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  ANNEX 6 – SAINT VINCENT AND THE GRENADINES  
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  CONTENTS  
1   ECONOMIC ENVIRONMENT  ................................ ................................ .....................  414  
1.1   Recent economic developments  ................................ ................................ ..............  414 
1.1.1   Real economy  ................................ ................................ ................................ ... 414 
1.1.2   Fiscal policy  ................................ ................................ ................................ ...... 417 
1.1.3   Balance of payments, monetary, and exchange rate policy  ................................ ....... 420 
1.2   Trends and pattern in merchandise and services trade  ................................ ...............  422 
2   TRADE AND INVESTMENT REGIMES  ................................ ................................ ........  426  
2.1   General framework  ................................ ................................ ...............................  426 
2.2   Trade policy formulation and objectives  ................................ ................................ ... 426 
2.3   Trade agreements and arrangements  ................................ ................................ ...... 427 
2.3.1   WTO ................................ ................................ ................................ ................  427 
2.3.2   Regional and preferential agreements  ................................ ................................ ... 428 
2.4   Investment regime  ................................ ................................ ...............................  429 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ .....................  431  
3.1   Measures directly affecting imports  ................................ ................................ .........  431 
3.1.1   Customs procedures, valuation, and requirements  ................................ ..................  431 
3.1.2   Rules of origin  ................................ ................................ ................................ ... 432 
3.1.3   Tariffs  ................................ ................................ ................................ ..............  433 
3.1.3.1    MFN applied tariff  ................................ ................................ ............................  433 
3.1.3.2    Tariff bindings  ................................ ................................ ................................  435 
3.1.3.3    Tariff preferences and concessions  ................................ ................................ ..... 435 
3.1.4   Other charges on imports  ................................ ................................ ....................  436 
3.1.5   Import prohibitions, restrictions, and licensing  ................................ .......................  437 
3.1.5.1    Import prohibitions  ................................ ................................ .........................  437 
3.1.5.2    Import restriction  ................................ ................................ ............................  437 
3.1.5.3    Import licensing  ................................ ................................ ..............................  438 
3.1.6   Contingency measures  ................................ ................................ .......................  439 
3.2   Measures directly affecting exports  ................................ ................................ .........  439 
3.2.1   Export procedures, taxes, and levies  ................................ ................................ .... 439 
3.2.2   Export taxes, charges, and levies  ................................ ................................ .........  439 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ ........................  439 
3.2.4   Export promotion and assistance  ................................ ................................ ..........  439 
3.3   Measures affecting production and trade  ................................ ................................ .. 440 
3.3.1   Incentives  ................................ ................................ ................................ ........  440 
3.3.2   Technical regulations and standards  ................................ ................................ ..... 441 
3.3.3   Sanitary and phytosanitary measures  ................................ ................................ ... 442 
3.3.4   State trading enterprises  ................................ ................................ ....................  442 
3.3.5   Competition policy and price controls  ................................ ................................ .... 443 
3.3.6   Government procurement  ................................ ................................ ...................  443 WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  3.3.7   Intellectual property rights  ................................ ................................ ..................  444 
4   TRADE POLICIES BY SECTOR  ................................ ................................ ..................  446  
4.1   Agriculture and fisheries  ................................ ................................ ........................  446 
4.2   Manufacturing  ................................ ................................ ................................ ...... 448 
4.3   Services  ................................ ................................ ................................ ..............  448 
4.3.1   Financial services  ................................ ................................ ...............................  448 
4.3.2   Telecommunications  ................................ ................................ ...........................  450 
4.3.3   Transport  ................................ ................................ ................................ .........  451 
4.3.3.1    Air transport  ................................ ................................ ................................ ... 451 
4.3.3.2    Maritime transport  ................................ ................................ ..........................  452 
4.3.4   Tourism  ................................ ................................ ................................ ............  453 
 
CHARTS  
 
Chart  1.1 Merchandise trade by main SITC sections, 2014 and 2021  ................................ ... 423 
Chart  3.1 Frequency distribution of MFN tariff rates, 2022 ................................ ..................  433 
 
TABLES  
 
Table  1.1 Selected economic indicator, 2015 -21 ................................ ................................ . 414 
Table  1.2 Central Government fiscal accounts, 2015 -21 ................................ .......................  418 
Table  1.3 Balance of payments, 2015 -21 ................................ ................................ ...........  420 
Table  1.4 Trade in services, 2015 -21 ................................ ................................ ................  424 
Table  2.1 Notifications to the WTO, 2014 -21 ................................ ................................ ...... 427 
Table  3.1 Structure of the tariff schedule, 2013 and 2022  ................................ ....................  434 
Table  3.2 Summary analysis of the MFN tariff, 2022 ................................ ............................  434 
Table  3.3 Category of tax holiday beneficiaries under the Fiscal Incentives Act  ........................  440 
Table  3.4 Tax relief f or exporting enterprises, 2022  ................................ ............................  440 
Table  3.5 Technical regulations, 2022  ................................ ................................ ...............  441 
Table  3.6 Participation in WIPO -administered treaties, 2022  ................................ .................  444 
Table  3.7 Intellectual property registration, 2014 -21 ................................ ...........................  445 
Table  4.1 Hardship support, 2020 -22 ................................ ................................ ................  447 
Table  4.2 Spending on domestic support measures, 2015 -19 ................................ ...............  447 
Table  4.3 Telecommunications statistics, 2015 -21 ................................ ..............................  450 
Table  4.4 Tourism statistics, 2014 -21 ................................ ................................ ...............  453 
BOXES  
 
Box 3.1 Import licensing requirements, 2022  ................................ ................................ ..... 438 
 
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1  ECONOMIC ENVIRONMENT  
1.1  Recent economic developments  
1.1.1   Real economy  
1.1.  Saint Vincent and the Grenadines is an island state, located in the southeast Windward Islands 
of the Lesser Antilles, at the southern end of the eastern Caribbean Sea. The country consists of the 
main island of Saint Vincent, and two thirds of the northern part of the Grenadines, a chain of 
32 smaller islands , some of which are inhabitable. As a small island dev eloping state, Saint  Vincent 
and the Grenadines is vulnerable to exogenous shocks such as natural disasters and global market 
fluctuations.  
1.2.  Saint Vincent and Grenadines' economy is dominated by services, mainly by tourism. The 
services sector accounts for over 60% of the economy , while tourism -related activities1 
(i.e. wholesale and retail; accommodation and restaurants; and transport and storage) combined 
contribute around 20% to GDP each year.  Agriculture, together with fisheries, produces the majority 
of merchandise exports of the country, accounting for about 7% of GDP. The manufacturing sector 
is small, consisting mainly of agro -processing; it contributes around 4% to GDP (Table  1.1). The 
total population of the Saint Vincent and the Grenadines was 110,784 in 2021, with an annual growth 
rate of 0.3%; during th e review period (2015 -22), Saint  Vincent and the Grenadines recorded a net 
outflow of population.2 Saint Vincent and the Grenadines is classified as an upper middle -income 
country classified by the World Bank, per capita GDP was slightly over USD  8,000 in  2021.  
Table  1.1 Selected economic indicator, 2015 -21 
 2015  2016  2017  2018  2019  2020  2021  
GDP (current XCD  million)  2,124  2,199  2,289  2,388  2,457  2,355  2,441  
GDP (current USD  million)  787 814 848 884 910 872 904 
Real GDP growth (% change)  2.8 4.1 1.7 3.1 0.4 -5.3 1.4 
GDP per capita (USD)  7,131  7,380  7,676  8,002  8,229  7,879  8,162  
GDP by economic activity (% of GDP)  
Agriculture, forestry and fishing  6.3 6.8 6.7 7.1 7.0 8.6 6.9 
Crops  4.5 5.0 4.9 5.1 5.0 6.4 5.1 
Animal production  1.3 1.3 1.3 1.3 1.4 1.4 1.2 
Fishing and aquaculture  0.4 0.4 0.4 0.7 0.6 0.7 0.6 
Mining and quarrying  0.1 0.1 0.1 0.2 0.1 0.1 0.2 
Manufacturing  4.8 5.0 5.0 4.9 4.1 3.9 4.1 
Electricity, gas, steam and air 
conditioning supply  2.6 2.3 2.4 2.3 2.6 2.4 2.3 
Water supply, sewerage, waste 
management and remediation 
activities  0.9 0.8 0.8 0.9 0.9 0.9 0.9 
Construction  6.5 6.2 6.4 6.3 6.0 5.6 6.2 
Services  64.7 63.7 63.6 63.5 64.3 63.0 62.7 
Wholesale and retail trade; 
repair of motor vehicles and 
motorcycles  11.2 10.8 10.2 10.4 9.5 9.5 11.0 
Transportation and storage  6.6 6.5 7.3 7.8 7.9 5.7 5.2 
Road transport  4.3 4.4 4.8 5.0 4.8 3.7 3.6 
Sea transport  0.6 0.4 0.8 1.0 1.0 0.9 0.8 
Air transport  0.6 0.7 0.6 0.7 0.7 0.2 0.2 
Warehousing and support 
activities for transportation  0.8 0.8 0.9 1.0 1.3 0.8 0.5 
Postal and courier activities  0.2 0.2 0.1 0.1 0.1 0.1 0.2 
Accommodation and food service 
activities  2.7 2.6 3.1 3.9 4.3 2.6 1.6 
Accommodation  1.4 1.3 1.5 1.9 2.1 1.0 0.6 
 
1 Saint Vincent and the Grenadines does not have a tourism satellite account.  
2 World Bank, Data: Saint Vincent and the Grenadines . Viewed at: 
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   2015  2016  2017  2018  2019  2020  2021  
Food and beverage service 
activities  1.3 1.3 1.6 2.0 2.2 1.6 1.0 
Information and communication  4.0 3.9 3.7 3.2 3.2 3.2 3.1 
Publishing activities  0.1 0.1 0.0 0.0 0.0 0.0 0.0 
Motion picture, video and 
television programme 
production, sound recording 
and music publishing activities  0.4 0.3 0.3 0.3 0.3 0.3 0.3 
Telecommunications  3.5 3.6 3.3 2.9 2.8 2.9 2.8 
Financial and insurance activities  7.1 6.8 6.5 6.2 7.2 8.2 8.1 
Financial service activities, 
except insurance and pension 
funding  6.2 5.9 5.6 5.3 5.9 6.8 6.7 
Insurance, reinsurance and 
pension funding, except 
compulsory social security  0.9 0.9 0.9 0.9 1.3 1.4 1.4 
Real estate activities  10.5 10.1 9.9 9.9 9.7 9.9 9.8 
Professional, scientific and 
technical activities  1.3 1.3 1.3 1.1 1.0 1.1 1.1 
Administrative and support 
service activities  2.1 2.3 2.2 2.2 2.0 1.9 1.8 
Public administration and 
defence; compulsory social 
security  8.5 8.5 8.0 7.5 7.7 8.5 8.9 
Education  6.2 6.5 7.0 6.8 7.2 7.7 7.7 
Public Sector Education  4.5 4.2 4.1 4.0 4.0 4.4 4.5 
Private Sector education  1.7 2.2 2.9 2.8 3.2 3.3 3.2 
Human health and social work 
activities  2.7 2.6 2.4 2.5 2.7 3.0 2.8 
Public Sector Health  2.2 2.1 1.8 1.8 2.0 2.2 2.1 
Private Sector Health  0.5 0.5 0.6 0.7 0.7 0.7 0.7 
Arts, entertainment and 
recreation  0.9 1.0 1.0 1.0 1.0 0.9 0.9 
Other service activities  0.7 0.6 0.6 0.6 0.6 0.6 0.5 
Activities of households as 
employers; undifferentiated 
goods - and services -producing 
activities of households for own 
use 0.3 0.3 0.3 0.3 0.3 0.3 0.3 
Gross value added at basic prices  85.9 84.9 85.0 85.1 85.1 84.6 83.4 
Taxes on products  14.1 15.2 15.1 14.9 15.0 15.5 16.7 
Less subsidies on products  -0.1 0.0 0.0 0.0 0.0 0.0 0.0 
Prices and interest rates  
Inflation (%, end of period)  -2.1 1.0 3.0 1.4 0.5 -1.0 3.4 
Inflation (%, period average)  -1.7 -0.1 2.2 2.3 0.9 -0.6 1.6 
Money supply (M1) (XCD  million, 
end of period)  438 480 476 516 580 586 694 
Monetary liabilities (M2) 
(XCD million, end of period)  1,476  1,521  1,539  1,565  1,720  1,643  1,854  
Money supply (M1) (% growth)  2.7 9.6 -0.8 8.4 12.5 1.0 18.4 
Monetary liabilities (M2) (% 
growth)  4.8 3.0 1.2 1.7 9.9 -4.5 12.8 
Interest rates         
Deposit interest rate (%)  1.92 1.82 1.82 1.78 1.68 1.62 1.65 
Lending interest rate (%)  9.22 8.90 8.58 8.41 8.3 7.8 7.5 
Memorandum  
Population (persons)  110,299  110,343  110,431  110,520  110,608  110,696  110,784  
Exports of goods and services 
(% of current GDP)  36.1 37.2 34.6 36.4 36.0 21.7 13.9 
Imports of goods and services 
(% of current GDP)  53.0 53.9 50.7 51.2 46.7 42.8 46.0 
Exchange rate (domestic currency 
per USD)  2.7 2.7 2.7 2.7 2.7 2.7 2.7 WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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   2015  2016  2017  2018  2019  2020  2021  
Real effective exchange rate 
(index)  103.1  104.2  104.2  103.9  105.9  103.6  99.8 
Real effective exchange rate 
(% change)  5.5 1.1 0.0 -0.2 1.9 -2.1 -3.7 
Note:  Data of 2019 -21 are preliminary data.  
Source:  Statistical Office of St Vincent & the Grenadines; Eastern Caribbean Central Bank (ECCB); and the 
International Monetary Fund (IMF).  
1.3.  During the review period, Saint Vincent and the Grenadines' economic performance was 
modest. GDP expanded by an average annual rate of 1.1% in the 2015 -21 period. The major driving 
force of economic growth throughout the review period were services exports, in particular tourism, 
and construction activities (building new and rebuilding/repairing damaged infrastructure).  
1.4.  During the first years of the review period, the economy was still recovering from the global 
financial  crisis and back -to-back natural disasters, but despite this, solid growth rates were achieved 
in both 2015 and 2016, 2.8% and 4.1%, respectively. Although real GDP growth slowed down a bit 
in 2017, to 1.7%, it picked up again in 2018, to 3.1%, as tourist arrivals gradually increased, boosted 
in particular by the significant improvement in the country's airlift capacity as the new international 
airport became operational in February 2017. The economy weakened in 2019, and real GDP 
contracted by 5.3% in 2020 , when the COVID -19 pandemic hit the country. The economy's recovery 
from the pandemic was further complicated by the La Soufrière volcano eruption in April 2021; as a 
result, GDP grew by just 1.4% in 2021, and it remained below its pre -pandemic level. Ref lecting the 
Government's response as well as assistance from the international community, the economy is 
expected to have experienced a mild recovery in 2022.  
1.5.  The COVID -19 pandemic posed a major challenge to Saint Vincent and the Grenadines' 
tourism -driven  economy. Visitor arrivals from all major markets declined; most significantly, the 
number of stay -over visitors plummeted by 69%. Value added in the hotels and restaurants sector 
declined steeply by 55%. Tourism receipts almost dried up. The decline in to urism was compounded 
with negative growth in the agriculture and manufacturing sectors preceding the pandemic. All this 
led to a GDP contraction of 5.3% in 2020. The persistently high unemployment rate further increased 
by 2 percentage points due to the pa ndemic, reaching 21.6% in 2021, compared to 19.3% in 2019.3 
1.6.  The volcano eruption added stress on the country's economic recovery. According to a study 
by the authorities, economic loss from La Soufrière's eruption was equivalent to more than 18% of 
GDP in 2020. The eruption affected to a large extent the agricultur al sector, almost wiping out all 
crops and livestock. It also provoked direct damage to infrastructure and buildings; this damage 
alone was estimated to exceed 26% of GDP (approximately XCD  622 million).4 Moreover, the 
damage caused to manufacturing produ ction and construction projects, which were temporarily 
disrupted by ash accumulation and the interruption of utilities is estimated to have amounted to 
around 11% of GDP in 2021.5 However, the authorities estimate that the impact of volcano eruption 
on the tourism sector was small, partly because it was still suffering from the effects of the 
pandemic.6  
1.7.  In the most recent Art icle IV Consultations, in November 2022, IMF staff noted that, prior to 
the pandemic, the authorities had made great strides with strengthening fundamentals. Significant 
efforts were made to diversify the export base, strengthen human capital, improve the investment 
 
