RESTRICTED  
  
WT/TPR/S/437  
29 March  2023 
(23-0390) Page: 1/454 
Trade Policy Review Body  Original: English  
 
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
OECS -WTO  MEMBERS  
This report, prepared for the fourth  Trade Policy Review of the OECS -WTO Members, 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 the OECS -WTO Members on its 
trade policies and practices.  
 
Any technical questions arising from this report may be a ddressed to Angelo Silvy 
(tel. 022 739 5249), Xinyi Li  (tel. 022 739 5579), and Cristian Ugarte . 
 
Document WT/TP R/G/437 contains the policy statement submitted by the OECS -WTO Members.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 the OECS -WTO Members. This report 
was drafted in English.  WT/TPR/S/437 • OECS -WTO Members  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ .......................  5 
1   ECONOMIC ENVIRONMENT  ................................ ................................ .......................  11 
1.1   Recent economic developments  ................................ ................................ ................  11 
1.1.1   Real economy  ................................ ................................ ................................ ..... 11 
1.1.2   Fiscal policy  ................................ ................................ ................................ ........  13 
1.1.3   Monetary and exchange rate policy  ................................ ................................ ........  15 
1.1.4   Balance of payments  ................................ ................................ ............................  16 
1.2   Trends and patterns in merchandise and services trade  ................................ ................  18 
2   TRADE AND INVESTMENT REGIMES  ................................ ................................ ..........  21 
2.1   General framework  ................................ ................................ ................................ . 21 
2.2   Trade policy formulation  ................................ ................................ ..........................  21 
2.3   Trade agreements and arrangements  ................................ ................................ ........  22 
2.3.1   WTO ................................ ................................ ................................ ..................  22 
2.3.2   Regional and preferential agreements  ................................ ................................ ..... 25 
2.3.2.1    OECS  ................................ ................................ ................................ ..............  25 
2.3.2.2    CARICOM ................................ ................................ ................................ .........  26 
2.3.2.3    CARICOM bilateral agreements ................................ ................................ ............  28 
2.3.2.3.1    CARICOM -Colombia  ................................ ................................ ........................  28 
2.3.2.3.2    CARICOM -Costa Rica  ................................ ................................ ......................  28 
2.3.2.3.3    CARICOM -Cuba ................................ ................................ ..............................  28 
2.3.2.3.4    CARICOM -Dominican  Republic Free Trade Agreement  ................................ ..........  28 
2.3.2.3.5    CARICOM -Venezuela  ................................ ................................ .......................  28 
2.3.2.4    CARIFORUM -EU Economic Partnership Agreement (EPA)  ................................ .........  29 
2.3.2.5    CARIFORUM -UK EPA  ................................ ................................ ..........................  29 
2.3.2.6   Non-reciprocal agreements  ................................ ................................ .................  30 
2.4   Investment regime  ................................ ................................ ................................ . 30 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ .......................  32 
3.1   Measures directly affecting imports  ................................ ................................ ...........  32 
3.1.1   Customs procedures, valuation, and requirements  ................................ ....................  32 
3.1.2   Tariffs  ................................ ................................ ................................ ................  32 
3.1.2.1    Structure  ................................ ................................ ................................ .........  32 
3.1.2.2    MFN applied tariff  ................................ ................................ ..............................  33 
3.1.2.3    Tariff bindings  ................................ ................................ ................................ .. 34 
3.1.3   Tariff and tax concessions  ................................ ................................ .....................  35 
3.1.4   Tariff preferences  ................................ ................................ ................................  35 
3.1.5   Other charges affecting imports  ................................ ................................ .............  35 
3.1.6   Import prohibitions, restrictions, and licensing  ................................ .........................  36 
3.1.7   Contingency measures  ................................ ................................ .........................  36 
3.2   Measures directly affecting exports  ................................ ................................ ...........  37 WT/TPR/S/437 • OECS -WTO Members  
 
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  3.2.1   Export procedures, export prohibitions and export taxes  ................................ ............  37 
3.2.2   Export subsidies, financing support, and promotion  ................................ ..................  37 
3.3   Measures affecting production and trade  ................................ ................................ .... 38 
3.3.1   Incentives  ................................ ................................ ................................ ..........  38 
3.3.2   Standards and other technical requirements  ................................ ............................  39 
3.3.3   Sanitary and phytosanitary measures  ................................ ................................ ..... 40 
3.3.4   Competition policy and price controls  ................................ ................................ ...... 41 
3.3.5   State trading and state -owned enterprises  ................................ ..............................  41 
3.3.6   Government procurement  ................................ ................................ .....................  41 
3.3.7   Intellectual property rights  ................................ ................................ ....................  42 
4   TRADE POLICIES BY SECTOR  ................................ ................................ ....................  44 
4.1   Agriculture and fisheries  ................................ ................................ ..........................  44 
4.2   Manufacturing  ................................ ................................ ................................ ........  45 
4.3   Services ................................ ................................ ................................ ................  46 
4.3.1   GATS commitments  ................................ ................................ .............................  46 
4.3.2   Financial services  ................................ ................................ ................................ . 47 
4.3.2.1    Overview  ................................ ................................ ................................ .........  47 
4.3.2.2    Banking  ................................ ................................ ................................ ...........  48 
4.3.2.2.1    Onshore banking  ................................ ................................ ............................  48 
4.3.2.2.2    Offshore banking  ................................ ................................ ............................  49 
4.3.2.3    Insurance  ................................ ................................ ................................ ........  50 
4.3.2.4    Securities  ................................ ................................ ................................ ........  50 
4.3.3   Telecommunications  ................................ ................................ .............................  51 
4.3.4   Transport  ................................ ................................ ................................ ...........  55 
4.3.4.1    Air transport  ................................ ................................ ................................ ..... 55 
4.3.4.2    Maritime transport  ................................ ................................ ............................  56 
4.3.5   Tourism  ................................ ................................ ................................ ..............  57 
ANNEX 1 : ANTIGUA AND BARBUDA  ................................ ................................ ...............  59 
ANNEX 2 : DOMINICA  ................................ ................................ ................................ ... 107 
ANNEX 3 : GRENADA  ................................ ................................ ................................ .... 168 
ANNEX 4 : SAINT KITTS AND NEVIS  ................................ ................................ .............  218 
ANNEX 5 : SAINT LUCIA  ................................ ................................ ...............................  303 
ANNEX 6 : SAINT VINCENT AND THE GRENADINES  ................................ ......................  411 
 
CHARTS  
 
Chart  1.1 Merchandise trade by main SITC sections, 2014 and 2021  ................................ ..... 18 
 
TABLES  
 
Table  1.1 OECS -WTO Members, selected economic indicators, 2014 -21 ................................ . 11 WT/TPR/S/437 • OECS -WTO Members  
 
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  Table  1.2 OECS -WTO Members' Central Government fiscal accounts, 2014 -21 ........................  14 
Table  1.3 ECCU balance of payments, 2014 -21 ................................ ................................ .. 16 
Table  1.4 ECCU visible trade statistics, 2014 -21 ................................ ................................ . 18 
Table  1.5 ECCU trade in services, 2014 -21 ................................ ................................ ........  19 
Table  2.1 Ratification and imple mentation of the TFA, 2022  ................................ .................  22 
Table  2.2 Main areas where legal or regulatory amendments are needed to comply with  
WTO Agreement provisions, 2022  ................................ ................................ ....................  23 
Table  2.3 Notifications to the WTO, February 2014 to June 2022  ................................ ...........  23 
Table  2.4 Domestic Support (Green Box) – Saint Vincent and the Grenadines,  2015-19 ...........  24 
Table  2.5 International Business Companies legislation amendments, 2022  ............................  31 
Table  3.1 OECS summary tariff analysis, 2022  ................................ ................................ ... 33 
Table  3.2 OECS -WTO Members' standards bureaux, 2022  ................................ ....................  39 
Table  4.1 Sectors in which GATS specific com mitments were made  ................................ ....... 46 
Table  4.2 Institutions licensed under the Banking Act in the OECS members, 2022  ..................  49 
Table  4.3 Other financial institutions in the OECS -WTO Members, 2022  ................................ . 49 
Table  4.4 Telecommunications indicators, ECTEL Area, 2015 -21 ................................ ...........  51 
Table  4.5 OECS ECTEL members, status of selected approved regulations, 2022  .....................  53 
Table  4.6 Main differences 2010 PCP, 2015 PCP, and 2022 RPRR  ................................ ..........  54 
Table  4.7 Tourism statistics, 2015 -21 ................................ ................................ ...............  57 
 WT/TPR/S/437 • OECS -WTO Members  
 
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  SUMMARY  
1. The six Organisation of Eastern Caribbean States ( OECS )-WTO Members (Antigua and 
Barbuda, Dominica, Grenada, Saint Kitts and Nevis, Saint  Lucia, and Saint  Vincent and the 
Grenadines) are small and vulnerable economies with a narrow economic base. Per capita GDP 
ranges from about USD  8,000 in Dominica to nearly USD 20,000  in Antigua and Barbuda, and 
Saint Kitts and Nevis.  The combined GDP of the OECS -WTO Members was around USD  6.6 billion  in 
2021. All six OECS -WTO Members are highly reliant on merchandise imports, and are frequently 
affected by natural disasters,  especially hurricanes. Services, particularly tourism, and to a lesser 
extent financial and government services, are a major contributor to both GDP and employment. 
Construction also plays a significant role as a contributor to GDP. Several of the OECS -WTO Members 
have become increasingly dependent on income from their Citizenship by Investment Programs  
(CBI) , which grant citizenship in exchange for investment over certain thresholds.  
2. In general, their narrow economic base, their susceptibility to natural disasters, and their high 
reliance on imports make  the OECS -WTO Members particularly vulnerable to exogenous shocks. In 
this respect, the y were significantly affected by the COVID -19 pandemic , which halted all tourism 
for certain periods of time and led to  real GDP contractions of up to 24%. In fact, after increasing 
steadily between 2013 to 2019, the real GDP of the OECS -WTO Members sharply contracted by 17% 
on average in 2020, due mainly to a decline in tourist arrivals. The OECS economies are currently 
in the process of recovery, but the pace of recovery has varied across countries, as tourism is yet 
to reach pre -pandemic levels. Transportation costs are high in all OECS States, and have increased 
since the pandemic, as several air carriers have reduced s ervices or altogether stopped servicing 
the islands. The OECS -WTO Members are all facing the increasing costs of energy and have electricity 
supply problems, which translates to occasional electricity cuts . These adverse factors result in a 
high cost of do ing business.  
3. All OECS -WTO Members sought fiscal consolidation during the review period, with a goal to 
achieve primary surpluses in their Central Government accounts. Reform measures included 
replacing some taxes, increasing the rates and coverage of othe rs, trimming expenditure, in 
particular current expenditure, rationalizing fuel prices, and debt restructuring. Although progress 
was achieved in the period until 2019, goals had to be revised due to the COVID -19 pandemic. As a 
result of the increase in sp ending implied by the COVID -19 stimulus packages and the economic 
contraction caused by the collapse of tourism, the debt -to-GDP ratio reversed its declining trend and 
increased by several  percentage points, to some 85.3% of GDP in 2021, well above the 60%  of GDP 
debt ceiling set in the consolidation programmes. Although all the OECS -WTO Members registered 
a fiscal deficit in 2020 (5.7% of GDP overall) and 2021 (3.5% of GDP), the impact varied across 
countries.  
4. The OECS -WTO Members have a common monetary an d exchange rate policy. They are all 
members of the Eastern Caribbean Currency Union (ECCU), which also includes Anguilla and 
Montserrat. The Eastern Caribbean Central Bank (ECCB), based in S aint Kitts, is the monetary 
authority for the ECCU. The ECCB has responsibility for monetary, credit, and exchange rate policies 
across the OECS, as well as for the supervision of the banking system. The ECCB's policy is anchored 
on maintaining monetary stability through a fixed exchange rate regime, which pegs the 
East Caribbean  dollar (XCD) to the US dollar (USD) at a rate of XCD  2.70 per USD.  
5. The OECS -WTO Members all posted current account of the balance -of-payments deficits  
during the review period, which led to an aggregated deficit of some USD  1 billion in 2021  (some 
16% of GDP), more than double the 2019 level. The merchandise trade deficit is structural, as the 
OECS -WTO Members are highly dependent on merchandise imports, while the value of goods exports 
is low. In 2021, the overall merchandise trade deficit f or the OECS -WTO Members was equivalent to 
around one third of their GDP. In contrast, they traditionally have posted a services account surplus, 
fuelled by tourism -related receipts. These surpluses have only partially offset the deficit accrued on 
the merc handise trade account. Merchandise exports comprise mainly food and live animals, 
machinery and transport equipment, and mineral fuels. OECS merchandise imports are a very broad 
range of products, including mineral fuels, food and live animals, and machine ry and transport 
equipment. The main trading partners are the United  States, other C aribbean Community and 
Common Market (CARICOM)  countries, and the United  Kingdom. The trade in services balance 
posted a surplus of USD  1.2 billion in 2021. Travel services  account for the bulk of the surplus.  WT/TPR/S/437 • OECS -WTO Members  
 
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  6. Antigua and Barbuda, Dominica, Saint  Lucia, and Saint  Vincent and the Grenadines are 
original Members of the WTO. Grenada and Saint  Kitts and Nevis became WTO Members in 1996. 
The OECS -WTO Members belong to the followi ng negotiating groups:  ACP, G-90, Small Vulnerable 
Economies (SVEs) -NAMA , G-33, "W52" sponsors, and SVEs -rules (Dominica, Saint  Lucia, and 
Saint Vincent and the Grenadines). As members of the SVEs group, the OECS -WTO Members have 
highlighted the need for n egotiations to take account of the consequences of preference erosion for 
the region. The OECS -WTO Members grant at least MFN treatment to all of their trading partners. 
They are not part ies or observer s to any WTO plurilateral agreement and have not subsc ribed the 
Information Technology Agreement and its expansion. During the period under review, the OECS 
members ratified the Trade Facilitation Agreement  (TFA) . The degree of implementation of 
commitments in the three categories under the TFA varies across countries. Notifications to the WTO 
remain an issue for OECS -WTO Members. Problems with the implementation of WTO  Agreements 
and with respect to notification compliance may be attributable to a lack of technical capacity or 
human resources and , more recent ly, to the effects of the COVID -19 pandemic.  
7. The OECS was established by the Treaty of Basseterre in 1981, with Antigua and Barbuda, 
Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint  Lucia, and Saint Vincent and the 
Grenadines as members; Anguilla and the British Virgin Islands are associate members. During the 
period under review, Martinique become an associate member  in 2015 and Guadeloupe in 2019 . The 
process of integration among OECS States was strengthened by the signature of the Revis ed Treaty 
of Basseterre (RTB) Establishing the OECS Economic Union, which entered into force on 
21 January  2011, but is still a work in progress. The OECS Economic Union, when completed, will 
create a single financial and economic space within which goods,  services, people, and capital move 
freely ; monetary and fiscal policies are harmonized ; and members continue to adopt a common 
approach to trade, health, education, and the environment, as well as to sectoral development in 
agriculture, tourism , and energ y. The OECS Authority of Heads of Government is the highest 
policy -making organ of the OECS. There are five main areas agreed for the exercise of exclusive 
power by the Authority: common market and customs union; monetary policy; trade policy; 
maritime jur isdiction and maritime boundaries; and civil aviation. The OECS Commission, based in 
Saint Lucia, provides support and coordination services; it also oversees the operations of the OECS 
Technical Mission in Geneva, which was set up in 2005 and acts as the OECS -WTO Members' 
representative to the WTO. There are also three OECS institutions: the E CCB, the Eastern Caribbean 
Supreme Court, and the Eastern Caribbean Civil Aviation Authority.  
8. The six OECS -WTO Members are founding members of C ARICOM . The Revised Tr eaty of 
Chaguaramas (RTC) established the CARICOM Single Market and Economy (CSME), which aims at 
creating a single market and economy among CARICOM member States through the removal of all 
barriers to the free movement of factors of production, including fiscal, legal, physical, technical , 
and administrative restrictions. The consolidation of the CSME is still work in progress.  
9. Trade policy in each of the OECS -WTO Members is designed and implemented at three levels: 
national, subregional (OECS), and region al (CARICOM). At the CARICOM level, the RTC contains the 
principal institutional arrangements with respect to common trade policies, such as the Common 
External Tariff (CET), and provides guidelines with respect to other policies which need, however, to 
be incorporated in the different national legislations. National trade policies are developed generally 
in close consultation with other OECS and CARICOM member countries. This frequently leads to the 
adoption of common trade policy positions. Trade policy i mplementation within and among OECS 
members is subject to severe human resource limitations.  
10. Through their participation in CARICOM, the OECS -WTO Members have bilateral trade 
agreements with five Latin American countries: the Bolivarian Republic of Venezue la, Colombia, the 
Dominican  Republic, and Costa  Rica, and a trade and economic cooperation agreement with Cuba. 
These agreements involve no commitments for the OECS -WTO Members. They also have bilateral 
agreements with the European  Union and the United  Kingdom. The Economic Partnership Agreement 
(EPA) between the European  Union and 15 Caribbean States in the CARIFORUM group, including the 
OECS -WTO Members, was signed in 2008. It provides duty - and quota -free access to the EU market 
for CARIFORUM exports exc ept for arms and ammunition. CARIFORUM States committed to gradual 
reductions in their tariffs over a period of up to 25 years, excluding certain sensitive products. A 
similar EPA with the United  Kingdom came into force on 1 January 2021. The OECS -WTO Memb ers 
also benefit from the Caribbean Basin Initiative (CBI) and Caribbean -Canada  Trade Agreement  
(CARIBCAN), both of which grant non -reciprocal preferences.  WT/TPR/S/437 • OECS -WTO Members  
 
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  11. The OECS -WTO Members' foreign investment regime changed in five of the six countries 
before or durin g the review period. Antigua and Barbuda repealed its Fiscal Incentives Act, ahead of 
the WTO -agreed deadline. Four of the other OECS -WTO Members amended their Fiscal Incentives 
Acts, to eliminate incentives contingent upon export performance (Dominica, Gr enada, and 
Saint Kitts and Nevis) or to extend the scope of incentives to services (Saint  Lucia). Saint  Vincent 
and the Grenadines is in the process of revising the Act.  
12. In general terms, foreign investment receives national treatment in all OECS -WTO Members, 
with the main exception of the requirements for obtaining alien landholding licences, which are 
related to limitations in land availability for commercial purposes, as well as to the need to rationalize 
land use and enable nationals to afford property while avoiding speculation by foreigners. During 
the period under review , the OECS -WTO Members amended their International Business Companies 
(IBCs) legislation to maintain accounting information in line with international standards. As from 
1 January 2022, the preferential tax treatment for IBCs has been repealed. IBCs are now taxed at 
the general tax rate.  
13. Customs procedures are similar across the OECS -WTO Members. A Customs entry or 
declaration is required for all consignments imported into the OECS -WTO Members. All of them also 
require an invoice, a bill of lading or an airway bill, a certificate of origin for imports from CARICOM 
countries and, when needed, import licences and SPS certificates. Invoices, air waybills/bills of 
lading, and a work sheet on the classification and value of the goods can be uploaded electronically. 
The use of a customs broker is not mandatory in any OECS -WTO Member, except Dominica. The 
OECS -WTO Members updated and modernized  their customs legislation during the period  under 
review. They all currently use the ASYCUDA World system for customs processing and clearance. 
Importers need to register with the customs authorities to access the system. The OECS -WTO 
Members have made considerable progress during the period under review as regards the 
implementation of trade facilitation measures. The respective customs offices run an operational risk 
management system. Single Windows for imports are, however, not yet in place and there are 
currently no authorized economic operator s' schemes. All the OECS -WTO Members use the hierarchy 
of valuation methodology set out in the WTO Customs Valuation Agreement; according to the 
authorities, the transaction value is used for valuation in some 90% -95% of imports; the main 
exceptions are related to imports of used vehicles, where recourse to list of prices is frequently 
made.  
14. In 2022, the OECS -WTO Members applied tariff schedules based on different revisions of the 
HS nomenclature. As a consequence, the number of tariff lines varies accordin g to the country. 
Nearly all tariffs are applied on an ad valorem  basis, with very few exceptions. The OECS -WTO 
Members apply the CARICOM C ET with national exceptions. The average applied MFN tariff rate for 
the OECS -WTO Members in 2022 was 11.7%, up from 11% at the time of  the previous Review. 
Average rates vary across countries, partly reflecting the different rates applied in their lists of 
exceptions to the CET. Individual national applied MFN rates thus range between 10.7% in 
Saint Lucia and 12.8% in Dominica. The average applied MFN rate for agricultural products for the 
six OECS -WTO Members in 2022 was 20.5% , while t he average MFN rate for non -agricultural 
products was  9.9%. National MFN tariff averages for agricultural products ranged from 8.6% in 
Saint Lucia to 10.6% in Antigua and Barbuda. Tariff bindings in the OECS -WTO Members vary across 
countries ; however, a gricultural tariffs were generally bound at a ceiling rate of 100%, with some 
exceptions, generally bound at rates above 100%. In the case o f non -agricultural goods, most 
OECS -WTO Members bound the majority of tariff lines at a ceiling rate of 50%, with the exception 
of Saint Kitts and Nevis, where they were bound at 70%. The scope of bindings also varies across 
countr ies: while Grenada has bo und all its tariff lines, the other OECS -WTO Members have bound 
between 91.5% (Dominica) and 99.7% of the total (Saint  Vincent and the Grenadines).  
15. Duty-free access is granted by the OECS -WTO Members to imports from other CARICOM 
countries, provided these imports meet the CARICOM rules of origin criteria and barring the 
exceptions provided by Article  164 of the RTC, introduced in 2006 . Article  164 allows the 
less-developed States, which includes all OECS -WTO Members, to suspend CARICOM origin 
treatment impo rts eligible on grounds of production in one or more less -developed countries. This 
implies adopting rates different than the CET for these products. The third  edition of the Article  164 
regime, which started in January 2020, covers 14 product groups acros s 39 tariff lines, mainly wheat 
or meslin flour; aerated waters and beverages; malt; beer; stout; prepared complete animal feed; 
oxygen and carbon dioxide; acetylene; candles of paraffin wax; solar water heaters; paint and 
varnishes; furniture; curry powde r; and pasta. Under t he regime , a 100% MFN tariff is applied on  WT/TPR/S/437 • OECS -WTO Members  
 
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  most of the products on the list for 10 years and for 5 years for curry powder and pasta ; imports 
from CARICOM more -developed countries are subject to a tariff rate of 70% . Some OECS -WTO 
Members have applied the regime since 2020, e.g. Saint  Lucia, but with some exceptions. Others 
have only partially implemented the regime; Dominica and Saint Kitts and Nevis have delayed 
implementation. The OECS -WTO Members grant preferential access to the ir markets to most EU and 
UK products under the respective EPAs.  
16. OECS -WTO Members rely heavily on indirect taxes for revenue purposes. Given the small scale 
of domestic production, these taxes fall mainly on imports. Five of the countries (Dominica, Grenad a, 
Saint Kitts and Nevis, Saint  Lucia, and Saint Vincent and the Grenadines) apply a Customs Service 
Charge (CSC), which varies from 3% to 6% and is levied on all imports, including those from other 
CARICOM countries. Certain goods are exempt from the CSC in all countries. Antigua and Barbuda 
applies a revenue recovery charge (RRC) at a rate of  10% on all imports as well as on domestically 
produced goods. All OECS -WTO Members except Antigua and Barbuda  apply a value  added tax (VAT) 
on goods and services; ra tes across countries vary : in Saint Lucia it is 12.5%; in Dominica, 15%; in 
Grenada and in Saint Vincent and the Grenadines , 16%; and in  Saint Kitts and Nevis , 17%. Antigua 
and Barbuda appl ies a sales tax at a rate of 15% on goods and services. In all OECS -WTO Members, 
some goods and services are VAT exempt or subject to a rate lower than the general rate.  
17. All the OECS -WTO Members maintain import prohibitions and licensing requirements. The 
prohibitions are for health, safety, and security concerns. Import licensing requirements for certain 
products are also in place for the same reasons, although some licences are required for economic 
reasons, such as the protection of infant industries or for balance -of-payments purposes. Import 
licensing schemes may be t ied to regional integration ( e.g. products covered by Article  164 of the 
Revised CARICOM Treaty), such that some products are subject to licensing only when imported 
from outside the CARICOM region or, in some cases, from outside the OECS subregion. Most l icences, 
other than those imposed for health and safety reasons, are granted automatically. Non -automatic 
licences are also required for some agricultural and agri -business goods.  
18. During the period under review, there were no changes to the anti -dumping an d countervailing 
legislation in any of the OECS -WTO Members, which in most cases pre -dates their independence . 
None of the OECS -WTO Members has an authority devoted to initiat ing and conduct ing 
investigation s, and thus none has taken anti-dumping  or countervailing duty  actions during the 
review period. None of the OECS -WTO Members has national safeguards legislation.  
19. Antigua and Barbuda, Grenada, Saint  Lucia, and Saint  Vincent and the Grenadines have 
legislation that provides for the o peration of free zones. However, in the case of Grenada and of 
Saint Vincent and the Grenadines these zones are not operational. Enterprises operating in free 
zones are exempt from customs duty and other taxes on imports of goods used to construct and 
operate enterprises within the zone. Enterprises also benefit from tax benefits for a certain period, 
depending on the size of the investment and the number of employees. The OECS -WTO Members 
do not have national programmes for export credit, insurance , or gua rantees.  
20. All the OECS -WTO Members have a bureau of standards. During the period under review, 
Antigua and Barbuda, Saint  Kitts and Nevis, and Saint  Lucia adopted new Standards Acts. Antigua 
and Barbuda and Grenada also passed legislation on metrology. The OECS national standards bodies 
are similar with respect to their structure, mandate, and the procedures required for the adoption 
of technical regulations, which are developed in the same manner as standards. OECS countries 
generally favour the adoption or  adaptation of international or regional standards as the basis for 
their technical regulations, which are notified to the WTO prior to implementation, with 60 days for 
comments. The relevant minister then publishes the technical regulation or standard in the 
Government Gazette. Standards and technical regulations are normally reviewed and updated every 
five years by the respective standard bodies. Grenada, Saint  Kitts and Nevis, and Saint  Lucia also 
undertake certification. During the period under review, Dominica, Grenada, Saint  Kitts and Nevis , 
and Saint  Lucia made notifications to the WTO Committee on Technical Barriers to Trade.  No 
concerns have been raised in the WTO regarding measures taken or notifications made by any of 
the OECS -WTO Members.  
21. The OEC S-WTO Members did not make any notifications to the WTO Committee on Sanitary 
and Phytosanitary Measures during the review period. They do not have an inventory of SPS 
measures. Identifying and notifying existing SPS measures appears to be a challenge that  requires 
technical assistance and no progress in this respect has been made since the previous Review. WT/TPR/S/437 • OECS -WTO Members  
 
