RESTRICTED  
  
WT/TPR/G/437  
29 March 2023 
(23-0379) Page: 1/94 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
OECS -WTO  MEMBERS  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by  
the OECS -WTO Members  is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on the OECS -WTO Members . WT/TPR/G/437 • OECS -WTO Members  
 
- 2 - 
 
  Contents  
COMMON REP ORT ................................ ................................ ................................ ............  7 
1   INTRODUCTION  ................................ ................................ ................................ ..........  7 
2   THE OECS DEVELOPMENT POLICY FRAMEWORK  ................................ ..........................  8 
2.1   The OECS Development Strategy  ................................ ................................ .................  9 
2.2   The Strategic Planning Framework of the OECS Commission  ................................ ...........  10 
2.3   Sectoral Developments, Policies and Strategies  ................................ .............................  11 
2.3.1   Tourism  ................................ ................................ ................................ ................  11 
2.3.2   Agriculture  ................................ ................................ ................................ ............  12 
2.3.3   Manufacturing  ................................ ................................ ................................ ....... 13 
2.3.4   Development of Trade (Exports), MSMEs, Competitiveness, Entreprene urship  .................  14 
3   TRADE POLICY AND INSTITUTIONAL FRAMEWORK  ................................ ...................  15 
3.1   Trade Policy in the OECS  ................................ ................................ ...........................  15 
3.2   Strengthening OECS Trade Policy Coordination  ................................ .............................  16 
3.3   Supporting National Trade Policy Making  ................................ ................................ ...... 17 
3.4   Private Sector Engagement  ................................ ................................ ........................  17 
4   REGIONAL INTEGRATION  ................................ ................................ ..........................  18 
4.1   Implementation of the Eastern Caribbean Economic Union (ECEU)  ................................ ... 18 
4.1.1   Movement of persons  ................................ ................................ .............................  19 
4.1.2   Establishing the OECS Customs Union and Free Circu lation of Goods  .............................  19 
4.1.3   Implementation of the OECS Free Trade in Services Regime ................................ .........  20 
4.2   The CARICOM Single Market and Economy (CSME)  ................................ ........................  20 
4.2.1   Trade in Goods  ................................ ................................ ................................ ...... 21 
4.2.2   Trade in Services  ................................ ................................ ................................ ... 21 
4.2.3   Chapter 7 of the RTC  ................................ ................................ ..............................  21 
4.2.4   Protocol on Enhanced Cooperation  ................................ ................................ ............  22 
5   BILATERAL TRADE AGREEMENTS  ................................ ................................ ...............  22 
5.1   CARICOM Bilateral Arrangements  ................................ ................................ ................  22 
5.2   CARIFORUM -EU and UK Economic Partnership Agreement  ................................ ..............  23 
6   NON-RECIPROCAL TRADE AGREEMENTS ................................ ................................ .... 23 
7   MULTILATERAL TRADING SYSTEM - THE WTO  ................................ ...........................  23 
8   CONCLUSION ................................ ................................ ................................ .............  25 
 
ANTIGUA AND BARBUDA  ................................ ................................ ................................  27 
1   ECON OMIC ENVIRONMENT OVERVIEW  ................................ ................................ ...... 27 
2   POLITICAL STRUCTURE  ................................ ................................ .............................  29 
3   TRADE AND INVESTMENT POLICY  ................................ ................................ .............  30 
3.1   Trade policy framework  ................................ ................................ .............................  30 
3.2   Government procurement  ................................ ................................ ..........................  30 
3.3   Standards and other technical requirements  ................................ ................................ . 30 WT/TPR/G/437 • OECS -WTO Members  
 
- 3 - 
 
  3.4   Sanitary and phytosanitary measures  ................................ ................................ ..........  32 
3.5   Import licenses and quantitative restrictions  ................................ ................................ . 32 
3.6   Customs valuation and rules of origin  ................................ ................................ ..........  33 
3.7   State trading enterprises  ................................ ................................ ...........................  33 
3.8   Safeguards  ................................ ................................ ................................ ..............  33 
3.9   Anti-dumping and countervailing measures  ................................ ................................ .. 34 
3.10   Competition policy and price controls  ................................ ................................ .........  34 
3.11   Intellectual Property Rights  ................................ ................................ ......................  34 
3.12   Investment  ................................ ................................ ................................ ............  35 
4   SECTORAL DEVELOPMENT  ................................ ................................ .........................  35 
4.1   Services  ................................ ................................ ................................ ..................  36 
4.2   Financial Sector  ................................ ................................ ................................ ........  37 
4.3   Telecommunications  ................................ ................................ ................................ . 37 
4.4   Maritime transport services  ................................ ................................ ........................  37 
4.5   Institutional Framework  ................................ ................................ .............................  38 
5   TRADING ARRANGEMENTS  ................................ ................................ ........................  38 
5.1   Regional Integration  ................................ ................................ ................................ . 38 
5.1.1   OECS Economic Union  ................................ ................................ ............................  38 
5.1.2   Caribbean Community  ................................ ................................ ............................  38 
5.1.3   CARIFORUM -EU and UK Economic Partnership Agreement  ................................ ............  38 
5.2   Preferential Trading Arrangements  ................................ ................................ ..............  39 
5.2.1   CARICOM bilateral trade arrangements  ................................ ................................ ..... 39 
5.2.2   Non-reciprocal trade agreements  ................................ ................................ .............  39 
5.2.3   Multilateral trading system - The WTO  ................................ ................................ ...... 39 
5.2.4   DS: 285:United States — Measures Affecting the Cross -Border Supply of Gambling and 
Betting Services  ................................ ................................ ................................ ..............  39 
6   CONCLUSION ................................ ................................ ................................ .............  40 
 
DOMINICA  ................................ ................................ ................................ .....................  41 
1   INTRODUCTION  ................................ ................................ ................................ ........  41 
2   RECENT E CONOMIC PERFORMANCE  ................................ ................................ ...........  42 
3   CHALLENGES FACING DOMINICA  ................................ ................................ ..............  42 
4   GOVERNMENT'S MEDIUM TERM DEVELOPMENT STRATEGY  ................................ ........  43 
5   SECTORAL DEVELOPME NTS AND PROGRAMMES  ................................ ........................  44 
6   THE ENABLING ENVIRONMENT AND THE CLIMATE FOR INVESTMENT  .......................  46 
7   TRADE POLICY AND NATIONAL ECONOMIC DEVELOPMENT  ................................ ....... 47 
8   REGIONAL INTEGRATION  ................................ ................................ ..........................  48 
8.1   The OECS Economic Union  ................................ ................................ .........................  48 
8.2   The CARICOM Single Market and Economy (CSME)  ................................ ........................  48 
9   BILATERAL/HEMISPHERIC AND PREFERENTIAL TRADE ARRANGEMENTS  .................  49 
9.1   CARICOM Bilateral Arrangements  ................................ ................................ ................  49 WT/TPR/G/437 • OECS -WTO Members  
 
- 4 - 
 
  9.2   CARIFORUM -European Union (EU)/United Kingdom (UK) Economic Partnership Agreement 
(EPA)  ................................ ................................ ................................ .............................  49 
10   MULTILATERAL TRADING SYSTEM - THE WTO  ................................ .........................  49 
11   TRADE FACILITATION IN DOMINICA – EFFORTS TO ESTABLISH A SINGLE WINDOW
 ................................ ................................ ................................ ................................ ...... 49 
12   CONCLUSION  ................................ ................................ ................................ ...........  50 
 
GRENADA  ................................ ................................ ................................ .......................  51 
1   ECONOMIC PERFORM ANCE  ................................ ................................ ........................  51 
2   HOME -GROWN STRUCTURAL ADJUSTMENT PROGRAM (HGSAP)  ................................  52 
3   MAJOR INITIATIVES  ................................ ................................ ................................ . 54 
3.1   National sustainable Development Plan 2020 -2035 ................................ ........................  54 
3.2   National Export Strategy (NES) -2017-21 ................................ ................................ ...... 55 
3.3   The Reform and Modernisation of Micro, Small and Medium Sized Enterprises (MSMEs) in 
Grenada  ................................ ................................ ................................ .........................  55 
3.4   New Incentive Regime  ................................ ................................ ...............................  55 
4   TRADE POLICY AND INSTITUTIONAL FRAMEWORK  ................................ ...................  55 
4.1   Inflation  ................................ ................................ ................................ ..................  56 
4.2   Public debt  ................................ ................................ ................................ ..............  56 
4.3   Sectorial Performance  ................................ ................................ ...............................  56 
4.3.1   Agriculture and Fishing  ................................ ................................ ...........................  56 
4.3.2   Construction  ................................ ................................ ................................ .........  57 
4.3.3   Tourism  ................................ ................................ ................................ ................  57 
4.3.4   Private Education  ................................ ................................ ................................ ... 58 
4.4   Preferential Market Access and Free Trade Agreements  ................................ ..................  58 
4.4.1   OECS Economic Union  ................................ ................................ ............................  58 
4.4.2   The CARICOM Single Market and Economy (CSME)  ................................ .....................  58 
4.4.3   CARICOM Bilateral Arrangements  ................................ ................................ .............  58 
4.4.4   CARIFORUM -UK ................................ ................................ ................................ ..... 58 
4.4.5   CBI ................................ ................................ ................................ ......................  59 
4.4.6   CARIBCAN  ................................ ................................ ................................ ............  59 
4.4.7   CARIFORUM -UK Agreement  ................................ ................................ .....................  59 
4.4.8   Multilateral Trading System  ................................ ................................ .....................  59 
5   CONCLUSION ................................ ................................ ................................ .............  60 
 
SAINT KITTS AND NEVIS  ................................ ................................ ...............................  61 
1   INTRODUCTION  ................................ ................................ ................................ ........  61 
2   SECTOR DEVELOPMENT  ................................ ................................ .............................  61 
2.1   Agriculture  ................................ ................................ ................................ ..............  61 
2.2   Services  ................................ ................................ ................................ ..................  62 
2.3   Tourism (and travel)  ................................ ................................ ................................ . 62 WT/TPR/G/437 • OECS -WTO Members  
 
- 5 - 
 
  2.4   Financial services  ................................ ................................ ................................ ..... 63 
2.5   Telecommunications  ................................ ................................ ................................ . 63 
2.6   Manufacturing  ................................ ................................ ................................ ..........  63 
3   TRADE RELATIONS  ................................ ................................ ................................ .... 64 
4   TRAD E POLICY AND IMPLEMENTATION  ................................ ................................ ..... 64 
5   FISCAL POLICY  ................................ ................................ ................................ ..........  65 
6   MONETARY POLICY  ................................ ................................ ................................ ... 65 
7   CONC LUSION ................................ ................................ ................................ .............  65 
 
SAINT LUCIA  ................................ ................................ ................................ ..................  66 
1   INTRODUCTION  ................................ ................................ ................................ ........  66 
2   MACROECONOMIC DEVELOPMENTS AND TRADE PERFORMANCE  ...............................  66 
2.1   Economic Performance  ................................ ................................ ..............................  66 
2.2   Fiscal and Debt Performance  ................................ ................................ ......................  68 
2.3   Balance of Payments  ................................ ................................ ................................ . 69 
3   SAINT LUCIA'S TRADE RELATIONS  ................................ ................................ ............  71 
3.1   The Organization of Eastern Caribbean States (OECS)  ................................ ....................  71 
3.2   CARICOM Single Market and Economy (CSME)  ................................ ..............................  71 
3.3   CARICOM Bilateral Agreements  ................................ ................................ ...................  72 
3.3.1   CARIFORUM -European Union (EU) Economic Partnership Agreement (EPA) .....................  73 
3.3.2   CARIFORUM -United Kingdom (UK) Economic Partnership Agreement (EPA)  ....................  74 
4   SECTORAL DEVELOPMENTS  ................................ ................................ .......................  74 
4.1   Major Cross -Cutting Sectoral Initiatives  ................................ ................................ ....... 74 
4.2   Medium Term Development Strategy 2021 -2026 ................................ ...........................  74 
4.3   The National Export Strategy ................................ ................................ ......................  75 
5   SECTORAL DEVELOPMENT  ................................ ................................ .........................  76 
5.1   Tourism Sector  ................................ ................................ ................................ .........  76 
5.2   Agriculture, Forestry and Livestock Sector  ................................ ................................ .... 76 
5.3   Manufacturing  ................................ ................................ ................................ ..........  77 
5.4   Services  ................................ ................................ ................................ ..................  78 
5.4.1   Financial Services Sector  ................................ ................................ ........................  79 
5.5   Information and Communication Technology (ICT) and E -Commerce  ................................  79 
6   TRADE FACILITATION  ................................ ................................ ...............................  80 
7   CONCLUSION ................................ ................................ ................................ .............  80 
 
SAINT VINCENT  AND THE GRENADINES  ................................ ................................ .........  82 
1   INTRODUCTION  ................................ ................................ ................................ ........  82 
1.1   Challenges  ................................ ................................ ................................ ..............  83 
2   MACROECONOMIC AND TRADE PERFORMANCE  ................................ .........................  84 
2.1   Overview of Macroeconomic Performance  ................................ ................................ ..... 84 WT/TPR/G/437 • OECS -WTO Members  
 
- 6 - 
 
  2.2   Fiscal Performance  ................................ ................................ ................................ .... 85 
2.3   Balance of Payments  ................................ ................................ ................................ . 85 
3   TRADE AND INVESTMENT PATTERNS  ................................ ................................ .........  85 
3.1   Merchandise Trade ................................ ................................ ................................ .... 85 
3.2   Trade in Services  ................................ ................................ ................................ ...... 86 
3.3   Foreign Direct Investment  ................................ ................................ .........................  86 
4   TRADE POLICY INITIATIVES  ................................ ................................ .....................  88 
4.1   Trade Policy Formulations and Implementation  ................................ .............................  88 
4.2   Trade Regime  ................................ ................................ ................................ ..........  89 
5   TRADING ARRANGEMENTS  ................................ ................................ ........................  91 
5.1   Regional Integration  ................................ ................................ ................................ . 91 
5.2   Bilateral and Hemispheric Trade Arrangements  ................................ .............................  92 
5.3   Multi- Lateral Framework: The WTO and the Uruguay Round  ................................ ...........  93 
6   THE WAY FORWARD  ................................ ................................ ................................ .. 93 
 
 
  WT/TPR/G/437 • OECS -WTO Members  
 
- 7 - 
 
  COMMON REPORT  
1  INTRODUCTION  
1.1.  The fourth (4th) Trade Policy Review of the OECS WTO Member States covers a period during 
which the region has endured several significant external economic and environmental shocks.  
1.2.  Between 2014 and 2018, OECS WTO Members were dealt with the devastating impacts of the 
hydrometeorological disasters that descended on the islands. In 2015 the passage of tropical storm 
Ericka caused severe flooding and landslides in Dominica resulting in significant infrastructural 
damage and loss, totalling XCD 1.3 billion (US D 483 million ), equivalent to approximately 90% of 
Dominica 's Gross Domestic Product (GDP). In 2017 two category 5 hurricanes wreaked physical and 
economic havoc. In early September  2017, Hurricane Irma hit Anguilla, Antigua and Barbuda, the 
British Virgin Islands, and  Saint Kitts and Nevis. Later in September hurricane Maria made landfall 
in Dominica and impacted Antigua. Irma 's wrath was most damaging to the island of Barbuda where 
81% of buildings were reported to have been destroyed or severely damaged, and the isla nd deemed 
uninhabitable, as all resident households (HHs) on Barbuda were seriously affected by the hurricane. 
Total damages to Antigua and Barbuda were assessed at US D 136 million and losses at 
USD 18.9 million. The combined value of destroyed assets and disruptions in the production of goods 
and services was equivalent to about 9 % of the country 's GDP (current terms) in 2016 .1 
Hurricane  Maria was most destructive to Dominica resulting in the total damages assessed at 
XCD 2.51 billion (US D 931 million) an d losses of XCD 1.03 billion (US D 382 million), amounting to 
226% of 2016 GDP .2 
1.3.  From the second quarter of 2020 the OECS along with the rest of the world experienced the 
unprecedented impacts of the lockdowns, border closures, travel bans and strict social distancing 
protocols that were taken in response to the COVID -19 pandemic. For the small, vulnerable, open, 
and highly trade dependent OECS Member States, these measures had a devastating impact on their 
production and trade, particularly in the travel and tourism related sectors upon which most of the 
OECS economies heavily rely. Fo llowing aggressive vaccination efforts, authorities have gradually 
eased public health restrictions including those associated with movement of people across the 
borders. This together with various levels of fiscal stimulus packages have seen a rebounding in 
tourism and tourism related activities.  
1.4.  In the midst of COVID -19, the region faced another natural hazard of the geophysical type. On 
9 April 2021, the La Soufrière Volcano in Saint Vincent  and the Grenadines erupted for the first time 
after 40  years, sending an ash plume 10km into the sky causing widespread devastation and forcing 
the evacuation of 20% of the population from homes and communities while its ashfall affected 
neighbouring islands. Total damages was assessed at XCD 416.07 million (US D 153.5 million) and 
losses of XCD  218.57 million (US D 80.6 million) which cumulatively are equivalent to 18.1% of the 
country 's 2020 GDP. S aint Vincent and the Grenadines was also impacted by Hurricane Elsa which 
struck the island on 2 July 2021 causing severe damage to housing and infrastructure.  
1.5.  The impact of the COVID -19 pandemic worldwide, was also felt on the food security of the 
OECS as the ability of various socio -economic classes to access their food supplies was hampered 
due to the interruptions in the supply chains through production and trade. Global food prices had 
also been on the rise due to increased global demand, drought reduced supplies, high energy prices 
and some export bans .3 The Russian -Ukraine conflict has had a significant impact on the s upply of 
several key agricultural commodities. Due to trade patterns, the fallout from the disruption in exports 
from the Russia n Federation  and Ukraine has not directly affected the OECS, however there has 
been an indirect impact through rising prices.  
1.6.  The last eight years has therefore been a clear manifestation of the continued vulnerability of 
the OECS region to various exogenous economic, environment and climatic shocks. OECS  Member 
States continue to be challenged in their attainment and maintenance o f sustainable economic 
 
1 ACP-EU Natural Disaster Risk Reduction Program (2017), Hurricane Irma and Maria Recovery Needs 
Assessment for Antigua and Barbuda.  
2 The Government of Dominica (November 2017), Post -Disaster Needs Assessment Hurricane Maria 
18 September  2017.  
3 Viewed at:  https://www.fas.usda.gov/data/ukraine -conflict -and-other -factors -contributing -high-
commodity -prices -and-food-insecurity . WT/TPR/G/437 • OECS -WTO Members  
 
- 8 - 
 
  growth trajectories. Their capacity to bounce back from the negative impacts of these types of 
external shocks have also been tested exposing the fragility of the OECS economies.  
1.7.  That the OECS Member States have endured and indeed s till recovering from these shocks is 
an indication of a certain level of resilience that is inherent in these small island developing states, 
but at the same time, the need to consolidate, fortify and enhance the resilience of the economies, 
the people and  the institutions to deal with ongoing shocks and bracing for future ones.  
1.8.  During the period of the last trade policy review, the OECS -WTO Member States' trade policies 
and procedures were plagued by the effects of the global economic and financial crisis of 2008 and 
a series of natural disasters in the region. As part of its strategic response to secure higher and 
sustained levels of economic growth and development, the Joint Report of the OECS emphasised the 
decision of OECS Member States to establish the  OECS Economic Union to serve as the platform for 
enhanced growth and development prospects for the OECS region. This was reflected in the then 
OECS Growth and Development Strategy (OGDS). This report on the fourth trade policy review 
highlight the main de velopments within the policy, legislative, regulatory and institutional framework 
for trade policy development and implementation at the OECS subregional level.  
2  THE OECS DEVELOPMENT POLICY FRAMEWORK  
2.1.  Given the vulnerabilities and challenges inherent in their small size and emanating from the 
uncertainty and turbulence that can characterize their external environment, and which has framed 
their macroeconomic performance and outlook, the decision to pursue a deeper form of regional 
integration through the establishment of the Eastern Caribbean Economic Union in 2011 remains 
overarching development policy framework for the OECS Member States creating the basis for joint 
action in charting the collective social and economic future of the Member States.  
Box 1 The Organisation of Eastern Caribbean States Economic Union  
The Organization of the Eastern Caribbean States (OECS) was established under the Treaty of Basseterre in 1981. 
It is a grouping of eleven small island developing States in the Eastern Caribbean. Full membership comprises the 
independent States of Antigua and Barbuda, Dominica, Grenada, S aint Kitts and Nevis, Saint Lucia and 
Saint Vincent and the Grenadines, and the non -independent State of Montserrat. Anguilla, the British Virgin 
Island s, Guadeloupe, and Martinique are associate members of the OECS. The six independent members of the 
OECS are also Members of the World Trade Organization (WTO).  
 
On 18 June 2010, the OECS Member States signed the Revised Treaty of Basseterre (RTB) establi shing the OECS 
Economic Union in an effort to deepen the existing level of integration among themselves. The RTB entered into 
force on 21 January 2011.  
 
The main purposes of the Organisation include promoting cooperation and maintaining unity and solidarit y among 
the Member States; assisting the Member States in the realisation of their obligations and responsibilities to the 
international community; pursuing harmonised foreign policy to the fullest extent possible; and to be an 
institutional forum to discu ss and facilitate various reforms for development. The establishment of the Economic 
Union as a single economic and financial space is also a major purpose of the organisation. To achieve these 
purposes, Member States have committed to implement decisions of the organization under the RTB and to 
endeavour to coordinate, harmonize and undertake joint actions and pursue joint policies in a range of areas 
including international trade agreements and other external economic relations; intellectual property righ ts; and 
economic integration of the Member States through the provisions of the Economic Union Protocol.  
 
In Article 5 of the RTB provision is made for delegating to the OECS, the authority to legislate in certain areas of 
competence or to receive acts and  regulations and orders made by the Organisation with the intention that the 
Acts, Regulations and Orders have direct effect in the laws of the Member State. Article 14 sets out the areas of 
legislative competence which Member States have agreed to accord to the Organisation subject to stated caveats. 
These include:  
 
● Common market including customs union;  
● Monetary policy, the competence in this category to be exercised on the recommendation of the monetary 
council;  
● Trade policy;  
● Common commercial policy; an d  
● Environmental policy.  
 
The establishment and operationalisation of the Economic Union is set out in the Protocol of Eastern Caribbean 
Economic Union (The Protocol). Article 1 establishes the economic union; Article 2 sets out the objectives; and WT/TPR/G/437 • OECS -WTO Members  
 
- 9 - 
 
  Article  3 the principles. The remainder of the Protocol governs the components of the Economic Union including 
the Customs Union with Free Circulation of Goods (Articles 4 to 10); the movement of persons (Article 12); the 
development, coordination and harmonisati on of policies (Articles 13 to 26) and the free movement and trade in 
services (Article 27).  
 
The governance framework for the OECS Economic Union is manifested in five Organs that are established in 
Articles 7 to 12 of the RTB.  
 
● The OECS Authority , compo sed of the Member States represented by their Heads of Government, is the 
supreme policy -making Organ of the Organisation. It is responsible for and has the general direction and 
control of the performance of the functions of, and progressive development o f the Organisation and the 
achievement of its purposes.  
● The Council of Ministers  comprises appointed Ministers of Government from each member state. It is 
responsible to the OECS Authority, takes appropriate action on any matters referred to it by the Authority 
and having the power to make recommendations. The Council of Ministers has  the power to make 
decisions on all matters within its competence under Article 9. The Council meets in various configurations 
based upon the subject matter under consideration.  
● The OECS Assembly  comprises five members of the Parliament of each independent  Member State and 
three members from the legislature of each non -independent member state. The Assembly considers and 
reports to the OECS Authority and the Council of Ministers on proposals to enact Acts or Regulations of 
the Organisation or any other matt er referred to it by the Authority.  
● The Economic Affairs Council  is composed of such Ministers of Government named by the Heads of 
Government of Member States. The function of the EAC are those entrusted to it under the Economic 
Union Protocol.  
● The OECS Co mmission  is responsible for the general administration of the Organisation and comprises 
the Director -General and one Commissioner of Ambassadorial rank named by each Member State. The 
Commission is responsible for servicing meetings of the Organs of the O rganisation; and (b) taking up 
action on decisions, recommendations or directives approved at such meetings.  
 
2.1  The OECS Development Strategy  
2.2.  One of the main objectives of the Economic Union is economic growth, development and 
international competitiveness by the convergence and coordination of the economic policies of 
Protocol Member States. Article 13 of the Protocol recognises the OECS Development Strategy (ODS) 
as an important framework for advancing action towards realising this objective. It also oblig ates 
participating Member States to set general and specific developmental objectives arising from the 
ODS. Up to 2018, this was manifested in the OECS Growth and Development Strategy (OGDS). As 
stated in the OECS Joint Report at the last review, the OGDS set out a growth and development 
path for the OECS that took full advantage of the economic leverage inherent in the creation of the 
single economic and financial space of the Economic Union.  
2.3.  In 2018, the OECS adopted a new Development Strategy: Shaping ou r Shared Prosperity 2019 
to 2028. This new OECS Development Strategy (ODS) succeeds the OGDS and represents a new 
systematic approach to holistically respond to the ongoing and emerging threats to the social and 
economic development of the OECS and its peo ples. It reaffirms the commitment of the OECS 
Member States to achieving sustainable development and takes cognisance of the different levels of 
national development among Member States as well as the need for Member States to individualize 
policies and st rategies. Consequently, the responses it advances will require action at the national 
and regional levels. In this regard the ODS will neither replace nor supersede national development 
plans therefore many items of strategy will be associated with complim entary national and regional 
actions.  
2.4.  Like the OGDS before it, the ODS is grounded in Article 13 of the RTB Protocol and thus exists 
within the symbiotic intervention framework of the Economic Union and the governance apparatus 
that supports its operation.  There is a non -hierarchical relationship between national development 
strategies and the ODS. The ODS outlines common calculated actions that Members States will 
jointly and/or individually undertake with the aim of achieving mutually desired outcomes; wh ile, 
national development strategies are developed in the pursuit of national interest - which includes 
those objectives that are commonly shared within the OECS Economic Union as well as those that 
are idiosyncratic to each Member State.  
2.5.  The ODS has been developed around three pillars:  
1. Generating Economic Growth.  WT/TPR/G/437 • OECS -WTO Members  
 
- 10 - 
 
  2. Promoting Human and Social Wellbeing.  
3. Sustainable Use of Natural Endowments.  
 
2.6.  In respect of pillar 1, Member States have agreed that the economic growth to be generated 
should be at a level that allows for a meaningful reduction to the persistently high rates of 
unemployment that continues to fatigue Member States. The main objective of pillar 2 is to improve 
the quality of life of every citizen of the OECS territory through equitable and eas y access to quality 
social services, including health, education and social protection services. Pillar 3 is founded on a 
vision of sustained, inclusive and sustainable socio -economic growth that supports the livelihoods 
and aspirations of present and futu re generations of OECS citizens. It seeks to promote and maintain 
environmental integrity while supporting enhanced growth, productivity, social equity, resilience and 
adaptive capacity.  
2.7.  The OECS has received support from the OECD Development Centre for th e development of a 
regional strategy scorecard consisting of 40 indicators that run across the pillars of the Development 
Strategy (economy, social, and environment), allowing policy makers to set priorities in 
implementation based on measurable results. T he support has also produced, a report that identifies 
opportunities and constraints, and sets the priorities for the implementation of the ODS: 
(1) investing in renewable energy, and strengthening regulation, the business environment, and the 
financial se ctor; (2) boosting value -added in tourism, expanding digital services, and promoting the 
sustainable ocean economy and agriculture; (3) closing the skills gap, enhancing the quality of 
education, and improving social protection.  
2.2  The Strategic Planning Fram ework of the OECS Commission  
2.8.  Administering, coordinating and supporting the work of the Member States within the Organs 
of the OECS in the implementation of the RTB and ODS, is the role of the OECS Commission. As one 
of the principal Organs of the OECS, it  is responsible for the general administration of the 
Organisation. This constitutes functions related to research and analysis, advice, and 
recommendations, monitoring and reporting, and coordinating the operations and functions of the 
other organs of the  Organisation.  
2.9.  The functions and responsibilities of the OECS Commission are executed through the Director 
General of the Organisation having responsibility for the day -to-day administration of the 
organisation; and the staff of the OECS Commission. Since the last review, the work programme of 
the Commission has been elaborated within a strategic planning framework that has identified 5 or 
6 strategic priorities with related goals to be pursued by the Commission over 6 years with 
2-triennium periods. Table 1 below shows the OECS Strategic Priorities for 2018 –21. 
Table 1: OECS Strategic Priorities: 2018 –21 
 
2.10.  Through an inclusive and consultative process, involving Member States and staff, a new 
Strategic Plan for 2021 to 2027 has been developed. Table 2 and 3 below set out the strategic 
priorities, objectives, and cross -cutting themes.  
WT/TPR/G/437 • OECS -WTO Members  
 
- 11 - 
 
  Table 2: OECS Strategic Priorities: 2021 –27 
 
Table 3: OECS Strategic Plan Cross Cutting Themes  
 
 
2.11.  The 2021 -27 Strategic Plan sets out the Commission 's understanding of the  drivers that will 
shape the future of the OECS and identifies the approach it will take within this strategic context, 
and highlights the Commission 's priorities in providing value for its Member States and Development 
Partners.  
2.3  Sectoral Developments, Pol icies and Strategies  
2.3.1   Tourism  
2.12.  Tourism remains the dominant economic sector for the OECS. The share of tourism receipts 
as a percentage of exports in the Member States is among the highest in the world, with the OECS 
average in 2019 standing at 57% - well ab ove the Caribbean Community 's (CARICOM) average 
value of 43.6%. Much of the region 's employment also relies on tourism, ranging from 35% in 
Dominica, the lowest level, to almost 90% in Antigua and Barbuda. According to ECCB 's estimates 
for 2019, growth in the hotel and restaurant sector in the ECCU4 more than tripled, reaching 14.5% 
in 2019. This trend continued until February 2020, when the COVID -19 pandemic hit the 
OECS  Region. Preliminary arrival data for 2022 reveals that several of the OECS countries have 
reached 75% of their pre -pandemic stayover arrival figures. However, the intra -regional (Caribbean) 
market and the Cruise sector has not achieved that level of recove ry.  
2.13.  In the OECS Development Strategy, the specific objective for the tourism sector is to 
contribute to an environment that maximally leverages in a sustainable manner the tourism sector 
for generating output and creating jobs, thereby contributing to the  attainment of GDP growth and 
reduced unemployment. The elements of the strategic framework for the sector is as follows:  
• Ease of intra -regional travel: implement a system of hassle free travel within the 
Economic Union; and improve access and transportati on. 
• Effective Marketing: Develop an OECS Tourism Marketing Strategy; and identify, launch 
and establish collaborative marketing initiatives for niche tourism.  
• Improved Research and Development: Comprehensive, evidence ‐based analysis and 
information on the tourism sector to inform policy and decision -making.  
 
4 Which includes data for Anguilla and Montserrat.  
WT/TPR/G/437 • OECS -WTO Members  
 
- 12 - 
 
  • Sustainable Tourism: Expand Community Participation in tourism; Environmental and 
Cultural Sustainability; Develop inter -sectoral business linkages; Investment and 
Product Development; and Human Resource  Development.  
2.14.  The need to strengthen the competitiveness of Tourism in the OECS has been cited, and the 
advent of COVID -19 has compounded this necessity. Coming out of the pandemic, with the lifting of 
travel restrictions, Tourism will become even more fie rcely competitive globally, as destinations 
aggressively promote to regain market share. The OECS must boost competitiveness and build 
resilience.  
2.15.  The OECS Commission, funded under the 11th EDF RIGHT programme, is undertaking tourism 
product enhancement t hrough Community -based Tourism, Historic/Heritage Tourism and Tourism 
Niche Marketing (including culinary, eco -tourism, digital nomad) initiatives, to attract new market 
segments encouraging value -added visitor experiences and spending. This approach allow s for a 
more inclusive, authentic offering and promotes greater linkages with the agriculture and orange 
economies.  
2.16.  With the funding support from the World Bank in 2023/24 the OECS Commission will embark 
on a comprehensive revision and updating of the OEC S Common Tourism Policy (2011), paying 
particular attention to the inclusion of the Blue Economy to increase competitiveness. The updated 
OECS Tourism Policy is expected also to contain guidance on sustainable tourism development and 
climate -smart and resi lience policies to foster a prosperous and more equitable tourism industry.  
2.17.  In 2021, the OECS signed on to the Glasgow Declaration for Climate Action in Tourism. 
Sensitisation has begun on Climate Action in Tourism and work is on -going on the development a nd 
implementation of an action plan.  
2.18.  At a wider regional level, the OECS has also contributed to the CARICOM Tourism Policy 
(2021).  
2.3.2   Agriculture  
2.19.  The agricultural sector (including fishery and forestry) accounts for less than 10% of GDP for 
five of the six OECS countries and for four of the countries Government expenditure on the 
agriculture sector is less than 1.5 % of GDP. The removal of preferent ial access to banana and sugar 
markets in particular over the last three decades) have led to even greater dependence on one 
economic sector, the tourism sector, resulting in increased economic vulnerability. Growing and 
diversifying the agricultural secto r can increase economic balance and regional prosperity.  
2.20.  The six OECS countries all import greater than 50% of the food they consume, with four 
countries importing greater than 80%. There are several imported products that can be replaced by 
domestic prod uction to reduce the food import bill, increase national and regional food self -reliance 
and regional economic growth and development.  
2.21.  In the OECS Development Strategy, the specific objective for the agricultural sector is to 
increase output and employment  in the agricultural sectors, thereby improving livelihoods in the 
rural economy. The components of the strategic framework are as follows:  
• Increasing production  
• Expand market opportunities within the OECS  
2.22.  In the last two years the uncertainty and instabil ity around food and agriculture supply chains 
have increased the urgency for the Governments of the OECS region to implement a cooperative 
regional approach to the transformation of their food and agriculture sectors. This increased 
insecurity of food supp lies results from the impacts of the Russia -Ukraine war, the COVID  pandemic, 
climate change, a weak multilateral development cooperation environment and an increasing digital 
divide.  
2.23.  The recently completed (May 2022) OECS Food and Agriculture Systems Tran sformation 
(FAST) strategy is a response to the call for increased food security, food self -reliance and WT/TPR/G/437 • OECS -WTO Members  
 
- 13 - 
 
  agricultural development across the OECS. It should also be noted that the FAST Strategy takes into 
consideration the OECS 's commitments within the wid er CARICOM 25 by 2025 Food Security 
Initiative.  
2.24.  The FAST Strategy is a regional -level strategy that promotes linkages across the OECS 
countries to create synergies that increase the capacity to address specific priority national and 
regional challenges. T his regional strategy will guide and therefore the interventions championed by 
the OECS Commission for the next decade and will focus the actions proposed across 7 pillars 
including governance, implementation and institutional support (pillar 1). In this r egard the 
Commission will develop and institute a projectized approach to the FAST strategy with the first 
phase being four years in duration.  
2.3.3   Manufacturing  
2.25.  The manufacturing sector is an important generator of employment and contributor to 
merchandise ex ports for the OECS. The contribution of the sector to regional GDP has, however, 
deteriorated since the last review from 4.2% to 3.7% averaging 3.8% from 2015 to 2021. Growth 
in manufacturing output declined by 0.2% from 2015 to 2021 but grew by 1.5% up ti ll 2019. Main 
exports of the sector include beverages and spirits, wheat or meslin flour, pebbles, gravel and natural 
sands, fish and crustaceans, bananas including plantains, animal feed, nutmeg, cartons and boxes 
of paperboard, paints, cocoa and roots an d tubers.5 
2.26.  Despite some successes, the manufacturing sector in the OECS has not reached its full 
potential. Due to a combination of various factors, including repeated brushes with severe weather 
events, pressures from lower -cost regional competitors, and  significant structural impediments, the 
sector remains an underdeveloped yet a vital component of the OECS region 's economic base .6 The 
major challenges that are faced by OECS manufacturers, as documented in several sector studies, 
are inter alia: 
1. High cost of energy  
2. High cost of labour  
3. Limited pool of skilled and semi -skilled labour  
4. Small domestic markets  
5. High transportation cost  
6. Relatively small size of firms  
7. Relatively high cost of compliance with export market entry requirements  
8. High cost of fin ancing  
9. Limited research and development expenditure and support infrastructure  
10. Limited incorporation of modern production techniques.  
 
