WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/ACC/LAO/36 
15 June 2012 
 (12-3206) 
Working Party on the 
Accession of the Lao PDR Original:   English 
 
 
 
ACCESSION OF THE LAO PDR 
 
Additional Questions and Replies 
  
 
 The following submission, dated 4 June 2012, is being circulated at the request of the Delegation of the Lao People's Democratic Republic (Lao PDR). 
 
_______________ 
 
  WT/ACC/LAO/36 
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  TABLE OF CONTENTS 
II.   ECONOMIC POLICIES .......................................................................................................... 1  
-  Investment Regime.............................................................................................................. ...... 1 
-  State Ownership and Privatization ......................................................................................... 3  
IV.  POLICIES AFFECTING TRADE IN GOODS ..................................................................... 4  
-  Trading Rights ................................................................................................................ .......... 4 
A.  IMPORT REGULATIONS ...................................................................................................... 5  
-  Tariff rate quotas, tariff exemptions ....................................................................................... 5  
-  Fees and charges for services rendered ................................................................................... 6  
-  Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ....................................................................................................................... ................ 6  
-  Customs Valuation ............................................................................................................. ....... 6 
-  Pre-shipment Inspection ....................................................................................................... .... 9 
-  Anti-dumping, countervailing duties, safeguard regimes ..................................................... 9  
B.  EXPORT REGULATIONS ................................................................................................... 10  
-  Export restri ctions ........................................................................................................... ....... 10 
C.  INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS ......................... 10  
-  Industrial policy, including subsidies .................................................................................... 10  
-  Technical Barriers to Trade ...................................................................................................  13 
-  Sanitary and Phytosanitary Measures .................................................................................. 13  
-  Free Zones, special economic areas ....................................................................................... 20  
-  Agricultural Policies ......................................................................................................... ...... 20 
V.  TRADE-RELATED INTELLECTUAL  PROPERTY REGIME ....................................... 21  
VI.  POLICIES AFFECTING TRADE IN SERVICES .............................................................. 21  
VII.  TRANSPARENCY ................................................................................................................. 22 
VIII. TRADE AGREEMENTS ....................................................................................................... 24  
  WT/ACC/LAO/36 
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 II.  ECONOMIC POLICIES 
- Investment Regime Question 1  We would like to draw the attention to para graph 23 of the Draft Working Party Report 
(WT/ACC/SPEC/LAO/5), where reference to th e establishment of chambers of commerce for 
foreign-owned enterprises is made.  As per th e last sentence, it can be understood that the 
statutes of the Lao National Chamber of Co mmerce and Industry (LNCCI) do not allow the 
creation of separate chambers of commerce; howev er, this contrast with the recent practice, as 
for instance, the EU Chamber of Commerce a nd Industry was established through official 
registration with the Ministry of Foreign Affair s, and it is an official member of the Lao 
National Chamber of Commerce and Industry.  We suggest introducing such clarification in the 
above-mentioned paragraph of the Draft Working Party Report. 
Answer: 
Lao PDR wishes to clarify that Regulation "On th e Establishment and Activities of the Representative 
Organizations of Foreign Business Entities in the La o PDR" of 21 June 2005 provides that any foreign 
business entities intending to establish their own representative organizations may apply for such 
establishment authorization to the Ministry of Foreign Affairs, through the consideration and 
recommendation by the Lao National Chamber of Commerce and Industry (LNCCI).  The same 
regulation also states that the business representa tive organization in Lao PDR shall report their 
activities to the LNCCI and be members of LNCCI.  Currently there are many of such organizations 
in the Lao PDR representing businesses, such as from China, Japan, South Korea, Chinese Taipei and 
the EU. 
Question 2  
In paragraph 27 of document WT/ACC/SPEC/LA O/5, Lao PDR explained the conditions for 
the suspension of an investment project. Yet, we would need further clarification in this regard.  In particular, we would like to further clarif y the tasks of the Regulatory authority in 
determining the suspension and cancellation of an investment, and the involvement of an 
independent adjudicatory body.  
- Could Lao PDR indicate the authority in charge of determining the suspension and 
cancellation of an investment?  
- If a cancellation is determined, does the in vestor have the opportunity to appeal this 
decision before a court of law?  
- If a suspension is determined, could Lao PDR confirm whether the investor would be 
given the opportunity to continue operating the investment, if (s)he complies with the 
Administration's indications?  
All in all, and in view of the upcoming accession of Lao PDR to the WTO, we would like to 
recall that it is certainly important that Lao Au thorities do their utmost to preserve a good 
business environment in Lao PDR, which is extr emely important in order to attract secure and 
profitable FDI, that can further develop its economy and foster competition in the country. WT/ACC/LAO/36 
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 Answer: 
Lao PDR's investment policy has been formulated with a view to promoting and protecting domestic 
and foreign investment in Lao PDR.  In 2009, the Law on Investment Promotion has been adopted to 
unify the former Law on Foreign Investment Promot ion of 2004 and the Law on Domestic Investment 
Promotion of 2004, aiming at further enhancing th e investment environment for investors in all 
economic sectors.  The new Law regulates investment  activities, investors' rights and obligations, the 
allocation of incentives, and the administration of investment activities in Lao PDR.  The measures against violators have been further clarified in Article 68 of the Decree implementing the 2009 Investment Promotion Law.  Basically the first violation is subject to warning while the 
second violation may be subject to suspension or  withdrawal of licence upon recommendation of 
relevant authority to the Ministry of Planning and Investment (for concessions businesses from the 
government), or Ministry of Industry and Commerc e (for general businesses) according to their scope 
of supervision.   
If a suspension is determined, the investor would be  given the opportunity to continue operating the 
investment, provided that the violation as a cause of  suspension has been rectified.  For example, 
under Article 68, in case an enterprise fails to pay ta xes, the Ministry of Finance may request the MPI 
or MoIC to suspend the operation of that ente rprise until it complies with its tax obligation. 
 The above measure is an administrative measure and may be appealed to the court in accordance with 
the 2005 Petition Handling Law. 
Question 3  
With respect to the paragraph 20 of document WT/ACC/SPEC/LAO/5:  As stated that due to 
threats to national security; the environment; public  health; and national culture, and reflected 
in Lao's Decree No. 68/PM "On Controlled Busin ess" (Negative List) of 28 April 2008, financial 
services were placed on Lao's Negative List.  The Negative List is being reviewed and amended 
(Table 2). 
- Financial services were listed on Lao's "On Controlled Business" (Negative List).  
Will this prevent Lao PDR from fulfilling it s market access commi tments to WTO?  
Does Lao PDR have any plans to amend this Negative List in the near future? 
- Please provide Lao's relevant laws and regul ations regarding foreign investments in 
financial services. 
Answer: 
As defined under Article 2 of the 2005 Enterprise La w, the purpose of the Negative List is to list all 
businesses which require, prior to enterprise regist ration, approval from the supervising authorities 
due to their sensitivity for national security; the environment; public health; and national culture.  
The list is not a list of businesses that are prohibited or  reserved to Lao citizens.  Therefore, it will not 
prevent Lao PDR from fulfilling its future market access commitments under the WTO.   
After internal consultation, the d ecision has been made that the amendment of Negative List is not 
necessary in the near future.   
With respect to laws and regulations regardi ng banking and insurance services, please refer to 
document WT/ACC/SPEC/LAO/5, paragraph 222.  Fo r securities regulations, please refer to the 
following website of the Lao Securities Exchange: http://www.lsx.com.la .  WT/ACC/LAO/36 
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 - State Ownership and Privatization  
Question 4  We appreciate the further information provided by Lao PDR on its 37 state-owned enterprises.  
We request that the sections of the report addressing "State Ownership and Privatization" and "State Trading Entities" be combined under S ection II.  We further request the following 
commitment be added to this new Section of the report: 
xx. The representative of Lao PDR confirmed that from the date of accession 
Lao PDR would ensure that all State-owned, State-controlled, and other enterprises with special or exclusive privileges wo uld make purchases of goods and services, 
which were not intended for governmental use, and sales in international trade, 
based solely on commercial considerations,  e.g. price, quality, marketability and 
availability, and that the enterprises of other WTO Members would have an adequate opportunity in accordance with customary practice to compete for such 
purchases or sales.  In addition, Lao PDR would not influence, directly or indirectly, 
commercial decisions on the part of State-owned, State-controlled, and other 
enterprises with special or exclusive privile ges, including on the quantity, value or 
country of origin of any goods purchased or  sold, except in a manner consistent with 
the WTO Agreement.  The representative of Lao PDR confirmed that upon accession Lao PDR also would notify and provi de information on the activities of all 
State-owned, State-controlled, and other enterprises with special or exclusive privileges in accordance with Article XVII of the GATT and the Understanding on 
that Article.  The Working Party took note of these commitments.  
Answer: 
Lao PDR agrees that the sections of Draft Wo rking Party Report on "State Ownership and 
Privatization" and "State Trading Entities"  may be combined under Section II.   
Lao PDR also accepts the proposed commitment language  to be added in this new section with the 
following amendments, based on the language  used in Article XVII of the GATT: 
[The representative of Lao PDR confirmed th at from the date of accession Lao PDR would 
ensure that all State-owned, State-controlled, and other enterprises with special or exclusive 
privileges would make purchases or sales either  involving imports or exports, which were not 
intended for immediate or ultimate consumption in governmental use, and not otherwise for 
resale or use in the productions of goods fo r sale, solely in accordance with commercial 
considerations, including price, quality, availa bility, marketability, transportation and other 
conditions of purchase or sale, and would afford  the enterprises of other WTO Members an 
adequate opportunity in accordance with cu stomary business practice to compete for 
participation in such purchases or sales.  In  addition, Lao PDR would not prevent any 
enterprise under its jurisdiction from acti ng in accordance with the principles of 
subparagraphs (a) and (b) of paragraph 1 of Article XVII of GATT.  The representative of 
Lao PDR confirmed that upon accession Lao PDR also would notify of the products which 
are imported into or exported from its territory by  all State-owned, State-controlled, and other 
enterprises with special or exclusive privileg es in accordance with Article XVII of the GATT 
and the Understanding on that Article.  The Wo rking Party took note of these commitments.] 
 WT/ACC/LAO/36 
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 IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 5  We greatly appreciate the thorough explanation provided in response to Questions 10 
through 24 of document WT/ACC/LAO/24, addressing Lao PDR's trading rights regime, and 
the specific legislation and regulatio ns pertaining to this regime. 
In response to Question 24 of the document WT/ACC/LAO/24, Lao PDR notes that it "is in the 
phase of studying the necessity to establish the reg istration regulation for prospective importers 
of record".  Can Lao PDR please confirm that any future registration system or registration requirements will be applied in conformity wi th Article III of the GATT 1994 and would not 
constitute a barrier to trade? 
Answer: 
Lao PDR confirms that any future registration syst em or registration requirements will be applied in 
conformity with Article III of the GATT 1994.  See also commitment language in the response to 
Question 6.  
Lao PDR requests the WTO Secretariat to improve sections in the Draft Working Party Report on 
trading rights by proposing the modification of para graph 51 and the deletion of  paragraph 52, 53, 54, 
55 and 56 with the addition of proposed commitm ent language of Lao PDR in order to reflect the 
Decree on Imports and Exports No. 114/GoL of 6 Apr il 2011 and the current regime on trading rights. 
In addition, the information related to enterprise re gistration proposed for deletion from this section is 
already presented in the investment regime s ection in the draft Working Party Report.   
Question 6  We request the following commitment text be added after paragraph 56 of document 
WT/ACC/SPEC/LAO/5:   
 xx. The representative of Lao PDR co nfirmed that from the date of 
accession, Lao PDR would grant any natural or legal person, regardless of 
physical presence or investment in Lao P DR, the right to be the importer of 
record of any product allowed to be impo rted into Lao PDR, at any level of 
distribution, and that its laws and regulations relating to the right to trade in goods and all fees, charges or taxes levied on such rights would conform fully with its WTO obligations, including Articles VIII:1(a), XI:1, and III:2 and 4 of the GATT 1994.  He also confirmed that full rights to import and to export 
would be granted in a non-discriminatory and non-discretionary manner from 
the date of accession, and any requirements for commercial registration or application for trading rights would be  for customs and fiscal purposes only, 
would not require investment in Lao PDR nor confer the right to distribute there, and would not constitute a barrier to  trade.  The Working Party took note 
of these commitments.    WT/ACC/LAO/36 
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 Answer: 
Lao PDR proposes the amendments to the proposed commitment language as follows: 
[The representative of Lao PDR noted that its  current requirements for importation of only 
fuel, cement, steel and rice, as specified in Tabl e [X] did not allow for the right to trade in 
goods.  In this regard, he confirmed that after five years from the date of accession, Lao PDR 
would ensure that its relevant legislation co mply with such trading right obligation.  
The representative of Lao PDR further confirmed that from that date, with respect to the 
goods listed in Table [X], and from the date of  accession, for all other goods, Lao PDR would 
grant any natural or legal person of a WTO member, regardless of physical presence or 
investment in Lao PDR, the right to be the importer of record, and that its laws and 
regulations relating to the right to trade in g oods and all fees, charges or taxes levied in 
connection with such trade would conform fully with its WTO obligations, including 
Articles VIII:1(a), XI:1, and III:2 and 4 of th e GATT 1994.  The representative of Lao PDR 
expressed that compliance with its trading righ ts obligations would not grant importers the 
right to distribute goods in Lao PDR. He conf irmed that importers would be free to select a 
distributor or distributors of their choice. He also expressed his understanding that the 
granting of trading rights would not affect the  rights of the Government of Lao PDR to adopt 
regulations consistent the WTO Agreement, including those relating to import licensing, 
technical barriers to trade or sanitary and ph ytosanitary measures.  The Working Party took 
note of these commitments.]   
 
