WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/TPR/G/258 
4 January 2012  
 
(12-0001) 
Trade Policy Review Body Original:  English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
THE STATE OF KUWAIT 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by The State of Kuwait is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on The State of Kuwait. The State of Kuwait WT/TPR/G/258 
 Page 3 
 
 
CONTENTS 
 
 Page 
I.  INTRODUCTION 5 
II.  ECONOMIC DEVELOPMENT 5  
 (1)   ECONOMIC GROWTH  6  
 (2)   KUWAIT VISION 2035 7  
 (3)   ECONOMIC DEVELOPMENT PLAN AND DIVERSIFICATION OF THE ECONOMY  8  
 (4)   PRIVATIZATION  11  
 (5)   INVESTMENT REGIME  12  
 (6)   HUMAN RESOURCE DEVELOPMENT  13  
(7)  FUTURE OUTLOOK  14  
III.  TRADE POLICY DEVELOPMENTS 15  
 (1)   OBJECTIVES OF TRADE POLICY  15  
 (2)   SALIENT FEATURES OF TRADE POLICY  15  
   (i)   Tariff bindings 16  
   (ii)   Applied tariffs 16  
 (3)   DEVELOPMENTS IN TRADE POLICY  18  
 (4)   GROWTH AND DIVERSIFICATION OF TRADE  18  
 (5)   FUTURE OUTLOOK  19  
IV.  REGIONAL TRADE AGREEMENTS 20  
 (1)   MULTILATERALISM AND REGIONALISM  20  
 (2)   REGIONAL TRADE AGREEMENTS  21  
V.  WTO AND DOHA DEVELOPMENT AGENDA (DDA) 23  
(1)  KUWAIT AND THE WTO 23  
 (2)   KUWAIT 'S PARTICIPATION IN DOHA DEVELOPMENT AGENDA NEGOTIATIONS  23 
 
ANNEX  TECHNICAL ASSISTANCE NEEDS OF KUWAIT     25 
  The State of Kuwait WT/TPR/G/258 
 Page 5 
 
 
I. INTRODUCTION 
1. Kuwait gained independence on June 19, 1961.  Me rely six months after, the country became 
the first developing country to establish a Fund to provide economic assistance to fellow developing 
countries. 
2. In a visionary announcement on the occasion of launching of the Kuwait Fund for Arab 
Economic Development (since commonly known as the “Kuwait Fund”) on December 31, 1961, His 
Highness Sheikh Jaber Al-Ahmed Al-Jaber Al-Sabah, th e late Amir of Kuwait declared that:  “Here 
we are embarking on the tides of change, but we will not forget our friends in need”. 
3. It is a matter of satisfaction for Kuwait to recall that the late Mr. Robert McNamara, who 
served as President of the World Bank from 1968-1981, also hailed the country’s gesture in the 
following words:  “When first established in 1961, the Kuwait Fund was without precedent.  Here was 
Kuwait, a tiny country, until recently among the po orest places on earth, establishing a development 
fund in the year of its political independence.  While welcoming its new -found prosperity it was 
declaring a willingness to share its future wealth with its Arab neighbours." 
4. Half a century since, the vision articulated by the late Amir continues to inform the nation’s 
approach to matters of internationa l trade and development, indeed inte rnational relations in general.  
Kuwait believes that cooperation should be at th e top of efforts for harnessing the fruits of 
globalisation and uplifting the lives of people around the world.  The country follows this policy in letter and spirit. 
II. ECONOMIC DEVELOPMENT 
5. Situated in the North-East of the Arabian Peninsula (on the North-Western edge of the 
Arabian Gulf), Kuwait is blessed with one of the worl d’s largest reserves of oil.  Historically a centre 
of trade and commerce, it served as a hub of trad e between India, the horn of Africa, the Western 
Middle East and the Eastern Mediterranean rim co untries.  Up until the advent of Japanese pearl 
farming, Kuwait had one of the largest sea fleets in the Gulf region and a flourishing pearling industry.  Trade consisted mainly of pearls, wood, spices and dates. 
6. Since the discovery and development of oil and the Government’s egalitarian approach, in the 
short span of a few decades the country has been tr ansformed into a confident and modern state with a 
strong and stable economy, high standards of livin g, and a young, thriving and progressive-looking 
population.  
7. A measure of the country’s confidence and its m odern and progressive outlook is most clearly 
reflected in the fact that the Kuwait Fund extends grants and loans on concessionary terms to finance 
development projects in developing countries.  The Fund also provides technical assistance to finance 
the costs of feasibility studies of projects, as we ll as the training of nationals of the borrowing 
countries.  In addition, the Fund subscribes in th e capital of international and regional development 
institutions.  Kuwait sees the Fund as providing a bridge of friendship and solidarity between the state 
of Kuwait and the developing nations and a means of promoting sustainable development around the 
world. 
8. Although initially created to assist the Arab c ountries, the mandate and operations of the Fund 
were subsequently extended (as far back as July 1974) to include deve loping countries in general, i.e., 
not just the Arab developing countries.  During 50 years of its operations, the Fund has provided loan and grant assistance to 102 beneficiary countries amounting to over $15 billion.   WT/TPR/G/258 Trade Policy Review 
Page 6 
  
9. According to the latest (2010) Human De velopment Report of the United Nations 
Development Programme, in terms of overall human development, Kuwait is ranked 47th among 169 
countries covered by the 2010 Index of Human Development. 
10. Kuwait’s economy is fully integr ated with the world economy.  As a necessary consequence 
of this integration, any headwinds in the gl obal economy produce an immediate impact on Kuwait’s 
fortunes.  In a nutshell, Kuwaiti economy is subject to  the influence of a host of factors, including any 
major developments in the world economy, shifts in demand for oil, or movements in exchange rates. 
11. According to the International Monetary Fund country report of July 20101, “The global 
financial crisis adversely affected Kuwait’s financ ial system, but the authorities have succeeded in 
preserving financial stability”. 
(1) ECONOMIC GROWTH  
12. The growth rate of real GDP ranged from 3% in 2002 to 10.6% in 2005, 5.3% in 2006, 4.6% 
in 2007 and 5% in 2008.  However, the GDP declin ed by 5% in 2009, and then increased by 3.3% in 
2010. 
13. As to the sectoral composition of GDP, in curre nt prices a mere 0.2% was contributed by 
agriculture and fishing in 2009, while the shares  of industry and services were 51.7% % and 48.1% 
respectively.  
14. Analysing the composition of GDP further, at current purchasers’ value, the sectoral 
components of GDP in 2009 were:  Extraction of oi l and gas 45.2%;  manufacturing 5.4%;  finance, 
insurance, real estate and business services 19.4%;  community, social and personal services 17.8%;  
transportation and communication 8.3%;  retail and wholesale trade, hotels and restaurants 4.4% 
0.8%;  construction 1.9%;  and electricity, gas and water 1.3%. 
15. The international financial crisis of the past couple of years has had a large negative impact 
on Kuwait’s economy.  It was res ponsible for decline in export ear nings, collapse of stock prices, 
decline in business confidence, re duction in the growth rate of na tional economy, and a large decline 
in the value of national fina ncial assets invested abroad. 
16. The exchange rate regime in Kuwait is classi fied as a conventional peg to a basket of 
currencies.  In its July 2010 country report, the IMF determined that according to the Fund’s staff 
assessment during its Article IV consultation with  the country the real exchange rate was found 
broadly in line with fundamentals, and that the pe g remained appropriate in the run up to the GCC 
monetary union. 
17. The medium term economic policy aims to achieve real yearly growth rate of GDP at 5.1% 
during the period 2011-2014, with the target for no n-oil sectors at 7.5%.  More on this in section 
3 below (relating to the economic development pl an and the diversification of the economy). 
18. Of the total population of 3.58 million (2010), Kuwaiti nationals comprised only 32.1%, with 
the rest of 67.9% being non-Kuwaiti expatriates.  In terms of employment, 76.6% of total national 
manpower of Kuwaiti workers was employed in th e public sector.  On the other hand, 91.1% of non-
Kuwaiti residents (who are generally low skilled) were c oncentrated in the private and family sectors.   
                                                      
