Chapter

Appendix: Summary of Measures Affecting Members’ Exchange and Trade Systems, 1986

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
August 1987
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MemberDateDirectionMeasures
Quantitative Import Controls
Industrial countries
Canada1/1/86TighteningItems added to bilateral clothing restraint agreement with Indonesia.
1/1/86TighteningItems added to bilateral clothing restraint agreement with Brazil.
2/28/86TighteningAgreement concluded with Turkey on imports of pants.
3/7/86TighteningOne-year import quota placed on tailored collar shirts from Viet Nam.
3/14/86TighteningAgreement concluded with Maldives on imports of certain textile items.
3/21/86TighteningItems added to bilateral clothing restraint agreement with Mauritius.
4/1/86TighteningPants added to bilateral clothing restraint agreement with Bangladesh.
6/23/86TighteningQuota imposed on certain clothing imports from Democratic People’s Republic of Korea.
7/22/86TighteningBilateral clothing restraint agreement concluded with Viet Nam.
8/5/86TighteningUnderstanding reached with Japan on restraint of Japanese car exports to Canada.
8/23/86TighteningQuota extended to all clothing imports from Democratic People’s Republic of Korea.
Denmark12/1/86IntroductionImports from South Africa and Namibia banned.
Japan4/1/86LiberalizationQuantitative restrictions on leather footwear eliminated.
Spain1/1/86LiberalizationQuantitative import restrictions eliminated or liberalized in accordance with provision of accession to European Communities (EC).
Sweden7/1/86TighteningAll imports from South Africa subjected to licensing.
United Kingdom1/1/86LiberalizationImports of the following liberalized: tableware and other articles of a kind commonly used for domestic or toilet purposes, and stoneware originating in the Republic of Korea; matches and certain aluminum goods originating in Romania.
1/1/86EliminationDiscontinuance of Community surveillance of handkerchiefs originating in Portugal; and of surveillance licensing of certain iron and steel goods originating in Brazil and Spain.
1/1/86IntroductionIn the context of regulations of the EC, Community surveillance licensing was introduced of certain yarns of synthetic textile fibers and stockings and socks originating in Turkey. Imposition of restrictions on importations into Northern Ireland of certain air guns, air rifles, air pistols, and other ammunition originating in all third countries.
2/15/86TighteningQuotas imposed on certain animal fats, certain fertilizers, and certain bleached paper and paperboard originating in the United States.
2/21/86IntroductionA quota was imposed on certain iron and steel goods originating in Democratic People’s Republic of Korea.
3/1/86LiberalizationImports were liberalized of styrene, certain polyethelyne products, sporting and target shooting guns, rifles and carbines, gymnasium and athletic equipment, and snow skis originating in the United States.
5/24/86IntroductionA ban was imposed on gold coins originating in South Africa.
6/10/86TighteningCommunity surveillance licensing introduced on track suits originating in Turkey. Double control surveillance licensing introduced for certain goods originating in Turkey previously subject to either quota restriction or Community surveillance licensing.
6/20/86LiberalizationImports of certain iron and steel rails originating in Czechoslovakia liberalized.
9/20/86LiberalizationImport quota measures of 2/15/86 taken against United States liberalized.
9/26/86IntroductionIntra-Community surveillance licensing introduced for certain iron and steel goods originating in Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
9/26/86EliminationIntra-Community surveillance licensing lifted on certain other iron and steel goods originating in Czechoslovakia.
9/27/86IntroductionA ban imposed on certain iron and steel goods originating in South Africa.
12/16/86TighteningIntra-Community surveillance licensing introduced for color television receivers originating in Taiwan.
12/20/86TighteningQuotas imposed on imports of urea originating in certain countries of Eastern Europe and the U.S.S.R.
United States1/1/86IntroductionQuotas imposed on semifinished steel imports from the EC.
1/7/86IntroductionTrade embargo on Libya imposed.
7/1/86EliminationProhibition of importation of certain categories of books (manufacturing clause) expired.
7/31/86IntroductionAgreement on trade in semiconductors with Japan concluded.
9/7/86LiberalizationQuotas on semifinished steel imports from the EC increased.
10/2/86TighteningImports of certain goods from South Africa prohibited.
12/9/86IntroductionAgreement on voluntary limits on exports of machine tools by Taiwan concluded.
12/15/86TighteningQuotas on sugar imports reduced.
Developing countries—fuel exporters
Indonesia3/25/86TighteningImports of used paper restricted to paper producers.
Mexico10/31/86LiberalizationImport license requirements for 201 tariff lines eliminated.
Nigeria9/29/86LiberalizationImport licensing abolished, and items subject to import prohibition reduced.
Trinidad and Tobago5/16/86LiberalizationIntroduction of general import licenses to be issued in conjunction with duty-free licenses granted to local concessionaire manufacturers for importing certain inputs.
9/1/86LiberalizationProcedures for granting of licenses for imports from Caricom countries liberalized.
Tunisia10/14/86LiberalizationTransfer of items from licensing to the (free) system of import certificate.
Developing countries—other
Bangladesh7/1/86LiberalizationNumber of items on Negative and Restricted Import Lists deleted.
7/16/86TighteningLimit on imports of fabrics reduced.
Barbados1/15/86TighteningItems added to list of goods requiring import licenses.
3/14/86TighteningItems added to list of goods requiring import licenses.
7/14/86TighteningItems added to list of goods requiring import licenses.
China, People’s Republic of1/3/86IntroductionSteel and pesticides imports made subject to import licensing.
Colombia2/25/86LiberalizationRange of tax credit certificates system narrowed from 5–35 percent with seven rates to 5–14 percent with three rates.
Feb.–May 1986LiberalizationA few items transferred to free import list.
May–July 1986TighteningItems transferred for prior import license list and subjected to prior approval.
Dominican Republic5/24/86IntroductionImports of wine and other grape-related alcoholic beverages and spirits banned.
7/7/86EliminationImport ban on automobiles and heavy machinery lifted.
7/11/86IntroductionImport ban on automobiles and heavy machinery reintroduced.
7/12/86IntroductionImport ban on various goods and equipment used in the production of electricity introduced.
10/1/86LiberalizationImport ban on wine and other grape-related spirits lifted.
Egypt8/21/86TighteningAdministrative controls over import licensing tightened.
FijiVarious datesTighteningAdditions of a number of items to the list of prohibited or restricted imports.
The Gambia1/20/86LiberalizationAll imports permitted under open general licenses.
Ghana10/6/86LiberalizationImport licensing procedures simplified with introduction of foreign exchange auction system.
Grenada1/10/86LiberalizationImport licensing removed for 20 consumer goods.
Guinea1/6/86LiberalizationImport licenses abolished; foreign exchange for imports made available through auction.
Haiti8/10/86LiberalizationNumber of import items subject to licenses reduced from 111 to 35. Quotas eliminated for all items except cement, rice, sugar, and wheat.
Hungary8/1/86TighteningCustoms regulations affecting individuals tightened.
India3/3/86LiberalizationTwenty-nine machine tool items placed under open general license.
10/8/86 and 10/29/86TighteningNine items removed from open general license list.
11/13/86LiberalizationForty-three items of machinery placed under open general license.
Korea7/1/86LiberalizationIncrease in number of automatically approved import items.
