. /.   WORLD TRADE  
ORGANIZATION  G/SCM/Q2/BRB/4 
27 April 2010 
 (10-2216) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Replies to Questions Posed by the UNITED STATES1 Regarding the  
New and Full Subsidies Notification of BARBADOS2 
 
  The following communication, dated 26 April 2010,  is being circulated at the request of the 
Delegation of Barbados.    
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Export Allowance 
 
• The United States welcomes the fact that Ba rbados has taken steps to inform current 
beneficiaries of the Export Allowance scheme that the above-referenced measure must 
be eliminated by 31 December 2015.  Please expl ain what internal steps need to be taken 
in order for Barbados to develop a new polic y which is WTO-consistent.  Does Barbados 
have an estimated time frame of when the new policy will be implemented?   
 
Reply
 
 
 The Government of Barbados continues to be seized of this matter and is exploring various 
options of providing assistance to the beneficiari es that would be compliant with Barbados' WTO 
obligations.  It must be stressed, however, th at given the constraints of a small economy like 
Barbados, the challenge to Government  is great.  Consultations with the beneficiaries are continuing.   
 
 Barbados, however, hopes to be able to discharge  its obligation within the allotted time frame.  
 
International Business Incentives / So cieties with Restricted Liabilities 
 
• Can Barbados provide an update on the ongoing consultations with the Ministry of 
International Business and International Tr ansport?  Has Barbados informed the 
beneficiaries of these programmes that the measures must be eliminated by 31 
December 2015?  If not, please explain when Barbados is planning on doing so?   
 
Reply  
 
 Consultations with the International Business Division are ongoing;  but it must be recognised 
that these consultations take place against a backdrop  of challenges being faced in the international 
business environment.   
                                                      
1 G/SCM/Q2/BRB/3.   
2 G/SCM/N/186/BRB-G/SCM/N/192/BRB.   G/SCM/Q2/BRB/4 
Page 2  
 
   As was stated above, the Government continues to consult with the be neficiaries on Barbados' 
WTO obligations in this area.   
 
Research and Development Allowance  
• Has Barbados informed the beneficiaries of this program that the measure must be 
eliminated by 31 December 2015?  If not, can Barbados provide an update on the process it is undertaking to inform all ma nufacturers who have benefitted from this 
programme that the programme is ending?   
 
Reply
 
 
 The Government has informed all beneficiaries of Barbados' WTO obligations in this area.   
 
Fiscal Incentive Programme 
 
• The United States welcomes the fact that Ba rbados has taken steps to inform current 
beneficiaries of the Fiscal Incentives Act that the measure must be eliminated by 31 December 2015.  Could Barbados please al so explain the necessary internal legal 
steps that it must take in order to remove all of the provisions linking the granting of 
benefits under the Act to exports or potential exports?   
 
Reply
 
 
 The relevant legislation will have to be amended.  Before this can happen, however, 
Government has to ensure that there would not be any legal challenges by beneficiaries, which could 
result in damages assessed against it.   The need to replace the existing regime by an effective one is a 
major challenge to the Government, especially si nce Barbados has to compete with both developed 
and developing countries for foreign direct investment.   
  
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