1 IMF Country Report No. 10/239, July 2010. The State of Kuwait WT/TPR/G/258 
 Page 7 
 
 
(2) KUWAIT VISION 2035 
19. The Government is keenly aware of the perils of reliance on oil (an e xhaustible resource) for 
sustainability of the country’s economy.  It has th erefore launched a long-term  policy vision under the 
banner of “Kuwait Vision 2035”.  The main planks  of this vision can be summed up as follows: 
 Recovering the pioneering regional role of Ku wait and transforming it into a financial and 
trade center, attractive to investors, where ( as in the pioneering periods of Kuwait’s past) 
private sector plays the lead role in economic activity creating competition and promoting efficiency;  with supportive national gove rnmental institutions providing adequate 
infrastructure, appropriate legislative framewo rk and an inspiring business environment; 
 Providing climate for balanced human developm ent, safeguarding social values and national 
identity, preserving the community’s valu es and its Arab and Islamic identity; 
 Strengthening the democratic system, respect fo r the constitution, and promotion of justice, 
political participation and freedom. 
20. Within this vision, the 6-pronged strate gic aims of development till 2035 are: 
(i) Increasing the GDP and raising the citizens’ standard of living by: 
(a) Increasing non-oil growth to improve citizens livelihood; (b) Diversification of pro duction base through financia l, commercial and services 
sectors (in particular the transport sector), without neglecting the other 
sectors; 
(c) Strengthening financial institutions’ competitiveness, diversifying investment 
and financial instruments of the capital market; 
(d) Improving oil sector performance a nd increasing its interrelations in the 
national economy – particularly the pe trochemical and technology industries 
of high added value; 
(e) Reforming and developing genera l budget  structure to promote non-oil 
deficit reduction; 
(f) Maintain economic stability and justice in the distribution of national income. 
 (ii) Encouraging the private sector to play the lead role in national development, through 
stimulating mechanisms including the following: 
(a) Diversification of property structur e by gradually reducing the participation 
of public sector, encouraging increasing private sector role especially that of 
small and medium enterprises; 
(b) Privatization of state-owned enterprises; (c) Elimination/reduction of administrative and regulatory obstacles; (d) Facilitation and simplification of investment procedures; WT/TPR/G/258 Trade Policy Review 
Page 8 
  
(e) Completion of on-going infrastructure pr ojects, and realizing integration and 
cooperation of private sector for new projects by encouraging participation of small and medium enterprises; 
(f) Creating an appropriate environment to attract foreign investment, including 
by encouraging participation betw een foreign and local companies. 
 (iii) Supporting human and social development through, inter alia , the following: 
(a) Promotion of education and training, and research; (b) Improving the quality and delivery of health services, with international 
benchmarks; 
(c) Improvement of social services, empowerment of women, and up-gradation 
of care, cultural, information and religious services. 
 (iv) Promoting demographic policies,  supportive of development strategy: 
  (a) Securing improvements in the demographic composition of the population; 
  (b) Improving skill levels of indigenous population; 
  (c) Securing improvement in the qu ality and productivity of expatriate 
 workforce; 
  (d) Promoting the observance of human rights and, in this regard, preserving 
 Kuwait’s reputation in adherence to relevant international conventions. 
 (v) Enhancing and improving the  effectiveness of government administration by: 
  (a) Increasing transparency, accountability and honesty of administration;   (b) Restructuring the administrative machinery and improving the delivery of 
  public services including through electronic means; 
  (c) Modernizing the collection and disse mination of data and information, and 
  supporting the development of information society. 
 (vi) Consolidating the Islamic and Arab identity:   (a) Preservation of Kuwait’s Islamic identity  and the state’s Arab orientation, in 
 accordance with the dictat es of Kuwait’s constitution. 
(3) E
CONOMIC DEVELOPMENT PLAN AND DIVERSIFICATION OF THE ECONOMY  
21. As noted earlier, the Government is aware of  the country’s excessive reliance on oil and the 
other structural issues that have come to character ise the nation’s economy and life.  It has undertaken 
a comprehensive analysis of these problems and has launched a multi-pronged plan aimed at 
addressing and correcting the imbala nces, and diversifying the economy for long-term sustainability.  
In this context, the Medium-term Development Plan for 2010/2011–2013/20142 envisages 
                                                      
2 Kuwait's financial year is 1 Apr il-31 March of the following year. The State of Kuwait WT/TPR/G/258 
 Page 9 
 
 
quantitative and qualitative changes and improvement s across a range of areas, grouped under three 
main headings:  (i) economic development, (ii) human and social development, (iii) management, 
administration and planning.  The central focus of  the plan is on securing diversification of the 
economy and a quantum shift from public to the privat e sector with the aim of all round improvement 
in efficiency. 
(a) Economic growth and development 
22. The main targets of the plan are: 
 To secure real annual growth rate of 5.1% in th e GDP;  with private sector activities securing 
an annual rate of 8.8%, non- oil public sector at 4.4% and oil public sector at 2%; 
 Average annual investment of KD 7393 million, with public sector (oil) at KD 1617 million, 
public sector (non-oil) at KD 2350 and private sector at KD 3426 million; 
 To secure reduction in the contribution of o il sector in GDP from 43% in the base year 
(2008/2009) to 39% by 2013/2014; 
 To secure increase of private se ctor share of non-oil GDP from 65% in the base year to 70% 
in the final year of the plan period; 
 To secure increase in private sector share of non-oil investment from 40% to 65%; 
 To secure increase in the share of non-oil reve nue in total state revenue from 12% to 30%. 
(b) Human and social development 
23. Some of the main quantitative targets for im provement in social sector indicators are: 
 To secure a shift in the demographic composition of population, through an increase in the 
percentage of population of Ku waiti nationals in total popula tion from 31.4% in 2008/2009 to 
35% by the end of the plan period; 
 Reduction in average annual number of those newly employed in the Government sector from 
15,000 in 2003-2008 to 8000 by the end of the plan period; 
 Shift in the orientation of secondary school st udents towards scientific studies from 36% in 
2007-2008 to 50%; 
 Increase in enrolment in technical and scien tific/professional colleges/universities from 39% 
in 2003-2008 to 55%; 
 Increase in the ratio of expenditure on scientif ic research from 0.2% of GDP to 1% of GDP; 
 Securing similar improvements in health care, care of the elderly and other community 
development indicators, including especially the establishment of 34 new centres for primary 
health care, 300 dental clinics (up from 194 in 20 07) and 100% coverage for health insurance; 
 Construction of 48,117 new housing project s (32,199 new blocks, 12,653, houses, 3,265 
apartments); WT/TPR/G/258 Trade Policy Review 
Page 10 
  