2.27.  In addition, the potential of the regional and global export market in some industries has not 
been adequately exploited because of the small -scale nature of production and/or the inability of 
many producers to meet certification requirements for market access. In respect to the latter, the 
small scale of operation is often a factor mitigating against certification  as the relative cost (cost as 
a ratio of expected production) of certification is typically inversely related to operating scale. 
Furthermore, as MSMEs, many of the operators in the sector are not appropriately resourced to 
adequately attain critical mark et information, to assist in penetrating new markets and increasing 
volume and market share in existing markets (domestic and external).  
2.28.  In the OECS Development Strategy, the specific objective for the manufacturing sector is to 
increase the rate of growth  in the manufacturing sector as a means of contributing to the realisation 
of GDP growth and reduced unemployment. The elements of the strategic framework for the sector 
is as follows:  
• Increase production through general sectoral support as well as targete d support for 
the regional processing and labour intensive tradeables subsectors;  
 
5 ITC Trade Map. Viewe d at: www.oecs.org/en/trade -map. 
6 OECS, 2020, COVID -19 and Beyond.  WT/TPR/G/437 • OECS -WTO Members  
 
- 14 - 
 
  • Position OECS manufactures as high value -high spend products targeted at the growing 
number of socio -ecological and health conscious consumers;  
• Targeting the opportunities in  the regional economy as a vehicle for enhancing growth 
in the sector;  
• Laying a platform for entry into Global Innovation for Local Market (GILM) Industries . 
2.3.4   Development of Trade (Exports), MSMEs, Competitiveness, Entrepreneurship  
2.29.  Increasing trade and part icular exports, through enhanced competitiveness, MSME 
development, entrepreneurship and trade promotion is a priority for the OECS Member States and 
a key element of OECS regional trade policy. The Competitive Business Unit (CBU) located in 
Dominica is ta sked with this function.  
2.30.  The pursuit of this task has been through the lens of Micro, Small and Medium -Sized 
Enterprises (MSMEs) as these firms represent a significant component of the economic engine within 
the OECS Member States. Preliminary business de mography data indicate that 97.7% of private 
businesses in the OECS are MSMEs. MSMEs contribute significantly to GDP and employment7 and 
thus play a pivotal role in economic sustainability and development with respect to jobs, livelihood 
and well -being.  
2.31.  The COVID -19 pandemic had a significant and negative impact on the majority of businesses 
operating in the OECS Member States. Ninety per cent (90%) of businesses responding to an OECS 
survey8 and just over 70 % in the ECCB Business Outlook surveys indicate d that they were negatively 
impacted. In a Caribbean Export -CDB survey9 the average response of businesses when asked how 
the pandemic impacted their businesses on a scale of 1 -5 (with 1 being not significantly and 5 being 
significantly) was 3.85.  
2.32.  OECS go vernments implemented various measures to help alleviate the short -term liquidity 
crisis that many businesses have been facing. While all businesses in general have been affected by 
the pandemic, micro, small and medium enterprises (MSMEs) have been more s trongly impacted. 
Their smaller size, fewer resources and lower reserves make them more vulnerable to crises and 
shocks. Furthermore, there are long -term, underlying and inherent challenges that have been facing 
MSMEs that have been exacerbated and exposed  by the pandemic.  
2.33.  Recognizing the importance of MSMEs, the OECS and other regional governments have 
developed various policy, legislative and regulatory frameworks to support the sector. At the national 
level, specific policies and accompanying legislation  for MSMEs are in place in five of the six 
independent OECS Member States. These define, regulate, facilitate the formalisation of, and 
support the MSME Sector at the national level. At the regional level, Article 53 of The CARICOM 
Revised Treaty of Chagua ramas commits Member States to adopt appropriate policy measures to 
encourage the development of competitive MSMEs. The 2017 Regional MSME policy is in pursuit of 
this mandate.  
2.34.  The OECS Commission has also recognized the need for a specific regional MSME policy 
framework and through the CBU has initiated work towards this end. The proposed OECS Policy 
Framework For MSME Development and Trade Competitiveness will seek to address MSME 
development and competitiveness at three levels. At the enterprise level, the goal is to enhance the 
capacity and capability in a number of core areas including accessing inputs, production, standards 
and quality compliance, marketing and distribution, and leadership and management. At the 
business ecosystem level, the policy wo uld focus, inter alia , on access to financing and financial 
services including digital financial services, the quality infrastructure, transport and trade logistics 
and ICT. The OECS has recognised the need to strengthen the enabling environment for busine ss. 
Attention would be paid to the collection, analysis and dissemination of quality and up to date 
 
7 The CARICOM Regional MSME Policy document (2017) placed MSM Es’ contribution to GDP at 60% with 
contribution to job creation at 45% in CARICOM Member States.  
8 The survey was conducted between March and April 2020 with 158 businesses responding from OECS 
Member States.  
9 Conducted between April –May 2020, with 484 r esponses from CARICOM plus the Dominican Republic. 
OECS businesses constituted about 26% of the responses  WT/TPR/G/437 • OECS -WTO Members  
 
- 15 - 
 
  disaggregated data on MSMEs for evidence -based policy making. There is a need for increased 
formalisation of the MSME sector. Strengthening of the policy, r egulatory and institutional framework 
for research, development and innovation; intellectual property protection, entrepreneurship and 
digital transformation is also envisioned.  
2.35.  With support from development partners, several technical assistance and capa city building 
initiatives are being implemented.  
• The Trade Enhancement in the Eastern Caribbean (TEECA) Project10 sought to 
accelerate trade between the English and French Eastern Caribbean countries and 
beyond by tackling exportation challenges, boosting the exportation of goods and 
services, connecting companies in the region, and the development of a market 
inform ation platform ; 
• The Eastern Caribbean Green Entrepreneurship Initiative implemented incubator and 
accelerator Programmes focused on Sustainable and Green Adoption in Business11; 
• The Technology Competitiveness Hub for Innovation and Entrepreneurship impleme nted 
incubator and accelerator programmes focused on technology adoption in business12; 
• The Regional Integration Through Growth and Harmonization (RIGHT) programme 
supports export promotion through a virtual expo, quality assurance improvement and 
certific ation, developing an e -learning and mentorship platform, and an OECS 
entrepreneurship simulator13; 
• The Digital Skills component of the Caribbean Digital Transformation Project will design 
and implement frameworks for regional and national digital skills tr aining programmes.  
• The Unleashing the Blue Economy in the Caribbean (UBEC) Programme will provide 
USD 6.5 Million airmarked for the implementation of a Matching Grant activity for the 
direct development of Blue Economy .14 Well over 200 MSMEs is envisioned to benefit 
from this programme.  
3  TRADE POLICY AND INSTITUTIONAL FRAMEWORK  
3.1  Trade Policy in the OECS  
3.1.  Trade policy has been defined as the various courses of actions and the practices that 
governments adopt to influence and r egulate the composition, level (quantity and value), and 
direction of trade (imports and exports) .15 For the small highly open, island developing states of the 
OECS, the primary preoccupation in the formulation, development and implementation of trade 
policies continues to be the need to expand and diversify their exports; the need to enhance their 
trade competitiveness in order to achieve this; and the need to more effectively participate in and 
leverage the opportunities, rules, development support and fl exibilities that exist in the range of 
trade agreements and instruments to, and of which, the OECS Members States are parties and 
beneficiaries. This focus stems from the set of physical characteristics, circumstances, and contexts 
of the OECS Members Stat es and which has framed their trade and development trajectories over 
the past decades. These include the composition of their economies, the overall trade performance 
and position, and the narrow composition and orientation of their trade, particularly ex ports.  
 
10 Funded by Interreg Europe.  
11 Funded by the Global Green Growth Institute (GGGI) through the Qatar Fund for Development.  
12 Funded by the Compete Cari bbean Partnership Facility.  
13 Funded under the 11th EDF RIGHT Programme.  
14 Funded by the World Bank (Grant and Loans) and benefitting Grenada, Saint Lucia and Saint Vincent 
and the Grenadines.  
15 Viewed at: https://www.studysmarter.co.uk/explanations/microeconomics/market -efficiency/trade -
policy/ ; http://ctrc.sice.oas.org/trc/ CommonPages/TradePolicy_e.asp ; https://www.igi -
global.com/dictionary/trade -policy/52533 ; https://www.th ebalancemoney.com/what -is-trade -policy -5217002 ; WT/TPR/G/437 • OECS -WTO Members  
 
- 16 - 
 
  3.2  Strengthening OECS Trade Policy Coordination  
3.2.  With the signing and entry into force of the Revised Treaty of Basseterre, the OECS Member 
States have committed to coordinating the formulation and implementation of their trade policy at 
the OECS level.  Under Article 4.2 Member States agreed to endeavour to coordinate, harmonise, 
and undertake joint policy actions and pursue joint policies in a number of areas in or related to 
trade policy. In Article 14.1, Member States agreed to accord to the Organisat ion under Article  5.3 
and subject to Article 5.4 legislative competence in relation to, inter alia , trade policy. While in 
Article  18 of the Protocol, Member States agreed to establish institutional arrangements at the 
Protocol Member State level to prosecute common trade policies with respect to third countries or 
groups of third countries.  
3.3.  At the ministerial or political level, the Council of Ministers: Trade (CoM -Trade) is the focal 
organ for trade policy making in the OECS. It is responsible to th e OECS Authority to take appropriate 
action on any trade policy matters referred to it by the OECS Authority and shall have the power to 
make recommendations to the OECS Authority. At its Fourth Ordinary Meeting held on 
24 November  2022, the Council adopte d a more structured and regularised agenda for its meetings 
and agreed to having two meetings annually.  
3.4.  At the technical level, trade policy coordination has been driven by senior trade officials. 
Previously and until recently this was in the form of an O ECS Trade Negotiations Group (TNG) which 
was established by the OECS Authority in June 2002. The TNG 's membership comprised trade 
officials and representatives of the private sector from each Member State and the staff of the TPU 
of the OECS Commission. Th e primary objective of the TNG had been to facilitate the formulation of 
OECS positions on external trade negotiations issues by assisting member states in their 
participation in all trade negotiations fora and to provide a formal mechanism for engagement of 
national public and private sector representatives on trade -related matters. The last and 22nd 
meeting of the TNG was in December 2016. Since then, Senior Officials or Technical Working Groups 
have been convened to discuss and address specific matters o r to coordinate on specific issues.  
3.5.  In 2019, with support under the EU -funded ACP TradeCom II Programme, work was undertaken 
to strengthen the technical and coordination capacity of the OECS to assess, evaluate, represent, 
and advance its economic integrat ion and trade policy interests at the regional, bilateral, and 
multilateral levels. The following were key interventions of technical assistance and capacity building 
completed under the project.  
• Scholarships for two cohorts of students to pursue Master of  International Trade Policy 
Scholarships funded - 31 scholarship awardees.  
• Six short courses in trade related areas in the following areas completed by UWI (at 
least 100 persons from the OECS trained).  
○ Competition Law and International Trade Policy  
○ Caribbe an Community Law and the Caribbean Court of Justice  
○ Customs and Customs Administration in CARICOM/OECS  
○ Trade and the Blue Economy  
○ Trade Negotiations, Cooperation and Leadership  
○ International Trade Policy for the Business Professionals  
 
• ITC Analytical tools  (Trade Map and Market Access Map) embedded on the OECS website 
to improve access to trade related data.  
• Three value chain studies completed on cocoa, roots and tuber.  
3.6.  Another result of the project was the recognition of the need to for the development of a single, 
modernized and strengthened OECS trade policy development, consultative and coordinating 
mechanism, led at the top by the OECS Council of Ministers of Trade, advised by an OECS Trade 
Policy Committee (TPC) with inputs from National Trade Policy Framework in each Member State 
and supported by the OECS Commission. At its Fourth Meeting on 24 November  2022 the CoM -Trade 
endorsed the establishment of an OECS Trade Policy Committee.  WT/TPR/G/437 • OECS -WTO Members  
 
- 17 - 
 
  3.7.  Support for the work of the CoM -Trade and the TPC is provided by the Trade Policy 
Development Unit (TPDU) of the Economic Affairs and Regional Integration Division of the 
Commission. The TPDU services and provides analysis, advice and rec ommendations to CoM -Trade 
and TPC. At the Multilateral level, the Permanent Delegation of the OECS in Geneva also provides 
technical services including representing the trade and development interests and concerns of the 
OECS principally at the WTO and col laborates with the TPDU in the coordination of OECS positions 
on the work of the WTO.  
3.8.  Increasing the capacity of OECS Member States and their constituent stakeholders to more 
effectively engage in trade policy implementation within the OECS trade policy co ordinating 
framework is a key concern of the OECS Commission. The Commission has, therefore, engaged 
development partners such as the WTO, UNCTAD, ITC, UWI -SRC, and others to provide technical 
assistance and capacity building activities to Member States. T his would include organising short 
courses and training programmes to build the capacity at various levels and areas in the Member 
States. Delivering work products that can contribute to increasing knowledge on trade policy issues 
is also a goal of the TPD U. This ranges from the ongoing reports, working documents and technical 
papers to publish a periodic OECS Trade Report and an annual trade performance review report.  
3.9.  A significant constraint to the effectiveness of OECS Trade Policy Coordination is the cu rrent 
limitations in human resources at the TPDU. Given the scope of work involved in trade policy -making 
at the OECS, the TPDU currently staffed by two technical officers is severely under -resourced. A 
further challenge is the inability to identify and se cure qualified and experienced individuals to fill 
the human resource gaps. The cadre of international public servants is limited by the type of skills 
and competencies and experience required.  
3.10.  Efforts are being made to implement strategies and approaches to obtain the required human 
resources through a rotation of short attachments and internships which will also provide capacity 
building and experience to the incumbent trade officials within Member States but also to qualified 
persons in the private secto r. Engagement with development partners will also be undertaken to 
obtain short - to medium -term technical assistance to support specific initiatives such as the 
operationalisation of the Customs Union.  
3.3  Supporting National Trade Policy Making  
3.11.  At the nationa l level, trade policy making is led by the Ministry designated with the portfolio 
usually with the nomenclature "Trade ", "External Trade " or "Foreign Trade ". This Ministry would be 
responsible through the Minister to the Cabinet which is responsible for se tting policy and to 
Parliament which sets the legislative and regulatory through laws and regulations enacted.  
3.12.  Trade policy formulation and implementation involves the Permanent Secretary, Directors of 
Trade and other trade officials of the Ministry along  with counterparts in the relevant Ministries, 
Departments and Agencies of the public sector. Outside the public sector are the whole range of 
non-state actors including the Private Sector and Civil Society who are the actual actors in trade or 
which are a ffected by it. These include the economic operators, business support organizations and 
other collective representative associations. This requires the existence of a structured and robust 
consultative, deliberative and decision -making framework to ensure effective policy coordination and 
coherence.  
3.13.  Another output of the ACP -TradeCom II project was a best practice manual and terms of 
reference for the establishment of national trade policy committees in each Member State. Ministers 
at the 4th CoM -Trade reco gnised the critical importance of having at the national level a functioning, 
effective and inclusive consultative, deliberative and decision -making mechanism for the 
identification and articulation of trade policy interests and concerns and recommended th at Member 
States take steps to establish or strengthen their national trade policy frameworks taking into 
account the best practice manual and the terms of reference.  
3.4  Private Sector Engagement  
3.14.  The OECS Member States and Commission recognises the critical n eed for private sector 
involvement in trade policy formulation and implementation. The public sector implements policies, 
laws, regulations that create the enabling environment for trade to take place, but it is the private WT/TPR/G/437 • OECS -WTO Members  
 
- 18 - 
 
  sector which produces the goods and services for trade. It is also recognised that the two sectors on 
their own cannot effectively and efficiently address inherent failures on both sides. Public -Private 
dialogue promotes transparency, good governance and accountability; creates greater t rust, 
understanding, certainty, predictability and confidence in the private sector; and provides the basis 
for effective business advocacy in policy formulation and implementation.  
3.15.  In 2015, to have the private sector play a more substantive role in the ec onomic affairs of 
the region a private sector body called the OECS Business Council (OBC) was commissioned and 
established in July 2015. The OBC 's governance structure is made up of an Executive Board led by 
an appointed President. Executive Members are Na tional appointees stemming from the private 
sector from each Member State. The objective of the OBC is to provide an avenue to bring all major 
business players to the table to begin to form an autonomous voice that can speak to governments 
with authority r egarding the types of policies, incentives and infrastructure required to improve the 
ease of doing business in the OECS.  
3.16.  In the years of its existence, the OBC experienced several challenges that hindered the 
fulfilment of its mandate and attainment of it s objectives and led to its dormancy. These included:  
• Lack of sustainable technical support;  
• Weak institutional capacity for full time operations;  
• Weak framework for the National Representation constitutional setup of the OBC;  
• Absence of a governance framework; and  
• lack of sustainable resources to ensure the longevity of the Council operations.  
3.17.  The OECS Commission, with resources under the R.I.G.H.T Programme is now actively 
seeking to revitalise and strengthen the OECS Business Council so t hat it can effectively advocate 
and represent the interests of the private sector in the work of the organs of the Organisation. Key 
deliverables for this revitalization programme will be to establish and develop managerial, 
operational and service deliver y strategies, programmes, systems and procedures for the 
OECS  Business Council to achieve the following: Strengthened Leadership and Direction of the OBC, 
Improved Resources and Processes, Development of a Relevant Portfolio of Products and Services 
for OB C's Membership, Establishment of an Effective System for Setting Results and Measuring 
Achievements and the development of a Virtual Secretariate for the OBC.  
3.18.  The OECS Commission is also seeking to develop an Integrated Regional Private Sector Trade 
Facilitation and Engagement Strategy to broaden and deepen the holistic encouragement of the 
private sector in advancing strategic solutions that lower transaction costs and improve the capacity 
of the OECS Private Sector to compete effectively. The intended pur pose of the Strategy is to provide 
a regional strategic approach to the design and implementation of practical, thoughtful, and visionary 
private sector engagement measures to contribute to the advancement of trade facilitation reform 
measures in OECS Prot ocol Member States.  
3.19.  The main output of the assignment is a six -year OECS Regional Private Sector Trade 
Facilitation and Engagement Strategy. While the focus of this initiative is on trade facilitation, the 
outputs and outcomes will contribute to private se ctor engagement on the wider trade policy 
spectrum. At the Fourth Meeting of the OECS Council of Ministers for Trade held on 
24 November  2022, the elements of the strategy endorsed and the OECS Commission, Member 
States Senior Officials and the private sec tor stakeholders requested to establish the institutional 
arrangements for its implementation.  
4  REGIONAL INTEGRATION  
4.1  Implementation of the Eastern Caribbean Economic Union (ECEU)  
4.1.  Article 1 of the Protocol of Eastern Caribbean Economic Union of the Revised T reaty of 
Basseterre established the ECEU. The Protocol goes on to set out the objective and principles of the WT/TPR/G/437 • OECS -WTO Members  
 
- 19 - 
 
  ECEU as well as provisions for the implementation and operationalisation of the various components 
as aspects of the ECEU.  
4.1.1   Movement of persons  
4.2.  As reported at the last review, the full free movement of OECS citizens within the Economic 
Union commenced in August  2011. This undertaking allows for OECS citizens to enter the 
participating Member States to enter and remain for an in definite period in order to live, work, 
establish businesses, and provide services without the requirement of work permits. The free 
movement of OECS citizens throughout the Economic Union is underpinned by the requisite 
legislation and facilitated by nece ssary administrative mechanisms. This includes the ability to travel 
and enter using official forms of government -issued identification such as a driver's license or social 
security card. The OECS is working towards the development of an OECS ID verificati on system 
using innovative technology to achieve a strengthened citizen identity platform to be used across 
the Economic Union.  
4.3.  The OECS Commission has also been working with Protocol Member States to further enable 
the citizens ' rights to move freely in t he ECEU with support under the EU EDF 11 funded RIGHT 
Programme. A framework for the portability of maternity, sickness, funeral grants, and other such 
short-term benefits has been developed. Once enforced, OECS citizens and their family members 
will no lo nger lose short -term social security benefits during the initial period of their relocation to 
another PMS. In 2015 at the 62nd Meeting of the OECS Authority, a Contingent Rights Policy was 
approved and work is underway for its full implementation. An OECS  Contingent Rights Model Bill is 
under consideration to provide general and social rights and guidelines for the treatment of 
third-country spouses, children and dependents of citizens of the Protocol Member States. Work is 
also ongoing to develop and stre ngthen the border management system for the movement of people. 
The goal is to have a Single Border Space in the ECEU through robust and harmonious immigration 
practices, policies and systems across the ECEU. It will also mean single entry and processing f or 
third country nationals. Under the RIGHT Programme, this goal will be advanced through 
investments in technology and human capacity building at the border.  
4.1.2   Establishing the OECS Customs Union and Free Circulation of Goods  
4.4.  The Eastern Caribbean Economic Union will have a customs union for which a Common Customs 
Tariff (CCT) is to be applied at the border on goods imported from third countries (RTB Protocol 
Article  4.1). Until such time as the CCT is adopted, the CARICOM Common External Tariff (CET) 
functi ons as the CCT (RTB Protocol Article 6). Within the customs union, goods originating from 
within the Union and goods from third countries that have cleared all import procedures and 
regulations at their first point of entry will circulate freely with littl e or no restrictions or interference 
(Article 10).  
4.5.  To operationalise the customs union, a harmonised border management system with a dual 
border structure will be established. An external border will govern the importation of third country 
goods into the U nion space while an internal border will monitor and supervise the free circulation 
of goods with little or no interference or restrictions by customs and other border regulatory 
agencies. All constituent parts of the external border will be harmonized to function with the same 
standard operating procedures for documentary checks, physical inspections, and technical 
requirements. A project to develop a harmonised regional risk management system has just 
commenced16 while a project for establishing a Maritim e Single Window (MSW) for the OECS through 
the upgrade and expansion of the Advanced Passenger Information System (APIS) and Advanced 
Cargo Information System (ACIS) in the Protocol Member States is being implemented by CARICOM 
IMPACS .17 ICT will be levera ged for the interconnectivity of border agencies for information sharing 
and collaboration.  
4.6.  A harmonised border tax structure will also be implemented. A CCT will be adopted built on the 
CARICOM CET with the further harmonisation of tariff rates among OECS  Member States wherever 
such flexibilities are allowed within the CET. It is well recognised that the CET in its current structure 
and application is not fit for the purpose of a Customs Union. The OECS CCT will therefore build on 
 
16 EDF 11 RIGHT Programme.  
17 Caribbean Development Bank (CDB) and the CARIFORUM -EU EPA and CSME Standby Facility for 
Capacity Building.  WT/TPR/G/437 • OECS -WTO Members  
 
- 20 - 
 
  the current efforts of CA RICOM Member States to review and reform the CET (see 5.2.1 below). In 
addition to the adoption of a CCT, OECS Member States are also working towards the harmonization 
of the non -tariff border taxes and charges. Furthermore, a mechanism for managing the bo rder tax 
revenues collected will need to be in place to handle any revenue sharing and reallocation needed 
that may be needed.  
4.7.  Five pieces of draft legislation have been prepared and are at various stages of consideration 
at the national and regional level  to round out the legislative and regulatory framework for the 
Customs Union. Bills on Animal Health, Plant Health, Food Safety, Customs and Standards provide 
the legislative framework for the harmonised border management system. An institutional 
framework  to drive the work and process has also been developed. It consists of a national working 
group in each Member State; A regional working group and sub -committees on Customs, SPS, TBT 
and Port Management.  
4.8.  A roadmap towards completion of the implementation has been approved by the EAC and the 
Authority. However, after an interruption in the momentum between 2016 and 2021, the 
Commission is now revitalising the work with the reconstitution and reactivation of the institutional 
framework and the  updating of the roadmap and implementation timelines.  
4.1.3   Implementation of the OECS Free Trade in Services Regime  
4.9.  Under Article  26 of the RTB Protocol, Member States committed to work towards the 
progressive harmonization of policies on the services sector i ncluding where advisable the adoption 
of common policy towards development and regulation of the services sector. Article 27 provides for 
the right of establishment and the freedom of trade in services in the Economic Union.  
4.10.  In 2016, with assistance from t he International Trade Centre the Commission undertook a an 
OECS Regulatory Assessment on Services Trade and Investment (OECS RASTI), to assess the 
horizontal regulatory framework and institutional setting, outline the main challenges to services 
expansion  and identify the broad laws and measures affecting operations in accountancy and 
auditing; architecture and engineering; medical services and dentistry; nursing and midwifery and 
management consultancy services. The eleven elements defined in the CARICOM Regional Strategic 
Action Plan for Professional Services formed the basis for the comprehensive Regulatory Assessment 
on Services Trade and Investment (RASTI) in OECS Protocol Member States and the subsequent 
development of a Five -Year Action and Implement ation Plan for Harmonising the regulatory and 
legislative policy environment for four targeted sub -sectors.  
4.11.  The OECS RASTI was followed by the preparation of a Diagnostic Assessment Report in 2018 
and Action and Implementation Plan to establish a Work Prog ramme for OECS Member States to 
address liberalisation of trade in services consistent with the Revised Treaty of Basseterre and to 
further promote the operationalization of the OECS Economic Union, particularly in respect of the 
Right of Establishment and  Freedom of Trade in Services Regime, governed by the provisions and 
principles of Article 26 and 27 of the Protocol to the Revised Treaty of Basseterre. These key actions 
and activities to be undertaken over a recurring five (5) year implementation period  are expected 
to promote reforms necessary to achieve unhindered market access in a single economic space and 
in trading relations with third parties.  
4.12.  Currently with resourced under the 11 EDF RIGHT Programme the OECS is seeking to advance 
the legislative and regulatory reforms, including the drafting and updating of relevant pieces of 
legislation to remove discriminatory and differential treatment of OECS nationals in relevant services 
sectors, subsectors and areas of economic activity. The establishment o f a Services Trade 
Information Portal is also being advanced to improve transparency and accessibility of OECS Laws 
and Regulations for Business Services.  
4.2  The CARICOM Single Market and Economy (CSME)  
4.13.  The creation of a single market and economic space inclu ding ultimately a customs union with 
the free circulation of goods is also a stated aspiration of CARICOM Member States under the Revised 
Treaty of Chaguaramas (RTC). While major achievements have been achieved in the area of free 
movement of certain categ ories of people, free trade in services and the rights of establishment, WT/TPR/G/437 • OECS -WTO Members  
 
- 21 - 
 
  much remains as work in progress and with some gaps remaining in the CSME project including 
inbuilt agendas in the RTC.  
4.14.  As a more deeply integrated sub -regional grouping within CARIC OM, the OECS can provide 
leadership to shape and influence the implementation of the CSME and ultimately the establishment 
of the CARICOM customs union.  
4.2.1   Trade in Goods  
4.15.  With regard to trade in goods, OECS Member States along with the rest of CARICOM continu e 
to focus on the full compliance by Member States with the RTC and COTED Decisions regarding the 
implementation of the CET and the rules governing the granting of CARICOM origin treatment. The 
various derogations, exemptions and suspensions allowed by the  treaty and the varied 
implementation among Member States, have resulted in a very uncommon applied border tariff 
structure among the CARICOM Member States. A review of the CET is currently underway to agree 
on reforms to the structure and the allowed flex ibilities. The OECS Commission is providing technical 
support and coordination to OECS Member States for their full and active engagement in the CET 
review process. This includes a recognition that any flexibilities that continue to be allowed in the 
revised CET for CARICOM Member States will need to be harmoniously utilised among all OECS 
Protocol Member States to achieve the CCT needed for the OECS customs union.  
4.16.  The CARICOM rules of origin, which under the RTB applies mutatis mutandis for the ECEU, is 
also under review by CARICOM.  
4.2.2   Trade in Services  
4.17.  During the period under review, the OECS Protocol Member States, working with the CARICOM 
Secretariat continued efforts towards the development and implementation of a Regional Services 
Sector Action Plan, to give effect to the requirements of Chapter III of the Revised Treaty of 
Chaguaramas and by extension the requirements of Article  26 of the Revised Treaty of Basseterre.  
4.18.  Six Strategic Action and Implementation Plans for Financial Services, Information 
Commu nication and Technology (ICT), Professional Services, Tourism Services, Education Services, 
Health and Wellness Services, Recreational, Cultural and Sporting Services together with a Draft 
Framework and Action Plan for the Single Registration of Profession als in CARICOM Member States, 
were developed. The Regional Services Sector Action Plan seeks to address eleven elements namely 
External Environment; Goal; Policy; Legislation; Human Resource Requirements; Incentives; 
Financing Requirements; Technological N eeds; Constraints; Cross -sectoral Linkages; Other.  
4.19.  There is an ongoing process with the development of a Draft CARICOM Regional SWOT 
Analysis to accompany the seven strategic plans for seven priority sectors, which once approved by 
the Council for Trade and Economic Development would be used by all stakeholders within the 
Community, including regional Agencies and Institutions, as the official sub -sector SWOTs when 
interfacing with international donor partners (IDPs). More recently additional SWOTs for the 
Renewable Energy and Transportation sub -sectors have been completed.  
4.20.  CARICOM also has a supporting Draft Master Strategy and Implementation Plan, that is based 
on a three tier approach viz (i) Stage 1 – COVID -19 Responses;  (ii) Stage 2 – Transition  and 
(iii) Stage  3 - Resilience and Sustainability to lesson the implementation burden given the 
constraints on existing manpower in Member States.  
4.2.3   Chapter 7 of the RTC  
4.21.  OECS Member States are also concerned with the implementation of Chapter 7 of the RTC 
which provides for special and differential treatment of the designated Less Developed Members of 
CARICOM. Article 164 is one of the more actively operational provisions which allows for the 
suspension of CARICOM Origin Treatment on a list of specified prod ucts and thus a related 
suspension of the CET for these products to allow the OECS Member States along with Belize apply 
import duties on imports from the More Developed Countries of CARICOM and higher than the CET 
rates on imports from third countries. Th e last suspension became effective 1 January  2019 for ten 
years for 26 products and 5 years for 2 products.  WT/TPR/G/437 • OECS -WTO Members  
 
- 22 - 
 
  4.22.  The Community is also to provide support measures and the industry to implement necessary 
programmes to achieve competitiveness. At the 53rd Meeting  of COTED in November 2021, 
CARICOM agreed to a five -year work programme of support measures for Article 164 enterprises. 
Financing for the work programme is to come from the CARICOM Development Fund and other 
regional institutions and development partners . The CARICOM Secretariat, in collaboration with the 
CDF and Member State representatives from the OECS and Belize, are to coordinate the 
management and implementation of the programme of financial and technical assistance for the 
Article 164 regime of sup port measures.  
4.2.4   Protocol on Enhanced Cooperation  
4.23.  In March 2022, the CARICOM Heads of Government adopted a "Protocol to Amend the Revised 
Treaty of Chaguaramas Establishing the Caribbean Community including the CARICOM Single Market 
and Economy to allow Enha nced Cooperation among Member States and to address Related Issues ". 
It provides for groups of at least three Member States to seek to establish Enhanced Cooperation 
among themselves in areas where they feel the targeted objectives cannot be attained withi n a 
reasonable period by the Community as a whole. Approval to pursue the Enhanced Cooperation will 
require the support of two -thirds of the membership of the Community. This Protocol provides the 
legal cover under the RTC for the existence and operation o f the OECS Economic Union within the 
CARICOM and the CSME.  
5  BILATERAL TRADE AGREEMENTS  
5.1  CARICOM Bilateral Arrangements  
5.1.  CARICOM has concluded five bilateral trade agreements of varying breadth and depth with 
regional partners over the years. Three are partial scope trade agreements with Venezuela (1992), 
Colombia (1994) and Cuba (2000) and two are free trade agreements with  the Dominican  Republic  
(1998) and Costa  Rica (2004).  
5.2.  The OECS Member States have not been required to reciprocate to grant preferential access to 
imports under these agreements. However, because of the precedence made under the CARIFORUM 
EU and UK EPAs wh ere the OECS has granted preferential market access albeit asymmetrically, it is 
be anticipated that this position will be challenged soon and in the case of the Dominican  Republic, 
CARICOM is required under the EPA to grant at least same treatment to the DR as was granted to 
the EU and UK.  
5.3.  CARICOM and Columbia have begun Negotiations on Expansion of Preferential Market Access 
under the CARICOM -Colombia Agreement. CARICOM has just received a request from Costa  Rica for 
Engagement in the Committee on Market Access Established under the Free Trade Agreement (FTA) 
between CARICOM and Costa  Rica. 
5.4.  While the OECS do not grant preferential market access under these agreements, it does shape 
the positions taken by CARICOM in negotiations. OECS export interests in th e MDCs can influence 
which tariff lines are offered for market access concessions by CARICOM.  
5.5.  Trade between the OECS WTO Members and the partners under these agreements have been 
inconsistent and largely in the favour of the partners. From 2015 and 2021, t he negative balance of 
trade averaged US D 52 million with Colombia, and US D 6.5 million, US D 5.3 million and 
USD 4.3 million with the Dominican  Republic, Venezuela and Costa  Rica. A tiny positive balance was 
observed with Cuba at US D 0.02 million. Exports are very low. Data18 shows average exports since 
2015 ranging from US D 24 million to the Dominican  Republic, US D 1.2 million and US D 2.3 million 
to Costa  Rica and Colombia to less than US D 0.4 million for Cuba and Venezuela.  
5.6.  Much work therefore needs to be done to leverage the market access granted under these 
agreements to expand exports.  
 
18 ITC Trade Map. Viewed at:  http://oecs.org/en/trade -map. WT/TPR/G/437 • OECS -WTO Members  
 
- 23 - 
 
  5.2  CARIFORUM -EU and UK Economic Partnership Agreement  
5.7.  The Economic Partnership Agreement (EPA) between the EU and the 15 Caribbean Forum of 
OACP States (CARIFORUM) includi ng OECS Member States, is fourteen years into implementation. 
The withdrawal of the UK from the EU necessitated the transposition of the commitments of 
CARIFORUM and the UK under the CF  - EU EPA to a new CARIFORUM  - UK EPA. The roll -over process 
was comple ted and the CARIFORUM - UK EPA began to be provisionally applied between CARIFORUM 
States and the UK from January 2021.  
5.8.  Implementation of commitments under the two agreements and the realisation of the expected 
benefits to the economies and the relevant ec onomic actors are the key concerns of both sides 
currently. This includes implementation of the tariff cuts on EU and UK imports by CARIFORUM; 
addressing the concerns of both parties but primarily CARIFORUM regarding the low and/or uneven 
level of export t o the EU and UK; and the challenges faced in operationalising the market access 
granted by the EU particularly in services. There are also a range of other implementation issues 
such as the HS transposition, identifying and addressing non -tariff measures, rules of origin, and 
fees and other charges. For services these include concluding mutual recognition agreements for 
exports of professional services, and addressing the challenges encountered by exporters of services.  
5.9.  The CARIFORUM -EU EPA is currently und ergoing its second five -year review which is meant to 
identify and provide recommendations for addressing the challenges to implementation, to 
leveraging opportunities and to the realisation of the expected benefits.  
5.10.  OECS Member States and the Commission h ave recognised the need to engage in active 
monitoring and evaluation of implementation of the EPAs. This includes monitoring of trade 
performance and identification of issues and challenges to investment, production and trade under 
the EPAs. OECS full par ticipation in the organs and committees of CARIFORUM and the institutional 
bodies of the EPA is critical.  
5.11.  Efforts to enhance trade performance under the two agreements through actions to address 
challenges faced in the export market and to address the sup ply side constraints is a priority. Also 
a priority is the operationalisation of the development cooperation provisions under the two 
agreements to support these efforts.  
6  NON-RECIPROCAL TRADE AGREEMENTS  
6.1.  OECS Member States continue to be eligible for the pr eferential market access granted under 
two non -reciprocal and unilateral trade arrangements in the hemisphere – the Caribbean Basis 
Initiative (CBI) and the Caribbean -Canada Trade Agreement (CARIBCAN). OECS Member States 
welcomed the decision of the Genera l Council of the WTO in 2015 to approve the last request for an 
extension of the waiver for both the CBI and CARICAN to 2025 and 2023 respectively. Based on 
OECS export trade performance to the US and Canada, there remains much room for increasing the 
participation of the OECS economic operators in the CBI and CARIBCAN. The Commission intends to 
work with and support Member States and the private sector to enhance trade competitiveness and 
to explore and take advantage of export opportunities under these tw o arrangements.  
7  MULTILATERAL TRADING SYSTEM - THE WTO  
7.1.  The Member States of the OECS continue to place a high level of priority on a fair, equitable, 
open, transparent, inclusive and rules -based multilateral trading system that meets the needs of all 
its me mbers, particularly developing countries, and more so SVEs and LDCs.  
7.2.  Due to the small size of their economies and the inherent power imbalance which flows from 
this, OECS countries rely on a functioning and rules -based multilateral trading system, with the  WTO 
at its core, to help in safeguarding its fundamental interests.  
7.3.  Notwithstanding the small size of OECS countries and their economies, they nonetheless see 
themselves as playing a meaningful and constructive role in the decision -making process of the 
multilateral trading system. In particular, the OECS -WTO Member States maintain the position that 
trade negotiations and relations between developed and developing countries and LDCs must be 
conducted on the premises of asymmetry and special and differ ential treatment in favor of the latter WT/TPR/G/437 • OECS -WTO Members  
 
