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  ANNEX 3 – GRENADA  
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  CONTENTS  
1   ECONOMIC ENVIRONMENT  ................................ ................................ ......................  172  
1.1   Recent economic developments  ................................ ................................ ................  172 
1.1.1   Real economy  ................................ ................................ ................................ ..... 172 
1.1.2   Fiscal policy  ................................ ................................ ................................ ........  175 
1.1.3   Balance of payments, monetary and exchange rate policy  ................................ ..........  177 
1.2   Trends and patterns in merchandise and services trade  ................................ ................  178 
2   TRADE AND INVESTMENT REGIMES  ................................ ................................ .........  182  
2.1   General framework  ................................ ................................ ................................ . 182 
2.2   Trade policy formulation and objectives  ................................ ................................ ..... 183 
2.3   Trade agreements and arrangements  ................................ ................................ ........  183 
2.3.1   WTO ................................ ................................ ................................ ..................  183 
2.3.2   Regional and preferential agreements  ................................ ................................ ..... 184 
2.4   Investment regime  ................................ ................................ ................................ . 185 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ......................  188  
3.1   Measures directly affecting imports  ................................ ................................ ...........  188 
3.1.1   Customs procedures, valuation, and requirements  ................................ ....................  188 
3.1.2   Rules of origin  ................................ ................................ ................................ ..... 189 
3.1.3   Tariffs  ................................ ................................ ................................ ................  190 
3.1.3.1    WTO bound tariffs  ................................ ................................ .............................  190 
3.1.3.2    Applied MFN tariffs  ................................ ................................ ............................  190 
3.1.3.3    Tariff and tax concessions  ................................ ................................ ..................  194 
3.1.3.4    Tariff preferences  ................................ ................................ ..............................  194 
3.1.4   Other duties and charges  ................................ ................................ ......................  194 
3.1.4.1    Customs service charge  ................................ ................................ .....................  194 
3.1.4.2    Other taxes  ................................ ................................ ................................ ...... 195 
3.1.5   Import prohibitions, restrictions, and licensing  ................................ .........................  196 
3.1.5.1    Import prohibitions  ................................ ................................ ...........................  196 
3.1.5.2    Import restrictions and licensing  ................................ ................................ .........  196 
3.1.6   Contingency measures  ................................ ................................ .........................  197 
3.2   Measures directly affecting exports  ................................ ................................ ...........  198 
3.2.1   Procedures  ................................ ................................ ................................ .........  198 
3.2.2   Export taxes, charges, and levies  ................................ ................................ ...........  198 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ ..........................  198 
3.2.4   Export promotion and assistance  ................................ ................................ ............  199 
3.2.5   Free zones  ................................ ................................ ................................ ..........  199 
3.3   Measures affecting production and trade  ................................ ................................ .... 199 
3.3.1   Incentives  ................................ ................................ ................................ ..........  199 
3.3.2   Technical regulations and standards  ................................ ................................ ....... 201 
3.3.3   Sanitary and phytosanitary measures  ................................ ................................ ..... 203 WT/TPR/S/ 437 • Grenada  
 
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  3.3.4   State trading enterprises  ................................ ................................ ......................  203 
3.3.5   Government procurement  ................................ ................................ .....................  204 
3.3.6   Competition policy and regulatory issues  ................................ ................................ . 205 
3.3.7   Intellectual property rights  ................................ ................................ ....................  205 
4   TRADE POLICIES BY SECTOR  ................................ ................................ ...................  207  
4.1   Agriculture and fisheries  ................................ ................................ ..........................  207 
4.2   Energy  ................................ ................................ ................................ ..................  208 
4.3   Manufacturing  ................................ ................................ ................................ ........  209 
4.4   Services  ................................ ................................ ................................ ................  209 
4.4.1   Financial services  ................................ ................................ ................................ . 209 
4.4.1.1    Banking  ................................ ................................ ................................ ...........  210 
4.4.1.2    Insurance  ................................ ................................ ................................ ........  210 
4.4.2   Telecommunications  ................................ ................................ .............................  211 
4.4.3   Transport  ................................ ................................ ................................ ...........  213 
4.4.3.1    Air transport  ................................ ................................ ................................ ..... 213 
4.4.3.2    Maritime transport  ................................ ................................ ............................  214 
4.4.4   Tourism  ................................ ................................ ................................ ..............  214 
 
CHARTS  
 
Chart  1.1 Merchandise trade by main SITC sections, 2014 and 2021  ................................ ..... 179 
Chart  3.1 Distribution of MFN applied tariff rates, 2020  ................................ .......................  191 
 
TABLES  
 
Table  1.1 Selected economic indicators, 2015 -21 ................................ ..............................  172 
Table  1.2 Ce ntral Government fiscal accounts, 2015 -21 ................................ .....................  176 
Table  1.3 Balance of payments, 2015 -21 ................................ ................................ .........  177 
Table  1.4 Trade in services, 2015 -21 ................................ ................................ ..............  180 
Table  2.1 Notifications to the WTO, 2014 –22 ................................ ................................ ... 183 
Table  2.2 Summary of taxes and mandatory contribution in Grenada, 2022  ..........................  186 
Table  3.1 Structure of the tariff sche dule, 2013 and 2020  ................................ ..................  191 
Table  3.2 Summary analysis of the MFN tariff, 2022 ................................ ..........................  192 
Table  3.3 Tariff headings where applied rates exceed bound rates, 2020  ..............................  193 
Table  3.4 Import restrictions, 2022  ................................ ................................ ................  196 
Table  3.5 Import licensing regime, 2022  ................................ ................................ .........  197 
Table  3.6 Goods subject to exports control and/or licensing, 2022  ................................ ...... 198 
Table  3.7 Investment incentives, 2022  ................................ ................................ ............  200 
Table  3.8 Technical regulations, 2022  ................................ ................................ .............  201 
Table  4.1 Agricultural exports, 2015 -21 ................................ ................................ ..........  207 
Table  4.2 Telecommunications statistics, 2015 -21 ................................ ............................  211 WT/TPR/S/ 437 • Grenada  
 
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  Table  4.3 Selected indicators of aviation, 2015 -21 ................................ ............................  213 
Table  4.4 Tourism statistics, 2014 -21 ................................ ................................ .............  214 
 
APPENDIX TABLES  
 
Table  A1. 1 Merchandise visible exports by SITC section, 2014 -21 ................................ ........  216 
Table  A1. 2 Merchandise visible imports by SITC section, 2014 -21 ................................ ........  217 
 
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1  ECONOMIC ENVIRONMENT  
1.1  Recent  economic developments  
1.1.1   Real economy  
1.1.  Grenada, the Southernmost OECS -WTO Member is a small, open economy situated in the 
East Caribbean Sea. It comprises three relatively large islands (Grenada, Carriacou, and Petite 
Martinique), and several small islands, which are a part of the Grenadines. A s a small island 
economy, Grenada is susceptible to external shocks such as natural disasters, and global market 
fluctuations.  
1.2.  Grenada's economy is dominated by services, in particular by tourism and private education. 
The services sector accounts for two thirds of GDP. Agriculture, together with fisheries, accounts for 
just 5% of GDP, but is the source of the majority of merchandise exports. The manufacturing sector 
is small, consisting mainly of agro -processing; it contributes some 3% to GDP (Table  1.1). Classified 
by the World Bank as an upper middle -income country, Grenada's per capita GDP was above 
USD 9,000 during every year of the review period (2015 -22). Although it reached some USD  10,800 
in 2019, GDP per capita declined to USD  9,200 in 2020 as a co nsequence of lower economic activity 
due to the pandemic. GDP per capita is estimated to have exceeded again USD  10,000 in 2022 as 
the economy recovered.  
Table  1.1 Selected economic indicators, 2015 -21 
 
2015  2016  2017  2018  2019  2020  2021  
GDP 
(current  XCD million)  2,692  2,866  3,039  3,150  3,276  2,817  3,032  
GDP 
(current  USD million)  997.0  1,061.6  1,125.7  1,166.5  1,213.5  1,043  1,123  
Real GDP growth 
(% change)  6.4 3.7 4.4 4.4 0.7 -13.8 4.7 
GDP per capita (USD)  9,056  9,572  10,099  10,402  10,779  9,200  .. 
GDP by economic activity (% of current GDP)  
Agriculture, Livestock 
and Forestry  6.2 5.0 4.2 4.2 3.6 3.8 4.1 
Crops  5.6 4.4 3.6 3.6 3.0 3.1 3.4 
Bananas  0.1 0.2 0.2 0.1 0.1 0.0 0.1 
Nutmeg  0.3 0.3 0.2 0.2 0.2 0.3 0.3 
Sugar  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other Crops  5.1 3.9 3.3 3.2 2.8 2.8 3.1 
Livestock  0.5 0.5 0.5 0.5 0.5 0.5 0.6 
Forestry  0.2 0.1 0.1 0.1 0.1 0.2 0.2 
Fishing  1.2 1.2 1.1 1.1 1.0 1.1 1.2 
Mining & Quarrying  0.3 0.2 0.2 0.2 0.2 0.2 0.2 
Manufacturing  3.4 3.4 3.1 3.1 3.4 3.1 3.3 
Sugar  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  3.4 3.4 3.1 3.1 3.4 3.1 3.3 
Electricity & Water  3.3 3.0 2.7 2.7 3.1 3.4 3.2 
Electricity  2.6 2.3 2.0 2.1 2.4 2.3 2.2 
Water  0.7 0.7 0.7 0.6 0.7 1.1 1.0 
Construction  5.3 5.6 6.7 7.4 7.0 6.4 7.8 
Wholesale & Retail Trade  6.6 6.1 6.3 6.6 6.5 6.4 6.6 
Hotels & Restaurants  5.5 6.7 6.5 6.7 6.7 2.3 3.2 
Hotels  4.2 5.3 5.1 5.2 5.2 1.7 2.5 
Restaurants  1.3 1.3 1.4 1.4 1.5 0.7 0.7 
Transport, Storage and 
Communications  10.1 9.7 9.9 9.8 9.7 8.5 7.0 
Transport and Storage  7.4 7.1 7.4 7.6 7.4 6.1 4.7 
Road Transport  4.5 4.5 4.9 5.2 5.0 4.7 3.6 
Sea Transport  0.7 0.7 0.7 0.8 0.8 0.6 0.4 
Air Transport  0.1 0.1 0.1 0.1 0.1 0.0 0.0 
Supporting and 
Auxiliary Transport 
Activities  2.1 1.8 1.7 1.6 1.5 0.7 0.8 
Communications  2.7 2.6 2.5 2.1 2.3 2.4 2.3 
Financial Intermediation  5.1 5.6 5.2 5.2 5.8 6.3 6.2 WT/TPR/S/ 437 • Grenada  
 
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2015  2016  2017  2018  2019  2020  2021  
Banks  4.0 4.6 4.2 4.2 4.7 4.9 4.9 
Insurance  1.0 0.9 0.9 1.0 1.0 1.3 1.2 
Activities Auxiliary to 
Financial 
Intermediation  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Real Estate, Renting and 
Business Activities  9.9 9.4 9.2 9.1 8.9 9.6 9.1 
Owner Occupied 
Dwellings  6.5 6.1 5.9 5.8 5.6 6.2 5.8 
Real Estate Activities  0.8 0.8 0.7 0.7 0.7 0.8 0.7 
Renting of Machinery 
and Equipment  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Computer and 
Related Activities  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Business Services  2.3 2.3 2.3 2.4 2.4 2.4 2.4 
Public Administration, 
Defence & Compulsory 
Social Security  6.2 6.0 5.9 5.5 5.5 6.6 6.7 
Education  19.2 19.4 20.1 19.0 19.9 23.2 22.5 
Public  3.4 3.1 3.2 3.2 3.2 3.7 3.6 
Private  15.8 16.3 16.8 15.8 16.7 19.5 18.9 
Health and Social Work  1.8 1.7 1.8 1.8 1.8 2.1 2.0 
Public  1.6 1.6 1.6 1.7 1.6 1.9 1.8 
Private  0.2 0.2 0.2 0.2 0.2 0.2 0.2 
Other Community, Social 
& Personal Service  1.7 1.6 1.6 1.6 1.4 1.2 1.2 
Activities of Private 
Households as 
Employers  0.7 0.7 0.7 0.7 0.6 0.7 0.7 
Less: FISIM  0.9 1.0 1.1 1.2 1.3 0.9 0.8 
GVA in Basic Prices  85.6 84.3 84.0 83.5 83.9 83.9 84.3 
Plus: Product Taxes  14.4 15.7 16.0 16.5 16.1 16.1 15.7 
Less: Subsidies  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Employment         
Unemployment rate (%)  30.4 28 23.6 16.7 15.1 28.4 .. 
Prices and interest rates  
Inflation  
(%, end of period)  1.1 0.9 0.5 1.4 0.1 -0.8 1.9 
Inflation  
(%, period average)  -0.5 1.6 0.9 0.8 0.6 -0.7 1.2 
Money supply (M1)  
(% growth)  16.4 6.4 8.2 12.4 8.6 -10.2 24.3 
Monetary liabilities (M2) 
(% growth)  5.2 1.3 4.0 5.9 2.9 -1.2 8.5 
Deposit interest rate (%)  1.57 1.44 1.33 1.31 1.24 1.09 1.19 
Lending interest rate 
(%) 8.70 8.43 7.99 7.56 7.21 6.37 6.2 
Memorandum:  
Population (persons)  110,096  110,910  111,467  112,139  112,580  113,420  .. 
Exports of goods and 
services (% of GDP, 
current prices)  51.2 49.4 51.4 53.3 54.5 40.4 35.1 
Imports of goods and 
services (% of GDP, 
current prices)  50.9 49.9 54.7 58.7 59.9 56.3 57.9 
Exchange rate (domestic 
currency per USD)  2.7 2.7 2.7 2.7 2.7 2.7 2.7 
Real effective exchange 
rate (%  change)  3.0 2.3 -0.9 -2.2 0.8 -1.9 -4.7 
.. Not available.  
Note:  Data for 2019 -21 and for unemployment is preliminary data. Growth rates of M1 and M2 for 2020 
and 2021 are based on data from the Annual Economic and Financial Review, December 2021.  
Source:  Eastern Caribbean Central Bank (ECCB), statistic s page as viewed on 25  October  2022, and Annual 
Economic and Financial Review, December 2021; Caribbean Development Bank, Grenada Economic 
Review 2018, 2019, and 2020; and the International Monetary Fund (IMF).  WT/TPR/S/ 437 • Grenada  
 
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  1.3.  Grenada's economy was hit hard by two hurrica nes (Ivan 2004 and Emily 2005) at the 
beginning of the new century. According to the authorities, the damages by the hurricanes exceeded 
200% of GDP; 90% of the buildings (including tourism facilities) and a large percentage of tree crops 
were damaged or d estroyed. In addition, the decline in world demand caused by the global financial 
crisis 15 years ago added stress to the economic growth in Grenada. The recovery operations added 
stress to the country's already high debt. Public debt as a share of GDP inc reased from 84.4% in 
2008 to 110.2% in 2015 at the beginning of the review period.  
1.4.  During most of the review period, Grenada's economy was on its path to recovery from the 
previously mentioned adverse shocks. Growth was driven by the expansion of agricultu re, 
construction, and tourism. Grenada experienced a robust growth until 2020 when the COVID -19 
pandemic impacted the world; real GDP expanded at an average annual growth rate of about 4% in 
the 2015 -19 period, allowing per capita income to grow.  
1.5.  The COVID -19 pandemic, especially its inducing social distancing measures and border closure, 
had a devastating impact on Grenada's travel service -oriented economy (including education). The 
economy contracted by 13.8% in 2020 in real terms. Compared to 2019, the n umber of total visitor 
arrivals fell by 58.8% to 216,867 in 2020, while stay -over arrivals dropped by 73.1% to 43,815 
(Table  4.6). This consequently dampened activity in hotels, restaurants and other tourist related 
facilities. As a share of GDP, hotels an d restaurants declined to 2.3% in 2020 from 6.7% in 2019 
(Table  1.1). In 2021, despite the reopening of the border, total visitor arrivals as well as stay -over 
arrivals declined further. Manufacturing production was halted while output in agriculture was 
impacted by lower demand, logistical challenges due to curfews and border closures. Value added 
in manufacturing and agriculture declined by 20.0% and 11.2%, respectively in 2020.  
1.6.  As the COVID -19 situation began to ease, activity in all major sectors, such as agriculture, 
construction, manufacturing, and tourism, began to pick up. In 2021, output growth on a 
year-on-year basis in these sectors was 9%, 30%, 7% and 40.3%, respectively.1 Overall, GDP grew 
in real terms at a pace of 4.7% in 2021 (Table  1.1), an d was expected to grow by 3.6% in 2022.  
1.7.  In the most recent Art IV Consultations, in May 2022, IMF staff noted that, prior to the 
pandemic, the authorities had made great strides with strengthening fundamentals. Significant 
efforts were made to diversify th e export base, strengthen human capital, improve the investment 
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 nat ural 
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 help ed 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. Grenada receive d 
USD 22.4 million under the Rapid Credit Facility in April 2020 and USD  42.4 million  in concessional 
financing from the World Bank (WB) and the Caribbean Development Bank (CDB) that supported 
the Government 's response to the pandemic. 2 
1.8.  In November 2022,  the IMF projected the economy to grow by 3.6% 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 2 022.3 
1.9.  Inflation remained low during most of the review period at rates between 0.1% and 1.1%, with 
the exception of 2020, when the variation in the Consumer Price Index was negative. In 2021, due 
 
1 ECCB (2021), Annual Economic and Financial Review: Grenada . Viewed at: https://www.eccb -
centralbank.org/content -manager/documents/download/681 .  
2 IMF Country Report No.  22/134 Grenada 2022 Article  IV Consultation —Press Release; Staff Report ; 
and Statement by the Executive Director for Grenada, May 2022. Viewed at: 
https://www.imf .org/en/Publications/CR/Issues/2022/05/10/Grenada -2022-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-517768 . 
3 IMF Country Report No.  22/134 Grenada 2022 Article  IV Consultation —Press Release; Staff Report; 
and Statement by the Executive Director for Grenada, May 2022. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2022/05/10/Grenada -2022-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-517768 . WT/TPR/S/ 437 • Grenada  
 
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  mainly to external inflationary pressure, in particular a s harp increase in energy and food prices, 
higher shipping costs and supply chain disruptions, inflation accelerated to an annual average of 
1.9%, and was expected to reach 4.5% in 2022, although core inflation is estimated to have 
remained below 1%, due par tly to still weak domestic demand.  
1.10.  As a response to the COVID -19 pandemic, the Government introduced two packages to 
stimulate economic activity, in mid -2020 and in September 2021, comprising a number of measures 
to counter it, including: (i)  an increase i n health expenditure; (ii)  temporary reduction in fuel excise 
taxes by half; (iii)  wage subsidies (temporary payroll support for the hospitality and tourism sectors; 
income support to the transportation sector and other hospitality -based businesses); (iv)  formal 
employment programmes; income support for informal sector workers, support to expand young 
entrepreneur programme; unemployment benefits; (v)  credit support in the form of a small hotel 
lending facility and a small business lending facility, both ru n by the Grenada Development Bank; 
(vi) credit support through a COVID -19 support Fund Facility for MSMEs; a small hoteliers facility; 
and a restructured small business development fund; (vii) price support for farmers, tax deferral, 
and household electric ity bills; and (viii) 9 and Internet connectivity programme. The funds allocated 
to each package were of XCD  60 million , and XCD  36 million , respectively.  
1.1.2   Fiscal policy  
1.11.  During the period under review, Grenada implemented a fiscal consolidation programme 
under the auspices of the IMF. Grenada subscribed and Extended Credit Facility with the Fund in 
June 2014, receiving an amount of SDR 14.04  million (approximately USD  19.4 million ). The IMF 
support programme was aimed at restoring fiscal and external sustainability.4 As a result, Grenada 
established fiscal rules to reduce the deficit as well as public debt.  
1.12.  The Fiscal Responsibility Act 2015 established fiscal rules to eff ectively reduce the deficit while 
allowing some space for counter -cyclical fiscal policy. The fiscal rules consist of a medium -term debt 
ceiling and three operational rules. They aim at achieving a public debt (ceiling) of 55% of GDP. If 
debt is above 55% of GDP, a primary balance surplus of at least 3.5% of GDP should be achieved, 
primary expenditure should grow at a maximum rate of 2% year -on-year in real terms, and the 
(public sector) wage bill should not exceed 9% of GDP. If public debt is below or at 5 5% of GDP, the 
primary balance should be at a debt -stabilizing level. These goals can be suspended in the face of a 
severe adverse shock. In the IMF's assessment, Grenada 's fiscal rules are the cornerstone of its 
fiscal policy framework and have contributed to the Government 's prudent fiscal management.5 
1.13.  Upon the introduction of Fiscal Responsibility Act 2015, which entered into force on 
1 January  2016, the Government init iated a number of structural reforms to enhance spending 
discipline and strengthen its fiscal position. The structural reforms include measures to increase 
revenue such as increasing rates of taxes and charges and improving revenue collection through the 
introduction of the Tax Administration Act 2016.6 Also, the Government reformed the incentive 
schemes, adopting a new incentive scheme on 1  May 2016 (Section  3.3.1).  
1.14.  As the Grenadian economy grew robustly during the review period (before 2020), and 
reflect ing the measures applied, the primary balance remained in surplus throughout the 2015 -19 
period, increasing from XCD  56.5 million (equivalent to 2.1% of GDP) in 2015 to XCD  222.8  million 
(6.8% of GDP) in 2019 (Table  1.2). Correspondingly, public debt as a share of GDP decreased from 
90.1% to 58.5% for the same period, almost reaching the 55% goal. This gave the Government 
some fiscal space to address future challenges.  
 
