trips must be 
with Air India or alliance partner .. 
[…]    
.. Not available. 
a The following activities may be taken up under the Scheme: improvement of  village surroundings and 
access roads; illumination in villages; improvement in solid-waste management and sewerage management; procurement of equipment directly related to tourism (e.g. water sports, adventure sports, and eco-friendly modes of transport for moving within the tourism zone); refurbishment of the monuments; reception centres; and tourist accommodation. b Tourist trains, cruise vessels, cruise terminals, co nvention centres, golf courses open for domestic and 
international tourists, health and rejuvenation facilities, last-mile connectivity to tourist destinations (air and cruise including heli-tourism) etc., would qualify for assistance. c IHM: Institute of Hotel Management; FCIs: Food Craf t Institutes; IITTM: Indian Institute of Tourism and 
Travel Management; and ITIs: In dustrial Training Institutes. 
Source:  Ministry of Tourism online information, "Policy and Schemes". Viewed at: http://tourism.gov.in; 
and Ministry of Tourism  (2010), India Tourism Statistics 2009 , November. Viewed at: 
http://tourism.gov.in/ . 
P. 177, para. 191 
In 2010, India estimated a shortage of some 150,000 hotel rooms, in particular in the budget 
category.181 As a result, the MoT has advised "land-owning agencies" and state governments to 
put land aside for the construction of hotels and to allow construction contracts on public-private 
partnerships or revenue-sharing basis. Since 2001, subsidized  loans  have been available for 
construction of budget accommodation hotels  under the Incentive to Accommodation 
Infrastructure Scheme; in 2010-11, Rs 100 billion were allocated under the scheme.182 Access to 
credit for the development of hotels has been increased and offered at reduced interest rates183; 
                                               
181 Ministry of Finance (2011a). 
182 Ministry of Tourism (2010b). 
183 Ministry of Tourism (2010a). S/WPGR/W/25/Add.6 
 
- 95 - 
 
  […].184 Tax incentives  are available for hotel development under the Income Tax Act: a 
five-year tax holiday  is granted to new 2- to 4-star hotels located in the National Capital 
Territory of Delhi (and some neighbouring districts185) which started operations between 
1 April 2007 and 1 July 2010186; and to 2- to 4-star hotels starting operation in UNESCO World 
Heritage sites187 between 1 April 2008 and 31 March 2013.188 In addition, as of 2010, capital 
expenditure in new hotels is fully deductible  for income tax purposes.189 
41  TURKEY - WT/TPR/S/259/REV.1 (5TH REVIEW, 7 MARCH 2012) 
P. 68, paras. 102 and 103 
(iv) Free zones, special economic areas 
Financial incentives available to free-zone companies include exemption from payment of 
customs duties and fees; exemption from  corporate, income, and value-added taxes;  free 
repatriation of profits; 100% repatriation of capital without prior permission; and absence of 
foreign exchange restrictions. New arrangements for tax incentives in the free zones were introduced under Law No. 5084 of 29 January 2004 on the Encouragement of Investments and 
Employment. Pursuant to Law No. 5084, all exemptions except those already accorded to 
established firms were to be terminated by 31 December 2008. However, according to Law No. 5810 of 12 November 2008 (amending Law No. 3218) only free-zone users operating under a 
production licence may be exempted from income and corporate taxes. This exemption applies 
until the end of the taxation period of the year  in which Turkey becomes a full member of the 
EU.
190  
Enterprises established in the free zones are active in a wide range of areas, including 
high-technology products, leather goods, and storage  facilities. All industrial, commercial  and 
service  operations deemed appropriate by the Supreme Planning Board may be conducted in the 
Free Zones, under Article 10 of the Free Zones Regulation. Offshore banking and insurance 
business is not allowed. […]. 
Pp. 98-98, para. 67 and Box IV.1 
(i) Banking 
[…] The Savings Deposit Insurance Fund (SDIF) was given a key role in the protection of public 
rights and the management and disposal of asse ts of banks entering into administration or 
liquidation procedures (Box IV.1). The overhaul  of the Turkish banking system, including the 
restructuring of public banks, is estimated to have cost the Government some US$53.6 billion.  
                                               
184 Ministry of Tourism (2009). 
185 Faridabad, Gurgaon, Gautam Budh Nagar,  and Ghaziabad (Ministry of Tourism, 2009). 
186 Originally the incentive was granted for hotels developed up to 31 March 2010. An extension to 
31 July 2010 was granted to speed up the construction of the accommodation needed for the Commonwealth Games in October 2010 ( The Financial Express , "Tourism ministry seeks 5-yrs tax holiday extension for Games 
hotels till July 31", 20 January 2010). 
187 Excluding Delhi and Mumbai districts. 
188 Ministry of Tourism (2010a). 
189 Ministry of Finance (2011a). 
190 Free zone users obtaining an operating licence ot her than for production after 6 February 2004 do 
not benefit from income and corporate tax exemptions. For tenants holding an operating licence on that date, 
the corporate tax exemption has remained applicable fo r the period of validity of  the operating licence, 
whereas income tax on wages became payable as from 2009.   S/WPGR/W/25/Add.6 
 