Table [X]  
HS Code  Goods 
27.10 
27.11 Petroleum and Gas 
4403 
4407.10-4407.28 
0601 Logs, trunks, barks and rough-processed timber 
1006 Rice, Rice in the husk, husked (bro wn) rice, semi-milled or wholly milled 
rice, whether or not polished or glazed 
25.23 38.16 Cement, mortar, concrete 
 
A. IMPORT REGULATIONS 
- Tariff rate quotas, tariff exemptions Question 7  In paragraph 60 of document WT/ACC/SPEC/LAO/5, we can read that Lao PDR did not apply 
tariff rate quotas on any products. Provided that this is the case until the date of accession, we 
consider that paragraph 62 of document WT/ACC/SPEC/LAO/5 should be modified 
accordingly, and therefore, eliminate the referen ce to "maintained", and only refer to tariff 
rates quotas introduced a fter the date of accession. 
Answer: 
Lao PDR agrees with the proposed deletion. WT/ACC/LAO/36 
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 - Fees and charges for services rendered 
Question 8  We appreciate the new commitment text proposed in paragraph 64 of document 
WT/ACC/SPEC/LAO/5, accepted by Lao PDR in response to Question 66 of document WT/ACC/LAO/24.  We request  the brackets be removed. 
Answer: 
Lao PDR agrees to remove the brackets in para graph 64 of the document WT/ACC/SPEC/LAO/5. 
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems  
Question 9  We appreciate Lao PDR's submission of its Import Licensing Questionnaire.  We have a 
number of substantive questions on Lao P DR's responses to the Questionnaire, which are 
contained in document WT/ACC/LAO/25/Add.1. 
We appreciate Lao PDR's responses to our questio ns on Lao PDR's import licensing regime.  
In response to Question 43 of document WT/ACC/LAO/24, Lao PDR notes that it maintains automatic import licensing requirements on ca rs, wood processing machines, cement, mortar 
and concrete for statistical and import monitori ng purposes.  We request that Lao PDR please 
provide additional information on why it is monitoring these specific products.   
Answer: 
Lao PDR is monitoring for statistical purpose, the import of goods subject to import licensing 
(regarding importer, exporting country and indicative volume of imports). 
 