3 As reported in the IMF's Article  IV Consultation with Saint Vincent and the Grenadines in 2018 and 
2022, the Government estimated that the unemployment rate was 25.8% in 2017. The Ministry of Finance 
noted that the unemployment rate likely remains around 20%, broadly unchanged from the previous 2012 
Census. See IMF (2019), Staff Report for the 2018 Article  IV Consultation : St Vincent and the Grenadines . 
Viewed at: https://www.imf.org/ -/media/Files/Publications/CR/2019/1VCTEA2019001.ashx .  
4 Ministry of Finance (2021), La Soufrière Volcanic Eruption Sector Reports : Saint Vincent and the 
Grenadines , August 2021 . Viewed at: 
http://finance.gov.vc/finance/images/PDF/Full_Report_SVG_PDNA_Volcanic_Eruption.pdf .  
5 IMF, World Economic Outlook , April 2021.  
6 The authorities note that the relatively small impact of the eruption on the tourism sector can be 
attributed to two factors: that the majority of tourism infrastructure is in the green zone, that is an area far 
away from the volcano; and that the estimate methodology (the simultaneous disasters approach) already 
included the i mpact from COVID -19 on the sector in the modelling baseline. As a result, estimates were made 
starting from an already low baseline.  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  climate, and build climate resilience. However, the pandemic and 2021 volcanic eruptions had 
highlighted Saint Vincent and the Grenadines' significant vulnerability to external shocks and natural 
disasters. The report notes that the authorities' proactive policy responses, supported by two IMF 
Rapid  Credit  Facilities (RCFs) and financing from other international financial institutions, mitigated 
the socio -economic impact of the shocks and helped contain economic scars. The two RCF 
disbursements approved were if SDR 11.7  million (100% of quota) in May 2020, to address the 
COVID -19 pandemic and SDR 8.17  million (69.85% quota)  in July 2021, to address the fallout from 
the volcanic eruptions. The financing helped the Government finance "two fiscal packages to provide 
critical support to households and firms affected by the shocks and the vulnerable ".7 
1.8.  In November 2022, the IMF projected the economy to grow by 5% in 2022 supported by 
large-scale investment projects and recoveries in tourism and agriculture, and to strengthen further 
in 2023. Due to external pressures, average annual inflation was estimated in 5.8% in 2022.8  
1.9.  Inflation remained subdued during most of the review period between 0.5% and 3%, with the 
exception of 2015 and 2020, years in which the change in the Consumer Price Index was negative. 
In 2021, however, push by imported inflationary pressure, in particular a  sharp increase in energy 
and food prices, inflation accelerated to annual average of 3.4%, and as noted above was expected 
to have hovered around 6% in 2022. As a response to inflationary pressure, the Government 
introduced a number of measures to counter  it, including: (i)  a temporary reduction in fuel excise 
taxes by half; (ii)  the removal of the Customs Service Charge ( CSC) on the fuel imports of the Saint 
Vincent Electricity Services Limited (VINLEC) from May through end -2022; (iii)  fertilizer subsidie s to 
farmers in 2022 and feed subsidies to livestock farmers; (iv)  the re -introduction of the targeted food 
support programme from May  2022; (v)  an increase in the VAT exemption threshold on monthly 
electricity usage from 150  kWh to 250  kWh from July throu gh end -2022; and (vi) a waiver of half 
of the CSC on flour from July  2022.  
1.1.2   Fiscal policy  
1.10.  Like other OECS -WTO Member s, Saint Vincent and the Grenadines' fiscal base is narrow and 
highly dependent on tourism and connected activities. Most fiscal revenues co me from indirect taxes, 
including VAT, excise taxes, tariffs , and the CSC. International trade was a major contributor to the 
increase in the government revenue during the review period. Customs duties and the CSC  together, 
as direct revenues from trade, a ccounted for around 12% of total tax revenue. Revenue from VAT 
accounted for about one third of total revenue (Table  1.2).  
1.11.  Prior to the COVID -19 pandemic, Saint Vincent and the Grenadines had initiated a process of 
fiscal consolidation and structural refo rms to broaden the tax base , improve tax collection , contain 
expenditure , and address the issue of public debt sustainability. These adjustment measures 
included broadening the tax base; increasing VAT rates and those of other charges, such as the CSC, 
airport services charge, and landholding licence fee; strengthening tax collection efficiency; and 
streamlining/tightening tax concessions and exemptions. Consequently, the fiscal position improved; 
public debt, as a share of GDP, gradually decreased to 68% i n 2019, from 76% in 2015 (Table  1.2). 
Also, with the completion of this major infrastructure project, capital expenditure gradually 
decreased until 2018, though capital outlays and cash transfers (mainly for rehabilitation operations 
from back -to-back natu ral disasters) remained high.  
1.12.  These initiatives led to primary fiscal surpluses during the 2015 -18 period, and moderate 
overall balance deficits, of between 0.8% and 1.9% of GDP (in 2016 there was a surplus). The fiscal 
responses coupled with a contractio n of economic activity led to a reversal of the declining trend of 
public debt -to-GDP ratio prior to 2020. In 2020 the overall budget deficit, financed largely by 
multilateral and bilateral assistance, widened to 6.1% of GDP due to COVID -19-related spendin g. 
Total spending increased, although less than in other OECS -WTO Members, to 25.9% of GDP in 
2020, up from 23.6% in 2019. However, and despite the shocks, tax revenue remained resilient in 
 
7 IMF (2022), St Vincent and the Grenadines: Staff Report for the Article  IV Consultation , IMF Country 
Report No.  22/346, N ovember , p. 6. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2022/11/17/St -Vincent -and-the-Grenadines -2022-Article -IV-
Consultation -Press -Release -Staff-Report -and-525774 . 
8 IMF Country Report No.  22/346. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2022/11/17/St -Vincent -and-the-Grenadines -2022-Article -IV-
Consultation -Press -Release -Staff-Report -and-525774 . WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  nominal terms in 2020 and 2021, and actually increased in share of  GDP. The overall deficit fell as 
a share of GDP in 2021, to 5% of GDP, but increased in value terms. Public debt rose to 89% of GDP 
in 2021, from about 68% in 2019.  
1.13.  In accordance with the Social and Economic Development Plan, the Government identified 
improving connectivity as crucial for alleviating supply -side constraints to growth and enhancing the 
competitiveness of the country.9 The construction of the new international airport, started in 2008 
through a commercial loan , was completed in mid -February 2017, and the airport became 
operational. This expansion of air transport capacity facilitates the tourism sector, as it allows the 
country to accommodate a much larger number of arrivals.  
1.14.  When the first domestic COVID -19 cases w ere reported, the Government did not declare a 
state of emergency, being the only country in the region permitting all business activity to continue. 
In addition, the Government introduced a relief package, which included an increase in funding for 
the hea lth sector, various public construction projects to generate jobs, financial support for the 
agriculture and fisheries sectors, and programmes to support displaced workers and the most 
vulnerable. The package cost approximately XCD  77 million. More particu larly, the measures 
included: (i)  an increase in health care spending; (ii)  cash payments to vulnerable households; 
(iii) income support during the April 2020 –mid-2021 period for displaced workers and firms in the 
tourism, agriculture, and other sectors af fected; (iv)  public infrastructure projects to clean and 
reconstruct; and (v)  temporary VAT and import duty exemptions on health and aid -related products. 
To help finance the increased expenditure, the CSC rate was raised by 1  percentage point to 6%, 
effective from June  2021. Despite this, expenditure increased by 2 percentage points, and the fiscal 
deficit broadened to 3.9% of GDP in 2020 from 0.9% in 2019. Public debt as a share of GDP sharply 
rose by almost 13  percentage points, and stood at 80.9% in 202 0 (Table  1.2). Against this backdrop, 
the authorities sought emergency financing assistance from the IMF, for an amount of 
SDR 11.7 million (approximately USD  16 million) under the Rapid  Credit  Facility (RCF) mechanism. 
The request was approved in May 2020 .  
1.15.  Shortly before the La Soufrière  eruption, an evacuation order was issued to nearly 
20,000  persons in the affected area; approximately 20% of the country's population was displaced. 
Relief was provided to all affected persons; the authorities estimate that a fiscal package of 
USD 55.1 million was needed for the immediate relief of the humanitarian and healthcare crisis. 
Also, the authorities estimate that a total of XCD  561.4  million was needed in the short term for 
recovery from the volcano eruption. The debt -to-GDP ratio rose further to  86.7% in 2021. Given 
that the current account deficit was expected to widen in 2021, a financing need arose. Recourse 
was made to the IMF, which , in July 2021 approved a disbursement of SDR  8.17 million 
(approximately USD  11.6 million) as emergency financ ing assistance under the Large Natural 
Disaster Window of the RCF.  
Table  1.2 Central Government fiscal accounts, 2015 -21 
(% of current GDP)   
2015  2016  2017  2018  2019  2020  2021a 
GDP (current XCD  million)  2,124  2,199  2,289  2,388  2,457  2,355  2,441  
Current revenue  24.4 27.0 25.9 25.0 24.5 25.0 27.1 
Tax revenue  20.9 22.7 22.4 21.4 20.9 22.1 23.9 
Taxes on goods and services  10.8 10.7 10.7 10.7 11.4 11.7 11.3 
Of which:  Value added tax  6.8 7.0 7.0 7.1 7.7 7.6 7.5 
Taxes on income and profits  6.1 7.1 6.6 6.2 5.7 6.1 5.9 
Of which:  Corporation tax  2.2 3.0 2.4 2.3 1.8 1.9 1.8 
Personal income tax  3.3 3.5 3.5 3.3 3.4 3.6 3.6 
Taxes on property  1.4 2.1 2.5 1.6 1.1 1.7 4.1 
Taxes on international trade and 
transactions  2.6 2.9 2.7 2.9 2.7 2.7 2.6 
Of which:  Import duty  2.5 2.6 2.4 2.5 2.4 2.4 2.3 
Non-tax revenue  3.5 4.3 3.5 3.6 3.6 2.9 3.2 
 
9 Government of Saint Vincent and the Grenadines  (2013), National Economic and Social Development 
Plan (2013 -2025) . Viewed at: http://finance.gov.vc/finan ce/index.php/economic -planning -industry -and-social -
development/national -economic -a-social -development -plan.  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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2015  2016  2017  2018  2019  2020  2021a 
Current expenditure  23.9 22.9 23.6 23.1 23.6 25.9 26.9 
Goods and services  3.4 3.1 3.4 3.2 3.2 3.8 4.0 
Interest payments  2.1 1.9 2.2 2.2 2.3 2.2 2.0 
Domestic interest payments  1.3 1.3 1.4 1.3 1.4 1.4 1.3 
External interest payments  0.8 0.7 0.8 0.8 0.8 0.8 0.7 
Personal emoluments  12.7 12.5 12.3 12.1 12.3 13.7 13.8 
Transfers and subsidies  5.7 5.4 5.8 5.6 5.7 6.2 7.0 
Capital expenditure  4.7 3.6 5.4 4.1 6.5 8.0 8.0 
Capital expenditure and net lending  4.7 3.6 5.4 4.1 5.3 8.0 8.0 
Current account balance  0.6 4.0 2.3 1.9 0.9 -0.9 0.3 
Primary balance (after grants)  1.3 3.0 0.2 0.7 -0.9 -3.9 -3.0 
Overall balance (after grants)  -0.8 1.1 -1.9 -1.5 -3.2 -6.1 -5.0 
Total financing  0.8 -1.1 1.9 1.5 3.2 6.1 5.0 
Domestic financing  -1.9 -3.0 2.3 -1.3 1.2 -9.7 -14.5 
External Financing  4.0 3.0 -0.4 1.9 1.3 0.0 19.6 
Arrears  -1.4 -1.1 0.0 0.8 0.7 0.0 0.0 
Memorandum         
Total public debt (XCD  million)  1,614  1,717  1,585  1,653  1,670  1,905  2,116  
Total public debt (% of GDP)  76.0 78.1 69.3 69.2 68.0 80.9 86.7 
External debt (% of GDP)  50.7 55.9 45.7 44.2 46.1 52.9 62.4 
Domestic debt (% of GDP)  25.3 22.2 23.6 25.0 21.9 28.0 24.2 
a Preliminary data.  
Source:  Eastern Caribbean Central Bank (ECCB).  
1.16.  The FY2022 budget restrains current spending and prioritizes spending to provide support to 
reconstruction and economic activity, focusing in particular on social and health spending. The IMF 
estimated that the primary deficit will widen to 5.7% of GDP from 3% in 2021 due to the beginning 
of the port construction. Although public debt is considered sustainable, it remains at high risk of 
distres s. The authorities are committed to reaching the 2035 regional debt target of 60% of GDP. 
To achieve this, current spending growth needs to be contained, and revenue administration 
fortified.  
1.17.  Three large -scale investment projects are currently in the pipel ine; they are expected to boost 
growth, but also expenditure. Two of these projects are public sector projects  (port modernization 
and the construction of a new hospital ), and one is a private sector project on the construction of 
the Beaches Resort. Accor ding to the IMF, these projects collectively amount to about 57% of 2022 
GDP and will have significant macroeconomic impact on growth, employment, current account 
deficit, and fiscal outcomes in both the short and long  terms. Public sector projects, financ ed by 
grants and loans on concessional terms, will add to gross financing needs and public debt in the 
coming years.10  
1.18.  The first project is the Port of Kingstown's modernization. In December 2019, the authorities 
reached an agreement with the Caribbean De velopment Bank (CDB) on a large -scale port 
modernization project with the objective to replace the existing port in Kingstown. The Government 
began modernizing the Kingstown Port in 2022. The cost of this port modernization project was 
estimated to be equi valent to approximately 25% of GDP in 2022, or some USD  238 million. It is 
financed by a combination of grants from the United  Kingdom and loans from the CDB (about 
USD 110 million). The second project is the Arnos Vale Acute Referral Hospital, whose const ruction 
is expected to begin in 2023 at an estimated total cost of some 10.5% of 2022 GDP, with the 
financing of the World Bank at concessional terms, and multilateral and bilateral creditors at similar 
 
10 IMF Country Report No.  22/346 . Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2022/11/17/St -Vincent -and-the-Grenadines -2022-Article -IV-
Consultation -Press -Release -Staff-Report -and-525774 . WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  terms. The third project is private, a new Beaches Re sort at Buccament Bay, with an estimated cost 
of USD  200 million (some 21% of 2022 GDP), expected to open by early 2024.11 
1.19.  Saint Vincent and the Grenadines does not operate any Citizenship -by-Investment scheme, 
of the kind that are in place in all other OE CS-WTO Members.  
1.1.3   Balance of payments, monetary , and exchange rate policy  
1.20.  Saint Vincent and the Grenadines, as a member of the Eastern Caribbean Currency Union 
(ECCU), uses the Eastern Caribbean dollar (XCD), as legal tender managed collectively by the 
Easte rn Caribbean Central Bank (ECCB). The ECCB manages the exchange rate on a currency board 
arrangement throughout the ECCU, pegging the XCD with the USD  at a rate of XCD  2.70 per USD. 
According to the authorities, Saint Vincent and the Grenadines remains str ongly committed to the 
ECCU's convergency criteria, and the public debt -to-GDP ratio will be ambitiously brought down to 
60% no later than 2030 from 86.7% in 2021.12  
1.21.  During the review period, Saint Vincent and the Grenadines' current account of the balance 
of payments remained in deficit. The deficit narrowed from the beginning of the review period until 
2019; then the trend reversed in 2020, and the deficit became eve r larger in 2021 (Table  1.3). This 
change in the current account deficit reflected the fluctuation of services trade and its contribution 
to the economy: Before 2020, the trade in services surplus covered around 40% of the merchandise 
trade deficit; howeve r, the surplus shrank to one quarter of the pre -pandemic level in 2020, and 
turned into deficit in 2021 when La Soufrière  erupted.  
Table  1.3 Balance of payments, 2015 -21 
(USD  million)   
2015  2016  2017  2018  2019  2020  2021  
1. Current account  -115.8  -103.7  -99.3 -89.8 -27.9 -131.5  -211.6  
1.A Goods and services  -132.7  -136.0  -136.2  -130.7  -97.8 -184.8  -289.9  
1.A.a Goods  -248.5  -248.4  -247.0  -265.5  -250.9  -224.8  -289.6  
Exports  46.3 46.8 44.0 46.3 44.6 58.2 38.2 
Imports  294.8  295.1  290.9  311.8  295.4  283.0  327.8  
1.A.b Services  115.8  112.3  110.8  134.8  153.1  40.0 -0.3 
Exports  237.6  255.8  249.2  275.5  282.9  130.6  87.6 
Imports  121.8  143.4  138.4  140.7  129.8  90.6 87.9 
1.B Primary income  -18.2 -5.2 -3.5 -0.5 -7.4 -4.6 -4.8 
1.B.1 Compensation of employees  -1.8 -2.7 -2.4 -0.8 -0.6 0.4 0.4 
1.B.2 Investment income  -16.4 -2.4 -1.2 0.3 -6.9 -5.1 -5.2 
1.B.2.1 Direct investment  -11.0 1.6 2.7 4.9 -3.0 -0.3 -0.3 
1.B.2.2 Portfolio investment  3.2 2.7 3.8 2.9 3.3 2.0 2.1 
1.B.2.3 Other investment  -8.7 -6.7 -7.6 -7.5 -7.1 -6.8 -7.0 
1.B.3 Other primary income  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
1.C Secondary income  35.1 37.5 40.4 41.3 77.3 58.0 83.1 
1.C.1 General government  3.3 8.1 12.6 13.8 21.9 16.1 16.4 
1.C.2 Financial corporations, 
nonfinancial corporations, households, 
and NPISHs  31.9 29.3 28.5 27.6 57.9 42.3 67.1 
1.C.3 Adjustment for change in 
pension entitlements  -0.1 0.1 -0.7 -0.1 -2.5 -0.4 -0.4 
2. Capital account  11.5 6.4 76.4 5.7 4.6 4.9 17.3 
2.2 Capital transfers  11.5 6.4 76.4 5.7 4.6 4.9 17.3 
2.2.1 General government  11.4 6.3 76.4 5.7 4.6 4.9 6.2 
2.2.2 Financial corporations, 
nonfinancial corporations, households, 
and NPISHs  0.1 0.1 0.0 0.0 0.0 0.0 11.1 
 
11 IMF Country Report No.  22/346. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2022/11/17/St -Vincent -and-the-Grenadines -2022-Article -IV-
Consultation -Press -Release -Staff-Report -and-525774 . 
12 The public debt -to-GDP ratio is forecasted to reach its peak at about 89% in 2024, according to the 
IMF. WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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2015  2016  2017  2018  2019  2020  2021  
Net lending (+) / net borrowing ( -) 
(balance from current and capital 
account)  -104.3  -97.4 -22.9 -84.1 -23.3 -126.6  -194.4  
3. Financial account  .. .. .. .. .. .. .. 
Net lending (+) / net borrowing ( -) 
(balance from financial account)  -121.8  -60.1 -74.1 -30.7 -3.0 -42.9 -26.0 
3.1 Direct investment  -115.8  -88.8 -142.5  -34.2 -69.2 -28.4 -61.7 
3.2 Portfolio investment  -3.4 5.2 10.5 -5.2 18.6 14.1 5.2 
3.3 Financial derivatives (other than 
reserves) and employee stock options  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
3.4 Other investment  -18.1 -3.1 74.8 21.1 23.8 -40.5 -53.2 
3.4.2 Currency and deposits  0.5 24.0 -15.7 5.4 50.1 18.9 33.2 
3.4.3 Loans  -8.5 -31.7 80.4 7.0 -29.8 -57.2 -93.8 
3.4.4 Insurance, pension, and 
standardized guarantee schemes  1.0 1.7 -2.6 1.6 5.4 2.9 2.9 
3.4.5 Trade credit and advances  -10.1 3.8 5.6 2.7 4.0 2.6 1.3 
3.4.6 Other accounts 
receivable/payable  -0.9 -0.9 7.1 4.3 -5.9 -7.7 19.2 
3.4.7 Special drawing rights (Net 
incurrence of liabilities)  0.0 0.0 0.0 0.0 0.0 0.0 15.9 
3.5 Reserve assets  15.4 26.6 -16.9 -12.4 23.7 11.8 83.6 
3.5.2 Special drawing rights  0.0 0.2 0.5 -0.6 0.5 -0.6 15.7 
3.5.3 Reserve position in the IMF  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
3.5.4 Other reserve assets  15.4 26.4 -17.5 -11.8 23.3 12.4 68.0 
Net errors and omissions  -17.5 37.3 -51.2 53.4 20.4 83.7 168.3  
Memorandum         
Current account as a share of GDP 
(%) -14.7 -12.7 -11.7 -10.2 -3.1 -15.1 -23.4 
External debt service ratio 
(XCD million)  83.6 81.7 101.6  99.3 118.7  .. .. 
External debt service ratio (% of 
exports of goods and services)  0.1 0.1 0.1 0.1 0.1 .. .. 
.. Not available.  
Note:  Data of 2019 -21 are preliminary data. The aggregated data on financial account are not provided.  
Source:  Eastern Caribbean Central Bank (ECCB), and Central Statistical Office.  
1.22.  The deficit in merchandise trade during the review period is in a way the mirror image of the 
buoyancy of the tourism sector, which absorbs a fair share of imported merchandise. In addition to 
supplies to the tourism sector, other tourism -related imports o f goods are capital goods for tourism 
infrastructure construction. Large -scale infrastructure projects that began construction during the 
review period, such as the new cargo terminal of the Kingstown Port and the new Beaches Resort , 
imply a significant in crease in imports, widening the current account deficit.  
1.23.  During the review period, Saint Vincent and the Grenadines received international capital 
transfers from international financial institutions, and other grant donations. The inflows of capital 
transf ers and the FDI destined for the tourism sector, together with other international borrowing, 
financed the current account deficit. With regard to the above -mentioned more recent infrastructure 
projects, their imports are not expected to create pressure on  gross international reserves, 
considering that the bulk of financing stems from external sources. In the medium term, these 
projects would improve the country's export potential (agricultural goods and tourism), and 
therefore contribute to reduce the curr ent account deficit.  
1.24.  In its National Economic and Social Development Plan (2013 -2025), the Government 
committed to achieving that the current account deficit not exceed 2.5% of GDP.13 Before COVID -19 
and the volcano eruption, the current account deficit wa s on a declining path, having fallen from 
 