- 24 - 
 
  of the two parties. Such principles require that special consideration be given to the needs of 
developing countries and LDCs whose capacity and resource constraints have created significant 
development gaps relative  to their more developed counterparts.  
7.4.  Since the last OECS trade policy review, many developments have occurred on the multilateral 
and plurilateral trade agenda, including, but not limited to the entry into force of the Trade 
Facilitation Agreement (TFA);  the conclusion of a Fisheries Subsidies Agreement, albeit with 
outstanding elements to be negotiated; the launch of several Joint Statement Initiatives (JSIs), 
namely with respect to Electronic Commerce, Investment Facilitation for Development, Domestic 
Regulation in Services, Micro -Small -and-Medium -Sized -Enterprises (MSMEs), Women 's Economic 
Empowerment, Plastics Pollution and Environmentally Sustainable Plastics Trade, Trade and 
Environmental Sustainability, and Fossil Fuel Subsidy Reform. Issues relevan t to agriculture, 
WTO reform, the E -Commerce Work Programme and Moratorium, and services, are also of 
significant importance to the OECS.  
7.5.  On the TFA, the estimated rate of implementation in the OECS ranges from a low of 39% to a 
high of 97%. The average ra te of implementation for the six OECS WTO Members is roughly 68.5%. 
Challenges with respect to implementation largely revolve around institutional gaps, as well as 
human and financial resource constraints. It should be noted that OECS Member States, classi fied 
as high -income, continue to face challenges in accessing concessional funding to assist with their 
TFA implementation as well as in benefiting from certain technical assistance activities.  
7.6.  The OECS recognises the work of the WTO Secretariat, including  the Trade Facilitation 
Agreement Facility (TFAF). The OECS is particularly pleased to have been involved in the 
sub-committee established to advance work on the TFAF Workplan 2023. The TFAF has been 
extremely beneficial to OECS countries and OECS Members look forward to the continuation of this 
constructive relationship.  
7.7.  The OECS is extremely pleased that after over two decades of negotiations, WTO Members 
were finally able to achieve an outcome on fisheries subsidies at MC12. The OECS engaged actively 
in the negotiations, including through the CARICOM and ACP Groups, and looks forward to the 
completion of the outstanding work on Overcapacity and Overfishing. Key to concluding this work is 
for WTO Members to agree on what constitutes appropriate and effecti ve special and differential 
treatment, as per the mandate outlined in SDG 14.6. For the OECS, a small players exemption is 
essential to provide sufficient policy space to developing countries and LDCs to further develop their 
fisheries sector in a sustaina ble manner.  
7.8.  On JSIs in general, All OECS WTO Members are co -sponsors of the initiatives on MSMEs and 
Women 's Economic Empowerment. Three OECS WTO Members – Antigua and Barbuda, Dominica 
and Grenada are active participants in the JSI on Investment Facilitat ion and have made concrete 
proposals on special and differential treatment, technical assistance and capacity building, needs 
assessments and home state measures. No OECS country participates in the other JSIs, largely 
because of capacity constraints, both  in Geneva and in capitals. The OECS believes that Members 
ought to find a way to integrate the JSI discussions into the multilateral fold.  
7.9.  Concerning agriculture, the OECS remains disappointed that the 12th Ministerial Conference did 
not yield a concrete outcome on the agriculture negotiations. The threat of food insecurity continues 
to hang over OECS Members due to geopolitical forces, inflation, choked supply chains and the 
impacts of climate change. As Net Food Importing Developing Countries (NFIDCs), O ECS Member 
States are exposed to threats of severe proportions. Given the fragility of our agriculture sector, the 
OECS has an interest in maintaining the status quo with respect to Article 6.2 – Domestic Support, 
and where possible, WTO Members may even n eed to explore what additional flexibilities can be 
granted to small vulnerable economies (SVEs) to safeguard their food security and boost domestic 
production. Here, the Nairobi Ministerial Decision of 2015 might be instructive, where it was agreed 
to add ress in every area of WTO work, and in a substantive and meaningful manner, the needs of 
SVEs, and to favourably consider the adoption of such measures as would facilitate their fuller 
integration into the multilateral trading system, and to take into acco unt the needs of SVEs in all 
areas of negotiations, without creating a sub - category of WTO Members.  
7.10.  With respect to WTO reform, the OECS assigns a high level of priority to this work. The OECS 
recognises that in terms of the regular work of the WTO across  its various functions, reform is likely WT/TPR/G/437 • OECS -WTO Members  
 
- 25 - 
 
  to be incremental. Nonetheless, the OECS maintains that the work on WTO reform must remain 
Member -driven, open, transparent and inclusive. This is of necessity, both because these are 
foundational principles of the WTO, and because of the small size of many delegations which ought 
not to be left out of these conversations. The OECS is concerned at the ongoing impasse in the 
dispute settlement system, particularly as it relates to the Appellate Body (AB) which has col lapsed. 
The OECS is committed to engaging meaningfully in discussions to resolve challenges in the dispute 
settlement system, including a resolution on the AB impasse by 2024 as pronounced on by Ministers 
at MC12. The OECS also remains committed to having a two -tiered dispute settlement system. All 
discussions on reform of the dispute settlement system must take into account the special needs 
and circumstances of developing countries and LDCs, with a view to ensuring that the system is 
equitable, accessible  and cost effective for these Members.  
7.11.  With respect to the E -Commerce Work Programme, any objective review of its results in the 
past two decades would suggest that it has not produced concrete outcomes, with the notable 
exception of the periodic renewal o f the Moratorium on customs duties on electronic transmissions. 
Since 1998, the OECS WTO Members have supported both the renewal of the E - Commerce Work 
Programme and the Moratorium owing to the enormous potential of e -commerce and digital trade, 
as well a s the need to provide a stable and predictable environment for the private sector to pursue 
e-commerce development. Nonetheless, there is a recognition that more can and should be done to 
ensure that developing countries, including least -developed countrie s (LDCs), can extract greater 
benefits from the Work Programme, particularly from the perspective of development. The OECS 
supports an intensification of the discussions on the Work Programme, including the development 
dimension. Furthermore, to achieve mo re meaningful outcomes on the Moratorium, particularly on 
issues of definition, scope and impact, the OECS also believes that an objective assessment or study 
would be a useful way forward.  
7.12.  In the area of services where the OECS has some competitive advan tage, there still exist 
several market access barriers within other WTO Member States of interest which have prevented 
OECS service providers from enjoying greater success in penetrating those markets. These barriers 
entail lack of equivalency and mutual r ecognition of qualifications, residency requirements, and some 
mandatory requirements to establish commercial presence.  
7.13.  Furthermore, the OECS reiterates the importance it attaches to the work of the Committee 
on Trade and Development (CTD) and particularly  the work programme on small economies as 
contained in several Ministerial Declarations and Decisions, most recently Ministerial Decision 
WT/MIN(22)/25 of the 12th Ministerial Conference of the WTO held in June 2022. The OECS intends 
to play an active and constructive role in the CTD's Dedicated Session on Small Economies, including 
the work on integrating small economies into the post COVID -19 economy, and other topics.  
7.14.  Finally, the OECS Member States remain committed to the successful conclusion of the Do ha 
Development Agenda negotiations in accordance with the mandates and Members decision to place 
development at the core of the outcomes. For this reason, the OECS remains concerned that some 
Members view the DDA as obsolete.  
8  CONCLUSION  
8.1.  This period of revi ew of the OECS -WTO Member States' trade policies and procedures was 
plagued by the effects of the COVID -19 pandemic, the volcanic eruption in S aint Vincent and the 
Grenadines and a series of natural disasters in the region, including those induced by climate change. 
This helped to further strain the already limited human and financial resource capacities of these 
economies. Nonetheless, the OECS remained resilient and committed to the process of meeting its 
obligations under the multilateral trading sy stem.  
8.2.  The effects of the pandemic were particularly deleterious, with data from the Commonwealth 
Secretariat revealing that the pandemic resulted in GDP loss of US D 1.2 billion; output loss as high 
as 28%; and a loss of US D 800 million in global exports fo r OECS WTO Members during the first 
year of the pandemic.  
8.3.  Furthermore, tourism, perhaps the single most important sector for OECS countries, also came 
to a halt during the first 18 months of the pandemic. OECS economies are among the most WT/TPR/G/437 • OECS -WTO Members  
 
- 26 - 
 
  tourism -dependent  in the world. Tourism accounts for a significant share of direct output in the 
OECS. Therefore, COVID -19 would have savaged a vital cog of the region 's economic machinery.  
8.4.  There has been evidence of economic recovery since the worst of the pandemic has pa ssed. 
However, such has been the impact of the pandemic that it is unlikely that the trade and economic 
losses suffered will be recovered in the short -term. Historically, OECS countries, like other small 
island developing states, also take much longer to r ecover from exogenous shocks.  
8.5.  Notwithstanding the many challenges, OECS Members take courage from the successful 
conclusion of the 12th Ministerial Conference in June  2022. The OECS looks forward to building on 
this momentum so as to achieve comparable or even more significant progress at the 13th Ministerial 
Conference across all relevant WTO issues. The OECS pledges its commitment to continued 
constructive engagement in the WTO.  
 WT/TPR/G/437 • OECS -WTO Members  
 
- 27 - 
 
  ANTIGUA AND BARBUDA  
1  ECONOMIC ENVIRONMENT OVERVIEW  
1.1.  The twin -island state of Antigua and Barbuda is located in the heart of the Caribbean where 
the beach is just the beginning. Combined, the islands measure approximately 170 square miles 
with a population o f just under 100,000 people and 365 pristine white sandy beaches.  
1.2.  The nation is a small, open and vulnerable economy characterized by high level of imports, a 
narrow productive base, high level of vulnerability to climate change, natural disasters and 
exogenous shocks. Merchandise imports accounted for approximately 39.4% of GDP in 2021. 
Conversely, the share of merchandise exports was only 1.30 % of GDP.  
1.3.  To safeguard our survival, sustainability and inclusivity have been introduced as a critical 
element in our overall development agenda. To date, Antigua and Barbuda has achieved 66% 
alignment with the sustainable development goals in its development agenda.  
1.4.  Our sustainable development agenda is guided by several sectoral objectives as indicated by 
the Mi nistry of Finance including:  
1. Strengthening the macro fiscal foundation of the island state - revitalizing its economy by 
adopting sound macroeconomic and prudent fiscal management practices and targeting 
critical sectors that can drive current and/or future  economic growth and job creation. This 
includes a renewed emphasis on the agricultural and fisheries sector, manufacturing, 
implementing a maritime/blue economy plan, cultural and creative industry (film, music, 
and arts), building sustainability and resi lience within tourism, improving competitiveness, 
and the enabling environment to attract foreign investments and drive private sector -led 
growth. Some of the proposed interventions include strengthening value chain linkages by 
promoting local sourcing and  value addition; launching interventions to attract investments 
in light manufacturing, cultural and creative industry/film and music production, and 
financial services. Business environment initiatives such as leveraging technology to 
improve efficiencies  and overall competitiveness will be initiated to support these 
interventions;  
 
2. Investing in climate resilient infrastructure -Interventions to increase investments in physical 
infrastructures, such as transport (sea, air, road), water and sanitation, energ y and housing, 
to facilitate the movement of goods and people, business operations, and livelihoods; and 
digital, technology and innovation infrastructure to introduce efficiencies and new ways of 
working and producing in the economy. To drive economic gro wth, Antigua and Barbuda 
will mobilize resources for the rehabilitation, maintenance, and expansion of its 
infrastructure assets. This will include innovative financing mechanisms for the development 
of climate -resilient transport and housing infrastructur e and strengthen its digital 
ecosystem;  
 
3. Improving social protection programme - The overarching vision is for all Antiguans and 
Barbudans to live in an environment that allows them to thrive. As such, the government 
will invest in a comprehensive/multi -dimensional social protection programme to ensure the 
poor and most vulnerable are not left behind. Special focus will be placed on empowering 
women and the youth, both of whom are the most affected (or likely to be affected) by 
socio-economic shocks. The co re pillars of our social development goals are poverty 
alleviation and job creation. Interventions will include supporting the economic 
empowerment of women and youth by facilitating access to financing and entrepreneurship 
training/support;  
 
4. Catalyzing a vibrant, educated and healthy populace - A healthy and educated population is 
the most critical input for long -term growth and development. Education plays a central role 
in improving quality of life by increasing productivity, driving inclusive economic gr owth, 
and ultimately alleviating poverty. Investing in people and making sure all 
residents/nationals are given the educational tools to fulfil their potential is very essential. WT/TPR/G/437 • OECS -WTO Members  
 
- 28 - 
 
  Health is recognized as a basic human right that every citizen should be able  to enjoy living 
a socially and economically productive life; and  
 
5. Adapting for climate change and environmental sustainability and promoting leadership and 
partnership throughout society -Environmental sustainability has always been one of the 
country's key development priorities. Antigua and Barbuda has championed climate change 
issues, disaster preparedness and resilience building at the regional and international levels. 
The government has also incorporated climate change mainstreaming in suc cessive 
development agendas to ensure its limited finances are used effectively to ensure long -term 
growth, development, and prosperity while building climate resilience. Therefore, 
interventions to increase renewable energy generation, climate -proof build ings and 
infrastructure and create the enabling environment for a low carbon development pathway 
are outlined in the country's National Determined Contribution (NDC) to the Paris Agreement 
on Climate Change since October 2015.  
 
1.5.  Historically, the nation has  been guided by a strong development planning and implementation 
framework that is complemented by the free market mechanism through collectively leadership and 
public - private partnership inclusive of the public sector, private sector, civil society, NGOs , 
development partners and other stakeholders.  
1.6.  Antigua and Barbuda is ranked as a highly developed country based on a Human Development 
Index of 0.778 and a gross national income per capita of USD  20,895 in 2019. The rise in economic 
standards and improved  living conditions has coincided with the growth in tourism activities. During 
the period 2016 -19, buoyant tourism investments, an increase in stay -over arrivals, and investments 
in the physical infrastructure drove economic growth on average of 5% year -on-year, except for the 
COVID -19 pandemic induced recession in 2020.  
1.7.  The World Travel and Tourism Council has estimated that in 2019 tourism accounted for 40.5% 
of GDP; 33.7% of total employment; and 40.4% of export earnings in Antigua and Barbuda.  
1.8.  Importa nt to note, gains in human development are easily reversed and inequality is 
exacerbated in the face of economic shocks that have significant negative impacts on social, 
economic, and fiscal stability. Additionally, macroeconomic instability makes it diffi cult to implement 
and sustain human development and poverty reduction policies.  
1.9.  Economic and natural shocks put an estimated 80.4% of the country's GDP at risk, placing 
Antigua and Barbuda among the top 20 countries with risk to GDP from two or more hazard s. The 
country is still recovering from the economic and social fallout of Hurricane Irma in 2017 when the 
country suffered damage and loss of USD155.1 million (10% of GDP). In Barbuda, 95% of the 
housing stock was damaged or destroyed, and the entire popu lation of 1,600 persons were 
evacuated to Antigua. While most persons have returned to Barbuda, the recovery and rebuilding 
efforts are still ongoing.  
1.10.  The March 2020 COVID -19 pandemic is having an adverse macroeconomic and social impact 
on Antigua and Barbuda. In the health and education sectors, economic output, employment, and 
public finances have all been severely affected. Real gross domestic product contracted by 20.2% 
in 2020, with a commensurate 20.7% decline in active employment. Government revenue sharply 
contracted, while expenditures have increased to address the health emergency and offer social 
protection through expanded social safety nets.  
1.11.  In terms of labour m arket outcomes, in October 2018, there were 47,429 employed persons 
aged 15 and over in Antigua and Barbuda corresponded to an unemployment rate of 8.7 %. 
Unemployment was, however, more prevalent among women 9.9% than men 7.3%. 
Notwithstanding, when absolu te numbers are considered, there were more employed women than 
men as women comprise a larger share of the working age population. The overall employment to 
population ratio stood at 65.9 % with females having a lower ratio 62.1% than males 70.5%. By the 
end of 2020, there were about 11,000 fewer employed persons than at the start of the year. More 
than 70 % of these persons were employed in the hotel accommodation and hospitality sectors.  
1.12.  The COVID -19 pandemic created fiscal pressures as revenues declined an d there was 
increased spending on programmes related to COVID -19 as well as on imports of medicines and WT/TPR/G/437 • OECS -WTO Members  
 
- 29 - 
 
  medical equipment. The economic and social disruption has and is expected to, inter alia , place 
downward pressure on economic output, increase unemploym ent, widen the fiscal imbalance, delay 
critical development projects, and increase the vulnerability of many, particularly the poor.  
1.13.  Much of the country's economic progress was facilitated through a large accumulation of public 
debt to finance critical soc ial and economic infrastructure. Moreover, public spending to mitigate the 
impacts of recurrent shocks, including the global recession of 2008 and the crisis in the local banking 
sector, also contributed to elevating debt levels close to 100% of GDP by 201 4.  
1.14.  After Hurricane Irma in 2017, a combination of lower revenues resulting from reduced 
economic activity and increased spending to support the rebuilding of public infrastructure and 
support the affected population led to further borrowing. Debt restruct uring agreements, debt 
repayments facilitated by divestments, a 50% debt write -off from the Government of Venezuela in 
2018, along with strong GDP growth recovery that averaged 4.4% from 2014 to 2019 helped to 
reduce the public debt to an estimated 74.4% o f GDP at the end of 2019. The country's debt -to-GDP 
ratio at the end of 2020 was 89 %, compared to 74.4 % at the end of 2019. Reducing the debt -to-GDP 
ratio is one of the key thrusts of the Government in pursuit of debt and fiscal sustainability. The 
pandemi c also weakened the financial position of several state -owned enterprises (SOEs). To 
adequately finance their operations, the public hospital and the Social Security and Medical Benefits 
Scheme rely on government transfers and are under additional strain d ue to the increasing demand 
for healthcare during the pandemic.  
1.15.  Also, the LIAT airline, headquartered in Antigua and Barbuda and which is partowned by 
GOAB, was severely impacted by the pandemic, and was declared insolvent in July 2020. To address 
the fis cal issues that the country is confronted with due to the global Pandemic, enhancing revenue 
performance, increasing efficiency in public spending, and securing debt sustainability are 
paramount.  
2  POLITICAL STRUCTURE  
2.1.  Antigua and Barbuda has a parliamentary system of government. The Cabinet, which is headed 
by the Prime Minister, is responsible for the general direction and control of the Government and 
the Prime Minister is directly accountable to the Parliament. Once approved by the Cabinet of 
Ministers, tr ade treaties and related agreements (bilateral, regional and multilateral) are usually 
signed by the Prime Minister or any other Minister vested with authority given by the Prime Minister 
to sign on behalf of the Government. Cabinet also authorizes ratific ation of and accession to all types 
of trade agreements (whether bilateral, regional and multilateral). Parliamentary involvement is 
required for enactment of all legislations including adopting all types of trade agreements.  
2.2.  The Constitution is the suprem e law of the jurisdiction of Antigua and Barbuda. As a result, 
Antigua and Barbuda cannot provisionally apply any legislation or international trade agreements. 
All international trade agreements (whether bilateral, regional or multilateral in scope) must be 
ratified by Parliament as laid out in the Ratification of Treaties Act, CAP 364 of 1987 .1 
2.3.  The Barbuda Council is the principal organ of local government for the island of Barbuda and 
was established in 1967 by the Barbuda Local Government Act .2 The Co uncil runs the internal affairs 
of Barbuda however the Barbuda Council must obtain the approval and is subject to the 
administration of the Central Government of Antigua.  
2.4.  In addition to membership in the World Trade Organization since 1995, Antigua and Ba rbuda 
is a member of the Caribbean Community (CARICOM) whose members are presently in the process 
of concretizing and strengthening this regional integration grouping into a single economic market. 
Antigua and Barbuda is also a member of the sub -group of s maller islands, the Organization of 
Eastern Caribbean States Economic Union (OECS) with one currency and a common monetary policy 
administered by the Eastern Caribbean Central Bank.  
 
1 Ratification of Treaties Act (Antigua and Barbuda) . Viewed at:  http://laws.gov.ag/ . 
2 Barbuda Local Government Act (Antigua and Barbuda), http://laws.gov.ag/ . WT/TPR/G/437 • OECS -WTO Members  
 
- 30 - 
 
  3  TRADE AND INVESTMENT POLICY  
3.1  Trade policy framework  
3.1.  Antigua and Barbuda f ormulates, implements and monitor trade policy within a multi -layered 
structure balancing domestic, sub -regional -Organization of Eastern Caribbean States, 
regional -Caribbean Community and multilateral considerations - World Trade Organi zation.  
3.2  Government procurement  
3.2.  Antigua and Barbuda is not party to the plurilateral WTO Agreement on Government 
Procurement. The Procurement Administration Act (2011)3 was enacted by the Cabinet of Antigua 
and Barbuda on 27th March 2020 and the Procurement Admin istration (Transitional) Regulations 
2021 was enforced 1st June 2021. The Act encourages public competition in the procurement process 
while broadening the participation in the process in Antigua and Barbuda and overseas; it also aims 
at maintaining safegu ards to ensure integrity, fairness, and transparency while providing value for 
money in the procurement process. Competitive sealed bids are the preferred method of 
procurement  
3.3.  With the enactment of the provisional regulations in 2021, the Tenders Board un der the Ministry 
of Finance ceased to exist, and the Procurement Board is now responsible for government 
procurement. Until the Chief Procurement Officer is appointed, the functions of this Officer are 
delegated to a member of the Procurement Board.  
3.4.  The T ransitional Regulations provide for a period to establish procurement administration, 
while, concurrently, a legislation reform process amends the Procurement Administration Act. The 
Transitional Regulations, allows for the delegation of the responsibiliti es of the Chief Procurement 
Officer to a member of the Board and further ascribes supervision responsibilities to the Board for 
determining the subject -matter of procurement, bidder qualification criteria, evaluation, selecting 
procurement methods, approvi ng solicitation documents and the conduct of emergency 
procurement. Requests for procurement, meaning all activities pertaining to construction, the 
purchase, lease, rental or acquisition of goods or rendering of services must be submitted to the 
Procureme nt Board and subject to prescribed methods of procurement, which are competitive sealed 
bids, proposals or quotations and emergency and sole source solicitations. The Board authorises the 
department's choice of procurement method; sufficiently prepared sol icitation documents; 
prequalifying bidders; establishing evaluation committees and the award of contracts.  
3.5.  In making its decision, the Board first considers whether the method of procurement is by 
competitive bids, proposals, quotations, emergency or sole source. For goods, the Board considers 
quality and lowest responsive bid; or, in the case of works and services, the criterion set out in the 
invitation to bid related to capability, quality and most advantageous price.   
3.6.  Agencies, where there is acceptable  compliance and capacity and where the agency's contract 
award procedures conform with the practices of the Act, may be conferred with duties and powers 
to conduct procurement, below and above a set threshold. The department's procurement unit, if 
establis hed, is responsible to plan procurement activities, identify requirements, select the method 
of procurement, prepare solicitation documents and ensure technical requirements, qualifications 
and evaluation criteria are established. There are no provisions e xempting government entities from 
the procurement requirements. All Government entities are subject to the procurement methods 
outlined.  
3.3  Standards and other technical requirements  
3.7.  No notifications were made to the TBT Committee during the period under revi ew. 
3.8.  The Antigua and Barbuda Bureau of Standards (ABBS) is the national standards body, enquiry 
point, and national notification authority under the TBT  Agreement.4 The ABBS, which is part of the 
 
3 The Procurement Administration Act (Antigua and Barbuda)  Viewed at:  http://laws.gov.ag/ . 
4 WTO ePing SPS & TBT Platform online information. Viewed at: 
https://epingalert.org/en/EnquiryPoint/tbt -nep. WT/TPR/G/437 • OECS -WTO Members  
 
- 31 - 
 
  Ministry of Foreign Affairs, Immigration and Trade , is respo nsible for establishing and maintaining 
the national quality infrastructure, for developing and preparing technical regulations and standards, 
and for dealing with standards -related matters, such as metrology and quality.  
3.9.  The ABBS is a member of the CARIC OM Regional Organisation for Standards and Quality 
(CROSQ)5, Codex Alimentarius (WHO/FAO), and the Inter -American Metrology System (SIM). The 
ABBS also has subscriber membership in the International Organization for Standardization (ISO); 
it is an affilia te member of the International Electrotechnical Commission (IEC), and a participating 
member to the American Society for Testing and Materials (ASTM).  
3.10.  In 2017, Antigua and Barbuda passed a new Standards Act which replaces the previous 
legislation issued in  1987. The Standards Act 2017 is in force since 1  November  2020. The Standards 
Regulations of 1998 remains in force and no additional regulations for the purposes of the Standards 
Act 2017 was enacted until mid -2022. Under this regulatory framework, standa rds formulation and 
development is mainly the responsibility of ABBS.6 All standards are voluntary in Antigua and 
Barbuda.  
3.11.  Technical regulations are documents specifying product characteristics or their related 
processes and production methods whose comp liance is mandatory. On the recommendation of the 
ABBS, standards may be declared by Order of the Minister to become a technical regulation with the 
intention to protect the consumer or user against danger to health and safety; to prevent fraud or 
deceptio n arising from misleading advertising or labelling; to ensure acceptable quality in goods 
produced for export; to require adequate information to be given to the consumer or user; to ensure 
quality in a case where the choice of sources of supply is restric ted; to protect the environment; or 
to generally protect public or industrial health, welfare, or safety. At least 60 days before the 
technical regulation comes into force, a notice must be published in the Gazette  specifying the date 
the technical regulat ion comes into effect.7 
3.12.  In 2018, the regulatory framework for the commerce of tobacco and tobacco products was 
updated8 and the previous regulation enacted in 1948 was repealed. The new regulatory framework 
includes certain prohibitions on sales, adverti sing, and promotion of tobacco products and tobacco 
sponsorship. The packaging and labelling requirements are also prescribed in this legislation.  
3.13.  In 2019, Antigua and Barbuda enacted labelling requirements on food products.9 The 
CARICOM Regional Standard  on this matter, which was approved by the COTED in 2010, is fully 
adopted by this technical regulation. Among others, it covers aspects such as the quantitative listing 
of ingredients and food additives, and the declaration of weights, origin, producer, p roduction date, 
durability, and storage conditions.  
3.14.  The Analytical Services Division under the Ministry of Agriculture, Fisheries, and Barbuda 
Affairs has three testing facilities to carry out microbiological and chemical analyses, including on 
heavy metal s and pesticide residue. In addition, there are three concrete -testing laboratories: one 
is in the Public Works Division, and two are private (the Caribbean Testing Laboratory, and Antigua 
Masonry Products). The ABBS has the legal authority to delegate the  testing responsibility for 
certification purposes.  
3.15.  Following the Metrology Act 2007, the implementing regulations were enacted in 2017.10 
Under this framework, both the International System of units and the British Imperial System of 
units may be used co ncurrently. Verification and licensing to sell, manufacture, and repair weighing 
and measuring equipment are also prescribed by this regulatory framework. The National Metrology 
 
5 In 2018, Antigua and Barbuba became the first country to ratify the agreement establishing the 
CROSQ.  
6 Standards are formulated generally by consensus betwe en the ABBS and concerned parties. Viewed 
at: https://abbs.gov.ag/qi -services/standards -development/ .  
7 Section  28 of the Standards Act 2017.  
8 Tobacco Control Act 2018 . Viewed at:  http://laws.gov.ag . 
9 The Standards (Technical Regulations) (Labelling of Pre -Packaged Foods) Regulations 2019 . Viewed 
at: http://laws.gov.ag/ . 
10 Metrology Regulations 2017. Consequently, the Metrology Act 2007 came into force on 3  April 2017. 
Viewed at:  http://laws.gov.ag/ . WT/TPR/G/437 • OECS -WTO Members  
 
- 32 - 
 
  Service, which is part of the ABBS, is responsible for the inspection of weigh ing and measuring 
instruments.  
3.4  Sanitary and phytosanitary measures  
3.16.  No notifications were made to the SPS Committee during the period under review. During the 
period the Animal Health Act 2017 was enacted.  
3.17.  The Plant Protection Unit (PPU) within the Ministry of Agriculture, Fisheries, and Barbuda 
Affairs is the designated National Plant Protection Organization (NPPO) under the provisions of the 
Plant Protection Act 2012. The PPU is responsible for the implementation of the International Plant 
Protecti on Convention (IPPC) and SPS  Agreement; it acts as the national enquiry point and the 
notification authority for the SPS  Agreement. The PPU is responsible for issuing phytosanitary 
certificates and import permits; carrying out inspection and surveillance p ertaining to plant and plant 
products; disinfecting consignments of plant and plant products; conducting pest -risk analysis; 
providing information to other countries concerning SPS measures applied; notifying trading 
partners of non -compliance with import requirements; and providing information regarding import 
and export regulations in force.  
3.18.  In 2015, The Coordinating Council on Agricultural Health & Food Safety for Antigua and 
Barbuda is a multi -sectoral body that was formed by Cabinet Decision. The prima ry aim of this body 
is to foster synergies amongst agricultural health and food safety agencies at the national level with 
a view to, inter alia , finding solutions to cross -cutting issues, reduce duplication of effort, and 
harmonize actions executed by the se stakeholder groups.  
3.19.  There's a level of regional cooperation that influences the work of the Plant Protection Unit at 
the national level and include collaboration with agencies such as the Caribbean Agricultural Health 
& Food Safety Agency and the Caribbean Plant Health Directors Forum. Several common areas are 
addressed through projects at the regional level to include activities such as development of regional 
priority pest lists which are invariably incorporated to varying degrees into the nation al work 
program.  
3.20.  Several regulations are currently being finalised and expected to be passed in 2023. These 
include, but not limited to, the format for phytosanitary certificates for export and re -export, official 
ports of entry, emergency response, requir ements/specifications for plant quarantine stations, and 
lists of quarantine pests and regulated non -quarantine pests. There is a 2016 fees regulation which 
is expected to be implemented in 2023 upon completion of the administrative arrangements to 
support  the process.  
3.21.  Antigua and Barbuda has developed a list of prohibited and permitted commodities with 
respect to specific trading partners.11 Specific import restrictions apply to some products, for 
example mangoes from countries with mango seed weevil or fr uit flies and citrus from areas with 
fruit flies are prohibited.  
3.22.  As a signatory to the Cartagena Protocol on Biosafety, Antigua and Barbuda does not permit 
the importation or sale of living modified organisms (LMOs). Imports are allowed if an approval, 
based on a risk assessment, from the competent national authority was obtained.  
3.23.  Antigua and Barbuda is a contracting party to the International Plant Protection Convention 
(IPPC), and a member of the Codex Alimentarius Commission.  
3.5  Import licenses and quanti tative restrictions  
3.24.  Antigua and Barbuda maintains an import licensing regime governed by the External Trade 
Act, under the revised laws of Antigua and Barbuda, of 1992. Most imports are subject to automatic 
licensing for data collection purposes and are gr anted on request. Non -automatic licensing is applied 
on products subject to tariffication under Article  164 of the revised Treaty of Chaguaramas (aerated 
 
11 Import Status of Plant Commodities and Regulated Items. Viewed at: https://agriculture.gov.ag/wp -
content/uploads/2017/02/Import -Status -of-Plant-Commodities -and-Regulated -Items -PLANT -PROTECTION -
ANTIGUA -AND-BARBUDA -02122016.pdf .  WT/TPR/G/437 • OECS -WTO Members  
 
- 33 - 
 
  beverages, beer, stout, ale, porter, pasta, candles, solar water heaters, oxygen in cylinder, carbon 
dioxide in cylinder, acetylene in cylinder, chairs and other seats of wood and upholstered fabric, 
other furniture of wood and upholstered fabric, mops); imports of animals, poultry, livestock, and 
poultry products; plants and plant products; pesticides; dr ugs and antibiotics; firearms, fireworks, 
arms and ammunition; and chemicals controlled by the Montreal Protocol.  
3.25.  The law requires that a license be acquired prior to the importation and arrival of certain items 
into Antigua and Barbuda. License forms must  be completed in triplicate at from the Licensing 
Section of the Ministry of Foreign Affairs Immigration and Trade . 
3.26.  The Ministries which recommend licenses for importation are the Ministry of Agriculture, (fresh 
produce, meat, poultry, eggs, fish and honey ), the Ministry of Public Works (satellite dishes and 
related equipment); the Ministry of Health (medicinal drugs); and the Commissioner of Police 
(firearms and ammunitions). For specific goods such as refrigerators, motor vehicles, air conditioning 
units and other equipment which can operate using Ozone Depleting Substances (ODS), a 
Refrigerant  Form must be completed in addition to the Import License Form. The Refrigerant Forms 
are obtained from the Ozone Unit within the Ministry of Foreign Affairs, Immigr ation and Trade . 
Licenses for five agricultural products are regulated on a seasonal basis in Antigua and Barbuda, 
depending on sufficient supply to satisfy domestic demand. Regulations are monitored by the 
Ministry of Foreign Affairs, Immigration and Trad e in consultation with the Central Marketing 
Corporation (CMC).  
3.27.  Meanwhile, for commercial importation of fruits, vegetables, plants, flowers, meat and fish 
must first secure a valid import permit prior to making an application for the importation license.   
3.6  Customs valuation and rules of origin  
3.28.  In Antigua and Barbuda, customs valuation is based on the second schedule of the Customs 
(Control and Management) Act of 2013 which is consistent with the WTO Customs Valuation 
Agreement. The transaction value is to  be used first for valuation purposes, followed by the 
transaction value of identical goods, the transaction value of similar goods, the deducted valuation, 
and computed valuation, in that order. However, the order of application of the last two valuation 
methods may be switched if both the Comptroller of Customs and the importer agree.  
3.7  State trading enterprises  
3.29.  Since becoming a developing Member of the WTO in 1995, Antigua and Barbuda has not 
notified any state trading enterprise to the WTO. The Central Marketing Corporation (CMC), a 
statutory body established in 1973, is mandated to provide a market for locally grown produce, 
secure markets for them, and ensure that prices of basic food commodities remain stable.  
3.30.  The import licensing regime restricts im ports of an assortment of vegetables that local farmers 
could produce. The CMC has sole responsibility for the importation and marketing of these vegetables 
including carrots, cabbage, onions, sweet peppers, and tomatoes. The CMC's monopoly is not 
enforced , and private importation of these commodities are unrestricted. The CMC is not obligated 
to purchase produce from local farmers and the CMC does not subsidise agriculture in any form.  
3.8  Safeguards  
3.31.  During the period under review, there was no change to Ant igua and Barbuda's safeguards 
construct. As a least developed country, Antigua and Barbuda, may invoke, when necessary, the 
special provisions in Chapter 7 of the Revised Treaty of Chaguaramas, in particular Articles 150 and 
164, with respect to other CARI COM member states. Article  150 (Safeguard Measures) allows a 
disadvantaged country to limit imports of goods from other member states for up to three years, 
and to take such other measures as COTED may authorize. Article  164 (Promotion of Industrial 
Develo pment) entitles less developed CARICOM countries to request COTED to suspend 
Community -origin treatment to certain products as a temporary measure to promote the 
development of an industry, and to apply tariff rates higher than the CET. Antigua and Barbuda  has 
not applied any safeguards measure in this sense.  WT/TPR/G/437 • OECS -WTO Members  
 
- 34 - 
 
  3.32.  In addition, Antigua and Barbuda may apply safeguards for balance -of-payments reasons 
under Article  84 of the Revised Treaty of Chaguaramas; however, it has never done so. The 
Caribbean Community (Move ment of Factors) Act 2006 entitles the Minister to use safeguards 
measures, consistently with international obligations, in case there are serious balance -of-payments 
and external financial difficulties or the threat thereof.  
3.9  Anti-dumping and countervaili ng measures  
3.33.  Under the period of review, Antigua and Barbuda did not impose any anti -dumping or 
countervailing measures and there is no entity appointed in the country to execute anti -dumping or 
countervailing laws. The Customs Duties (Dumping and Subsidie s) Act 1959, which was notified to 
the WTO in 2002, prescribes the regulatory framework in this regard.12 
3.10  Competition policy and price controls  
3.34.  Antigua and Barbuda has not enacted any competition legislation. The Revised Treaty of 
Chaguaramas addresses co mpetition policy and provides for the enactment and harmonization of 
legislation in CARICOM member States; it established the CARICOM Competition Commission in 
2008 to deal with competition issues and enforcement in the CSME.  
3.35.  The EPA and the agreement wit h the United Kingdom contain provisions with respect to 
competition policy. Regional competition policy at the CARICOM level is not yet implemented. The 
OECS agreed to establish a regional competition body to handle competition matters within its single 
market and a draft OECS Competition Bill is under review by the Ministry of Legal Affairs, Public 
Safety, and Labour. No specific date has been set for the completion of this review.  At the approval 
of this Bill, Antigua and Barbuda is expected to create a n ational competition authority to deal with 
domestic competition issues.  
3.36.  Antigua and Barbuda applies price controls on a list of products, which include bread and 
petroleum products (gasoline, kerosene, etc.).13 The wholesale and retail margins allowed for 
41 items are prescribed. The wholesale margin is 10% in most cases, 12.5% in some instances, and 
in one instance 15%. The retail margin is generally 15% or 20%, but may be higher for some goods, 
for example for frozen goods (22.5%). Prices are set by the M inistry of Finance, Corporate 
Governance, and Public Private Partnerships in response to developments in the international 
market; market surveillance is conducted by the Consumer Affairs Division of the Ministry of Foreign 
Affairs, Immigration and Trade .  
3.11  Intellectual Property Rights  
3.37.  During this period of review, the intellectual property regime in Antigua and Barbuda 
welcomed the enactment of the Patent Act 2018 and its implementing regulations. Under the Ministry 
of Legal Affairs, Public Safety, and Labour, the Antigua and Barbuda Intellectual Property and 
Commerce Office (ABIPCO) is responsible for all functions relating to the grant of patents and utility 
model certificates; the registration of industrial designs, marks, collective marks, and geogra phical 
indications; supervising and performing other duties conferred by the intellectual property legislation 
or its regulations; and carrying out studies, programmes or exchanges of items or services on 
domestic and international IP issues, and on the us e of patent documents as a source of 
information.14 Fees and forms for all IP related matters are available online.15 
3.38.  Antigua and Barbuda is a member of the World Intellectual Property Organization and the 
country is a contracting party to a number of inte llectual property conventions as well.  
3.39.  The enforcement regime of intellectual property rights in the jurisdiction of Antigua and 
Barbuda is based on a combination of national legislations and common law. Intellectual property 
 
12 WTO documents G/ADP/N/1/ATG/2 and G/SCM/N/1/ATG/2, 19  March  2002.  
13 Price Control Order 1967.  
14 Intellectual Property Office Act 2003.  
15 ABIPCO online information. Viewed at: https://abipco.gov.ag/intellectual -property/fees/ . the ABIPCO 
launched an electronic platform for some of its services, however, it does not yet cover IP related procedures.  WT/TPR/G/437 • OECS -WTO Members  
 