4 In 2013, the public debt reached its peak, equivalent to 107% of GDP; while the current account 
deficit also stood at the highest, equivalent to 23.2% of GDP.  
5 IMF Country Report No.  22/134 Grenada 2022 Article  IV Consultation —Press Release; Staff Report; 
and Statement by the Executive Director for Grenada, May 2022. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2022/05/10/Grenada -2022-Article -IV-Consultatio n-Press -
Release -Staff-Report -and-Statement -by-the-517768 . 
6 The Tax Administration Act 2016 entered into force on 1  May 2016.  WT/TPR/S/ 437 • Grenada  
 
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  Table  1.2 Central Government fiscal accoun ts, 2015 -21 
(% of current GDP)   
2015  2016  2017  2018  2019  2020  2021  
GDP (current XCD  million)  2,692  2,866  3,039  3,150  3,276  2,817  3,032  
Current Revenue  21.2 22.7 23.0 24.0 23.7 24.5 23.5 
Tax Revenue  19.7 21.5 22.0 23.0 22.5 22.8 20.9 
Taxes on Goods and Services  8.6 9.1 9.3 9.4 9.2 9.3 8.7 
Of which:  Sales tax  0.7 0.6 0.6 0.6 0.6 0.7 0.6 
Stamp duties  0.2 0.3 0.2 0.2 0.2 0.1 0.1 
Value added tax  7.3 7.6 7.8 7.9 7.7 7.7 7.3 
Taxes on Income and Profits  3.8 4.4 4.6 4.9 4.6 4.8 3.9 
Of which:  Personal Income Tax  2.0 2.1 2.0 2.0 2.2 2.3 2.1 
Taxes on Property  0.9 0.8 0.8 0.9 1.2 1.2 0.9 
Taxes on International Trade and 
Transactions  6.4 7.1 7.3 7.7 7.5 7.5 7.3 
Of which:  Customs service charge  1.7 1.7 1.8 2.0 1.9 1.8 2.0 
Import Duty  2.3 2.4 2.5 2.7 2.6 2.6 2.7 
Non-tax Revenue  1.5 1.2 1.0 1.0 1.2 1.7 2.6 
Of which:  Citizenship by Investment  0.6 0.1 0.2 0.1 0.2 0.6 1.0 
Capital Revenue  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Grants  3.2 3.5 2.6 3.0 2.9 3.7 7.3 
Current Expenditure  17.3 19.7 19.9 19.3 19.0 23.1 22.3 
Goods and Services  2.8 4.1 4.2 4.1 4.1 4.7 4.9 
Interest Payments  3.3 2.9 2.7 2.0 1.9 2.0 1.9 
Domestic Interest Payments  1.1 0.8 0.7 0.6 0.5 0.5 0.5 
External Interest Payments  2.3 2.1 2.0 1.4 1.4 1.4 1.3 
Personal Emoluments  8.0 8.8 8.7 8.4 8.1 9.8 10.1 
Transfers and Subsidies  3.2 4.0 4.4 4.8 5.0 6.6 5.4 
Capital Expenditure  8.3 4.2 2.7 2.8 2.6 9.6 8.7 
Capital Expenditure and Net Lending  8.3 4.7 2.7 2.8 2.6 9.6 8.7 
Current Account Balance  3.9 3.0 3.1 4.7 4.7 1.4 1.1 
Primary Balance (after grants)  2.1 4.7 5.7 6.9 6.8 -2.6 1.7 
Overall Balance (after grants)  -1.2 1.8 3.0 4.9 5.0 -4.5 -0.2 
Total financing  1.2 -1.8 -3.0 -4.9 -5.0 4.5 0.2 
Domestic financing  -3.8 -1.4 -1.5 -3.0 -5.2 1.2 -1.9 
Commercial fanks  -1.4 0.3 -2.5 -0.4 -0.6 -2.5 -1.0 
ECCB  -1.7 0.0 0.5 -2.1 0.0 2.6 -1.9 
Other  -0.7 -1.6 0.5 -0.4 -4.5 1.1 1.0 
External Financing  3.3 -0.6 -1.5 -2.0 0.2 3.3 2.1 
Arrears  1.7 0.1 0.0 0.0 0.0 0.0 0.0 
Domestic Arrears  0.0 0.1 0.0 0.0 0.0 0.0 0.0 
External Arrears  1.7 0.1 0.0 0.0 0.0 0.0 0.0 
Source:  Eastern Caribbean Central Bank (ECCB).  
1.15.  During the pandemic, the accumulated fiscal space under the rules allowed for a fiscal 
response by the Government. As mentioned above, facing the challenges posed by the COVID -19, 
the Government in March 2020 announced a temporary (effective from April to June 2020) stimulus 
package, which included income and payroll support; hotel and small business support; an electricity 
subsidy; agriculture support; and health -related spending. The rapid policy response helped mitigate 
the pandemic's impact and preserved foreign exchange earning industries. As the packages cost the 
Government XCD  60 million (equivalent to 2.1% of GDP) in 2020 and XCD  36 million (1.2% of GDP) 
in 2021, the debt -to-GDP ratio sharply increased, by almost 13  percentage points, reaching 71.4% 
in 2020 (up from 58.5% in 2019). As the economy gradually recovered, the public debt as a share 
of GDP is expected to decline, and to reach pre -pandemic levels in 2025.  
1.16.  International t rade was a major contributor to the increase in the Government revenue during 
the review period. Customs duties and Customs Services Charges together, as direct revenues from WT/TPR/S/ 437 • Grenada  
 
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  trade, accounted for around one third of total tax revenue. Revenue from the valu e added tax (VAT) 
accounted for another third of total revenue (Table  1.2). Given the small size of domestic production, 
the VAT falls mainly on merchandise imports and tourism exports.  
1.1.3   Balance of payments, monetary and exchange rate policy  
1.17.  Grenada, like all other OECS -WTO Members is a member of the Eastern Caribbean Currency 
Union (ECCU). The Eastern Caribbean Central Bank (ECCB), based in S aint Kitts, is the monetary 
authority for the ECCU. The ECCB is responsible for OECS monetary, credit, and exchange rate 
policies. The ECCB Agreement Act states that monetary stability, money and capital market 
development, and real sector development are objectives to be attained, in that order of preference.  
1.18.  Monetary stability has been p ursued through a fixed exchange rate regime, which pegs the 
EC dollar to the US dollar at a rate of XCD  2.70 per USD  1. Movements in the XCD real effective 
exchange rate are related largely to changes in the value of the USD  vis-à-vis other major 
currencie s. The money supply is virtually endogenous due to the existence of a quasi -currency board.  
1.19.  After declining by 1.2% in 2020, broad money liabilities (M2) rose by 8.5% in 2021.  
1.20.  During the review period, Grenada's current account balance remained in deficit.  As a 
percentage of GDP, the deficit was widened from 12.5% in 2015 to 26.2% in 2021. The current 
account deficit noticeably deteriorated in 2020 and 2021, due to a fall in income from exports, 
particularly tourism receipts, and, from 2021 onwards, a large r import bill reflecting the hike in 
energy and food prices.  
1.21.  Grenada is a net importer of goods but a net exporter of services. Grenadian merchandise 
exports, were generally between USD  38 million  and USD  48 million in each year during the review 
period (e xcept a decline to USD  28.6 million in 2020); while the import bill for goods in 2021 stood 
at USD  405 million, up from USD  307 million in 2015. Before the COVID -19 pandemic, Grenada had 
a services trade surplus of USD  304 million (2019); in 2021 this surp lus shrank to USD  100 million 
(Table  1.3). 
Table  1.3 Balance of payments, 2015 -21 
(USD  million)   
2015  2016  2017  2018  2019a 2020a 2021b 
1. Current account  -124.7  -117.3  -162.5  -188.0  -177.0  -219.6  -293.8  
1.A Goods and services  3.7 -4.7 -37.6 -63.5 -65.5 -165.6  -256.5  
1.A.a Goods  -263.4  -269.2  -328.5  -365.4  -369.7  -317.2  -356.5  
Exports  43.7 38.5 41.3 45.5 47.9 28.6 48.8 
Imports  307.1  307.7  369.9  410.9  417.7  345.8  405.3  
1.A.b Services  267.1  264.5  291.0  301.8  304.2  151.7  100.0  
Exports  467.1  486.2  536.8  575.8  613.8  393.3  345.0  
Imports  200.0  221.8  245.9  273.9  309.6  241.6  245.0  
1.B Primary income  -116.9  -97.0 -121.6  -114.5  -115.9  -72.5 -66.0 
1.B.1 Compensation of 
employees  -29.9 -30.0 -33.6 -34.0 -35.0 -33.9 -35.7 
1.B.2 Investment income  -87.1 -67.0 -88.0 -80.5 -80.8 -38.6 -30.3 
1.B.2.1 Direct investment  -67.1 -50.0 -74.6 -71.0 -76.6 -35.3 -29.5 
1.B.2.2 Portfolio investment  -12.2 -9.1 -5.4 -1.9 4.9 5.0 6.7 
1.B.2.3 Other investment  -7.8 -7.9 -8.0 -7.7 -9.1 -8.2 -7.5 
1.B.3 Other primary income  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
1.C Secondary income  -11.5 -15.6 -3.3 -9.9 4.4 18.5 28.7 
1.C.1 General government  -4.8 -6.4 -4.0 -5.4 -5.0 -1.6 10.0 
1.C.2 Financial corporations, 
nonfinancial corporations, 
households, and NPISHs  -6.6 -9.2 0.7 -4.5 9.4 20.2 18.7 
1.C.3 Adjustment for change 
in pension entitlements  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
2. Capital account  32.4 49.7 66.9 69.0 62.0 78.7 125.4  
2.2 Capital transfers  32.4 49.7 66.9 69.0 62.0 78.7 125.4  WT/TPR/S/ 437 • Grenada  
 
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2015  2016  2017  2018  2019a 2020a 2021b 
2.2.1 General government  28.4 27.9 23.9 27.9 28.2 24.2 66.9 
2.2.2 Financial corporations, 
nonfinancial corporations, 
households, and NPISHs  4.0 21.7 43.0 41.1 33.8 54.4 58.5 
Net lending (+) / net 
borrowing ( -) (balance from 
current and capital account)  -92.3 -67.7 -95.6 -119.0  -114.9  -140.9  -168.3  
3. Financial account  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Net lending (+) / net 
borrowing ( -) (balance from 
financial account)  -60.6 -23.4 -84.9 -82.3 -80.3 -71.1 -151.2  
 3.1 Direct investment  -137.4  -93.2 -152.2  -166.0  -178.2  -149.3  -149.8  
3.2 Portfolio investment  66.0 70.2 61.7 45.5 24.4 -14.5 7.9 
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  -17.8 -10.5 14.5 3.4 71.0 35.8 -64.6 
3.4.2 Currency and deposits  27.9 -0.7 18.8 14.0 38.6 82.5 17.6 
3.4.3 Loans  -18.3 2.7 12.1 -12.2 29.3 -36.2 -65.5 
3.4.4 Insurance, pension, and 
standardized guarantee 
schemes  1.3 -0.5 0.5 -2.7 2.2 -1.1 -1.1 
3.4.5 Trade credit and 
advances  -16.2 -7.5 -13.9 0.6 -0.8 -1.7 -0.2 
3.4.6 Other accounts 
receivable/payable  -12.6 -4.5 -3.0 3.7 1.6 -7.7 6.7 
3.4.7 Special drawing rights 
(Net incurrence of liabilities)  0.0 0.0 0.0 0.0 0.0 0.0 22.4 
3.5 Reserve assets  28.6 10.1 -8.9 34.8 2.5 56.9 55.3 
3.5.2 Special drawing rights  -1.7 -4.4 -2.4 -1.2 -0.8 0.2 22.1 
3.5.3 Reserve position in the 
IMF 0.0 1.6 0.0 0.0 0.0 0.0 0.0 
3.5.4 Other reserve assets  30.3 12.9 -6.5 36.0 3.3 56.7 33.3 
Net errors and omissions  31.7 44.2 10.7 36.7 34.6 69.8 17.2 
Current account as a share of 
GDP (%)  -12.5 -11.0 -14.4 -16.1 -14.6 -21.0 -26.2 
a Preliminary data.  
b Estimates.  
Source:  Eastern Caribbean Central Bank (ECCB).  
1.22.  The current account deficit was financed by robust FDI flows (including from the Citizenship  
by Investment programme) and governmental gran t transfer from abroad (Table  1.3). 
1.2  Trends and patterns in merchandise and services trade  
1.23.  In terms of merchandise trade, Grenada is a net importer. More than half of merchandise 
exports in 2021 were fruits and fish. During the review period, exports of agro -processed goods, in 
particular beverages, increased significantly, reaching a value of U SD 16 million in 2021, up from 
USD 2.5 million in 2014. Beverages and tobacco accounted for 16% of total merchandise exports in 
2021 (Chart  1.1). 
1.24.  Food and fuels are the largest merchandise import items, followed by machinery and transport 
equipment, and ma nufactured goods. Grenada imposes high duties, taxes, and surcharges on 
imports of fuels and transport equipment (Section  3.1.3 and 3.1.4).  WT/TPR/S/ 437 • Grenada  
 
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  Chart  1.1 Merchandise trade by main SITC sections, 2014 and 2021  
 
Source: WTO Secretariat calculations, based on ECCB statistics.  
1.25.  Grenada is a net exporter of services. Travel services, which in the case of Grenada includes 
private education, is the largest foreign exchange earner. Before the COVID -19 pandemic, travel 
services accounted for 90% of services exports each year (equivalent to 40% of GDP); this share 
declined to 46% in 2020. As the COVID -related restrictions eased, travel -related services rebounded 
to 67% of Grenadian services exports in 2021 (Table  1.4). Air tr ansport receipts maintained a stable 
flow of income of around USD  13 million each year before the pandemic; after the pandemic, this 
income dropped to USD  4 million a year in 2020 and 2021.  
Chart 1.1
Merchandise trade by main SITC sections, 2014 and 2021
2014 2021
Exports
Total: USD 37 million
Imports
Total: USD 340 million Total: USD 450 million
Source:   WTO Secretariat calculations, based on ECCB statistics.Total: USD 29 millionOther
0.2%
Beverages & 
tobacco
3.1%Other
0.3%
Chemical 
products
7.2%Machinery & 
transport 
equipment
7.5%
Mineral fuels
25.9%Misc. 
manuf.
9.9%
Machinery & 
transport 
equipment
16.0%Other
0.5%
Chemical 
products
9.2%Misc. manuf.
12.2%
Machinery & 
transport 
equipment
19.3%Other
0.5%
Crude materials 
(except fuels)
2.0%
Mineral fuels
15.2%Machinery & 
transport 
equipment
10.1%
Chemical 
products
4.4%Chemical 
products
4.5%Manufactured 
goods
8.8%Misc. 
manuf.
3.3%
Manufactured 
goods
17.0%Food & live 
animals
70.1%Manufactured 
goods
9.0%
Food & live 
animals
60.8%Beverages & 
tobacco
15.9%Misc. 
manuf.
2.0%
Food & live 
animals
22.8%Food & live 
animals
20.9%
Beverages & 
tobacco
2.6%Beverages & 
tobacco
2.4%
Manufactured 
good
13.0%Crude 
materials 
(except fuels)
3.3%WT/TPR/S/ 437 • Grenada  
 
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  1.26.  Technical , trade-related and other business services became the second largest service export 
in 2016. This trend reflects the growth of business operation services, such as call centre businesses; 
these services grew steadily during the review period, reaching USD  20 million in 2021, up from 
USD 9.7 million in 2015, a nd do not appear to have been affected much by the pandemic.  
Table  1.4 Trade in services, 2015 -21 
(USD  million)   
2015  2016  2017  2018  2019a 2020a 2021b 
Services trade balance  267.1  264.5  291.0  301.8  304.2  151.7  100.0  
Exports of services  467.1  486.2  536.8  575.8  613.8  393.3  345.0  
Transportation  15.9 14.7 14.6 16.4 15.9 6.0 5.4 
Sea transport  1.8 2.2 2.0 2.1 2.1 1.6 1.1 
Air transport  13.4 12.0 12.0 13.2 13.4 4.0 3.9 
Postal and courier services  0.6 0.6 0.6 1.1 0.4 0.4 0.4 
Travel  421.6  437.4  482.0  521.9  561.8  181.2  230.5  
Insurance services  5.5 7.4 5.9 6.0 3.9 5.2 5.7 
Direct insurance  4.0 5.4 4.3 4.3 2.4 2.7 3.0 
Auxiliary insurance services  1.5 2.0 1.7 1.7 1.5 2.5 2.8 
Financial services  0.4 0.4 0.5 0.7 1.9 1.5 1.6 
Telecommunications, computer , and 
information services (Combined)  9.2 9.3 7.9 5.9 5.7 5.5 5.7 
Other business services  10.4 13.7 22.8 22.6 21.2 19.0 20.4 
Professional and management 
consulting services  0.7 0.9 1.2 1.0 0.7 0.4 0.4 
Technical , trade -related , and other 
business services  9.7 12.8 21.6 21.6 20.5 18.6 20.0 
Personal, cultural, and recreational 
services  0.0 0.0 0.0 0.0 0.0 171.4  73.7 
Government services, n.i.e.  4.0 3.2 3.1 2.3 3.4 3.4 2.0 
Embassies and consulates  1.9 2.0 1.3 1.1 0.4 0.4 0.4 
Other government services  2.1 1.3 1.8 1.2 3.0 3.0 1.5 
Imports of services  200.0  221.8  245.9  273.9  309.6  241.6  245.0  
Transportation  55.3 54.3 58.4 65.8 77.0 46.8 54.1 
Sea transport  34.9 35.1 42.0 46.7 47.5 39.3 46.1 
Air transport  20.3 19.1 16.4 19.0 29.4 7.4 8.0 
Passenger  19.8 18.5 15.7 18.0 28.2 6.8 7.3 
Freight  0.1 0.2 0.2 0.6 0.7 0.5 0.5 
Other  0.4 0.4 0.5 0.5 0.5 0.2 0.2 
Postal and courier services  0.1 0.1 0.0 0.1 0.1 0.0 0.0 
Travel  20.0 21.2 22.5 23.6 24.2 7.2 7.8 
Construction services  5.4 6.6 5.5 9.8 12.0 11.0 8.8 
Construction in the compiling 
economy  5.4 6.6 5.5 9.8 12.0 11.0 8.8 
Insurance services  11.5 13.9 15.3 18.2 18.4 17.3 19.4 
Direct insurance  8.1 9.1 10.7 12.4 12.5 11.0 12.6 
Reinsurance  2.5 2.9 2.9 3.5 3.6 4.0 4.3 
Auxiliary insurance services  1.0 1.9 1.7 2.2 2.4 2.4 2.6 
Financial services  20.1 24.9 36.1 42.3 55.8 47.3 40.7 
Charges for use of intellectual 
property  9.4 9.9 8.8 12.2 13.7 11.2 12.0 
Telecommunications, computer , and 
information services (Combined)  3.7 3.5 3.6 3.2 2.9 5.0 5.4 
Other business services  72.3 85.6 93.3 95.9 101.6  91.7 92.6 
Professional and management 
consulting services  18.5 22.4 24.8 26.4 27.3 22.3 23.9 
Technical , trade -related , and other 
business services  53.9 63.2 68.5 69.5 74.4 69.5 68.7 
Government services, n.i.e.  2.2 1.8 2.3 2.9 4.0 4.0 4.3 WT/TPR/S/ 437 • Grenada  
 
