G/SCM/N/275/ATG  
 
7 July 2014  
(14-3878)  Page: 1/4  
Committee on Subsidies and Countervailing Measures  Original: English  
 
  SUBSIDIES 
 
 TRANSPARENCY NOTIFICATION CONCERNI NG THE EXTENSIONS PROVIDED FOR  
IN ARTICLE 27.4 OF THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING  
MEASURES OF THE TRANSITION PERIOD FOR THE ELIMINATION OF EXPORT  
SUBSIDIES, GRANTED PURSUANT TO THE PROCEDURES IN THE  
GENERAL COUNCIL DECISION WT/L/691 
ANTIGUA AND BARBUDA  
The following communication, dated 1 July 2014, is being circulated at the request of the 
Delegation of Antigua and Barbuda. 
 
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Pursuant to the procedures contained in the General Council Decision in document WT/L/691, Antigua and Barbuda hereby submits the follow ing notification for 2014 in respect of the 
extensions of the transition period for the elimin ation of export subsidies under SCM Article 27.4, 
pursuant to the procedures in the General Council decision in WT/L/691.   In accordance with the procedures contained in the General Council decision, concerning 
notification requirements of 2 (a), Antigua and Barbuda wishes to inform that no new legislation 
has been created since the repealing of the Fiscal Incentives Act CAP 172 of 1975 in 2012, which was done in advance of the 2015 deadline. With respect to the Free Trade and Processing Zone Act 
No. 12 of 1994, this programme remains in force and there continues to be no beneficiaries under 
this programme.  
Please be informed, that not all elements of the notified programmes, including subsidies provided 
hereunder, necessarily involve export subsidies.   Antigua and Barbuda wishes to reiterate that, in  keeping with Article 25.7 of the Agreement on 
Subsidies and Countervailing Measures, this notification does not prejudice its legal status under 
the GATT 1994 or the said Agreement, its effe cts under the Agreement or the nature of the 
programme or measure; furthermore, notification of a programme or measure does not prejudice 
its actionable or non-actionable nature.  
 G/SCM/N/275/ATG 
 
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  PROGRAMME 
FREE TRADE AND PROCESSING ZONE ACT NO. 12 OF 1994 
1  DESCRIPTION OF THE PROGRAMME 
Free Trade and Processing Zone Act is an Act to attract foreign and local private investment and 
capital for various Manufacturing and Service entities. 
 2  PERIOD COVERED BY THE NOTIFICATION 
1 July 2011 - 30 June 2012 
 3  POLICY OBJECTIVE AND/ OR PURPOSE OF THE SUBSIDY 
To attract private investors who will contribute to the growth and development of the informatics 
and telecommunications related services. In addition, to attract investment in Pharmaceutical and 
other light manufacturing industries.  
4  BACKGROUND AND AUTHORITY FOR THE SUBSIDY 
Background 
 
The promotion of private investment is an integr al part of the development plan of Antigua and 
Barbuda as we continue to diversify production and reduce our reliance on tourism and promote establishment of certain manufacturing and services entities in Antigua and Barbuda.   
Authority 
 Free Trade and Processing Zone Act Cap No. of 1994. 
 
5  FORM OF SUBSIDY 
The Free Trade and processing Zone Act provid es relief from taxes in the following ways: 
 
a. Exemption from the payment of Custom Duty, Consumption and other taxes on the 
importation of machinery, equipment, spare parts, and construction materials and other 
items needed to construct and operate facilities within the FTPZ; 
b. Exemption from the payment of Custom Duty, Consumption and other taxes on the 
importation of raw materials and other goods to be incorporated in the products produced or assembled within the FTPZ; 
c. Exemption from the payment of income and other taxes of any kind other than Social 
Security, Medical Benefits and the Education Levy on the earnings accruing to any person by virtue of accruing to any persons by virtue of carrying on his/her employment 
in any industrial or commercial activity within the FTPZ; 
d. Exemption from the payment of export taxes or levies on the exportation from the FTPZ 
to any place outside of Antigua and Barbuda of any goods, or articles produced or manufactured in the FTPZ;  
e. Exemption from the payment of taxes of any kind  on the repatriation of profits earned in 
the Zone; and 
f. Exemption from the payment of taxes or levies  imposed by the Government in respect of 
any Industrial or Commercial activity being carried out within the FTPZ. G/SCM/N/275/ATG 
 