The information obtained via import licensing system of those goods helps relevant ministries to 
establish the indicative import statistics of goods un der their responsibilities. The relevant ministries 
include such statistics in their periodic report to  the Government for consideration in its socio-
economic development plan.  
Please also refer to the response of Lao PDR to Member's additional questions on Questionnaire on 
Import Licensing Procedures, submitted in a separate document (WT/ACC/LAO/25/Add.1).  
- Customs Valuation  
Question 10  We greatly appreciate Lao PDR's continuing effo rts to respond to Member's questions and to 
revise its customs laws and regulations to fu lly implement the Customs Valuation Agreement 
and its Interpretive Notes.   
With respect to paragraph 80 of document WT/ACC/SPEC/LAO/5, we continue to look 
forward to reviewing the new regulation that L ao PDR is preparing and has indicated would be 
issued by June 2012 to implement Instruction No. 1398/MoF of 16 June 2010 and replace 
Instruction No. 2401/CD of 29 September 2010.  As st ated previously, we would appreciate it if a 
draft of this new regulation was provided to Members as soon as it is available.  WT/ACC/LAO/36 
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 Answer: 
Please note that the Customs Law No. 4/NA, date d 20 December 2011, has been promulgated to 
replace the Customs Law No. 5/NA, dated 20 Ma y 2005.  The 2011 Customs Law delegates the 
authority to the Ministry of Finance to issue regulations to implement the customs valuation in accordance with the CVA.  
The Ministry of Finance is revising the Instruction No. 1398/MOF and Instruction No. 2401/CD to 
fully reflect the CVA and the Interpretative Notes,  respectively.  Accordingly, the Ministerial 
Instruction No. 1537/MOF was adopted 4 June 2012 to replace Instruction No. 1398/MOF.  Another 
instruction (replacing Instruction No. 2401/CD) is e xpected to be adopted by June 2012.  See the 
updated Customs Valuation Action Plan (WT/ACC/LAO/12/Rev.5). 
Question 11  Article 17 of the Draft Recommendation of Director-General of Customs Department refers to 
the fact that the value shall be determined using reasonable means consistent with the principles and general provisions of this Recommendation and the Customs Law 2005, as well as amendments thereto.  Would the revised Customs Law of 2011 be considered an amendment to 
Customs Law 2005?  What is the status of the Customs Law of 2011? 
Answer: 
The Customs Law No. 4/NA of 2011 has been adopted to replace the 2005 Customs Law.  
Article 13 of the 2011 Customs Law states that custom s valuation shall comply with the CVA and that 
the Ministry of Finance shall further develop re gulations to implement the CVA.  See also the 
response to Question 10. 
Question 12 Concerning Decision No. 2095/MoF of 26 September 2011 and Instruction No. 0266/CD of the 
Ministry of Finance, 4 November 2011, we have the following questions: 
- Paragraph 3 of Decision No. 2095 appears to indicate that importers will decide which of 
the customs methodologies to apply.  Could Lao PDR explain why it is the importer and 
not the customs administration that is making that determination?  
- Also, it appears that depending on whic h methodology is chosen there is a separate 
Customs Declaration Form, as well as the requirement for a detailed Customs Declaration Form.  Is this correct?  If so, why is it necessary to have separate forms 
depending on the methodology used?  And why is it necessary to have an additional detailed form? 
- We are also concerned with Article 11, pa ragraph 3 of Instruction No. 0266, where it 
appears the customs official is directed to "inspect customs value by making a comparison with the database and the law a nd regulations".  How will Lao PDR ensure 
that officials will not use the customs value database as a reference value or minimum value?   WT/ACC/LAO/36 
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 Answer: 
The way Paragraph 3 of Decision No. 2095/MOF is  applied and understood under the 2011 Customs 
Law (requiring compliance with CVA) is clearly that the customs follows valuation methods 
according to hierarchy according to the information provided by the importer.  Lao PDR is currently working on clarifying the language to be in line with the 2011 Customs Law. 
In determining the customs value, the importer sh all lodge the customs declaration form with a 
customs valuation declaration form, which consists  of six separate forms of CVA valuation methods 
which will be used according to the hierarchy order.   At the early development stage of its customs 
valuation implementation, separate forms are used  to facilitate the completion by importers.  
Lao PDR understands that such flexibility does not  compromise its compliance with the CVA.  
The use of (detailed) customs declaration form is  for customs declaration purpose and applies to all 
imports, exports and transits. 
As indicated in paragraph 84 of document WT /ACC/SPEC/LAO/5, the database should be used for 
risk management purposes only and not as a price refe rence. Paragraph 3 of Ar ticle 11 of Instruction 
No. 0266/CD has to be read together with paragr aph 4 of the same Article.  Upon implementation of 
the ASYCUDA system, the said inspection will be carried out by machine automatically. 
The inspection is part of risk management to prevent fraudulent declaration of customs value by 
importers.  This will also be ensured by an Instru ction to address the Interpretative Notes (replacing 
Instruction No. 2401/CD) to be issued by June 2012.  See also the response to Question 10.  
Question 13 
We request the draft commitment language in paragraph 86 of document 
WT/ACC/SPEC/LAO/5 be updated to reflect the below, with the addition of "and the 
hierarchy" in the second to last sentence.  
Paragraph 86: [The representative of Lao PDR confirmed that, from the date of 
accession, Lao PDR would fully apply the WTO provisions concerning customs valuation, including the WTO Agreement on the Implementation of Article VII of the 
GATT 1994 and Annex I (Interpretative Notes).  Lao PDR would ensure that any 
customs valuation method to be applied woul d be in accordance with these WTO rules.  
In this regard, he confirmed that reference prices and fixed valuation schedule applied 
to imports in lieu of the transaction value  to determine customs valuation will be 
eliminated by accession and would not be reint roduced and that all methods of valuation 
used and the hierarchy would be in strict conformity with those provided for in the 
WTO Customs Valuation Agreement.  Th e Working Party took note of these 
commitments.] 
Answer: 
Lao PDR agrees with the proposed commitment language. 
Question 14 
Currently Lao PDR still relies on the use of reference price list or minimum values although this 
practice was being phased out.  As stated in paragraph 84 of document WT/ACC/SPEC/LAO/5, in 2012, the reference price was only applied to  vehicles and fuel products:  namely, sedan; 
pick-up; minibus with 16 seats and lower; jeep; gasoline; and diesel.  It is indicated that the 
reference price for vehicles would be elimin ated by 31 December 2012 and for fuel upon 
WTO accession.   WT/ACC/LAO/36 
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 In this regard, we would like to ask Lao PDR to  confirm that referenc es prices for vehicles will 
be eliminated by the end of this year, and if the required procedures to change this regime have been initiated.  
Answer: 
Lao PDR confirms that the minimum values for ve hicles will be eliminated by 31 December 2012. 
The legal instrument to this effect is regulati on no. 2326/LCD of 9 August 2011 which specifies such 
a date of elimination.   
- Pre-shipment Inspection 
Question 15 
We request the deletion of the bracketed text  "[related]" in paragraph 94 of document 
WT/ACC/SPEC/LAO/5.  
Answer: 
Lao PDR agrees to delete the bracketed text. 
- Anti-dumping, countervailing duties, safeguard regimes  
Question 16 
We appreciate Lao PDR's response to Question 64 of document WT/ACC/LAO/24, where 
Lao PDR has proposed revised commitment text.  We accept Lao PDR's re-drafted commitment, and request that the brackets on this text be removed in document 
WT/ACC/SPEC/LAO/5.  The previous iteration of commitment text for this section can be 
deleted.   
Answer: 
Lao PDR agrees to remove the brackets in the document WT/ACC/SPEC/LAO/5 and delete the 
previous iteration of commitment text.  
Question 17 
Lao PDR has confirmed that it has not yet legislation authorizing the application of 
anti-dumping, countervailing, or safeguard measures.   It is also indicated that the Government 
is currently drafting legislation on safeguards. 
- Could Lao PDR provide the Working Party members with the most recent information 
regarding the ongoing drafting of safeguards legislation, and whether the related process has been incorporated in its legislative action plan? 
- As regards the legislation to cover anti -dumping and countervailing measures, could 
Lao PDR inform about the timeframe for comple ting this legislation, and to update the 
Legislative Action Plan in this regard? WT/ACC/LAO/36 
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 Answer: 
Lao PDR is in the process of collecting the inform ation for drafting the safeguards legislation by 
reviewing WTO's model law on safeguards and sa mple laws from the neighbouring countries. The 
internal consultation workshop on the drafting is  planned for the second ha lf of 2012.  Lao PDR 
thanks for technical assistance provided by deve lopment partners to s upport this effort.  
 