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2015  2016  2017  2018  2019a 2020a 2021b 
Embassies and consulates  1.5 1.5 2.1 2.5 3.8 3.8 4.1 
Other government services  0.7 0.3 0.2 0.3 0.2 0.2 0.2 
a Preliminary data.  
b Estimates.  
Source:  Eastern Caribbean Central Bank (ECCB).  
1.27.  With respect to services imports, technical , trade-related and other business services are the 
largest item. This partly reflects engineering and architectural services needed to implement disaster 
recovery projects such as rebuilding the houses that were destroyed by hurricanes. Other items of 
importance are sea transport and financial services, which accounted for some 20% of Grenadian 
services imports each year during the review period.  
1.28.  Reflecting that Grenada does not have merchant marine, nor a national air carrier, majority 
of goods imports and  exports were carried by sea, costing USD  41 million each year on average. 
Most people in and out of the country travelled by air; air transport also carried some perishable or 
high value -added cargos (Table  1.4). 
 WT/TPR/S/ 437 • Grenada  
 
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2  TRADE AND INVESTMENT REGIMES  
2.1  General framework  
2.1.  Grenada is a parliamentary democracy closely modelled on the Westminster model. The Head 
of State is the British Monarch, represented in Grenada by a Governor General, appointed on the 
recommendation of the Prime Minister after consultation with the Leader of the Opposition. Under 
the Constitution, the Governor General enjoys residuary powers tha t include the appointment of the 
Prime Minister and Cabinet of Ministers, and the dissolution and prorogation of Parliament.  
2.2.  Executive authority is vested in the Government led by the Prime Minister (PM) and his/her 
Cabinet. The appointment of the Prime Mi nister by the Governor General is generally done on the 
basis on the that he or she appears to command the majority of the support of the House of 
Representatives. The Prime Minister has exclusive authority to nominate elected members of his 
party to minis terial posts, although the Governor General makes such appointments, acting on PM's 
advice. The Cabinet is collectively responsible to Parliament for advice to the Governor General. The 
current Governor General was appointed in May 2013, and the Prime Mini ster assumed his office in 
June 2022.  
2.3.  The legislative branch is composed of a Senate and a House of Representatives. The Senate 
consists of 13 members appointed by the Governor General. Of the 13 senators, 7 are appointed on 
the advice of the Prime Ministe r; three on the advice of the Leader of the Opposition, and three on 
the advice of the Prime Minister, after consultation with organizations or interests groups that the 
PM considers should be represented. The House of Representatives consists of 15 member s directly 
elected for a five -year term through a simple majority or first -past-the-post system.7 Grenada's last 
elections were held in March 2018, and the next election is expected to be held in 2023.  
2.4.  The judicial system is independent, and has four leve ls. At the lowest level, Magistrates Courts 
deal with routine matters, minor civil and criminal cases. Appeals may be brought to the Magisterial 
Court of Appeals or the High Court, which also deals with more serious cases. If necessary, appeals 
may be take n to the Eastern Caribbean Supreme Court, an itinerant court, based in Saint  Lucia 
(Common  Report). Grenada is party to the Agreement Establishing the Caribbean Court of Justice, 
a regional court with both original and exclusive jurisdiction for interpreti ng provisions of the Revised 
Treaty of Chaguaramas 2001, and appellate jurisdiction for municipal appeals from the member 
states. However, it has not made the required constitutional modifications to make its appellate 
jurisdiction the final court of appea l.8 The court of last resort remains the Judicial Committee of the 
Privy Council (in London).  
2.5.  The Constitution is the supreme law in Grenada.9 International agreements have no direct 
effect: they must be incorporated into domestic law before they may be invoked before the courts. 
Bills are normally introduced in the House, usually by a senior Minister. After passage in both 
chambers of Parliament, bills must receive the assent of the Governor General; they become law 
upon publication in the Government Gaz ette. Parliamentary Acts and Statutory Rules & Orders that 
were passed after 2011 are made available online by the Ministry of Legal Affairs, Labour and 
Consumer Affairs.10 
2.6.  Although most trade negotiations are usually handled by the minister responsible fo r trade, 
Cabinet has ultimate responsibility for authorizing the conclusion and signing of trade treaties and 
trade-related agreements. Once the negotiation of an international agreement is concluded, the 
Cabinet will approve or reject the agreement. When an international agreement is accepted by the 
Cabinet, the line ministry begins to prepare bills for Parliament to transpose its international 
obligations into domestic provisions.  
 
7 Either chamber may initiate or amend legislation. However, the initiation of legislation related to public 
finances is subject t o the Prime Minister's consent.  
8 A revision of the Constitution is currently under way. Changes include the form of Government 
(republican versus constitutional monarchy) and the accession to the Caribbean Court of Justice as the final 
appellate court. Vi ewed at: http://www.gov.gd/egov/docs/budget_speech/Budget_Speech_2013.pdf .  
9 The Grenada Constitution Order 1973.  
10 Laws of Grenada. Viewed at: https://laws.gov.gd/ .  WT/TPR/S/ 437 • Grenada  
 
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  2.2  Trade policy formulation and objectives  
2.7.  The ultimate goal of Grenada's trad e policy is to contribute to a sustained economic goal and 
poverty reduction. This goal is pursued through the following objectives: fostering export -led 
economic growth; improving the competitiveness of the manufacturing sector; achieving 
diversification in the agriculture sector; developing an internationally competitive services sector; 
gaining greater market access for exports, especially from non -traditional sectors such as 
agro-processed goods, and identifying niche markets in order to maximize value added.  
2.8.  Grenada sees the negotiation of multilateral, regional, and bilateral trade agreements as a 
means of securing its trade interests and enhancing its trade performance. Within the framework of 
the Economic Partnership Agreement with the European  Union , Grenada's focus is to enable the 
private sector to take advantage of market opportunities, both in the CARIFORUM area and in 
Europe. Most businesses in Grenada are, in general, individually run or small scale, and this hinders 
their ability to compete ou tside the country and target large markets. The Government aims at 
giving them incentives to form clusters and team up on markets to develop economies of scale and 
be able to compete more efficiently. Specific actions include: helping entrepreneurs to prep are 
projects to access funds to improve their businesses; putting in place a legislative framework to 
facilitate investments; ensuring that exports meet the required standards; and further developing 
the services sector.  
2.9.  The Ministry of Foreign Affairs, Tr ade and Export Development is responsible for trade policy 
formulation, trade negotiations, and monitoring trade agreements. Trade negotiations are 
coordinated by the National Trade Policy Committee (NTPC), comprising representatives from 
ministries and de partments involved in trade policy, as well as the private sector and civil society. 
There are regular consultations among the various stakeholders in the preparation and formulation 
of trade policy.  
2.10.  A Strategic Development Plan, Vision 2030 was announced on 26  November  2014. In this 
Plan, Grenada identified six strategic priorities to pursue, including: to enhance government; to 
foster a competitive private sector; to improve infrastructure; to stimulate innovation; to fight 
against climate change; and to build a caring society.  
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.11.  Grenada was a contracting party of the GATT, and has been a WTO Member since 
22 February  1996. In the WTO, Grenada, 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. Grenada is also member of the ACP group, the G -90, 
the G -33 and the group of "W52" sponsors.11 
2.12.  During the review period, Grenada submitted  22 notifications to the WTO, covering the repeal 
of its subsidies programme; its import licensing regime; the absence of anti -dumping measures; the 
activities of its State Trading Enterprises; and technical regulations (Table  2.1). Grenada also 
submitted a number of addenda and supplements, providing additional information to the notified 
measures. It appears that notifications in some areas are completely missing from Grenada, in 
particular in the areas of quantitative restrictions, sanitary and phytosani tary (SPS)  measures, 
agriculture domestic support measures, and agriculture export subsidies.  
Table  2.1 Notifications to the WTO, 2014 –22 
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  
 
11 WTO online information. Viewed at: 
http://www.wto.org/english/tratop_e/dda_e/negotiating_groups_e.htm . WT/TPR/S/ 437 • Grenada  
 
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  Topic and description  Document symbol  Document date  
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  
Agreement on Subsidies and Countervailing Measures  
Notification and extension of the transition period for the 
elimination of export subsidies  G/SCM/N/284/GRD  
G/SCM/N/299/GRD  
G/SCM/N/315/GRD  21/04/2017  
Notification and extension of the transition period for the 
elimination of expo rt subsidies  G/SCM/N/275/GRD  21/8/2014  
Agreement on Trade Facilitation    
Notification of Category A commitments  WT/PCTF/N/GRD/1  12/06/2015  
Notification of Category commitments  G/TFA/N/GRD/1  30/10/2018  
Notification of Category C commitments  G/TFA/N/ GRD/1/Add.1  22/08/2019  
Notifications on detail contact points for exchange of 
information  G/TFA/N/GRD/2  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/GRD/3  07/08/2019  
Technical Barriers to Trade    
- Labelling of toys and playthings  G/TBT/N/GRD/17  12/05/2014  
- Rice G/TBT/N/GRD/18  18/09/2017  
- Labelling of all prepackaged foods  G/TBT/N/GRD/19  20/03/2018  
- Labelling of retail packages of tobacco products  G/TBT/N/GRD/20  23/11/2018  
- Pneumatic passenger tyres  G/TBT/N/GRD/21  20/09/2019  
- Hollow concrete blocks  G/TBT/N/GRD/22  20/09/2019  
- Packaged water  G/TBT/N/GRD/23  07/11/2019  
- Wet seasoning  G/TBT/ N/GRD/24  09/12/2019  
- Labelling of brewed products  G/TBT/N/GRD/25  09/12/2019  
- Brewed products  G/TBT/N/GRD/26  09/12/2019  
- Labelling of goods - general requirements  G/TBT/N/GRD/27  09/12/2019  
- Labelling of goods - specific requirements for prepackaged 
goods  G/TBT/N/GRD/28  09/12/2019  
- Labels of electrical appliances  G/TBT/N/GRD/29  09/09/2020  
- Pneumatic tyres for commercial vehicles  G/TBT/N/GRD/30  09/09/2020  
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 
Agreemen t (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.  
2.13.  Grenada has not been a complainant or defendant in any cas e before the Dispute Settlement 
Body. Grenada joined the European  Communities – Regime for the Importation, Sale and 
Distribution of Bananas  as a third party.12 
2.3.2   Regional and p referential agreements  
2.14.  Grenada is a founding member of the Organisation  of Easte rn Caribbean States (OECS). In 
2011, Grenada ratified the Revised Treaty of Basseterre Establishing the Organisation  of Eastern 
Caribbean States Economic Union, and is currently in the process of adapting legislation to fulfil the 
 
12 A mutually agreed solution was notif ied to the Dispute Settlement Body in November 2012. See 
WTO online information. Viewed at: http://www.wto.org/English/tratop_e/dispu_e/cases_e/ds 27_e.htm . WT/TPR/S/ 437 • Grenada  
 
- 185 - 
 
  requirements of the Union . The goal is to reach a point where all policies will be common within the 
OECS, and economies of scale are achieved by avoiding a duplication of functions.  
2.15.  Grenada has been a member of the Caribbean Community and Common Market (CARICOM) 
since its indepen dence in 1974. Through the CARICOM, Grenada is party to the Caribbean Basin 
Initiative (1993), the CARIFORUM –EC Economic Partnership Agreement (2008), and the agreements 
between CARICOM and the Bolivarian Republic of Venezuela (1992), Colombia (1994), Cuba  (2000), 
Dominican  Republic (2001), and Costa  Rica (2004), respectively. As part of the CARICOM, Grenada 
is involved in the negotiation of a new trade and development agreement with Canada.  
2.16.  The Economic Partnership Agreement (EPA) between the United  Kingdo m and CARIFORUM 
States was signed on 22  March  2019 and notified to the WTO on 31  December  2020. Covering goods 
and services, the EPA entered into force on 1  January  2021 in Grenada. The provisions of the 
agreement and the negotiated schedule closely follow  commitments of the already existing 
EU-CARIFORUM EPA.  
2.17.  Grenada is eligible for the GSP schemes of Canada, Japan, New  Zealand, the 
Russian  Federation, Switzerland, Türkiye, and the United  States.13 
2.4  Investment regime  
2.18.  Foreign or local individuals wishing to establish a business in Grenada have various options: 
sole proprietorships; partnerships; corporations; joint ventures; and branches of foreign 
corporations.  Companies are required to register with the Register of Companies at the Corporate 
Affairs and Intellectual Property Office (CAIPO). Sole proprietorships and partnerships that trade 
under a name other than that of one of the owners must register with the Registrar of the Supreme 
Court. There is no requirement for an annual business licence. Foreign companies must appoint a 
solicitor resident in Grenada to handle the formation and registration of a company.  
2.19.  In general, foreign investment in Grenada is not subject to any restrictions, and foreign 
investors receive national treatment. OECS citiz ens are granted rights of establishment as nationals. 
Investors from other countries are required to obtain alien landholding licences to invest in 
property14, and a work permit to gain employment. All fields of lawful economic activity are open to 
foreign  investors, with the exception of some small -scale and low -technology services activities, 
especially in areas where there is local capacity. These include retail and distribution trade, taxi and 
self-drive services, restaurants and catering, night clubs, hair-dressing, laundry and dry cleaning, 
movie houses, travel agencies, and real estate agencies. Certain types of light manufacturing are 
also reserved for nationals.  
2.20.  Foreign investors are allowed to repatriate 100% of profits.15 There is no tax on capita l gains. 
Businesses are liable for domestic taxes such as corporate income tax and property tax. The 
corporate income tax rate is now 28%, compared to 30% previously. Grenada maintains a 
withholding tax at 15% for non -resident payable on salaries, rent, ro yalties, fees and commissions, 
and non -bank deposit interests (Table  2.2). 
 
13 Other qualifyin g members in the CARICOM region are: Belize, Dominica, Guyana, Jamaica, 
Montserrat, S aint Kitts and Nevis, Saint  Lucia, and Saint Vincent and the Grenadines. These countries are 
treated as one for GSP rule -of-origin requirements.  
14 The cost of landholding licence is 10% of the value of the land or interest in the real estate or shares 
to be purchased.  
15 Enterprises are guaranteed against expropriation (except in accordance with the Constitution), and 
guaranteed of the right to transfer overseas net profits or dividends, royalties and fees, or the proceeds in the 
event of the sale or liquidation of the en terprise.  WT/TPR/S/ 437 • Grenada  
 
- 186 - 
 
  Table  2.2 Summary of taxes and mandatory contribution in Grenada , 2022  
Tax or mandatory 
contribution  Rate  Tax base  Comments  
Corporate income tax  28% All profits   
Personal income tax  15% (XCD  36,000 - 
XCD 60,000); 28% 
(XCD 60,000 and 
above)   Profit/salary in excess of 
XCD 36,000   
Withholding tax  
(non-residents only)  15% (applied upon 
repatriation)  
15% on Lottery 
winnings  Revenue earned   
Stamp tax  0%, 0.25% or 0.5% 
(depending on sales)  Gross sales receipts   
Customs duties (CET)  0%-40% c.i.f. value of extra -
CARICOM imports   
Customs service charge  
 6% c.i.f. value of imports   
Excise Tax  
    
Social security 
contributions  Employer: 5%  
Employee: 6%  
Sole proprietors: 11%  Gross salaries  Subject to an annual cap 
of XCD  3,500  
Property transfer tax 
(lands, real estates, 
companies, etc .)  Citizens: 5% (seller)  
Non-citizens:  
10% (buyer)  
15% (seller)  Sale price minus 
XCD 20,000  Real estate valued 
XCD 20,000 or less  
Property tax  Land: 0% - 0.2%;  
Buildings: 0% - 0.3%; 
(depending on use)  Market value of the 
property  
Exemption on first 
XCD 100,000.   
Tax on cheque 
transactions  XCD 0.01 per cheque   
VAT 0%, 10% or 15%  Imports: c.i.f.+ duties 
and taxes  
Domestic goods and 
supplies: value 
receivable  Rates contained in 
Schedule IV and V of the 
Value Added Tax Act 
2009  
Environmental levy  Specific, or between 
1% and 30%  c.i.f. value of imports   
Source:  Information provided by the authorities.  
2.21.  The Grenada Investment Development Corporation (GIDC ) is the primary agency responsible 
for investment promotion. It aims at attracting new FDI, and at promoting and facilitating the growth 
and development of businesses, in particular small businesses. Grenada welcomes any investment 
likely to have positive  effects on income, employment, skills development, energy savings, and 
foreign exchange earnings, or likely to promote technology transfers domestically.  
2.22.  On 1 May 2016, Grenada adopted a new investment incentive regime (Section  3.3.1). Under 
the new regim e, there are 10 sectors eligible for incentives: tourism (including tourism 
accommodation, tourism services); manufacturing; agriculture and agri -business; information 
technology service, telecommunication providers and BPO operations; education and traini ng; health 
and wellness; medical services; sports; creative industries; and energy. Incentives granted are 
almost identical for these 10 sectors, except that the withholding tax is waived only for investment 
in tourism accommodation and health and wellness , and that the reduction in the Customs Service 
Charge is only available to investment in manufacturing. GIDC is responsible for administering this 
incentive programme. Incentives are granted on a case -by-case basis.  
2.23.  In 2013, the Government re -introduced i ts Citizenship  by Investment programme.16 The 
programme allows qualified investors to apply to become a Grenada citizen or a permanent resident 
against an investment of at least USD  350,000 into approved projects, or against a payment of at 
 
16 Grenada Citizenship by Investment Act, 2013. Grenada ran a similar programme between 1997 and 
2001.  WT/TPR/S/ 437 • Grenada  
 
- 187 - 
 
  least USD  200,0 00 to the National Transformation Fund which was established for funding sponsored 
projects including public -private partnerships.17 
2.24.  Grenada has signed bilateral investment treaties with the United  Kingdom and the 
United  States. The treaty with  the United  Kingdom  covers investment in all kind of assets and 
property rights, including intellectual property rights, and concessions to search for or exploit natural 
resources. Investments by nationals or companies of each contracting party are granted nati onal 
treatment in the other country, and are also subject to an MFN engagement. The treaty with the 
United  States covers, in addition to the protection of investment, a non -exhaustive list of five groups 
of specific rights: traditional property rights; rig hts in companies; monetary claims and titles to 
performance associated with an investment; intellectual property rights; and rights conferred by law 
or contract or any licences and permits pursuant to law.  
2.25.  Grenada maintains double -taxation arrangements wit h South  Africa, Switzerland, the 
United  Kingdom, and some CARICOM member states (Antigua and Barbuda, Barbados, Belize, 
Dominica, Guyana, Jamaica, Saint  Kitts and Nevis, Saint  Lucia, Saint  Vincent and the Grenadines, 
and Trinidad and Tobago). Grenada has s igned tax information and exchange agreements (TIEAs) 
with 18 countries, of which 9 are currently in force (Australia, Denmark, Finland, France, Ireland, 
Netherlands, Norway, the United  Kingdom, and the United  States).18 
 
