RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/190/GRD 
1 October 2007  
 
(07-3984) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
GRENADA 
 
  
 
This report, prepared for the second Trad e Policy Review of Grenada, has been 
drawn up by the WTO Secretariat on its own responsibility.  The Secretariat has, 
as required by the Agreement establishing the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), sought clarification from Grenada on its trade policies and 
practices. 
 
Any technical questions arising from this report may be addressed to 
Mr. Angelo Silvy (tel. 022 739 5249), and Ms. Katie Waters (tel. 022 739 5067). 
 
Document WT/TPR/G/190/GRD contains the policy statement submitted by 
Grenada. 
 
 
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 Grenada. Grenada WT/TPR/S/190/GRD 
 Page iii 
 
 
CONTENTS 
 Page 
I. ECONOMIC ENVIRONMENT 1 
 (1) S TRUCTURE OF THE ECONOMY , OUTPUT , AND EMPLOYMENT  1 
 (2) F ISCAL POLICY  3 
 (3) M ONETARY AND EXCHANGE RATE POLICY  4 
 (4) B ALANCE OF PAYMENTS , TRADE AND INVESTMENT FLOWS  5 
 (5) O UTLOOK  6 
II. TRADE AND INVESTMENT POLICY FRAMEWORK 7 
 (1) G ENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK  7 
 (2) T RADE POLICY FORMULATION AND IMPLEMENTATION  8 
 (3) F OREIGN INVESTMENT REGIME  9 
 (4) I NTERNATIONAL RELATIONS  10 
 (i) World Trade Organization 10 
 (ii) Preferential agreements and arrangements 12 
III. TRADE POLICIES AND PRACTICES BY MEASURE 12 
 (1) M EASURES DIRECTLY AFFECTING IMPORTS  12 
 (i) Customs procedures, documentation, and registration 12 
 (ii) Customs valuation 13 
 (iii) Rules of origin 14 
 (iv) Tariffs, and other charges on imports 15  (v) Other levies and charges 19 
 (vi) Import prohibitions, restrictions, and licensing 20 
 (vii) Contingency measures 22  (viii) Technical regulations and standards 23 
 (ix) Sanitary and phytosanitary measures 25 
 (2) M
EASURES DIRECTLY AFFECTING EXPORTS  27 
 (i) Documentation, export taxes, and restrictions 27 
 (ii) Export subsidies, financing, support, and promotion 28 
 (3) M EASURES AFFECTING PRODUCTION AND TRADE  29 
 (i) Legal framework for business and taxation 29 
 (ii) Incentives and assistance 30 
 (iii) Competition policy and regulatory issues 33  (iv) Government procurement 34 
 (v) Intellectual property rights 35 
IV. TRADE POLICIES BY SECTOR 38 
 (1) A
GRICULTURE  38 
 (2) M ANUFACTURING  40 
 (3) S ERVICES  41 
 (i) Main features 41 
 (ii) Telecommunications 42  (iii) Financial services 44 
  
 WT/TPR/S/190/GRD Trade Policy Review 
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 Page 
 
(iv) Air transport 47 
(v) Maritime transport 48 (vi) Tourism  49 
(vii) Professional services 51 
(viii) Other offshore services 52 
REFERENCES   53 
APPENDIX TABLES  55 
 
TABLES 
 
I. ECONOMIC ENVIRONMENT  
I.1 Basic macroeconomic indicators, 2000-06 2 
I.2 Balance of payments, 2001-06 5 I.3 Investment projects, 2001-05 6 
 
II. TRADE AND INVESTMENT POLICY FRAMEWORK  
II.1 Main agencies dea ling with trade, 2007 9 
II.2 Notifications to the WTO, 2001-07 11  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 III.1 Minimum import prices applied in Grenada in the period 2001-07 14 
III.2 Structure of the tariff, 2006 15 
III.3 Summary analysis of the MFN tariff, 2006 16 III.4 Tariff headings where applied rates exceed bound rates, 2006 18 
III.5 Prohibited or restricted imports, 2007 21 
III.6 Items subject to import licensing, 2007 22 
III.7 Technical regulations adopted by Grenada, 2001-06 24 
III.8 Incentives laws in Grenada 30 III.9 Revenue forgone due to the Fiscal Incentives Act, 2001-05 31 
III.10 Grenada's membership in international instruments on intellectual property rights, 2007 35 
 IV. TRADE POLICIES BY SECTOR 
 
IV.1 Major agricultural crops, 2000-06 39 IV.2 Manufacturing exports, 2001-06 40 
IV.3 Major manufacturing projects, 2004-07 41 
IV.4 Telecommunications statistics, 2002-06 43 IV.5 Telecommunications tariffs, 2003-06 43 
 
APPENDIX TABLES 
 
I. ECONOMIC ENVIRONMENT 
 AI.1 Merchandise exports and re-exports by group of products, 2000-06    57 
AI.2 Merchandise imports by group of products, 2000-06      58 
AI.3 Merchandise exports and re-exports by trading partner, 2000-06    59 
AI.4 Merchandise imports by trading partner, 2000-06      60 
 Grenada WT/TPR/S/190/GRD 
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I. ECONOMIC ENVIRONMENT 
(1) STRUCTURE OF THE ECONOMY , OUTPUT , AND EMPLOYMENT  
1. During the period under review, Grenada was severe ly affected by several external shocks, 
notably tropical storms or hurricanes in 2002, 2004,  and 2005, which caused considerable damage;  
and, like other countries in the region, by the 11 September 2001 attacks in the United States, which 
triggered a sharp reduction in the number of visito rs.  Grenada has also been affected by high oil 
prices.  As a result, economic growth has fluctuat ed sharply since 2001.  Grenada has continued to 
move away from agricultural production and toward s service activities, whic h accounted for some 
70.5% of GDP at basic prices in 2005.  Gove rnment services and transportation account for 
particularly large shares of GDP. 
2. Other sectors of importance are construction, which accounted for some 21.5% of GDP in 
2005, manufacturing (6%), water and electricity (5.7 %), agriculture (5.3%), and mining and quarrying 
(0.6%).1  Construction has received a boost from recons truction efforts after the hurricanes in 2004 
and 2005, as well as from the Government's investme nt projects, including those for the 2007 Cricket 
World Cup, and private projects.  Although the programme to build infrastructure for the Cricket 
World Cup has boosted growth, achieving a "soft la nding" afterwards may prove a challenge.  The 
authorities are confident that an upturn in construction  fuelled by public and private sector projects 
may support growth in 2007 and beyond. 
3. Agriculture is dominated by traditional crop produc tion, i.e. nutmeg, cocoa, and bananas.  The 
sector was severely affected by hurricanes in 2004 and 2005.  Until 2004, Grenada was one of the 
world's main producers of nutmeg, which accounted for over 40% of total exports.  Following the 
hurricanes, production of this and other main crops  plummeted:  nutmeg production fell by over 90% 
between 2004 and 2005. 
4. The manufacturing sector in Grenada is small a nd primarily concentrated in the production of 
light manufactures, such as beverages (beer, malt, rum, and soft drinks), paints and varnishes, 
garments, flour, wheat bran, pasta, oxygen, acetylene, cigarettes, animal feed, and toilet paper.  Most 
of the production is geared to the domestic or  OECS market.  After contracting during 2002-04, 
manufacturing activity rebounded in 2005, led mainly  by improvement in the beverages, pasta, 
bakery, and chemicals and paints industries. 
5. The economy entered two years of economic stagnation in 2001, affected by the 
11 September events.  Growth resumed strongly in 2003, but the effects of hurricane Ivan caused the 
economy to contract sharply, by 7.4% in 2004 (Table  I.1).  Reconstruction e fforts supported growth in 
2005, which was stronger than expected, reflecti ng substantial grants from abroad as well as a 
medium-term programme of economic policies focussed on fiscal sustainability and poverty alleviation.  The programme entailed changes in  the tax system, curtailed public workers wage 
increases, and reduced central government employment on a phased basis.  In support of their reform 
programme, the authorities requested IMF assistance under the Poverty Reduction and Growth 
Facility (PRGF), and engaged in debt rescheduling.  Growth slowed down in 2006; this was attributed 
to a decline in construction activity as major hurri cane-related reconstruction work was completed in 
2005.  Output in the agriculture sect or and tourism industry rebounded. 
                                                     
 
1 The totals do not add to 100% since it is necessary to subtract the financial intermediation services 
indirectly measured (FISIM), which includes total proper ty income receivable by financial intermediaries minus 
their total interest payable.  For details see:  ECCB (2006b). WT/TPR/S/190/GRD Trade Policy Review 
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Table I.1  
Basic macroeconomic indicators, 2000-06  
 2000 2001 2002 2003 2004 2005 2006a
Real sector       
GDP at market prices (EC$ million) 1,105.8 1,067.5 1,100.3 1,197.8 1,151.7 1,360.4 1,389.0
GDP per capita, market prices (EC$) 10,905 10,401 10,631 11,531 10,952 12,847 13,030
GDP per capita, basic prices (EC$) .. .. 8,690 9,280 8,859 10,290 10,612
Real GDP at market prices (EC$ million) 857.4 815.2 827.4 889.2 823.6 932.3 951.9
Real GDP at basic prices (EC$ million) 701.2 670.7 676.3 715.6 666.2 746.7 762.7
GDP growth (real, market prices) 7.0 -4.9 1.5 7.5 -7.4 13.2 0.5
GDP growth (real, basic prices) 14.9 -4.4 0.8 5.8 -6.9 12.1 2.1
GDP components   
Total consumption (% of GDP) 74.4 85.3 91.6 87.5 88.4 79.9 89.4
   Private consumption (% of GDP) 59.7 68.0 73.7 71.9 69.5 62.0 71.3
   Government consumption (% of GDP) 14.7 17.3 17.8 15.5 18.9 17.9 18.1
Gross capital formation  (% of GDP) 43.8 36.2 32.9 41.8 44.5 63.8 52.1
Transport equipment  (% of GDP) 57.6 49.8 42.4 40.5 44.6 33.2 ..
Other equipment  (% of GDP) 37.3 33.7 32.2 30.2 36.9 25.4 ..
Construction (% of GDP)  37.3 33.7 32.2 30.2 36.9 25.4 ..
Imports of goods and services (% of GDP) 75.7 71.3 66.8 69.8 77.5 76.8 72.2
  Goods 53.9 49.8 44.5 51.0 55.4 55.6 51.0
  Non-factor services 21.8 21.5 22.3 18.7 22.1 21.2 21.1
Exports of goods and services (% of GDP) 57.6 49.8 42.4 40.5 44.6 33.2 30.7
  Goods 20.3 16.1 10.2 10.3 7.7 7.8 5.1
  Non-factor services 37.3 33.7 32.2 30.2 36.9 25.4 25.6
Gross national savings (% of GDP) 0.8 1.5 1.6 1.3 3.8 4.3 ..
Foreign savings (% of GDP) 21.5 26.6 29.9 31.8 8.0 33.4 30.0
Consumer price index (end of period) 3.5 2.5 -0.4 1.1 2.5 5.8 1.7
Implicit gross value added deflator (end period) 1.5 1.5 1.6 1.3 3.8 4.3 1.6
 General government finance (% of GDP)    
Current revenue 26.9 26.5 26.6 27.0 26.1 26.4 27.8
  of which, tax revenue 24.0 23.8 23.8 24.9 24.3 25.3 25.9
    of which taxes on international trade 13.5 13.5 13.8 14.6 14.6 15.5 15.3
        of which   
             Consumption tax 7.9 7.9 7.6 7.8 8.1 8.1 7.5
             Import duties 2.9 3.0 2.9 3.5 3.5 3.7 3.4
             Service charge on imports 2.3 2.4 2.3 2.6 2.6 3.3 2.9
Current expenditure 20.9 24.3 26.5 23.9 27.9 22.1 22.9
Current account balance 6.0 2.2 0.1 3.2 -1.7 4.3 4.9
Primary balance -12.2 -13.9 -15.2 0.4 3.4 6.2 -5.0
Overall fiscal balance (% of GDP) -3.2 -7.7 -19.7 -4.8 -2.9 4.1 -7.0
Money and interest rates   
Money supply, M1  (end of period.) 4.2 5.5 10.2 13.7 41.2 -7.4 -1.9
Broad money, M2 (end of period) 15.4 10.6 7.1 8.0 17.8 -1.0 0.9
Prime lending rate (% per annum) 9.5-10.5 9.5-10.5 8.5-10.5 8.5-9.5 8.5-9.5 8.5-9.5 8.5-10.5
Other lending rates 9.5-16.0 9.5-16.0 8.5-16.0 3.0-16.0 3.0-16.0 3.0-16.0 7.5-16.0
Savings rate 4.0-6.0 4.0-6.0 3.00-5.0 3.0-5.5 3.0-4.0 3-0-4.0 3.0-4.25
 
.. Not available. 
 
a Preliminary.  
Source : Information provided by the authorities;  and ECCB data. 
6. Wage contracts are typically negotiated for a period of two or three years and are set by 
collective agreements.  Real wages in the public sect or have been increasing in recent years:  nominal 
wages increased by 4% in 2004 and by 4.5% in 200 5.  The unemployment rate was estimated by the 
authorities to be 18.5% in 2005, having reached so me 40% in the aftermath of hurricane Ivan.  The 
reduction has been explained mainly by new jobs in  construction;  there was a 41% increase in the Grenada WT/TPR/S/190/GRD 
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registration of first-time employees in 2005.  A recent IMF study has estimated informal activity at 
some 22.5% of GDP.2 
7. Grenada's GDP per capita was US$4,825 in 2006.  In terms of purchasing power, GDP per 
capita was estimated by the IMF at US$9,256 in the same year.3  Net aid per capita in 2005 was 
estimated by the World Bank at US$145.4 
(2) FISCAL POLICY  
8. Fiscal policy is the responsibility of the Minist ry of Finance.  Fiscal policy is the main 
macroeconomic instrument actively used by the aut horities to affect output, as Grenada, like all other 
OECS-WTO Members, has no independent monetary  and exchange rate policy (see section (3) 
below).  As a result, the national authorities may onl y resort to fiscal policy to act on the economy as 
the main income stabilizer and counter the effect of external shocks.  As in other OECS countries, and 
due to the high dependency on taxes on foreign trad e for revenue, fiscal policy has a strong link with 
trade policy. 
9. During the period under review, Grenada has been conducting a programme of fiscal policy 
adjustment.  Several important tax reforms have been introduced.  The goal of the fiscal reform 
programme is to obtain a primary surplus of 2.5% of GDP for 2008.   A valued added tax will be 
implemented in 2008 to replace the general consum ption tax, motor vehicle purchase tax, and the 
airline ticket tax (see also Chapter III(1)(v)).  Pe trol taxes were also increased, and the subsidy 
provided by the State eliminated. 
10. The current balance of the fiscal account has been in surplus during most of the review 
period, with the exception of 2004, when Hurricane Ivan hit Grenada.  However, the overall balance 
was in deficit through 2000-04.  After increasing dramatically, to 19% of GDP in 2002, the overall 
deficit (after grants) narrowed to 2.9% of GDP in 2004, reflecting primarily a reduction in capital 
expenditure.  The overall deficit has been financed  by external financing and foreign grants.  An 
overall fiscal surplus was posted in 2005, but an ove rall deficit equivalent to 7% of GDP was posted 
in 2006, mainly due to an increase of 65.8% in capit al expenditure, partly as a result of preparations 
for the Cricket World Cup 2007. 
11. Revenues increased substantially in 2005, part ly reflecting one-off factors, such as the 
collection of arrears and higher trade taxes from increased imports of construction material.  To finance the reconstruction effort, the Government introduced a 3% national reconstruction levy in 
January 2006, on taxable income in excess of EC $1,000 per month.  Receipts from this levy are 
expected to average EC$10 million annually for 3 y ears.  Starting 1 October 2005, the Government 
raised domestic fuel prices by over 45%, taking step s to eliminate the subsidy that had resulted in a 
build-up of liabilities to oil importing companies of about 2% of GDP.  A new pricing mechanism was introduced, with total tax fixed at EC$3 per gallon as of October 2006.  Improvements in the 
collection of non-tax revenues, such as land re gistry fees, have also been introduced. 
12. Expenditure was curtailed as the adjustment of petroleum prices helped eliminate the subsidy, 
and primary expenditures were kept below the allocati on in the budget.  In the first nine months of 
2006, fiscal operations deteriorated, and an overall deficit of EC$75.9 million was posted.  This shift 
resulted from a fall in current grants and an increas e in capital expenditure.  Spending reform has also 
                                                     
 
2 Vuletin (2007). 
3 IMF online information.  Viewed at:  http://w ww.imf.org/external/pubs/ft/weo/2007/01/data/ 
weoselgr.aspx. 
4 World Bank (2007). WT/TPR/S/190/GRD Trade Policy Review 
Page 4 
 
 
included wage negotiations with public service uni ons and a review of investment programmes.  
Other measures include  subjecting government procurement to competitive bidding, and redesigning 
the policy of transfers and subsidies to  target social safety nets. 
13. Additionally, the Government has initiated reforms to the system of tax incentives 
(Chapter III(3)(ii)).  The Government estimates re venue forgone from import duty and consumption 
tax concessions during 2000-02, at nearly 11% of GDP.5  In 2003-04, the Government took steps to 
curtail concessions and, since June  2006, publishes all new concessions  granted on a quarterly basis.  
Effective 1 January 2006, no new income tax holid ays are granted nor are expiring ones renewed; 
incentives are now provided in the form of tax writ e-offs for investment after 30 June 2006 through 
accelerated depreciation with loss carry-forward pr ovisions.  The Government is also considering 
trimming the import duty concession regime. 
14. Grenada engaged in a process of debt restructuring in 2005;  it had been incurring arrears on 
most of its commercial debt after the authorities d eclared public debt to be unsustainable after 
Hurricane Ivan struck in 2004.6  Almost a year after Ivan, Grenad a launched an exchange offer for its 
commercial debt, which covered about half of the coun try’s total public sector debt.  The exchange of 
commercial debt was successfully completed on 15 N ovember 2005.  Overall participation reached 
91% of eligible claims, or about US$237 million.  Creditors accepted a substantial net present-value 
reduction, but the debt exchange did not involve an y write-down of principal, and past-due interest 
was fully capitalized.7  The exchange of debt provides an 83% reduction in Grenada’s commercial 
debt service costs between 2005 and 2008 a nd a reduction of 73% between 2009 and 2012. 
(3) MONETARY AND EXCHANGE RATE POLICY  
15. Grenada is a member of the Eastern Caribbean Currency Union (ECCU).  Monetary and 
exchange rate policy is determined by the Mone tary Council of the Eastern Caribbean Central Bank 
(ECCB), which keeps the EC dollar pegged to the U.S.  dollar at a rate of EC$2.70/US$1.  Movements 
in the real effective exchange rate of the EC dolla r are related largely to changes in the value of the 
U.S. dollar vis-à-vis other major currencies. 
16. Narrow money (M1) and broad money (M2) have been expanding since the economy 
resumed growth; however, after particularly strong growth in 2004, both aggregates declined in 2005, 
mainly due to a reduction in demand depos its, and a decline in net foreign assets.8  Domestic credit 
resumed growth in 2005, after declining by 9% in 2004;  credit to the public sector was particularly 
dynamic in 2005.  The composition of credit by ec onomic activity showed substantial increases in 
2005 for construction and, to a lesser extent , tourism and personal use, but decreases for 
manufacturing, agriculture, and distribution.  Liqui dity in the commercial banking system decreased 
in 2005 but remained at a high level during 2005 an d 2006 (the ratio of loans and advances to total 
deposits was 66% in 2005). 
17. Commercial bank interest rate s were largely unchanged durin g 2005 and 2006:  rates on 
savings deposits ranged from 3% to 4.25% and rates on time deposits from 1% to 5.5%.  Prime 
lending rates remained within the 8.5-10.5% range. 
18. The increase in the consumer price index (CPI) has been moderate, averaging 2.5% during the 
period 2000-05.  Due to higher oil prices, and the reduction in the subsidy provided by the 
                                                      
5 Ministry of Finance. 
6 IMF (2006). 
7 The IMF estimates a net present-value reduction of some 40-45% considering exit yields of 9-10%. 
8 ECCB (2006a);  ECCB (2007). Grenada WT/TPR/S/190/GRD 
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Government, the CPI rose by 5.8% in 2005.  Howe ver, consumer prices rose by only 1.7% during 
2006. 
(4) BALANCE OF PAYMENTS , TRADE AND INVESTMENT FLOWS  
19. The current account of the balance of payments shows a structural deficit, caused basically by 
the strong imbalance between exports and imports of merchandise;  exports  in 2006 represented less 
than 12% of imports.  The deficit worsened over 20 01-03, but contracted in 2004, as Hurricane Ivan 
disrupted economic activity (Table I.2).  The defi cit in merchandise trade reflects partly the strong 
import content of the Government's investment pr ogramme and of private consumption;  in 2006 the 
merchandise trade deficit represented some 42% of  GDP, while the current account deficit was 30% 
of GDP.  The current account is expected to rema in under pressure as imports continue to expand in 
the effort to rebuild the economy.  As merchandi se exports are only expected to recover in the 
medium term, the trade balance is expected to remain at recent levels. 
20. The value of exports contracted during the pe riod under review, affected in particular by 
hurricane damage (Table AI.1);  the value of im ports declined between 2000 and 2002, but growth 
resumed thereafter (Table AI.2).  Food and be verages accounted for some 23% of total imports, 
followed by chemicals, fuels, office machines and telecom equipment crude materials, and oils and 
fats.  Exports of food products a ccounted, until 2005, for over half of  total exports; until 2005, exports 
of nutmeg were the main generator of foreign ex change in the agricultural sector.  Other export 
products include bananas, flour, an imal feedstuff, and manufactures. 
21. Grenada's  main trading partners are the European  Communities, the United States, and, 
increasingly, other CARICOM members (Tables AI.3 and AI.4).  The main single export destination 
is the United States, followed by OECS countries a nd the Netherlands.  On the import side, the United 
States is the main provider, followed by the CARICOM area and the United Kingdom. 
22. Grenada is a net exporter of services, mainly on account of its surplus on travel services, 
linked to tourism activities;  in most other areas, it is a net importer.  Exports of non-factor services 
increased on average over 2001-04, but declined in 2005 affected by the damage caused by the 
hurricanes.  Exports of the main activity, travel, fell from some US$83 million in 2000 to 
US$71 million in 2005.  Total exports of servi ces reached US$116.7 million in 2005, while imports 
were US$92.5 million. 
Table I.2 
Balance of payments, 2001-06 
(US$ million)  
 2001 2002 2003 2004 2005 2006a  
Current account -105.1 -124.9 -143.7 -55.8 -126.7 -154.5 
Goods and services -84.8 -100.7 -129.9 -138.4 -217.4 -172.5 
Goods -133.2 -139.4 -180.9 -201.4 -241.2 -210.9 
Merchandise -137.3 -141.8 -184.6 -206.9 -247.5 -215.4 
   Exports 59.5 39.6 41.8 31.4 32.8 27.8 
  Imports -196.8 -181.4 -226.4 -238.4 -280.3 -243.2 
Goods procured in ports by carriers 4.1 2.4 3.7 5.5 6.3 4.5 
Services 48.4 38.7 51.0 63.0 23.7 38.4 
Transportation -24.7 -22.6 -30.2 -31.8 -38.4 -29.9 
Travel 75.9 83.7 95.3 74.1 61.1 82.8 
Insurance services -4.6 -3.1 -5.5 35.5 14.4 -7.1 
Other business services 1.3 -17.8 -4.5 -3.6 -1.8 -2.8 
Government services 0.5 -1.5 -4.1 -11.1 -11.6 -4.5 
Table I.2 (cont'd) WT/TPR/S/190/GRD Trade Policy Review 
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 2001 2002 2003 2004 2005 2006a  
Income -41.4 -47.5 -50.3 -38.9 -23.6 -28.9 
Compensation of employees 0.0 0.0 0.0 0.0 0.0 0 
Investment income -41.5 -47.5 -50.3 -38.9 -23.6 -28.9 
Current transfers 21.1 23.3 36.5 121.5 114.3 46.9 
General government 2.1 2.4 17.8 40.2 31.3 18.9 
Other sectors 19.0 21.0 18.7 81.3 83.0 28.0 
Capital and financial account 111.0 156.1 130.9 102.1 99.3 160.1 
Capital account 42.5 31.9 43.2 39.9 47.1 65.2 
Capital transfers 42.3 31.9 43.2 39.9 47.1 65.2 
Financial account 68.4 124.3 87.7 62.3 52.3 94.9 
Direct investment 58.7 58.9 89.2 54.0 26.3 115.8 
Portfolio investment -0.3 107.7 29.1 30.0 10.4 0.1 
Other investments 10.0 -42.3 -30.6 -21.8 15.5 -21.0 
Public sector long term 17.3 4.2 11.5 2.9 21.3 10.2 
Commercial banks -20.3 -20.3 -29.6 -55.4 25.0 -46.3 
Other assets -5.3 -14.2 -20.1 -4.0 -3.1 -4.9 
Other liabilitiesb 18.3 -12.0 7.6 34.7 -27.7 20.0 
Overall balance 5.9 31.2 -12.8 46.3 -27.4 5.6 
Financing -5.9 -31.2 12.8 -46.3 27.4 -5.6 
Change in government foreign assets 0.4 -7.3 8.2 -7.9 -0.1 -0.1 
Change in imputed reserves -6.3 -23.9 4.6 -38.5 27.5 -5.6 
Memorandum  
Current account balance (% GDP) -26.6 -30.6 -32.4 -13.0 -25.1 -30.0
Merchandise trade balance (% of GDP) -34.7 -34.8 -41.6 -48.5 -49.4 -41.9
Real effective exchange rate      
Estimated visitor expenditure (EC$ million) 225.3 247.0 279.9 25.4 192.9 252.4
Net imputed international reserves 
(US$ million)      
Outstanding external public debt (% of GDP) 45.0 77.6 77.7 97.3 88.1 91.3
Total public debt  (% of GDP) 79.3 113.4 114.0 136.7 120.5 121.0
Debt service ratio (% of exports of goods and 
services) 5.5 8.4 8.4 8.9 5.3 ..
 
