RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/190/LCA 
1 October 2007  
 (07-3991) 
Trade Policy Review Body Original:  English 
  
 
   
 
TRADE POLICY REVIEW 
 
Report by 
 
SAINT LUCIA 
 
   
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Saint Lucia. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
 session of the meeting of the Trade Policy Review Body on Saint Lucia. Saint Lucia WT/TPR/G/190/LCA 
 Page 3 
 
 
CONTENTS 
  Page 
 
I. INTRODUCTION 5 
II. MACRO-ECONOMIC ENVIRONMENT AND TRADE PERFORMANCE 5 III. TRADE POLICY AND INSTITUTIONAL FRAMEWORK 9 
IV. REGIONAL INTEGRATION – THE ESTABLISHMENT OF THE SINGLE MARKET  
AND ECONOMY (CSME) 11 
V. BILATERAL/HEMISPHERIC AND PREFERENTIAL TRADE ARRANGEMENTS 12 
VI. MULTILATERAL FRAMEWORK – THE WTO AND THE URUGUAY ROUND  
AGREEMENTS  13 
 
  Saint Lucia WT/TPR/G/190/LCA 
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 I. INTRODUCTION 
1. Saint Lucia is a founding member of the Organization of Eastern Caribbean States (OECS), 
located between the islands of Martinique to the nor th and St. Vincent to the south.  The island has a 
population of 166,838 persons and an overall land area of 616 sq. km. of which 539.1 sq. km. is 
habitable.  The island’s topography consists of a central backbone of mountains intersected by valleys 
and short rivers and a narrow coastal plain.  Ther e are two major seaports capable of berthing ocean 
going cargo vessels and two airports; a regional airport in  the north and an international airport in the 
south. 
2. Saint Lucia’s ability to take full advantage of in ternational trade agreements, to which it is a 
signatory, is limited by size and capacity to compete e ffectively in a liberalized trading system such as 
the WTO.  As a small country, St. Lucia has a mini scule domestic market with very low levels of 
economic activity.  The country faces structural disadvantages relative to larger economies as it is unable to benefit from economies of scale which would be essential in achieving regional and 
international competitiveness in the production of goods and services. 
3. Saint Lucia without representation in Geneva  is further handicapped and cannot bring its 
several positions on the various Doha Round Issues to the attention of the committees as they meet. 
Our position on the Agreement on Agriculture, Smal l Vulnerable Economies (SVEs), Subsidies and 
Countervailing Measures and on Trade in Services, a ll appear to fall on deaf ears as there is no one 
present to plead our cause.  While there had been of late a Technical Office in Geneva manned by two OECS officials, it would appear that the current economic situation on the home front does not auger 
well for its future. 
4. The absence of natural resources compound economic difficulties as efforts at economic 
diversification are stymied and the country is forced  to continue to rely on a few economic sectors, 
which in the main provide some form of employment for the young population. 
5. The size of the labour force is also constrained by a small population.  Inadequate levels of 
labour (supply) contribute to the relatively undivers ified structure of the economy.  This problem is 
compounded by the varying levels of education and the paucity of opportunities at tertiary level and 
beyond.  Overseas training is expensive and the br ain drain of skilled workers from the country is 
among some of the other contributors to the labour problem. 
6. Saint Lucia is also a member of the wider CA RICOM Community where it is afforded (along 
with other member states of the OECS) Less Developed Country (LDC) status.  As an LDC 
Saint Lucia does not have to reciprocate in any of the negotiated preferential positions in market 
access, relating to Bilaterals signed between CA RICOM and its Latin American and CARIFORUM 
neighbours, thus allowing for some trading flexibility within the sub-region. 
II. MACRO-ECONOMIC ENVIRONMENT AND TRADE PERFORMANCE 
(i) Macroeconomic Performance 
7. Over the review period 2001-2006 the Saint Lucia economy grew at an average rate of 
2.43 per cent.  This period of modest but encour aging economic growth in real GDP was capped by 
strong growth of 5.41 per cent in 2006 marking th e fifth consecutive year of economic expansion 
since the contraction and economic downturn of 2001.  To a large extent and in 2006 in particular, 
this expansion in the level of  economic activity was driven by increased economic activity in 
construction (13.2), transport (14.73) and government services sectors (9.79 per cent), respectively.  WT/TPR/G/190/LCA Trade Policy Review 
Page 6 
 