17 Grenada Citizenship by Investment. Viewed at: www.cbi.gov.gd . 
18 The TIEA with the United  States has bee n in force since 1987; all the others were signed more 
recently and entered into force in 2012.  WT/TPR/S/ 437 • Grenada  
 
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3  TRADE POLICIES A ND PRACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  During the review period, Grenada modernized it Customs framework, with an aim to enhance 
entry -point services and revenue collection efficiency. As part of this Customs Reform, the new 
Customs Act (No.  9 of 2015) entered into force on 30  January  2015, repealing the previous Customs 
Act 1960 (as amended by Act No.  19 of 1991). The corresponding Customs Regulation 2018 (SRO  13 
of 2018) al so came into effect on 25  May 2018, replacing the previous Regulation (SRO  17 of 1961).  
3.2.  Grenada ratified the WTO  Agreement on Trade Facilitation (TFA) on 8  December  2015, and has 
submitted to the WTO its notifications on the measures under Categories A, B,  and C. About 73.5% 
of the TFA provisions have been implemented under Category A, while about 6.7% were designated 
under Category B. Eight measures were notified in Category C, and require technical assistance.  
3.3.  The Grenada Customs & Excise Division, under the Ministry of Finance, remains the 
enforcement authority concerning customs matters. The Ministry of Agriculture, the Ministry of 
Health, and the Grenada Bureau of Standards have regular personnel present at the border, 
responsible for enforcing technica l regulations, and sanitary and phytosanitary (SPS) measures. 
There is no formal mechanism established between Customs and stakeholders for consultations on 
formulating/amending Customs -related policies, and procedures. The authorities noted that 
stakehold ers' consultation meetings are called on ad hoc  basis.  
3.4.  All persons may import or export goods to/from Grenada, as long as they complete the 
registration on Customs' computerized system, currently ASYCUDA World, before engaging in an 
import (or export) busi ness.19 ASYCUDA World became fully operational in 2017. According to the 
authorities, traders may refer all Customs -related documents to ASYCUDA World and obtain all 
pertinent legislation, regulations, rules, and decisions, through the system. Those docume nts are 
not available on Customs' website. Traders may also obtain tariff information on ASYCUDA World.  
3.5.  All importation, irrespective of it being of commercial or non -commercial nature20, must be 
declared when entering Grenada. For non -commercial imports w ith a value below XCD  3,000 
(c.i.f.  value), 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 Custom s are the customs entry form (CARICOM 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 permit, a certificate of origin, or a 
concession letter may be required if applicable.  
3.6.  An import declaration must be lodged either in person with Customs at the point of entry, or 
electronically on the ASYCUDA World platform within 48 hours of the shipment's arrival. Submitting 
a pre -arrival d eclaration is encouraged by the authorities; this allows importers to submit the 
declaration up to six hours prior to the cargo arrival.21 The authorities indicated that Customs usually 
takes one business day to process a declaration. Though a number of en forcement agencies are 
connected to ASYCUDA World, there is no Customs single window operating in Grenada.  
3.7.  All imports are subject to Customs inspection based on risk profiling. Risk profiling for imports 
is conducted through ASYCUDA World. Based on their risk profiles, goods may be cleared from 
Customs through one of the four channels: the red channel for high risk goods which requires 
documentary varication and inspection; the yellow channel for medium risk goods, requiring 
additional documentation, and p ossible further inspection of the goods; the green channel, for goods 
 
19 Commercial importers are required to register with the Inland Revenue Division to obtain a Trade 
Identification Number, and a VAT identification number (if ap plicable).  
20 Non-commercial imports include those of personal effects, or of small parcels by post.  
21 In case the bill of lading is not available at the time of submission, a commercial invoice is 
encouraged to be submitted first as part of the pre -arriva l declaration.  WT/TPR/S/ 437 • Grenada  
 
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  deemed risk -free that can be released immediately without document verification nor inspection; 
and the blue channel for goods released immediately but subject to post -clearance control.  
3.8.  Upon the payment of import duties or after a duty guarantee is secured, imports are delivered 
from Customs custody. The authorities notified to the WTO that implementation of a pre -arrival 
processing of duties would require further technical assistance. P erishable goods may be released 
prior to properly submitting a declaration conditional on: (i)  placing a security deposit for any import 
duty and tax liabilities, and (ii)  undertaking to properly declare the imported goods within seven 
days of Customs clea rance.22 The authorities stated that applications for the release of perishable 
goods are approved by the Customs Comptrollers on a case -by-case basis.  
3.9.  There are no legal provisions pertaining to expedite shipments. Pursuant to the Customs 
Act 2015, commercial imp orts by post (i.e. small parcels) are also subject to the same Customs 
control as commercial imports. According to the authorities, the simplified Customs procedure is 
applicable only to non -commercial imports.  
3.10.  There is no Authorized Economic Operator (AEO ) programme in operation. The authorities 
indicated that they are exploring the possibility of developing a scheme similar to the Trust Trader 
Programme operating in neighbouring countries.  
3.11.  There are no legal provisions on advance rulings on matters of cla ssification, origin, valuation, 
and compliance. The authorities indicated that no advance rulings are applicable in practice.  
3.12.  The use of Customs brokers is voluntary. Licen ces to operate as Customs brokers are granted 
by the Customs Comptroller only to Gre nadian or CARICOM citizens. A Customs broker licence is 
valid for a calendar year; it is renewable.  
3.13.  Grenada does not use pre -shipment inspection.  
3.14.  Upon the enactment of the Customs Act 2015, Grenada modernized its legislation on Customs 
valuation. According  to the authorities, the rules and procedures of customs valuation are in 
conformity with the Agreement on Implementation of Article  VII of the GATT  1994. Transaction 
values, generally in terms of c.i.f. prices, are used as basis for customs valuation. The  authorities 
further noted that the minimum price method is no longer used, as was the case in previous reviews.  
3.15.  The Customs Act 2015 provides traders with appeal procedures other than the Courts. Traders 
dissatisfied with a Customs decision may request re consideration to the Comptroller within 
two weeks from the original decision date. In the case of any dispute over import duties between a 
trader and Customs, the protesting trader may appeal to the Comptroller in writing within 30 days 
upon the payment of  a deposit or security; the Comptroller must respond within 30 days to the 
appeal by confirming or adjusting the amount of duty to be due. If the trader remains unsatisfied 
with the Comptroller's reconsideration of a decision, the trader in question may ap peal against such 
decision to the Customs Appeal Commission within 21 days since the decision on reconsideration 
was made. In the case that a party is dissatisfied with a decision of the Commission, the dispute 
may be heard in the High Court for judicial r emedies. The Customs Appeal Commission was 
established in 2018. As of end -September 2022, the majority of disagreements were solved in the 
first instance, a few cases were appealed to Comptroller, and none had reached the Appeal 
Commission, according to th e authorities. As of November 2022, a Customs dispute case was being 
heard before the Hight Court.  
3.1.2   Rules of origin  
3.16.  Grenada maintains preferential rules of origin for goods originated from the CARICOM member 
states; duty -free treatment is accorded only to g oods 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 CARICOM, known as the Safeguard Mechanism.  
 
22 Article  76, the Customs Regulation 2018.  WT/TPR/S/ 437 • Grenada  
 
- 190 - 
 
  3.17.  The EPAs with the European  Union, as well as with the United  Kingdom , contain specific rules 
of origin (Common Report).  
3.18.  Grenada 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   WTO bound tariffs  
3.19.  All tari ff lines in Grenada are bound, at rates ranging between 0% and 200% (Table  3.2). The 
majority of lines under the WTO definition of agriculture are bound at 100%, except a number of 
lines corresponding to fruits (e.g. bananas, pineapples, citrus fruits) and  spices (e.g. cloves, nutmeg, 
mace, ginger, saffron, turmeric), which are bound at 200%. As a result, the simple average rate of 
bound tariffs for agricultural lines is 100.7%. Non -agriculture goods are bound at rates that range 
between 50% and 100%.  
3.1.3.2   Applied MFN tariffs  
3.20.  Grenada offers at least MFN treatment to all trading partners.  
3.21.  Grenada applies the CARICOM Common External Tariff (CET), with exceptions as listed in Lists 
A, C and D of the CET.23 List A, contains items on which suspension of the CET h as 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 agreed showing the actual rates to be applied 
by individual member  States; and List  D, contains two  parts – Part I, listing 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 period; and Part  II, containing 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. With the introduction of the OECS Economic Union in 2011, 
tariff changes are, in principle, under the responsibility of the  OECS Economic Affairs Council. Tariff 
changes are generally announced in annual budget speeches, and notified to the CARICOM COTED.  
3.22.  The 2022 MFN tariff and preferential tariffs were in HS -2012. The 2022 MFN schedule contains 
a total of 6,664 lines at 8 -digit level, among which 6.1% of total lines are duty -free; 54.4% of total 
lines are rated at 5% or below; 27.2% of total lines are rated at between 5% and 20%; and about 
11% of total line bear rates higher than 25% (Chart  3.1).24 
3.23.  All tariff lines, except fo r one, are at are ad valorem rates.25 There are no seasonal duties, 
nor tariff quotas in operation (Table  3.1). During the review period, applied MFN tariff rates remained 
largely unchanged; changes occurred mainly to reflect the implementation of the susp ension of the 
CET for 27 tariff lines as provided by Article  164 of the Revised Treaty of Chaguaramas. The simple 
average MFN tariff rate in 2022 was 12.1%, slightly up from 11.4% in 2013. The simple average 
tariff for WTO -defined agricultural goods was 20 .4%, while the one for non -agricultural goods was 
10.4%.  
 
23 Goods in List A may be imported at rates below the corresponding CET rates, while goods in List C at 
rates higher.  
24 The tariff analysis in this report is based on the tariff schedule in the WTO IDB that Grenada 
submitted in 2016, on the ground s that  the authorities confirm that the 2016 submission to the WTO IDB 
remains applicable at the time writing this report.  
25 HS tariff heading 1701.999 ( other sugar excluding raw sugar and sugar containing a dded flavouring 
or colouring) is subject to a sp ecific duty of  XCD 6.60 per 100 kg. Specific duty has been removed on icing 
sugar (17019910), which is now subject to a rate of 25%.  WT/TPR/S/ 437 • Grenada  
 
- 191 - 
 
  Chart  3.1 Distribution of MFN applied tariff rates, 2020  
 
a The total number of lines is 6,664. This number includes six lines with no rate, excluded from the 
averages calculations.  
b One line has a specific duty.  
Source:  WTO Secretariat calculations, based on data from the WTO IDB.  
Table  3.1 Structure of the tariff schedule, 2013 and 2020  
 
2013  2020  
Total number of tariff lines  6,288  6,664  
Non-ad valorem  tariffs (% of all tariff lines)  0.02 0.02 
Non-ad valorem  with no AVEs  (% of all tariff lines)  0.02 0.02 
Lines subject to tariff quotas (% of all tariff lines)  0.0 0.0 
Duty-free tariff lines (% of all tariff lines)  5.4 6.1 
Dutiable lines tariff average rate (%)  12.0 12.9 
Simple average tariff (%)  11.4 12.1 
WTO agriculture  19.2 20.4 
WTO non -agriculture (incl. petroleum)  9.9 10.4 
Domestic tariff "peaks" (% of all tariff lines)  7.5 7.7 
International tariff "peaks" (% of all tariff lines)  28.5 30.2 
Overall standard deviation  10.5 11.8 
Bound tariff lines (% of all tariff lines)  100.0  100.0  
Note:  Non-ad valorem  duty applies to one line. Domestic tariff peaks are defined as whose exceeding three 
times the overall average applied rate. International tariff peaks are defined as those exceeding 
15%.  
Source:  WTO Secretariat calculations, based on data received by the  authorities.  
3.24.  In 2022 tariff schedule, the simple average tariff rate applicable to agricultural products 
(WTO  definition) was 20.4%. The highest applied tariff rate, 100% is applied on products such as 
durum wheat, and beverages. For non -agricultural good s, the highest applied rate is 50%, applicable 
to, inter alia, wooden office furniture, upholstered seats with wooden frames, and paints and 
varnishes. Tariff duties at a rate of 35% are applicable to precious stones, machinery, and transport 
equipment (Ta ble 3.2). 
(6.1%)(54.4%)
(3.7%)(5.5%)(18.0%)
(1.2%)(10.9%)
(0.0%)
0102030405060708090100
05001,0001,5002,0002,5003,0003,5004,000
Duty free >0-5 >5-10 >10-15 >15-20 >20-25 >25 Specific duty bNumber 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 6,664. This number includes 6 lines with no rate, excluded from the averages calculations.
b   One line has a specific duty.
Source: WTO Secretariat calculations, based on data fom the WTO IDB database.WT/TPR/S/ 437 • Grenada  
 
- 192 - 
 
  Table  3.2 Summary analysis of the MFN tariff, 2022  
Description  MFN Bound rates 
range  
(%) No. of 
lines  Average 
(%) Range 
(%) Coefficient of 
variation (CV)  
Total  6,664  12.1 0-100 1.0 0-200 
HS 01-24 1,326  23.0 0-100 0.8 0-200 
HS 25 -97 5,338  9.4 0-50 0.8 5 -200 
By WTO category       
WTO Agriculture  1,126  20.4 0-100 0.9 0-200 
 - Animals and products thereof  178 23.6 0-40 0.6 25-100 
 - Dairy products  25 6.4 0-20 1.0 100 
 - Fruit, vegetables and plants  324 23.9 0-40 0.7 30-200 
 - Coffee and tea  29 17.4 5-40 0.8 100-200 
 - Cereals and preparations  144 16.9 0-100 0.9 0-100 
 - Oil seeds, fats and oils and 
their Products  109 15.0 0-40 1.1 0-200 
 - Sugars and confection ery 24 24.3 5-40 0.6 100 
 - Beverages, spirits and tobacco  121 29.9 5-100 0.7 30-100 
 - Cotton  6 5.0 5 0.0 100 
 - Other agricultural products 
n.e.s.  166 12.2 0-100 1.5 0-200 
WTO Non -agriculture (incl. 
petroleum)  5,538  10.4 0-50 0.9 50-100 
 - WTO Non -agriculture (excl. 
petroleum)  5,502  10.4 0-50 0.9 50-100 
 - - Fish and fishery products  278 29.1 0-40 0.5 50-100 
 - - Minerals and metals  1,136  8.1 0-35 0.9 50 
 - - Chemicals and photographic 
supplies  1,028  7.5 0-50 0.9 50-100 
 - - Wood, pulp, paper and 
furniture  340 10.6 0-50 0.8 50 
 - - Textiles  641 7.6 0-30 0.8 50 
 - - Clothing  282 19.8 5-20 0.1 50 
 - - Leather, rubber, footwear 
and travel goods  182 10.3 0-25 0.7 50 
 - - Non-electric machinery  609 6.5 0-35 0.9 50 
 - - Electric machinery  283 10.8 0-35 0.8 50 
 - - Transport equipment  235 12.0 0-30 0.8 50 
 - - Non-agriculture articles n.e.s.  488 13.2 0-35 0.7 50 
 - Petroleum  36 11.1 0-25 0.8 50 
By HS section       
01 Live animals & prod.  455 26.3 0-40 0.6 25-100 
02 Veg etable products  436 20.9 0-100 0.9 0-200 
03 Fats & oils  54 24.7 5-40 0.6 0-200 
04 Prepared food , etc. 381 21.3 0-100 0.8 0-200 
05 Minerals  197 7.3 0-25 0.7 50 
06 Chemical & prod.  949 7.2 0-50 0.9 50-200 
07 Plastics & rubber  256 8.6 0-25 0.7 50 
08 Hides & skins  81 10.8 5-20 0.7 50-100 
09 Wood & articles  134 10.7 0-20 0.5 50 
10 Pulp, paper , etc. 172 7.6 0-20 0.9 50 
11 Textile & articles  912 11.0 0-20 0.7 50-100 
12 Footwear, headgear  59 16.3 0-20 0.4 50 
13 Articles of stone  187 10.6 0-25 0.7 50 
14 Precious stones, etc.  62 19.8 0-35 0.8 50 
15 Base metals & prod.  733 7.3 0-35 0.7 50 
16 Machinery  911 7.9 0-35 0.9 50 
17 Transport equipment  246 11.8 0-30 0.8 50 
18 Precision equipment  229 11.3 0-30 0.8 50 
19 Arms and am munition  22 23.9 0-35 0.5 50 WT/TPR/S/ 437 • Grenada  
 
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  Description  MFN Bound rates 
range  
(%) No. of 
lines  Average 
(%) Range 
(%) Coefficient of 
variation (CV)  
20 Miscellaneous manuf acturing  180 16.3 0-50 0.6 50 
21 Works of art, etc. 8 20.0 20 0.0 50 
Note:  Bound rates are provided in HS12 classification and applied rates in HS17; therefore there may be a 
difference between the number of lines included in the calculation.  
Source:  WTO Secretariat calculations, based on data from the WTO IDB.  
3.25.  Some tariff rates applied by Grenada on foods are below the CET rates (Lista A), while some 
rates for manufactured goods are higher (List C). Grenada applies higher rates than CET on products 
such as alcoholic beverages (including beer, w ine, 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, jewelleries).  
3.26.  Under Artic le 164 of the Revised Treaty of Chaguaramas an OECS country may request 
temporary suspension of the Community origin treatment for certain products as a measure to 
promote the development of an industry. Following consultations, products covered under 
Article 164 include soft drinks, beers, malts, curry, candles, water, flour, animal feed, and wooden 
furniture. Statutory Rules and Orders No.  31 of 2020, which entered into effect on 15  May 2020, 
suspended the CARICOM CET on 27 tariff lines for a period of ni ne years until 4  July 2029.26 This 
temporary suspension of the CET resulted in a hike in the applied rates for these 27 tariff lines. The 
increase was of 50% for imports from "more developed CARICOM countries", and 100% for imports 
that do not satisfy CARI COM/CSME rules of origin.  
3.27.  As shown in the previous TPR report, the applied MFN rates for 18 tariff lines exceed their 
corresponding bound rates. All these lines are related to agricultural products, including beef, poultry 
offal, sweet peppers, as well as certain juices and alcoholic beverages. Among these lines with 
broken bindings, seven lines relate to beef and poultry offal whose MFN rates are lower than the 
corresponding CET rates, while seven lines relate to alcoholic beverages and have higher MFN rat es 
than the CET rates (Table  3.3). 
Table  3.3 Tariff headings where applied rates exceed bound rates, 2020  
Tariff line  MFN rate  Bound rate  CET rate  Description  
02023010  30 25 40 Meat of bovine animals, frozen: Tenderloin  
02023020  30 25 40 Meat of bovine animals, frozen: Sirloin  
02023030  30 25 40 Meat of bovine animals, frozen: Minced (Ground)  
02023090  30 25 40 Meat of bovine animals, frozen: Other  
02071430  30 25 40 Meat and edible offal, fresh, chilled or frozen: Of 
fowls of the species Gallus domesticus: Livers, 
frozen  
02074300  30 25 40 Meat and edible offal, fresh, chilled or frozen: Of 
ducks: Fatty livers, fresh or chilled  
02075300  30 25 40 Meat and edible offal, fresh, chilled or frozen: Of 
geese: Fatty livers, fresh or chilled  
07096010  40 35 40 Other vegetables, fresh or chilled: Sweet peppers  
15079000  40 35 40 Soya-bean oil and its fractions, whether or not 
refined, but not chemically modified: Other  
20099020  40 30 40 Fruit juices; Other mixtures of grapefruit juice and 
other juice  
20099030  40 30 40 Fruit juices; Other mixtures of orange juice with 
other juice  
21069080  35 30 20 Food preparations; of types used in the manufacture 
of beverages with an alcoholic strength by volume 
exceeding 0.5% vol  
22030090  35 30 30 Beer made from malt: Other  
22041000  35 30 15 Wine of fresh grapes, including fortified wines; 
Sparkling wine  
 