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  Imports of animals and plants and their products are subject to document inspection , and any 
product sampling may be carried out at the border.  No conce rns have been raised in the WTO 
regarding SPS measures taken by any of the OECS -WTO Members.  
22. None of the OECS -WTO Members is a party to the WTO  Agreement on Government 
Procurement (GPA). During the period under review, Antigua and Barbuda, Grenada, Saint  Vincent 
and the Grenadines , and Saint  Lucia passed new legislation or regulations on government 
procurement. The respective Procurements Acts generally set out principles guiding the selection 
among bids, typical periods involved in the procurement process,  publication and other transparency 
requirements, appeal and review procedures, and sanctions. The laws and regulations of the 
OECS -WTO Members generally provide for both public and selective tendering. Tendering is 
generally decentralized for acquisitions  up to certain thresholds and centralized via the Ministry of 
Finance for tenders above those thresholds. Tenders are generally allocated choosing the bid with 
the lowest price. Other than in Dominica, which grants a 20% margin for domestic suppliers, loca l 
suppliers or those from CARICOM are not granted any preferences.  
23. During the period under review, some of the OECS -WTO Members made amendments to their 
intellectual property rights (IPR) legislations. Antigua and Barbuda enacted a new Patent Act in 2018, 
as well as its implementing Regulations. Saint  Vincent and the Grenadines passed a new Act on plant 
varieties protection. Legislation on geographical indications previously enacted in Saint  Kitts and 
Nevis also entered into force during the review period. Regulations for copyright were implemented 
in 2018. The OECS -WTO Members have similar copyright and patent laws. They are all in force, with 
the exception of Saint  Lucia's Patent Act, which is awaiting implementing regulations. There is no 
specific legisla tion for the protection of undisclosed information in any of the OECS -WTO Members. 
All the OECS -WTO Members have notified their IPR legislation to the WTO.  
24. The contribution of the agriculture sector to GDP has been shrinking through the years in the 
OECS -WTO Members. The sector faces challenges as the OECS -WTO Members are small island 
economies, where resources of land and water are scarce. Competitiveness is also affected by the 
fact that agriculture is dominated by small farm operations, making it difficu lt to achieve economies 
of scale. The sector is susceptible to exogenous shocks such as natural disasters and global market 
fluctuations.  
25. All OECS -WTO Members are servi ce-oriented ec onomies. Services contributed to some 65% 
of GDP and over three quarters o f gross value added (GVA) in 2021. They made GATS commitments 
in 4 to 6 of the 12 main service areas, and in 8 to 32 of the 160 subsectors. All OECS -WTO Members 
made commitments in financial services , tourism and travel -related services , and recreational a nd 
sporting services.  
26. Onshore (domestic) banking activities are supervised and regulated by the ECCB in the ECCU, 
including in the OECS -WTO Members. The domestic banking sector across all the OECS is open to 
foreign investment. No restrictions or limitations are placed on foreign investment , and 
foreign -owned banks may establish subsidiaries or branches in each of the OECS -WTO Members, as 
in fact they do. Although the  OECS -WTO Members have the same regulator and the same banking 
laws, banking licen ces are specific to the country in which they are granted. There is no unified 
banking market at the OECS level. Banks, both locally incorporated and branches, of foreign financial 
institutions must have a place of business within the OECS member State in which they are licensed. 
There are no residency or citizenship requirements for bank managers or directors. There are no 
foreign exchange controls in the OECS -WTO Members. Credit unions play an increasingly important 
role in the domestic financial sector i n the OECS  members, especially since several commercial banks 
have stopped operations in the region during the review period.  
27. Offshore banks may conduct banking business only in foreign currencies and are generally 
precluded from doing it with citizens in the country in which they are registered. Offshore companies 
benefit from various tax exemptions. Licensees must have a physical presence as well as a locally 
residing authorized agent. Some benefits have been trimmed in recent years. In 2022, there were 
39 international banks in the OECS -WTO Members. Of these, 17 were incorporated in Dominica. The 
international financial services sector is governed by the Offshore Banking Acts in the respective 
countries and is primarily the responsibility of t he national regulators.  WT/TPR/S/437 • OECS -WTO Members  
 
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  28. The insurance business is also divided into onshore and offshore activities in the 
OECS -WTO Members. There are no limitations on foreign investment in any of the OECS countries 
with respect to onshore insurance; most insurance compa nies across the region are foreign -owned. 
Foreign insurance companies (parent or subsidiary) are allowed to establish as a branch or as a 
locally incorporated subsidiary. There are no citizenship requirements for managers or directors. 
There is no legal re striction on companies located abroad from offering insurance coverage to locals. 
Capital requirements vary according to the origin of the insurance company and are higher for foreign 
companies. As is the case for banking, legislation regarding insurance i s relatively uniform across 
the OECS -WTO Members. Offshore insurance services are regulated by specific legislation  in each 
country . These acts prescribe the conditions for the operation of offshore insurance companies , 
which are only allowed to manage ris ks and premiums originating outside the jurisdiction where they 
are established. Other requirements include the local incorporation of companies, the non -residence 
of shareholders, and a minimum paid -up capital.  
29. The Eastern Caribbean Telecommunications Aut hority (ECTEL) acts as an advisory body at the 
subregional level and coordinates sectoral policies and harmonizes standards and practices among 
the five Contracting States, which are  Dominica , Grenada , Saint Kitts and Nevis , Saint Lucia, and 
Saint Vincent and the Grenadines. ECTEL also promote s market liberalization and competition. The 
respective National Telecommunications Regulatory Commissions (NTRCs) are the national 
authorities for ECTEL Contracting States. During the review period, telecommunications  in the 
OECS -WTO Members has become increasingly oriented to the mobile and broadband segments of 
the market.  There  is no restriction to foreign capital participation in telecommunications services in 
the OECS -WTO Members, although specific capital require ments may apply. Licence s are granted by  
the national regulator s. Interconnection agreements must be approved by national regulators. For 
networks operated in the ECTEL area, the maximum interconnection rates are set by ECTEL . 
30. The six OECS -WTO Members are signatories to the CARICOM Multilateral Air Service 
Agreement (CARICOM MASA), which entered into force on 17  August  2020 with an aim of creating 
a single air transport market within CARICOM. In their bilateral agreements, the OECS countries 
may designate a ny CARICOM -based carrier as its national carrier when enforcing the agreements. 
Intraregional connectivity remains poor and has actually deteriorated as a consequence of the virtual 
demise of the regional carrier LIAT, which compounded the negative effects  of the pandemic. The 
Eastern Caribbean Civil Aviation Authority (ECCAA)  is the sectoral regulator for civil aviation in the 
OECS  and is responsible for overseeing aviation safety and security matters  and for  certifying 
operators and equipment airworthines s. The major airports in the OECS are owned by the respective 
Governments; they are managed and operated by public entities.  
31. Maritime transport policy continues to be formulated and implemented at the national level. 
Generally, to fly a national flag, the registered vessels must be substantially owned by 
OECS/CARICOM member state nationals (natural or legal persons). Vessel registration by non -locally 
incorporated bodies must be authorized by the minister responsible for maritime transport; the 
company must be established in and have its principal place of business in an OECS/CARICOM 
territory, with majority ownership  by OECS/CARICOM citizens. Dominica has relaxed this regime and 
allows for foreign corporation vessels to fly the Dominican flag. Cabotage is not restricted in 
Saint Kitts and Nevis, nor in Dominica; it is not allowed in Antigua and Barbuda , Grenada , and 
Saint Vincent and the Grenadines. Cabotage in Saint  Lucia requires a special permit.  Commercial 
ports in the subregion are owned by the respective Governments.  
32. Tourism is the major foreign exchange earner for the OECS -WTO Members. The sector 
recorded a 17% increase in total visitor arrivals from 2015 to 2019. The COVID -19 pandemic caused 
a plunge in tourist arrivals due to lockdowns and the interruption of air travel. The number of tourist 
arrivals further declined in 2021. The United  States and the United  Kingdom are the largest markets 
for tourism exports. Tourism policy is formulated at  the OECS country level; marketing and 
promotion activities are carried out by national tourism authorities or boards. Licences to run hotels 
and guest houses are granted by the sectoral regulator or the minister responsible for 
finance/tourism. All OECS -WTO Members offer fiscal incentives for hotel development, including 
exemptions from customs duties and other taxes on imports, as well as corporate income tax 
exemptions. The maximum period for corporate income tax exemptions varies from 10 to 25 years 
depending on the country, and longer tax breaks are generally available for larger projects.  WT/TPR/S/437 • OECS -WTO Members  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Recent economic developments  
1.1.1   Real economy  
1.1.  The six OECS -WTO Members are Antigua and Barbuda, Dominica, Grenada, Saint  Kitts and 
Nevis, Saint  Lucia, and Saint  Vincent and the Grenadines. They are six  island States located in the 
Lesser Antilles; four of them are part of the Windward Islands (Dominica, Grenada, Saint  Lucia, and 
Saint Vincent  and the Grenadines ) and two are part of the  Leeward Islands (Antigua and Barbuda ). 
The OECS -WTO Members are small and vulnerable economies with populations ranging from about 
53,000 (Saint  Kitts and Nevis) to about 184,000 (Saint  Lucia); they all have a narrow economic 
base, although their level of  development varies and there are significant differences regarding their 
per c apita income.  While Saint  Kitts and Nevis and Antigua and Barbuda are considered by the 
World  Bank as high -income countries, with per capita GDP of about USD  20,000, the other f our 
OECS -WTO Members are classified as upper middle -income countries1, with GDP per capita ranging 
from about USD  8,000 (Dominica and Saint  Vincent and the Grenadines) to nearly USD  11,000 
(Saint  Lucia). The GDP of the entire OECS in 2021 was around USD 6.6 billion . 
1.2.  All six OECS -WTO Members have in common that they are highly reliant on merchandise 
imports, and are frequently affected by natural disasters, especially hurricanes. Services , particularly 
tourism , are a major contributor to both GDP and e mployment, although the importance of the latter 
as a contributor to GDP varies. The financial sector and government services are also significant 
contributors to GDP and employment, also at varying degrees across the islands (Table  1.1). 
Construction is another  significant contributor to GDP. Despite these similarities, the OECS -WTO 
Members ' economic structures also present differences: while Antigua  and Barbuda is highly 
dependent on tourism and other services, S aint Kitts and Nevis and Dominica have beco me 
increasingly dependent on income from their Citizenship by Investment program mes, which grant 
citizenship in exchange for investment over certain thresholds. S aint Kitts and Nevis has a small 
manufacturing sector of electronic components for the U S market, while Dominica and Saint  Lucia 
are producer s of soap and beverages, as well as agricultural products.  
1.3.  In general, the ir narrow economic base, their susceptibility to natural disasters, and their high 
reliance on imports make the OECS -WTO Members partic ularly vulnerable to exogenous shocks. In 
this respect, the OECS -WTO Members were significantly affected by the COVID -19 pandemic , which 
halted all tourism for certain periods of time and led to real GDP contractions of up to 2 4%. In fact, 
after increasing  by more than 30% between 2013 to 2019, real GDP for the OECS -WTO Members 
sharply contract ed by 17% on average in 2020 (Table  1.1). The contraction in GDP was due mainly 
to a decline in the tourism sector. The economies are currently in the process of reco very, GDP grew 
by 6.2% on average in 2021, but the pace of recovery has varied across countries, as tourism is yet 
to reach pre -pandemic levels. Transportation costs are high in all the OECS -WTO Members, and have 
increased since the pandemic, as several ca rriers have reduced services or altogether stopped 
servicing the islands. Intraregional connectivity is thus a major challenge. Al l OECS -WTO Members 
are facing the effects of increasing energy costs and have electricity supply problems, which 
translates to  occasional electricity cuts . These adverse factors result in a high cost of doing business.  
Table  1.1 OECS -WTO Members, selected economic indicators, 2014 -21 
 
2014  2015  2016  2017  2018  2019  2020  2021  
GDP (current 
XCD million)  16,619  17,348  18,258  18,950  19,833  20,587  16,715  17,914  
GDP (current 
USD million)  6,155  6,425  6,762  7,018  7,346  7,625  6,191  6,635  
Real GDP growth 
(% change)  3.6 1.9 4.0 2.0 3.8 1.8 -17.6 6.2 
GDP per capita (USD)  10,258  10,623  11,105  11,487  11,947  12,273  9,888  10,532  
GDP by economic activity (% of current GDP)  
Agriculture, livestock 
and forestry  3.6 3.7 3.8 3.2 3.0 3.1 3.8 3.8 
Crops  2.8 3.0 3.0 2.5 2.4 2.4 3.1 3.1 
Bananas  0.2 0.3 0.3 0.2 0.1 0.2 0.2 0.5 
Nutmeg  0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 
Sugar  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 
1 World Bank. Viewed at: https://data.worldbank.org/country/ . WT/TPR/S/437 • OECS -WTO Members  
 
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2014  2015  2016  2017  2018  2019  2020  2021  
Other crops 1.9 2.2 2.1 1.7 1.6 1.6 1.9 1.9 
Livestock  0.5 0.5 0.5 0.5 0.5 0.5 0.6 0.5 
Forestry  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Fishing  0.6 0.6 0.6 0.6 0.6 0.6 0.7 0.7 
Mining & quarrying  0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.4 
Manufacturing  3.7 3.8 3.7 3.4 3.4 3.1 3.3 3.3 
Sugar  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  2.4 2.4 2.2 2.0 2.0 2.0 2.0 1.9 
Electricity & water 2.9 3.1 3.1 2.9 2.6 2.8 3.3 3.2 
Electricity  2.1 2.2 2.3 2.1 1.9 2.1 2.3 2.3 
Water  0.6 0.6 0.6 0.6 0.5 0.6 0.8 0.7 
Construction  6.9 7.2 7.9 8.9 9.5 9.4 8.7 9.4 
Services  68.8 68.2 67.3 67.5 66.9 67.7 65.7 65.2 
Wholesale & retail 
trade 9.9 9.2 9.4 8.9 9.1 9.0 9.0 9.7 
Hotels & restaurants  10.5 10.6 10.2 11.0 10.9 11.4 4.8 5.5 
Hotels  9.0 9.0 8.6 9.3 9.2 9.6 3.6 4.7 
Restaurants  1.5 1.6 1.6 1.7 1.7 1.8 1.2 0.8 
Transport, storage and 
communications  8.2 8.6 8.5 8.4 8.4 8.5 7.5 7.2 
Transport and 
storage  4.0 4.2 4.1 4.1 4.3 4.4 3.5 3.2 
Road transport  3.9 3.8 3.8 4.0 3.9 3.9 3.4 3.2 
Sea transport  0.4 0.3 0.3 0.4 0.4 0.4 0.4 0.3 
Air transport  0.4 0.6 0.6 0.4 0.5 0.5 0.2 0.2 
Supporting and 
auxiliary transport 
activities  1.6 1.6 1.6 1.6 1.6 1.7 1.3 1.4 
Communications  3.6 3.6 3.6 3.5 3.3 3.3 3.8 3.8 
Financial 
intermediation  5.9 6.2 6.3 6.4 6.3 6.9 8.2 7.9 
Banks  4.7 4.9 5.2 5.2 5.2 5.7 6.7 6.5 
Insurance  1.0 1.1 1.0 1.1 1.0 1.1 1.3 1.2 
Activities auxiliary 
to financial 
intermediation  0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 
Real estate, renting 
and business activities  10.6 10.6 9.9 9.8 9.8 9.6 10.9 10.6 
Owner -occupied 
dwellings  3.7 3.6 3.4 3.2 3.1 3.1 3.8 3.7 
Real estate 
activities  1.0 1.0 0.9 0.9 0.9 0.9 0.9 0.9 
Renting of 
machinery and 
equipment  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Computer and 
related activities  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Business services  1.4 1.6 1.5 1.5 1.6 1.6 1.4 1.3 
Public administration, 
defence & compulsory 
social security  7.0 6.8 6.8 6.8 6.8 6.7 8.3 8.0 
Education  8.2 7.8 8.1 8.2 7.5 7.6 9.0 8.6 
Public  3.0 2.8 2.8 2.8 2.7 2.7 3.3 3.2 
Private  5.2 5.0 5.3 5.5 4.8 4.9 5.7 5.4 
Health and social work 2.5 2.4 2.3 2.4 2.4 2.6 3.1 2.9 
Public  1.9 1.8 1.8 1.8 1.8 1.8 2.5 2.4 
Private  0.6 0.6 0.6 0.6 0.6 0.7 0.6 0.5 
Other community, 
social & personal 
service  5.8 5.7 5.4 5.3 5.3 5.2 4.5 4.5 
Activities of private 
households as 
employers  0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 
Less: FISIM  1.1 1.3 1.1 1.0 1.1 1.2 0.8 0.9 
GVA in basic prices 86.4 86.2 86.0 86.3 85.8 86.2 85.5 85.6 
Plus: Product taxes 13.9 14.0 14.3 13.9 14.5 14.1 14.8 14.7 
Less: Subsidies  0.3 0.3 0.3 0.2 0.3 0.3 0.3 0.3 
Money, prices , and interest rates  
Inflation (%, end of 
period)  0.7 -0.9 -0.2 1.2 1.5 0.0 -0.2 2.7 
Inflation (%, period 
average)  0.8 -0.9 -0.4 1.1 1.0 0.8 -0.7 1.6 
Money supply (M1) 
(% growth))  10.6 8.5 7.2 11.8 6.5 5.8 -11.1 23.8 WT/TPR/S/437 • OECS -WTO Members  
 
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2014  2015  2016  2017  2018  2019  2020  2021  
Monetary liabilities 
(M2) (% growth)  3.6 8.9 -1.7 7.6 6.3 0.8 -5.2 13.9 
Deposit interest rate 
(%) 2.6 1.9 1.7 1.6 1.6 1.6 1.6 1.5 
Lending interest rate 
(%) 8.9 8.8 8.5 8.3 8.0 7.8 7.0 6.7 
Memorandum:          
Population (persons)  600,047  604,844  608,956  610,987  614,858  621,286  626,090  .. 
Exchange rate 
(domestic currency per 
USD)  2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 
.. Not available.  
Source:  Eastern Caribbean Central Bank (ECCB), statistics page as viewed on 2 4 Novem ber 2022, and 
Annual Economic and Financial Review, December  2021; International Monetary Fund ; WTO 
Secretariat estimates.  
1.4.  As the restrictions implemented to fight the COVID -19 pandemic ar e progressively phased out, 
the tourism sector is expected to pick up  and drive growth in the future. Some of the 
OECS -WTO Members have also continued their attempts to diversify the economy by engaging in 
other service activities, such as education servic es, health services, and environment -related 
activities.  
1.5.  Faced with rising inflation, in particular  the increasing costs of energy and of electricity 
generation, which is still highly dependent on fuel, the OECS -WTO Members are promoting the use 
of renewab le sources of energy.  
1.1.2   Fiscal  policy  
1.6.  The Revised Treaty of Basseterre establishing the OECS Economic Union calls for member 
States to work towards a progressive harmonization of their fiscal policies. In practice, however, this 
has not taken place yet. The Ministry of Finance of each OECS -WTO Member is responsible for the 
formulation and implementation of fiscal policy, which is conducted independently by each country. 
The situation in each OECS State was complicated by the substantial deterioration in t heir fiscal 
accounts caused the COVID -19 pandemic, which provoke d a sharp reduction in revenue and an 
increase in expenditure. Given that monetary policy is the responsibility of the E astern Caribbean 
Central Bank (ECCB) , fiscal policy is the only macroeco nomic policy instrument available to the 
national authorities to influence output and employment.  
1.7.  Prior to the COV ID-19 pandemic , the OECS -WTO Members embarked on fiscal reform and 
consolidation programmes, with a goal to achieve primary surpluses in their  Central Government 
accounts. Reform measures included replacing some taxes, increasing the rates and coverage of 
others, trimming expenditure, in particular current expenditure, rationalizing fuel prices, and debt 
restructuring. Although this was achieved  in most countries until 2019, goals had to be revised as a 
consequence of the COVID -19 pandemic. Taking into account the increase in spending implied by 
the various COVID -19 stimulus packages (as well as the relief measures due to the volcano eruption 
in Saint  Vincent and the Grenadines) and the economic contraction caused by the collapse of 
tourism, the debt -to-GDP ratio reversed its declining trend and increased by several  percentage 
points. 
1.8.  Although al l OECS -WTO Members sought fiscal consoli dation during the review period, the 
degree of fiscal policy harmonization remains low, especially given that policies respond many times 
to external shocks. Policy response to the same external shock may also differ across countries; t his 
has been particu larly the case with respect to  the COVID -19 pandemic  (see national annexes ), 
although it has invariably resulted in a deterioration of the fiscal accounts and an increase in debt.  
1.9.  After experiencing an improvement in the 2014 -17 period, the OECS -WTO Member s displayed 
a deterioration in their fiscal performance in 2018, exacerbated by the effects of COVID -19. Although 
all the OECS -WTO Members registered a deficit in 2020, the impact varied across countries, ranging 
from a 2.5% of GDP Central Government defic it in Saint Kitts  and Nevis to a 9.2% of GDP deficit in 
Saint Lucia. The deteriorating fiscal situation was due mainly to a fall in revenue due to the halt of 
tourism activities and an increase in expenditure. In 2021, the overall Central Government balance 
improved in two of the OECS -WTO Members , while it remained delicate in four others, in particular WT/TPR/S/437 • OECS -WTO Members  
 
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  Saint Lucia, where the deficit reached 8.4% of GDP, and Dominica , where the deficit reached 7.2% 
of GDP. At the other end of the spectrum, S aint Kitts and N evis posted an overall Central 
Government surplus equivalent to 7.2% of GDP, mainly on account of a sharp increase in income 
from its CBI programme (Table  1.2). The overall fiscal deficits of the OECS countries sharply 
deteriorated as from 2017, to reach a  peak of 5.6% of GDP in 2020  (Table  1.2). In contrast, 
during  2015 and 2016 a surplus was registered (0.5% and 2.1% of GDP, respectively).  
Table  1.2 OECS -WTO Members ' Central Government fiscal accounts, 2014 -21 
(% of GDP)   
2014  2015  2016  2017  2018  2019  2020  2021  
Current revenue  23.3 23.8 25.0 23.8 25.7 24.9 25.7 28.1 
Tax revenue  18.8 19.3 19.6 19.2 19.6 19.3 20.3 19.8 
Taxes on goods and 
services  8.9 8.9 8.9 8.4 8.8 8.6 8.9 8.9 
Of which:  
Accommodation tax 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Licences  0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.3 
Stamp duties 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.6 
Value added tax  5.4 5.5 5.4 5.1 5.4 5.3 5.4 5.4 
Taxes on income and 
profits 4.1 4.3 4.4 4.3 4.3 4.3 4.6 4.3 
Corporation tax  0.8 1.0 1.1 1.2 1.1 1.2 1.4 1.2 
Personal income tax  1.7 1.7 1.7 1.5 1.4 1.5 1.8 1.7 
Taxes on property  0.7 0.6 0.7 0.7 0.6 0.6 0.7 1.0 
Taxes on international 
trade and transactions  5.2 5.4 5.6 5.7 5.9 5.8 6.1 5.6 
Of which:  Customs 
Service Charge  1.0 1.0 1.0 1.0 1.1 1.1 1.1 1.1 
Consumption tax  0.2 0.4 0.4 0.3 0.3 0.3 0.5 0.3 
Import duty 2.3 2.3 2.3 2.3 2.4 2.4 2.5 2.5 
Excise tax  0.4 0.4 0.4 0.5 0.5 0.6 0.6 0.5 
Non-tax revenue  4.5 4.5 5.5 4.6 6.1 5.6 5.4 8.3 
Of which:  Citizenship by 
Investment  2.2 2.8 3.6 2.7 4.2 3.7 3.4 6.1 
Capital revenue  0.2 0.4 1.0 0.1 0.3 0.1 0.1 0.1 
Grants  1.8 1.5 1.3 1.8 1.2 1.1 2.6 2.5 
Current expenditure  21.5 20.8 21.0 21.3 22.1 22.8 27.9 26.4 
Goods and services  4.3 4.0 4.1 4.2 4.9 5.2 6.7 6.2 
Interest payments  2.8 2.6 2.5 2.4 2.3 2.3 2.6 2.4 
Domestic interest 
payments  1.7 1.5 1.4 1.3 1.3 1.3 1.4 1.4 
External interest 
payments  1.2 1.1 1.1 1.0 1.0 1.0 1.2 1.0 
Personal emoluments  9.6 9.2 9.3 9.1 9.2 9.1 11.3 10.9 
Transfers and subsidies  4.8 5.1 5.2 5.6 5.7 6.1 7.3 6.9 
Capital expenditure and 
net lending  5.2 4.9 4.2 4.7 6.0 5.5 6.7 8.2 
Current account 
balance  1.8 2.9 4.0 2.5 3.6 2.1 -2.2 1.7 
Primary balance (after 
grants)  1.7 2.9 4.6 2.1 1.6 0.1 -3.2 -1.1 
Overall balance (after 
grants)  -1.1 0.3 2.1 -0.3 -0.7 -2.2 -5.7 -3.5 
Total financing  1.1 -0.3 -2.1 0.3 0.7 2.2 5.7 3.5 
Domestic financing  -0.7 -2.6 -2.1 -0.3 0.5 0.2 0.6 -1.3 
Commercial banks  0.3 -6.1 -1.5 -0.5 0.8 0.8 0.7 -0.5 
ECCB  -0.3 -0.5 0.0 0.0 -0.5 0.4 1.5 0.0 
Other  0.0 4.3 -0.2 -0.1 0.5 -1.2 -0.2 1.3 
External financing  1.2 1.3 -0.2 0.2 -0.4 1.2 2.3 4.3 
Arrears  0.7 0.1 0.0 0.4 0.5 0.8 0.5 0.5 
Other financing  0.0 0.9 0.2 0.0 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat calculations, based on data from the E CCB, Central Government Fiscal Accounts . 
Viewed at: https://www.eccb -centralbank.org/debt/p/central -government -fiscal-accounts . 
1.10.  According to an assessment by the IMF, the pandemic has aggravated the Eastern Caribbean 
Currency Union ( ECCU ) countries' (OECS -WTO Members plus Anguilla and Montserrat) long -standing 
fiscal sustainability problems, further exacerbating vulnerabilities to shocks. The IMF highlights the  
high public debt, which largely reflect s earlier procyclical  policy and the region's susceptibility to 
large shocks, particularly natural disasters . The pandemic has resulted in a worsening of the fiscal 
position that coupled with a contraction of economic activity has led to a reversal of the declining WT/TPR/S/437 • OECS -WTO Members  
 
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  trend of pu blic debt over the past decade to some 85.3% of GDP in 2021, well above the 60% of 
GDP ECCU debt ceiling. The IMF advises t o focus  near-term policy on maintaining fiscal prudence 
while protecting the vulnerable. Over the medium term, fiscal consolidation s hould resume with the 
composition of spending shifting to boost growth ; creating fiscal space for productive investment 
and resilience building will be critical to support a resilient and inclusive recovery.2 
1.1.3   Monetary and exchange  rate policy  
1.11.  The OECS -WTO Members have a common monetary and exchange rate policy. They are all 
members of the ECCU, which also includes Anguilla and Montserrat. The E CCB, based in S aint Kitts, 
is the monetary authority for the ECCU. The ECCB has responsibility for monetary, cr edit, and 
exchange rate policies across the OECS, as well as for the supervision of the banking system. The 
ECCB's main decision -making body is the Monetary Council, which comprises the Ministers of Finance 
of each of the ECCU participants. The ECCB Board is responsible for policy formulation and the 
general administration of the Bank , subject to the exercise of functions by the Monetary Council, 
while the ECCB's Governor is responsible for policy implementation and the day -to-day management 
of the ECCB.  
1.12.  The Eastern Caribbean Central Bank Agreement Act, 1983 provides the legal foundation for 
the ECCU. The Preamble to the Act establishes the main objectives of the collective agreement. It 
grants the ECCB the power to issue and manage the common currency, the East Caribbean 
dollar  (XCD)  and to safeguard its international value.3 In accordance with Article  4 of the Act, the 
purposes of the ECCB are to : (i) regulate the availability of money and credit; (ii) promote and 
maintain monetary stability; (iii) promote credit and exchange conditions and a sound financial 
structure conducive to the balanced growth and development of the economies of the territories of 
the participating governments; and (iv) actively p romote , through means consistent with its other 
objectives , the economic development of the territories of the participating governments.  
1.13.  As a banking supervisor, the ECCB is responsible for the implementation of the Banking 
Act, 2015, which has been adopt ed by all OECS -WTO M embers and passed as national legislation 
within the context of developing of a single banking space in the ECCU. The ECCB is the licensing 
authority for the banking sector and a single licence authorizes  a financial institution to oper ate in 
the ECCU on a branch basis subject to approval.  
1.14.  The ECCB's policy is anchored on maintaining monetary stability through a fixed exchange 
rate regime, which pegs the XCD to the U SD at a rate of XCD  2.70 per USD. Movements in the XCD 
real effective ex change rate are mainly related to changes in the value of the USD  vis-à-vis other 
major currencies. Due to the maintenance of a fixed exchange rate, the money supply is virtually 
endogenous. However, limits are imposed on credits to member governments: at any given time, 
the ECCB's holding of treasury bills of a particular participating country must not exceed 10% of the 
estimated recurrent revenue of that government. Moreover, holdings of other government securities 
from the participating countries maturin g in no more than 15 years from the date of acquisition must 
not exceed 15% of the currency in circulation and other demand liabilities.  
1.15.  The authorities consider maintaining the peg with the USD of vital importance, as the 
United  States is the region's mai n trading partner and the origin of most tourist arrivals. They note, 
however, that they had been affected in recent years by the appreciation of the USD, which 
translated into an appreciation of the XCD vis-à-vis the currencies of other trading partners. This 
has been positive as an anti -inflationary tool in the short run, but has resulted in a certain loss of 
competitiveness, including regarding tourism.  
1.16.  The ECCB also extends temporary advances to a member government, which, in any financial 
year cannot e xceed 5% of that government's average annual current revenue in the preceding 
three  years, and holdings of bonds issued by development finance corporations may not 
exceed  2.5% of the average annual government current revenue over the preceding three years.  
 