9/1/86LiberalizationImportation of foreign cigarettes permitted up to 1 percent of domestic consumption.
Madagascar1/2/87LiberalizationImport regime for essential goods liberalized through provision of monthly allocation of foreign exchange.
Maldives1/1/86TighteningA new import license system adopted placing a limit on imports based primarily on the value of their 1985 imports.
Mali2/13/86LiberalizationImport licensing system simplified.
Mauritius12/22/86LiberalizationCommercial banks granted authority to effect import payments without prior authorization by the central bank.
Morocco2/86LiberalizationList of prohibited goods abolished, and coverage of licensing requirements reduced.
Nepal7/7/86LiberalizationIntroduction of auction system for licenses for imports of certain goods (from countries other than India) whose licensing is administered by the Ministry of Commerce.
8/11/86IntroductionIntroduction of passbook system for the import of industrial raw materials.
12/7/86LiberalizationExtension of auction system for import licenses to all goods whose licensing is administered by the Ministry of Commerce.
Netherlands Antilles10/14/86IntroductionQuotas introduced for certain items having locally produced substitutes.
Pakistan6/30/86LiberalizationMaximum value of import licenses for capital goods imports by textile industry increased.
Panama8/86LiberalizationImport quotas on certain products replaced by tariffs; many tariffs to be reduced gradually over the medium term.
Paraguay3/19/86LiberalizationRemoval of a variety of cotton and wool textiles from the list of prohibited imports.
Philippines3/4/86EliminationPrior approval requirement for a list of regulated imports eliminated.
4/30/86EliminationPrior approval requirement for a list of regulated imports eliminated.
6/6/86EliminationPrior approval requirement for a list of regulated imports eliminated.
7/26/86EliminationRemoval of restriction on import of capital goods exceeding US$50,000.
9/26/86EliminationPrior approval requirement for a list of regulated imports eliminated.
Portugal1/1/86LiberalizationQuantitative restrictions liberalized in accordance with accession to the EC.
Senegal2/28/86LiberalizationQuantitative restrictions on all items not produced locally removed.
8/4/86LiberalizationQuantitative restrictions on most products produced locally removed.
10/1/86LiberalizationQuantitative restrictions on imports of packing papers and cardboard removed.
Sierra Leone6/86LiberalizationAll goods, with the exception of prohibited items, permitted to be imported under open general licenses; the Specific Import License abolished. Authority for approving transactions delegated to commercial banks.
South Africa6/1/86IntroductionImports from Sweden subjected to license.
8/6/86IntroductionImports from Zimbabwe subjected to license.
Thailand2/27/86TighteningImports of semifinished and parts of garments prohibited.
3/7/86LiberalizationTemporary permission for certain imports.
7/3/86TighteningA ban imposed on imports of certain single-cylinder diesel engines.
7/16/86LiberalizationPermission granted for limited import of kenaf.
11/14/86TighteningThe permitted ratio of local purchase to import for soybean meal set at 1:1, with a maximum import allowance of 120,000 tons.
Turkey1/1/86LiberalizationNumber of items subject to prior approval reduced.
9/1/86LiberalizationProcedures for granting licenses for imports from Caricom countries made more liberal.
12/17/86LiberalizationNumber of items subject to prior approval reduced.
Yemen Arab Republic3/30/86TighteningImports of luxury goods suspended for the rest of the year.
Yugoslavia11/20/86LiberalizationRaw materials for medical products moved from quota category to free category.
Import Surcharges and Import Taxation
Industrial countries
Canada1/10/86TighteningWithdrawal of duty-free rate under GPT on color television receiving sets made final, and withdrawal of duty-free GPT rate on rubber footwear other than sandals and riding boots extended up to end-1988.
1/20/86EliminationRemoval of duties on computer parts and certain semiconductors.
2/86-12/86TighteningDefinitive antidumping duties were applied to various items imported from certain countries.
3/27/86TighteningProvisional countervailing duties imposed on imports of boneless manufacturing beef from the EC.
6/6/86TighteningMFN tariff rates on imports of certain books, maps, charts, and printed music from the United States increased, and tariffs on imports of computer parts and certain semiconductor devices from the United States restored.
6/15/86LiberalizationImports from Commonwealth countries in the Caribbean exempted from duties under Caribcan agreement.
7/25/86TighteningProvisional countervailing duties maintained on imports of boneless manufactured beef from EC.
9/30/86TighteningProvisional countervailing duties imposed on imports of dry pasta from the EC.
11/7/86TighteningProvisional countervailing duties imposed on corn imports from the United States.
11/10/86TighteningProvisional countervailing duties imposed on imports of carbon steel stainless pipe from Brazil.
12/1/86LiberalizationAnnual quota on women’s and girls’ footwear imports increased.
Iceland3/1/86LiberalizationCustoms duties on certain goods reduced.
Ireland1/1/86LiberalizationTariffs on imports from certain countries reduced.
Japan1/1/86LiberalizationCoverage of Generalized System of Preferences extended and GSP rates reduced on some items.
1/20/86LiberalizationTariffs on imports of computer peripherals and parts, and computer-related equipment reduced.
New Zealand1/1/86EliminationTariffs on finished goods not produced domestically eliminated.
Spain3/1/86LiberalizationImport tariffs reduced in accordance with provision of accession to EC.
United States1/6/86TighteningAntidumping duties imposed on certain goods from South Africa.
1/27/86TighteningCountervailing duties imposed on certain goods from Brazil.
2/5/86TighteningMost favored nation (MFN) treatment suspended for Afghanistan.
2/17/86TighteningAntidumping duties imposed on certain goods from Canada.
3/6/86TighteningCountervailing duties imposed on certain goods from Islamic Republic of Iran.
3/7/86TighteningCountervailing duties imposed on certain goods from New Zealand.
3/14/86TighteningCountervailing duties imposed on certain goods from Canada.
3/18/86TighteningDuties raised on certain products from Canada under the escape clause.
3/31/86TighteningCountervailing duties imposed on certain goods from Japan and Korea.
4/2/86TighteningCountervailing duties imposed on certain goods from Thailand.
4/21/86TighteningAntidumping duties imposed on certain goods from China.
4/29/86TighteningAntidumping duties imposed on certain goods from Canada.
5/5/86TighteningAntidumping duties imposed on certain goods from Brazil, Korea, and Taiwan.
5/27/86TighteningAntidumping duties imposed on certain goods from Japan.
6/3/86TighteningAntidumping duties imposed on certain goods from Canada.
7/2/86TighteningAntidumping duties imposed on certain goods from Islamic Republic of Iran.
8/11/86TighteningCountervailing duties imposed on certain goods from Zimbabwe.
8/13/86TighteningAntidumping duties imposed on certain goods from China.
8/25/86TighteningCountervailing duties imposed on certain goods from New Zealand.
10/21/86IntroductionCustoms user fee.
10/23/86TighteningAntidumping duties imposed on certain imports from Singapore.
11/3/86TighteningCountervailing duties imposed on certain imports from Brazil and Korea.
11/5/86TighteningAntidumping duties imposed on certain goods from Mexico, China, and Taiwan.
11/19/86TighteningCountervailing duties imposed on certain goods from Korea and Taiwan.