 Establishment of new care centres for children, the disabled, and elderly. 
(c) Management, administration and planning 
24. Likewise, to secure improvements in manage ment (including transparency, accountability, 
and modernisation and delivery of services) the plan envisions far reaching changes.  The main elements of these changes are: 
 To reform the Government apparatuses, decrease their size and to remove complexities in the 
existing structure; 
 To upgrade the quality of performance by si mplification of procedures and updating the 
public services' guide; 
 To study privatization of some government services; 
 To complete projects of electronic government, to link the information systems of the 
Government sector via Kuwait information networ k, and to complete the construction of the 
National Data Center of the Government sector; 
 To activate and develop the legislative netw orks and institutional mechanisms to fight 
corruption and to enhance transparency; 
 To issue anti-corruption law and to est ablish an anti-corruption authority; 
 To enhance the role of civil society's organizations; 
 To establish units for planning in the Governme nt apparatuses and to enhance the abilities of 
their strategic planning; 
 To encourage and support citizens par ticipation in the development process; 
 To establish modern mechanisms for collection and dissemination of information; 
 To spread the culture of information and its application by collective programs between the 
Central Authority for Information Technology and the Ministries of Education and Information and the concerned organizations of the civil society. 
(d) Legislative requirements in the economic sector 
25. In order to underpin the reforms, the plan envi sages enactment of new la ws or amendments to 
existing laws and regulations.  A co mplete list of legislative requirements has been identified for each 
of the three main areas of the plan.  Thus it is  proposed to upgrade the legislative framework by 
addressing a number of legal instruments.  These include in particular the enactment (or amendment) of a privatization law, law on protection of competiti on, income tax law, value added tax law, a law to 
establish a capital market authority, labour law, environmental protection law, anti-corruption law, 
intellectual property law, and the like. The State of Kuwait WT/TPR/G/258 
 Page 11 
 
 
(4) PRIVATIZATION  
26. In May, 2010, Kuwait’s parliame nt passed the law setting out the framework for a programme 
of privatization of state-owned enterprises. 
27. Kuwaiti economy has hitherto been dominated by the public sector, with a generous welfare 
system.  Therefore, for the privatization initiative to succeed and bring on board the various 
stakeholders, it was imperative that the benefits of  the programme were adequately explained to the 
population.  It was also necessary to clearly define  the objectives and the strategy of the programme.  
For instance, perceptions of loss of privileged relationships and special advantages enjoyed by 
customers and employees were bound to evoke resist ance.  Failure to deal effectively with the 
transition process could also damage the chances of the success of the programme.  Not least among 
the issues was the need to  resolve the question of jobs and employment. 
28. The law sets out the framework and related me chanics for the privatization process.  It 
provides for the criteria and conditions to be satisfi ed before an asset can be privatized, namely: 
 Ensuring consumer protection and avoiding monopolistic practices;  the privatized companies 
will be subject to regulatory and price contro l mechanism to ensure that these companies 
maintain minimum standards and do not exploit their prices; 
 Ensuring the availability and development of modern technology; 
 Ensuring commitment to protection of the environment; 
 To avoid conflicts of interest,  potential owners of  the privatized sector cannot be  current 
owners of another business  whose objectives are similar to the  privatized sector. 
29. To address a widely-expressed concern that priv atization would lead to the disposal of 
Kuwait's national wealth, the Law prohibits the priva tization of oil and gas, oil refineries and health 
and educational services. 
30. In order to carry out the privatization progra mme, the Privatization Law establishes a Higher 
Privatization Council consisting of nine members with the Prime Minister as head and five Ministers 
plus three specialists with competence in financia l, economic, legal and technical issues relevant to 
the programme as members.  The Council will be r esponsible for overseeing and regulating the sale of 
public services to the private sector.  Moreover, th e Council will have an ongoing obligation to report 
to the Council of Ministers every six months advi sing it of the performance of companies established 
in accordance with the Privatization Law.  None  of the members of the Council, Ministers and 
members of the National Assembly or their relati ves are allowed to have any interest in the 
privatization procedures, in particular in the shares offered through public auction. 
31. As to the procedure for privatization, the Priv atization Law stipulates that at least two firms 
(one of which shall meet international standards) specializing in evaluating assets and liabilities will 
be tasked to provide the valuation of assets and lia bilities of the entities proposed to be privatized.  
Thereafter, within two years of the approval of the evaluation, a “joint stock company” will be established for each privatized project.  The capital of the joint stock company will be divided into 
shares to be allocated to designated governmental  bodies, to Kuwaiti employees of the entity and to 
Kuwaiti public through public offering. 
32. The Government shall own a so-called golden sh are in the joint stock company, giving the WT/TPR/G/258 Trade Policy Review 
Page 12 
  
Government such voting capability as to enable it to veto the resolutions of the company’s board or 
general assembly. 
33. To alleviate concerns about loss of jobs by Kuwaiti citizens, the law provides for protection 
of employees working in the relevant entity prior to being privatized. 
34. The Council has the right to investigate any br each of obligation under the law, the executive 
regulations or any of the subsequent resolutions .  Discretionary penalties may be imposed ranging 
from a warning to the dissolution of the company’s bo ard of directors.  Furthermore, the company’s 
chairman, directors and their assistants may also be held personally liable in relation to any intentional 
breach of the provisions of the Privatization Law.  Finally, no director, officer or employee of the 
company may disclose any information regarding its activities for a period of five years after such 
director, officer or employee has left the comp any, unless provided otherwise according to the 
applicable laws. 
(5) INVESTMENT REGIME  
35. In keeping with Kuwait’s history of open trad e and commerce, the founding principles of the 
state, and to cater to the demands of a new economic environment characterized by increasing 
globalization and ever-expanding international trad e in which private sector plays the lead role, 
Kuwait enacted a law “Kuwait Law Regulating Direct Foreign Investment (Law No. 8 of 2001).  The 
purpose of this law and the executive regulations made there under is to provide for a simple, 
transparent framework governing the direct i nvestment of foreign capital in Kuwait. 
36. The objectives of the legislation are to encourage foreign investment in the State of Kuwait;  
to recognize and stress the importance of its role in the country’s development and in bridging the gap 
between the availability of resources and potential de mand;  to expand the national investment base;  
to gain access to modern technology;  to promot e and develop management and marketing expertise 
in the country;  and to contribute to the success of the privation programme. 
37. Among the salient features of the law, any fore igner (defined as any natural or legal person 
holding foreign nationality) may, by establishing and incorporating a company in Kuwait, hold up to 
100% of its shares.  The law provides for non-confi scation or nationalization of the foreign capital.  
The foreign investor is accorded the freedom to transfer his/her investment to any foreign or a 
national investor as well as the full freedom to tran sfer abroad the capital and/or any profits.  The 
investor may also receive a number of privileges, namely, complete exemption from income tax for a 
period of up to 10 years;  total or partial exem ption from customs duties on import of machinery, 
equipment, raw materials and semi-processed goods;  a llotment of land and real estate required for the 
enterprise subject to applicable laws and regulations. 
38. Kuwait offers an investment friendly tax and regulatory environment with a low rate of 
corporate income tax of only 15% on any income ab ove Kuwaiti Dinars 5,250.  Any expropriation of 
capital may be only in public interest and subject to compensation equivalent to the enterprise’s real 
economic value. 
39. The Foreign Capital Investment Committee a nd the Kuwait Foreign Investment Bureau 
(KFIB) provide for a hassle-free approval process.  It  has been decided to establish a “one-stop-shop” 
within the bureau.  Total approved investment so far amounts to KD 595 Million (with KD 550 million in industrial enterprises and KD 45 million in services enterprises).  Of the number of foreign enterprises, 11 are in the industrial sector  and 3 in the services sector and are owned by 
investors from the Netherlands, France, the United Kingdom, Italy, Switzerland, Japan and the 
United States. The State of Kuwait WT/TPR/G/258 
 Page 13 
 