2 IMF (2022), Eastern Caribbean Currency Union : Staff Report for the  2022 Article  IV Consultation , IMF 
Country Report No.  22/253. Viewed at: https://www.imf.org/en/Publications/CR/Issues/2022/07/28/Eastern -
Caribbean -Currency -Union -2022-Article -IV-Consultation -with-Member -Countries -on-521471 . 
3 ECCB, Legal and Regulatory Framework . Viewed at: https://www.eccb -centralbank.org/p/legal -and-
regulatory -framework#:~:text=The%20ECCB%20Agreement,the%20area%20of%20central%20banking . WT/TPR/S/437 • OECS -WTO Members  
 
- 16 - 
 
  These limits are strictly enforced as the ECCB deems them necessary to safeguard the fixed 
exchange rate regime.  
1.17.  The ECCB operates a regional market for government securities of the ECCU member States. 
The Eastern Caribbean Securities Market was launched in 2001  with the opening of the Eastern 
Caribbean Securities Exchange Ltd (ECSE) and its affiliated institutions along with the requisite laws 
and legal framework. The ECSE provides an alternative mechanism for public institutions to raise 
capital within t he regional financial system and allows for the transfer of private sector savings to 
productive investments.  
1.18.  Inflation , as measured by the consumer price index , was very subdued during the review 
period; in some years there was actually a deflation. The a nnual average for the 2014 -21 period 
was 0.65%, but this was mostly on account of a 2.7% increase in 2021. The situation changed in 
the latter year as a consequence of higher world fuel and other commodity prices and supply 
shortages. The IMF is forecasting inflation to be 5.5% in 2022, with real GDP growth of 7.5% and 
output still well below the pre -pandemic level.4 
1.1.4   Balance of payments  
1.19.  The OECS -WTO Members all posted current account deficits during the review period, which 
led to an aggregated d eficit of USD  1.08 billion  in 2021 for the ECCU (OECS -WTO Members plus 
Anguilla and Montserrat), more than double the 2019 level (Table  1.3). The deficit is of a structural 
nature, due to the fact that the OECS -WTO M embers economies are highly dependent on  
merchandise imports, while goods exports are relatively low. In contrast, they traditionally have 
posted a services account surplus, fuelled by tourism -related receipts. These surpluses have only 
partially offset the deficit accrued on the merchandise tra de account.  
1.20.  During the period under review, the current account deficit increased substantially, from a 
low of USD  381 million in 2015 (nearly 6% of GDP) to USD  1.08 billion  in 2021 (approximately 16% 
of GDP) (Table  1.3). External shocks may have a strong effect on the current accounts of countries 
in the region. For instance, largely as a result of the devastating effects of Hurricane Maria and the 
subsequent reconstruction efforts, the current account deficit of the ECCU rose from USD  572 million 
in 2017 to USD  927 million in 2018. Similarly, as a consequence of lower tourism receipts, and 
despite a contraction of merchandise imports , the current account deficit rose to USD  1.07 billion in 
2020, almost doubling the USD  535 million deficit registered in 201 9. In fact, travel exports in 2020 
were one third of their 2019 level, and even in 2021, they were barely half of that level , with the 
deficit remaining at a similar level than in the previous year.  
Table  1.3 ECCU balance of payments, 2014 -21 
(USD  million)   
2014  2015  2016  2017  2018  2019  2020a 2021b 
1. Current account  -403 -381 -589 -572 -927 -535 -1,074  -1,080  
1.A Goods and services  -86 41 -224 -254 -589 -213 -1,051  -1,004  
1.A.a Goods  -1,987  -1,889  -2,065  -2,154  -2,611  -2,460  -1,903  -2,225  
Exports  342 299 232 215 187 259 188 202 
Imports  2,329  2,188  2,297  2,368  2,798  2,719  2,091  2,427  
1.A.b Services  1,901  1,930  1,841  1,900  2,022  2,247  852 1,221  
Exports  3,216  3,330  3,367  3,475  3,685  4,008  1,949  2,496  
Imports  1,315  1,401  1,525  1,575  1,663  1,760  1,097  1,275  
Transport  -196 -182 -180 -193 -246 -245 -206 -241 
Exports  147 164 176 167 169 176 61 67 
Imports  344 346 356 361 414 421 267 307 
Travel  2,519  2,571  2,602  2,703  2,809  3,134  1,104  1,654  
Exports  2,684  2,753  2,797  2,901  3,004  3,350  1,184  1,758  
Imports  165 182 195 198 195 217 79 105 
Insurance & pension services  -61 -69 -66 -83 -92 -96 -72 -85 
Exports  41 42 49 48 48 48 64 63 
Imports  101 111 115 131 141 144 136 147 
Other business services  -482 -503 -586 -601 -615 -709 -80 -318 
Exports  215 252 270 279 292 263 528 390 
Imports  697 756 856 879 906 972 608 708 
 
4 IMF (2022), Eastern Caribbean Currency Union: Staff Report for the 2022 Article  IV Consultatio n, IMF 
Country Report No.  22/253. Viewed at: https://www.imf.org/en/Publications/CR/Issue s/2022/07/28/Eastern -
Caribbean -Currency -Union -2022-Article -IV-Consultation -with-Member -Countries -on-521471 . WT/TPR/S/437 • OECS -WTO Members  
 
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2014  2015  2016  2017  2018  2019  2020a 2021b 
Government goods and services  122 113 72 74 166 163 106 210 
Exports  129 119 76 80 172 170 113 218 
Imports  7 6 4 6 6 7 7 7 
1.B Primary income  -372 -462 -368 -363 -324 -381 -120 -187 
1.B.1 Compensation of employees  -49 -50 -48 -51 -37 -37 -35 -37 
1.B.2 Investment income  -322 -411 -320 -312 -286 -344 -85 -150 
1.B.2.1 Direct investment  -282 -371 -303 -289 -290 -360 -89 -142 
1.B.2.2 Portfolio investment  -7 -5 -3 4 6 20 18 17 
1.B.2.3 Other investment  -43 -48 -31 -50 -36 -39 -34 -36 
1.B.2.4 Reserve assets (Credit)  10 12 17 23 34 33 21 10 
1.B.3 Other primary income  -1 -1 0 0 0 0 0 0 
1.C Secondary income  54 40 3 44 -14 60 97 111 
1.C.1 General government  45 49 47 54 30 53 56 50 
1.C.2 Financial corporations, 
non-financial corporations, 
households, and NPISHs  10 -9 -43 -8 -42 10 42 62 
1.C.3 Adjustment for change in 
pension entitlements  0 -1 -1 -2 -1 -4 -1 -1 
2. Capital account  275 225 299 635 312 251 291 402 
2.1 Gross acquisitions / disposals  of 
non-produced non -financial assets  0 0 0 0 0 1 0 0 
2.2 Capital transfers  275 225 299 635 312 250 291 402 
2.2.1 General government  206 175 247 321 233 175 196 259 
2.2.2 Financial corporations, 
non-financial corporations, 
households, and NPISHs  69 51 53 313 80 75 95 143 
Net lending (+) / net borrowing ( -) 
(balance from current and capital 
account)  -128 -156 -289 62 -615 -283 -783 -677 
3. Financial account  0 0 0 0 0 0 0 0 
Net lending (+) / net borrowing ( -) 
(balance from financial account)  -109 -128 -338 84 -496 -498 -595 -453 
3.1 Direct investment  -616 -690 -664 -682 -707 -624 -413 -510 
3.2 Portfolio investment  157 39 -458 19 318 614 78 118 
3.3 Financial derivatives (other than 
reserves) and employee stock 
options  0 0 0 -1 1 0 -1 -1 
3.4 Other investment  116 372 659 691 -102 -420 -274 -385 
3.4.2 Currency and deposits  178 333 -28 233 51 12 162 113 
3.4.3 Loans  5 75 633 287 -48 -387 -382 -382 
3.4.4 Insurance, pension, and 
standardized guarantee schemes  0 4 0 186 -106 -73 4 -6 
3.4.5 Trade credit and advances  -62 -32 6 -20 -8 10 -16 -11 
3.4.6 Other accounts 
receivable/payable  -5 -9 48 5 8 18 -42 27 
3.4.7 Special drawing rights (Net 
incurrence of liabilities)  0 0 0 0 0 0 0 126 
3.5 Reserve assets  233 151 130 57 -5 -67 16 325 
3.5.2 Special drawing rights  -2 -4 -10 -5 -4 -5 -2 98 
3.5.3 Reserve position in the IMF  0 0 5 0 0 0 0 0 
3.5.4 Other reserve assets  235 154 135 61 -1 -62 18 226 
Net errors and omissions  19 27 -44 22 119 -215 188 225 
Memorandum:          
Current account (% of GDP)  -6.4 -5.7 -8.5 -8.0 -12.3 -6.8 -16.9 -16.0 
Capital account (% of GDP)  4.4 3.4 4.3 8.9 4.1 3.2 4.6 6.0 
a Preliminary data.  
b Estimates.  
Note:  ECCU excludes intraregional transactions and is therefore not the sum of the data for member 
territories.  
Source:  ECCB, External Sector Statistics . Viewed at: https://www.eccb -centralbank.org/p/external -sector -
statistics . 
1.21.  Prior to the pandemic, the current account deficit was financed to a large extent by foreign 
direct investment (FDI) inflows. However, in the aftermath of the crisis, FDI inflows declined 
considerably. Th e defici ts had then to be financed by an increase in  net borrowing, which rose 
substantially during the review period, from USD 128 million  in 2014, to USD  783 million  and 
USD 677 million , respectively, in 2020 and 2021.  WT/TPR/S/437 • OECS -WTO Members  
 
- 18 - 
 
  1.2  Trends and patterns in merchandise and serv ices trade  
1.22.  The OECS -WTO Members are all net merchandise importers and net services exporters. 
Exports comprise mainly food and live animals, machinery and transport equipment, and mineral 
fuels (Chart  1.1 and Tables A1.1 in each national annex). OECS imports are a very broad range of 
products, including mineral fuels, food and live animals, and machinery and transport equipment.  
Chart  1.1 Merchandise trade by main SITC sections, 2014 and 2021  
 
Source:  WTO Secretariat calculations, based on ECCB statistics.  
1.23.  Although disaggregated figures by product and partner are not available for the OECS -WTO 
Members  as a group , the main export destinations of OECS countries are the United  States , other 
CARIC OM countries , and the United  Kingdom. These are also the main sources of imports. Statistics 
by product group for the whole ECCU are available from the ECCB. They are shown in Table  1.4. 
Table  1.4 ECCU visible  trade statistics , 2014 -21 
(XCD million)   
2014  2015  2016  2017  2018  2019  2020  2021  
Total exports  996.8  1,032.4  803.74  790.8 643.9 768.9 619.4  598.3  
Total imports  7,031.3  6,688.81  7,008.1  7,219. 1 8,485.6  8,324. 6 6,425.5  7,416. 7 
Trade balance  -6,034.5  -5,656. 4 -6,204. 4 -6,428.3  -7,842. 2 -7,555. 8 -5,806.0  -6,818. 4 
IMPORTS  7,031.3  6,688.8  7,008.1  7,219. 1 8,485.6  8,324.6  6,425.5  7,416. 7 
Food & live animals  1,396.8  1,388.5  1,399.9  1,432.6  1,570.1  1,624.6  1,423.41  1,564.2  
Beverages and 
tobacco  263.9  288.6 297.8 331.0 334.4 333.0  238.7  263.0 
Crude materials, 
inedible except fuels 133.9  151.9  154.7 152.8  201.9  182.8  145.1  185.1 
Mineral fuels & related 
materials  1,552.1  1,016.5  995.2 961.2  1,351.5  1,161. 3 784.6 1,069.4  
Animal & vegetable 
oils, fats & waxes 27.9 34.6 27.8 26.3 33.3 30.5 30.7 36.5 
Chemicals & related 
products  481.3 538.9 555.8 549.6  638.9  643.2  596.5 703.7 
Manufactured goods 969.7  984.2  1,064.8  1,126.7  1,373.5  1,370. 4 1,002. 3 1,197.0 
Machinery & transport 
equipment  1,368. 4 1,360. 3 1,581.9  1,657.9  1,810. 9 1,837. 6 1,421.5  1,550.5  
Miscellaneous 
manufactured articles  834.5 919.6  929.7  979.1 1,143.1  1,086.2  775.6  844.7  
Chart 1.1
Merchandise trade by main SITC sections, 2014 and 2021
2014 2021
Imports
Total: USD 2,604 million
Source:   WTO Secretariat calculations, based on ECCB statistics.Total: USD 2,747 millionOther
2.3%
Beverages & 
tobacco
3.8%Other
3.0%
Machinery & 
transport 
equipment
20.9%
Mineral fuels
22.1%Mineral fuels
14.4%Machinery 
& transport 
equipment
19.5%
Chemical 
products
9.5%Chemical 
products
6.8%Manufactured 
goods
13.8%Misc. manuf.
11.9%Food & live 
animals
19.9%
Manufactured 
goods
16.1%Food & live 
animals
21.1%
Beverages & 
tobacco
3.5%Misc. manuf.
11.4%WT/TPR/S/437 • OECS -WTO Members  
 
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2014  2015  2016  2017  2018  2019  2020  2021  
Commodities & 
transactions not 
classified elsewhere in 
SITC 2.8 5.7 0.6 1.9 27.9 54.9 6.9 2.6 
Source:  ECCB , Real Sector Statistics – Selected Visible Trade Statistics . Viewed  at: https://www.eccb -
centralbank.org/statistics/trades/country -report. 
1.24.  OECS -WTO Members' trade in services profile is in contrast with its goods counterpart: the 
trade balance was in surplus over the past decade, although this surplus shrank considerably in 2020 
and 2021 as a result of the decline in tourism receipts. Between 201 4 and 2021, imports of services 
decreased somewhat , to USD  1.3 billion  (data for the ECCU). On the other hand, d uring the 2014-19 
period exports increased by almost 25% to reach its peak at USD  4 billion . Travel services account 
for th e bulk of the surplus. The trade in services balance posted  a surplus of USD  1.22 billion  in 2021 
(Table  1.5). 
Table  1.5 ECCU trade in services, 2014 -21 
(USD  million)   
2014  2015  2016  2017  2018  2019  2020a 2021b 
Services balance  1,901  1,930  1,841  1,900  2,022  2,247  852 1,221  
Manufacturing services on physical inputs owned 
by others  18 16 26 8 8 8 7 7 
Goods for processing in reporting economy  18 16 26 8 8 8 7 7 
Goods for processing abroad  0 0 0 0 0 0 0 0 
Maintenance and repair services , n.i.e. -23 -17 -12 -13 -12 -14 -1 -1 
Transport  -196 -182 -180 -193 -246 -245 -206 -241 
Sea transport  -234 -210 -214 -225 -276 -271 -212 -252 
Passenger  -1 5 7 8 4 3 2 0 
Freight  -259 -247 -257 -267 -315 -308 -237 -271 
Other  26 32 36 33 34 33 23 20 
Air transport  33 20 26 25 24 21 2 6 
Passenger  -3 -20 -14 -16 -25 -30 -9 -6 
Freight  -3 -2 -2 -3 -4 -4 -3 -3 
Other  38 42 42 44 52 55 13 15 
Other modes of transport  1 1 1 1 1 1 0 0 
Passenger  0 0 0 0 0 0 0 0 
Freight  0 0 0 0 0 0 0 0 
Other  1 1 1 1 1 1 0 0 
Postal and courier services  4 6 7 6 6 5 4 4 
Travel  2,519  2,571  2,602  2,703  2,809  3,134  1,104  1,654  
Construction  -30 -24 -36 -30 -50 -39 -29 -32 
Insurance and pension services  -61 -69 -66 -83 -92 -96 -72 -85 
Direct insurance  -58 -62 -62 -78 -79 -83 -62 -74 
Reinsurance  -11 -15 -16 -16 -19 -21 -22 -23 
Auxiliary insurance services  9 9 13 11 5 9 13 13 
Pension and standardized guaranteed services  -1 0 -1 -1 -1 -1 -1 -1 
Financial services  9 26 6 11 22 -3 -6 -6 
Charges for the use of intellectual property , n.i.e. -27 -26 -29 -31 -31 -35 -29 -31 
Telecommunications, computer, and information 
services  28 17 8 8 0 -1 -3 -4 
Other business services  -438 -475 -525 -533 -530 -603 -301 -354 
Research and development services  0 0 0 0 0 0 0 0 
Professional and management consulting 
services  -119 -102 -119 -128 -113 -130 -98 -111 
Technical, trade -related, and other business 
services  -318 -373 -406 -405 -416 -473 -203 -243 
Personal, cultural, and recreational services  -20 -20 -23 -21 -22 -23 283 105 
Government goods and services , n.i.e. 122 113 72 74 166 163 106 210 
Services exports  3,216  3,330  3,367  3,475  3,685  4,008  1,949  2,496  
Manufacturing services on physical inputs owned 
by others  18 16 26 8 8 8 7 7 
Goods for processing in reporting economy  18 16 26 8 8 8 7 7 
Goods for processing abroad  0 0 0 0 0 0 0 0 
Maintenance and repair services , n.i.e. 2 3 3 2 2 2 2 2 
Transport  147 164 176 167 169 176 61 67 
Sea transport  26 39 45 44 41 39 26 21 
Passenger  0 7 9 10 7 6 2 1 
Freight  0 0 0 0 0 0 0 0 
Other  26 32 36 33 34 33 23 20 
Air transport  116 117 122 117 120 130 31 41 
Passenger  63 61 65 61 57 62 14 22 WT/TPR/S/437 • OECS -WTO Members  
 
- 20 - 
 
   
2014  2015  2016  2017  2018  2019  2020a 2021b 
Freight  0 0 0 0 0 0 0 0 
Other  53 57 57 56 64 68 16 19 
Other modes of transport  1 1 1 1 1 1 0 0 
Passenger  0 0 0 0 0 0 0 0 
Freight  0 0 0 0 0 0 0 0 
Other  1 1 1 1 1 1 0 0 
Postal and courier services  5 7 8 6 6 5 4 5 
Travel  2,684  2,753  2,797  2,901  3,004  3,350  1,184  1,758  
Construction  0 0 0 0 0 1 1 0 
Insurance and pension services  41 42 49 48 48 48 64 63 
Direct insurance  20 21 25 22 24 23 32 31 
Reinsurance  0 0 0 0 0 0 0 0 
Auxiliary insurance services  20 21 23 26 24 25 32 32 
Pension and standardized guaranteed services  0 0 0 0 0 0 0 0 
Financial services  50 60 60 85 103 69 52 58 
Charges for the use of intellectual property , n.i.e. 0 0 0 0 1 1 1 1 
Telecommunications, computer, and information 
services  60 55 54 52 43 44 41 42 
Other business services  85 118 127 131 135 137 120 159 
Research and development services  0 0 0 0 0 0 0 0 
Professional and management consulting 
services  16 24 23 24 21 21 14 19 
Technical, trade -related, and other business 
services  68 94 104 108 114 116 106 140 
Personal, cultural, and recreational services  0 0 0 0 0 0 304 121 
Government goods and services , n.i.e. 129 119 76 80 172 170 113 218 
Services imports  1,315  1,401  1,525  1,575  1,663  1,760  1,097  1,275  
Manufacturing services on physical inputs owned 
by others  0 0 0 0 0 0 0 0 
Goods for processing in reporting economy  0 0 0 0 0 0 0 0 
Goods for processing abroad  0 0 0 0 0 0 0 0 
Maintenance and repair services , n.i.e. 25 20 15 15 14 16 3 4 
Transport  344 346 356 361 414 421 267 307 
Sea transport  260 249 259 269 317 311 238 272 
Passenger  1 2 2 2 2 3 1 1 
Freight  259 247 257 267 315 308 237 271 
Other  0 0 0 0 0 0 0 0 
Air transport  83 97 96 91 97 109 29 35 
Passenger  66 80 79 77 81 92 23 28 
Freight  3 2 2 3 4 4 3 3 
Other  15 14 15 12 12 13 3 4 
Other modes of transport  0 0 0 0 0 0 0 0 
Passenger  0 0 0 0 0 0 0 0 
Freight  0 0 0 0 0 0 0 0 
Other  0 0 0 0 0 0 0 0 
Postal and courier services  1 0 0 0 0 0 0 0 
Travel  165 182 195 198 195 217 79 105 
Construction  30 24 36 30 50 41 30 33 
Insurance and pension services  101 111 115 131 141 144 136 147 
Direct insurance  79 84 87 100 103 106 95 104 
Reinsurance  11 15 16 16 19 21 22 23 
Auxiliary insurance services  11 11 11 14 19 16 19 19 
Pension and standardized guaranteed services  1 1 1 1 1 1 1 1 
Financial services  41 34 54 73 82 72 59 64 
Charges for the use of intellectual property , n.i.e. 27 26 29 31 31 36 30 32 
Telecommunications, computer, and information 
services  32 37 47 45 43 45 44 46 
Other business services  522 593 652 664 664 741 421 513 
Research and development services  0 0 0 0 0 0 0 0 
Professional and management consulting 
services  136 126 142 152 134 151 112 129 
Technical, trade -related, and other business 
services  386 467 510 513 530 589 309 383 
Personal, cultural, and recreational services  20 20 23 21 22 23 21 16 
Government goods and services , n.i.e. 7 6 4 6 6 7 7 7 
a Preliminary data.  
b Estimates.  
Note:  ECCU excludes intraregional transactions and is therefore not a summation of the data for member 
territories.  
Source:  ECCB, External Sector Statistics . WT/TPR/S/437 • OECS -WTO Members  
 
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  2  TRADE AND INVESTMENT REGIMES  
2.1  General framework  
2.1.  The six OECS -WTO Members are parliamentary democracies with similar legislative and judicial 
arrangements; however, some differences among them remain (Chapter  2 of the national annexes ). 
Five of the countries have the British sovereign, represented by a Governor General, as Head of 
State; Dominica is a republic, headed by a President. The role of the Head of State is largely 
ceremonial, and actual executive powe r is exercised by the Cabinet, headed by a Prime Minister. 
There are some differences, however, in their parliamentary systems: while Antigua and Barbuda, 
Grenada, and S aint Lucia have bi -cameral legislatures, Dominica, S aint Kitts and Nevis, and 
Saint Vincent and the Grenadines have unicameral legislatures. The six OECS -WTO Members are 
members of the Commonwealth of Nations.  
2.2.  The Constitution is the main law in all six countries. The hierarchy of legislation, after the 
Constitution is as follows: acts of Parliament, including ordinances and international agreements 
given effect through parliamentary approval; and subsidiary legislation, which may be in the form 
of regulations, statutory rules , or orders. The similarities of their legal systems facilitate the use of 
model legislation, which has been increasingly the case in recent years (e.g.  they all have the same 
Banking Act and are in the process of adopting consumer protection laws modelled after CARICOM 
legislation). The use of model laws not only helps to increase transparency and comparability across 
countries but is also a step forward towards the consolidation of a common regional market.  
2.3.  Despite their similarities, however, domestic law s must still be drafted and adopted by national 
legislatures, even when based on a common model law. This seems to be a major challenge since, 
in the course of this Review, several OECS -WTO Members expressed their concern with respect to 
legislation drafti ng capacity, with some of them considering that international technical cooperation 
may be required. The OECS Commission confirmed that lack of legal drafting capacities remains a 
major issue.  
2.4.  With the implementation of the OECS Economic Union in 2011, leg al drafting and 
implementation competences on five specific areas have been devolved to the OECS and are 
exercisable through the Authority and the Council of Ministers. However, in the course of the present 
Review, the authorities note that this process ha s not been yet completed as it was slowed down by 
the COVID -19 pandemic . They hope to engage in presential meetings during 2023. The authorities 
note that they are currently working on a programme to harmonize laws and regulations regarding 
business servic es. 
2.2  Trade policy formulation  
2.5.  Trade policy in each of the OECS -WTO Members is designed and implemented at three main 
levels: national, subregional (OECS), and regional (CARICOM). At the CARICOM level, the Revised 
Treaty of Basseterre (RTB) contains the prin cipal institutional arrangements for member s with 
respect to common trade policies, such as the Common External Tariff (CET), and provides guidelines 
with respect to other policies that need, however, to be incorporated in to each national legislation.  
2.6.  National trade policies are developed generally in close consultation with other OECS and 
CARICOM member countries. This leads to the adoption of common trade policy positions. 
Coordination helps partly overcome the resource constraints that OECS countries hav e, and the 
OECS Commission and CARICOM Secretariat are instrumental in helping design trade and 
investment policy positions including in bilateral and multilateral trade negotiations. The OECS 
Geneva  Mission5 continues to facilitate the OECS -WTO Members' participation in the  WTO.  
2.7.  As pointed out in the previous Review, trade policy implementation within and among OECS 
members is still subject to severe human resource limitations. This is partly reflected in the lack of 
WTO notifications in certain areas ( Section 2.3.1). In general, the limitation of human resources  and 
the insufficient capacity of legal drafting  contribute to the slow implementation of WTO commitments 
 
5 The OECS Geneva Mission (formally known in Geneva as the Permanent Delegation of the Organisation 
of Eastern Caribbean States (OECS) to the United  Nations Office and other International Organisations in 
Geneva) is a technical mission of the OECS Commission representing and advancing the trade and 
development interests of the OECS in Geneva.  WT/TPR/S/437 • OECS -WTO Members  
 
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  among OECS members and constitutes a challenge for the implementation of commitments under 
the EPA.  
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.8.  After independence, each OECS member became a GATT contracting party under 
Article  XXVI:5(c) with its rights and obligations under the GATT retroactive to the date of 
independence. With respect to WTO accessio n, Antigua and Barbuda, Dominica, S aint Lucia, and 
Saint Vincent and the Grenadines are original Members of the WTO. Grenada and S aint Kitts and 
Nevis became WTO Members in 1996.  
2.9.  The OECS -WTO Members belong to the following negotiating groups:  ACP, G-90, Small 
Vulnerable Economies (SVEs) -NAMA , G-33, "W52" sponsors, and SVEs -rules (Dominica, Saint  Lucia, 
and Saint  Vincent and the Grenadines). As members of the SVEs group, the OECS countries have 
pushed for flexibilities in the Doha Development Agenda  and the recognition of principles of 
non-reciprocity in NAMA. They have also highlighted the need for the negotiations to take account 
of the consequences of preference erosion for the region.  
2.10.  The OECS -WTO Members grant at least MFN treatment to all of their trading partners. They 
are not part ies or observer s to any WTO plurilateral agreements and have not subscribed to the 
Information Technology Agreement and its expansions. During the period under review, the OECS 
members ratified the Trade Facilitation Agreement (TFA) (Table  2.1). The degree of implementation 
of commitments in the three categories under the TFA varies considerably. Three of the OECS -WTO 
Members (Dominica, Saint  Kitts and Nevis, and Grenada ) are very advanced in the implementation 
of thei r commitments, having implemented 97.1%, 83.2% , and 80.3% of the total, respectively, by 
November  2022. At the same date, Saint  Vincent and the Grenadines had implemented 63.0% of 
its commitments under the TFA, Saint  Lucia, 49.2%, and Antigua and Barbuda, 38.7%.  
Table  2.1 Ratification and implementation of the TFA, 2022  
Member  Ratification date  WTO document  Degree of 
implementation %a 
Antigua and Barbuda  27 November  2017 G/TFA/N/ATG/1, 23  August 2019 38.7 
Dominica  28 November  2016 G/TFA/N/DMA/1, 27  February  2019 97.1 
Grenada  8 December  2015 G/TFA/N/GRD/1 , 30 October  2018 80.3 
St Kitts and Nevis  17 June 2016 G/TFA/N/KNA/1 , 17 August 2017 83.2 
St Lucia  8 December  2015 G/TFA/N/LCA/1, 4  Septem ber 2018 49.2 
St Vincent and the 
Grenadines  9 January  2017 G/TFA/N/VCT/1 , 4 June 2018 63.0 
a As of late November  2022. 
Source:  WTO Secretariat , based on notifications documents.  
2.11.  During the period under review, the OECS -WTO Members continued their efforts to amend 
legislation to allow them to fully implement the WTO  Agreements; for instance, S aint Kitts and Nevis 
notified to the WTO legislation on anti -dumping and subsidies and countervailing measures. 
However, there are several areas in which legis lation and /or regulations are still needed to fully 
implement WTO  Agreement s. During the review process, the authorities of several of the OECS -WTO 
Members  stated that the main problem stems from a lack of resources, particularly with respect to 
the drafti ng of legislation  and regulations. Another problem stems from the difficulty of implementing 
legislative changes that imply the creation of new administrative infrastructure, for which they often 
do not have the resources.  
2.12.  Table  2.2 summarizes those areas by country where legislation needs to be drafted or enacted 
to implement the provisions of WTO  Agreements, or where laws have been passed but have not 
entered into effect, due to lack of regulations to implement them.  WT/TPR/S/437 • OECS -WTO Members  
 