Lao PDR has no specific action plan for completi ng the legislation to cover anti-dumping or 
countervailing measures since Lao PDR has limited resources which have been fully devoted to 
address other areas to ensure their compliance w ith WTO Agreements upon accession.  Nevertheless, 
Article 10 of Decree No. 114/GoL on "Import and Export of Goods" of 6 April 2011 has set out a 
general requirement by which the use of safegua rds, anti-dumping and countervailing measures must 
be in line with treaties to which Lao PDR is a party. 
B. EXPORT REGULATIONS 
- Export restrictions Question 18 
In paragraph 96 of document WT/ACC/SPEC/LAO/5,  it is noted that the list of products 
subject to export duties has been revised.  This  list is currently under approval by the National 
Assembly and is expected to be approved in June 2012.  
Could Lao PDR confirm that this list will be pr ovided to the Members of the Working Party as 
soon as approved and no later than in June?  Once distributed, Table 13 of document WT/ACC/SPEC/LAO/5 will need to be modified accordingly.  
Answer: 
Lao PDR confirms that the Edict on Export Duties No. 002/OP was adopted on 27 April 2012. 
The copy was submitted to the WTO Secretariat (WT/ACC/LAO/33/Add.1).  Lao PDR is therefore requesting the Secretariat to update Table 13 accordingly.  
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 
Question 19 In paragraphs 107 and 153 of document WT/ACC/SPEC/LAO/5, Lao PDR states that 
Decree No. 177/PM and Decree No. 25/PM would be eliminated by February 2012.  Can 
Lao PDR provide an update as to the status of these two decrees?  If the decrees have been terminated, are there residual benefits in the nature of prohibited subsides that will continue 
until a certain time?  Please explain.  Is Lao PDR seeking to grandfather any continuing 
benefits?  Were the two decrees replaced by oth er measures?  If so, please review the provisions 
of these measures and provide copies.   WT/ACC/LAO/36 
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 Answer: 
As per paragraphs 107 and 153 of document WT/ACC/SPEC/LAO/5, Lao PDR noted it would 
eliminate local content requirement in the re maining zones Savan-Seno Special Economic Zone 
(Decree No. 177/PM) and Dansavanh Village Bo rder Trade Zone (Decree No. 25/PM).  
Such elimination was made through Decree No. 154/PM dated 5 March 2012, a copy of which was 
submitted to the WTO Secretariat (WT/ACC/LAO/32).  There are no residual benefits in the nature of 
prohibited subsides that will continue.  Lao PDR doe s not grandfather any continuing benefits which 
are contingent upon local content requirements, wh ich have been eliminated by Decree No. 154/PM 
mentioned above, without any replacing measures. 
Question 20 
We appreciate Lao PDR's explanation of its export  subsidies in its subsidies notification, as well 
as in Lao PDR's responses to Questions 32 and 37 of document WT/ACC/LAO/20.  However, in 
the subsidies notification, in Lao PDR's replie s, and in Decree No. 177/PM, it is clear that 
Lao PDR is not in compliance with the ASCM with respect to export subsidies given that 
Lao PDR continues to grant export subsidies.  Similarly, we note as well that Decree 443 lists 
"production for export" as one type of prom oted investment under Article 23.  Lao PDR's 
export subsidies need to be clearly explained in the Draft Working Party Report, based on the 
information Lao PDR has provided to date.  We request that the Secretariat please incorporate this information in the text of the Draft Work ing Party Report, to ensure transparency on Lao 
PDR's export subsidies programmes. 
We request the following draft commitment text be added into the Draft Working Party Report 
as an alternative to the text presented in paragraph 108.   
xx. The representative of Lao PDR conf irmed that Law No. 10/NA and Law No. 
11/NA that provided investment incentives contingent upon exportation and the use of domestic over imported goods for domestic  and foreign-invested enterprises were no 
longer valid and that prohibited subsidies would not be provided to new beneficiaries 
under these two laws.  He further confirmed that the benefits to current beneficiaries 
under these two laws would terminate at the end of the relevant eligibility periods, but no later than [two] years from the date of Lao PDR's accession to the WTO.  The Representative of Lao PDR also confirme d that Decree No. 154/PM, of 5 March 2012, 
concerning "Cancellation of Local Cont ent Requirements set out in Previous 
Legislation" cancelled all local content requirements contained in the Decree on 
Densavanh Village Border Trade Zone No.25/PM, dated 25 March 2002; the Decree on 
the Regulation and Investment Incentive for the Savan-Seno Special Economic Zone No. 177/PM, dated 13 November 2003; the Decree on Implementation of the Law on the 
Promotion of Domestic Investment No. 300/PM, dated 12 October 2005; and the Decree on Implementation of the Law on the Promotion of Foreign Investment No. 301/PM, 
dated 12 October 2005, and that no residual benefits in the form of prohibited subsidies 
continued under the cited legislation.  Furthermore, the representative of Lao PDR confirmed that upon accession no new benefits under Decree 443 or under 177/PM would be provided that were contingent upon export performance, whether solely or as 
one of several conditions.  He further confirmed that the benefits to current beneficiaries under these two laws would termin ate at the end of the relevant eligibility 
periods.  The representative of Lao PDR also confirmed that, except as noted above, as 
of the date accession to the WTO, Lao PDR wo uld administer all of its existing subsidy 
programmes in full conformity with the WTO Agreement on Subsidies and Countervailing Measures, including Article 3 of the Subsidies Agreement and that, by 
the date of accession, Lao PDR would provide a subsidy notification (including any WT/ACC/LAO/36 
Page 12  
 
