RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/190/VCT 
1 October 2007  
 (07-3993) 
Trade Policy Review Body Original:  English 
  
 
   
 
TRADE POLICY REVIEW 
 
Report by 
 
SAINT VINCENT AND THE GRENADINES 
 
   
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by  Saint Vincent and the Grenadines. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Saint Vincent and the 
Grenadines. Saint Vincent and the Grenadines WT/TPR/G/190/VCT 
 Page 3 
 
 
NAME OF COUNTRY:   ST. VINCENT AND THE GRENADINES  
CAPITAL:     Kingstown 
 POPULATION :    100,745 
 
LOCATION:     13 Degrees North, and 61 degrees West 
 
SIZE:      133 Sq. km or 150 sq, miles 
 CONSTITUTIONAL STATUS:   Independent Parliamentary Democracy, 27
th October 1979. 
 
LEGAL SYSTEM:    English Common Law 
 
G D P :      EC$972.0M (Market prices 2005)  
 PER CAPITA INCOME:   US$3,036 (Basic Prices 2005) 
 
MAJOR EXPORTS:   Banana, Flour,  root crops and metallic zinc 
     (Agriculture 75%, Manufacturing 24%, Re-exports 9.6%) 
 
MAJOR IMPORTS: Machinery and transp ort equipment, semi- manufacturers, 
consumer goods, food & beverage 
  Manufactured goods 60%, food and beverage 21.5%, semi 
manufactured goods 14%, consumer goods 10%. 
 
 MAJOR  TRADING  PARTNER:   Exports:  CARICOM (50%), U.K., USA 
     Imports:  USA (33.3%), Trinidad & Tobago (23.6%), U.K. (9.4%) 
 DEBT SERVICING:     24% of current expenditure (2006)  
 
INFLATION RATE:    4.8% (2006); Av. 2.2% (2001-2006) 
 
EXCHANGE RATE:    US$1.0 = EC$2.70  
 
 
 Saint Vincent and the Grenadines WT/TPR/G/190/VCT 
 Page 5 
 
 
CONTENTS 
  Page 
I. INTRODUCTION 7 
II. MACROECONOMIC AND TRADE PERFORMANCE 8 
(i) Overview of macroeconomic performance in the 2000s 8 (ii) Trade and sectoral patterns 8 
III. TRADE POLICY AND INSTITUTIONAL FRAMEWORK 12 
(i) Trade policy formulation and implementation 12 (ii) Elements of trade and foreign investment developments 14 
(iii) Trade policy negotiations 16 
IV. REGIONAL INTEGRATION:  THE ESTABLISHMENT OF THE CARICOM  SINGLE 
MARKET AND ECONOMY 17 
V. BILATERAL/HEMISPHERIC AND PREFERENTIAL TRADE ARRANGEMENTS 18 VI. MULTILATERAL FRAMEWORK – THE WTO AND THE URUGUAY ROUND 19 
(i) Implementation of the Uruguay Round Agreements 19 
(ii) Technical assistance 22 (iii) Aid for trade 23 
VII. CONCLUSION  24 
  