- 35 - 
 
  rights in Antigua and Barbuda  are treated as private rights and therefore the matter of enforcement 
lies with the private right holder.  
3.12  Investment  
3.40.  Antigua and Barbuda's foreign investment regime is the responsibility of the Antigua and 
Barbuda Investment Authority, which was establi shed in 2007. The functions of the Antigua and 
Barbuda Investment Authority are captured under the Antigua and Barbuda Investment Authority 
Act. During the review period, this framework was amended at three instances. Since 2016, 
incentives and concessions  to be granted require the approval of the Cabinet instead of Prime 
Minister as previously. Whenever the owner of a hotel or a group of hotels representing more than 
5% of the country's room occupancy intends to carry business for less than 10 months durin g the 
year or to close temporarily for two months or more, the owner must submit a notice of intention, 
at least 30 days before the intended closure date, to the Minister of Tourism. In 2019, the eligibility 
criteria and the related incentives offered unde r the ABIA Act were also amended.  
3.41.  Under the amended provisions of this Act, Antigua and Barbuda offers a slate of incentives. 
These are based on the size of capital investment and the number of employees that will be employed 
as a result of the specific in vestment; however, the capital thresholds were increased and a 
requirement of local residency for at least a director or owner was added.  
3.42.  Since the last period of review, Antigua and Barbuda continues to maintain an open and 
non-restrictive foreign invest ment regime, with foreign investors being subject to national treatment 
as locals. Despite this, foreign investors who are desirous of purchasing real estate for residential or 
commercial purposes are required to acquire an alien landholders license. All l icenses are subject to 
Cabinet approval and payment of the requisite fee is required, which accounts for approximately 5% 
of the purchase price of the property. In addition, certain sectors are reserved for domestic or local 
investors; these sectors includ e fishing and fisheries and agriculture.  
3.43.  Since its establishment in 2013, the Citizenship by Investment programme has been amended 
several times. The Citizenship by Investment Unit administers the programme and introduces fees 
for the renewal of passports  and for the application of additional dependants. Additionally, the right 
to appeal to the High Court in case of deprivation of citizenship is now available. In 2018, the 
Citizenship by Investment Board was created to provide policy and oversight advisory  to the 
programme and since 2020, the Prime Minister can suspend the residence requirement of five days 
for sanitary and other grounds considered as necessary.  
3.44.  The Citizenship by Investment involves the granting of citizenship status to an individual and 
immediate family members contingent upon a specified and quantifiable investment in Antigua and 
Barbuda. The usual grounds for the granting of citizenship is birth within a certain territory, descent 
from a parent who is a citizen, marriage to a citizen, an d naturalization. The administration and 
benefits of the Antigua Citizenship by Investment program can be found on its website.16 
4  SECTORAL DEVELOPMENT  
4.1.  The Agriculture and Fisheries Industry is recognized as important for food security, economic 
diversific ation, social protection, sustainable entrepreneurship, livelihoods and promoting and 
supporting good  governance . Its contribution to GDP in 2021 was 2.2%. The agriculture sector 
represents about 2.2% of the total employed labour force. The industry largel y comprises 
subsistence farming or small -scale commercial farming primarily for the domestic market. Women 
participate in farming activities to fulfil the basic needs of their families and while there is limited 
sex-disaggregated data on land ownership, wo men participate more extensively in the processing 
and marketing than men, who lead in the production.  
4.2.  Currently, Fishing contributes about half of the value -added from the agriculture and fishing 
sector. The main agricultural products are mixed vegetable s and fruits, poultry, and honey. There is 
also a resurging trade in livestock with the production of cattle, pigs, and goat meat. The decrease 
in the contribution of the agriculture sector to the economy, notwithstanding growth in 2021, has 
been due to hi gh labour costs and unavailability of labour for agriculture (due to dominance/pull of 
 
16 Viewed at:  https://cip.gov.ag/ . WT/TPR/G/437 • OECS -WTO Members  
 
- 36 - 
 
  the services sector/tourism), diseases and pests and a series of damaging weather events which 
affected output.  
4.3.  Following the passage of Hurricane Irma in 2017, which de vasted the agriculture sector, there 
is now renewed focus on improving the resilience of the sector to the impact of natural disasters and 
climate change. In the case of Barbuda, 1,407 persons were made homeless with the passage of 
Irma and the agriculture  sector completely ruined - crops, livestock, bees, the fishing industry, 
infrastructure, machinery and equipment were either totally destroyed or significantly damaged. To 
address these challenges, agriculture (including fisheries) has emerged as a strate gic priority of the 
Government as it is recognized that the sector is key in advancing food and nutrition security, 
livelihoods, environmental protection and rural economic and social development - including health 
(support in the fight against NCD).  
4.4.  The development of the agriculture sector is guided by the National Food and Nutrition Policy 
(2012) and the related National Food and Nutrition Security Action Plan which are closely aligned to 
the OECS Action Plan on Agriculture (2012 -22), the Caribbean Comm unity (CARICOM's) Regional 
Food Security Plan 2011 -2025 and the CARICOM Agriculture Policy. The Ministry of Agriculture, 
Fisheries and Barbuda Affairs is also in the process of a short to medium term sector strategic plan 
in collaboration with the IICA. Pr iorities between (2016 -20) sought to improve access to and 
generate water from irrigation, attract new investment in agriculture, reduce vulnerability to disaster 
and climate change risks and expand and improve agro -processing.  
4.1  Services  
4.5.  Services trade in Antigua and Barbuda accounted for 71.4% of GDP in 2021 and 62.6% in 2020 
and 100.7% in 2019. More specifically the three services areas that dominate Antigua and Barbuda's 
economy are: tourism, financial services (banking, offshore services and insurance) and professional 
services (legal, engineering, accounting, architectural services). Other service areas are maritime 
transport services.  
4.6.  The tourism industry represents an important component of national development for Antigua 
and Barbuda. It is one of t he key industrial clusters that can drive sustainable economic growth over 
the long term and has played a central role by contributing to income generation, job creation, and 
foreign exchange earnings.  
4.7.  Tourism accounts for about 47 % of annual output and i s the key driver of growth, investment, 
and income generation, including a major contributor to government revenues and employment . 
The rise in economic standards and improved living conditions over the past three decades have 
coincided with growth in tou rism activities. During the period 2016 -19, buoyant tourism 
investments, an increase in stay -over arrivals, and physical infrastructure development drove annual 
economic growth that averaged 5.3%.  
4.8.  In 2020, the Economic Recovery Committee estimated an addi tional US D 700 million 
high-end/luxury tourism investment projects in the pipeline that will, in the medium term expand 
the tourism offering, and generating jobs and government revenues.  
4.9.  Over the years, the tourism sector has been adversely affected by na tural disasters such as 
hurricanes and economic shocks in the major tourism source markets. Notwithstanding, the industry, 
remains the dominant sector and it continues to drive growth in the construction and 
telecommunications sectors. The World Travel and  Tourism Council has estimated that in 2019 
tourism accounted for: 40.5% of GDP; 33.7% of total employment; and 40.4% of export earnings 
in Antigua and Barbuda.  
4.10.  Major progress made during the review period include expansion in hotel room stock with the 
addition of luxury brands and boutique hotels to over 3500 rooms as of December 2019; Green 
Tourism Initiative to foster efforts in the tourism industry to implement projects/programmes related 
to energy conservation and use of renewable energy, water conserv ation, waste disposal practices, 
recycling, green building practices, customer education, and other conservation practices; 
Construction of a 5th cruise pier to accommodate the world's largest cruise ships, development of 
new commercial properties, as well  as renovations of Heritage Quay via a public -private partnership 
with Global Ports Holding (GPH) at an investment of US D 57 million;  Enhance the tourism product WT/TPR/G/437 • OECS -WTO Members  
 
- 37 - 
 
  to leverage international competitiveness to facilitate the development of other varieties of tourism 
accommodation; Further development and diversification of geographic source markets and niche 
markets; Transform Barbuda into a Green, Low Density, High -end tourism destination; Develop 
tourism -related human resources/capabilities and improve worke r welfare; Promulgate a tourism 
master plan and develop a green growth strategy for the tourism sector; Mainstream environmental 
sustainability and adaptation of the tourism sector to climate change; Accelerate efforts to attract 
foreign investment to repo sition the tourism industry and develop new and emerging industries  
4.2  Financial Sector  
4.11.  The financial sector in Antigua and Barbuda comprise of domestic commercial banks, offshore 
banks, non -bank financial institutions, insurance companies and agents, and credit unions. Domestic 
banks are regulated by the Eastern Caribbean Central Bank (ECCB), while the rest are regulated by 
the Financial Services Regulatory Commission (FSRC). During the review period, the sector's 
contribution to GDP is 7.1%. The main legi slation governing domestic banks and non -bank financial 
institutions, except insurance companies and credit unions, is the Banking Act 201517, which is an 
ECCB -wide harmonized banking framework.  
4.12.  During the review period, the banking sector in Antigua and B arbuda has come under 
significant pressure including dealing with the very real possibility of being locked out of the global 
financial architecture as a consequence of de -risking/ debanking and the significant reduction in 
existing corresponding banking r elations. This bares serious implications for international trade and 
commerce particularly because Antigua and Barbuda is a net importer, remittances, financial account 
flows which is critical to financing investments and offshore banking operations and s ervices.  
4.13.  Additionally, the sector has undergone a consolidation of its activities. Between 2016 and 
2018, a total of two banks and a financial institution had their licences revoked. In 2021, Scotiabank 
in Antigua and Barbuda completed the sale of its ope rations to the Eastern Caribbean Amalgamated 
Bank (ECAB) and ACB Caribbean (previously known as the Antigua Commercial Bank) acquired the 
operations of the Royal Bank of Canada (Antigua).18 The number of domestic banks in operation has 
been reduced to four , out of which two are locally incorporated and owned banks while the two 
others are branches from other banks in the region.  
4.3  Telecommunications  
4.14.  In Antigua and Barbuda, currently, the Telecommunications sector is governed by the 
Telecommunications Divisi on of the Ministry of Information , Communications Technology and 
Digitalization. The Telecommunications Act 1951, which is the main legislation governing the sector, 
was updated in 2018.19 A critical change the act envisions is for the creation of the 
Telecommunications Authority and once established will be responsible for regulating the sector 
under the directions of the Minister of Information, Communications Technology, and Digitalization. 
The Telecommunications Authority will consist of five members re presenting different national 
entities as well as telecommunications experts.  
4.15.  To date, Antigua and Barbuda is still the only OECS -WTO Member that is not a member of the 
Eastern Caribbean Telecommunications Authority (ECTEL).  
4.4  Maritime transport services  
4.16.  The main legislation governing the sector is the Merchant Shipping Act 2006, as amended. 
During the review period, the Act was amended to remove restrictions on the registration of 
passenger ships and high -speed craft; to increase the choice of ports of re gistry for commercial and 
pleasure yachts; to formalize the issuance of temporary permissions; to implement international 
conventions and agreements to which Antigua and Barbuda is a party; to prescribe the removal of 
ships from the Registrar in given circ umstances; to enable the provisional registration of ships; and 
to amend qualifications to own Antigua and Barbuda ships. The Department of Marine Services and 
 
17 This Act entered into force on 1  October  2015 and repealed the previous Banking Act 2005.  
18 Viewed at: https://www.eccb -centralbank.org/news/view/acquisition -of-royal-bank-of-canada -eccu-
operations -by-consortium -of-national -banks -finalised . 
19 Telecommunications (Amendments) Act 2018.  WT/TPR/G/437 • OECS -WTO Members  
 
- 38 - 
 
  Merchant Shipping (ADOMS) within the Office of the Prime Minister regulates small craft and 
merchant shipping activities.  
4.17.  St. Johns is the main commercial seaport in Antigua and Barbuda. Bulk cement enters through 
Crabbes Port, while High Point Port and Fort James Port (West Indies Oil Sea Island Jetty - Off Fort 
James) handle bulk petroleum products.  All ports are owned and controlled by the State.  
4.18.  Recently changes have been introduced by the Merchant Shipping (Vessels in Commercial Use 
for Sport or Pleasure) Regulations 2022, which replace the Merchant Shipping (Commercially 
Operated Large Vessels) R egulations 2020. The new Regulations provide for the recognition and 
application of the codes applying to vessels above or below 24m in length. The UK Marine Guidance 
Notice 280 (M) as published by the UK Maritime and Coastguard Agency (MCA), is applicable  to 
vessels under 24m. For vessels over 24m the UK Red Ensign Yacht Code or the newly adopted 
Marshall Islands Yacht Code 2021 may be used.  
4.19.  Cabotage, which is the operation of commercial vessels solely within the maritime jurisdiction 
of Antigua and Barbud a, is reserved for ships registered in Antigua and Barbuda. Masters, chief 
officers, and chief engineers of merchant ships registered in Antigua and Barbuda must be nationals 
of Antigua and Barbuda, except if vessels are mainly employed between ports outsi de Antigua and 
Barbuda.  
4.5  Institutional Framework  
4.20.  During the period under review the Ministry of Foreign Affairs is responsible for trade policy 
formulation, implementation and surveillance. This ministry in collaboration with various 
stakeholders and agenci es of the government, private sector and our diplomatic missions overseas 
map and create trade policy in Antigua and Barbuda.  
5  TRADING ARRANGEMENTS  
5.1  Regional Integration  
5.1.1   OECS Economic Union  
5.1.  Antigua and Barbuda is a member of the OECS Economic Union guided  by the Revised Treaty 
of Basseterre which was signed on 18 June 2010 during the 51 th Meeting of the Authority of Heads 
of Government of OECS Member States. The Treaty established a single financial and economic 
space within which goods, people and capital  move freely, monetary and fiscal policies are 
harmonized and countries continue to adopt a common approach to trade, health, education and 
environment, as well as to sectoral development in agriculture, tourism and energy. The Revised 
Treaty of Basseterre  has been ratified by all OECS WTO Members; it came into force in January  2011.  
5.2.  The principal Organs are: (a) the OECS Authority of Heads of Government of the Member 
States; (b) the Council of Ministers; (c) the OECS Assembly; (d) the Economic Affairs Coun cil; and 
(e) the OECS Commission.  
5.1.2   Caribbean Community  
5.3.  The creation of a single market and economic space including ultimately a customs union with 
the free circulation of goods is also a stated aspiration of CARICOM Member States including Antigua 
and Bar buda under the Revised Treaty of Chaguaramas (RTC). While major achievements have been 
achieved in the area of free movement of certain categories of people, free trade in services and the 
rights of establishment, much remains as work in progress and with some gaps remaining in the 
CSME project including inbuilt agendas in the RTC.  
5.1.3   CARIFORUM -EU and UK Economic Partnership Agreement  
5.4.  The Economic Partnership Agreement (EPA) between the EU and the 15 Caribbean countries of 
OACP States (CARIFORUM) including Ant igua and Barbuda, is fourteen years into implementation. 
The withdrawal of the UK from the EU necessitated the transposition of the commitments of 
CARIFORUM and the UK under the CF -EU EPA to a new CARIFORUM -UK EPA. The roll -over process WT/TPR/G/437 • OECS -WTO Members  
 
- 39 - 
 
  was completed and t he CARIFORUM – UK EPA began to be provisionally applied between CARIFORUM 
States and the UK from January 2021.  
5.5.  The CARIFORUM -EU EPA is currently undergoing its second five -year review which is meant to 
identify and provide recommendations for addressing th e challenges to implementation, to 
leveraging opportunities and to the realisation of the expected benefits.  
5.2  Preferential Trading Arrangements  
5.2.1   CARICOM bilateral trade arrangements  
5.6.  As a member of the Caribbean Community (CARICOM), Antigua and Barbuda is party to five 
special trading arrangements that have been negotiated by the regional trading bloc with third 
parties. These CARICOM bilateral trading arrangements with third parties a re: (a) Agreement on 
Trade, Economic and Technical Cooperation between CARICOM and Venezuela; (b) Agreement on 
Trade, Economic and Technical Cooperation between CARICOM and Colombia; (c) CARICOM – 
Dominican Republic Free Trade Agreement (d) Partial Scope A greement between the Republic of 
Cuba and the Caribbean Community; and (e) CARICOM -Costa Rica Free Trade Agreement.  
5.2.2   Non-reciprocal trade agreements  
5.7.  Antigua and Barbuda continues to be eligible for the preferential market access granted under 
two non -reciprocal and unilateral trade arrangements in the hemisphere – the Caribbean Basis 
Initiative (CBI) and the Caribbean -Canada Trade Agreement (CARIBCAN). In 2015, the General 
Council approved the request for an extension of the waiver for both the CARICAN and the CBI to 
2023 and 2025 respectively.  
5.2.3   Multilateral trading system - The WTO  
5.8.  Antigua and Barbuda, a small vulnerable economy remains committed to the World Trade 
Organisation by placing a high level of priority on a fair, equitable, open, transparent, inc lusive and 
rules-based multilateral trading system geared towards meeting the needs of all its members 
irrespective of size, economic dominance or lack thereof.  
5.9.  Since the last OECS trade policy review, many developments have occurred on the multilateral 
and plurilateral trade agenda, including, but not limited to the entry into force of the Trade 
Facilitation Agreement (TFA); the conclusion of a Fisheries Subsidies Agreement, albeit with 
outstanding elements to be negotiated; the launch of several Joint Sta tement Initiatives (JSIs), 
namely with respect to Electronic Commerce, Investment Facilitation for Development, Domestic 
Regulation in Services, Micro -Small -and-Medium -Sized -Enterprises (MSMEs), Women's Economic 
Empowerment, Plastics Pollution and Environm entally Sustainable Plastics Trade, Trade and 
Environmental Sustainability, and Fossil Fuel Subsidy Reform. Issues relevant to agriculture, 
WTO reform, the E -Commerce Work Programme and Moratorium, and services, are also of 
significant importance.  
5.2.4   DS: 285:United States — Measures Affecting the Cross -Border Supply of Gambling 
and Betting Services  
5.10.  In March 2003,  Antigua and Barbuda requested consultations with the US regarding measures 
applied by central, regional and local authorities in the US which affect the cross -border supply of 
gambling and betting services. Antigua and Barbuda considered that the cumulative impact of the 
U.S. measures is to prevent the supply of gambling and betting services from another WTO Member 
to the United Sta tes on a cross -border basis.  
5.11.  A dispute ensued dubbed the Gaming Dispute20 and respective reports were issued in 
accordance with the WTO Dispute Settlement Understanding. In the end, the Appellate Body upheld 
the Panel's finding, albeit for different reason s, that the United States' Schedule includes a 
commitment to grant full market access in gambling and betting services; upheld the Panel's finding 
that the United States acts inconsistently with Article XVI:1 and sub -paragraphs (a) and (c) of 
 
20 Viewed at: https://www.wto.org/english/tratop_e/di spu_e/cases_e/ds285_e.htm . WT/TPR/G/437 • OECS -WTO Members  
 
- 40 - 
 
  Article  XVI:2  by maintaining certain limitations on market access not specified in its Schedule; and 
upheld, albeit on a narrower ground, the Panel's finding that the United States had failed to show 
that these measures satisfy the conditions of the chapeau of Article XIV. 
5.12.  Subsequently during the compliance hearing in 2006, the panel ruled that the United States 
failed to comply with rulings of the DSB. Consequently, the Arbitrator in 2007 determined that the 
annual level of nullification or impairments of benefits accr uing to Antigua is US D 21 million.  
5.13.  To date, the United States is yet to comply with the rulings and recommendations of the DSB.  
6  CONCLUSION  
6.1.  During the period, Antigua and Barbuda was subjected to the devastating impacts of the 
COVID -19 pandemic, and a serie s of catastrophic hurricanes and other adverse weather occurrences. 
This helped to further strain the already limited human and financial resource capacities of the 
economy. Nonetheless, Antigua and Barbuda remained resilient and committed to the process o f 
meeting its obligations under the multilateral trading system.  
6.2.  The effects of the pandemic were particularly deleterious, with GDP significantly contracting by 
20.2% in 2020 compared to growths of 4.9% in 2019 and 5.3% in 2021. Data indicates that the 
pandemic resulted in GDP loss of US D 0.32 billion and a loss of US D 15.5 million in exports.  
6.3.  Furthermore, tourism, the most important sector of the economy, also came to an abrupt halt 
due to the pandemic.  
6.4.  Evidence of economic recovery are visible however we  are yet to regain the grounds lost due 
to the pandemic.  WT/TPR/G/437 • OECS -WTO Members  
 
- 41 - 
 
  DOMINICA  
1  INTRODUCTION  
1.1.  The Government of Dominica welcomes the Fourth Trade Policy Review (TPR) which gives a 
clear indication that this WTO Member State, which is also a Member St ate of the Caribbean 
Community (CARICOM) and the Organization of Eastern Caribbean States (OECS ), remains on a 
path set on realising full integration into the regional and international trading arenas. The years 
preceding this TPR are indicative of this pursued agenda with engagement of Two (2) Five (5) year 
Reviews of the CARIFORUM -European Union (CAR -EU) Econom ic Partnership Agreement (EPA), the 
conclusion of the CARIFORUM -United Kingdom (CAR -UK) Economic Partnership Agreement (EPA) in 
2019 and its ratification thereafter by the Commonwealth of Dominica. The Government of Dominica 
recognizes that these agreement s are important tools of trade policy that can facilitate the 
achievement of important developmental gains one of which is increased market access and 
development cooperation1. 
1.2.  The regional integration process, at the CARICOM level, is advancing, in accor dance with, for 
example, Article 46 of the Revised Treaty of Chaguaramas (RTC) facilitating, administratively and 
otherwise, CARICOM Nationals a right to enter the municipal planes of a other Member State for 
Six (6) months; the possession of a CARICOM Ski lls Certificate will give rise to Indefinite Stay in a 
fellow Member State. Notably also is the fact that the Categories of CARICOM Nationals with the 
right, under Article 45 of the RTC, to move freely for the purposes of employment has been further 
enlarg ed from the 2001 Treaty depictions from Five (5) categories to Thirteen (13).  In an effort to 
speed up the implementation of the CARICOM Single Market and Economy (CSME) Member State 
Implementation Plans have been created and activities therein are being a ctively pursued. Dominica 
moved to create the impetus to implement its Plan by formalizing this through a Cabinet Decision 
taken in March 2022.  
1.3.  As a Member State of the OECS, Dominica is poised to engage the aggressive integration 
agenda set by OECS Member States. There is the establishment of an Economic Union inclusive of a 
Customs Union and harmonized border taxes; there is a Roadmap in place t o see this to fruition. 
More structured and bi -annual scheduled Ministerial Meetings have also been agreed in an effort to 
prepare for engagement at other Regional and international fora and to ensure political buy in for 
matters of significant importance to regional economic and social growth and enhancement.  
1.4.  Dominica's trade policy is being  guided, developed and implemented within the broader 
National Development Framework contained in the National Resilience Development Strategy 
(NRDS) Dominica 2030; th e goal is to reap the benefits of globalization, to combat climate change 
and overcome the numerous challenges the country is facing as a small developing country.  
1.5.  Dominica National Resilience Development Strategy 2030 seeks to integrate inclusive economic  
growth with building climate resilience. This provides an overarching and strategic perspective on 
the management of Dominica's economy into the future as the country strives to become the world's 
first climate resilient country. This current development strategy is set against the backdrop of the 
most unusual and challenging times Dominica has faced as a result of the passage of category 5 
Hurricane Maria2 which was preceded by Tropical storm Erika, both natural disasters destroyed more 
than 300% of the country's GDP.  
1.6.  Enhancement of Dominica trade performance is guided by a Cabinet approved National Trade 
Policy (2022 -2035), the strategic orientation and theme of which is Growth, Resilience and 
Sustainable Development while pursuing economic growth throu gh increased economic output, 
consumption and trade, balanced by ensuring increased equity, empowerment and inclusion for all 
but particularly the most marginalised like women, youth, the Indigenous race and other 
disadvantaged groups and the protection, p reservation and reuse of environmental resources.  
 
1 National Trade Policy 2022 -2035.  
2 National Resilience Development Strategy 2030.  WT/TPR/G/437 • OECS -WTO Members  
 
- 42 - 
 
  2  RECENT ECONOMIC PERFORMANCE  
2.1.  The revised projections provided by the IMF, in May 2021, indicated that economic activity in 
Dominica contracted by 11% in the calendar year 2020. This was due to reduced activi ty in all main 
sectors of the economy including construction, tourism, wholesale and retail trade and transport. 
Conversely, increased activity in Agriculture was evident in 2020; the Sector registered another year 
of positive growth and expanded by 2.1% i n 2020. The output in the crops sub -sector increased by 
2.3% and livestock and forestry grew by 2% in 2020. The Central Government's fiscal position 
improved with an overall deficit of XCD 97.9 million recorded in the Fiscal Year 2020/21 down from 
XCD 163.2 million in the Fiscal Year 2019/2020. Notably, the recent crises have seen an increase in 
public debt from 72.1% in 2012/13 to 102.7% in 2021 .3 
2.2.  Dominica has managed to keep up with prudent fiscal management coming out of Tropical 
Storm Erica in 2015, Hu rricane Maria in 2017 and the COVID -19 Pandemic crises. Dominica's debt 
is considered manageable and servicing of debt remains a high priority for the government. Greater 
financial discipline and increased attention to cash flow management continues to all ow for more 
effective control of current expenditure.  
2.3.  Dominica's trade in services profile, in contrast with its trade in goods reflects an increase in 
imports by 6% to XCD 183.39 million between 2007 to 2011, while exports increased by 62.6% to 
XCD 442.3 1 million within the said period. Conversely, between 2016 and 2020, exports of services 
decreased by 65%, from XCD 659.41 to XCD 229.00; imports also decreased by 39% from 
XCD 381.88 million to XCD 231.88.4 Dominica is a net exporter of telecommunication s, computer 
and information services.   
2.4.  According to IMF estimates5 growth was projected at 3.1% in 2014 and projected at 4.8% in 
2021, supported by new public infrastructural projects and recovery in the Agricultural and Tourism 
sector.  
3  CHALLENGES FACING  DOMINICA  
3.1.  Dominica as a small developing state is faced with inherent and structural challenges to include 
economic, social, political, and environmental. The country continues to be challenged by the current 
global economic status quo, weather systems, an d setbacks in foreign investments flows.  
Notwithstanding the challenges, t he Government continues in its thrust to elevate the lives of its 
citizens through poverty reduction via the enabling of economic opportunities resulting in 
employment creation.  The Government views investment in agriculture, community tourism, human 
resource development and improving environment for private sector activity as offering the best 
prospects in this endeavour.  
3.2.  The Government has, in an effort to create direct employment a nd to enhance employability 
of the youth, through internship and other initiatives, launched a National Employment Programme, 
on 2nd December  2013. The programme is coordinated by the Employment Unit, within the Ministry 
Environment, Rural Modernisation and Kalinago Upliftment .6 In response to Hurricane Maria in 2017 
and the global crises, the government has expanded the Program. The program ex panded its 
coverage, absorbing a substantial proportion of the unemployed population .7 The number of persons 
employed as of October 2022 is 4337 .8 
3.3.  Dominica still continues to grapple with the following:  
• Continuing sound fiscal management to consolidate progress towards reducing the 
government's financing requirements to sustainable levels and reducing public sector 
indebtedness;  
 
3 Debt Unit, Ministry of Finance, Commonwealth of Dominica, 2021.  
4 Ibid.p.2.  
5 IMF, 2013, 2022 . 
6 Ministry of Environment, Rural Modernisation and Kalinago Upliftment.  
7 Voluntary National Review of Dominica 2022.  
8 Ibid.p.4.  WT/TPR/G/437 • OECS -WTO Members  
 
- 43 - 
 
  • Reducing poverty levels through social services and social assistance programmes. The 
latter is being addresses in part by a go vernment  programme providing primary care 
services at no cost to the poor, pregnant women, seniors above 60 years, citizens below 
18 years old;  
• Improving the efficiency of institutions and simplifying procedures that make the 
enabling environment for priva te enterprise with a view to shortening the process and 
reducing the cost of establishing new and expanding existing businesses. This is being 
pursued through the implementation of the WTO Trade Facilitation Agreement guided 
by a Roadmap, containing 48 act ivities to be implemented by the end of 2024.  
4  GOVERNMENT'S MEDIUM TERM DEVELOPMENT STRATEGY  
4.1.  The National Resilience Development Strategy  (NRDS) 2030 is the most recent development 
strategy for Dominica; this was birthed in the aftermath of the devastation caused by Hurricane 
Maria in 2017, which inflicted damages of 226% of GDP in 2017 .9 It integrates inclusive economic 
growth with building climate resilience and is designed to continue the policy thrusts of the Growth 
and Social Protection Strategy (GSPS) , 2014 –2018, while orienting Dominica's development strategy 
to the Sustainable Development Goals (SDGs) adopted by the international community. The key 
pillars of the national policy are employment creation, revenue generation, economic diversification, 
sustainable and inclusive growth, social protection, poverty reduction, environmental and cultural 
preservation.   
4.2.  The NRDS envisages a "five staged framework" over the 12 years, 2018 -2030, which sums up 
"resilience" and comprises of seven (7) multiple development objectives:  
1. The promotion of food security and self -sufficiency through Climate Resilience Agriculture 
and Fisheries Development;  
2. Enhancing the resilience of Ecosystems and sustainable use of natural resources (Forestry, 
Marine, Water resources);  
3. Enhancing Infrastructure Resilience;  
4. Promotion of Sustainable Human Settlements/Communities;  
5. Provision of adequate and sustainable social protection systems with the ability to respond 
rapidly to the impact of shocks at the individual and house hold levels;  
6. Implementing a Comprehensive Risk Management Framework (including National 
Vulnerability Risk Resilience Fund) and pursuing the Low Carbon Development Pathway (the 
greening of the economy);  
7. Economic empowerment and innovations through sustain able Climate Financing.  
 
4.3.  This strategy is characterised by a tripod: Sustainable Development Goals, Building the First 
Climate Resilient Country in the World vision and People -centred Development. These strategic 
guiding principles are shaped by three (3) key elements:  
• Environmental Protection;  
• Social Development;  
• Economic Development and Transformation.  
4.4.  At the core of this strategic framework are the national goals of Sustainability and Resilience. 
Sectoral strategies which focus on people, sound macr o-economic and fiscal policies, environmental 
management, sustainable and inclusive growth with jobs, and synergistic and cross -cutting areas 
are the engines that drive the NRDS, and once successfully implemented will lead to a resilient 
Dominica.  
4.5.  In Brief , Dominica's economic outlook will be characterized by the a cceleration in the 
implementation of the Public Sector Investment Programmes (PSIP) largely financed by proceeds 
 
9 Post Disaster Needs Assessment (PDNA) . WT/TPR/G/437 • OECS -WTO Members  
 
- 44 - 
 
  from the Citizenship by Investment (CBI) Programme, the Construction of the Interna tional Airport 
and Private Sector initiatives inclusive of t building luxury hotels to support the Tourism Sector.  
5  SECTORAL DEVELOPMENTS AND PROGRAMMES  
5.1.  The Government of Dominica has embarked on several interventions, on a sectoral level, 
geared at the r ealization of sustained economic growth over the medium and long term. Eco -tourism, 
agro-industries, manufacturing of soaps and varied flavoured Sea moss Beverages, as well as Paints 
and Varnishes, niche -focused agriculture, innovative interventions in the  marketing of water (our 
premier natural resource) and the quarrying of sand and aggregate are some of the resource based 
industries which Dominica enjoys some comparative advantage in and have great potential to 
generate employment and income growth oppor tunities.  
5.2.  The sectors will now be expounded upon hereunder:  
a. Agriculture  
 
5.3.  Dominica National Agricultural Policy ( NAgriP) 2021-2030 has been developed  within the 
framework of the resilient nation vision, to guide the sector recovery and to set the foundatio n for 
sustainable growth. Hurricane Maria caused significant damage to the sector with total damages 
estimated at XCD 149.2 million and losses amounting to XCD 335.8 million. Over the last decade 
the sector's contribution to GDP has been increasing and rea ched 11.2% in 2020 and 13.06% in 
2021. The Government's goal is for an increase in the A agricultural sector's contribution to GDP to 
XCD 700 million by 2030.  Dominica's non -banana crops include plantains, citrus fruits, root crops, 
vegetables, herbs and sp ices. The sector employs approximately a third of the labour force and is 
an important source of foreign exchange earnings.  
5.4.  Government's recognition of the contribution of agriculture to the economy can be seen in its 
2018 intervention through the Emergen cy Agricultural Livelihoods and Climate Resilience Project 
(DEALCRP) where XCD 67.0 million was invested in the restoration of the sector. This included 
projects to propagate 627,600  tree crops, 5,249,000  root crops, 837,000  vegetable seedlings 
over the ne xt five (5) years; it also included technical and financial support as well as provision of 
tools and equipment to farmers .10 As of 28 May 2021, a total of 3,485  farmers and fisher folks 
benefited from this Project.  
5.5.  In this Sector the Government ensured investment in supporting infrastructure one of which 
remains the Multi-Purpose Pack Houses which have significantly improved the country's handling of 
fresh produce, enabling the enhancement and attractiveness of the p roduce to meet Regional and 
international phytosanitary requirements. In 2019 the Multi -Purpose Packhouse processed 
XCD 2.1 million of fresh produce and approximately XCD 1.4 million in 2020.  
5.6.  The transfer of modern agricultural technologies is also remaining a strong feature of the 
development objectives for the agricultural sector; a s part of Government's efforts towards 
modernizing agriculture a modern tissue culture facility at One Mile, Portsmouth, on the North of the 
Island, will be constructed,  this Project will be financed with a grant of XCD 13 million, from the 
People's Republic of China (PRC).11 
b. Tourism  
 
5.7.  Government has identified tourism as having the potential for the most rapid growth in the 
economy because of Dominica's comparative advant ages in this Sector and the country's enhanced 
tourism product. The Government of Dominica approved a National Tourism Policy and a Revised 
Master Plan in 2021. The Four (4) objectives of the Tourism Policy are: (1) To create economic 
wealth for all citize ns and to ignite other sectors of the economy; (2) To use Tourism as a tool to 
sustain the environment; (3) To use the Tourism Industry as a vehicle for nation -building and an to 
manifest an improved quality of life for Dominicans through the development o f the infrastructure, 
services, amenities, job creation, increased competitiveness and economic diversification; and 
 
10 Dominica National Budget Address 2020/2021.  
11 Ibid.p.6  WT/TPR/G/437 • OECS -WTO Members  
 
- 45 - 
 
  (4) To encourage spin -off effects of tourism to grow the cultural and creative industries and festivals. 
The content of the Master Plan was  generally outlined in Dominica's 2014 TPR.  
5.8.  During the period under review the Ministry of Tourism and Discover Dominica Authority have 
been working towards establishing a bolder identity for the Commonwealth of Dominica; work began 
in earnest from 2016. Dominica is frequently confused with the Dominican Republic and therefore it 
is important to create a clear distinction in the mind of potential visitors. A global study revealed 
that changing the logo would help Dominica stand out in the global tourism ma rket. The new logo is 
unambiguous and clear and can be clearly identified when used in smaller applications such as digital 
advertising and social media.  
5.9.  Dominica's tourism product has expanded and evolved in the past few years, so the new logo 
better refl ects Dominica as a unique and desirable Caribbean destination. The process was guided 
by key stakeholders including global source market representatives, prospective visitors, hoteliers, 
business owners, government officials, residents and Dominicans Livin g Abroad.  
5.10.  Attention is also being paid to the enforcement of standards and quality service within the 
accommodation sector aimed at increasing the total number of quality rooms available for stay -over 
visitors. Emphasis is being placed on development of s ites and facilities. In order to ensure that the 
benefits of tourism spread throughout the society Government has initiated community based 
tourism. Under the initiative several communities are receiving financial support for the 
implementation of projects ; training continues to ensure that perceived outcomes are met and 
surpassed.  
c. Manufacturing  
 
5.11.  The Government in the NRDS outlined an agenda for the development and transformation of 
the sector specifying the development of infrastructure, continued financia l support including 
developing eco -industrial parks .12 The advancement of agro -industries is a major part of the 
development of the manufacturing sector. Agro -processing and deep manufacturing provides great 
opportunities for employment generation during the medium -term since it is a natural 
resource -based industry that can be internationally competitive. In an effort to allow for a more 
competitive finished product Government removed the Value Added Tax (VAT) and import duty on 
packaging  and labelling materials, as well as on the equipment and machinery used in the production 
of goods, from 1 September  2020.13 
5.12.  Agro-processing also plays an important role in reducing post -harvest losses in agriculture 
that are very significant for fruit an d vegetables and which adversely affect returns and incomes for 
those involved in agriculture. Agro -industries are also amenable to small -scale cottage type 
industrial development. Despite these advantages, agro -processors are prone to global realities suc h 
as the high cost of sourcing agricultural raw materials, obtaining of capital for development, 
transportation to export markets, lack of "on the spot" market intelligence; and 
inadequate/inaccessible institutional support.  
5.13.  Government's strategy towards a gro-processing is broadly the same as for the manufacturing 
sector as a whole and is centred around the reduction of barriers to growth and the creation of a 
more conducive environment for these investments to thrive. The Government has available funding 
to be disbursed to manufacturers and agro -processors, through the country's Agricultural, Industrial 
and Development Bank (AID Bank), for supporting of productive activities within this Sector.  
d. Energy  
 
5.14.  The government recognises that energy services are key to unlocking the potential for more 
sustainable environmental, social and economic development in Dominica.  To that end, a National 
Energy Policy has been developed, approved in January  2021. and is intended to address the needs 
of the citizens of the Comm onwealth of Dominica, help combat increasing energy costs and 
dependency on fossil fuels, and reduce Dominica's greenhouse gas emissions in line with its mantra 
the "Nature Island of the Caribbean." As reflected in the Policy Document "…The Policy represen ts 
the desire of the Dominican people to improve the quality of life and living standards on Island for 
 
12 Source: National Trade Policy.  
13 The National Budget of the Commonwealth of Dominica Fiscal Year 2020/21.  WT/TPR/G/437 • OECS -WTO Members  
 