 
 Notably government and private sector investme nt in infrastructure (mainly roads and hotel 
accommodation) associated with Saint Lucia’s hosting of the 2007 Cricket World Cup (CWC) provided the main stimulus to the economy in 2006. 
8. Saint Lucia’s economy has undergone a degree of st ructural change in terms of the relative 
importance of its key economic sectors.  In this re gard the share of services (led by tourism) in the 
economy has increased over the review period wh ile the key productive sectors, agriculture and 
manufacturing declined as a whole, resulting in the emergence of a services-oriented economy. Nonetheless, in light of its well known vulnerabiliti es to natural and external factors, Saint Lucia 
continues to pursue a macroeconomic strategy aime d at a creating a diversified and more resilient 
economy based not only on services but also on agriculture and manufacturing. 
(ii) Trade and Sectoral pattern 
Agriculture 
9. More specifically the agricultural  sector on average contracted by about 9 per cent over the 
review period due mainly to a net decline in out put in the banana industry between 2001 and 2006.  
As a result the share of agriculture  in GDP averaged 4.4 per cent comp ared to 8.6 per cent in the last 
review period, six years earlier.  However, the sect or showed signs of slow recovery in 2006 driven 
mainly by a 13.3 per cent rebound in banana output (33,982 tonnes).  This has been credited to a number of factors including favourable weather conditions and the positive impact of earlier 
interventions by government in streamlining and redi recting production in the banana industry (as is 
evident with increased EUREP-GAP compliance and pa rticipation in the Fair Trade Organization) 
among other confidence-building initiatives. 
Manufacturing  
10. Meanwhile the contribution of the manufacturi ng sector over the current and previous review 
periods (spanning twelve (12) years) remained rela tively flat, hovering around the 8 per cent level. 
Over much of this period Saint Lucia’s main manufactured products have been processed foods, 
beverages, paper and electrical products.  However, even with growth of 6.7 per cent in 2006, the 
share of manufacturing activity in GDP fell to 6. 8 per cent indicating a contraction of the sector. 
Nonetheless, the policy intent of the government of Saint Lucia is to persevere with the manufacturing 
sector by providing technical and institutional supp ort with a view to enhancing productivity and 
improving its export/international competitiveness. 
Tourism  
11. In contrast the share of tourism (as measured by hotels and restaurants) has shown a steady 
increase in the share of the economy accounting fo r an average of 12.6 per cent between 2001 and 
2006.  However, despite the confidence implied by th e significant investment in the tourism sector in 
the preparation for the CWC 2007, value-added in th e sector showed a contraction of an estimated 
2.7 per cent.  As a consequence the share of t ourism in GDP fell to 12.4 per cent from 13.5 in 2005. 
This decline has been attributed to an overall dr op in stay-over arrivals of 4.9 per cent due in 
particular, to airlift and marketing challenges as well as the adverse impact of rising oil prices on 
travellers from the Caribbean region and Europe (mainly U.K.). 
12. Nonetheless the tourism sector continues to be the lead sector and engine of growth in the 
Saint Lucian economy, as it continues to attract significant investment with ongoing expansion of the island’s room capacity.  Notwithstanding, government development strategy in the sector is based on Saint Lucia WT/TPR/G/190/LCA 
 Page 7 
 
 
 maximizing the socio-economic benefits through increased local participation and enhanced 
intersectoral linkages as well as the development of new products and attractions in a sustainable and 
competitive manner. 
Financial Services  
13. The financial services sector represents another sect or which recorded an increase in its level 
of economic significance over the review period with consistent growth of 4.75 per cent on average. 
As a result this sector has grown to a double-di git share of the national economy, 10.9 per cent 
compared to 9.2 per cent over the corresponding period in the previous review.  It must be noted 
however, this spurt in growth was not driven by the offshore or international financial services (IFS) 
sector but mainly by credit expansion and ot her related activity in the local economy. 
Services – Other 
14. A number of “ other ” or new economic sectors have grown in prominence in Saint Lucia’s 
economy over the review period.  In this regard th e share of the Communications sector (in particular 
telecommunication services) in GDP has increased on average by over 2 percentage points compared to the previous review period.  This is largely re flective of government’s efforts at liberalization and 
the dismantling of former monopoly arrangements in the sector. 
General 
15. Notwithstanding significant increases in the aver age price of food, housing and fuel (and 
lighting), and the inherent heightened inflationary ex pectations due to rising oil prices the average rate 
of inflation over the period 2001-2006 remained in single digits at 2.3 per cent as compared to 
2.7 per cent over the previous review period.  Infl ation in 2006 coincided w ith this trend rate of 
2.3 per cent down from 3.9 per cent in 2005.  In like manner this was attributed to increases in 
international commodity prices in particular incr eases in the price of food items and construction 
materials and the upward pressure of rising oil prices on production and transportation costs. 
16. Fiscal policy is the main policy variable availa ble to government to pursue its macroeconomic 
objectives.  As a consequence prudential fiscal targ ets in conjunction with  growth prospects are 
foremost amongst government’s co re macroeconomic targets.  These benchmark fiscal targets which 
are largely enunciated in the annual budget address, are developed by the Eastern Caribbean Central 
Bank (ECCB ).  More recently these targets have been deve loped and incorporated in a Structural 
Adjustment and Technical Assistance Progra mme (SATAP) under the aegis of the ECCB. 
17. However, even in the face of a 12.1 per cent in crease in tax revenue in the last fiscal year 
2006/2007 and a healthy current surplus (4.2 pe r cent of GDP), the fiscal position of central 
government showed some deterioration with an overa ll deficit equal to 6.6 per cent of current GDP in 
2006.  This was due to an 11 per cent expansion in  its capital expenditure programme.  Against the 
backdrop of such developments, on the expenditure -side government aims at maintaining acceptable 
fiscal balances through prioritization of capital spe nding and prudent debt management in conjunction 
with its Public Sector Investment Programme ( PSIP).  On the revenue-side a number of initiatives 
ranging from improved revenue collection to ta x reforms aimed at lowering fiscal/revenue 
dependence on trade taxes are currently being considered or implemented. WT/TPR/G/190/LCA Trade Policy Review 
Page 8 
 