13 Government of Saint Vincent and the Grenadines (2013), National Economic and Social Development 
Plan (2013 -2025) . Viewed at: http://finance.gov.vc/finance/index.php/economic -planning -industry -and-social -
development/national -economic -a-social -development -plan. WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  14.7% of GDP in 2015 to 3.1% in 2019 (Table  1.3). The COVID -19 pandemic and the volcano 
eruption reversed the trend; the current account deficit rebounded to 23.4% of GDP in 2021.  
1.25.  According to the IMF, the real ex change rate is currently overvalued against Saint  Vincent 
and the Grenadines' economic fundamentals.14 
1.2  Trends and pattern in merchandise and services trade  
1.26.  In terms of merchandise trade, Saint Vincent and the Grenadines is a net importer. 
Merchandise expor ts remain limited; they totalled USD  34 million in 2021, down from USD  48 million 
in 2015. Food and live animals make up over two thirds of exports (Chart  1.1). More than half of 
merchandise exports were fruits and fish products. During the review period, exports of 
agro-processing goods, in particular beverages, noticeably declined, from USD  16.5 million in 2014 
(approximately 11.5% of total exports) to USD  6.6 million, accounting for 6.1% of total export in 
2021 (Chart  1.1). The authorities note that such  a decline in agro -processing goods exports was 
mainly attributed to the trade disruption caused by the COVID -19 pandemic.  
1.27.  Merchandise imports totalled USD  373 million in 2021, slightly above the USD  361 million 
registered in 2020. Food and fuels are the l argest spending items with regard to merchandise 
imports, followed by machineries and transport equipment , and manufactured goods. Saint Vincent 
and the Grenadines imposes high duties, taxes, and surcharges on imports of fuels and transport 
equipment ( Sections 3.1.3 and 3.1.4).  
1.28.  Although there are no fully disaggregated statistics with respect to trading partners, the 
United  States, the United  Kingdom , and other countries in CARICOM continue to be Saint  Vincent 
and the Grenadines' main trading partners, both  with respect to exports and imports.  
1.29.  Saint Vincent and the Grenadines remained a net exporter of services throughout the review 
period until 2021. Before the COVID -19 pandemic hit the country in 2020, exports of services were 
equivalent to around 30% of G DP each year. Over 80% of services exports are travel services 
(i.e. tourism). As the number of tourist arrivals steadily increased until 2019, earnings from tourism 
exports  recorded a growth of 17%, reaching USD  241.7  million in 2019, up from USD  207.1  million 
in 2015. Tourism -related exports dropped to one third of pre -pandemic level in 2020, and further 
declined to less than 20% of that level in 2021 (Table  1.4). A gradual recovery is expected starting 
in 2022.  
1.30.  Transport services and telecommunications r emained significant contributors to the services 
balance surplus. As the tourism sector expanded before 2020, income from transport services 
steadily increased. Due to the COVID -19 pandemic and the volcano eruption, transport services 
earnings declined by more than 50% in 2021, compared to the situation before the disaster.  
1.31.  Technical trade -related and other business services gained importance among services 
exports during the review period. They reached USD  16.8 million in 2021, up from USD  5.4 million 
in 2015, and appeared not much affected by the pandemic.  
 
14 IMF (2019), Staff Report for the 2018 Article  IV Consultation : St Vincent and the Grenadines . Viewed 
at: https://www.imf.org/ -/media/Files/Publications/CR/2019/1VCTEA2019001.ashx . WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  Chart  1.1 Merchandise trade by main SITC sections, 2014 and 2021  
 
Source:  WTO Secretariat calculations, based on ECCB statistics.  
Chart 1.1
Merchandise trade by main SITC sections, 2014 and 2021
2014 2021
Exports
Total: USD 48 million
Imports
Total: USD 361 million Total: USD 373 million
Source:   WTO Secretariat calculations, based on ECCB statistics.Total: USD 34 millionOther
1.3%
Beverages & 
tobacco
11.5%Other
1.9%
Chemical 
products
7.5%Machinery & 
transport 
equipment
8.2%
Mineral fuels
20.9%Misc. manuf.
9.7%
Machinery & 
transport 
equipment
18.1%Other
2.6%
Chemical 
products
9.3%Misc. manuf.
11.3%
Machinery & 
transport 
equipment
20.8%Other
2.8%
Mineral fuels
12.5%Machinery & 
transport 
equipment
11.8%
Manuf. 
goods
10.5%Misc. 
manuf.
6.0%
Manufactured 
goods
15.7%Food & 
live 
animals
58.9%Manufactured 
goods
13.3%
Food & live 
animals
67.2%Beverages & 
tobacco
6.1%Misc. 
manuf.
3.4%
Food & live 
animals
21.9%Food & live 
animals
23.9%
Beverages & 
tobacco
3.4%Beverages 
& tobacco
3.7%
Manufactured 
goods
15.8%WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  Table  1.4 Trade in services, 2015 -21 
(USD  million)   
2015  2016  2017  2018  2019  2020  2021  
Services trade balance  115.8  112.3  110.8  134.8  153.1  40.0 -0.3 
Exports of services  237.6  255.8  249.2  275.5  282.9  130.6  87.6 
Transportation  8.3 10.5 11.9 13.6 12.7 7.5 5.1 
Sea transport  2.3 2.8 2.8 4.0 4.5 4.0 2.6 
Air transport  5.7 7.5 8.9 9.3 8.0 3.2 2.3 
Passenger  4.1 5.3 5.2 5.4 3.5 1.7 1.2 
Other  1.7 2.1 3.6 3.9 4.4 1.5 1.0 
Postal and courier services  0.3 0.3 0.2 0.3 0.3 0.3 0.3 
Travel  207.1  216.4  210.5  239.1  241.7  88.2 46.2 
Insurance services  3.0 4.1 4.2 3.9 4.6 5.1 5.1 
Direct insurance  0.3 0.1 0.1 0.1 0.2 0.1 0.1 
Reinsurance  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Auxiliary insurance services  2.7 4.0 4.1 3.8 4.4 5.0 5.1 
Financial services  4.2 4.3 3.4 3.4 3.8 3.8 4.0 
Telecommunications, computer , and 
information services (Combined)  7.6 8.2 7.9 5.4 5.5 5.1 5.2 
Other business services  6.0 10.7 9.7 8.8 13.1 16.6 16.9 
Professional and management 
consulting services  0.6 0.5 0.5 0.5 0.1 0.1 0.1 
Technical , trade -related , and other 
business services  5.4 10.2 9.2 8.2 13.0 16.5 16.8 
Personal, cultural, and recreational 
services  0.0 0.0 0.0 0.0 0.0 2.8 3.5 
Government services, n.i.e.  1.5 1.5 1.6 1.3 1.4 1.4 1.5 
Embassies and consulates  1.5 1.5 1.6 1.3 1.4 1.4 1.5 
Imports of services  121.8  143.4  138.4  140.7  129.8  90.6 87.9 
Maintenance and repair services , n.i.e. 0.2 0.1 0.1 0.1 0.1 0.1 0.1 
Transportation  51.2 52.3 54.6 51.2 49.0 34.4 34.8 
Sea transport  33.4 33.5 33.0 35.4 33.5 32.1 32.8 
Freight  33.4 33.5 33.0 35.4 33.5 32.1 32.8 
Air transport  17.6 18.7 21.4 15.7 15.4 2.3 2.0 
Passenger  17.0 17.6 20.6 14.9 14.4 2.0 1.7 
Other  0.5 1.1 0.8 0.8 1.0 0.3 0.3 
Postal and courier services  0.3 0.1 0.1 0.1 0.1 0.0 0.0 
Travel  23.3 22.6 24.3 24.7 22.9 9.6 6.4 
Construction services  7.8 10.1 5.0 3.5 7.7 1.8 2.0 
Construction in the compiling economy  7.8 10.1 5.0 3.5 7.7 1.8 2.0 
Insurance services  11.0 14.1 16.6 20.7 13.0 15.4 14.8 
Direct insurance  10.4 12.9 14.1 14.5 9.8 13.2 13.5 
Reinsurance  0.5 0.5 0.3 0.5 0.7 0.7 0.7 
Auxiliary insurance services  0.0 0.5 1.8 5.5 1.5 1.1 0.3 
Pension and standardized guarantee 
services  0.1 0.2 0.3 0.2 1.0 0.3 0.3 
Financial services  1.1 1.6 0.8 1.0 0.6 1.1 1.2 
Charges for use of intellectual property  3.1 3.4 2.7 2.7 2.4 2.6 2.6 
Telecommunications, computer , and 
information services (Combined)  3.2 4.3 4.4 4.7 4.5 4.7 4.7 
Other business services  18.8 33.1 26.8 29.0 27.1 18.4 18.8 
Professional and management 
consulting services  9.4 12.4 15.2 11.3 12.7 9.1 9.3 
Technical , trade -related , and other 
business services  9.4 20.7 11.6 17.7 14.5 9.3 9.5 
Government services, n.i.e.  2.1 2.0 3.1 3.2 2.4 2.4 2.5 
Embassies and consulates  1.4 1.2 2.3 2.4 2.4 2.4 2.5 
Other government services  0.7 0.7 0.7 0.7 0.0 0.0 0.0 
Note:  Data of 2019 -21 are preliminary data.  
Source:  Eastern Caribbean Central Bank (ECCB).  
1.32.  Transport accounted, on average, for almost 40% of total services imports each year. Over 
60% of the transport bill was spent on transportation of goods and supplies, while almost 90% of 
the spending on air transport corresponded to the transportation of passengers. Similarly, around 
15% of services imports were attributed to travel services. This mainly reflected the expenditure of 
Vincentian students studying abroad, the remittances of their  tuition fees , and maintenance. Some WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  12% of total imports correspond to insurance, which is not surprising given that Saint  Vincent and 
the Grenadines is prone to suffer the effect of natural disasters.15 
 
 
15 According to the authorities, this spending on insu rance services was mainly on reinsurance.  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  2  TRADE AND INVESTMENT REGIMES  
2.1  General framework  
2.1.  Saint Vincent and the Grenadines is a parliamentary democracy within the Commonwealth of 
Nations. The British monarch, represented locally by a Governor General, is the Head of State. The 
executive power, including authority to conclude and sign international treaties and agree ments, is 
exercised by the Prime Minister and his /her Cabinet. There is no local government in Saint  Vincent 
and the Grenadines; all six parishes are administered by the Central Government.  
2.2.  Legislative power is vested in the Parliament , comprising 15 elect ed members of the House of 
Assembly and 6 senators appointed by the Governor General; 4 senators are nominated by the 
Prime Minister and 2 by the leader of the opposition. The parliamentary term of office is five years, 
although the Prime Minister may call  elections at any time. Elections were last held in 
November  2020.  
2.3.  When the Executive decides that a law is needed for a specific purpose, the Attorney General's 
Chamber drafts a Bill at the request of a Ministry. Upon its introduction in Parliament by the  relevant 
Minister, the draft Bill needs to be seconded by another member of the House of Assembly. After 
three readings, a Bill is passed on a majority vote and becomes an Act. The Act becomes law when 
it is published in the Government Gazette, or on a sp ecified date stated in a proclamation published 
in the Gazette.  
2.4.  The legal system is based on English common law, with the following hierarchal order: 
magistrates' courts (the lowest judicial level); the Eastern Caribbean Supreme Court (the high court 
and the court of appeal); and the London -based Judicial Committee of the Privy Council, as the court 
of final appeal. The Caribbean Court of Justice in its original jurisdiction, established by CARICOM, 
has jurisdiction over matters pertaining to the Treaty of Chaguaramas.  
2.5.  Acceptance of an international treaty/agreement is subject to approval by the Cabinet. Once 
the Cabinet approves the agreement, the Government will submit the instrument of acceptance to 
the relevant international organizations.  Private parti es may not make use of international 
agreements before national courts until such agreements are transposed into domestic legislation.  
2.6.  Saint Vincent and the Grenadines has ratified the Convention on the Recognition and 
Enforcement of Foreign Arbitral Award s (the  New York Convention).  
2.2  Trade policy formulation and objectives  
2.7.  Export -driven sustainable growth remains the main trade policy objective. Saint Vincent and 
the Grenadines continues to collaborate actively with other OECS and CARICOM states in the 
formulation of trade and trade -related policies, and their implementation. Such regional institutions 
and mechanisms provide support to its limited human and technical resources. In general, 
regional -level synergies are also sought in conducting international trade negotiations.  
2.8.  Trade policy formulation is coordinated by the Ministry of Foreign Affairs and Foreign Trade, 
which has primary responsibility for WTO affairs and trade -related negotiations. The Ministry of 
Finance, Economic Planning and Information Te chnology, which defines tariff, fiscal, and investment 
policies, also holds a stake in trade policy formulation. Trade policy is also influenced by the Ministry 
of Agriculture, Forestry, Fisheries, Rural Transformation, Industry and Labour; the Ministry of  
Tourism, Civil Aviation, Sustainable Development and Culture; the Ministry of Legal Affairs; the 
Ministry of Health, Wellness and the Environment; and the Saint Vincent and the Grenadines Bureau 
of Standards. Consultations with the private sector continue  to take place on an ad hoc basis; 
according to the authorities, such consultations are held whenever an issue is deemed to concern 
the private sector.  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.9.  Saint Vincent and the Grenadines is an original member of the WTO.  In the WTO, Saint  Vincent 
and the Grenadines, like its OECS peers, is a member of the Small, Vulnerable Economies 
(SVEs) -NAMA group, a negotiating group comprising proponents of a proposal for flexibilities for 
SVEs in the NAMA negotiations. Saint Vincent and the Grenadines is also member of the ACP group, 
the G -90, the G -33, and the group of "W52" sponsors.16 
2.10.  During the rev iew period, Saint Vincent and the Grenadines submitted 32 notifications to the 
WTO, covering regional trade agreements; agriculture domestic support measures; agriculture 
export subsidies; its fiscal incentives programme; intellectual property rights legis lation; the import 
licensing regime; and implementation of the trade facilitation agreement (Table  2.1). Saint  Vincent 
and the Grenadines also submitted a number of addenda, corrigenda, and supplements, providing 
additional information to the notified meas ures. It appears that notifications in some areas are 
missing, in particular in the areas of quantitative restrictions, stat trading enterprises, anti -dumping 
and countervailing measures, TBT measures, and SPS measures.  
Table  2.1 Notifications to the WTO, 2014 -21 
Topic and description  Document symbol  Document date  
General Agreement on Tariffs and Trade  
Article  XXIV:7(a), Free Trade Areas 
(CARIFORUM -UK EPA)  S/C/N/1025/Add.1  
WT/REG420/N/1/Add.1  05/05/2021  
 S/C/N/1025  
WT/REG420/N/1  07/01/2021  
General Agreement on Trade and Services (GATS)  
Article  V:7(a), Regional Trade Agreement 
(CARIFORUM -UK EPA)  S/C/N/1025/Add.1  
WT/REG420/N/1/Add.1  05/05/2021  
 S/C/N/1025  
WT/REG420/N/1  07/01/2021  
Contacts and enquiry points notified 
(Articles  III:4 and IV:2 ) S/ENQ/78/Rev.18  01/02/2019  
Agriculture  
Export subsidy (DS:1) Calendar year 2012  G/AG/N/VCT/5  07/02/2014  
Domestic support (ES:1) Calendar year 2012  G/AG/N/VCT/6  07/02/2014  
Domestic support (ES:1) Calendar year 2012  G/AG/N/VCT/6/Corr.1  13/02/2015  
Export subsidy (ES:1) Calendar year 2013  G/AG/N/VCT/7  11/05/2015  
Domestic support (DS:1) Calendar year 2013  G/AG/N/VCT/8  11/05/2015  
Export subsidy (ES:1) Calendar year 2014  G/AG/N/VCT/9  19/09/2016  
Domestic support (DS:1) Calendar year 2014  G/AG/N/VCT/10  19/09/2016  
Domestic support (DS:1) Calendar year 2015  G/AG/N/VCT/11  26/04/2017  
Export subsidy (ES:1) Calendar year 2015  G/AG/N/VCT/12  26/04/2017  
Export subsidy (ES:1) Calendar year 2016  G/AG/N/VCT/13  22/03/2018  
Domestic support (DS:1) Calendar year 2016  G/AG/N/VCT/14  22/03/2018  
Domestic support (DS:1) Calendar year 2017  G/AG/N/VCT/15  12/03/2019  
Export subsidy (ES:1) Calendar year 2017 G/AG/N/VCT/16  12/03/2019  
Export subsidy (ES:1) Calendar year 2018  G/AG/N/VCT/17  23/04/2020  
Domestic support (DS:1) Calendar year 2018  G/AG/N/VCT/18  24/04/2020  
Domestic support (DS:1) Calendar year 2019  G/AG/N/VCT/19  15/07/2022  
Agreement on Subsidies and Countervailing Measures  
Notification and extension of the transition 
period for the elimination of export subsidies  G/SCM/N/275/VCT  20/08/2014  
Notification and extension of the transition 
period for the elimination of export subsidies  G/SCM/N/284/VCT and 
G/SCM/N/290/VCT  02/10/2015  
Notification and extension of the transition 
period for the elimination of export subsidies  G/SCM/N/299/VCT  19/01/2017  
Agreement on Trade Facilitation  
Notification of Category A commitments  G/PCTF/N/VCT/1  08/06/2015  
 