- 46 - 
 
  this generation and future ones as set out and tracked in the Growth and Social Protection Strategy 
(GSPS)."  
5.15.  The Policy establishes the framework for a n energy transition which will deliver national 
development outcomes for the environment, society and the economy of Dominica and aligns with 
Government's stated target of 100% Renewable Energy by 2030. The transition to a more affordable, 
resilient and lo w-carbon energy system will require phasing out fossil fuels in power generation and 
transport. Five policy objectives therefore seek to deliver outcomes in terms of: (1) Increasing 
access to modern energy services that are safe, affordable and reliable fo r all citizens; (2) Provision 
of Energy Services for Stimulating Environmental, Social and Economic Development; (3) Managing 
energy -related environmental, health and safety impacts; (4) Enhancing Resilience in the Electricity 
Sector and existing and plann ed centralized infrastructure; and 5. Improving governance in the 
energy economy.  
5.16.  The Government, in an effort to ensure that its Energy Policy can influence properly the 
company's internal policies, has purchased the majority shares in the main electricit y provider in 
Dominica the Dominica Electricity Services Company (DOMLEC). Since then, the generation of 
hydroelectricity has been expanded thereby increasing the hydro – output of the company and in so 
doing reducing the dependence on fossil fuel for elec tricity generation.  
5.17.  The Government of Dominica also has embarked on a national street lighting project which 
involved the installation of 4851 solar street lights, across the country, at an estimated cost of 
XCD 92.45  million. This will, in part, reduce th e burden on the government electricity budget and 
also reduce reliance on the electricity grid.  
5.18.  Dominica's long -term goal, in this Sector, is to explore and utilize renewable and alternative 
energy potential and work has begun on a Geothermal Development P roject, in the Roseau Valley, 
with the construction of two additional wells in Laudat; with financial and technical support from the 
World Bank. Additionally, the government has also conducted five (5) procurements associated with 
the drilling of these wel ls and this includes the civil works for access roads and well pads, for which 
a contract of has been awarded to a local company in May 2021.  
6  THE ENABLING ENVIRONMENT AND THE CLIMATE FOR INVESTMENT  
6.1.  The Government of Dominica continues to make a an attract ive and rewarding investment 
climate a priority and, in this thrust, has secured funding and signed a contract for the construction 
of a modern and resilient international airport which will provide direct connections to key 
metropolitan cities in North Am erica and Europe with the potential for connections to South America, 
Africa and Asia and the Pacific. This, it is envisioned, will improve trade as it will enhance the 
capabilities for producers to access and secure certain inputs in shorter periods of ti me and will also 
benefit the hotel and restaurant sectors catering to certain touristic experiences; further, fresh 
ingredients, required on a daily basis, will become much more accessible.  
6.2.  To encourage further investment, the government has introduced fi scal and other measures to 
include the temporarily  reduction in land transfer fees as of September 2020, with a view to making 
this permanent upon expiration of the twelve (12) months Pilot introduction. As of 1 November  2022, 
the applicable fees on the tr ansfer of land changed to 2 % Stamp duty, 1 % on Judicial Fee, 1 % on 
Assurance Fund and a maximum 2.5%  fees Legal Fees.  
6.3.  Administrative transparency and efficiency that affect the time and cost of doing business have 
been identified as the essential aspects of investment climate that need to be addressed.  
6.4.  Moreover, the Government of Dominica has been aggressively implementing the WTO Trade 
Facilitation Agreement (TFA) within its jurisdiction. Dominica benefitted, in the structured approach 
to this eff ort, from UNCTAD which worked with the Members of the formalized, Cabinet approved, 
National Trade Facilitation Committee (NTFC) to develop a Roadmap for the implementation of the 
TFA. This Roadmap envisions Forty -Eight (48) activities which will ensure im plementation, in full, by 
2024.  
6.5.  The activities include but are not limited to a 25% reduction in the cost of import and export 
by 2024; 25% reduction in the time to import and export by 2024; 100% of TFA Measures WT/TPR/G/437 • OECS -WTO Members  
 
- 47 - 
 
  implemented as reflected in the Notificatio ns; a fully operational NTFC (this has been achieved as of 
2019); and including Trade Facilitation into Dominica's planning and budgetary processes. 
Dominica's expectation, post the full implementation of the TFA, is the reduction in overall trade 
related transaction costs by no less than 17% thereby allowing improved ratings in its World Bank 
Doing Business Report reflections.  
6.6.  Dominica has also realized Fifty -Seven (57) amendments and enactments of laws and 
regulations, during the period of review, to incl ude Financial and Intellectual Property pieces of 
legislation all in an effort to ensure a robust legislative framework within which investors can feel 
comfortable and confident working within.  
7  TRADE POLICY AND NATIONAL ECONOMIC DEVELOPMENT  
7.1.  Dominica contin ues to recognize its obligation to strive to ensure a harmonized trade policy 
within the regional construct – CARICOM and the OECS; the efforts to continue the deepening of the 
regional integration process continues unabated with its focus on realizing exp ected outcomes within 
its CSME Implementation Plan (CARICOM) and efforts to establish the OECS Economic Union. The 
CSME Implementation Plan, as stated earlier, has received Cabinet's Approval.  
7.2.  Dominica has also completed its National Trade Policy (NTP); th is has received Cabinet's 
Approval and will be the yardstick by which our local, Regional and International Trade is aptly 
guided. Its Vision Statement being: " Globally competitive exports driving a more balanced, 
diversified, sustainable and resilient eco nomy." Its Mission Statement:  "To establish a 
market -driven, development -led, sustainable trade policy capable of catalysing expanded 
economic growth, reduce poverty and attain improved living standards for all 
Dominicans." Its ultimate goal being to  "… si gnificantly improve Dominica external trade 
performance and balance of trade position and to improve the ease, efficiency, and 
confidence of Dominica domestic trading environment."  
7.3.  The NTP is set to be the yardstick by which Dominica conducts its trade rel ated activities and 
interventions locally, regionally and internationally. The idea being that it will be the catalyst for 
national economic development. The key policy objectives are as follows: (1) Enterprise and 
Business Development : Enhance the capacit y and capability of Dominica's business enterprises 
to produce and trade; (2) A Healthy Business Ecosystem : Improve the health of Dominica's 
business ecosystems; (3) An Enabling Business Environment : Strengthen the enabling 
environment for business and tra de; (4) Product Diversification : Identify and support new and 
emerging goods and services for production and exports; (5) Opening Markets : Open and improve 
market access to existing and new export markets; (6) Trade Agreements : Implement and secure 
intende d benefits from bilateral, regional and multilateral trade agreements.  
7.4.  The TPR engages guiding principles which include but are not limited to the following:  
• Mainstreaming of Trade:  Recognising the importance of trade to Dominica's economic 
development the  National Trade Policy promotes the mainstreaming of trade into the 
wider development policy of Dominica ; 
• Simplicity and Clarity of Policy:  The Policy is stated and communicated with 
simplicity and clarity. This applies even when dealing with complex and difficult matters. 
The idea being that any member of the public will be able to understand the policy with 
little or no difficulties ; 
• Realis m: The policy strives to be realistic about what autonomous domestic policy can 
be achieved and delivered taking full account of the interdependence between Dominica 
and its regional and international contexts and partners ; 
• Entrepreneurship and Innovation:  Fostering a culture for careful risk taking and 
creativity ; 
• Partnership and Collaboration:  With trade and development partners regionally and 
internationally.  WT/TPR/G/437 • OECS -WTO Members  
 
- 48 - 
 
  7.5.  This Policy, upon full implementation will transform both Dominica's present trade related 
realities and future engagements such as the Orange, Blue and Circular Economies. Monitoring and 
Evaluation, key to success, are to be embraced to ensure that the Vision and Mission of this Policy 
are achieved.  
8  REGIONAL INTEGRATION  
8.1  The OECS Economic Union  
8.1.  Wher e Dominica is concerned, the OECS integration process remains the foundation on which 
the wider regional integration process is based. The OECS Member States have more in common in 
terms of the structure of their economies, language, a single currency and a common goal towards 
the creation of a supra -national regional entity.  
8.2.  Dominica remains committed to the goals and ideals of the OECS which includes the building 
of institutions at the OECS level, the provision of shared services, and the growth in functi onal 
cooperation. The Implementation Plan to create a more harmonious Region, legislatively and 
otherwise, will be engaged and stakeholders are poised to move this process forward understanding 
what's at stake in this unpredictable global environment.  
8.2  The CARICOM Single Market and Economy (CSME)  
8.3.  The RTC, which birthed the CSME, continues to hold importance in Dominica's regional 
integration thrusts; Dominica has approved, in December 2019, the implementation of Article  164 
of the RTC on its soil. This Arti cle would allow additional tariff protections, within the CSME, for 
Member States, such as Dominica, to allow their Article  164 qualifying products to be more 
competitive, within tariff walls, even from similar and the same products coming from the ore 
Developed Member States (MDCs) of CARICOM. This stands to benefit Dominica's producers of 
Oxygen, Paints and Varnishes, Solar Water Heaters, Carbon Dioxide and Water.  
8.4.  The CSME space has also allowed for the enhancement of a more competitive environment for 
Dominica's premier manufacturing entity which produces bar soaps and Shampoo Bars. The CSME, 
through its Common External Tariff, has allowed for a tariff to be placed across Member  States, 
which provides a competitive shelter for these products.  
8.5.  Dominica i s also advancing its obligation under Article 46 of the CSME; the government is 
currently undertaking legislative and administrative interventions to facilitate the movement of 
additional categories. The new categories include:  
• Persons with Associates Degr ees; 
• Nurses ; 
• Teachers (not necessarily graduates) ; 
• Artisans with CVQs ; 
• House Servants with CVQs ; 
• Agriculture Workers ; 
• Security Guards . 
8.6.  Dominica's CSME Implementation Plan, a living document, will ensure that the country work 
towards the elimination of all administrative, legal, regulatory and procedural impediments to the 
full implementation of the RTC in Dominica.  WT/TPR/G/437 • OECS -WTO Members  
 
- 49 - 
 
  9  BILATERAL/HEMISPHERIC AND PREFERENTIAL TRADE ARRANGEMENTS  
9.1  CARICOM Bilateral Arrangements  
9.1.  These arrangements are set to be pro perly dissected and the benefits therein harnessed within 
the context of Dominica's National Trade Policy. There are numerous existing constraints which are 
presently preventing the full benefits of these agreements from being effectively embraced by 
Domin ica; most notable of these being the onerous administrative procedures to set up a company, 
language barriers and prompt payment for products exported into those markets.  
9.2.  Presently, working collaboratively with the CARICOM Secretariat further negotiations are taking 
place within the auspices of the CARICOM – Columbia; the CARICOM - Dominican Republic and most 
recently the CARICOM – Cuba Agreements.  
9.2  CARIFORUM -European Union (EU)/United Kingdom (UK) Economic Partnership 
Agreement (EPA)  
9.3.  The CARIFORUM and the EU/UK EPAs remain high on Dominica's Trade Policy agenda. These 
Agreements hold benefits for Dominica firstly due to the geographical location of the French 
Departments to Dominica and the blossoming historical trading relationship between Dominica and 
these countries on the CARIFORUM -EU EPA front. Additionally, Dominica enjoys a relationship with 
the UK as a Member of the Commonwealth States and coming from the Banana trade era. There is 
also developmental aspect to such Agreements which remain critical to  enhancing Dominica's trade 
related infrastructure. In 2022 imports from the EU and the UK into Dominica, for the first Six 
(6) months of 2022, stand at XCD 46,476,07.26 and XCD 133,097,31.84 respectively.  
10  MULTILATERAL TRADING SYSTEM - THE WTO  
10.1.  Dominica ha s been a founding Member of the WTO since its birth in 1995. Dominica remains 
committed to the disciplines, principles and ideals of this August Organization. Through the OECS 
Mission, in Geneva Switzerland, the country articulates its positions on themati c issues and remains 
active in the ongoing Negotiation process. Dominica is one of the few Member States of CARICOM 
participating in the discussions on Investment Facilitation (IF) and has implemented more than 90% 
of the Measures found within the auspices  of the WTO TFA.  
10.2.  Earlier this year, Dominica, as a Member State of CARICOM, contributed to the outcomes 
which realized success in the conclusion of a Partial Agreement on Fish and Fish Subsidies at the 
12th WTO Ministerial Conference in Geneva, Switzerland. Dominica will continue to participate 
actively in the ongoing Multilateral processes.  
11  TRADE FACILITATION IN DOMINICA – EFFORTS TO ESTABLISH A SINGLE WINDOW  
11.1.  Dominica remains one of the first Member States in CARICOM to embrace the ASYCUDA World 
platform; since then, the Country has updated to ASYCUDA 4.2.2. Dominica, however, sees value 
in the creation of a Single Window (SW) on Island to allow for savings in time and costs where the 
movement of goods, acro ss borders is concerned and further, to fulfil its Trade Facilitation (TF) 
Commitments.  
11.2.  It is contingent on this desire that the Investment Climate Reform (ICR) Facility was 
contacted, in May 2020, and a request was submitted to garner support for the esta blishment of a 
Single Window trade facilitation in Dominica. The project's Terms of Reference were prepared in 
consultation with the Ministry of Trade, Customs, and Invest Dominica Authority. The expert 
consultants were selected by SNV, the Netherlands Dev elopment Organization, which implements 
the ICR Facility. The Reform Management Unit (RMU) of the Ministry of Governance acted as the 
local counterpart to the ICR Facility for this Project. The project implementation period was from 
September  2021 to June  2022.  
11.3.  The Project sought to contribute to the establishment of a SW, pursuant of the commitment 
adopted by Dominica under the World Trade Organization's Trade Facilitation Agreement. The Project 
built upon the National Trade Facilitation Roadmap for Domini ca and was organized in three phases: 
Phase 1: Proposal for a common data model for the SW (October -December  2021); Phase  2: Review WT/TPR/G/437 • OECS -WTO Members  
 
- 50 - 
 
  of legislative, institutional, and regulatory frameworks pertaining to the SW 
(December  2021-February  2022); Phase 3: Design  of a single payment mechanism for fees charged 
by border agencies (March -June 2022).  
11.4.  This Project was carried out in active consultation with key Government Ministries and other 
public stakeholders, including Ministry of Finance Customs and Excise Divisio n, Ministry of Trade & 
Commerce, Ministry of Governance, Attorney General's Chambers, Ministry of Public Works and the 
Digital Economy, Invest Dominica Authority, Police, Dominica Bureau of Standards, Ministry of 
Health Environmental Health Unit, Ministry of Agriculture, and Dominica Air and Sea Port Authority, 
among others, as well as private sector trade operators.  
11.5.  The Three (3) phases of the Project have been completed and recommendations, on the way 
forward, have been made available to the relevant Gove rnment Authorities for required action. 
Presently, key stakeholders have met and have decided to employ the services of a manager whose 
primary responsibility will be the implementation of the recommendations stemming out of this 
Project, and to realize th e SW platform in Dominica.  
12  CONCLUSION  
12.1.  This Trade Policy Review for Dominica is set within the context of a country being ravaged 
twice by Natural Disasters (Tropical Storm Erika (2015) and Hurricane Maria (2017)) which caused 
loss and damage equivalent to  over 300% of GDP; the final year under review was spent battling 
the ravages of the novel Coronavirus ( COVID -19) which, to a large extent set back economic growth 
prospects, projected by the International Monetary Fund (IMF), of 5.5% for the year 2020.  
12.2.  This Trade Policy Review therefore is indicative of a story of triumph over adversity and the 
setting of the foundations for the realization of the first climate resilient country in the world!  
 
 WT/TPR/G/437 • OECS -WTO Members  
 
- 51 - 
 
  GRENADA  
1  ECONOMIC PERFORMANCE  
1.1.  Grenada is a small, open and vulnerable economy (vulnerable to external shocks and to natural 
disasters). It has a physical size of 133 square miles with a population of approximately 110,000. 
Its Gross Domestic Product (GDP) per capita is approximately US D 9680.00 wit h an adult illiteracy 
rate of about 4.0 %. 
1.2.  Historically the economy has been buoyed by the production and export of three principal 
primary products; nutmeg, banana and cocoa. In the case of banana Grenada's export benefited 
from preferential treatment on t he UK market and later the European Union (EU) market. By the 
turn of the late 1980s there began a structural shift to services, in particular tourism. Since then the 
production and export of the three primary products experienced a relative decline.  
1.3.  Grena da's economy grew strongly prior to the COVID -19 shock, supported by the 
implementation of important reforms and favorable external conditions. Real GDP growth averaged 
4.5% during 2014 -19, driven by agriculture, tourism, and construction.  
1.4.  The successful i mplementation of the Fiscal Responsibility Framework (FRF) helped address 
fiscal imbalances, boosted confidence, and underpinned an impressive reduction in public debt. An 
updated tax incentives regime helped attract foreign direct investment (FDI) inflows . Although still 
high, the poverty rate fell to 25 % (from 38 % in 2008) and unemployment declined to 15.4 % in 
2019.  
1.5.  Tourism directly and indirectly made up 40 % of value -added, one -quarter of employment, and 
80% of exports. Lockdown measures, necessary to co ntain the spread of the virus, prompted a 
collapse of tourism -related activities and suspension of in -person classes at Saint George's University 
(SGU), a key contributor to activity. Real GDP contracted by 14 % in 2020 and over 14,000  jobs 
were lost (over one-quarter of the labor force).  
1.6.  Real GDP is estimated to have expanded by 5.6 % in 2021 ( Table 1), driven mainly by growth 
in public -led construction and agriculture, and, to a lesser extent, a recovery in wholesale and retail, 
hotels and restaurants, manu facturing, and financial intermediation.  
1.7.  The economy is projected to recover gradually from the pandemic. The war in Ukraine will 
affect Grenada primarily through commodity prices.  
1.8.  Output is projected to expand by 3.6 % in 2022, underpinned by construction activity, the 
gradual pickup in tourist arrivals, and the continued return of SGU students. Inflation is expected to 
further increase to 5.4 % by end -2022, in line with rising global commodity prices, and to ease 
gradually. The current account deficit is pr ojected to worsen further in 2022 given the sharp 
increases in import prices, before improving in 2023 supported by increases in tourism export 
receipts.  
1.9.  In response to the pandemic, fiscal policy swiftly shifted toward supporting activity and 
protecting t he vulnerable. The escape clause under the FRF was triggered in both 2020 and 2021, 
allowing the government to launch two stimulus packages (equal to 2.1 % and 1.2 % of GDP, 
respectively), increase public investment (including to build resilience), and repri oritize 
expenditures.  
1.10.  Central government debt rose from 59 to 70 % of GDP during 2019 -21. 
1.11.  As a Small Island Developing country, Grenada is constrained in its development by a number 
of factors. These include: susceptibility to natural disasters; limited div ersification due to a very 
narrow resource base and small domestic market; limited domestic and export production on a 
limited number of products; Inadequate Infrastructure; and low levels of productivity.  WT/TPR/G/437 • OECS -WTO Members  
 
- 52 - 
 
  Table 1  
Rank in UNDP Human Development Index out o f 189 
countries (2020)  74  Infant mortality rate (2019, per 
1000)  14.7 
  
Adult illiteracy rate in % (2014)  1 
Life expectancy at birth in years (2020)  72 Poverty rate in % of population 
(2019)  25 
GDP per capita in US D (2020)  9,680   
Population in millions (2018)  0.11   
  Unemployment rate (2021 Q2)  17 
 
 2019  2020  2021  2022  2023  2024  2025  2026  2027  
National income and prices  Est.  Proj. 
GDP at constant prices   0.7 -13.8 5.6 3.6 3.6 3.9 3.5 3.2 2.8 
GDP deflator  0.6 -0.7 1.2 3.1 3.3 1.8 2 2.2 2.2 
Consumer prices, end of period   0.1 -0.8 1.9 5.4 2.3 1.8 2 2 2 
Money and credit, end of 
period          
  
Credit to private sector  1.4 3.1 3.8 3.8 3.9 4.2 3.8 3.4 3.2 
Broad money (M2)  2.9 9.1 8.5 3.3 3.4 3.6 3.4 3.3 3 
Central government balances 
(accrual)          
 
Revenue and grants 1/  26.6 28.1 31.8 29 29.6 28.8 28.2 28 28 
Expenditure 2/  21.6 26.9 31.5 32.4 27.9 26.6 26.1 25.7 25.6 
o.w. Capital expenditure  2.6 3.8 8.6 10.4 6.9 5.7 4.6 4.7 4.7 
Primary balance  6.8 3.2 2.1 -1.5 3.5 3.8 4.2 4.3 4.2 
Overall balance  5 1.2 0.3 -3.4 1.7 2.2 2 2.3 2.4 
Public debt (incl. 
guaranteed) 3/  58.5 71.4 70.3 69 66.5 64.4 58.9 53.6 48.6 
Domestic  14.6 16.2 15.4 15.3 13.8 12.5 11.4 9.6 8 
External  44 55.2 54.9 53.8 52.7 51.8 47.6 44 40.6 
Savings -Investment balance  -14.6 -21 -24.5 -27.9 -20.6 -15.4 -13.6 -12.9 -12.4 
Savings  9.8 4.2 3.4 0.3 4.5 8.9 10.1 11.4 12.5 
Investment  24.4 25.2 28 28.2 25 24.4 23.8 24.3 24.9 
External Sector           
Gross international reserves 
(USD millions)  234.1  290.9  324.2  353.2  357.2  361.2  363.2  371.2  378.7  
(in months of imports)  4.8 5.2 4.8 5.1 4.8 4.6 4.5 4.4 4.2 
Current account balance, o/w:  -14.6 -21 -24.5 -27.9 -20.6 -15.4 -13.6 -12.9 -12.4 
Exports of goods and services  54.5 40.4 40.1 47.5 54.4 59.9 61.7 61.3 61.2 
Imports of goods and services  59.9 56.3 60.4 67.5 65.6 66 65.9 64.7 64 
External debt (gross)  81.8 92.9 94.8 91.7 87.5 83.9 77.5 72.5 68 
1/ Includes Citizenship -by-Investment (CBI) related non -tax revenue.  
2/ The expenditure classification was revised in 2016 from GFSM 1986 format to GFSM 2014 format.  
3/ Includes the impact of the debt restructuring agreement for the 2025 bonds.  
Sources:  Country authorities, ECCB, UN, World Bank, and IMF staff estimates and projections.  
2  HOME -GROWN STRUCTURAL ADJUSTMENT PROGRAM (HGSAP)  
2.1.  The Government of Grenada undertook a Home -Grown Structural Adjustment program 
(HGSAP) over the period 2014 -2016 with suppo rt from a formal Extended Credit Facility (ECF) 
arrangement with the International Monetary Fund (IMF). This program was sixth engagement for 
Grenada since its independence in 1974. However it was noted that this program had a greater level 
of success than  previous programs.  
2.2.  The reason the Government of Grenada embarked on the HGSAP was because of numerous 
challenges with a weaken economy with volatility of economic growth, high unemployment rate and WT/TPR/G/437 • OECS -WTO Members  
 
- 53 - 
 
  public finance became increasingly strained, not because of the economic down turn, but also due to 
a sharp cutback in grants from traditional development partners after an IMF program was derailed 
in 2010.  
2.3.  The HGSAP was designed with three objectives which are as follows:  
1. "Strengthening competitiveness to ultimately generate highe r growth in the medium term. 
This objective was to be achieved by tightening income policies and eliminating some of the 
constraints to growth through reforms in energy, agriculture, tourism, and other sectors. 
There was also a strong emphasis on improving  the investment climate, and the institutional 
arrangements for public private partnerships.  
 
2. Restoring fiscal and debt sustainability via a comprehensive program inclusive of:  
• A significant and frontloaded fiscal adjustment to tackle flow imbalances;  
• A comprehensive debt restructuring to deal with stock imbalances; and  
• Ambitious fiscal -structural reforms to sustain fiscal gains.  
3. Strengthening the financial sector through ongoing participation in ongoing initiatives and 
strategies by the Eastern Caribbean  Central Bank (ECCB)", (Alexander et al. 2017).  
 
2.4.  The HGSAP also aimed to protect poor and vulnerable groups by strengthening the Support for 
Education Empowerment and Development (SEED) program.  
2.5.  During the HGSAP Grenada completed six successful reviews o f the Extended Credit Facility 
(ECF) program over the period December 2014 to March 2017. At the end of the program Grenada 
had attained tremendous results in terms of improvements in key economic, fiscal and social 
indicators and also in the institutional  arrangements and system that support public financial 
management.  
2.6.  Some of the key economic indicators over the period 2014 -16 included that economic growth 
accelerated at an average rate of 5.7% which was the highest average in CARICOM. Unemployment 
rate fell steadily from its peak of 32.2% in 2013 to 28.2% in 2016. Public finances improved 
remarkably. In 2015 Grenada recorded its first primary surplus in a decade, 2.2% of GDP primary 
surplus was recorded from a persistent deficits that averaged 1.9% of G DP during the period 
2004-14. Additionally, the overall fiscal deficit (after grants) narrowed to 1.2% of GDP, compared 
with the decade (2004 -14) average of 4.5% of GDP. Arrears were regularized, and at the end of the 
2016 claims over 60 days were zero.  
2.7.  Due to the upturn of economic activities, fiscal correction and debt restructuring, the ratio of 
public debt to GDP fell from its peak of 107.8% in 2013 to 83.6% in 2016.  
2.8.  As a result of the success of the program, Grenada is currently a model in the Caribb ean for 
best practices in fiscal consolidation, fiscal governance, structural consolidation, fiscal governance, 
structural reforms; and engagement of a wide cross section of stakeholders in policymaking.  
2.9.  In order for the reforms to be successful, more tha n 50 pieces of legislation were either 
amended or passed during the 3 year period (2014 -16).  
2.10.  Some of the new finance -related legislation passed include:  
• Public Finance Management Act, No 17, 2015  
• Public Debt management Act, No. 28, 2015  
• Fiscal Responsibility Act, No 29. 2015  
Tax Acts amended included:  
• Annual Stamp Tax (Amendment) Act 2015  
• Customs (Duties Exemptions) Order 2016 (Approved by Cabinet)  
• Customs (Service Charge) (Amendment) Act 2016  
• Excise Tax (Amendment) Act 2016  
• Income Tax (Amen dment) Act 2015  
• Income Tax (Amendment) Act 2016  WT/TPR/G/437 • OECS -WTO Members  
 
- 54 - 
 
  • Investment Act 2014  
• Investment (Amendment) Act 2016  
• Investment (Priority Sectors) Regulations 2016  
• Property Transfer Tax (Amendment) Act 2015  
• Property Transfer Tax (Amendment) Act 2016  
• Value -Added Tax (Amend ment) Act 2015  
• Value -Added Tax (Amendment) Act 2016  
3  MAJOR INITIATIVES  
3.1  National sustainable Development Plan 2020 -2035  
3.1.  The National Sustainable Development Plan (NSDP) is Grenada's overarching strategic 
high-level planning document that will anchor the country's development agenda over the period 
2020-35. It puts in place a systematic and comprehensive framework to guide Grenada's strategic 
priorities for balanced and inclusive development over the medium term and simultaneously lays a 
solid foundation f or Grenada's transformation over the long term. The specific National Goals, 
Objectives and Targets that are set, which are consistent with the United Nations' Sustainable 
Development Goals, are aimed at making Grenada, a resilient and prosperous nation, w ith a 
conscious and caring citizenry, promoting human dignity, and realising its full potential through 
sustainable economic, social, and environmental progress for all.  
3.2.  Through the strategic actions that will be taken to achieve Vision 2035, Grenadians w ill become 
empowered to see themselves as being capable of achieving greatness; families and communities 
will be strengthened; our level of consciousness, patriotism, spirituality, and care for each other will 
be elevated; our economy will become more comp etitive, productive, and dynamic with expanded 
opportunities for employment and entrepreneurship; our natural environment will be better 
protected; and our governance arrangements and institutions will be bolstered.  
3.3.  The strategic focus of the NSDP 2020 -2035 rests on the three sustainable development pillars; 
the society, the economy, and the environment. Accordingly, Vision 2035 is translated into the 
following three National Goals.  
(1) Goal #1: High Human and Social Development: Putting People at the Center o f Sustainable 
Development and Transformation.  
 
(2) Goal #2: Vibrant, Dynamic, Competitive Economy with Supporting Climate -and-Disaster -
Resilient Infrastructure.  
 
(3) Goal #3: Environmental Sustainability & Security.  
 
3.4.  The National Goals are mapped into eight National Outcomes, which are the improvements or 
positive changes in institutions, systems, communities, behaviours, living conditions, or knowledge 
that we aim for. Each National Outcome is linked to relevant Sustainable Development Goals (SDGs). 
The National Outcomes are:  
(1) Outcome #1 - A Healthy Populati on  
 
(2) Outcome #2 - Educated, Productive, Highly -Skilled, Trained, and Conscious Citizens  
 
(3) Outcome #3 - A Resilient, Inclusive, Gender -Sensitive, and Peaceful Society  
 
(4) Outcome #4 - Broad -based, Inclusive, and Sustainable Economic Growth and 
Transformation  
 
(5) Outcome #5 - Competitive Business Environment  
 
(6) Outcome #6 - Modern Climate -and-Disaster -Resilient Infrastructure  
 
(7) Outcome #7 - Climate Resilience and Hazard Risk Reduction  
 WT/TPR/G/437 • OECS -WTO Members  
 
- 55 - 
 
  (8) Outcome #8 - Energy Security and Efficiency . 
 
3.2  National Export Strategy (NES) -2017 -21 
3.5.  During the period under review the Government of Grenada updated it National Export 
Strategy. This strategy was built on the experiences of Grenada arising from the development and 
implementation of the first NES 2006 -2011.  
3.6.  The NES looked at  six priority sectors which include agriculture and fisheries; the creative 
industries; health and wellness; maritime and yachting; professional services; and tourism.  
3.7.  The previous NES focused mainly on goods while the new NES focused both on goods and 
services. The main reason for the inclusion of the services sector is because the economy of Grenada 
mainly depend on the services sector because of its major contribution  to the GDP.  
3.8.  The NES was able to identify some of the key challenges which affect all sectors to include 
access to finance; the cost of finance; technical skills; the quality of products and services; market 
presence in foreign countries; transport; and m arket intelligence.  
3.3  The Reform and Modernisation of Micro, Small and Medium Sized Enterprises (MSMEs) 
in Grenada  
3.9.  The Government of Grenada updated its MSME policy in order to create a competitive 
environment for MSMEs to develop. The last policy was devel oped in 2009 and the updated policy 
was implemented in 2019.  
3.10.  The aim of the policy is to "generate wealth and an improved quality of life for more families 
and to increase better -business skills, competencies and competitiveness in Grenada's workforce." 
Therefore, the policy will stimulate the sustainable growth and expansion of the micro, small and 
medium -scale enterprises and to create the ideal conditions for the entrepreneurial spirit and to 
create a culture to boost community development throughout Gr enada.  
3.11.  One of the key aspect of the policy is the development of an incentive regime to assist MSMEs 
for them to get concession to develop and expand their business. Traditionally, the incentive regime 
was more tailored towards the larger businesses espec ially the manufacturers and hotels.  
3.4  New Incentive Regime  
3.12.  The Government of Grenada during the period implemented a new incentive regime to 
improve the transparency of concessions for businesses. As a result a few legislations were amended 
for example, the  Excise Tax Act, VAT ACT and the Customs Service Charge.  
4  TRADE POLICY AND INSTITUTIONAL FRAMEWORK  
4.1.  Trade plays a significant role in the growth and development of the country. Since its 
independence, Grenada has adopted a significant number of policy instr uments on trade  
4.2.  and has also actively participated in the multilateral, regional and bilateral trade agreements.  
4.3.  The Ministry of Foreign Affairs, Trade and Export Development is responsible for the formulation 
of trade policy as it relates to foreign trade  as well as the negotiation of foreign trade agreements. 
The formulation and implementation of Grenada's overall trade policy falls within the purview of a 
number of other Government Ministries and Agencies namely, the Ministries of Finance and Planning, 
Agriculture and Fisheries, Tourism, Health, ICT, the Grenada Investment Development Corporation 
(GIDC), and the Attorney General's Department.  
4.4.  The private sector, particularly through its umbrella organizations, also plays a pivotal role in 
the formulation of trade policy. The Government sees its role as providing the enabling environment 
for the private sector to thrive.  WT/TPR/G/437 • OECS -WTO Members  
 
- 56 - 
 
  4.5.  The vision of Grenada's trade policy is to have trade play a more prominent role in the socio 
economic development of the country.  
4.6.  In thi s regard, the country's trade policy seeks to achieve the following objectives:  
1. Reduce trade cost, barriers to trade and enhance trade facilitation;  
2. Increase trade performance, have a more diversified export sector;  
3. Develop and enhance services trade, espe cially non tourism services.  
4. Build and strengthen multilateral, regional and bilateral trade relations.  
 
4.1  Inflation  
4.7.  The average consumer price index rose by 2.1% for all items for the first half of 2022 in 
comparison to the same period in 2021. Inflation i n 2022 is driven by effects of the pandemic as the 
price of products increase on account of shortages. In addition, the Ukraine -Russian war has a 
negative effect  on the global economy especially in the fuel/energy industry.  
4.2  Public debt  
4.8.  Total public debt a t the end of June  2022 stood at XCD 2,092.7 million or 66.2% of estimated 
GDP and included Central Government's external and domestic debt and the Government guaranteed 
debt of SOEs. This was a 5.3% point decrease relative to the corresponding period of 20 21 primarily 
attributed to growth in GDP.  
4.9.  However, Grenada's public debt has reduced since the last Trade Policy Review in 2014 because 
of the Structural adjustment program. Grenada's public debt reduced from 69.72% in 2017 to 
59.67% in 2019. However, in 2020 because of the pandemic it increased to 72.88%.  
Chart 1  Grenada – Public sector debt to GDP  
 
Source:  EECB website . 
4.3  Sectorial Performance  
4.3.1   Agriculture and Fishing  
4.10.  Agricultural production experienced a decline in the first quarter of 2022 compared to 2021 
with preliminary data showing a 19.8% lower than 2021. The Marketing and National Importing 
Board (MNIB) purchases of other crops such as fresh fruits, vegetables, and root crops declined by 
020406080
2017 2018 2019 2020 2021Debt to GDP ratio - Total public sectorGrenada -Public sector debt to GDP
(%)
Source:   ECCB website.WT/TPR/G/437 • OECS -WTO Members  
 
- 57 - 
 
  13.4%. This decline is due to low production cau sed by limited or low access to water (low to no 
rain). Cocoa production also declined at the end of the 1st quarter vs 2021 by 57%. Poor weather 
condition was the main contributor to this decline. Furthermore, the increased prices of fertilizers, 
oil and bags are factors that also affected the production of cocoa.  
4.11.  There was an increase in the production of nutmeg and mace at the end of Quarter 1 by 
32.9% and 22.2% respectively. Despite the growth, nutmeg and mace production is severely 
impacted by the lim ited access to roads.  
4.12.  In terms of export of agriculture product, the quantity and value of exports of fresh fruits and 
vegetables increased from 2014 from XCD 2.6 million to XCD 7.2 million in 2019. However, due to 
the pandemic in 2020, there was a drasti c decline in the export of fresh fruits and vegetables. The 
levels increased from 3.3 mil in 2020 to 5.8 mil in 2021 and this figure is expected to increase going 
forward.  
4.13.  The quantity of nutmeg and mace exports increased by 3.2 and 15.0 % respectively at the 
end of March  2022 compared to 2021. There is high demand for these commodities on the 
international market, however, limited supply severely affects the ability to meet demand in those 
markets and new markets.  
4.14.  In the area of spices, Grenada's export o f spices increased from 2014 to 2019 with a slight 
decreased in 2020. The production of spices is slowly increasing to pre -pandemic levels.  
4.15.  Fish and fish products are a major exporter for Grenada which contributes significantly to 
foreign exchange revenue  for the economy. The export of fish remained relatively stable with a slight 
reduction during 2020.  
Table 2 Production and Export of Fish , 2014 -22 
Year  2014  2015  2016  2017  
Est. 2018  
Est. 2019  
Est. 2020  
Est. 2021  
Est. 2022  
Est. 
Export as a 
% of 
production 
-Quantity  33.1 29.9 22.3 22.5 22.4 21.9 15.0 16.2 19.1 
Value  65.4 60.1 40.0 42.1 41.9 41.3 28.1 27.6 32.7 
Source:  Government of Grenada.  
4.3.2   Construction  
4.16.  Preliminary data indicate that the value of construction -related imports, the main indicators 
used to measure activity in the construction sector, grew by 65.5% in Quarter 1 of 2022 compared 
to the same period in 2021. There was also growth in the retail s ales of construction materials by 
8.7%.  
4.17.  The increase in construction activities are as a result of both private and public sector projects, 
such as the St. John's River, the construction of the Grenville market, the Western main road 
projects, the Maurice  Bishop International Airport rehabilitation project and byroads.  
4.3.3   Tourism  
4.18.  The tourism sector is steadily recovering from the effects of the COVID -19 pandemic. The 
recorded growth for the first half of the year is expected to continue for the rest of the year. The 
United States continues to be the largest source market for visitors' arrival followed by the 
United  Kingdom.  
4.19.  There is an increase in stayover visitors due to the relaxation of COVID -19 protocols globally 
and the resumption of international travel on a larger scale compared to the previous year. There is 
also a significant growth in the cruise sector because of th e recommencement of the cruise ship 
season in December  2021. Total cruise passenger arrival for the first half of 2022 were 100 % greater 
than the first half of 2021 as the season was closed during that time.  WT/TPR/G/437 • OECS -WTO Members  
 
