. /.   WORLD TRADE  
ORGANIZATION  G/SCM/N/163/VCT 
16 November 2007 
 (07-4993) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
 
Continuation of Extension under SCM Article 27.4 of the Transition Period for the Elimination  
of Export Subsidies Pursuant to the Procedures Contained in the  
General Council Decision in Document WT/L/691  
 
Request under paragraph 1(a) of WT/L/691  
 
 
SAINT VINCENT AND THE GRENADINES 
  
 The following communication, dated 13 November 2007, is being circulated at the request of 
the Delegation of Saint Vincent and the Grenadines.   
 
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  In accordance with Article 27.4 of th e Agreement on Subsidies and Countervailing 
Measures (SCM Agreement) and as agreed to by the Mi nisters at the Fourth Ministerial Conference in 
Doha (WT/MIN(01)/17), the Government of Saint Vi ncent and the Grenadines request an extension 
of the period which it may continue to apply export subsidies.     Saint Vincent and the Grenadines's financial, economic and development strategy is linked to 
a number of incentive schemes, which are current ly in place.  These are listed below without 
prejudice to either their legal status under the GATT 1994 and the SCM Agreement, the effects under 
the Agreement, or the measure itself:    
• Incentives are administered by the Minister of Telecommunications, Science, Technology and 
Industry;  applications for incentives benefits are submitted to the Ministry and then to the 
Cabinet of the Government of Saint Vincen t and the Grenadines.  Available incentives 
include tax holidays, import duty exemptions, repatriation of profits, and withholding tax 
exemptions.   
 
• The main legal basis for Saint Vincent and the Gr enadines's tax for investors is codified in the 
Fiscal Incentives Act, Cap 336 of the Laws of  Saint Vincent and the Grenadines, which 
allows for the granting of a tax holiday for th e manufacture of approve d products by approved 
enterprises, as follows, (i) up to 15 years for Group 1 Enterprises, (ii) up to 12 years for 
Group II Enterprises, up to 10 years for Group III Enterprises, and up to 15 for Enclave Enterprises, in which production is exclusively for export or capital-intensive enterprises, in 
which there is an investment of not less than US10 Million.  The Act also grants import duty exemptions for the importation of plant, machiner y, equipment, spare parts, building materials 
raw materials or components, as appropriate, to be used in eligible enterprises.   G/SCM/N/163/VCT 
Page 2  
 
  • A number of incentives are also granted at a sector level.  The Hotel Aid Act, Cap 340 of the 
Revised Laws (1990) of St Vincent and the Gr enadines, allows for the granting of a tax 
holiday of up to twenty years for the approved hotel and resort development Companies registered under the International Companies Act are exempt from the payment of income 
taxes for a period of twenty years from th e date of commencement of business.   
 
• Saint Vincent and the Grenadines has legislati on with respect to the operation of an export 
free zone.  Under the Export Free Zones ACT, No. 15 of 1999 of the Laws of Saint Vincent and the Grenadines companies are granted license s to operate within the EFZ.  However the 
Act was never proclaimed or implemented.   
 
• The Eastern Caribbean Central Bank (ECCB) offers Saint Vincent and the Grenadines 
exporters insurance coverage against risks involved in exporting on commercial terms, under 
the Export Credit Guarantee Scheme.  This ECCB facility covers up to 80 per cent of political 
and commercial risks.  The scope of this schem e has been limited by the relative size of the 
manufacturing sector in Saint Vincent and the Grenadines.   
  
 
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