. /.  WORLD TRADE  
ORGANIZATION  G/SCM/Q3/BRB/15 
G/SCM/Q4/BRB/7 6 December 2006 
 
(06-5846) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
REQUESTS PURSUANT TO ARTICLE 27.4 OF THE AGREEMENT 
ON SUBSIDIES AND COUNTERVAILING MEASURES 
 
PROCEDURES FOR EXTENSIONS UNDER  
ARTICLE 27.4 OF THE AGREEMENT ON SUBSIDIES  
AND COUNTERVAILING MEASURES 
 
Follow-Up Questions Posed by the UNITED STATES  
  
 The following communication, dated 5 December 2006, is being circulated at the request of 
the Delegation of the United States.  
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BARBADOS
 
 
Fiscal Incentive Programme  
Export Allowance  
The Research and Development Allowance  
International Business Incentives  
The Societies with Restricted Liability  
 
1. Are there more specific economic, financial a nd development statistics to which Barbados can 
point that demonstrate that the programmes in quest ions have had a positive impact and will continue 
to do so into the future? 
 2. Please explain further the statement that the pr ogrammes in question “have a strategic role to 
play in reducing the vulnerability that affects the proponents”?  Specifically, how do the programmes 
in question lessen the economic vulnerability of the proponents? 
 
3. Please explain further the statement that a new extension will “concretize some of the 
preliminary gains”?  4. If the programmes in question were term inated, would the production of the current 
beneficiaries become unprofitable? 
 5. Has there been a formal government review of the continued need for the programmes in 
question or any other formal government review of the programmes in question?   If so, what were the 
findings?  
6. Why is the Fiscal Incentive Programme limited to “selected products”? 
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  7. Although Barbados states that there are no requirements on the use of domestic over imported 
goods, the level of benefits under the Fiscal Incentive Programme appears to be based on the level of  
“local value added” (G/SCM/N/71/BRB, p. 3).  Please explain.  
8. What is the reason for the dramatic decline in  the level of benefits of the Fiscal Incentive 
Programme and the dramatic increase in the level of benefits of the International Business Incentives 
and Societies with Restricted Liability programmes?  9. Given that the Fiscal Incentive Programme  and the International Business Incentives 
programme both provide general tax benefits, what  is the relationship between the two programmes 
and how do their respective roles in Barbados ’ development strategy specifically differ?  
 10. Barbados states that the IBC Act provides a 15 year guarantee to licensed entities and the 
Societies with Restricted Liabilit y programme has an indefinite duration and a guarantee period of 
15 years also.  If an extension was granted, what step s will Barbados take to ensure that the benefits 
under these programmes will not exceed th e suggested 2018 extension request? 
 11. Could Barbados please explain that if any ad ditional extension is granted, would Barbados 
then provide export subsidies to new beneficiaries or  would the extension period be used to phase out 
the subsidies for the existing beneficiaries?   
 
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