- 96 - 
 
  Box IV.1: Turkey's Savings Deposit Insurance Fund  
Established in 1983 to ensure deposits, and granted an additional role to strengthen and restructure banks 
(in 1994), the SDIF originally reported to the Central Bank of Turkey. The Banking Law adopted in 1999 transferred the representation and administration of the SDIF to the newly founded BRSA. The SDIF became a separate legal entity in 2003.  
In all, 25 banks were taken over by the SDIF be tween 1994 and 2003. The banks were resolved through 
merger, sale, or direct liquidation. Among the 25 bank s, 6 were under direct li quidation, 4 were sold 
directly, 6 were disposed of through mergers, 1 was me rged with a public bank, and 8 were transferred to 
the "Joint Fund Bank Inc.", which is limited to operations directly related to asset liquidation as a "transition bank".  
The average settlement process for the banks taken ov er by the SDIF was 14 months, except for the 6 
banks in the process of liquidation and the Joint Fund Bank Inc. The losses of the banks transferred to 
the SDIF  totalled US$23.2 billion, and the resources transferred to the banks by the SDIF amounted to 
US$30.2 billion, including nearly US$6.6 billion in depositor compensation following the collapse of a major bank in 2003. The balance sheet of the Joint Fund Bank  Inc. has been scaled down significantly since 2006. 
At the end of 2009, the bank's loan portfolio had been  reduced to TL 193 million, including TL 61 million in 
non-performing loans. As of the end of 2010, the SDIF had collected US$19.7 billion from the resolved banks.  
The SDIF guarantees deposits up to TL 50,000 per customer (per bank) in lira, foreign currency or gold. 
Membership in the scheme is compulsory for all banks accepting deposits in Turkey. The SDIF is funded by a risk-based premium collected quarterly from the part icipating banks. If necessary, the SDIF may also 
borrow government securities from the Treasury, re ceive advances from the Central Bank, or collect 
insurance premiums in advance. At the end of 2010, the 36 member banks held deposits totalling 
US$401.5 billion, of which US$99.5 billion was insured. The SDIF reserve amounted to US$5.4 billion.  
Source:    BRSA (2010),  From Crisis to Financial Stability Turkey Experience,  Working Paper (Revised Third 
edition), 3 September. Viewed at: http://www.bddk.org.tr/WebS itesi/english/Reports/ 
Working_Papers/8675from_crisis _to_financial_stability _turkey_experience_3rd_ed.pdf ; and 
the SDIF. 
 
P. 99, para. 68 
The global financial crisis in 2008-09 led to a surge in non-performing loans in the Turkish banking 
sector, but no intervention was needed to rescue individual banks.191 […]  
P. 103, para. 84 
(iii) Transport (a) Maritime transport […] In addition to the special tax incentives  offered through the international register, flying the 
Turkish flag allows the vessels to perform cabotage operations in Turkish waters and a 10% price 
preference in bidding for the transport of public cargoes or strategic raw materials.
192 […].  
P. 104, para. 90 
(c) Rail transport 
The Turkish State Railways (TCDD) has a de jure  monopoly in providing rail passenger and freight 
transport services in Turkey. The TCDD owns and operates the entire railway system. The 
reorganization and restructuring of the loss-making  TCDD has been a key area of reform under 
the Ninth Development Plan (2007-2013). […].  
                                               
191 The guarantee of deposits was unlimited between 1994 and 2000, and the unlimited coverage was 
reintroduced during the crisis in 2001. The present guaranteed amount (TL 50,000) has remained unchanged since 2003. However, as a precautionary step, authority to determine the coverage and amount was transferred from the SDIF to the Council of Ministers in November 2008 for a period of two years. Temporary relaxed rules on loan provisioning and restructuring were ended on 1 March 2011.   
192 Pursuant to the Cabotage Law, merchant mariti me transport and passenger services, pilotage, and 
all other port services may only be provided by Turkish- flag ships. For further details regarding the incentives 
and privileges, see WTO (2003) and WTO (2007).   S/WPGR/W/25/Add.6 
 
- 97 - 
 
  P. 106, para. 100 
(iv) Tourism 
The Government provides a number of incentives  for investments in tourist  facilities, including 
the allocation of public land on 49-year leases, the provision of water and electricity at low rates, 
tax exemptions on imported goods,  as well as exemptions from VAT and other taxes  on 
purchases of local products. Many tourism projects are being contemplated as public-private-sector partnerships, constructed on a build-operate-transfer or similar basis.  
42  CHINA - WT/TPR/S/264/REV.1 (4
TH REVIEW, 20 JULY 2012) 
P. 65, para. 170 
(3) M EASURES AFFECTING PRODUCTION AND TRADE 
(i) Taxation and tax incentives 
(a) Overview 
Since 2011, preferential taxes  have been granted on energy-management contract projects for 
eligible energy services companies,  in accordance with the Notice of the Ministry of Finance and 
the State Administration of Taxation on Issues Concerning the Value-added Tax, Business Tax and 
Enterprise Income Tax Policies for Promoting the Development of the Energy Services Sector (Cai Shui 110/2010). Energy services compan ies that meet prescribed conditions on 
contract-based energy management projects are exempted from the business tax and the 
value-added tax. 
P. 67, para. 183 
(d) Tax incentives 
Under the Enterprise Income Tax Law, incentives are given to enterprises investing in less 
developed regions, such as western China, and fo r  i n v e s t m e n t  i n  a c t i v i t i e s  e n c o u r a g e d  b y  t h e  
Government, such as agriculture, environmental protection, renewable energy, software  and 
integrated circuits industries, and securities investment and fund development.  […]. 
Pp. 68-69, paras. 189-190 
(ii) Subsidies and other government assistance193 
(a) General features 
The use of subsidies and other government assist ance appear to be an important feature of 
China's trade policy making. However, because of  the limited information made available to the 
Secretariat, it is difficult to confirm this. In general, very few details are available on China's 
subsidies and other government assistance, particularly at the sub-central level, on their type and 
size, the financial outlays involved, and the ob jectives of the programmes and their results. 
Government assistance to business is granted at the central and sub-central (e.g. provincial) 
levels. The main instruments of support are direct grants, subsidized loans, and tax benefits,  
which include exemption or reduction of value-added tax, enterprise income tax, and import duties.  
                                               
193 The use of the term "subsidies" in this report is no t confined to the definition provided in Article 1 of 
the Agreement on Subsidies and Countervailing Measures.    S/WPGR/W/25/Add.6 
 
