. /.  WORLD TRADE  
ORGANIZATION  G/SCM/Q2/OMN/3 
4 August 2005 
 
 (05-3504) 
Committee on Subsidies and Countervailing Measures Original:   English 
  
 
SUBSIDIES  
 
Questions Posed by the UNITED STATES Regarding the
 
New and Full Notification of the SULTANATE OF OMAN1 
 
 
 The following communication, dated 3 August 2005, is being circulated at the request of the Delegation of the United States.  
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General Comment 
 
 The United States appreciates this opportunity for comment regarding Oman’s New and Full Notification.  The notification states that Oman doe s not grant or maintain subsidies as defined in 
paragraph 1 of Article 1 which are specific within  the meaning of Article 2 of the Agreement on 
Subsidies and Countervailing Measures" ("Subsidies Ag reement").  However, on the basis of publicly 
available information, there appears to be certa in industry support programmes maintained by Oman 
for which we request additional information.  1. Incentives for Specific Industries under the Law for the Organisation and 
Encouragement of Industry (Royal  Decree No. 1 of 1979) ("LOEI") 
 
 According to a publicly available report
2, the LOEI provides various incentives for approved 
projects in particular sectors, e.g., cement, st eel and glass manufacture.  These incentives include, 
inter alia , low-interest or interest-free government loans through the Oman Development Bank; 
customs duty exemptions on imports of equipment;  five-year renewable income tax exemptions; 
preferential allocation of government land; and preferential purchasing by government. 
 Q1. Could Oman please explain why this programme  should not be subject to the notification 
obligations under Article 25 of the Subsidies Ag reement?   If this programme does meet the 
notification requirements, we ask that Oman notif y it in accordance with the provisions of Article 25 
of the Subsidies Agreement.  
2.   Export-Contingent Preferential Lending 
  The Ministry of Commerce and Industry reporte dly provides for preferential interest-free 
government loans to enterprises with Omani-majority ownership that export at least 25% of production.  
                                                     
 
1 G/SCM/N/123/OMN 
2 See, "Country Profile of Oman," available at http://www.bisnetworld.net/bisnet/countries/oman.htm . G/SCM/Q2/OMN/3 
Page 2  
 
Q2. Could Oman also explain why this programme should not be subject to the notification obligations under Article 25 of the Subsidies Ag reement?  If this programme does meet the 
notification requirements, we ask that Oman notif y it in accordance with the provisions of Article 25 
of the Subsidies Agreement.  
Q3. Could Oman please explain how this programme  is consistent with its obligations under 
Article 3.1(a) of the Subsidies Agreement?  
3.   Ministry of Commerce and Industr y Local-Content Preferential Lending 
  The Ministry of Commerce and Industry re portedly provides preferential interest-free 
government loans to enterprises with Omani-majority ownership that draw at least 20% of their raw 
material requirements from domestic supplies.  Q4. Could Oman please explain how this programme  is consistent with its obligations under 
Article 3.1(b) of the Subsidies Agreement? 
 Q5. Could Oman also explain why this programme should not be subject to the notification obligations under Article 25 of the Subsidies Ag reement?  If this programme does meet the 
notification requirements, we ask that Oman notif y it in accordance with the provisions of Article 25 
of the Subsidies Agreement. 
 
4.   Industrial Estates 
 
 Additionally, Oman reportedly has fully servi ced industrial estates, such as the Rusayl 
Industrial Estate, which appear to receive various types of government support that are not necessarily 
limited to infrastructure. 
 Q6. Could Oman provide additional information on these industrial estates, particularly in regard 
to the eligibility criteria that businesses have to meet to participate and the precise nature of 
government support provided for the development a nd management of those estates, as well as the 
government support provided to the participating businesses? 
 
Q7. Could Oman also explain why this programme should not be subject to the notification obligations under Article 25 of the Subsidies Ag reement?  If this programme does meet the 
notification requirements, we ask that Oman notif y it in accordance with the provisions of Article 25 
of the Subsidies Agreement. 
 
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