16 WTO, Groups in the Negotiations . Viewed at: 
http://www.wto.org/english/tratop_e/dda_e/negotiating_groups_e.htm . WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  Topic and description  Document symbol  Document date  
Notification of Category commitments  G/TFA/N/VCT/1  04/06/2018  
Notification implementation dates for 
Category C commitments  G/TFA/N/VCT /1/Add.1  07/08/2019  
Notifications on contact points for office 
responsible for coordinating and prioritizing 
trade facilitation -related assistance and 
support for capacity -building  G/TFA/N/VCT/2  19/02/2019  
Notifications on customs brokers  G/TFA/N/VCT/3  14/10/2019  
Agreement on TRIPS  
Notification of Laws and Regulation under 
Article  63.2 IP/N/1/VCT/2 and IP/N/1/VCT/C/2  13/10/2015  
Industrial Design Act  IP/N/1/VCT/3 and IP/N/1/VCT/D/2  12/10/2015  
Geographical Indications Act  IP/N/1/VCT/4 and IP/N/1/VCT/G/1  13/10/2015  
Layout -Designs on Integrated Circuits Act  IP/N/1/VCT/5 and IP/N/1/VCT/L/1  13/10/2015  
Patents Act  IP/N/1/VCT/6 and IP/N/1/VCT/P/1  13/10/2015  
Trade Marks Act  IP/N/1/VCT/7 and IP/N/1/VCT/T/3  13/10/2015  
Civil Procedure Rules 2000 IP/N/1/VCT/8 and IP/N/1/VCT/O/1  13/10/2015  
Criminal Procedure Code  IP/N/1/VCT/9 and IP/N/1/VCT/O/2  13/10/2015  
Agreement on Import licensing procedures   
Replies to questionnaire (Article  7.3) G/LIC/N/3/VCT/1  23/04/2015  
Transparency Mechanism for Regional Trade Agreements  
AAP.A25TM 31.1 (Article  25 of the TM80), 
Notification of changes affecting the 
implementation of a Regional Trade 
Agreement (CARICOM and Colombia)  WT/COMTD/RTA15/N/1/Add.148  20/03/2020  
AAP.A25TM 31.1 (Article  25 of the TM80), 
Notification of changes affecting the 
implementation of a Regional Trade 
Agreement (Colombia and CARICOM)  WT/COMTD/RTA15/N/1/Add.148/Suppl.1  14/02/2022  
AAP.A25TM 40 (Article  25 of the TM80), 
Notification of changes  affecting the 
implementation of a Regional Trade 
Agreement (Cuba and CARICOM)  WT/COMTD/RTA15/N/1/Add.156  20/03/2020  
AAP.A25TM 24 (Article  25 of the TM80), 
Notification of changes affecting the 
implementation of a Regional Trade 
Agreement (CARICOM and the Bolivarian 
Republic of Venezuela)  WT/COMTD/RTA15/N/1/Add.141  20/03/2020  
Source:  WTO Secretariat , based on notifications documents . 
2.11.  Saint Vincent and the Grenadines has not been involved in any case, as a complainant or 
defendant, before the Dispute Settlement Body; in the dispute European  Communities – Regime for 
the Importation, Sale and Distribution of Bananas , Saint Vincent and the  Grenadines joined as a 
third party.17 
2.3.2   Regional and p referential agreements  
2.12.  Saint Vincent and the Grenadines  has been a Member of the Organisation  of Eastern 
Caribbean States (OECS) since its creation in 1981. The Revised Treaty of Basseterre (RTB) 
Establ ishing the OECS  Economic Union was signed on 18  June 2010 in Saint Lucia. The RTB created 
a single financial and economic space within which goods, people , and capital move freely, and 
monetary and fiscal policies are harmonized. The RTB was ratified on 20  January  2011; it came into 
force the day after, when five of OECS  six members states had completed ratification.  
2.13.  As a founding member of both CARICOM and the OECS, Saint  Vincent and the Grenadines is 
a party to the FTAs signed by these regional blocks. Sa int Vincent and the Grenadines is also a 
member of the Association of Caribbean States (ACS).  
2.14.  Saint Vincent and the Grenadines, as part of CARIFORUM (a negotiating partnership involving 
CARICOM and the Dominican  Republic), signed an Economic Partnership A greement (EPA) with the 
 
17 WTO, Dispute S ettlement: DS27 European  Communities – Regime for the Importation, Sale and 
Distribution of Bananas . Viewed at: https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds27_e.htm .  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  European  Union  in 2008. The EPA, although in force, is still in the process of full implementation by 
Saint Vincent and the Grenadines and other OECS countries, requiring a number of legal and 
institutional changes.  
2.15.  The CARIFORUM -UK EPA was signed on 22  March  2019 and notified to the WTO on 
31 December  2020.18 Covering goods and services, the Agreement was provisionally applied on 
1 January  2021 in Saint Vincent and the Grenadines, although not in all signatory countries. The 
provisions of the Agreement and the negotiated schedule closely follow commitments of the already 
existing CARIFORUM -EU EPA.  
2.16.  Products originating in Saint Vincent and the Grenadines benefit from preferential access to 
the US and Canadian markets under the Caribbean Basin Initiative and the Caribbean -Canada Trade 
Agreement ( CARIBCAN ); they are also eligible for the GSP schem es of Australia, Canada, Japan, 
New Zealand, the Russian  Federation, Switzerland, and the United  States.  
2.4  Investment regime  
2.17.  By and large, overseas investment inflows are unrestricted and foreign investors receive 
national treatment, except for transactions  involving the holding of land. There are no restrictions 
on the repatriation of capital.  
2.18.  During the review period, the major change in the investment regime was the amendment of 
the International Business Companies (IBCs) Act and the International Trust Act; both amendments 
entered into force on 1  January  2019.19 The Income Tax Act was amended as well during the period 
under review. Effective 1  January  2020, Saint Vincent and the Grenadines moved to a system of 
territorial taxation, whereby income tax is levied only on income accrued directly or indirectly from 
sources within Saint Vincent and the Grenadines; tax exemptions previously accorded to IBCs and 
international trusts for their offshore operations were abolished. Under the new territorial taxation 
system, all resident entities must satisfy "economic substance" requirements and submit economic 
substance annual reports to the Inland Revenue Department for review and assessment; exemptions 
are given to entities that carry on certain specified geographi cally mobile activities (i.e. relevant 
activities) such as banking business, distribution and service centre business, finance and leasing 
business, fund management business, holding entity business, insurance business, intellectual 
property holding busine ss, and shipping business.  
2.19.  The corporate income tax rate was lowered from 32% to 30% on 1  January  2018; the 
corporate income tax for hotel operators was reduced by 1 percentage point to 29%.20 Lower 
corporate tax rates are applicable to manufacturing enterprises dependent on where t heir products 
are sold: a 30% tax rate is applied on income from sales to the domestic and OECS markets; 25% 
on income from exports to non -OECS CARICOM markets; and 15% on income from exports to other 
markets. The authorities indicate that an overhaul of t he investment regime, for instance, a draft 
Investment Bill, is under consideration.  
2.20.  Since its previous Review, Saint Vincent and the Grenadines has not entered into new double 
taxation treaties or investment  protection agreements. As of end -October 2022,  there were 22 tax 
information exchange agreements (TIEAs) in force. In 2016, Saint Vincent and the Grenadines 
signed an intergovernmental agreement in observance of the United  States' Foreign Account Tax 
Compliance Act (FACTA).21 In addition, Saint Vincen t and the Grenadines is a party of the OECD 
Multilateral Competent Authority Agreement for the Automatic Exchange of Financial Account 
Information under the Common Reporting Standards (CRS). Under both the FACTA and CRS 
regimes, financial institutions in S aint Vincent and the Grenadines are required to report financial 
 
18 WTO documents WT/REG420/N/1, 7  January  2021; and WT/REG420/N/1/Add.1, 5  May 2021.  
19 The amendments to both acts provide a transition period until 30  June 2021.  
20 Provisional Collection of Taxes Order , 2018 (SR&O (No.  5 of 2018)). Viewed at: 
http://asycudaw.Saint Vincent and the 
Grenadinescustoms.net/downloads/SRO_VAT_AND_VEHICLE%20SURCHARGE%20AMENDMENTS%202018.pdf .  
21 U.S. Department of Stat e, 2022 Investment Climate Statements : Saint Vincent and the Grenadines . 
Viewed at: https://www.state.gov/reports/2022 -investment -climate -statements/saint -vincent -and-the-
grenadines/ .  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
- 430 - 
  account information to the U.S. Inland Revenue Service annually on reportable accounts held by 
non-nationals.  
2.21.  Invest Saint Vincent and the Grenadines was established in August 2009 as the off icial 
investment agency.22 The agency's mandate is to attract FDI to Saint Vincent and the Grenadines 
directed mainly to seven specific sectors (tourism development,  agro-processing, renewable energy, 
light manufacturing, international financial services, information and telecommunication s 
technology, and creative industries (film, music, and fashion)). Its main mission is to: (i)  achieve 
sustainable economic development through investment promotion and export development; and 
(ii) be the nation's driver of  economic growth through investment promotion and export 
development.  
2.22.  Non-OECS/CARICOM nationals and alien -controlled companies23 must obtain a licence to hold 
land and land -linked mortgages. Applications for a landholding licence must be submitted through a 
local lawyer to the Prime Minister's Office .24 Landholding licences are granted for a specific property 
and do not require ren ewal or payment of annual fees. Approved licences are to be registered at the 
Land Registry for a fee that is linked to the transaction value of the plot being acquired.25 The 
purchaser and the vendor must each pay 5% stamp duty on the value of the propert y being 
transferred.  
2.23.  Foreign nationals (except for OECS nationals) need a work permit in order to conduct business 
or be gainfully employed in the country. Work permits are granted on a one -time basis by the Prime 
Minister's Office for not more than six mo nths; in the case that a work permit is valid for longer than 
six months , a resident permit is also required. The annual applicable fee for a work permit is XCD  960 
for CARICOM nationals, and XCD  2,400 for all other nationalities.  
 
 
22 The Agency is overseen by a cabinet appointed Board of Directors, selected from the public and 
private sectors . The Board is responsible for policy guidance, strategic planning , and the accountability of the 
Executive Director. From August 2009 until January 2016, the agency operated under the auspices of the 
Prime Minister's Office, and then was transferred to the Ministry of Economic Planning.  
23 A company is considered alien -controlled if at least half of its directors are unlicensed 
non-OECS/CARICOM nationals; at least half of its votes are exercisable by unlicensed non -OECS/CARICOM 
nationals; at least half of its shares are held by unlicensed non -OECS/CARICOM nationals; or at least half of 
the nominal value o f its outstanding debentures is held by unlicensed non -OECS/CARICOM nationals.  
24 A non -refundable fee of XCD  2,500 is payable to the Treasury upon filing the application.  
25 The registration fee is calculated as follows: XCD  10,000 for plots valued up to X CD 100,000; 
XCD 10,000 plus 6% of the value in excess of XCD  100,000 for plots in the XCD  100,001 -XCD 3 million range; 
and XCD  184,000 plus 4% of the value in excess of XCD  3 million for plots valued above XCD  3 million.  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  3  TRADE P OLICIES AND PRACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  The legislative and institutional framework for customs matters in Saint Vincent and the 
Grenadines has remained unchanged since the last Review in 2014. The Customs (Control and 
Management) Act 1999 (amended by Acts No.  4 and 33 of 2007) is the basic customs legislation.26 
The Customs and Excise Department, under the Ministry of Finance, is responsible for enforcing 
Customs laws; the Minist ry of Health as well as the Plant Protection and Quarantine Unit under the 
Ministry of Agriculture have regular personnel present on the border to enforce SPS  measures. The 
Customs (Control and Management) Act and its associated regulations and other relat ed statutory 
orders are available to the public on Customs' website.27 Customs publishes a Notice Bulletin on 
Customs policies and procedures, which is circulated to stakeholders for consultation. The 
Inter-ministerial Committee and the Trade Facilitation Committee are the bodies where consultations 
on Customs -related issues are held with stakeholders from governmental agencies and the private 
sectors, respectively.  
3.2.  Saint Vincent and the Grenadines ratified the WTO  Agreement on Trade Facilitation (TFA) on 
9 January  2017, and has submitted to the WTO its notifications on the measures under Categories  A, 
B, and C. About 54.6% of the TFA provisions have been implemented under Category A, while about 
8.4% were designated under Category B. Sixteen measures were n otified in Category C and require 
technical assistance.  
3.3.  Any natural or legal person may import or export goods to/from Saint Vincent and the 
Grenadines, as long as they complete the business registration formalities with the Commerce and 
Intellectual Prope rty Office (CIPO) and with the Inland Revenue Department. Importers must also 
register in the Customs computerized system and obtain an importer number before engaging in 
import business.  
3.4.  All importation, irrespective of it being commercial or non -commerc ial28, must be declared 
when entering the country.  For non -commercial imports, Customs may apply a simplified procedure, 
however, Customs officers have discretion to reinstate the normal procedure depending on the 
classification of the declared goods. The import documents required by Customs are the customs 
entry form (CARI COM Single Administrative Document/Simplified Customs Declaration), a 
commercial invoice, and the bill of lading/airway or shipping bill. Other documents such as an import 
licence or perm it, a certificate of origin, or a concession letter may be required if applicable.  
3.5.  An import declaration must be lodged electronically on the platform of ASYCUDA World within 
48 hours of the shipment arrival.29 A pre -arrival declaration is encouraged by th e authorities, 
allowing importers to submit the declaration up to six hours prior to the cargo arrival. Customs does 
not currently operate a Single Window for imports (nor for exports), though most governmental 
agencies involved with international trade ar e connected to ASYCUDA World.30 The authorities note 
that Customs usually takes one business day to process a declaration.  
3.6.  All imports are potentially subject to Customs inspection based on risk profiling. According to 
the authorities, risk profiling for imports is conducted through ASYCUDA World. Based on their risk 
profiles, goods may be cleared from Customs through one of t he four channels: the red channel for 
high-risk goods that require documentary verification and physical inspection; the yellow channel 
for medium -risk goods, requiring additional documentation, and possible further inspection; the 
 
26 The authorities indicate that a new Customs Bill in order to modernize the Customs legal framework is 
expected to be submitted to Parliament in 2023.  
27 Customs and Excise Department, Customs Legislation . Viewed at: http://asycudaw.Saint Vincent and 
the Grenadinescustoms.net/customs -legislation.php .  
28 Non-commercial imports include those of personal effects, or of small parcels by post. There is no 
value threshold in the legislation to define non -commercial imports.  
29 A paper -based declaration is accepted, but such declaration must be submitted to the Customs house 
at the point of entry.  
30 The authorities indicate that the Customs single window is part of the Government's Digital 
Transformation Plan.  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
- 432 - 
  green channel for goods deemed risk -free and that may be released immediately without document 
verification or inspection; and the blue channel for immediately released goods that are subject to 
post-clearance control.  
3.7.  Upon payment of import duties or after a duty guarantee is se cured31, imports will be delivered 
from Customs custody. For perishable goods, a pre -delivery system is in place to speed up the 
Customs clearance process. There is no provision for expedited  shipments in the Customs legislation; 
however, Customs offers a process for expedited release of barrels and small packages arriving in 
the country, especially during the peak season (e.g. Christmas).32 
3.8.  Resulting from a risk management review by Customs, the Gold Card programme33 that 
granted beneficiaries reduced Cust oms control was suspended in 2019. There is no authorized 
economic operator (AEO) programme in operation. The authorities indicate that a Trust ed Trader 
Programme is under consideration as part of the Customs legislation modernization.  
3.9.  Customs provides advance ruling only on tariff classification, for at least seven types of goods . 
There are no legal provisions on advance rulings on matters of classification, origin, or valuation.  
3.10.  The use of Customs brokers is voluntary. Customs brokers are sub ject to nationality 
requirements; they must be citizens of Saint  Vincent and the Grenadines or a CARICOM member 
state, and must be licensed by the Customs Comptroller.34 
3.11.  Saint Vincent and the Grenadines does not use pre -shipment inspection.  
3.12.  As set forth in  the Customs (Control and Management) Act, the transaction value, generally 
in terms of c.i.f. prices, is used as basis for customs valuation. When imports are declared as 
uninsured, the Customs and Excise Department augments the cost of freight and any ot her costs 
incurred by the importer by 1% to arrive at the c.i.f. value. In cases of doubt, Customs may require 
further information and may use other valuation methods prescribed in the WTO  Agreement on 
Customs Valuation. According to the authorities, c.i.f . prices transactions were accepted as the 
valuation method for around 85% -90% during the review period. The authorities further indicate 
that since the introduction of the risk profiling/management to the Customs system, via ASYCUDA 
World, the under -invoicing problem has been addressed.  
3.13.  There have been no changes to appeal procedures against Customs' decisions since the 
last Review. Traders that disagree with Customs' decisions concerning , inter alia , classification and 
duty rate/amounts may request recons ideration to the Customs Comptroller within three months 
from the duty payment date; aggrieved traders may appeal the Comptroller's 
decision/reconsideration to the Customs Appeal Commissioners within 30 days from receiving the 
Comptroller's notification. I n the case that a party is dissatisfied with a decision by the Commission, 
the dispute may be heard in the High Court for judicial remedies.  
3.1.2   Rules of origin  
3.14.  Saint Vincent and the Grenadines maintains preferential rules of origin for goods originating 
in the CARICOM member States; duty -free treatment is accorded only to goods shipped between 
member States that satisfy CARICOM origin rules. The CARICOM Treaty contains a derogation facility 
to the application of Common Market Rules of Origin for MDCs in CARICO M, known as the Safeguard 
Mechanism. Such derogations remain in place for imports of rice and coniferous wood for the 
manufacture of furniture.  
 
31 A pre -payment account with Customs may be set up to expedite the settlement of liabilities and 
refunds ; funds deposited in the account may also be used as guarantee for the release of goods pending 
proper processing of the customs declaration. The guarantee should be no less than 1.5 times the estimated 
duty obligation.  
32 Customs and Excise Department, Guideline for Clearing Barrels and Small Packages . Viewed at: 
http://asycudaw.Saint Vincent and the Grenadinescustoms.net/downloads/barrels -sml-pkgs.pdf .  
33 Customs and Excise Department, Customs Gold Card  – Memorandum of Understanding . Viewed at: 
http://asycudaw.Saint Vincent and t he Grenadinescustoms.net/downloads/GoldCardMOU.pdf .  
34 Customs and Excise Department, List of Brokers . Viewed at: http://asycudaw.Saint Vincent and the 
Grenadinescustoms.net/downl oads/list_of_brokers.pdf .  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
- 433 - 
  3.15.  The EPAs with the European  Union and with the United  Kingdom contain specific rules of 
origin.  
3.16.  Saint Vincent and  the Grenadines has not notified to the WTO its preferential rules of origin, 
or its use (or non -use) of non -preferential rules of origin.  
3.1.3   Tariffs  
3.1.3.1   MFN applied tariff  
3.17.  Saint Vincent and the Grenadines offers at least MFN treatment to all of its trading part ners. 
3.18.  With regard to the applied MFN tariff, Saint Vincent and the Grenadines applies the CARICOM 
Common External Tariff (CET), with exceptions as listed in Lists A, C , and D of the CET.35 The 
nomenclature of MFN tariff and preferential tariffs for 2020 ar e HS17. The 2022 MFN schedule 
contains a total of 6,456 lines at 8 -digit level, among which 8.6% of total lines are duty -free; some 
53% of total lines are rated 5% or below, and 19% of total lines are rated between 15% and 20%; 
and about 10% of total line bear rates higher than 20% (Chart  3.1). 
Chart  3.1 Frequency distribution of MFN tariff rates, 2022  
 
a The total number of lines is 6,456.  
Source:  WTO Secretariat calculations, based on the WTO IDB.  
3.19.  All tariff lines, except for 12 lines, are at are ad valorem rates. The authorities did not provide 
the ad valorem  equivalents (AVEs) for those non -ad valorem  tariff rates. There are no seasonal 
duties, nor tariff quotas in operation (Table  3.1). During th e period under review, applied MFN tariff 
rates remained largely unchanged; changes occurred mainly in reflection of the implementation of 
suspension of the CET for 9 tariff lines as provided by Article  164 of the Revised Treaty of 
Chaguaramas. The simple average MFN tariff in 2022 was 11.3%, slightly up from 10.9% in 2013. 
 
