WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/BRB 
G/SCM/N/226/BRB 18 October 2011 
 
(11-5161) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on S ubsidies and Countervailing Measures 
 
Continuation of Extension under SCM Artic le 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 
 
BARBADOS 
   The following communication, dated 16 October 2011, is being circulated at the request of the Delegation of Barbados.  
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  This notification is made taking into account th e provisions of Article 27.4 and Article 25.7 of 
the Agreement on Subsidies and Countervailing Measures. 
 
1. Title of Subsidy 
  Societies with Restricted Liability.    2. Period covered by Notification  
  For period 2009-2010.    3. Policy and Objective and/or purpose of subsidy  
 
 There has been no change in the standstill arrangements.   
 4. Background and authority of subsidy 
  There has been no change in the standstill arrangements.   
 
5. Form of Subsidy (i.e grant, loan, tax concessions) 
 
 There has been no change in the standstill arrangements.   G/SCM/N/220/BRB 
G/SCM/N/226/BRB Page 2 
 
 
  6. To whom and how is the subsidy provided 
 
 There has been no change in the standstill arrangements.    
7. Subsidy per unit, or in cases where it is not  possible, total amount or the annual amount 
budgeted for that subsidy 
 
 The subsidy for the 2009-2010 period for this programme amounted to BDS$11,801,538.    
8. Duration of subsidy and/or any time limits attached to it 
 
 There has been no change in the standstill arrangements.    9. Statistical Data permitting an assessme nt of the trade effects of a subsidy 
 
 Three (3) companies benefitted from this  programme for the 2009-2010 periods.   
   This notification is made taking into account th e provisions of Article 27.4 and Article 25.7 of 
the Agreement on Subsidies and Countervailing Measures. 
 
1. Title of Subsidy 
  Fiscal Incentive Programme.    
2. Period covered by Notification  
 
 For period 1 April 2009-31 March 2010.    3. Policy and Objective and/or purpose of subsidy  
 
 There has been no change in the Stand Still arrangements. 
 4. Background and authority of subsidy 
 
There has been no change in the Stand Still arrangements.   
 
5. Form of Subsidy (i.e grant, loan, tax concessions) 
 
 There has been no change in the Stand Still arrangements.  6. To whom and how is the subsidy provided 
  There has been no change in the Stand Still arrangements.  7. Subsidy per unit, or in cases where it is not  possible, total amount or the annual amount 
budgeted for that subsidy 
 
 The subsidy for the 2009-2010 period for this  programme totalled BDS$13,815,433.42.    G/SCM/N/220/BRB 
 G/SCM/N/226/BRB 
 Page 3 
 
 
  8. Duration of subsidy and/or any time limits attached to it 
 
 There has been no change in the Stand Still arrangements.    
9. Statistical Data permitting an assessme nt of the trade effects of a subsidy 
 
 Six (6) companies benefitted from this  programme for the 2009-2010 period. 
  
 This notification is made taking into account th e provisions of Article 27.4 and Article 25.7 of 
the Agreement on Subsidies and Countervailing Measures.  1. Title of Subsidy 
 
 International Business Companies.   
 2. Period covered by Notification  
  For period 2009-2010.    
3. Policy and Objective and/or purpose of subsidy  
 
 There has been no change in the standstill arrangements.    4. Background and authority of subsidy 
  There has been no change in the standstill arrangements.    5. Form of Subsidy (i.e grant, loan, tax concessions) 
 
 There has been no change in the standstill arrangements.   
 
6. To whom and how is the subsidy provided 
  There has been no change in the standstill arrangements.    
7. Subsidy per unit, or in cases where it is not  possible, total amount or the annual amount 
budgeted for that subsidy 
 
 The subsidy for the 2009-2010 period for this programme amounted to BDS$3,477,953. 
 8. Duration of subsidy and/or any time limits attached to it 
 
 There has been no change in the standstill arrangements.    9. Statistical Data permitting an assessme nt of the trade effects of a subsidy 
 
 Five (5) companies benefitted from this  programme for the 2009-2010 period.   
 G/SCM/N/220/BRB 
G/SCM/N/226/BRB Page 4 
 
 
  This notification is made taking into account the provisions of Article 27.4 and Article 25.7 of 
the Agreement on Subsidies and Countervailing Measures.  1. Title of Subsidy 
  Export Allowance.    2. Period covered by Notification  
 
 For period 2009-2010.   
 3. Policy and Objective and/or purpose of subsidy  
  There has been no change in the standstill arrangements.   
 
4. Background and authority of subsidy 
  There has been no change in the standstill arrangements.    5. Form of Subsidy (i.e grant, loan, tax concessions) 
 
 There has been no change in the standstill arrangements.    6. To whom and how is the subsidy provided 
 
 There has been no change in the standstill arrangements.   
 7. Subsidy per unit, or in cases where it is not  possible, total amount or the annual amount 
budgeted for that subsidy 
 
 The subsidy for the 2009-2010 period for this programme amounted to BDS $732,930.43.   
 
8. Duration of subsidy and/or any time limits attached to it 
 
 There has been no change in the standstill arrangements.    
9. Statistical Data permitting an assessme nt of the trade effects of a subsidy 
 
 Fourteen (14) companies benefitted from this programme for the 2009-2010 period.   
   This notification is made taking into account th e provisions of Article 27.4 and Article 25.7 of 
the Agreement on Subsidies and Countervailing Measures. 
 1. Title of Subsidy 
  Research and Development Allowance.   
 