 Saint Vincent and the Grenadines WT/TPR/G/190/VCT 
 Page 7 
 
 
 I. INTRODUCTION 
1. St. Vincent and the Grenadines is an archipelago of 32 islands and cays that are situated in the 
Eastern Caribbean, and form part of the Windward Islands.  St. Vincent, 18 miles long from North to South, and 11miles at its widest, has an area of 133 square miles, and the largest of the group. 
2. The chain of smaller Grenadine islands, most of  which are no longer than a few miles, lies 
south west of St. Vincent.  The largest include Bequia, Mustique, Canouan, Palm, Petit St. Vincent, 
Mayreau and Union.  The population is estimated at 100,745, 72.8 percent of whom are of African descent, while the remaining 27.2 percent are a mix of descendants of East Indians, European and 
indigenous people. 
3. St. Vincent and the Grenadines attained political independence from Great Britain on 
October 27, 1979 and inherited a Westminster Parl iamentary Democracy System of Government.  It 
holds membership in a number of regional and inte rnational organizations and is a founding member 
of the Organization of Eastern Caribbean States (OECS).  The OECS comprises six (6) independent member states:  Antigua and Barbuda, the Commonw ealth of Dominica, Gren ada, the Federation of 
St. Christopher and Nevis, St. Lucia and St. Vi ncent and the Grenadines;  and three (3) British 
dependencies:  Montserrat, Anguilla  and British Virgin Islands.  The eight (8) member countries of 
the OECS share a common currency, the EC dollar. 
4. SVG is a small open economy susceptible to ex ternal economic shocks and natural disasters 
and dependence on international trade.  The susceptib ility of SVG to a variety of natural disasters, 
principally hurricanes and flooding is well known.  Th e limited availability of social safety nets for 
rapid responses to economic adjustments has cont ributed to economic and social dislocations, 
particularly within rural communities.  Due to bot h external and internal challenges, the GoSVG has 
to continuously, redefined developm ental policies.  The downturn of the economy was partly due to a 
declining productive sector, rising import bill and a tr ade deficit ratio of 7:1.  This situation was 
further exacerbated as a result of  the exigencies of international trade, the reduction of trade 
preferences in the agricultural sector and the impact  of natural disasters. This has led to high public 
sector debt, fiscal imbalances and pers istent unemployment and poverty.  
5. The Government pursues a policy of main - stream social democracy adapted to the 
prevailing national condition. Policies and prog rammes are intended to be people–centered and 
summons up collective solidarity and individual responsibility. 
6. During the short to medium term, the Govern ment of SVG (GoSVG) plans to focus on the 
following:  Accelerating economic growth; Building up the human –resource base;  Poverty 
reduction/rural transformation and Export-led growth  and development.  The macro –economic policy 
of the GoSVG, and indeed the private sector, reflec ts a commitment to the revitalization of the main 
productive sectors and the creation of jobs for the unemployed.  The expansion, diversification and 
restructuring of the economy in addition to the supportive mechanisms, facilitate the process of 
sustainable development.  The long term goal of th e government is to achieve sustainable balanced 
growth by transforming the economic base of the country into an export-led economy. 
7. Overall, the current policy initiatives provide a continuing programme of reform to assist in 
meeting the national objectives.  The draft 2020 Na tional Social and Economic Development Plan and 
the National Export Strategy Paper are intended to  build on this foundation.  The services sector 
(Tourism) is growing in significance and has been acco rded priority in the new thrust.  Non - banana 
agriculture and fisheries, financial services, info rmation technology, and the creative industries have WT/TPR/G/190/VCT Trade Policy Review 
Page 8 
 