26 Grenada Customs (Suspension of Common External Tariff) Order. Viewed at: 
https://laws.gov.gd/index.php?option=com_edocman&task=document.viewdoc&id=907&Itemid=212 .  WT/TPR/S/ 437 • Grenada  
 
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  Tariff line  MFN rate  Bound rate  CET rate  Description  
22042100  35 30 15 Wine of fresh grapes, including fortified wines; 
grape must with fermentation prevented or arrested 
by the addition of alcohol: In containers holding 
2 litres or less  
22042910  35 30 5 Wine of fresh grapes, including fortified wines; 
Grape must with fermentation prevented or arrested 
by the addition of alcohol  
22042990  35 30 15 Wine of fresh grapes, including fortified wines; 
grape must with fermentation prevented or arrested 
by the addition of alcohol: Other  
22043000  35 30 5 Wine of fresh grapes, including fortified wines; 
grape must with fermentation prevented or arrested 
by the addition of alcohol: Other grape must  
Source:  WTO Secretariat.  
3.1.3.3   Tariff and tax concessions  
3.28.  Like other CARICOM countries, Grenada maintains a List of Conditional Duty Exemptions, 
which is included in the CARICOM External Tariff Statutory Rules and Orders No.  37 of 2009. The 
list contains items classified under 53 HS headings, as well as the purpose for which the goods are 
imported.  
3.29.  Import duty exemptions are available for beneficiary industries under Grenada's Investment 
Promotion Act. Import duties and the Customs Service Charge are not applied on imports destined 
for government institutions; SRO 37/99 provides the legal basis for t his exemption. Customs and 
the Grenada Industrial Development Corporation examine the full List of Conditional Duty 
Exemptions (Section  3.3.1).  
3.30.  Under CARICOM regulations, goods included in the List of Items Ineligible for Duty Exemption 
may not be exempted  in part or in whole from tariffs, nor imported at a reduced rate, even when 
imported for use in an approved industry under some incentives programmes. Goods included in 
this list are generally produced in the CARICOM region in quantities considered adequa te to meet 
regional needs.  
3.1.3.4   Tariff preferences  
3.31.  Grenada grants duty -free access to imports from other CARICOM countries, provided they 
meet CARICOM rules of origin (Common Report). Exceptions include articles subject to licensing 
under Article  164 of the rev ised CARICOM Treaty.  
3.32.  Under CARIFORUM's Economic Partnership Agreements (EPAs) with the European  Union and 
with the United  Kingdom , Grenada grants preferential access to most products originated from the 
European  Union . The United K ingdom's  preferences are being implemented gradually – most 
products originating in the European Union  and the United  Kingdom  are expected to be granted 
duty-free access to Grenada and other OECS countries by end -2033.  
3.1.4   Other duties and charges  
3.1.4.1   Customs service charge  
3.33.  A Customs Service Charge (CSC) is collected on imports, including goods originating from 
CARICOM countries. Effective on 21  February  2014, the rate of CSC was increased to 6% of the c.i.f. 
value, compared to 5% before. According to the authorities, the increase in the CSC was part of the 
Government's fiscal consolidation efforts upon the advice from the IMF. Grenada has not included 
other duties and charges applied on imports in its WTO tariff schedule of bindings.  WT/TPR/S/ 437 • Grenada  
 
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  3.34.  As an incentive, firms in the manufacturing sector pay the CSC at the reduced rate at 3% on 
their raw materials imports.27 
3.1.4.2   Other taxes  
3.35.  The value  added tax (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 the VAT and excise duties are levied on the value of goods; for imports, they are based on the 
c.i.f. value plus cu stom duties, other taxes, and the C SC. 
3.36.  The VAT is levied at a standard rate of 15% on most goods and services.28 The VAT on some 
supplies is either zero -rated or exempted29, as listed on the Third and the Fifth Schedules of the VAT 
Act. Gasoline, diesel, L PG, cooking gas , and kerosene may also be zero -rated if they have been 
already subject to the Petrol Tax. Effective on 1  May 2016, building materials for qualifying 
investment projects are exempted from the VAT.30 
3.37.  Products subject to the excise tax include  alcoholic beverages, cigarettes and tobacco 
products, and motor vehicles.31 Effective 27  May 2014, five types of goods become excisable at a 
rate of 5% , including luxury goods32, motor oils, tyres, vehicle batteries, and vehicle parts.33 Under 
certain cir cumstances, excise tax exemptions are granted on imported goods that are exempted 
from the VAT. Exemptions may be also granted, at the discretion of the Minister of Finance, to certain 
industries or products. From 6  April 2016, imports of rum or tafia as r aw materials, and of motor 
vehicles, are exempted from excise tax.34 Under some circumstances, excise tax paid on imports 
can be refunded if the goods comply with the conditions for a duty drawback.  
3.38.  Effective 16  October  2015, petroleum products imported fo r local consumption are subject to 
a Petrol Tax of XCD  5.5 per gallon at the time of the importation35, compared to XCD  3.5 per gallon 
before. These products are zero -rated for VAT purposes.  
3.39.  An environmental levy applies to imported vehicles, "white goods"36, and beverage 
containers.37 The rate is 1% of the c.i.f. value for "white goods", and ranges from 2% to 30% of the 
c.i.f. value for cars (depending on the age) and trucks over five years old (depending on the 
tonnage). Effective 24  April 2015, veh icle tyres are subject to an environmental levy of XCD  7 for a 
new tyre, and XCD  13 for a used tyre.38 
 
27 The authorities note that the incentive for some manufacturing companies paying CSC at a rate as 
low as 0.2% when importing raw materials as inputs was abolished on 1  May 2016 when the new investment 
incentive scheme entered into force.  
28 Mobile telecommu nication services and tourism service are taxed at 20% and 10%, respectively 
(Value Added Tax Regulations (SRO 41 of 2009)). Diving activities, together with hotels and holidays, also 
attract the special rate of 10%.  
29 Goods used to produce exempted suppli es are also exempted.  
30 Value Added Tax (Amendment) Act 2016. Viewed at: 
https://laws.gov.gd/index.php?option=com_edocman&task=document.download&id=1 214&Itemid=213 .  
31 Excise Tax Act , First Schedule . 
32 Luxury goods means a motor vehicle or a yacht that is valued more than XCD  200,000.  
33 SR&O 16 of 2014 , Excise Tax Order. Viewed at: 
https://laws.gov.gd/index.php?option=com_edocman&task=document.download&id=608&Itemid=212 .  
34 Excise Tax (Amendment) Act , 2016. Viewed at: 
https://laws.gov.gd/index.php?option=com_edocman&task=document.download&id=1216&Itemid=213 .  
35 SR&O 37 of 2015, Petrol  (Tax Rate) (No.  2) Order. Viewed at: 
https://laws.gov.gd/index.php?option=com_edocman&task=document.download&id=687&Itemid=212 .  
36 These include stoves, ranges, grates, cookers and other cooking appliances (73.21); fans (84.14.50); 
air conditioning machines (84.15.10); refrigerators, freezers and other refrigerating or freezing equipment, 
electrical or other (84.18); clothes driers f or domestic and other uses (84.21); dish washing machines 
(84.22.10); household or laundry -type washing machines (84.5); vacuum cleaners (8509.1); floor polishers 
(8509.2); kitchen waste disposer (8509.3); food grinders and mixers, fruit or vegetable juice  extractors 
(8509.4); fruit or vegetable juice extractors (8509.8); electric heaters (85.16); television receivers, including 
videos monitors and video projectors (85.28); and motor vehicles (87.02, 87.03, 87.04, 87.05, 87.11, 87.12). 
Environmental Levy Ac t, Second Schedule.  
37 This levy is also applied on households that consume 100  kWh or more of electricity per month, and 
on stay -over and marine visitors.  
38 SR&O 13 of 2015 Environmental Levy (No.  2) Order , 2015. Viewed at: 
https://laws.gov.gd/index.php?option=com_edocman&task=document.download&id=663&Itemid=212 .  WT/TPR/S/ 437 • Grenada  
 
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  3.40.  For plastic or glass containers, the levy is charged at a rate of XCD  0.25 to XCD  0.50 per 
container. The levy may be refunded partly (75%) if the importer produces to the Comptroller of 
Customs, within six months of importation, satisfactory evidence of re -export of the container or its 
disposal in a manner acceptable to the Grenada Solid Waste Management Authority. A full refund is 
granted for cont ainers imported for man ufacturing purposes that are re -exported.  
3.1.5   Import prohibitions, restrictions, and licensing  
3.1.5.1   Import prohibitions  
3.41.  In accordance with the Customs Act , 2015, imports of products listed in Part I of Schedule III 
are prohibited. According t o the authorities, such import prohibitions are implemented on public 
safety and moral grounds, for human life and environment protection, and for compliance with 
Grenada's international obligations.  
3.42.  Effective 14  September  2018, 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) and shopping bags is prohibited.39 
3.43.  Grenada has not notified to the WTO any quantitative restriction measu res. 
3.1.5.2   Import restrictions and licensing  
3.44.  Importation of goods listed in Part II of Schedule III of the Customs Act is not allowed, unless 
importers acquire prior permits from the relevant authorities (Table  3.4). 
Table  3.4 Import restrictions, 2022  
Product  Approval authorities  
Arms and ammunition, mace and pepper spray  Commissioner of Police  
Gunpowder, blasting powder, detonators and high explosives of 
any description  Commissioner of Police  
Cannabis sativa, cannabis indica, choras, ganjaor any preparation 
or mixture of such goods  Chief Medical Officer  
Any goods which bear a design, in imitation, of any currency or 
bank notes or coin  Finance Minister  
Kerosene oil and other petroleum products  Finance Minister  
Cigarette -making appliances  Finance Minister  
Spirits and wine  Comptroller  
Tobacco, cigars, cigarillos or cigarettes (net weight > 20 pounds)  Comptroller  
Extracts, essences or other concentrations of tobacco or any 
admixture of such goods  Comptroller  
Motor vehicles with 10 years or more since its manufactured date  Various authorities  
Source:  Information provided by the authorities.  
3.45.  Effective 1  July 2020, the importation of motor vehicles that are 10 years old or older is 
restricted. Imports of such vehicles require permits from various authorities, depending on the type 
and the use of the vehicles. Exceptions are given to certain typ e of cars such as special purpose 
vehicles (e.g. vehicles transporting physically challenged persons), tractors, and heavy goods 
vehicles.40 
3.46.  According to the authorities, import licensing requirements for products that importers are 
encouraged to source from OECS countries or CARICOM were abolished on 15  May 2020; instead, 
higher tariff rates (i.e. suspension of CET treatment) are applicable to  such products temporarily 
 
39 SROs No.  18 and 19 of 2018. Viewed at: 
https://laws.gov.gd/index.php?option=com_edocman&task=document.download&id=829&Itemid=212 , and 
https://laws.gov.gd/index.php?option=com_edocman&task=document.download&id=830&Itemid=212 .  
40 SRO No.  43 of 2020. Viewed at: 
https://laws.gov.gd/ind ex.php?option=com_edocman&task=document.download&id=919&Itemid=212 .  WT/TPR/S/ 437 • Grenada  
 
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  until 4  July 2029 (Section  3.1.3.2).41 The authorities maintain that tariffication of licensing 
requirements on industry development grounds enhances policy transparency and simplifies its 
implementation.  
3.47.  Apart from the products listed for suspension of CET treatment, the list of products subject to 
import licensing requirement remained unchanged from the previous Review (Table  3.5). The import 
licensing regime is regulated by the Supplies Control Act , Cap 314. According to the au thorities, the 
system is used for regulating and monitoring, security, and environmental purposes. Licensing 
requirements are applied to goods from all countries except from other OECS members.  
Table  3.5 Impor t licensing regime, 2022  
Products  Importation policy  
Chicken  Whole chicken restricted  
Eggs Restricted  
Processed pork products  Restricted  
Milk (bulk)  Powdered milk (bulk full cream) restricted  
Sugar  Sugar restricted  
Rice (bulk)  Rice (bulk) restricted  
Ground spices  Restricted  
Jellies & jams  Restricted  
High-proof spirits  Restricted  
Cigarettes  Restricted  
Paint Paint restricted except specialized  
Varnishes & lacquers  Restricted  
Toilet paper  Restricted  
Other tissue paper  Restricted  
Corrugated galvanised sheets  Restricted  
Aluminium windows, doors & parts thereof  Restricted  
Wooden doors incl. panelled doors  Restricted  
Mattress & mattress supports  Restricted  
Mops Restricted  
War toys  100% restricted  
Source:  WTO Secretariat, based on WTO document G/LIC/N/3/GRD/3, 9  October  2009.  
3.48.  Imports of ozone -depleting substances are subject to quota control. Quotas are determined 
annually and are communicated to importers in writing or published in the Gazette . According to the 
authorities, quotas are allocated to applicants on a "first -come , first-served " basis. Once a quota is 
allocated, an import licence is issued, serving as a permit for imports. Applications for a quota should 
be submitted one week prior to the arrival of goods, and are processed within 48 hours.  
3.49.  The regime is administered by the Licensing  Division, under the Ministry of Economic 
Development, Planning, Trade and Cooperatives. The validity of a licence varies from three months 
to one year, dependent on the licence condition. A fee of XCD  5 is charged for each licence issued. 
Licences are not  transferable, and there are no penalties for non -use. 
3.50.  Grenada's latest notification on import licensing procedures was submitted to the WTO in 
September  2014.42 
3.1.6   Contingency measures  
3.51.  The legal framework regarding contingency measures remained unchanged dur ing the review 
period . The legislation on anti -dumping and countervailing measures dates from 1960, and there is 
no legislation on safeguards. Grenada has not established a national authority for trade remedies.  
3.52.  On a regional level, the Revised Treaty of Chaguaramas specifies that CARICOM members 
should harmonize among themselves their laws and administrative practices with respect to 
anti-dumping and countervailing measures.  
 
41 SRO No. 31 of 2020. Viewed at: 
https://laws.gov.gd/index.php?option=com_edocman& task=document.viewdoc&id=907&Itemid=212 .  
42 WTO document G/LIC/N/3/GRD/4, 8  September  2010.  WT/TPR/S/ 437 • Grenada  
 
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  3.53.  Imports from other CARICOM member States are not subject to national tr ade remedy 
measures. However, Grenada may invoke safeguard provisions in the Revised Treaty of 
Chaguaramas to limit imports of goods from other CARICOM member States, for up to three years 
(unless COTED authorizes a longer period)43, and/or to petition COT ED to suspend community origin 
treatment to certain products and to apply tariff rates higher than the CET.44 
3.54.  According to the authorities, Grenada has never taken anti -dumping, countervailing, or 
safeguard actions.  
3.2  Measures directly affecting exports  
3.2.1   Procedures  
3.55.  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 for VAT 
reimbursement purposes . 
3.2.2   Export taxes, charges , and levies  
3.56.  Grenada does not charge any taxes or levies on exports.  
3.57.  Exports are VAT zero -rated.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.58.  As listed in Part IV of the Schedule III of the Customs Act 2015, exportation of narcotic and 
psychotropic substance s, as well as endangered species of animals and plants (including live or 
dead, or their products/derivatives) is restricted, unless exporters obtain a licence/permit from the 
relevant authorities.  
3.59.  In order  to export restricted products, exporters must seek prior approval from the relevant 
line ministries (Table  3.6). For cocoa and nutmeg, whose exportation is subject to state trading 
(Section  3.3.4), exporting small amount s of such products by private expor ters is possible, provided 
they obtain an export licence from the relevant state trading entity. According to the authorities, 
such licensing requirement is maintained for quality control, to ensure that the quality of exports in 
small amounts is in line w ith quality of exports by the corresponding state trading entity. A fee of 
XCD 5 is charge per licence. Licences not transferable.  
Table  3.6 Goods subject to exports control and/or licensing, 2022  
Description (HS code)  Conditions/requirements (relevant legislation)  
Exotic birds (0106.99)  Licence by the Veterinary Division, Ministry of Agriculture  
Cocoa  Approval of the Grenada Cocoa Association  
Nutmeg  Licence by the Grenada Nutmeg Association  
Gas cylinders (7311.00)  Not available  
Coral (0508.00)  Licence by Ministry of Agriculture  
Mineral products (chapter 25)  Licence by Ministry in charge of mining  
Live sheep (0104.10) and goats (0104.20)  Licence by the Veterinary Division, Ministry of Agriculture  
Fresh produces  Licence by the Marketing and National Importing Board  
Fish and fishery products  Licence by Fisheries Division of the Ministry of Agriculture  
"Minor" spices (in excess of 4 kg)  Export permit, by the Minor Spices Co -operative 
Marketing Society  
Source:  Information provided by the authorities.  
 
43 Revised Treaty of Chaguaramas , Article  150. 
44 Revised Treaty of Chaguaramas , Article  164. WT/TPR/S/ 437 • Grenada  
 
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  3.60.  The Agricultural Industries Protection Act, Cap 7 enables the Minister of Agriculture to prohibit 
temporarily the exportation of plants necessary for the establishment or extension of any agricultural 
industry in Grenada, or to make exportation contingent upon the receipt of a licence.  
3.2.4   Export promotion and assistance  
3.61.  Grenada has notified to the Committee on Subsidies and Countervailing Measures (SCM) that 
on 1 May 2016 its laws related to export subsidies (i.e. the Fiscal Incentive Act and the Qualified 
Enterprises Act) were repealed, and that its export subsidy programmes were abolished.45 During 
the review period, a new National Export Strategy (NES) was implemented.  
3.62.  At the regional level, the OECS's Export Development Unit has the mandate to contribute to 
the promotion and marketing of domestic products of the different OECS countries. Su pport is 
generally limited to participation in trade fairs and trade promotion activities at the request of the 
Government. Financial support may also be provided by the Government to allow exporters to 
participate in trade fairs.  
3.63.  The Grenada Investment De velopment Corporation (GIDC) operates three business parks in 
the country46, providing commercial real estate facilities for "export ready" business es. Each of the 
three business parks has its own target industry, for instance, Frequente Park and Seamoon P ark 
aim to attract businesses in the ICT, agro -processing, warehousing, and manufacturing sectors, 
while St  Patrick Park targets business processing and retail. According to the authorities, there is no 
financial assistance for tenants in these business pa rks. 
3.2.5   Free zones  
3.64.  The Free Trade and Processing Zone Act , 2015 entered into force on 25  August  2015. Only 
approved enterprises may be engaged in approved activities in the free zones. Import and export 
licensing requirements are waived for enterprises in the  free zones. Also, enterprises in the free  
zones enjoy  tax and duty concessions including exemption of customs duty, VAT, excise tax , and 
corporate income tax.  
3.65.  Activities approved to operate in the free zones are listed in Schedule I of the Act, and includ e 
establishing commercial, financial, business and service centres; sea and air transport operation; 
warehousing; export processing; packaging; and assembling. In accordance with the Act, free zones 
are managed by a company under a concession agreement for  60 years; the concession is 
renewable.  
3.66.  There is no free  zone or export processing zone currently in operation in Grenada.  
3.3  Measures affecting production and trade 
3.3.1   Incentives  
3.67.  On 1 May 2016, Grenada adopted a new investment incentive scheme. The authorities state 
that the new scheme consolidated the incentive provisions previously scattered in various acts and 
removed provisions that are against Grenada's international obligations; hence it improved 
transparency and enhanced certainty.  
3.68.  The incentives provided  by the Investment Promotion Act for qualified investment projects 
are linked to amendments to other Acts, such as the Income Tax Act, the Property Transfer Tax Act, 
the Customs Act, the Value Added Tax (VAT) Act, the Excise Tax Act, and the Customer Service 
Charge Act. Incentives may be granted in the form of investment allowance, tax credit, carrying 
forward of a los s, VAT suspension, customs duties and excise tax exemptions, waivers of property 
transfer tax and withholding tax, and reduction of the C SC (Table  3.7). 
 