35 List A contains items on which suspension of the CET has been granted for an indefinite period subject 
to review, with the rates determined by member States; List C contains items in respect of which minimum 
rates have been agr eed, showing the actual rates to be applied by individual member States; List D contains 
two parts – Part I lists products of tariff headings ex 73.21, ex 84.18, and ex 85.16, for which suspension of 
the CET has been granted to Belize for an unspecified pe riod; and Part II contains products of tariff headings 
ex 30.03 and ex 30.04 (medicaments), for which suspension of the CET has been granted to Saint Kitts and 
Nevis, other OECS member States, and Belize.  
(8.6%)(53.1%)
(4.3%)(5.3%)(19.0%)
(1.3%)(8.2%)
(0.2%)
0102030405060708090100
05001,0001,5002,0002,5003,0003,5004,000
Duty free >0-5 >5-10 >10-15 >15-20 >20-25 >25 Specific dutyNumber of lines (% of total)
Cumulative %Chart 3.1
Frequency distribution of MFN tariff rates, 2020
(Number of tariff linesa) (%)
a   The total number of lines is 6,456.
Source:   WTO Secretariat calculations, based on data from the WTO IDB database.WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
- 434 - 
  The simple average tariff for WTO -defined agricultural goods was 19.1%, while the average for 
non-agricultural goods was 9.7%.  
Table  3.1 Structure of the tariff schedule, 2013 and 2022  
 
2013  2022  
Total number of tariff lines  6,333  6,456  
Non-ad valorem  tariffs (% of all tariff lines)  0.2 0.2 
Non-ad valorem  with no AVEs (% of all tariff lines)  0.2 0.2 
Lines subject to tariff quotas (% of all tariff lines)  0.0 0.0 
Duty-free tariff lines (% of all tariff lines)  8.8 8.6 
Dutiable lines tariff average rate (%)  12.0 12.4 
Simple average tariff (%)  10.9 11.3 
WTO agriculture  17.6 19.1 
WTO non -agriculture (incl. petroleum)  9.6 9.7 
Domestic tariff "peaks" (% of all tariff lines)a 6.6 7.1 
International tariff "peaks" (% of all tariff lines)b 27.7 28.6 
Overall standard deviation  10.3 11.2 
Nuisance applied rates (% of tariff lines)c 0.0 0.0 
Bound tariff lines (% of all tariff lines)  99.7 99.7 
Note:  Non-ad valorem  duty applies to 13 lines.  
a Domestic tariff peaks are defined as whose exceeding three times the overall average applied rate.  
b International tariff peaks are defined as those exceeding 15%.  
c Nuisance rates are greater than 0% but inferior or equal to 2%.  
Source:  WTO Secretariat calculations, based on data from the WTO IDB.  
3.20.  The highest applied tariff rate, at 100% , is applicable to agricultural products 
(agro -processing, durum wheat, and beverages). The highest a pplied rate for non -agricultural goods 
is 40%, applicable to fish and fish products; minerals, machineries, and transport equipment are 
subject to tariff rates of up to 35% (Table  3.2). 
Table  3.2 Summary analy sis of the MFN tariff, 2022  
Description  MFN Bound range 
(%) No. of 
lines  Average 
(%) Range 
(%) Coefficient of 
variation  
Total  6,456  11.3 0-100 1.0 50-250 
HS 01 -24 1,218  21.1 0-100 0.8 100-250 
HS 25 -97 5,238  9.0 0-35 0.8 50-206 
By WTO category       
WTO Agriculture  1,119  19.1 0-100 0.9 50-250 
 - Animals and products thereof  155 15.4 0-40 1.0 100-130 
 - Dairy products  41 5.0 0-20 1.1 100 
 - Fruit, vegetables and plants  307 23.4 0-40 0.7 100-250 
 - Coffee and tea  28 17.7 0-40 0.8 100-130 
 - Cereals and preparations  129 17.4 0-100 0.9 100-160 
 - Oil seeds, fats and oils and 
their products  95 16.8 0-40 1.0 100-175 
 - Sugars and confectionery  21 22.4 5-40 0.7 100-130 
 - Beverages, spirits and tobacco  184 29.7 5-100 0.7 100-182 
 - Cotton  6 5.0 5 0.0 100-100 
 - Other agricultural products 
n.e.s.  153 9.3 0-40 1.3 50-182 
WTO Non -agriculture (incl. 
petroleum)  5,337  9.7 0-40 0.9 50-206 
 - WTO Non -agriculture (excl. 
petroleum)  5,311  9.7 0-40 0.9 50-206 
 - - Fish and fishery products  177 26.7 0-40 0.6 100-130 
 - - Minerals and metals  1,126  7.6 0-30 0.9 50-153 
 - - Chemicals and photographic 
supplies  1,025  7.1 0-30 0.8 50-103.5  
 - - Wood, pulp, paper and 
furniture  333 10.2 0-25 0.7 50-170 WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  Description  MFN Bound range 
(%) No. of 
lines  Average 
(%) Range 
(%) Coefficient of 
variation  
 - - Textiles  638 7.7 0-30 0.7 50-113 
 - - Clothing  280 19.9 5-20 0.1 50-93 
 - - Leather, rubber, footwear and 
travel goods  179 10.2 0-25 0.7 50-103 
 - - Non-electric machinery  590 6.2 0-35 0.9 50-100 
 - - Electric machinery  289 11.1 0-35 0.7 50-163 
 - - Transport equipment  186 10.1 0-35 1.0 50-143 
 - - Non-agriculture articles n.e.s.  488 13.4 0-35 0.7 50-206 
 - Petroleum  26 8.1 0-35 0.9 50-120 
By HS section       
 01 Live animals & prod.  356 19.8 0-40 0.9 100-130 
 02 Veg etable products  386 21.4 0-100 0.8 100-250 
 03 Fats & oils  53 25.7 5-40 0.7 100-175 
 04 Prepared food , etc. 423 21.2 0-100 0.8 100-182 
 05 Minerals  187 6.5 0-35 0.7 50-120 
 06 Chemical & prod.  950 7.0 0-30 0.8 50-105 
 07 Plastics & rubber  250 7.6 0-25 0.9 50-103.5  
 08 Hides & skins  80 10.5 5-20 0.7 50-100 
 09 Wood & articles  134 10.8 0-20 0.5 50-103 
 10 Pulp, paper , etc. 176 8.5 0-25 0.8 50-153 
 11 Textile & articles  905 11.1 0-20 0.7 50-100 
 12 Footwear, headgear  60 16.1 0-20 0.4 50 
 13 Articles of stone  185 10.1 0-25 0.7 50-153 
 14 Precious stones, etc.  74 16.7 0-25 0.6 50-113 
 15 Base metals & prod.  712 6.8 0-20 0.8 50-93 
 16 Machinery  899 8.0 0-35 0.9 50-163 
 17 Transport equipment  197 9.9 0-35 1.0 50-143 
 18 Precision equipment  229 11.3 0-30 0.8 50-113 
 19 Arms and ammunition  24 24.2 0-35 0.5 50-123 
 20 Miscellaneous manufactures  167 15.0 0-20 0.4 50-206 
 21 Works of art, etc.  9 20.0 20 0.0 50 
Note:  Bound rates are provided in the HS12  Nomenclature . 
Source:  WTO Secretariat calculations, based on data from the WTO IDB.  
3.21.  In general terms, tariff rates applicable to food are below CET rates while rates for 
manufactured goods are higher. Saint Vincent and the Grenadines applies higher rates than the CET 
on product s such as alcoholic beverages (including beer, wine, and spirits); tobacco products 
(including cigars and cigarettes); petrochemical products (e.g. fuels, lubricants); articles related to 
motor vehicles repairs (e.g.  windscreens, breaks); and luxury goods (e.g. precious stones, 
jewellery).  
3.1.3.2   Tariff bindings  
3.22.  Almost all (99.7%) tariff lines are bound. For WTO -defined agricultural products, Saint  Vincent 
and the Grenadines bound its tariffs at rates between 50% and 250%, with about three quarters of 
lines at 50% . The highest bound tariff rate (250%) is on fruits; rates for manufactured goods are 
bound at 50% and above.  
3.1.3.3   Tariff preferences and concessions  
3.23.  Duty-free access is granted to imports from other CARICOM countries, provided they meet 
CARICOM rules of origin . Exceptions include articles subject to licensing under Article  164 of the 
revised CARICOM Treaty (see below). Under the CARIFORUM -EU EPA, almost 18% of tariff lines 
were duty -free as of 2020, leaving 9.6% as the average tariff rate for goods originating from the 
European  Union , compared to 11.6% of the average MFN rate.  
3.24.  Under Article  164 of the Revised Treaty of Chaguaramas, CARICOM less -developed countries, 
among which the OECS -WTO Members, may request the temporary suspension of Community origin 
treatme nt for certain products as a measure to promote the development of an industry, upon 
consent by the Council for Trade and Economic Development (COTED ). On 18  August  2015, 
Saint Vincent and the Grenadines suspended the application of the CARICOM CET on nine  tariff lines WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  until 17  August  2025, covering aerated and alcoholic beverages. This temporary suspension of the 
CET resulted in an increase in applied MFN rates to 70% for such products imported from "more 
developed CARICOM countries", and to 100% for impor ts from elsewhere.36  
3.25.  As provided by the Fiscal Incentives Act, imports of equipment, spare parts, raw materials , 
or components for "approved enterprises" under the Act are exempted from import duties.37 The 
authorities estimate that forgone  duty revenue due to the concessions by the Fiscal Incentives Act 
during the period under review totalled XCD  20.1 million, acco unting for 56% of total forgone  tariff 
revenue over the same period. Exemption or reduction of import duties may also be granted by the 
Cabinet, on public interest grounds.38 For example, on public interest grounds, various sectoral 
support programmes enjo y tariff reductions or exemptions. These include the Farmers Incentives 
Programme (75% reduction of import duties for inputs, material , or equipment), the Tour Operators 
Incentives Programme (up to 90% reduction), the Manufacturing and Agro -processing Prog ramme 
(100% exemption), and the Restaurants and Bars and Bakery Programme (50% reduction). All tariff 
concessions are valid for one year.  
3.1.4   Other charges on imports  
3.26.  A Customs Service Charge (CSC) is collected on imports, including goods originating from 
CARICOM countries.39 Effective 4  February  2015, the CSC rate was increased to 5% of the c.i.f. 
value40, compared to 4% before. In the wake of the COVID -19 pandemic, the CSC rate was raised 
again by 1  percentage point to 6%, effective from June 2021. Saint Vin cent and the Grenadines has 
not included other duties and charges applied on imports in its WTO tariff schedule of bindings.  
3.27.  Used motor vehicles that are four years or older are subject to a Vehicle Surcharge. On 
1 May 2018, the Surcharge was increase by at least XCD  1,000.41  
3.28.  Beverages imported in non -returnable bottles or cans are subject to a bottle deposit levy of 
XCD 0.50 per bottle or can.42 The deposit is refundable to traders upon presentation of proof that 
the bottles or cans have been  exported or destroyed.  
3.29.  VAT and excise tax are also collected on imports at the border. The authorities maintain that 
taxes are equally applied to domestically produced goods and imports. Both VAT and the excise tax 
are levied on the value of goods43; for imports, they are based on the c.i.f. value plus custom duties, 
other taxes, and the CSC. 
3.30.  In May 2017, the standard VAT rate was increased by 1 percentage point to 16% for most 
goods and services. A reduced rate of 11% is applied to hotel and holiday acco mmodation. VAT on 
some supplies is either zero -rated or exempted, as listed on the Third and the Fourth Schedules of 
the VAT Act. Goods used to produce exempted supplies are also exempted from VAT. Zero -rated 
VAT is applicable to, inter alia, fuels (gasoli ne, kerosene, diesel, and LPG), certain agricultural inputs 
(e.g. ventilated boxes, packing film), books and newspapers, certain computer hardware, invalid 
carriages, and orthopaedic appliances. VAT exemption is granted on supplies of medicaments and 
contraceptives, printed matters, unprocessed agricultural products, baking powder and bakery 
products, toilet paper, sanitary towels and tampons, napkins for babies, and undergarments.  
 
36 Customs Duties (Amendment) Act 2015. Viewed at: http://asycudaw.Saint Vincent and the 
Grenadinescustoms.net/downloads/Article_164.pdf .  
37 Fiscal Incentives  Act, Article  7. Viewed at: http://asycudaw.Saint Vincent and the 
Grenadinescustoms.net/downloads/fiscal -incentives -act.pdf .  
38 Duties and Taxes (Exemption in the Public Interest) Act. Viewed at: http://asycudaw.Saint Vincent 
and the Grenadinescustoms.net/downloads/act -duties -taxes -exemption.pdf .  
39 Statutory exemptions for imports of non -food items have been granted to two companies that operate 
resorts (i.e. the Mustique Company and Canouan Development Company).  
40 Provisional Collection of Taxes Order 2015 (SR&O (No.  3 of 2015)).  
41 Provisional Collection of Taxes Order 2018 (SR&O (No.  5 of 2018)). Viewed at: http://asycudaw.Saint 
Vincent and the 
Grenadinescustoms.net/downloads/SRO_VAT_AND_VEHICLE%20SURCHARGE%20AMENDMENTS%202018.pdf .  
42 Environmental Levy Act , 1991.  
43 The excise tax on alcoholic beverages  and fuels are at specific rates, while ad valorem  rates are 
applied to other excisable goods.  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  3.31.  During the review period, some products that were previously zero -rated were  made subject 
to VAT at the standard rate. These products include white rice, sugar (brown sugar and cane sugar), 
whole chicken and chicken parts, turkey legs, and margarine. Also, some products previously 
exempted from VAT are now subject to it. Such is t he case for pigeon peas, lentils, cooking oil 
(except coconut oil), shortening, salt, and yeast, which are no longer exempted from VAT, but 
subject to the standard rate.44 VAT on biodegradable containers and on phosphate -free detergents 
became zero -rated i n 2017 and 2018, respectively.45 
3.32.  Products subject to excise tax include alcoholic beverages, tobacco products, fuels, motor 
vehicles, used tyres, and incandescent bulbs.46 Non-alcoholic beverages, ethyl alcohol and other 
spirits (HS heading 220720), aromat ic bitters, lubricating oils and greases, new pneumatic tyres, 
non-incandescent bulbs, and special purpose motor vehicle including tractors are exempted.47 
3.1.5   Import prohibitions, restrictions, and licensing  
3.1.5.1   Import prohibitions  
3.33.  Import prohibitions are impleme nted on grounds of public safety and moral s, human life and 
protection, environment protection, and compliance with international obligations. In accordance 
with the Customs (Control and Management) Act, imports of products listed in Part I of Third 
Schedu le are prohibited. The prohibition list covers products including opium or other narcotic drugs, 
firearms or ammunitions, counterfeit coins, indecent or obscene prints, and foods that are unfit for 
human consumption.  
3.34.  The Import and Export (Control) Regula tions, 2008 prohibits importation of jet skis, toy guns, 
and military style camouflage material or uniform s.48 
3.35.  Effective 27  April 2017, the importation of expanded polystyrene food containers (such as 
disposable plastic plates, spoons, forks, bowls, cups; Styrofoam food boxes, plates, bowls, cups, 
and egg boxes) is prohibited.49 Also, effective on 27  April 2018, motor vehicles of 12 years or more 
since its manufacture date are no longer allowed to be imported.50  
3.36.  Saint Vincent and the Grenadines has not notified to the WTO any quantitative restriction 
measure.  
3.1.5.2   Import restriction  
3.37.  Importation of goods listed in Part II of Third Schedule of the Customs (Control and 
Management) Act is not allowed, unless importers acquire prior permits from the relevant 
authorities.  
3.38.  Import restrictions are applied on goods that have safety concerns to the public (e.g. arms 
and ammunition, explosives, tear gas, cannabis sativa or other narcotic substances, left -hand-drive 
vehicles, and chainsaws), endangered species of animal s or plants (CITES -protected items), 
alcoholic beverages, and tobacco products (including exacts and essences).  
3.39.  The importation of products subject to sanitary and phytosanitary (SPS) measures, such as 
animals and animal products, as well as plants and pl ant products, is also restricted. A permit by 
 