 
 also been targeted as new growth areas in the formulation of a National Export Strategy.  Government 
has also emphasized universal education, as part of its human resource development programme.  Food security and rural transformation have been id entified as vehicles in poverty reduction.  These 
measures are deemed as critical elements in fac ilitating Government’s vision of a modern competitive 
post colonial economy. 
II. MACROECONOMIC AND TRADE PERFORMANCE 
(i) Overview of macroeconomic performance in the 2000s 
8. The economy of St. Vincent and the Grenadines r ecorded positive growth in all years over the 
past decade, with the exception of a small fall in  2001, following the general decline in global growth 
and the September 11th bombings.  Growth has been  achieved despite considerable changes in the 
factors of production, declining le vels of development assistance as well as changes in market access 
arrangements for key products.  
Table 1.1:  GDP growth per annum at constant prices, 1996-2006  
Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 (P) 
Growth Rate  1.2 3.1 5.8 3.6. 2.0  -0.1 3.2 2.8 6.8 2.6 6.9 
5 year Av.      3.1     3.0  
Source: Statistical Office, Ministry of  Finance and Planning, SVG. 
9. Whilst annual performance has varied considerab ly, over the longer period, growth has been 
relatively stable at around 3% per annum.  Growth in 2006 was estimated at 6.90% (prel).  Real per 
capita GDP during this period increased from approxi mately US$2,639 in 2001 to US$3,526 in 2005. 
(ii) Trade and sectoral patterns 
10. During the last five years, there has been a significant increase in the contribution of services 
to GDP, while the contributions of agriculture and manufacturing have declined.  The services sector 
accounted for 75% of GDP at basic prices in 2006;  within services, the main activities include 
wholesale and retail trade, government services, and transportation.  Table 1.2 below shows the differences in economic contribution to GDP in 20 05 relative to 1996 for those significant economic 
activities where the differences are greater than 30% in terms of contribution. 
Table 1.2:  Major falls and rises in % co ntribution to GDP (constant prices) 1996-2005  
 1996 2006a Change 2006/1996  % Change 2006/1996  
Banana 4.7 1.3 -3.4 -71.6% 
Fishing 2.3 1.5 -0.8 -35.6% 
Manufacturing 8.5. 5.4 -3.1 -36.5% 
Electricity & Water 5.5 7.2 1.7 30.9% 
Wholesale & Retail 14.7 19.4 4.7 32.0% 
Communications 8.6 9.7 1.1 12.8% 
a Preliminary.  
Source:  Statistical Office, Ministry of Finance and Planning, SVG. 
11. The change in relative contribution to GDP has been more dramatic in relation to bananas 
largely reflecting the terms of access to EU markets with consequent impact on volumes and prices of exports.  Manufacturing has also suffered from a lack  of competitiveness due to the large disparity in Saint Vincent and the Grenadines WT/TPR/G/190/VCT 
 Page 9 
 
 
 energy costs across the region and steady rise in the price of fossil fuels on the global market 
(sub US$20 per barrel in 2001 to almost US$70 per ba rrel in 2006). The largest absolute increase in 
contribution to GDP was reflected in the wholesa le and retail sectors, with communications and 
electricity and water also revealing significant increases.  
12. The impact of Tourism is not directly apparent from the above classification.  Tourism 
impacts in various ways in terms of construction,  wholesale and retail and use of services in addition 
to the direct contribution of hotels and restaurants.   The development of a major signature resort in 
Canouan , as well as the filming of the Pirates of the Caribbean in 2004 -2005 has been part of an 
increase in the overall tourism contribution.  Stay ov er visitors have risen from 70, 689 in 2001 to 
95,505 in 2005, indicating the increasing importa nce of the sector (though the overall number of 
visitors is broadly unalte red due to a fall in other visitor numbe rs in yachting and cruises).  Hotels 
and restaurant (proxy for tourism) contribution to GDP remained on average about 2.4 percent during the decade.  Notwithstanding the above, gros s tourism receipts increased from an estimated 
EC$216.5 million in 2001 to EC$2 80.5 in 2005, surpassing bananas as the single largest income 
generating activity in the economy.  The Services Sector as a group grew in excess of an average of 
5 percent per annum over the last ten years, mirroring the trend of the growing dominance of trade in 
services in the international economy. 
13. The Agricultural sector  in 2006 contributed 9.3 % of GDP, down from 14.8 in 2001.  
However, agricultural exports grew in 2005 by 0.2%  over 2004 figures, as the decline in banana was 
counterbalanced by the exports in non- banana agriculture, especially root crops which recorded 
export earnings of EC$10.2 million and which exceed ed export earnings from root crops in 2004 by 
EC$2.22 million in 2005.  Within agriculture, SVG has continued to diversify from the production of 
bananas, and their contribution to GDP has declined from 3.5% in 2000 to 1.3 % in 2006.  Construction accounted for 10.4% of GDP in 2006, up from 9.5% in 2001, while manufacturing accounted for 5.4%, and water and electricity for 7.2%.  
14. The current account of the Balance of Payments  has consistently shown a deficit, reflecting 
largely the deficit in merchandise trade.  (Tabl es 1.3 and 1.4).  The dec line in agriculture has 
significantly contributed to export levels with export value in 2005 being lower than in 1996, even in 
nominal terms.  Import levels have generally incr eased leading to the further deterioration in the 
balance of trade in goods.  A strong service sector, de rived largely from tourism, helps to offset this 
variance by reducing the current account deficit. 
Table 1.3: Balance of Paym ents Current Account EC$M 
 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005a 
Exports of goods (f.o.b) 142 128 135 134 140 115 111 108 106 108 
Imports  of goods(f.o.b) 346 412 404 370 352 410 426 477 537 572 
Balance of trade in goods -204 -284 -269 -236 -213 -295 -315 -369 -431 -459 
Balance of trade in Services 104 68 84 189 198 204 216 184 194 214 
Income Payments (net) -24 -34 -37 -53 -52 -45 -48 -64 -78 -72 
Current Transfers(net) 35 24 35 39 44 34 33 35 38 49 
BOP Current Account -89 -218 -187 -61 -23 -101 -113 -215 -277 -274 
a Preliminary. 
Source: The Statistical Office – Mi nistry of Finance & Planning. 
15. Most of St. Vincent and the Grenadines’ external trade  takes place under preferential 
conditions.  Agricultural exports account for some 75%  of total exports.  Other agricultural exports WT/TPR/G/190/VCT Trade Policy Review 
Page 10 
 