2. Period covered by Notification  
  For period 2009-2010.     G/SCM/N/220/BRB 
 G/SCM/N/226/BRB 
 Page 5 
 
 
  3. Policy and Objective and/or purpose of subsidy  
 
 There has been no change in the standstill arrangements.    
4. Background and authority of subsidy 
 
 There has been no change in the standstill arrangements.    5. Form of Subsidy (i.e grant, loan, tax concessions) 
 
 There has been no change in the standstill arrangements.   6. To whom and how is the subsidy provided 
  There has been no change in the standstill arrangements.   
 
7. Subsidy per unit, or in cases where it is not  possible, total amount or the annual amount 
budgeted for that subsidy 
 
 The subsidy for the 2009-2010 period for this programme amounted to BDS$955,752.35.    
8. Duration of subsidy and/or any time limits attached to it 
 
 There has been no change in the standstill arrangements.    9. Statistical Data permitting an assessme nt of the trade effects of a subsidy 
 
 Five (5) companies benefitted from this  programme for the 2009-2010 period.  
 G/SCM/N/220/BRB 
G/SCM/N/226/BRB Page 6 
 
 
  Action Plan for Barbados' Subsidy Programmes 
Financial Period 
2009-2010 
  The General Council's Decision of July 2007 has granted developing countries which utilize 
prohibited subsidies under Article 3 of the Agre ement on Subsidies and Countervailing Measures an 
extension to utilize these programmes until December 2015.     Continued utilization of these programmes are s ubject to annual notifications, indicating that 
there has been no change in the standstill arra ngements, as well as implementation of a series of 
measures to bring the programmes to an end in 2015.    Barbados submitted its five Subsidy Programmes to the World Trade Organisation for the 
period 2009 to 2010 on 15 August 2011.   
 
 The 5 programmes listed as prohibited subsidies and for which a further extension is being 
sought, are as follows:   The Fiscal Incentive Programme;  The Societies with Restricted Liability; 
 The International Business Companies; 
 The Research and Development Allowance;  The Export Allowance Programme.   In Barbados' Action Plan of 2008 to 2009, Barbados indicated the action which was taken 
during that period and the action which had to be  taken, to bring these five programmes into 
conformity with WTO rules.     The actions taken during that period and pend ing for all five programmes consist of the 
following:  Fiscal Incentive Programme 
 Action to be Taken 
 
 The action to be taken will focus on the remova l of the export component under this Act.  In 
this regard, all references to en clave enterprises will be deleted. 
 
Action Already Taken 
 
 The Government of Barbados has completed its consultations in relation to notifying all 
beneficiaries under the Act of the General Council decision of 17 July 2007. 
 
Research and Development Allowance 
 Action to be Taken 
  The action to be taken involves the removal of the export component under the Income Tax 
Act.  Section 12D (1) of the Income Tax Act s hould be amended to remove any reference to the 
export requirement as outlined in Part 1 of the S econd Schedule to the Act.  Section 12 D (2) of the 
Income Tax Act will also be deleted.   G/SCM/N/220/BRB 
 G/SCM/N/226/BRB 
 Page 7 
 
 
  Action Already Taken 
 
 The Government of Barbados has completed its consultations in relation to notifying all 
beneficiaries under the Act of the General Council decision of 17 July 2007. 
 
Export Allowance  
 
Action to be Taken 
  In an effort to bring this allowance in lin e with WTO rules, Barbados proposes to remove 
Section 14A (2) (b) and (c) so that reference to the export of a service only would remain.  Section 14A 1 (1) which makes provision for an encl ave enterprise to be entitled to an allowance 
calculated in accordance with section 14A in the manner specified in the First Schedule will also be 
deleted. 
 
Action Already Taken 
 
 The Government of Barbados has completed its consultations in relation to notifying all 
beneficiaries under the Act of the General Council decision of 17 July 2007.  International Business Companies 
 Action to be Taken 
 
 Barbados has located the WTO inconsistent provisions in the International Business 
Company's Act.  The action to be taken involves the removal of all references to international 
manufacturing since this phrase speaks to the busines s of making, processing exclusively for export.  
 
Action Already Taken 
 
 Barbados has completed its c onsultations in relation to notifying all beneficiaries under the 
Act of the General Council decision of 17 July 2007. 
 
Societies with Restricted Liabilities 
 
Action to be Taken 
 
 Barbados has located the WTO in consistent provisions in the Society with Restricted Liability 
Act.  The action to be taken involves the remova l of those provisions which speak firstly to the 
inability of the Society to acquire or hold land in  Barbados other than land required for its business 
and secondly, that the Society may not transact bus iness with any person resident in Barbados.  
 Action Already Taken 
 
 Barbados has completed its c onsultations in relation to notifying all beneficiaries under the 
Act of the General Council decision of 17 July 2007.  Status of Proceedings  
  Barbados has notified all beneficiaries under th e five programmes that they will be coming to 
an end by 31 December 2015.    G/SCM/N/220/BRB 
G/SCM/N/226/BRB Page 8 
 
 
   Notwithstanding the fact that a policy pape r was in the process of being drafted, the 
Government was advised of the necessity to first develop a position paper which would highlight the 
most appropriate options on whic h stakeholders could agree.   
 
 This position paper is currently being circulated among stakeholders for their comments.  It is 
hoped that this process can be completed as quickly and as effectively as possible.     It is critical that responses on the position paper are received from all stakeholders who will be affected.  Those responses from both the private sector and the Government will facilitate the 
completion of the policy paper and permit a sm ooth transition into the new programmes.   
  Time may be required in order for consensus to be reached among the Government and the 
private sector on the most appropriate amendments.  Once there is consensus the policy paper will be 
developed and forwarded to Cabinet.  
 
 
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