44 Provisional Collection of Taxes Order , 2016 (SR&O  (No. 2 of 2016)), and Provisional Collection of 
Taxes (Amendment) Order , 2016 (SR&O (No.  7 of 2016)). These measures were confirmed by Finance Act , 
2016 (No.  9 of 2016)  
45 See the VAT (Amendment) Act , 2017 (No.  9 of 2017) and the Provisional Collection of Taxes Order , 
2018 (SR&O (No.  5 of 2018)).  
46 Excise Tax Act , First  Schedule . 
47 Excise Tax Act , Second  Schedule . 
48 Except for imports for police - or military -personnel use.  
49 Environmental Health (Expanded Polystyrene Ban) Regulation , 2017 (SR&O (No.  21 of 2 017)). Viewed 
at: http://asycudaw.Saint Vincent and the Grenadinescustoms.net/downloads/polystreneACT.pdf .  
50 Customs (Control and Management) (Amendment of Schedule) Order , 2018 (S R&O No.  8 of 2018)). 
Viewed at: http://asycudaw.Saint Vincent and the Grenadinescustoms.net/downloads/Vehicle_Prohibition.pdf .  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  the Ministry of Agriculture, Forestry and Fisheries is a prerequisite for applying for an import licence 
for such products from the Ministry of Trade (Section  3.1.5.3).  
3.1.5.3   Import licensing  
3.40.  The import licensing reg ime is set out in the Import and Export (Control) Regulations , 2008.51 
Certain goods are subject to import licensing requirements dependent on their country of origin. 
Import licensing requirements have two layers (Box 3.1). First, a licence is required fo r the 
importation of 18 goods listed in Schedule I of the Regulations if the goods originate from countries 
outside the OECS and Belize; second, a licence is needed for the importation of 58 products listed 
in Schedule 2 when such products do not originate  in other CARICOM member states. Half of the 
Products on Schedule 1 are agro -processed goods , while products on Schedule 2 include agricultural 
products and manufactured consumer goods.  
Box 3.1 Import licensing requirements, 2022  
Goods originating outside the OECS and Belize 
Curry powder (HS  0910.99.30); wheat flour (HS  1101.00); margarine (HS  1517.10.00); shortening 
(HS 1517.90.10); pasta products (HS  1902); aerated beverages (HS  2202.10.10); malt (HS 2202.90.20); 
beer (HS  2203.00.10); stout (HS  2203.00.20); oxygen (HS  2804.40.00); carbon dioxide (HS  2811.21.00); 
acetylene (HS  2901.00.20); candles (HS  3406.00); toilet paper (HS  4818.10.00); paper bags 
(HS 4819.30.00 -4819.40.00)a; solar water heaters  (HS 8419.19.00)a; chairs and other seats 
(HS 9401.61.00); other furniture of wood and upholstered fabric (HS  9403)a. 
Goods originating outside CARICOM  
Live poultry (HS  0105); meat, fresh, chilled or frozen (HS  0201-0204); edible offal (HS  0206); meat an d 
edible offal (except liver) of fowl (HS  0207); other meat and edible offal (HS  0208); fish, frozen (HS  0303); 
salmon, trout and other fish except codfish, mackerel, herring, hake, saithe, haddock and pollock dried, salted 
or in brine (HS  0305)a; milk and  cream not concentrated (HS  0401); natural honey (HS  0409.00.00); parts 
of trees and other plants suitable for use as Christmas trees (HS  0604)a; tomatoes (HS  0702.00.00); onions 
(HS 0703.10.10); cabbage (HS  0704.90.10); carrots (HS  0706.10.10); sweet pepp er (HS  0709.60.10);okra 
(HS 0709.90.20); pumpkin (HS  0709.90.30); other vegetables (HS  0709.90.90); dried vegetables broken or 
in powder (HS  0712); coconut, Brazil nuts and cashew nuts fresh or dried (HS  0801); bananas, plantains fresh 
or dried (HS  0803); pineapples, avocados, guavas, mangoes and mangosteens fresh or dried (HS  0804)a; 
peppers dried, crushed or ground (HS  0904); cinnamon (HS  0906)a; cloves (HS  0907.00.00); rice (HS  1006); 
starches (HS  1108); groundnuts, shelled or unshelled (HS  1202)a; edibl e vegetable oils (HS  1507-1515); 
sausages and similar products of meat, meat offal or animal blood (HS  1601.00); beet and cane sugar and 
chemically pure sucrose in solid form (HS  1701); cheezees and corn curls (HS  1904)a; bread, pastries, cakes, 
etc. (HS  1905); jams, fruit jellies, marmalade (HS  2007); fruit and vegetables juices (HS  2009); ice cream 
(HS 2105.00.10); water and other non -alcoholic beverages (HS  2202); over proof rum (HS  2208.40.90); 
paints and varnishes (HS  3208-3210); shampoos (HS  3305.10.0 0); hair conditioners (HS  3305.90.00)a; 
deodorant (HS  3307.20.00); household soaps (HS  3401.19.10); medicated soaps (HS  3401.11.10); toilet 
soaps (HS  3401.11.20); plastic tubing for the banana industry (HS  CH 39)a; PVC pipes (HS  3917.23.00)a; 
poly foam (HS  3920-3921)a; plastic bags (HS  3923.20.00)a; rethreaded and remolded tyres (HS  4012)a; 
wooden doors (HS  4418.20.00); grass mats (HS  4601)a; corrugated cartons (HS  4819.10.00)a; exercise 
books (HS  4820.20.00); carpets, carpeting, rugs and mats of vegetable plaiting materials (HS  5720)a; T-shirts 
(HS 6109)a; bed linens (HS  6302)a; mattresses and mattress supports (HS  9404)a. 
a Applies only to the named goods, not the general class of goods identified by that tariff heading.  
Source:  Import and Export (Control) Regulations No.  55 of 2008.  
3.41.  According to the authorities, the import licensing regime is automatic and is maintained 
mainly for statistical purposes. All import licences are administered by the Ministry responsible for 
trade; a prior permit from the Ministry of Agriculture, Forestry and Fisheries is required for all meat 
and fishery products52, and a permit from the Saint Vincent and the Grenadines Bureau of Standards 
for beers, stouts , and malts is a prerequisite for applying for an import licenc e from the Ministry of 
Trade. Import licences stipulating quantitative restrictions continue to be required for some imports, 
including beer and malt, from more developed CARICOM countries and third countries. The 
authorities note that this licensing requi rement is in line with the provisions of Article  164 of the 
Revised Treaty of Chaguaramas.  
 
51 Import and Export (Control) Regulations , 2008. Viewed at: http://asycudaw.Saint Vincent and the 
Grenadinescustoms.net/downloads/act -import -export -2008.pdf .  
52 WTO document G/LIC/N/3/VCT/1, 23  April 2015.  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  3.42.  An import licence is valid for three months. Licences are not transferable.  
3.1.6   Contingency measures  
3.43.  Saint Vincent and the Grenadines has not submitted to the WTO any n otifications regarding 
anti-dumping, countervailing, and safeguards measures or and the relevant legislation.  
3.44.  The legislation on trade remedy measures is the Customs Duties (Dumping and Subsidies) 
Act No.  21 of 1958, as amended by Statutory Rules and Order s No.  38 of 1980. According to the 
authorities, no anti -dumping or countervailing actions were taken during the review period.  
3.45.  On a regional level, the Revised Treaty of Chaguaramas specifies that CARICOM members 
should harmonize their laws and administrat ive practices with respect to anti -dumping and 
countervailing measures.  
3.2  Measures directly affecting exports  
3.2.1   Export procedures, taxes, and levies  
3.46.  In general, procedures applied to exports are similar to those applied to imports. Exporters 
must obtain a tax  registration number from the Inland Revenue Department and an exporter number 
from Customs. Pre -departure declarations for exports must be submitted to Customs in order to 
request inspection. After processing, Customs issues export approvals to exporters.  All shipments 
are inspected at the port of exit. The authorities indicate that inspections are usually done on the 
grounds  of suspicions of illicit trade and VAT fraud.  
3.47.  Pre-shipment inspection of exports is not generally required. All agricultural exports are 
inspected by the Ministry of Agriculture prior to the delivery of a phytosanitary certificate, which is 
required for export clearance.  
3.2.2   Export taxes, charges , and levies  
3.48.  Saint Vincent and the Grenadines does not charge any taxes or levies on exports.  
3.49.  VAT on exports is zero -rated, and exports are exempted from any internal taxes.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.50.  As listed in Part IV of Schedule I II of the Customs Act 2015, exports of narcotic and 
psychotropic substance; ginger and dry coconuts; bananas; copper; and endangered species of 
animals, and plants (including live or dead, or their products/derivatives) are restricted, unless the 
exporters  obtain a licence/permit from the relevant authorities.  
3.51.  As set out in the Import and Export (Control) Regulations , 2008, exports of lobsters (live, 
fresh, chilled, frozen, prepared or preserved) and conch (fresh or chilled) require an export licence 
from t he Ministry responsible for trade. Prior to applying for a licence, exporters must obtain a permit 
from the Fisheries Division of the Ministry of Agriculture, Forestry, Fisheries, Rural Transformation, 
Industry and Labour. The authorities maintain such req uirements on the grounds  of wildlife and 
environmental protection.  
3.2.4   Export promotion and assistance  
3.52.  As part of its responsibilities, Invest Saint Vincent and the Grenadines acts as an export 
development agency. During the review period, the export promotion  activities of Invest 
Saint Vincent and the Grenadines were limited to funding local companies' participation in trade fairs 
and organizing training events; these activities were mainly funded by overseas donors.  
3.53.  Saint Vincent and the Grenadines exporters have access to the ECCB export credit guarantee 
scheme, which may cover up to 80% of political and commercial risks. Export support may also be 
provided by the OECS Export Development Unit (EDU).  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  3.54.  Although the relevant legislation dates from 199953, there a re still no free zones in operation 
in Saint  Vincent and the Grenadines.  
3.3  Measures affecting production and trade  
3.3.1   Incentives  
3.55.  Under the Fiscal Incentives Act54, Saint Vincent and the Grenadines offers a corporate income 
tax holiday to manufacturing enterpris es for up to 15 years, depending on their local value -added 
performance or their export performance (Table  3.3).  
Table  3.3 Category of tax holiday beneficiaries under the Fiscal Incentives  Act 
Enterprises  Eligible criteria  Tax holiday length  
Group  I Local value added >= 50%  15 years  
Group II  25%<= Local value added < 50%  12 years  
Group III  10%<= Local value added < 25%  10 years  
Enclave  Export 100%  15 years  
Capital intensive  Investment >= USD 25 million  15 years  
Source:  Information provided by the authorities.  
3.56.  For export enterprises, income tax relief may be accorded when their tax holidays elapsed. 
Tax relief is in the form of tax credit, and contingent on the enterprises' export profits.55 If a firm 
generates more than 61% of its profit from exports, up to 50% of its income tax liability is relieved 
(Table  3.4). 
Table  3.4 Tax relief for exporting enterprises , 2022  
Export profits criteria  Maxi mum percentage of tax relief  
10% or more but less than 21%  25% 
21% or more but less than 41%  35% 
41% or more but less than 61%  45% 
61% or more  50% 
Note:  Export profit criterion is expressed as a percentage of the entire profit of the enterprise.  
Source:  WTO document G/SCM/N/299/VCT, 19  January  2017.  
3.57.  Import duties on raw materials, plant, and equipment imported are exempted for 
manufacturing and agro -processing enterprises, under the same conditions as those set out in the 
Fiscal Incentives Act. In the case of agro -processing producers, import duty exe mptions granted in 
accordance with the Public Interest Act (No.  6 of 1980). These import duty concessions are valid for 
one year.  
3.58.  In its latest notification to the WTO's Committee on Subsidies and Countervailing Measures, 
Saint Vincent and the Grenadines i ndicated that it had taken action taken to inform beneficiaries 
that said export subsidies would not be provided after 2016. It also notified the WTO that review of 
existing legislation was underway with a view of aligning the Act with Saint Vincent and th e 
Grenadines' international obligations.56 As of November 2022, however, new legislation had not yet 
put in place, and legal references to export performance -related incentives have not yet been 
removed. In this respect, the authorities note that the reque st for amending the Fiscal Incentives 
Act had been submitted to the Attorney General's Chamber; the authorities further note that revision 
of the incentives regime was expected to be completed by 2024 due to the slow legislative process.  
 
53 Export Free  Zones Act , No. 15 of 1999.  
54 Fiscal Incentives Act , No. 5 of 1982, as amended by Act No.  20 of 1987 and Act No.  16 of 1991.  
55 If the profits are generated from exporting to Guyana, Jamaica, and Trinidad and Tobago, the tax 
relief period is only five years  immediately following the expiration of the tax holiday period.  
56 WTO document G/SCM/N/299/VCT, 19  January  2017.  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  3.3.2   Technical regulati ons and standards  
3.59.  During the review period, the institutional framework for technical regulations remained 
unchanged. The basic legislation is the Standards Act (No.  70 of 1992, amended by Act No.  28 of 
2001). The Saint Vincent and the Grenadines Bureau of  Standards (SVGBS) is the national standards 
body, responsible for developing standards and coordinating inputs from stakeholders during the 
process.57 The SVGBS is the national enquiry point and notification authority under the 
WTO Agreement on Technical Barriers to Trade (TBT). The SVGBS is a member of the International 
Organization for Standardization (ISO), the Pan American Standards Commission (COPANT), the 
CARICOM Regional Organization for Standards and Quality (CROSQ), the Commonwealth Standards 
Network (CSN), and the Inter -American Metrology System (CARIMET/SIM). It is also the national 
contact point for the Codex Alimentarius Commission.  
3.60.  As of end -September 2022, there were 104 national standards in Saint  Vincent and the 
Grenadines, of which 6 had b ecome technical regulations  and were in force (Table  3.5). During the 
review period, Saint Vincent and the Grenadines did not make any notification to the WTO on any 
TBT matters.  
Table  3.5 Technical regulatio ns, 2022  
Standard No.  Title of standards  
Saint Vincent and the Grenadines National Standard 
NS 1: PART 1: 2000  Requirements for Labelling: General Principles  
Saint Vincent and the Grenadines NS 1: PART 2: 
2000 Requirements for Labelling: Prepackaged Goods  
Saint Vincent and the Grenadines NS 1: PART 3: 
2010 (Rev)  Requirements for Labelling: Prepackaged Foods  
Saint Vincent and the Grenadines NS 1: PART 4: 
2001 Requirements for Labelling: Domestic Electrical 
Appliances  
Saint Vincent and the Grenadines NS 1: PART 5: 
2002 Requirements for the Labelling of Retail Packages of 
Cigarettes  
Saint Vincent and the Grenadines NS 2: 2001  Requirements for the Labelling of Brewery Products  
Source:  Information provided by the authorities.  
3.61.  Saint Vincent and the Grenadines standards are formulated by a SVGBS technical committee, 
which coordinates inputs from stakeholders; where applicable, they replicate or are based on 
regional and international stand ards. Once a "committee draft" is finalized, it will be published on 
the SVGBS'  website for public consultation and comments for a period of three months. If comments 
are received, the draft is sent back to the technical committee for review; the draft is then forwarded 
to the National Standards Council for approval and published in the Government Gazette. The 
authorities indicate that standards are normally reviewed every five years. They note that, as 
Saint Vincent and the Grenadines national standards ar e generally formulated on the basis of 
international standards, over 75% of national standards are aligned with international standards.  
3.62.  At the CARICOM level, the CARICOM Regional Organization for Standards and Quality 
(CROSQ) is mandated to establish and harmonize standards within the CARICOM.58 These standards 
and technical regulations are drafted by special committees within the CROSQ. Participation in 
committee work is open to all interested parties. Standards and technical regulations adopted by 
the CR OSQ59 also require approval from CARICOM's Council for Trade and Economic Development 
(COTED). CARICOM countries must transpose community standards and technical regulations into 
national standards and regulations through domestic legal procedures. As of e nd-October 2022, 
there were 23 national standards adopted in Saint Vincent and the Grenadines from CROSQ 
specifications.  
3.63.  The authority to designate a standard mandatory (i.e. a technical regulation) is vested in the 
Minister in charge of the SVGBS; typical ly, decisions to that effect are taken in consultation with 
 
57 In addition, the SVGBS  is responsible for enforcing the Weights and Measures Act (N o. 16 of 2003). 
This legislation gives the SVGBS responsibility for regulating all weighing and measuring devices used for trade 
in Saint Vincent and the Grenadines.  
58 Detailed functions of CROSQ  can be found at https://www.crosq.org/ .  
59 Adoption is decided by the Council of CROSQ, comprising the executive heads of national standards 
bodies of CARICOM countries.  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  other relevant ministries. According to the authorities, the primary purpose of technical regulations 
is to ensure health and safety protection, as well as the prevention of fraud or deception, an d quality 
maintenance. Notices of all technical regulations and standards are published in the Government 
Gazette . 
3.64.  Under the recently implemented Consumer Protection Act , 2020, which entered into force on 
1 September  2022, the SVGBS shares responsibility w ith other agencies for consumer safety. The 
SVGBS exercises this responsibility by enforcing all applicable technical regulations.  
3.65.  All products subject to technical regulations require conformity assessment. According to the 
authorities, imported and dome stically produced goods are assessed under the same terms and 
conditions. Conformity certificates must be issued by an SVGBS -recognized certifying body, 
otherwise samples are taken for examination by the SVGBS . The producer's declaration of conformity 
is generally accepted for the purposes  of importation into the country, while inspections at the point 
of entry are carried out on notice of suspicious goods from Customs. Market surveillance for 
compliance with t echnical regulations is carried out on the basis of random samples.  
3.3.3   Sanitary and phytosanitary measures  
3.66.  During the review period, the institutional framework for SPS measures remained unchanged. 
The Ministry of Agriculture, Industry, Forestry, Fisheries, R ural Transformation, Industry and Labour 
remains the principal competent authority for plant and animal health, and phytosanitary protection. 
The Ministry of Health, Wellness and the Environment retains responsibility for sanitary protection 
in relation to  health and food safety.  
3.67.  During the review period, Saint Vincent and the Grenadines did not maintain any import bans 
on the grounds  of SPS concerns. Saint Vincent and the Grenadines has not notified any SPS 
measures to the WTO.  
3.68.  Imports of live animals and  animal products are subject to licensing requirements 
(Section  3.1.5.3). Prior to application for an import licence, a permit from the Animal Health and 
Production Division (AHPD) under the Ministry of Agriculture must be obtained. The issuance of a 
permi t is subject to risk assessment carried by the AHPD. The authorities indicate that risk 
assessment follows the guidance provided by international standard s-setting bodies.  
3.69.  Imports of plants and plant products are also subject to licensing requirements. In  this case, 
the Plant Protection and Quarantine Unit under the Ministry of Agriculture is responsible for issuing 
an import permit before the application for a trade licence can be submitted.  
3.70.  In general, imports of agricultural and fishery commodities, including food items, must be 
accompanied by a sanitary/phytosanitary certificate from the competent authorities of the exporting 
country. Consignments of lumber and used tyres must be fumigated prior to their release from 
Customs unless a certificate of treatment at the country of origin is presented. A permit from the 
Pesticides Control Board is necessary for importation of approved pesticides; some pesticides are 
prohibited, based on their acti ve ingredients.  
3.71.  All consignments of imports, regardless of animals (and animal parts/products) or plants, are 
subject to inspection at the point of entry. Exports of bananas must be treated before departure.  
3.72.  Saint Vincent and the Grenadines does not have any legal provisions with respect to 
genetically modified organisms (GMOs) or hormone -fed animals.  
3.3.4   State trading enterprises  
3.73.  Saint Vincent and the Grenadines has submitted only one notification on state trading 
enterprises to the WTO, dating back to Decem ber 200060; no updates have been provided.  
3.74.  According to the authorities, currently state trading is carried out only by the Agricultural 
Input Warehouse (AIW), which has had a monopoly on imports of bulk sugar since 2005; the AIW 
 