 
 include flour and rice, sweet potatoes, eddoes, and dasheen, arrowroot, coconuts and plantains.  
Exports of manufacturers accounted for 24% of total exports in 2005; the main items were machinery 
and equipment and iron and steel pr oducts.  Re- exports, mainly of equipment and machinery, closely 
tied to the completion of large investment projects, represented some 9.6% of total exports in 2005.  
16. The value of the top ten domestic exports  has been declining.  In 2000 the top ten domestic 
exports generated EC $94.5 million but  in 2005 figure showed a decline to EC $72.5 million.  This 
represents 67.33% of total exports for that year.  Bananas continue to be the most significant export 
product at 29.8% of total exports in 2005, notwithst anding the challenges to this industry.  This is 
followed by Flour;  an Article 164 product of th e Revised CARICOM Treaty of Chaguaramas which 
makes up 12.57% of total exports and then dasheens , at 4.87%.  Overall exports in 2006 further 
declined by 4.45% from EC$107,676,585 in 200 5 to EC$102,888,968 in 20 06. (see Table 1.4)  
Table:  1.4 - Trade Balance 1998-2006 SVG goods. 
 Imports ($EC) Domestic 
Exports ($EC) Re-Exports ($EC) Total Exports 
($EC) Trade Balance 
($EC) Imp. 
Cover (%) 
1998 518,818,168 126,198,472 7,846,950 134,045,422 -384,772,746 25.84 
1999 542,157,318 120,923,728 12,475,893 133,399,621 -408,757,697 24.61 
2000 440,931,045 117,162,632 19,430,941 136,593,573 -304,337,472 30.98 
2001 464,000,275 96,225,941 16,151,540 112,377,481 -351,622,794 24.22 
2002 481,984,258 97,863,909 8,234,164 106,098,073 -375,886,185 22.01 
2003 543,340,446 83,093,510 19,754,645 102,848,155 -440,492,291 18.93 
2004 608,507,959 89,364,170 9,484,831 98,849,001 -509,658,958 16.24 
2005 649,426,771 91,601,619 16,074,966 107,676,585 -541,750,186 17.00 
2006 733,018,778 91,176,802 11,712,166 102,888,968 630,129,810 14.00 
Source:  Statistical department, Ministry  of Finance and Planning, 2007. 
17. Merchandise Imports  expanded by 34% over 2001-05, or at an average annual rate of 6 %.  
The strong Construction activity linked to the Touris m industry and other infrastructure projects have 
been in a great part behind this growth.  Th e main imports are food, manufactured goods and 
machinery and transport equipment.  Over 60% of imports in 2005 were manufactured goods, 
particularly machinery and transport equipm ent (22.7%), semi manufactures (14%) and other 
consumer good (10% of total imports).  Food and be verage accounted for 21.5% of total imports and 
the rest was accounted for by, fuels, crude materials,  chemicals, oils and fats.  At the end of 2006, the 
ratio of imports to exports stood at (7:1) with import values soaring at EC$733,018,778.00 in 2006, an 
increase of 12.87% over EC$649,426,771.00 in 2005. 
18. The main trading partners  are the United Kingdom, the Unite d States, and other CARICOM 
member countries, which accounted for more than 97% of exports and 76% of im ports in 2005.  Over 
half of total exports are destined for the CARICOM area.  The United States is the main supplier, with 
33.3% of the total;  other important individual su ppliers are Trinidad and Tobago (23.6%) and the 
United Kingdom (9.4%).  The remaining supplie rs accounted for less than five (5%) each.  
19. Since 2001, the trade shares of SVG’s main trad ing partners have re mained unchanged on the 
import side;   imports from the  United Kingdom  peaked at EC$63.8M in 2004 and currently stands at 
EC$51.8M in 2006.  The import figures for the United States  had been consistently increasing and 
stood at EC$235.9M in 2006.  Imports between SVG and other CARICOM states  have risen 
considerable over the years from EC$125.9M in 2000 to EC$165.1M in 2004 and approximately EC$300.0M in 2006. In 2006, Trin idad and Tobago accounted for approximately 73% of total Saint Vincent and the Grenadines WT/TPR/G/190/VCT 
 Page 11 
 