 
 (iii) Trade Environment, Patterns and Performance 
18. A noted feature of the review period has b een the widening external gap as the current 
account deficit on the Balance of Payments incr eased steadily from EC$296.02 million or 16 per cent 
of GDP in 2000 to an estimated EC$781.91 million in  2006 (or approximately 31.3% of GDP).  More 
pointedly Saint Lucia’s current account deficit grew  at an average of 25.5% per annum between 2001 
and 2006 underscoring the high import propensity and external dependence of the island.  This 
worsening of the current account balance has been  mainly driven by a growing merchandise trade 
deficit as imports far outpaced exports.  Although other balances such as the services account and net 
current transfers from abroad, incl uding remittances continue to be positive, these have proven to be 
insufficient to offset the negative balances on the incomes-from-abroad and merchandise trade 
accounts. 
19. Saint Lucia’s main exports and principal forei gn exchange earners continue to be tourism 
services mainly travel manufactured goods (mainl y beverages, processed foods, paper products and 
assembly-type electronic products) and primary commod ities mainly bananas.  In keeping with this 
narrow range of exports Saint Lucia’s pattern of trade is such that its exports are also concentrated in 
three (3) main markets namely the United Kingdom , the United States and CARICOM in that order.  
Nonetheless, driven by increased production in the banana sector, total export receipts in 2006 is 
expected to have improved over 2005 in spite  of the decline in the tourism sector. 
20. Despite, the downward trend in performance in Saint Lucia’s exports, arising mainly as a 
result of erosion of its preferential market access,  government in collaboration with various regional 
and international partners/stakehol ders, continue to provide signifi cant institutional and technical 
support to the private sector with the aim of boosting export performance and competitiveness.  These 
initiatives take various forms including small a nd medium enterprise development programmes in 
conjunction with the OECS Export Development Un it and Government of Sa int Lucia’s own Small 
Enterprise Development Unit (SEDU) among others. 
21. In contrast, as an import-oriented economy,  Saint Lucia’s imports though wide ranging and 
varied have been dominated by consumer goods which on an average accounts for 54.3 per cent of 
imports.  However it is worth noting that there has been a slight increase in the share of intermediate and capital goods in Saint Lucia’s imports over the past six years. 
22. As a member of the Eastern Caribbean Cu rrency Union (ECCU) Saint Lucia maintains a 
fixed exchange rate regime with its currency pegg ed to the USD.  Despite the inherent pressures 
placed on the availability of foreign exchange by  a deteriorating current account, Saint Lucia has 
since October 2006 taken further steps to liberali ze its foreign exchange regime by removing the 
previous limit of EC$250,000.00 on foreign exchange transactions.  This reform in its foreign 
exchange regime has been brought into force through an amendment to the Exchange Control 
Suspension Order No. 165 of 2006 section 32 (3).  [S ee Cap. 15.15 of the 2006 edition of Revised 
Laws of St. Lucia] refers. 
23. Much of Saint Lucia’s trade arrangements are designed and conducted within the framework 
of the Caribbean Common Market (CARICOM).  In terms of its trade agreements Saint Lucia through 
its membership in the Organization of Eastern Caribbean States (OECS), Caribbean Common Market 
(CARICOM) and the ACP group of countries particip ates in a number of bilateral and multilateral 
agreements.  More specifically Saint Lucia currently participates in four preferential trade agreements 
one with each of its principal trading partners: Saint Lucia WT/TPR/G/190/LCA 
 Page 9 
 