11/21/86TighteningCountervailing duties imposed on certain goods from El Salvador.
12/8/86TighteningAntidumping duties imposed on certain goods from Brazil and Taiwan.
Developing countries—fuel exporters
Indonesia2/25/86LiberalizationMachines, equipment, software, and basic materials not produced domestically exempted from import duties and sales tax.
7/11/86LiberalizationImports connected with production of certain motor sailboats exempted from import duties, value-added tax, and luxury goods sales tax.
7/12/86LiberalizationImports of cars in completely knocked-down condition for taxi business exempted from import duties and value-added tax.
7/28/86LiberalizationCertain imports needed for construction of shopping centers, supermarkets, and department stores exempted from import duties.
8/13/86TighteningImport duties on copra, palm oil, and their processed products increased.
8/13/86LiberalizationValue-added tax and sales tax on luxury goods on the import of capital goods for certain companies suspended for a period of not more than five years.
9/2/86LiberalizationShrimp feed exempted from import duties.
9/2/86LiberalizationBasic materials for the manufacture of certain bearings exempted from import duties.
9/13/86LiberalizationImport duties on sewing machines for industrial use made uniform.
9/13/86LiberalizationImport duties on tire cord fabrics reduced.
10/16/86LiberalizationImports of certain types of steel bars for industrial use exempted from import duties, and import duties on certain other types of steel bars decreased.
10/16/86TighteningImport duties on certain types of steel bars increased.
10/25/86IntroductionImport surcharges imposed on 36 items.
Kuwait3/1/86TighteningIncreased customs duty on certain products considered to be similar to those produced domestically.
Nigeria1/1/86IntroductionImport surcharges introduced.
9/29/86LiberalizationImport surcharge and import licensing abolished.
Mexico4/30/86LiberalizationMaximum import tariff reduced from 50 percent to 45 percent. Rates below 45 percent reduced by 2.5 percentage points, except that the 5 percent rate abolished.
Oman1/1/86TighteningGeneral tariff rate raised from 4 percent to 5 percent.
Trinidad and Tobago1/14/86LiberalizationThe 12 percent stamp duty on imports of raw materials abolished.
Developing countries—other
Argentina5/6/86LiberalizationProducers of specified products in the electronics sector made eligible for exemptions or reductions in duties.
9/4/86LiberalizationInputs into exported products exempted from all tariffs and duties.
Belize1/25/86TighteningFee on entrepot trade increased.
Bolivia8/15/86TighteningNumber of items exempted from import duties reduced.
8/15/86TighteningA uniform tariff rate of 20 percent introduced.
Brazil7/24/86EliminationFinancial transaction tax eliminated on importation of selected computer goods, selected inputs to the computer goods industry, and selected payments on transfer of technology.
7/24/86EliminationFinancial transaction tax eliminated on machinery and capital equipment imported by the leather processing industry, and on imports of additives, vitamins, and raw materials used as inputs in the production of animal food.
7/26/86LiberalizationFinancial transaction tax on certain imports used in the production of electronic equipment reduced to: 75 percent on all processed raw materials; 50 percent on semi-manufactured products; 25 percent on manufactured products.
11/24/86EliminationFinancial transaction tax eliminated on importation of machines, equipment, parts, and components for production of gelatinous capsules for pharmaceutical use when no similar national product exists.
Various datesLiberalizationTariff exceptions or reductions introduced for certain products.
Costa Rica6/11/86NeutralSystem of import surcharges amended; new definition of categories and rates established.
9/1/86LiberalizationReduction of surcharges on luxury goods (from 30 percent to 15 percent) and nonluxury goods (from 7 percent to 3.5 percent). (These surcharges subsequently eliminated at end of year.)
Dominica7/1/86TighteningTaxes on imports of petroleum and motor vehicles increased.
Dominican Republic9/8/86IntroductionImport taxes or fees on imports entering the country after certain date reinstated.
Egypt8/21/86LiberalizationNew tariff structure with lower average rate introduced.
Fiji11/4/86TighteningIncrease in import taxes on vehicles, petroleum products, and spirits.
Greece7/1/86LiberalizationRegulatory tax on imports reduced.
Grenada3/13/86EliminationThe 15 percent stamp tax on imports removed. The 10-45 percent consumption duty on imports removed. The 5 percent international airport levy on imports removed.
Guinea3/13/86IntroductionA 20 percent value-added tax on imports enacted.
1/5/86LiberalizationTariff structure simplified.
Haiti8/10/86LiberalizationMany specific tariffs replaced by ad valorem tariffs averaging 20 percent.
India6/16/86LiberalizationCustoms duty rates on parts and components for electronic goods, capital goods for electronic goods, and computers reduced.
7/29/86LiberalizationImport and excise duty concessions granted for computerized numerically controlled systems, leather, chemicals, coffee, materials for television sets, ambulances, auto-rickshaws, fertilizer inputs, specific rubber products, and polypropylene yarn.
Israel1/1/86LiberalizationTariff rates reduced within the framework of U.S.-Israel free trade agreement.
Kenya7/1/86LiberalizationDuties on certain imports eliminated or reduced.
TighteningDuties on certain imports introduced or raised.
2/27/86, 4/4/86, and 6/5/86TighteningTariff rate on crude oil imports raised.
Korea7/1/86LiberalizationAdjustment tariffs removed from the two items previously subject to them and added to five other newly liberalized items (net increase of three items); emergency tariff removed from one item, leaving two items subject to it.
7/1/86LiberalizationReduction in number of items ineligible under the customs duty refunding system.
Madagascar1/2/87TighteningFee of 10 percent imposed on import license applications, with exemptions for exports’ inputs.
Malaysia3/27/86EliminationImport duties on travel posters, brouchres, leaflets, and other printed materials abolished.
Maldives4/1/86NeutralA new tariff schedule with duty rates ranging from 5 percent to 200 percent on c.i.f. value of imports adopted.
Nepal2/22/86TighteningLimit on duty-free imports by Nepalese traveling abroad reduced from NRs 2,000 to NRs 1,000.
Nicaragua1/1/86NeutralReform of Central American Common External Tariff introduced.
4/24/86TighteningCustoms duties and other charges on imports financed through own foreign exchange and “free” exchange market to be levied on basis of free exchange rate, with certain exemptions.
5/14/86TighteningCustoms fee introduced on certain imports.
5/31/86TighteningCustoms storage fees raised.
Pakistan6/86LiberalizationReduction in import duty on certain imports of plant and machinery and industrial raw materials from 40 percent to 20 percent.
Senegal8/14/86Liberalization“Normal fiscal tariff” reduced from 40 percent to 30 percent; the “increased fiscal tariff” reduced from 50 percent to 35 percent; and the “special fiscal tariff” reduced from 75 percent to 65 percent.
Seychelles11/1/86TighteningCustoms duties replaced by a trade and service tax ranging from 10 percent to 350 percent.
Sierra Leone6/86LiberalizationAn invoice entry fee and an import licensing fee reduced to 10 percent of the c.i.f. value.
South Africa7/1/86LiberalizationImport surcharges on certain raw materials and intermediate goods eliminated.
Thailand1/21/86LiberalizationReduction of import duty on polyvinyl and glass tubes for use in manufacturing of syringes and for use as vials.
