. /.   WORLD TRADE  
ORGANIZATION  G/SCM/Q4/BRB/1 
29 August 2006 
 
 (06-4108) 
Committee on Subsidies and 
Countervailing Measures Original:   Spanish 
 
 
 
PROCEDURES FOR EXTENSIONS UNDER  ARTICLE 27.4  
OF THE AGREEMENT ON SUBSIDIES AND 
COUNTERVAILING MEASURES 
 
Questions Posed by COLOMBIA  
  
 The following communication, dated 23 August 2006 , is being circulated at the request of the 
delegation of Colombia. 
 
_______________ 
  
BARBADOS  
 
• Fiscal Incentive Programme 
 
• Export Allowance 
 
• Research and Development Allowance 
 
• International Business Incentives 
 
• Societies With Restricted Liability 
 
1. In the case of each of the programmes, ple ase provide the most up-to-date information 
available regarding the number of beneficiary en terprises classified according to industrial sector. 
2. Please explain why, under the above progra mmes, which have been in place for over 
ten years, it is still not possible to dismantle the prohibited subsidies. 
3. The basis for the extension request is that Barbados is a small, vulnerable economy which 
suffers from the combined effect of diseconomies of scale caused by the small size of its economy and 
administration and by its physical isolation.  If the above distorting factors are not brought under control before 2018, would there be a request for a new extension for the phasing out of the prohibited 
subsidies?  Please explain why these characteristics  of Barbados' economy prevent the country from 
complying fully and satisfactorily with WTO export subsidy disciplines.  
4. Please explain why the situation giving rise to the request for extension requires the granting 
of prohibited subsidies until the year 2018, rather than an earlier date. 
5. What measures has Barbados taken to phase out  the programmes covered by the extension 
request? G/SCM/Q4/BRB/1 
Page 2  
 
  6. Are only legal persons with national capital e ligible for the Fiscal Incentive Programme, the 
International Business Incentives and the tax con cessions for societies with restricted liability? 
7. In order for a company to be registered or inco rporated in Barbados and for it to benefit from 
the Fiscal Incentive Programme, must it be set up sole ly by national partners?  If this is not the case, 
then to what extent may a foreigner participate in percentage terms?  How many of the companies 
currently enjoying the tax concessions  have foreign participation? 
8. The International Business Incentives programme pr ovides for a guarantee period of 15 years, 
during which licensed entities will be guaranteed the tax concession.  In the event that the programme 
is not granted an extension, what measures will Ba rbados take to dismantle  the programme and how 
will it harmonize the periods of validity of the guarantees offered to the enterprises in question? 
9. What is the difference between the "Interna tional Business Incentives" programme and the 
"Societies With Restricted Liability"  programme?  Should extension not be authorized, and in view of 
the fact that a society with restricted liability h as a maximum life of 50 years and that a guarantee 
period of 30 years is provided for the granting of th e tax benefits, what measures will Barbados take 
to dismantle the benefits and how will it harmonize the periods of validity of the guarantees offered to 
the enterprises in question? 
10. How does Barbados justify extension of the So cieties With Restricted Liability programme 
given that, according to the information provi ded by Barbados (documents G/SCM/N/71/BRB, 
G/SCM/N/74/BRB and G/SCM/N/114/BRB), only one firm currently benefits under the programme?  
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