- 98 - 
 
  Pp. 69-70, paras. 195 and 197 
(b) Assistance to the energy sector and to undertakings aimed at environmental protection 
[…] Construction  projects for electricity generation from renewable energy benefit from 
subsidized loans.194 
Under the Golden Sun Demonstration Project195, which aims to provide assistance for construction 
projects of solar power generation, construction  investment may receive grants up to 50% for 
power generation and distribution and up to 70% for projects in remote regions not covered by the 
national power grid.196 Grants are also accorded to projec ts to build solar power panels for 
buildings in urban and rural areas.197  
P. 157, para. 258 
(5) S ERVICES  
(iv) Transport 
(c) Air transport  According to the Chinese authorities, there is no specific support or subsidy policy for domestic 
airlines except for support to national airlines opening feeder routes to connect remote areas or 
areas with backward economic development, so as to ensure universal service.  […]  
P. 159, para. 270 
(iv) Transport (d) Rail transport services  Trade regime  […] The Ministry of Railways is both the regulator and the operator of the national railway network 
and carries out its operations through its railway enterprises and particularly its regional railways 
bureaux. However, the system is to be reformed wi th a view to separating the regulatory functions 
from the operational functions. The rail price-setti ng mechanism will be further reformed as will 
the mechanisms for investment in and financing of rail construction and for the subsidization of 
public rail transport services.  […].    
P. 168, para. 322 
(vii) Postal and courier services […] At present, the scope of postal enterprises' exclusive rights is being specified by relevant 
authorities. The state subsidizes  the postal enterprises for the provision of universal postal 
services,  which are defined as the delivery of correspondence, printed matters not heavier than 
                                               
194 The State Development Planning Commission (SDPC) and the Ministry of Science and Technology 
(MOST) Joint Circular on Issues Concerning Further Support to Renewable Energy  Development (in Chinese). 
Viewed at: http://www.crein.org.cn/paperfiles/paper/state-document/SDPC/002.htm .   
195 Ministry of Finance Circular Cai Jian 2009/129, 23 March 2009. Viewed at: http://www.gov.cn/ 
zwgk/2009-03/26/content_1269258.htm . 
 196 To be eligible for the assistance, projects must, inter alia , be selected in a regional implementation 
programme for the Golden Sun Demonstrat ion Project, and each individual project's capacity must be less than 
300kW.   
197 To be eligible, each individual project's capacity must not be less than 50kW. Grants at the rate of 
¥20/W are accorded to projects deemed to integrate opto-electronic parts into building materials or construction parts. Grants at the rate of ¥15/W are accorded to projects deemed to integrate opto-electronic 
parts into the surface of buildings. Fo r details, see Interim Administration Measures for Fiscal Subsidy Fund for 
Optoelectronic Application Buildings (in Chinese). Viewed at: http://www.gov.cn/zwgk/2009-03/26/ 
content_1269258.htm .  S/WPGR/W/25/Add.6 
 
- 99 - 
 
  5 kg, and parcels not heavier than 10 kg each, and postal remittance. A universal postal service 
fund will be set up to support the provision of universal postal services. […]. 
P. 175, para. 355 
(ix) Logistics services 
The Bohai Bay Region has high logistics demand and freight traffic; Shandong Province has the 
highest freight traffic volume in China. Logistics activities in Tianjin, the economic centre of North China, are currently centred around Tianjin Airport and the Binhai New Area, which consists of the 
Tianjin Port and the Tianjin Economic Techno logical Development Area (TEDA). The central 
government has identified logistics as a key growth area for the city, and strongly supported  
municipal plans to develop the Binhai New Area and enhance the city's logistics infrastructure. […]. 
43  SINGAPORE - WT/TPR/S/267/REV.1 (6
TH REVIEW, 18 OCTOBER 2012) 
P. 41-42, para. 68 
(3) M EASURES AFFECTING PRODUCTION AND TRADE 
(i) Incentives 
Singapore maintains a wide array of incentive schemes in the form of tax incentives and grants  
to assist companies. These, inter alia , are intended to encourage Singapore-based companies to 
expand and internationalize production; invest in research and development (R&D) and training; 
promote investment in technology; access procurement opportunities and support the 
development of small and medium sized enterprise s (SMEs) and start-up companies. A number of 
incentive schemes are also geared towards making Singapore attractive as a centre for services 
activities  and a base for global or regional headquarters.  
P. 43-44, para. 73 and Box III.1 
Major new incentive schemes introduced over the review period are summarized in Box III.1. […]. 
As noted in Singapore's previous Review, there ar e no publicly available studies on tax revenue 
foregone as a result of tax incentives offered.  
Box III.1: New incentive schemes, 2008-12 
Fiscal incentives  
[…]  
Tax incentives for 
ship brokers and forward freight agreement (FFA) traders  
Introduced in 2010 Budget. Concessionary corporate income tax rate of 10% (on 
incremental income derived from ship brokin g and FFA trading) for ship brokers and 
FFA traders. Scheme is for a five-year period (April 2010 to March 2015). Scheme has been subsumed under the Maritime Sector Incentive (see Chapter IV(2)(iv)). 
Incentive to promote insurance and re-insurance broking activities  Introduced in 2008 Budget. 10% tax rate (for up to ten years) on fees and 
commissions of qualifying direct and re insurance brokers from insurance broking 
and advisory services to non-Singapore-ba sed clients. Incentive valid until March 
2013 and administered by the Monetary Authority of Singapore (MAS).  
[…]  
  
Source: Singapore Budgets 2008-2010. IRAS online information. Viewed at: http://www.iras.gov.sg . S/WPGR/W/25/Add.6 
 
- 100 - 
 
  IV. T RADE POLICIES BY SECTOR  
(2) Services P. 58, paras. 11 and 12 
(ii) Financial services 
The MAS offers various incentives to financial institutions (Table IV.3). The main tax incentive  is 
the Financial Sector Incentive (FSI), which offers concessionary tax rates of 12% or 10% or 5% on 
income from qualifying activities that are important to Singapore's financial sector growth. 
Financial institutions (both foreign and national) may obtain these incentives if they meet the 
qualifying criteria. The MAS monitors the effectiveness of all incentives through a series of post-implementation reviews, which are neither published nor publicly available. 
Singapore has evolved into a major asset-management  centre over the past few years, with assets 
reaching S$1.4 trillion in 2010 (up from S$891 billion at end 2006), 80% was from international 
sources. The Government and the MAS are enco uraging the development of a fund-management 
industry to attract well-recognized firms to Si ngapore. Fund managers approved under the FSI-
Fund Management award are accorded a concessionary corporate tax rate of 10% on income 
from fees and commissions  derived from qualifying funds managed, investment advisory 
services provided or loans of securities arranged by such managers in Singapore.
198 
Pp. 59-60, Table IV.3 
Table IV.3 
Incentives schemes offered by the Monetary Authority of Singapore, 2012 
Scheme and summary description Changes over review period 
Asset Securitization 
Tax exemption  for income derived from asset securitization 
arrangements through Approved Special Purpose Vehicles (ASPVs) based in Singapore. Tax concessions for withholding tax, stamp duty, and GST concession for qualifying transactions Renewed in the 2008 Budget until 2013. 
 