.. Not available. 
 
a Preliminary. b Includes errors and omissions. 
 
Source : Eastern Caribbean Central Bank (2006), Annual Economic and Financial Review 2005 . 
23. Between 2001 and 2005, investment project s estimated at a total of EC$628 million 
(US$232 million) were implemented.  In 2005, 20 foreign investment s were being implemented:  15 
in tourism, 4 in manufacturing, and 1 in other servi ces.  Potential investment flows from these projects 
were estimated at EC$513.3 million (US$190 milli on) (Table I.3), of which EC$183.6 million had 
been disbursed. 
Table I.3 
Investment projects, 2001-05 
(EC$ million) 
Area of activity 2001 2002 2003 2004 2005 
Manufacturing 8.3 0.5 0.8 0.9 1.3 
Tourism 92.2 2.5 226.0 102.3 497.7 
Other services 0.0 30.0 50.9 13.9 15.7 
Total 100.5 32.9 277.7 117.1 513.3 
 
Source: Information provided by the authorities. 
(5) OUTLOOK  
24. The authorities expect GDP growth of some 5% in 2007 reflecting ongoing reconstruction 
activity, preparations for and the hosting of the 20 07 Cricket World Cup, and an anticipated recovery 
in tourism.  Beyond 2007, however, growth is likel y to slip back as agricultural activity and exports, Grenada WT/TPR/S/190/GRD 
 Page 7 
 
 
in particular, are likely to remain depressed for so me time.  Tourism is also unlikely to expand 
strongly if new investment is not encouraged.  In  their medium-term fiscal  adjustment plan, the 
authorities are targeting GDP growth of 4% from 2008 onwards, and a primary fiscal surplus of 2.5% 
of GDP. 
25. The IMF is expecting GDP growth of some 5% for 2007 and of 4% in 2008 and a CPI 
increase of 2.7% and 2%, respectively.9 
II. TRADE AND INVESTMENT POLICY FRAMEWORK 
(1) GENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK  
26. Grenada's parliamentary democracy is based on the British Westminster model.  The Head of 
State is the British Monarch who is represented in Gr enada by the Governor General, appointed on the 
advice of the Prime Minister after consultation with the Leader of the Opposition.  Under the 
Constitution, the Governor General enjoys several residuary powers, of which appointment of the 
Prime Minister, dissolution and prorogation of Pa rliament, and appointment of Ministers of 
Government, are among the most important. 
27. Executive authority is vested in the Prime Minister and the Cabinet.  The Prime Minister is 
normally appointed by the Governor General on th e basis that he or she appears to command the 
majority of the support of the elected members of  Parliament.  The Prime Minister has exclusive 
authority to nominate elected members of his party to ministerial posts (and relieve them), although it 
is the Governor General who makes such appoint ments, acting on his advice.  The Cabinet is 
collectively responsible to Parliament for advice tendered to the Governor General. 
28. Although most trade negotiations are usually handl ed by the minister responsible for trade, 
the Cabinet has ultimate responsibility for authoriz ing the conclusion and signing of trade treaties and 
trade-related agreements. 
29. The Grenadian legislature is bi-cameral, c onsisting of one elected chamber and one of 
appointed individuals.  The elected chamber, the H ouse of Representatives, consists of 15 members, 
directly elected through a simple majority or firs t-past-the-post system.  The Senate has 13 nominated 
members, of which seven are appointed on the advice of the Prime Minister, three on the advice of the 
Leader of the Opposition, and three are appointed by  the Governor General ostensibly to represent a 
range of interests from selected civil society orga nizations.  Elections for members of the House of 
Representatives are normally held every five years;   however, they may be called at any time.  
Grenada's last elections were held in November 2003. 
30. The Constitution is the supreme law, and laws  that do not conform to the Constitution are 
void to the extent of any inconsiste ncy.  Bills may be introduced in the House or the Senate;  however, 
they are normally introduced in the House, usually  by a senior Minister.  Once introduced, a bill has 
three stages:  the first is a reading of only the title of the bill;  in the second stage, all the provisions of the bill are debated and amendments may be sugg ested.  Once passed by the House (at the third 
reading), the bill will go through the same stages in the Senate, and may be returned to the House if 
Senators propose amendments.  The same is true wher e a bill begins in the Senate.  Money Bills, i.e. 
any legislation that makes provision for charges on th e Consolidated Fund, can only be introduced in 
the House.  After passage in both chambers of Parliament, bills must receive the assent of the 
Governor General;  they become law upon publication in the Government Gazette . 
                                                     
 
9 IMF online information.  Viewed at:  http ://www.imf.org/external/country/GRD/index.htm. WT/TPR/S/190/GRD Trade Policy Review 
Page 8 
 
 
31. The Grenadian legal system is based on English Common Law.  International agreements that 
have not been incorporated into domestic law cannot  be invoked before the c ourts and have no direct 
effect under Grenadian law.  Grenada's judiciary is independent of the other branches of Government.  
At the lowest judicial level, magistrates courts deal  with petty civil and criminal cases.  More serious 
civil and criminal cases are dealt with by respec tive divisions of the High Court, which also has 
authority to interpret Constitutional provisions.  The first level of appeal is to the itinerant Eastern 
Caribbean Supreme Court, based in St. Lucia.  Fina l appeal is to the Privy Council based in London. 
32. In April of 2005, Grenada and other CARICOM countries inaugurated the Caribbean Court of 
Justice (CCJ), a regional court with both original and exclusive jurisdiction for interpreting provisions 
of the Revised Treaty of Chaguaramas 2001, and appe llate jurisdiction for municipal appeals from the 
member states.  Although Grenada has signed on to the original jurisdiction of the Court, accession to 
the appellate jurisdiction would require a constitu tional amendment, including a referendum.  Until it 
accedes to the CCJ, Grenada will mainta in appeals to the Privy Council. 
(2) TRADE POLICY FORMULATION AND IMPLEMENTATION  
33. The authorities note that Grenada considers trad e policy to be instrumental in achieving 
overall economic and social developmen t, and an integral part of na tional economic policy.  The main 
objectives of Grenada's trade policies are to:  foster  sustained export-led economic growth and reduce 
poverty;  improve competitiveness in the manufacturing sector;  achieve diversification in the agriculture sector;  develop internationally compe titive services;  and gain greater market access for 
non-traditional sectors.  The Government has been implementing a new export strategy since its last 
Review, to improve export performance through im proved national competitiveness, value addition, 
improved quality, and reduction of  production cost.  Grenada sees the negotiation of multilateral, 
regional, and bilateral trade agreements as a mean s of securing its trade interests and enhancing trade 
performance. 
34. Grenada is firmly committed to the multilateral system.
10  Participation in the WTO is 
considered an especially high priority for Grenada, due to concerns about the erosion of preferences 
and the outcome of agriculture negotiations in particular.11  The country has therefore taken a more 
active interest in WTO negotiations, and in implem enting WTO obligations more generally, since its 
last review (section 4, below). 
35. Grenada's trade policy infrastructure has not changed significantly since 2001.  The major 
institutional change has been the separation of the Department of Trade from the Ministry of Finance 
(Table II.1). 
36. The Ministry of Economic Development and Planning is responsible for trade policy 
formulation, negotiations, and monito ring implementation of trade agreements.  It has a staff of five;  
none of whom works solely on WTO issues.  Trade policy coordinati on among agencies occurs 
through the National Trade Policy Committee (NTPC), which comprises representatives from 
government ministries, the private sector, non-governmental organizations and the Trade Union 
Council.  With the establishment of the committee there are regular consultations among the various 
stakeholders in the preparation and formulation of trade policy. 
                                                      
10 WTO document WT/MIN(05)/ST/137 17 December 2005. 
11 OAS Foreign Trade Information System online information. "Car ibbean Declaration on the Fifth 
WTO Ministerial Conference".  Viewed at:  http://c trc.sice.oas.org/TRC/Articles/caribbean_ministerial_ 
declaration.pdf. Grenada WT/TPR/S/190/GRD 
 Page 9 
 
 
Table II.1 
Main agencies dealing with trade, 2007  
Government agencies Area of responsibility (WTO issues) 
Ministry of Finance and Planning Tariffs, trade facilitati on, government procurement, export promotion, import and 
export licensing, industrial development, i nvestment incentives, and state trading. 
Ministry of Foreign Affairs and International 
Trade WTO issues;  policy formulation; trad e in goods and services; negotiations 
Ministry of Agriculture, Forestry and Fisheries Agreement on Agriculture, Agreement on Sanitary  and Phytosanitary Measures 
Ministry of Legal Affairs Trade-re lated intellectual property rights 
Grenada Bureau of Standards Technical barriers to trade 
Grenada Industrial Development Corporati on Trade-related investment measures 
 
Source:  Information provided by the Government of Grenada. 
37. Over the last few years, Grenada has been play ing a more pro-active regional role in terms of 
shaping OECS and CARICOM trade policy.12  A s  p a r t  o f  t h e  O E C S ,  Grenada works closely with 
other members to develop harmonized negotiating positions, particularly in the agricultural 
negotiations at the WTO and other levels.  Gren ada also coordinates its trade policy through 
CARICOM and relies on the Caribbean Regional Ne gotiating Machinery (CRNM) to assist with 
external trade negotiations (see section (4) below).  Grenada relies heavily on regional cooperation on 
trade policy issues, in part because of significant hu man and technical resource limitations in trade 
policy formulation and implementation. 
(3) FOREIGN INVESTMENT REGIME  
38. The principal agency responsible for the manage ment and promotion of foreign investment in 
Grenada is the Grenada Industrial Development Cor poration (GIDC), a statutory body established by 
an Act of Parliament in 1985.  Under the policy guida nce of the Ministry of Finance and the Ministry 
of Trade, where appropriate, its primary objectiv e is to promote employment in Grenada through 
encouraging foreign investment whenever possi ble.  Although the GIDC has identified agri-
processing, information communication technology, tourism, and financial services as areas of 
interest, it is not limited to dealing with inv estment in those areas alone.  Grenada welcomes any 
foreign investment likely to have positive effects on income, employment, skills development, energy 
savings, the country's foreign exchange profile , or likely to promote technology transfers 
domestically.  Foreign investors are encouraged to en ter and operate enterprises in all fields of lawful 
economic activity except in very small-scale and low-technology services activities, especially in 
areas where local capacity exists.13 
39. With one exception, foreign investment in Grenada is not subject to any restrictions, and 
foreign investors receive national treatment.  Th e only restriction is a requirement for foreign 
investors to obtain an Alien Landholding Licence to hold property, an interest in land, real estate or 
shares.  These licences involve the payment of 10% of  the value of the land or interest in the real 
estate or shares to be purchased.  Licences are granted once applications have been properly submitted to Cabinet for consideration and fees have been paid. 
40. Incentives for foreign investment in Grenada are governed by a number of Acts including the 
Investment Code Incentives Act of 1983, (the Inv estment Code) the Fiscal Incentives Act of 1974, 
and the Hotel Aids Act of 1954 (see Chapter III(3)(ii )).  Benefits under the Investment Code, which 
                                                     
 
12 Grenada Ministry of Finance on line information. "Grenada leading the way in Trade Policy".  
Viewed at:  http://finance.gov.gd/newsitem.aspx?nid=1097. 
13 OAS Foreign Trade Information System online information.  Viewed at:  
http://www.sice.oas.org/action/gr enada/GRENA_E2.a sp#INVESTMENT. WT/TPR/S/190/GRD Trade Policy Review 
Page 10 
 
 
allows the Minister of Finance to increase or exte nd concessions granted to investors already based in 
Grenada, include full repatriation of capital or profits arising out of an investment in Grenada;  full 
income tax exemptions for any profits related to th e investment;  and consideration of depreciation in 
plant and machinery and hotel buildings in calculati ng property or other taxes.  If not granted an 
exemption under the Fiscal Incentives Act, foreign inv estment profits are subject to a 30% tax rate.  
Grenada has a withholding tax of 15% and a 5% tax on the sale of property. 
41. Grenada’s Economic Reform Programme 2006-08  introduced a new investment incentive 
policy, aimed at increasing the predictability, stabilit y, and transparency of the legal regime for 
investment, while promoting the development of international best practices on investment.  The 
programme outlined a series of measures including th e cessation of tax holidays, measure adopted as 
from 1 January 2006, and the enactment before  end 2007 of a single Investment Act. 
42. Grenada has signed bilateral investment treaties with the United Kingdom and the 
United States.14  The Grenada/United Kingdom Investment Treaty, signed on 25 February 1998 for a 
duration of ten years, covers investment in all ki nd of assets and property righ ts, including intellectual 
property rights, and concessions to search for or ex ploit natural resources.  Investments by nationals 
or companies of each contracting party are grante d national treatment in the other country, and are 
also subject to an MFN engagement.  The Grenada/United States Investment Treaty, signed on 2 May 1986, entered into force on 3 March 1989.  Apart from investment, the treaty covers a non-exhaustive 
list of five groups of specific rights, including:  tr aditional property rights;  rights in companies;  
monetary claims and titles to performance associated w ith an investment;  intellectual property rights;  
and rights conferred by law or contract or any licences and permits pursuant to law. 
43. Grenada has double taxation arrangements with other CARICOM Member States through the 
Revised Treaty.  Grenada has signed a tax inform ation and exchange agreement (TIEA) with the 
United States, under which the two parties are oblig ed to exchange information relating to the 
enforcement of tax laws.   
(4) I
NTERNATIONAL RELATIONS  
(i) World Trade Organization 
44. Prior to Independence, on 7 February 1974, Gr enada applied the GATT de facto as a member 
of the metropolitan territory of the United Kingdom.  Grenada became a GATT contracting party on 
9 February 1994, under Article XXVI:5(c) with its rights and obligations under GATT retroactive to 
the date of Independence.15  Grenada became a WTO Member in February 1996 and extends at least 
MFN treatment to all its trading partners. 
45. Under the GATS, Grenada made initial commitments on tourism (hotels development), 
recreational (entertainment and sporting services), communications (telecommunications and courier 
services) and financial (reinsurance) services.  Grenada presented an offer in the extended WTO 
negotiations on telecommunications, but did not partic ipate in the extended negotiations on financial 
services.  Grenada subscribed to the Fourth Pr otocol on basic telecommunications on 4 December 
1997 and the agreement entered into force 5 February 1998.16  In March 2003, Grenada submitted an 
                                                      
14 Organization of American States online information.  Viewed at:  http://www.sice.oas.org/ctyindex/ 
GRD/GRDBITs_e.asp. 
15 GATT document L/7412. 
16 WTO document GATS/SC/96Suppl.1 11 April 1997. Grenada WT/TPR/S/190/GRD 
 Page 11 
 
 
initial offer in the new services negotiations pursuant to the DDA.17  Grenada has not yet submitted a 
revised offer in the negotiations. 
46. Although Grenada has not enacted a Uruguay Round Act, it has begun the process of 
incorporating the WTO Agreements into domestic law (see Chapter III).  To the extent that some of 
the Agreements have been incorporated into domestic law, private individuals can invoke WTO 
provisions in domestic courts. 
47. Grenada has made an important effort concer ning notifications to the WTO.  While it had 
made no notifications prior to 2001, it has submi tted notifications in several areas since then 
(Table II.2). 
Table II.2 
Notifications to the WTO, 2001-07 
WTO Agreement Description Document symbol 
Anti-dumping 
(Article 18.5 and 32.6) No laws relevant to the Agreement 
Notification of laws relevant to the Agreement G/ADP/N/1/GRD/1 15 November 2001 
G/ADP/N/1/GRD/2 5 April 2002 
Import Licensing  (Article 1.4a and 8.2b) Notification of Import Licensing  Procedures 
Replies to Questionnaire on Import licensing Procedures G/LIC/N/1/GRD/1 10 April 2002 
G/LIC/N/3/GRD/119 October 2006 
Services Article V7(A) GATS Notification as part of CARICOM of the removal of 
restrictions to the right of establishment and the provision of services among members S/C/N/229 19 February 2003 
Subsidies and 
Countervailing Measures (SCM) Article XVI.I 
GATT 1994 and 
Article 25 SCM No specific subsidies within th e meaning of the Agreement  
New and full notification of programmes forming the basis of a request for extension G/SCM/N/71/GRD 15 November 2001 
G/SCM/N/71/GRD/Suppl.1 19 March 2002 G/SCM/N/71/GRD/Suppl.2 12 November 2002
G/SCM/N/95/GRD 2 July 2003 
G/SCM/N/99/GRD 2 July 2003 
SCM Article 18.5 and 32  
SCM Article 27.4 No laws relevant to the Agreement 
Notification of laws relevant to the Agreement 
Request for extension of time fo r the grant of certain subsidiesG/SCM/N/1/GRD/1 15 November 2001 
G/SCM/N/1/GRD/2 5 April 2002 
G/SCM/N/74/GRD 11 January 2002 G/SCM/N/74/GRD/Suppl.1 26 March 2002 
G/SCM/N/114/GRD 1 July 2004 
G/SCM/N/123/GRD 8 July 2005 G/SCM/N/128/GRD 8 July 2005 
G/SCM/N/123/GRD/Corr.1 26 July 2005 
G/SCM/N/128/GRD/Corr.1 26 July 2005 G/SCM/N/146/GRD 10 July 2006 
TBT (Article10.6) Notification of guidelines for various products G/TBT/N/GRD/1-10, 30 April 2002- 5 July 2004
TRIPS (Article63.2) Notification of main dedicated laws relating to intellectual 
property IP/N/1/GRD/1 5 March 2002 
IP/N/1/GRD/P/2, IP/N/1/GRD/C/2, and IP/N/1/GRD/C/1 12 March 2002 
IP/N/1/GRD/P/1 IP/N/1/GRD/I/2, 
IP/N/1/GRD/I/1, and  IP/N/1/GRD/D/1, 18 March 2002 
IP/N/1/GRD/I/3 17 July 2002 
 
Source: WTO Secretariat. 
48. Grenada has been more active in  the WTO since 2001, principally through its membership of 
CARICOM.  It has supported the resumption of the Doha Round, as an active participant in ACP-EC 
ministerials, and has supported the need for speci al and differential treatment for developing WTO 
Members, as well as flexibilities for small and vul nerable economies in the negotiations.  Grenada 
also supported a request in the Committee on Subsid ies and Countervailing Measures for an extension 
of time for the continued grant of export subsidies until the year 2018, together with a number of other 
developing WTO Members.18  Together with these countries, Gren ada has argued that the extension is 
                                                      
17 Per the official summary of new services nego tiations viewed at:  h ttp://www.wto.org/english/ 
tratop_e/serv_e/s_negs_e.htm. 
18 WTO document G/SCM/W/535, 12 April 2006. WT/TPR/S/190/GRD Trade Policy Review 
Page 12 
 
 
necessary in order to allow more time for "fuller integration of small and vulnerable economies into 
the multilateral trading system."19 
49. Grenada has not been a complainant or defendant  in any case before the DSB.  It has been a 
third party in one case:  European Communities – Regime for the Importation, Sale and Distribution 
of Bananas.20 
(ii) Preferential agreements and arrangements 
50. Grenada is a founding member of the Caribbean Community and Common Market 
(CARICOM), and of the Organization of Eastern Caribbean States (OECS, see Overview Report).  Grenada is a traditional supporter of integratio n within the OECS and is committed to the 
establishment of the common market, which should result in the free movement of goods, services, 
persons, and capital.  As a CARICOM  member, Grenada expects to benefit from the resulting 
economic integration, cooperation in non-economic  areas, operation of certain common services, and 
coordination of foreign trade policies.  Grenada expe cts the impact of the deepening integration within 
the OECS and CARICOM to be beneficial to its economy, resulting in increased investment, 
enhanced competitiveness, and terms-of-trade gains. 
51. Grenada is a beneficiary of the Revised Cotonou Agreement, under which it receives 
favourable access to the U.K. market in particular fo r its banana exports.  Exports from Grenada also 
enjoy preferential access to the Canadian market through CARIBCAN.  Grenada is a beneficiary 
under the U.S. Caribbean Basin Initiative (CBI)
21;  the share of Grenada' s exports under the CBI and 
CARIBCAN is low (Table AI.3). 
52. As a member of CARICOM, Gr enada has been involved in negotiations between the EC and 
CARIFORUM, which represents a negotiating part nership between CARICOM and the Dominican 
Republic, since 2004.  The objective of the negotiati ons is to conclude an  Economic Partnership 
Agreement between the parties (see  Overview Report Chapter II(4)). 
53. Grenada's products are eligible for the Generaliz ed System of Preferen ces (GSP) schemes of 
Australia, Canada, the EC, Japan, New Zealand, Sw itzerland, and the United States.  Although these 
preferential arrangements have helped secure market s for Grenada’s products, exports remain low.  
The authorities suggest that supply-side constraints have impeded Grenada's e fforts to take advantage 
of preferential agreements and arrangements. 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures, documentation, and registration 
54. Import procedures are regulated by Customs Ac t No. 35 of 1960, as amended, and S.R.O. 
No. 17 of 1961.  The import documents required by customs are:  CARISAD (declaration);  invoice;  bill of lading/airway bill;  insurance certificat e;  certificate of origin (for goods imported under 
CARICOM);  and value declaration (for imports of a c.i.f. value exceeding EC$500).  Additional 
                                                     
 
19 WTO document WT/L/579, 2 August 2004 para. 1(d). 
20 See WTO online information.  Available at:  h ttp://www.wto.org/English/tratop_e/dispu_e/cases_e/ 
ds 27_e.htm. 
21Grenada Industrial Development Corporation online information.  Viewed at:  
http://www.grenadaworld.com/IPA_Information.asp. Grenada WT/TPR/S/190/GRD 
 Page 13 
 
 
forms are required for some shipments involving agri cultural or health-related items (section (1)(ix)).  
Grenada is not a member of the World Customs Organization.  The carrying out of customs procedures is not limited to customs brokers.  Comme rcial importers must be registered with the 
Inland Revenue Department, but have no registration requirements in addition to those for non-
importing businesses.  They are identified in the Inland Revenue Department and in Customs by the 
same Trade Identification Number. 
55. Some 90% of cargo is subjected to physical in spection.  The authorities are considering the 
adoption of a risk-management system, which would likely lead to a more  focused approach to 
physical inspection, expected to come on line in  late 2007.  The averag e time for clearance from 
lodging of documents to receipt of goods is 72 hours. 
56. Import declarations are filed in paper form.  The authorities report that electronic filing should 
be an option by about mid 2008;  Customs uses the ASYCUDA system to process documents 
electronically.  Customs decisions may be challenged in a court of law;  no decisions have been 
challenged to date.  Grenada does not use preshipment inspection. 
57. In a 2006 letter to the International Monetary Fund, and an associated memorandum of 
economic policies, the Government of Grenada la id out the strategic objectives of its reform 
programme for 2006-08, as well as a series of sp ecific objectives.  Among the objectives is to seek 
further technical and financial assistance to stre ngthen administration at the Customs and Excise 
Department.  This might include hiring specializ ed private firms to improve customs revenue 
collections procedures.
22  The Government will also seek a ssistance in strengthening the audit 
capacity at Customs and in the Inland Revenue Depa rtment, and tightening enforcement, including by 
introducing systems to enhance informati on exchange between the departments. 
(ii) Customs valuation 
58. Grenada has not notified its customs valuation regime to the WTO.  It did not invoke the 
special and differential treatment provisions of  the WTO Agreement on Customs Valuation (CVA), 
nor has it responded to the WTO checklist of issues on customs valuation. 
59. Grenada has not modified its domestic legislation to reflect the principles of the CVA.  
Section 20 of Customs (Amendment) Law No. 94 of 1979, and Customs (Amendment) Act No. 40 of 1990 provide the legal basis for the application of cust oms valuation in Grenada;   this legislation is 
based on the Brussels Definition of Value.  Transacti on value is almost never used, and there is no 
legal basis in Grenada for its application.  At th e time of Grenada's last Review, the authorities noted 
that a new Customs Act was at the drafting stage;  this Act has not yet been enacted (mid-2007), but 
the authorities note that the CVA valuation rules shoul d come into force in 2008, together with the 
new value-added tax. 
60. Tariffs are applied on the c.i.f. value of impor ts.  A valuation database is constantly updated 
with reference prices to assist with the identification of under-invoicing.  Minimum import prices are 
still used to determine the customs value of imports:  the list currently in use (Table III.1) is almost 
identical to the one used at the time of the last review:  frost-free refrigerators of certain sizes have 
been added, and freezers, and stoves and ranges have  been removed.  The authorities indicate that 
many of these prices no longer reflect the actual prices of imports, but considera tion is being given to 
an overall revision of the figures.  Work has been ongoing to reform the regime, and the authorities 
hope that commencing in 2007 there will be a gradua l phase-out of minimum prices.  Two items are 
                                                     