12/18/86TighteningReintroduction of tariffs on several items.
12/18/86LiberalizationCustoms tariffs on a number of items reduced or eliminated.
Togo4/9/86LiberalizationImport duties on raw materials and semiprocessed goods reduced.
Turkey4/11/86LiberalizationImport duties on oil (one type), new tires, batteries, tobacco, and hurricane lanterns reduced.
10/9/86TighteningThe number of items whose importation is subject to dollar-denominated levies increased, and levies raised on other items.
12/13/86TighteningSurcharge on imports levied for support and price stabilization fund raised from 2 percent to 4 percent.
12/23/86TighteningStamp duty on imports raised from 4 percent to 6 percent.
Uruguay4/23/86LiberalizationA number of products exempted from the import surcharge.
8/20/86LiberalizationImport surcharges reduced by uniform 5 percentage points.
Zaïre8/1/86LiberalizationNew tariff structure introduced.
Zimbabwe8/1/86LiberalizationReduction from 20 percent to 15 percent of import surcharge on machinery imports for manufacturing mining and agricultural industries.
Advance Import Deposits
Developing countries—fuel exporters
Ecuador3/21/86IntroductionAdvance deposits against foreign loans contracted for import financing introduced.
8/11/86EliminationAdvance deposits against foreign loans contracted for import financing eliminated.
Developing countries—other
Afghanistan11/2/86TighteningHigher rates set for advance import deposits.
Bangladesh2/16/86IntroductionMargin deposit requirement for letters of credit for palm oil imports introduced.
El Salvador1/22/86IntroductionPrior deposit requirement introduced for imports from outside Central America.
Guatemala6/5/86TighteningRate of guarantee deposit requirement for import prepayment not involving letters of credit raised.
South Africa8/6/86IntroductionGoods imported by Zambia through South African ports subjected to a cash deposit scheme.
Turkey7/1/86TighteningRate on advance import deposits raised from 3 percent to 9 percent. Schedule published for reduction to 3 percent by November 1986.
10/26/86LiberalizationThe rate of advance import deposits was lowered from 9 percent to 7 percent, but exemptions to deposit requirements largely eliminated.
Western Samoa3/19/86LiberalizationAdvance deposits against motor vehicle imports permitted to be made at any commercial bank and interest paid on them.
Yemen Arab Republic7/8/86TighteningRates of margin deposits raised.
Other Import Measures
Industrial countries
Canada9/1/86IntroductionCarbon steel products added to import control list for monitoring purposes.
France4/15/86LiberalizationForward import cover for goods invoiced in foreign currency permitted up to three months.
5/15/86LiberalizationPeriod of allowable forward cover for purchase of goods invoiced in foreign exchange extended to six months.
5/22/86LiberalizationCompanies allowed to hedge their currency exposure by using forward foreign exchange contracts of up to six months for imports of goods.
Finland5/16/86LiberalizationLimit on amount of foreign financing credit for imports mediated by banks abolished.
Italy1/16/86TighteningProhibition of import payments ahead of contractual terms.
4/14/86LiberalizationAbolition of prohibition of import payments ahead of contractual terms.
Norway7/21/86NeutralRequirement that imports financed in a foreign currency and capital imports financed for between one and five years be licensed.
Developing countries—oil exporters
Indonesia10/25/86LiberalizationImport licensing procedures applying to 321 categories of imports concentrated in mechanical and electrical equipment, motor vehicles, chemicals, paper and paperboard, rubber tires and tubes, and basic iron and steel liberalized.
Qatar3/1/86LiberalizationCompanies operating in member states of the Gulf Cooperation Council allowed to export to country without maintaining a local agency.
Syrian Arab Republic9/2/86TighteningTightening of restrictions on acquisition of foreign exchange through the unofficial market, thus eliminating an avenue for import financing.
Venezuela5/26/86TighteningMinimum financing requirement of at least 120 days for the equivalent of 80 percent of the f.o.b. introduced.
Developing countries—Other
Bangladesh1/1/86LiberalizationIndustrial firms allowed to open deferred payments letters of credit for raw material imports.
Dominican Republic12/18/86TighteningMinimum term of import financing from 180 days to 5 years established.
El Salvador1/22/86TighteningAuthorization of the central bank required for imports exceeding US$300.
1/22/86IntroductionLetters of credit with guarantee deposits required for imports from outside Central America exceeding certain limits.
Hungary1/1/86LiberalizationForeign trading rights vis-à-vis the convertible currency area liberalized.
Israel8/1/86EliminationProhibition on prepayments of suppliers’ credits removed.
Madagascar8/4/86LiberalizationSpecial import system for exporting enterprises provided.
Morocco7/7/86LiberalizationImports used for production of export goods may be financed directly by export receipts of same exporter.
Philippines1/27/86LiberalizationMinimum import payments terms reduced from 180 to 60 days for certain imports under progressive manufacturing programs.
8/1/86EliminationForeign financing requirement for capital goods imports eliminated.
Sudan1/20/86TighteningUse of balances in foreign currency accounts to pay for import and trade-related invisibles prohibited.
Uruguay8/21/86LiberalizationMost reference prices reduced.
State Trading
Developing countries
Guinea-Bissau8/13/86LiberalizationPrivate sector permitted to engage in all merchandise trade, except imports of cereals, petroleum products, and pesticides.
Nigeria9/29/86EliminationBoards responsible for export of cocoa, cotton, groundnuts, and palm kernels abolished.
Sierra Leone6/86TighteningExports of gold restricted to the GGDO and the Bank of Sierra Leone.
Solomon Islands5/27/86LiberalizationState monopoly over rice imports terminated.
Togo5/1/86LiberalizationImport monopoly of the Société Nationale de Commerce (Sonacom) terminated for salt and soap.
7/1/86LiberalizationImport monopoly of Sonacom terminated for corrugated iron products and concrete reinforcement rods.
Exports and Export Proceeds
Quantitative Restrictions and Control on Exports
Industrial countries
Canada6/27/86TighteningCedar bolts added to Export Control List and exports of cedar bolts and logs to the United States prohibited.
Denmark12/1/86TighteningExports to South Africa and Namibia, except exports of medicine, banned.
Japan2/13/86ExtensionVoluntary restraint on motor vehicle exports to the United States for one-year period starting April 1986 announced.
12/11/86TighteningQuantities of certain products exported to EC to be monitored: motor vehicles, television sets, and related equipment.
Sweden6/1/86TighteningRe-exports of certain high-tech products to require prior approval from country of origin.
United States1/7/86IntroductionProhibition of exports to Libya.
6/4/86EliminationProhibition of exports of crude oil from certain parts of the country discontinued.
6/5/86TighteningExports of helicopters to certain countries made subject to control.
7/14/86EliminationLicensing requirements for exports of certain goods to certain countries removed.
8/11/86LiberalizationRestrictions on certain exports to Spain relaxed.
10/2/86IntroductionProhibition of certain exports to South Africa.
Developing countries—fuel exporters
Indonesia3/26/86TighteningExports of nutmeg limited to companies that are members of the Indonesian Nutmeg Association.
9/9/86LiberalizationExport ban on pure gold and silver lifted.
10/8/86IntroductionExports of raw material rattan prohibited.
Nigeria1/1/86EliminationBan on food exports lifted.
