. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q3/VCT/2
10 April 2002
(02-1915)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Questions Posed by the EUROPEAN COMMUNITIES Regarding the
Notification of ST. VINCENT AND THE GRENADINES1
The following communication, dated 4 April 2002, has been received from the Permanent
Delegation of the European Commission.
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The European Communities pose the following questions without prejudice to the final
position on the request and reserve the right to ask further questions in the course of the consultations.
Q.1 Please indicate when the programmes came into operation.Q.2 Please indicate whether the programmes provides for other forms of subsidies than exemption
of import duties and internal taxes (e.g. grants, provision of goods or services).
Q.3 The notification refers to "concessionary credits funded or guaranteed by the Caribbean
Development Bank".  Does St. Vincent and the Grenadines consider this programme to be
covered by the requirements laid down in G/SCM/39, in particular that only programmes
involving import duty and internal tax exemptions are covered?  Please elaborate.
Q.4 Do the programmes provide for a condition to use domestic goods?  If yes, please describe the
relevant provision.
Q.5 The programme "Fiscal Incentives Act No. 5 of 1982" appears to contain a condition for
"local value addition".  Does this constitute a requirement to use domestic over importedgoods?  Please explain.
Q.6 Please indicate the rate of import duty or internal tax exemption as of 1 September 2001.Q.7  Please describe changes to the programmes since 1 September 2001, if any. In particular,
indicate any changes to the rate of exemption or the coverage of the programmes e.g. in terms
of products, location etc.
Q.8 Please indicate for each programme how many companies have benefited from the
programmes as of 1 September 2001.
                                                     
1 G/SCM/N/74/VCT, G/SCM/N/71/VCT.G/SCM/Q3/VCT/2
Page 2
Q.9 Please elaborate on when and how St. Vincent and the Grenadines intends to phase out the
programmes.
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