 
22 Government of Grenada (2006c). WT/TPR/S/190/GRD Trade Policy Review 
Page 14 
 
 
listed as "restricted", and cannot  be imported without a licence from the Ministry of Economic 
Development and Planning;  the restrictions were imposed to protect domestic production. 
Table III.1 
Minimum import prices applied in Grenada in the period 2001-07  
Items HS tariff heading Minimum c.i.f. price (EC$/dozen) 
School bags (knapsack) 
Travel bags, small (without wheels) 
Travel bags, medium (without wheels) 
Travel bags, large (without wheels) Documentation bags, small Documentation bags, medium 
Documentation bags, large 
Handbags, small Handbags, medium 
Handbags, large 
Panties, children Panties, ladies 
Slips 
Whole slips (ladies) Half slips (ladies) 
Sport shorts 
Track pants Jerseys 
Nighties (children) 
Nighties (ladies) Pyjamas 
Boys briefs 
T-shirts Protective clothing Baby diapers 
School pants 
School shirts Cycle-defrost refrigerators 9-9.9 cubic ft 
Cycle-defrost refrigerators 10-10.9 cubic ft 
Cycle-defrost refrigerators 11-11.9 cubic ft Cycle-defrost refrigerators 12-12.9 cubic ft 
Frost-free refrigerators 9-9.9 cubic ft  
Frost-free refrigerators 11-11.9 cubic ft Frost-free refrigerators 12-12.9 cubic ft 
Frost-free refrigerators 14-14.9 cubic ft 
Frost-free refrigerators 16-16.9 cubic ft 42.02 
42.02 
42.02 
42.02 42.02 42.02 
42.02 
42.02 42.02 
42.02 
6108.21 6108.21 
6108.11 
6108.11 6108.11 
6104.601 
ex6112 ex6110 
6108.30 
6108.30 6108.30 
6107.11 
ex6109 
6101.00 6110.00 
ex6104.6 
6106.902 
8418.10-20 
8418.10-20 
8418.10-20 8418.10-20 
8418.10-20 
8418.10-20 8418.10-20 
8418.10-20 
8418.10-20 180 
180 
240 
300 222 342 
400 
300 360 
480 
13 26 
36 
114 
52 
144 
265 135 
65 
129 299 
24 
94 
960 
10 
100% restricted 
100% restricted 
1,400 (per unit) 
1,470 (per unit) 
1,500 (per unit) 1,531 (per unit) 
1,432 (per unit) 
1690 (per unit) 1727 (per unit) 
2096 (per unit) 
2398 (per unit) 
 
Source : Information provided by the authorities of Grenada. 
61. According to the authorities, under-invoicing remains a problem;  work has started on a 
valuation database to address the issue.  Under-valua tion of used vehicles is a particular problem.  
Customs uses commercial guidebooks to check the values of imported vehicles. 
(iii) Rules of origin 
62. Grenada has not notified to the WTO its preferen tial rules of origin, nor the use (or non-use) 
of non-preferential rules of origin.23 
63. Grenada uses the rules of origin introduced  by CARICOM in 1998.  Duty-free treatment is 
accorded to CARICOM goods satisfying origin requirements only if they are shipped from other member States.  No derogations from rules of orig in requirements are currently applied.  Grenada, 
like other CARICOM members, was expected to im plement the rules of origin contained in the 
Amended Schedule I of the revised Treaty of Ch aguaramas, based on the 2007 HS from 1 January 
2007.  Efforts are being made to introduce HS 2007 during the last quarter of 2007. 
                                                     
 
23 WTO document G/RO/W/106, 29 September 2006. Grenada WT/TPR/S/190/GRD 
 Page 15 
 
 
(iv) Tariffs, and other charges on imports 
64. Taxes on international transactions in goods ra ised EC$210.9 million in 2005, accounting for 
58.6% of the Government’s tax revenue (equal to 15.6% of GDP).  The chief components of these 
international taxes were import duties (EC$50. 1 million) and the consumption tax on imports 
(EC$109.8 million), which together provided around  44% of government tax revenue.  The customs 
service charge, which is set at 5% on the c.i.f. va lue of all non-governmental  imports, raised another 
EC$44.5 million. 
(a) MFN applied tariff structure 
65. Grenada grants at least MFN treatment to all its trading partners.  The application of tariffs is 
governed by the CARICOM Common Ex ternal Tariff, Statutory Rules and Orders No. 37 of 1999.  
Grenada implemented Phase IV of the CET on 1 Ja nuary 2000 under HS 96 coding.  Since then the 
tariff has remained unchanged.  CET tariff changes occur at CARICOM level, but Parliament retains 
ultimate authority for tariff rates. 
66. All rates are ad valorem,  except on two sugar products.24  Grenada does not apply seasonal 
duties, nor tariff quotas.  The tariff, as applied in 2006, comprises 6,330 tariff lines at the ten-digit 
level (Table III.2).  Grenada’s tariff has nine tiers, wi th rates of 0, 5, 10, 15, 20, 25, 30, 35 and 40%;  
the 40% rate applies mostly to agricultural products.  Duty-free treatment is accorded to 5.7% of tariff 
lines for MFN imports.  Some 28.2% of tariff lines ar e subject to international peaks, and 6.4% of 
lines to domestic peaks. 
67. Exceptions to the CET are included in the Lists A, B, C and D.  Goods in List A may be 
imported at rates below the CARICOM CET, while ite ms included in List C are generally subject to 
tariffs higher than the CET, rising to 35% for spir its, beer, tobacco, firearms, motor vehicles, some 
electrical appliances, and jewellery and precious stones. 
68. A customs service charge (CSC) of 5% is applied on the c.i.f. value of all imports 
(see section (1)(v)). 
Table III.2  
Structure of the tariff, 2006 
1. Total number of tariff lines 6,330 
2. Non- ad valorem  tariffs (% of all lines) 0.0 
3. Non- ad valorem  tariffs with no AVEs (% of all lines) 0.0 
4. Tariff quotas (% of all lines) 0.0 
5. Duty-free tariff lin es (% of all lines) 5.7 
6. Dutiable lines tariff average rate (%) 11.8 
7. Domestic tariff "peaks" (% of all lines)a 6.4 
8. International tariff "peaks" (% of all lines)b 28.2 
9. Bound tariff lines (% of all lines) 100.0 
 
a Domestic tariff peaks are defined as those exceed ing three times the overall average applied rate. 
b International tariff peaks are defined as those exceeding 15%.  
Note: Based on the 2000 tariff schedule. 
 
Source:  WTO Secretariat calculations, based on data provided by the authorities of Grenada. 
                                                      
24 HS tariff headings 1701.991 (icing sugar) and 1701.999 (other sugar excluding raw sugar and sugar 
containing added flav ouring or colouring);  these items f ace specific duties of EC$6.60 per 100 kg. WT/TPR/S/190/GRD Trade Policy Review 
Page 16 
 
 
69. The simple average MFN tariff in 2006 was 11. 2% (Table III.3);  the average aggregate 
import duty increases to 16.2% if the CSC is incl uded.  The average MFN tariff for agricultural 
products (WTO definition), at 18.2% (23.2% includi ng the CSC) is well above the overall average.  
Tobacco, fish and fish products, fruit and vegeta bles, beverages and spirits, and live animals and 
products are subject to the highest average rates by WTO category.  The highest rate (40%) is applied 
on a number of agricultural products.  Among manuf actures, higher-than-average rates are imposed 
on textiles and clothing, and leather and footwear.  The lower tariffs, by WTO category, are applied 
on other agricultural products, machinery and equi pment, dairy products, mi nerals and base metals, 
and chemicals. 
Table III.3 
Summary analysis of the MFN tariff, 2006  
MFN 
Description No. of lines Average 
(%) Range 
(%) Coefficient of 
variation 
(CV) Final bound
average 
(%) 
Total 6,330 11.2 0 - 40 0.9 58.1 
HS 01-24 1,087 20.3 0 - 40 0.8 91.8 
HS 25-97 5,243 9.3 0 - 35 0.8 51.2 
By WTO category      
WTO agriculture 1,022 18.2 0 - 40 0.8 100.3 
   Animals and products thereof 147 22.1 0 - 40 0.7 96.9 
   Dairy products 24 6.7 0 - 20 0.9 100.0 
   Coffee and tea, cocoa, sugar etc. 172 17.9 0 - 40 0.8 104.4 
   Cut flowers, plants 56 10.6 0 - 40 1.3 100.9 
   Fruit and vegetables 255 25.3 0 - 40 0.6 107.5 
   Grains 29 15.0 0 - 40 0.8 56.9 
   Oil seeds, fats and oils and their products 95 16.6 0 - 40 1.1 97.9 
   Beverages and spirits 78 24.0 5 - 40 0.5 89.2 
   Tobacco 10 26.0 5 - 35 0.6 100.0 
   Other agricultural products n.e.s. 156 5.8 0 - 40 1.1 101.9 
WTO Non-agriculture (incl. petroleum) 5,308 9.8 0 - 40 0.8 50.0 
   WTO Non-agriculture (excl. petroleum) 5,269 9.8 0 - 40 0.8 50.0 
   - Fish and fishery products 155 25.7 0 - 40 0.7 50.6 
     Mineral products, precious stones and precious 
      metals 410 9.8 0 - 35 0.9 50.0 
     Metals 713 7.1 0 - 20 0.7 50.0 
    Chemicals and photographic supplies 992 7.4 0 - 30 0.7 50.1 
     Leather, rubber, footwear and travel goods 168 10.7 0 - 25 0.7 50.0 
     Wood, pulp, paper and furniture 314 9.7 0 - 20 0.7 50.0 
     Textile and clot hing 948 11.7 0 - 30 0.6 50.0 
     Transport equipment 187 9.9 0 - 35 0.9 50.0 
     Non-electric machinery 593 6.6 0 - 35 0.8 50.0 
     Electric machinery 269 9.8 0 - 35 0.7 50.0 
     Non-agriculture articles n.e.s. 520 13.5 0 - 35 0.7 50.0 
   Petroleum 39 9.4 0 - 25 1.0 50.0 
By ISIC sectora      
Agriculture and fisheries 428 21.0 0 - 40 0.9 92.0 
Mining 116 7.6 0 - 35 1.1 50.0 
Manufacturing 5,785 10.5 0 - 40 0.8 55.8 
By HS section      
  01  Live animals & products 309 23.1 0 - 40 0.7 77.5 
  02  Vegetable products 402 19.6 0 - 40 0.9 101.9 
  03  Fats & oils 53 25.7 5 - 40 0.7 97.2 
  04  Prepared food etc. 323 17.5 0 - 40 0.6 92.2 
  05  Minerals 202 7.0 0 - 25 0.8 50.0 
  06  Chemical & products 930 7.0 0 - 30 0.8 54.0 
  07  Plastics & rubber 234 9.1 0 - 25 0.6 50.0 
  08  Hides & skins 84 10.2 5 - 20 0.7 62.5 
  09  Wood & articles 121 9.9 0 - 20 0.6 50.0 
  10  Pulp, paper etc. 170 8.2 0 - 20 0.8 50.0 
  11  Textile & articles 934 11.3 0 - 20 0.7 51.4 
Table III.3 (cont'd) Grenada WT/TPR/S/190/GRD 
 Page 17 
 
 
MFN 
Description No. of lines Average 
(%) Range 
(%) Coefficient of 
variation 
(CV) Final bound
average 
(%) 
  12  Footwear, headgear 66 16.2 0 - 20 0.4 50.0 
  13  Articles of stone 195 9.9 0 - 25 0.7 50.0 
  14  Precious stones, etc. 61 19.7 0 - 35 0.7 50.0 
  15  Base metals & products 707 7.5 0 - 35 0.7 50.0 
  16  Machinery 895 7.9 0 - 35 0.8 50.0 
  17  Transport equipment 197 9.8 0 - 35 0.9 50.0 
  18  Precision equipment 248 11.4 0 - 30 0.8 50.0 
  19  Arms and ammunition 20 24.3 0 - 35 0.5 50.0 
  20  Miscellaneous manufactures 171 15.3 0 - 20 0.4 50.0 
  21  Works of art, etc. 8 20.0 20 - 20 0.0 50.0 
By stage of processing      
First stage of processing 834 17.1 0 - 40 1.0 78.5 
Semi-processed products 1,827 5.9 0 - 40 0.6 53.4 
Fully-processed products 3,669 12.4 0 - 40 0.7 55.9 
 
a ISIC (Rev.2) classification, excluding electricity (1 line). 
 
Source:  WTO Secretariat estimates, based on data provided by the authorities of Grenada. 
70. Like other CARICOM countries, Grenada maintains a List of Conditional Duty Exemptions, 
which is included in the CARICOM External Tariff Statutory Rules and Orders No. 37 of 1999.  The list contains items classified under 53 HS headings, as well as the purpose for which the goods are imported.  This list has not changed since the last Review of Grenada, but the authorities indicate that 
recommended changes are under considera tion.  The proposed changes would, inter alia, remove 
some goods, and revise which ministries have the authority to grant the exemptions.  The purposes for these exemptions are sectoral, economic and social development, health and safety, public sector procurement, or culture and sports.  A number of  products are ineligible for concessions;  these are 
included in a positive list.  Various incentive schem es grant import-duty con cessions for goods to be 
used in approved industries. 
71. Article 164 (Promotion of Industrial Developmen t) of the revised Treaty of Chaguaramas 
allows less developed CARICOM countries to petition COTED to suspend Community origin treatment to products "as a temporary measure in or der to promote the development of an industry".  
COTED approved list of products  and rates in January 2006.
25  These rates were not being applied by 
Grenada as of early 2007. 
(b) Bound MFN tariffs 
72. Grenada bound all tariff lines upon its accession to the WTO in 1996.  Tariffs on products 
under HS headings 25-97, other than those included in Annex I of the WTO Agreement in Agriculture, were bound at a uniform rate of 50%.  Agricultural products (WTO definition) were 
bound at a ceiling level of 100%, with an implementa tion period of six years.  Some exceptions were 
bound at lower rates (boneless meat, soybean oil, po tato chips, breakfast cer eals, cocoa butter, and 
food preparations).  Some products were bound at zero;  these are generally products used as inputs 
(e.g., some seeds, inedible tallow,  and soybean meal).  A number of fruits (e.g., bananas, pineapples, 
citrus fruit), as well as spices (e.g. cloves, nutmeg,  mace, ginger, saffron, turmeric) were bound at 
200%.  The average bound tariff, at 58.2%, is over five-fold the applied rate;  the average bound rate for agricultural products (WTO definition) is 100. 3%, while that for non-agricultural goods is 50%. 
                                                     
 
25 The eligible products are:  aerated beverages (2202.101); waters, other waters (201.10); beer (22.03); 
malt (2202.90.20);  candles/paraffin wax (34.06);  curry powder (0910.50);  pasta (19.02);  animal feed (23.09);  
wooden furniture (9401.60/9403.60);  solar water heaters (8419.19);  and industrial gases/oxygen, carbon dioxide, acetylene (2804. 40, 2811.21,  2901.292). WT/TPR/S/190/GRD Trade Policy Review 
Page 18 
 
 
73. Following the implementation of Phase IV of th e CET in 2001, the applied tariffs on eleven 
agricultural HS lines exceeded the bound rates.  In  order to rectify this discrepancy, Grenada 
completed negotiations in 2002- 03 under GATT Article XXVIII for the renegotiation of tariff 
bindings.26  The authorities note that, while seeking to co mply with its obligations, Grenada also took 
into account in these negotiations concerns over food security, its CARICOM obligations, and the 
perceived need to give protection to key domes tic industries.  The negotiations resulted in the 
bindings for nine tariff lines being increased fro m 30% or 35% to 100 as from 1 January 2003.27  
After the renegotiation, applied rates appear to ex ceed bound rates for some 15 HS headings at the 
ten-digit level (Table III.4). 
Table III.4 
Tariff headings where applied rates exceed bound rates, 2006 
HS code Description MFN duty Bound duty 
0202.3010.00 Boneless tenderloin, frozen 30 25 
0202.3020.00 Boneless sirloin, frozen 30 25 
0202.3030.00 Boneless minced (ground), frozen 30 25 
0202.3090.00 Other boneless meat of  bovine animals frozen 30 25 
0207.1430.00 Fowl liver frozen 30 25 
0207.3400.00 Fatty liver, duck, geese or  guinea fowl, fresh or chilled 30 25 
0709.6010.00 Sweet peppers 40 35 
0709.9030.00 Pumpkins 40 35 
1502.0010.00 Tallow 5 0 
1507.9000.00 Other soy-bean oil and its fractions, not chemical grade 40 35 
2009.9020.00 Other mixtures of grapefruit and orange juices 40 30 
2106.9080.00 Preparations of types used in manufacture of beverages with alco > 0.5% volume 35 30 
2203.0090.00 Beer made from malt, n.e.s. 35 30 
2204.2910.00 Grape must with fermentation pr evented or arrested by adding alcohol 35 30 
2204.2990.00 Other wines 35 30 
 
Source : WTO Secretariat. 
(c) Tariff and tax concessions 
74. Import duty exemptions are available for bene ficiary industries under Grenada's incentives 
schemes (section (3)(ii)). 
75. As part of the Government’s efforts to repair  damage caused by Hurricane Ivan in September 
2004, temporary tax relief was gran ted (until February 2005), to cer tain categories of imports by 
homeowners, hotels, manufacturers, farms, and relief operations.  Tax- and duty-free status was granted on a variety of goods, including all building materials (except carpets and paints) necessary to 
repair damaged houses, as well as furniture, fixtures,  and office supplies, needed for replacement of 
damaged items, or to upgrade existing facilities;  and all agricultural implements, tools and other 
inputs.  A lower (2.5%) customs service charge was levied on these items, except for agricultural 
imports. 
76. In the lead-up to the Cricket World Cup competition, a temporary derogation to the 
CARICOM CET was granted in 2006 to Grenada and other OECS countries for imports of non-
                                                     
 
26 WTO document G/MA/TAR/RS/91, 7 February 2003. 
27 The renegotiated lines are:  0207.149 (poultry meat, other cuts and offals of fowl frozen), 0207.142 
(fowl wings frozen), 0207.141 (fowl backs and necks frozen), 0207.271 (turkey backs, necks and wings), 
0207.42 (other turkey cuts and offal), 0207 (other poultry meat), 2203.001 (beer), 2203.002 (stout), 2202.902 (malt). Grenada WT/TPR/S/190/GRD 
 Page 19 
 
 
CARICOM cement needed for the construction of f acilities.  These imports were also needed by 
Grenada for post-Ivan and -Emily reconstruction. 
77. Duties and the customs service charge are not applied on imports destined for government 
institutions.  SRO 37/99 provides the legal basis for this exemption. 
78. The Government announced in 2006 its intention to review options for the reform of the 
import duty regime.  The review was scheduled for completion by end-September 2006, and was to 
consider, inter alia,  "the need to provide import duty exemptions for exporters, including in the 
tourism sector", the objective being "to reduce the scope of exemptions currently provided for in 
SRO/37/99".28  Customs and the Grenada Industrial Development Corporation are examining the full 
list of conditional duty exemptions.  The authorities anticipated that this work might be completed 
around November 2007. 
(d) Tariff preferences 
79. Grenada grants duty-free access to imports from other CARICOM countries provided they 
meet the CARICOM rules of origin (with some ex ceptions).  Exceptions include articles subject to 
licensing under Article 164 of the revised CARICOM Tr eaty.  Preferential imports are subject to the 
customs service charge. 
(v) Other levies and charges 
80. Several levies and charges are applied to trade.  A customs service charge (CSC) of 5% is 
applied on all imports. 
81. Imports are also subject to the general cons umption tax (GCT), unde r General Consumption 
Tax Act No 7 of 1995.  The GCT differentiates between local production an d imports, and between 
sources of imports.  With a few exceptions, im ports from non-CARICOM countries are subject to a 
rate of 25% on the c.i.f. value.  The rate for all goods produced by local manufacturers and imports 
from CARICOM countries specified in Schedule 3 of the GCT is 10% on the ex-factory price.  Some goods in Schedule 4 of the GCT Act, imported from outside the CARICOM, are also taxed at 10%.  
Lower rates apply to items such as beverages serv ed in restaurants, most agricultural and food 
products (domestic and imported alike), utilities ta riffs (excluding interna tional telephone services), 
and medicaments.  A number of services and all inputs used in the manufacture of local products are 
exempt from the GCT. 
82. Petrol Tax (Amendment) Act No. 9 of 2006, wh ich replaced Petrol Tax Act No. 10 of 1986 
and its amendments, provides for a tax of EC$3 per ga llon of petrol imported for local consumption.  
The tax must be paid by the importer to the Comptro ller of Customs.  This tax was expected to raise 
EC$16.3 million in revenue in 2007. 
83. Under Environmental Levy Act No. 5 of 1997, an environmental levy is charged on vehicles, 
"white goods", and beverage contai ners imported into the country;  this levy is also applied on 
households that consume 100 kilowatt hours or more of electricity per month, and on stay-over and 
marine visitors.  The levy on beverages is EC$0.50  per plastic or glass container, and EC$0.25 for 
other containers;  it is collected by the Comptro ller of Customs upon import.  Domestic products are 
not subject to the levy.  The author ities declined to provide a rationale  for this distinction, but noted 
that questions have been asked within the region abou t this aspect of the levy.  They further indicated 
that there is a proposal pending in the Ministry of Finance that would make all beverage containers, 
                                                     
 
28 Ministry of Finance (2006), p. 12. WT/TPR/S/190/GRD Trade Policy Review 
Page 20 
 
 
regardless of their type or origin, subject to a levy of EC$0.25.  The levy is partly refundable:  75% is 
refunded within six months upon satis factory proof to the Comptroller of Customs, by the importer, of 
re-export of the container or of its disposal in  a manner acceptable to the Grenada Solid Waste 
Management Authority.  The environmental levy on "wh ite goods", is at 1% of the c.i.f. value;  it is 
charged on a range of goods incl uding fans, air conditioning machin es, refrigerators, freezers and 
other refrigerating or freezing equipment, clothes dryers, dish washing machines, washing machines, 
vacuum cleaners, floor polishers, kitchen waste di sposers, and television receivers (including video 
monitors and projectors).  The levy on vehicles is at 2% of the c.i.f. value on new vehicles or used vehicles less than five years old, or 30% of the c.i.f. value on imported vehicles over five years old 
(except trucks).  For imported used trucks over five y ears old, the levy is:  5% of the c.i.f. value for 
trucks between 1 and 10 tonnes;  10% for trucks be tween 11 and 20 tonnes;  and 20% for trucks of 20 
tonnes and over. 
84. The overall incidence of levies and charges app lied on imports is expected to decline with 
new fiscal reforms.  In order to reduce its depe ndence on border taxes, the Government of Grenada 
intended to implement a VAT to replace a number of other duties from 1 October 2007.  The 
authorities indicate that implementation of the VAT might be delayed until 1 January 2008.  With the 
implementation of the VAT, the following taxes will be  abolished:  the genera l consumption tax (25% 
on most imports ), the motor vehicle purchase tax, and the airline ticket tax.  Due to the repeal of the 
other taxes the VAT is intended to be revenue-neutral. 
(vi) Import prohibitions, restrictions, and licensing 
85. Import prohibitions or other restrictions apply on  a range of goods (Table III.5).  All of the 
import prohibitions relate to matters of health, safety,  law enforcement, or related issues;  some of the 
restricted items are also commercially quite significant (i.e., alcohol and tobacco).  The  importation of 
black bass, all varieties of carp, and all varieties of goldfish is prohibited  under the Importation of 
Fish (Regulation) Act, Cap 146 of the Laws of Gren ada.  The Publications (Prohibition) Act, Cap 147 
prohibits the importation of publications if considered  contrary to public inte rest.  Imports from Iraq 
and Kuwait are banned.  Permission from the Commissi oner of Police is needed for the importation of 
weapons, fireworks, and explosives from all sources. 
86. Grenada maintains a licensing system to re gulate the import of certain goods for trade 
reasons.  Grenada's import-licensing regime has been notified to the WTO.
29  Grenada replied to the 
questionnaire on import licensing procedures in October, 2006.30  The licensing regime is regulated by 
the Supplies Control Act Cap 314 and the Supplies C ontrol Regulations (Section 3).  The regime is 
administered by the Ministry of Finance and Trade through its Consumer Affairs Division.  Licences are required for imports of goods that appear on the Supplies Control Act Cap 314 and the Supplies 
Control Regulations (Section 3) (List of Goods Requiring an Import Licence Prior to Importation) 
(Table III.6).  Licences are generally valid for either three months or one year. 
87. In its notification to the WTO, Grenada noted  that the licensing system applies to goods 
originating from CARICOM and extra-regional coun tries.  Licensing is automatic except for whole 
chicken (HS 0207.12), eggs (HS 0407.003), and war toys (HS 9503.90), which are subject to non-
automatic licensing.  Imports of eggs and chicken require a sanitary certificate before they are granted 
a licence.  The authorities note that the import- licensing system is applied for regulating and 
monitoring purposes, as well as security.  Under th e Supplies Control Act, only the Comptroller of 
Supplies can add or delete items from the list without legislative approval. 
                                                     
 
29 The latest notification is contained in WTO document G/LIC/N/3/GRD/1, 19 October 2006. 
30 WTO document G/LIC/N/3/ GRD/1, 19 October 2006. Grenada WT/TPR/S/190/GRD 
 Page 21 
 
 
Table III.5  
Prohibited or restricted imports, 2007  
Prohibited imports  
Base or counterfeit coins of any country;  coin legally current in the colony or a ny money purporting to be such, not being of the 
established standard in weight and fineness;  articles of food intended for human consumption declared by the sanitary authorit y to be 
unfit for such purpose;  indecent or obscene prints, paintings, photographs, books, cards, lithographs  or other engravings or a ny other 
indecent or obscene articles;  infected cattle , sheep or other animals, or carcasses th ereof, and hides, sk ins, horns, hoofs or  any other part 
of cattle or other animals, which may be prohibited in order to prevent the introducti on or spread of any communicable disease;   matches 
containing white (yellow) phosphorus;  all goods which if sold wo uld be liable to forfeiture u nder the merchandise marks ordina nce, and 
also all goods of foreign manufacture bearing any name or trade mark being or purporting to be the name or trade mark of any 
manufacturer, dealer or trader in the colony  or the United Kingdom or any scheduled territory, unless such trade name or trade mark is 
accompanied by a definite indication of the country in which the goods were made or produced;  pr epared opium and pipes or othe r 
utensils for the use in connection with the smoking of opium or  the preparation of opium for smoking; goods bearing the royal a rms of 
Great Britain or arms so closely resembling the same as to be  calculated to deceive unless the manufacturer of such goods holds  Her 
Majesty’s authority to use them in connec tion with his trade, business, calling or profession;  shaving brushes manufactured in  or 
exported from Japan;  fictitious stamps and any die, plate,  instrument or materials capable of making such stamps;  goods the i mportation 
of which is prohibited by any other law. 
Restricted imports 
Arms and ammunition, except with the written permission of the Ch ief of Police;  raw opium or coca leaves excep t in accordance with 
the provisions of the part of the dangerous drugs ordinance (No. 30 of 1936) and into the port of Saint George’s;  drugs to whi ch section 
3 of the Drug Abuse Act No. 7 of 1992 applies;  goods which bear a design in imitation of any currency or bank notes or coin in  common 
use in the colony or elsewhere unless with the approval of the Co mptroller;  spirits (not being (liqueurs, cordials), perfumed spirits or 
medicinal spirits) and wine, unless specifically reported as such, and unless in aircraft, or in ships of 30 tons burden at lea st, and in casks 
and other vessels capable of containing liquids, each of such casks  or other vessels being of th e size or content of 9 gallons at the least or 
unless in glass or stone bottles properly packed in cases, or in  demijohns, each case or demijohn containing not less than 1 ga llon;  
tobacco, cigars, cigarillos or cigarettes, unless specifically repor ted as such and unless in aircraft, or in ships of 30 tons burden at least, 
and unless in whole and complete packages each containing not le ss than 20lbs net weight of tobacco, cigars, cigarillos or ciga rettes;  
tobacco extracts, essences or other concen trations of tobacco, or any admixture ther eof, tobacco stalks and tobacco stalk flour  except 
under such conditions as the collector, with the approval of the administrator, may either genera lly or in any particular case allow;  and 
goods the importation of which is regulated by any other law except in accor dance with such law. 
 