- 58 - 
 
  4.20.  Despite the resumption in the tourism sector, t he performance of the sector has not reach 
pre-pandemic levels and challenges are still being experienced by various hotels, restaurants, and 
other tourism related businesses.  
4.3.4   Private Education  
4.21.  The St. George's University resumed face -to-face classes in August 2021. Since then, the 
University has recorded low enrolment figures. It is anticipated that low enrolment figures will be 
recorded for FY2022/23 compared to FY2020/21. To boost enrolment, more scholarships were 
offered to students. In addition, more  courses in the Arts & Science Department would be offered in 
the medium term to attract a new niche market. Because of the low enrolment figures for FY2022/23, 
private education is projected to decline during the period 2022/23. However, the University is  
optimistic that growth will be recorded in the medium term and that  it will record normal enrolment 
figures for FY2023/24.  
4.4  Preferential Market Access and Free Trade Agreements  
4.4.1   OECS Economic Union  
4.22.  The Revised Treaty of Basseterre Establishing the Organiza tion of Eastern Caribbean States 
Economic Union was signed by Grenada on 18 June 2010. The Treaty entered into force on 
21 January  2011.  
4.23.  The OECS Economic Union seeks to foster deeper integration among the six (6) independent 
states and Montserrat by estab lishing new institutional arrangements to facilitate a single financial 
and economic space, which allows for free movement of labour and free circulation of goods and 
trade in services; the harmonization of monetary policy; the coordination of fiscal polic y to achieve 
sound management of the economic space and the harmonization of trade policies.  
4.4.2   The CARICOM Single Market and Economy (CSME)  
4.24.  Grenada is party to the Treaty of Chaguaramas signed in 1973 which established the 
Caribbean Community (CARICOM). The  Revised Treaty of Chaguaramas (completed in 2000) has 
been enacted into the domestic legislation giving effect to the CARICOM Single Market and Economy 
(CSME). The CSME is an arrangement that is intended to enhance the competitiveness of the region 
by eff ecting the free movement of the factors of production and the right of establishment. The 
expected benefits include increased efficiency, higher levels of investment, employment and 
increased intra - and extra -regional trade.  
4.25.  CARICOM member States have esta blished the following regional institutions to support the 
implementation and operation of the CARICOM Single Market: the Caribbean Court of Justice (CCJ), 
the CARICOM Regional Organisation for Standards and Quality (CROSQ), the CARICOM Competition 
Commiss ion, the Caribbean Agricultural Health and Food Safety Agency (CAHFSA) and the CARICOM 
Development Fund (CDF).  
4.4.3   CARICOM Bilateral Arrangements  
4.26.  As part of CARICOM, Grenada is a party to several bilateral trade arrangements. These include 
agreements with Col ombia (1994), Venezuela (1992), Dominican Republic (1998), Cuba (2000) and 
Costa Rica (2004). In keeping with a decision of the 16th Meeting of the CARICOM Conference of 
Heads of Government, the OECS countries as CARICOM LDCs are not required to extend rec iprocal 
treatment on market access under the terms of these agreements in accordance with 
GATT  Article  XXIV.  
4.4.4   CARIFORUM -UK 
4.27.  Consequent to the exit of the UK from the EU, Grenada under the auspices of the Caribbean 
Forum (CARIFORUM) Group of countries negotia ted with the United Kingdom (UK) of Great Britain 
and Northern Ireland a new Economic Partnership Agreement (EPA). This EPA is essentially a rollover 
agreement from the CARIFORUM -European Union (EU) EPA. Grenada signed the WT/TPR/G/437 • OECS -WTO Members  
 
- 59 - 
 
  CARIFORUM -UK EPA in March 2019. T his EPA is being provisionally applied since 1  January  2021. 
This Agreement has  since been notified to the WTO Committee on Regional Trade Agreements.  
4.4.5   CBI 
4.28.  The United States grants duty -free access for a wide range of products under the Caribbean 
Basin Initiative (CBI). The Caribbean Trade and Partnership Act (CTPA) was extended to 2030 and 
Grenada will continue to enjoy preferential access to the US market u ntil then.  
4.4.6   CARIBCAN  
4.29.  Under the CARIBCAN arrangement, Canada extends to Grenada and other CARICOM countries 
non-reciprocal preferential access to the Canadian market for a wide range of products that satisfy 
specific rules of origin. The current arrangement  is due to expire in 2023.  
4.4.7   CARIFORUM -UK Agreement  
4.30.  The CARIFORUM -EU Economic Partnership Agreement (EPA) was signed by Grenada and other 
CARIFORUM Countries on 15  October  2008. The agreement is a permanent arrangement which 
provides exporters of nearly all CARIFORUM products with duty free and quota free access to the EU 
market for originating goods.  
4.4.8   Multilateral Trading System  
4.31.  Grenada became a WTO Member in February 1996.  
4.32.  Grenada remains firmly committed to a multilateral trading system based on clearly def ined 
WTO rules which safeguard the interests of developing countries, Small Vulnerable Economies and 
LDc's and ensure that world trade is conducted in an orderly manner.  
4.33.  Grenada ratified the Protocol of Amendment to insert the Trade Facilitation Agreement into 
Annex 1A of the WTO Agreement in 2015, and is taking steps to implement its commitments under 
the Agreement.  
4.34.  Grenada submitted its notification of Category A,B, and C in February of 2017.  
4.35.  Grenada has worked with various donor agencies to get technical assistance for its Category 
C commitments. Some of the reforms that took place during the period was the establi shment of 
the Customs Appeal Commission and the training of the commissioners.  
4.36.  The Customs Division also added the Ministry of Agriculture and the Grenada Bureau of 
Standards to ASYCUDA World in order to reduce the time and cost in the clearance of goods.  
4.37.  Grenada continues to engage different international donors for assistance with Category C 
commitments.  
4.38.  Grenada has been part of the group co -sponsoring the Joint Statement on Investment 
Facilitation for Development and MSMEs participation in internationa l trade.  
4.39.  The country is a member of several WTO trade negotiation groups (the ACP Group of States, 
SVE's, CARICOM, OECS etc .) 
4.40.  Grenada continues to attach great importance to S&DT for least developed countries (LDCs), 
Small Vulnerable Economies and developi ng WTO Members in accordance with their individual 
development needs, providing them the much needed flexibility to fully integrate into the multilateral 
trading system.  WT/TPR/G/437 • OECS -WTO Members  
 
- 60 - 
 
  5  CONCLUSION  
5.1.  Grenada firmly believes in the importance of the trade policy review proces s of WTO Member 
States, which helps foster transparency and understanding of their trade policies and practices. It is 
pleased to have carried out this fourth Trade Policy Review and would like to thank the 
WTO Secretariat for its invaluable support.  WT/TPR/G/437 • OECS -WTO Members  
 
- 61 - 
 
  SAINT KITTS AND NEVIS  
1  INTRODUCTION  
1.1.  Saint Kitts and Nevis has weathered many storms considering its size and vulnerability to 
external shocks, including natural disasters and climate change impacts. The COVID -19 Pandemic 
stretched S aint Kitts and Nevis ' faith, as an SVE, to remain on course and resilient against the 
challenges faced by similar economies in the OECS and around the world. Nonetheless, the 
Federation of S aint Kitts and Nevis remains poised to participate in the Multilat eral trading system 
via the World Trade Organisation and it is committed to advancing the goals and objectives of the 
WTO Marrakesh Agreement.  
1.2.  The Federation of S aint Kitts and Nevis is approximately 68 square miles with a population of 
59,772 (47,195 on Saint Kitts and 12,577 on Nevis)1. The decline in economic activity in 2020 due 
to the pandemic saw a decline in GDP of 3.9 % in 2021. However, the IMF estimated that a real GDP 
growth of 9.8% is expected in 2022.  
1.3.  Regarding the current accounts, current r evenue is estimated to have an increase of 36.3 % to 
XCD 1087.6  million (46.3 % of GDP), and an 85.3 % expansion of non -tax revenue also contributed 
to the latter. On the capital account, expenditure grew by 30 % to XCD 233.3  million (9.9%).2 
1.4.  Notwithstanding,  the opening of the economy and the removal of the COVID -19 restrictions, 
the economy of the Federation of S aint Kitts and Nevis is projected to partially recover in 2022. 
Activity in the tourism industry is most likely to regain significant momentum. Addi tionally, the 
agriculture sector is, also, most likely to significantly increase output due to national programmes 
aimed to improve food security and its active participation in the regional - -CARICOM initiative 
(25 by 25) to reduce food imports by 25 % by 2025. Indeed, the construction sector in both the 
public and private sectors is expected to accelerate; the positive spill -over effects on supporting 
services will aid in the economic recovery process.  
1.5.  The Government of S aint Kitts and Nevis is cognizant o f other variables that can have major 
impacts on its growth prospects: the Russia – Ukraine war and the negative effects on gas and 
energy costs, and the supply chain disruption. Additionally, the Citizenship by Investment 
programme slow recovery time, due  to the global shutdown, maybe a critical determining factor in 
its economic recovery process.  
1.6.  The Agreement on Fisheries, the discussions on Special and Differential Treatment, and the 
development of e -commerce as means to diversify, create new job oppor tunities, and position our 
economy to take advantage of global opportunities remain high on S aint Kitts and Nevis ' agenda. 
Additionally, the recent achievements of COP27 in relation to the SDGs should bear many fruits as 
the Federation of S aint Kitts and N evis continue to strive to secure a better future for its people and 
reap the benefits of the multilateral trading system.  
2  SECTOR DEVELOPMENT  
2.1  Agriculture  
2.1.  Agriculture, together with Livestock and Forestry, is projected to contribute 8.3 % of Saint Kitts 
and Nevis ' GDP (2021)3, with 23.1 % of land use dedicated to Agriculture noting that 42.3 % is forest 
area.4 In Saint Kitts and Nevis, the prime agricultural produce consists of peppers, roots, and tubers 
(white and sweet potatoes) other vegetables and livestock. On both islands, individual smallholders 
 
1 National Statistics Department - Ministry of Sustainable Development.  
2 Eastern Caribbean Central Bank Annual Economic and Financial Review December 2021.  
3 Eastern Caribbean Centr al Bank Annual Economic and Financial Review December 2021.  
4 The World Bank – IBRD IDA Data.  WT/TPR/G/437 • OECS -WTO Members  
 
- 62 - 
 
  grow vegetables for local consumption. The Ministry of Agriculture, Fisheries and Marine Resources 
oversee the agricultural industry in S aint Kitts and Nevis.  
2.2.  To address food security matters, the Ministry of Agriculture launched the National Agricultural 
Transformation and Growth Strategy 2022 -2030.5 The new strategy is comprehensive covering key 
areas including innovation, the infusion of new technology, and mitigating strategies to combat 
devast ing effects of climate change. There are also incentive packages, an increase in the availability 
of farmlands, and investment in agro -processing technology, coupled with increased linkages with 
the tourism sector. The revamping of the agriculture sector i s to address issues in the current 
landscape, create more jobs, raise the standard of living, and improve the S aint Kitts and Nevis' 
food security. Indeed, the road map to the development of the agricultural sector is intended to 
reduce the country's food importation bill through local production.   
2.3.  Investors in this sector of the economy are free to take advantage of regional trade agreements 
derived from S aint Kitts' membership in CARICOM and the OECS to gain access to wider markets. 
Saint Kitts' geographi cal location in the Eastern Caribbean and modern air and seaport facilities 
provides a strategic advantage with existing shipping corridors to Jamaica in the North and Trinidad 
and Tobago and Guyana in the south.6 
2.2  Services  
2.4.  Since the closure of the Sugar I ndustry in S aint Kitts and Nevis, and the shift to becoming a 
service -orientated economy, the contribution to GPD has skyrocketed. Services now account for 
67.46 % of the GDP7 in 2021. With a decline of 0.2 percentage points, there is no significant change  
since 2020. Over the observed period, the share has been subject to fluctuation. Services cover 
financial services, educational services, and professional services among others.  
2.3  Tourism (and travel ) 
2.5.  Tourism and support services are the major income earner s for S aint Kitts and Nevis. Tourism 
accounts for 10.2 % of GPD in 2021. This is a major decline compared to 2019 when it accounted for 
43.6% of GDP and in 2020 Tourism accounted for 20.1% of GDP.8 The drastic decline in 2020 and 
2021 was due to the COVID -19 Pandemic.  
2.6.  The tourism expenditure estimate has been over 500 million dollars in both 2018 and 2019 .9 
The pandemic caused a global standstill resulting in a significant fall in economic activities. Tourism 
and travel -dependent states around the world s uffered, and S aint Kitts and Nevis is no different in 
this regard; its vulnerable economy in which tourism is intertwined with many sectors has been 
significantly impacted by the reduced travel.  
2.7.  Between 2018 and 2019, there was a slight decline in visitor arrivals by air of 3%, from 128,579 
to 124,241. But visitor numbers fall sharply by 75% to 30,865 in 2020. Regular passenger flights 
would have been cancelled because of the COVID -19 pandemic beginning at the end of March, and 
only somewhat recovering with  a partial reopening of the borders in October.10 
2.8.  With initiatives designed to motivate, educate, and introduce young people to exciting career 
options in the tourist industry, the Ministry of Tourism and the S aint Kitts Tourism Authority continue 
to inves t in the future of the business. In S aint Kitts and Nevis, the focus has been further shifted 
to sustainable tourism. In this regard, in its efforts to secure the viability and sustainability of the 
island's tourism economy, the ministry of tourism has put  best practices into place. The Ministry has 
already begun the process of training and inviting experts on the environment to safeguard our 
 
5 The Department of Agriculture – St. Kitts and Nevis Information Services (SKNIS).  
6 St. Kitts Investment Promotion Agency (SKIPA).  
7 Statista.  
8 Statista.  
9 National Statistics Department - Ministry of Sustainable Development.  
10 National Statistics Depart ment - Ministry of Sustainable Development.  WT/TPR/G/437 • OECS -WTO Members  
 
- 63 - 
 
  island and tourism product. S aint Kitts and Nevis has made every effort to ensure that the SDGs are 
at the forefront  of its policies and strategies.  
2.4  Financial services  
2.9.  According to the National Statistics Department, Financial Services contributed 
XCD 197.16  million  to GDP in 2020, which was just a small increase from XCD 198.50  million  in 
2019. The Financial Services R egulatory Commission Services (FSRC) regulates non -bank financial 
institutions and serves as the business registry, whilst the banking sector is regulated by the ECCB. 
From the Government 's end, the Ministry of Finance (including the Inland Revenue Departm ent), 
the Financial Intelligence Unit, and the White -Collar Crime Unit (National Security) all work in unison 
to ensure that international standards and regulations are implemented, and prudent measures are 
taken that will secure international investor con fidence as well as nationals.  
2.5  Telecommunications   
2.10.  The mobile penetration rate of St. Kitts and Nevis stood at 80.7 % in January 2021, S aint Kitts 
and Nevis has a sizable telecommunications industry. Internet users in S aint Kitts and Nevis 
increased by 287 (+0.7) between 2020 and 2021. Additionally, there were 43.1 thousand internet 
users in Saint  Kitts & Nevis in January 2021. There were 76.8 thousand mobile connections in 
Saint Kitts & Nevis in January 2021, whilst the number of mobile con nections in Saint  Kitts & Nevis 
decreased by 472 ( -0.6%) between January 2020 and January 2021; the C OVID -19 pandemic is 
one of the contributing factors. However, it must be noted that many people have more than one 
mobile connection, so figures for mobile  connections may exceed 100% of the total population. The 
number of mobile connections in Saint Kitts & Nevis in January 2021 was equivalent to 144.0% of 
the total population.11 
2.11.  The internet and fixed -line telephone services are provided by the government -owned 
Saint Kitts-Nevis Cable Communications Company. Digicel and Flow (formerly LIME) are the two 
primary private telecommunications companies. Leading Caribbean business Flow operates a store 
in Basseterre that offers complete landline, internet, mobile telephone, and television streaming 
services.  
2.12.  The National ICT Centre is under the umbrella of the Ministry of Justice and Legal Affairs, 
which oversees the Government interest within the telecommunications sector. As a member of 
ECTEL (Eastern Caribbean Telecommunications Authority), the government ensure the market is 
liberalized in a manner that will foster growth in this area at a cost most affordable and beneficial to 
its citizens and ECTEL Members.  
2.6  Manufacturing   
2.13.  In Saint Kitts and Nevis, the manufa cturing sector's contribution to the country's GDP fell by 
0.4 percentage points from the year before. The share of GDP was 4.58 % in 2020 and 4.18 % in 
2021. The lowest share within the observed period is hence 2021. S aint Kitts and Nevis' 
manufacturing sec tor contributed 5.21 % to GDP in 2019. The trend continues to show a fall from 
previous years.12 
2.14.  Saint Kitts & Nevis has exported millions of USD in manufactured goods to the United States, 
making S aint Kitts & Nevis the largest exporter of goods to the Uni ted States amongst the OECS 
and Barbados. S aint Kitts and Nevis is estimated to have the largest electronics assembly industry 
in the Eastern Caribbean, with most exports from the country being made up of electrical production. 
The above is the enclave sec tor which is supported under the CBI (Caribbean Basin Initiative) 
programme.  
 
11 DataReportal Digital 2021 St. Kitts and Nevis at 12 Feb 2021.  
12 Statista.  WT/TPR/G/437 • OECS -WTO Members  
 
- 64 - 
 
  2.15.  Noting the importance of the Manufacturing Sector to S aint Kitts and Nevis, the National 
Manufacturing Strategy 2013 is currently being revamped to cover a wider range of the 
manufacturing sector in S aint Kitts and Nevis and to ensure it captures today's and future trends in 
this sector. This sector employed 1650 persons (901 females and 748 males).13 
3  TRADE RELATIONS  
3.1.  Saint Kitts and Nevis, as a member of the CARICOM grouping, n egotiate trade arrangements 
under this umbrella as directed by the Revised Treaty of Chaguaramas Establishing the CARICOM 
Single Market and Economy. S aint Kitts and Nevis is also a member of the Sub -grouping, the 
OECS  - EU Economic Union (Organisation of t he Eastern Caribbean States) which is governed by the 
Revised Treaty Basseterre. S aint Kitts and Nevis received approval from the COTED (Council of Trade 
and Economic Development) to accede to the Brazil – Guyana Partial Scope Agreement (PSA).  
3.2.  St. Kitts a nd Nevis has been a member of the WTO (World Trade Organisation) since 1996. 
Since then, has been assigned to a few bilateral trading agreements: CARICOM – Costa Rica, 
CARICOM – Venezuela, CARICOM – Cuba, CARICOM – Dominican Republic, and CARICOM – 
Colombi a. Saint Kitts and Nevis is also a signatory to the CBI -the CBERA (Caribbean Basin Economic 
Recovery Act).  
3.3.  Saint Kitts and Nevis, via CariForum (CARICOM and the Dominican Republic), is a signatory to 
the CariForum – EU EPA (Economic Partnership Agreement) and the CariForum – UK EPA. S aint Kitts 
and Nevis is actively monitoring the development of the Post – Cotonou Agreement negotiations.  
4  TRADE POLICY AND IMPLEMENTATION  
4.1.  Saint Kitts and Nevis' foreign commercial ties are managed by the Ministry of Internatio nal 
Trade, Industry, Commerce and Consumer Affairs, which is also in charge of developing, 
implementing, and administering all trade policies and implementation. All WTO, international, and 
regional trade concerns are within the purview of the Ministry, wh ich is also in charge of issues about 
anti-dumping, subsidies, technical trade barriers, and competition policy.  
4.2.  The International Trade Department, the S aint Kitts and Nevis Bureau of Standards, and the 
Consumer Affairs Department are the three agencies that make up the Ministry; they all work in 
unison to ensure the Government's trade objectives are achieved as prescribed the agreements. All 
trade policy -related concerns must be coordinated, managed, developed, and implemented by the 
International Trade Policy Department. This includes trade agreement promotions, education, and 
awareness, and assisting with capacity building in government agencies and ministers whose actions 
have an impact on the nation's trade -policy agenda.  
4.3.  The responsibility of the Co nsumer Affairs Department is to guarantee unfettered access to 
accurate information in the marketplace and fair competition. This Department acts proactively to 
protect consumer rights and aid in preventing consumer fraud when buying goods and services. Th e 
consumer Affairs Department has updated the Consumer Protection Bill and is waiting for passage 
by parliament.  
4.4.  The Bureau of Standards, on the other hand, functions similarly to the Consumer Affairs 
Department but at a wider and deeper angle. The Bureau  of Standards protects consumer health 
and safety. The Bureau also serves as the National Contact Authority for the Inter -American 
Metrology System, the National Contact Authority for the CARICOM Regional Organization for 
Standards and Quality (CROSQ), the  National Contact Authority for the WTO TBT Agreement, and 
the National Codex Contact Point (SIM). The Bureau serves as the point of notification and 
distribution for the Codex Alimentarius Commission's voluntary and mandatory standards and 
regulations.  
 
13 National Statistics Department - Ministry of Sustainable Development (2016 data).  WT/TPR/G/437 • OECS -WTO Members  
 
- 65 - 
 
  4.5.  The c recently upgraded its entire facility and is heading to become an accredited laboratory. 
The National Standards Act has been amended and updated. There are currently five divisions in 
this Department: Air Quality ( Monitors indoor air quality such as i dentifying mould, carbon monoxide 
and particulate matter); Chemistry (Performs chemical analyses on water, food, soil, and plants); 
Microbiology (Offers microbial analyses on food (cooked and raw)  and water (drinking, bottled, 
marine, pond, well, waste); M etrology (Provides legal metrology services in the areas of mass and 
volume measurements), and Standards and mentioned earlier. Currently, the Bureau of Standards 
is in the process of regulating three areas: Labelling of Pre -packaged Foods, Labelling of Go ods- 
General Requirements, and Packaged Water.  
4.6.  One of the requirements of the CSME (CARICOM Single Market and Economy) is the 
establishment of the IMCC (Inter -Ministerial Consultative Committee), which ensures that all trade 
matters, inter alia, will use t his forum to ensure the consultative process meets its objectives and 
that all possible relevant stakeholders are part of the consultation process. This process is utilized 
to formulate national policies.  
5  FISCAL POLICY  
5.1.  The economy has suffered a great dea l as a result. The pandemic's effects on domestic activity 
were exacerbated by the entire cessation of cruise ship arrivals and the extremely low number of 
stayover visitors since the first quarter of 2020. The pandemic caused an estimated 14% yearly fall 
in GDP and the first budget deficit for the entire government since 2010 (4.7% of GDP), which was 
covered by drawing down sizable deposit reserves.14 
5.2.  The government's fiscal programme restored S aint Kitts and Nevis into a surplus position in 
the first half of 2021. Following a total deficit of XCD 28.3 million in the comparable period of 2020, 
when stringent lockdown measures were first put in place, an overall surplus of XCD 89.4 million 
was recorded . The turnaround in the fiscal balance was mostly impacted by changes to the current 
account. The current revenue was estimated to climb by 26.4% to XCD 480.4  million, with non -tax 
revenue growing by 77.5%. (Citizenship by Investment receipts being the mos t significant 
component). The increase in current revenue was offset by a 9.0% decline in tax revenue, however, 
as the economy continued to grow slowly.15 
6  MONETARY POLICY  
6.1.  The Eastern Caribbean Central Bank, as with all OECS Member States, is responsible fo r the 
monetary policies of S aint Kitts and Nevis. All OECS Member States use the Eastern Caribbean Dollar 
(XCD) which is pegged to the USD at XCD  2.7169.  
7  CONCLUSION  
7.1.  With the COVID -19 Pandemic, the supply chain disruption effect, the Ukraine – Russia War,  
the rise in gas prices, and climate change, S aint Kitts and Nevis continue a pass of economic 
recovery, but with many uncertain attached to any positive forecast. These challenges force 
timelines with very limited resources to safeguard its very vulnerabl e economy. S aint Kitts and Nevis 
remain steadfast to adhere to the rules of the multinational trading system and is committed to 
seeing the outcome of this system materialize. In this regard, S aint Kitts and Nevis, via its OECS 
Geneva Mission and other org ans, will continue to participate in international discussions and will 
provide its support to advance a fair trading system where all Members can have the best possible 
outcome.  
 
 
 
14 IMF St. Kitts and Nevis Article IV Consultation Pr ess Release.  
15 Eastern Caribbean Central Bank Economic and Financial Review June 2021.  WT/TPR/G/437 • OECS -WTO Members  
 
- 66 - 
 
  SAINT LUCIA  
1  INTRODUCTION  
1.1.  Saint Lucia, like many other OECS Member States was adversely impacted by the effects of 
the COVID -19 pandemic and has since taken a forward -looking, development approach to help 
accelerate its growth and development as part of its post COVID -19 economic r ecovery process.  
1.2.  The Government of Saint Lucia has been proactive and speared no time in developing solutions 
to help revitalize the economy and to get the country on a sustainable path to recovery. In this 
connection, the Government has crafted a Medium Term Development Strategy for the period 2021 
to 2026 to assist it navigating an increasingly unpredictable and highly integrated global economic 
environment.  
1.3.  This Strategy among other Sectoral Development initiatives, such as the National Export 
Strategy , is intended to improve the country's trade performance and anemic growth and help realize 
the level of economic growth needed to restore a better Saint Lucia. Importantly, the government 
has set a vision that seeks to create a better Saint Lucia today, t omorrow and for future generations 
as set -out in the Medium Term Development Strategy - "to build a resilient and inclusive Nation, for 
a more sustainable and productive future for our people."  
1.4.  Since the last Trade Policy Review, Saint Lucia has also pursu ed sectoral development 
initiatives to diversify its economy to avoid being reliant on one economic sector. As a result, the 
Services Sector has been benefiting from support programmes and incentives towards improving 
the country's future economic prospect s.  
1.5.  Efforts to restore the Agriculture as a vital economic sector is ongoing with some diversification 
taking place, although factors such as natural disasters and pests and diseases continues to stymied 
the growth and export potential of the sector.  
1.6.  Coupled with the various development strategies being implemented, Saint Lucia hopes to take 
better advantage of the various trade agreements that it is a contracting party to including the most 
recently signed CARIFORUM -UK EPA.  
2  MACROECONOMIC DEVELOPMENTS AND TRADE PERFORMANCE  
2.1  Economic Performance  
2.1.  Although the largest economy in the Eastern Caribbean Currency Union (ECCU), Saint Lucia is 
a small, open economy, heavily dependent on the tourism sector for foreign direct investments, 
revenue generation, employment  creation and foreign exchange earnings. Saint Lucia's economic 
growth has been volatile and relatively low, recording an annual average growth rate of 
approximately 1.8 % over the 5 -year period 2015 to 2019. This is below the average real GDP growth 
rate o f 3.4% in the rest of the ECCU for the same period.  
2.2.  In 2020, due to the health, financial and economic shocks which stemmed from the impact of 
the COVID -19 pandemic, the global economy contracted by 3.0 %. Reflecting these unprecedented 
and adverse develop ments, Saint Lucia's tourism sector was hard hit and led to a steep contraction 
of 24.4 % in overall real economic activity.  
2.3.  Despite the continued negative effects of the pandemic and associated public health 
restrictions, a slow recovery in the domestic e conomy began in 2021, spurred by a partial rebound 
in tourism activity. Saint Lucia's real GDP expanded by 12.2 %, albeit remaining below pre -pandemic 
levels.  WT/TPR/G/437 • OECS -WTO Members  
 
- 67 - 
 
  Figure 1: Real GDP at Market Prices in the ECCU  
 
Source:  Eastern Caribbean Central Bank (ECCB).  
2.4.  As the main driver of economic activity in Saint Lucia, the tourism (accommodation and food 
services) sector which contracted sharply by 67.5 % in 2020, registered growth of 74.4 % in 2021 
with positive spillover effects on other sectors. Prior to th e COVID -19 pandemic, during the period 
2015 to 2019, stay -over arrivals grew at an annual average rate of 5. %4. In the review period, while 
activity in the construction sector oscillated, it grew on average by 3.0 % yearly and accounted for 
4.3% of GDP. The  sector's performance was largely influenced by public sector infrastructural 
projects and hotel developments.  
Figure 2: Saint Lucia's Economic Growth Rates by Main Sectors  
 
Source:  Saint Lucia's Central Statistical Office . 
2.5.  Meanwhile, the performance of the agriculture sector was mixed with declining output in the 
banana industry and expansion in other sub -sectors such as livestock., Banana exports to the 
United  Kingdom continued to trend downward, falling from 8,450 tonnes in 2015 to 1,662 tonnes in 
2021. Over the years, banana production has been affected by unfavorable developments in the 
United  Kingdom (UK) market, coupled with the impact of natural disasters, and pests and diseases, 
high input costs as well as shipping and marketing challenges.  
-30-25-20-15-10-50510152015 2016 2017 2018 2019 2020 2021Percentage
ECCU ANTIGUA AND BARBUDA
THE COMMONWEALTH OF DOMINICA GRENADA
ST. KITTS AND NEVIS SAINT LUCIA
ST. VINCENT AND THE GRENADINES
-30%-25%-20%-15%-10%-5%0%5%10%15%
-70%-50%-30%-10%10%30%50%70%
2015 2016 2017 2018 2019 2020 2021
Agriculture, Forestry and Fishing Manufacturing
Construction Accommodation and Food Services
Real GDP (rhs)WT/TPR/G/437 • OECS -WTO Members  
 
- 68 - 
 
  2.6.  Saint Lucia's overall unemployment remained high, hovering around 20.0 % on average with 
youth unemployment above 35.0 % during the period 2015 to 2021. This has been partly due to 
labour market issues such as skills mismatch. Over the review period, deflation wa s recorded in 
2015, 2016 and 2020, while world oil prices increased inflation to 2.6 % in 2018 and 2.4 % in 2021, 
which was also driven by supply chain bottlenecks linked to the COVID -19 pandemic.  
2.7.  The dual health and economic shock of the COVID -19 pandemic  highlighted the country's 
growing vulnerability to external shocks including natural disasters and oil price escalations. The 
country also suffered significant setbacks from damages to its physical infrastructure and agriculture 
sector, particularly the b anana industry, as a result of Tropical Storms Matthew and Kirk in 2016 
and 2018 respectively, followed by Hurricane Elsa in 2021 coupled with rising incidences of 
island -wide flooding.  
2.2  Fiscal and Debt Performance  
2.8.  The central government's fiscal position r emained characterized by high deficits in some years 
and rising public debt levels. During the fiscal years 2015/16 to 2019/20, the overall deficit averaged 
2.1% of GDP, ranging from 1.0 % in 2018/19 to 3.7 % in 2019/20. Consistent with the modest growth 
realized up to 2019, total revenue and grants grew by 14.1 % or an annual average rate of 4.1 % 
from XCD 1,038.8 million (21.1 % of GDP) in 2015/16 to XCD 1,185.0 million (22.5 % of GDP) in 
2019/2020. As most current expenses increased steadily, total expenditure  rose by 19.0 % from 
XCD 1,158.5 million (23.6 % of GDP) in 2015/16 to XCD 1,378.0 million (26.2 % of GDP). Spending 
on goods and services rose by 48.2 %, while current transfers and the wage bill expanded by 86.4 % 
and 18.4 % respectively.  
2.9.  Moreover, following the sharp economic downturn in 2020/21 and the implementation of 
COVID -19 relief measures, total revenue and grants declined by 22.5 % to XCD 918.1 million. 
Meanwhile, total expenditure rose by 2.9 % to XCD 1,418.5 due to increased COVID -19 related 
health spending and measures to assist affected citizens and ailing businesses. Consequently, the 
overall fiscal deficit rose sharply from 3.7 % of GDP ( XCD 193.0 million) in 2019/20 to 11.9 % of GDP 
(XCD 500.4 million) in 2020/21.  
2.10.  In the ensuing year Saint Lucia recorded a partial recovery in economic activity with a notable 
20.7% improvement in the central government's revenue intake to XCD 1,108.1  million (23.0 % of 
GDP). However, total expenditure contracted marginally in 2021/22 as COVID -19 rel ated health 
spending decreased. The combined effects of these developments was a reduction in the overall 
fiscal deficit to 6.4 % of GDP ( XCD 306.4 million).  
2.11.  Consequently, public debt levels rose by 25.6 % between the period 2015/16 to 2020/21 to 
XCD 3, 794. 9 million. The public debt to GDP ratio moved from 61.4 % in 2015/16 to 65.8 % in 
2019/20. Notably, as a result of the economic downturn in 2020/21 and the government's 
interventions to mitigate the associated fall -out with higher (health and other) expendit ure, the 
public debt to GDP ratio rose significantly to 90.2 % of GDP in 2020/21. It decreased to 87.5 % of 
GDP in 2021/22 as the economic recovery started.  WT/TPR/G/437 • OECS -WTO Members  
 
- 69 - 
 
  Figure 3: Fiscal Indicators  
 
Figure 4: Total Public Debt  
 
 
2.3  Balance of Payments  
2.12.  The external curren t account balance averaged a deficit of 0.4 % of GDP for the period 
2015-19, ranging from a deficit of 6.5 % in 2016 to a surplus of 5.7 % in 2019. Following a widening 
of the deficit in 2016, the external current account balance registered steady improvements to a 
surplus of 5.7 % in 2019 mostly as (tourist) travel inflows continued to rise. In 2019, this surplus 
was also due to the reductio n in goods imports which was partly on account of lower fuel outlay. 
During the period 2015 -18, the capital account remained in a small surplus, averaging 0.7 % of GDP, 
before more than doubling in 2019. The combined balance on the current and capital accou nts largely 
reflected movements on the current account during that period. The balance on the financial account 
moved from 3.6 % of GDP in 2015 to 0.9 % of GDP in 2019.  
2.13.  Thereafter, the current account worsened, turning into a large deficit of 15.7 % of GDP i n 
2020. This was largely driven by a severe downturn in travel receipts which more than offset the 
contraction in spending on imports. In 2020, the balance on the financial account was -9.2% of GDP. 
As tourism inflows began to rebound strongly in 2021, the  current account deficit was significantly 
-14%-12%-10%-8%-6%-4%-2%0%
-1,000-50005001,0001,5002,000
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
Overall Balance Total Revenue & Grants
Total Expenditure Overall Balance (% of GDP, rhs)
40%50%60%70%80%90%100%
05001,0001,5002,0002,5003,0003,5004,0004,500
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
Debt to GDPXCD Million
Total Public Debt Total Public Debt (% of GDP,rhs)WT/TPR/G/437 • OECS -WTO Members  
 
- 70 - 
 
  reduced to 0.1 % of GDP. This deficit was more than fully covered by the surplus on the capital 
account. The balance on the financial account was 0.3 % of GDP in 2021.  
Figure 5: External Balances  
(XCD million)   
 
Source : ECCB . 
Figure 6: External Balances  
(% of GDP)  
 
 
-800-600-400-2000200400600
Current & Capital Acc
Financial Acc
Current & Capital Acc
Financial Acc
Current & Capital Acc
Financial Acc
Current & Capital Acc
Financial Acc
Current & Capital Acc Bal
Financial Account Bal
Current & Capital Acc
Financial Acc
Current & Capital Acc
Financial Acc
2015 2016 2017 2018 2019 2020 2021Current Account Capital Account Direct Investment Portfolio Investment Other Investment
-20%-15%-10%-5%0%5%10%
2015 2016 2017 2018 2019 2020 2021
Current Account (% of GDP) Capital Account (% of GDP)
Financial Account (% of GDP)WT/TPR/G/437 • OECS -WTO Members  
 
- 71 - 
 
  3  SAINT LUCIA'S TRADE RELATIONS  
3.1  The Organization of Eastern Caribbean States (OECS)  
3.1.  In 1981 Saint Lucia, in addition to six (6) other Eastern Caribbean islands signed the Treaty of 
Basseterre to becom e members of the Organisation of the Eastern Caribbean States, with an addition 
of two (2) countries as associate members being Anguilla and the British Virgin Island States. The 
OECS was created with the goal of promoting cooperation and economic integrat ion in the Eastern 
Caribbean. The OECS Member States decided to further deepen and strengthen integration among 
themselves by becoming signatories to a revised legal framework called The Revised Treaty of 
Basseterre Established the Organisation of the East ern Caribbean States Economic Union. The 
Revised Treaty marked a major advancement from the original Treaty in that it includes, inter alia, 
a Protocol for the establishment of an Economic Union . 
3.2.  The OECS Economic Union has been ratified by all OECS -WTO members and entered into force 
on 21 January  2011. The Economic Union is dedicated to accomplish a single financial and economic 
space within which there is movement of goods, services, people and capital, economic 
harmonization and a common approach to health, trade, education and environment. The Revised 
Treaty has outlined eight areas of legislative competence for the Organisation including a common 
market and customs union, and a common trad e policy.  
3.3.  The Revised Treaty also established the following organs of the OECS Economic Union whereby 
the organization can accomplish its functions:  
• the Authority of Heads of Government of the Member States;  
• the Council of Ministers;  
• the OECS Assembly;  
• the Economic Affairs Council; and  
• the OECS Commission . 
3.4.  The OECS Commission has the principal responsibility for the general administration of the 
Organization. It provides, inter alia, support services to member states through the conduct of 
research and t he execution of projects and is therefore responsible for the consolidation of the Trade 
Policy Review Common Report of the OECS -WTO Members. The OECS Technical Mission in Geneva, 
falls under the aegis of the OECS Commission and serves as the main represen tative of members to 
the World Trade Organization (WTO).  
3.5.  The implementation of the OECS Economic Union regime has been incremental but slow as it 
necessitates a robust legislative review, change of traditional modes of operating, and greater 
collaboration among Member Governments as well as national stakeholders. In this regard, Saint 
Lucia is actively involved in several national and OECS -wide undertakings geared at operationalizing 
the OECS Customs Union and Free Circulation of Goods Regimes as well as th e implementation of 
the Free Trade in Services Regime. Legislative reform pursuant to this goal include drafting and 
updating of legislation relating to animal health, food safety, customs, standards, and a number of 
services related areas.  
3.2  CARICOM Single Market and Economy (CSME)  
3.6.  Saint Lucia, is a signatory to the CARICOM Single Market and Economy - an integrated 
development strategy envisioned by the member governments of the Caribbean Community 
(CARICOM) aimed at deepen the integration movement to better  respond to the challenges and 
opportunities  brought about by globalization. Saint Lucia is committed to deepening and 
strengthening its intra -regional trade with its neighboring CARICOM Countries through the full 
implementation of the provisions of the Re vised Treaty of Chaguaramas Establishing the Caribbean 
Community including the CARICOM Single Market and Economy.  WT/TPR/G/437 • OECS -WTO Members  
 