9/29/86EliminationExport bans (and most export licensing requirements) eliminated.
Developing countries—other
China, People’s

Republic of
1/86LiberalizationJoint ventures permitted to export domestic products produced under state monopoly or requiring export licenses.
Greece2/13/86IntroductionExports of crude oil and arms to South Africa prohibited.
Nepal1/4/86LiberalizationExport of 80 percent of pulses allowed without permission.
1/24/86IntroductionNepal and the United States signed an agreement limiting the volume growth for exports to the United States of four major categories of ready-made garments to 6 percent per annum.
Philippines3/10/86LiberalizationTermination of export ban on copra.
Thailand1/14/86LiberalizationPermissible ratio of coffee exports between nonmember and member countries of the ICO changed from 1.1:1 to 2.76:1.
1/16/86LiberalizationProhibition on exports of rice bran temporarily lifted.
5/17/86LiberalizationMore flexible regulations governing exports of garments to countries setting import quotas announced.
7/1/86LiberalizationThe free export policy for maize continued and extended to cover Japan and Taiwan.
3/18/86LiberalizationList of prohibited exports shortened.
Uruguay2/26/86TighteningExports of certain hides prohibited.
Export Licensing
Industrial countries
Norway7/21/86NeutralNew regulations issued for licensing requirements for trade financing.
Sweden7/1/86TighteningAll exports to South Africa subjected to licensing.
Developing countries
Madagascar8/29/86LiberalizationRegulations and controls governing exports simplified.
Malaysia6/27/86EliminationExport licenses for cement, metals (excluding scrap), sugar, flour, diesel, and premium petroleum (except naphtha) abolished.
Mali11/18/86EliminationExport licensing system abolished, with the exception of cereals.
Nigeria9/29/86LiberalizationMost export licensing abolished.
Thailand2/2/86TighteningLicensing requirements imposed on exports of certain types of wildlife animals and carcasses.
Togo11/19/86LiberalizationMechanism established to grant licenses for cereal exports.
Fiscal and Other Incentives
Industrial countries
United States3/3/86IntroductionNew incentive program for dairy products.
Developing countries
Argentina2/4/86IntroductionSpecial payments of up to 15 percent of increase in export value and access to central bank prefinancing provided to certain products.
9/4/86IntroductionExporters of specified manufactured products granted payments equivalent to 10, 12.5, and 15 percent of export value as estimated drawback of indirect taxes on production.
Bolivia8/13/86EliminationCertex system of incentives for nontraditional exports suspended.
Colombia2/25/86LiberalizationRange of tax credit certificates system narrowed from 5–35 percent with seven rates to 5–14 percent with three rates.
Greece6/5/86LiberalizationInterest subsidies for exports reduced from 6 percent of value to 5 percent.
India7/1/86IntroductionA cash compensatory support scheme for exporters for the period up to March 1989 (for textiles, for the period January 1986–December 1988) announced for 229 items.
7/1/86TighteningRates of cash compensatory support scheme for fruit and vegetables increased.
10/86IntroductionExport promotion measures involving supply of raw materials at international prices, utilization of up to 10 percent of foreign exchange earnings for export promotion, imports of machinery free of duty or at low rates, and full remission of excise duties and domestic taxes introduced for 14 sectors.
3/1/86IntroductionDuty drawback of 10 percent granted for garment exporters.
12/86IntroductionMeasures to promote drug exports involving concessional import duty on raw materials, supply of materials at international prices for export production, and removal of capacity restrictions for export units introduced.
Indonesia5/6/86LiberalizationImport duties and surcharges on products used to manufacture exports refunded.
6/4/86LiberalizationImports by export producers that are exempted from import duty exempted from value-added tax.
Kenya7/1/86LiberalizationCoverage of export compensation scheme narrowed and penalties on fraudulent claims increased.
Malaysia10/24/86LiberalizationExport incentives based on value added replaced by export incentives based on export values; abatement of adjusted income of up to 50 percent based on export performance provided; export allowance of 5 percent granted to trading companies exporting manufactured products.
Nicaragua1/7/86IntroductionSpecial foreign exchange incentive for cotton production introduced; subsequently amended, 5/2/86.
5/2/86IntroductionSpecial foreign exchange incentive for coffee introduced; subsequently amended, 10/22/86.
Pakistan6/18/86LiberalizationCompensatory export rebate scheme abolished.
Peru11/27/86IntroductionSubsidy granted to nontraditional exporters at two different rates depending on commodity.
Senegal8/4/86LiberalizationExport subsidy rate decreased.
Tanzania7/1/86LiberalizationExport tax rebate scheme abolished.
2/1/86LiberalizationRetention rate for nontraditional exports raised and Own Foreign Exchange Import List expanded.
9/1/86
Turkey12/13/86TighteningThe system of premium payments for certain categories of exports expanded.
4/2/86LiberalizationList of products eligible for rebates of indirect taxes widened.
Export Taxation
Industrial countries
Canada12/30/86TighteningTax imposed on lumber exports to the United States.
Iceland5/14/86LiberalizationExport levies on fish products abolished.
Developing countries—oil exporters
Ecuador8/12/86EliminationAll export taxes eliminated.
Indonesia4/19/86LiberalizationExport tax on natural sands, except metalbearing sands, lowered.
5/12/86TighteningAdditional export tax on coffee raised.
6/20/86EliminationExport tax on crude palm oil removed.
11/4/86TighteningExport taxes on certain types of sawn timber and on undressed and dressed leather increased.
Developing countries—other
Argentina2/19/86

8/29/86
LiberalizationExport taxes reduced or eliminated on specified products.
Dominica7/1/86EliminationExport taxes and stamp taxes on export sales abolished.
Dominican Republic1/19/86LiberalizationExport surcharges on traditional exports and certain services reduced and their applicability extended to end of year.
6/17/86LiberalizationExport surcharges on all exports realized after this date eliminated.
Grenada3/13/86EliminationThe duty on exports removed.
Guatemala6/5/86IntroductionExport taxes ranging from 0 to 27 percent introduced.
Haiti10/24/86LiberalizationExport duties on coffee reduced.
Honduras7/18/86LiberalizationExport taxes on coffee applicable in 1985/86 harvest and unpaid outstanding export tax obligations reduced or deferred for up to two years.
Malawi4/3/86EliminationExport levy on tea and tobacco removed.
Philippines7/1/86EliminationExport duties on all products except logs abolished.
Thailand1/21/86EliminationExport taxes on eucalyptus, pinewood, and bamboo removed.
Togo4/9/86EliminationExport duties on domestically manufactured goods eliminated.
Uruguay6/13/86LiberalizationExports of unskinned beef exempted from export tax.
Zaïre3/86IntroductionTax on coffee exports introduced.
Special Credit Facilities
Industrial countries
Italy1/16/86IntroductionIntroduction of foreign financing requirement of 75 percent for exports on a deferred payments basis.
4/14/86EliminationElimination of 75 percent foreign financing requirement for exports on a deferred payments basis.
United States10/7/86ExtensionAvailability of credit insurance cover expanded.
10/16/86IntroductionSpecial credit facility created.
Developing countries
Argentina2/4/86IntroductionAccess to central bank prefinancing of exports introduced.