 
 (a) CARIBCAN with Canada 
(b) The Caribbean Basin Trade Partnership Act (CBTPA) which replaced the CBI 
agreement with the United States of America 
(c) The Cotonou Agreement with EU (U.K.). 
(d) CARICOM 
24. Given that the Cotonou Agreement allows for the negotiation and establishment of WTO-
compatible trade arrangements, Saint Lucia is  currently engaged in negotiating an Economic 
Partnership Agreement (EPA) with the EU in conjunction with the other CARIFORUM Member 
States.  Through CARICOM, Saint Lucia has also b een a signatory to five Hemispheric Bilateral 
Trade Agreements with the Governments of Cuba , Dominican Republic, Venezuela, Columbia and 
Costa Rica.  In these agreements Saint Lucia’s status as a CARICOM LDC is respected and the 
Country is not expected to reciprocate any Ta riff Concessions granted to the More Developed 
Members of CARICOM as negotiated under th e terms and conditions of these treaties. 
III. TRADE POLICY AND INSTITUTIONAL FRAMEWORK 
(i) Elements of Saint Lucia’s Trade Policy 
25. Despite the difficulties experienced in a liber alized trading environment, Saint Lucia 
continues to promote trade in Agriculture, Manufacturing and Services. 
26. With dwindling fortunes in Agriculture as a re sult of a combination of the withdrawal of 
preferences in Europe and adverse decisions from the WTO Dispute Settlement Body (DSB), 
Saint Lucia has found it necessary to diversify into Tr ade in Services, with Tourism becoming one of 
the leading sectors. 
27. In its drive towards Poverty Alleviation, th e Government of Saint Lucia in its 2007/2008 
Budget identified “five geographic regions with a view to bridging the divide and stimulating 
economic activity throughout the length and breath of the country. 
28. Activities in these regions will be designed ar ound Tourism products, new and old, ICT parks 
to capitalize on the skills base of our younger populace, and innovations in Agri culture coupled with 
new supporting facilities to promote aquaculture , hydroponics and tissue culture propagation. 
29. Saint Lucia takes its obligations in the OECS and CARICOM quite seriously and tries within 
its limited resources to be WTO compatible.  Th e economy is small both in terms of population and 
land mass.  This means that the island is disadvantag ed in market size and is also vulnerable to both 
natural disasters and external economic shocks.  Sa int Lucia also fully supports the CARICOM Single 
Market and Economy (CSME).  It is believed that the CSME will lead to gr eater transparency and 
competition within the community. 
30. In is drive to attract valuable investment oppor tunities, the Government of Saint Lucia offers 
incentive packages to potential investors, both domestic  and foreign for up to 15 years.  Without these 
investment opportunities, most of the firms currently  operating in Saint Lucia and contributing to the 
employment pool would have gone elsewhere. 
31. Saint Lucia has also tried since 2001, to ame nd its laws towards creating a more enabling 
environment for businesses to thrive. WT/TPR/G/190/LCA Trade Policy Review 
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 32. Since 2003, Saint Lucia has amended the Income Ta x Act to allow for a fl at charge on taxable 
incomes of both foreign and domestic companies, a rate of 30%.  Individuals are taxed on a sliding 
scale of 10% - 30% depending on taxable income leve ls.  These rates apply equally to residents as 
well as non-residents. 
33. In its notification of Specific Commitments unde r the GATS, Saint Lucia advised that it has 
reserved a number of small business opportunities for nationals. 
34. In 2001 the National Development Corporation Act of 1971 (NDC) was repealed to create the 
necessary authority to allow the NDC to act a “one  stop shop” for investors, without prejudice to 
nationality. 
35. Upon  expiration of the Memorandum of Unde rstanding (MOU) between the Government of 
Saint Lucia and Cable and Wireless on May 20th, 2004, full liberalization of the telecommunications 
sector came into effect, cancelling restricti ons on investment in that area of services. 
36. Pro-competition reforms in the telecommunications sector facilitated by the establishment of 
a common regulatory framework within the OECS s ub-region resulted in the entry of a new service 
provider into the St. Lucian market. 
37. The Government of Saint Lucia works clo sely with the productive sectors and provides 
external representation to address emerging trade disputes within budgetary limits. 
38. Changes in the external trading environment ar e monitored and the private sector is advised 
of the challenges presented as a result. 
39. Government also provides technical assistance at sector and firm levels for small and medium 
businesses through the Ministry of Trade, Industry and Commerce.  Government also undertakes 
Marketing and Trade Promotion activities at Do mestic, Regional and In ternational levels. 
40. The Government of Saint Lucia, together w ith the private sector has jointly developed a 
National Export Development Strategy (SLNEDS).  The Strategy is a five year sectoral plan that sets 
out discrete actions, allocates resources and sp ecifies responsibility for the pursuit of national 
development goals through the diversification a nd expansion of exports.”   However owing to 
budgetary constraints the plan is still to be implemented. 
(ii) Institutional Framework 
41. As at December 2006, there has been a rati onalization of the portfolios and mandates of 
Government Ministries, resulting in the merger of the work programme of the Trade and Legal Unit 
of the Ministry of External Affairs and Intern ational Trade with the Ministry of Commerce. 
42. The inclusion of the Trade and Legal Unit (p reviously responsible for external trade 
negotiations) into the Ministry of Trade, Industr y and Commerce has placed responsibility for the co-
ordination and formulation of Trade and Commerce policies within the ambit of a single government 
entity. 
43. Economic policy formulation, including trade policy, begins in the various Government 
Ministries.  These policies are presented as plans and are costed and approved, before they are 
incorporated in the National Annual Budget.  De tails of these plans are found in national policy 
planning instruments in the respective Ministries and in the Medium Term  Economic Strategy Plan. Saint Lucia WT/TPR/G/190/LCA 
 Page 11 
 