60 WTO document G/STR/N/6/VCT, 19  December  2000. WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  has no exclusive rights o n the importation of packaged sugar . The AIW also imports agricultural 
inputs, mainly fertilizer blends and diothene sheeting (protective bags for bananas), for onward sale 
to farmers at subsidized prices; the same items may be freely imported by other com panies. The 
AIW is entitled to import agricultural inputs duty -free; the price subsidy that it offers in onward 
trading is solely financed by the profits made on bulk sugar imports and is not subject to Cabinet 
approval; no funds are received from the Budg et. 
3.3.5   Competition policy and price controls  
3.75.  Saint Vincent and the Grenadines does not have a national competition authority ; instead it 
has agreed with other OECS member States to establish a regional competition agency responsible 
for competition enforcemen t within the OECS jurisdiction.61  
3.76.  Price controls continue to apply, de jure, to approximately 100 goods.62 According to the 
authorities, price controls are de facto enforced for motor vehicles and parts thereof, fuels, 
stationery and hardware products, pr escription drugs, and essential food products (e.g. milk, flour, 
sugar, and rice). The principal intervention method is setting a maximum mark -up for wholesalers 
and/or retailers; fixed retail prices are also used for sugar (see below), petrol, diesel, and  kerosene.  
3.3.6   Government procurement  
3.77.  Saint Vincent and the Grenadines is not a party to, nor an observer of , the WTO plurilateral 
Agreement on Government Procurement.  
3.78.  During the review period, Saint  Vincent and the Grenadines established a new public 
procur ement regime. On 4  November  2019, the Public Procurement Act , 2018 and its implementing 
Public Procurement Regulations entered into force. As set forth in the Act, the objectives of public 
procurement regime include promoting transparency and encouraging c ompetition in public 
procurement; fostering participation in procurement proceedings; ensuring fairness, equitability, 
and integrity; and promoting sustainable procurement.  
3.79.  The Central Procurement Board was established in 2020 to administer the Act. The Bo ard is 
responsible for approving prequalified suppliers or contractors, and awards contracts for the 
procurement projects whose values are above the thresholds set by the law and its regulations. The 
Ministry of Finance monitors public procurement operatio ns. 
3.80.  Procurement above XCD  45,000 by all governmental agencies and statutory bodies (including 
government -controlled companies) is subject to the rules set out in the Act. Defence and 
security -related contracts, procurement under cooperative and pooled agre ements, and 
procurement funded by donors are exempted from application of the Public Procurement Act.  
3.81.  In accordance with the Public Procurement Act, all public procurement must be conducted by 
open competitive bidding.63 An invitation to participate in a competitive bidding or to prequalify for 
it must be published in at least one newspaper of national circulation and on the Internet, for at 
least 20  days, and for at least 40 days for open competitive bidding advertised i nternationally.64  
3.82.  Exceptions to the open competitive bidding procurement method may be used under specific 
circumstances detailed in the law and its regulations. Limited competitive bidding may be used when 
a procurement project can be supplied by a limit ed number of bidders, or the time and cost required 
to evaluate a large number of bids would be disproportionate to the value of the procurement. 
Two-stage bidding may be used in cases where the complex nature of the works/services/goods so 
requires. Singl e source procurement may be used when there is only one supplier or when there is 
an urgent need to fulfil the procurement.  
3.83.  Procuring entities are not allowed to package, divide, or structure procurements to circumvent 
the approval thresholds. For procure ment below the approval thresholds, the procuring entity in 
 
61 CARICOM Competition Commission, Competition Authorities – St. Vincent and the Grenadines . Viewed 
at: http://www.caricomcompetitioncommission.com/en/competition/competition -authorities?id=45 .  
62 Price and Distribution of Goods Act, Cap 161.  
63 Public Procu rement Act , Article  44.  
64 Public Procurement Act , Schedule 3 . WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  question has the authority to approve the procurement. For procurement above the thresholds, the 
procuring agency must obtain an Approval Certificate from the Public Procurement Board. 
Procurement  of small items such as stationery is carried out centrally by the Ministry of Finance.  
3.84.  For procurement not funded by donors, national preference must be given in any bidding for 
supplies sourced from Saint Vincent and the Grenadines, as well from other OE CS member States.65 
However, the authorities note that national preferences have in practice not been used since the 
entry into force of the Public Procurement Act.  
3.85.  Challenges to contract decision may be submitted to the procuring entity or the Public 
Procurement Board for reconsideration of a decision (or action) any time before the procurement 
contract enters into force; the Challenge must be answered within 15 days. If the challenge was 
dismissed or the procuring entity failed to answer the Challenge, t he aggrieved party may submit 
an application to the Central Procurement Board for review by the Procurement Review Commission 
within five days  from the date  the challenger became aware of the circumstances.  
3.3.7   Intellectual property rights  
3.86.  During the period u nder review, the legal and institutional framework concerning intellectual 
property rights (IPRs) remained unchanged. The Commerce and Intellectual Property Office (CIPO) 
is the national authority for the administration, enactment , and protection of intell ectual property.  
3.87.  Saint Vincent and the Grenadines is a member of the World Intellectual Property Organization 
(WIPO). It is also a signatory to eight international IPR treaties administered by WIPO (Table  3.6).66 
Table  3.6 Participation in WIPO -administered treaties, 2022  
Treaty  Accession  In force 
Beijing Treaty on Audiovisual Performances  5 September  2016 28 April 2020 
Berne Convention  29 May 1995 29 August  1995 
Marrakesh VIP Treaty  5 September  2016 5 December  2016 
Paris Convention  29 May 1995  29 August  1995 
Patent Cooperation Treaty  6 May 2002 6 August  2002 
UPOV Convention  22 February  2021 22 March  2021 
WIPO Convention  29 May 1995  29 August  1995 
WIPO Performances and Phonograms Treaty  12 November  2010 12 February  2011 
Source:  WIPO, Country Profiles: Saint Vincent and the Grenadines . 
3.88.  Under the Patent Act, an invention (or a new improvement to existing invention) may be 
protected through a patent for 20 years since the filing date of a complete specification. The Act 
allows for a non -voluntary licence to be granted on the grounds that a market for the patented 
invention in Saint Vincent and the Grenadines is not being supplied on reasonable terms or at all67; 
the lic ence may not be issued within three years of the patent's granting or four years of the date 
of its filing, whichever is later. This has, however, never happened. The Act also provides for the use 
of patented inventions for the services of the Crown where the public interest so requires or where 
the Minister responsible for legal affairs decides that the manner of exploitation by the owner or 
his/her licensee is anti -competitive.  
3.89.  Under the Layout -Designs of Integrated Circuits Act, the topography of an inte grated circuit 
intended for manufacture is protected for 10 years, non -renewable.  
3.90.  An industrial design is protected by the Industrial Designment Act for five years, renewable 
for another consecutive period of five years.  
3.91.  A registered trademark is protect ed under the Trade  Marks Act for 10 years, renewable. 
Trademark protection is based on the first filing principle.  Opposition to a registered trademark may 
 
65 Public Procurement Act , Article  71. 
66 WIPO, WIPO -Administered  Treaties . Viewed at: 
https://wipolex.wipo.int/en/treatie s/ShowResults?code=VC . 
67 This compulsory licensing provision does not apply to any patent relating to an integrated circuit.  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  be raised by third parties during the publication of the mark. There is no provision on protection o f 
well-known marks.  
3.92.  A geographic indication (GI) is provided with indefinite protection by the Geographic 
Indications Act. As of end -October 2022, there were no GIs registered in Saint Vincent and the 
Grenadines. Trademarks have the largest number of regi strations for protection in Saint Vincent and 
the Grenadines among industrial property (Table  3.7). 
Table  3.7 Intellectual property registration, 2014 -21 
 
2014  2015  2016  2017  2018  2019  2020  2021  
Industrial design  0 1 0 0 0 0 0 0 
Patent  0 0 0 6 10 2 1 0 
Trademark  249 226 206 202 155 134 94 86 
Source:  Information provided by the authorities.  
3.93.  There is no legislation pertaining to protection of undisclosed information/trade secrets . 
3.94.  The Copyright Act was amended in 2018. The authorities note that the amendment was to 
align its provisions with Saint Vincent and the Grenadines' international oblig ations. Copyright of 
literary, dramatic, musical , or artistic work is protected for 75 years from the author's death (if 
authorship is unknown, the protection period is of 50 years after first public availability of the work). 
For sound recordings and film s, rights are protected for 50 years from the creation or 75 years after 
first public availability. Rights for broadcasts and cable programmes last 50 years from broadcasting. 
The typographical arrangement of editions is protected for 25 years from first p ublication.  
3.95.  Protection of plant varieties is provided under the Plant Breeders Act , 2019. As of 
end-October  2022, the Act's implementation regulations had still not been issued.  
3.96.  The Patents Act and the Industrial Designs Act contain explicit provisions on  parallel 
importation. The Patents Act provides for regional exhaustion of rights, whereby the intellectual 
property owner may not oppose parallel imports from other CARICOM countries. In contrast, the 
Industrial Designs Act provides for the national exhau stion of rights; the domestic intellectual 
property owner may restrict the importation of original goods marketed abroad. Parallel imports of 
trademarked goods are not allowed.  
 WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture  and fisheries  
4.1.  The agriculture sector traditionally was the backbone of the Saint Vincent and the Grenadines 
economy, though tourism overtook it in the 1990s. In 2021, the agricultural sector accounted for 
around 7% of GDP, and employed 26% of the labour f orce. Agriculture in Saint Vincent and the 
Grenadines faces challenges as land and water resources are scarce. The country has 
39,000  hectares (ha) of land, but only 7,000  ha are usable for agriculture.68 In addition, the 
agricultural sector is vulnerable to adverse natural conditions such as tropical storms, hurricanes, 
and volcanic  eruptions.  
4.2.  The agricultural sector is predominantly composed of small farms. Outputs are concentrated 
on a small number of crops, which makes the sector susceptible to global m arket fluctuations. 
Bananas are Saint Vincent and the Grenadines' traditional crop; they used to benefit from 
preferential access to the EU market. In addition to bananas, the main crops are root vegetables, 
arrowroot starch, coconuts, and spices. The sect or suffered from chronic underinvestment in the last 
decade.  
4.3.  The agricultural sector was adversely affected by the COVID -19 pandemic, despite the fact that 
Saint Vincent and the Grenadines did not declare a state of emergency and its borders remained 
open.  The pandemic caused an interruption of trade: exports were significantly reduced, and access 
to imported inputs became limited.  
4.4.  The eruption of the La Soufrière volcano in April 2021 had a devastating impact on th e 
Saint Vincent and the Grenadines' agricu ltural sector. Thick volcano ash blanketed half the country, 
including some of the best agricultural lands, where approximately 70% of the country's food is 
normally produced. The volcanic ash destroyed all vegetable crops and 80% of the root crops in the 
red zone (the most dangerous area) and 75% of the crops overall in the orange zone (dangerous 
area). As a result of the evacuation order, a significant number of the country's registered farmers 
were displaced – 2,875 registered farmers and 278 fishers  were displaced and evacuated from the 
red and orange zones.  
4.5.  Saint Vincent and the Grenadines remains a net food importer; at least 80% of the food locally 
consumed is imported.  Food imports accounted for over 20% of total imports each year during the 
review period. The recent hike in global food prices has put more stress on the Saint Vincent and 
the Grenadines' external accounts ( Section 1).  
4.6.  The policy objectives of Saint Vincent and the Grenadines' agriculture and fisheries sectors 
include food security, employment creation, and the sustainable use of the country's natural 
resources. Given its vulnerability to external shocks, Saint Vincent and the Grenadines places food 
and nutrition security and food sovereignty as its agriculture policy priorities.69 In this regard, 
together with its CARICOM partners, Saint Vincent and the Grenadines supports the "Twenty -five by 
2025 Initiative", which aims at reducing agri -food imports from outside CARICOM by 25% by the 
end of 2025.  
4.7.  The Ministry of Agriculture, Forestry , Fisheries, Rural Transformation, Industry and Labour is 
responsible for devising and implementing policies on agriculture, forestry, and fisheries. The 
Ministry provides farmers and fishers in the country with financial support, through the Farmers' 
Support Company (FSC), a statutory entity whose operation is financed by the Government's 
consolidated budget. Support is granted in the form of a 50% discount on purchases of inputs, feed, 
and fishing gear, as well as on tractors. The FSC also provides a seve n-year interest -free loan of up 
to XCD  70,000 for the purchase of fishing boats.  
 
68 Food and Agriculture Organization, Country Profile: Saint Vincent and the Grenadines . Viewed at: 
https://www.fao.org/countryprofiles/index/en/?lang=en&iso3=VCT&subj=5 .  
69 Ministry of Agriculture, Forestry, Fisheries, Rural Transformation, Industry and Labour, Ministerial 
Statement . Viewed at: 
http://www.agriculture.gov.vc/agriculture/images/stories/PDF_Documents/Ministerial_Statement_COVID_19_
Hon_Saboto_Caesar.pdf .  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  4.8.  In response to farmers' hardship caused by natural disaster (a drought in 2020, and the volcano 
eruption in 2021), the Ministry of Agriculture, Forestry, Fisheries, Rural Tra nsformation, Industry 
and Labour provided recovery relief to registered farmers in the form of a cash transfer. Also, 
through the FSC, farmers have access to support in the form of subsidized agricultural inputs such 
as feed, seeds, and fertilizers. Betwee n 2020 and 2022, the Government spent XCD  24.7 million on 
hardship support in response to the drought, the COVID -19 pandemic, and the volcano eruption 
(Table  4.1).  
Table  4.1 Hardship support, 2020 -22 
(XCD)   
2020 2021  2022  
Love/care box  2,572,951  1,179,836  2,502,531  
Income support  0 14,096,000  1,730,705  
Production support  0 1,970,289  676,358  
Total 2,572,951  17,246,125  4,909,594  
Source:  Information provided by the authorities.  
4.9.  Other support from the Ministry of Agriculture, Forestry, Fisheries, Rural Transformation, 
Industry and Labour during the review period included field sanitation (spraying with pesticides) and 
technical assistance. Saint Vincent and the Grenadines notified  to the WTO its spending on (green 
box) domestic support measures for five years within the review period (Table  4.2).  
Table  4.2 Spending on domestic support measures, 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  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.  
4.10.  Farmers have traditionally been exempted from income tax and are eligible for a 75% import 
duty relief on farm vehicles. Import tariff concessions m ay also be granted on items used in the 
fishing industry (fishing nets, marine engines,  and other equipment).  
4.11.  The Agricultural Input Warehouse (AIW), which has had in the past a monopoly on imports of 
bulk sugar, also imports agricultural inputs  duty-free, mainly fertilizer blends and diothene sheeting 
(protective bags for bananas). Imports by the AIW are for onward sale to farmers at discounted 
prices (Section  3.3.4).  
4.12.  Saint Vincent and the Grenadines notified to the WTO that it did not provide export subsidies 
to agricultural products for the period of 2015 -18. 
4.13.  With regard to fisheries, the overall policy objective is to maintain "sustainable use of all 
fisheries resources to maximise benefits to all Vincentians in the present and future", contributing  
to national food security, and helping alleviate the nation's under -nutrition.70 
4.14.  Fishers  must apply for a fishing licence annually from the Fisheries Division in the Ministry of 
Agriculture, Forestry, Fisheries, Rural Transformation, Industry and Labour. Fishing quotas are set. 
The licence specifies the catch amount for each vessel. According to the authorities, around 95% of 
the annual fishing quota is used. The Fisheries Division uses a vessel monitoring system (VMS) to 
monitor the fishing fleet's activi ties, and makes random inspections of a vessel's licensed activities. 
 
70 Ministry of Agriculture, Fisheries: Policy . Viewed at: 
http://www.agriculture.gov.vc/agriculture/index.php?option=com_content&view=article&id=365&Itemid=342 .  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  In 2017, Saint Vincent and the Grenadines established a Task Force against Illegal, Unregulated and 
Underreported (IUU) fishing.  
4.15.  In 2020, the Ministry of Agriculture, Forestry, Fisheries , Rural Transformation, Industry and 
Labour applied a "small fisher fleet expansion" programme to facilitate the modernization of the fleet 
of small -scale fisher s. Also, the Ministry distributed fishing gear at subsidized prices. The authorities 
note that this is part of an FSC project to modernize the fishing fleet, and to improve the fleet's 
seaworthiness and safety; the authorities also note  that such a project is not intended to actually 
expand the fleet capacity, as Saint Vincent and the Grenadines alm ost reaches its fishing quota limits 
every year, but rather to modernize it and replace vessels for more efficient ones. As a result of this 
modernization project, the number of high seas fishing vessels decreased to 4, down from 32 in 
2019.  
4.16.  Exports of lob ster and conch are subject to licensing requirements (Section  3.2.3).  
4.2  Manufacturing  
4.17.  The manufacturing sector is small, as domestic demand is not conducive to economies of 
scale. During the review period, it accounted for 4% of GDP on average. Locally manuf actured goods 
include steel rods, PVC pipes, galvanized sheets, animal feed, cardboard boxes, door frames, flour, 
soft drinks, and beer.  
4.18.  Domestic manufacturing enterprises continue to struggle with high electricity, transport , and 
telecommunications costs , as well as the erosion of preferential access to key export markets. The 
sector is dominated by small  and medium -sized enterprises; incentives and assistances are provided 
to manufacturing enterprises through the different incentives schemes, such as the  Fiscal Incentives 
Act (Section  3.3.1).  
4.19.  The simple average tariff on manufactured goods (ISIC classification) was 11% in 2020, but 
it was highly dispersed, with a coefficient of variation of 1. Clothing, electric machinery, transport 
equipment, and footwear are subject to some of the highest tariff levels. All 13 tariff lines with 
specific rates are on alcoholic beverages. Moreover, tariff rates for alcoholic beverages are higher 
than the CARICOM CET rates, as Saint Vincent and the Grenadines lists t hese products as "sensitive" 
on List C of the CARICOM CET Schedule. Also, effective from 18  August  2015, the application of the 
CARICOM CET on nines tariff lines regarding aerated and alcoholic beverages, was suspended.  
4.3  Services  
4.3.1   Financial services  
4.20.  The Fina ncial Services Authority (FSA) is the regulator of all financial institutions, except for 
commercial banks and securities businesses that are under the OECS regulatory regime. Institutions 
regulated by the FSA include credit unions/cooperative societies, i nsurance companies, building 
societies, mutual funds, international trust , and money services. Commercial banks are regulated 
by the ECCB, while securities are regulated by the Eastern Caribbean Securities Regulatory 
Commission.  
4.21.  As of end -September 2022, there were seven banks licensed to operate in Saint  Vincent and 
the Grenadines, among which two are branches of foreign banks, and the other five are locally 
incorporated.71 There are two non -bank financial institutions operating in the country.72 
4.22.  The East ern Caribbean Central Bank (ECCB) has primary responsibility for the supervision of 
domestic banks. The ECCB Agreement Act, 1983 and its amendments give the ECCB power to 
regulate banking business on behalf of and in collaboration with participating govern ments. 
Saint Vincent and Grenadines' onshore banking legislation is uniformized with that of the rest of 
OECS member States. The Banking Act No.  4 of 2015, is the main domestic law governing onshore 
 