India8/1/86LiberalizationScheduled commercial banks’ lending rates for export credits and interest rate on Reserve Bank export refinance to scheduled commercial banks reduced.
Nepal1/24/86LiberalizationCommercial banks permitted to grant pre-export credit of up to 70 percent of f.o.b. value of products to holders of letters of credit.
Suriname9/17/86TighteningAll exports required to be covered by letters of credit opened by importers abroad.
Tunisia5/5/86LiberalizationPeriod for which export credits can be extended without prior authorization lengthened.
Zaïre6/6/86LiberalizationProcedure for exporters to obtain prefinancing improved.
Export or Exchange Guarantees
Industrial countries
France7/4/86EliminationElimination of requirement of forward cover for exports.
Repatriation and Surrender of Export Proceeds and Surrender Requirements
Industrial countries
France5/22/86LiberalizationExporters allowed to retain export proceeds for up to one month.
Developing countries
Ecuador8/12/86EliminationSurrender requirement for private foreign exchange abolished.
Egypt8/13/86TighteningRepatriation period of export proceeds tightened.
Guinea-Bissau8/13/86LiberalizationPrivate sector exporters permitted to retain up to 50 percent of the total value of traditional export proceeds and up to the total value of nontraditional export proceeds (net of export duty) to finance their imports.
Honduras5/15/86LiberalizationAll exporters permitted to retain up to 30 percent of export proceeds to finance imports.
Liberia5/28/86TighteningIntroduction of 25 percent surrender requirement for export proceeds.
Mexico9/5/86LiberalizationFines applicable to extemporaneous surrender of foreign exchange reduced.
9/5/86LiberalizationSurrender requirement for exporters and for their domestic suppliers liberalized.
Morocco7/7/86LiberalizationImports used for production of export goods may be financed directly by export receipts of same exporter.
Nigeria1/1/86LiberalizationNon-oil exporters allowed to retain 25 percent of proceeds.
9/29/86LiberalizationNon-oil exporters granted full retention rights.
Peru7/25/86

11/27/86
LiberalizationSurrender requirements for export proceeds in the official market reduced.
Philippines1/3/86TighteningResidents required to surrender foreign exchange earnings from professional services within three days. Philippine corporations required to repatriate and surrender foreign exchange earnings within three days.
1/3/86LiberalizationEnterprises not engaged in production of import substitutes permitted to repatriate capital in three equal annual installments after year of liquidation.
Sierra Leone6/27/86TighteningAll retention quotas abolished and all exporters required to fully surrender exchange earnings to the commercial banking system.
Suriname5/31/86TighteningAll export proceeds required to be surrendered to the Central Bank.
Yugoslavia1/1/86TighteningSurrender requirement raised to 100 percent.
Current Invisibles
Foreign Exchange Allocations for Travel, Medical Expenses, or Studying Abroad
Industrial countries
Austria11/1/86LiberalizationIncrease in foreign exchange allocation residents can purchase for travel purposes.
Finland1/1/86LiberalizationLimit on remittances for gift purposes increased.
1/1/86LiberalizationLimit on travel allowances abolished.
France1/27/86LiberalizationTravel allocation for residents increased from F 5,000 to F 12,000.
Iceland1/1/86LiberalizationBasic allocation for tourist travel raised.
Developing countries
Algeria2/86TighteningTravel allowance reduced from DA 1,000 per person per year to DA 1,000 per person every two years.
Bangladesh10/18/86LiberalizationAnnual exchange allowance for air travel to neighboring countries increased.
Brazil7/23/86TighteningTax levied on sale of foreign exchange for travel purposes at the rate of 25 percent.
Chile6/30/86LiberalizationIncrease in basic travel allowance.
12/31/86LiberalizationIncrease in basic travel allowance.
Cyprus10/11/86LiberalizationResident employees of offshore companies allowed to carry abroad on person unlimited foreign exchange debited from external or foreign currency accounts of offshore enterprise.
12/29/86LiberalizationLiving allowance for students studying in certain European countries raised.
El Salvador2/6/86IntroductionLimits on foreign exchange allowances for medical treatment and study and travel abroad introduced.
Guinea1/6/86LiberalizationForeign exchange made available for payment of airline tickets.
Israel8/1/86LiberalizationSupport and gift payments abroad permitted up to US$300 a year.
8/1/86LiberalizationExchange allocation for study abroad raised from US$200 to US$300 per month.
Malta2/11/86LiberalizationExchange allowances for business and tourist travel increased.
Mauritius6/18/86LiberalizationPersonal and business travel allowances increased; limits on gift payments abroad increased.
Portugal1/1/86LiberalizationForeign currency allowance for tourist travel per person per year increased to Esc 150,000.
12/9/86LiberalizationForeign currency allowance for tourist travel per person per trip fixed at Esc 150,000.
Sierra Leone6/86LiberalizationThe amounts of foreign exchange that can be purchased for legitimate expenses left to the discretion of commercial banks, and commercial banks can sell freely up to US$100 per individual per month.
Sri Lanka8/26/86LiberalizationAnnual exchange allocations for education abroad increased.
Syrian Arab

Republic
8/13/86LiberalizationTravel allocation for most countries (other than Jordan and Lebanon) increased.
Tunisia2/25/86TighteningSpecial travel allowance for travel to Morocco suspended.
10/20/86LiberalizationForeign exchange allowances for study abroad increased.
Yemen, People’s Democratic Republic4/2/86TighteningForeign exchange allocation for tourist travel reduced.
Zambia1/8/86LiberalizationTravel allowance granted for children returning to school overseas.
8/9/86TighteningHoliday travel allowance suspended.
9/8/86LiberalizationBusiness travel allowance increased.
11/4/86LiberalizationSuspension of holiday travel allowance lifted, and US$500 an adult a year reinstated.
Outward Transfers or Payments for Services Rendered by Nonresidents
Industrial countries
Finland1/1/86LiberalizationForeign exchange allowance for emigrants increased.
France4/15/86LiberalizationCeiling on small transfers increased from F 3,000 per person per month to F 3,000 per transaction, and ceiling on cash advances through the use of credit cards abroad raised from F 2,000 to F 6,000 per week.
5/22/86LiberalizationIndividuals permitted to transfer their assets when they settle abroad, and to make donations to nonresidents.
11/27/86EliminationElimination of ceiling on cash advances through use of credit cards abroad.
Developing countries
Argentina1/2/86LiberalizationBorrowers in public and private sector allowed to purchase foreign exchange for effecting certain debt service payments.
1/14/86LiberalizationInterest payments on financial loans by private sector permitted.
7/7/86LiberalizationSale of foreign exchange to effect certain invisible payments incurred after January 7, 1986 permitted under certain conditions.
7/7/86LiberalizationCertain suppliers’ credits permitted to be settled under specified conditions.
Bangladesh1/5/86LiberalizationTransfers of earnings by foreign export and inspection agents allowed through SEM (more favorable market rate).
Botswana3/10/86LiberalizationAnnual limit on directors’ fees and dividend remittances to nonresidents increased.
Burundi9/2/86LiberalizationCeilings on transfer of rental income, profits, and dividends raised and the period of mandatory deposits with domestic banks prior to transfer shortened in certain cases.