45 WTO documents G/SCM/N/284/GRD, G/SCM/N/315/GRD, and G/SCM/N/299/GRD, 21  April 2017.  
46 Grenada Investment Development Corporation , Facilities Business Unit. Viewed at: 
https://facilities.gd/about -us/.  WT/TPR/S/ 437 • Grenada  
 
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  Table  3.7 Investment incentives, 2022  
Inventive  Details  
Investment allowance  100% capital expenditure  
15 years maximum period for unutilized investment allowances carried forward  
Carry -forward losses  100% losses incurred in any one year can be carried forward for a period of 
6 years and offset against 100% of  any taxable income earned  
Tax credit for training  Training allowance (deductible) at rate of 150% of the qualifying cost of training 
(not to exceed XCD  5,000/employee)  
Tax credit R&D  150% for agri -business projects (no deduction granted on: (i ) expenditure on 
routine testing; (ii)  efficiency surveys on management studies; (iii)  routine data 
collection; and (iv)  market research or sales promotion)  
Customs duty 
exemptions  100% waiver on building materials, fixtures, furnishings, networking eleme nts, 
computer hardware and software (not available locally or regionally); for first 
installation, extension, and expansion of buildings  
100% waiver on production machinery, equipment and spare parts  
100% waiver on raw materials (not available locally or regionally) and packaging 
materials  
100% waiver on office equipment, computers, network elements, infrastructure 
materials and equipment for initial supplying and expansion of Information and 
Communication Technology facilities  
100% waiver o n office supplies and stationery  
100% waiver on specialized vehicles (50% waiver on commercial vehicles) (up to 
6 vehicles)  
100% waiver on 1 high -end luxury vehicle for tourist accommodation facilities 
(rated 4 stars and above)  
100% waiver on ambulances and specialized medical vehicles (for certified medical 
facilities)  
75% on certain heavy equipment  
100% waiver on raw materials and spare parts for the marine and boatyard sector  
100% waiver on building materials, fittings and furnishing (if not available locally 
and regionally) to upgrade tourist accommodation facilities  
100% waiver on spare parts, soft furnishings and linens for tourist accommodation 
facilities  
100% waiver on building materials, fixtures and furnishings for initial construction 
and equipping (if not available locally and regionally) for student accommodation 
facilities  
100% waiver on boats, engines, compressors, scuba tanks, regulators, consoles, 
buoyancy control devices, dive computers, safety equipment, a nd other equipment 
to establish and/or expand dive and water sporting operations  
100% waiver on tour buses, limousines and other high -end luxury vehicles 
(maximum of 2 vehicles every 5 years) for tour operators  
100% waiver on ATVs, bicycles, and simila r vehicle for the establishment of tour 
operations  
100% waiver on heavy equipment for use in the construction of tourism 
accommodation projects (investment cost in excess of XCD  80 million and with 
construction period superior to 2 years)  
VAT suspension  Importation of capital goods subject to customs duty exemption  
Refund on local purchase of capital goods  
Exemption on local purchases of building materials and capital goods for priority 
projects with VAT -able activities, and qualifying cost in excess of XCD  30 million  
% VAT waived in keeping with duty exemption on commercial vehicles 
imported/purchased  
Excise tax exemption  Waiver of the excise tax in keeping with % duty exemption on raw materials and 
vehicles  
Customs Service 
Charge reduction  Reduced rate of 3% on raw materials  
Property transfer tax 
waivers  50% reduction for the acquisition of property, where the property purchased is by 
a non -national investor for use in a priority sector project eligible for the 
investment allowan ce 
75% reduction for the acquisition of property located within the parish of 
St George (cost superior to XCD  30 million but less than XCD  80 million)  
100% reduction for the acquisition of property located outside the parish of 
St George (cost superior to XCD 30 million) or located in St  George 's (cost superior 
to XCD  80 million) for residential tourism development  
1% for the developer, and 5% for the purchaser on the first sale of property 
participating in the rental pool programme within an approved tou rism 
development  WT/TPR/S/ 437 • Grenada  
 
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  Inventive  Details  
2.5% on subsequent sales by the purchaser and seller, provided that the property 
is maintained within the rental pool programme of the approved tourism 
development  
Withholding tax waiver  50% on interest charges associated with the financing, and royalty fees (limited to 
non-related parties) associated with the operation of the projects (qualifying cost 
exceeding XCD  30 million but less than XCD  80 million)  
100% on interest charges associated with the financing, and royalty fees (l imited 
to non -related parties) associated with the operation of the projects (qualifying 
cost exceeding XCD  80 million)  
Source:  Grenada Investment Development Corporation, Grenada's Investment Incentives Guide.  
3.69.  Ten sectors (agriculture and agri -business; manufacturing; energy; information technology 
services, telecommunication providers, and BPO operations; tourism; education and training; health 
and wellness; medical services; sports; and creative industries) are eligible f or the incentives ; eight 
of those sectors are related to services.  
3.3.2   Technical regulations and standards  
3.70.  Grenada continues to make minimal use of technical regulations. The framework for technical 
regulations and standards  has remained largely unchanged sinc e its previous review. As of 
end-2022, there were 150 national standards in Grenada47, of which 24 had become technical 
regulations  in force (Table  3.8). During the review period, Grenada submitted 14 notifications to the 
WTO TBT Committee, covering specif ications for pneumatic tyres  and hollow concrete blocks , and 
labelling requirements, especially for toys  and prepackaged food/water/tobacco products.  
Table  3.8 Technical regulations, 2022  
Standard no.  Standar d title 
GDS 1: PART 1: 1990  Specification for the Labelling of Commodities - General Principles  
GDS 1: PART 2: 1990  Specification for the Labelling of Commodities - Labelling of Prepackaged 
Goods  
GDS 1: PART 3: 1990  Specification of all Products Manufactured from Textile  
GDS 1: PART 4: 2018  Specification for Labelling of Prepackaged Foods  
GDS 1: PART 5: 1992  Specification for Care Labelling of Textile Articles  
GDS 1: PART 6: 1997   Labelling of Retail Packages of Cigarettes  
GDS 1: PART 7: 1999  Specification for Labelling - Labelling of Pesticides and Other Toxic Chemicals  
GDS 1: PART 8: 2001   Specification for the Labelling of Domestic Electrical Appliances  
GDS 6: 1992  Specification for Hollow Concrete Blocks  
GDS 12: 1992  Specification  for Wheat Flour  
GDS 14: 1992  Specification for Toilet Tissue  
GDS 25: 2003  Specification for Requirement for Assessment, Licensing and Registration of 
the Accommodation Sector in Grenada  
GDS 26: 1997  Specification for Pneumatic Passenger Car Tyres  
GDS 41: 1998  Requirements for Labelling of Brewery Products (Beer, Stout, Shandy, and 
Malt)  
GDS 42: 1998  Wet Seasoning  
GDS 48: 1998  Specification for Pneumatic Tyres for Highway Commercial Vehicles  
GDS 50: 1999  Specification for Portland Cement: Guidelines for Procurement and Use  
GDS 63: PART 2: 2002  Specification for Ready -Mix Concrete  
GDS 69: 2017   Rice - Specification  
GDS 70: 2003  Specification for Safety Matches  
GDS 71: 2003  Specification for Packaged Water  
GDS 73: 2003  Specification for Rum  
GDS 74: 2003  Specification for Brewery Products  
GDS 78: 2005  Specification for Corrugated Galvanized and Aluminium and Zinc (Aluzinc) 
Coated Steel Sheets for Roofing and General Purposes   
 
47 Grenada Bureau of Standards, Standards Information Centre.  Viewed at: 
http://www.gdbs.gd/StandardsInfo.html .  WT/TPR/S/ 437 • Grenada  
 
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  Standard no.  Standar d title 
GDS 84: 2008  Specification for the Labellin g of Toys and Playthings  
GDS 120: 2014  Labelling of Tobacco Products (including Cigarettes)  
Source:  Information provided by the authorities.  
3.71.  The Grenada Bureau of Standards (GDBS) is the sole agency responsible for developing 
national standards, and coordinating inputs from stakeholders during the process.48 The GDBS is the 
enquiry point and national notification authority under the WTO  TBT Agreement. The GDBS  is a 
member of the Caribbean Regional Organisation for Standards and Quality , the Pan American 
Standards Commission , the International Electro -technical Commission (affiliate member) , and the 
Inter-American Metrology System.  
3.72.  Grenadian standards are formul ated by a GDBS technical committee, which coordinates inputs 
from stakeholders. Once a "committee draft" is finalized, it will be published on the GDBS website 
for public consultation and comments for a period of two months. If comments are received, the 
draft is sent back to the technical committee for review; the draft is then forwarded to the Standards 
Council (the GDBS's decision -making body) for approval. Once adopted, standards are published in 
the Official Gazette , with a 60 -day notice period for tec hnical regulations. The authorities state that 
the GDBS makes extensive references to international standards in the process of formulating 
standards and generally adapts or adopts international or regional standards. The authorities 
indicate that more tha n half of Grenadian standards are adopted or adapted from international 
standards.  
3.73.  At the CARICOM level, the CARICOM Regional Organization for Standards and Quality 
(CROSQ) is mandated to establish and harmonize standards within CARICOM.49 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 CROSQ50 also require approval from COTED. CARICOM countries may transpose community 
standards and technical regulations into national standards and regulations through domestic legal 
procedures.  
3.74.  When enforcing a standard that is deemed necessary for human health and environmental 
protection, the GDBS will propose t o the Minister responsible for the economy to adopt such a 
standard as a technical regulation. Technical regulations are notified to the WTO with a 60 -day period 
for circulation and comments. They may be amended, if necessary, on the basis of comments 
received from WTO Members. Technical regulations are published as statutory regulations and orders 
(SROs).  
3.75.  All products subject to technical regulations require conformity assessment. According to the 
authorities, imported and domestically produced goods are a ssessed under the same terms and 
conditions. Conformity certificates must be issued by a GDBS -accredited conformity assessment 
body, unless provided by a mutual recognition agreement (MRA). In addition, domestic electrical 
appliances, corrugated galvanized  and alu -zinc sheets, and pneumatic tyres are physically inspected 
to ensure compliance with labelling requirements and product specifications.  
3.76.  The authorities state that market surveillance is carried out to ensure that products sold in 
the market are in compliance with technical regulations, particularly labelling requirements. 
Surveillance of prepackaged goods and foods is conducted at the point of entry and by random 
inspection of goods at retail outlets.  
3.77.  Product labelling is mandatory in Grenada.  
 
48 The Standards Act (No.  6 of 1989) established the Grenada Bureau of Standards (GDBS), setting the 
rules on standardization, testing, and type approval of goods. In addition to standards development, the 
Bureau is in charge of their implementation and diffusion, as well as the development and testing of products, 
and their certification, metrologica l services, material testing, and training. Where other agencies have 
standard -setting responsibilities, they must first obtain approval from the GDBS.  
49 Detailed functions of CROSQ can be found at https://www.crosq. org/.  
50 Adoption is decided by the Council of CROSQ, comprising the executive heads of national standards 
bodies of CARICOM countries.  WT/TPR/S/ 437 • Grenada  
 
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  3.3.3   Sanit ary and phytosanitary measures  
3.78.  In the area of SPS measures, the institutional framework has remained unchanged with 
respect to the previous Review. The main laws on SPS issues pre -date the creation of the WTO and 
have not been since amended. They include t he Animal (Disease and Importation) Act (Nos. 7 and 
23 of 1967), the Pesticides Control Act (No.  18 of 1973), and the Plant Protection Act (No.  19 of 
1986). The Veterinary and Livestock Division of the Ministry of Agriculture is responsible for sanitary 
(animal health) issues, while the Pest Management Unit for Phytosanitary Issues and the Produce 
Chemist Laboratory are responsible for issues relating to pesticides and toxic chemicals. The Grenada 
Bureau of Standards and the Ministry of Health both have res ponsibilities and legal authority for food 
safety.  
3.79.   The Ministry of Agriculture, Lands, and Forestry is Grenada's national notification authority  
and enquiry point on SPS matters in the WTO. Grenada has not submitted any notifications on 
SPS measures to the WTO.  
3.80.  The Food Safety Act 2015 (No.  19 of 2015) was enacted on 24  June 2015 but has not yet 
entered into force. The Act calls for the establishm ent of a Food Safety Authority responsible for 
food safety enforcement. The Act requires that food be traceable from "field to fork". In addition to 
other documents and formalities required by other legislation, importers (and exporters) of food 
must submi t an intention to import (or export) document to the Food Safety Authority prior to any 
importation (or exportation).51 
3.81.  To import live animals and poultry, and carcasses or parts of animals and poultry, a special 
permit must be obtained from the Chief Vete rinary Officer. Once the permit is granted, an import 
licence is issued by the Ministry of Trade. Imports of birds, reptiles, insects, and fish are also subject 
to a licensing requirement.  
3.82.  Importation of plant seeds is prohibited.  
3.83.  Similar to the requiremen ts for the importation of animals and animal products, an import 
permit from the Pest Management Unit under the Ministry of Agriculture must be obtained prior to 
the importation of plants, plant products, plant pests, or soil. Permit fees are XCD  100 for p lanting 
materials, and range from XCD  5 to XCD  50 for food items, depending on the weight. Imports of 
plants, plant products, plant pests, live beneficial organisms, and soils must be accompanied by a 
phytosanitary certificate in conformity with Internatio nal Plant Protection Convention (IPPC) 
requirements from the exporting country.  
3.84.  Under the Plant Protection Act, the Plant Protection Board and Plant Quarantine are 
responsible for the protection of Grenada's agricultural resources. Imports of plants and pl ant 
products are subject to a quarantine requirement. The Pest Management Unit maintains a Plant 
Quarantine Pest List. According to the authorities, the List is reviewed periodically in line with 
information from other international organizations.  
3.85.  Imports of pesticides require licences from the Pesticide Control Board.  
3.86.  Grenada is in the Codex Alimentarius Commission, and is a contracting party to the 
International Plant Protection Convention (IPPC). It is not a member of the World Organisation  for 
Animal Health (OIE).  
3.3.4   State trading enterprises  
3.87.  According to Grenada's late st notification to the WTO in August 2010, the Grenada Cocoa 
Association (GCA) is the sole state trading enterprise and enjoys the exclusive right to export 
cocoa.52 The GCA determines prices paid to farmers by granting exclusive licences to local agents t o 
purchase cocoa beans from farmers.  
 
51 Food Safety Act , 2015, Article  46. 
52 WTO document G/STR/N/13/GRD, 24  August  2010.  WT/TPR/S/ 437 • Grenada  
 
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  3.88.  The Marketing & National Importing Board (MNIB) is a state  trading entity established to 
import, procure, export, wholesale , and retail some agricultural products. The MNIB is the sole 
importer of "specified imports", a s identified by an Order issued by the Minister in charge of trade 
and finance; these products may include foodstuffs, building materials, and agricultural equipment. 
Currently, unrefined sugar, rice , and full cream milk in bulk (in packages greater than 1 0 kg) are 
classified as "specified imports".53 The MNIB has discretion to grant licences for the importation or 
exportation of these products. Licences are valid for a maximum of 12  months. The MNIB's activities 
have not been notified to the WTO.  
3.89.  In additi on to those mentioned above, other commodity boards enjoy statutory exclusive 
trading rights, including the Grenada Minor Spices Co -operative Marketing Society Limited, which 
has the exclusive right to export cloves, cinnamon, pimento , and all other spices  except nutmeg and 
mace54, and the Grenada Cooperative Nutmeg Association (GCNA), which is the sole authorized 
exporter of nutmeg. These entities have been notified to the WTO.  
3.3.5   Government procurement  
3.90.  Grenada is neither a party nor an observer to the plurilateral WTO Agreement on Government 
Procurement (GPA).  
3.91.  During the review period, Grenada established a unified public procurement regime. On 
24 April 2015, the Public Procurement and Disposal of Public Property Act , 2014 entered into force, 
while its implem enting regulations, contained in the Public Procurement and Disposal of Public 
Property Regulations , 2015, entered into force on 17  September  2015. As set forth in the Act, the 
objectives of the public procurement regime include maximizing economy and effi ciency, promoting 
competition, promoting integrity and fairness, enhancing transparency and public confidence in the 
procurement system, and facilitating the promotion of local industry and economic development.  
3.92.  Procurements above XCD  15,000 by any public entities including ministries and departmental 
agencies, statutory bodies, autonomous bodies, and state -controlled enterprises are subject to the 
rules set out in the Act and Regulations.  
3.93.  All public procurement must be generally conducted by open competiti ve tendering. If a 
procurement entity does not have the sufficient capacity to conduct such tendering, the procurement 
process will be carried out by the Centralized Procurement Unit of the Grenada Government. 
Selective tendering may be used on the grounds  of limited number of suppliers or due to the complex 
nature of the works/services/goods required. Negotiated procurement may be used when there is 
only one supplier or when there is an emergency need.  
3.94.  Procuring entities are not allowed to package, divide,  or structure procurements to circumvent 
the approval thresholds. For procurements below the approval thresholds,  the procuring entity in 
question is also the approving authority of the procurement activities. Above the corresponding 
procurement threshold,  the procurement activity must obtain a "No Objection" Certificate from the 
Public Procurement Board. The approval threshold is XCD  200,000 for most procurement methods, 
except for negotiated procurement, which can only be conducted for procurement with a value 
between the approval thresholds of XCD  15,000 to XCD  1 million55, and low -value procurement 
(XCD 25,000).  
3.95.  Unless required by funding or other agreements, domestic preference must be given in any 
tendering. National or local community suppliers have priority of participation in procurement 
activities.56 A margin of preference of 10% is granted to for domestic suppliers. According to the 
authorities, this has not been used since the Act entry into force.  
3.96.  Invitations to participate in an open competitive tender must be published in at least one 
newspaper of national circulation and on the Internet, for at least 30 days for national tendering and 
45 days for regional/international tendering. Every tender above XCD  1 million  must be opened b y 
 
53 Marketing Board (Un-refined Sugar and Bulk (Milled and Unmilled) Rice) Order, SRO 16 of 1994.  
54 Minor Spices Act , Cap 195.  
55 All procurements under the negotiated procurement method must obtain a "No Objection" Certificate 
from the Public Procurement Board.  
56 Public Procu rement and Disposal of Public Property Act , 2014, Article  32. WT/TPR/S/ 437 • Grenada  
 