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  Table  2.2 Main areas where legal or regulatory amendments are needed to comply with 
WTO Agreement p rovisions, 2022  
Agreement  Antigua & 
Barbuda  Dominica  Grenada  St Kitts and Nevis  St Lucia  St Vincent & 
the 
Grenadines  
Customs 
Valuation  None None Non-
application of 
CVA None None None 
Anti-Dumping  No enacting 
legislation  No enacting 
legislation  No enacting 
legislation  WTO D ocument  
G/ADP/N/1/KNA, 
4 March  2021 No enacting 
legislation  No enacting 
legislationa 
SCM No 
legislation  No legislation  No legislation  WTO D ocument  
G/SCM/N/1/KNA, 
4 March  2021 No legislation  No 
legislationa 
SCM 
Article  27 None Need to 
reform 
legislation  None Need to reform 
legislation  None Need to 
reform 
legislation  
GATT  1994, 
Article  II 
Schedule of 
Tariff 
Concessions  None 
 
Not listed  Ad-valorem  
Customs 
Service 
Charge  
Not listed  Ad-valorem  
Customs 
Service 
Charge  
Not listed  Ad-valorem  Customs 
Service Charge  
Bound at higher level  Ad-valorem  
Customs 
Service 
Charge  
Not listed  Ad-valorem  
Customs 
Service 
Charge  
Not listed  
a Legislation in draft stage.  
Source:  WTO Secretariat.  
2.13.  As was pointed out in the previous Review, notifications to the WTO remain an issue for 
OECS -WTO Members. Differences in  levels of implementation and notifications may be attributable 
to differences between the countries' technical or human resources capacity and to the effects of the 
COVID -19 pandemic (Table  2.3). According to the authorities, some initiatives have been la unched 
to address the issue of outstanding notifications.  
Table  2.3 Notifications to the WTO, February 2014 to June 2022  
Agreement  Antigua & 
Barbuda  Dominica  Grenada  St Kitts and 
Nevis  St Lucia  St Vincent & 
the 
Grenadines  
Agreement on Agriculture  
Articles 10  
and 18.2  None None None None None Yes 
Article  18.2 None None None None None Yes 
Para. (ii), 
p. 24 of 
G/AG/2  None None None None None None 
Agreement on Implementation of Article  VI of the GATT  1994 (Anti -dumping Agreement)  
Article  16.4 Yes Yes Yes Yes Yes None 
Article  16.5 Yes Yes Yes Yes Yes None 
Article  18.5 None  None None Yes None None 
Agreement on Implementation of Article  VII of the GATT  1994 (Agreement on Customs Valuation)  
Annex  III 
para. 1 None None Nonea None None None 
Article  22.2 None None None Yes None Yes 
Agreement on Import Licensing Procedures  
Articles  1.4 None None None None None None 
Article  5 None None None None None None 
Article  7.3 None None None None Yes Yes 
Article  8.2 None None None None None None 
Agreement on Safeguards  
Article  12.6 None None None Yes None None 
Agreement on Subsidies and Countervailing Measures  
Article  25.1 
GATT  1994  Yes Yes Yes Yes Yes None 
Article  18.5 None None Yes None None None 
Article  25.11  None None None Yes None None 
Article  25.12  None None None Yes None None 
Article  32.6 Yes Yes Yes Yes Yes None 
Article  27.4 Yes Yes Yes Yes Yes Yes 
State Trading Enterprises  
Article  17.4 None None None None None None 
Agreement on Technical Barriers to Trade  
Article  2.9 None None None None None None 
Article  10.6 None Yes Yes None Yes None WT/TPR/S/437 • OECS -WTO Members  
 
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  Agreement  Antigua & 
Barbuda  Dominica  Grenada  St Kitts and 
Nevis  St Lucia  St Vincent & 
the 
Grenadines  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Annex B -3 None None None None None None 
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article  3.1 None None None None None None 
Article  63.2 None None None Yes Noneb Yes 
Agreement on Trade -Related Investment Measures  
Article  5.1 None None None None None None 
GATS 
Article  III:4  None Yes Yes Yes Yes None 
GATS 
Article  V:7(a)  Yes Yes Yes Yes Yes Yes 
Agreement on Trade Facilitation  
Article  1.4 None Yes None Yes Yesc None 
Article  10.4.3  None None None None None None 
Article  10.6.2  Yes Yes None Yes Yes Yes 
Article  12.2 None Yes Yes Yes Yes Yes 
Article  22.3 Yes None Yes Yes None Yes 
Note:  Yes = At least one notification has been made; None = No notification has been made.  
a Legislation in force has not been amended to comply with the requirements of the respective 
WTO Agreement . 
b Legislation in force has not been amended to comply with the requirements of the TRIPS  Agreement  
with respect to patents . 
c Partial . 
Source:  WTO Secretariat , based on notifications documents . 
2.14.  There is a general lack of notifications on agriculture and regarding SPS measures ; only 
Saint Vincent and the Grenadines has notified its agriculture export subsidies (none) and domestic 
support programmes (Table  2.4). No SPS measures were notified by the  OECS -WTO Members during 
the period under review.  
Table  2.4 Domestic Support (Green Box) – Saint  Vincent and the Grenadines, 2015 -19 
(XCD)  
Measure type 2015 2016  2017  2018  2019  
General services  
(a) Research  2,660,062  2,972,455  3,294,449  3,528,375  2,923,152  
(b) Pest and disease control  1,806,870  1,864,715  2,085,076  2,271,481  2,016,165  
(d) Extension and advisory 
services  2,257,920  2,337,538  2,520,337  2,568,994  2,026,542  
Total Green Box  6,724,852  7,174,708  7,899,862  8,368,850  6,965,859  
Source:  WTO documents G/AG/N/VCT/11, 26  April 2017; G/AG/N/VCT/14, 22  March  2018; G/AG/N/VCT/15, 
12 March  2019; G/AG/N/VCT/18, 24  April 2020; and G/AG/N/VCT/19, 15  July 2022.  
2.15.  The OECS -WTO Members have entered limited commitments in their GATS Schedules. 
None of the OECS -WTO M embers participated in the extended negotiations on financial services. 
Antigua  and Barbuda, Dominica, and Grenada participated and presented offers in the WTO extended 
negotiations  on telecommunications and have ratified the Fourth Protocol.  
2.16.  In their participation in the WTO, the OECS -WTO Members have stated on several occasions 
their position with respect to the flexibilities needed in the WTO to take account of their development 
needs as SVEs (see below). They have advocated for reinforcement of the support mechanisms, 
including technical cooperation, to help them fulfil their WTO commitments and to support them in 
the institutional, legal, and economic adjustment required as a res ult of trade liberalization.  
2.17.  At MC12 in Geneva, Saint Vincent and the Grenadines , speaking for the OECS -WTO Members , 
renewed the OECS commitment to a more viable and durable multilateral trading system with the 
WTO at its core.  It was noted that, as  Small Island Developing States (SIDS) and S VEs, OECS 
countries were exposed to a high degree of economic openness, often with a heavy reliance on 
imports, especially to meet their food and energy needs. It was highlighted that they all  had narrow 
production stru ctures, a limited range of exports of goods and services, and face d persistent 
susceptibility to external shocks, such as the current global COVID -19 pandemic, food and energy 
crises , and supply chain challenges. These shocks tend ed to impact them more severely and WT/TPR/S/437 • OECS -WTO Members  
 
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  recovery was much longer compared to larger and more advanced economies. There was also a 
constant threat of climate change and natural disasters , the impact of which could and did , bring all 
economic activity to a standstill when they o ccurred, including the ability to trade. Amid these  
challenges, the OECS -WTO Members saw a reduction in trade preferences, concessional financing, 
and development assistance. Their status as middle - to high-income countries d id not take into 
account their inherent vulnerabilities. Trade and economic relations should be conducted with the 
objective of sustainable development  and should s eek to strengthen and not undermine the policy 
space need ed by the OECS  as developing countries to practice their developme nt. With respect to  
the reform of the WTO , they were of the view of the need to strengthen its operations, rule -making , 
and negotiating functions.  The OECS support ed a multilateral reform effort that is open, inclusive , 
and transparent , and called for the restoration of the two -tiered dispute settlement system.6 
2.18.  According to the authorities, the OECS -WTO Members are actively seeking solutions for the 
DSB impasse, with an aim to continue maintain the principles of the DSB. The authorities further 
indicate d that the solution must be multilaterally based; none of the OECS -WTO Member s is a 
sponsor to the Multiparty Interim Appeal Arbitration Arrangement  (MPIA).  
2.3.2   Regional and preferential agreements  
2.3.2.1   OECS  
2.19.  The OECS was established by the Treaty of Basseterre. Given the small size of participating 
countries, the creation of the OECS responded to the need to promote cooperation and economic 
integration in the Eastern Caribbean. The OECS came into being in 1981, with Antigua and Barbuda, 
Dominica, Gren ada, Montserrat, S aint Kitts and Nevis, S aint Lucia, and S aint Vincent and the 
Grenadines as members, and Anguilla  and the British Virgin Islands are associate members.7 During 
the period under review, Martinique and Guadeloupe became associate member s in 2015 and 2019, 
respectively . 
2.20.  The process of integration among OECS States was strengthened by the signature of the 
Revised Treaty of Basseterre (RTB) Establishing the OECS Economic Union in June  2010. The RTB 
entered into force on 21  January  2011 and established a single financial and economic area and 
seeks to foster inte gration between member States through new institutional arrangements. By 
establishing the OECS Economic Union, the RTB moved towards the creation of a single financial and 
economic space within which goods, services, people, and capital move freely, moneta ry and fiscal 
policies are harmonized, and members continue to adopt a common approach to trade, health, 
education, and the environment, as well as to sectoral development in agriculture, tourism , and 
energy.  
2.21.  The RTB also established the Economic Union's o rgans and institutions. The principal organs 
are: ( i) the OECS Authority of Heads of Government of the member States; ( ii) the Council of 
Ministers; ( iii) the OECS Assembly; ( iv) the Economic Affairs Council; and ( v) the OECS Commission. 
The OECS Authority  is the highest polic y-making organ of the OECS, with the power to make 
decisions on all matters within its capability and to grant final approval for the conclusion of treaties 
or other international agreements. It meets twice yearly. The Council of Ministers  comprises 
appointed Ministers of Government from each member State and is responsible to the OECS 
Authority. The Council takes action on any matters referred to it by the OECS Authority and makes 
recommendations to it and has responsibility for c onsidering and reporting on recommendations of 
the OECS Commission for the drafting of laws. The OECS Assembly 's main function is to support 
legislative work by reporting to the OECS Authority and the OECS Council of Ministers on legislation 
developed by t he OECS members; however, it does not have power to enact legislation, which 
remains the prerogative of the parliaments of the member States or the OECS Authority and the 
Council of Ministers in the case of the organization's legislation.  
2.22.  There are five ma in areas agreed for the exercise of exclusive power by the Authority: 
common market and customs union; monetary policy; trade policy; maritime jurisdiction and 
 
6 Statement by Hon. Senator Ms Keisal Peters, Minister of S tate, Ministry of Foreign Affairs and Foreign 
Trade Saint Vincent and the Grenadines on Behalf of OECS. WTO document WT/MIN(22)/ST/41, 12  June 2022.  
7 OECS , Member States . Viewed at: https://www.oecs.org/en/who -we-are/member -states . WT/TPR/S/437 • OECS -WTO Members  
 
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  maritime boundaries; and civil aviation. The OECS can also legislate on common commercial, 
environmental , and immigration policies.  
2.23.  The OECS Commission, based in S aint Lucia, provides support and coordination services to 
help member States identify scope for joint action and further integration. The Commission also 
conducts research and executes spec ific projects; it also oversees  the operation s of the OECS 
Technical Mission in Geneva, which was set up in 200 5 and acts as the OECS -WTO Members' 
representative to the WTO. The OECS Commission  is the principal organ responsible for the general 
administrat ion of the OECS. It has integrated the former OECS Secretariat as the administrative arm 
of the organization. The Commission provides Secretariat services to the OECS organs, including by 
coordinating meetings and acting on decisions, recommendations , or directives approved at such 
meetings. The OECS Commission is also responsible for preparing model legislation and making 
recommendations to the OECS Authority and the Council of Ministers regarding acts and regulations. 
The OECS Commission comprises the Dir ector-General, who is responsible for the day -to-day 
administration of the OECS, and a Commissioner of ambassadorial rank, named by each member 
State, who represents the OECS Commission in her/his member State.  
2.24.  Apart from the organizational structure outli ned above, there are three OECS institutions as 
per the RTB: the Eastern Caribbean Central Bank  (ECCB) , the Eastern Caribbean Supreme Court  
(ECSC) , and the Eastern Caribbean Civil Aviation Authority  (ECCAA) .8 Discussions are ongoing for 
the establishment of a fourth OECS institution, the Eastern Caribbean Energy Regulatory Authority. 
The ECCB , established in 1983, is the Monetary Authority for the OECS -WTO Members and Anguilla 
and Montserrat. The ECCB issues the East Caribbean dollar  (XCD) and is charge of  maintaining the 
peg to the USD. The ECCB is the supervisor of the domestic banking system in all OECS States.9 The 
ECSC, established in 1967, is a superior court of record for the OECS -WTO Members as well as 
Anguilla, the British Virgin Islands, and Mont serrat. The ECSC is composed of the Chief Justice, 
3 justices of appeal, 13  high court judges , and 2 masters. The Court sits in two divisions: the Court 
of Appeal and the High Court of Justice – Trial Division. The Court of Appeal hears appeals from the 
decisions of the High Court and magistrates' courts in civil and criminal matters; the Court is 
itinerant. The trial courts sit throughout the year. Each member territory has its own High Court.10 
The ECSC has unlimited jurisdiction in the member States; nat ional legislation in the OECS countries 
confers rule -making authority on the Chief Justice. The ECCAA  regulates civil aviation activities 
within OECS protocol member States except for Montserrat . By July  2022, five member States had 
passed the Eastern Caribbean Civil Aviation Authority Agreement Act.11 
2.3.2.2   CARICOM  
2.25.  CARICOM  came into force with the signing of the Treaty of Chaguaramas in Trinidad and 
Tobago on 4  July 1973.12 The six OECS -WTO Members are founding members o f CARICOM. The 
Revised Treaty of Chaguaramas (RTC), signed in the Bahamas in 2001, established the CARICOM 
Single Market and Economy (CSME). The CSME is a regional integration process that should create 
a single market and economy among CARICOM member Stat es through the removal of all barriers 
to the free movement of factors of production, including fiscal, legal, physical, technical , and 
administrative restrictions. The OECS -WTO Members enacted domestic legislation giving effect to 
the CSME. The CARICOM Si gle Market (CSM) is the first  component of the CSME. The second 
component, the "single economy" , was scheduled to be completed in  2016, but implementation has 
been deferred due to pending administrative, fiscal , and legal issues.  
2.26.  Fifteen countries and terr itories participate in CARICOM: Antigua and Barbuda; the  Bahamas; 
Barbados; Belize; Dominica; Grenada; Guyana; Haiti; Jamaica; Montserrat; Saint  Kitts and Nevis; 
Saint Lucia; Saint  Vincent and the Grenadines; Suriname; and Trinidad and Tobago. Currently, 1 3 
member States are part of the CSME.13 Within CARICOM, the OECS member States along with Belize 
and Haiti are designated less developed countr ies (LDCs) and have the right to protect vulnerable 
 
8 The Eastern Caribbean Telecommunication Authority was established in May  2000 as a regional 
organization.  
9 The Bank is governed by a Monetar y Council and a Board of Directors and is managed by a Governor . 
10 OECS , Our Institutions . Viewed at: https://www.oecs.org/en/who -we-are/institutions . 
11 Dominica, Grenada, Saint Kitts and Nevi s, Saint  Lucia, and Saint Vincent an d the Grenadines.  
12 The Revised Treaty of Chaguaramas was notified to the WTO in document WT/REG155/1, 8  July 2003.  
13 Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Saint  Kitts and 
Nevis, Saint  Lucia, Saint  Vincent and the Grenadines, Suriname, and Trinidad and Tobago.  WT/TPR/S/437 • OECS -WTO Members  
 
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  and sensitive domestic industries to redress disadvantages ar ising from the obligations under the 
CSME.  
2.27.  Since 1991, the CARICOM member States have sought to implement a C ET. However, as at 
August  2022 tariff schedules across countries still differed, due partly to the exceptions allowed 
(Lists A, C , and D), and part ly to the mechanism permitting the suspension of the application of the 
CET under certain circumstances.  
2.28.  Duty-free access is granted by OECS -WTO M embers to imports from other CARICOM 
countries, provided these imports meet the CARICOM rules of origin criter ia and barring the 
exceptions provided by Article  164 of the Treaty of Chaguaramas (see below). However, Customs 
Service Charges are levied an all imports, including those from CARICOM members.14 
2.29.  The RTC contains safeguard provisions that allow, in the event of serious balance -of-payments 
and external financial difficulties, the adoption of restrictions on the right to establishment, to 
provide services and to move capital, and the use of quantitative rest rictions on imports. These 
restrictions must not discriminate among member States ; must seek to minimize economic, 
commercial , and financial damage to any other member State ; must not exceed those necessary to 
deal with the circumstances ; and must be appli ed for no longer than 18  months. The LDCs of 
CARICOM, including all OECS -WTO M embers, may limit imports of goods from other CARICOM 
members for up to three years, and may take other C ouncil for Trade and Economic Development 
(COTED) -authorized measures.  
2.30.  OECS-WTO Members may also have recourse to Article  164 of the RTC, whereby COTED may, 
if necessary, as a temporary measure in order to promote the development of an industry in any of 
the LDCs, authori ze such States to suspend CARICOM origin treatment to any  description of imports 
eligible on grounds of production in one or more LDCs. 
2.31.  The two main bodies of CARICOM are the Conference of Heads of Government (the highest 
organ) and the Community Council of Ministers (the second -highest organ). These two bodies are 
assisted by the following five bodies: the Council for Finance and Planning (COFAP); C OTED ; the 
Council for Foreign and Community Relations (COFCOR); the Council for Human and Social 
Development (COHSOD); and the Council for National Security and Law E nforcement (CONSLE).15 
2.32.  COTED, composed of the trade ministers from all members, is responsible for the promotion 
of trade and economic development. COTED must approve any change in tariffs by a CARICOM 
member. COFCOR is responsible for the relation ship between CARICOM, international organizations, 
and third countries. COFAP is responsible for economic policy coordination, and monetary and fiscal 
integration of members.  
2.33.  A quasi -cabinet of Heads of Government has been established, with each Head having the 
responsibility to lead in critical areas for the region's integration process. The CARICOM Secretariat 
assists in the implementation of the provisions of the RTC.  
2.34.  The Caribbean Court of Justice (CCJ) was established to ensure a single unified interpretation 
and application of the RTC ; it has both original and appellate jurisdiction and all of its decision are 
final. The CCJ also functions as an appellate jurisdiction, considering and determining appeals in 
both civil and criminal matters from common law court s of member States that are party to its 
establishment. In the exercise of its appellate jurisdiction, the Court is a superior court of record in 
relation to national courts. CARICOM States may choose to substitute the jurisdiction of the 
London -based Priv y Council with that of the CCJ. In the case of some OECS members, this has not 
occurred, since it would imply a change in their Constitutions (see national annexes ). 
2.35.  Several other regional institutions have allowed the deepening of trade -related integratio n. 
The CARICOM Regional Organization for Standards and Quality (CROSQ) aims to harmonize and 
circulate regional standards. The Caribbean Agricultural Health and Food Safety Agency (CAHFSA) 
coordinates SPS measures in CARICOM. The CARICOM  Competition Commission  (CCC)  has the 
 
14 The RTC  prohibits imposing export or import duties on other CARICOM members except Customs 
Service Charges  (charges commensurate with the cost of services rendered).  
15 CARICOM , The Organs and Bodies of the Community . Viewed at: https://caricom.org/the -organs -and-
bodies -of-the-community/ . WT/TPR/S/437 • OECS -WTO Members  
 
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  objective of promoting and protecting competition in the region. The CARICOM Private Sector 
Organization (CPSO) represents the interest of private businesses.  
2.36.  All OECS countries are members of the Association of Caribbean States (ACS), a forum for 
economic and trade policy coordination at the regional level, comprising 25 Caribbean countries.  
2.3.2.3   CARICOM  bilateral agreements  
2.37.  CARICOM has signed bilateral trade agreements with five Latin American countries: the 
Bolivarian  Republi c of Venezuela (1992), Colombia (1994), Dominican  Republic (1998), Costa  Rica 
(2004) , and a trade and economic cooperation agreement with Cuba (December  2000).  
2.3.2.3.1   CARICOM -Colombia  
2.38.  The CARICOM -Colombia Agreement on Trade, Economic and Technical Cooperation was  
signed in 1994 and re -negotiated in 1997. A CARICOM -Colombia Joint Council on Trade, Economic 
and Business Cooperation administers the Agreement , which is reciprocal only for CARICOM  MDCs. 
OECS countries, as LDCs within CARICOM, are not obliged to grant a ny concessions under the 
Agreement. The Agreement has its own rules of origin regime. Safeguards must take the form of a 
suspension of preferential treatment and may also be used for balance -of-payments purposes. The 
measures may be initially for no longer  than a year, with the possibility of renewal for a further year. 
The application of anti -dumping measures is allowed.  
2.3.2.3.2   CARICOM -Costa Rica  
2.39.  The Free Trade Area agreement with Costa  Rica entered into force on 1  March  2004. 
A CARICOM -Costa Rica Joint Council w as established to implement the Agreement, which is 
reciprocal with respect to CARICOM's MDCs, but not the OECS -WTO M embers. The Agreement 
provides for free trade or preferential access for a wide range of products, excluding sensitive goods. 
Tariffs on 95 % of products have been phased out. The Agreement contains anti -dumping and 
sanitary and phytosanitary  provisions and dispute settlement dispositions; it excludes goods 
produced in or shipped from export processing zones from preferential treatment. Rules of origin 
were established for this Agreement.  
2.3.2.3.3   CARICOM -Cuba  
2.40.  The CARICOM -Cuba Trade and Economic Agreement, which entered into force in 2006, 
provides for duty -free access for a list of goods agreed by both sides. The Agreement provides for 
duty-free treatm ent on specified goods, but the OECS -WTO Members  do not grant preferences to 
Cuba under this Agreement. Goods produced in free zones are exempted from preferences.  
2.3.2.3.4   CARICOM -Dominican  Republic  Free Trade Agreement  
2.41.  The CARICOM -Dominican  Republic  FTA, which entered into force in 1999, granted bilateral 
duty-free access for a number of products from 1  January  2004. The FTA allows for the mutual 
granting of tariff concessions by CARICOM MDCs and the Dominican  Republic . The OECS -WTO 
Members  do not have to grant concessions under this agreement, but benefit from the market access 
opening granted by the Dominican  Republic . The Agreement provides for immediate duty -free access 
for all goods other than those set out in Appendi x II, subject to the phased reducti on of the MFN 
tariff rate, and Appendix  III, subject to the application of the MFN rate. The Agreement established 
a Joint Council, made up of representatives of CARICOM and the Dominican  Republic , which meets 
once per year or at special sessions. CARICOM and the Dominican  Republic  also agreed on 
procedures for settling disputes emerging from trade under the FTA.  
2.3.2.3.5   CARICOM -Venezuela  
2.42.  The CARICOM -Venezuela Agreement on Trade and Investment entered into force on 
1 January  1993. It is a one -way preferential agree ment aimed at promoting CARICOM exports to 
the Bolivarian Republic of Venezuela through duty -free access for some products or phased 
reductions in tariffs. Tariffs were eliminated on 22% of products (mostly fresh produce, 
confectionery, cosmetics, jams and  jellies, medicines, wooden furniture, horticultural products, WT/TPR/S/437 • OECS -WTO Members  
 
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  spices, processed foods, and toilet preparations), while 67% of products benefit from tariff 
reductions. As a result, the Bolivarian  Republic of Venezuela 's average applied tariff on imports fr om 
CARICOM is about one third lower than its MFN tariff.  
2.3.2.4   CARIFORUM -EU Economic Partnership Agreement (EPA)  
2.43.  The E PA between the European  Union  and 15  Caribbean States in the CARIFORUM group, 
including the OECS -WTO Members , was signed in 2008. In the EPA, th e European  Union  committed 
to the immediate removal of all tariffs and quotas on CARIFORUM exports except for arms and 
ammunition as well as of sugar and rice, which gained full duty and quota -free access at the end of 
2009. For their part, CARIFORUM State s committed to more gradual reductions in their tariffs over 
a period of up to 25 years. Certain sensitive products are excluded. It was agreed that there would 
be a three -year moratorium before the reduction of tariffs started and the reductions would be from 
a harmonized base.16 The Agreement also covers trade in services, public procurement, intellectual 
property rights , and environmental protection.  
2.44.  The EPA guarantees the OECS -WTO M embers and other CARIFORUM countries MFN treatment 
in trade in goods. CA RIFORUM States were guaranteed the right to any more favourable concession 
or improvement or relaxation of rules of origin offered to any third country by the E uropean  Union 
by way of an FTA. CARIFORUM, on the other hand, must only provide MFN treatment to  EU products 
in cases of FTAs signed with major trading economies.17 The E uropean  Union and CARIFORUM States 
must enter into consultations where any signatory CARIFORUM State enters into an FTA with a major 
trading economy that offers better concessions than those offered in the EPA.  
2.45.  The EPA  makes provision for the establishment of  five new joint CARIFORUM -EU institutions: 
(i) the Joint Council; (ii)  the Trade and Development Committee (T&DC); (iii)  the Parliamentary; 
(iv) the Consultative Committee ; and (v)  the Special Committee on Customs Cooperation and Trade 
Facilitation.  
2.46.  The EPA is under going its second review to assess progress in implementation. In 2021, the 
creation of a Special Committee on Services was agreed in principle, as a result of which the T&DC 
would no longer be responsible for services.18 However, as of December 2022, the C ommittee had 
not yet been fully operationalized and the T&DC remained responsible for matters of the Agreement 
related to trade in services . When fully operationalized, the Committee will be  tasked with: 
(i) the creation of a wider market for service expor ts; (ii)  continued diversification of CARIFORUM's 
services offering given the expanded European market base; (iii)  facilitation of investment in sectors 
key in promoting sustainable development (such as tourism, research and development , and 
computer -related services); and (iv)  retention of policy space for fledging sectors or those activities 
geared towards national development goals such as poverty alleviation.  
2.47.  In the course of this Review, the OECS Commission noted that OECS -WTO Members had 
identified ar eas in which the EPA could be improved, including operationalizing market access 
conditions, making full use of the development provisions of the EPA, and improving the monitoring 
of the Agreement 's implementation and performance.  
2.3.2.5   CARIFORUM -UK EPA 
2.48.  The EPA between the CARIFORUM States and the United  Kingdom is based on the 
CARIFORUM -EU EPA. It established a free trade area in goods, within the meaning of Article  XXIV of 
the GATT  1994, and for trade in services, within the meaning of Article  V of the GATS. Th e 
Agreement has been notified to the WTO.19 
2.49.  As of  25 January  2021, the United  Kingdom, Antigua and Barbuda,  Bahamas, Barbados, 
Belize, Dominica, Dominican  Republic, Grenada, Guyana, Jamaica, Saint  Kitts and Nevis, 
 