Fund Management Incentive Scheme 
Qualifying funds benefit from a tax exemption  on specified 
income from designated investments, subject to investor residency conditions The 2009 Budget introduced an enhanced 
tier that does not impose any investor residency conditions, subject to the fund meeting certain economic commitments. The scheme is open to fund vehicles in the form of companies, trusts, and limited 
partnerships. All fund management schemes expire 31 March 2014. 
Locally Administered Trust (i.e. Domestic Trust) 
Tax exemption  for specified income (by qualifying local 
trusts and eligible underlying holding companies that are administered by a trustee comp any in Singapore) that would 
not have been taxable if receiv ed directly by any individual None 
 
Tax incentive for trustee company 
Tax concession  on qualifying fee income derived by an 
approved trustee company from providing trustee services to 
certain trusts (i.e. trusts under a foreign trust scheme) As a result of the 2011 Budget, a sunset 
clause of 31 March 2016 was imposed on the scheme and an incentive tenure of 10 
years was introduced to the recipients of 
this scheme. The scope of qualifying activities was also expanded. 
                                               
198 Specific requirements for obtaining AFM status include that the activities pursued should be 
important to Singapore's financial-sector development objectives. The AFM scheme merged into the FSIF, which entered into effect in January 2004. S/WPGR/W/25/Add.6 
 
- 101 - 
 
  Scheme and summary description Changes over review period 
Foreign Trust 
Tax exemption  on specified inco me from designated 
investments received by the foreign trust None 
Foreign Charitable Purpose Trusts 
Tax exemption on specifie d income from designated 
investments made by qualifying charitable-purpose trusts or their eligible holding companies None 
Financial Sector Incentive Scheme (FSI) 
A) Tax concessions  on income derived from FSI-Standard 
Tier and FSI-Enhanced Tier qualifying activities in the debt capital market, equity capital market, treasury, fund management, and headquarter services, etc. 
   Renewed in the 2008 Budget for 2009-13, 
and enhanced to give 5% concessionary tax rate for five years on income from Sharia compliant activities. As a result of the 2010 Budget, the list of incentivized activities was updated. Over the re view period various 
schemes were subsumed under the FSI scheme: the Commodities Derivatives Traders (CDT) scheme; the Futures Members of the Singapore Exchange (SGX).  
 
Financial Sector Incentive Headquarter Se rvices (FSI-
HQ) Scheme 
10% concessionary tax rate  on qualifying income derived 
from providing qualifying services to qualifying network companies Enhanced in the 2009 Budget to, inter alia , 
grant withholding tax exemption (on an application basis) on interest payments on 
qualifying loans taken by a FSI-HQ company. 
Offshore Insurance Business Incentive 
10% tax (for up to 10 years) on qualifying income derived 
from an offshore insurance bu siness conducted in Singapore 
  Enhanced in the 2008 Budget to provide 5% 
concessionary tax rate (for five years) on income from offshore Islamic insurance. Approval period 2008-13. 
As a result of 2010 Budget, the scheme 
(excluding the offshore  Islamic concession) 
was extended until 2015.  
Tax incentive for Captive Insurers and Tax Incentive 
for Marine Hull and Liability Insurers 
Tax exemption on qualifying income derived by approved 
captive insurers/insurers from marine hull and liability insurance business, for up to 10 years As a result of the 2011 Budget, the tax 
incentive for captive insurers was extended until 31 March 2018, while a sunset clause of 31 March 2016 was introduce for the tax incentive for marine hull and liability insurers. For both incentives, an award renewal framework was introduced for incentive recipients  with effect from 
February 2011. 
Tax incentive for Specialised Insurers 
Tax exemption on qualifying income derived by approved 
insurers from a qualifying offshore specialized insurance business for five years As a result of the 2011 Budget, the scheme 
was extended until 31 August 2016. An award renewal framework was introduced for incentive recipients. 
Bond Market Incentives 
Tax exemption on income from (a) qualifying debt securities 
(QDS) and (b) trading in Singapore Government Securities by 
primary dealers As a result of the 2008 Budget, the scheme 
was extended until 2013. The scheme was also enhanced to exempt all investors from 
income tax on qualifying income derived 
from Islamic bonds and debt securities of at least ten years. 
Withholding Tax Exemption Regime for Banks 
Banks may benefit from withholding tax exemption on 
interest and other qualifying  payments made to their 
branches or other banks outside Singapore Liberalized as a result of the 2011 Budget. A 
withholding tax exemption is granted on interest and other qualifying payments made by banks and fina nce companies to all 
non-resident persons. A sunset clause of 31 
March 2021 was also imposed on the scheme. 
Incentive Schemes fo r Project Finance 
Package of tax incentives for promoting project finance 
targeted at investors, intermed iaries, and fina ncing vehicles As a result of the 2011 Budget, these 
schemes (excluding FSI-PF) were extended until 2017. 
Source: Information provided by the authorities of Singapore. S/WPGR/W/25/Add.6 
 