 
40. Kuwait’s geographical location is well-suited to  servicing the emerging markets of Northern 
Iran, Iraq, Turkey and the Commonwealth of Indepe ndent States (CIS).  With a view to taking 
advantage of this potential, the Kuwait Free Trad e Zone (KFTZ), located in Shuwaikh Port, provides 
access to these big potential markets. 
41. Shuwaikh port, home of the KFTZ, is owned and operated by the Kuwait Ports Authority 
(KPA).  During the past few years, KPA has undert aken massive renovation and modernization of its 
management and operation systems resulting in considerable increase in both efficiency and 
productivity.  The privatization of cargo and contai ner handling activities and computerization of its 
tariff, financial and administrative systems have made KPA a modern port facility. 
42. Investment in the KFTZ offers potential incentives, including, exemption from taxation on all 
corporate and personal income;  complete freedom to transfer capital and profits;  absence of any exchange controls;  hundred per cent foreign owners hip is permitted and encouraged;  proximity to 
the international airport and to Kuwait city;  private sector management ensures all professional support for the industries;  ample availability of en ergy and water;  state of the art communication 
systems;  and excellent transportation systems by sea, land and air. 
(6) H
UMAN RESOURCE DEVELOPMENT  
43. His Highness Sheikh Sabah Al-Ahmad Al-Jabir Al-Sabah, the Amir of Kuwait believes that 
“the real wealth of Kuwait, and on whose shoulders rests the future of  the nation, is its youth”.  The 
Government therefore attaches utmost importanc e to the development of its human capital. 
44. In accordance with this policy, the country cont inues to invest great effort and resources in 
upgrading the nations’ human resource profile.  Prim ary education is a right and is offered free of 
charge by the State.  It is obligatory for all Ku waitis from the age of 6 to 14 to attend school, from 
primary school to the intermediate school.  Besides,  university education is also free for all Kuwaiti 
nationals and state-funded adult e ducation and vocational training is provided by the Public Authority 
for Applied Education and Training (PAAET). 
45. As a proportion of GDP, Kuwait spent an average 5.1% on education during the period 2002-
2005.  Measured as per cent of total government expenditure, (in 2009/2010)  13.6% was on education 
(distributed among the main education segments as follows:  primary education 31%, secondary and 
post-secondary non-tertiary education 38%, and tertiary education 30%). 
46. Consequently, since gaining independence in  1961, Kuwait has attained near-universal 
literacy so that at the end of 2007 it was determ ined to be 94.5% (see UNDP Human Development 
Report 2010). 
47. The country has established three specialized  scientific bodies in the field of academic 
research with the ultimate aim of building up m odern Kuwait.  These bodies are:  the Kuwait 
Foundation for the Advancement of Science (KFAS) , the Kuwait Institute of Scientific Research 
(KISR) and the Scientific Clubs. 
48. Besides, there is an autonomous body – the Public Authority for Applied Education and 
Training (PAAET).  Established with the objec tive of developing and upgrading the national 
manpower to meet the challenge of shortfall in tec hnical and professional hands in the country, its role 
is to provide direction and supervision to four colleges in the applied education sector, namely, the 
College of Basic Education, College of Business Studies, College of Technological Studies and the 
College of Health Sciences.  In addition, there ar e under its umbrella a number of training institutes WT/TPR/G/258 Trade Policy Review 
Page 14 
  
including the Telecommunications and Navigation In stitute, Electricity and Water Institute and the 
Industrial Training Institute. 
49. The development of human resources and upgrad ing the skills and competencies of Kuwaiti 
workforce to keep pace with technological pr ogress and the changing needs in a knowledge-based 
environment remains one of the primary goals of the country.  Therefore upgrading and spreading of 
basic education together with the necessary youth pr ogrammes, the expansion of  university education, 
raising the ratio of enrolment in higher education and professional institutions continue to receive the 
highest priority in Kuwait.  Government gives gr eat importance to allocating required resources for 
implementing the necessary programmes in this regard. 
50. In its efforts to achieve continual improvement s in the skills profile of Kuwaiti workforce and 
of its human capital in general, especially with a view to contributing to the success of the recently-
launched privatization programme, the Government has identified further areas for upgrading and has 
established a programme of action with clear goals  and benchmarks.  Among the most prominent of 
these goals are (i) securing substantial reductions in  drop-out and failure rates, (ii) increasing the 
length of academic year for pupils at all levels of  education and bringing these in line with best 
international practices, (iii) encouraging heightened  interest among students for studying mathematics 
and applied science subjects with the aim of incre asing enrolment in these areas to 50% of the total, 
(iv) promoting greater occupational satisfaction am ong teachers and staff, and (v) promoting greater 
collaboration with reputed interna tional institutions and universities. 
(7) FUTURE OUTLOOK  
51. Oil being the mainstay of Kuwait’s economy, the country has a high degree of trade and 
economic integration with the world economy.  Th is integration however also makes the country 
vulnerable to the ups and downs of the global economy. 
52. Thus, the rapid expansion of the global ec onomy provided strong momentum to Kuwait’s 
economy.  Real GDP growth averaged 5 per cent during 2002-2010.  Abundant liquidity supported strong increases in real estate and stock market pric es.  The Kuwaiti stock exch ange became the best 
performer among GCC states in this period and the prices of residential and commercial real estate 
nearly doubled.  However, reflecting domestic de mand pressures and higher import prices, inflation 
also rose to double digits by 2008. 
53. But then the recent global crisis which star ted in 2008 produced an adverse impact on 
Kuwait’s economy, too. 
54. The authorities had to respond forcefully  to the adverse developments by, inter alia , 
extending a blanket guarantee on all bank deposits, in jecting liquidity through central bank operations 
and government deposits at comme rcial banks, reducing the discount  rates, enacting a financial 
stability law allowing for substantial financial sect or guarantees, easing of prudential loan-to-deposit 
ratio to facilitate credit growth, and support to the Kuwaiti stock market through the establishment of 
a stabilization fund.  The country thereby succeeded in preserving financial stability. 
55. As noted previously, the Government is alive to the risks inherent in the country’s reliance on 
oil.  It has therefore launched a wide-ranging prog ramme of restructuring and diversification.  The 
main features of the programme have  been highlighted in this section above.  It is confident that the 
implementation of this programme will put the country’s economy on a more sustainable path. 
56. His Highness the Amir of Kuwait believes that planning and development are the essential 
basis for building and securing a better future for the nation and its future generations, that the The State of Kuwait WT/TPR/G/258 
 Page 15 
 