 
 44. Economic policy formulation, including trade polic y formulation is also informed by agreed 
obligations ratified by Heads of Government at CARICOM and OECS Council Meetings.  The 
integration of trade policy into overall economic po licy at national level is  achieved through these 
processes. 
45. Since 2001 Saint Lucia’s trade policy harmonization has been through the following 
institutional mechanisms: 
The Saint Lucia Council on External Trade  
46. The Council on External Trade was re-activated by Cabinet decision to function as the main 
advisory body to the Government on the formula tion and implementation of international trade 
policies.  The composition of the Council reflects broad representation across Public Sector, Private 
Sector, Civil Society, NGOs and Statutory Agencies; it is believed that with re newed interest in trade 
issues, tangible benefits will emerge. 
The Inter-ministerial Committee 
47. The Interministerial Council discusses all importa nt trade issues from all negotiating spheres 
and meetings of the CARICOM Council on Trade and Economic Development (COTED) as well as 
implementation issues related to the CARICO M Single Market and Economy (CSME).  The 
composition of the Inter-ministerial Council includes Government Ministries and Statutory Agencies and Private Sector Trade and Commerce related organizations. 
OECS Technical Mission 
48. The establishment of the OECS Technical Missi on and its permanent presence in Geneva has 
enabled and ensured that Saint Lucia and the other OECS Member States have greater and more 
visible representation at WTO meetings.  We ha ve observed a significant improvement in the 
dissemination of information, netw orking between capital and Geneva has been enhanced, enabling us 
to better table our positions on impor tant matters and to actively enga ge in the negotiations process 
along with other alliance groupings on multilateral issues. 
49. Although our ultimate goal is to thrive for full representation in Geneva despite being 
handicapped by limited resources, we are satisfied to  date with the assistance and advice passed on to 
us from time to time by the OECS Technical Mission. 
50. Given the financial difficulties currently being e xperienced that may result in the closure of 
this office, we cannot help but reflect on th e forward strides we have made towards WTO 
compatibility, simply on the basis of timely dissemination of information and our ability to act on 
same.  Closure will not only result in us becoming shut out from the debates as they happen, but the 
entire OECS States will slump into another long dark age and will not be reactivated until some 
accommodation can be made. 
IV. REGIONAL INTEGRATION – THE ESTABL ISHMENT OF THE SINGLE MARKET 
 AND ECONOMY (CSME) 
51. On August 17, 2004, (No 12 of 2004), Saint Lucia enacted the Revised Treaty of 
Chaguaramus into domestic law, establishing the ground work for the creation of the CSME, 
signifying Saint Lucia’s firm commitment to region al integration and the Caribbean Community.  As 
early as 1999, Saint Lucia had implemented Phase 4 of the Common External Tariff (CET). WT/TPR/G/190/LCA Trade Policy Review 
Page 12 
 
 
 52. To give effect to the provisions of the tr eaty, Saint Lucia also enacted the Caribbean 
Movement of Factors Bill No. 21 of 2006, The Ca ribbean Regional Organization for Standards and 
Quality Bill No 20 of 2005, Double Taxation Agreement S.I. 195 of 2000, among others. 
53. As at July 1, 2006, The CARICOM Single Market became operational with the Single 
Economy expected to be in place during 2008.  However to give full effect to the treaty the 
Harmonization of certain laws and the legislati on of regulations, such as; Competition Policy, 
Customs Regulations, Consumer Protection, Banking  and Securities and Sanitary and Phytosanitary 
Measures, are still to be enacted. 
54. Transition however appears to be seamless, desp ite the absence of administrative structures 
and procedures in some important areas, particul arly accreditation and the free movement of natural 
persons. 
ORGANIZATION OF EASTERN CARIBBEAN STATES (OECS) 
55. It is extremely difficult for us to survive as sma ll disjointed island states in the global market.  
If we are to maintain a competitive edge in tho se disciplines where we have some capacity, it is 
essential that we forge alliances with like minded smal l island developing nations in the pursuit of our 
goals.  Therefore we have began the process by deep ening the already existing relationship, closer to 
home, with the other member states of Organization of Eastern Caribbean States, (OECS). 
56. The Treaty of Basseterre was signed in 1968.  Duri ng that period we have been able to pool 
our resources and work in the interest of our citizens on several fronts, among which a common judiciary, a regional central bank, a regional civ il aviation authority and pharmaceutical procurement 
body, stand out. 
57. After thirty-nine years, we must now seek to forge a closer relationship through an Economic 
Union between our member states.  Plans are at an advanced stage and very soon a draft treaty will be 
put before the citizens of the sub-region for cons ultation.  Hopefully, the process will not be unduly 
protracted and the Union will come into being before our next Trade Policy Review. 
V. BILATERAL/HEMISPHERIC AND PREF ERENTIAL TRADE ARRANGEMENTS 
58. Saint Lucia is a member of the Caribbean Community and Common Market, which has to 
date concluded five bila teral Trade agreements: 
1. C
ARICOM - COLUMBIA :  a Trade, economic and Technical Cooperation agreement 
signed July 24, 1994.  Originally a non-reciprocal preferential agreement in favour of certain products from CARICOM.  An amending Protocol in 1998 allowed for 
additional preferential access to CARICOM in exchange for a limited number of 
products from Columbia. 
2. C
ARICOM - VENEZUELA :  a one-way partial scope agreement in favour of C ARICOM ; 
signed October 13, 1992.  In 1998 Venezuela requested CARICOM to provide reciprocal preferential access similar to that granted to Columbia.  The two sides have 
agreed to engage in discussion on the pr oblems encountered by CARICOM exporters.  
In the meantime, CARICOM is consulting on the possible products from Venezuela 
for which it would be prepared to grant reciprocal preferential access. Saint Lucia WT/TPR/G/190/LCA 
 Page 13 
 