- 102 - 
 
  P. 71, para. 54, Table IV.7 and para. 55 
(iv) Transport 
(a) Maritime transport To develop Singapore as a leading international maritime centre, the MPA collaborates with 
industry partners to provide shipping companies with a one-stop location for port, shipping, and 
other maritime activities, as well as services  in ship management, ship financing, marine 
insurance, ship broking, maritime legal services, and marine and offshore engineering. Singapore 
has consolidated all tax incentive schemes  for the maritime sector under the Maritime Sector 
Incentive (Table IV.7).  
Table IV.7 
Main features of the Maritime Sector Incentive, 2011  
Name of award Major benefits 
MSI-Singapore Registry of Ships (MSI-
SRS) Qualifying income derived from operating or chartering of a 
Singapore-registered ship outside the port limits of Singapore is tax-exempt.   
MSI-Approved International Shipping 
Enterprise (MSI-AIS) 
 Qualifying income derived by an  approved company from operating 
or chartering of Singapore- and foreign-flagged vessels outside the 
port limits of Singapore is tax exempt  for up to 10 years, with the 
possibility of extension for further periods of 10 years up to a total 
of 30 years.  
MSI-Shipping-related Support Services (MSI-SSS)  
 MSI-Maritime Leasing (MSI-ML) Qualifying incremental  income derived from the provision of 
shipping -related support services by  an approved company is 
eligible for a concessionary tax rate  of 10% for five years. 
An approved ship/container inve stment vehicle be nefits from 0%, 
5% or 10% tax on qualifying income for 5 years. The approved manager benefits from a concessionary tax rate  of 10% for 5 
years.  
Source: Singapore authorities. 
The MPA also provides maritime companies with other support schemes,  such as the 
S$100 million Maritime Innovation and Technology (MINT) Fund and the S$100 million Maritime 
Cluster Fund (MCF), to encourage maritime resear ch and development, as well as manpower and 
business development needs.  
Pp. 71-72, para. 57 
(b) Air transport Overview […] The Civil Aviation Authority of Singapore (C AAS) has been restructured to separate its 
strategic and regulatory functions from the management of the airport, to allow the new airport 
company greater flexibility in operating in an increasingly competitive environment. The CAAS has 
launched a new incentive scheme  (Aviation Development Fund) to enhance the competitiveness 
of the Singapore aviation industry. 
P. 77, para. 74 
(v) Professional services 
(b) Developments over the review period (2008-12) 
Incentives  have been introduced to encourage law practices to do more international services 
work from Singapore. As a result of the 2010 Budget, the Development and Expansion incentive 
(DEI) scheme was extended to international legal services. The incentive is open to law practices S/WPGR/W/25/Add.6 
 
- 103 - 
 
  that are incorporated as companies in Singapore. Law practices awarded the incentive will enjoy a 
10% concessionary tax rate  for a period not exceeding 5 years on their qualifying income 
derived from the provision of international legal services in Singapore, in excess of a base (Chapter III(3)(i)). 
44  REPUBLIC OF KOREA - WT/TPR/S/268/REV.1 (6
TH REVIEW, 8 NOVEMBER 2012) 
P. 39, para. 61 
(7) F OREIGN INVESTMENT REGIME  
Korea provide a range of tax incentives  for FDI (Table II.2), for limited periods, and on an MFN 
basis to foster a more favourable business climate for new foreign-invested companies, particularly 
during the initial stages of their investment in Korea. These generally consist of: full and partial 
corporate income tax concessions  for up to seven years (since 2005); similar concessions on 
various local taxes  (acquisition, property, and property taxes); and full exemptions from 
customs duties  (customs, special excise, and value-added taxes) on imported capital goods for 
up to three years. Following the 2010 amendment to the Special Tax Treatment Control Law, the 
cumulative tax incentive is limited to an aggregate of 50%-70% of the investment amount and 
₩ 10 million per new employee (up to a maximum of 20% of the investment amount).199 The 
incentives apply to "greenfield" FDI (where no previous investment exists)200, and foreign stock 
acquisitions in eligible advanced-technology investments and industry-supporting service 
industries.  […] Minimum FDI levels for these tax incentives apply to firms established in foreign 
investment zones (FIZs), free-trade zones (FTZs), free economic zones (FEZs), etc. (Table II.2). 
The scope of these incentives was expanded as of January 2011, to cover the services sector 
activities in these special economic zones201; furthermore, the MKE aims to extend tax 
incentives to the services  sector by the end 2012 by amending relevant legislation. 
Pp. 40-41, Table II.2 
Table II.2 
Summary of FDI tax incentives, 2012 
(a) National tax (corporation tax, income tax) and local taxa (acquisition tax, property 
tax) reduction 
Business category Investment amount Reduction period and 
details Remarks 
1. Industry support service & high degree technology 
business Seven years in total 
according to the following 
ratio (amount multiplied by the foreign investment 
ratio) 
- 100% for five years after 
income creation 
- 50% for next two years With more than 
ten employees with 
Master's degree or 
above 2. Businesses in stand-alone-type foreign investment 
zones (FIZ)b 
Manufacturing Over US$30 million 
Tourism Over US$20 million 
Logistics Over US$10 million 
R&D Over US$2 million 
3. Businesses in complex-type foreign investment zones 
(FIZ)  Five years in total according 
to the following ratio 
(amount multiplied by the 
foreign investment ratio) 
- 100% for three years after 
income creation  
- 50% for next two years  
Manufacturing Over US$10 million  
4. Businesses in free-trade zones (FTZ)   
Logistics Over US$5 million  
5. Businesses in free economic zones   
Manufacturing Over US$10 million  
                                               
199 Previously, the Special Tax Treatm ent Control Law waived corporate income tax for certain types of 
high-tech FDI and investment in certain foreign-inve stment zones. The waiver was full exemption for the 
first five years, with a 50% waiver in the sixth and seventh years (EIU, 2011a). 
200 The number of FDI-driven greenfield projects concluded in Korea increased from 88 in 2008 to 112 
in 2010 (UNCTAD, 2011b). 
201 The Government has long pushed for the expansion of  tax incentives to the services sector, including 
the medical industry, in order to encourage inward FDI in the sector (MKE informat ion, "Free Economic Zone 
Promotion Plan", 1 September 2010, and "Modification of the Enforcement Decree on the FDI Act", 5 October 2010, cited in UNCTAD, 2011b). S/WPGR/W/25/Add.6 
 