16 Base rates are calculated using a basic aver age of the applied rates across CARIFORUM per tariff line.  
17 Under the EPA, a major trading economy is defined as a country or group of countries with a share of 
world merchandise trade exceeding 1% or 1.5%, respectively.  
18 Council Decision (EU) 2020/2137 of 15 December  2020. 
19 WTO documents WT/REG420/N/1, 7  January  2021; and WT/REG420/N/1/Add.1, 5  May 2021.  WT/TPR/S/437 • OECS -WTO Members  
 
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  Saint Lucia, and Saint Vincent and the Grenadines  have provisionally appl ied the CARIFORUM -UK 
EPA. 
2.50.  A Trade and Development Committee was established to discuss issues pertaining to the EPA. 
The Committee held its first meeting via videoconference on 7  October  2021. It reviewed progress 
and issues so far in applying the CARIFORUM -UK EPA. No other meeting ha s taken place since then 
and up to December 2022.  
2.3.2.6   Non-reciprocal agreements  
2.51.  The OECS -WTO Members  also benefit from the Caribbean Basin Initiative  (CBI) , and 
Caribbean -Canada  Trade Agreement  (CARIBCAN), both of which are non -reciprocal and unilateral.  
2.52.  Under the CBI, in effect since 1984 as part of the Caribbean Basin Economic Recovery Act 
(CBERA), the OECS -WTO Members  are eligible for duty -free access to the US  market subject to rules 
of origin. In October 2020, the United  Sates extended preferential treatment under the 
United  States -Caribbean Basin Trade Partnership Act (CBTPA) until September  2030. In 2009, 2014, 
and 2019 , the United  States requested, and was g ranted, a five -year extension of the WTO waiver 
for its C BERA .20 The waiver allows the United  States  to provide duty -free treatment for eligible 
products of Caribbean countries without having to extend the same treatment to like products of 
any other WTO M ember.  
2.53.  Under CARIBCAN21, implemented in 1986, exports originating in the OECS and other 
CARICOM countries are granted duty -free treatment by Canada: the eligible products exclude 
textiles, clothing, footwear, luggage and other leather goods, lubricating oi ls, and methanol.22 
CARIBCAN was set to expire on 31  December  2011, but since negotiations between Canada and 
CARICOM towards an FTA were ongoing, an extension was requested by Canada of the waiver of its 
obligations under paragraph 1 of Article  I of the GATT, allowing it to extend duty -free treatment until 
31 December  2013.23 On 28  July 2015, the extension of the waiver was granted until 
31 December  2023.24 
2.54.  The OECS -WTO Members' products are eligible for the Generalized System of Preferences 
(GSP) sch emes of Australia, Canada, Japan, New  Zealand, the Russian  Federation , Switzerland , and 
Türkiye. Dominica, Grenada, Saint  Lucia, and Saint  Vincent and the Grenadines may benefit f rom 
the United  States ' GSP scheme , but no preferences have been granted since  1 January 2021, as the 
renewal of the scheme is awaiting approval by the U.S. Congress . Antigua and Barbuda and 
Saint Kitts and Nevis are no longer eligible due to their classification as high -income countries.  
2.4  Investment regime  
2.55.  There is no Common Investm ent Policy  among OECS -WTO Members . The authorities have 
noted that, for the time being, there is no policy coordination at the OECS level; the OECS 
Commission does not currently have the mandate to deal with investment issues, which remain the 
prerogative of the different member States. However, the intention is to seek coordination in the 
future  and to display efforts to remove intra -OECS investment barriers (e.g. with respect to land 
ownership). An investment facilitation needs assessment project is under way, with the intention to 
reach a common approach regarding investment. Three of the OECS -WTO Members, Antigua and 
Barbuda, Dominica , and Grenada, are co -sponsors of the Joint Statement on Investment Facilitation 
for Development, in  the WTO.  
2.56.  The OECS -WTO Members' foreign investment regime changed in five of the six countries 
before or during the review period. Antigua and Barbuda repealed its Fiscal Incentives Act, ahead of 
the WTO -agreed deadline and replaced it by broader incentives legislation that does  not provide 
 
20 WTO documents G/C/W/765, 27  June 2019; and WT/GC/M/180, 3  December  2019.  
21 Economic and trade development assistance program me for the Commonwealth C aribbean countries 
and territories established as a result of a commitment by Canada at the Commonwealth Heads of Government 
meeting in Nassau in October  1985. 
22 To qualify for duty -free access, at least 60% of the ex -factory price of eligible products mus t originate 
in one or more  beneficiary countr ies or in Canada . 
23 WTO document G/C/W/657, 27  October  2011.  
24 WTO document WT/L/ 958, 30 July 2015. WT/TPR/S/437 • OECS -WTO Members  
 
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  explicit export subsidies and does not impose local -content requirement. Dominica, Grenada, and 
Saint Kitts and Nevis all amended their Fiscal Incentives Act to eliminate incentives contingent upon 
export performance.  Saint Lucia amended its Fiscal Incentives Act to expend its scope to services, 
but further changes are needed to remove references to export performance; the authorities have 
stated that no subsidies contingent upon exportation are currently granted . Saint Vincent and the 
Grenadines is in the process of revising the Act.  
2.57.  Licences are not required for investment in sectors considered of priority for the respective 
OECS country, or where the purchase does not exceed a certain threshold. In general terms, foreign 
investment recei ves national treatment in all OECS -WTO Members, with the main exception of the 
requirements for obtaining alien landholding licences, which are related to limitations in land 
availability for commercial purposes, as well as to the need to rationalize land use and enable 
nationals to afford property while avoiding speculation by foreigners. Licences are granted subject 
to satisfactory applications to the national Cabinet of Ministers and payment of the required fees.  
2.58.  During the period under review , the OECS -WTO Members amended their International 
Business Companies (IBCs) legislation to maintain accounting information in line with international 
standards (Table  2.5). As from 1  January  2022, the preferential tax treatment for companies has 
been repealed. IBCs will now be taxed at the general tax rate.  
Table  2.5 International Business Companies legislation amendments, 2022  
Member  Legislation  
Antigua and Barbuda  Law (Miscellaneous Amendment) Act 2018 – Act No. 26 of 2018 
(17 December2018)  
Dominica  Act No. 9 of 2015 – International Business Companies (Amendment) (30  July 
2015)  
International Business Company (Amendment) Act 2019 (21  January  2019)  
Virtual Asset Business Act 1 of 2022 (30 May 2022)  
Grenada  Mutual Exc hange of Information on Taxation Matters (Common Reporting 
Standard) Regulations SRO.30 of 2017 (13 October 2014)  
Saint Kitts and Nevis  Nevis Business Corporation Ordinance, 2017 (20 July 2017)  
Saint Lucia  Amendment 8 of 2015 (4 August 2015)  
Regulation SI No. 73 of 2015 (17 August 2015)  
Amendment 17 of 2016 (11 May 2016)  
Amendment 25 of 2016 (29 December 2016)  
Amendment 3 of 2017 (17 April 2017)  
Regulation SI No. 8 of 2017 (13 February 2017)  
Amendment 13 of 2018 (11 December 2018)  
Amendment 2 of 2019 (11 February 2019)  
Amendment 17 of 2019 (2 July 2019)  
Regulations SI No. 32 of 2019 (1 April 2019)  
Regulations SI No. 140 of 2019 (14 October 2019)  
Amendment 2 of 2022 (16 February 2022)  
Saint Vincent and the 
Grenadines  International B usiness Companies (Amendment and Consolidation) 
(Amendment) Act 2018 – Act No. 36 of 2018 (31 December 2018)  
Source:  WTO Secretariat, based on information provided by the authorities . 
 WT/TPR/S/437 • OECS -WTO Members  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures dire ctly affecting imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  Customs procedures are similar across the OECS -WTO Members , although there no common 
rules regarding them . This will be the situation when the OECS Customs Union is completed, which 
is currently a work in progress. A Customs entry or declaration is required for all consignments 
imported into the OECS -WTO Members. All the OECS -WTO Members require also an invoice , a bill 
of lading or an airway bill, a certificate of origin for imports from CARICOM countries and, when 
needed, import licences and SPS certificates. Hard copies of declarations are generally no longer 
required: invoices, air waybill/bill of lading, and  a worksheet on the classification and value of the 
goods can be uploaded electronically. The use of a customs broker is not mandatory in any 
OECS -WTO Member, except Dominica. OECS -WTO Members were in the process of updating and 
modernizing their customs l egislation during the period under review.  
3.2.  All OECS -WTO Members currently use the ASYCUDA World system for customs processing and 
clearance. Importers need to register with the customs authorities to access the system. They all 
made consider able progress d uring the period under review as regards the implementation of trade 
facilitation measures. Since the introduction of a risk assessment system via ASYCUDA World, 
commercial cargo is no longer systematically inspected by a Customs Officer to ensure conformi ty 
with the Customs entry and the attached invoices in most OECS -WTO Members. To decide on 
inspection, the different Customs offices classify shipments according to risk.  
3.3.  All OECS -WTO Members have ratified the Trade Facilitation Agreement (TFA). The degree  of 
implementation of the TFA varies according to the country (Table  3.1). The respective Customs 
offices have an operational risk management system running, following the adoption of ASYCUDA 
World. Single Windows for imports are not yet in place. There is  currently no authorized economic 
operators scheme in place: OECS -WTO Members are currently committed to implement such a 
scheme by 31  December  2023.  
3.4.  All the OECS -WTO Members use the hierarchy of valuation methodology set out in the WTO 
Customs Valuation A greement. According to authorities , in several of the  OECS -WTO Members the 
transaction value is used for valuation in some 90% -95% of imports; the main exceptions are used 
vehicles, where recourse to list of prices is frequently used.  
3.5.  Preshipment inspectio n systems are not used by the OECS -WTO Members.  
3.6.  All the OECS -WTO Members apply the CARICOM preferential rules of origin. None of them has 
any non -preferential rules of origin. Goods are deemed to be from CARICOM  origin  if they have 
been: ( i) completely produced within CARICOM; or ( ii) produced within CARICOM wholly or partly 
from materials imported from third countries, provided a substantial transformation has taken place 
within CARICOM. Substantial transformation may be achieved by a change of tariff heading, or by 
complying with the requirements defined specifically for each tariff heading in Part  A of the List in 
Schedule  II of the CARICOM Treaty. Furthermore, under a "safeguard " mechanism, a manufacturer 
may use mat erials from outside the region when they are not available in a CARICOM member State. 
However, COTED needs to provide a waiver to authorize such imports. Additionally, a certificate of 
origin from the exporting country is required with verification taking place at the importing end. 
CARICOM rules of origin were revised during the period under review to take into account the 
transposition of the CET to HS17, although this nomenclature is not currently used by several 
OECS -WTO Members.  
3.1.2   Tariffs  
3.1.2.1   Structure  
3.7.  In 20 22, the OECS -WTO Members applied tariff schedules based on different revisions of the 
HS nomenclature, from HS07 to HS17.  The number of tariff lines ranges from 6,486  tariff lines 
(Saint  Vincent and the Grenadines) to 6,696 tariff lines (Dominica).  Nearly all tariffs are applied on 
an ad valorem  basis across all countries , with very few exceptions.  WT/TPR/S/437 • OECS -WTO Members  
 
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  3.8.  Tariffs are not harmonized across countries. This will only be accomplished once the Customs 
Union is consolidated . At that point, OECS -WTO Members would seek to  harmonize also other 
charges on imports and indirect taxes, including the Customs Service Charge, the Valued Added Tax, 
and excise duties.  
3.1.2.2   MFN applied tariff  
3.9.  The OECS -WTO Members apply the CARICOM Common External Tariff (CET) with national 
exceptions , as detailed in List  A (items in respect of which member States wish to encourage national 
production), List  C (items for which minimum rates have been agreed by the COTED) , and List  D of 
the CET . List A contains a list of items on which suspension of the rates of duty contained in the 
Schedule of Rates under Article  83 of the Revised Treaty has been granted to member  States for an 
indefinite period subject to review by the COTED, with the rates to be ap plied by member States. 
List C contains items in respect of which minimum rates of duty have been agreed by the COTED , 
with the actual rates of duty to be applied by individual member States; these rates differ from the 
CET and may be increased up to WTO bound levels. List  D contains additional items in respect of 
which suspension of the CET under Article  83 of the revised Treaty has been granted to S aint Kitts 
and Nevis, other OECS member States , and Belize. List  D has two parts: Parts  I and II. Only Part  II, 
Products of Tariff Headings ex 30.03 and ex 30.04 (medicaments) for which suspension of the CET 
under Article  83 of the Revised Treaty has been granted to Saint  Kitts and Nevis, other OECS Member 
States and Belize , applies to the OECS -WTO Members.  
3.10.  The average unweighted applied MFN tariff rate for the OECS -WTO Members in 2022 was 
11.7%, up from 11% in the previous Review. MFN a verage rates vary across countries, partly 
reflecting the different rates applied in their lists of exceptions to the CET. Indiv idual national applied 
MFN rates thus range between 10.7% (Saint  Lucia) and 12.8% (Dominica) (Table  3.1). The average 
applied MFN rate across all countries is significantly higher for agricultural products (WTO definition) 
than for non -agricultural product s. The average  tariff rate  for agricultural products for the six 
OECS -WTO Members in 2022 was 20.5%. National MFN tariff averages for agricultural products 
ranged from 17.4% in Saint  Kitts and Nevis to 26.7% in Dominica. The average MFN rate for 
non-agricu ltural products was  9.9% in 2022. National MFN tariff averages for non-agricultural 
products ranged from 8.6% in Saint  Lucia to 10.6% in Antigua and Barbuda.  
Table  3.1 OECS summary tariff analysis, 2022  
Description  MFN 
average  Antigua 
& 
Barbuda  Dominica  Grenada  Saint 
Kitts and 
Nevis  Saint 
Lucia  Saint 
Vincent 
and the 
Grenadines  
Total  11.7 12.1 12.8 12.1 11.1 10.7 11.3 
HS 01 -24 23.3 22.8 28.8 23.0 21.3 22.9 21.1 
HS 25-97 8.7 9.3 8.7 9.4 8.6 7.5 9.0 
By WTO category  
WTO Agriculture  20.5 19.4 26.7 20.4 17.4 20.1 19.1 
 - Animals and products 
 thereof  19.8 24.5 21.0 23.6 17.5 16.8 15.4 
 - Dairy products  7.3 13.2 6.0 6.4 7.6 5.6 5.0 
 - Fruit, vegetables and 
 plants  24.4 23.4 29.3 23.9 22.8 23.5 23.4 
 - Coffee and tea  19.4 17.4 30.2 17.4 16.6 17.4 17.7 
 - Cereals and 
 preparations  16.7 15.1 18.3 16.9 14.8 17.7 17.4 
 - Oil seeds, fats and oils 
 and their Products  15.7 16.0 15.6 15.0 14.7 16.0 16.8 
 - Sugars and 
 confection ery 24.5 24.0 28.3 24.3 24.3 23.9 22.4 
 - Beverages, spirits and 
 tobacco  36.2 25.3 75.4 29.9 22.7 34.1 29.7 
 - Cotton  2.5 5.0 0.0 5.0 0.0 0.0 5.0 
 - Other agricultural 
 products n.e.s.  10.0 8.4 8.7 12.2 8.8 12.4 9.3 
WTO Non -agriculture 
(including petroleum)  9.9 10.6 10.0 10.4 9.9 8.7 9.7 
 - WTO Non -agriculture 
 (excluding petroleum)  9.9 10.6 10.1 10.4 9.9 8.6 9.7 
 - - Fish and fishery 
products  29.3 30.3 29.8 29.1 30.3 29.4 26.7 
 - - Minerals and metals  7.2 7.6 7.4 8.1 7.1 5.5 7.6 
 - - Chemicals and 
 photographic supplies  7.3 7.4 9.0 7.5 6.2 6.8 7.1 WT/TPR/S/437 • OECS -WTO Members  
 
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  Description  MFN 
average  Antigua 
& 
Barbuda  Dominica  Grenada  Saint 
Kitts and 
Nevis  Saint 
Lucia  Saint 
Vincent 
and the 
Grenadines  
 - - Wood, pulp, paper and 
furniture  9.9 10.1 9.6 10.6 9.9 8.9 10.2 
 - - Textiles  6.9 7.5 6.3 7.6 6.3 5.9 7.7 
 - - Clothing  19.7 19.9 19.3 19.8 19.9 19.9 19.9 
 - - Leather, rubber,  
footwear and travel goods  9.7 9.9 9.0 10.3 9.1 9.5 10.2 
 - - Non-electric machinery  5.2 6.9 3.8 6.5 5.1 2.9 6.2 
 - - Electric machinery  10.1 10.9 9.4 10.8 10.5 7.8 11.1 
 - - Transport equipment  11.9 14.3 11.0 12.0 15.3 8.6 10.1 
 - - Non-agriculture articles 
n.e.s.  13.2 13.8 13.3 13.2 13.4 12.1 13.4 
 - Petroleum  8.3 6.9 6.5 11.1 7.3 9.8 8.1 
By ISIC sectora 
Agriculture and fisheries  22.9 22.6 25.1 22.6 22.1 22.7 22.1 
Mining  5.1 3.5 6.2 7.0 2.6 4.8 6.4 
Manufacturing  10.8 11.3 11.8 11.3 10.3 9.8 10.6 
By HS section  
 01 Live animals & products  25.0 27.9 26.8 26.3 25.3 23.7 19.8 
 02 Vegetable products  20.9 20.0 23.2 20.9 19.6 20.4 21.4 
 03 Fats & oils  26.0 26.6 27.7 24.7 25.6 26.0 25.7 
 04 Prepared food , etc. 23.5 19.0 37.9 21.3 17.3 24.2 21.2 
 05 Minerals  5.5 4.1 5.9 7.3 3.7 5.6 6.5 
 06 Chemicals & products  7.2 7.0 9.1 7.2 6.1 6.9 7.0 
 07 Plastics & rubber  7.7 8.5 7.3 8.6 7.1 7.4 7.6 
 08 Hides & skins  9.2 9.8 7.9 10.8 8.0 8.3 10.5 
 09 Wood & articles  10.8 11.1 10.8 10.7 10.9 10.6 10.8 
 10 Pulp, paper , etc. 7.1 7.3 6.6 7.6 7.0 5.6 8.5 
 11 Textile & articles  10.4 10.9 9.8 11.0 10.0 9.8 11.1 
 12 Footwear, headgear  16.1 16.3 15.9 16.3 16.3 15.9 16.1 
 13 Articles of stone  10.1 10.7 9.8 10.6 10.7 8.9 10.1 
 14 Precious stones, etc.  17.9 17.7 20.2 19.8 17.4 15.5 16.7 
 15 Base metals & products  6.5 7.3 6.5 7.3 6.7 4.4 6.8 
 16 Machinery  6.9 8.3 5.7 7.9 6.9 4.4 8.0 
 17 Transport equipment  11.6 14.0 10.8 11.8 14.8 8.3 9.9 
 18 Precision equipment  10.3 10.6 10.6 11.3 9.9 8.2 11.3 
 19 Arms and ammunition  32.8 39.8 30.2 23.9 39.8 39.1 24.2 
 20 Miscellaneous 
 manufactures  15.3 15.2 15.2 16.3 15.3 14.5 15.0 
 21 Works of art, etc.  20.0 20.0 20.0 20.0 20.0 20.0 20.0 
By stage of processing  
First stage of processing  19.0 18.6 20.9 19.4 18.2 18.7 18.0 
Semi-processed products  5.6 6.4 5.4 6.3 5.3 4.5 5.7 
Fully processed products  13.0 13.4 14.6 13.1 12.4 11.8 12.6 
a ISIC (Rev.2) classification, excluding electricity (1  line). 
Source:  WTO Secretariat estimates, based on data provided by the auth orities . 
3.1.2.3   Tariff bindings  
3.11.  The OECS -WTO Members ' tariff bindings vary across countries. The different WTO schedules 
vary considerably with respect to individual items and sectors. The scope of bindings also varies 
across countr ies: while Grenada has bound all of its tariff lines, the other OECS members ha ve bound 
between 91.5% (Dominica) and 99.7% (Saint  Vincent and the Grenadines).  
3.12.  Agricultural tariffs were generally bound at a ceiling rate of 100%, with some exceptions, in 
all OECS -WTO Members. Exceptions are generally bound at rates above 100% in Antigua and 
Barbuda, Dominica, Saint  Lucia, and Saint  Vincent and the Grenadines, whil e in Grenada some tariff 
lines were bound at zero. In the case of non -agricultural goods, most OECS -WTO M embers bound 
the majority of tariff lines at a ceiling rate of 50%, with the exception of Saint Kitts and Nevis, where 
they were bound at 70%. There ar e a number of exceptions in all countries. Exceptions include tariff 
lines bound at rates as high as 250% for agricultural products, a s well as  unbound tariff lines  for 
some  non-agricultural goods in Antigua and Barbuda, Dominica, and Saint  Lucia. The main  product 
groups bound at rates above 50% or 100% include motor vehicles, cement, alcohol, margarine, and 
fruit. Only S aint Kitts and Nevis bound other duties and charges in the WTO, at a general rate of 
18% (3% CSC and 15% consumption tax), with a number o f exceptions.  
3.13.  The difference between average bound rates and the average applied MFN rate across the 
OECS -WTO Members varies between 46.8% (Grenada) and 66.3% (Saint  Kitts and Nevis). This WT/TPR/S/437 • OECS -WTO Members  
 
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  significant difference in theory provides considerable scope to increase tariffs. However, in practice, 
this is difficult to do, considering that changes in the tariff require  approval of COTED.  
3.14.  The applied rates for a few products in Grenada and in Antigua and Barbuda exceed the rates 
bound in the WTO. However, the authorities of Antigua and Barbuda hoped that this would be 
rectified when adopting the HS22 nomenclature. The authorities of Grenada noted that the problem 
stems from mistakes in their original schedule of bindings, and that t hey are exploring ways  of 
correcting it.  
3.1.3   Tariff and tax concessions  
3.15.  The now amended Fiscal Incentives Acts and other incentive schemes in place across 
OECS -WTO Members provide for duty -free imports and tax relief if certain conditions are met. 
Imports dest ined for government institutions; diplomatic missions and international organizations; 
and hospitals, relief organizations, and other charitable institutions are also accorded duty -free 
treatment.  
3.16.  Furthermore, individual countries also allow duty -free impo rts for specific reasons. For 
example , in Dominica imports of raw materials and inputs, materials, tools, plant, machinery, and 
building materials used in a variety of construction and manufacturing activities are duty -free. 
3.17.  Concessions may also be designe d to meet specific, temporary needs such as post -hurricane 
reconstruction activity in certain countries.  
3.1.4   Tariff preferences  
3.18.  Duty-free access is granted by OECS -WTO M embers to imports from other CARICOM 
countries, provided these imports meet the CARICOM rul es of origin criteria and barring the 
exceptions provided by Article  164 of the Treaty of Chaguaramas. Under this Article, COTED may, if 
necessary, as a temporary measure in order to promote the development of an industry in any of 
the less -developed State s, which includes all OECS  members, authorize  such States to suspend 
CARICOM origin treatment to any description of imports eligible on grounds of production in one or 
more LDCs. 
3.19.  The Article  164 regime was introduced in 2006. There have been three "edition s" of the Article 
since then, the latest came into force on 1  January  2020. This third  edition of the Article  164 regime 
covers 14 product groups across 39 tariff lines. These products groups are: wheat or meslin flour; 
aerated waters and beverages; malt; beer; stout; prepared complete animal feed; oxygen and 
carbon dioxide; acetylene; candles of paraffin wax; solar water heaters for domestic use; paint and 
varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified 
natural  polymers, dispersed or dissolved in an aqueous medium; furniture; curry powder; and pasta. 
The regime provides tariff protection to most of the products on the list for 10 years and for 5 years 
for two products : curry powder and pasta. Some OECS -WTO Membe rs have applied the regime since 
2020, e.g. Saint  Lucia, but with some exceptions. Others have only partially implemented the 
regime; Dominica and S aint Kitts and Nevis have delayed implementation due to varying 
circumstances.  
3.20.  The OECS -WTO Members grant pr eferential access to their markets to most EU and UK 
products under the EPA with the European  Union  and the United  Kingdom. Implementation of 
preferences with the E uropean  Union started on 1  January  2009 and is expected to be completed by 
1 January  2033. By then, all products originating in the E uropean  Union, with the exception of the 
exempted products, which mostly relate to agricultural and agr o-industry products, are expected to 
be granted duty -free access to OECS countries. The pace of  implementation varies by country.  
3.1.5   Other charges affecting imports  
3.21.  In addition to the customs tariff, the OECS -WTO Members impose myriad taxes and levies. 
Five of the countries apply a Customs Service Charge  (CSC), which varies from 3% (Dominica) to 
6% (Grenada, Saint Kitts and Nevis , Saint  Lucia, and Saint Vincent and the Grenadines ). The CS C 
is charged on all imports including those from other CARICOM countries. However, all countries have 
exempted certain goods from the CSC. In 2010, Antigua and Barbuda replaced the CSC with the WT/TPR/S/437 • OECS -WTO Members  
 
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  revenue recovery charge (RRC). The RRC is charged at a rate of  10% on all imports as well as on 
domestically produced goods.  
3.22.  Five OECS -WTO Members levy a VAT on goods and services; rates across countries vary: in 
Saint Lucia it is  12.5%; in Dominica, 15%; in Grenada and in Saint Vincent and the Grenadines, 
16%; and in Saint  Kitts and Nevis, 17%. All countries have goods and services that are VAT exempt, 
while others are charged at a lower rate. For example, for hotels the VAT rate is lower than the 
standard rates . Saint Kitts and Nevis and S aint Lucia introduced VAT during the period under review. 
Antigua and Barbuda continues to apply a sales tax at a rate of 15% on goods and services. Like 
the other OECS  countries, it has certain goods and services that are exempt and others that are 
charged the tax at a lower rate.  
3.23.  With the exclusion of Antigua and Barbuda, all the OECS -WTO Members charge an excise tax. 
The tax is applied, inter alia, on tobacco products, alcoholic beverag es, automobiles, and petroleum 
products. It is ad valorem  basis and as a specific tax, depending on the country and the product.  
3.24.  Four of the countries apply an environmental levy, mainly on used cars and other goods that 
the authorities deem detrimental to  the environment. The coverage of the levy both in terms of 
products and the rate charged differs across countries. S aint Vincent and the Grenadines applies a 
vehicle surcharge and a deposit on bottles, while S aint Lucia introduced and subsequently 
discont inued a 1% levy during the period under review.  
3.1.6   Import prohibitions, restrictions , and licensing  
3.25.  All the OECS -WTO Members maintain import prohibitions and licensing in place. The 
prohibitions are for health, safety, and security concerns. Import licensing requirements for certain 
products are also in place for the same reasons. Some licences are in place for entirely economic 
reasons, such as the protection of infant industries or for balance -of-payments purposes. Import 
licensing schemes may be tied to reg ional integration ( e.g. products covered by Article  164 of the 
Revised CARICOM Treaty), such that some products are subject to licensing only when imported 
from outside the CARICOM region or, in some cases, from outside the OECS subregion.  
3.26.  During the perio d under review, there were no changes to the import prohibitions or the 
import licensing regime in the OECS countries. All the OECS -WTO Members, except Saint  Vincent 
and the Grenadines, have notified their import licensing regime to the WTO. The authoritie s of 
Saint Vincent and the Grenadines indicated that they were in the process of completing a draft of 
the notification.  
3.27.  Most licences, other than those imposed for health and safety reasons, are granted 
automatically, and in many cases are applied for and  received at the time of importation. 
Non-automatic licences are used in every OECS -WTO Member , except Dominica; the coverage varies 
by country, but generally includes agricultural and agri -business goods, as well as goods where there 
are safety concerns. While the rules vary from country to country, the licences are generally valid 
for one month or six weeks, are not transferable, and do not provide for penalties in the case of 
non-use. 
3.28.  In the course of this Review, the authorities noted than they are in t he process of starting to 
consider the harmonization of border restrictions, including licensing,  as part of the consolidation of 
the customs union.  
3.1.7   Contingency measures  
3.29.  During the period under review, there were no changes to the anti -dumping and 
counterv ailing legislation in any of the OECS -WTO Members, which in most cases pre -dates their 
independence and hence is not tailored following the WTO Agreements. Antigua and Barbuda, 
Dominica, Grenada, and Saint  Lucia notified their anti -dumping and countervaili ng legislation to the 
WTO prior to the review period. Saint  Kitts and Nevis notified to the WTO in 2021 its domestic 
legislation on anti -dumping and countervailing duties. Saint  Vincent and the Grenadines has not 
submitted to the WTO any notifications rega rding anti -dumping, countervailing, or safeguards 
measures and the relevant legislation. None of the OECS -WTO Members has an authority devoted WT/TPR/S/437 • OECS -WTO Members  
 