 
 3. C ARICOM - DOMINICAN REPUBLIC :  A free Trade Agreement signed in August 1998 
and provisionally entered into force December 1, 2001.  The CARICOM LDCs, 
including Saint Lucia, were not expected to reciprocate.  However, the agreement 
provides for a review at the end of 5 years.   While the free trade agreement focuses on 
trade in goods, provision has also been made  for investment and trade in services to 
be negotiated. 
4. C ARICOM - CUBA:  Trade and Economic Cooperation Agreement signed in 2000 with 
an additional protocol enabling provisiona l application signed on December 8, 2002. 
The agreement is being provisionally applie d between Cuba and those member States 
that have completed internal procedures to give it effect.  Saint Lucia is yet to 
complete its internal procedures. 
5. C ARICOM - COSTA RICA:  A Free Trade Agreement signed March, 2004.  The 
agreement provides for provisional application between any CARICOM member State and Costa Rica once Costa Rica had ratified the agreement and any member state has completed internal procedures to give it effect.  In keeping with the 1995 
decision of CARICOM Heads of Government (16th Conference of Heads of 
Government), Saint Lucia, being a CARICOM LDC, does not have to reciprocate. 
59. CARIBCAN: a multilateral preferential scheme betw een Canada and the Commonwealth 
Caribbean.  Beginning June 15, 1986, the Comm onwealth Caribbean enjoyed duty free access to the 
Canadian market for most commodities originating in the Commonwealth Caribbean.  This agreement 
was subject to WTO waiver, expiring in December 2006.  The Canadian Government has secured an 
extension which will now expire in 2011.  Discuss ions towards the negotiation of a Free Trade 
Agreement between Canada and CA RICOM have been ongoing since 2001. 
60. Cotonou Agreement:   Saint Lucia is beneficiary to th e commitments of the Lomé convention 
and its subsequent updates and m odifications.  Lomé expired in February 2000 but was replaced with 
the Cotonou Agreement (CA) which was ratified by Sa int Lucia in January 2002.  The CA has a life 
span of twenty years and contains a clause for re vision every 5 years.  The trade preferences under 
Cotonou are however contingent on a WTO waiver sch eduled to expire December 31, 2007.  The 
Cotonou Agreement therefore provides for the entry into force of Economic Partnership Agreements 
with the European Communities by January 1, 2008.  Accordingly, Saint Lucia is negotiating the EPA with the EC as part of the CARIFORUM region. 
VI. MULTILATERAL FRAMEWORK – THE WTO AND THE URUGUAY ROUND 
 AGREEMENTS 
(i) Implementation of the Uruguay Round Agreements 
61. Saint Lucia, albeit a small island developing state, limited by size and capacity to compete 
effectively, has to participate forcibly in the liber alized trading system.  Over the last eight years, 
St. Lucia has undergone major structural chang es from a primarily agricultural mono-crop economy 
with a growing population and high unemployment , to a diversifying economy with emphasis on the 
services sector.  In order for St. Lucia to take full advantage of the multilateral trade agreements to 
which it is a signatory;  St. Lucia must continue to accelerate its efforts at diversifying its economy with emphasis on higher value-added services.  In order to do so however, St. Lucia must be allowed 
to liberalize only at a pace consistent with its  ability to direct and own its development. WT/TPR/G/190/LCA Trade Policy Review 
Page 14 
 