The Gambia1/20/86LiberalizationPayments to nonresidents for current transactions liberalized.
Greece5/19/86EliminationRestrictions on repatriation of profits and dividends by residents of EC abolished.
Iraq3/19/86TighteningLimit on remittances allowed for foreign workers employed without contract reduced.
7/31/86LiberalizationForeign insurance companies granted increased access to domestic market.
Peru7/29/86TighteningTwo-year suspension of foreign exchange remittance for private sector debt service payments, dividends, profits (including depreciation allowances), royalties, patent fees, and technical assistance fees by enterprises operating in Peru.
7/29/86ExtensionOne-year extension of limit on servicing of external public debt, equivalent to 10 percent of export earnings.
Venezuela7/7/86TighteningAmortization schedule for most registered private debt lengthened and interest rate limited to 5 percent for service payments at preferential rate of Bs 7.50 per US$1.
12/6/86LiberalizationTerms and schedules for private registered debt service payments at preferential exchange rate redefined and made eligible for exchange rate guarantee.
Yugoslavia1/1/86LiberalizationForeign exchange for debt service provided automatically.
Import and Export of Foreign and Domestic Currency Notes, and Holdings of Foreign Currency Domestically
Industrial countries
Austria11/1/86LiberalizationLimit on Austrian bank notes and coin which residents can take out abolished, leaving only a reporting requirement for amounts above a certain sum.
France1/27/86LiberalizationLimit on exports of bank notes increased.
Italy4/14/86LiberalizationLimit on re-export of bank notes by nonresidents increased.
8/8/86LiberalizationImport of Italian banknotes from foreign banks by resident banks liberalized.
Developing countries
Bangladesh5/29/86LiberalizationNonresidents allowed to take out up to US$150 of undeclared foreign exchange.
Hungary4/15/86TighteningReduction in the amount of domestic currency nonresidents may bring into or take out of the country.
Yemen Arab Republic7/8/86TighteningAll visitors (with some exceptions) required to exchange the equivalent of US$150 upon arrival.
Other
Industrial countries
United States1/7/86IntroductionRestrictions on services exports to Libya.
Developing countries
Brazil7/23/86TighteningTax levied on sale of foreign exchange for travel purposes at rate of 25 percent.
Dominican Republic8/8/86IntroductionExport surrender requirement extended to foreign exchange proceeds from credit operations using international credit cards.
Greece1/86IntroductionTourism receipts required to be surrendered.
Mozambique3/1/86TighteningAbolition of the preferential rate of exchange for inward miners’ remittances from South Africa.
Capital Controls
Commercial Banks’ International Transactions
Industrial countries
Austria11/1/86LiberalizationMajor banks permitted to borrow from nonresidents in foreign currency in medium and long term.
Finland5/13/86LiberalizationAuthorized banks permitted to use foreign banks to finance long-term export receivables.
France11/18/86LiberalizationFrench banks allowed to make loans in francs to nonresidents, up to the amounts of francs at their disposal from nonresident deposits and Euro-franc borrowings.
Ireland4/4/86TighteningRemoval of certain offsets against limits on banks’ forward transactions.
Italy4/14/86LiberalizationFor the settlement of Italian exports, resident banks allowed to grant credits denominated in lira to foreign banks for a maximum period of ten days.
4/11/86LiberalizationThe “spot against forward” ceiling on sales and purchases of foreign exchange, applying to resident banks, increased from Lit. 1.8 trillion to Lit. 2.2 trillion. The maximum maturity for forward transactions extended from 12 to 18 months.
Sweden3/25/86LiberalizationRestrictions on foreign currency lending by Swedish banks to nonresidents and residents liberalized.
Switzerland10/1/86LiberalizationWithholding tax on interest earned on interbank deposits with maturity exceeding 12 months abolished.
United States1/7/86IntroductionRestrictions on investments in Libya.
10/27/86TighteningProhibition on making credits to or taking deposits from certain South African agencies.
Developing countries
Dominican Republic10/22/86LiberalizationLimitations on commercial banks’ net foreign position removed.
El Salvador1/22/86TighteningCeilings on the utilization of foreign credits by commercial banks established.
The Gambia7/86TighteningWorking balance limits placed on the banks, and any amounts held in excess of the limits required to be sold in the interbank market or offered to the Central Bank.
Honduras9/25/86TighteningCommercial banks required to sell 50 percent of foreign exchange proceeds from exports to the Central Bank.
Indonesia10/25/86LiberalizationCeiling on foreign currency swaps between commercial banks and Bank Indonesia lifted; amount of swap, however, must not exceed foreign loan received by the commercial bank.
Korea7/10/86TighteningReduction in maximum allowable maturity for deferred payment letters of credit.
8/7/86TighteningTightening of eligibility requirements on new foreign commercial borrowing.
8/22/86TighteningFurther tightening of eligibility requirements on new foreign commercial borrowing.
Pakistan11/18/86LiberalizationAuthorized dealers permitted to issue traveler’s checks against encashment of foreign exchange bearer certificates.
Portugal5/1/86LiberalizationCredit institutions authorized to deal in foreign exchange among themselves and with their foreign correspondents.
Turkey11/1/86IntroductionSome limitations placed on the foreign asset position of banks.
Nonresidents’ Accounts and Residents’ Foreign Exchange Accounts
Industrial countries
Finland1/1/86LiberalizationRestricted accounts abolished.
Italy4/14/86LiberalizationExtension of limit on balances held by residents in Foreign Exchange Accounts for foreign exchange resulting from exports and foreign exchange purchased to make payments abroad.
Spain1/1/86LiberalizationNonresidents’ accounts simplified and their number reduced.
Developing countries
Bangladesh6/23/86LiberalizationForeign nationals and foreign firms allowed to maintain time deposits.
China, People’s Republic of1/86LiberalizationRegulations relating to joint venture companies implemented.
Egypt7/3/86LiberalizationLimits on use of balances in nonresidents’ accounts increased.
El Salvador1/22/86TighteningForeign currency accounts opened prior to 1/21/86 not allowed to be increased and must be liquidated or sold to banking system by 1/1/87.
India7/29/86LiberalizationNonresident Indian nationals allowed to transfer abroad up to Rs 1 million in one lump sum and Rs 250,000 annually of remaining balance thereafter; foreign nationals leaving India after retirement and foreign-born widows of Indian nationals allowed to transfer abroad up to Rs 500,000 in one lump sum and Rs 250,000 annually thereafter; persons who never were Indian residents allowed to transfer abroad up to Rs 500,000 in one lump sum of inheritance, legacies, and bequests, and Rs 250,000 annually thereafter.
Mexico9/11/86LiberalizationFinancial institutions in areas bordering the United States authorized to open dollar-denominated foreign accounts.
Portfolio Investment
Industrial countries
Australia11/5/86LiberalizationRelaxation of rules governing interest-bearing investments of foreign monetary authorities and international organizations in Australia.
Austria11/1/86LiberalizationFree purchase of quoted securities extended to cover all securities quoted on a recognized exchange.
Finland1/1/86LiberalizationLimit on loans by residents to nonresidents through nonresident markka accounts increased.
1/1/86LiberalizationResidents authorized to invest in foreign-listed securities.
1/1/86LiberalizationLimit on purchases of real estate abroad by residents increased.
