RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/YEM/29 
27 November 2009 
 
 (09-5981) 
Working Party on the 
Accession of Yemen Original:   English 
 
 
 
ACCESSION OF YEMEN 
Notification Pursuant to Article XVI.1 of the GATT 1994  
 and Article 25.2 of the Agreement on S ubsidies and Countervailing Measures (ASCM)  
 
 The following submission, dated 16 November 2009,  is being circulated at the request of the 
Delegation of the Republic of Yemen. 
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 WT/ACC/YEM/29 
Page 2  
 
  The Republic of Yemen's Notification of a Specific Subsidy
 
 The following is the Republic of Yemen's notification of a specific subsidy, pursuant to 
Article XVI.1 of the GATT 1994 and Article 25.2 of the ASCM. 
 The Republic of Yemen claims an exemption from the provisions of Article XVI.I GATT 
1994 and Article 3.1(a) ASCM for this notified s ubsidy under Article 27.2(a) ASCM as a Least 
Developed Country designated by the United Nations. 
1. Title of the subsidy programme  
The Republic of Yemen makes certain investment  incentives available to Yemeni and foreign 
entities on a non-discriminatory basis.  These are contained in its Investment Law No. 22 (2002).  Article 26 of this Law details  specific investment incentives available to 
projects exporting all or parts of their production abroad. 
2. Period covered by the notification
 
 From 2002, date of issuing the Law, to the present.  3. Policy objective of the notified subsidy
 
The policy objective of the subsidy in question is to encourage investment activities in order 
to contribute to the country's development, generate employment and diversify the economy. 
4. Background and authority for the notified subsidy  
 Investment Law No. 22 (2002). 5. Form of the notified subsidy
  
Tax/duty concessions falling within the scope of Article 1(ii) ASCM and the scope of 
Article XVI.(i) GATT and Article 3.(1)(a) ASCM. 
6. How the notified subsidy is provided and to whom  
 The notified subsidy is provided by action of the Investment Law No. 22 (2002).  
Article 20 of the Law provides general incentives to "projects" which are registered under its 
provisions with the General Investment Authority.   "Projects" are defined as "every activity, 
whatever its legal status, included in the areas of investment referred to in Article 1".  
Article 1 applies the Investment Law and its pr ovisions to all sectors with the exception of the 
following activities:  
 - Exploration and extraction of oil, gas and minerals; 
 - Armaments industries and explosive materials industries;  - Industries harmful to the environment and health;  - Banks and bureaus of exchange; finance; and 
 - Wholesale and retail trades. 
Under Article 26 of the Law any existing "project " that exports all or part of its production 
abroad is entitled to exemptions:  WT/ACC/YEM/29 
 Page 3 
 
 
   - From all fees or taxes levied on exports;  
 - From production and consumption excise or any other taxes levied on goods and 
services exported abroad; and 
 - From tax payable on profits earned from export revenues (after termination of the 
exemption period anyway accorded to the project under Article 20) provided that the 
profit is transferred in foreign currency to the Republic of Yemen through an 
authorized bank.  
 
Article 26 also provides that a "project" may r ecover all customs fees and duties of whatever 
kind paid on imported inputs included in  that portion of production exported. 
7. Subsidy per unit or the total amount or th e annual amount budgeted for the notified subsidy   
 This information is not available. 8. Duration of the notified subsidy
 
 This subsidy comes into operation when the "project" begins and is open-ended. 
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