- 72 - 
 
  3.7.  The CSME is an ambitious undertaking which is built on five core Regimes, namely: (i) Free 
Movement of Capital; (ii) Free Movement of Goods; (iii) Free Movement of Skills; (iv) The Provision 
of Services; and (v) The Right of Establishment.  
3.8.  Consequently, its implementation requires a whole of Government approach in order to be 
realized and to be impactful. The International Trade Division of th e Ministry of External Affairs and 
the Regional Integration Unit of the Office of the Prime Minister play a leading role in the coordination 
and advancement of CSME implementation.  
3.9.  National efforts to progressively advance towards full implementation of t he various regimes 
continues to move at a much slower pace than was contemplated, primarily because of resource 
constraints in enacting the necessary legislation and putting in place the administrative measures 
for implementation. Consequently, and in an e ffort to help drive implementation of the respective 
regimes of the CSME, in 2019 Saint Lucia established two consultative mechanisms to serve as 
steering committees to conduct reviews and to guide the implementation of various administrative 
and legislati ve procedures as well as the various Conference decisions. These two mechanisms, 
namely, the Inter -Ministerial Consultative Committee (IMCC) comprising key governmental 
agencies, and the Business and Labour Advisory Committee (BLAC) which comprises represe ntatives 
of business and labour organizations are to serve as champions in driving and monitoring 
implementation of the CSME.  
3.10.  Despite the challenges confronting the CSME implementation, Saint Lucia believes in the 
arrangement and continues to make incremen tal progress towards its full implementation of the 
CSME. One area of active engagement is the review of the Common External Tariff (CET) and Rules 
of Origin Regimes as reforms to establish a truly common CET are required and because both these 
regimes are  to be updated in order to keep pace with new developments in global trade. Work is 
continuing to expand the categories of skilled nationals that are able to move freely within the CSME 
space to include security officers, domestic workers, and agricultural  workers.  
3.3  CARICOM Bilateral Agreements  
3.11.  Saint Lucia, as a member of the Caribbean Community (CARICOM) conducts its external trade 
negotiations through the CARICOM in accordance with the Revised Treaty of Chaguarams.  
3.12.  Saint Lucia has signed five (5) bi -lateral trade agreements under the prescript of CARICOM. 
These include partial scope agreements with Venezuela in 1992, Colombia in 1994, and Cuba in 
2000 as well as free trade agreements (FTAs) with the Dominica Republic (1998) and Costa  Rica 
(2004). The parti al scope agreements (PSAs) are largely based on trade in goods, however, the 
levels of reciprocal preferential treatment accorded to the respective CARICOM members differs 
under each PSA. The PSAs also contain built -in agendas on services and investment, a nd they also 
encourage cooperation in a number of other areas including trade promotion, trade finance, private 
sector participation and transport services. The FTAs include provisions on trade in goods, trade in 
services and investment. Both FTAs provides  for reciprocal preferential treatment by CARICOM MDCs 
and non -reciprocal trade with CARICOM LDCs.  
3.13.  The CARICOM - Costa Rica  Free Trade Agreement  provides for tariff liberalization with 
Saint Lucia on a non -reciprocal basis, given that Saint Lucia is an LDC of CARICOM, however, it 
contemplates future reciprocity on the part of CARICOM LDCs. Nonetheless, Saint Lucia is subject 
to an MFN obligation which requires it to grant immediate access to Costa Rica any preferential 
treatment that is granted to originatin g goods from any non -CARICOM country. The FTA also 
contains both general and product specific rules of origin. This FTA also calls for the elimination of 
non-tariff barriers and therefore includes provisions on import and export restrictions, customs user 
fees as well as on agriculture subsidies. It contains limited disciplines on services as well as 
investment protection rules but envisions further discipline in both thematic areas. Further 
negotiations took place in 2015, but no substantial progress was m ade with the negotiating process.  
3.14.  The CARICOM Dominican Republic Free Trade Agreement  addresses major thematic 
areas such as Trade in Goods, Trade in Services, Economic Cooperation and Government 
Procurement. It contains comprehensive provisions on techni cal barriers to trade, sanitary and 
phytosanitary measures and customs cooperation, investment protection rules, a built -in agenda for 
the negotiations of services liberalization commitments and contemplates cooperation in the areas WT/TPR/G/437 • OECS -WTO Members  
 
- 73 - 
 
  of trade promotion, tra de financing and private sector activities. Similar to the other FTA, reciprocal 
preferential treatment is required from CARICOM MDCs with non -reciprocity for the LDCs, however, 
there was a contemplation of future reciprocity for LDCs from 2005 upon comple tion of a review. 
This review has not yet been conducted.  
3.15.  The CARICOM -Cuba  Trade and Economic Cooperation  focuses on trade in goods but also 
commits the Parties to further negotiations in areas such as services, reciprocal promotion and 
protection of inve stment and government procurement. Under this Agreement, Cuba and the MDCs 
agreed to the elimination of tariffs on a selected list of products whereas it was agreed that the LDCs 
would not be required to grant tariff concessions to goods imported from Cuba . Subsequent 
negotiations between the two Parties – CARICOM and Cuba - led to the signing of a second protocol, 
which saw a further liberalization of goods between the two parties in 2017 and improvements to 
the language of Rules of Origin . However, it is noteworthy that the one -way duty -free trade 
arrangement in favour of the LCDs was maintained.  
3.16.  The CARICOM -Colombia Trade, Economic and Technical Cooperation Agreement  
focuses on trade in goods but also provides a framework for future collaboration among t he 
contracting parties in the areas of services and investment. It was initially agreed as a non -reciprocal 
arrangement in favour of CARICOM but made provision for the introduction of reciprocity by the 
CARICOM MDCs after four years of the Agreement coming  into force. In 1998, four CARICOM MDCs 
– Barbados, Guyana, Jamaica, and Trinidad and Tobago – offered reciprocity to Colombia on a select 
list of products. CARICOM and Colombia are currently engaged in negotiations on the expansion of 
preferential market access for goods.  
3.17.  The CARICOM -Venezuela Agreement  is unique from the others in that it currently provides 
for non -reciprocal preferential treatment by Venezuela to all CARICOM countries by reason of their 
lesser degree of development. It is primarily focu sed on trade in goods but like the others it provides 
for future collaboration in the promotion of services and investment. Venezuela would have 
subsequently sought tariff liberalizations commitments from CARICOM MDCs but such discussions 
have not taken pl ace. 
3.3.1   CARIFORUM -European Union (EU) Economic Partnership Agreement (EPA)  
3.18.  Saint Lucia continues to provisionally apply the EPA, a trade and development Agreement that 
facilitates reciprocal trade with the European Union. It was signed by both Parties on 
15 October  2008, and notified to the WTO on 24 October  2008 under GATT  Article XXIV.  
3.19.  The main objective of the EPA is to promote sustainable development and reduce poverty in 
CARIFORUM Member States.  
3.20.  A five -year review exercise was conducted in 2015, which focused on the impact of the EPA 
on CARIFORUM States as well as on the cha llenges encountered in advancing the implementation 
process. The outcome of the review suggested that the global financial and economic crisis had a 
profound impact on the ability of the CARIFORUM States, including Saint Lucia, to take advantage 
of the mar ket access opportunities under the Agreement. The conduct of the five -year review is 
provided for in the EPA and is intended to evaluate the overall impact of this trade and development 
Agreement on the economies of CARIFORUM States. The second five -year r eview is currently being 
undertaken by both the CARIFORUM States and the EU.  
3.21.  To date, Saint Lucia has been able to fulfill its EPA obligations with respect to its tariff 
liberalization schedule. The schedule allows for the gradual reduction of tariffs to zero for 
approximately 87% of EU products by 2033. For their part, the EPA commits the EU to grant duty -
free and quota -free access to their markets for all CARIFORUM exports.  
3.22.  Other opportunities created by the EPA for Saint Lucian exporters and investors, include a 
platform to discuss reforms and find solutions to trade and investment challenges and legal certainty. 
Also, the Partners are currently negotiating the recognition of Geographical Indications for both 
agricultural and non -agricultural products.  
3.23.  Under the EPA, Saint Lucia is able to provide some level of protection to its vulnerable infant 
and emerging industries by excluding sensitive products from market opening, utilize measures to WT/TPR/G/437 • OECS -WTO Members  
 
- 74 - 
 
  safeguard, if needed, against the sudden surge of EU imports and  take additional measures to 
protect food security.  
3.24.  Several EU development cooperation programmes are connected to the EPA. Saint Lucia has 
received support for EPA implementation, trade -related capacity building and initiatives aimed at 
improving the prod uctive capacity and export capabilities of its economic operators.  
3.25.  Overall, trade diversification as well as the conversion of market access offered by the EPA 
into meaningful market presence remains a major challenge for the private sector in Saint Lucia .  
3.3.2   CARIFORUM -United Kingdom (UK) Economic Partnership Agreement (EPA)  
3.26.  Saint Lucia signed the CARIFORUM -United Kingdom (UK) Economic Partnership Agreement 
(EPA) on 22 March  2019 and ratified the same on 29 October of that same year. Provisional 
application of the Agreement by both Parties commenced on 1 January  2021. This Agreement is a 
technical roll -over of the CARIFORUM -EU EPA with a few applicable amendments where necessary.  
3.27.  The UK is a traditional trading partner for Saint Lucia and continues to be one  of its main 
source markets for tourism related travel as well as an export market for goods and services. 
However, in October  2022 Saint Lucia banana exports suffered a major blow as the two contracting 
parties, National Fair Trade Organization and the UK  supermarket chain informed the government 
that they have mutually decided to suspend the trade of bananas as they monitor the current 
situations impacting the trade both in the Caribbean and the UK.  
4  SECTORAL DEVELOPMENTS  
4.1  Major Cross -Cutting Sectoral Initi atives  
4.1.  Two major strategies developed during the review period are the five -year Medium Term 
Development Strategy (2021 -2026) and the 2020 National Export Strategy.  
4.2  Medium Term Development Strategy 2021 -2026  
4.2.  Confronted with a global environment of amplifi ed uncertainties and risks, the Government of 
Saint Lucia has crafted a Medium Term Development Strategy (MTDS) for the period 2021 to 2026, 
which is an interim policy instrument that outlines the strategic priorities and key objectives of the 
Government a nd which guides the national development agenda. It is based on the Theory of Change 
methodology, which is a planning tool that illustrates how interventions can lead to desired 
development changes. In search of solutions that will usher in a new developme nt era, the vision 
set-out by the Government of Saint Lucia in the MTDS is - "to build a resilient and inclusive Nation, 
for a more sustainable and productive future for our people."  
4.3.  The MTDS places particular focus on building resilience through increased  self-reliance. 
It provides a complete scenario for achieving broad -based social and human capital resilience, 
economic and environmental resilience. More specifically it aims to do the following:  
• Build human and social capital by enhancing Saint Lucia's capacity to manage shocks and 
social risks;  
• Attain economic resilience through improvements in trade, productivity, and 
competitiveness; and  
• Accomplish environmental resilience by promoting the integration of adaptation and 
mitigation  measures for environm ental protection.  
4.4.  Moreover, the MTDS is centered on the formation of institutional clusters to promote synergy 
and efficiency in planning, utilization of resources and service delivery. Two strategic objectives to 
building human/social resilience is equita ble and inclusive social protection and labour market 
efficiency. In the case of the latter it recognizes the need for life -long learning, reskilling, and 
up-skilling of the labour force in order to increase the national income and alleviate poverty and 
social ills.  WT/TPR/G/437 • OECS -WTO Members  
 
- 75 - 
 
  4.5.  Additionally, the Strategy aims for effective institutions, improved infrastructure and 
connectivity and energy efficiency to building economic resilience and therefore plans for continuous 
capital investments by the private, public, and quasi -public sectors. It also aims to prioritize 
government expenditure towards investments that will redound to improving national productivity 
and social wellbeing.  
4.6.  The Strategy also takes into account the severity of the threats posed by climate change and 
climate variability and the requirement to secure the country's development against their adverse 
impacts. It therefore promotes environmental preservation as an adaptive measure for natural 
disaster and adverse weather phenomena. Its strategic objectives i n this context is to improve 
environmental sustainability, and reduce vulnerability to climate change/disaster.  
4.3  The National Export Strategy  
4.7.  The constant evolution of global preferences, demand versus supply issues, and the need to 
keep customers satisfie d drove the reassessment and redesign of the 2004 NES and gave birth to 
the 2020 NES. The NES lays out a detailed roadmap called the Strategic Trade Development 
Roadmap (STDR) with the objective to orient Saint Lucia's Trade Development by tackling 
constraints and embracing opportunities for export development.  
4.8.  The NES is a strategy aimed at elevating the export sector of Saint Lucia. The strategy's vision 
is: "Uniquely Saint Lucian with global appeal ." It was designed and endorsed by public and priv ate 
sector stakeholders. It offers a suite of trade -related strategy solutions to maximize the 
developmental payoffs from trade. It provides a unique window of opportunity for Saint Lucia to 
modernize and start a new cycle of export growth which will impro ve the country's export 
competitiveness in worldwide trade.  
4.9.  Under the overall vision of "Uniquely Saint Lucian with Global Appeal" the STDR elaborates the 
following strategic objectives:  
a. Strengthening the competitiveness of the business environment to boost the creation of 
firms and SME growth;  
b. Expanding the national productive capacity and diversifying the export basket; and  
c. Ensuring that increased trade is environmentally friendly, and its benefits widely shared.  
4.10.  The Strategy outlines p riority sectors as potential drivers of innovation and high -value 
additions as well as potential sectors to invigorate SME development and stimulate entrepreneurship. 
These export sectors are: Information & Communication Technology (ICT); Creative Industri es; 
Tourism Agriculture; and Food & Beverage. The NES also identifies trade facilitation, innovation, 
renewable energy, education/skills development and access to finance as cross -cutting themes 
which can support the main export sectors.  
4.11.  Some of the major  outcomes of the NES and ongoing initiatives include:  
1. Implementation of a number of projects that assist in production efficiency and by extension 
increase the value and volume of exports in all priority sectors. Some notable initiatives 
include: (i) the e mpowering women in food systems and strengthened the local capacities 
and resilience of SIDS in the agri -food sector; (ii) improved packaging to meet external 
markets entry  requirements; (iii) establishment of packhouse facilities to enhance the 
capacity o f stakeholders in the agricultural sector to supply quality products in new markets; 
and (iv) production of value -added products ; 
2. Promotion and marketing in target markets of Saint Lucian products ; 
3. Provision of information and capacity building training to  SMEs on quality standards, 
technical regulations for entering foreign markets, and on existing opportunities under trade 
agreements ; 
4. Improvements in statistical capacity and facilitating more informed decision -making; and  
5. Development and implementation of  assistance programmes aimed at assisting SMEs to 
distribute their products using e -commerce platforms . 
 WT/TPR/G/437 • OECS -WTO Members  
 
- 76 - 
 
  5  SECTORAL DEVELOPMENT  
5.1  Tourism Sector  
5.1.  Tourism continues to be the main economic driver of Saint Lucia's economy. The tourism 
sector's contribution to Rea l GDP from 2010 to 2020 has been trending upward. However, following 
a growth of 2% from 2016 to 2019, it declined sharply by 11% in 2020, because of the negative 
effects of the COVID -19 pandemic on global travel and general economic activity. Although arr ival 
numbers had been gradually increasing, there was a sharp decline in all three categories: Cruise, 
Stay Over and Yacht arrivals in 2020, because of the protocols and measures put in place for the 
pandemic. Overall, stay over arrivals recovered by 52.4 % in 2021 after falling by 69.1 % in 2020, 
representing 47.0 % of 2019 levels. Growth in the stay over sub -sector was as a result of partial 
economic recoveries in source markets, rapid rollout of vaccination programmes and the slackening 
of entry requirement s which facilitated travel and increased airlift to accommodate pent -up demand.  
5.2.  The Government of Saint Lucia has formulated the 2020 -2030 Tourism Strategy Action Plan in 
order to drive its vision to position Saint Lucia as the most spectacular island in the Caribbean. 
Promoting sustainable and responsible tourism; stimulating demand; generating community 
awareness and involvement; improving, diversifying and spreading products and experiences island 
wide; ensuring visitor security, safety and comfort; and  organizing for effective and well managed 
tourism growth are priorities identified to facilitate sustainable development.  
5.3.  The Tourism Development Bill, which was recently finalized, harmonizes the legislative 
framework for the tourism industry as it is ex pected to replace all existing incentives legislation that 
has been developed for the tourism sector including the Tourism Incentives Act, Tourism Stimulus 
and Investment Act and its amendments as well as other incentives regimes/instruments approved 
for specific services. The expectation of this bill is to regulate all operators in the tourism sector by 
making it necessary for persons to hold a valid tourism operators certificate. In addition to ensuring 
a high quality minimum standard for tourism products  and the generation of increased revenue, The 
Bill is also expected to increase local ownership by providing targeted support that encourages 
ownership and partnership to locals.  
5.4.  December 2020 saw the establishment of the Tourism Levy, which aims to remov e the 
Saint Lucia Tourism Authority's (SLTA) dependency on central financing and cause the industry to 
generate revenue for destination marketing activities and tourism development. The revenue 
collected from the Tourism levy (US D 3 and USD 6 per night dep ending on the room category and 
the age of the visitor) is intended to make the Saint Lucia Tourism Authority (SLTA) a fully 
self-financed agency.  
5.2  Agriculture, Forestry and Livestock Sector  
5.5.  Saint Lucia's Agriculture, Forestry and Livestock sectors contrib uted an estimated 
XCD 68 million or 1.9 % to the economy in 2018. Although the industry saw a 5.8% gain from 2017 
to 2018, the sector's growth has been declining since 2008. Loss of preferential trade, loss of 
competitive and comparative advantage, and the devasting effects of climate change are all blamed 
for the sector's deterioration. The ensuing effect is a decrease in crop and livestock output, 
particularly for crops like bananas, which inevitably makes food security more vulnerable.  
5.6.  In 2021, value adde d in the agriculture industry was predicted to have increased by 5.1 %, with 
inconsistent growth across subsectors. This result mirrored the reduced agricultural yield, which was 
significantly hindered by a confluence of supply -side variables, including nat ural disasters, market 
access issues, pest and disease outbreaks, and praedial larceny. The COVID -19 pandemic's effects 
on major input costs and finance challenges further hindered the sector's performance in 2021.  
5.7.  Saint Lucia is implementing production a nd market related measures that will facilitate the 
revival and future expansion of the banana industry. Since 2010, the banana industry has been 
threatened by black sigatoka disease, which has infected roughly 70 % of the country's banana 
plants. The impac t on the development of the banana industry has been severe with most banana 
farmers lacking the funds and technology needed to control the disease. A Black Sigatoka 
Management Unit was developed by the Ministry of Agriculture to focus on the control and 
eradication of this disease.  WT/TPR/G/437 • OECS -WTO Members  
 
- 77 - 
 
  5.8.  The Government also crafted the National Agricultural Policy plan (2016 -2021) which, inter 
alia, focuses on market development in the domestic and export market as well as on the 
mechanisms and human resource capacities within the sector institutions, including the linkages and 
partnerships (local, regional and international).  
5.9.  The identification and development of market opportunities is also a critical factor in the overall 
development of the Agricultural Sector. The heavy dep endency on food imports is an indication of 
the fact that there is a great opportunity for the production and marketing of locally produced 
agricultural produce. To this end, another policy goal is to promote and develop the effective and 
efficient marketi ng of locally produced agricultural commodities and by -products on the domestic 
and export markets.  
5.10.  Strategically, the Government is pursuing the following objectives:  
• The development and enforcement of policies and legislations that would create the 
development of a safe and efficient market and trade environment;  
• Restructuring and Revitalization of the S aint Lucia Marketing Board to provide the following 
functions : 
o provision of support services required to stimulate the development of new 
sustainable  value -added commercial local agro -food products.  
o To provide the necessary marketing infrastructure to facilitate the storage and 
distribution of agricultural commodities effectively and efficiently ; 
 
• Establishment of agricultural marketing information sys tems and cost of production 
databases in order to provide vital information for production planning and marketing;  
• Meeting and adhering to quality, grades and standards established by the market for 
agricultural products;  
• Strengthening producers' organizat ions to facilitate greater collaboration in production 
planning, and marketing of produce.  
• Strengthening  linkages between agriculture and other sectors, in particularly tourism and 
manufacturing transport.  
5.11.  With respective to Fisheries and the WTO Agreemen t on Fisheries Subsidies, the Government 
intends to mobilise resources (technical assistance) to undertake a review and gap analysis of the 
legislative and regulatory framework of the Sector vis -à-vis the Fisheries Subsidies Agreement. 
Assistance is also r equired to gather the necessary data for the required notifications as this 
information as well as that gathered from the review/assessment is critical because, without them, 
undertaking the ratification and implementation processes as well as notification  obligations would 
prove a substantial challenge for the government.  
5.3  Manufacturing  
5.12.  The manufacturing sector, while small and highly concentrated, continues to be a major 
contributor to Saint Lucia's economic growth and development and therefore maintaini ng the long -
term sustainability and resilience of the sector is of paramount importance to the Government. Like 
many of Saint Lucia's economic sectors, the manufacturing sector was hard hit by the pandemic and 
continues to face structural limitations which  affects its competitiveness and growth potential. 
(MTDS, 2022) As a result, the government continues to be proactive in pursuing growth strategies 
as part of its post COVID  recovery outlook.  
5.13.  While in 2020, the sector's contribution to real GDP dipped fro m 3.9 % to 3.6 % in 2021, based 
on recent estimates, the value of total manufacturing output was estimated to increase by 37.5 % 
to a record high of XCD 550.0 million in 2021, from a contraction of 15.9 % in 2020. These projections 
are however concentrated on one commodity being alcoholic beverages. (Economic and Social 
Review, 2021) Despite this optimistic projection, it is important to highlight that the sector continues 
to face perennial challenges which constrains its export potential, such as high cost of inputs, high WT/TPR/G/437 • OECS -WTO Members  
 
- 78 - 
 
  energy cost, high cost of trading across borders, exogenous shocks from the pandemic coupled with 
the devastating impact of natural disasters on the economy.  
5.14.  One initiative which undoubtedly helps to maintain the sustainability of the sector is the Fiscal 
Incentives Regime. During the period under review, the Government would have granted roughly 
225 incentives to new and existing operators in the sector. This package of incentives granted under 
the Fiscal Incentives Act, Cap. 15.16 assists  manufacturers to progressively advance their business 
operations to allow them to meet domestic demand and develop their export potential to tap into 
the global market.  
5.15.  Another form of support granted to the sector was the implementation of the CARICOM wide  
initiative – the Article 164 Regime of the Revised Treaty of Chaguaramas titled - 'Promotion of 
Industrial Development.' This regime, which was implemented by Saint Lucia in 2020, is a temporary 
measure which aims to promote industrial development among t he LDCs of CARICOM by helping 
them to develop their manufacturing capacity in order to become more competitive. This is achieved 
through tariff adjustments of certain locally manufactured goods and by supporting those fledging 
industries to develop their e xport capacity through training and capacity building initiatives. The 
government anticipates that once this form of support to our infant industries is actually realized 
and bears fruit, the productive capacity of our manufacturing firms will increase and  allow for greater 
exposure of our locally manufactured products.  
5.16.  Stemming from the 2021 -2026 Medium Term Development Strategy, the government's vision 
is to have a dynamic business environment that supports sustained economic growth and 
development. This would call for enhanced capacity building and exposure of our locally 
manufactured products to regional and international markets which the export promotion agency – 
Export Saint Lucia is proactively pursuing as part of its mandate. Export Saint Lucia has articulated 
a strategic intent to promote local products that are "uniquely Saint Lucian with a global appeal." 
(2021 -2026 MTDS) . 
5.4  Services  
5.17.  Services continues to be Saint Lucia's main economic driver and developing policies and 
incentives to support the dev elopment of the services sector is of paramount importance to the 
Government.  
5.18.  In 2016, the Government of Saint Lucia sought assistance for the Development of a Gender -
Responsive and Results -Based Services Sector Policy, Strategy and Action Plan . The objec tive of the 
Policy is to introduce and oversee the implementation of a focused overall gender -responsive 
national strategy for the development of priority services sectors in Saint Lucia as engines for growth 
and exports.  
5.19.  In the first instance, focus will  be placed on the following sectors: information and 
communication technology (ICT); Spas and Wellness; Professional Services; Creative Industries, 
and in the next phase initiatives will be considered for developing Tertiary Education and 
Health/Medical To urism . 
5.20.  The incentives regime was also revised to support implementation of this Policy. Specifically, 
the Fiscal Incentives Act, CAP 15.16, which focused primarily on incentives for the manufacturing 
sector, was amended in 2019 to include incentives for th e following four priority services sectors:  
• Professional Services;  
• Creative Industries;  
• Information & Communications Technology Services; and  
• Spa and  Wellness Services  
5.21.  This amendment to the Fiscal Incentives Regime to include the services sector, forms part of 
initiatives to strengthen and promote the development of priority services sectors, as well as to 
foster the promotion of domestic and foreign investment as envisi oned in the Saint Lucia National WT/TPR/G/437 • OECS -WTO Members  
 
- 79 - 
 
  Services Policy & Strategy. Under this Act, 'Approved Enterprises' in the aforementioned sectors can 
benefit from the complete or partial exemption from customs duty and excise tax on the importation 
of plant, equipment, ma chinery, spare parts, raw materials or components.  
5.4.1   Financial Services Sector  
5.22.  The Finance and Banking Sector plays a critical role in the development landscape of Saint 
Lucia. The Financial Services Sector in Saint Lucia comprises Commercial Banking Institu tions, 
Insurance Companies, Credit Unions, Off -shore International Banks and Microfinance Institutions, 
supported by a Development Bank. The commercial banks are regulated by the Eastern Caribbean 
Central Bank (ECCB), while the other institutions are regul ated by the Financial Services Regulatory 
Authority (FSRA), which is responsible for licensing, supervising, and regulating the operations of 
the sector.  
5.23.  Some of the challenges facing the respective financial services sub -sectors are:  
• Commercial Banking – prohibitive cost of lending; onerous collaterals requirements; high 
levels of liquidity and non -performing loans, absence of a Credit Bureau Facility;  
• International Banking – the adoption of de -risking by global banks, which provide 
corresponding banking s ervices for domestic and offshore banks.  
• Credit unions  – prohibitive cost of technological infrastructure, inefficient corporate 
governance structures and personnel, and delinquent loans.  
5.24.  Some steps taken or in progress to overcome some of this challenges include: (1) for 
commercial banking - the passage of Security Interest in Moveable Property Bill, which allows 
individuals and businesses to utilize non -traditional forms of collateral such as vehicles and 
equipment to secure loans; and the Bankruptcy and Insolvency Bill; (2) the establishment of a Single 
Compliance Department in the OECS to address the vexing issue of compliance related to de -risking 
by international banks; and (3) the drafting of a Credit Union Bill and Regulations geared at 
strengthening  the corporate governance and risk management.  
5.5  Information and Communication Technology (ICT) and E -Commerce  
5.25.  The Division of Public Sector Modernization (DPSM) which was established in April  2012, 
has been tasked with the responsibility for providing lead ership in the development of ICT to 
modernize the public service in order to transform the economy. The DPSM is also responsible for 
providing innovative solutions to improve productivity through the use of ICT throughout the Public 
Service.  
5.26.  Following fro m the National Information and Communication Technologies Policy and Strategy 
2013-2018, the Government of Saint Lucia saw the need to review and refresh its commitment to 
the sustainable national development through ICT. This has given rise to the Saint L ucia Digital 
Development Strategy.  
5.27.  The Digital Integrated Government e -Services Platform "digiGov", was launched in 2020 and 
focuses on enhancing governance and strengthening institutional frameworks to achieve efficiency 
and to provide a more responsive c itizen -centric approach to service delivery by providing access to 
online public services. To this date seventeen (17) services driver's related services have been on 
boarded and is currently being used online.  
5.28.  The Government Island -Wide Network (GiNET) i s another successful initiative. The main 
objective of the initiative is to assist Saint Lucia in developing Wireless Local Area Network, (WLAN) 
connection to public areas (government agencies, schools and rural areas, etc.) to allow the general 
public, to urists and business passengers to use "free or low -cost" wireless LAN in public areas. 
Phase  1 of the project has been completed with the establishment of Seventy (70) wireless access 
points across 5 (five) communities. Phase 2 will see the expansion of Gi NET and the installation of 
ninety -one (91) access points across 6 (six) communities. The gains from this initiative enabled the 
country's effort to navigate the challenges associated with the COVID -19 pandemic, specifically the 
implementation of hybrid wo rking or teleworking.  WT/TPR/G/437 • OECS -WTO Members  
 
- 80 - 
 
  5.29.  The Government of Saint Lucia has approved the implementation of the Caribbean Digital 
Transformation Project (CARDTP). The objective of this project is to increase access to digital 
services, technologies and skills by the government , businesses and individuals in Saint Lucia. The 
project is expected to contribute to increased digital connectivity, digital public service and creation 
of technology -enabled businesses and jobs within Saint Lucia.  
5.30.  Regarding E -commerce, i n October 2021, with the support of the Commonwealth Secretariat, 
Saint Lucia was able benefit from an 'Assessment of the OECS Digital Trade and E -commerce 
Readiness and Associated Capacity Building Needs'. The assessment found that limited availability 
of financial instruments and high business transaction costs significantly impede the growth of digital 
trade. It also revealed weaknesses in data and consumer protection and cybersecurity, payment 
infrastructure and solutions, stakeholder engagement and part icipation, trade facilitation, and 
investment promotion. Saint Lucia is hoping that some of these can be addressed with the full 
implementation of the Trade Facilitation Agreement and is continuing in its effort to mobilise the 
support of the donor communi ty and development partners in that regard.  
6  TRADE FACILITATION  
6.1.  In 2015, Saint Lucia ratified the WTO Trade Facilitation Agreement (TFA) and would have 
subsequently categorize the technical trade facilitation measures accordingly: Category A – twelve 
(12) m easures; Category B - fourteen (14) measures; and Category C – ten (10) measures. Since 
the entry into force of the TFA in 2017, Saint Lucia has struggled to secure the requisite technical 
assistance and capacity building support to ensure the timely imple mentation of the Category C 
designated measures. Notwithstanding, the Government continues to pursue the vision set out in 
the Five -year Trade Facilitation Roadmap, which is, to reduce the cost of Saint Lucia's cross border 
trade by at least 20%, by stream lining and simplifying the import and export procedures and 
processes.  
6.2.  The National Trade Facilitation Committee which was established in 2017 by a Cabinet Decision 
comprises both public and private sector representatives, and serves as the coordinating ma chinery 
to drive Saint Lucia's implementation of the TFA. The NTFC also serves as the permanent forum for 
regular consultations on Trade Facilitation matters.  
6.3.  For the period under review, Saint Lucia would have benefited from some technical assistance 
which through the 'UNCTAD Empowerment Programme for National Trade Facilitation Committees.' 
This included training for members of the NTFC on the provisions of the TFA; critical engagement of 
key stakeholders towards the preparation of a five -year Trade Facil itation Roadmap (2019 -2024) to 
help guide the implementation work of the NTFC and to serve as a reference document for seeking 
technical and financial assistance; preparation of a Knowledge Transfer Strategy to ensure continuity 
within the NTFC; and the dr afting of terms of reference for the NTFC. This assistance continues to 
augur well for the NTFC in championing implementation of the TFA.  
6.4.  Implementation of key provisions of the TFA, particular those designated as Category C is 
stymied by resource constra ints and a lack technical assistance and capacity support from donor 
countries and agencies. Saint Lucia remains committed to its obligations, however, contemplates 
further request for extensions of implementations should its mobilization efforts towards s ecuring 
the requisite support continues to be thwart by the lack of uptake and support by the donor 
community.  
7  CONCLUSION  
7.1.  Saint Lucia's Fourth WTO Trade Policy Review is being undertaken at a time of unprecedented 
socio-economic hardship created by global  externalities including the adverse impact of the 
COVID -19 virus outbreak, the war in Ukraine, financial sector regulations and cross border 
pollutants, and also at a time of great uncertainty in international markets.  
7.2.  Nonetheless, the Government of Saint  Lucia is steadfast in its aim to building a resilient and 
inclusive nation and therefore is committed to creating the policy framework and enabling 
environment to navigate these difficult times. Moreover, Saint Lucia sees freer and fair trade as 
critical to its pursuit of increased resilience and therefore remains a staunch supporter of a 
transparent and inclusive rules based multilateral system. To this end, this Government will continue WT/TPR/G/437 • OECS -WTO Members  
 
- 81 - 
 
  to actively participate in the work of the World Trade Organization and our participation in this 
transparency exercise is a reaffirmation of that commitment.  WT/TPR/G/437 • OECS -WTO Members  
 
- 82 - 
 
 SAINT VINCENT AND THE GRENADINES  
1  INTRODUCTION  
1.1.  Saint Vincent and the Grenadines is a Small Island Developing State (SIDS) with all the 
inherent challenges, such as a narrow economic base and high vulnerability to external shocks and 
natural disasters. This is further exacerbated by an open economy with a re venue base that is highly 
dependent on international trade. The mainstay of the economy is agriculture, but increasingly, 
tourism and other related services, as well as construction are significant contributors to the 
economy.  
1.2.  The country is currently at a  crucial period of development as it struggles to emerge from the 
throes of the COVID -19 pandemic, the explosive eruption of the La Soufriere Volcano, the impact of 
hurricane Elsa and the global economic downturn occasioned by geopolitical unrest and marke t 
failures. These financial, economic, political and other factors, including natural disasters, have 
adversely affected the quest to improve the welfare of its citizens. Indeed, these man -made and/or 
natural challenges, exacerbated by volatility in global  oil prices, and hikes in commodity prices 
especially for staple foods, are unprecedented in their scope. These exogenous trends, coupled with 
natural phenomena, present the country with momentous challenges that calls for bold, decisive, 
yet well -ordered planning.  
1.3.  The limited availability of social safety nets for rapid responses to economic adjustments has 
contributed to economic and social dislocations, particularly within rural communities.  
1.4.  The worsening of the country 's Balance of Payments (BOP) during  the period 2014 -21 could be 
traced to significant relocations from production -oriented initiatives to rehabilitative programs 
occasioned by force majeure  events, a declining productive sector, rising import bill and a trade 
deficit ratio climbing alarming ly to an average of 10:1. This has led to high public sector debt, further 
deterioration in the fiscal space and lingering unfavourable unemployment  
1.5.  The country 's National Economic and Social Development Plan (NESDP) 2013 -2025, espouses 
a philosophy of soc ial democracy and thus highlights policies and programmes that are intended to 
be people –centered and summons up collective solidarity and individual responsibility. Its long -term 
goal is to achieve sustainable balanced growth by transforming the economic base of the country 
into an export -led economy. It therefore focuses on:  
• Accelerating economic growth;  
• Building up the human –resource base;  
• Poverty reduction/rural transformation ; and 
• Export -led growth and development.  
1.6.  Since the last Trade Policy Review  in 2014, S aint Vincent and the Grenadines has sought to 
build on the development path espoused in the NESDP 2013 -2025. This development path under 
the theme, Re-engineering Economic Growth: Improving the Quality of Life for all Vincentians,  
encapsulates f ive strategic goals. This development path includes inter alia the:  
• Opening and full operation of the Argyle International Airport (AIA) in 2017;  
• Aggressive thrust for alternative energy through geothermal exploration and other green 
energy sources;  
• Focus ed approach at defining and integrating its Blue Economy into national development 
strategies;  
• Implementation of the Information Communication Technology (ICT) initiative under the 
Caribbean Regional Communications Infrastructure Programme; and,  WT/TPR/G/437 • OECS -WTO Members  
 
- 83 - 
 
  • Refurbish ing and expansion of the Kingstown Port to facilitate intra and extra -regional 
trade.  
1.7.  Saint Vincent and the Grenadines looks favourably on its regional integration processes with 
the Organisation of Eastern Caribbean States (OECS) and the Caribbean Communi ty (CARICOM), as 
the bed -rock platform from which it seeks to competitively engage and further integrate into the 
global economy.  
1.1  Challenges  
1.8.  Saint Vincent and the Grenadines has experienced  force majeure  events from challenging 
circumstances, international ly, regionally and locally, some of which are highlighted below:  
• The global economic and financial crisis of 2008 and its continuing aftershocks that 
produced a veritable "lost decade" for growth and development across the Caribbean and 
occasioned liabilit ies in the aggregate, for S aint Vincent and the Grenadines, in excess of 
XCD 300 million or 16.0 % of Gross Domestic Product (GDP);  
• High global oil prices since 2008 with its "knock -on" effects leading to imported inflation;  
• The international political turmoil which exacerbated the underlying global economic 
downturn such as the Russia - Ukraine war has had significant inflationary imp act on small 
and vulnerable economies like S aint Vincent and the Grenadines;  
• A series of severe natural disasters, practically every year from 2010 onwards, which 
cumulatively have caused loss and damage in excess of XCD 700 million or approximately 
40.0% of GDP;  
• The grave and gathering menace of climate change and its associated costs, has become 
a direct threat to growth and development prospects for S aint Vincent and the Grenadines 
and the wider Caribbean;  
• The existence of exotic pests and diseases as we ll as increasing competition in traditional 
markets are persistent challenges to the agricultural sector; and,  
• The negative socio -economic impacts resulting from the COVID -19 pandemic has had 
destabilizing effects on the tourism and agriculture sectors.  
1.9.  These challenges are mainly beyond the control of Saint Vincent and the Grenadines, and have 
negatively impacted its developmental plans. Historically, global slowdowns and contractions have 
had lagging effects on the Vincentian 's economy.  
1.10.  On 9 April 2021, the La Soufrière volcano began the first of 32 category 4 explosive eruptions. 
Emissions from the volcano reached the stratosphere and sulphur dioxide circled the globe. Our 
volcanic emissions were traced to Asia, Europe and Africa. The explosive eruptio ns had crippling 
impact across the country. The volcano ejected over 500,000 tonnes of ash, much of it coating 
roads, homes and public infrastructure across the country. One -fifth of our population was evacuated 
and was accommodated in schools, community s helters, churches and private homes for 
approximately six months. Lahars and pyroclastic flows destroyed buildings and farms across the 
northern third of the country. Over 770 homes were damaged or destroyed.  
1.11.  On 2 July 2021, hurricane Elsa struck, destroy ing scores of homes, damaging public buildings 
and infrastructure, and displacing over 200 Vincentians. While full assessment of the damage has 
been difficult to disaggregate from volcano -related destruction that took place just three months 
earlier, conse rvative estimates place loss and damage from the hurricane in excess of 
XCD 40 million. The impact of hurricane Elsa was a distant third on the list of extraordinary 
challenges to befall the country in 2021. The majority of the residents in the hurricane -affected area 
were already safely in shelters as volcano -displaced persons.  
1.12.  Despite these exogenous setbacks, S aint Vincent and the Grenadines under its Post -Disaster 
Recovery Needs Assessment, has quantified recovery needs and formulated a realistic recov ery WT/TPR/G/437 • OECS -WTO Members  
 