 residual benefits from terminated programmes), in accordance with Article 25 of the 
Agreement, to the Committee on Subsidies and Countervailing Measures.  The Working 
Party took note of these commitments. 
Answer: 
Lao PDR wishes to reiterate that as a landlocked LDC, it seeks to avail itself to the rights and 
flexibilities as provided for LDCs in Article 27.2 of  the SCM Agreement to use export performance 
requirements. 
Lao PDR proposes the amendments to the proposed  commitment language in paragraph 108 of 
document WT/ACC/SPEC/LAO/5 as follows: 
[The representative of Lao PDR also confirmed that as of the date of accession to the WTO, 
Lao PDR would administer all of its existing s ubsidy programmes in full conformity with the 
WTO Agreement on Subsidies and Countervailing Measures, including Article 27.2 of the Agreement on Subsidies and Countervailing Measures and that, upon the date of accession, Lao PDR would provide a subsidy notificati on, in accordance with Article 25 of the 
Agreement, to the Committee on Subsidies and Countervailing Measures.  The Working Party 
took note of these commitments.] 
Question 21 
At paragraph 108 of document WT/ACC/SPE C/LAO/5, the Report notes that the 
representative of Lao PDR confirmed that, as of the date of Lao PDR's accession to the WTO, the programme that provided investment incent ives contingent upon the use of domestic over 
imported goods for domestic businesses and forei gn-invested enterprises was no longer valid.  
In the next sentence, the representative noted that Lao PDR as a Least Developed Country was 
"entitled under" Article 27.2(a) of the WTO Agreement on Subsidies and Countervailing Measures. 
It is not clear what relevance Article 27.2(a) of the SCM Agreement has for the Lao PDR 
programme that provides investment incentives th at are contingent upon the use of domestic 
over imported goods for domestic businesse s and foreign-invested enterprises. 
SCM Article 27.2(a) stipulates that the prohibition of paragraph 1(a) of Article 3 does not apply 
to developing country Members referred to in SCM Annex VII. SCM Article 3(1)(a) prohibits 
subsidies contingent upon export performan ce.  Therefore, developing country Members 
referred to in SCM Annex VII can rely on SCM Article 27.2(a) to justify subsidies contingent on exports. However, they cannot rely on 27.2(a ) to provide investment incentives that are 
contingent on the use of domestic over imported goods. 
Could Lao PDR clarify what relevance, if any, SCM Article 27.2(a) has for the investment 
incentive programme that the Draft Working Party Report (document WT/ACC/SPEC/LAO/5) acknowledges will no longer be valid follo wing Lao PDR's accession to the WTO? 
Answer: 
Lao PDR refers to Article 27.2(a) not in connection with local content requirement but would like to 
avail itself for export performance to which Lao PD R as a Least Developed Country is entitled under 
Article 27.2 of the WTO Agreement on Subsidies a nd Countervailing Measures.  Please also refer to 
the answer to Questions 19 and 20.  WT/ACC/LAO/36 
 Page 13 
 
 
 - Technical Barriers to Trade  
Question 22 We appreciate Lao PDR's submission of an updated checklist and action plan related to TBT.  
We also appreciate the proposed commitment text proposed in reply to Question 75 of 
document WT/ACC/LAO/24, and reflect ed in paragraph 119 of document 
WT/ACC/SPEC/LAO/5, which can be unbracke ted in the Draft Working Party Report. 
Answer: 
Lao PDR agrees to remove the brackets.   
- Sanitary and Phytosanitary Measures 
Question 23 
With respect to Lao PDR's answer to Question 76 of document WT/ACC/LAO/24:  Can 
Lao PDR please provide an update on the progress of the planned June 2012 launching of the Lao Trade Portal or website?  If already launc hed, can you please provide the specific link of 
the website? 
Answer: 
The link to the Trade Portal website is www.laot radeportal.gov.la.  The website will be accessible 
upon its launching in June 2012.  This Trade Port al will include English and Lao version of trade 
related legislation including SPS legislation.  
Question 24 
With respect to Lao PDR's answer to Question 83 of document WT/ACC/LAO/24:  Some 
competent authorities of exporting countries do not have the authority to issue health 
certificates.  Therefore, could Lao PDR please confirm that, if it concludes a favorable evaluation of the exporting country's system, it w ill allow the entry of this country's exports into 
Lao PDR without such health certificates?  Could Lao PDR also confirm if it will allow the importation the agricultural and food products  of exporting countries until it completes the 
system evaluation of these countries? 
Additionally, could Lao PDR identify the charact eristics attestations it requires in the said 
health certificates and provide the scientific rationale for this measure?  What kinds of tests and methodologies would be conducted and used in the absence of such characteristics attestations?  
Further, can Lao PDR please explain how the required characteristics relate to the health certificate? 
Answer: 
Lao PDR confirms that, if Lao PDR concludes a favourable evaluation of the food safety controls 
systems of the exporting country, Lao PDR will include the relevant food products into its Low Risk 
Categorization, and corresponding frequency of insp ection will be applied as defined under Articles 5 
and 6 of Decision No. 297/MOH, respectively.  Im ports of foods which are certified under GMP or 
GHP and HACCP will also be allowed to import into  Lao PDR without requiring additional health 
certificates taking into account some competent aut horities of exporting countries, who does not have 
the authority to issue health certificates. WT/ACC/LAO/36 
Page 14  
 
  
Lao PDR confirms that agricultural and food produc ts of exporting countries will still be allowed to 
import into Lao PDR until the time that it can carry  out evaluations of such countries' systems, 
provided that they comply with relevant legislation.   Lao PDR seeks technical assistances to build its 
risk assessment capacities as defined in the revised SPS Action Plan (document 
WT/ACC/LAO/13/Rev.6).   
 The requirements of the characteristics attestations, which may require to be attached with health 
certificate, will be applied in compliance wi th relevant Codex standards, guidelines and 
recommendations and also complied with the SPS Agreement which will be scientific based, 
transparent and non-discrimination.   
Question 25 
With respect to Lao PDR's answer to Question 97 of document WT/ACC/LAO/24:  Can 
Lao PDR please identify the additional technical assistance it requires to ensure it can fully 
implement the transparency provisions of the SPS and TBT Agreements? 
Answer: 
Regarding Question 97 of document WT/ACC/L AO/24, following the issuance of the legal 
framework establishing the notification unit and enqu iry points, additional technical assistance that 
Lao PDR requires to fully implement the transpar ency provisions of the SPS and TBT Agreements 
includes: (1) trainings and study visits for staff of the SPS and TBT notification unit and enquiry points and their focal points located in line-minis tries; and (2) necessary equipment and manuals for 
the functioning of these unit and points.  Lao PD R reaffirms that it can fully implement the 
transparency provisions under the SPS and TBT Agreements upon WTO accession. 
Question 26 
With respect to Lao PDR's answer to Questio n 100 of document WT/ACC/LAO/24:  Article 
4.1(b) of the ASEAN Common Principles and Requirements for the Labelling of Pre-packaged 
Food notes that the labelling of the presence of food and food ingredients derived from certain 
methods of genetic modification is determined by na tional legislation.  We interpret this not as a 
GE labelling mandate by the ASEAN Common Principles and Requirements, but as giving 
ASEAN member states independent determination to develop a national GE labelling approach, 
which can be voluntary, mandatory, or a combinat ion of the two.  We welcome the opportunity 
to share with Lao PDR our experien ce and perspective in GE labelling. 
Answer: 
Article 38 of the Food Law provides the consumer's right to know on food pro ducts.  Article 5.1(iii) 
of the Regulation on the Labelling of Pre-packaged Food ensures such right by requiring the provision of all information (including GE type) which the consumer has the right to know in making their 
purchase decision on food products.  
 