 
 CARICOM exports into SVG, followed by Jamai ca in second place with 11%  and Barbados 9.7%, 
respectively. 
20. Exports to Europe and the United Kingdom  in particular have contracted by almost half in 
2006.  For the North American region,  SVG continues to run a substantial and widening trade deficit:  
Between 2001 and 2006, imports ha ve increased from EC$188.0M to EC$263.0M, while exports have 
decreased from the already low value of EC$4.0M to 2.2M(120:1), respectively.  Exports from SVG 
to other CARICOM states have declined significantl y approximating EC$62.0M in 2006 to reflect a 
trade deficit ratio of 4:1 (imports to exports).  Exports/import ratios from Guyana (21:1), Trinidad and 
Tobago (14:1) and Jamaica (12:1) are significant.   However, SVG trade with the OECS shows a 
positive trade balance, where exports from SVG have  consistently exceeded  imports from the OECS 
during the period. 
21. The export sector  in SVG faces increasingly fierce competition from other regional and 
international exporters.  For bananas the dismantli ng of preferential market access arrangements in 
Europe has led to increasing competition from Latin Am erican banana producers and an erosion of the 
share of SVG/WIBDECO banana exports.  SVG also faces competition for flour, malt beverages and 
poultry feeds from Grenada, Trinidad and Barba dos, Guyana and Jamaica.  Competition for 
packaging materials is mainly from St. Lucia a nd Trinidad and Tobago.  Competition for Dasheen, 
eddoes and plantains comes from Grenada, Dominica and St. Lucia.  The competition for zinc-coated 
roofing comes mainly from Grenada, Trinidad, Antigua and St. Lucia.   
22. Monetary and exchange rate policy  is determined by the Monetary Council of the Eastern 
Caribbean Central Bank which has responsibility for monetary policy for the OECS area since 1976.  
During the period under review the EC dollar continue d to be pegged to the US dollar at a rate of 
EC$2.70/US$1.  This has remained stable for the la st 30 years.  The EC dollar depreciated in real 
effective terms during 2001-2006.  Both narrow m oney and the (M1) and quasi money have been 
expanding rapidly due to strong e xpansion in private demand depos its (for M1) and expansion in 
savings by business and individuals. 
Domestic credit has also been expanding in both  public and private sectors.  Liquidity in the 
commercial banking sector remained at high levels 2005/ 6.  Evidence of this can be seen in the ratio 
of loans and advances to total deposits which stoo d at 72.9% in 2006.  Commercial interest rates 
remained unchanged:  i) Savings deposits (3.0-4.5 %);  ii) Time deposits (2.5-3.8%) and iii) Prime 
lending rates (9.0-11.00%). 
23. In relation to government finances , during the period 2002 to 2006, the overall balance 
declined to a deficit on average of - 3.6% per a nnum; and - 4.5% in 2006 refl ecting higher levels of 
locally financed capital spending.  The cost of servicing the public sector debt continues to grow and has begun to crowd out other areas of spending.  De bt servicing cost in 2006 stood at 24% of the total 
current revenue, compared to 2002, when 16.7% of  the revenue was used to cover debt charges. 
24. Inflation  has been relatively low, averaging 2. 2 percent per annum during the period 2001-
2006.  However, consumer prices rose by 4.8% in 2006, compare to 3.9%  in 2005.  The faster rate of 
growth reflected price increases in the group “food”,  particularly for vegetables, fruits and baby 
formula.  Hikes in the international price for fuel were also a contributing factor.  
25. Outlook :  The impact of the declining growth rates, trade balance combined with the 
response of expansionary fiscal policies has yiel ded unfavourable macroeconomic outcomes in the 
current period compared with a decade ago.  Th e current challenge facing the country is how to WT/TPR/G/190/VCT Trade Policy Review 
Page 12 
 