- 84 - 
 
 framework based on national priorities and capacities. These are built around three broad and 
achievable objectives aimed at enhancing the country 's economic development agenda in an 
inclusive and comprehensive manner. These are achievable by ensuring the sustainability of the 
productive value chains that incorporate new and better technologies, the development of effective 
and efficient governance mechanisms, human capacities and support services, and the strengthening 
of the financial sector.  
1.13.  Saint Vincent and the Grenadines recognises the many countries and organisations that have 
partnered with the National Emergency Management Organisation (NEMO) in the relief operations 
to affected households and communities during this difficult period. Specific i nterventions to mitigate 
and reduce hardships encountered by families and communities post the La Soufriere eruptions and 
the passage of hurricane Elsa were identified and supports from UN institutions such as The United 
Nations Global Appeal, the World Fo od Programme (WFP) , the United Nations Office for Disaster Risk 
Reduction (UNDRR) besides other regional and international institutions were critical in addressing 
these challenges.  
2  MACROECONOMIC AND TRADE PERFORMANCE  
2.1  Overview of Macroeconomic Performance   
2.1.  The economy of Saint Vincent and the Grenadines displayed signs of acceleration in its growth 
momentum. During the review period, the economy recorded average growth of 1.3 %, with 2016 
and 2018 recording the highest GDP growth of 4.0% and 3.2% respective ly. This performance was 
largely on account of growth in construction, fishing, manufacturing, and tourism related services. 
GDP growth for the years 2020 and 2021 were 1.7% and 0.8%respectively despite the economic 
traumas of those years  
2.2.  The COVID -19 pandemic, the volcanic eruption and the passage of hurricane Elsa in 2020 and 
2021 have eroded the already limited resources available, thus necessitating increases in public debt 
by over XCD 300 million. This increase in total outstanding debt was as a re sult of greater financing 
requirement to facilitate spending in the health sector and to bolster social safety nets. The 
government was able to tap into resources from domestic creditors through the issuance of 
securities, utilization of proceeds from exis ting loans, and some new concessionary loans were 
mobilized including: Coronavirus Disease Emergency Response Support Loan from the Caribbean 
Development Bank (CDB); Rapid Credit Facility from the International Monetary Fund (IMF); a 
second Fiscal Resilien ce Development and the Volcanic Eruption Emergency Project (VEEP) from the 
world bank . 
2.3.  With the support of concessionary loans and grant funding from major international institutions 
like the World Bank (WB), International Monetary Fund (IMF), Internationa l Development Assistance 
(IDA), the European Union (EU) and Caribbean Development Bank (CDB); start -up capital support 
was made available to micro -businesses in the art and culture, light manufacturing and cottage 
industries and services sector to stimulat e productive activities, thus putting Vincentians back to 
work and adding impetus to a sluggish economy straining under business closures, lay -offs, 
disruptions and destruction to the livelihoods of significant portion of the working population . 
2.4.  Despite th e adverse impact of several natural disasters, agriculture continued to account for 
some 8.0% of GDP during the review period, largely due to continued output diversification. The 
manufacturing sector remains relatively small, with an average GDP contribut ion of 5.2%. The 
agricultural sector became heavily dependent on public support in order to cope with the 
disadvantages posed by the cataclysmic eruptions, which followed three months later by hurricane 
Elsa. These two events, weakened domestic demand, cau sed difficult access to credit, and 
exacerbated already high energy, transport, and telecommunications costs.  
2.5.  Services accounted for approximately 73.5% of GDP during the review period, on account of a 
dominant wholesale and retail subsector, followed clos ely by real estate related services, public 
administration, financial services and transportation. It is expected that services will remain a 
dominant contributor to GDP over the foreseeable future as tourism, travel, financial and real estate 
services con tinue to rebound from the throes of the triple disasters. The ongoing reconstruction and 
rehabilitation of homes following the eruption of the La Soufriere Volcano coupled with the 
Government's plans for seaport development are likely to sustain this momen tum. WT/TPR/G/437 • OECS -WTO Members  
 
- 85 - 
 
  2.6.  A combination of internal and external developments facilitated growth in tourism related 
activities. External factors included growth in the economies of major sources markets such as the 
United States of America (USA) and Canada. Internally, expande d and improved operations at the 
Argyle International Airport, which was commissioned in February 2017, have resulted in direct 
flights to and from major Metropolis. This has resulted in more stay -over arrivals, easier access by 
nationals and casual visito rs and greater airlift of agricultural produce to northern markets. Amply 
supporting these arrivals were growth in the number of cruise ship visitors. The yacht subsector also 
performed positively.  
2.2  Fiscal Performance  
2.7.  The authorities have committed to pos t primary surpluses; a surplus was recorded in most 
years of the period under review, but deterioration was registered for 2020 and 2021. The 
Government of S aint Vincent and the Grenadines is committed to controlling expenditure by 
rationalizing public sec tor purchases of goods and services, and improving the management of state -
owned enterprises. By and large, recurrent expenditure was reasonably restrained despite pressures 
to provide significant interventions to key areas such as health and education, fo od and agriculture, 
and physical infrastructures repairs that were negatively impacted in 2020 and 2021.  
2.8.  The Government of S aint Vincent and the Grenadines has continued to pursue creative funding 
options for its infrastructure investments, through grants,  concessionary loans, and public -private 
sector partnerships, so as not to place a serious burden on the Treasury. The authorities also 
persevered in their commitment to the Educational Revolution launched in 2001. Some 20.0% of 
the total recurrent budget and 15.0% of total capital spending, annually, were allocated to education.  
2.9.  During the period, the fiscal position recorded annual levels of 1.0% of GDP, except for 2016 
which recorded 3.4%. However, in 2020 and 2021, the fiscal position deteriorated and r ecorded 
deficits. At the end of December  2021, the total public debt increased beyond acceptable levels 
relative to the GDP, with the external component amounting to 67.0% of GDP.  
2.10.  Government is committed to reducing this trend by focusing on an aggressive agricultural 
production programme particularly in root crops and animal husbandry, services export, and 
attracting greater investments in the medicinal cannabis and ICT sub -sectors.  
2.3  Balance of Payments  
2.11.  Saint Vincent and the Grenadines applies the common m onetary and exchange policies of the 
Eastern Caribbean Currency Union. During 2014 -21, inflation was recorded at negative 1.7% (2015) 
and a high of 2.2%, 2.3% and 1.6% in 2017, 2018 and 2021 respectively. The average annual rate 
was a moderate (2.3%). By a nd large, inflationary pressures mirrored the trends in international 
food and fuel prices.  
2.12.  The current account of the BOP remained in deficit throughout 2014 -21. The goods and 
income components continued to post structural deficits that could not be offse t by the surpluses on 
services and secondary income accounts. The overall deficit was largely attributable to the 
merchandise trade balance. Saint Vincent and the Grenadines continued to import merchandise 
worth seven to eight times the annual value of its  goods exports. The current account deficits have 
been financed mainly by foreign direct investment and long -term loans.  
3  TRADE AND INVESTMENT PATTERNS  
3.1  Merchandise Trade  
3.1.  Merchandise imports grew steadily over the period 2014 to 2021 reaching XCD 1.05 billion in 
2021. The country 's major source markets are the USA, Trinidad and Tobago, China and the 
United  Kingdom. Merchandise imports from the USA accounts for 45.5 % of total imports in 2021.The 
major import categories are machinery and transport equipment, se mi- manufacturers, consumer 
goods, food & beverage. The negative impact of climate change has resulted in increased imports of 
fossil fuel, particularly diesel, to compensate for mass reduction in the production of 
hydro -electricity.  Diesel imports are sup plied mainly under a favourable long -term credit 
arrangement with Venezuela.  WT/TPR/G/437 • OECS -WTO Members  
 
- 86 - 
 
 3.2.  Merchandise exports continued to decline steadily over the period under review. Market 
concentration is in the main markets, namely; OECS, Other CARICOM countries, USA and the Br itish 
Virgin Islands (BVI), which remain the backbone of domestic exports in 2014 to 2021. The OECS is 
consistently the largest export market. This is due mainly to the Special and Deferential Treatment 
(SDT) accorded to Less Developed Countries (LDCs) und er Chapter 7 of the Revised Treaty of 
Chaguaramas. Merchandise exports comprised banana, flour, root crops and metallic zinc thus 
indicating a narrowing production and export base. The opening up of the AIA has resulted in 
increased exports to the USA, inc reasing from 1% in 2014 to 8% in 2018 and climbing steadily 
hereafter. Data for the first half of 2022 has shown increases in exports to the USA, which is 
dominated by agro -commodities.  
3.3.  Trade data  over the last forty years has shown an overall steady decli ne in the contribution of 
exports to the country's GDP, from a high of 62.0% in 1988 to approximately  10.0% in 2021. The 
data is indicative of similar trends within the OECS sub -region and highlights the need for a relook 
at the remedial measures currently  available to SIDS with supply constraints, diseconomies of scale, 
natural hazards and the challenges of participating in a highly competitive global environment.  
3.4.  Initiatives geared at improving merchandise exports performance are identified as follows:  
• Nearshoring, particularly proximity to USA and membership in the OECS and CARICOM;  
• Improving economies of scale and competitiveness of local production;  
• Diversity in product offerings and product differentiation;  
• Improved levels of certification s tandards;  
• Increased access to production and trade financing; and,  
• Access to improved technology in production including ICT.  
3.2  Trade in Services  
3.5.  The economy of S aint Vincent and the Grenadines is dominated by the services sector, which 
accounted for about 7 3.5% of GDP throughout the review period. The main service activities are 
real estate, wholesale and retail trade, construction, accommodation and food services, 
transportation and financial services.  
3.6.  Major services exported were travel, other business ser vices, telecommunications, computer 
and information services and transportation services respectively. Tourism services accounted for 
more than 80.0% of services exports until 2019 and fell to 67.5 % in 2020 and 52.7 % in 2021. The 
decline of services expo rted not only had significant impact on the BOP, but occasioned mass layoffs 
in the sector.  
3.7.  Services import remain at around 50.0 % of total services exported for the period 2014 to 
2019 but increased in 2020 and 2021 mainly as a result of the fall -off in tourism. This trend is 
expected to be reversed in 2022 and beyond, as tourist arrivals continue to show signs of rebound. 
It is believed however, that services imported will be higher than the post COVID -19 period, as a 
result of imported inflation, which is due to geopolitical upheavals and global uncertainties.  
3.8.  The NESDP 2013 -2025 highlights the importance of diversification and product differentiation 
to improve export competitiveness and the critical role that the services sector can pl ay in export -led 
growth.  
3.3  Foreign Direct Investment  
3.9.  According to the United Nations Conference on Trade and Development (UNCTAD), the 
COVID -19 pandemic caused global flows of Foreign Direct Investment (FDI) to fall by 40.0 % in 2020 WT/TPR/G/437 • OECS -WTO Members  
 
- 87 - 
 
  – the lowest levels in t he last 15 years .1 Flows to Latin America and the Caribbean suffered the 
largest decline, plummeting by up to 55.0% .2 UNCTAD had predicted a further 5 -10% decline in FDI 
flows in 2021, before a gradual recovery begins in 2022 .3 This decline is of partic ular concern to 
Saint Vincent and the Grenadines, which has enjoyed success in attracting foreign investment as a 
complement to domestic investment and as a source of new capital to help propel development in 
critical sectors. Data from the Economic Commis sion for Latin America and the Caribbean indicated 
that, for the nine years between 2010 and 2018, Saint Vincent and the Grenadines attracted a total 
of US D 1.03 billion in FDI.4 
3.10.  Invest SVG is the national agency charged with the promotion and development  of the nation 's 
investment portfolios. It is the official investment agency of the Government of SVG5, which ensures 
the country can achieve sustainable economic development through investment promotion, export 
development and policy advocacy. Invest SVG  focuses on attracting FDI in these seven main sectors: 
Tourism Development, Agro -processing, Renewable Energy, Light Manufacturing, International 
Financial Services, ICT and the Creative Industry. To this end, the institution:  
• Attracts and facilitates loc al and external FDI and offers services in investment promotions, 
investment facilitation and research/information development;  
• Stimulates export development by assisting local producers/businesses become export -
ready (offering quality products and servic es to lucrative markets) by channeling them to 
grant and other funding for training and opportunities to attend regional and international 
exhibitions and expositions .  
3.11.  Many of the conditions to attract investments are provided in S aint Vincent and the 
Grenadines ' legislation. S aint Vincent and the Grenadines ' economy is open for foreign investments 
without sectors, activities or regions reserved for domestic investors. By and large, S aint Vincent 
and the Grenadines treats foreign investments without discri mination. However, S aint Vincent and 
the Grenadines does not have a comprehensive investment law that contains all fundamental 
investor rights. This law can fill a significant gap in the legal framework for investments in 
Saint Vincent and the Grenadines a nd at the same time send a signal of commitment to the 
international investor community. In addition, the Investment Law can also set a framework for the 
review of the obsolete incentives.  
3.12.  The sectors already identified as priorities by the Government and  adopted by Invest SVG, 
namely:  
• Tourism;  
• Agriculture / Agri -processing/ Food Processing / Fisheries / Medicinal Cannabis;  
• International Financial Services;  
• IT-enabled services / Business Process Outsourcing;  
• Renewable Energy – geothermal; solar; wind; hydro;  
• Light manufacturing including garments and consumer products; and,  
 
1 United Nations Conference on Trade and Development (UNCTAD), World Investment Report: 
International Production beyond the Pandemic, Geneva, 2020. pp x, 2, 6 -8. Viewed at: 
https://unctad.org/system/files/officialdocument/wir2020_en.pdf . 
2 World Investment Report, p. 9  
3 World Investment Report, p. x.  
4 Economic Commission for Latin America and the Caribbean (ECLAC), Foreign Direct Investment in 
Latin America and the Caribbean, 2020 (LC/PUB.2020/15 -P), Santiago, 2020. p. 27 . Viewed at:  
https:/ /repositorio.cepal.org/bitstream/handle/11362/46541/1/S2000594_en.pdf .  
5 In October 2003, the precursor to Invest SVG (the "Nation Investment Promotions Incorporated – 
NIPI") was created by decree. However, in 2009, in an effort to increase its impact on a regional and 
international scale, the institution was rebranded as "Invest SVG".  WT/TPR/G/437 • OECS -WTO Members  
 
- 88 - 
 
 • Creative industries.  
The strategies to be employed to encourage FDIs include:  
 
• Empowerment of Invest  SVG to aggressively promote FDI;  
• Disseminating export trade data;  
• Promote opportunities for local and international sectoral linkages; and  
• Negating the effects of "smallness" by focusing on FDI -dependent growth sectors . 
3.13.  The Financial Services Authority (FSA) is responsible for the regulation of the International 
Financia l Sector (IFS) in S aint Vincent and the Grenadines .To compete in this highly competitive 
global market, the country has taken definitive steps to modernise the legislative framework in 
accordance with international best practices. Building on earlier initi atives on earlier legislation, the 
country expanded its international cooperation mandate with the advent of the Foreign Account Tax 
Compliance Account (FATCA) and the Common Reporting Standards (CRS) initiatives.  The Foreign 
Accounts Tax Compliance (Imple mentation and Enforcement of Inter -Governmental Agreement) 
Act and the  Automatic Exchange of Information Act and Regulations  were enacted to ensure 
Saint Vincent and the Grenadines  has a legal basis upon which it can effectively cooperate.  
3.14.  Stronger resilie nce and capacity are the major guideposts towards both economic growth and 
social progress. The region can make much more of its green potential, with power generation 
topping the list. Improving regulation and reducing red tape can foster new, home grown economic 
dynamism. Tourism, digital services and the sustainable ocean economy also offer untapped 
potential. Closing the skills gap, enhancing the quality of education and improving social protection 
are essential. Finally, as a red thread throughout, dee per regional integration would make it easier 
for OECS countries to pool resources in a range of areas, radically increasing the region 's potential 
for efficient governance, and accelerating the development of its human resources  
4  TRADE POLICY INITIATIVES  
4.1  Trade Policy Formulations and Implementation  
4.1.  Saint Vincent and the Grenadines formulates and implements trade policies within a 
multi-layered structure. It continues to collaborate actively with other OECS in areas of legislative 
formulation and legal impl ementation of economic and trade policies. Draft legislations are prepared 
by the Attorney General 's office at the initiation of relevant ministries or draft specimen crafted by 
the OECS Secretariat in accordance with treaty obligations. International agre ements and 
conventions are implemented by ratification, while decisions of Heads of Governments at the OECS 
and CARICOM levels are mainly by fiat.  
4.2.  The Caribbean Court of Justice, established by CARICOM, has jurisdiction over matters 
pertaining to the Treat y of Chaguaramas. The Privy Council is the country 's final court of appeal. 
International agreements that have not been enacted into domestic law cannot be invoked or relied 
upon by private parties in national courts. S aint Vincent and the Grenadines has r atified the 
Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York 
Convention).  
4.3.  The Revised Treaty of Basseterre gave legislative competence to the OECS in respect of Trade 
Policy within the Economic Union. The organization is also charged under the said Treaty, to identify 
areas of harmonization and joint policy initiatives for international trade and external trade 
agreements among member states. Member states enact these harmonized legislations in keeping 
with treaty oblig ations.  
4.4.  The Organisation of Trade Negotiation (OTN) in CARICOM, conducts trade negotiations on 
behalf of CARICOM member states in Bilateral and Hemispheric trade arrangements. The Permanent 
Delegation of the OECS in Geneva facilitates participation by ind ividual member states at the WTO.  WT/TPR/G/437 • OECS -WTO Members  
 
- 89 - 
 
  4.5.  In November 2020, the Ministry of the Public Service, Consumer Affairs and Sport was given 
administrative responsibility for Commerce and Consumer Affairs.  
4.6.  The Department of International Trade within the Ministry of Fore ign Affairs and Foreign Trade 
has primary responsibility for WTO affairs and trade -related negotiations. The relevant Ministries, 
Departments and Para -Statals are responsible for the promulgation and implementation of trade 
policies and measures.  
4.7.  The integ ration of trade policy into overall economic policy at national level is achieved through 
these processes.  
4.8.  To complement Cabinet and Parliamentary oversight on trade policy harmonization, 
government ministries, agencies and institutions within the trade po licy and support network 
framework, have been playing a pivotal role in promoting and regulating trade policy.  
4.9.  The Tripartite Committee on the Economy (TCE), the National Economic and Social 
Development Council (NESDEC) and the Cabinet Committee on the Eco nomy (CCE) continue to 
provide general oversight and direction to trade policy formulation. These agencies act as 
intermediaries between the Executive and Parliament, and are the operative committees at the 
ministries level.  
4.10.  The engagement of civil societ y through specific forums and committees has been somewhat 
sporadic rather than systematic over the period under review. Merchandise exports are 
predominantly with the OECS and CARICOM, where the regimes are more defined and less onerous. 
It is also the ca se where the role of these bodies is still evolving and the long -term impact on trade 
policy development and implementation is yet to be realised. These have contributed to a less rigid 
consultative process than originally perceived. While this institution al framework would allow for 
greater private sector participation, initiative and innovation in the national effort, the need for 
continuous education on WTO related matters and potential opportunities within the various 
CARICOM bilateral and preferential markets cannot be overstated to achieve civil society buy –in.  
4.11.  Work is ongoing towards the development of a National Export Strategy which is intended to 
achieve the objective under goal 3 of the NESDP (2013 -2025) that speaks to reengineering economic 
growth. The current draft of the NES includes measures to address the following:  
• Revitalising the agricultural and fisheries sectors devastated by the cataclysmic event;  
• Stimulating growth in the tourism sector by increasing the room stock, attrac ting FDIs in 
this area, improving port facilities, attracting more international carriers and expanding 
and improving leisure sites;  
• Enhance the role of the private sector and manufacturing;  
• Develop the ICT services sector; and  
• Maximising the contribution  of the cultural industries to economic growth.  
4.2  Trade Regime  
4.12.  Saint Vincent and the Grenadines export -trade patterns could be easily mapped within 
concentric circles of trading arrangements. These concentric circles begin with the OECS, followed 
by other CA RICOM Members, mainly Barbados and Trinidad and Tobago and then 
Extra -Regional/Multilateral; which speaks mainly to the USA  and the UK.  
4.13.  The OECS is S aint Vincent and the Grenadines ' major export market followed by other 
CARICOM countries such as Trinidad and Tobago and Barbados. Goods produced within the OECS 
and CARICOM that meet the requisite Rules of Origin attract zero tariffs, except for products from 
the More Developed Countries that fall within the Article 164 category which attract 70.0% of the 
CET. WT/TPR/G/437 • OECS -WTO Members  
 
- 90 - 
 
 4.14.  The Customs and Excise Department is the State Agency with responsibility for issuance of 
Certificate of Origin and all matters relating to customs control in S aint Vincent and the Grenadines. 
The Customs (Control and Management Act 1999) is the legislat ive premise on which customs and 
excise matters are administered. In its attempts to meet its obligations to facilitate trade at the 
border, the Department encounters budgetary constraints, needs for human resource training and 
capacity building as a resul t of frequent staff turn -over; and modernization of some legal and 
regulatory instruments.  
4.15.  Since the last Trade Policy Review in 2014, the Customs and Excise Department established 
a website under the E -Government Programme, to ensure the ease of doing bus iness. Its automated 
data system was upgraded to ASYCUDA World. Partial implementation of post clearance audit and 
risk management procedures is currently in place. Further, a prepayment account system and the 
operationalisation of a point of sale system a re available to the trade facilitation process.  
4.16.  The Ministry of Agriculture, Fisheries, Forestry, Rural Transformation and Industry is 
responsible for plant and animal health protection. The Ministry must give prior approval before the 
issuance of import o r export licenses for those commodities. The Ministry of Health, Wellness and 
the Environment is responsible for food security and works in collaboration with the Ministry of 
Agriculture to effect border policies in this regard. Import and export licenses on a limited number 
of items are administered by the Ministry of the Public Service, Consumer Affairs and Sports.  
4.17.  The Import and export licensing regime is mainly for statistical purposes and are administered 
on an automatic basis. Imports of plants, live animals, meats and food products are inspected before 
crossing the customs border. Export licences are required for conchs, lobster, scrap metals and 
copper. These commodities are to protect for purposes of conservation in the case of conchs and 
lobsters a nd in the case of metals and copper to avoid pilferage Import and export licenses are 
granted by the Commerce and Consumer Affairs Division in the responsible Ministry, only after the 
expressed approval by the relevant competent authority . 
4.18.  Saint Vincent and the Grenadines became a signatory to the WTO Trade Facilitation 
Agreement (TFA) on January 09, 2017 and has submitted its notifications to the WTO under 
categories A, B and C of the Agreement. Efforts are being made to implement some of the mea sures 
at the sub -regional and regional levels. Limited technical and financial resources continue to be a 
challenge on the implementation of the Category C measures.  
4.19.  Saint Vincent and the Grenadines ' high exposure to natural disasters aforementioned in 
Section 2 above, particularly in the years 2020 and 2021, coupled with the negative impacts of 
exogenous forces, necessitated government 's direct intervention and support for critical sectors and 
overall livelihood of its people. Support programmes in agricu lture mainly for feeder roads and farm 
rehabilitation are currently being implemented to resuscitate this critical sector.  
4.20.  Businesses that had remaining years of support under the Fiscal Incentive Programme (FIP) 
were grandfathered to run their years of co verage. Enterprises benefiting from the grandfathered 
concessions do not have sustainable levels of export. There were no Enclave Industries and Capital 
Intensive Industries exporting from period 2014 -21. Post COVID -19 impacts were severe on the 
manufactur ing sector, particularly MSMEs operating in the various sub -sectors within the economy. 
This prompted the government to respond quickly to correct market failure by providing income 
support and assistance to vulnerable firms and groups within the sector. P rogrammes such as the 
PRYME Programme, CARCIP Program, Income Support to Agro -Processors; all provided the 
necessary one -off support to assist many SMEs to increase and sustain livelihoods and economic 
activities.  
4.21.  A number of legislative and policy initiat ives were designed to enhanced fiscal prudence, good 
governance and climate resilience. These measures included a Fiscal Responsibility Framework, laws 
related to tax administration, regulations governing the operations of state -owned enterprises, 
supervis ion of the contingencies fund, and new planning procedures.  WT/TPR/G/437 • OECS -WTO Members  
 
- 91 - 
 
  5  TRADING ARRANGEMENTS  
5.1  Regional Integration  
5.1.  Saint Vincent and the Grenadines operates within a concentric circle of regional integration. It 
is a founding member of the OECS which was established on  18 June 1981, by the Treaty of 
Basseterre. In 2011, the Revised Treaty of Basseterre was ratified by its six founding members and 
Montserrat (a  British Overseas Territory). Saint Vincent and the Grenadines enjoys a free trade area, 
sectoral coherence, mon etary union and trade policy harmonization with the other seven full 
members of the sub -region. The revised treaty created the OECS Economic Union, which entered into 
force in 2011.  The Economic Union established a single financial and economic space withi n which all 
factors of production, including goods, services, and people, move without hindrance. The common 
currency is the Eastern Caribbean dollar and the Eastern Caribbean Central Bank (ECCB) is the 
monetary authority of the sub -region . 
5.2.  Saint Vincent a nd the Grenadines is committed to the goals and ideals of the OECS which 
includes the building of institutions at the OECS level, the provision of shared services, and the 
growth in functional cooperation. The OECS integration process is a clearly defined mechanism from 
which the country 's wider integration is premised. In 2012, a Regional Integration and Diaspora 
Affairs Unit (RIDU) was established to facilitate the implementation of policies and programmes of 
the OECS and CARICOM. The Government has also appointed an OECS Commissioner who also 
serves as Ambassador to CARICOM and head of RIDU.  
5.3.  Saint Vincent and the Grenadines is a party to the Revised Treaty of Chaguaramas and has 
enacted legislation to bring the provisions of the Treaty and the  CSME  Regim e into full effect under 
domestic law. The country began implementation of the  CSME  Regime in 2006 and has since adapted 
legislation including the Caribbean Community (Free Movement of Skilled Persons Act) which 
provides for the movement of skilled nationa ls. 
5.4.  Saint Vincent and the Grenadines was one of the first Member State to implement the CARICOM 
Passport in June 2005 and has since adapted seven (7) approved categories under the Movement 
of Skilled Labour. As a result, there is no need for CARICOM nation als to apply for work permits in 
these specified categories noted below:  
• Graduates of all recognised Universities ; 
• Artistes ; 
• Musicians ; 
• Sportspersons ; 
• Media Workers ; 
• Nurses ; 
• Teachers . 
5.5.  Saint Vincent and the Grenadines like the rest of the OECS member states is designated as an 
Least Developed Country (LDC) within the Revised Treaty of Chaguaramas. This allows for a 
non-reciprocal status in trade agreements signed to date except the CARIFORUM -EU & CARIFORUM -
UK Economic Partnership Agreements. The challe nges faced by S aint Vincent and the Grenadines, 
highlight the need for the Caribbean Single Market and Economy (CSME) and the OECS Economic 
Union as viable economic and trade policy options in its thrust to integrate into the global economy. 
Earlier analys is has shown the critical roles that these regional initiatives play in the economic and 
political viability of SVEs like S aint Vincent and the Grenadines. In fact, it could be argued that the 
national security and viability of SVEs like S aint Vincent and the Grenadines  is hinged to the 
successful integration into these regional platforms.  WT/TPR/G/437 • OECS -WTO Members  
 
- 92 - 
 
 5.2  Bilateral and Hemispheric Trade Arrangements  
5.6.  Saint Vincent and the Grenadines is a signatory to five CARICOM bilaterals and except for the 
CARICOM -Columbia agreement has  a non - reciprocal status in each of these agreements. Thus, a 
high level of asymmetric market access to these third party markets is available to S aint Vincent 
and the Grenadines. Collaboration with CARICOM Member States is currently ongoing to further th e 
liberalisation process under most of these Agreements.  
5.7.  There are five CARICOM bilaterals currently in place;  
1. CARICOM - Columbia: A Trade, Economic and Technical Cooperation agreement signed 
24 July 1994;  
 
2. CARICOM  - Venezuela: A non -reciprocal preferenti al agreement in favour of CARICOM, 
signed 13 October  1992;  
 
3. CARICOM - Dominican Republic: A free Trade Agreement signed in August 1998 and 
provisionally entered into force on 1 December  2001;  
 
4. CARICOM - Cuba: A Trade and Economic Cooperation Agreement sign ed in 2000 with an 
additional protocol enabling provisional application signed on 8 December  2002;  
 
5. CARICOM - Costa Rica: A Free Trade Agreement signed March  2004 provides for duty free 
treatment for all goods except for a list of products on which MFN tre atment is maintained.  
 
5.8.  Saint Vincent and the Grenadines signed the CARIFORUM -EU Economic Partnership Agreement 
(EPA) on 15 October  2008. This agreement was the first of its kind between the ACP and the 
European  Union. The agreement was ratified by S aint Vincent and the Grenadines and is being 
provisionally applied. S aint Vincent and the Grenadines is committed to a gradual reduction of its 
tariff lines with the EU in keeping with its regional integration and economic cooperation with its 
OECS and CAR ICOM partners as enshrined in the objectives of the EPA agreement. Some 
administrative and legislative measures are outstanding albeit that S aint Vincent and the Grenadines  
has administratively implemented and legislatively completed phases of the tariff r eductions. The 
EPA is based on the principle of reciprocity, albeit, asymmetric reciprocity. This asymmetry of 
commitments is reflected in market access, the MFN provisions, trade defence measures and 
development cooperation.  
5.9.  The CARIFORUM –UK Agreement ent ered into force on 1 January  2021 in S aint Vincent and the 
Grenadines, after its signing on 22 March  2019 and subsequent notification to the WTO on 
31 December  2020. The provisions of the agreement and the negotiated schedule  closely follow 
commitments of the EPA.T he Government of S aint Vincent and the Grenadines is working with other 
CARIFORUM States and the United  Kingdom to preserve market opportunities for trade in goods, 
services and investment.  
5.10.  The United  Kingdom is a significant trading partner for S aint Vincent and the Grenadines. 
Agricultural produce is the main exports from Saint Vincent and the Grenadines to the 
United  Kingdom.  
5.11.  Over the years, products originating in Saint Vincent and the Grenadines has benefitted from 
preferential access to the United States and Canadian markets under the Caribbean Basin Initiative 
(CBI) and CARIBCAN respectively. Recent trade data has shown an uptake in exports to these 
markets as a result of improved air connectivity between S aint Vincent and the Grenadines and  
these markets.  
5.12.  Market opportunities are also available under the GSP schemes. These preferential market 
access are yet to be exploited and currently remains best endeavours for S aint Vincent and the 
Grenadines except for USA, Canada and the UK which are traditional trading partners and where air 
and sea access are more available.  WT/TPR/G/437 • OECS -WTO Members  
 
- 93 - 
 
  5.3  Multi - Lateral Framework: The WTO and the Uruguay Round  
5.13.  Saint Vincent and the Grenadines has been a WTO member since  1 January  1995 and  a 
member of the General Agreement on Tariff and Trade (GATT) since 18 May 1993. Since 2001, the 
trade policy of S aint Vincent and the Grenadines has undergone substantial changes, in response to 
regional and international developments, and as a result has become more open and transparent 
and WTO compliant.  
5.14.  Prior to 2001, the S aint Vincent and the Grenadines  trade policy placed much effort on trade 
in goods as part of an import substitution strategy and policy prescription for promoting economic 
development.  The strategy was implemented through a system of tariffs and non –tariff measures 
designed to enable the manufacturing and agricultural sectors to become internationally competitive. 
Within the middle of the first decade of the 21st century, the economy ha s seen constant movements 
towards a service oriented economy. On average, service accounts for 73.5% of GDP throughout 
the review period.  
6  THE WAY FORWARD  
6.1.  Saint Vincent and the Grenadines, like its other OECS Member States, has an open economy 
where its rev enue source is mainly from international trade. The unrestricted foreign exchange 
regime allows for easy flow of capital, thus facilitating foreign direct investments. Its GDP data shows 
that its international trade is trending towards trade in services pa rticularly with the USA. The 
Government is therefore committed to creating the enabling environment that facilitates the flow of 
goods, services and investments in line with the objectives in the NESDP 2013 -2025.  
6.2.  Accordingly, the Government of S aint Vincen t and the Grenadines has outlined a number of 
initiatives to provide the appropriate enabling environment necessary for economic growth and 
development.  
• The Digital Transformation Project is being implemented  (2022 -2024)  to create a digital 
enabling enviro nment; build digital government infrastructure, platforms and services; 
and enable digital skills and technology adoption.  This will make E -Government and 
E-commerce platforms available when conducting business with state agencies.  These are 
aimed at filli ng structural gaps and place citizens, businesses and clients at the centre of 
the transformation process ; 
• Over 95 % of our total territory is located in the seas beyond our coastline. The regulation, 
conservation, and protection of our marine space and eco systems are of paramount 
importance. The Government is attracting investments with local as well as international 
investors through a Public -Private Partnerships (PPP) programme to enable a more 
regulated and conservatory mining of marine resources. Unders tanding the increasingly 
intense impacts of climate change and its effects on the economy and livelihood of many 
families, pursue with greater urgency for investments and initiatives in green development 
and climate -resilient infrastructure ; 
• Through the ro admap of the National Energy Action Plan developed renewable energy 
sources to provide for heat (solar thermal, biomass) and electricity (wind, geothermal, 
hydro, and solar) and possibly fuel (biomass). Those resources can cover larger shares of 
the energy  needs as this is presently not taking place. While the use of hydro power for 
electricity generation has a long -standing tradition, the active usage of solar energy for 
hot water production is of recent nature. Both technologies are mature and competitive ; 
• The gradual transfer to solar, hydro and geothermal production to drastically reduce 
reliance on fossil fuel thus reducing energy cost to the consumers and the productive 
sector of Saint  Vincent and the Grenadines. Each year, approximately 7 million gall ons of 
diesel is imported to generate electricity. S aint Vincent and the Grenadines, building on 
the National Action Plan, continue further exploration for geothermal energy to reduce 
reliance on fossil fuels to generate energy ; 
• Over one -third of the total  preliminary estimates of loss and damage from the volcano was 
borne by our agriculture sector. The "Agri -Export Strategy Initiative"2017 -2019 is WT/TPR/G/437 • OECS -WTO Members  
 
- 94 - 
 
 currently being fast tracked to stimulate private sector investments in the agriculture, 
fisheries, forestry a nd manufacturing sectors aimed at reducing the food import bill and 
drive export -led growth in manufacturing, agricultural and fisheries commodities and 
products.  
• The Government of S aint Vincent and the Grenadines is committed to create an 
investment climat e conducive to domestic and foreign investment that generates positive 
effects for the domestic economy aimed at developing a globally competitive, resilient 
service -oriented and knowledge -based S aint Vincent and the Grenadines that also 
maximizes tourism value -added, is prosperous and within which every citizen can expect 
to lead a fulfilling life.  To achieve these goals, the Government of S aint Vincent and the 
Grenadines, in collaboration with the IADB in 2022 produced the Final Report on 
"Improving the Business and Investment Climate in Saint  Vincent and the Grenadines "; 
• In late 2021, the Government operationalised "The Fiscal Responsibility Framework": A 
rules-based fiscal framework for S aint Vincent and the Grenadines that analyse and re port 
on compliance levels with its fiscal rules. Significant reforms procurement legislation and 
procedures aimed at improving the functioning of the Tenders Board, the manner in which 
contracts are awarded, and the efficiency of State acquisition of goods  and services ; 
• In terms of international connectivity, S aint Vincent and the Grenadines recognised that 
international connectivity is crucial to increase the country 's competitiveness in two 
directions: (i)  to compete internationally; and (ii) the competit iveness of the country itself 
to attract foreign investment. Against this backdrop, the Government of S aint Vincent and 
the Grenadines (GOSVG) has partnered with Grenada and S aint Lucia to increase access 
to quality and affordable ICT services ; 
• Efforts tow ards the implementation of the Trade Facilitation Agreement include focuses 
mainly at the Customs and Excise Department which include implementation of HS  2022, 
full implementation of the Post Clearance Audit and Risk Management Units, simplified 
customs p rocedures, improved legal and regulatory frameworks to take into consideration 
the CARICOM Harmonized Customs legislation, Kyoto Convention and the WTO Trade 
Facilitation Agreement, an Electronic Single Window and establish a De minimis value for 
non-comme rcial courier shipments.  
6.3.  A return to 2019 levels of development and economic activity are insufficiently -ambitious goals. 
Specific areas for future development and focus, especially in the agricultural sector, include but are 
not limited to, increased prod uction and processing for export of root crops, marine products and  
medicinal cannabis. In addition, there is the preparation for infrastructure reconstruction which is 
critical to accessing farm lands.  
6.4.  The economy of S aint Vincent and the Grenadines is sl owly recovering from the traumas of 
recent years and is seeking to build strategic relationships with partners, organizations and 
countries. This is cognizant of the strong ideals of regionalism, multilateral cooperation and 
internationally recognised demo cratic principles through which all can participate equitably in a 
thriving society.  
 
__________