Please see document WT/ACC/LAO/17/Add.1 and WT/ACC/LAO/22/Add.1 for copies of the law and regulations mentioned above.   
Question 27 
With respect to paragraph 134 of document WT /ACC/SPEC/LAO/5:  Could the representative 
of Lao PDR please indicate where in Ministerial Decision No. 0039, MoAF of 11 January 2012  WT/ACC/LAO/36 
 Page 15 
 
 
 the concept of regionalization is incorporat ed?  We note that Article 7 of No. 0039 on 
Recognition includes language regarding disease-f ree and pest-free or low pest or low disease 
areas, but Article 7 does not appear to incorporat e the obligations contained in Article 6 of the 
SPS Agreement.  Further we understand that the regulation on establish animal disease-free 
areas is still being developed.  When does Lao PDR anticipate having a draft available for 
Members to review? 
Answer: 
The newly adopted Decree on Implementation of th e Law on Plant Protection No. 229/GoL, dated 31 
May 2012, and Decree on Animal Disease Control an d Prevention No. 228/GoL, dated 31 May 2012,  
have incorporated the principle of regionaliza tion including the establishment of framework for 
disease-free and pest-free or low pest or low disease ar eas. The initial draft of those decrees has been 
reviewed by experts including FAO and USAID. Please see also the revised SPS Action Plan in document WT/ACC/LAO/13/Rev.6. 
Question 28 
With respect to paragraph 142 of document  WT/ACC/SPEC/LAO/5:  We recommend the 
following addition to the commitment language in paragraph 142.  
[The representative of Lao PDR stated that Lao PDR would progressively implement 
the WTO Agreement on the Application of th e Sanitary and Phytosanitary Measures in 
accordance with the action plan set out in  Table 18.  The representative of Lao PDR 
affirmed that Lao PDR's legal framework on food safety, animal and plant health would 
be in compliance with the SPS Agreement by  31 December 2012.  Full implementation 
would start from 1 January 2015 without recour se to any further transitional period.  
The Working Party took note of this commitment.]  
Answer: 
Lao PDR accepts the proposed insertion. 
Question 29 
In regards to document WT/ACC/LAO/13/Rev.5 – SPS Action Plan: 
Can Lao PDR please provide updates on the progress and/or adoption of the following laws and 
regulations: 
- Amendment of Decree on Livestock and Livestock Products Movement Control; 
- Amendment of Decree on Animal Diseases Control and Prevention; 
- Regulation on Criteria for Livestock Production and Veterinary Business; 
- Decree on Implementing on Plant Protection and Quarantine; and 
- Guideline on Inspection and Certification Procedures for Plants, Plant Products and 
Related Articles. WT/ACC/LAO/36 
Page 16  
 
 Answer: 
As mentioned in the response to Question 27, th e Decree on Animal Disease Control and Prevention 
(No. 228/GoL, dated 31 May 2012) Decree implem enting the Plant Protection Law (No. 229/GoL, 
dated 31 May 2012), Decree on Animals and Animal  Product Movement Control (No. 230/GoL, 
4 June 2012) have been adopted by the Government. 
The provisions initially foreseen to be included in  the Regulation on Criteria for Livestock Production 
and Veterinary Business have been taken into account in the Decree on Animal Disease Control and 
Prevention, and hence there is no n eed to issue such regulation.  
Likewise, the provisions initially foreseen to be  included in the Guideline on Inspection and 
Certification Procedures for Plants have been take n into account in the Decree implementing the Plant 
Protection Law, and hence there is no need to issue such guideline. 
For further details, please refer to the upda ted SPS Action Plan (WT/ACC/LAO/13/Rev.6). 
Question 30 
In regards to document WT/ACC/LAO/6/Rev.3 - Checklist of Illustrative Sanitary and 
Phytosanitary (SPS) and Technical Barriers to  Trade (TBT) Issues for Consideration in 
Accessions, Paragraph 5: 
Can Lao PDR please specify and explain the techni cal assistance it needs to fully implement its 
obligations under Articles 2.2, 3.3 and 5.2 of the WTO SPS Agreement? 
Answer: 
Please refer to the updated SPS Action Plan (WT/ACC/ LAO/13/Rev.6).  Note that Checklist has also 
been updated (WT/ACC/LAO/6/Rev.4).  
 
Question 31 
In regards to Decision No 1502 SPS Enquiry Point: Definitions of Sanitary and Phyto sanitary Terms:  What is L ao PDR's rationale for modifying 
the definitions for "Sanitary and Phytosani tary Measures," "Risk Assessment," and 
"Appropriate level of Sanitary or Phytosanit ary Protection?"  Why does the Lao PDR not use 
the WTO SPS Agreement definitions? 
Answer: 
Lao PDR thanks for Members' comments and has r ectified such definitions to be in line with 
SPS Agreement.  See its resubmission in document WT/ACC/LAO/33/Add.1. 
Question 32 
In regards to Ministerial Decision No. 0039, MoAF of 11 January 2012 and Ministerial Decision 
"On the Basic Principles for the Application of  Sanitary and Phytosanitary Measures in Plant 
and Animal Product Administration":  
Section 2, Article 6 - Harmonization:  Could the representative of Lao PDR explain the 
instances when Lao PDR "could not apply standard s in line with international standards" and  WT/ACC/LAO/36 
 Page 17 
 
 
 therefore use a regional standard?  What effort s would Lao PDR take to ensure that the 
standard adopted based on a regional standa rd met the obligations in the SPS Agreement? 
Article 8 - Non-discrimination:  Could the representative of Lao PDR indicate how the 
application of the regionalization principle is  taken into account in this Article 8? 
Answer: 
Lao PDR could not identify the instances when it coul d not apply standards in line with international 
standards.  In regards to Lao PDR's efforts to ensure its compliance with the SPS Agreement, please 
note that Article 6 paragraph 1 is to be read in combination with the subse quent paragraphs in the 
same Article which requires scientific justifica tion in case the level of protection differs from 
international standards.  In addition, Article 5 of the same Decision requires that all SPS measures 
may apply only on scientific basis.   
The discrimination must not be done in an arbitr ary or unjustified manner where identical or similar 
conditions prevail.  Accordingly, the regionalizati on principle may not be applied in a discriminatory 
manner without scientific justification.  In an y case, Lao PDR cannot and will not use any measure 
which is inconsistent with the SPS Agreement. 
Question 33 In regards to Decision No. 297/MOH "On Food Inspection": Article 12, 3.2:  The legislation states that f ood inspectors "may examine, make copies or take 
extracts of any documents including any licence issued to the food business and require the owner or person in charge of the food business to provide any information related to the food 
business."  We note that some companies may have concerns regarding a requirement to 
provide "any information related to the food bu siness" - especially if such information is 
proprietary or superfluous to what is needed  to perform the inspect ion.  Can Lao PDR more 
narrowly state the types of information that may be collected by inspectors within Article 3?   
Answer: 
Article 12(4) of Decision No. 297/MOH states: " Food inspectors are prohibited from disclosing any 
confidential information acquired in the perform ance of official duties relating to any person or 
business, except when required to by the Director or by a court".  
 
Additionally, the food inspector is also required to produce a written inspection report, which has to 
be given to the food business operator and to the Director of the Food and Drug Department as 
defined under Articles 12.3(13) and 14 of Decisi on No. 297/MOH where business operator can have 
evidence to file a case in  accordance Article 36 the Decision if he found his right is offended by the 
food inspector.   Article 35 of Decision No. 297/MOH also states: "Where an inspector acts outside his or her 
authority, appropriate action shall be initiated in  accordance with relevant legislation on civil 
services". WT/ACC/LAO/36 
Page 18  
 
  
Question 34 
In regards to Decision No. 297/MOH "On Food Inspection": Article 12, 3.9: The legislation states that food inspectors "may seize or confiscate food 
products, equipment's, raw materials, documents or  any items that do not comply with the Food 
Law or these Regulations".  In cases where food is being processed within Lao PDR for export 
to other countries where the food will not be s ubject to Lao laws, how will Lao PDR ensure that 
this food is not unnecessarily confiscated or destroyed? 
Answer: 
Article 12 3.9 of Decision on Food Inspection No. 297/MOH dated 24 February 2012 states that food 
inspectors "may seize or confiscate food products, equipment's, raw ma terials, documents or any 
items that do not comply with the Food Law or these Regulations"  is a general description on the food 
inspectors' right.  This right can be exercised  under Articles 22 and 33 of the Decision on Food 
Inspection No. 297/MOH dated 24 February 2012 wher e all food products produced in Lao PDR have 
to be inspected including food products produced for exports. In addition, food  exporters have to be 
certified by the Lao competent authority to ensure that the requirements of importing country will be 
met before it can export. 
 