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  the Public Procurement Board; tenders below that threshold may be dealt with directly by the 
procuring entity . The valuation of tenders must follow the criteria specified in the tender documents. 
These criteria may include non -price factors, but they mus t be objective and be quantifiable in 
monetary terms to the extent possible. Abnormally low tenders may be rejected, in accordance with 
the Regulations.  
3.97.  Challenges to a contract award may be submitted to the procuring entity for reconsideration 
of a decisi on (or action) within five working days of the decision , or to the Procurement Review 
Commission for review of a procuring entity's decision/action within seven working days since the 
challenger became aware of the circumstances. The Commission's decision is final and binding, in 
terms of administrative acts; however, any aggrieved party may seek judicial review by the High 
Court.  
3.98.  There is an arrangement at regional level for the procurement of pharmaceutical and medical 
supplies.  
3.3.6   Competition policy and regulatory issues  
3.99.  Grenada does not have antitrust or any other kind of competition legislation. It has signed 
Protocol VIII revising the CARICOM Treaty, which provides for the enactment of harmonized 
competition legislation in CARICOM members. The protocol  provides for the establishment of a 
regional competition authority, to deal with issues at CARICOM level, and a national authority to 
deal with domestic issues.  
3.100.   Price controls are regulated by the Supplies Control (Prices) Regulations. The regulations set  
maximum retail and wholesale prices or mark -ups for a number of products included in 
two schedules, with three and four lists, respectively. Items under price control include food 
products, pharmaceuticals, clothing, stationery, and hardware products. On 14 July 2020, the 
Supplies Control (Prices) Regulations were amended in response to the public health crises; in this 
amendment, articles such as cleaning agents and hand sanitizers were made subject to price control. 
Prices are in general controlled by se tting a fixed mark -up for wholesalers, retailers or both. The 
Ministry of Trade is responsible for enforcing price controls.  
3.3.7   Intellectual property rights  
3.101.   The institutional framework for intellectual property rights (IPRs) in Grenada has remained 
unchanged since the previous Review. The main legislation concerning IPRs includes the Patent Act , 
2011; the Copyright Act , 2011; and the Trademarks Act , 2012. The Ministry of Legal Affairs has lead 
authority for the administration of intellectual property laws in G renada. The Registrar of the 
Supreme Court is responsible for the registration of patents, trademarks, and copyright.  
3.102.   Grenada is a member of the World Intellectual Property Organization (WIPO). It is also a 
signatory to the Berne Convention for the Protect ion of Literary and Artistic Works,  the Paris 
Convention for the Protection of Industrial Property, the Patent Cooperation Treaty, and the Beijing 
Treaty on Audiovisual Performances.  
3.103.   Patents and utility models are protected for 20 years after the filing da te of a complete 
specification. Patents are recorded in the Register and a notice is published in the Gazette . After four 
years from the filing date of a patent or three years from the date the patent was granted, whichever 
happens later, a person may apply to the High Court for a non -voluntary licence, on the grounds 
that the patented invention is not being exploited or is being insufficiently exploited by working the 
invention in Grenada, or by importation into Grenada. Parallel imports of patented go ods are 
permitted.57 
3.104.   The exclusive right to a trademark is acquired through registration in the Registry of Trade 
Marks of the Supreme Court of Grenada. The application must be submitted to the Corporate Affairs 
and Intellectual Property Office (CAIPO). Re gistration is granted for 10 years, and may be extended 
for the same duration. The granting of a trademark may be opposed; the opposition period is one 
month from the date of publication. The Trademarks Act recognizes first -use priority of a mark over 
 
57 Patents Act , Article  35. WT/TPR/S/ 437 • Grenada  
 
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  first-to-file. Registered marks that are not used within three years from their date of registration are 
vulnerable to a revocation action for non -use. 
3.105.   Well-known marks are recognized. The Act recognizes a right of priority, allowing the 
claimant of a mark to claim a priority right in filing the application in another country. A proprietor 
or licensee of a registered mark can give notice to Customs to restrict the importation of a good if 
such importation infringes his/her rights.  
3.106.   There is no specific legislati on pertaining to the protection of geographic indications (GIs). 
According to the authorities, GIs are protected under collective marks, in practice.  
3.107.   Copyright protection of literary, musical, and artistic works is for up to 50 years after the 
death of the  author (or the last surviving author), or after the year of publication, broadcast , or 
communication, if the latter takes  place after the death of the author. Collective works (other than 
of applied art or photography) and audiovisual works are protected for 50  years after the year of 
publication or the year of their availability to the public. Unpublished works, works originating in 
parties to international copyright conventions, or works produced by international organizations are 
also protected in the s ame manner.  
3.108.   The Copyright Act makes provision for restricting the importation of copies infringing 
copyright. Copyright holders may request Customs to prohibit imports of goods that may constitute 
an infringement of their rights for a period of five years or less. Upon application by the owner or 
exclusive licensee of a copyrighted work in Grenada, a court may direct the Customs Comptroller to 
detain the infringing imports.  
3.109.   There is no legislation providing specific protection for the layout designs of inte grated 
circuits, plant varieties, and undisclosed information. The authorities indicate that legislation on plant 
varieties is in currently being drafted.  
3.110.   As regards enforcement, the authorities state that because IPRs are private rights, "the 
burden is on  the right holder to enforce such rights".58 In order for penalties to be imposed, 
complainants must prove to the satisfaction of the Court that their interests have been prejudicially 
affected by the registration of patents, trademarks , or designs or that  their rights have been 
infringed.  
 
58 WTO document IP/Q/GRD/1, 8  June 2004, p. 1.  WT/TPR/S/ 437 • Grenada  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture and fisheries  
4.1.  The agriculture and fisheries sector remains the backbone of the rural economy. Although it 
accounted for around 6% of GDP over the review period (Tabl e 1.1), the sector is the fourth -largest 
employer. The agriculture sector is predominantly composed of small farms. In addition to scarce 
resources of land and water, as well as adverse natural conditions (e.g. hurricanes), other challenges 
facing the sect or include limited resources to enforce agriculture policies, limited investment in the 
sector, disorganized markets, and limited access to credit for producers. Climate change poses 
continuous risks to Grenada's agriculture and fisheries sector.  
4.2.  During th e review period, two  thirds of Grenada's merchandise exports were agricultural 
exports. Among agricultural and fisheries exports, fish accounted for half of the total in value terms, 
and the other half were mainly exports of fruits and vegetables (Table  4.1). Traditional agricultural 
products are spices, fruits and vegetables, and fish. The major exports of these products include 
cocoa, nutmeg, mace, and citrus fruits.  
Table  4.1 Agricultural exports, 2015 -21 
(XCD '000)   
2015  2016  2017  2018  2019  2020  2021  
Fruits and vegetables  5,624.1  5,811.3  7,968.4  7,984.8  7,280.5  3,377.6  5,849.7  
Spices  111.5  122.5  136.6  118.8  141.4  88.9 262.9  
Fish 5,322.9  6,949.2  5,281.1  5,697.2  8,834.8  4,313.7  5,953.5  
Source:  Information provided by the authorities.  
4.3.  Grenada is a net importer of food. Local production is able to satisfy 30% of the food consumed 
in Grenada , and the remaining 70% depends on imports, mainly from the United  States.  
4.4.  The Ministry of Economic Development, Planning, Tourism, ICT, Creative Economy, Agriculture 
and Lands, Fisheries and Cooperatives is responsible for devising and implementing Grenada's 
agriculture and forestry policy. The Ministry provides nonfinancial supp ort to the sector, through 
support services to farmers, such as market research and marketing assistance, and 
capacity -building through the Farmer Training Programme.  
4.5.  Grenada issued a National Agricultural Plan (2015 -2030) in August 2015. The policy object ive 
for the agriculture sector is to build an efficient and competitive agricultural sector. Other objectives 
and challenges include facing climate change and the heavy dependence on food imports. Achieving 
food security and building resilience in the agri culture and fisheries sectors are also national 
priorities. In this regard, the National Food and Nutrition Policy aims to create a mechanism to 
ensure access to food and nutrition available to all Grenadians. Also, a National Poultry Policy was 
developed and approved in 2017, with the aim of meeting the local demand for protein.  
4.6.  Tariff protection on agricultural imports is high. The majority of the agricultural lines 
(WTO  definition) are bound at 100%, while the simple average of MFN tariffs for agricultur e is 
19.6%. There are no tariff quotas on agricultural products (Section  3.1.3). Licensing requirements 
are applicable to a number of agricultural goods, such as whole chicken and eggs (Table  3.5). 
Licensing requirements for pasta, aerated beverages, curry  powder, and margarine were abolished 
on 15  May 2020 and replaced by higher tariffs when Grenada applied Article  164 of the Revised 
Treaty of Chaguaramas to suspend the CARICOM CET treatment of such products.  
4.7.  Grenada's traditional exports (cocoa, nutmeg, a nd minor spices) are marketed by commodity 
boards, including the Grenada Banana Co -operative Society (GBCS) , the Grenada Cocoa Association 
(GCA) , and the Grenada Cooperative Nutmeg Association (GCNA). The Grenada Minor Spices 
Co-operative Marketing Society  Limited has the exclusive right to export cloves, cinnamon, pimento , 
and all other spices except nutmeg and mace. The GCNA is the sole authorized exporter of nutmeg. 
The Marketing & National Importing Board (MNIB) markets Grenada's products not marketed b y any 
other statutory bodies.  WT/TPR/S/ 437 • Grenada  
 
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  4.8.  The Ministry of Agriculture provides planting materials for farmers at subsidized prices. The 
CET rates on agricultural inputs are low. The Ministry also provides veterinary services and pest 
control services for free. The Gre nada Development Bank (GDB) provides loans for the agriculture 
and fisheries sector. The authorities note that loans from the GDB are not preferential loans.  
4.9.  Financial incentives are granted to the sector in various forms, mostly tax and import duty 
conces sions; these include duty and tax concessions on farm vehicles, farm equipment, and farm 
inputs (Table  3.7). A fuel rebate is also offered to eligible fisher s. 
4.10.  Grenada has not submitted any notifications on domestic support measures  or export 
subsidies to the WTO Committee of Agriculture.  
4.11.  Fish is one of the few food items for which Grenada has achieved self -sufficiency. The fisheries 
subsector plays a key role in terms of food security and export earnings. The subsector has a large 
numb er of small -scale operators. Grenada's fisheries policy in the last 15 years has concentrated in 
expanding production of oceanic pelagic catch by facilitating the upgrade of the capacity of the fleet.  
4.12.  Among all fish caught in Grenadian waters, tuna and lob ster are the main exports; the 
principal markets for fish exports are the United  States, France, Canada, and Barbados. Fish exports 
are regulated by the Fish and Fish Product Regulation SRO 170/1999, administered by the Fisheries 
Division of the Ministry o f Agriculture, which has exclusive authority to grant licences for fish exports. 
Licences are valid for one year.  
4.13.  The legal framework for the fisheries subsector remains unchanged and consists of the 
Fisheries Act , 1986, and its implementing rules, the Fisheries Regulations , 1987. According to the 
authorities, some of the problems the industry faces include illegal fishing activities and inadequate 
access to transportation.  
4.2  Energy  
4.14.  Grenada depends almost entirely on fossil fuel imports for its energy needs. During the review 
period, Grenada started offshore exploration drills.  
4.15.  With regard to the electricity sector, Grenada created a new regulatory regime in 2016. The 
main legislation is the Electricity Supply Act , 2016, which entered into force on 1  August 2016. The 
Public Utilities Regulatory Commission (PURC) was created by the Act as the regulator for the sector. 
The Ministry of Infrastructure Development, Public Utilities, Energy, Transport & Implementation is 
the body responsible for formulating sectoral development policies and coordinating with other 
stakeholders of the sector.  
4.16.  The new regulatory regime opens up the power generation segment for competition from 
independent power producers (IPPs). An IPP must appl y for a licence from the PURC when it intends 
to generate and store electricity and sell it to the electricity network. According to the Electricity 
Supply Act, priority to grant an IPP licence must be given to applicants using renewable energy, or 
to appl icants who "would significantly reduce the cost of electricity to consumers, the carbon 
footprint of Grenada , and Grenada's dependence on imported fossil fuel".59 A licence is valid for 
25 years, extendable for up to another 5  years. Self -generators60 are not required to obtain a licence. 
As of end -September 2022, there are no IPPs licensed in Grenada, nor any framework for 
feed-in-tariffs.  
4.17.  Grenada Electricity Services limited (GRENLEC) is the sole provider of electricity services. 
Since 1961, it has had th e exclusive licence to generate, transmit, distribute, and sell electricity in 
Grenada (until 2073).61 However, since 2016 it no longer has a monopoly in generation. GRENLEC 
operates as a private company, but since December 2020 t he Government has held 50%  of its 
shares as a result from a settlement agreement with WRB Enterprises.  
 
59 Electricity Supply Act 2016 , Article  14. 
60 "Self-generators" are people who generate electricity only for their own use  and may sell excess 
electricity to the electricity network.  
61 As provided for in the Electricity Supply Ordinance, 1961 , and the Electricity Supply Act, 1994.  WT/TPR/S/ 437 • Grenada  
 
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  4.3  Manufacturing  
4.18.  The manufacturing sector is relatively small, accounting for 3.3% of GDP on average over the 
review period. Manufacturing activities are concentrated around the prod uction of light manufactures 
such as agro -processing and wood furniture.  
4.19.  The agro -processing subsector comprises a few medium -sized firms and over 265 small firms. 
They produce dry seasonings; wet seasonings and related products; wheat products; beverages,  
essence and alcoholic drinks; non -alcoholic bottled drinks and water; honey and honey products; 
confection ery, snacks and dried fruits; cassava products; meat and fish products; ice cream and 
dairy products; spice products ; and craft and cosmetic products. Most of the products are sold on 
the local market. The volumes of agro -processed exports are small; the authorities are of a view 
that the low export volume may be attributed to the non -availability of raw materials, an 
underdeveloped production system, and lack of capacity to comply with foreign technical regulations, 
standards , and SPS regulations in export markets.  
4.20.  The simple average tariff on manufactured goods (ISIC classification) was 11.1% in 2020, 
but there high tar iff dispersed, with a coefficient of variation nearing 1. The average tariff rate in the 
clothing sector was 19.9%. Tariff rates for alcoholic beverages are higher than the CARICOM CET 
rates, as Grenada lists these products "sensitive" on List C of the CAR ICOM CET Schedule. Also, 
effective from 15  May 2020, Grenada suspended application of CARICOM CET on 27 tariff lines until 
4 July 2029, 6 of which were on beverages, 4 on feeds, and 5 on wooden furniture.  
4.21.  The Fiscal Incentive Act and the Qualified Enterpri ses Act were repealed and replaced by the 
Investment Promotion Act. The then 15-year tax holiday provided for exporters of approved products 
manufactured by approved enterprises was discontinued.62 
4.22.  Under the new incentives scheme, incentives are accorded t o the manufacturing sector in the 
form of exemption or reduction in customs duty, VAT, excise tax, the CSC, and the property transfer 
tax (Table  3.7). In addition, up to 150% of qualified training costs for employees are deductible from 
corporate tax.  
4.4  Services 
4.23.  Grenada is a services -driven economy. The services sector accounted for nearly 60% of GDP 
in 2021. The landscape of the services sector has remained unchanged since last Review. The 
contribution of the private education subsector to real GDP continued  increasing63; it stood at 18.8% 
in 2021, compared to 14.1% in 2011 and 8.1% in 2006. Apart from education services, other main 
services components are real estate, renting and business activities; transport, storage, and 
communications; hotel and restaura nts; and financial services.  
4.4.1   Financial services  
4.24.  Financial services accounted for around 6% of GDP annually during the review period. On 
31 December 2018, the Offshore Banking Act and the International Insurance Act were repealed. 
Hence, effective 1  January  2019, there are no longer offshore banking or offshore insurance 
activities in Grenada. Services provided by institutions established before the end of 2018 were 
grandfathered for a three -year transition period, until 31  December  2021.  
4.25.  The Grenada Authori ty for the Regulation of Financial Institutions (GARFIN) is responsible for 
regulating all non -bank institutions, except commercial banks and securities businesses that are 
regulated by the Eastern Caribbean Central Bank (ECCB) and the Eastern Caribbean Se curities 
Regulatory Commission (ECSRC), respectively. Institutions regulated by GARFIN include credit 
unions, insurance companies, money services businesses, the G DB, and the Grenada Building and 
Loan Association.  
 
62 WTO documents G/SCM/N/284/GRD, G/SCM/N/315/GRD, and G/SCM/N/299/GRD, 21  April 2017.  
63 The auth orities indicate that this is the result of increases in private education, primarily due to the 
increase in non -national students attending St  George's University.  WT/TPR/S/ 437 • Grenada  
 
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  4.4.1.1   Banking  
4.26.  As of end -September 2022, there we re four banks licensed to operate in Grenada : one branch 
of a foreign bank, and three locally incorporated. Two of these four banks are foreign -owned.64 
4.27.  The ECCB Agreement Act and the Banking Act , 2015 (a model legislation designed by the 
ECCB ) are the main legislation governing banking activities in Grenada. The ECCB is the regulatory 
body for all financial institutions licensed under the Banking Act in Grenada. The Ministry of Finance 
is responsible for local supervision of the banking sector.  
4.28.  The licensing conditions for banks are the same across OECS countries. There are no 
limitations on foreign investment in commercial banks in Grenada. Foreign -owned banks licensed 
and incorporated in Grenada are subject to the same requirements as locally owned and locally 
incorporated banks and may provide the same services. Branches of foreign banks must submit 
additional information when applying for a licence to show that they are subject to effective 
supervision at home and must confirm that the regula tory body in their home jurisdiction does not 
object to the application.  
4.29.  The minimum capital required is XCD  20 million for banks, and XCD  5 million for credit or 
other financial institutions. The Banking Act requires licensed financial institutions to mai ntain a 
reserve fund, and to transfer to the fund at least 20% of their net profits whenever the reserve fund 
falls below 100% of their paid -up capital. The capital adequacy ratio has been raised to 8%.  
4.30.  Citizens and companies of Grenada are not restricted from borrowing or placing deposits with 
banks located abroad.  
4.31.  Credit unions are regulated and supervised by GARFIN, under the Cooperative Societies 
Act, 2011. The Act was amended in 2017. The capital adequacy ratio for credit unions is 7%. As of 
end-2021, GARFIN supervised 10 credit unions and the Grenada Cooperative League with a total 
asset of XCD  1.15 billion.  
4.32.  Activities of credit unions were increased generally during the review period. There were 
80,135  credit union members in 2021, up from 52,771 in 2 014. Total deposits from members 
reached almost XCD  979 million (XCD  430 million in 2014), while total loans extended to members 
climbed from XCD  367 million in 2014 to XCD  850 in 2021. Thus, the total interest income of the 
credit union sector was XCD  67 million, almost double the figure in 2014.  
4.4.1.2   Insurance  
4.33.  As of end -2021, there were 26 licensed insurance companies in Grenada, among which 
14 were in general insurance, 12 in long -term insurance, and 1 was a composite company.65 Total 
assets were XCD  497 million. Most insurance companies are branches or subsidiaries of regional 
companies.  
4.34.  The institutional framework for the insurance sector remained largely unchanged during the 
review period. The main legislation is the Insurance Act, and GARFIN remains as the  regulator and 
supervisor.  
4.35.  Insurance companies must be registered with GARFIN in its capacity as the Supervisor of 
Insurance. Foreign insurance companies may establish branches in Grenada. The minimum paid -up 
share capital is set at XCD  2 million for local  companies66 and XCD  5 million for foreign companies; 
the XCD  5 million 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.  
 