 
objective must be centered on the welfare of the Kuwaiti people, and that the nation must take bold 
initiatives and make determined efforts to achie ve its goals through an inclusive process. 
III. TRADE POLICY DEVELOPMENTS 
57. The Kuwaiti society and its State were founded on the basis of free trade.  In line with the 
founding principle of the State, Kuwait’s trade regi me conforms to the fundamental tenets of the 
multilateral trading system based on GATT/WTO.  It is free and open, transparent and business-friendly.  The Government scrupulously follows the principles, rules and disciplines of the WTO, both in terms of national commitment and practice.  Moreove r, in the interest of certainty and predictability 
for business operators, any changes to tr ade policy are made only when necessary. 
(1) O
BJECTIVES OF TRADE POLICY  
58. The overall objective of Kuwait’s trade policy is to contribute to economic growth and 
development leading to raising standards of living and welfare and prosperity of the people.  The 
policy is people-centric and welfare-oriented.  S ubsidiary and contributing objectives of trade policy 
are: 
i. Expanding the production of and trade in goods and services. 
ii. Securing improved stable and predicta ble market access for Kuwaiti exports. 
iii. Keeping Kuwaiti market open and liberal for imports from all sources. 
iv. Creating enhanced employment opportunities for the people. v. Catering to the legitimate interests of co nsumers, producers and traders in a balanced 
 manner. 
vi. Protecting and preserving the environment. 
59. These objectives are sought to be attained by promoting open and liberal trade both of Kuwait 
and its trading partners, by following the princi ples and rules of the WTO and by entering into 
mutually advantageous arrangements directed to the elimination or substantia l reduction of tariffs and 
other barriers to trade and to the elimination of discriminatory treatment in international trade relations. 
60. For this purpose, the Government is committe d to the successful conclusion of Doha 
Development Agenda with a package of balanced and substantive results.  Kuwait is of the view that 
the best recipe for promotion of trade on a sustai nable basis is through strengthening and reinforcing 
the multilateral trading system. 
61. The focal point for formulation and implem entation of Kuwait’s trade policy and for 
achieving its objectives is the Ministry of Commer ce and Industry in close operation with other 
relevant Ministries and organizations. 
(2) S
ALIENT FEATURES OF TRADE POLICY  
(a) Tariffs 
62. The major instrument of Kuwait’s trade policy is  tariffs.  These are applicable to imports, 
with many items carrying zero rates, while no tari ffs are applied to Kuwait’s exports.  Moreover, 
Kuwait uses a simple, uncomplicated tariff regime.  All tariffs are applied on Most-Favoured-Nation WT/TPR/G/258 Trade Policy Review 
Page 16 
  
(MFN) basis, except for imports originating from th e Member States of the Gulf Cooperation Council 
(GCC), which are free of duty under the framework of the GCC Customs Union.  Imports from a 
number of Arab countries, members of the Greater  Arab Free-Trade Area, also enter free of any 
customs duty. 
(i) Tariff bindings 
63. Kuwait’s tariff binding coverage is 99.9 per cent, which is higher than that of a large number 
of original Members of the WTO.  It has bound ta riffs on all agricultural products as well as all non-
agricultural products except for oil, petroleum and petrochemicals.  Thus, Kuwait’s binding coverage 
compares very favourably with most WTO Members. The bound rate of tariff for all agricultural and 
non-agricultural products (except for the unbound tariff lines) is 100 per cent.  This bound rate needs 
to be viewed in the context of the historical development of tariff binding by developing countries in which many of these countries opted for ceiling bind ings.  Moreover, in actual practice, Kuwait does 
not apply this high rate.  The only exception is a few tariff lines relating to imports of tobacco for 
health reasons.  It should also be emphasized  that Kuwait remains committed to a successful 
conclusion of Doha Development Agenda and would implement the tariff reductions that may be 
collectively agreed by all WTO Members. 
(ii) Applied tariffs 
64. In accordance with the Common External Tariff of  the Customs Union, the applied tariff rates 
of Kuwait are 5% and 0% for virtually all tariff lin es.  Under the common tariff, about 8.7% of tariff 
lines are duty free. 
65. In fact, as highlighted by the following table,  the average applied tariffs by Kuwait in 2007 
and 2009 compared very favourably even with most developed countries: 
Average Applied Tariffs, Selected Economies 
(Per cent) 
Economy 2007 2009 
All Goods Agr. products Non-agr. 
products All Goods Agr. products Non-agr. 
products 
Kuwait 4.6 4.0 4.7 4.7 5.2 4.7 
Canada 5.5 17.9 3.7 4.5 10.7 3.5 
EU(27) 5.2 15.0 3.8 5.3 13.5 4.0 
Japan 5.1 21.8 2.6 4.9 21.0 2.5 
U.S.A. 3.5 5.5 3.2 3.5 4.7 3.3 
 
Source:  WTO, Trade Profiles, 2008 and 2010. 
66. Likewise, only about 1.3% of tariff lines in Kuwait were subject to non- ad-valorem  duties in 
2009.  Comparative percentages of tariff lines with non- ad-valorem  tariffs in Canada were 1.7%, EU 
(27) 4.6%, Japan 3.7%, and the United States 8.2%. 
67. As noted under tariff bindings above, although it may be said that there is a wide gap between 
the bound rates and actually applied rates, the hi gh bound rates should be viewed in the historical 
context of tariff bindings by developing countries.   Secondly, Kuwait would agree to reduce the 
bound rates consequent upon multila teral decisions reached in D oha Development Agenda (DDA) 
negotiations in accordance with the NAMA formula. The State of Kuwait WT/TPR/G/258 
 Page 17 
 
 
68. In a nutshell, Kuwait’s import tariffs are simple , uncomplicated and transparent.  Almost all 
tariff lines, except a handful, carry ad valorem  rates.  Further, Kuwait does not maintain any tariff rate 
quotas or variable levies. 
(b) Internal taxation and regulations 
69. Kuwait does not apply internal taxes such as VAT , sales tax or excise duty or other internal 
charges, to either imported or domestically pr oduced goods.  However the Gulf Cooperation Council 
countries are currently preparing a unified project for value added tax which should be implemented 
collectively among the G.C.C that applies a fixe d rate of 5% on goods and services.  Member 
countries are ready to implement a VAT  collectively in 2014 but no later than 2016.  With respect to 
regulations and requirements affecting internal sale,  purchase, transportation, distribution or use of 
products, Kuwait remains committed to the disciplines of Article III of GATT 1994 and strictly abides 
by its national treatment provisions. 
(c) Import restrictions and import licences 
70. Import prohibitions and restrictions apply to re latively fewer tariff lines, only where justified 
for health, safety, security and religious reasons.  Import restrictions or import licenses are not meant 
as restrictions limiting quantity of imports. 
(d) Exports 
71. Kuwait does not apply any export duties, taxes or charges on its exports.  Kuwait also does 
not apply any export performance requirements. 
(e) Export subsidies and TRIMs 
72. Kuwait does not apply any export subsidies to either agricultural or non-agricultural products.  
Kuwait also does not use any prohibited trad e-related investment measures (TRIMs). 
(f) Customs valuation 
73. Kuwait has been using and applying the provisions of the WTO Agreement on Customs 
Valuation.  This is done through the GCC Comm on Customs Law and its implementing regulations 
which are applied uniformly by all GCC Member States. 
(g) Anti-dumping, countervailing and safeguard measures 
74. The GCC Member States, including Kuwait, ha ve a common trade remedy law, which has 
recently been revised to bring it into conformity with the WTO Agreements on Anti-Dumping, Subsidies and Countervailing Measures, and Safeguard  Measures.  However, since joining the WTO, 
Kuwait has not applied any anti-dumping or countervailing duties, nor has it applied any safeguard 
measures. 
(h) Technical barriers to trade (TBT) and sanitary and phytosanitary measures (SPS) 
75. Kuwait follows the provisions of the TBT a nd SPS Agreements of the WTO and has been 
submitting required notifications to the WTO Secretar iat.  Most of Kuwait’s standards are based on 
international standards.  Similarly, Kuwait’s SPS requirements are based on international standards, 
guidelines and recommendations. WT/TPR/G/258 Trade Policy Review 
Page 18 
  