 
 62. St. Lucia has no specific Uruguay Round legislation, but many of the WTO Agreements have 
been incorporated into domestic law in a number of Acts of Parliament and various Regulations.  
Since 2001, the trade policy of St. Lucia has undergone  substantial changes, in response to regional 
and international developments, and as a result has become more open and transparent and WTO 
compliant. 
63. St. Lucia has been active in the WTO in th e context of the Doha Development Round, 
(DDA).  In the negotiations, St. Lucia has strongly ad vanced the argument that special and differential 
is integral to the negotiating process.  It has al so joined with other members of the CARICOM in 
advocating non-reciprocity in NAMA and for flex ibilities for small and vulnerable economies in the 
negotiation process.  St. Lucia has also highlighted th e need for the negotiations to take account of the 
consequences of preference erosion for developing  and particularly Small Vulnerable Economies.  
St. Lucia has supported a request by a number of developing members of the WTO for an extension of time for providing export subsidies until 2018.  St. Lu cia regards these subsidies as important to help 
it fuller integrate into the multilateral system, give n what it views as weaknesses associated with its 
status as a "small and vulnerable economy."  St. Lucia has also atte mpted to advance the DDA agenda 
generally, in the context of its UN membership. 
64. In the ACP-EU joint ministerial sessions, St. Lucia has lent support to regional and wider 
ACP efforts to encourage a successful  conclusion to the Doha Round. 
(1) T
RADE IN GOODS  
(i) Tariffs and Import Licenses 
65. Traditionally, St. Lucia’s trade policy focused on trade in goods and consequently emphasis 
was placed on an import substitution strategy for pr omoting economic developmen t.  The strategy was 
implemented through a system of tariff and non-tari ff barriers designed to enable manufacturing and 
agricultural sectors to become internationally competitive. 
66. Since 1991, St. Lucia has applied the CARICOM Common External Tariff (CET) which 
subjects competing capital goods to a 15% tariff, co mpeting intermediate inputs to a tariff of 20%, 
and non-competing final goods, gene ral manufactured goods, agri-industr y products, and garments to 
customs duties of 25-30%.  In 2000, St. Lucia app lied Phase IV of the Schedule of CET reductions.  
Some 39.1% of the lines are duty free. 
67. The 2006 Budget Address acknowledged that trad e negotiations now underway will force the 
Government of St. Lucia to re-assess its tax regime s, particularly with respect to import duty and the 
excise and consumption taxes. 
68. The import-licensing regime of St. Lucia is regulated principally by the Customs 
(Management and Control) Act No. 23 of 1990, th e External Trade Act, No. 5 of 1968 and the 
External Trade (Restricted Imports) Order, S.I. No. 31 of 1996.  St. Lucia has notified its import-
licensing practices to the Committee on Import Licensing, and has also replied to the WTO 
questionnaire on import-licensing procedures.  The im port-licensing regime was adopted to facilitate 
the regulating and monitoring of imports for nationa l security, public health, public safety, animal 
health, and moral issues. 
 Saint Lucia WT/TPR/G/190/LCA 
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 (ii) Other Charges and Duties 
69. “Other charges and duties” levied on impor ts include: Consumption Tax, Excise Tax, 
Environmental Levy and Stamp Duty.  In its 2006 Budget Address, the Government of St. Lucia indicated its intent to review a nd implement a plan for reductions in the consumption tax imposed on 
a variety of food products.  The current taxes of be tween 5% and 30% would be reduced or eliminated 
for several items. 
70. These proposals were made in order to address  concerns over rising food prices.  The 
Government also proposed that excise taxes be redu ced for hybrid vehicles, as well as those powered 
by diesel fuel, solar energy, or LPG and compressed natural gas. 
(iii) Technical Standards 
71. The Government of St. Lucia is aware that  in order to promote indus trial development and the 
enhancement of the economy of St. Lucia, the development and promoti on of internationally 
recognised standards are imperative.  Equally, it rec ognises the need to ensure that imports are of the 
highest quality and that the health and safety of consumers are not compromised by the importation of 
and use of inferior goods.  It also has a duty to adequately protect the environment. 
72. Accordingly, the Standards Act No. 14 of 1990 was developed as the main law regulating the 
use and application of technical regulations and st andards in St. Lucia.  The St. Lucia Bureau of 
Standards (SLBS), under the Ministry of Trade, Industry and Commerce was given the mandate for 
the preparation of standards and t echnical regulations, and is the nati onal standards body.  In October 
2001, the St. Lucia Bureau of Standards adopted th e Code of Good Practice St. Lucia became a full 
member of the International Organization for Standardization (ISO) in July 2004. 
73. Technical regulations and standa rds are developed as well as adopt ed or adapted (i.e., adopted 
with modifications) from existing standards; the same  technical regulations and standards are applied 
to imports and exports.  Under the Standards Act, No.14 of 1990, the SLBS implements a conformity-
assessment programme for technical regulations.  Compliance with technical regulations for both 
domestic and imported produc ts is governed by the Compulsory Standards Compliance programme 
that St. Lucia implemented in 2001. 
74. Between 2000 and 2006 a total of 27 internationa l standards were adopted by the SLBS with 
six of these being mandatory and hence becoming tec hnical regulations.  By the end of 2006, a total 
of 100 standards had been developed by the SLBS 17 of  which are ISOs, 7 are BSIs and 6 are IES.  At 
the end of April 2007, a total of 32 standards have become mandatory. 
(iv) Sanitary and Phytosanitary Measures 
75. The Ministry of Agriculture, Forestry and Fisheries is the body responsible for the 
implementation, dissemination of information and preparation of notifications of sanitary and 
phytosanitary measures in St. Lucia.  As at March,  2007, St. Lucia had submitted its notifications to 
the SPS Committee as well as the responses regardi ng the Operation of its SPS Enquiry Points and 
National Notification Authorities. 
(2) T
RADE IN SERVICES  
76. Under the Uruguay Round of trade negotiations, St. Lucia committed four areas of service 
activity viz. tourism, recreational, financial (re-insurance), and maritime transport services for WT/TPR/G/190/LCA Trade Policy Review 
Page 16 
 
