. /.WORLD TRADE
ORGANIZATIONG/SCM/Q3/DOM/9
29 September 2003
(03-5103)
Committee on Subsidies
and Countervailing MeasuresOriginal:  Spanish
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement on
Subsidies and Countervailing Measures
Replies to Follow-Up Questions1
The following communication, dated 22 September 2003, has been received from the
Permanent Mission of the Dominican Republic.
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I hereby submit the reply to the question posed by the European Union in document
G/SCM/Q3/DOM/8, regarding the notifications from the Dominican Republic contained in documents
G/SCM/N95/DOM and G/SCM/N/99/DOM.
                                                     
1 G/SCM/Q3/DOM/8.G/SCM/Q3/DOM/9
Page 2
Question
In reply to one of the EC´s question s (contained in G/SCM/Q3/DOM/5, dated
25 April 2002) the Dominican Republic reported that in regard to the phasing out of the
programmes it had contracted various advisory services and requested expert technicalassistance to examine the various options for modi fying or eliminating any form of subsidy that
might be inconsistent with the ASCM.  The present notification mentions that the free zone
licences are valid between 15 and 20 years and permit holders may apply for renewal.  Can the
Dominican Republic please indicate the progress of the consultation process and how it intends
to phase out the programmes?
Reply
The consultancy firm contracted by the Dominican Republic to determine the various options
for modifying or eliminating any form of subsidy that might be inconsistent with the Agreement on
Subsidies and Countervailing Measures (ASCM) is currently conducting the relevant study, which
will be completed by November 2003.
At present, we are therefore unable to state what mechanisms will be implemented to modify
the programmes that are inconsistent with the ASCM.
As regards the validity period of the free zone licences, we note that although Law 8-90
provides for 15 and 20 years of validity, this does not mean that companies will continue receiving the
incentives that are in place at the time of obtaining the free zone licence;  indeed, they are obliged to
accept the changes made to the mechanisms and incentive programmes.
Licences that are currently being issued co ntain the following clause:  "As of 2009, the
Dominican Republic will reserve the right to review and/or withdraw some of the incentives
contained in Law 8-90, pursuant to the Ministerial Decision on Implementation-Related Issues and
Concerns adopted at the Fourth WTO Ministerial Conference held in Doha, Qatar, from
9 to 14 November 2001, where it relates to the extension provided for in Article 27.4 of the World
Trade Organization (WTO) Agreement on Subsidies".
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