. /.    WORLD TRADE  
ORGANIZATION  G/SCM/Q2/QAT/4 
24 October 2007 
 (07-4608) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Responses to Follow-up Questions Posed by the UNITED STATES1 
Regarding the New and Full Notification of QATAR2 
 
  The following communication, dated 22 October 2007, is being circulated at the request of the Delegation of Qatar.    
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  The State of Qatar notes the follow-up questions to the answers already provided by Qatar in 
its Notification G/SCM/Q2/QAT/2.  
 The United States in referring to Qatar's Trade Policy Review draws attention to the "various 
investment incentives both to national and foreign in vestors ... (t)he purpose of which is to promote 
the country's development objectives", and "encour age the utilization of and add value to local 
products, promote exports", among others.  
 The United States understanding of Qatar's commitments is correct.  Please refer to Qatar's 
Trade Policy Review – Report by the WTO Secretar iat, in which is stated under the heading.  
Measures Directly Affecting Exports – Export duties and Taxes
, that "No duties or taxes are levied 
by Qatar on its exports."  (Emphasis added.)  
  The United States refers to information from a Qatar government website promoting 
investment and states:  "Other publicly available information indicates that Qatar provides:  (1) an 
exemption from taxes on exported products".  The United States then proceeds to ask the question: 
 
Question 1  
 
 Please explain the nature of the tax that is exempted.  Is it a direct tax, such as an income tax, or an indirect tax, such as a value added tax?  
Response
 
 
 The use of the word 'exemption' is merely iteration that no taxes of any kind are levied on 
exports.  It is not used in the GATT/WTO sense of an  exemption from a rule or measure in force.  The 
matter of 'contingent on export performance' does not arise.  Please note that the Incentives offered 
                                                      
1 G/SCM/Q2/QAT/3/Rev.1. 
2 G/SCM/N/123/QAT.  Please note that a late r Notification was made on 11 July 2007 
(G/SCM/N/155/QAT) G/SCM/Q2/QAT/4 
Page 2  
 
  are stated in the Trade Policy Review, and makes no mention of the word 'exemption'.  The wording 
on the website will be corrected to avoid any misunderstanding. 
  The second question, based on information fro m the same source refers specifically to a 
second incentive, namely a privilege enjoyed by a locally-produced Qatari manufactured items "in 
government purchases" , and includes the hypothetical in that the privilege "appears to encourage the 
use of domestic goods", and the "benefit is continge nt upon the use of domestic over imported goods".  
(Emphasis added.)  
Question 2 
 
 Please describe how a company becomes elig ible for this programme and precisely how 
the programme operates.  
 
Response
   
 
 The Trade Policy Review (TPR) under the heading Government Procurement  provides 
extensive information on the procedure for procurement, indicating also the "price preference"  for 
Qatari products "in all government procurement" .  (Emphasis added.)  Further, under the heading 
Local-content requirements, the TPR states "Qatar ha s notified that it does not maintain any measures 
inconsistent with the Agreement on Trade-Related Investment Measures (TRIMs)". (Footnote 
deleted.) 
  Qatar is not party to the plurilatera l Agreement on Government Procurement. 
  The State of Qatar's commitments under the Agreement on Subsidies and Countervailing 
Measures are as notified.   
  Moreover, the State of Qatar is reviewing all information on Qatar's trade policy published on 
the government website to ensure that it reflects accurately the government's WTO commitments.   
  
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