Source : Information provided by the authorities. 
88. All persons, firms, and institutions are eligible  to apply for licences.  Licence applications 
must be made prior to importation.  The authoriti es note that applications are usually presented one 
week prior to the arrival of imports, but applica tions are often presented a few hours before clearing 
Customs;  they are processed within 48 hours and are va lid for three months from the date of issue.  In 
the event of refusal to issue an im port licence, the applicant is inform ed of the reason for refusal.  The 
applicant has the right to appeal to the Permanent Secretary, Ministry of Finance and Trade, or may 
seek redress in civil court.  There is no deposit or advance payment requirement associated with the 
import licence;  a fee of EC$5 is charged per licence.  There are no penalties for the non-use of an import licence; licences are not transferable. 
89. In 2005, Grenada removed quantitative restric tions maintained under Article 56 of the 
CARICOM Treaty, on a number of imports from third countries and from the more developed 
countries (MDCs) of CARICOM.
31  Under Article 164 (Promotion of Industrial Development) of the 
revised Treaty of Chaguaramas, these restrictions have  been tariffied.  The authorities indicate that 
these tariffs are not currently being applied (mid 2007 because of domestic supply constraints.  In addition, non-automatic import licensing for oils and fats was eliminated in 2005, except as a 
safeguard measure approved by COTED. 
90. Statistics are not available on the number of licences requested and granted. 
                                                     
 
31 These products were:  curry powder (HS 0910.500);  wheat flour (HS 11.01);  uncooked pasta, not 
stuffed (ex HS 19.02);  aerated beverages (ex HS 22.02);  candles (ex HS 34.06);  oxygen (HS 2804.400);  
carbon dioxide (HS 281 1.210);  acetylene (HS 2901.002);  solar water he aters (ex HS 84.19);  and seats of wood 
and upholstered furniture (ex HS 94.01). WT/TPR/S/190/GRD Trade Policy Review 
Page 22 
 
 
Table III.6 
Items subject to import licensing, 2007  
Item HS tariff heading 
Automatic licensing  
Processed pork products 
Milk (bulk)  
Sugar Rice (bulk)  
Ground spices 
Oil and fats Jellies and jams 
Malt beverages 
High proof spirits Animal and poultry feed 
Cigarettes 
Paints Varnishes and lacquers 
Wooden doors 
Toilet and paper  Other tissue paper 
Corrugated galvanized sheets 
Aluminium widows and doors Mattresses and mattress supports 
Mops 1701.10 
ex 10.06 
0910.99 
ex 15.17 
2007.109 
2202.902 2203.002 
2203.009 
2402.200 3209.001 
3209.003 
4418.20 4818.10 
4818.409 
7210.909 7610.100 
ex 9404 
9603.002 
Non-automatic licensing  
Chicken 
Chicken eggs 
War toys 0207.10 
0407.003 
9503.90 
 
Source : Information provided by the authorities. 
(vii) Contingency measures 
(a) Anti-dumping and countervailing measures 
91. The Customs Duties (Dumping and Subsidies) Ordinance of 1960 governs anti-dumping and 
countervailing measures.  This legislation has been notified to the WTO.32  Grenada received no 
questions from Members following its notification. 
92. The Ordinance Act authorizes the imposition of duties where goods imported are considered 
dumped or subsidized if it is in the interest of th e State and when the effect of the dumping or of the 
subsidy is considered to cause or threaten material injury to an established industry in Grenada.  In 
practice, no anti-dumping or countervailing regime or body is in place in Grenada;  and no anti-
dumping or countervailing measures have ever been applied. 
(b) Safeguards 
93. Grenada did not avail itself of the special saf eguard provisions of the WTO Agreement on 
Agriculture, or the right to use the transitiona l safeguard mechanism in the WTO Agreement on 
Textiles and Clothing. 
94. Grenada does not have specific na tional legislation with respect to safeguards,  However, as a 
CARICOM less developed country, the special provisions in Chapter 7 of the Revised Treaty of Chaguaramas (in particular Article 150) may be invoked when necessary to impose safeguard 
measures.  Article 150 (Safeguard Measures) entitl es a disadvantaged country to limit imports of 
goods from other member states, for up to three years (unless COTED authorizes a longer period), 
and to take such other measures as COTED may au thorize.  These provisions superseded those of 
                                                     
 
32 WTO document G/ADP/N/1/GRD/2, G/SCM/N/1/GRD/2, 5 April 2002. Grenada WT/TPR/S/190/GRD 
 Page 23 
 
 
Article 84 and Articles 28 and 29 of the original  CARICOM Treaty.  Article 164 (Promotion of 
Industrial Development) allows less developed CARICOM countries to petition COTED to suspend 
community origin treatment to certain products and to apply tariff rates higher than the CET.33 
95. Grenada has never made recourse to the safeguard provisions in Articles 150 or 164 of the 
revised Treaty of Chaguaramas. 
(viii) Technical regulations and standards 
96. Grenada has notified the WTO that the Grenada Bu reau of Standards is its enquiry point and 
national notification authority under the WTO Agre ement on Technical Barriers to Trade (TBT).  
Grenada adopted the WTO Code of Good Practice for the preparation, adoption, and application of 
standards in 1997.  During the review period, Gren ada also notified a number of technical regulations 
to the TBT Committee before their adoption:  requi rements for labelling of pesticides and other toxic 
chemicals, domestic electrical applia nces, and retail packages of cigarettes.34  Grenada has also 
notified to the Committee on Technical Barriers to  Trade its specification for four food-related 
products:  wet seasoning, brewery products, packaged wa ter, and for the sampling, tests, and analysis 
of rice.35  It has notified its specification for rum, for safety matches, and its requirements for the 
approval and licensing of child care homes.36  In 2007, two additional notifications were made, for 
Portland cement and hollow concrete blocks.37 
97. Grenada uses the harmonization system to adopt technical regulations or standards.  These are 
adopted or adapted from existing international and or regional (CARICOM) standards.  Standards Act 
No. 6 of 1989 (Cap 310 of the Laws of Grenada) , which established the Grenada Bureau of Standards 
(GDBS), set rules on standardization, testing, and type approval of goods.  The GDBS is in charge of 
preparing and promoting standards in goods, servi ces, practices, and processes.  The GDBS is a 
member of Caribbean Regional Organisation fo r Standards and Quality (CROSQ) and the Pan 
American Standards Commission (COPANT), and a subscriber member of the International Organization for Standardization (ISO).  It is also the national contact point for the Codex 
Alimentarius Commission.  The GDBS recognizes a ll standards from members of the ISO.  The 
GDBS has a number of technical committees in th e areas of advertising, consumer products, 
engineering and environment, food and food products, fruits and vegeta bles, herbs and spices, tourism 
products and services, metrology, pesticides, pneum atic tyres, quality assurance, and certification. 
98. The formulation of standards and technical re gulations is undertaken upon the authorization 
of the Standards Council, chaired by a nominee of the Minister of Trade and Industry, and comprising 
representatives from the public sector, the private sect or, the Trade Union Council, the Commodities 
and Consumer groups and the Engineering Association. 
                                                     
 
33 The goods for which Article 164 may be applied and CARICOM origin suspended are (number of 
years, MDC/third-party rates in per cent, between parentheses):  aerated beverages (10, 70/100);  waters, other 
waters (10, 70/100);  beer (10, 70/100);  malt (10, 70/100);  candles, paraffin wax (7, 40/50);  curry powder 
(5, 30/40);  pasta (5, 50/100);  animal feed (10, 50/100);  wooden furniture (10, 40/50);  solar water heaters 
(10, 40/50);  industrial gases, oxygen, carbon dioxide, acet ylene (10, 40/50). 
34 WTO documents G/TBT/N/GRD/2, 30 April 20 02;  G/TBT/N/GRD/3, 30 April 2002;  and 
G/TBT/N/GRD/8, 11 July 2003, respectively. 
35 WTO documents G/TBT/N/GRD/1, 30 April 2002;  G/TBT/N/GRD/5, 11 July 2003;  
G/TBT/N/GRD/6, 11 July 2003;  and G/TBT/N/GRD/10, 5 July 2004. 
36 WTO documents G/TBT/N/GRD/9, 5 July 2004, G/TBT/N/GRD/7, 11 July 2003 and 
G/TBT/N/GRD/4, 10 July 2003, respectively. 
37 WTO documents G/TBT/N/GRD/11, 24 May 2007, and G/TBT/N/GRD/12, 24 May 2007.  WT/TPR/S/190/GRD Trade Policy Review 
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99. The GDBS develops both technical regulations (c ompulsory standards), and standards.  The 
process for adopting or adapting a technical regulation (or standard) begins with the identification of a 
need, and the search for international or regional st andards.  This identified need may originate in 
proposals by national organizations and institutions, an existing GDBS technical committee, or by the 
Bureau’s staff.  A draft specification is deve loped by the GDBS and discussed by a technical 
committee;  the completed draft is submitted to th e Standards Council for initial approval, followed 
by approval by the Standards Council.  The technica l regulation or standard will then be issued for 
public comments (60 days), through publication of a notice in the Grenada press (two weeks), and the 
circulation of drafts to public libraries, the Chamber of Industry and Commerce, the Industrial 
Development Corporation, and othe r relevant parties.  Following the receipt of comments and their 
review, the standard may be ame nded and sent in revised form to the Standards Council.  This is 
followed by:  the declaration of the technical regula tion or standard (including 60 days notice in the 
Gazette in the case of a technical regulation);  GDBS notification to the WTO with 60 days for 
circulation and comments;  and amendment, if necessary, on the basis of comments received from 
WTO Members.  Subsequently, the Minister signs the order and it is published in the Official Gazette  
and the press (within two days). 
100. There is no mechanism to eliminate technical regul ations that no longer serve their purpose.  
According to the authorities, there has never been a need to eliminate any technical regulations or 
standards.  However, technical regulations and sta ndards are reviewed periodically or if there is a 
need.  In that case, the standard is brough t before a specification technical committee. 
101. Of the 51 standards adopted between 2000 and 2006, 13 became technical regulations 
(Table III.7).  At end 2006 there were 137 Grenadia n national standards, 23 of which were technical 
regulations.  Technical regulations and standard s cover:  advertising, building and associated 
construction materials, consumer  products, environmental management, food items and safety, 
flowers and fruits and vegetables, gases, labelli ng, metrology, pneumatic tyres, quality assurance, 
services, textiles, and warranties. 
Table III.7 
Technical regulations adopted by Grenada, 2001-06 
Name of standard Authority of enforcement 
Specification for wet seasoning SRO No. 16 of 2002 
Specification for labelling-labelling of pe sticides and other toxic chemicals SRO No. 16 of 2002 
Specification for the labelling of domestic electrical appliances SRO No. 16 of 2002 
Requirements for the approval and licensing of child care homes SRO No. 16 of 2003 
Specification for rice SRO No. 23 of 2003 
Specification for labelling of commodities: labelling of  retail packages of ciga rettes SRO No .24 of 2003 
Specification for safety matches  SRO No. 25 of 2003 
Specification for packaged water SRO No. 26 of 2003 
Specification for rum SRO No. 12 of 2004 
Specification for brewery products SRO No. 13 of 2004 
Specification for corrugated galvanized and alumin ium and zinc (aluzinc) coated steel sheets for 
roofing and general purposesa SRO No. 9 of 2005 
Specification for Portland cement SRO No. 28 of 2006 
Specification for specification for hollo w concrete blocks SRO No. 29 of 2006 
 
a Not notified to the WTO. 
 
Source:  Grenada Bureau of Standards. 
102. There are no certification bodies in Grenada othe r than the GDBS, which is authorized to 
certify products and services, and c onducts batch, product, and quality cer tification.  Despite efforts to 
improve laboratory capabilities, resource constraint s pose an impediment to Grenada’s ability to Grenada WT/TPR/S/190/GRD 
 Page 25 
 
 
develop and implement standards and technical regulations.  In 2004, the GDBS expanded its 
laboratory services with physical space and testing equipment for concrete blocks and electric meter 
testing.  However, this effort was hindered severel y by damage to the equipment by Hurricane Ivan.  
The GDBS Metrology Laboratory and the Nationa l Water and Sewage Authority (NAWASA) 
laboratory have also been upgraded, but additio nal resources are still needed at both of these 
institutions.  The GDBS conducts three certification programmes:  batch certification, quality system 
certification, and product certification.  In the co ntext of Grenada's previous review, the authorities 
pointed out that, since few of the laboratories in Gr enada were accredited, very little testing is carried 
out in the few areas that can be dealt with, and ef forts were being made to have the laboratories 
upgraded and certified.  In 2004, a project on Improving the National Quality Infrastructure, funded 
by the Organization of American States, evalua ted the laboratory capabilities in Grenada with the 
intention of making recommendations for upgrading a nd eventually registration and accreditation.  As 
at mid 2007, consideration was being given to pu tting in place a regional accreditation programme for 
laboratories.  This effort was being spearhead ed by the Caribbean Regional Organization for 
Standards and Quality (CROSQ). 
103. There is a mandatory conformity assessment progr amme for all the products that are notified 
as subject to technical regulations.  This asse ssment programme applies equally to imported and 
domestically produced items, (same terms and cond itions).  Imported and domestically produced 
food-related products must be accompanied by a certi ficate of analysis by an independent, recognized 
laboratory.  The certificates are processed and verifi ed by the GDBS.  Domestic electrical appliances, 
corrugated galvanized and alu-zinc sheets, and pneum atic tyres are physically  inspected to ensure 
compliance with labelling requirements and product  specifications.  Surveillance of prepackaged 
goods and foods for compliance with labelling requirements is conducted at the point of entry and by 
random inspection of goods at retail outlets.  Ther e is a certification progra mme for hollow concrete 
blocks that includes continuous testing prior to  compliance.  Upon compliance and subsequent 
certification, there is structured contin uous testing based on random sampling. 
104. Grenada is a signatory to the Internationa l Plant Protection Convention (IPPC), and is 
therefore expected to adopt all standards developed by the IPPC. 
(ix) Sanitary and phytosanitary measures 
105. Grenada has not made any notifications to the WTO SPS Committee.  The Veterinary and 
Livestock Division of the Ministry of Agriculture is responsible for sanitary (animal health) issues, 
while the Pest Management Unit for Phytosanita ry issues and the Produce Chemist Laboratory are 
responsible for issues relating to pesticides and toxi c chemicals.  The primary legal instruments for 
SPS matters are Plant Protection Act No. 19 of 1986 (Cap 242);  the Animal (Disease and Importation) Act (Cap 15), and Acts Nos. 7 and 23 of 1967;  and the Pesticides Control Act, No. 18 of 
1973. 
106. Imports of live animals, plants, and seeds are subject to quarantine regulations.  The Pest 
Management Unit imposes measures on imports fro m countries with pests on the Plant Quarantine 
Pest List , which is maintained and updated regular ly.  All prerequisite doc umentation and conditions 
must be satisfied by the time the goods arrive at a port  of entry;  if this requirement is not met, the 
goods will be returned or destroyed.  Under the Pl ant Protection Act (Cap 242), an import permit must 
be issued prior to the importation of plants, plant products, plant pests, or soil. 
107. The list of the Quarantine Pests of Grenada is c ontained in Schedule 1 of the Act.  The Act 
mandates that all plants, plant products, plant pests, live beneficial organisms,  and soils imported into 
Grenada must be accompanied by a phytosanitary cer tificate, issued by the appropriate agricultural WT/TPR/S/190/GRD Trade Policy Review 
Page 26 
 
 
authority of the exporting country, that conforms to the model adopted by the International Plant 
Protection Convention of 1951 as amended.  The Plan t Protection Act calls for the establishment of a 
Plant Protection Board and a Plant Quarantine Serv ice, to protect the agricultural resources of 
Grenada.  The duties of the Board are to advise the Minister on all matters provided by the Act.  The 
Board, which was reactivated in mid 2006, cons ists of six members from various government 
agencies, and meets quarterly to review legislation, discuss the status of plants and plant products, and 
consider relevant issues.   
108. From mid 2006, the Plant Protection Board has been discussing a draft Plant Protection and 
Quarantine Act (based on the models adopted by FAO and CARICOM) to replace Cap 242.  
According to the authorities, this new draft Act will  facilitate fulfilment of Grenada's obligations to 
the WTO and the IPPC.  The final two draft schedules (appendices to the Draft Plant Protection Act) have been revised.  A public consultation is scheduled to take place by the end of the third quarter of 
2007, after which the draft will be submitted to Cabinet as the first step in enactment. 
109. Under the Animal (Disease and Importation) Act (Cap 15), of 1953, and Acts Nos. 7 and 23 
of 1967, imports of live animals and poultry, and carcasses or parts of animals and poultry require a 
special permit from the Chief Veterinary Officer.  For sanitary reasons, licences are also required to 
import birds, reptiles, or insects.  The Act also allo ws for the restriction, co ntrol, or prohibition of 
imports of animals or poultry to prevent the intr oduction or spread of any disease.  Fish imports 
require a licence from the Ministry of Agriculture, in accordance with the Fish and Fishery Products 
Regulations SRO 170/99.  Temporary bans have been imposed during the review period on imports of 
beef, in response to outbreaks of bovine spongifo rm encephalopathy (BSE), and on imports of all 
meats due to foot and mouth disease;  apart from a continuing ban on imports of beef from the United Kingdom, neither of these restrictions remain in ef fect.  Inspection is carried out on unprocessed meat 
products entering or leaving Grenada. 
110. The chief parliamentary council of CARICOM was,  as of May 2007, considering a model law 
for CARICOM countries on animal disease and importation. 
111. Imports of pesticides require licences from th e Pesticide Control Board under the Pesticides 
Control Act No. 18 of 1973.  The authorities indicate that amendments to this law are under review, to take the form of a new Pesticides and Toxic Chemi cals Act.  In addition to expanding the scope of 
chemicals that are regulated by the law, the new Ac t would make changes to the regulations affecting 
the licensing and classification of pesticides, the in spection of facilities, the penalties for violating 
recommendations on the production, and entry of pesticides. 
112. A draft Food Safety Act is under consideration in the Parliament (mid-2007).  The competent 
authority for this Act is the Ministry of Health. 
113. Grenada is a member of the Codex Alimenta rius Commission and contracting party to the 
International Plant Protection Convention (IPPC), but  is not a member of the World Organization for 
Animal Health (OIE). 
114. Grenada does not maintain inventories of SPS measures in force, nor of products subject to 
SPS measures.  The authorities could not approxima te the number of SPS measures introduced since 
2001.  Trading partners are informed bilaterally  by telephone contact and e-mail, about new or 
modified national SPS regulations that could affect tr ade.  Grenada will typically contact countries in 
the immediate region (e.g., Barbados, Dominica, St . Vincent and the Grenadines, or Trinidad and 
Tobago). Grenada WT/TPR/S/190/GRD 
 Page 27 
 
 
115. Most testing is done internally, not at the bor der.  Hurricane Ivan destroyed the country’s 
laboratories, thus confining them to preliminary wo rk;  any further laboratory work has to be sent to 
other countries.  Grenada lacks the equipment need ed to test meat products to determine hormone 
levels.  The authorities note, however, that if th e Veterinary and Livestock Department becomes 
aware of the use of hormones, it will not issue an import permit. 
116. A draft Biosafety Act on GMOs, developed with assistance from FAO, provides for 
restrictions on the import or export of living modifi ed organisms.  There is not yet a requirement for 
that GMOs to be labelled.  Nevertheless, the aut horities state that information must be submitted to 
the competent authority prior to shipment of the consignment, to facilitate the conduct of a risk 
assessment for the commodity.  If the assessment is  favourable, the Pest Management Unit will issue 
a permit for the commodity. 
117. Grenada has not entered into internatio nal agreements concerning SPS matters. 
(2) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Documentation, export taxes, and restrictions 
118. Exporters are required to register with the In land Revenue Department, Ministry of Finance 
for the purpose of paying taxes.  Three documents ar e required for exportation:  an export declaration 
(shipping bill), an invoice, and a certificate of or igin (for preferential trade).  Consideration is still 
being given to additional procedures or documentation that might be re quired of exporters in order to 
ensure compliance with obligations under the new VAT. 
119. Grenada prohibits exports of prepared opium, Indian hemp; and unfermented cocoa.  Cocoa 
may be exported only with the written approval of the Grenada Cocoa Association, and exports of 
bananas may be exported only by the Grenada Banana  Co-operative Society or persons authorized by 
them under licence.  The Marketing and National Importing Board exports mainly fresh produce and locally manufactured agri-derived products. 
120. Grenada applies no taxes or levies on exports.  Export shipments are examined by Customs at 
random at the port of exit.  The authorities note that export verification is designed to prevent 
smuggling and ensure that the appropriate certificat e accompanies restricted goods or goods subject to 
export-licensing requirements. 
121. Exports of wild birds (HS 0106.99) are prohi bited in accordance with the Birds and other 
Wild Life (Protection) Act, Cap 34 of the Laws of Grenada.  The export of other birds requires a written licence as mandated by Prohibition of Bird Exportation Act No. 9 of 1991.  There is no 
prohibition on the exports of live poultry. 
122. Fish exports are regulated under the Fish  and Fish Product Regulation SRO 170/1999, 
administered by the Fisheries Division of the Minist ry of Agriculture, which has exclusive authority 
to grant licences for fish exports. 
123. The export of a number of products is subject  to licensing requirements.  Exports of gas 
cylinders (HS 7311.00), coral (HS 0508.00), all mi neral products (HS chapter 25), live sheep (HS 
0104.10), and live goats (HS 0104.20) are subject to approval and receipt of an export licence.  Under 
Exportation of Fresh Produce Act No. 28 of 1998, a licence is required for exports of all fresh produce.  The Agricultural Industries Protection Act,  Cap 7 enables the Minister of Agriculture to 
prohibit temporarily the export of plants necess ary for the establishment or extension of any 
agricultural industry in Grenada, or to make export contingent upon the receipt of a licence. WT/TPR/S/190/GRD Trade Policy Review 
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124. Export restrictions may also be applied on items considered to be part of Grenada’s national 
heritage, in accordance with the National Heritage Protection Act, Cap 204.  Restrictions on exports 
of oysters are regulated by the Oyster Fishery Act, Cap 223.  Exports of nutmeg are regulated by the Nutmeg (Regulation on Export) Act, Cap 216.  Expor t licences for nutmeg are valid for one year from 
the time of issuance. 
(ii) Export subsidies, financing, support, and promotion 
125. Grenada has not notified any export subsidies on agricultural products to the WTO 
Committee on Agriculture.  Grenada has notified to the Committee on Subsidies and Countervailing 
Measures (SCM):  Fiscal Incentives Act No. 41 of 1974;  Statutory Rules and Orders No. 37 of 1999;  
and Qualified Enterprises Act No. 18 of 1978, unde r Article 27 of the SCM Agreement as providing 
export subsidies.
38 
126. In a decision taken 27 October 2006, the Committee on Subsidies and Countervailing 
Measures agreed to continue until 31 December 2007 the extension and continuation of the transition 
period, under Article 27.2(b) of the SCM Agreement, for the elimination of export subsidies that take 
the form of full or partial exemptions from import du ties and internal taxes and that were in existence 
under the programme on 1 September 2001.39 
127. Grenada and the other OECS countries, together with eight other WTO Members, made a 
proposal in early 2006 that would extend export subsidies to 2018.40  In the view of these Members, 
export subsidies are necessary because these countries are "particularly vulnerable and unable to fully 
and better integrate into the multilateral tradi ng system and benefit from the positive aspects of 
international liberalization".  In July 2007, the General Council decided to extend the date for the 
dismantlement of export subsidies to end 2015.  Members benefiting from the extension must take, 
from 1 January 2008, the necessary internal steps w ith a view to eliminating export subsidies under 
the programme before the end of the final two-y ear phase-out period.  In addition, from 1 January 
2008 and no later than 31 December 2009, the Me mber must notify each beneficiary under the 
programme indicating that no export subsidies with in the meaning of SCM Article 3.1(a) will be 
granted or maintained beyond the end of calendar year 2015.41 
128. Some benefits under the current incentive sch emes are contingent upon export, e.g. the 15-
year income tax holiday under Fiscal Incentives Act No. 41 of 1974 to enterprises exporting all their 
production. 
129. In 2006, the Government announced an inten tion to complete a National Export Strategy 
(NES) by mid 2006.  In partnership with private sector stakeholders and NGOs, the NES seeks to 
support and promote existing and potential export s ectors through policies relating to the general 
business environment, training, trade liberalization, trade promotion, the reduction of transaction costs 
(including through customs reform), and the instituti onal strengthening of the trade support network.  
                                                      
