RESTRICTED
WORLD TRADE G/SCM/Q2/CMR/3
3April 1997
ORGANIZATION(97-1344)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from theUNITED STATES Regarding theNew
andFullNotification ofCAMEROON1
Thefollowing communication, dated 25March 1997, hasbeenreceived fromthePermanent
Mission oftheUnited States.
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1. Cameroon hasnotified anumber ofelements ofitsIndustrial FreeZone (ZFI) programme.
WillCameroon notify further information regarding these elements inthenearfuture, inaccordance
withthenotification guidelines (e.g., duration, policy objectives, andamounts ofsubsidies) in
Article 25.3oftheAgreement onSubsidies andCountervailing Measures?
2. Enterprises infreezones areeligible toobtain electricity orwater atpreferential rates“not
higher thanthose forthemajor industries". Does Cameroon provide these services atpreferential
ratestomajor industries? What arethoseindustries? Please explain onwhatbasisCameroon determined
thatsuchratesarenotnotifiable under Article 25oftheAgreement.
3. When Cameroon reports thatindustrial freezoneenterprises must “guarantee theexport of
theirentire production, ”doesitmean theenterprises mustexport fromthefreezoneorfromCameroon?
Thisappearstobeaexportperformancerequirementforsubsidybenefits.Notwithstandingtheprovisions
ofArticle 27.2oftheAgreement, doesCameroon contemplate eliminating ormodifying these export
performance conditions inthefuture?
4. Incentives under theindustrial freezoneprogramme aregranted preferably toenterprises which
userawmaterials from Cameroonian territory. Thisappears tobeanimport substitution criterion
prohibited under Article 3.1oftheSCM Agreement. Does Cameroon haveplans eventually tomodify
oreliminate these elements inlinewithitsobligations under Article 27.3oftheAgreement?
1G/SCM/N/3/CMR-G/SCM/N/16/CMR.