71 ECCB, Saint Vincent and the Grenadines . Viewed at: https://www.eccb -centralbank.org/p/saint -
vincent -and-the-grenadines -1. 
72 ECCB, Licensed Financial Institutions Under the Banking Act . Viewed at: https://www.eccb -
centralbank.org/p/licensed -financial -institutions -under -the-banking -act.  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  banking. The Banking Act , 2015 was drafted within the con text of developing of a single banking 
space in the ECCU. The Act introduced a framework for the licensing and regulation of financial 
holding companies, and strengthened the remedial action tools and adopted mechanisms that would 
allow for the resolution of troubled banks at least cost.  
4.23.  Offshore banks and other financial institutions are governed by the International Business 
Companies Act, as amended, which entered into force on 1  January  2019. Following this 
amendment, all international banks and interna tional trusts, except for the ones grandfathered, 
must be locally incorporated, and the income tax exemption accorded to them was abolished. The 
transition period for grandfathered service providers  ended on 30  June 2021.  
4.24.  The amended Act allows financial institutions to continue their offshore financial services, 
though these institutions are tax liable for any income that are generated within the territory of 
Saint Vincent and the Grenadines; income generated from offshore operations is not taxed. As of 
end-September 2022, there were two "international banks" in operation, and other three were listed 
as under liquidation. The authorities note that the impact of the legislative changes on the segment 
of international finance services remained to be seen; th e authorities also note  that about 20% of 
financial institutions have left the country since the amendment's entry into force.  
4.25.  Companies that provide insurance services in Saint Vincent and the Grenadines may be locally 
incorporated or be incorporated in a ny CARICOM member State and operate locally through agencies 
or branches. Insurance companies are regulated by the Insurance Act and supervised by the FSA. 
In general, non FSA -registered insurers may not unwrite local risks.  
4.26.  If the insurance company is en gaged in long -term insurance business, the minimum paid -up 
share capital is set at XCD  2 million for local companies, and XCD  5 million for foreign companies; 
this amount must be fully paid -up in cash. Mutual companies must have uncommitted reserves of 
at least XCD  5 million; this is the case for long -term and other classes of insurance business. If the 
company is engaged in general insurance business, minimum paid -up capital requirements are half 
of those for long -term insurance , but foreign companies are still subject to a higher amount.  
4.27.  Insurance (excluding reinsurance) companies are required to deposit cash, assets , or a 
combination of both with the FSA. The deposit for long -term insurance businesses is XCD  500,000; 
insurers for motor vehicles are requir ed to deposit XCD  500,000 or 30% of the previous year's gross 
premium income, whichever is greater; the deposit for general insurance businesses companies 
except for the foresaid types of insurance business is the larger of XCD  200,000 or 30% of the 
previo us year's gross premium income. There is no difference in deposit requirements between local 
or foreign insurance companies .73 
4.28.  As of end -September 2022, there were 24 insurance companies registered with the FSA 
operating in Saint  Vincent and the Grenadines , among which 10 were long -term insurers; 
4 insurance companies are domestically owned , while the other 20 are foreign owned. The total 
assets of the insurance sector stood at XCD  182.7  million at the same date.  
4.29.  Insurance intermediaries (e.g. brokers and a gents) must be registered with the FSA. As of 
end-September  2022, there were 6 insurance brokers, 15 insurance agents , and 97 insurance 
representatives. In practice, only Saint Vincent and the Grenadines citizens or nationals of CARICOM 
member States may b e registered as insurance intermediaries.  
4.30.  There are also five international insurance companies registered with the FSA. These 
international insurance companies write risks outside Saint Vincent and the Grenadines. The 
authorities indicate that a separate regulatory regime for international insurance companies is in the 
process of being established.  
4.31.  During the review period, Saint Vincent and the Grenadines strengthened its legal framework 
on international financial services. The Foreign Accounts Tax Compl iance Act (FATCA) 2015 entered 
into force on 18  August  2015. FATCA is expected to combat tax evasion; it allows Saint Vincent and 
the Grenadines financial institutions to report information on accounts valued more than USD  50,000 
 
73 FSA, Domestic Non-Bank: Insurance and Pension Plans. Viewed at: https://Saint Vincent and the 
Grenadinesfsa.com/insurance -and-pension -plans/ .  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  to those competent foreign  authorities with which Saint Vincent and the Grenadines has an 
Intergovernmental Agreement (IGA). Currently, Saint Vincent and the Grenadines has an IGA with 
the United  States. In addition, Saint Vincent and the Grenadines signed the Multilateral Conventi on 
on Mutual Administrative Assistance in Tax Matters on 25  August  2016.  
4.32.  In the summer of 2022, Saint Vincent and the Grenadines passed a number of new laws 
providing the regulatory framework for specific financial services, namely, the Virtual Asset Serv ice 
Providers Act, the Micro -finance Service Providers Act, and the Mobile Payment Service Providers 
Act. As of end -November 2002, these Acts had not yet entered into force yet, as their implementing 
regulations were still in the drafting process.  
4.3.2   Telecomm unications  
4.33.  During the review period, fixed -line voice service penetration continued declining gradually 
while mobile service penetration hovered around 90%. On the other hand, there was an increase in 
broadband services subscriptions. Both fixed -line and t he mobile broadband penetration grew by 
50% during the review period: fixed -line penetration stood at 22.9% in 2021 up from 16.2% in 
2015, while mobile broadband penetration reached 75.1% in 2020. The percentage of people in the 
country with access to broa dband services expanded remarkably by 35  percentage points; in 2020, 
98% of Vincentians have access to broadband internet (Table  4.3)  
Table  4.3 Telecommunications statistics, 2015 -21 
Key indicator  2015  2016  2017  2018  2019  2020  2021  
Revenue (XCD  million)  138 133 125 117 120 118 .. 
Investment (XCD  million)  25 17 18 24 13 15 .. 
Employment  143 195 161 188 148 164 .. 
Fixed voice service penetration (%)  19 19 19 18 16 16 .. 
Fixed broadband penetration (%)  16.2 16.7 17.5 18.9 19.6 22.9 .. 
Mobile service penetration (%)  106 99 102 102 87 91 .. 
Mobile broadband penetration (%)  40.2 46.8 47.7 14.9 78.1 75.1 .. 
Broadband Internet service 
penetration (%)  .. 63.5 65.2 33.8 97.7 98.0 .. 
Local traffic (million minutes)  152 105 81 100 122 88 .. 
International outgoing traffic (million 
minutes)  61 30 26 26 28 16 .. 
.. Not available.  
Source:  ECTEL (2021), Annual Electronic Communication Sector Review 2019 -20. 
4.34.  Investment in the telecommunications sector was generally in decline during the review 
period, except for a spike in 2018, which reflected the fibre optic deployment by an operator.  
4.35.  During the review period, the regulat ory framework for telecommunications remained largely 
unchanged. The basic legislation is the Telecommunications Act and the ECTEL Treaty. The National 
Telecommunications Regulatory Commission (NTRC) is the national regulatory agency, while the 
Eastern Car ibbean Telecommunications Authority (ECTEL) has an advisory role in the national 
regulatory regime.  
4.36.  Anyone who wishes to provide public telecommunications services must apply for a licence 
from the NTRC. If a service provider wishes to operate its own infr astructure (e.g.  network or cable 
landing stations), an "individual" licence must be obtained from the regulator; a "class" licence is 
usually issued to service providers who provide particular types of services on top of providing 
existing infrastructure.  There are no restrictions to foreign capital participation in 
telecommunications services. According to the authorities, telecommunications licences and 
spectrum authorizations are technology -neutral.  
4.37.  As of end -September 2022, there were four network oper ators offering fixed voice and 
broadband, mobile cellular and broadband, subscriber television , and submarine cable services. 
Cable & Wireless Limited is the only operator that has licences for providing all types of services. WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  There are three carriers in t he fixed -line service and two providers in the mobile services market; 
Cable & Wireless Limited is the sole provider of Internet networks.74 
4.38.  Telecommunications infrastructure, including satellite earth stations as well as submarine 
cable landing stations, is privately owned. In addition to the last mile connection to end users, each 
of the licensed operators has its own telecom network. A licen sed network operator must treat any 
other operators connecting to its network on a fair, reasonable, and non -discriminatory basis; this 
obligation is also applied to the branches or subsidiaries of a dominant provider. Currently, Cable & 
Wireless is classified as the dominant provider in fixed -line voice service. Companies may freely 
negotiate, amend , or modify interconnection agreements, but the approval of the NTRC is required. 
Maximum interconnection rates are set by ECTEL. On 1  June 2018, the NTRC  approved a new set of 
interconnection rates; compared to the previous schedule, rates on the 2018 schedule are lower. 
According to the authorities, co -location requirements are mandatory for operators.  
4.39.  Service providers are free to set tariffs for service s; tariffs must be notified to the NTRC and 
be published for the public.75 Price of "regulated services" are capped; currently, only fixed -line voice 
services have been designated as provider of "regulated services". The NTRC is also the authority 
for cons umer protection in the telecommunications sector.  
4.40.  Telephone numbers are allocated to licensed operators according to the National Numbering 
Plan.76 The NTRC manages the National Numbering Plan in conjunction with ECTEL. Numbers of 
mobile services became po rtable across operators in the ECTEL region from 13  May 2019, while 
numbers of fixed -line services will become portable later when alternative fixed -line services are 
available across the region.77 Service providers must obtain a Frequency Authorization fr om the 
NTRC to be granted radio frequency allocation for mobile telecommunications services. The NTRC 
manages the spectrum plan in conjunction with ECTEL and allocates frequency bands to operators 
based on need. The authorities state that frequency allocat ions are based on technical assessments 
and the applicant's needs, which are dependent on the stage of technology development the 
applicants are in. If the band is in high demand, the allocation is conducted on a first -come , 
first-served  basis.  
4.41.  Universal s ervice obligations include the provision of public voice telephony, Internet access, 
and telecommunication services to schools, hospitals, and similar institutions serving public needs. 
The Universal Service Fund (USF) compensates any provider required to provide or promote the 
service; the USF is financed through contribution by licensed operators . Effective 31  January  2017, 
the operator's contributions were increased  to 2% of their gross annual revenue78, up from 1%.  
4.42.  All radio or telecommunications equipm ent, whether used in the deployment of networks or 
by end  users, requires type approval before it may be sold, imported, installed, or used. Exemptions 
from local type approval may be granted for equipment certified under recognized overseas 
regulations (e .g. those issued or applied by the U.S. Federal Communications Commission, Industry 
Canada, and the European Telecommunications Standards Institute), but importers must apply to 
the NTRC for overseas approval recognition.79  
4.3.3   Transport  
4.3.3.1   Air transport  
4.43.  Air tra nsport is the main mode of transportation for people entering in and departing from the 
country. During the review period, a new airport, Argyle International Airport, was inaugurated, on 
14 February  2017. With this expanded capacity, Saint  Vincent and the  Grenadines experienced an 
expansion of air transport reflecting rapid growth in the tourism sector. This was the situation until 
 
74 National Telecommunications Regulatory Commission (NTRC), Licence Register . Viewed at: 
https://www.ntrc.vc/provid ers/licence -register/ .  
75 NTRC, Retail Tariffs.  Viewed at: https://www.ntrc.vc/consumer/tariffs/ .  
76 NTRC, Numbering.  Viewed at: https://www.ntrc.vc/providers/numbering/ .  
77 NTRC, Mobile Number Portability . Viewed at: https://www.ntrc.vc/mnp/ .  
78 Telecommunications (Universal Service Fund  Contribution) Order 2017 (SR&O No.  4 of 2017). Viewed 
at: https://ntrc.vc/docs/legislations/USF%20Fund%20Contribution.pdf .  
79 NTRC, Type Approvals . Viewed at: https://www.ntrc.vc/general/type -approvals/ .  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  the onset of the COVID -19 pandemic in 2020. Starting in May 2020, passenger traffic declined 
sharply, despite Saint Vincent an d the Grenadines not declaring a lockdown.  
4.44.  During the review period, the legal and institutional framework for air transport remained 
unchanged. The main legislation for the sector is the Civil Aviation Act. The Ministry of Tourism, Civil 
Aviation, Sustai nable Development and Culture is responsible for formulating policies related to civil 
aviation. The Eastern Caribbean Civil Aviation Authority (ECCAA) has the responsibility, at the 
regional level, for safety and security matters such as issuing Air Opera tor Certificates (AOCs).  
4.45.  Anyone wishing to provide air transport services must obtain an Air Transport Service Licence 
(for business authorization) from the Air Transport Licence Board, and an air operator certificate 
(AOC, for safety compliance) from ECC AA. Air Transport Service Licences are issued only to 
applicants who are a Saint Vincent and the Grenadines or CARICOM national . In order to maintain a 
valid AOC, applicants must have their principal business address registered within the territory of 
any CARICOM member State, and the business must be effectively controlled by Saint Vincent and 
the Grenadines /CARICOM nationals.  
4.46.  There are two privately  owned carriers in the country, Saint  Vincent and the Grenadines Air 
and Mustique Airways. Saint Vincent a nd the Grenadines is the flag carrier.  
4.47.  Saint Vincent and the Grenadines maintains nine bilateral air service agreements (BASAs) 
with its trading partners; the BASAs offer up to fourth  freedom with restrictions on ownership and 
designate. In its BASAs, Sain t Vincent and the Grenadines applies CARICOM ownership criteria, 
designating any CARICOM -based carrier as its carrier when enforcing the agreements. Also, 
Saint Vincent and the Grenadines is a signatory to the CARICOM Multilateral Air Services Agreement 
(CARICOM MASA); this Agreement confers third and fourth freedom route rights to airlines owned 
and operated by Caribbean nationals, while fifth freedoms are exchanged on a bilateral basis, and 
day tour regimes may also be negotiated. Cabotage is not allowed.  
4.48.  There are five public airports, four of which are owned by the State. Argyle International 
Airport (AIA) became fully operational in February 2017, replacing the decommissioned ET Joshua 
Airport. AIA is the main international gateway in the country, with a design capacity of 1.2  million 
passenger -throughput  per year. AIA is managed and operated by AIA Inc ., a state -owned enterprise; 
AIA Inc . also manages and operates three other state-owned airports. According to the authorities, 
private sector operators a re welcome to participate in airport operations. Ground handling services 
such as passenger processing, cargo handling, catering, and ramp operations are provided currently 
by AIA Inc. Saint Vincent and the Grenadines Air has its own ground handling staff at AIA for ground 
operations for its own flights but is not allowed to provide services to other flights that are serviced 
by AIA.  
4.3.3.2   Maritime transport  
4.49.  During the review period, the legislative framework for maritime transport remained 
unchanged. The main le gislation on merchant shipping is the Shipping Act , 2004 (as amended in 
2007 and 2014); the Department of Maritime Administration under the Ministry of National Security 
is the enforcement agency for the Act.  
4.50.  Pursuant to the Shipping Act, for a vessel to b e Saint Vincent and the Grenadines -registered 
it must be substantially owned by Saint Vincent and the Grenadines/CARICOM member state 
nationals (natural or legal persons); non -incorporated companies may be authorized by the Minister, 
conditional upon the c ompany being established in and having its principal place of business in 
Saint Vincent and the Grenadines, where the majority of the ownership of the company is vested in 
Saint Vincent and the Grenadines citizens, and the company is managed by Saint Vince nt and the 
Grenadines citizens.  
4.51.  Cabotage is not permitted.  
4.52.  Kingstown Port and Campden Park are the main commercial ports; Kingstown Port is fully 
owned by the Government, while Campden Park is a government joint venture with 49% private 
equity. The Port A uthority, a statutory body, has a monopoly on the provision of port services, and 
sets fees. Pilotage is compulsory for vessels exceeding 100 gross registered tonnes. According to WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  the authorities, domestic and foreign companies may provide certain auxiliar y services under 
licensing arrangements; such arrangements are at the discretion of the Port Authority and the 
Government. One company has been licensed as a monopoly tugboat operator; the licence also 
regulates the fees for tugging services and stipulates  exemptions for certain types of ships. The use 
of tugboats is mandatory for container ships but optional for cruise ships. Stevedoring services have 
been outsourced.  
4.3.4   Tourism  
4.53.  The tourism sector is the largest foreign exchange earner for Saint Vincent and t he 
Grenadines, and is one of the priority sectors for development identified by the Government. The 
Government's policy objective for tourism is to ensure an inclusive and sustainable development of 
the tourism resources. A Tourism Master Plan is being dev eloped by the Government. The authorities 
indicate that the Tourism Master Plan will focus on climate change, and aim to enhance the sector's 
disaster preparedness.  
4.54.  Total visitor arrivals almost doubled between 2014 and 2019, while arrivals of stay -over 
visitors increased by 21% for the same period. The COVID -19 pandemic in 2020, plus the 
La Soufrière volcano eruption in 2021, caused a sharp reduction of tourist arrivals. Total visitor 
arrivals in 2021 were only 14% of those in 2019, while the number of st ay-over visitors declined to 
28% of the 2019 level.  
4.55.  The main bottleneck constraining the recovery of tourism is airline capacity and connectivity. 
Usually, around 30% of the arriving visitors stay at least one night in the country. The United  States 
and the United  Kingdom are the largest markets for tourism exports; tourists combined from both 
countries accounted for more than half of the stay -over visitors each year (Table  4.4). 
Table  4.4 Tourism statistics, 2014 -21 
 
2014  2015  2016  2017  2018  2019  2020  2021  
Total visitors  204,934  206,662  223,156  303,044  356,069  404,097  154,828  56,759  
Stay-over visitors  70,713  75,381  79,395  75,972  80,080  85,546  26,550  24,230  
United  States  19,838  22,063  23,086  23,320  26,351  29,737  9,515  10,909  
Canada  7,203  7,515  7,905  8,690  9,822  10,483  3,975  2,053  
United  Kingdom  15,960  17,045  16,974  11,870  12,959  13,132  5,635  5,376  
Caribbean  19,886  21,566  24,390  24,924  23,807  24,027  4,282  3,219  
Other countries  7,826  7,192  7,040  7,168  7,141  8,167  3,143  2,673  
Excursionists  2,152  1,732  1,340  1,485  1,287  1,275  668 139 
Cruise ship passengers  85,170  82,079  94,151  174,236  217,876  255,225  101,579  24,311  
Yacht passengers  46,899  47,470  48,270  51,351  56,826  62,051  26,031  8,079  
Number of cruise ship calls 222 231 261 280 261 260 92 47 
Total visitor expenditure  
(XCD million)  249.44  258.51  270.34  256.78  281.84  318.32  118.15  98.04  
Source:  ECCB, Real Sector Statistics – Selected Tourism Statistics . 
4.56.  The Ministry of Tourism, Civil Aviation, Sustainable Development and Culture  is the policy 
maker for the tourism sector. The Product Development Unit under the Ministry facilities the 
development of products. The S aint Vincent and the Grenadines Tourism Authority is the sector's 
regulator, with the responsibility of promoting the country as a tourist destination, developing 
standards80, and regulating the quality of the local tourism service providers.  
4.57.  The authorit ies note that there are no restrictions on foreign capital participation in the 
tourism sector, including in hotel accommodation, restaurant and culinary services, recreational 
facilities, and tourism operators.  Foreign investment in the tourism sector inc luding in tourism 
accommodation and tourism services are  eligible for the fiscal incentives provided by the Fiscal 
Incentives  Act and the Hotels Aid Act. These incentives include the waiver of customs duties and 
other taxes on imports of building materials  and equipment, as well as on tourism -related advertising 
and promotional material. Income tax holidays are available for the development of new hotels and 
 
80 The Authority has developed standards for service providers of spa and wellbeing; tourism craft 
vending; short -term vehicle rental s; hotel s and accommodations; and tour guides.  WT/TPR/S/ 437 • Saint Vincent and the Grenadines  
 
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  apartment -hotels (of not less than 5 rooms for Saint Vincent and the Grenadines citizens, and not 
less than 10 rooms for other persons) or for improvement and expansion; the income tax holiday 
period is of 9 to 15 years, depending on the number of rooms created.81 
4.58.  In addition to processing duty -free concessions , the Product Development Unit provides 
recommendations regarding the opportunity of granting concessions for tourism operators and 
hoteliers. During the review period, the Unit recommended concessions for operators of tour buses, 
and of boats and sea tour s.  
4.59.  In order to encourage tourist stays, a lower VAT rate of 11% is imposed on hotel and holiday 
accommodation.82 Accommodation for a continuous period of 45 days is VAT -exempt.  
 
__________  
 
81 Income tax exemptions for expansion of hotels apply only to the profits attributable to the expansion.  
82 The VAT rate was raised from 10% in May 2017.