38 WTO documents G/SCM/N/74/GRD/Suppl.1, 26  March 2002;  G/SCM/N/71/GRD/Suppl.2, 
12 November 2002;  G/SCM/N/95/GRD, G/SCM/N/99/GRD, 2 July 2003;  G/SCM/N/114/GRD, 1 July 2004;  
G/SCM/N/123/GRD, G/SCM/N/ 128/GRD, 8 July 2005;  G/SCM/N/123/GRD/Corr., 
G/SCM/N/128/GRD/Corr.1, SCM/N/128/GRD, 26 July 2005;  G/SCM/N/128/GRD/Corr.1, 26 July 2005;  
G/SCM/N/146/GRD, 10 July 2006. 
39 WTO document G/SCM/71/Adds.1-4, 13 November 2006. 
40 G/SCM/W/535, 12 April 2006.  The other eight Members are:  Barbados, Belize, the Dominican 
Republic, El Salvador;  Fiji, Jamaica, Mauritius, and Papua New Guinea. 
41 The proposal to extend the period is contained in WTO documents G/SCM/W/542, 2 July 2007 and 
G/SCM/W/535, G/SCM/W/542/Suppl.1, 9 July 2007. Grenada WT/TPR/S/190/GRD 
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The strategy will also seek to  create support industries around speci fic clusters of activity, in 
particular tourism.42  Grenada is in the implementation stage of the NES, and is seeking assistance 
from the OAS and other donors. 
130. There is no legislation in Grenada that would allow for the establishment of free zones.  The 
authorities indicate that there had been some discussion of the matter but no firm plans. 
131. Grenada's exporters do not make use of the insurance and export credit guarantee facilities 
provided by the Eastern Caribbean Central Bank (E CCB), covering political and commercial risks.  
Export promotion support from the OECS Export Deve lopment Unit (EDU) is limited to participation 
in trade fairs and trade promotion activities at the request of the Government of Grenada. 
(3) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Legal framework for business and taxation 
132. Foreign or local individuals wishing to est ablish a business in Grenada may do so under 
various options:  sole proprietorships;  partnerships ;  corporations;  joint ventures;  and branches of 
foreign corporations.  Companies are required to re gister with the Register of Companies;  sole 
proprietorships and partnerships that trade under a na me other than that of one of the owners must 
register with the Registrar of the Supreme Court.   There is no requirement for an annual business 
licence.  The International Companies Act Cap 152  allows for the establishment of international 
business corporations.  The main laws on the est ablishment of businesses by non-citizens are the 
Physical Planning and Development Control Act, wh ich deals  with the granting of permission for 
property development, and the Foreign Nationals and Commonwealth Citizens (Employment) Act, 
which provides for the granting of work permits to fo reigners – when there are no nationals available. 
133. Foreign investors are allowed to repatriate 100% of profits.  The corporate tax in Grenada is 
30%.  There is no capital gains tax.  Grenada mainta ins a withholding tax at 15%.  Property tax is 
payable annually on the market value of the land and building;  rates depend on the type of property:  
agricultural property is zero-rated;  residential prope rty is subject to rates of 0.1% on land and 0.15% 
on buildings;  and commercial property to 0. 5% on the land and 0.3% on the building. 
134. Under the 1994 Companies Act, companies may be  incorporated in Gr enada by signing and 
sending articles of incorporation to the Registrar of  Companies.  Foreign companies must appoint a 
solicitor resident in Grenada to handle the formation and registration of a company. 
135. A recent OECD report recommended that:  the process for obtaining licenses and permits to 
start, operate, and expand a business should be st reamlined; an online roadmap of all the steps 
necessary for setting up a business should be provided;  a draft investment code should be prepared 
for submission to Parliament;  and Grenada should "implement the 2006 tax reform with respect to 
incentives with a view to setting up a transparent and predictable system that is WTO compatible".43 
136. Grenada is among the 41 countries and other jurisdic tions that the OECD identified in 2000 as 
tax havens.  Grenada signed a Commitment Letter w ith the OECD on transparency and the exchange 
of information, and was thus removed from the "unc ooperative" list.  In a letter to the OECD dated 
27 February 2002, Grenada committed to transparency measures, and to share information in criminal 
and civil tax matters. 
                                                      
42 Ministry of Finance (2006), p. 8. 
43 OECD (2006). WT/TPR/S/190/GRD Trade Policy Review 
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137. In 2006, the Government indicated its intention to legislate a new investment code by 
September 2006, to enhance transparency and foster investment:  to inter alia , improve and clarify the 
legal system for investment in Grenada; outline inv estor rights and obligations ;  and detail investment 
procedures and the means to access fiscal incentives.44  An IMF staff report also noted that a "new 
Investment Act, complemented by amendments to th e Income Tax Act and the repeal of other related 
legislation, is expected to go to Parliament by mid December 2006, with the aim of strengthening the 
environment for investment".45  Since then, an investment polic y statement has been developed and 
has received Cabinet approval.  This policy statem ent defines forms of investment, entry and exit 
requirements, restrictions and protection issues for investment, as well as other investment issues.  An 
investment act is currently being drafted (mid 2007).  According to the authorities, the Act will 
increase the predictability, stability, an d transparency of the legal regime for investment, promote the 
development of international best practices regarding investment, provide a framework for fiscal incentives, and streamline existing procedures.  The au thorities note that the Act is expected to go to 
Parliament before September 2007. 
(ii) Incentives and assistance 
138. Grenada provides a number of benefits and c oncessions to production activities (Table III.8). 
Table III.8 
Incentives laws in Grenada 
Law Main features 
Fiscal Incentive Act 
of 1974 (Cap 107) Provides fiscal incentives for the establishment of "appr oved enterprises" to manufacture an "approved product."  
Potential entrepreneurs can apply for in centives through the GIDC.  Benefits are in the form of relief from taxes 
on income, plant, machinery, equipment, spare parts, and raw material. 
Qualified Enterprise 
Act of 1978 (Cap 
270)  Provides for tax benefits and exemptions  if the Minister responsible for indu stry considers it to be in the public 
interest.  Under this Act, a "qualif ied enterprise" can import supplies (not  raw materials), and obtain protection 
from new taxes that may be imposed dur ing the concession (duty-free) period. 
Investment Code 
Incentives Act of 
1983  (Cap 155) Gives the Minister of Finance power to  extend or increase concessions or in centives to encourag e investment in 
Grenada.  It allows a 10-year corpor ate tax holiday for hotel investors. 
List of Conditional 
Duty Exemptions 
(SRO 37 of 1999) Provides import duty concessions in areas not covered by the other laws.  Makes provision for goods "when 
imported for the purpose stated", to be ad mitted into the country free of import dut y or at a rate lo wer than that in 
the Schedule of Rates, subject always to the approval of the "competent authority" (Minister of Finance). 
General 
Consumption Tax of 
1995 (GCT) (Act 7/95) Lists items that, in addition to import duty exempti on under SRO 37/99 above, may obtain exemption from the 
general consumption tax at the point of  import.  These items are listed in Schedule 1 of the Act and range from 
live animals to computer equipment.  Normal GCT payments are:  10% on manufactured goods and on all 
overseas telephone calls;  8% on food a nd beverages served in hotels and rest aurants and on hotel rooms;  and 5% 
on all other services. 
 
Source:  Information provided by the authorities. 
139. Grenada has notified the Committee on Subsid ies and Countervailing Measures of three 
incentive schemes:  Fiscal Incentives Ac t No. 41 of 1974;  Qualified Enterprises Act No. 18 of 1998;  
and Statutory Rules and Orders No. 37 of 1999;  two are expected to be repealed during 2007.46 
140. The Fiscal Incentives Act provides relief from import duties, income tax and export profits, 
depending on the group in which the enterprise is cat egorized.  The five groups specified are:  Group I 
Enterprises, in which the local value added is at  least 50% of income from sales of an approved 
product, up to 15 years relief;  Group II Enterprises,  with local value added between 25% and 50%, up 
                                                      
44 Ministry of Finance (2006), p. 7. 
45 IMF Press Release No. 06/256, "Statement by th e IMF Staff Mission to Grenada", 17 November 
2006.  Viewed at:  http://www.imf.org/ external/np/sec/pr/2006/pr06256.htm. 
46 WTO document G/SCM/N/146/GRD, 10 July 2006. Grenada WT/TPR/S/190/GRD 
 Page 31 
 
 
to 12 years;  Group III Enterprises, with local valu e added between 10% and 25%, up to 10 years;  
Enclave Enterprises, in which production is exclusiv ely for export, up to 15 years;  and highly capital-
intensive industries, in which th e capital investment is not less than US$25 million, up to 15 years. 
The waiver from customs duties is for imports of pl ant, equipment, machinery, spare parts, and raw 
materials, for between 10 and 15 years.  The imports  must be for the purpose of:  (a) constructing or 
altering, the approved enterprise;  (b) equipping an enterprise for the purpose of manufacturing and 
approved product.  Comple te or partial exemption from the paymen t of income tax is also provided on 
profits arising from the sale of an approved product for a period not exceeding 10-15 years.  If  export 
profits amount to 10% or more of the entire profits  of the enterprise, from the export of an approved 
product, tax relief is granted on export profit, by way of tax credits.  Incentives under the Act are 
granted to private investors to facilitate the devel opment of industries, in particular manufacturing, 
agri-processing, and agriculture.  The  authorities note that the Fiscal Incentives Act was passed to 
give effect to an agreement on the harmoniza tion of fiscal incentives to industry among CARICOM 
countries.  The Grenada Industrial Development Cor poration (GIDC) is respons ible for administrating 
this incentive programme. 
141. Tax relief on export profits is as follows:  25% on 10% to 20% of export profits expressed as 
a percentage of total profits;  35% on 21% to 40% ;  45% on 41% to 60%;  and 50% on 61% or more.  
The revenue effect of the measure as estimated by Grenada is shown in Table III.9. 
Table III.9 
Revenue forgone due to the Fiscal Incentives Act, 2001-05 
(US$ million) 
 Imports Exports 
2001 46.1 26.0 
2002 41.2 33.4 
2003 10.1 29.3 
2004 9.1 26.4 
2005 31.8 27.2 
 
Source:  Notification by Grenada to the WTO. 
142. Qualified Enterprises Act No. 18 of 1978 provides for tax benefits and exemptions on taxes, 
duties and imposts payable by an approved enterpri se.  A qualified enterprise enjoys the same tax 
benefits and exemptions as under Fiscal incentives Act No. 41, for up to 15 years, at the rate 
subsisting on the date of the Order.  The authoriti es note that the Act was in troduced to ensure that 
where there is a tax increase, industries enjoyi ng concessions under the Fiscal Incentives Act are not 
affected. 
143. The GIDC is also responsible for administer ing this incentive programme, which may apply 
in addition to benefits under any other law.  The ince ntive is available to all enterprises, but is rarely 
used;  in 2006, Grenada's three enclave enterprises (producing solely for export) were the only 
beneficiaries.47  There is no statistical informati on on revenue forgone under this Act. 
144. Statutory Rules and Orders No. 37 of 1999 set out the goods that, when imported, may be 
admitted free of import duty or at a rate lower than  that set out in the Customs Tariff Regulations.  
These are the goods included in Grenada's list of Conditional Duty Exemptions. 
145. The Ministry dealing with trade or with agriculture, depending on the industry applying for 
the benefit, and the Comptroller of Customs are r esponsible for administering the Statutory Rules and 
Orders No. 37.  This exemption from customs duty is applicable only for the product(s) applied for 
                                                      
47 WTO document G/SCM/N/146/GRD, 10 July 2006. WT/TPR/S/190/GRD Trade Policy Review 
Page 32 
 
 
and does not involve any time limits:  it is a one-o ff benefit.  There is no statistical information 
available on revenue forgone. 
146. In November 2006, the IMF noted that the Government of Grenada has "begun to publish 
information on tax concessions in the Official Gazette , an important step in achieving greater 
transparency and accountability."48 
147. The Government announced in the 2006 budget th at effective 1 June 2006 it would not grant 
any new tax holidays or renew existing ones.  Incen tives will instead be provided in the form of tax 
write-offs for investments and, after 1 June 2006 , through accelerated depreciation with loss carry-
forward.  Plans were announced to amend the Inco me Tax Act and repeal th e Investment Incentives 
Act and the Qualified Enterprise Act.  It is anticip ated that this work will be completed by October 
2007.  According to the plan, and in keeping w ith international norms and best practices, the 
Government intends to set out income tax concessions  in the Income Tax Act (ITA) and customs duty 
concessions in the Customs Act.  In this regard bot h the ITA and the Customs Act are to be amended.  
The Government also announced that, in keepi ng with Grenada’s economic reform programme 2006-
2008, and with efforts to achieve transparency and accountability, all incentives granted would be 
published and gazetted. 
148. The Government has employed tax concessions as one means of expanding the Grenada's 
stock of rooms in hotels and a home-stay programme, in order to meet the anticipated demands of the 
Cricket World Cup 2007.  The authorities estimat e that the duty and tax concessions granted for 
building materials, furnishings, and equipment, as well as corporate tax exemptions, amount to over 
EC$15 million. 
149. The Grenada Industrial Development Corporation is in charge of administering the 
programme of incentives in Grenada.  Applications  for incentive benefits ar e submitted to the GIDC, 
which makes recommendations to the Government on th e level and type of con cessions to be granted. 
Among the elements of the Grenada economic reform  programme 2006-08 is a review of the role of 
GIDC, with a view to improving its effectiveness in promoting new investment.  The GIDC should 
become a one-stop shop for investors, and the due  diligence process for new investments will be 
strengthened so as to allow for better a ssessments of the viability of projects.49  A new GIDC Act is 
expected to go to Parliament by October 2007. 
150. The GIDC is receiving technical assistance fro m the EC-funded Business Gateway Project for 
improvement of the business enabling environment, including the cost and efficiency of doing 
business and the legal and regulatory framework.  As part of that project, technical assistance is being 
provided to improve the competitiveness of sm all and medium-sized enterprises, and the 
establishment of a business web portal, a business libr ary, and a trade and investment information 
center.  Training is also being provided in entr epreneurial practices, and a small business training 
facility is being established. 
151. Financial and technical assistance in agriculture , fisheries, tourism, industry, housing, the 
micro sector, and education is provided by the Grenada Development Bank (GDB).  Disbursements 
by the GDB totalled EC$8.8 million in 2006, dist ributed as follows:  tourism (EC$3.2 million), 
industry (EC$2.5 million), education (EC$1.3 million), agriculture (EC$1.1 million), housing 
(EC$0.5 million), and micro sector (EC$0.2 million).  The bank’s lending criteria vary depending on 
the sector;  interest rates range from 5% to 12% per annum. 
                                                      
48 IMF Press Release No. 06/256, 17 November 2006.  Viewed at:  http://www.imf.org/external/np/sec/ 
pr/2006/pr06256.htm. 
49 Ministry of Finance (2006), p. 7. Grenada WT/TPR/S/190/GRD 
 Page 33 
 
 
152. Grenadian enterprises may receive concessionary  credits, funded or guaranteed by the 
Caribbean Development Bank (CDB).  Loans from ordi nary capital resources are at an annual rate of 
6% (public sector) or 8% (private sector), with a repayment period of up to 22 years.  Loans from 
special fund resources are granted to Grenada at an  annual interest rate of  2.5%, with a repayment 
period of 30 years, including a grace period of ten years.50 
(iii) Competition policy and regulatory issues 
(a) Competition policy 
153. Grenada does not have anti-trust or any other kind of competition legislation.  It has signed 
Protocol VIII revising the CARICOM Treaty, which provides for the enactment of harmonized 
competition legislation in CARICOM members.  Howeve r, the Protocol is not yet in place, pending 
ratification by Montserrat and Suriname.  Once the Prot ocol enters into force, it is expected that a 
national competition authority will be created to d eal with domestic competition issues, while the 
CARICOM authority will deal with issues at the CARICOM level. 
(b) Price controls 
154. Price controls are regulated by Supplies C ontrol Regulations No. 14 of 1959, as amended 
(Cap 314).  Section 10 of the regulations set maximum retail and wholesale prices for a number of 
products included in two schedules, with three and f our lists, respectively.  There are about 60 items 
under price control, comprising food products, pharmaceuticals, clothing, stationery, and hardware products.  Prices are in general controlled by setting a fixed mark-up for wholesalers, retailers or both.  
The Ministry of Trade is responsible for enforcing price controls. 
155. The Consumer Affairs Division of the Ministry of Finance, acting through the Marketing and 
National Importing Board (MNIB), sets price contro ls on products for which the MNIB is the sole 
importer, i.e. sugar, rice, and powdered, full-crea m milk in bulk (packages over 10 kg).  Mark-ups are 
calculated on the landed cost plus the MNIB’s commi ssion;  they are set at 10% for sugar, 15% for 
bulk rice, and 5% for milk.  Pricing of these commodities is regulated by the Ministry of Finance (Consumer Affairs Division). 
(c) State-owned enterprises and privatization 
156. Grenada has not notified the WTO of any state trading enterprises.  Public enterprises in 
Grenada are involved in areas such as ports and marketing.
51  The Marketing and National Importing 
Board (MNIB) is the sole allowed importer of rice  in bulk, full cream powdered milk in bags, refined 
and unrefined sugar.  The MNIB has the mandate to market Grenadian produce not already marketed 
under statutory authority, and to import "specified imports" as declared by the Minister of Finance.52  
Under the Marketing Board (Refined Sugar and Full Cream Powdered Milk in bags) Order SRO 
5/1982, refined sugar and full cream powdered milk in bags were classified as “specified imports” (to 
                                                      
50 Caribbean Development Bank online information.   Viewed at:  http ://www.caribank.org/CDB 
WebPages.nsf/Basicinfo/$File/Basicinformation1.pdf?OpenElement. 
51 Public enterprises include th e Agency for Reconstruction and Development;  National Water and 
Sewerage Authority;  Grenada Industrial Development Co rporation;  Gravel, Concrete and Emulsion Production 
Corporation;  Market and National Importing Board;  Gr enada Postal Corporation;  Grenada Craft Center;  and 
Grenada Commercial Fisheries Company. 
52 Marketing and National Importing Board Act No. 40 of 1973, as amended by People’s Law No. 69 
of 1979, Cap 183 of the Laws of Grenada, and Act No. 30 of 1996. WT/TPR/S/190/GRD Trade Policy Review 
Page 34 
 
 
be marketed by the MNIB);  this classification w as given to unrefined sugar, bulk milled and unmilled 
rice, and bulk milk.53 
157. Imports of refined sugar and parboiled rice by the MNIB from non-CARICOM suppliers are 
subject to import duties;  other imports by the MNIB  are duty-free, though the customs service charge 
(5%) is applied to all commodity imports.  Domest ic retail operations and e xports accounted for 46% 
of the MNIB's income in financial year 2006 (October 2005-September 2006).  The proportional 
contribution of imports to total revenue has been declining in recent years due to growth in the 
domestic operations and contrac tion of revenue from imports. 
158. Grenada’s traditional exports (b ananas, cocoa, nutmeg, and minor spices) are marketed by 
commodity boards, including the Grenada Banana Co -operative Society (GBCS);  the Grenada Cocoa 
Association;  and the Grenada Co-operative Nu tmeg Association (GCNA).  The Grenada Minor 
Spices Co-operative Marketing Society Limited has th e exclusive right to export cloves, cinnamon, 
pimento and all other spices except nutmeg and mace.54  The Grenada Cooperative Nutmeg 
Association (GCNA) is the sole authorized exporte r of nutmeg.  The GBCS is the sole authorized 
purchaser of bananas for export to countries outside the Caribbean area;  since 1995, it has sold its 
produce to the Windward Islands Banana De velopment and Exporting Company Limited 
(WIBDECO), which markets it in the United Kingdom. 
159. There has been no privatization in Grenada dur ing the review period.  According to the 
Government, "all significant future divestments of public properties will take place through well advertised international auctions, so as to attract the widest possible range of investors and enhance 
transparency".
55 
(iv) Government procurement 
160. Grenada is not a party to the WTO Plurilateral Agreement on Government Procurement.  As a 
CARICOM Member, Grenada is involved in di scussions on the draft community policy on 
government procurement. Once the policy is finali zed it will provide the framework for government 
procurement within the CARICOM Single Market and Economy. 
161. Preliminary figures for 2006 show that public  sector current expenditure on goods and 
services totalled EC$66.2 million, some 4.7% of GDP.  Capital expenditure totalled 
EC$271.3 million, 19.3% of GDP. 
162. The legislation governing government procurem ent has not been amended since Grenada's 
previous review in 2001.  The Finance and Aud it Act No. 25 of 1998 provides that supplies to the 
Government must in principle be tendered locally  or in the United Kingdom.  Local supplies are 
defined as local produce and manufactures, or importe d articles required in such small quantities or 
uncertain periods as to render it more expedient to  obtain them locally rather than importing them 
directly.  All other supplies required by the public administration must be obtained in principle through Crown Agents, unless they cannot be found in the United Kingdom.  However, there is the 
possibility of tendering elsewhere, when supplies can be found at lower prices.  In practice, ministries 
and departments invite tenders for goods or services.  The various bids are sent to the Public Tenders 
Board for public opening and scrutinization by the Tende rs Board.  The lowest cost supplier is usually 
selected, provided that the goods are of acceptabl e quality.  The authorities note that in some 
departments within the public service, there is the practice of sourcing a supplier and going to the 
                                                     
 
53 Marketing Board (Unrefined Sugar and Bulk (Milled and Unmilled Rice) Order 1994. 
54 Minor Spices Act Cap 195. 
55 Ministry of Finance (2006), p. 7. Grenada WT/TPR/S/190/GRD 
 Page 35 
 
 
procurement officer, responsible for purchasing goods  on behalf of Government, without contacting 
the Public Tenders Board.  These tenders are usually  for small items that are needed speedily.  Local 
supplies are dealt with by a Public Tenders Board cons isting of five officials named by the Minister of 
Finance. 
163. All contracts for the supply of foodstuffs and pe trol must be approved by the Public Tenders 
Board.  This agency also has authority over all contracts for the supply of other articles and public 
works exceeding EC$100,000.  Tende ring is open, and decisions based on the most advantageous 
offer, which is generally the lowest price or best technical offer.  On occasions other factors may be 
considered, such as the bi dder’s ability to deliver the project on time; the ability to mobilize labour 
and resources to carry out the task; the ability to ob tain equipment and the movement of equipment on 
a timely basis; and the reputation of the bidder as regards ability to handle tasks and deliver quality 
work within an acceptable timeframe.  The au thorities state that no preferences are granted to 
domestic or regional suppliers, except when project s are funded by the Caribbean Development Bank 
or by the European Union.  However, the MNIB must apply priority sourcing from other CARICOM 
countries for brown sugar and rice.  Tender notices are published in the Government Gazette . 
164. Requests for purchase of local supplies by Minist ries are to be communicated to the Public 
Tenders Board, if possible three months in adva nce of requirements.  The Public Tenders Board 
advertises the requirements in the Gazette  or in the local press then compiles a summary of 
government contractors, with priced lists of the articles to be supplied, which is published in the 
Gazette .  Heads of departments obtain their supplies directly from these contractors.  Purchases not 
exceeding EC$48 may be made from other suppliers. 
(v) Intellectual property rights 
165. There have been no changes to intellectual prope rty legislation or practice in Grenada since 
its last Review.  A draft intellectual property bill that was under debate in 2004 was not enacted into 
law.56  The authorities note that the bill is being redrafted to ensure that it is TRIPS-compliant.  The 
authorities plan to produce a series of legislative pr oposals covering patents, trade marks, copyrights, 
geographical indications, industrial designs, layout d esigns for integrated circuits, protection of plant 
varieties, undisclosed information, and traditi onal knowledge and folklore.  Grenada is receiving 
assistance from WIPO in this undertaking. Assistan ce may also be received from other international 
organizations and donors.  The authorities indicate that some of the legislation might be enacted by the end of 2007, and the remainder in 2008. 
166. Grenada is a member of the World Intellectual Property Organization (WIPO) and a signatory 
to a number of international agreements on intell ectual property rights (Table III.10);  Grenada has 
not signed any additional treaties on intellectual pr operty since 2001.  Grenada's  national laws on 
intellectual property predate the WTO TRIPS Agreement. 
Table III.10 
Grenada’s membership in inte rnational instruments on inte llectual property rights, 2007  
Convention/Agreement Accession 
Convention Establishing the Worl d Intellectual Property Orga nization (1970) 22 September 1998 
Paris Convention for the Protection of Industrial  Property, Stockholm Text (1967) 22 September 1998 
Berne Convention for the Protection of  Literary and Artistic Works, Paris Text (1971) 22 September 1998 
Patent Cooperation Treaty  (1970) 22 September 1998 
 
Source: World Intellectual Property Orga nization online information.  Vi ewed at:  www.wipo.int/members. 
                                                      