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  to initiat ing and conduct ing an investigation, and thus none  took anti-dumping actions during the 
review period. None of the OECS -WTO Members has national safeguards legislation.  
3.30.  The Revised CARICOM Treaty provides the basis for adopting anti -dumping measures but only 
against imports from other CARICOM member States. Al so under CARICOM rules, 
OECS -WTO Members, as LDCs, may invoke the special provisions in Chapter  7 of the Revised Treaty 
of Chaguaramas  (RTC) , in particular Articles 150 and 164. Article  150 (safeguard measures) of the 
RTC entitles a disadvantaged country t o limit imports of goods from other member States for up to 
three years, and to take other COTED -authorized measures. Article  164 (promotion of industrial 
development) of the revised Treaty allows less developed CARICOM countries to petition COTED to 
suspe nd community -origin treatment to certain products, as a temporary measure, in order to 
promote the development of an industry, and apply tariff rates higher than the CET. There are no 
provisions on measures against dumping or subsidies  applied on countries  outside CARICOM.  
3.2  Measures directly affecting exports  
3.2.1   Export procedures, export prohibitions and export taxes  
3.31.  Export procedures mirror the corresponding import procedure across OECS -WTO Members. 
Documents required include an export declaration; a bill of lading or airway bill; an invoice; a 
certificate of origin (for preferential trade as needed); and an SPS certificate (when required).  
3.32.  The export restrictions applied by OECS -WTO Members are based on CITES standards: all of 
them ban exports of wild birds a nd wildlife. Exports of narcotics and drugs are prohibited or subject 
to licensing in several countries, as are exports of goods bearing the country 's coat of arms or flag.  
3.33.  Export licences  are generally not required. The exceptions include vegetables and s everal 
types of seafood in Saint  Kitts and Nevis; and swine, sheep, goats, lobsters, and conchs in 
Saint Vincent and the Grenadines.  
3.34.  In order to export restricted products from Grenada, exports must seek prior approval from 
relevant line ministries. Grenad a allows cocoa exports only with the written approval of the Grenada 
National Cocoa Association, and bananas may be exported only by the Grenada Banana Co -operative 
Society or persons licensed by the Society. For nutmeg, exporters must obtain a licence fro m the 
Grenada Co-operative Nutmeg Association. Exports of coral require a licence from the Ministry of 
Agriculture ; exports of l ive sheep and goats need a l icence from the Veterinary Division, Ministry of 
Agriculture ; fish and fish product  exports require a l icence by the Fisheries Division of the Ministry 
of Agriculture ; and exports of minor spices (other than nutmeg) need a licence from the Minor Spices 
Co-operative M arketing Society . The Agricultural Industries Protection Act, Cap  7 enables the 
Minister of Agriculture to prohibit temporarily the exportation of plants necessary for the 
establishment or extension of any agricultural industry in Grenada, or to make expor tation 
contingent upon the receipt of a licence.  
3.35.  Export taxes are applied by Antigua and Barbuda on lobsters and fish, while Dominica imposes 
export royalties on sand and stone, and Saint  Kitts and Nevis taxes exports of some live animals, 
and some other p roducts.  
3.2.2   Export subsidies, financing support, and promotion  
3.36.  All the OECS -WTO Members provided export performance subsidies under the previous Fiscal 
Incentives Acts. They have all notified their export subsidy schemes to the WTO. These include fiscal 
incen tive laws, which provide for relief from customs duty and income tax waivers for a certain 
length of time depending on the size of the investment. Most countries amended their Fiscal 
Incentives Acts during the review period. Antigua and Barbuda repealed al together its Fiscal 
Incentives Act in 2013. Dominica, Grenada, and Saint  Kitts and Nevis amended their Fiscal 
Incentives Acts in 2019 to remove any reference to enclave industries and to subsidies contingent 
upon exportation. Saint  Lucia also amended its F iscal incentives Act but has still to remove 
references to export performance from the Act, although the authorities have noted that they do not 
grant subsidies contingent upon exportation. Saint Vincent and the Grenadines is still to modify its 
Fiscal Inc entives Act to remove the reference to tax incentives contingent upon exportation. In its 
latest notification to the WTO, Saint  Vincent and the Grenadines indicated that the beneficiaries were WT/TPR/S/437 • OECS -WTO Members  
 
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  informed of the export subsidies' phasing out, and that a revie w of existing legislation is underway 
with a view of aligning the Act with international obligations.25 The authorities noted that the request 
for amending the Fiscal Incentives Act has been submitted to the Attorney General's Chamber and 
is expected to be  completed by 2024.  
3.37.  Antigua and Barbuda, Grenada, Saint  Lucia, and Saint  Vincent and the Grenadines have 
legislation that provides for the operation of free zones. However, free zones are not operational in 
Grenada and Saint Vincent and the Grenadines.  Enterprises operating in free zones are exempt from 
customs duty and other taxes on imports of goods used to construct and operate enterprises within 
the zone. Enterprises also benefit from tax benefits for a certain period, depending on the size of 
the inves tment and the number of employees. Saint Kitts and Nevis does not have legislation 
providing for the establishment of free zones. It has, however, legislation providing for a duty -free 
regime. The Grenada Investment Development Corporation (GIDC) operates three business parks 
in the country providing commercial real estate facilities for "export ready" business.  
3.38.  The OECS -WTO Members do not have national programmes for export credit, insurance , or 
guarantees.  
3.39.  There is no common OECS export promotion strategy . Exporters may receive export 
promotion support from the OECS Competitive Business  Unit. In addition, some OECS -WTO Members 
have individual investment  promotion agencies. For example, the Dominica Export and Import 
Agency (DEXIA) provides support to exporters of agricultural, agri -processed, and manufactured 
goods. In S aint Lucia, Export Saint Lucia provides information and support to local businesses and 
international buyers ; it also coordinates and evaluates the national export development strategy.  
The Saint  Kitts Investment Promotion Agency (SKIPA) and the Nevis Investment Promotion Agency 
(NIPA) are in charge of devising and implementing incentives schemes to attract investment, 
introduce new policies to assist and facilitate business in specific sectors, encourage new 
employment opportunities, and promote diversification of the economy.  
3.3  Measures affecting production and trade  
3.3.1   Incentives  
3.40.  The OECS -WTO Members continue to apply a number of incentives schemes to encourage and 
promote both domestic and  foreign investment. To achieve these objectives, the OECS countries 
operate similar incentive schemes under their fiscal incentives laws, which in most cases are called 
Fiscal Incentives Acts, which provide for, inter alia, duty -free imports, tax exemptio ns, and 
preferential tax rates. Benefits are granted generally in the form of revenue forgone and are limited 
in time. These Act s have been, however, modified  in four OECS -WTO Members , as noted above , to 
remove any export -performance -related subsidy compon ent. The incentives provided aim at 
fostering sector development, job creation, poverty reduction, and economic diversification.  
3.41.  Sector -specific incentives are also in place. For example, incentives to the tourism sector 
through the Hotels Aid Act. Agricul ture and small businesses also receive incentives or support and 
technical cooperation.  
3.42.  During the period under review, Dominica, Grenada, Saint  Kitts and Nevis, and Saint  Lucia 
amended their legislation on incentives. The main change modified the export s ubsidy element, 
present in the previous legislation, so as to meet the export subsidy phase -out by 2015. 
Saint Vincent and the Grenadines is still in the process of modifying its fiscal incentives law 
accordingly.  
3.43.  The OECS -WTO Members have set  up investmen t promotion agencies that serve as one -stop 
shops for investors.  
 
25 WTO document G/SCM/N/299/VCT, 19  January  2017.  WT/TPR/S/437 • OECS -WTO Members  
 
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  3.3.2   Standards and other t echnical requirements  
3.44.  All the OECS -WTO Members have a bureau of standards (Table  3.2). During the period under 
review, Dominica, Grenada, Saint  Kitts and Nevis , and Saint  Lucia made notifications to the WTO 
TBT Committee.  
Table  3.2 OECS -WTO Members' standards bureaux, 2022  
 Antigua and 
Barbuda Dominica  Grenada  St Kitts 
and Nevis  St Lucia St Vincent 
and the 
Grenadines 
Year established  1987 2000 1989 1998 1990 1998 
WTO notifications  (1) 0 28 30 2 55 13 
Functions  
Develop standards  Yes Yes Yes Yes Yes Yes 
Certification  No No Yes Yes Yes No 
Conformity  
assessment  No No Yes Yes Yes Yes 
Market surveillance  No No Yes Yes Yes Yes 
Metrology  Yes No Yes Yes Yes Yes 
Source:  Information provided by authorities.  
3.45.  During the period under review, Antigua and Barbuda, Saint  Kitts and Nevis, and Saint  Lucia 
adopted new Standards Acts. The authorities indicate that the remaining OECS -WTO Members are 
also considering passing new legislation. Antigua and Barbuda and Grenada passed legislation on 
metrology but implementing regulations have not been issued in the former.  
3.46.  The national standar ds bod ies of each of the OEC S-WTO Members are similar with respect to 
their structure, mandate, and the procedures required for the adoption of standards and technical 
regulations, which are referred to as either compulsory or mandatory standards and are d eveloped 
in essentially the same manner as standards. OECS -WTO Members generally favour the adoption or 
adaptation of international or regional standards , preferably CARICOM Regional Organisation for 
Standards and Quality  (CROSSQ ) standards , as the basis f or their technical regulations.  
3.47.  The process to develop a standard or a technical regulation begins with the identification of a 
need and the development of a proposal. Standards are drafted by technical committees, upon 
request from interested parties, whi ch can include government agencies. A draft specification is then 
developed and discussed by the technical committee, after which it is submitted to the Standards 
Council; a period of public comments ( 30-90 days, dependent on the draft standards ) is allowe d. 
Following receipt and review of comments, the standard may be amended and reconsidered by the 
Standards Council. Technical regulations are notified to the WTO prior to implementation of the 
measure, with 60 days for circulation and comments. They may re quire a regulatory impact 
assessment by the office of the Minister responsible for standards  prior to adoption. The relevant 
minister then publishes the technical regulation or standard in the Government Gazette.  
3.48.  Standards and technical regulations are nor mally reviewed and updated every five years by 
the respective Standard bodies , except for those which need to be reviewed more frequently. T he 
procedure for revisions and amendments is the same as for the preparation of standards. Grenada, 
Saint Kitts and Nevis, and S aint Lucia undertake certification. The Grenada Bureau of Standards 
conducts batch, product, and quality certification. In Saint  Lucia, certification is done only against 
an existing standard, and is generally based on 100% testing. Other OECS -WTO Members  stated 
that due to resource constraints, they did not have fully functional certification bodies and that 
certification activities are undertaken on a regional basis.  
3.49.  Since the last Review, Dominica has made 17 notifications regarding technical  regulations to 
the TBT Committee covering several aspects such as specifications on import and export 
requirements, sampling methodologies, phytosanitary procedures, and pest risk management and 
assessment, and specifications for a variety of products inc luding tyres, biodegradable products, 
concrete derivatives, seeds, fruit, and vegetables. Also since the last Review, Grenada submitted 
14 notifications to the Committee, covering specifications for pneumatic tyres  and hollow concrete 
blocks; and labelling  requirements, especially for toys  and pre-packaged  food/water/tobacco 
products. As of end -2022, there were 150 national standards in Grenada, of which 24 had become 
technical regulations in force.  WT/TPR/S/437 • OECS -WTO Members  
 
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  3.50.  Between 2013 and 2020, Saint  Lucia made six notifications to the Committee  with respect to 
its compulsory national standards (technical regulations) and changes in legislation. The notifications 
dealt with labelling of individual packages and cartons of tobacco products intended for retail sale in 
Saint Lucia; la belling of pre-packaged  goods (revision); standards for coconut oil; national standard 
for the purity, treatment, bacteriological acceptability, packaging and labelling of all waters that are 
pre-packaged  for sale and used as beverages or in foods; and metrology issues. As of 
November  2022, there were some 108 locally  developed Saint  Lucia National Standards and 
30 compulsory standards (technical regulations) in force in Saint  Lucia. Including adapted and 
adopted international standards, there were in 466 standards in force in Sa int Lucia on that date. 
The main categories of products and processes covered by active standards are food and beverages; 
building materials; chemicals; consumer products; fresh produce; furniture; gaseous fuels; 
information and documentation; labelling; l ighting; quality and quality management; tourism; and 
tyres. As of November  2022, Saint  Kitts and Nevis had adopted seven compulsory national 
standards, based on international or regional standards, on packaged water; labelling of 
prepackaged food; labelli ng of goods; energy efficiency; tourism and related services ; and 
environmental management. During the review period, Antigua and Barbuda and Saint Vincent  and 
the Grenadines did not notify the WTO on any TBT  matters.  
3.51.  Not all the OECS -WTO Members have loca l testing facilities. For instance, while Saint  Kitts 
and Nevis, and Saint Vincent and the Grenadines have testing laboratories, Saint Lucia has not. This 
implies that the testing of products is not standardized across the OECS; due to the lack of faciliti es 
in some OECS States, the products have to be sent for testing to other CARICOM countries, mainly 
to Trinidad  and Tobago . 
3.3.3   Sanitary and phytosanitary measures  
3.52.  No notifications to the WTO SPS Committee during the review period were made by any of 
the OECS -WTO Members. The y do not have an inventory of SPS measures adopted and there are 
still no formal procedures to notify trading partners of SPS measures or any changes to the SPS 
regime. Identifying and notifying existing SPS measures appears  to be a challen ge that requires 
technical assistance. The authorities indicate that model Animal and Plant Health bills are currently 
being prepared  (or have been recently passed, like in Antigua and Barbuda)  to harmonize procedures 
and measures across the OECS, but as o f now, there is still no common policy in this area.  
3.53.  Imports of animals and plants, and their products are subject to document inspection and any 
product sampling is generally carried out at the border. However, there are few or no domestic 
facilities available to conduct tests of samples so in practice there is no risk assessment at the 
border. Samples often are sent for testing to another country in the region (e.g.  Barbados  or 
Trinidad  and Tobago ), or outside the region (e.g.  the United  States). The lack of laboratory facilities 
continues to make it difficult for the OECS -WTO Members  to ensure that any SPS measures they 
adopt are based on an evaluation of actual risks, unless recourse is made to foreign assistance.  
3.54.  Imports of plants and unp rocessed products must be accompanied by a phytosanitary 
certificate issued by the exporting country. Imports of live plants and all unprocessed plant products 
and commodities and non -commercial untreated seeds are generally subject to quarantine 
regulatio ns, and imports of soil or products containing soil are prohibited. Import licences, and 
quarantine, may be required for imports of live animals or their products.  
3.55.  Since the last Review, new legislation pertaining to SPS measures has been enacted in Antigu a 
and Barbuda, the Animal Health Act  2017, which governs imports of animals, poultry, livestock, and 
poultry products. The legislation covers aspects such as notifiable diseases, the related surveillance 
system, inspection procedures at the border, and oth er import requirements including quarantines. 
A draft Food Safety Act aimed at regulating the sale of food by producers, processors, manufacturers , 
or handlers of food, as well as the import and export of food into or from Antigua and Barbuda is 
currently being discussed in Parliament. In 2020 Dominica issued the Pesticides Control (Prohibition) 
Regulations, which prohibit the import ation of pesticides with glyphosate as an active ingredient.  
3.56.  The OECS -WTO Members are members of Codex Alimentarius, but not of the 
World  Organisation  for Animal Health. They are all contracting parties to the International Plant 
Protection Convention (IPPC).  WT/TPR/S/437 • OECS -WTO Members  
 
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  3.3.4   Competition policy and price controls  
3.57.  There is no functional competition policy legislation in plac e in any of the OECS -WTO Members. 
The authorities indicate that unfair competition issues are dealt with ad hoc  by the respective Ministry 
of Commerce.  
3.58.  Chapter  VIII of the Revised CARICOM Treaty deals with competition policy and provides for 
the enactment and harmonization of legislation in CARICOM member States. The CARICOM 
Competition Commission, inaugurated in January  2008 and headquartered in Suriname, is in charge 
of competition issues and enforcement in the CSME. Additionally, the OECS  countries have agreed 
to establish a supra -national competition agency to handle competition matters within its single 
market, which, thus far, has not been created. The draft OECS Competition Bill prepared by the 
CARICOM Secretariat is being reviewed by the respective n ational authorities. The EPA with the 
European  Union  and that with the United  Kingdom contain provisions with respect to competition 
policy.  
3.59.  Consumer Protection Acts have been enacted in Grenada, Saint  Lucia, and Saint  Vincent and 
the Grenadines. Legislati on of this respect is in the pipeline in Antigua and Barbuda, Dominica, and 
Saint Kitts and Nevis.  The OECS -WTO Members also have Distribution of Goods and Prices Acts 
(Antigua and Barbuda, Grenada, Saint Kitts and Nevis, and Saint Lucia). These Acts provide for the 
regulation of the distribution, purchase , or sale of goods; the terms and conditions on which certain 
goods may be sold and hired; and the control of prices at which certain goods may be sold.  
3.60.  Price controls are applied both as maximum prices an d maximum mark -ups allowed on import 
or wholesale prices. All the OECS -WTO Members currently apply some sort of price control. The 
coverage of the products and services subject to price controls ranges from 5 items in Dominica to 
about 100  in Saint  Vincent  and the Grenadines; the number and scope of these products has 
remained stable since the last Review. They apply de jure. Products covered are inter alia, essential 
food items, fuel and natural gas, fertilizers, and certain building materials.  
3.61.  The establi shment of a common commercial policy is currently under discussion.  
3.3.5   State  trading and state -owned  enterprises  
3.62.  Dominica, Saint  Vincent and the Grenadines, and Grenada are the only OECS  members to 
have notified a state  trading enterprise to the WTO. Grenada notified the Grenada Cocoa Association 
(GCA) in 2010; Saint  Vincent and the Grenadines notified the Saint  Vincent Marketing Corporation 
in 200026; and Dominica notified the Dominica Import Export Agency (DEXIA) and the Dominica 
Banana and Marketing  Corporation in 2001. The latter was replaced by Dominica Banana Producers 
Limited, which does not have a monopoly on the export of bananas. DEXIA still has the exclusive 
right to import most sugar, as well as bulk rice.  
3.63.  In Antigua and Barbuda, the Central  Marketing Corporation (CMC), established in 1973, no 
longer enforces its monopoly on imports of carrots, cabbages, onions, sweet peppers, and tomatoes; 
the system of import licensing is being phased out. Saint  Kitts and Nevis no longer has any marketing 
board. 
3.3.6   Government procurement  
3.64.  None of the OECS -WTO Members is a party to the WTO  Agreement  on Government 
Procurement (GPA). There are no immediate plans for any OECS -WTO Member to join the GPA or 
participate as an observer. Although no official statistics a re available regarding its value, 
government procurement is relatively large in each of the countries, considering that the 
Government is a main source of employment and represents a relatively large share of GDP. Public 
sector current expenditure on goods  and services represents up to some 10% of GDP in some 
OECS -WTO Members, while capital expenditure accounts for about the same share of GDP.  
 
26 The Saint Vincent Marketing Corporation was dissolved , and it was replaced with the Agricultural 
Input Warehouse in 2005.  WT/TPR/S/437 • OECS -WTO Members  
 
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  3.65.  During the period under review, Antigua and Barbuda, Grenada, Saint  Vincent and the 
Grenadines , and Saint  Lucia pas sed new legislation or regulations on government procurement. 
Antigua and Barbuda introduced transitional regulations for the implementation of Procurement 
Administration Act , 2011. Grenada established a unified public procurement regime; the Public 
Procur ement and Disposal of Public Property Act , 2014 and its implementing regulations entered 
into force in 2015. Saint  Vincent and the Grenadines established a new public procurement regime, 
with the entering into  force of the Public Procurement Act , 2018 and the establishment of the Central 
Procurement Board responsible for administering the Act. Saint  Lucia passed the Public Procurement 
and Asset Disposal Act , 2015, which has not been fully implemented yet.  
3.66.  The respective Procurements Acts generally set out p rinciples guiding the selection among 
bids, typical periods involved in the procurement process, publication and other transparency 
requirements, appeal and review procedures, and sanctions. The laws and regulations of the 
OECS -WTO Members generally provid e for both public and selective tendering and aim at making 
the tendering procedure transparent. In this sense, they mandate public competition by bidders for 
government contracts and contain conditions for the use of the various procurement methods.  Public 
tendering is generally used for larger projects and when required by a donor's rules, if financed 
through donor agency funds. Tendering is generally decentralized for acquisitions up to certain 
thresholds and centralized via the Ministry of Finance for t enders above those thresholds. Tenders 
are generally allocated choosing the bid with the lowest price, but other  factors  may be taken into 
consideration such as qualitative issues, the credibility of a bidder, and the speed of supply. Other 
than in Dominic a, which grants a 20% margin for domestic suppliers, local suppliers or those from 
CARICOM are not granted any preferences.  
3.67.  There is no OECS or CARICOM model legislation with respect to government procurement, 
but there are currently some regional discussi ons with respect to a Common Procurement Bill. In 
the Revised CARICOM Treaty, government procurement is part of a built -in agenda for future 
negotiations aimed at developing disciplines. The CARICOM Protocol on Public Procurement, adopted 
in 2019, provides  for the development of common guidelines. However, as of end -2022, these 
disciplines had not yet been developed. The CARIFORUM -EU EPA, signed in October  2008, contains 
public procurement conditions that require transparency and the use of agreed international 
standards in all government procurement above a threshold of approximately EUR 164,000. Similar 
provisions are contained in the CARIFORUM -UK EPA.  
3.3.7   Intellectual property rights  
3.68.  During the period under review, some of the OECS -WTO Members made amendments to their 
intellectual property rights (IPR) legislation. Antigua and Barbuda enacted a new Patent Act in 2018, 
as well as its implementing Regulations. S aint Vincent and the Grenadines passed a new bill on plant 
varieties protection. Legislation on geographical indications enacted in Saint Kitts and Nevis in 
periods covered by past reviews also entered into force during the review period. Regulations for 
copyright were implemented in 2018.  
3.69.  All OECS -WTO Members have similar copyright and patent laws. They are all in force, with 
the exception of Saint  Lucia's Patent Act, which is awaiting implementing regulations. There is no 
specific legislation for the prot ection of undisclosed information in any of the OECS -WTO Members.  
3.70.  All the OECS -WTO Members have notified their IPR legislation to the WTO. Saint  Kitts and 
Nevis notified all its IPR  legislation to the TRIPS Council in December  2016.  
3.71.  IPR legislation across OECS -WTO Members contains provisions with respect to infringement 
of rights. Penalties include prison terms, fines, and seizures of goods. In general, the Copyright Act 
of each OECS member makes provision for restricting the importation of copies infringin g copyright. 
Copyright holders may request Customs to prohibit imports of goods that may constitute an 
infringement of their rights. Upon application by the owner or exclusive licensee of a copyrighted 
work, a court may direct the Customs Comptroller to de tain the infringing importation. In general 
terms, as IPRs are considered private rights, the burden is on the right holder to enforce such rights. 
Complainants must prove to the satisfaction of the Court that their interests have been prejudicially 
affect ed or that their rights have been infringed. Data on enforcement were not available in the 
context of this Review.  WT/TPR/S/437 • OECS -WTO Members  
 
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  3.72.  At the subregional level, a more un iform practice across OECS -WTO M embers regarding IPR 
enforcement at the border is under consideration as p art of the OECS Initiative on Customs Union 
and Free Circulation of Goods, according to the authorities. One of the goals is to establish a Regional 
Patent Body, for which a harmonized Patents Bill across the region is required.  In this regard, an 
OECS Reg ional Directorate on IPRs is expected to be established in the medium  run, with the aim of 
enhancing IPR protection and monetizing local intellectual property assets. The work programme 
would include, starting from a low level of integration, developing a convergence scenario, in which 
there is a harmonization of laws and regulations  across the OECS -WTO Members, prior to the 
establishment of the Directorate. The Directorate will unify policies and centralize the administration 
of trademarks and other indust rial property.  
 WT/TPR/S/437 • OECS -WTO Members  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture  and fisheries  
4.1.  The contribution of the agriculture sector to GDP has been shrinking through the years in the 
OECS -WTO Members. However, during the period under review, the agriculture sector gained some 
GDP share in the OECS countries as a group, increasing from 3.6% of GDP in 2014 to 3.8% in 2021, 
mainly as a result of the sharp decline in tourism -related activities, which los t (temporarily) GDP 
share. Agricultur e is more i mportant to the economies of the Windward Islands (Dominica, Grenada, 
Saint Lucia, and Saint  Vincent and the Grenadines), which have been traditionally bananas and 
nutmeg (Grenada) producers , than to the Leeward Islands (Antigua and Barbuda, and Saint  Kitts 
and Nevis ), where agriculture lost considerable importance with the demise of the sugar industry.  
4.2.  The agriculture sector faces challenges due to the OECS -WTO Members being small island 
economies, where resources of land and water are scarce. Competitiven ess is also affected by the 
fact that agriculture is dominated by small farm operations, making it difficult to achieve economies 
of scale. The sector is susceptible to exogenous shocks such as natural disasters and global market 
fluctuations. Hurricanes I van and Emily destroyed or significantly damaged Grenada's tree crops 
(e.g. nutmeg) in September  2004 and July  2005; Hurricane Tomas eradicated all banana plantations 
in Saint  Lucia in October  2010; Hurricane Maria in September 2017 uprooted all banana and tuber 
plantations in Dominica and destroyed vast amounts of livestock; the La  Soufrière volcano eruption 
in April  2021 almost wiped out the whole agriculture sector in Saint  Vincent and the Grenadin es. All 
these natural disasters caused a significant setback in agricultural production.  
4.3.  During the review period, traditional agricultural products continued losing their dominance, 
while non -traditional products such as fruits and vegetables became the l argest production  and 
export categories. For instance, the banana industry continued to shrink during the review period; 
it accounted for just 0.2% of nominal GDP in 2020 (0.4% in 2012). The production of nutmeg 
represents currently less than 0.1% of regio nal GDP.  
4.4.  There is a regional OECS  Agriculture Policy endorsed by the OECS national authorities , the 
Revised OECS  Regional Plan of Action for Agriculture 2012 -2022, but agricultural policies in the 
OECS -WTO Members continue to be formulated mainly at the do mestic level by the respective 
Ministries of Agriculture. Efforts directed to operationalize a food security policy in each 
OECS  country have continued. In the Regional Action Plan, OECS -WTO Members identified a number 
of policy objectives for the agricult ure sector, including diversification to non -traditional exports, 
alleviation of rural poverty, food security, promotion of agro -tourism , integration with the CARICOM 
Single Market and Economy (CSME) , and building resilience against climate change.  
4.5.  All OEC S-WTO Members are net food importers, mostly from the United  States . Agricultural 
products receive higher tariff protection than non -agricultural goods in all OECS -WTO Members, with 
an average rate of 20.5%, according to the WTO definition of agriculture, or of 22.9%, according to 
the ISIC classification (Table  3.1). Taking the subregion as a whole, the majority of the WTO -defined 
agriculture lines are bound at 100%, over four times the simple average MFN  tariff. There are no 
tariff quotas for agriculture p roducts.  
4.6.  Tariff protection is higher than average for fruit and vegetables, animals and products thereof, 
coffee, alcoholic beverages, and tobacco (i.e. on List C of Exceptions to the CET). The 
OECS -WTO Members apply lower than CET rates on food and food p roducts (i.e.  on List A of 
Exceptions to the CET). During the review period, Dominica, Grenada, Saint  Lucia, and Saint  Vincent 
and the Grenadines invoked Article  164 of the Revised Treaty of Chaguaramas, temporarily 
suspending the application of the CARICO M CET to certain agricultural products such as animal feed, 
durum wheat, curry powder, and beverages; the suspension resulted in a hike in the applied tariff 
rates. In addition, most OECS -WTO Members also use non -automatic import licensing requirements 
for a number of agricultural products, when imported from non -CARICOM countries. The aim is to 
encourage that imports of certain agricultural products be first sourced from other OECS or CARICOM 
countries. The exception s to this policy are Dominica  and Grenad a, where, due to tariffication, the 
use of licensing is limited.  
4.7.  Import restrictions to encourage self -sufficiency are also applied on some agricultural products, 
including poultry parts, eggs, and vegetables in Grenada and Saint Lucia. During the review process, WT/TPR/S/437 • OECS -WTO Members  
 