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In order to obtain a licence to operate in the FTPZ, an application must be submitted on the prescribed Form to the Commissioner. The Commissioner will submit this application to the Commission for examination and approval. 
 
The decision to grant a licence is based on a number of considerations:  
1. The level of investment; 
 2. Employment generation capacity of the project;  
3. Foreign exchange generation of the project; 
 4. Technological adaptability and transfer possibilities; and  
 
5. Environmental impact.   
The Licence fee ranges between US$10,000 and US$20,000 and is not dependant on the size of 
the project.  6  TO WHOM AND HOW TH E SUBSIDY IS PROVIDED 
Incentives to operate an entity in the Free Tr ade and Processing Zone are granted to private 
investors both foreign and local to facilitate the development of industries, in particular certain manufacturing and services entities. 
 
7  SUBSIDY PER UNIT 
No statistical information is available since the first entity was not granted a licence to 
manufacture in the FTPZ until the last quarter of 2001. Presently, the factory is still under 
construction and the company does not plan to be  in operation until the first quarter of 2005. 
 8  DURATION OF SUBSIDY 
The programme was set up in 1994. However, the first licence granted to a manufacturing entity 
to operate in the FTPZ was not issued until the last quarter of 2001.   
9  STATISTICAL DATA ON THE IMPACT OF THE PROGRAMME  
Merchandise Imports/Exports (US$ Millions)* 
 
 2000 2001 2002* 2003* 2004* 2005* 
Export 16.52 17.27 17.62 18.36 19.35 20.42 
Imports 342.09 317.29 324.71 350.51 369.55 371.22 
 
Source: Ministry of Financ e, Economic Policy Unit 
 
*These are estimations/projections 
 Note: These are the actual trade data for Antigu a and Barbuda, and not trade affected by this 
programme.  
 
As noted above, the first licence granted to a ma nufacturing entity to operate in the Free Trade 
and Processing Zone was not issued until the last quarter of 2001.   
(a) Description of the domestic procedures  necessary to eliminate export subsidies 
 
Antigua and Barbuda wishes to inform that amen dments in this area are ongoing and will be 
advanced by the two year phase out and will certainly be completed by the 2015 deadline.  
 G/SCM/N/275/ATG 
 
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  THE FREE TRADE AND PROCESSING ZONE 
 AREA ACT, 1994  
ARRANGEMENT OF SECTIONS 
 Section 
 
1. Short title. 2. Interpretation. 3. Establishment of Commission.  
4. Seal and procedure for sealing documents. 
5. Acquisition of land for free trade and processing zone. 6. Declaration of a free trade and processing zone. 
7. Functions and powers of the Commission. 
8. Composition and administ ration of the Commission. 
9. Meetings and procedures of the Commission. 
10. Appointment and duties of Commissioner. 
11. Procedure for application and grant of licence. 12. Licences. 13. Commission not to approve unlawful activity. 
14. Incentives to licensed industries. 
15. Conditions for employment in free trade and processing zone. 16. Licensee to comply with the Act or Regulation etc. 
17. Environmental protection. 
18. Movement of goods in and out of free trade and processing zone. 19. Establishment of customs post in free trade and processing zone. 
20. Commission to charge royalties. 
21. Investments. 22. Reserve fund. 23. Accounts and audit. 
24. Law and legal proceedings. 
25. Preservation of secrecy and nondisclosure of information to unauthorized person. 26. Annul Report. 
27. Regulation. 
 
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