56 WTO document IP/Q/GRD/1, 8 June 2004. WT/TPR/S/190/GRD Trade Policy Review 
Page 36 
 
 
167. Grenada notified the Registrar of the Supreme Court as its contact point under Article 69 of 
the TRIPS Agreement.57  In a 2002 agreement with WIPO, the Ministry of Legal Affairs was 
identified as the focal point for intellectual property. 
168. Grenada has notified its legislation on intellectual property rights to the TRIPS Council.  The 
TRIPS Council last reviewed Grenada’s in tellectual property laws in April, 2001.58  During the review 
a number of questions were raised by Members, on issues including national and MFN treatment in 
the existing legislation, the scope of patent prot ection, the existence of protection for geographical 
indications or undisclosed information, and enfor cement issues.  During that review Grenada noted 
that amendments to the following intellectual prope rty laws were under consideration:  the Patents 
Act (Cap 227);  the Patents Rules;  the Registra tion of United Kingdom Patents Act (Cap 283);  the 
Registration of United Kingdom Pate nts Rules;  the Registration of United Kingdom Trade Marks Act 
(Cap 284);  the Registration of the United Kingdom Trade Marks Rules;  and the Copyright Act.  The aim of these amendments was to ensu re that the laws were WTO-compliant.  To that end, the Ministry 
of Legal Affairs had requested draft model legi slation on the above from WIPO and the OECS 
Secretariat. 
(a) Trade marks 
169. The Registration of United Kingdom Trade Marks Act, Cap 284 allows any registered 
proprietor of a trade mark in the United Kingdom to a pply to have the mark registered in Grenada.  
The application for registration must be accompanied by a certificate of the Registrar of Trade Marks in the United Kingdom giving full particulars.  Th e Registrar of the Supreme Court then issues a 
certificate of registration to the applicant, who b ecomes the registered proprietor in Grenada of the 
trade mark in respect of the goods entered in the Re gistry, and is granted all the privileges and rights 
in the use of the trade mark conferred on him in the United Kingdom.  The exclusive right to a trade mark is acquired through registration;  marks are protected only if registered in the Registry of Trade Marks of the Supreme Court of Grenada. 
170. A total of 930 trade marks were registered dur ing the six years from 2001 to 2006, ten fewer 
than during the five-year period 1996-2000. 
(b) Patents and industrial designs 
171. A proposed Industrial Property Bill 2002 was put  forward, but was never enacted.  It was 
intended to repeal the Patents Act (Cap 227);  the Patents Rules;  the Registration of United Kingdom 
Patents Act (Cap 283);  the Registration of Unite d Kingdom Patents Rules;  the Registration of 
United Kingdom Trade Marks Act (Cap 284);  and the Registration of United Kingdom Trade Marks 
Rules. 
172. Although Grenada has acceded to the Patent Cooperation Treaty, it has not put in place 
national legislation to enact the Treaty.  Patent legislation in Grenada does not reflect the internationally accepted criteria for grant of novelty, inventive step, and industrial applicability, and to 
establish a full search and examination procedure.  There is no provision for patent product protection 
for pharmaceutical and agricultural chemical products. 
173. The United Kingdom Designs Protection Act, Cap 331 provides for the protection of 
industrial designs in Grenada.  In  accordance with the Act, the regi stered proprietor of any design 
                                                     
 
57 WTO document IP/N/3/Rev.9, 8 November 2005. 
58 WTO document IP/Q/GRD/1, 8 June 2004. Grenada WT/TPR/S/190/GRD 
 Page 37 
 
 
registered in the United Kingdom enjoys the same pr ivileges and rights as if it had been issued with 
an extension to Grenada.  Protection is for the same period as in the United Kingdom. 
(c) Copyright and related rights 
174. The Copyright Act Cap 67 provides the basis for copyright protection in Grenada.  Protection 
that is granted in the United Kingdom is also exte nded in Grenada to literary, dramatic, musical, and 
artistic works;  sound recordi ngs, films, broadcasts or cable programmes;  and typographical 
arrangements of published editions.  The law does not  apply to computer programs, and there is no 
protection for producers of phonograms.  There is  no registration requirement for copyright and 
related rights. 
(d) Other intellectual property rights 
175. Grenada does not have legislation on geographical  indications, layout designs of integrated 
circuits, the protection of plant varieties, or undisclosed information. 
(e) Enforcement of intellectual property rights 
176. According to the authorities there are plans to establish an Intellectual Property Office in the 
Ministry of Legal Affairs.  This office would act as a registrar of companies and their intellectual 
property.  This will require approval of new legisl ation by Parliament; Cabinet has already given its 
policy direction on this matter. 
177. The authorities have stated that because intell ectual property right are private rights, "the 
burden is on the right holder to enforce such rights".59  Under the law, complainants must prove to the 
satisfaction of the Court that their interests have been prejudicially affected by the registration of 
patents, trade marks or designs or that their right s have been infringed, for penalties to be imposed. 
178. The Ministry of Legal Affairs has lead authority for the administration of intellectual property 
laws in Grenada.  The Registrar of the Supreme Court is responsible  for the registration of patents, 
trade marks and copyright.  Customs has access to this public Registrar,  and can use information in it 
to seize goods that infringe rights at the border.  Ex  parte search and seizure orders are available;  
Customs has this power ex officio. 
179. Infringement of intellectual property rights can result in fines, imprisonment or seizure of 
imports;  penalties vary according to the type of  infringement.  In accordance with the Copyright Act, 
Cap 67, offences in respect of dealings that infringe protected work carry, on first conviction, a fine of 
EC$2,000 for each article to which the offence rela tes, and six-months' imprisonment.  For a second 
or subsequent conviction the penalties are a fine  of EC$10,000 for each article (to a maximum of 
EC$50,000 per transaction) and two-years' impr isonment.  Offences of unauthorized public 
performance are subject to a fine of EC$50,000 and imprisonment for two years.  Judges do not have 
authority to order infringed goods to be removed from channels of commerce or destroyed.  There are 
no penalty provisions in the ot her intellectual property laws. 
180. A decision on infringement of intellectual property rights may be appealed, in accordance 
with section 57 of the Copyright Act, only in cases of fraud, of other specific illegality or when the 
High Court had no jurisdiction to adjudicate the matter or exceeded its jurisdiction. 
                                                      
59 WTO document IP/Q/GRD/1, 8 June 2004, p. 1. WT/TPR/S/190/GRD Trade Policy Review 
Page 38 
 
 
IV. TRADE POLICIES BY SECTOR 
(1) AGRICULTURE  
181. In 2006, the agricultural sector contributed approximately 5.9% of Grenada's GDP.  
Agriculture is Grenada's third largest employer, w ith the majority of farming taking place in rural 
communities.  The authorities cons ider agriculture to be one of Grenada's most important economic 
activities, particularly for stimulating economic grow th, revitalizing the rural sector, reducing poverty, 
and improving food security.  Following the severe de vastation of the sector by Hurricanes Ivan and 
Emily, in 2004 and 2005 respectively, the Government  of Grenada agreed on an agricultural sector 
strategy and policy document titled "Modernizing Ag riculture in Grenada:  A National Policy and 
Strategy".  The policy document highlights the n eed to provide an enab ling environment that 
enhances commercial viability, facilitate private sector investment, and enhance the commercial 
perspective throughout the sector.  Given the ma jor focus of rehabilitating agriculture, the 
Government in its 2007 Budget a llocated 14.3% of the capital investment portfolio to the sector. 
182. The agriculture sector in Grenada is slightly mo re diversified than in other OECS Members.  
In addition to bananas, Grenada produces nutmeg and cocoa.  Until severe hurricanes nearly wiped 
out crops in 2004 and 2005, Grenada was one of the world's largest producers of nutmeg.  The crop 
has traditionally held a significant share of exports, and accounted for 40% of total exports in 2005.  Grenada's agriculture is extremely vulnerable to  natural disasters, and hurricanes in 2004 and 2005 
had a severe impact on overall output.
60  However, the sector remains important to Grenada for 
foreign exchange earnings, generating employment, and contributing to food security.  Agriculture 
continued to be a major contributor to GDP even during the low output years of 2004 and 2005, 
despite the 90% drop in nutmeg production during that period.61  Grenada also grows fruits, in 
particular citrus, vegetables, r oots, and tubers (Table IV.1). 
183. The performance of the sector, and particularly traditional crops of nutmeg, cocoa, and 
banana, has been poor during the period under review, primarily due to external shocks.  In 2001, the 
sector contracted by 3.3% due to drought62, followed by expansion of 19% in 2002, and contraction of 
2.4% in 2003;  overall contribution to GDP fell to 9.1% in 2003 from 9.8% the previous year.63  Value 
added in the sector contracted by a further 7.3%  in 2004, with decreases in livestock production, 
forestry, fishing, and crop production.64  Prior to the hurricane in the last quarter of 2004, Grenada 
was on track for expansion in output of both nutmeg a nd cocoa.  Agriculture contracted by 38.1% in 
2005, following two hurricanes in ten months.65  Decreases were recorded for all major crops and 
other subsectors.  At the time of Hurricane Ivan in 2004, 12,000 acres of land were dedicated to 
nutmeg production, 8,000 acres to cocoa production, and 350 acres to banana production.  As a result 
of the first hurricane, 70% of the nutmeg acreage was destroyed, as well as 69% of cocoa acreage;  
100% of banana farms were damaged and 91% of all forestry was destroyed.66  In 2006, agricultural 
output was estimated to have increased to 72.5% of its pre-hurricane level, with a slightly increased 
contribution to GDP of 8.3%.67  However, output of traditional crops  were estimated to be 30% lower 
than pre-2000 levels. 
                                                      
60 OECS Secretariat (2005). 
61 OECS Secretariat (2004). 
62 Caribbean Development Bank (2003). 
63 ECCB (2004). 
64 ECCB (2005). 
65 ECCB (2006a). 
66 OECS Secretariat (2005). 
67 ECCB (2007). Grenada WT/TPR/S/190/GRD 
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Table IV.1 
Major agricultural crops, 2000-06 
('000 lb and EC$'000) 
Crops 2000 2001 2002 2003 2004 2005 2006a 
  Quantity in '000 lb  
Banana 1,758.1 2,165.3 2,238.2 1,751.6 1,445.7 421.2 1,480.0 
Cocoa 2,637.7 1,516.3 1,927.9 1,360.3 1,678.4 91.9 210.0 
Nutmeg 5,745.6 4,802.6 6,766.1 5,361.2 6,023.6 312.1 425.0 
Mace 393.2 378.6 418.6 368.4 274.9 15.9 10.0 
Total 10,534.6 8,862.8 11,350.8 8,841.5 9,422.6 841.1 2,125.0 
  Value (EC$'000) 
Banana 491.0 701.1 783.4 654.2 580.6 343.3 1,036.0 
Cocoa 3,406.1 2,315.5 3,511.1 2,476.8 3,562.3 185.8 426.3 
Nutmeg 17,178.0 14,347.4 25,941.4 16,520.6 12,029.3 1,033.8 1,294.1 
Mace 1,558.9 1,368. 9 1,295.4 1,191.9 1,065.8 70.2 43.2 
Total 22,634.0 18,732.9 31,531.3 20,843.5 17,238.0 1,633.1 2,799.6 
 
a Preliminary data. 
 
Source : Information provided by the authorities. 
184. The performance of Grenada's agricultural subsector s has been similarly weak.  Output in the 
production of forestry, fishing, non-traditional export crops (vegetables, tubers, plantains and fruits), 
and livestock have generally declined since 2001, although these sectors rebounded somewhat in 
2006.  The exception was the fishing su bsector which fell by 2% in 2006.68 
185. Grenada's average tariff on agricultural products (WTO definition) is 18. 2%;  the final bound 
average tariff is 100.3%.  The highest tariff rate  on agricultural products is 40%.  Grenada bound all 
its tariff lines during the Uruguay Round:  with so me exceptions, agricultural products were bound at 
100%;  some fruits and spices were bound at 200%.  Agricultural products accounted for 54.3% of 
Grenada's total exports between 2000 and 2004. Its largest market is the EC, which received an 
average of 35.4% of exports during the same period. 
186. Production challenges include under-employment of available technologies, the small scale of 
farms and limited investment from the private s ector.  In addition, low value-added products 
constitute the majority of exports.  The Grenadia n authorities are trying to encourage growth by 
promoting investment.  A number of incentives are available for investment in the sector, including accelerated depreciation of 50% on plant and machin ery;  carry-forward of losses for a period of 
ten years;  100% relief from import taxes and dutie s;  and deductible expenditures for marketing or 
research and development.  Grenada has no restrictio ns on foreign ownership in the agriculture sector.  
Several institutions have also been established to support agriculture a nd develop a more export-
oriented industry, they include:  the Marketing and National Importing Board (MNIB);  the Grenada Cooperative Nutmeg Association;  the Grenada co coa and banana associations;  and a fisherman's 
association.  The MNIB is a statutory body ope rating under the auspices of the Ministry of 
Agriculture, while the various product associations are private organizations.  As part of efforts to 
promote diversification, the Grenadian authorities ha ve identified fresh fruits and vegetables, fish, and 
spices as the primary products of focus, in additio n to the traditional export crops of nutmeg, cocoa 
and bananas.
69 
                                                      
68 ECCB (2007). 
69 Government of Grenada (2006). WT/TPR/S/190/GRD Trade Policy Review 
Page 40 
 
 
187. Grenada import licensing regime has been notifie d to the WTO.  The majority of products are 
subject to automatic licensing.  Among agricultura l products, non-automatic licences are required for 
whole chicken (HS 0207.12) and eggs  (HS 0407.003) (Chapter III(1)((vi)). 
(2) MANUFACTURING  
188. Grenada's manufacturing sector is small, and concentrated around the production of generally 
light manufactures.  These include beverages, paints and varnishes, garments, pasta, tobacco, animal 
feed, and toilet paper.  The sector accounte d for an estimated 6% of GDP in 2005. 
189. Manufacturing in Grenada has been on the d ecline since 2001.  The authorities estimate 
average contraction of 4.5% between 2001 and 200470:  the sector declined by 3.8% in 2002 and by 
2.8% in 200371, when output in animal feed, rum, electronics components and grain and bakery 
products declined.  Value added fell by 14.6% in 2004, the fourth consecutive year of decline.72  The 
sector rebounded somewhat in 2005 by 18.8%, chiefly driven by increases in demand for beverages73, 
but recovery was short lived, as output declined ar ound 1% in 2006, due to the cessation of tobacco 
production and increased competition fr om regional products.  Despite th e overall decline, beverages' 
output continued to increase in 2006.74 
190. Grenada's average tariff on manufactured goods (ISIC classification) is 10.5% with a final 
bound average of 55.8%.  Tariff rates range between 0 and 40%, with the highest tariffs reserved for 
textiles and clothing, and leather and footwear (Chapter III(iv)).  Although the manufacturing sector 
caters largely for the domestic market, some pr oducts are exported (Table  IV.2).  Manufactures 
accounted for around 47.6% of total exports between 2000 and 2004. 
Table IV.2 
Manufacturing exports, 2001-06 
(EC$’000) 
Product 2001 2002 2003 2004 2005 2006 
Flour 12,922.0 10,953.5 8,836.2 7,399.5 10,140.4 10,949.7 
Wheat bran 182.5 231.7 135.3 87.3 198.8 107.5 
Clothing 1,441.1 1,946.2 1,397.4 1,226.0 1,762.9 1,965.7 
Paints and varnishes 974.9 970.7 1,693.2 1,404.0 1,524.5 2,004.1 
Paper products 4,725.3 5,258.3 6,158.2 5,694.4 6,864.0 5,667.7 
Animal feed 2,572.4 3,153.9 3,662.6 1,906.7 3,387.0 4,405.5 
Roofing sheets  1,347.5 1,113.7 1,818.1 1,480.9 510.2 2,726.7 
Nutmeg products 2,116.8 7,063.8 6,701.3 2,008.7 565.4 117.0 
Electronic components 63,025.1 5,053.4 406.5 151.9 60.0 0.0 
Other 4,486.7 3,488.3 3,114.4 1,048.4 1,260.3 1,118.7 
Total  93,794.3 39,233.5 33,923.2 22,501.6 26,273.5 29,062.6 
 
Source : Central Statistical Office. 
191. Over 2001-06 there was a modest increase in pr ivate sector investment in manufacturing, 
much of this was small-scale investment targeting the domestic market;  this investment includes light 
manufacturing and agri-processing projects.  The authorities note that, since 2004, there has been a 
slight increase in the number of foreign manufactur ing companies interested in investing in the 
manufacturing sector;  some of these companies ha ve already begun operations in Grenada, while 
                                                      
70 OECS Secretariat (2004). 
71 ECCB (2004). 
72 ECCB (2005). 
73 ECCB (2006a). 
74 ECCB (2007). Grenada WT/TPR/S/190/GRD 
 Page 41 
 
 
other projects are pending.  Production is geared to wards the domestic, regi onal, and international 
markets (Table IV.3). 
Table IV.3 
Major manufacturing projects, 2004-07 
Company Description of activities Market Status 
Secure Roofing Systems Roof manufacturing Local Operating 
Shelter Solutions Limited Roof manufacturing Local Operating 
RAW Enterprise Roof manufacturing Local Operating 
Techtrade Incorporated Manufact uring of concrete decorative paving tiles Foreign Operating 
Lin Jun Ltd. Manufacture of pasta products Foreign Operating 
H. I. (Herrera Interiors) Ltd. Manufacturer of Interior Furnishings Foreign Operating 
Kool Temp (G'da) Ltd. Manufacturer (assembling) of refrigerators Foreign Operating 
Marine Management Inc. Boat Manufacturing Company Foreign In 
implementation 
Cato Industries Manufacture of "shuv-it paddl es" similar to an oar Foreign Pending 
implementation 
New York's Finest Bagels Inc.  Bagel manufacture Foreign Pending 
implementation 
Loong Yun Manufacturing &  Services Co. Ltd. Manufacture of rolling gates, hurricane shutters, and 
furniture Foreign Pending 
implementation 
Grenada Chemical Company Ltd. Manufacture of cleaning agents Foreign Pending 
implementation 
Best Building Manufacturer &  Trading Co. Ltd. Manufacture of windows, doors,  and gates Foreign Pending 
implementation 
 
Source : The Grenada Industrial Development Corporation. 
(3) SERVICES  
(i) Main features 
192. Grenada made sector-specific commitments in th e General Agreement on Trade in Services in 
4 of the 12 sectors:  financial services (insurance and insurance-related services), tourism and travel-
related services (hotels and restaurants);  recrea tional, cultural and sporting services (entertainment 
services; and sporting and other recreational services);  and communications services (courier services and telecommunication services).  Except for telecommunications services, no market access or national treatment limitations have  been scheduled on cross-border supply and consumption abroad.  
Sector-specific market-access limitations on commerc ial presence have been scheduled across all 
sectors. 
193. The horizontal section of Grenada's commitments  contains limitations regarding commercial 
presence and the movement of natural persons.  As regards the former, Grenada's horizontal 
commitments stipulate that foreign investors have to comply with numerous Acts in order to establish 
business locally, such as withholding tax provi sions and property ow nership regulations. 
194. With respect to the movement of natural pers ons, employment of foreign natural persons is 
normally limited to people with managerial and te chnical skills that are in short supply or not 
available in Grenada.  Grenada has not  listed any Article II (MFN) exemptions. WT/TPR/S/190/GRD Trade Policy Review 
Page 42 
 
 
(ii) Telecommunications 
195. Grenada made commitments during the extende d negotiations on basic telecommunications 
services.75  Cross-border supply and commercial presen ce in voice telephone, packet-switched data 
transmission, circuit-switched data transmission, tele x, telegraph, private-leased circuit, and facsimile 
services, as well as the provision of terrestrial-based mobile services, including cellular/mobile 
telephone, paging and others, are reserved for the exclusive operator until 2006, the bypass of its 
network is forbidden.  Grenad a bound cross-border supply and commercial presence of these basic 
telecommunications services with no restrictions as of 2006.  These limitations apply to both fixed 
and mobile telephone and data services.  Identical  limitations and phase-in periods exist for basic 
telecom services for non-public use, as well as fo r value-added services for non-public use, which 
include electronic mail, voice mail, on-line inform ation and database retrieval, electronic data 
interchange, enhanced/value-added facsimile services including store and forward and store and 
retrieve, code and protocol conve rsion, and on-line information a nd/or data processing (including 
transaction processing).  The commitments also incl ude a limit on foreign ownership for trunked radio 
system services for non-public use, and provide fo r the provision of telecommunications equipment 
sales, rental, maintenance, connection, repair, and consulting services through commercial presence of 
foreign suppliers only through a joint venture with Grenadian nationals. 
196. Grenada allows full foreign participation in telecommunications companies.  A 10% 
government tax is applied to international telephone calls, and a 5% tax is charged on 
telecommunications services.76  There are no sector-specific fiscal  incentives.  The Government of 
Grenada has a 30% stake in the incumbent pr ovider, Cable and Wireless (Grenada) Ltd. 
197. Telecommunications in Grenada are under the r esponsibility of the Minister for Agriculture 
and Utilities.  The National Telecommunications Re gulatory Commission of Grenada is responsible 
for regulation of the sector.77  At the regional level the Eastern Caribbean Telecommunications 
Authority (ECTEL) plays an important advisory a nd policy-coordinating role (see Overview Report). 
The main legislation governing the sector  is Telecommunications Act No. 31 of 2000.78  This is 
substantially the same as the respective telecomm unications laws of the other OECS ECTEL member 
states.  It, inter alia , specifies criteria for the granting of a licence;  universal service conditions that 
may be applied;  and procedures for concluding interconnection agreements (See Overview Report).  
The Telecommunications (Tariff) Regulations SRO 34 of  2003, stipulate that where there is effective 
competition in the telecommunications market, lic ensees may set tariffs.  If there is insufficient 
competition in a particular service, the NTRC may designate it as a regulated service;  within 30 days 
the telecommunications provider must file an app licable tariff with The Commission for approval.  
The tariffs for regulated services in Grenada are determined in accordance with a Price Cap Plan 
agreed between Cable and Wireless and the ECTEL Member States.79 
198. Key changes since 2001 have been a major incr ease in mobile penetration (from 7% in 2002 
to 67% in 2006), as well as a corresponding increase in  local traffic originating from mobile phones.  
                                                      
75 WTO document GATS/SC/96/Suppl.1, 11 April 1997. 
76 The legislative basis for the 5% tax on telecommunications services is Consumption Tax Act No. 7 
of 1995.  The authorities indicate that the tax is levied on all telecom services except where there are exemptions 
provided for under the Act. 
77 National Telecommunications Regulatory Commission of Grenada online information.  Viewed at:  
http://www.ectel.int/grd. 
78 Telecommunications Act No. 31 of 2000.  Viewed  at:  http://www.ectel.int/grd/Telecommunications 
%20Act%2031%20of%202000.doc. 
79 ECTEL online information.  Viewed at:  http ://www.ectel.int/grd/Telelco mmunications%20(Tariff) 
%20Regulation.%202003%20NEW-.doc. Grenada WT/TPR/S/190/GRD 
 Page 43 
 
 
Telecommunications revenues have increased stead ily.  Other telecom indicators have either 
fluctuated since 2002, showing no clear trends, or have remained stable (Table IV.4). 
Table IV.4 
Telecommunications statistics, 2002-06 (March) 
 2002 2003 2004 2005 2006 
Telecommunications revenues (EC$ million) 128 114 114 142 157 
Fixed-line penetration (%) 29 29 26 21 28 
Mobile penetration (%) 7 21 67 74 67 
Internet penetration (%) 4 4 5 5 6 
Investment (EC$ million) 6 13 51 26 30 
Employment 219 172 190 183 207 
Local traffic from a fixed lin e (million minutes) n.a. 330 461 248 271 
Local traffic from a mobile phone  (million minutes) n.a. 6 18 42 74 
International outgoing traffic (fixed and mobile) (million minutes) 14 14 14 19 34 
 
n.a. Not applicable.  
Source:  Information provided by the aut horities and ECTEL, ht tp://www.ectel.int. 
199. In early 2007, 17 "individual" licences had been issued in Grenada:  five for fixed public 
telecommunications;  five for public mobile tele communications;  six for Internet networks and 
services;  and one submarine cable.  In addition a number of "class" licences have been granted for 
essentially value-added telecommunications services. 
200. With respect to the fixed line market, although five licences have been granted, the incumbent 
Cable and Wireless is the only provider of fixed lin e services.  Tariffs for local fixed-line-to-fixed-line 
calls and local fixed-line-to-mobile calls are regulat ed by a Price Cap Plan introduced in December 
2004;  tariffs for these calls have fallen under the Plan (Table IV.5). 
Table IV.5 
Telecommunications tariffs, 2003-06 (March) 
(EC$ per minute) 
 2003 2004 2005 2006 
Local fixed-to-fixed calling rate     
Day 0.09 0.09 0.07 0.07 
Evening 0.08 0.08 0.05 0.04 
Weekend 0.06 0.06 0.05 0.04 
Local fixed-to-mobile calling rate     
Day 0.81 0.81 0.76 0.71 
Evening 0.80 0.80 0.75 0.69 
Weekend 0.78 0.78 0.75 0.69 
 
Source:  Information provided by NTRC, Grenada. 
201. International fixed-line calls are not covered by  the Price Cap Plan.  The price of regional 
calls has remained the same sinc e liberalization:  the call tariff to other ECTEL member states was 
EC$0.50 per minute in March 2006;  to Cable and Wi reless lines in the Caribbean it was EC$0.66 per 
minute;  to non-Cable and Wireless lines in the Ca ribbean it was EC$0.99.  Tariffs for international 
calls outside of the region were reduced in 2005.  Between 2005 and 2006, peak time tariffs to the 
United States fell from EC$1.65 to EC$0.90 and to the rest of the world from EC$2.20 to EC$1.65.  The authorities confirmed that bypass is prohibited.  According to the authorities, fixed-line to mobile 
calls are billed on a per minute basis, while all other fixed-line calls are billed on a per second basis.  
There are two options for line rental:  a rate of EC$54 per month for line rental and unlimited fixed-
line-to-fixed-line calls; or EC$26.40 for line rental only. WT/TPR/S/190/GRD Trade Policy Review 
Page 44 
 