(i) Services 
76. Kuwait accepted the General Agreement on Trad e in Services (GATS) and abides by its 
principles, rules and provisions.  Kuwait consider s progressive liberalization of services as beneficial 
for the world economy. 
77. Kuwait has made commitments, in its Sche dule of Specific Commitments on Services,  in 61 
subsectors under 8 main sectors.  The prominent sectors included in these commitments are:  Professional Services;  Computer and Related Servic es;  Research and Development Services;  Other 
Business Services;  Construction and Related E ngineering Services;  Distribution Services;  
Environmental Services;  Banking and Other Financial Services;  Health Related and Social Services;  
Tourism and Travel Related Services;  and Recreati onal, Cultural and Sporting Services.  The number 
of sectors in which Kuwait has made binding commitments in its Services schedule thus compares very favourably with the majority of developing economies. 
(3) D
EVELOPMENTS IN TRADE POLICY  
78. The trade policy of Kuwait remains rooted in  the fundamental principles of the multilateral 
trading system and the country’s resolve to keep fr ee trade at the centre of its national goals.  The 
Government attaches great importance to providing and maintaining predictability and certainty for 
business operators.  Kuwait’s trade policy has, th erefore, undergone only a few changes, mainly 
necessitated by the need to respond to the changing imperatives of globalization. 
79. Thus, since becoming an original Member of the WTO in 1995, there have been two main 
developments.  First, the GCC Customs Union entered into force from the beginning of 2003.  
Second, the Greater Arab Free-Trade-Area, of whic h Kuwait is a part, had zero rates of duty from the 
beginning of 2005. 
80. Besides, Kuwait joined the Information Tec hnology Agreement of WTO in September 2010, 
under which the rate of import duty is zero.  Incide ntally, even before joining the ITA, Kuwait was 
applying zero duties on most of the information technology products. 
81. Kuwait and other GCC Member States revised the earlier trade remedy law so that GCC now 
has a Common Anti-Dumping, Countervailing and Sa feguard Measures law which is in conformity 
with the provisions of th e relevant WTO agreements. 
82. Kuwait enacted a Law for Protecting Competition in 2007.  However, this law will be 
superseded by a common GCC law on competition wh ich is in the process of being formulated. 
(4) GROWTH AND DIVERSIFICATION OF TRADE  
83. Although small in size, Kuwait was the worl d’s 30th largest exporter and 47th largest 
importer of merchandise in 2009.  However, as with the other oil producing countries, the foreign 
trade of Kuwait is dominated by oil and is therefor e subject to the influence of developments in the 
international economy.  Thus, shifts in demand for energy as a result of a host of events and 
developments (real as well as speculative) can  produce unexpected consequences for Kuwait’s 
economy and exports.  The country is acutely aware of such external influences,  as also of the fact 
that oil is an exhaustible resource.  It therefore, constantly strives for diversification of its economic 
possibilities. The State of Kuwait WT/TPR/G/258 
 Page 19 
 
 
84. Kuwait’s total merchandise exports increased fro m KD 13.2 billion in 2005 to 19.2 billion in 
2010.  While the share of oil in these exports in 200 5 was 94.5%, it declined to  92.1% in 2010.  The 
share of oil, however, fluctuates depending on the international prices of oil. 
85. Non-oil exports of Kuwait in 2005 were KD 0. 71 billion increasing to KD 1.5 billion in 2010, 
showing an increase of about 113.3% over a period of 5 years, that is an annual increase of 22.3%. 
86. As a share of total exports, the component of  non-oil exports in Kuwait’s exports increased 
from 5.4% in 2005 to 7.9% in 2010. 
87. The main items of non-oil exports are chemi cals, basic metals, metallic and non-metallic 
manufactures, textiles, paper and wood and wood pr oducts.  Chemicals account for about 35% of non-
oil exports. 
88. Another significant fact is that, of Kuwait’s no n-oil exports, about 40.2% go to Arab countries 
and 59.8% to other countries.  The major destina tions among the Arab countries are:  Jordan, Saudi 
Arabia, UAE, Bahrain and Qatar.  Of non-Arab coun tries, the main destinations are Europe, China, 
India and Turkey which together account for about  68% of non-oil exports to non-Arab countries. 
89. Kuwait’s imports increased from KD 4.6 billion in 2005 to KD 6.4 billio n in 2010 depicting 
an increase of 39% in five years, or about 8% per annum. 
90. The major items of Kuwait’s imports are:  mi nerals and metals, non-electrical machinery, 
transport equipment, chemicals, electrical mach inery, wood and paper, clothing, and fruits and 
vegetables. 
91. The main sources of Kuwait’s imports are the European Union, the United States of America, 
the GCC (of which major supplier is Saudi Arabia), China, Japan, India and the Republic of Korea.  
Together, these countries supply about  68% of Kuwait’s total imports. 
92. The foregoing amply illustrates the growth in Ku wait’s foreign trade and its diversification in 
terms of markets and sources of imports.  It also show s the success in the diversification of its exports, 
especially substantial increase in the value of non-o il exports and an increase in the share of non-oil 
exports in total exports. 
93. The balance of Kuwait's services trade has consis tently been negative;  more imports than 
exports.  The negative balance in the past 5 years has ranged from KD 637 million in 2007 to 
KD 1,026 million in 2008.  The negative balance in 2009 (the last year for which statistics are 
available) was KD 715 million.  The major item of se rvices trade is travel with a negative balance of 
around KD 7.2 billion in 2009, followed by transpor tation and insurance.  During the 2000-2009 
period, export of services grew annually at 23% compared to 12% for imports. 
(5) FUTURE OUTLOOK  
94. Kuwait is a free and open economy and the country has consistently followed liberal trade 
policies ever since its founding as an independent stat e in 1961.  The tried and tested recipe, based on 
the principles of the multilateral trading system, cont inues to pay dividends to the mutual interests of 
Kuwait and its trading partners, and contribute to th e growth and development of the global economy.  
The country intends to continue following this po licy and would strive to even improve on it in 
accordance with the agreemen t reached under Doha Development Age nda.  In this context, it renews 
its resolve to work constructivel y alongside the other Members for conclusion of negotiations with a 
package of balanced results. WT/TPR/G/258 Trade Policy Review 
Page 20 
  