- 104 - 
 
  Business category Investment amount Reduction period and 
details Remarks 
Tourism Over US$10 million  
Logistics Over US$5 million  
Medical institution Over US$5 million  
6. Free economic zone (FEZ) developer   
– Over US$30 million; over 50% of 
foreign shares and US$500 million 
on business costs  
7. Businesses in business city development zone   
Manufacturing Over US$10 millionc  
Engineering  
Additional 
communication   
Information processing 
& other computer 
operation-related 
businesses  
Science & technology 
service  
Tourism  
Culture industry  
Various facilities  
Renewable energy 
generation  
R&D Over US$2 milliond  
Logistics Over US$5 millione  
8. Business city developer   
– Over US$30 million; over 50% of 
foreign shares and US$500 million 
on business costs  
JEJU INTERNATIONAL FREE CITY    
9. Businesses in Jeju high-tech science and technology 
complex  
Five years in total 
(unrelated to foreign 
investment ratio) 
- 100% for three years after 
income creation 
- 50% for next two years On condition of entry by 
31 December 2012, reduction only for national tax Bio engineering  
Information 
communication  
Culture industry  
High-tech and products  
10. Businesses in Jeju investment promotion district  
On condition of entry by 
31 December 2012 Tourism 
Over US$5 million Culture industry 
Various facilities 
Renewable energy 
generation 
Electronics, electrical, 
information, new material, 
and bio engineering 
industries 
Foreign educational 
institutionsf 
Medical institutions 
11. Businesses in free-trade zones   On condition of entry by 
31 December 2012 Manufacture Over US$10 million with more 
than 100 full-time employees  
Logistics Over US$5 million  12. Jeju investment promotion district developers  Five years in total according 
to the following ratio 
(amount multiplied by the 
foreign investment ratio) 
- 100% for three years after 
income creation 
- 50% for the next two 
years  
– Over 50% of foreign shares and 
US$100 million on business costs  
– Over US$10 million  
 S/WPGR/W/25/Add.6 
 
- 105 - 
 
  (b) Exemption of tariffs, special ex cise tax, value-added tax, etc. 
Business category Taxes Items Remarks 
Industry support service  & high 
degree technology business Tariff; special excise 
tax; value-added tax 
Capital goods imported with 
invested cash or as investment object On condition of import 
within  five years from 
the day of declaring 
foreign investment Businesses in stand-alone type foreign 
invested zones (FIZ) Tariff; special excise 
tax; value-added tax 
Businesses in complex-type foreign 
invested zones (FIZ) 
Tariff Businesses in free trade zones (FTZ) 
Businesses in free economic zones 
(FEZ) 
Free economic zone (FEZ) developer 
Jeju International free city    
Businesses in Jeju high-tech science and technology complex Tariff Tariff reduced goods under 
Item 5, paragraph 1, Article 
90 of the Customs Law for 
use in R&D 
On condition of import 
by 31 December 2012 Businesses in Jeju investment promotion district Tariff Goods for which import 
declarations are made within three years from the day of designation as Jeju investment promotion district, 
which has been checked by 
the director of the Jeju International Free City Development Center 
a According to the local government regulations, the period of local tax reduction may be extended up 
to 15 years, or the reduction ratio may be increased. 
b Free-export zones (Iksan, Massan) are considered as  stand-alone-type foreign investment zones, with 
no limitations on investment amount for establishing factory facilities. 
c On condition of entry before 31 December 2012, a choice is given between this reduction and the 
business city development zone related reduction of  national and local tax "regardless of foreign 
investment ratio" upon an investment of over ₩ 10 billion. 
d On condition of entry before 31 December 2012, a choice is given between this reduction and the 
business city development zone related reduction of  national and local tax "regardless of foreign 
investment ratio" upon an investment of over ₩ 2 billion. 
e On condition of entry before 31 December 2012, a choice is given between this reduction and the 
business city development zone related reduction of  national and local tax "regardless of foreign 
investment ratio" upon an investment of over ₩ 5 billion. 
f Foreign education institution and international high school. 
Source: WTO document WT/TPR/S/204/Rev.1, 4 December 2008; and information provided by the Korean 
authorities.  
Pp. 86-87, para. 145 
(4) M EASURES AFFECTING PRODUCTION AND TRADE 
(i) Taxation 
(c) Tax incentives 
[…]  SMEs benefit substantially from tax incentives.202 SMEs in wholesale, retail, medical 
services, or auto repairs  located in non-metropolitan areas receive a 5% rate reduction. SMEs 
also receive larger tax incentives than those ge nerally available, for example, much larger tax 
credits for investment in technology and human resource development.  
                                               
202 See WTO document WT/TPR/S/204/Rev.1, 4 December 2008 for more details. S/WPGR/W/25/Add.6 
 
- 106 - 
 
  P. 87, para. 148 
(ii) Financial assistance  
(a) Loans, guarantees, and other financial measures State-owned financial institutions have a major role in assisting Korea's industrial development. 
State intervention dominates the large venture capital market, which benefits mainly SMEs. 
Venture capital is invested through venture capital firms (VCFs) and limited partnership funds (LPFs). Since 2005, the Fund of Funds, has invested  in LPFs and contributed to the formation of 
the private venture investment market. In late 2011, the Fund of Funds amounted to 
₩ 1.36 trillion ( ₩ 630.1 billion in 2007), was mostly financed by government funds, and had 
invested in five areas (SMEs, culture, broadcasting, movies,  patents). The number of venture 
corporations increased from 7,967 in 2004 to 24,645 in 2010.  
P. 90, para. 161 
(iii) State-owned enterprises and privatization  
State involvement in the economy (Table III.4) persists despite recent privatization efforts, 
particularly in the services  s e c t o r  ( C h a p t e r  I V ) .  [ … ] .  N o  r e c e n t  d a t a  w e r e  a v a i l a b l e  f r o m  t h e  
authorities on employment by SOEs (88,000 in 2008) or their assets (US$267 billion in 2008) or data relating to their contribution to GDP, th eir incidence in domestic production and trade 
(domestic, foreign), losses  occurred by their operations, and budget outlays provided to cover 
them  (since 2008).  
P. 139, para. 84 
(iv) Financial services 
(a) Banking and finance 
Restructuring Since the 1997 financial crisis, financial sector restructuring has been focused on improving the 
financial infrastructure. Between November 1997 and June 2010, total government support  for 
financial restructuring was ₩ 168.6 trillion, of which ₩ 63.5 trillion was used for recapitalization,  
₩ 38.5 trillion for the purchase of non-performing loans, and ₩ 30.3 trillion for the payment of 
deposit insurance claims.
203 […].  
P. 150, paras. 123-124 
(vi) Transport (a) Maritime transport 
The Government does not intervene directly in pr oviding shipping services, but provides various 
financing and tax schemes  to assist shipping companies; no data on budgetary costs of these 
schemes since 2008 were available from the authorities. […].  
Vessels registered at the Jeju and Seogwipo ports in Jeju island benefit from local tax breaks  
relating to acquisition and property taxes. […]. 
                                               