 
202. Competition in the mobile telecommunications  market began in 2003, when two new 
providers, Digicel and Cingular Wireless, commenced  operations in addition to the incumbent, Cable 
and Wireless.  There was some consolidation in the market in 2005, with the acquisition by Digicel of 
Cingular Wireless80;  hence, there are currently two mobile  providers in operation.  Two additional 
companies have been licensed to provide public mobile services, but have not started operations 
(May 2007). 
203. Cable and Wireless' mobile-to-mobile call ta riff was reduced to EC$0.79 per minute in 
March 2006 from EC$0.99 per minute the previous year.  Digicel's rate has remained unchanged since 
it started operations: at EC$0.85 per minute.  On -network calls are cheaper for both providers 
(EC$0.38 per minute for Digicel and EC$0.70 per minute for Cable and Wireless).  In 2006, Cable 
and Wireless reduced its mobile-to-fixed-line tari ff from EC$0.89 to EC$0.70 per minute, and Digicel 
raised its tariff from EC$0.80 to EC$0.85.  For mobile-to-fixed-line intern ational calls, Cable and 
Wireless reduced the tariff for calls to the United States, between 2005 and 20 06, but all other rates 
have remained unchanged.81 
204. According to ECTEL, 88% of mobile subscriber s have pre-paid mobile phones.  As with 
other OECS countries, the introduction of pre-paid phones appears to be one of the main reasons for 
the rapid rise in mobile penetration rates in the ab sence of significant price changes in tariffs.  Other 
reasons include:  low prices for handsets, per second billing;  and an increasing trend for individuals 
to hold more than one mobile phone to take advantag e of the lower cost of calls on the same network. 
205. While six individual licences have been granted for internet networks and services, Cable and 
Wireless was the only provider of Internet services in Grenada in mid 2006.  There has been a marked 
shift from dial-up to high-speed Internet access:  62% of internet subscribers had broadband access in 
2006, up from 4% in 2002.  This refl ects the greater affordability of high-speed access, as rates have 
declined by up to 50%.82 
206. A licence has been granted for the landing of a submarine cable, but this is not yet in 
operation. 
(iii) Financial services 
207. The Grenada Authority for the Regulation of  Financial Institutions (GARFIN) became 
operational on 1 February 2007, replacing the Gren ada International Financial Services Authority.83  
GARFIN is responsible for the regulation of all fina ncial institutions in Grenada, with the exception 
of domestic banks.84 
208. In its GATS schedule, Grenada bound unrestricted  market access and national treatment for 
reinsurance for cross-border supply and cons umption abroad.  Commercial presence was bound 
                                                      
80 ECTEL (2006). 
81 The tariffs applicable as at May 2007 were:  Cable and Wireless's mobile to international fixed-line:  
EC$1.00 for calls to ECTEL Member States, and EC$0 .90 for calls to the United States (reduced from 
EC$1.65);  Digicel's mobile to inte rnational fixed line:  EC$0.85 for ca lls to other ECTEL Member States and 
EC$1.30 for calls to the United States. 
82 ECTEL (2006). 
83 Grenada Authority for the Regulation of Financial Institutions (GARFIN) Act No.5 of 2006.  This 
Act was proclaimed effective on 1 February 2007 by way of SRO No. 2 of 2007. 
84 GARFIN has responsibility for the institutions under:  Building Societies Act, Cap 38;  Company 
Management Act, 1996;  Co-operative Societies Act, 1996;   Friendly Societies Act, Cap 108;  Insurance Act, 
2002;  International Betting Act, 1998;  International Companies Act;  International Insurance Act, 1996;  International Trusts Act, 1996;  and Offshore Banking Act, 2003. Grenada WT/TPR/S/190/GRD 
 Page 45 
 
 
subject to the provisions of the exchange cont rol regulations and alie n landholding regulations 
(market access) and a withholding tax (national tr eatment).  Under its horizontal GATS commitments, 
Grenada specified that in accordan ce with the Insurance Act, only corporate entities would be allowed 
to conduct insurance business in Grenada, upon regi stration with the Supervisor of Insurance.85  
Grenada did not participate in the extended negotiations on financial services. 
(a) Onshore financial services 
Banking 
209. Domestic Banks in Grenada are regulated by  the ECCB.  ECCB member countries have 
harmonized in substance their national banking legislation, based upon a Uniform Banking Act 
template (see Overview Report).  The main legisl ation governing the banking industry in Grenada is 
Banking Act No. 19 of 2005, which repeals Ba nking Act No. 40 of 1993 and incorporates 
amendments to the Uniform Banking Act, which upgr ade legislation in relation to the Basle core 
principles.  These changes include strengthened oversight of financ ial institutions by the ECCB, and 
more stringent and systematic reporti ng requirements by such institutions. 
210. In order to carry out banking business in Grenada, banks must be licensed by the Minister 
responsible for finance, and fulfil the licensing cond itions (see Overview Report), which include that 
banks (both local and foreign financ ial institutions) must have a place of business there.  Citizens and 
companies of Grenada are not restricted from bo rrowing or placing deposits with banks located 
abroad, and Grenada no longer maintains exch ange controls on capital and non-trade current 
transactions (see Chapter I).  There are no limita tions on foreign investment in onshore banks in 
Grenada.  Foreign-owned banks licensed and inco rporated in Grenada are subject to the same 
requirements as locally owned and locally incorpor ated banks and may provide the same services.  
Branches of foreign banks must submit additional information when applying  for a licence to show 
that they are subject to effective supervision at home and confirm that the regulatory body in their 
home jurisdiction does not object to the applica tion.  There are no residency or citizenship 
requirements applied to bank managers or directors. 
211. There are five commercial banks operating in Gr enada:  two are branches of foreign banks 
(Bank of Nova Scotia and First Caribbean Inte rnational Bank (Barbados) Ltd); two are foreign 
subsidiaries that have been locally incorporat ed (RBTT Bank Grenada Ltd and Republic Bank of 
Grenada) and one is a locally incorporated, lo cally owned bank (Grenada Co-operative Bank).86  
There is also one development bank, the Grenad a Development Bank (see Chapter III), which mainly 
channels funds from the Caribbean Development Bank. 
212. Lending and deposit rates are similar to in othe r OECS countries (see Chapter I).  In 2006, the 
weighted average spread between deposit and lendin g interest rates was 7.1 percentage points (2.8% 
deposit, 9.9% lending).87 
Insurance 
213. There are 25 insurance companies registered in Grenada, of which 17 are involved in general 
insurance and 8 in long-term insurance.  Most in surance companies are branches or subsidiaries of 
regional companies.  In general, long-term insu rance companies provide ordinary life insurance 
                                                      
85 WTO document GATS/SC/96, 15 April 1994. 
86 ECCB online information.  Viewed  at:  http://www.eccb-centralba nk.org/Financia l/fin_banks.asp. 
87 ECCB (2007). WT/TPR/S/190/GRD Trade Policy Review 
Page 46 
 
 
services, while general insurance companies provide mostly property and motor vehicle insurance.  
Lloyds of London is the only reinsurance company registered in Grenada. 
214. Supervision of the onshore insurance sector, in cluding reinsurance, rests with GARFIN.  All 
domestic insurance companies are presently gove rned by the Insurance Act of 1973, Cap 150. 
215. Insurance companies must be registered by th e Supervisor of Insurance within GARFIN.  
Foreign insurance companies may establish subsidia ries and branches in Grenada.  Minimum paid-up 
share capital is set at EC$2 million for local companies and EC$5 million for foreign companies;  the EC$5 million must be fully paid up in cash.
88  Mutual companies must have uncommitted reserves of 
at least EC$5 million:  this is the case for long- term and other classes of insurance business.  A 
foreign company must have been lawfully constitute d in the country in which it was incorporated, and 
have undertaken insurance business in that country fo r at least three years.  In addition, it must 
appoint a resident person in Grenada to be its pr incipal representative in Grenada, who must have 
power of attorney, and must have a principal office in the country. 
216. Under the Insurance Act (1973), a person wishing to  enter into an insurance contract (except 
reinsurance) with an insurer not registered under the Act, may apply to the Supervisor of Insurance for 
permission to do so.  This may be granted if the Supe rvisor is satisfied that it is not possible to obtain 
similar insurance protection at a comparable cost from an insu rer registered under the Act. 
217. Insurance companies (not including reinsuran ce companies), must deposit a certain amount 
with the Supervisor of Insurance; higher amounts ar e required from foreign-incorporated companies.  
For example, foreign companies providing long-t erm and motor vehicle insurance must deposit 
EC$100,000, whereas there are no such requirements for local companies;  for general insurance 
(excluding motor vehicle insurance) foreign companies must deposit EC$50,000, while local 
companies must deposit EC$25,000.  Under previous legislation, foreign companies were subject to 
less stringent requirements than domestic companies with respect to the lending of their own funds.  Under the 2002 Insurance Act, the same requireme nts apply to both foreign and local companies. 
218. New insurance legislation, which would be ha rmonized among all OECS countries, is at an 
advanced stage of drafting (see Overview Report). 
(b) Offshore financial services 
219. Offshore banking in Grenada is regulated by GARFIN, with supervision from the ECCB.  
The main legislation governing the offshore ba nking sector and banks providing trust services in 
Grenada is Offshore Banking Act No. 13 of 2003;  Gr enada International Financial Services Authority 
Act No. 26 of 1999;  and the International Comp anies Act (as amended in 2002).  Offshore trust 
companies are governed by International Trusts Act No. 40 of 1996. 
220. In mid 2000 there were 23 offshore banks operating in Grenada
89;  by end 2006, there were 
none.  The licences of these institutions were either surrendered by decisions of their directors or by 
decisions of the Minister of Finance pending the strengthening of the regulatory protocols and the 
operation of the GARFIN Act.  At the time of Grenada's Review in 2001, before these closures, the 
Government received revenue in excess of EC$4.8 million in licensing and fees. 
                                                      
88 As specified in Insurance Act No. 10, 2002, a local co mpany is a company in corporated under the 
Companies Act, 1994, with not less than 51% of its issu ed share capital held by citi zens of Grenada;  or any 
company incorporated in a country, other than Grenada, which the Minister has specified by Order in the 
Gazette for purposes of this definition. 
89 WTO document WT/TRP/S/85/GRD, 7 May 2001. Grenada WT/TPR/S/190/GRD 
 Page 47 
 
 
221. In 2001, Grenada was added to the G7 Financ ial Action Task Force's (FATF) list of non-
cooperative countries (see Overview Report).  FTAF concerns included that Grenadian supervisory 
authorities had inadequate access to customer account information, inadequate authority to cooperate 
with foreign counterparts, and that Grenada did not have adequate qualification requirements for 
owners of financial institutions.  In 2003 following a number of legislative changes, Grenada was 
removed from the list.  These changes included:  establishment of a Financial Intelligence Unit under 
the direction of a prosecutor from th e Attorney-General’s office, whic h is responsible for information-
exchange with foreign authorities90;  promulgation of Proceeds of Crime Act No. 3 of 2003, which 
extends money laundering responsibilities to a num ber of non-bank financial institutions;  and 
Exchange of Information Act No. 2 of 2003, whic h relates to the Government’s ability to share 
information with foreign regulators. 
222. Offshore banks must be incorporated under the International Companies Act, Cap 152.  As 
required by the Offshore Banking Act (No. 13, 20 03),  offshore banks must be licensed by the 
Minister of Finance.  Conditions for licensing include: offshore banks may only conduct business in 
currencies other than Eastern Caribbean dollars;  one  bank director must be a resident citizen of 
Grenada;  and offshore banks must have a principa l office in Grenada.  Minimum capital requirements 
for offshore banks have increased since Grenad a’s last Review, and range from EC$3 million to 
EC$6 million depending on the type of licence gran ted.  Offshore banking licensees are required to 
make a special deposit with GARFIN of EC$270,000, and must constitute a reserve fund, into which 
they must transfer 10% of their profits every year.  Offshore banks are exempt from payment of taxes 
and duties, except for service charges and utility ch arges for services provided by the Government. 
223. Amendments to the International Financial Serv ices Authority Act have enabled the regulator 
to communicate relevant information to other Grenad ian authorities.  In addition, the International 
Companies Act was amended to create a registration mechanism for bearer shares of certain companies and to improve qualification requirements for offshore banking licenses.
91 
224. Offshore insurance services are regulated by In ternational Insurance Act No. 37 of 1996 and 
International Insurance (Amendment) Act No. 4 of 2000.  Insurance companies licensed under the 
1996 Act must maintain operations outside Grenada,  and maintain capital requi rements in accordance 
with the type of business in which they engage (EC$1 million for reinsurance, EC$2 million for long-
term business, and EC$3 million for general in surance business).  Activities are monitored by 
GARFIN.  There are currently no register ed international insurance companies. 
(iv) Air transport 
225. Grenada has not made any GATS commitments on air transport services.92 
226. Grenada has two airports, Point Salines Interna tional Airport (Grenada) and Lauriston Airport 
(Carriacou);  both are owned by the Government.  A ccording to the authorities, foreign ownership of 
airports is not permitted.  In 2006, there were a total of 171,004 passenger ar rivals to Point Salines 
International Airport.  Carriers operating flights in and out of Grenada are predominantly from the 
region, but also from the United States, United Kingdom, and Canada.93  According to the authorities, 
generally only high value and urge nt cargo is flown into Grenada;  within the region, the bulk of 
                                                      
90 Financial Intelligence Unit Act, No. 1 of 2003. 
91 FATF online information.  Viewed at:  http://www.fatf-gafi.org/dataoecd/4/32/33922320.pdf. 
92 WTO document GATS/SC/96, 15 April 1994. 
93 Information provided by the authorities.  There were 8,965 landings in 2005, compared with 10,021 
the previous year;  American Eagle (385);  British Airw ays (74);  BWIA (17);  Cari-Cargo (876);  Caribbean 
Star (2,318);  LIAT (2,965);  other scheduled flights (2,330). WT/TPR/S/190/GRD Trade Policy Review 
Page 48 
 
 
goods are carried by maritime transport.  In 2006, a total of 1.5 million kg of freight was transported 
in and out of Grenada.94  Most goods transported to the United States and the United Kingdom, such 
as shipments of fish and vegetables, are via regular airlines. 
227. The main legislation governing the sector is the Civil Aviation Act, 2004.  As noted by the 
authorities cabotage is, in principle, reserved for domest ic carriers.  Since, however, there is no locally 
incorporated airline, SVG Air (incorporated in  St. Vincent and the Gr enadines), provides these 
services, but its permit must be renewed annually.  Domestic airlines must be substantially owned by 
citizens of Grenada or a CARICOM member state, unless a waiver is granted. 
228. Overall responsibility for air transport in Grenada rests with the Minister responsible for civil 
aviation, currently the Minister of Tourism, Civil Aviation, Culture and the Performing Arts.  The Air 
Transport Licensing Board, is responsible for issui ng civil aviation licences to airlines to operate in 
Grenada.  At the regional level, safety and secu rity matters are the responsibility of the Eastern 
Caribbean Civil Aviation Authority (ECCAA) (see Overview Report). 
229. Under the Civil Aviation Act, approval by the Minister of Tourism is required before air 
transport service licences may be granted by the Air Transport Licensing Board.  This Ministerial 
approval requirement does not apply, however, to c itizens of Grenada or a member state of the OECS 
or CARICOM;  or a body incorporated in Grenad a that is substantially controlled by citizens of 
Grenada or a OECS/CARICOM member state.  U nder the Civil Aviation Act the following must be 
considered in granting a licence:  existence of other air services;  need/demand for the proposed 
service;  and any unfair advantage of the applican t over other operators by reason of the terms of 
employment of persons employed.  The above is sues are not considered for countries with which 
Grenada has a bilateral air agreement, unless the Mini ster directs otherwise.  However, consideration 
is given to whether the airline is fit, willing, and able to operate the service. 
230. Responsibility for airport administration lies with  the Grenada Airports Authority, which has 
full jurisdiction for airports within the state.95  The Authority is responsible for setting the fees for 
airport services.  It has a monopoly on the provision of airport management services; however, private 
(local and foreign) participation is permitted with respect to auxiliary services.  According to the 
authorities, contracts are in place for ground-handl ing services, catering, advertising, re-fuelling, 
maintenance of air navigation e quipment, and general concessions. 
231. Grenada levies an Airport Service Charge on passengers leaving Grenada by air 
(Chapter IV(vi)). 
232. Grenada is a contracting state of ICAO.  It h as two bilateral air services agreements, recorded 
by ICAO, with the United Kingdom (2002) and Suriname (1996). 
(v) Maritime transport 
233. Grenada has not scheduled any GATS specific co mmitments on maritime transport services.  
The Ministry of Finance is responsible for the form ulation of maritime transport policy.  The Grenada 
Shipping Act of 1994 provides the legislative framework  for merchant shipping;  there have been no 
changes to this Act over the review period. 
234. Under the Shipping Act, in order to be register ed in Grenada, vessels must be substantially 
owned by Grenadian citizens or public bodies, or a company established in and with its principal 
                                                      
94 Imports of freight totalled 977,000 kg in 2006, and exports 518,000 kg. 
95 Grenada Airports Authority Act No. 9 of 1985. Grenada WT/TPR/S/190/GRD 
 Page 49 
 
 
place of business in Grenada, where the majority of the ownership of the company is vested in 
Grenadian citizens and the company is managed by Grenadian citizens.  Only Grenadian registered 
ships may provide cabotage. 
235. According to the authorities, no government  cargos or other cargos are reserved for 
domestically flagged vessels or for ships owned or operated by the Government.  There are no cargo 
preferences, nor fiscal incentives to locally flagged ships. 
236. Grenada's principal port is St. Georges.  A ll commercial ports are currently owned by the 
Government of Grenada, as set out in the Port Authority Act, and managed by the Grenada Port 
Authority.  During the period under review, Grenad a has expanded the port of St. Georges, which has 
the capacity to hold two mega ships simultaneously.96  The duties of the Grenada Port Authority, 
established by the Ports Authority Act (1978), are to :  operate and administer ports;  regulate and 
control navigation;  maintain, im prove, and regulate the use of ports, and the services and facilities 
therein;  and provide pilotage servi ces and navigational services and aids.97  Private sector companies 
(including foreign companies incorporated as local subsidiaries) may apply to the Port Authority to 
provide services within privately owned terminals, but not in the main commercial seaports.  Charges 
levied on carriers and passengers are determined by the Government by way of the Ports Authority 
Tariff.  The authorities report, as a measure of the efficiency of port operations, that approximately 12-14 twenty foot containers are unloaded in an hour. 
237. In 2003, the cost of freight as a percentage of  the value of imports in Grenada was 20.1%;  
this was well above the developing country averag e of  9.1%, and much higher than most other 
Caribbean countries.
98  The authorities suggest that this ma y have been as a result of the small 
quantities imported as well as the paucity of exports. 
238. Grenada levies a cruise passenger tax (section (v i) below), and an environmental levy on 
vessels to cover the costs of garbage disposal. 
239. Grenada is a member of the International Maritime Organization, and has signed some of its 
conventions relating to liability and compensation, and maritime safety.  Since 2001, Grenada has 
taken measures to comply with the International Ship and Port Facility Security (ISPS) Code.  
According to the authorities, the Carenage and Melville  Street Port facilities in St. Georges' Port are 
ISPS compliant. 
(vi) Tourism 
240. Grenada has made specific commitments on "hotel development" limited to hotels with a 
capacity of in excess of 100 rooms.  Development of hotels with fewer rooms is subject to an 
economic needs test.  Foreign supplie rs may hire foreign staff only at managerial and sp ecialist levels, 
if the skills are in short supply or not available locally. 
241. In 2006, Grenada had a total of 118,654 stayover visitor arrivals.  The main markets were:  
other Caribbean countries (24.9%);  the United States (22.9%) and the United Kingdom (21.1%).  
Tourism in Grenada was badly affected by the imp act of Hurricane Ivan in September 2004, and to a 
lesser extent Hurricane Emily in 2005.  According to the Caribbean Development Bank, Grenada lost 
                                                      
96 Grenada Board of Tourism online information.   Viewed at:  http://www.grenadagrenadines. 
com/cruise_facts.html. 
97 Ports Authority Act (1978), Part III, (18)(3). 
98 UNCTAD (2005). WT/TPR/S/190/GRD Trade Policy Review 
Page 50 
 
 
nearly 50% of its hotel room capacity as a result of Hurricane Ivan.99  In 2005, tourist arrivals 
declined by 26%.  The industry, however, has pick ed up considerably since then:  by 2006 over 85% 
of the hotel room capacity had been restored100, and tourist arrivals had grown by 20.4%, although 
they remained 17% below 2003 levels.  The crui se industry accounted for 65% of overall visitor 
arrivals to Grenada in 2006.  While there had been growth in the cruise industry in 2004 (56%) and 
2005 (20%);  there was a 20% decline in 2006. 
242. The Minister of Tourism, Civil Aviation, Culture and the Performing Arts has overall 
responsibility for policy formulation and implementation in the tourism sector.101  Marketing, 
development, and promotion activities are carried out  by the Grenada Board of Tourism, as well as by 
the private sector Grenada Hotel and Tourism Association.102  According to the authorities, emphasis 
is being placed on developing community tourism and niche tourism products such as diving, eco-
tourism and a "total spice experience". 
243. Grenada offers fiscal in centives to encourage the development or renovation of hotels of ten 
rooms or more.  Under the Hotels Aid Act of 1 954, goods for the construction and equipment of 
hotels, with a minimum of ten rooms, may be imported duty free.  Licences to import duty-free goods, 
or to drawback duties paid on goods bought in Grenad a are granted by the Minister of Finance.  Under 
Order No. 99/1954, a condition attached to customs duty  exemptions is that at least three-quarters of 
the number of persons employed as hotel staff must be locals.103  According to the authorities, this 
clause has not been enforced.  Th e Hotels Aid Act, and the duty relief offered under the Act in its 
current form, pertains only to hotels and is unclear with respect to villa-style  developments, which are 
the current trend.  This has led to the uneve n application of tax incentives and a case-by-case 
approach.104 
244. Under the Investment Code Incentives Act, the Mini ster of Finance was able to grant ten-year 
corporate tax holidays for hotel developers.  In  the 2006, Budget Speech, the Government announced 
that this code would be repealed and a new schem e introduced with amendments to the Income Tax 
Act;  tax incentives would take the form of tax write-offs for investments and through accelerated 
depreciation with loss carry forward.  An investme nt code would also be implemented which would, 
inter alia , improve and clarify the legal system for incen tives in Grenada, outline investor rights and 
obligations, and detail investment procedures and means of access to fiscal incentives.105  The code is 
not yet in place (mid 2007).  Estimates of the revenue forgone as a result of the Hotels Aid Act and the Investment Code Incentives Act were not available. 
245. The Government of Grenada levies a number of  tourism-related taxes and charges:  a US$20 
Airport Service Charge on passengers leaving the country by air;  a US$3 cruise passenger tax;  a hotel room tax of 8%
106;  and a 7.5% refreshment charge on the purchase of food or drinks at hotels.107  
                                                      
99 Caribbean Development Bank online informati on.  Viewed at:  http://www.caribank.org/ 
Publications.nsf/EReview2005_grenada/$File/ECReview2005_grenada.pdf?OpenElement. 
100 Budget Speech 2006.  Viewed at:  http://w ww.gov.gd/doc/ Budget%20Speech %202006.pdf. 
101 Ministry of Tourism, Civil Aviation, Culture and the Performing Arts online information.  
Viewed at:  http://tourism.gov.gd. 
102 Grenada Board of Tourism online information.   Viewed at:  http://www.grenadagrenadines. 
com/index2.html;  and Grenada Hotel and Tourism Associ ation online information.  Viewed at:  http://www. 
grenadahotelsinfo.com. 
103 Grenada Industrial Development Corporation online information.  Viewed at:  http://www. 
grenadaworld.com/IPA_Information.asp. 
104 OECD (2006). 
105 Government of Grenada (2006a). 
106 Caribbean Tourism Organization online informat ion.  Viewed at:  http://www.onecaribbean.org/ 
information/documentview.php?rowid=4088. Grenada WT/TPR/S/190/GRD 
 Page 51 
 
 
At Lauriston Airport, an EC$10.00 security ch arge is levied on persons arriving by air.108  The VAT 
will replace an airline ticket tax previously applie d (Chapter I).  Information was not available 
regarding government revenue generated by these taxes. 
(vii) Professional services 
246. Grenada did not make any GATS specific commitments on professional services. 
247. The Government of Grenada has the exclusive au thority to pass legislation and regulations to 
govern the operation of professions in the country;  th ere are no general laws regulating the practice of 
professions.  However, the Medical, Dental and Su rgical Practitioners Act 1982 CAP 189 of the 
Revised Laws of Grenada regulates the practice of certain professional service providers (as defined 
under the Services Sectoral Classification list109).  The respective domestic associations, have the 
authority to review professional qualifications, and, if satisfied, issue licences to practice. 
248. In order to practice law in Grenada, professionals  must be admitted to the Bar.  The Foreign 
Nationals and Commonwealth Citizens (Employmen t) Act, and the work permit requirements 
contained therein, do not apply to barristers a nd solicitors who are Commonwealth Citizens, entitled 
to be in or enter Grenada, and entitled to practic e as a solicitor in Grenada.  According to the 
authorities, a provision in the Act that made th is access conditional upon reciprocal treatment being 
afforded to similarly qualified Grenadian practiti oners, has been removed.  Grenada is also a 
contracting party to the CARICOM Agreement Es tablishing the Council for Legal Education 
(see Overview Report).  In Annex III to the agreemen t, the government of each of the participating 
territories undertakes to recognize that any person hol ding a legal education certificate fulfils the 
training requirements for practice in its territory.110 
249. Other professional services are currently not re gulated, and no licensing requirements apply.  
According to the authorities, no professions are re served for nationals, and there are no professions 
whose practice requires residence in one of the OECS Member states or the Caribbean region. Grenada has not signed any mutual reco gnition agreements on professional services. 
250. A number of steps are being taken at the nationa l and CARICOM levels to give effect to the 
requirements of Chapter III of the Revised Treaty of  Chaguaramas, which relates to the right to 
establishment and to the provision of services within CARICOM.  A Draft Model Professionals Bill has been developed at the CARICOM level, which, inter alia , deals with requirements and procedures 
for registration and licensing of certain service providers including professional service providers.  This is intended to form the framework for laws  for specific professions, to be transposed into 
national legislation. 
251. As the result of a CARICOM initiative to enha nce the free movement of skilled persons, 
professional service providers, by virtue of being university graduates and CARICOM nationals, may 
enter and work in Grenada without a work permit,  under Caribbean Community Skilled Nationals Act 
                                                                                                                                                                    
 
107 Hotel Refreshment Charge Act, 1973. 
108 Grenada Tourist Board online information.  Viewed at:  http://www.grenadagrenadines. 
com/upload/destination_eng.pdf. 
109 WTO document MTN.GNS/W/120, 10 July 1991. 
110 CARICOM online information.  Viewed at:  http://www.caricom.org/jsp/secretariat/legal_ 
instruments/agreement_cle.jsp?menu=secretariat. WT/TPR/S/190/GRD Trade Policy Review 
Page 52 
 
 
No. 32, of 1995 (see Overview Report).111  As at January 2007, 62 CARICOM nationals had been 
issued with certificates to enter Grenada under this Act. 
(viii) Other offshore services 
252. Aside from offshore financial services, Gr enada’s offshore services industry comprises 
international companies (IBCs) established under th e International Companies Act.  There are 868 
registered IBCs. International companies that wish to  carry out banking, insurance, trust, international 
betting or company management services, must obtain a specific licence from GARFIN.  One company is registered under the Internationa l Betting Act and one company under the Company 
Management Act.  No figures were available on th e contribution of offshore activities to employment, 
investment, and government revenue.  IBCs must have  a registered agent in Grenada, and maintain an 
office in Grenada.  This may be th e office of the registered agent or rented office space.  International 
companies may not own property in Grenada. 
253. Grenada operated an Economic Citizenship  Program until November 2002, when it was 
suspended.  Figures were not available regarding th e number of persons granted citizenship under this 
scheme, and how much governme nt revenue it generated. 
254. The legislative framework for offshore betting is  the International Betting Act, 1998.  Licence 
applications must be made to the Registrar of O ffshore Services.  Licensees must maintain a principal 
office in Grenada, and deposit US$100,000 in a licen sed bank in Grenada.  A 2% tax on gross receipts 
derived from betting is payable each month to the Comptroller of Inland Revenue. 
 