95. Kuwait believes that to facilitate the conduct of trade it is imperative to ensure transparency 
and simplicity of any regulatory framework.  In accordance with this philosophy, the country would 
continue using tariffs as the main instrument.  More over, tariffs would be kept  simple and low, within 
the framework of the Common External Tariff of the GCC Customs Union.  And the rates of bound 
tariff rates would be reduced, c onsequent upon the successful conc lusion of the Doha Development 
Agenda negotiations, in conformity with the co llectively agreed tariff-cutting formula and the 
timeframe. 
96. The policy of not applying export subsidies to  agricultural and industrial products would 
continue in future.  Similarly, the policy of non- use of prohibited Trade-Related Investment Measures 
(TRIMs) would be continued. 
97. Whereas Kuwait does not apply export duties or tax es at present, it retains its right to use 
these in future as permissible under WTO/GATT rules.  If and when Kuwait decided to apply internal 
taxes, it would do so on the basis of national treatment. 
98. Kuwait attaches great importance to the framewo rk of principles and rules for trade in 
services as laid down in the GATS.  It would wo rk with other WTO Members to advance the 
objectives of the GATS in a balanced and equita ble manner consistent with the principles of 
progressive liberalization and increasing participation of  developing countries in international trade in 
services. 
99. The protection and enforcement of intellectua l property rights is viewed by Kuwait as 
essential for development of national economies, encour aging foreign direct investment and transfer 
of technology.  In this regard, Kuwait would conti nue to play its part in promoting the objectives of 
the Trade-Related Intellectual Property Rights (TRIPs ) Agreement.  Kuwait is currently reviewing its 
laws and regulations on intellectual property to  examine the possibility of improvements where 
necessary. 
IV. REGIONAL TRADE AGREEMENTS 
(1) MULTILATERALISM AND REGIONALISM  
100. Kuwait has closely followed the debate on mu ltilateralism and regionalism.  There are 
arguments on both sides.  Kuwait recognizes that th ough the main basic principle of the WTO (the 
GATT 1994, the GATS and the TRIPS Agreements) is  non-discrimination and most-favoured-nation 
treatment, the rules allow Members to enter into regional trading arrangements.  However, regional 
trading arrangements were conceived of as exceptions  to the basic principle.  Kuwait believes in the 
primacy of the multilateral trading system.  Regiona l trading arrangements are complimentary to the 
main system;  these are not in competition with the multilateral trading system.  Moreover, regional trading arrangements whether under Article XXIV of  the GATT 1994 or under the Enabling Clause or 
under Article V of the GATS have to co mply with certain strict conditions. 
101. Kuwait has entered into some regional trading agreements, with its GCC partners and with 
neighbouring Arab countries.  The GCC in turn has concluded Free-Trade- Area (FTA) agreements 
with EFTA and with Singapore. 
102. Kuwait also feels that the process of multilate ral scrutiny of regiona l trading agreements 
needs to be improved, streamlined and made more effective.  The so -called Transparency Mechanism, 
while useful, is not a substitute for substantive impr ovement of the rules relating to regional trading 
arrangements. The State of Kuwait WT/TPR/G/258 
 Page 21 
 
 
(2) REGIONAL TRADE AGREEMENTS  
(a) Gulf Cooperation Council (GCC) 
103. The Gulf Cooperation Council (GCC) was esta blished in November 1981 when the six 
Member States (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) signed 
the Unified Economic Agreement.  That formed  the GCC Free-Trade-Area under which customs 
duties and other restrictive regulations of commerce were eliminated on all intra-GCC trade.  The GCC FTA entered into force in 1983 and continued to the end of 2002. 
104. Consequent upon decisions of GCC Summits, th e Free-Trade-Area was converted into the 
GCC Customs Union which became operational from January 2003.  The GCC Customs Union 
established a common external tariff (CET) the rates of which are 5% and 0% for practically all 
products, with a few exceptions.  The average applied MFN tariff of GCC Member States is 4.8%.  In 
the case of Kuwait, the average applied MFN rate is 4.7%.  Customs tariff had been removed on all trade among GCC countries. 
105. Non-tariff measures and other regulations of commerce have either been eliminated or 
harmonized.  The GCC Member States have many common laws.  The most important of the trade 
laws are the GCC Common Customs Law, and the GCC Common Trade Remedy Law.  Work is in 
progress on some common intellectual property laws and a common competition law.  Incidentally, a 
common GCC Patent Office has been set up in Riyadh, Saudi Arabia. 
106. Consequent upon the establishment of the GCC Customs Union, Kuwait’s MFN applied tariff 
average decreased from 7.7% in 2002 to 4.8% in 2007.  Kuwait’s imports from its GCC partners 
represent about 12% of its total global imports. 
107. The services trade has also been liberalized among GCC Member States.  Around 100 
subsectors of services are included in liberalization.   The important liberalized sectors and subsectors 
include professional services, some business services, telecom services, banking and other financial services, distribution services, health services, edu cation services, tourism services and environmental 
services.  Liberalization is a gradual and progressive process;  more services would be liberalized 
among GCC members. 
108. The GCC has established a common market fro m the beginning of 2008.  Four Member 
States of the GCC, (Kuwait, Saudi Arabia, Ba hrain and Qatar) announced in December 2009 the 
creation of a Monetary Council.  The Monetary Coun cil Board held its first meeting in March 2010. 
109. Kuwait had issued 5 Ministerial Resolutions in  2008 related to the GCC Common Market.  
These resolutions dealt with:  (1) Allowing nationa ls of GCC countries to practise professions and 
economic activities in the State of Kuwait;  (2) A llowing GCC nationals to carry on retail trade in 
Kuwait;  (3) Allowing GCC nationals to carry on w holesale trade in Kuwait;  (4) Changes in the list 
of economic activities and professions in the State of Kuwait;  and (5) Concerning the ownership of Kuwaiti shares by nationals of GCC Member States. 
(b) Greater Arab Free Trade Area (GAFTA) 
110. The Greater Arab Free-Trade Area was established in 1998.  Kuwait is a member of the 
GAFTA.  Other members are:  Bahrain, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Egypt, Iraq, Jordan, Lebanon, Libya, Morocco, Sudan, Sy ria, Tunisia, Yemen and Palestinian Authority. WT/TPR/G/258 Trade Policy Review 
Page 22 
  
