RESTRICTED
WORLD TRADE G/SCM/Q2/UGA/1
21March 1997
ORGANIZATION(97-1175)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from theEUROPEAN COMMUNITY Regarding theNew
andFullNotification ofUGANDA1
Thefollowing communication, dated 12March 1997, hasbeenreceived fromthePermanent
Delegation oftheEuropean Community.
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Uganda submitted on16August 1996totheWTO thatitmaintained nosubsidies which require
notification pursuant toArticle XVI:1 GATT 1994andArticle 25oftheWTO Subsidies Agreement.
Inthisrespect, theEuropean Community hasobtained information ondifferent subsidy schemes
which were notnotified totheWTO although theirnotification appears toberequired pursuant to
Article 25.2oftheSubsidies Agreement.
SUBSIDY PROGRAMMES NOT NOTIFIED TOTHE WTO
Aforeign investor making acapital investment inqualifying fixed assets ofmore than
US$500,000, iseligible forthefollowing incentives:
(a) Duty drawback oninputs usedintheproduction ofexports.
(b) Exemption from corporate tax.
(c) Exemption from withholding tax.
(d) Exemption from taxondividends forperiods ofthree tosixyears depending onthe
amount ofinvestment andwhether thecompany islocated inapriority area.
QUESTIONS FROM THE COMMUNITY
TheCommunity would likethefollowing clarifications regarding these schemes:
- Could Uganda explain whythese programmes were notnotified totheWTO?
1G/SCM/N/3/UGA.
./.G/SCM/Q2/UGA/1
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- Could Uganda supply anotification under Article 25,using thestandard format?
- Could Uganda clarify whatthecriteria foreligibility are?
- With respect tothedutydrawback programme, could Uganda provide thetimetable
ofhowthese subsidies willbephased out?