6/16/86LiberalizationProhibition on sales of Finnish bonds and debentures to residents lifted if sales proceeds from Finnish bonds and debentures used for purchases.
6/16/86LiberalizationAuthorized banks and securities agencies permitted to sell foreign securities from their own portfolios to residents within limits.
France5/22/86EliminationDevise-titre system abolished.
Italy4/14/86LiberalizationResidents permitted to buy currency options from authorized banks for all transactions concerning goods and services.
4/14/86LiberalizationWith effect from 6/30/86, the amount domestic trust funds are allowed to invest abroad in exemption from compulsory non-interest-bearing deposit to be calculated with reference to their subscribed capital of the preceding three months, instead of the preceding six months.
8/8/86LiberalizationEasing of constraints on borrowing by Italian residents from abroad.
8/8/86LiberalizationThe non-interest-bearing deposits that Italian residents are required to hold as a counterpart for the acquisition of foreign securities reduced from 25 to 15 percent.
Japan4/1/86LiberalizationQualification standards for issuance of Euro-yen bonds relaxed.
4/1/86LiberalizationResidents allowed to issue currency conversion and floating rate Euro-yen bonds.
4/1/86LiberalizationMaximum maturity of Euro-yen CDs increased.
4/1/86Liberalization“Seasoning period” for sale of Euro-yen bonds to residents reduced.
Netherlands1/1/86LiberalizationDeregulation of capital markets, including removal of prior approval requirement for resident and nonresident bond transactions.
Norway8/5/86TighteningLimitations imposed on residents’ purchases of unquoted investment funds and equities.
10/3/86TighteningOpening of krone accounts by nonresidents limited to authorized foreign exchange banks.
Spain4/1/86LiberalizationNegotiations of financial loans by resident borrowers liberalized up to Ptas 750 million.
6/13/86

9/1/86
LiberalizationScope substantially expanded, and procedures simplified.
Sweden2/18/86LiberalizationSwedish parent companies freely permitted to guarantee borrowing by foreign subsidiaries.
3/25/86LiberalizationResidents permitted to switch existing portfolio investments into put and call options.
3/25/86LiberalizationResidents permitted to repay certain foreign loans ahead of schedule, on a voluntary basis.
Switzerland5/29/86EliminationRegulations on early redemption of foreign bonds and notes abolished.
5/29/86EliminationMinimum limit on issue of foreign bonds and notes abolished.
10/1/86LiberalizationStamp tax on new Eurobonds issued by foreigners reduced.
10/1/86LiberalizationSales of foreign currency-denominated bonds floated by Swiss corporation subsidiaries exempted from withholding tax; quotations of such issues in Switzerland permitted.
Developing countries
Argentina1/14/86LiberalizationAmortization of loans for investment projects which increase exports permitted as scheduled and under certain conditions through exchange market in which related export proceeds are repatriated.
Chile5/6/86EliminationElimination of restrictions on use of peso assets obtained under “debt-equity swap” arrangement.
India7/31/86LiberalizationCommercial banks allowed to remit dividends payable on equity dividends in cases in which nonresident interest in Indian companies paying dividends does not exceed 40 percent.
Netherlands Antilles11/1/86LiberalizationResidents allowed to deposit in accounts with nonresident banks and to invest in officially listed foreign securities, up to annual maxima; trust offices allowed to transfer shares in offshore companies to nonresidents without prior authorization.
Pakistan1/22/86LiberalizationPermission granted to public limited companies whose shares are quoted on stock exchange in Pakistan to transfer shares to nonresident Pakistanis.
5/7/86LiberalizationForeign banks operating in Pakistan permitted to underwrite share issues of companies incorporated in Pakistan.
Philippines7/24/86LiberalizationProgram for conversion of external debt into equity investments introduced.
Portugal1/1/86LiberalizationSubscription of securities issued by European Investment Bank or EC up to ECU 15 million not subject to restriction.
Direct Investment
Industrial countries
Australia7/28/86LiberalizationSuspension of 50 percent Australian participation requirement in foreign direct investment in manufacturing, rural properties, and real estate for development and for the services industry; lifting of prohibition on foreign acquisition of developed commercial properties, subject to a 50 percent Australian equity guideline.
Austria11/1/86LiberalizationLong-term borrowing by domestic enterprises from nonresidents liberalized.
France4/16/86EliminationRequirement for prior authorization for foreign investment exceeding F 15 million per year per investor eliminated.
5/22/86LiberalizationRestrictions on purchases of secondary residences abroad lifted.
7/23/86IntroductionForeign participation in newly privatized companies restricted to a maximum of 20 percent.
Spain9/1/86LiberalizationDirect investment restrictions substantially eased; prior authorization in most sectors of the economy no longer required.
Sweden4/14/86LiberalizationSwedish parent companies permitted to establish holding companies for their foreign direct investment.
6/24/86EliminationRequirement that certain Swedish direct investments abroad be financed by foreign loans abolished.
6/24/86LiberalizationAmount residents allowed to transfer abroad to purchase recreational dwelling raised.
United States10/2/86TighteningProhibition of investments by U.S. nationals in South Africa.
Developing countries
Botswana3/10/86LiberalizationAnnual limit on directors’ fees and dividend remittances to nonresidents increased.
China1/15/86LiberalizationForeign partners permitted to invest renminbi earnings in other joint ventures earning foreign exchange.
5/15/86LiberalizationChina-U.K. investment agreement signed.
10/11/86LiberalizationInvestment incentives for ventures and 100 percent wholly owned companies introduced.
Greece7/25/86LiberalizationDirect investments by non-EC residents in Greece given same treatment as those by EC residents.
Hungary1/1/86LiberalizationRegulations concerning joint ventures aimed at stimulating direct investment inflows modified.
Malaysia10/1/86LiberalizationNew guidelines on foreign equity ownership announced.
10/24/86LiberalizationPromotion of Investments Act, 1986 amended.
Netherlands Antilles11/1/86LiberalizationGeneral licenses to be issued to residents for transactions in domestic real estate with nonresidents.
Philippines8/4/86LiberalizationDebt/equity conversion scheme introduced.
11/7/86LiberalizationForeign direct investment in tourism-related projects liberalized.
Poland7/1/86LiberalizationJoint ventures between Polish firms and foreign partners permitted under certain conditions.
Portugal1/1/86LiberalizationAutomatic approval of new foreign direct investment by EC residents up to ECU 1.5 million.
São Tomé and Principe4/1/86LiberalizationA new foreign investment code was approved.
Syrian Arab Republic2/26/86LiberalizationNew incentives for foreign investment in agriculture introduced.
Venezuela9/29/86LiberalizationForeign investment code amended resulting in a substantial liberalization of the regime.
Other
Industrial countries
France11/18/86EliminationRequirement for exporters to maintain record of their foreign exchange transactions at banks abolished.
Netherlands10/1/86LiberalizationAbolition of licensing for forward transactions in foreign currencies against guilders through intermediaries other than banks.
Developing countries
Argentina1/12/86LiberalizationEarly cancellation of contracts with exchange rate guarantee of Central Bank permitted.
Pakistan6/24/86LiberalizationExchange rate guarantee scheme broadened to include debt service on loans contracted under Pay As You Earn (PAYE) Scheme.
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