203 Bank of Korea (2010). S/WPGR/W/25/Add.6 
 
- 107 - 
 
  P. 152-153, para. 133 
(c) Land transport 
[…] Bus companies receive partial subsidies for losses,  in the form of matching central-local 
government funds (total support provided to buses was ₩ 174 billion in 2011), and, along with 
taxi operators, receive a portion of the fuel tax revenue back as a subsidy; this amounted to 
₩ 940 billion in 2011.  
45  NORWAY - WT/TPR/S/269/REV.1 (6TH REVIEW, 13 NOVEMBER 2012) 
P. 105, paras. 111-112 
IV. TRADE POLICIES BY SECTOR 
(6) S ERVICES  
(i) Financial services 
Despite strong credit growth and aggressive lending practices during 2004-07, Norwegian financial 
institutions were able to tackle the effects of the global financial crisis with only moderate 
government intervention  compared with other countries. Drawing upon Norway's experience of 
a deep financial sector crisis in the early 1990s, the authorities acted swiftly to ensure access to 
liquidity and longer-term funding. The Financial Supervisory Authority introduced a temporary ban on short selling in financial shares in October 2008.
204 Two weeks later, Parliament authorized the 
Ministry of Finance to swap government securities agai nst collateral or in return for 
Norwegian covered bonds  (OMF) within a limit of NKr 350 billion. The Government followed up 
with the launch of a credit package in February 2009, including the establishment of a Government Bond Fund with capital of NKr 50 billion, and a State Finance Fund  (also with capital of 
NKr 50 billion).
205 The purpose of the two funds was to help banks maintain normal lending to 
enterprises and households. As deposits were al ready considered sufficiently insured through the 
Norwegian Banks' Guarantee Fund (Box IV.2), no  extension of existing guarantees was deemed 
necessary.206  
Following the approval of the capitalization scheme by the EFTA Surveillance Authority, the State 
Finance Fund began operations in May 200 9 and set a deadline for applications for capital 
injections  of 30 September 2009. In all, 28 banks were  granted funding totalling NKr 4.1 billion. 
As the capital provided was relatively expensive and introduced caps on, inter alia, the payment of 
dividends, banks had an incentive to replace these contributions with equity or other forms of market-based funding on commercial terms in a normal functioning market. During 2010 and 
2011, ten banks chose to repay in full the capital received from the State Finance Fund, and the 
outstanding capital of the Fund totalled NKr 631.3 million at the end of 2011.
207  
                                               
204 The rules regarding short selling were made stricter in 2010.   
205 Banks seeking capital injections from the State Fi nance Fund would have to accept disciplines on 
executive pay and bonuses.   
206 However, intervention was required with the co llapse of one Icelandic-owned Norwegian bank and 
the Norwegian branch of another Icelandic bank in Oc tober 2008. Glitnir Bank ASA was sold to a group of 
Norwegian savings banks, while Kaupthing Bank hf  NUF was wound-up and all deposits repaid.   
207 Ministry of Finance (2012).   S/WPGR/W/25/Add.6 
 
- 108 - 
 
  P. 110, para. 133 
(iii) Maritime transport 
[…] A system of net salaries  for ships' crews employed on NOR-registered vessels has also 
been continued. Thus, Norway's tax regime for shipping companies is comparable to those applied 
by EU member states and compatible with the state aid rules in the EEA. The Norwegian Maritime 
Strategy, presented by the Government in 2007, advocates global regulation of the maritime 
industries to prevent tax competition.208 Norway would back international initiatives to reduce 
state tax subsidies to maritime transport. 
                                               