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  the authorities of some of the OECS  members noted that the measures were in place partly to offset 
unfair t rading practices from trading partners. A revision of these restrictions had been considered, 
but it was decided to leave them in place, due to the lack of possibilities for contingency measures 
to counter them, as well as the absence of legislation relate d to food safety and of laboratory testing 
and diagnostic facilities.  
4.8.  OECS support to agriculture is very limited. Domestic support measures are mainly taken in 
the form of input support – the ministries responsible for agriculture provide agricultural inp uts such 
as seeds, fertilizers, feed, and greenhouse plastics at discounted prices. Farmers may also benefit 
from income tax exemptions and from duty -free importation of tractors and other agricultural 
machinery. Fiscal incentives in most OECS members incl ude a partial or complete waiver of import 
duties and VAT  exemption (or zero rates) on most inputs for the production of primary or processed 
agricultural commodities. The scale of these support measures is modest. According to the 
authorities, as CARICOM CET rates on agricultural inputs are low, such support measures are needed 
only when the global price of inputs fluctuates. Support is also provided to counter the adverse 
impact of natural disasters on the agricultural sector; in situations like this, far mers have received 
income support, and assistance by restoring key agricultural infrastructure financed mainly with 
international funds. Assistance by providing veterinary services and field sanitation (spraying 
pesticides) is also granted for free to farm ers. 
4.9.  Most OECS -WTO Members (except Saint  Kitts and Nevis) continue to maintain marketing 
boards for some agricultural imports; several of them engage in state trading activities.  
4.10.  Fisheries is one area where there is food self -sufficiency within the subregi on. The fisheries 
subsector has a key role to play in terms of food security and export earnings. The fishing fleets are 
small in scale. Government assistance to the subsector is provided as financial support for 
upgrading/modernizing fishing gear and vess els. The aim of such support was provided is to enhance 
the fishers'  safety and the sustainability of fish resources. Exports of fish and fisheries ' products are 
subject to licensing requirements in Antigua and Barbuda, Grenada, and Saint  Vincent and the 
Grenadines.  
4.11.  Except Saint  Vincent and the Grenadines, no other OECS -WTO Member has submitted 
notifications to the WTO with regard to domestic support and export subsidies for agriculture.  
4.2  Manufacturing  
4.12.  The manufacturing sector makes a modest contribution to GDP in most OECS -WTO Members, 
estimated at 3.3% in 2021 for the whole group (Table  1.1). Only in Saint  Kitts and Nevis, the 
contribution is slightly higher (4.7%) on account of light manufacturing activities, especially the 
production of electronic compone nts. The sector 's performance suffers from structural 
competitiveness issues, including high energy , labour , and transport costs; the small size of the 
domestic markets and firms ; and difficulty in access to credit . The main subsectors include 
beverages, f ood, fabricated metals, and chemical products; together they account for over 
three  quarters of production. The performance of the sector has been partly supported by exports, 
mainly to the United  States  and the E uropean  Union, of a few manufactured goods,  such as electrical 
products (Saint  Lucia); switches, relays, fuses, and electrical capacitors (Saint  Kitts and Nevis); and 
soaps and toothpaste (Dominica).  
4.13.  The OECS Commission published in October 2018 an OECS Development Strategy 2019 -2028, 
in which it laid out a strategic framework for the manufacturing sector. The Strategy targets 
increasing production in the segments of "regional processing "27 and "labour intensive tradables"28, 
with a special focus on SMEs regarding assistance with their financing needs and for meeting 
packaging and labelling requirements for export markets.  The Strategy also elaborated to boost 
intra-OECS export s as a way to achieve econom ies of scale and enha nce the competitiveness of the 
manufacturing sector.29 
 
27 Regional processing includ es industries of food, beverage s and tobacco ; fabricating metal s; printing 
and publishing; and rubber and  plastics.  
28 "Labour intensive tradables " refer to furniture, jewellery, toys, text iles, apparel, and leather.  
29 OECS Commission (2018), Development Strategy: Shaping Our Shared Prosperity,  2019-2028. 
Viewed at: https://drive.google.com/file/d/1fpfs1PLNIldV5xMskqP0jALZp0MM8_pP/view . WT/TPR/S/437 • OECS -WTO Members  
 
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  4.14.  The 2021 average MFN tariff on imports of industrial products (ISIC -3 definition) was 10.8%, 
with a peak of 165% (Dominica); the average MFN tariff for non -agricultural products 
(WTO  definition) was 9. 9%. The highest average tariffs are applied on beverages and tobacco, 
clothing and apparel articles, footwear, fats and oil , and prepared food.  
4.15.  During the review period, the CET on aerated beverages, alcoholic beverages, and pasta was 
suspended in Dominica , Grenada, Saint  Lucia, and Saint  Vincent and the Grenadines; the CET on 
animal feed, candles, and wooden furniture was also suspended in Grenada. Import licensing 
requirements are maintained in order to encourage sourcing certain manufactured goods (oxyge n 
in cylinder, acetylene, bleach, candles, PVC pipes, tyres, wooden doors, galvanized sheets, and 
aluminium windows and doors) from OECS or CARICOM countries.30 
4.16.  At the subregional level, the OECS Competitive Business Unit , under the OECS Commission , 
provid es direct support to SMEs in the manufacturing sector by addressing some of the structural 
challenges the sector faces.  The Competitive Business Unit has rolled out programmes to help SMEs 
enhance their capacity for packaging and labelling , as well as of operation al management.  
4.17.  At the national level, m anufacturing benefits from the incentives granted under the Fiscal 
Incentives Act and its amendments, and other schemes. This includes tax relief from corporate 
income tax relief (invest allowance, carry forw ard losses), exemption or reduction in customs duties 
on machinery, and manufacturing inputs and raw materials to approved enterprises for up to 
15 years, if certain conditions are met. During the review period, all OECS -WTO Members, except 
Saint Vincent a nd the Grenadines, repealed or amended their Fiscal Incentive Acts. The main change 
to the Acts i n recent years in Antigua and Barbuda, Dominica, Grenada, and Saint Kitts and Nevis 
has been the removal of the export requirement for incentives, that is, abo lishing the incentive 
programme that offered a tax holiday of up to 15 years to enterprises exclusively for export 
(i.e. enclave enterprises), and various tax credits after the tax holiday elapsed depending on export 
performance. Saint  Vincent and the Gren adines noted that the reform of its Fiscal Incentives Act is 
under  way. Saint Lucia is yet to remove references to export performance in its Fiscal Incentives 
Act. 
4.18.  Some OECS -WTO Members countries (Antigua and Barbuda, Grenada, Saint  Lucia, and 
Saint Vincent and the Grenadines) have enacted Freezone Acts. Currently, only the Antigua and 
Barbuda Free Trade and Processing Zone and the Saint  Lucia Freezone are in operation.  
4.3  Services  
4.3.1   GATS commitments  
4.19.  Commitments related to services are relativel y limited. The OECS -WTO Members made GATS 
commitments in 4 to 6 of the 12 main service areas, and in 8 to 32 of the 160 subsectors (Table  4.1). 
All OECS -WTO Members made commitments in financial services , tourism and travel -related 
services , and recreation al and sporting services. Most OECS -WTO Members scheduled commitments 
for communications services and transport services, but Antigua and Barbuda, Dominica, and 
Grenada were the only OECS -WTO Members  to make commitments in the extended WTO 
Negotiations on Telecommunications and to have signed the Fourth Protocol. None of the 
OECS -WTO Members participated in the extended WTO Negotiations on Financial Services. 
Horizontal commitments on the movement of natural persons and the provision of services through 
commercial presence were included in the GATS Schedules. This generally requires local 
incorporation of the foreign provider. Employment of foreign natural persons is subject to work 
permit regulations and labour and immigration laws.  
Table  4.1 Sectors in which GATS specific commitments were made  
Sector -specific commitments  Antigua 
and 
Barbuda  Dominica  Grenada  St Kitts 
and Nevis  St Lucia  St Vincent & 
the 
Grenadines  
Number of sectors  6 4 4 5 5 5 
Number of subsectors  32 20 19 8 9 8 
 
30 This import licensing requirement for priority sourcing from neighbouring countries is not in pla ce in 
Dominica and Grenada.  WT/TPR/S/437 • OECS -WTO Members  
 
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  Sector -specific commitments  Antigua 
and 
Barbuda  Dominica  Grenada  St Kitts 
and Nevis  St Lucia  St Vincent & 
the 
Grenadines  
1. Business services  ◨ n.c. n.c. n.c. n.c. n.c. 
 A. Professional services  ◨ n.c. n.c. n.c. n.c. n.c. 
 B. Computer and related 
services  ◨ n.c. n.c. n.c. n.c. n.c. 
 C. Research and 
development services  ■ n.c. n.c. n.c. n.c. n.c. 
2. Communications services  ◨ ◨ ◨ ◨ n.c. n.c. 
 B. Courier  services  n.c. ■ ■ … n.c. n.c. 
 C. Telecommunication 
services  ■ ■ ◨ ◨ n.c. n.c. 
7. Financial services ◨ ◨ ◨ ◨ ◨ ◨ 
 A. All insurance and 
insurance -related services  ◨ ◨ ◨ n.c. ◨ ◨ 
 C. Other financial services  n.c. n.c. n.c. ◨ n.c. n.c. 
8. Health and related social 
services  n.c. n.c. n.c. n.c. ◨ ◨ 
 A. Hospital services  n.c. n.c. n.c. n.c. ■ ■ 
9. Tourism and 
travel -related services  ◨ ◨ ◨ ◨ ◨ ◨ 
 A. Hotels and restaurants 
 (including catering)  ◨ ◨ ◨ ■ ◨ a ◨ 
 B. Travel agencies and tour 
 operators  n.c. n.c. n.c. n.c. n.c. n.c. 
 C. Tourist guides services  n.c. n.c. n.c. n.c. n.c. n.c. 
10. Recreational and sporting 
services  ◨ ◨ ◨ ◨ ◨ ◨ 
 A. Entertainment  services  ■ ■ ■ ■ ■ ■ 
 D. Sporting and other 
 recreational  n.c. ■ ■ ■ ■ ■ 
11. Transport services  ◨ n.c. n.c. ◨ ◨ ◨ 
 A. Maritime transport 
services  ◨ n.c. n.c. ◨ ◨ ◨ 
 H. Auxiliary services  n.c. n.c. n.c. n.c. ◨ ◨ 
◨ Part of sector/subsector has been scheduled . 
■ All of sector/subsector has been scheduled . 
n.c. No commitments scheduled . 
a The commitment includes CPC 5126, which is within the scope of general construction work for 
buildings.  
Note: Maximum number of sectors  = 12; subsectors  = 160. The table reflects commitments with respect 
to market access or national treatment, and in any mode of supply.  
 Only sectors and subsectors where commitments have been made are presented in the table.  
Source:  WTO GATS Schedu les. 
4.3.2   Financial services  
4.3.2.1   Overview  
4.20.  The financial system in the OECS -WTO Members, as part of the Eastern Caribbean Currency 
Union (ECCU) (the OECS -WTO Members plus Anguilla and Montserrat), comprises domestic banks, 
international financial services sector banks, credit unions, insurance companies, national 
development foundations, development finance institutions, building and loan associations , and 
finance companies.  
4.21.  The OECS -WTO Members separate their financial sector into onshore (domestic) and of fshore 
(international) financial services. A different set of laws and regulations have traditionally applied to 
each type of institution, although during the period under review, this distinction has been removed 
in several OECS jurisdictions and now the same rules apply to all types of banks. The 
OECS -WTO Members have consolidated regulation of their onshore and offshore sectors under a 
single unit (excluding commercial  banks, which are regulated by the Eastern Caribbean Central Bank WT/TPR/S/437 • OECS -WTO Members  
 
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  (ECCB)).31 The ECCB provides support and actively monitors developments, primarily in the credit 
unions and insurance subsectors. The ECCB also is responsible for holding and administering an 
interbank market to help commercial banks manage their liquidity, and faci litate the lending and 
borrowing of available reserve balances between commercial banks.  
4.22.  The OECS -WTO Members made limited financial sector commitments during the 
Uruguay  Round, mostly on reinsurance services. No OECS -WTO Member participated in the WTO 
extended Negotiations on Financial Services.  
4.23.  The ECCB also manages the Regional Governments Securities Market  (RGSM) for the trading 
of debt instruments of the member States of the ECCU. The RGSM handles treasury  bills and bonds 
backed by the Governments of t he different ECCU members, with maturities ranging from 91  days 
to 10 years. The RGSM uses the platform of the Eastern Caribbean Securities Exchange Ltd (ECSE) 
for its primary market activity. Activity of the RGSM was affected during th e pandemic. However,  
the RGSM showed notable improvement during the first half of 2022, when new investment flows 
into the market increased by 23.4%, to XCD  102.3  million  when compared with the corresponding 
period of 2021.32 This level is, however, still below to that report ed in the previous Review. The 
ECSE and its subsidiaries, the Eastern Caribbean Central Securities Registry (ECCSR) and the Eastern 
Caribbean Central Securities Depository (ECCSD) provide the infrastructure for the trading, 
clearance, and settlement of sec urities on the RGSM. The Regional Debt Coordinating Committee 
(RDCC), comprising the financial secretaries and/or directors of finance from each of the 
eight participating governments of the ECCU, and the Governor of the ECCB, exercises oversight 
over the RGSM.  
4.24.  The Eastern Caribbean Home Mortgage Bank (ECHMB) was established by the Eastern 
Caribbean Home Mortgage Agreement Act , 1994, with the primary objective of promoting the 
development of the secondary mortgage market within the eight participating count ries of the OECS. 
As of November  2022, the Bank, headquartered in Basseterre, Saint Kitts, had issued investment 
grade instruments for a total of XCD  2.09 billion , and had paid XCD  170.37  million  in interest to 
holders of ECHMB's financial instruments.33 
4.3.2.2   Banking  
4.3.2.2.1   Onshore banking  
4.25.  Onshore banking activities are supervised and regulated by the ECCB across the ECCU, 
including the OECS -WTO Members. The ECCB Agreement Act (1983) gives the ECCB the authority 
to regulate banking businesses on behalf of  participating  Governments. The regulatory framework 
of the domestic banking system in each OECS country has two main legislative components: the 
ECCB Agreement Act , which has been incorporated in the different national legislation,  and the 
national banking law, which i s harmonized as it is derived from model legislation. Under these 
harmonized banking  laws, the ECCB's primary responsibility for the supervision of domestic banks 
is clearly established.  The ECCB supervises all commercial banks and other financial institut ions 
wishing to carry on banking business in the OECS . 
4.26.  Commercial b anks must be licensed by the ECCB. Licences  are granted under the respective 
member's Banking Act, which is based on model legislation and is the same for each 
OECS -WTO Member.  Licensed financial institutions are required to submit monthly, quarterly, and 
annual returns to the ECCB. The ECCB requires a non -refundable application fee of XCD  20,000 to 
 
31 These authorities are  the Financial Services Commission  (Antigua and Barbuda); the Financial 
Services Unit, in the Ministry of Finance and Planning (Dominica); the Grenada Authority for the Regulation of 
Financial Institutions  (GARFIN ); the Financial Services Department  in the Ministry of Finance (Saint  Kitts and 
Nevis); the Financial Sector Supervision Unit in the Ministry of Finance (Saint  Lucia); and the Financial Services 
Authority (Saint  Vincent and the Grenadines). These authorities are also the insurance regulatory bodies in 
their respective countries.  
32 ECCB (2022), Communiqué of the 102nd Meeting of the Monetary Council of the Eastern Caribbean 
Central Bank . Viewed at: https://www.eccb -centralbank.org/news/view/communiqua -C-of-the-102nd -meeting -
of-the-monetary -council -of-the-eastern -caribbean -central -bank. 
33 ECHMB. Vie wed at: https://www.echmb.com/ . WT/TPR/S/437 • OECS -WTO Members  
 
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  process an application for a banking licence. Additionally, the minimum capital re quirement is 
XCD 20 million , pursuant to section  44 of the Banking Act.  
4.27.  The domestic banking sector across all the OECS is open to foreign investment. No restrictions 
or limitations are placed on foreign investment and foreign -owned banks may establish sub sidiaries 
or branches in each of the OECS -WTO Members, as in fact they do (see below). Although they have 
the same regulator and the same banking laws, banking licences are specific to the country where 
they are granted. There is no unified banking market at the OECS level. A  different licence is required 
for each jurisdiction. Banks, both locally incorporated and branches, of foreign financial institutions, 
must have a place of business within the OECS member State in which they are licensed. 
Foreign -incorporate d financial institutions intending to open a branch or subsidiary in one of the 
OECS -WTO Members is required to provide certification that the banking supervisor in the 
jurisdiction in which it was incorporated has no objection to its application for  a licence, and evidence 
that it is subject to comprehensive supervision on a consolidated basis by the authorities in its home 
jurisdiction. There are no residency or citizenship requirements for bank managers or directors.  
4.28.  There are no foreign exchange c ontrols in the OECS -WTO Members.  
4.29.  There were 28 domestic banks licensed in the OECS -WTO Members under the Uniform 
Banking Act at end -2022, less than the 34 reported in the previous Review. There were also 
8 non-bank financial institutions, down from 15 in 2 013 (Table  4.2). Of the 28  domestic banks, 
17 were locally incorporated, of which 12 were locally owned and 5 foreign -owned, and 12 were 
foreign branches.  
Table  4.2 Institutions licensed under the Banking Act in the OECS members, 2022  
 
Banks  Non-bank financial institutions  
Antigua and Barbuda  6 2 
Dominica  3 0 
Grenada  4 0 
St Kitts and Nevis  6 1 
St Lucia  5 3 
St Vincent and the Grenadines  4 2 
Total  28 8 
Source:  ECCB , Licensed Financial Institutions Under the Banking Act . Viewed at:  https://www.eccb -
centralbank.org/p/licensed -financial -institutions -under -the-banking -act. 
4.30.  Credit unions play an increasingly important role in the domestic financial sector in a number 
of the OECS -WTO M embers, especially since several commercial banks have stopped operations in 
the region during the review period  (Table  4.3). 
Table  4.3 Other financial institutions in the OECS -WTO Members, 2022  
 Development 
banks  Credit 
unions  Insurance 
companies/ 
agencies  Building and 
loan 
associations  International 
financial banks  
Antigua and 
Barbuda  1 7 25 0 12 
Dominica  1 6 16 1 17 
Grenada  1 11 25 1 0 
St Kitts and 
Nevis  1 4 15 0 7 
St Lucia  1 16 26 0 1 
St Vincent and 
the Grenadines  0 4 23 1 2 
TOTAL  5 48 130 3 39 
Source:  ECCB and information provided by the national authorities . 
4.3.2.2.2   Offshore  banking  
4.31.  The international financial services sector is governed by the Offshore Banking Acts in the 
respective OECS member  countries and is primarily the responsibility of the national regulators, 
particular the respective Financial Services units. Offshore banks may conduct banking business only 
in currencies other than the XCD and are generally precluded from conducting bus iness with citizens  WT/TPR/S/437 • OECS -WTO Members  
 
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  of the country in which they are registered. Offshore companies benefit from various tax exemptions. 
Licensees must have a physical presence as well as a locally residing authorized agent and an 
alternate agent . 
4.32.  Among other conditions, an initial paid -up capital in cash is required; the amount varies 
according to the country. Some benefits have been trimmed in recent years. For instance, 
exemptions on income tax, capital gains tax, withholding tax, or other direct tax on profits, assets,  
property values, and their transfers ceased in Dominica in June  2021.  
4.33.  In 2022, there were 39 international banks in the OECS -WTO Members. Of these, 17 were 
incorporated in Dominica (Table  4.3). The international financial services sector is governed by th e 
Offshore Banking Acts in the respective ECCU member countries and is primarily the responsibility 
of the national regulators.  
4.3.2.3   Insurance  
4.34.  The insurance business is also divided into onshore and offshore activities in the 
OECS -WTO Members. There are no limitations on foreign investment in any of the OECS countries 
with respect to onshore insurance; most insurance companies across the region are foreign -owned. 
However, foreign insurance companies must maintain a principal office loca lly and must appoint, by 
power of attorney, a citizen of one of the OECS countries as its principal representative. Foreign 
insurance companies (parent or subsidiary) are allowed to establish as a branch, but they can also 
be established as a locally incor porated  subsidiary. There are no citizenship requirements for 
managers or directors of insurance companies. There is no legal restriction on companies located 
abroad from offering insurance coverage to locals. Capital requirements vary according to the ori gin 
of the insurance company and are higher for foreign companies.  
4.35.  Legislation regarding insurance is relatively uniform across the OECS -WTO Members. They 
apply to all insurance companies, whether or not locally incorporated, which carry on any class of 
insurance business locally. They also apply to associations of underwriters registered to carry on 
insurance business , insurance intermediaries whether or not locally incorporated , and privately 
administered pension fund plans. The laws also apply to reinsur ance. Separate registries must be 
maintained for local and foreign insurance companies, and for associations of underwriters. 
Registration as one of these three types of entities is a prerequisite for the provision of insurance 
services.  
4.36.  Offshore insurance  services are regulated by specific legislation: the Captives Insurance Act 
in Saint  Kitts and Nevis; the International Insurance Act in Saint  Lucia; the Exempt Insurance 
Act 1997, as amended in Dominica ; and the International Insurance Act in Saint  Vincen t and the 
Grenadines. These acts prescribe the conditions for the operation of offshore insurance companies ; 
these companies are only allowed to manage risks and premiums originating outside the jurisdiction 
where they are established. Other requirements i nclude the local incorporation of companies, the 
non-residence of shareholders, and a minimum paid -up capital.  
4.3.2.4   Securities  
4.37.  The Eastern Caribbean Securities Act, 2001 became effective on 8  October  2001.34 It led to 
the launch, in October  2001, of the Eastern  Caribbean Securities Market (ECSM) with the opening 
of the ECSE and its affiliated institutions. The ECSE is designed to provide an alternative mechanism 
for public institutions to raise capital within the regional financial system. It allows for the tran sfer 
of private sector savings to productive investments. This will essentially increase productive activity 
in the real sector, facilitate private sector development , and create avenues for increased 
 
34 Apart from the Securities Act, 2001 and its 2004 amendment, the securities industry is governed by a 
number of regulations, including the Securities (Foreign Securities and Intermedia ries) Regulations 2004; the 
Securities (Accounting and Financial Statements) Regulations; the Securities (Advertisements) Regulations; the 
Securities (Collective Investment Schemes) Regulations; the Securities (Conduct of Business) Regulations; the 
Securit ies (Discipline) Regulations; the Securities (Licences and Fees) Regulations; the Securities (Prospectus) 
Regulations; the Securities (Continuing Disclosure Obligations of Issuers) Regulations; and the Securities 
(Uncertificated) Regulations 2004. There ar e also  ECSRC Rules, such as the Securities (Registration Statement) 
Rules No.  2 of 2008, and the Securities (Accounting & Financial Reports) Rules No.  1 of 2008, as well as 
Statutory Orders at the national level.  WT/TPR/S/437 • OECS -WTO Members  
 
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  employment. To buy or sell securities in the ECSE, it i s necessary to establish an account with a 
broker -dealer firm. To participate on the ECSE, broker -dealers must satisfy a minimum total capital 
requirement of XCD  1 million , of which at least XCD  250,000 of net capital in cash or readily 
marketable securiti es, directly proportional to the volume of securities activity. Limited -service 
brokers must satisfy a minimum total capital requirement of XCD  250,000 as well as a net capital 
requirement of at least XCD  125,000.  
4.38.  The Eastern Caribbean Securities Regulator y Commission (ECSRC) is the regulatory body of 
the ECSM, which has the function s of facilitating securities dealing in the OECS and enacting  
legislation, establishing an appropriate regulatory structure, and training, certifying, licensing, and 
regulating  market participants. The ECSRC is responsible for making and amending rules and 
proposing legislation for the regulation of the securities market and for applying and interpreting the 
Securities Regulations, 2001 and the Securities Act, 2001. The ECSRC's h ighest decision -making 
authority is the Monetary Council of the ECCU . 
4.39.  As at 31  March  2020, there were 51 individuals and entities licensed by the ECSRC to operate 
in the ECSM. At the same date, there were eight licensed broker -dealers in the ECSM, while only 
six of the licensees actively participate in the securities market. These broker -dealers can be further 
classified, based on their principal activities, as core broker -dealers , which are companies engaged 
in securities business as their principa l activity , and non -core broker -dealers , which are those 
companies that do not engage in securities business as their principal activity. During the financial 
year FY2019/20 (ending on 31  March  2020), the market comprised one core broker -dealer and 
seven n on-core broker -dealers , all of which were banks. Five of these banks originate from the ECCU 
and two originate from other CARICOM member States. Over the year ended 31  December  2019, 
revenues increased by 16.6% to XCD  17.296  million , compared to 31  Decembe r 2018.35 
4.40.  The E CCSD , a wholly owned subsidiary of the ECSE, provides clearance and settlement of 
trades transacted on the ECSE. The main participants on the Depository are broker -dealers, 
limited -service brokers, and custodians.  
4.3.3   Telecommunications  
4.41.  During t he review period, the regulatory framework for the telecommunications (electronic 
communications) sector in the OECS -WTO Members, remained largely unchanged. The sector is 
regulated by the respective national competent authority in each OECS country. The E astern 
Caribbean Telecommunications Authority (ECTEL), established on 4 May 2000 by Treaty and 
amended by Protocol Amendment effective 5 December 2019, is an advisory body at the subregional 
level that coordinates sectoral policies and harmonizes standards  and practices among the five 
Contracting States, which are Dominica , Grenada , Saint Kitts and Nevis , Saint Lucia , and 
Saint Vincent and the Grenadines. ECTEL also has as its function to promote market liberalization 
and foster competition in the electroni c communications sector of the ECTEL Contracting States. The 
respective National Telecommunications Regulatory Commissions (NTRCs) are the national 
authorities for the ECTEL Contracting States, while Antigua and Barbuda is expected to establish a 
Telecommu nication Authority as provided by its 2018 amendment to its Telecommunications Act.  
4.42.  Telecommunications in the OECS -WTO Members has become increasingly oriented to the 
mobile and broadband segments of the market. In the ECTEL area, fixed -line voice service 
penetration continued declining due to the cancellation of subscriptions, while fixed broadband 
penetration gradually climbed up from 19.0% in 2015 to 25.3% in 2021. Mobile penetration peaked 
at around 111.7% in 2015, before descending to 92.8% in 2021, wh ile mobile broadband penetration 
expanded remarkably by more than 30  percentage points from 40.2% in 2015 to 72.6% in 2021 
(Table  4.4). 
Table 4.4 Telecommunications indicators, ECTEL Area, 2015 -21 
 
2015  2016  2017  2018  2019  2020  2021  
Revenue (XCD  million)  780 802 725  694  690  670  607  
Investment (XCD  million)  155 104 100  136  190  146  117  
Direct employment  945 1,006 857  806  740  784  785  
 
35 ECRSC  (2021),  Annual Report 2020 . Viewed at: 
https://www.ecsrc.com/cms/Cmspages/details/24/category/annual -reports . WT/TPR/S/437 • OECS -WTO Members  
 
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2015  2016  2017  2018  2019  2020  2021  
Fixed voice service penetration (%)  22.9 22.5 21.6  20.3  15.2  14.1  14.3  
Fixed broadband penetration (%)  111.7  108.6  107.1   108.1   95.9  95.9  92.8  
Mobile service penetration (%)  19.0 19.3 20.7  18.6  23.0  25.3  24.2  
Mobile broadband penetration (%)  40.2 47.1 57.1  53.7  71.7  68.7  72.6  
Broadband Internet service penetration (%)  395 376 319  333  308  255  216  
Local traffic (million minutes)  661 562 518  544  529  509  505  
International traffic (million minutes)  188 61 46  46  41  37  35  
Note:  Information is for year ending 31 March.  
Source:  ECTEL (2022), Annual Electronic Communication Sector Review 2020 -21. 
4.43.  The total revenue generated by the electronic communications sector in the ECTEL 
Contracting States continued its declining trend during the review period. The sector reported 
revenue of approximately XCD  607 million at the end of March 2021, a contraction of 9% from the 
previous period. Reductions in revenue from the mobile voice (23% ), fixed voice (19%) , and 
subscriber television (6%) services were responsible for this overall decline. Revenues from fixed 
broadband services recorded the sixth year of continuous growth, climbing by 21% to 
XCD 198 million. Mobile services contributed th e largest share (40%) to total revenue 
notwithstanding the 7  percentage point drop when compared to the previous year. The fixed 
broadband share of revenue continued to climb annually. In FY2020/21, fixed broadband revenue 
accounted for 33% of overall revenue compared to 24% the previous year. Investment spending in 
the ECTEL Contracting States was approximately XCD  117 million at the end of March 2021, almost 
20% lower than the XCD  146 million recorded in the previous year. The major areas wher e 
investment took place included the maintenance and upgrading of networks , the expansion of fibre 
to home networks , and the replacement of critical equipment.  
4.44.  The respective national telecommunication laws contain the general provisions that regulate 
the allocation of telecommunications services and network licences. The latter may be individual or 
class licences, and their terms and conditions are determined by the respective national 
telecommunications legislation and issued by the Minister with responsi bility for  telecommunications 
in consultation with ECTEL  and the NTRCs respectively. All licences regardless of the service offered 
are technology neutral.36 Generally, this means that the determining factor for licence classification 
is the service that w ill be provided, and not the type of technology employed. Under the current 
Telecommunications Act and respective regulations, there are four licence categories: (i)  Individual 
Licence, generally covering infrastructure -oriented services and often those th at provide the 
network/foundation upon which other services can be supported37; (ii) Class Licence: Type A, for 
providers of telecommunication services; Type  B, for users of telecommunication services; and 
Type C, for support services (type approval); (iii ) Frequency Authorisation Licence: ancillary licence, 
required in addition to the Individual or Class Licence for use of the radio frequency spectrum; and 
(iv) Special Licence: emergency licence issued at the discretion of the Minister for a period not 
exceeding 10  days. To this end, ECTEL has developed a  new electronic communications legislation 
framework, with the Electronic Communications Bill (EC Bill), to broaden the scope of the "electronic 
communications " sector. Both the Protocol Amendment of the EC TEL Treaty and the EC Bill broaden 
the scope of the categor ies of licences  that can be issued under the legislative framework. The new 
legislative framework will also introduce updated and new regulations to repeal and replace the 
current regulations, as w ell as increase the categories of licences , with an introduction of 
sub-classes, to cater for new and emerging services in the electronic communications sector.  
4.45.  There is no restriction on foreign capital participation in telecommunications services in the 
OECS -WTO Members, although specific capital requirements may apply.38 Anyone who wishes to 
provide public telecommunications services must apply for a licence through the national regulator 
(NTRCs in the ECTEL Contracting States, and the Telecommunications  Division of the Ministry of 
Information Communications Technology and Digitalization in Antigua and Barbuda). A service 
provider, such as a network carrier, who operates its own infrastructure must obtain an "individual" 
licence. Under the current regulat ory regime, there is no specific licence for infrastructure managers. 
 