 
 stimulate production and reinvigorate growth in export to reverse the high import propensity and 
external dependency of the country; thereby rest oring fiscal and debt sustainability in a more 
competitive global environment. 
III. TRADE POLICY AND INSTITUTIONAL FRAMEWORK 
26. During the period under review, the country remained an independent parliamentary 
democracy within the Commonwealth of Nations.  The political system continues to follow the 
Westminster model of parliamentary government.  The executive branch of government comprises the 
Prime Minister and his Cabinet of Ministers, who are responsible for concluding and signing international treaties and agreements, including trad e-related agreements.  The Cabinet is however 
collectively responsible to the House of Assembly for its decisions.  The minority leader and senators 
form the other component of the National Assembly  while the Judiciary is guaranteed constitutional 
independence. St. Vincent and the Grenadines is a full member of the United Nations, the 
Organization of American States, the Interna tional Labor Organizati on, CARICOM, and the 
Organization of Eastern Caribbean States.   
27. On December 7th 2005 the political mandate  of the ruling government was renewed, 
following success at the poll for a second term of offi ce.  This renewed mandate set the stage for the 
continuity of policies and programmes already emba rked upon to strategically transform the economy 
from an inward looking model of import substitut ion to a more outward looking export promotion 
approach.  Despite the lack of coherence betw een the investment strategies and the industrial 
development policy framework, Government has con tinued to strengthen and enhance the regulatory 
environment in conformity with its Medium -Ter m Strategy Paper 2002-2004.  Government is also 
formulating a three (3) year National Export Strategy and a 2020 vision enshrined in a National Economic & Social Development Plan.  These efforts are complementary to the accelerated efforts to 
create an export- led economy. 
(i) Trade policy formulation and implementation  
28. The Ministry of Foreign Affairs, Commerce and  Trade  was merged and this has placed 
responsibilities for the co-ordination and formula tion of Trade and Commerce policies within the 
ambit of a single government entity.  The department of Trade is the division responsible for advising the Government on trade policies and strategies, and trade –related negotiations. 
29. The Ministry of Legal Affairs  is responsible for matters pe rtaining to intellectual property 
rights and the legislative drafting of trade agre ements.  The Commerce and Intellectual Property 
Office (CIPO), under this Ministry, is responsible for granting commercial rights to the ownership of 
intellectual property. 
30. The Ministry of Finance and Planning  has responsibilities for tariff policy, fiscal policy and 
tender procedures.  This ministry also regulat es the on – shore and off-shore banking and insurance 
services sector, in collaboration with the Eastern Caribbean Central Bank. 
31. The Ministry of Agriculture and Fisheries  has responsibilities for the administration of the 
phytosanitary and sanitary measures in agricultu re, livestock and crops, including import and export 
restrictions and inspections, under the Plant Protection Act, No. 15 of 2005. 
32. The Ministry of Health and the Environment  is responsible for matters as it relates to 
general health and food safety standards in the country. Saint Vincent and the Grenadines WT/TPR/G/190/VCT 
 Page 13 
 