Question 35 
In regards to Decision No. 297/MOH "On Food Inspection": Article 20.2 and 20.3:  The legislation states that food business operators shall "allow the food 
inspector to take samples and gather evidence including taking photographs or videos".  
We note that some companies may have concerns regarding the use of photographs or videos to 
gather evidence about their company, and re quests that Lao PDR remove this requirement 
from its legislation.   
Answer: 
Photographs or videos shall be taken for eviden tiary purposes only, and applicable in the case of 
serious violation which require seizing or confi scating of food products or  initiating of criminal 
proceedings as defined under Articles 22, 33 and 34 of Decision No. 297/MOH.  Regarding the 
concerns on confidentiality, please see also the answer to Question 33.  
Question 36 
In regards to Decision "On the Application of SPS Basic Principles in Plant and Animal 
Products", Article 9 - Transparency: 
Would Lao PDR consider adding the phrase "and any revisions made…" to paragraph 1 to 
read as follows:  "…. The preparation and any rev isions made, adoption and application of a 
measure shall be officially and widely published and notified."  WT/ACC/LAO/36 
 Page 19 
 
 
 Answer: 
This is the standard language of Lao laws.  Th e rational is that the preparation, adoption and 
application of a measure also refer to the prepara tion, adoption and application of any amendment to 
such a measure, because such an amendment is considered as a new measure replacing the old one. 
Question 37 
With respect to Minister Nam's statement delivered at the Working Party meeting on 
16 March 2012, we would appreciate further clarification regarding SPS:  
- Would Lao PDR please identify on-going ma jor reforms it is undertaking in order to 
incorporate all rules of the SPS Agreement? 
- Would Lao PDR please provide a list of all agricultural restrictions and other controls it 
has "abolished"? 
- Regarding Lao PDR's Trade Portal, will Lao PDR notify the WTO when the portal goes 
online and any other relevant information to inform Lao PDR's trading partners of this important event? 
Answer: 
Major ongoing reforms cover legal a nd institutional framework, as well as capacity building to ensure 
compliance with the SPS Agreement.  For fu rther details, please see updated SPS Action Plan 
(document WT/ACC/LAO/13/Rev.6). 
With regard to the abolished agricultural restri ctions and controls, please refer to section on 
Agriculture Policies of the draft Working Pa rty Report (WT/ACC/SPEC/LAO/5, paragraphs 159-
167). 
Regarding the trade portal, please see the response to Question 23.  
Question 38 
Further to the information provided in docume nt WT/ACC/LAO/13/Rev.5, and in light of 
Lao PDR's commitment to fully implement the SPS Agreement by January 2015, could Lao PDR provide a full overview of its implementation strategy which includes the programme 
and updated timeline to achieve this full impl ementation by the above-mentioned date? 
Answer: 
Please refer to the updated SPS Action Plan (document WT/ACC/LAO/13/Rev.6).  
Question 39 
As indicated in paragraph 12 2 of document WT/ACC/SPEC/LAO/5:  The main laws and 
regulations in the SPS area were the Food Law No. 04/NA of 15 May 2004; the Livestock 
Production and Veterinary Law No. 03/NA of 25 July 2008; the Plant Protection and 
Quarantine Law No. 06/NA of 9 December 2008. 
Paragraph 124 of document WT/ACC/SPEC/LAO/5:  He added that in order to comply with 
the SPS Agreement, Lao PDR would need to impr ove its risk assessment procedures, upgrade 
the existing legislation, and improve and deve lop its SPS-related processes and infrastructure. WT/ACC/LAO/36 
Page 20  
 
 Pursuant to the SPS measures, Lao PDR has expressed that it has legislated relevant laws in the 
SPS field and will improve risk assessment procedures. 
- Could Lao PDR please provide detailed descri ptions of the border quarantine inspection 
measures for transit commodities from neighbouring countries? 
- Which items should be subject to risk assessment? 
- Could Lao PDR please provide any quarantin e pest lists and phytosanitary measures 
related to those pests? 
Answer: 
The border inspection measures for transit commoditi es have already been included in newly adopted 
Decree on Implementation of the Law on Plant Protec tion, No. 229/GoL, dated 31 May 2012, Decree 
on Animal Disease Control and Prevention No. 228/ GoL, dated 31 May 2012,  and Decree on the 
Control of the Movement of Animal, Animal  Product and Related Item No. 230/GoL, dated 
4 June 2012.    
The categorizing requirements of food products accord ing to risk have been incorporated in the 
Decision on Food Inspection No. 297 /MOH, dated 24 February 2012 (a copy was submitted to the 
WTO Secretariat, document WT/ACC/LAO/31), and the basic principles on risk assessment are also included in the Decree on Disease Control and Prevention No. 228/GoL dated 31 May 2012, Decree 
on Implementation of the Law on Plant Protecti on No. 229/GoL, dated 31 May 2012, Decree on the 
Control of the Movement of Animal, Animal  Product and Related Item No. 230/GoL, dated 
4 June 2012.  
The list of regulated pests is included in the A nnex to the Law on Plant Protection (submitted to the 
WTO Secretariat document WTO/ACC/LAO/26).  The phytosanitary measures related to those pests 
have been reflected in the Decree on Implementati on the Law on Plant Protection Law. No. 229/GoL, 
dated 31 May 2012.  Please see the updated SPS Action Plan (document WT/ACC/LAO/13/Rev.6) 
for the technical assistance needed  for implementing phytosanitary me asures related to those pests. 
- Free Zones, special economic areas  
Question 40 
We appreciate Lao PDR's reply to Questio n 102 of document WT/ACC/LAO/24, where it 
clarifies that a new Prime Minister Decree o fficially repealing all existing local content 
requirements is to be adopted by February 2012.   We request that Lao PDR please share this 
new decree with the Working Party. 
Answer: 
Lao PDR has submitted a copy of Decree No. 154/PM of March 2012 to the WTO Secretariat 
(WT/ACC/LAO/32). 
- Agricultural Policies  
Question 41 We appreciate Lao PDR's response to Question 103 of document WT/ACC/LAO/24, concerning 
Lao PDR's commitments with respect to Agricultur al Policies.  However, instead of the text 
proposed by Lao PDR, we suggest the following text be inserted in this section:    WT/ACC/LAO/36 
 Page 21 
 