36 Eastern Caribbean Telecommunications Authority  (ECTEL ), Application for a Telecommunications 
Licence , Guidance Notes,  Revised 11 September  2002. 
37 Services that require an individual licence include mobile/cellular telephony , fixed public telephony , 
submarine cable , public radio paging , and Internet networks and services.  
38 Foreign suppliers wishing to have a commercial presence in Antigua and Barbuda must undertake a 
minimum investment of at least USD  500,000 . WT/TPR/S/437 • OECS -WTO Members  
 
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  Interconnection between different networks must be conducted in a fair, reasonable, and 
non-discriminatory manner. Interconnection agreements must be approved by national regulators. 
For networks operated in the ECTEL area, the maximum interconnection rates are set by ECTEL. 
Under the new electronic communications sector rules, ECTEL will be introducing new submarine 
landing cable regulations, to harmonize  the rules governing interconnect ion in its Contracting States.  
4.46.  Currently, there are no network neutrality regulations in any OECS -WTO Members. However, 
ECTEL indicated that it continues to work with its Contracting States to deal with anti -competitive 
behaviour in traffic management and under the new EC Bill, will introduce the Electronic 
Communications (Net Neutrality) Regulations approved by the Council of Ministers of ECTEL for 
implementation under the new legislative framework.  
4.47.  New regulations were introduced at the national level to implement or complement the 
respective laws (Table  4.5). The national telecommunication laws of the OECS ECTEL Contracting 
States are implemented through harmonization , to ensure that the Contracting States are all on the 
same level. Despite ECTEL's role in the harmonized  implementation and adoption of regulations by 
its Contracting States under the current Telecommunications Act, some of its Contracting States 
have not passed and implement ed some regulations, such as those related to quality of service, 
wholesale, access to facilities, exemptions, dispute resolution, access to facilities , and updated retail 
tariff regulations. However, Saint Kitts and Nevis and Saint Vincent and the Grenadi nes passed the 
EC Act in February 2021 and October 2022, respectively, although they are not yet in force, awaiting 
implementing regulations.  
Table  4.5 OECS ECTEL members, status of selected approved regulatio ns, 2022  
Telecommunication 
regulations  Dominica  Grenada  St Kitts and 
Nevis  St Lucia  St Vincent 
and the 
Grenadines  
Dispute Resolution  SRO No.  34 
23/08/07  SRO No.  5 
15/01/16  Outstanding  SRO No.  122 
29/12/09  SRO No.  2 
03/01/07  
Licensing and 
Authorisation  SRO No.  7 
26/03/02  SRO No.  7 
15/01/16  SRO No.  2 
21/02/02  SRO No.  121 
29/12/08  SRO No.  1 
03/01/07  
Fees  SRO No.  15 
08/03/07  SRO No.  46 
19/12/06  SRO No.  13 
06/02/07  SRO No.  96 
30/09/02  SRO No.  3 
03/01/07  
Spectrum 
Management  SRO No.  26 
29/07/11  SR0 No.  18 
30/03/09  SRO No.  25 
17/10/06  SRO No.  119, 
29/12/09  SRO No.  4 
03/01/07  
Interconnection  SRO No.  17 
23/04/09  SR0 No.  14  
23/03/09  SRO No.  44 
13/11/08  SRO No. 72 
22/06/09  SRO No.  60 
05/11/08  
Numbering  SRO No.  32 
04/09/08  SRO No. 15 
17/04/09  SRO No.  29 
30/10/08  SRO No.  139 
06/08/07  SRO No.  11 
09/04/08  
Quality of Service  SRO No.  13 
29/05/08  SRO No.  16 
17/04/09  SRO No.  28 
30/11/08  SRO No.  148 
27/08/07  Outstanding  
Wholesale  SRO No.  12 
29/05/08  SRO No.  17 
17/04/09  SRO No. 31 
30/10/08  SRO No.  168 
17/09/07  Outstanding  
Universal Service 
Fund  SRO No.  34 
17/07/09  SRO No.  21 
30/03/09  SRO No.  2  
18/02/08  SRO No.  120 
15/12/08  SRO No.  45 
15/09/08  
Universal Service 
Fund Contribution  SRO No.  45 
20/10/09  SRO No.  20 
17/04/09  SRO No.  4 
18/02/08  SRO No.  45  
06/04/09  SRO No.  9 
09/04/08  
Source:  ECTEL , Legislation . Viewed at: https://www.ectel.int/legislation/ . 
4.48.  In Antigua and Barbuda, fixed -line services including voice and data are provided exclusively 
by the Antigua and Barbuda Public Utilities Authority. In the ECTEL area, the fixed -line voice service 
is designated as a "regulated service" by the NTRCs on the grounds  of insufficient competition; the 
segment of fixed -line voice services is dominated by FLOW (formerly Cable & Wireless). The 
"regulated service" is subject to a price cap plan (PCP). PCPs are elaborated at the regional level by 
ECTEL, in collaborati on with the licensees concerned.  No other services have been designated as 
regulated services in the ECTEL area.  
4.49.  In August 2020, ECTEL issued a Consultation Document on Market Assessment of Regulated 
and Unregulated Retail Services and Proposed Recommended  Regulatory Measures. Retail services 
offered by a dominant service provider or, equivalently, not subject to a sufficient degree of 
competition to protect the interests of consumers are deemed to be Regulated Services. ECTEL's 
Regulations allow for the re gulation of the prices of Regulated Services and establish a general 
regime for adoption by the NTRCs.  The Market Assessment of Regulated and Unregulated Retail WT/TPR/S/437 • OECS -WTO Members  
 
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  Services and Proposed Recommended Regulatory Measures  also included an assessment of the 
mobile  services and retail pay TV (Subscriber) services. This was ECTEL's first market assessment 
of retail mobile services and retail pay TV (Subscriber) services. Although no operator in those 
markets was deemed or found to be dominant and hence these services  are not subject to ex-ante 
price regulation, ECTEL noted that there are a number of  mobile service pricing and marketing 
practices that raise significant concerns for mobile users necessitating the approval of the 
Telecommunications (Mobile Consumer Safeg uards) Guidelines. These Guidelines have been 
gazetted in Saint Kitts and Nevis and in Saint  Lucia.  
4.50.  In November 2021, the Board of ECTEL approved a new Retail Price Regulation Regime (RPRR) 
for the regulation of retail prices. The RPRR consists of a P CP for the regulation of specific fixed voice 
services provided by Cable & Wireless and Mobile Consumer Safeguards Guidelines for the regulation 
of sales and marketing practices by mobile service licensees.  Under the RPRR, Cable & Wireless is 
mandated to red uce FTM rates from 40.0 to 25.0 cents per minute and FTF from 7.0 to 5.5  cents 
per minute. Cable & Wireless and Columbus Communications Limited are also obligated to make 
available a Basic Broadband Offer (BBO) in Grenada , Saint Lucia , and Saint Vincent an d the 
Grenadines that satisfies some minimum requirements including but not limited to a monthly price 
no greater than XCD  99 (VAT inclusive) and minimum download and upload speed of 10 Mbps and 
1 Mbps, respectively.  
4.51.  The PCP recommended by ECTEL was expect ed to enter into force on 1  March  2022 and to 
expire by end -2025.39 However, the approved new PCP and the BBO of the recommended RPRR 
have not been adopted in any of the ECTEL member States and as such the 2015 PCP remains 
applicable in Dominica and Saint Kitts and Nevis while the 2010 PCP remains applicable in Grenada, 
Saint Lucia and in Saint Vincent and the Grenadines.  
4.52.  Under the 2015 PCP and the 2022 RPRR, FLOW must continue to provide a minimum of 
100 free minutes per month of residential fixed -to-fixed night and weekend calls (Table  4.6). The 
PCP also contains price harmonization  rules to ensure that prices for various services between the 
ECTEL Contracting States remain relatively consistent and do not vary by a significant amount. For 
instance, the lo west monthly rate for a metered residence (business) access line must be equal to 
or more than 77% (90%) of the highest corresponding monthly rate in any other ECTEL member 
State. Fixed international direct dialled (IDD) prices must be equal to or less tha n the corresponding 
mobile IDD price charged by FLOW.  
Table  4.6 Main differences 2010  PCP, 2015 PCP, and 2022 RPRR  
2010 PCP  2015 PCP  2022 RPRR  
80 free minutes per month of residential 
fixed-to-fixed night and weekend calls  100 free minutes per month of 
residential fixed -to-fixed night and 
weekend calls  100 free minutes per month 
of residential fixed -to-fixed 
night and weekend calls  
The lowest monthly rate for a metered 
residence (busin ess) access line must be 
equal to or more than 75% (82%) of the 
highest corresponding monthly rate in any 
other ECTEL member State  The lowest monthly rate for a 
metered residence (business) access 
line must be equal to or more than 
77% (90%) of the highest  
corresponding monthly rate in any 
other ECTEL member State  The lowest monthly rate for 
a metered residence 
(business) access line must 
be equal to or more than 
77% (90%) of the highest 
corresponding monthly rate 
in any other ECTEL member 
State  
Possible extension of 1 year, at the sole 
discretion of the NTRCs, on recommendation 
from ECTEL  Possible extension of 1 year, unless 
opposed by LIME, the NTRC, or 
ECTEL within 90 days of the expiry. 
Any party opposed to the renewal of 
the PCP, must give no tice to every 
other party at least 90 days before 
the expiry of the PCP. Automatic 
renewal of the PCP will not occur if 
any party opposes the renewal  Possible extension, at the 
sole discretion of the NTRC  
A price cap formula is applicable. LIME must 
calculate an Actual Price Index (API), which 
represents changes in its prices for a 
specific basket of services over a specific 
period/time; the API must always be less 
than or equal to the Price Cap Index (PCI) No changes  No changes  
 
39 Easter Caribbean Telecommunications Authority, Price Regulation . Viewed at: 
https://www.ectel.int/regulatory -framework/price -regulation/ .  WT/TPR/S/437 • OECS -WTO Members  
 
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  2010 PCP  2015 PCP  2022 RPRR  
according to an annually calculated formula . 
The PCI changes annually subject to the 
price cap formula for each basket  
Source:  ECTEL.  
4.53.  A price cap formula is applicable to retail services provided by FLOW under the PCP and RPRR. 
FLOW must calculate an Actual Price Index (API), which  represents changes in its prices for a specific 
basket of services over a specific period/time; the API must always be less than or equal to the Price 
Cap Index (PCI) according to an annually calculated formula . The PCI changes annually subject to 
the pri ce cap formula for each basket.  
4.54.  In 2018 ECTEL completed a review of its interconnection costs, and approved rate reduction 
flows as from 1  March  2022. The Council approved new interconnection rates that were expected to 
take effect using a glide path or on  a phased basis starting in May  2018 with complete 
implementation in the third year , on publication of a public notice by each of the NTRCs indicating 
the effective date in each member State. The new reduced cost -oriented interconnection rates 
translated t o a 50% reduction in the wholesale rates for mobile termination in the first year and a 
decrease of up to 95% in the next three years to the present. C ost-oriented rates for fixed 
interconnection services including fixed termination, transit services , and directory inquiry services 
were also approved. The recommended rates are applicable for calls originating domestically and 
internationally. Despite the reduction in the interconnection rates, the cost of services remains 
relatively high and highly concentr ated. 
4.55.  Telephone numbers are considered as national resources. Each national regulator maintains 
its National Numbering Plan and allocates numbers to licensed operators according to the national 
plan. ECTEL, in its capacity as the regional regulatory body f or its Contracting States, maintains a 
regional numbering plan. Effective 3  June 2019, the five ECTEL Contracting States launched mobile 
number portability services.40 Further the ECTEL Contracting States are currently working on 
providing number portability services in the fixed -line telephone market. Though the 
2018 Amendment to the Telecommunications Act in Antigua and Barbuda provided number 
portability, as at late 2022, the authorities were still working on the implementation.  
4.56.  Regarding radio frequency allocation for telecommunications services that uses radio 
communications equipment (e.g. mobile telecommunications services ), the service provider must 
obtain a Freq uency Authorisation through the national regulator , which must be approved by the 
Minister with responsibility for electronic communications. In the ECTEL area, NTRCs manage their 
national spectrum plan in conjunction and aligned to ECTEL 's regional spectr um management plan 
and allocate frequency bands to operators based on technical assessments, with consideration of 
the applicant's request. The radio frequency spectrum is managed by ECTEL and the NTRCs using 
international best practices to ensure that bot h public and private entities can access the radio 
frequency spectrum for net socio -economic gains without causing harmful interference.  
4.3.4   Transport  
4.3.4.1   Air transport  
4.57.  Air transport is the main mode of transportation for people and an important means of 
transporting goods in and out of the OECS -WTO Members. Considering the importance of tourism 
exports for the economies of the OECS -WTO Members , airlift capacity is a bottleneck that has to be 
surmounted to ensure long -term economic growth.  
4.58.  During the revie w period, the civil aviation infrastructure in the OECS region was improved . 
The V.C Bird International Airport in  Antigua and Barbuda was modernized: new terminals were 
opened and became fully operational in August  2015, with a capacity to handle 1.5  million 
passenger -throughput  per annum. The Argyle International Airport, in Saint  Vincent and the 
Grenadines, with a designed capacity of 1.2  million passenger -throughput  per year, became 
operational in February  2017. Dominica began the construction of a new airport in 2022, and the 
project is expected to be completed in 2026. Meanwhile, Saint  Lucia is expected to commence a 
 
40 Number portability across fixed networks is still a work in process.  WT/TPR/S/437 • OECS -WTO Members  
 
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  modernization project of  its Hewanorra International Airport  in early 2023 . These new infrastructure 
projects laid a solid foundation for  the expansion of the airlift capacity.  
4.59.  Connectivity is key to enhance air transport in the region. Most bilateral air service 
agreements (BASAs) that OECS -WTO Members maintain with their trading partners offer fourth 
freedom with restrictions on ownership  and designate. All six OECS -WTO Members are signatories 
to the CARICOM Multilateral Air Service Agreement (CARICOM MASA), which entered into force on 
17 August  2020. With an aim of creating a single air transport market within CARICOM, the 
CARICOM MASA  confers third and fourth freedom route rights to airlines owned and operated by 
CARICOM  nationals, while fifth freedoms are exchanged on a bilateral basis, and day tour regimes 
may also be negotiated.  In their BASAs, the OECS countries apply CARICOM ownershi p, designating 
any CARICOM -based carriers as its national carrier when enforcing the agreements.  
4.60.  During the review period, air connections with destinations outside the region were initially 
improved, up to 2019, but were later severely affected by the loc kdowns ensuing from the COVID -19 
pandemic. Intra -regional connectivity remained poor and actually deteriorated as a consequence of 
the virtual demise of the regional carrier LIAT, which compounded the negative effects of the 
pandemic.  Improvement of intra -regional connection is deemed a regional priority. However, t he 
authorities are of the view that intra -regional airlift capacity expan sion through the fifth freedom 
provided in BASAs would be limited . 
4.61.  The Eastern Caribbean Civil Aviation Authority (ECCAA) , established in October  2004, is the 
sectoral regulator for civil aviation for the OECS . The ECCAA is responsible for overseeing aviation 
safety and security matters, certifying operators and equipment airworthiness, licensing operators' 
personnel,  and formulating standards for operation. The responsibility for policy formulation for 
sectoral development rests with the ministers responsible for aviation in each OECS country.  
4.62.  Anyone wishing to provide air transport services in the OECS must obtain an  Air Transport 
Licence (ATL) from the competent authorities in the respective country where the business is 
registered. The ATL is issued only to applicants who are OECS or CARICOM nationals/legal persons. 
The granting of an ATL to non -nationals or bodies not incorporated in the OECS countries is subject 
to approval by the minister of aviation. The ATL is the business authorization from the country where 
the airline operates. In addition, the carrier must obtain an Air Operator Certificate (AOC) (for safety  
compliance) issued by the ECCAA. In order to maintain a valid AOC, applicants must have their 
principal business address registered within the territories of any OECS/ CARICOM member State, 
and the business must be effectively controlled by OECS/ CARICOM na tionals . 
4.63.  The major airports in the OECS are owned by the respective Government. State -ownership is 
represented by the relevant Government ministries . These state -owned airports are managed and 
operated by public entities, such as airport authorities and ai rport corporations,  in their countries. 
Airport management/operation is a statutory service. The authorities note that private sector 
companies are encouraged to participate in some airport operations (e.g.  facilities operation) and 
provide ground handling  services (e.g.  passenger processing, cargo handling, ramp operation 
services) ; the private sector's participation is mainly in the form of non -exclusive concession 
agreement s. There are no restriction s to foreign capital participation in airport operation  services. 
However, during the review period, the private sector's participation in airport operation services 
remained limited.  
4.64.  Airport fees are regulated; changes of the airport fees must be approved by the Government.  
4.65.  There are no regulations pertaining  to arrival/departure slots management in any 
OECS -WTO Member.  
4.3.4.2   Maritime transport  
4.66.  Maritime transport is also of major importance to the OECS -WTO Members, since the vast 
majority of OECS cargo trade is transported by sea. Among the OECS -WTO Members , Dominic a and 
Saint Vincent and the Grenadines maintain ship registr ies. 
4.67.  During the review period, the regulatory regime for maritime transport remained largely 
unchanged. Maritime transport policy continues to be formulated and implemented at the national WT/TPR/S/437 • OECS -WTO Members  
 
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  level. There is no regional coordination mechanism for maritime transport. No government or other 
cargos are reserved for domestically flagged vessels or for ships owned or operated by the 
Government.  
4.68.  Usually, to fly the OECS national flags, the registered vessel s must be substantially owned by 
OECS/CARICOM member state nationals (natural or legal persons) . Vessel registration by non -locally 
incorporated bodies must be authorized by the Minister  responsible for maritime transport , on the 
condition that the company is established in and has its principal place of business in an 
OECS/CARICOM territory , where the majority of the ownership of the company is vested in 
OECS/CARICOM  citizens, and the company is managed by OECS/CARICOM citizens.  According to the 
authorities, t here are no nationality restrictions on the crew and on the effective control of the 
vessels. Dominica has relaxed this regime and allows for foreign corporation vessels to fly the 
Dominican flag.  
4.69.  Cabotage is not restricted in  Saint Kitts and Nevis, and in Dominica , and it is not allowed in 
Antigua and Barbuda , Grenada , and Saint  Vincent and the Grenadines. Cabotage in Saint  Lucia 
requires a special permit from the Minister  responsible for maritime.  
4.70.  Commercial ports in the subr egion are owned by the respective Government. These 
state-owned seaports are managed and operated by public entities, such as the port authorities in 
their respective countries. In addition to operating terminals and berths, port authorities also provide 
piloting services. Similar to the situation in aviation, seaport management and operation by port 
authorities has its basis in statutory provisions. There are no restrictions in foreign participation in 
port operations; however, in practice the private sect or's participation remain s limited.  The 
authorities  note that  the seaport management regimes in the OECS -WTO Members  are under 
reform/review . The private sector is increasingly invited to participate in terminal and berth 
operation through public -private  partnership (PPP) arrangements . As an example of PPP 
arrangements, private sector companies are currently operating the cruise ship terminals in 
Antigua  and Barbuda under long -term concession agreements with the Government; Dominica is 
also considering allowing the private sector to operate cruise ship terminals.  
4.3.5   Tourism  
4.71.  Tourism is the major foreign exchange earner for the OECS -WTO Members. Although most of 
them do not maintain a tourism satellite account41, it is estimated that, approximately, 
tourism -related activities (hotels and restaurants, wholesale and retail, and transport) contributed 
more than 30% to GDP each year except in 2020 and 2021.  
4.72.  The tourism sector recorded a 17% increase in total visitor arrival from 201 5 to 2019. The 
COVID -19 pandemic cause d a plunge in  tourist arrivals  due to lockdowns and interruption of air 
travel. The number of  tourist arrivals further declined in 2021, standing at 1 8% of the pre -pandemic 
level. Usually, about a quarter of the arrivin g visitors stay at least one night in the region. The 
United  States is the largest markets for tourism exports; tourists from the United  Kingdom are the 
second largest customers for Antigua and Barbuda, Grenada, and Saint Lucia, while the Caribbean 
countri es are the second source of touris t arrivals  for the other OECS -WTO Members (Table  4.7). 
According to the latest data compiled by ECCB, tourist arrivals have showed signs of recovery since 
March  2022.  
Table  4.7 Tourism statistics, 2015 -21 
 
2015  2016  2017  2018  2019  2020  2021  
Total visitors  4,228,451  4,203,676  4,548,078  4,804,949  4,974,139  1,720,820  901,579  
Stay-over visitors  1,072,448  1,105,315  1,117,116  1,155,013  1,288,357  407,387  500,050  
United  States  444,139  471,171  469,712  484,882  558,950  197,284  330,319  
Canada  93,671  91,207  98,337  113,605  116,550  44,394  15,716  
United Kingdom  207,908  202,520  198,401  200,432  214,461  78,281  96,217  
Caribbean  213,201  227,495  231,123  240,876  266,418  48,075  29,126  
Other countries  113,529  112,922  119,543  115,218  131,978  39,353  28,672  
Excursionists  132,290  120,323  100,946  52,338  90,428  21,938  5,039  
Cruise ship passengers  2,859,801  2,817,945  3,167,343  3,422,022  3,403,838  1,209,753  372,814  
Cruise ship calls  1,788  1,819  2,060  1,941  1,940  778 524 
 
41 Saint Lucia established a tourism satellite account in August 2019.  WT/TPR/S/437 • OECS -WTO Members  
 
- 58 - 
 
   
2015  2016  2017  2018  2019  2020  2021  
Yacht passengers  163,912  160,093  162,673  175,576  191,516  81,742  23,676  
Total visitor expenditure  
(XCD million)  5,384.75  5,361.68  5,578.43  6,079.40  6,988.21  2,399.49  3,969.50  
Source:  ECCB, Real Sector Statistics – Selected Tourism Statistics . 
4.73.  All OECS -WTO Members made commitments in their GATS Schedule of Specific Commitments 
with respect to hotel development. The schedules generally bound market access for the 
development of hotels in exces s of 50  rooms, subject to alien landholding and exchange control 
regulations (although there are currently none). Hotel developments of less than 50  rooms (100 in 
Saint Lucia) remained unbound, and access is subject to an economic needs test. In all 
OECS -WTO Members, national treatment was bound for commercial presence, but subject to the 
payment of a withholding tax. In some cases, other restrictions were scheduled: in 
Saint Kitts and Nevis, for example, ownership of non -ethnic restaurants was reserved for  nationals. 
Saint Vincent and the Grenadines made commitments with respect to travel agencies and tour 
operators, and tourist guide services.  
4.74.  The OECS adopted a Common Tourism Policy in 2011, providing guiding principles for its 
members to develop their na tional policies. The Common Tourism Policy called for regional 
cooperation to achieve econom ies of scale, thus, to enhance the competitiveness of the subregion 
as a whole ; for instance, harmonizing standards and practices that will facilitate travel and ma ke 
the region and its tourism experiences more accessible to visitors . Based on the Common Policy, the 
OECS developed a strategic framework that contains elements such as " a system of hassle -free 
travel within the OECS Economic Union ", improv ing access and  transportation  to the subregion, and 
a collaborative approach to marketing efforts.42 
4.75.  Specific tourism policy is formulated at the country level. Overall responsibility for the 
formulation and implementation of tourism policy lies with the respective mini ster in charge of 
tourism. Marketing and promotion activities are generally carried out by tourism authorities or 
boards. During the review, tourism quality assurance began to be maintained through 
licensing /certification  requirement and service standard formulation by the sectoral regulator in 
some OECS  countries, for instance, Grenada established the Grenada Tourism Authority in 
January  2014, Dominica amended the Tourism Act in 2016, and Saint  Vincent and the Grenadines 
Tourism Authority developed five service standards. Saint Lucia's Tourism Development Bill is 
expected to pass Parliament in 2023. Licences to run tourism accommodations (e.g. hotels, guest 
houses, and Airbnbs) are granted by the sectoral regulator or the minister responsible for 
finance/tourism, depending on the country. Private sector associations are also active in each 
country.  
4.76.  All OECS -WTO Members offer  fiscal incentives for hotel development. These incentives include 
exemptions from customs duties and  other taxes on imports, generally under the respective Hotels 
Aid Acts, as well as corporate income tax exemptions. The maximum period for corporate income 
tax exemptions varies from 10 to 25 years depending on the country, and longer tax breaks are 
gener ally available for larger projects. In Grenada, reduction in property transfer tax was applicable, 
effective on 1  May 2016, to investment projects of residential tourism development.  
 
42 OECS Commission (2018), Development Strategy: Shaping Our Shared Prosperity, 2019-2028. 
Viewed at: https://drive.google.com/file/d/1fpfs1PLNIldV5xMskqP0jALZp0MM8_pP/view .