111. There was a 10-year transition period for removal of tariffs on intra-GAFTA trade.  This was 
advanced by two years so that as from 2005 all tariffs on trade between GAFTA members have been eliminated. 
112. The GAFTA member states are also negotiating an agreement to liberalize trade in services. 
113. Kuwait’s imports from GAFTA members repr esent around 14% of its imports from all 
sources. 
(c) GCC-EFTA Free-Trade Area 
114. GCC and EFTA had started negotiations for a Fr ee-Trade Area (FTA) agreement in February 
2006.  The negotiations were successfully conc luded in April 2009 and the FTA Agreement was 
signed in Hamar, Norway on 22 June 2009on the occasion of the EFTA Summer Ministerial Meeting 
held in Hamar.  The FTA Agreement has, however, not yet entered into force.  The agreement is 
aimed at liberalization and expansion of GCC-EFTA trade. 
115. The GCC-EFTA FTA is a comprehensive Agreem ent, it contains chapters and articles on 
trade in goods, trade in services, competition, in tellectual property rights, government procurement 
and dispute settlement. 
116. Customs duties will be eliminated by EFTA members on non-agricultural products, including 
fish and marine products, of GCC origin as from the da te of entry into force of the Agreement.  GCC 
Member States will eliminate custom s duties on most of the non-agricultural goods of EFTA origin as 
from the date of entry into force of the Agreement.   Duties on certain products will be eliminated by 
GCC Member States after a transitional period of 5 years, while some other products are excluded 
from the scope of application of the Agreement or  excluded from tariff elimination.  Processed 
agricultural products receive concessional tariff treatment under the Agreement, while basic 
agricultural products are covered by bilateral agreements. 
117. The Agreement’s provisions on trade in services fo llow the pattern of the GATS.  All services 
sectors and all four modes of supply of services are addressed in the chapter on services.  Schedules of commitments on services are annexed to the Agreement. 
(d) GCC-Singapore Free-Trade Area 
118. The GCC Member States concluded a Free-Trade Area (FTA) Agreement with Singapore in 
2008.  The agreement was signed in Doha, Qatar on 15 December 2008.  It has, however, not yet 
entered into force.  The aim of the agreement is to liberalize and expand GCC–Singapore trade. 
119. The FTA is a comprehensive agreement.  It covers not only trade in goods and trade in 
services, but also covers government procurement, investment, rules of origin, customs procedures 
and dispute settlement.  The agreement has no provisions on intellectual property rights. 
120. Customs duties on most goods of GCC origin entering Singapore and on most goods of 
Singapore origin entering GCC will be totally eliminat ed from the date of entry into force of the FTA 
Agreement, while on some other goo ds will be eliminated after a transitional period of 5 years from 
the date of entry into force of the Agreement. 
121. Only a small fraction of the goods will not  be subject to any duty elimination. The State of Kuwait WT/TPR/G/258 
 Page 23 
 
 
122. The GCC–Singapore FTA builds on the WTO services commitments made by the GCC 
Member States and by Singapore under the GATS.  oth sides have committed to liberalize various 
services sectors beyond their WTO commitments. 
V. WTO AND DOHA DEVELOPMENT AGENDA (DDA) 
(1) KUWAIT AND THE WTO 
123. Kuwait had become a contracting party to the General Agreement on Tariffs and Trade 
(GATT) in 1963.  It participated in the Urugua y Round of Multilateral Trade Negotiations as a GATT 
contracting party.  At the end of the Uruguay Ro und, Kuwait accepted the Marrakesh Agreement, the 
Multilateral Trade Agreements, a nd submitted its Schedule of Concessions and Commitments on 
Goods and its Schedule of Specific Commitments on Services, attached respectively to GATT 1994 
and the GATS.  It thus became an original me mber of the WTO from the beginning of 1995, under 
Article XI of the Marrakesh Agreement Es tablishing the World Trade Organization. 
124. Since becoming a Member of the WTO, Kuwa it has actively participated in all WTO 
activities.  It has taken part in different Minister ial Conferences of the WTO.  Kuwait participates in 
WTO activities in collaboration with its GCC partne rs.  Kuwait is also a member, and an active 
participant, of the Arab Group and the Informal Group of Developing Countries. 
125. Kuwait has taken interest in and has been eff ectively participating in various WTO Councils 
and Committees, in particular the General Council,  the Council for Trade in Goods, the Council for 
Trade in Services, the Council for TRIPS and the Committee on Trade and Development.  It has also 
been participating in different Working Parties on accession to the WTO. 
126. Kuwait is and has been a strong supporter of the WTO.  It believes in the basic principles and 
rules of the multilateral trading system as enshrined in the rules and procedures of the WTO.  The rule 
based system of the WTO has proved its utility and stood the test of time particularly in the trying period of the recent great recession when it prevente d a wholesale slide into protectionism.  Kuwait 
also believes that the WTO’s rule based system is of particular benefit to  the smaller developing 
countries.  They need the protection of the rul es more than bigger developed countries.  Kuwait 
believes that the main role of the WTO is provi ding rules for the conduct of world trade and 
overseeing the effective implementation of these agreed rules. 
127. Kuwait is an admirer and a supporter of the di spute settlement system of the WTO although it 
has so far not been a party to any dispute either as a complainant or as a defendant.  Of course, the 
system needs some improvements.  Voices are some times raised about the relevance of the WTO in 
the current circumstances and whether the WTO woul d survive the stalemate, or the unlikely collapse 
of the Doha Round negotiations. 
128. Kuwait is of the strong view that these misg ivings are wholly misplaced.  The WTO has 
proved its utility;  it is there to stay and no better substitute is available.  Kuwait would work with 
other Members to support and strengthen the WTO. 
(2) K
UWAIT 'S PARTICIPATION IN DOHA DEVELOPMENT AGENDA NEGOTIATIONS  
129. The Doha Development Agenda was launched in a GCC Member State – Qatar, in November 
2001 with great fanfare and with an even greater  promise.  Kuwait participated in the Doha 
Ministerial Conference which adopted th e Doha Ministerial Declaration.  WT/TPR/G/258 Trade Policy Review 
Page 24 
  
130. Kuwait has been participating in DDA negotiatio ns right from the beginning, working in 
collaboration and close cooperation with its GCC part ners and with other developing countries.  The 
objective of Kuwait in these negotiations has been  improved and predictable market access for 
agriculture, for industrial products and for services for all countries and especially for developing and 
least developed countries.  An equally important  objective of Kuwait was improvement and updating 
of trade rules and further streamlining of the dispute settlement system and its procedures. 
131. Looking back, Kuwait thinks that perhaps the difficulty with the DDA negotiations emanates 
from the fact that the negotiating agenda was overloa ded.  There were too many subjects and a lot of 
time was consumed in dealing with these and some of  the subjects had to be dropped after five or six 
years.  That is a lesson that should not be forgotten. 
132. Kuwait believes that it is important to successfu lly conclude the Doha Round with a balanced 
package of results.  Kuwait also  believes that all WTO Members should show flexibility and should 
be prepared to make essential compromises with a view to fulfilling the key objectives of the 
negotiations.  Kuwait will continue working with other WTO Members to this end.  The State of Kuwait WT/TPR/G/258 
 Page 25 
 
 
ANNEX 
TECHNICAL ASSISTANCE  NEEDS OF KUWAIT 
Developing countries need technical assistance from the WTO Secretariat and from all other sources 
for their active and effective participation in WTO activities.  Kuwait is no exception.  Having a 
relatively smaller trade policy establishment, Kuwait is always in need of, and welcomes, technical 
assistance. 
The main technical assistance n eeds of Kuwait are as follows: 
 Advice on the compatibility of Kuwait’s trade rela ted laws and regulations with the relevant 
WTO agreements. 
 Assistance for amending, if necessary, any existing laws and drafting new laws as 
appropriate. 
 Assistance in meeting various notification obligations. 
 Enhanced training facilities for Kuwaiti officials at the trade policy courses organized by the 
WTO. 
 Organization by WTO of national seminars a nd workshops in Kuwait, both general and 
subject-specific.  The subjects of prime inter est to Kuwait would be discussed with concerned 
WTO officials. 
 Special seminars and workshops on WTO i ssues for the business community, for academics 
and for media people. 
 Periodic briefing of senior Kuwaiti officials and members of Kuwait’s Parliament on 
important trade policy issues. 
 Analysis of the current state of work on di fferent subjects in Doha Development Agenda 
negotiations. 
 Analysis of the Modalities Papers on Agricu lture and NAMA and their implications for 
Kuwait. 
__________