 
 xx.  The Lao PDR's commitments on agricultural tariffs and domestic support and 
export subsidies for agricultural products are contained in the Schedule of Concessions 
and Commitments on Goods [to be filled in to reflect document num bers] annexed to the 
Lao PDR's draft Protocol of Accession to the WTO. 
Answer: 
Lao PDR proposed the following commitment language:  
[The representative of Lao PDR confirmed th at it had no agricultural export subsidies. 
He however confirmed that should Lao PDR require  the use of agricultural export subsidies, it 
shall avail itself of the agricultural export subsidies provided for developing countries, 
(including LDCs) within the meaning of Ar ticle 9.1 (d) and (e) of the Agreement on 
Agriculture.  The representative further conf irmed that Lao PDR would adhere to any 
WTO decision that may be taken in this regard in the on-going Doha negotiations.  
The Working Party took no te of these commitments.] 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
Question 42 
We greatly appreciate the efforts of Lao PDR to  respond to Member questions on its Intellectual 
Property Regime (IPR).  We also appreciate the significant amount of work that Lao PDR has put into revising its IPR legislation to ensure its consistency with WTO rules.  In its responses, Lao PDR states that Lao PDR passed a new law in  December 2011 and that the government will 
not provide the document until it is "promulgat ed by the President," probably in April 2012 
(see in particular paragraph 179 of document WT/ACC/SPEC/LAO/5).  Members will need to 
review this new law to determine its consistency with WTO requirements.  We request Lao PDR 
to please submit this legislation to the Working Party for review as soon as possible.  We look 
forward to working with Lao PDR between Working Party meetings to ensure the WTO consistency of this legislation. 
Answer: 
Lao PDR has submitted a copy of the 2011 Intellect ual Property Law No. 1/NA of 20 December 2011 
to the WTO Secretariat (WT/ACC/LAO/34).  Basically, the revised IP Law has brought Lao PDR's legal framework with respect to IPRs to be full y in line with the TRIPS Agreement.  Note that 
regulations detailing implementation aspect are al so under drafting process.  See the updated TRIPS 
Action Plan (WT/ACC/LAO/15/Rev.6) and the up dated TRIPS Checklist (WT/ACC/LAO/7/Rev.2). 
 VI. POLICIES AFFECTING TRADE IN SERVICES 
Question 43 As indicated in paragraph 218 of document WT/ACC/SPEC/LAO/5, the Enterprise Law 
No. 11/NA of 9 November 2005 is aimed at providing foreign and domestic investors an opportunity to conduct business on an equal footing and has thus retained only certain 
restrictions related to cultural sensitivities, for example, tour guides. 
- Why are tour guides classified as one of the investment restrictions related to cultural 
sensitivities? 
- What other service sectors are still part of the cultural sensitivity restrictions? WT/ACC/LAO/36 
Page 22  
 
 Answer: 
The 2006 Tourism Law specifically requires that tour guides must be Lao citizens.  This requirement 
reflects the need of Lao PDR to preserve its l ong history and culture which have been often 
misunderstood or misled due to many similarities with  its neighbours.  Tour guides play an important 
part in such preservation.  Please note that none of  other service sectors in which Lao PDR has made 
market access commitm ent has cultural sensitivity restrictions. 
Question 44 
As indicated in paragraph 218  of document WT/ACC/SPEC/LAO/5:  Pursuant to Lao PDR's 
Labour Law No. 06/NA, foreign in vestors were encouraged to give priority to Lao nationals in 
recruitment.  
Lao PDR's commitment does not include such en couragement.  Will Lao PDR regard it as an 
economic need test (ENT) or a potential barrier to investment? 
Answer: 
Lao PDR takes note of Members' comments.  It is regarded as neither an ENT nor a potential barrier 
to investment. 
Question 45 As indicated in paragraph 220 of document WT/ACC/SPEC/LAO/5, in legal services, foreign 
nationals can provide advisory services as legal consultants, but cannot represent clients directly 
in court.  According to the Law "On Bar A ssociation" adopted in December 2011, foreign 
lawyers can practice law in Lao PDR. 
- What requirements should foreign lawyers meet? 
- According to the 2011 Law on Bar Associ ation, can foreign lawyers represent clients 
directly in Lao court? 
- What is the range of laws that foreign lawyers can practice in Lao PDR, including 
domestic laws? 
Answer: 
Pursuant to the 2011 Law on Lawyers (formerly called Law on Bar Association), foreign lawyers 
cannot practice Lao laws, or represent clients in front  of the Lao PDR's courts.  However, they may 
practice international laws and the laws of their home country provided that they meet requirements as 
set out in the Law on Lawyers. 
VII.  TRANSPARENCY 
Question 46 
We appreciate Lao PDR's acceptance of the proposed commitment text spelled out in 
Question 121 of document WT/ACC/LAO/24, concern ing notifications.  However, with respect 
to proposed commitment text on the publication of information on trade, we note that Lao PDR has proposed edits that delete a sentence dealing with prior publication in the Official Gazette.  
A sentence addressing that publication will include the effective date of proposed new measures 
has also been deleted.  Given the emphasis in  Article X of the GATT 1994 on publication of new  WT/ACC/LAO/36 
 Page 23 
 
 
 measures prior to implementation, we request that these sentences be retained in the 
commitment paragraph. 
Answer: 
 Lao PDR proposes the following commitment language: 
[The representative of Lao PDR confirme d that, upon accession, Lao PDR would promptly 
implement Article X of the GATT 1994, Article III of the GATS, Article 63 of the 
TRIPS Agreement, and other transparency pr ovisions in the WTO Agreements requiring 
notification and publication.  He further confirme d that no law, regulation, judicial decision, 
administrative rulings, or other measures of gene ral application, at any level of government, 
pertaining to or affecting trade in goods, servi ces and TRIPS, except for laws, regulations and 
other measures involving national emergency or security, or for which publication would 
impede law enforcement, would become effec tive prior to its publication in the Official 
Gazette or websites.  The obligation to establish the official Gazette and the principle that any 
laws become effective only after its publicati on is established under the Law on the Making 
of Legal Acts. Lao PDR, therefore, takes th e commitment to establish the Official Gazette 
within three years after accession.  The publi cation of such laws, regulations and other 
measures would include the effective date of th ese measures.  The Working Party took note of 
these commitments.] 
The (draft) Law on the Making of Legal Acts whic h addresses the above requirements is expected be 
passed by the National Assembly in June 2012.  Lao PDR requests a transition period of three years to 
organise and establish the Official Gazette.  
Lao PDR considers that the obligation to list all pr oducts and services affected  by a particular measure 
is practically impossible.  It is clear that if a law or decree affects a specific number of goods or 
services only, that law or decree by definition w ill have to define wh ich goods and services are 
subjected to such a law or decree. 
Question 47 
Paragraph 225 of document WT/ACC/SPEC/LAO/5 informs that public consultations with 
stakeholders are required before adopting laws, in particular "those relating to many parties 
and the vital interests of the Lao people". 
Could Lao PDR give some examples of laws that might not meet these conditions, and therefore, 
public consultations are not undertaken?  What is the percentage of laws that are subjected to 
public consultations?  All in all, we encour age Lao authorities to regularly consult key 
stakeholders on all new laws and enact a broader regulatory review process to foster great 
overall transparency of its policy-making.  
Could Lao PDR also inform about the establishment of an Official Gazette that will compile all 
new laws and regulations?  When and where will it be established?  
Answer: 
Only acts for administrative purposes such as appointment of a Director General do not need 
consultation process.  All other laws of general a pplication are subject to consultation process as they 
have some impact on several parties.  The la w-making process in Lao PDR follows the 2003 Edict 
No. 02/P on the Making of Legal Acts.  None of draft laws in the law-marking process is not WT/ACC/LAO/36 
Page 24  
 
 subjected to consultations with line ministries a nd the public; though financial constraints may limit 
the extensiveness of the consultations. 
Lao PDR is upgrading the Edict No. 02/P to the Law on the Making of Legal Acts  in order to enhance 
its legislation process.  It is expected to be adopted by the National Assembly in June 2012.  
See also the response to Question 46. 
The upcoming Law on the Making of Legal Acts will enhance the publication of the Official Gazette 
of the Government.  As this requires intensive in ternal coordination and is  a financially demanding 
exercise, Lao PDR needs some time to make the O fficial Gazette fully operational.  This is why 
Lao PDR is requesting a transition period of three years after accession for this. 
VIII. TRADE AGREEMENTS 
Question 48 
We appreciate the suggested commitment text in paragraph 230 of document 
WT/ACC/SPEC/LAO/5 concerning Lao PDR's WTO obligations with respect to trade agreements it belongs to, or may enter into in the future.  We request that the brackets be 
removed from this text.   
Answer: 
Lao PDR agrees to remove the brackets. 
 
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