RESTRICTED WT/TPR/S/296 18 March 2014 (14-1702) Page: 1/87 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT QATAR This report, prepared for the second Trade Policy Review of Qatar, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Qatar on its trade policies and practices. Any technical questions arising from this report may be addressed to Ms Denby Probst (tel.: 022 739 5847). Document WT/TPR/G/296 contains the policy statement submitted by Qatar. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Qatar. This report was drafted in English. WT/TPR/S/296 • Qatar - 2 - CONTENTS SUMMARY ........................................................................................................................ 8 1 ECONOMIC ENVIRONMENT ........................................................................................ 10 1.1 Introduction ............................................................................................................. 10 1.2 Recent economic developments .................................................................................. 10 1.3 Planning and strategy ............................................................................................... 11 1.3.1 Qatar National Vision 2030 ...................................................................................... 11 1.3.2 Qatar National Development Strategy, 2011-16 ......................................................... 11 1.4 Macroeconomic policies ............................................................................................. 11 1.4.1 Inflation ............................................................................................................... 11 1.4.2 Labour, employment, and the expatriate workforce..................................................... 11 1.4.3 Exchange rate policy .............................................................................................. 12 1.4.4 Treasury bills ........................................................................................................ 12 1.5 Fiscal situation ......................................................................................................... 12 1.6 Developments in trade .............................................................................................. 13 1.6.1 Trade in goods ...................................................................................................... 13 1.6.1.1 Exports .............................................................................................................. 13 1.6.1.2 Imports ............................................................................................................. 14 1.6.2 Trade in services ................................................................................................... 14 1.7 Foreign direct investment trends ................................................................................. 17 1.8 Outlook ................................................................................................................... 17 2 TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES .......................................... 19 2.1 Introduction ............................................................................................................. 19 2.2 General constitutional and legal framework .................................................................. 19 2.2.1 Constitution and legal overview ............................................................................... 19 2.2.2 Recent developments ............................................................................................. 19 2.3 Development and administration of trade policy ............................................................ 20 2.3.1 Main trade laws ..................................................................................................... 20 2.3.2 Agencies involved in trade policy implementation ....................................................... 20 2.4 Trade policy objectives .............................................................................................. 21 2.5 Qatar and the WTO ................................................................................................... 21 2.6 Trade agreements and arrangements .......................................................................... 21 2.6.1 Regional agreements .............................................................................................. 22 2.6.1.1 Gulf-Cooperation Council (GCC) Customs Union ....................................................... 22 2.6.1.2 GCC free-trade agreements .................................................................................. 23 2.6.1.3 Pan-Arab Free Trade Area (PAFTA or GAFTA) .......................................................... 23 2.6.2 Preferential trade ................................................................................................... 24 2.7 Trade disputes and consultations ................................................................................ 24 2.7.1 Dispute settlement in the WTO ................................................................................ 24 2.7.2 GCC and PAFTA dispute settlement mechanisms ......................................................... 24 WT/TPR/S/296 • Qatar - 3 - 2.8 Foreign investment regime ........................................................................................ 25 2.8.1 Legal framework .................................................................................................... 25 2.8.1.1 Incentives .......................................................................................................... 26 2.8.1.2 Bilateral investment agreements ........................................................................... 26 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 27 3.1 Measures directly affecting imports ............................................................................. 27 3.1.1 Customs procedures ............................................................................................... 27 3.1.1.1 Main laws and organization ................................................................................... 27 3.1.1.2 Multilateral Agreements on customs ....................................................................... 28 3.1.1.3 Bilateral cooperation on customs ........................................................................... 29 3.1.1.4 Single-window clearance ...................................................................................... 29 3.1.1.5 Import procedures and trading rights ..................................................................... 29 3.1.1.6 Customs brokers ................................................................................................. 30 3.1.1.7 Free trade zones ................................................................................................. 30 3.1.1.8 The 2013-16 Customs Strategic Plan ..................................................................... 30 3.1.2 Tariff schedule ....................................................................................................... 30 3.1.2.1 Applied rates ...................................................................................................... 30 3.1.2.2 WTO bindings ..................................................................................................... 32 3.1.2.3 Applied rates exceeding bound rates ...................................................................... 32 3.1.2.4 Preferential tariffs ............................................................................................... 32 3.1.2.5 Exemptions from customs duties ........................................................................... 32 3.1.3 Other charges affecting imports ............................................................................... 33 3.1.4 Customs valuation ................................................................................................. 33 3.1.5 Preferential and non-preferential rules of origin .......................................................... 33 3.1.6 Import prohibitions, restrictions, and licensing ........................................................... 33 3.1.6.1 Prohibitions and restrictions .................................................................................. 33 3.1.6.2 Licensing ........................................................................................................... 34 3.1.7 Contingency measures ........................................................................................... 34 3.1.8 Standards ............................................................................................................. 34 3.1.8.1 Standards and other technical requirements ........................................................... 34 3.1.8.2 SPS................................................................................................................... 35 3.1.8.3 Marking and labelling rules ..................................................................................