WORLD TRADE  
ORGANIZATION  G/SCM/Q3/JOR/15 
G/SCM/Q4/JOR/7 15 December 2006 
 
(06-6010) 
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 
 
Replies to Questions Posed by the UNITED STATES
1 
 
  The following communication, dated 14 December 2006, is being circulated at the request of 
the Delegation of Jordan.  
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   The following are responses to questi ons posed to JORDAN by UNITED STATES in 
response to JORDAN paper G/SCM/W/537/Add.2 in  which Jordan co-sponsored PANAMA in its 
proposal G/SCM/W/537, dated 23 June 2006. 
 
 
G/SCM/N/146/JOR 
Partial or Total Exemption From Income Tax For Profits On Certain Exports
 
1. Please describe what efforts Jordan has ma de to phase out the programme within the 
extension period that has already been gr anted, as provided under the "Procedures for 
Extension Under Article 27.4 for C ertain Developing Country Members."2 
JORDAN is at all times committed that its programme must be compatible with the 
WTO obligations, exporters are informed that the extension decision is decided on a yearly 
basis. Jordan will phase out this programme at the end of the extension period to be 
considered by the Committee. 
2. Please describe changes to the programme since 2001.  Also, please provide any updated 
or revised implementing legislation, and an y relevant amendments, under these programme and 
any accompanying regulations and decrees. 
 No changes have been introduced to  the programme since the year 2001. 
                                                      
1 G/SCM/Q3/JOR/14-G/SCM/Q4/JOR/6. 
2 G/SCM/39. G/SCM/Q3/JOR/15 
G/SCM/Q4/JOR/7 Page 2 
 
 
  3. How many beneficiaries of the programme  were there in 2001?  How many beneficiaries 
are there currently under this programme?  What  types of industries currently benefit under 
the programme? 
The programme is not specified to particul ar beneficiaries, thus all exporters are 
entitled to benefit from the programme, however exports that are not entitled to the 
exemption are mentioned therein, 
- Potash Exports, 
- Phosphate exports and, - Exports subject to Protocol Trade.  
4. Did Jordan undertake any commitments to provi de export subsidies to new beneficiaries 
beyond the year 2009? If so, please indicate the number of such beneficiaries by the year in which those commitments extend.
 
 The intention of Jordan is to continue bene fiting from the extension until the end of the period 
to be considered by the committee; the programme is  opened to all exporters that meet the criteria for 
qualifying for the exemption and beneficiaries are info rmed that extension is granted on yearly basis. 
5. Please explain whether benefits are contin gent upon the use of domestic over imported 
goods.  
 The criteria that must be met to qualify for benefits and which are stated in the notification are 
known and the benefits are not contingent use of  domestic over imported goods, the benefits of the 
programme are for all exporters, however exports th at are not entitled to the exemption are mentioned 
therein, 
- Potash Exports, 
- Phosphate exports and, - Exports subject to Protocol Trade. 
G/SCM/Q4/JOR/5 
1. Are there more specific economi c, financial and development statistics to which Jordan 
can point that demonstrate that the programme in question has had a positive impact and will 
continue to do so into the future? 
 The programme had a positive effects on reduc ing the losses of the exporters, 98% of the 
Jordanian exporting industrial companies are mostly of small and medium size and suffer from the lack of market access caused by their small size and limited capacity, the programme had supported the capabilities of these exporting companies to ad just to the continuous negative economic and 
political situations in the region. Moreover, the programme has represented an incentive to help the 
exporting enterprises to overcome the economic disadva ntages caused by the difficulties raised by the 
regional situation.  G/SCM/Q3/JOR/15 
 G/SCM/Q4/JOR/7 
 Page 3 
 
 
  2. Jordan states that the Partial or Total Exemption from Income Tax for Profits on 
Certain Exports has been in place in since 1995.  If an extension is granted, what steps will 
Jordan take to ensure that the benefits under this programme will not exceed the suggest 2018 
extension request?  
It has been among the government's prioriti es to secure economic openness and effective 
integration with the global economy. One of its stra tegies to implement these intentions is to support 
the SMEs (92% of Jordan industry sector) through this  programme which is part of its strategy and 
which has been implemented along with its prudent  economic policies, by the end of the granted 
extension period Jordan's economy will hopefully be ab le to sustain a higher growth rate, accordingly 
the benefits will not exceed the suggest 2018 extension. 
3. If an additional extension is granted, would new applicants be accepted or would the 
extension period be used to phase out the subsidies for the existing beneficiaries? 
 The programme is opened to all exporters that meet the criteria of qualifying for the 
exemption. 
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