 
 liberalization.  St. Lucia did not particip ate in the continued WTO negotiations on 
telecommunications or in the continued negotiations  on financial services.  However, in May 2004, 
the Government of St. Lucia removed all restricti ons on investment in the telecommunications sector, 
thus rendering that sector fully liberalized. 
77. St. Lucia submitted an initial conditional offer on services in March 2005 pursuant to 
paragraph 15 of the Ministerial Declaration and Annex C of the General Council Decision of August 
01, 2004. 
(3) TRADE -RELATED INTELLECTUAL PROPERTY RIGHTS  
78. Legislation governing intellectual property rights has existed in St. Lucia as far back as 1957.  
However, since becoming a member of the World Intellectual Property Organization (WIPO) and a 
signatory to a number of international agreemen ts on intellectual property rights, St. Lucia has 
modernized its intellectual property rights system in  order to bring its legislative framework in line 
with international standards. 
79. Domestic legislation regarding copyright, trademarks, geographical indications, industrial 
designs, undisclosed information, and layout design s has been updated.  Legislation in other areas, 
such as patents, trade marks and plants varieties wa s passed in 2001, but was not yet in force as at 
early 2007.  St. Lucia has notified its legislation on intellectual property to the WTO.  Saint Lucia’s intellectual property legislation was reviewed in April 2001. 
Technical Assistance 
80. St. Lucia considers structured technical assistan ce to be a critical element in the development 
of the capacity needed to effectively particip ate in the increasingly burdensome demands of the 
multilateral trading system.  The main areas of fo cus include: enhancement of the domestic (human 
and institutional) resource capacity and capability to be responsive to an accelerating negotiating 
process, improvement in technological infrastructure, diversification of export portfolios, technical assistance in the area of legislation drafting for SPS systems, strengthening of the SPS surveillance 
systems as well as risk analysis to conform to inte rnational regulations, institutional building for the 
implementation of safeguard mechanisms, trade re gulatory capacity building and trade development 
measures. 
Aid for Trade 
81. As a small sovereign democracy since 1979, St. Lucia has in spite of its limited resources 
slowly built its trading platforms in the areas of Agriculture, Manufacturing and Tourism.  However, 
since 2001 the performance of the economic sect ors of Saint Lucia has encountered immense 
difficulties, particularly Agriculture, resulting in a mark ed decline in the contribution of that Sector, as 
the main contributor, to GDP. 
82. Consequently, St. Lucia is of the view that th e nomenclature of “Aid for Trade” should be re-
defined to read “Aid to Trade” since Aid to Trade im plies at the onset, aid that will assist in rebuilding 
those trading platforms that have been eroded as a consequence of loss of markets, particularly 
through competition from more formidable competitor s.  Aid to Trade should be geared towards a 
mutual programme of Technical and Financial Assi stance to address our needs in Trade Facilitation as 
well as the implementation of ex isting national development models  including the National Export 
Development Strategy, the Industrial Policy and th e Agricultural Development Plan for Saint Lucia. Saint Lucia WT/TPR/G/190/LCA 
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 83. Any initiative towards the development of Aid to Trade within the context of multilateral 
negotiations must assist in building supply-side cap acity and trade-related infrastructure that SIDS 
like St. Lucia, need to in expanding its trade portfolio as well as benefiting in any meaningful way from the WTO Agreements. 
84. Assistance under any Aid for Trade initiative s hould not be discounted from existing lines of 
credit or from any previous Aid or soft loan assi stance programme, currently in place or negotiated. 
There should be a new wholesome programme, gear ed specifically at Trade and Trade related 
necessities in the recipient countries, with fixe d pre arranged conditions and accountability at all 
levels.  There must be a strict monitoring system, with tangible results being the incentives for future 
aid. 
CONCLUSION 
85. It has been an uphill task for Saint Lucia a nd the other OECS member states to retain any 
gains they may have achieved by becoming s ubscribers to the CARICOM Single Market and 
Economy.  Following early on the signing of the Revised Treaty, Saint Lucia as part of CARICOM entered into trade negotiations with  more developed regions, only to find that these more developed 
regions are bent on ignoring the findings of th e More Developed Members (MDCs of CARICOM) 
who identified Saint Lucia and the rest of the OE CS and Belize as Less Developed Countries (LDCs) 
and made provisions in the treaty, particularly  in chapter 7 to accommodate our inadequacies. 
86. Since becoming a member of the WTO, all we have seen is a gradual erosion of preferences 
that once allowed us to compete internationally.  This has had a debilitating effect on the social 
infrastructure and the economy.  Saint Lucia’s requ est is that our peculiar circumstances as a Small 
Island Developing State are recognized and the appropr iate action be taken to reinforce our trading 
platforms which collapsed as a direct im pact from the forces of globalization. 
87. We need Aid to Trade;  meaningful subsidies that will assist us in underpinning the shortfall 
in economic returns brought on by the changes in ma rket conditions as we adju st to the unfamiliar. 
The weaker and more vulnerable members of the WTO must not be made to feel disenfranchised by 
the more developed and affluent members of the or ganization.  This will only lead to fragmentation 
and chaos. 
88. In spite of our shortcomings and the obvious di sappointment that we feel as we watch our 
contribution to world trade dwindle to miniscule unrecordable digits, Saint Lucia remains committed 
to the liberalization of international trade, but th is must be done fairly without hidden technical 
barriers or creative trade defense measures.  No r must the More Developed Countries thwart the 
goodwill of the rules base organization by ignoring their decisions. 
89. We will continue to thrive to be fully compliant within limits of our resources, both physical 
and financial, doing so in the face of tremendous cha llenges.  We are beset by several implications for 
growth and development and expe rience higher levels of volatility in the pursuit of our economic 
goals than many small land locked economies. 
90. Critical considerations such as scarce resources,  manpower, inability to experience economies 
of scale in almost every field of economic endeavour, limited avenues for diversification and at achieving sustainable economic development, are but  some of the insurmountable problems we face 
from day to day. WT/TPR/G/190/LCA Trade Policy Review 
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 91. Consideration must now be given as to what  the WTO can reasonably demand from a small 
sovereign democracy like Saint Lucia without incr easing the poverty level among the less fortunate, 
despite Government’s struggle to extricate them for this blight.  Our vulnerability to natural disasters 
is no comfort and the adverse rulings from the DSB from time to time on Bananas have not placated 
our situation.  We can only hope that the WTO will with greater knowledge of our capabilities 
demand no more from us than we are able to give. 
 
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