                                                     
 
111 CARICOM online information.  Viewed at:  http://www.caricom.org/jsp/archives/freemovement 
matrix.htm. Grenada WT/TPR/S/190/GRD 
 Page 53 
 
 
REFERENCES 
 
Caribbean Development Bank (2003), Annual Economic and Financial Review 2002.   Viewed at: 
http://www.caricom.org/jsp/community/regional_issues/econrep_03-countrydata.pdf. 
 
ECCB (2004), Annual Economic and Financial Review 2003.   Viewed at: http://www.eccb-
centralbank.org/PDF/2003aefr(1).pdf.  ECCB (2005) Annual Economic and Financial Review 2004.   Viewed at: http://www.eccb-
centralbank.org/PDF/aefr2004.pdf. 
 ECCB (2006a) Annual Economic and Financial Review 2005 .  Viewed at: http://www.eccb-
centralbank.org/PDF/AEFR%202005%20-%20Final%20Document.pdf.  ECCB (2006b) National Accounts Statistics 2006.  Viewed at:  http://www.cccb-
centrallbank.org/PDF/NAC06.pdf. 
 ECCB (2007) Annual Economic and Financial Review 2006.  Viewed at:http://www.eccb-
centralbank.org/PDF/aefr06.pdf Eastern Caribbean Central Bank, National Accounts Statistics 2006.  
Viewed at:  http://www.eccb-centralbank.org/ PDF/NAC06.pdf. 
 
ECTEL (2006), Annual Telecommunication Sector Review .  Viewed at:  http://ectel.int/ectelnew-
2/Telecoms%20Market%20Data/Telecoms%20Sector%20Review%202006.pdf.  Government of Grenada (2006a), 2006 Budget Speech .  Viewed at:  http://www.gov.gd/doc/Budget 
%20Speech%202006.pdf. 
 
Government of Grenada (2006b), Growing Out of Poverty: A Strategy Direction in the Agricultural 
Sector-Grenada's Case .  Viewed at:  http://www.intracen.org/wedf/ef2006/Global-Debate/Country-
Team-Papers/Grenada_Paper.pdf.  
Government of Grenada (2006c), Letter of Intent, Memorandum of Economic and Financial Policies, 
and Technical Memorandum of Understanding , 21 March 2006.  Viewed at:  http://www.imf.org/ 
external/np/loi/2006/grd/032106.pdf.  IMF (2006), Grenada: Request for a Three-Year Arrange ment Under the Poverty Reduction and 
Growth Facility-Staff Report; and Press Re lease on the Executive Board Discussion,  IMF Country 
Report No. 06/277, 31 March, Washington, D.C.  Ministry of Finance (2006), Grenada Memorandum of  Economic Policies , March, St. George's. 
 OECS Secretariat (2004) A Macro-Socio Economic Assessment of the Damages Caused by 
Hurricane Ivan, 2004, October.  Viewed at:  http://www.oecs.org/assets/Grenada%20Report/ 
GRENADAREPORT.pdf.  OECS Secretariat (2005), A Macro-Socio-Economic Assessment of  Damage Caused by Hurricane 
Emily , 2005, September.  Viewed at:  http://www.re liefweb.int/library/documents/2005/oecs-grd-
7sep.pdf. 
 OECD (2006),  Investment Policy Reviews: Caribbean Rim: Antigua and Ba rbuda, Grenada and 
St. Lucia , Paris. WT/TPR/S/190/GRD Trade Policy Review 
Page 54 
 
 
UNCTAD (2005), Étude Sur Les Transports Maritimes , Geneva. 
 Vuletin, Guillermo (2007), "The Size of th e Informal Economy in the Caribbean", Eastern Caribbean 
Currency Union: Selected Issues , IMF Country Report No. 07/97, March.  Viewed at:  
http://www.imf. org/external/pubs/ft/scr/2007/cr0797.pdf. 
 World Bank (2007), Grenada at a Glance .  Viewed at.  http://siteresources.worldbank.org/ 
INTOECS/Resources/Grenada.AAG.pdf. 
  
APPENDIX TABLES Grenada WT/TPR/S/190/GRD 
 Page 57 
 
 
Table AI.1 
Merchandise exports and re-expor ts by group of products, 2000-06 
(US$ million and per cent) 
 2000 2001 2002 2003 2004 2005 2006 
  (US$ million) 
Total 76 59 38 38 32 .. .. 
  (% of total) 
Total primary products 33.2 45.3 65.3 54.3 63.7 .. .. 
   Agriculture 33.1 45.3 65.3 54.0 63.5 .. .. 
      Food 33.1 45.3 65.3 54.0 63.5 .. .. 
         0752 Spices (except pepper and pimento) 17.7 25.3 35.7 28.4 33.8 .. .. 
         0461 Flour of wheat or of meslin 6.0 8.2 10.6 8.6 8.8 .. .. 
         0721 Cocoa beans, whole or broken, raw or roasted 2.1 2.0 3.8 3.2 6.5 .. .. 
         0341 Fish, fresh, ch illed, whole 2.0 3. 0 5.1 2.1 4.8 .. .. 
         0342 Fish, frozen (excluding fill ets and minced fish) 2.2 3.4 4.5 6.0 4.5 .. .. 
         0819 Food waste, animal feeds n.e.s. 1.6 1.6 3.1 3.6 2.2 .. .. 
         0573 Bananas (including plantain s), fresh or dried 0.3 0.3 0.5 0.4 0.7 .. .. 
         1124 Spirits 0.1 0.1 0.2 0.1 0.6 .. .. 
         0361 Crustaceans, frozen 0.0 0.0 0.0 0.0 0.4 .. .. 
         1110 Non-alcoholic beve rage, n.e.s. 0.2 0.4 0.5 0.5 0.3 .. .. 
      Agricultural raw material 0.0 0.0 0.0 0.0 0.0 .. .. 
   Mining 0.1 0.0 0.1 0.3 0.2 .. .. 
      Ores and other minerals 0.0 0.0 0.0 0.1 0.2 .. .. 
      Non-ferrous metals 0.1 0.0 0.0 0.0 0.0 .. .. 
      Fuels 0.0 0.0 0.1 0.1 0.0 .. .. 
Manufactures 66.8 54.7 34.7 45.7 36.3 .. .. 
   Iron and steel 0.9 0.9 1.1 1.8 1.9 .. .. 
         6743 Flat-rolled iron/steel products, painted/varnished, etc. 0.2 0.3 0.5 1.0 1.1 .. .. 
         6741 Flat-rolled products, iron/ steel, zinc plated 0.7 0.5 0.6 0.8 0.6 .. .. 
   Chemicals 1.4 2.4 8.0 2.5 4.7 .. .. 
         5513 Essential oils;  resinoids; concen trates of essential oils 0.6 1.6 6.8 0.5 2.4 .. .. 
         5334 Paints and varnishes; plasti cs in solution; etc. 0.6 0.6 1.0 1.7 1.8 .. .. 
   Other semi-manufactures 3.2 3.7 6.4 7.0 7.7 .. .. 
         6424 Paper and paperboard, cut to size or shape, n.e.s. 2.1 2.8 4.9 5.4 6.1 .. .. 
   Machinery and transport equipment 58.6 45.2 14.2 29.3 13.6 .. .. 
      Power generating machines 0.0 0.7 0.6 4.0 0.8 .. .. 
         7165 Generating sets 0.0 0.2 0.0 3.9 0.5 .. .. 
         7163 Motors and generators, alternating current 0.0 0.4 0.0 0.0 0.3 .. .. 
      Other non-electrical machinery 2.6 3.7 4.0 10.2 2.4 .. .. 
         7443 Derrick, cranes, mobile lifting frames, etc. 0.3 0.0 1.3 0.0 0.6 .. .. 
         7232 Mechanical shovels, et c., self-propelled 0.2 0.2 0.0 3.3 0.6 .. .. 
         Agricultural machinery and tractors 0.0 0.0 0.0 0.0 0.0 .. .. 
      Office machines & telecommuni cation equipment 18.4 13.5 5.4 1.8 3.1 .. .. 
         7643 Radio or television tran smission apparatus 0.0 0.1 1.0 0.2 0.9 .. .. 
         7642 Microphones and stands thereof; loudspeakers 0.2 0.1 0.7 1.2 0.8 .. .. 
         7648 Telecommunications equipment, n.e.s. 0.0 0.0 0.0 0.0 0.7 .. .. 
      Other electrical machines 36.5 26.6 3.3 0.5 0.7 .. .. 
      Automotive products 0.4 0.7 0.6 2.9 2.7 .. .. 
         7812 Motor vehicles for the transport of persons, n.e.s. 0.1 0.3 0.5 0.1 1.7 .. .. 
         7822 Special purpose vehicles 0.0 0.0 0.0 2.0 0.6 .. .. 
      Other transport equipment 0.7 0.0 0.1 9.9 3.9 .. .. 
         7931 Yachts and other pleasur e/sports/vessels 0.0 0.0 0.0 0.0 3.6 .. .. 
   Textiles 0.0 0.0 0.0 0.1 0.1 .. .. 
   Clothing 1.0 0.9 2.0 1.5 1.6 .. .. 
   Other consumer goods 1.8 1.6 2.9 3.6 6.8 .. .. 
       8939 Plastic articles, n.e.s. 0.8 0.0 0.0 1.7 4.6 .. .. 
       8973 Jewellery of gold, silver or platinum metals (except 
watches) 0.4 0.1 0.0 0.0 1.2 .. .. 
       8854 Wrist-watches a nd other watches (excl. of 885.3) 0.1 0.0 0.0 0.0 0.3 .. .. 
 
.. Not available.  
Source:  UNSD, Comtrade database (SITC Rev.3). WT/TPR/S/190/GRD Trade Policy Review 
Page 58 
 
 
Table AI.2 
Merchandise imports by group of products, 2000-06 
(US$ million and per cent) 
Description 2000 2001 2002 2003 2004 2005 2006 
 (US$ million) 
Total 239 212 199 253 250 .. .. 
 (% of total) 
Total primary products 30.1 31.3 34.5 27.8 32.8 .. .. 
   Agriculture 20.6 22.1 24.0 20.2 26.2 .. .. 
      Food 18.4 20.1 21.6 17.9 23.6 .. .. 
         0989 Food preparations, n.e.s. 1.2 1.0 1.2 0.9 5.4 .. .. 
         0123 Poultry, meat and offal 2.1 2.3 2.4 2.0 2.1 .. .. 
         1110 Non-alcoholic beve rage, n.e.s. 0.6 0.6 0.7 0.7 1.9 .. .. 
         0222 Milk concentrated or sweetened 1.4 1.7 1.8 1.4 1.3 .. .. 
         0249 Other cheese; curd 0.8 0.7 0.9 0.6 0.8 .. .. 
         0484 Bread, baked goods 0.8 0.9 1.0 0.8 0.7 .. .. 
         1123 Beer made from malt (includi ng ale, stout and porter) 0.5 0.5 0.5 0.5 0.7 .. .. 
         0910 Margarine, etc. 0.6 0.7 0.8 0.6 0.5 .. .. 
         0412 Other wheat (including spelt)  and meslin, unmilled 0.6 0.9 0.7 0.1 0.5 .. .. 
         0351 Fish, dried, salted 0.5 0.6 0.7 0.4 0.5 .. .. 
      Agricultural raw material 2.2 2.0 2.4 2.3 2.6 .. .. 
         2482 Wood of coniferous, sawn of a thickness > 6 mm 0.8 0.8 1.0 0.9 1.1 .. .. 
   Mining 9.5 9.2 10.5 7.6 6.6 .. .. 
      Ores and other minerals 0.6 0.2 0.3 0.4 0.2 .. .. 
      Non-ferrous metals 0.2 0.2 0.2 0.2 0.3 .. .. 
      Fuels 8.8 8.8 10.0 6.9 6.1 .. .. 
         3341 Motor gasolene, light oil 2.8 3.4 3.5 3.2 3.5 .. .. 
         3442 Gaseous hydrocarbons, liquefied, n.e.s. 0.7 1.0 1.0 1.0 1.0 .. .. 
Manufactures 69.9 68.6 65.5 72.2 67.1 .. .. 
   Iron and steel 2.2 1.9 1.6 2.7 3.7 .. .. 
         6741 Flat-rolled products, iron/ steel, zinc plated 0.2 0.2 0.2 0.2 1.1 .. .. 
   Chemicals 6.6 10.8 8.0 6.9 6.1 .. .. 
         5429 Medicaments, n.e.s. 1.2 4.8 1.7 1.4 1.2 .. .. 
         5542 Surface-active agents (excl. soap) 0.8 0. 9 1.2 0.9 0.8 .. .. 
   Other semi-manufactures 13.0 13.9 15.1 14.7 14.0 .. .. 
         6343 Plywood of sheets <6 mm thickness 1.0 1.2 1.3 1.0 2.2 .. .. 
         6612 Portland cement and similar hydraulic cements 1.8 1.9 2.1 2.0 1.7 .. .. 
         6912 Aluminium structures and parts 0.8 0.7 0.9 0.8 0.9 .. .. 
   Machinery and transport equipment 32.9 27.8 25.0 30.5 25.5 .. .. 
      Power generating machines 1.8 1.4 3.1 1.6 3.2 .. .. 
         7165 Generating sets 1.1 0.2 0.8 1.2 2.7 .. .. 
      Other non-electrical machinery 5.5 5.5 5.5 6.6 4.5 .. .. 
         Agricultural machinery and tractors 0.1 0.2 0.1 0.1 0.1 .. .. 
      Office machines & telecommuni cation equipment 6.3 6.3 7.0 9.2 6.0 .. .. 
         7643 Radio or television tran smission apparatus 0.8 0.9 1.2 3.9 2.0 .. .. 
         7523 Digital processing units 1.2 1.3 1.2 1.0 1.0 .. .. 
      Other electrical machines 11.3 7.5 3.8 4.3 4.5 .. .. 
         7731 Insulated wire, cable etc.; optical fibre cables 0.6 0.7 0.5 0.8 1.1 .. .. 
         7725 Switches, relays, fuses etc.  for a voltage < 1000 V 7.7 4.2 0.8 0.7 0.7 .. .. 
         7752 Household fridges and freezers 0.6 0. 5 0.4 0.6 0.6 .. .. 
      Automotive products 6.2 6.3 4.8 6.0 6.2 .. .. 
         7812 Motor vehicles for the transport of persons, n.e.s. 3.0 2.6 2.3 3.5 3.3 .. .. 
         7821 Goods vehicles 1.2 1.6 1.2 1.1 1.2 .. .. 
      Other transport equipment 1.7 0.8 0.8 2.9 1.2 .. .. 
   Textiles 1.6 1.3 1.4 1.2 5.5 .. .. 
   Clothing 1.3 1.3 1.5 1.6 2.2 .. .. 
   Other consumer goods 12.3 11.6 12.9 14.8 10.0 .. .. 
         8939 Plastic articles, n.e.s. 2.0 1.8 1.8 1.6 1.2 .. .. 
         8921 Printed books, pamphlets, maps, et c. (excl. ad. material) 1.3 1.4 1.2 4.9 1.1 .. .. 
 
.. Not available.  
Source:  UNSD, Comtrade database (SITC Rev.3). Grenada WT/TPR/S/190/GRD 
 Page 59 
 
 
Table AI.3 
Merchandise exports and re-exports by trading partner, 2000-06 
(US$ million and per cent) 
Description 2000 2001 2002 2003 2004 2005 2006 
 (US$ million) 
Total 76 59 38 38 32 .. .. 
 (% of total) 
  America 67.6 63.9 63.5 64.1 57.4 .. .. 
    United States 47.5 38.5 29.3 29.0 23.3 .. .. 
    Other America 20.2 25.4 34.2 35.1 34.1 .. .. 
      Canada 1.0 1.1 1.0 1.6 2.0 .. .. 
      St Lucia 3.4 4.4 7.7 7.5 6.3 .. .. 
      St Kitts and Nevis 2.0 2.4 3.7 5.0 5.2 .. .. 
      Barbados 2.3 3.0 5.0 3.9 4.6 .. .. 
      Dominica 2.5 3.2 2.5 1.5 2.5 .. .. 
      Antigua and Barbuda 2.3 1.9 3.0 2.8 2.0 .. .. 
      Argentina 0.6 1.3 1.8 1.4 1.9 .. .. 
      Jamaica 0.7 1.2 1.5 1.5 1.9 .. .. 
      St Vincent and the Grenadines 0.7 0.7 1.3 2.4 1.6 .. .. 
      Trinidad and Tobago 1.6 4.4 4.2 4.1 1.6 .. .. 
      Guyana 0.1 0.3 1.0 1.2 1.3 .. .. 
      Nicaragua 0.0 0.0 0.0 0.0 1.1 .. .. 
      Dominican Rep. 1.2 0.3 0.5 1.8 0.6 .. .. 
      Brazil 0.5 0.3 0.2 0.0 0.4 .. .. 
  Europe 31.5 35.8 35.7 34.4 39.4 .. .. 
    EC(25) 31.5 35.8 35.7 34.4 39.4 .. .. 
      The Netherlands 4.1 12.1 19.2 10.0 16.6 .. .. 
      Belgium 1.1 1.8 4.5 5.3 7.6 .. .. 
      France 3.1 1.4 4.4 2.1 5.4 .. .. 
      Germany 5.0 6.9 5.5 6.3 4.7 .. .. 
      United Kingdom 1.5 1.1 1.2 1.0 4.5 .. .. 
      Denmark 0.0 0.0 0.0 0.2 0.3 .. .. 
      Spain 0.2 0.1 0.7 0.0 0.3 .. .. 
    EFTA 0.0 0.0 0.0 0.0 0.0 .. .. 
    Other Europe 0.0 0.0 0.0 0.0 0.0 .. .. 
  Commonwealth of Independent Stat es (CIS) 0.0 0.0 0.0 0.0 0.0 .. .. 
  Africa 0.0 0.0 0.0 0.0 0.3 .. .. 
      Congo 0.0 0.0 0.0 0.0 0.3 .. .. 
  Middle East 0.1 0.0 0.0 0.0 0.0 .. .. 
  Asia 0.7 0.2 0.6 0.7 2.9 .. .. 
    China 0.0 0.0 0.0 0.1 0.0 .. .. 
    Japan 0.1 0.2 0.6 0.6 2.7 .. .. 
    Six East Asian Traders 0.5 0.0 0.0 0.0 0.2 .. .. 
      Korea, Rep. of 0.0 0.0 0.0 0.0 0.2 .. .. 
    Other Asia 0.1 0.0 0.0 0.0 0.0 .. .. 
  Other 0.1 0.1 0.1 0.9 0.0 .. .. 
      Areas n.e.s 0.1 0.1 0.1 0.9 0.0 .. .. 
Memorandum:             
    EC(15) 31.4 35.8 35.7 34.4 39.4 .. .. 
    ASEAN 0.1 0.0 0.0 0.0 0.0 .. .. 
    APEC 49.1 39.8 30.9 31.3 28.3 .. .. 
    MERCOSUR 1.1 1.7 2.1 1.4 2.3 .. .. 
 
.. Not available. 
 
Source:  UNSD, Comtrade database (SITC Rev.3). WT/TPR/S/190/GRD Trade Policy Review 
Page 60 
 
 
Table AI.4 
Merchandise imports by trading partner, 2000-06 
(US$ million and per cent)  
Description 2000 2001 2002 2003 2004 2005 2006 
 (US$ million) 
Total 239 212 199 253 .. 250 .. 
 (% of total) 
  America 76.8 79.4 78.3 73.4 .. 77.2 .. 
    United States 45.0 46.8 43.6 42.2 .. 42.6 .. 
    Other America 31.8 32.5 34.7 31.3 .. 34.5 .. 
      Canada 2.6 2.8 2.4 2.3 .. 3.2 .. 
      Trinidad and Tobago 18.6 19.3 20.9 18.4 .. 18.9 .. 
      Barbados 2.3 2.5 2.6 2.0 .. 3.3 .. 
      Brazil 0.8 0.9 1.2 1.4 .. 1.8 .. 
      Honduras 1.1 0.6 1.1 1.2 .. 1.2 .. 
      Guyana 1.0 1.0 1.3 0.9 .. 1.1 .. 
      St Lucia 0.6 0.8 0.7 0.8 .. 0.8 .. 
      St Vincent and the Grenadines 0.4 0.4 0.4 0.3 .. 0.7 .. 
      Jamaica 0.8 0.7 0.7 0.6 .. 0.6 .. 
      Mexico 0.5 0.6 0.5 0.5 .. 0.5 .. 
      Bolivarian Rep. of Venezuela 1.1 1.3 1.1 0.9 .. 0.5 .. 
      Panama 0.3 0.3 0.4 0.2 .. 0.3 .. 
      Argentina 0.0 0.1 0.1 0.1 .. 0.3 .. 
      Costa Rica 0.0 0.0 0.1 0.3 .. 0.2 .. 
      Antigua and Barbuda 0.1 0.1 0.1 0.2 .. 0.2 .. 
      Dominican Rep. 0.2 0.1 0.2 0.2 .. 0.2 .. 
  Europe 14.9 12.5 14.1 17.4 .. 12.8 .. 
    EC(25) 14.2 11.8 13.3 16.7 .. 12.2 .. 
      United Kingdom 8.8 7.0 6.3 6.0 .. 6.5 .. 
      Germany 2.1 1.0 2.6 3.2 .. 1.6 .. 
      The Netherlands 0.9 1.1 1.3 1.8 .. 1.3 .. 
      France 0.6 0.9 1.5 1.8 .. 1.1 .. 
    EFTA 0.5 0.8 0.7 0.7 .. 0.5 .. 
      Norway 0.4 0.5 0.5 0.5 .. 0.4 .. 
    Other Europe 0.1 0.0 0.1 0.0 .. 0.1 .. 
  Commonwealth of Independent Stat es (CIS) 0.0 0.0 0.0 0.0 .. 0.0 .. 
  Africa 0.1 0.1 0.2 0.2 .. 0.1 .. 
      South Africa 0.1 0.1 0.1 0.1 .. 0.1 .. 
  Middle East 0.1 0.1 0.1 0.0 .. 0.1 .. 
  Asia 7.8 7.5 6.9 8.4 .. 9.8 .. 
    China 0.6 0.7 1.1 1.2 .. 1.7 .. 
    Japan 4.2 4.1 3.2 4.4 .. 4.9 .. 
    Six East Asian Traders 1.2 1.1 1.0 1.1 .. 1.6 .. 
    Other Asia 1.8 1.6 1.5 1.8 .. 1.8 .. 
      New Zealand 0.7 0.6 0.9 0.6 .. 0.8 .. 
      Australia 0.8 0.4 0.3 0.8 .. 0.6 .. 
  Other 0.3 0.4 0.4 0.5 .. 0.0 .. 
Memorandum:             
    EC(15) 14.2 11.7 13.3 16.6 .. 12.1 .. 
    ASEAN 0.3 0.4 0.3 0.4 .. 0.6 .. 
    APEC 55.8 57.5 53.3 53.4 .. 56.1 .. 
    MERCOSUR 0.9 1.0 1.4 1.6 .. 2.0 .. 
 
.. Not available. 
 
Source:  UNSD, Comtrade database (SITC Rev.3). 
 
__________