64 ECCB, Contact Information for Licensed Financial Institutions – Grenada . Viewed at: 
https://www.eccb -centralbank.org/p/grenada -1.  
65 In general, long -term insurance companies provide ordinary life insurance services, while general 
insurance companies provide mostly property and mo tor vehicle insurance.  
66 A local company is a company incorporated under the Companies Act, 1994, with not less than 51% 
of its issued share capital held by citizens of Grenada , or any company incorporated in a country, other than 
Grenada, which the Minist er has specified by Order in the Gazette for purposes of this definition.  WT/TPR/S/ 437 • Grenada  
 
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  4.36.  Apart from a higher capital requirement to be granted a licence to operate in Grenada, a 
foreign company must have been lawfully constituted in the country in which it was incorporated, 
and have undertaken insurance business in that country for at least five yea rs. It must appoint a 
resident person in Grenada to be its principal representative, who must have power of attorney and 
a principal office in the country.  
4.37.  Insurance (excluding reinsurance) companies are required to deposit cash, assets , or a 
combination o f both with the Supervisor of Insurance.67 Deposits for foreign -incorporated companies 
are higher. The deposit for long -term insurance businesses is XCD  250,000 for foreign companies, 
and XCD  150,000 for local companies. The deposit for general insurance b usinesses is XCD  150,000 
for foreign companies and XCD  50,000 for local companies, if these figures are higher than the 
amount of 40% of the previous year's net premium income. A ssociations of underwriters must be 
registered under the Insurance Act to carr y on any class of insurance business; they must deposit 
with the Supervisor of Insurance an amount equal to XCD 200,000.  
4.38.  The Supervisor of Insurance may grant approval for insurance policies to be placed with 
companies that are not registered under the Act , if she/he determines that it is not possible to obtain 
similar protection from a registered company. A person wishing to enter into an insurance contract 
(except reinsurance) with an insurer not registered under the Act must apply to the Supervisor of 
Insurance for permission to do so. This may be granted if the Supervisor is satisfied that it is not 
possible to obtain similar insurance protection at a comparable cost from an insurer registered under 
the Act.  
4.39.  An insurance company may not apply the assets of an insurance fund, directly or indirectly, 
to any class of insurance business other than that in respect of which the fund was established and 
is maintained.  
4.40.  Motor vehicles insurance against third -party risks is the only mandatory insurance in Grenada.  
4.41.  Insurance intermediaries (e.g. brokers and agents) must be licensed by GARFIN. As of 
end-2021, there were 21 insurance brokers and 15 agents. Only Grenadian citizens or nationals of 
CARICOM member States may be registered as insurance intermediaries.  
4.4.2   Telec ommunications  
4.42.  According to the authorities, since the Telecommunications Act (No.  31 of 2000, amended by 
Act No.  8 of 2001) entered into force, the telecommunication s market has been open to competition.  
4.43.  Despite the positive performance of Grenada's econom y during the review period, the 
telecommunication s sector did not mirror the trend of the macroeconomy. The total revenue in the 
sector continued to decline, reaching XCD  91 million in 2021, a contraction of 49% compared to 
2015. Similarly, the investment to the sector and employment directly by the sector were also on a 
declining trend (Table  4.2). 
4.44.  Telecommunications in Grenada have become increasingly mobile and broadband oriented. 
The fixed -line voice service penetration has gradually declined, due to a cancellation of subscriptions, 
while fixed broadband penetration climbed by 10  percentage points from 18.3% in 2015 to 28.4% 
in 2020. In contrast, mobile phone penetration reached a peak of 106%, before declining somewhat 
in the next few years. Mobile broa dband penetration grew remarkably from 28.2% in 2015 to 79.1% 
in 2021. Since 2017, every individual in Grenada has had access to broadband Internet services 
(Table  4.2). 
Table  4.2 Telecommunications statistics, 2015 -21 
Key indicator  2015  2016  2017  2018  2019  2020  2021  
Operator revenue (XCD  million)  177 174 150 166 160 147 91 
Investment (XCD  million)  29 18 20 17 16 15 13 
Employment  163 189 141 113 105 103 69 
Fixed voice service penetration 
(%) 25 24 23 28 22 17 23 
 
67 Assets registered with the Eastern Caribbean Central Securities Registry may be used as well . WT/TPR/S/ 437 • Grenada  
 
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  Key indicator  2015  2016  2017  2018  2019  2020  2021  
Fixed broadband penetration (%)  18.3 18.4 23 19.6 28.3 28.4 26.5 
Mobile service penetration (%)  110 108 102 106 104 105 90.8 
Mobile broadband penetration (%)  28.2 32.3 86.7 94.3 82.6 79.5 79.1 
Broadband Internet service 
penetration (%)  .. 50.7 109.7  113.9  110.9  107.9  .. 
Local traffic (million minutes)  311 292 250 274 354 303 39 
International outgoing traffic 
(million minutes)  90 24 18 10 17 12 4 
.. Not available . 
Source:  ECTEL,  Annual Electronic Communication Sector Review , and information provided by the 
authorities.  
4.45.  The legal and institutional framework for the telecommunications sector remained largely 
unchanged during the review period. The basic law is the Telecommunication s Act. The authorities 
indicate that an Electronic Communications Bill is pending promulgation to repeal the current 
Telecommunications Act. The National Telecommunications Regulatory Commission (NTRC) remains 
as the national regulatory agency, while the E astern Caribbean Telecommunications Authority 
(ECTEL) is the policy advisory body for the sector at regional level.  
4.46.  Anyone who wishes to provide public telecommunications services must apply for a licence 
from the NTRC. If a service provider would like to operate its own infrastructure (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 a particular type of service. There are no 
restrictio ns in foreign capital participation in telecommunications services.  
4.47.  As of end -2022, there were a total of six network operators offering fixed voice and 
broadband, mobile cellular and broadband, subscriber television , and submarine cable services. Two 
operators – Cable & Wireless (Grenada) Limited and Digicel – have licences to provide all types of 
services.  
4.48.  Telecommunications infrastructure, including submarine cable landing stations, is privately 
owned. In addition to the last mile connection to end users , each of the licensed operator owns its 
own telecommunications network. A licensed network operator must treat any other operator 
connecting to its network on a fair, reasonable, and non -discriminatory basis; this obligation is also 
applied to the branche s or subsidiaries of a dominant provider.68 Companies may freely negotiate, 
amend , or modify interconnection agreements, but the approval of the NTRC is required. Maximum 
interconnection rates are set by ECTEL.  
4.49.  Service providers are free to set tariffs for  services for which there is effective competition in 
the market. If the NTRC determines that there is a dominant position in the market, tariffs are set 
in accordance with conditions. The NTRC may designate a provider as a dominant 
telecommunication s provider in a particular service. In this case, the provider has the obligation to 
file its tariffs with the NTRC for approval; other service providers that are not in a dominant position 
only need notify the NTRC of their tariffs and may file any modification . 
4.50.  The NTRC may designate a particular telecommunications service as a regulated service if it 
determines that the degree of competition is not sufficient to protect consumers. For regulated 
services, price cap plans are elaborated at the regional level by ECTEL, in collaboration with the 
companies concerned. Currently, local fixed -line voice calls are designated as a regulated service, 
and subject to a price cap plan. There are no other services designated as regulated services.  
4.51.  Telephone numbers are alloca ted to licensed operators according to the National Numbering 
Plan. The NTRC manages the National Numbering Plan in conjunction with ECTEL. Numbers are 
portable across operators. Regarding radio frequency allocation for mobile telecommunications 
services, the service provider must obtain a Frequency Authorization from the NTRC. The NTRC 
manages the spectrum plan in conjunction with ECTEL and allocates frequency bands to operators 
based on need. The authorities state that the frequency allocations are based on technical 
assessments and the applicant's needs, which is dependent on the stage of technology development 
 
68 Cable & Wireless (Grenada) Limited is the only identified dominant service provider.  WT/TPR/S/ 437 • Grenada  
 
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  the applicants are in. If the band is in high demand, the allocation is conducted on a first -come , 
first-served  basis.  
4.52.  Universal service obligatio ns include the provision of public voice telephony, Internet access, 
and telecommunication s services to schools, hospitals, and similar institutions serving public needs. 
The Universal Service Fund (USF) compensates any provider that is required to provide  or promote 
the service; the USF is financed through licensed operators' contribution at a rate of 0.25% to 2% 
of their gross annual revenue.69 In recent years, the projects funded by the USF included providing 
broadband infrastructure to underserved locat ions, wireless Internet access at public locations, and 
ICTs for persons with impaired abilities.  
4.4.3   Transport  
4.4.3.1   Air transport  
4.53.  Air transport is the predominant mode of transport for people entering and departing the 
country. During the review period and until the onset of COVID -19 pandemic in 2020, Grenada 
experienced an expansion of air transport due to the rapid growth in tourism. Since May 2020, 
passenger traffic has declined sharply (Table  4.3). 
Table  4.3 Selected indicators of aviation, 2015 -21 
 2015  2016  2017  2018  2019  2020  2021  
Passengers ('000)  374,956  387,267  398,852  433,367  447,522  126,336  112,519  
Freight ('000 kg)  2,395,262  2,671,974  2,722,826  3,016,065  3,053,640  2,374,402  2,217,138  
Aircraft movements  13,337  12,833  13,078  13,534  12,970  6,015  6,155  
Source:  Information provided by the authorities.  
4.54.  During the review period, the legal and institution framework for air transport has remained 
unchanged. The main law for the sector is the Civil Aviation Act. The Ministry of Tourism, Civil 
Aviation and Culture is responsible for formulating policies related to air transport. The Air Transport 
Licensing Board is responsible for issuing air transport licences and permits, and for approving  tariffs 
for passengers and cargo transportation. The Eastern Caribbean Civil Aviation Authority (ECCAA) 
has the responsibility, at the regional level, for safety and security matters such as issuing air 
operator certificates (AOCs).  
4.55.  Anyone wishing to prov ide air transport services in Grenada must obtain an Air Transport 
Service Licence/Permit (for business authorization) from the Air Transport Licensing Board, and an 
air operator certificate for safety compliance from ECCAA. Air Transport Service Licences/ Permits 
are issued only to applicants who are a Grenadian or CARICOM nationals; applicants must have their 
principal business address registered within the territories of any CARICOM member States, and the 
business must be effectively controlled by Grenadi an/CARICOM nationals. The granting of licences 
or permits to non -nationals or bodies not incorporated in Grenada is subject to the approval of the 
Minister. Grenada does not have a national airline/flag carrier.  
4.56.  Grenada maintains four bilateral air service  agreements (BASAs) with its trading partners; 
the BASAs offer up to fourth freedom with restriction on ownership and designate. Due to the 
absence of a national carrier, Grenada in its BASAs applies CARICOM ownership, designating any 
CARICOM -based carrier s as its carrier when enforcing the agreements. Grenada 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, wh ile fifth 
freedoms are exchanged on a bilateral basis, and day tour regimes may also be negotiated.  
4.57.  There are two airports in Grenada: the Maurice Bishop International Airport and the Lauriston 
Airport (located on the island of Carriacou). Both airports ar e owned by the Government. The 
Grenada Airport Authority, a public entity, manages and operates the airports. Private companies, 
regardless of ownership or nationality, are allowed to provide ground -handling services such as 
passenger processing, cargo han dling, catering, and ramp operations. Currently, only the Airport 
Authority provides ground -handling services through its wholly  owned subsidiary company, Aviation 
 
69 The rate is 0.25% for their first year of licence and 0.5% for the second year.  WT/TPR/S/ 437 • Grenada  
 
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  Services of Grenada Ltd. Air fuelling is provided by Chevron West Indies Ltd.  According to the 
authorities, a request by private companies to participate in airport operations must be submitted 
to the Airport Authority, which will review the proposal and produce an agreement with the services 
providers when the proposal is approved . Airport fees are regulated.  
4.4.3.2   Maritime transport  
4.58.  Grenada does not have a merchant marine.  
4.59.  The legislative framework for maritime transport remained unchanged during the review 
period. The main law on merchant shipping is the Shipping Act. Pursuant to the A ct, to be registered 
as Grenadian, a vessel must be substantially owned by Grenadian/CARICOM member state nationals 
(natural or legal persons). Non -incorporated companies may be authorized by the Minister, on 
condition that the company is established and h as its principal place of business in Grenada, where 
the majority of the ownership of the company is vested in Grenadian citizens, and the company is 
managed by Grenadian citizens.  
4.60.  Cabotage is not permitted. Inter -island ferry services are provided by Ospr ey Lines Ltd, a 
domestic carrier.  
4.61.  There are six ports operational in the country, three of which are dedicated to yachting.70 The 
Port of St  George 's is the major gateway of maritime transport in and out of Grenada, receiving calls 
of cruise ships and merc hant ships. All non -yachting ports are owned by the Government. The 
Grenada Ports Authority, a public entity, is responsible for managing and operating the country's 
seaports, regulating navigation, and providing port services and pilotage services. Privat e sector 
companies (including foreign companies incorporated as local subsidiaries) may apply to the Grenada 
Ports Authority to provide services within privately  owned terminals, but not in the main commercial 
seaports. Charges levied on carriers and passe ngers are determined by the Government by way of 
the Ports Authority Tariff.  
4.4.4   Tourism  
4.62.  Having recovered from the adverse impact from the two hurricanes earlier this century, the 
tourism sector experienced a strong expansion during the review period until the COVID -19 
pandemic hit the country. The authorities are of the view that much of this expansion was attributed 
to an increase in foreign direct investment. Tourism exports are Grenada's largest foreign exchange 
earner.  
4.63.  The tourism sector recorded a 36% increase in total visitor arrivals from 2014 to 2019. The 
COVID -19 pandemic caused a sharp decline  in tourist arrivals, which declined further in 2021, 
standing at 14% of the pre -pandemic level. Usually, around 30% of the arriving visitors stay at le ast 
one night in the country. The United  States and the United  Kingdom  are the largest markets for 
tourism exports; combined, these tourists 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  386,674  426,869  474,201  468,877  528,637  525,957  216,867  71,861  
Stay-over visitors  125,224  132,547  135,369  146,374  160,975  162,902  43,815  42,099  
United  States  35,145  40,914  45,316  54,801  61,422  62,232  17,171  20,754  
Canada  13,229  10,790  10,723  11,383  13,784  14,539  4,059  2,256  
United  Kingdom  23,285  24,681  24,108  22,501  22,753  22,520  6,846  6,094  
Caribbean  21,790  22,364  23,121  25,269  27,000  27,718  5,305  2,697  
Other countries  31,775  33,798  32,101  32,420  36,016  35,893  10,434  10,298  
Excursionists  1,660  1,579  3,566  1,061  555 532 84 0 
Cruise ship passengers  235,140  270,628  314,913  299,449  342,826  337,912  162,517  25,027  
Yacht passengers  24,650  22,115  20,353  21,993  24,281  24,611  10,451  4,735  
Cruise ship calls  156 193 257 291 246 254 99 37 
 
70 The dedicated yachting ports are St  Davids, Prickly Bay, and La Phare  Blue. WT/TPR/S/ 437 • Grenada  
 
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   2014  2015  2016  2017  2018  2019  2020  2021  
Total visitor expenditure 
(XCD million ) 362.25  392.52  372.40  390.58  568.34  572.45  158.04  171.42  
Source:  ECCB, Real Sector Statistics – Selected Tourism Statistics . 
4.64.  During the pandemic, tourism receipts dropped due to the fall of arrivals; several tourism and 
auxiliary services businesses were closed. There is, however, no official estimate of revenue loss. To 
face these challenges, the Government rolled out several support measures to mitigate the impact 
on the sector. The measures included payroll support and unemployment support for individuals. 
Also, through the G DB, the Government injected an additional XCD  5 million to make credit available 
for small hoteliers and businesses.  
4.65.  Grenada made specific GATS commitments on hotel development, limited to hotels with a 
capacity in excess of 100 rooms. The development of hotels with fewer rooms is subject to an 
economic needs test. Foreign suppliers may hire foreign staff only at managerial and specialist levels, 
if the skills are in short supply or not available locally.  
4.66.  The Ministry of Economic Development, Planning, Tourism, ICT, Creative Economy, 
Agriculture and Lands , Fisheries and Cooperatives  is the policy maker for the tourism sector. The 
Grenada Tourism Authority (GTA), established in January 2014, is the national tourism organization 
responsible for tourism development. The GTA's functions include product develop ment, quality 
assurance and licensing, research, planning, and marketing.71 The Grenada Hotel and Tourism 
Association, the Marine and Yachting Association of Grenada, the Grenada Water Taxi Association, 
and the National Taxi Association are sectoral bodies  representing the private sector in the tourism 
industry. According to the authorities, emphasis is being placed on developing community tourism 
and niche tourism products such as diving, eco -tourism , and a "total spice experience".  
4.67.  In November 2021, the M inistry issued a National Sustainable Tourism Development Plan. In 
the Plan, the authorities have a vision to "create a regenerative tourism industry that empower s 
Grenadians while providing an authentic and unique experience for all".72 Therefore, being inclusive 
and sustainable are identified as the policy objectives for the tourism sector. In order to materiali ze 
the vision, the authorities designed an action plan containing a series of initiatives , and they estimate  
that USD 22.8 million of investment is needed to complete the action plan.  
4.68.  Foreign nationals may own land and purchase property in Grenada.73 The authorities note 
that there are no restrictions on foreign capital participation in the tourism sector, including hotel 
accommod ation, restaurant and culinary services, recreational facilities, and tourism operators. 
Foreign investments in the tourism sector , including tourism accommodation and tourism services , 
are eligible for the fiscal incentives provided by the Investment Prom otion Act (Table  3.7). Most 
requirements are related to service qualification and financial prudence. These requirements are 
equally applied to foreign nationals and CARICOM nationals.  
4.69.  The marine and yachting segment of the tourism industry, regulated by t he Grenada Yachting 
Act, 2000, has been identified as one of the "export -ready" subsectors, i.e. one in which 
infrastructure and regulations are in place for the development of a competitive sector.  
  
 
71 Grenada Tourism Authority , About Grenada Tourism Authority . Viewed at: 
https://www.puregrenada.com/grenada -tourism -authority/ .  
72 Government of Grenada (2021), National Sustainable Tourism Development Plan . 
73 Foreign nationals are required to apply for an Alien Landholding licen ce issued by the Minister for 
National Security.  WT/TPR/S/ 437 • Grenada  
 
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  Table  A1. 1 Merchandise visible exports by SITC section, 2014 -21 
(USD million and %)  
Description  2014  2015  2016  2017  2018  2019  2020  2021   
(USD million)  
Total exports  37.4 34.9 30.1 30.0 31.3 31.3 22.3 29.5 
Domestic exports  33.3 33.0 28.0 27.8 28.8 29.1 20.3 27.2 
Re-exports  4.1 1.9 2.1 2.2 2.5 2.2 2.0 2.2          
 
(% of total exports)  
0. Food and live animals  70.1 75.3 73.0 71.2 62.6 57.8 59.0 60.8 
1. Beverages and tobacco  3.1 2.5 2.6 6.5 8.2 13.1 16.0 15.9 
2. Crude materials, inedible, except 
fuels 0.1 0.1 0.1 0.4 1.6 1.0 0.7 0.3 
3.  Mineral fuels and related materials  0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.1 
4.  Animal and vegetable oils, fats and 
waxes  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
5. Chemicals and related products  4.5 4.3 3.4 4.0 5.6 6.8 6.5 4.4 
6. Manufactured goods  8.8 6.7 6.8 7.5 6.7 6.5 9.3 9.0 
7. Machinery and transport equipment  10.1 7.2 9.1 8.7 13.3 12.7 7.4 7.5 
8. Miscellaneous manufactured articles  3.3 3.6 4.9 1.7 2.0 2.1 1.1 2.0 
9. Commodities and transactions not 
classified elsewhere in SITC  0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  Eastern Caribbean Central Bank (ECCB) . Viewe d at: https://www.eccb -
centralbank.org/statistics/trades/cou ntry-report . 
  WT/TPR/S/ 437 • Grenada  
 
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  Table  A1. 2 Merchandise visible imports by SITC section, 2014 -21 
(USD million and %)  
Description  2014  2015  2016  2017  2018  2019  2020  2021   
(USD million)  
Total exports  339.6  348.9  350.5  420.3  466.9  474.6  393.0  449.8           
 
(% of total imports)  
0. Food and live animals  22.8 21.3 21.6 18.6 18.1 20.2 21.3 20.9 
1. Beverages and tobacco  2.6 3.4 3.8 5.7 2.6 2.8 2.9 2.4 
2. Crude materials, inedible, 
except fuels  2.0 2.2 2.5 2.6 2.5 2.2 2.6 3.3 
3. Mineral fuels and related 
materials  25.9 17.8 16.1 13.2 16.7 16.4 14.3 15.2 
4. Animal and vegetable oils, fats 
and waxes  0.5 0.5 0.5 0.4 0.4 0.4 0.5 0.5 
5. Chemicals and related products  7.2 8.9 8.4 7.2 7.0 7.6 9.3 9.2 
6. Manufactured goods  13.0 14.1 14.8 16.0 17.3 16.7 15.9 17.0 
7. Machinery and transport 
equipment  16.0 17.4 18.4 21.3 20.4 22.1 22.1 19.3 
8. Miscellaneous manufactured 
articles  9.9 14.5 13.8 15.0 14.9 11.4 11.2 12.2 
9. Commodities and transactions 
not classified elsewhere in SITC  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  Eastern Caribbean Central Bank (ECCB), available at: https://www.eccb -
centralbank.org/statistics/trades/country -report .