208 Ministry of Trade and Industry (2007). S/WPGR/W/25/Add.6 
 
- 109 - 
 
  ANNEX 3 
TABLE OF CONTENTS OF REVIEWED TPR REPORTS 
1  COSTA RICA - WT/TPR/S/180/REV. 1 (3RD REVIEW, 2 AUGUST 2007)...................... 14  
2  MACAO, CHINA - WT/TPR/S/181/REV .1 (3RD REVIEW, 8 JUNE 2007) ...................... 18  
3  CENTRAL AFRICAN REPUBLIC - WT/TPR/S/183/REV.1 (1ST REVIEW, 
30 JULY 20 07) ............................................................................................................... 1 8 
4  INDONESIA - WT/TPR/S/184/REV.1 (1ST REVIEW, 6 NOVEMBER 2007) ................... 19  
5  BAHRAIN - WT/TPR/S/185/REV.1 (2ND REVIEW, 23 OCTOBER 2007) ....................... 20  
6  PANAMA - WT/TPR/S/186/REV.1 (1ST REVIEW, 3 DECE MBER 2007) ......................... 20  
7  CAMEROON - WT/TPR/S/187/REV.1 (3RD REVIEW, 5 DECEMBER 2007) .................... 22  
8  GABON - WT/TPR/S/188/REV.1 (2ND REVIEW, 5 DECEMBER 2007) ........................... 23  
9  PERU - WT/TPR/S/189/REV.1 (3RD REVIEW, 17 DECEMBER 2007) ............................ 24  
10  ORGANIZATION OF EASTERN CARIBB EAN STATES (OECS) - WTO MEMBERS ............ 26  
10.1  Antigua and Barbuda WT/TPR/S/190/ATG/Rev.1 (2nd review, 18 April 2008) .................... 26 
10.2  Dominica WT/TPR/S/190/DMA/Rev.1 (2nd review, 18 April 2008) .................................... 27 
10.3  Grenada WT/TPR/S/190/DMA/Rev.1 (2nd review, 21 Ap ril 2008) ..................................... 28 
10.4  Saint Kitts and Nevis WT/TPR/S/190/KNA/Rev.1 (2nd review, 21 April 2008) ..................... 29 
10.5  Saint Lucia WT/TPR/S/190/LCA/Rev.1 (2nd review, 21 April 2008) ................................... 29 
10.6  Saint Vincent and the Grenadines WT/TPR/S/190/VCT/Rev.1 (2nd review, 
21 April 2008) ................................................................................................................ . 31 
11  THAILAND - WT/TPR/S/191/REV.1 (5TH REVIEW, 6 FEBRUARY 2008) .................... 32  
12  PAKISTAN - WT/TPR/S/193/REV.1 (3RD REVIEW, 20 MAY 2008) ............................ 35  
13  GHANA- WT/TPR/S/194/REV.1 (3RD REVIEW, 7 MAY 2008) .................................... 36  
14  MEXICO - WT/TPR/S/195/REV.1 (4TH REVIEW, 2 MAY 2008) .................................. 37  
15  BRUNEI DARUSSALAM - WT/TPR/S/196/REV.1 (2ND REVIEW, 4 JUNE 2008) .......... 40  
16  MADAGASCAR - WT/TPR/S/197/REV.1 (2ND REVIEW, 28 MAY 2008) ...................... 42  
17  MAURITIUS - WT/TPR/S/198/REV.1 (3RD REVIEW,) ............................................... 44  
18  OMAN - WT/TPR/S/201/REV.1 (1ST REVIEW, 5 AU GUST 2008)  ............................... 46  
19  BARBADOS - WT/TPR/S/203/REV.1 (2ND REVIEW, 16 DECEMBER 2008) ................. 49  
20  JORDAN - WT/TPR/S/206/REV.1 (1ST REVIEW, 27 JANUARY 2009) ........................ 53  
21  DOMINICAN REPUBLIC - WT/TPR/S/207/REV.1 (3RD REVIEW, 
3 MARCH 2009) .............................................................................................................. 55  
22  SWITZERLAND AND LIECHTEN STEIN - WT/TPR/S/208/REV.1 (5TH AND 3RD 
REVIEW, 12 MA RCH 2009)  ............................................................................................. 56  
22.1  Switzerland ............................................................................................................. 56 
22.2  Liecht enstein........................................................................................................... 58 
23  MOZAMBIQUE - WT/TPR/S/209/REV.1 (2ND REVIEW, 30 JUNE 2009) ..................... 58  
24  GUATEMALA - WT/TPR/S/210/REV.1 (2ND REVIEW, 20 APRIL 2009) ...................... 60  
25  BRAZIL - WT/TPR/S/212/REV.1 (5TH REVIEW, 11 MAY 2009) ................................. 61  
26  FIJI - WT/TPR/S/213/REV.1 (2ND REVIEW, 16 JUNE 2009) .................................... 62  S/WPGR/W/25/Add.6 
 
- 110 - 
 
  27  SOLOMON ISLANDS - WT/TPR/S/215/REV.1 (2ND REVIEW, 24 JUNE 2009) ............ 67  
28  NEW ZEALAND - WT/TPR/S/216/REV.1 (4TH REVIEW, 10 JULY 2009) ..................... 68  
29  MOROCCO - WT/TPR/S/217/REV.1 (4TH REVIEW, 13 AUGUST 2009) ...................... 68  
30  GUYANA- WT/TPR/S/218/REV.1 (2ND REVIEW, 10 AUGUST 2009) .......................... 72  
31  ZAMBIA - WT/TPR/S/219/REV.1 (3RD REVIEW, 8 OCTOBER 2009) .......................... 72  
32  CHILE - WT/TPR/S/220/REV.1 (4TH REVIEW, 5 NOVEMBER 2009) .......................... 73  
33  MALDIVES - WT/TPR/S/221/REV.1 (2ND REVIEW, 20 AP RIL 2009 ) ......................... 74  
34  SACU - WT/TPR/S/222/REV.1 (3RD REVIEW, 14 DECEMBER 2009) .......................... 75  
34.1  Bots wana ............................................................................................................... 75 
34.2  Lesotho ................................................................................................................. . 75 
34.3  Namibia .................................................................................................................  76 
34.4  South Africa ............................................................................................................ 76 
34.5  Swaziland ...............................................................................................................  79 
35  NIGER AND SENEGAL - WT/TPR/S/223/REV.1 (2ND AND 3RD REVIEW, 
22 DECEMBER  2009) ...................................................................................................... 80  
35.1  Niger ................................................................................................................... .. 80 
35.2  Senegal .................................................................................................................. 80 
36  GEORGIA - WT/TPR/S/224/REV.1 (1ST REVIEW, 19 JANUARY 2010) ...................... 81  
37  UNITED STATES - WT/TPR/S/235/REV.1 (10TH REVIEW, 29 OCTOBER 2010) ......... 82  
38  JAPAN - WT/TPR/S/243/REV.1 (10TH REVIEW, 2 MAY 2011) .................................. 83  
39  EUROPEAN UNION - WT/TPR/S/248/REV.1 (10TH REVIEW, 1 AUGUST 2011).......... 85  
40  INDIA - WT/TPR/S/249/REV.1 (5TH REVIEW, 20 OCTOBER 2011) ........................... 87  
41  TURKEY - WT/TPR/S/259/REV.1 (5TH REVIEW, 7 MARCH 2012) ............................. 95  
42  CHINA - WT/TPR/S/264/REV.1 (4TH REVIEW, 20 JU LY 2012) ................................. 97  
43  SINGAPORE - WT/TPR/S/267/REV.1 (6TH REVIEW, 18 OCTOBER 2012) .................. 99  
44  REPUBLIC OF KOREA - WT/TPR/S/268/REV.1 (6TH REVIEW, 
8 NOVEMBER  2012) ..................................................................................................... 103  
45  NORWAY - WT/TPR/S/269/REV.1 (6TH REVIEW, 13 NOVEMBER 2012) ................. 107  
 
__________