 
 33. The St Vincent and the Grenadines Bureau of Standards  is the entry point for the adaptation 
and development of standards, technical regul ations, certifications and conformity assessment 
procedures and metrological services in the country ;  in keeping with the Standards Act No. 70 of 
1992 (amended by Act No. 28 of 2001).  The SVGBS is  entitled to declare and review internationally 
recognized standards, ensures that imports are of th e highest quality and that the health and safety of 
consumers are not compromised. It also has a duty to adequately protect the environment. 
34. The Ministry of Telecommunications, Science, Technology and Industry has responsibility 
for the development of the ICT and oversight for the regulatory framework through the operations of 
the National Telecommunications Regulatory Commission (NTRC) and the Eastern Caribbean 
Telecommunications (ECTEL);  and the implementation of fiscal incentives for the manufacturing 
and trades sub sectors.  The Telecommunications Act No. 1 of 2001, and the Telecommunications (Tariff) Regulations, No. 23 of 2004 are key legisl ations governing the operations of this industry. 
35. The Ministry of Tourism, Youth and Sports formulates policy guidelines and monitor the 
regulatory authorities for industry standard setting within the tourism sector  for the various service 
providers . 
36. Economic policy formulation, including trade policy, begins in the various Government 
Ministries.  These policies are presented as corpor ate plans for which expenditures are approved, 
before they are incorporated in the National A nnual Budget.  Details of these plans are found in 
national policy planning instruments in the respec tive Ministries and in the Medium Term Economic 
Strategy Plan. 
37. Economic policy formulation, including trade polic y formulation is also informed by agreed 
obligations ratified by Heads of Government at CARICOM and OECS Council Meetings.  The 
integration of trade policy into overall economic po licy at national level is  achieved through these 
processes.  Since 2001 St. Vincent and the Grenad ines’ trade policy harmonization has been through 
the following institutional mechanisms: 
38. In addition, to the various statutory bodies a nd institutions that promote and regulate trade 
policy interventions, there are various committees which oversee the trade policy and support network 
framework, in addition to the normal Cabinet and Parliamentary oversight.  These include: 
• A Tripartite Committee on the Economy.(TCE)
 constituting  a social partnership between the 
Government, the Private Sector and Labour – Trade Unions, which is composed of the 
government and civil society and functions as a forum for discussion of the economy.   
• A National Economic and Social  Development Council (NESDEC ),  a broad base statutory 
body which is comprised government officials an d civil society (Private  Sector officials, 
NGO’s and labour unions) charged with over seeing and providing advice on the Government 
poverty initiatives, the national economic and soci al development plan , and other economic 
and social matters.  This group is expected  to act as the prime movers in the economic 
transformation process under a social contract. 
• A Cabinet Committee on the Economy  (PSIP) has been established comprising subject 
Ministers and Technical experts from the main economic growth sectors.  From this 
committee overall direction would be provided to the transformation programme. 
• A National Export Council (NEC)  is also being established comp rising stakeholders within a 
private –public partnership arrange ment with oversight for the coordination and monitoring of 
the soon to be launched National Export  Strategic Plan of the country. WT/TPR/G/190/VCT Trade Policy Review 
Page 14 
 
 
 39. The engagement of civil society through speci fic forums and committees  has intensified over 
the past few years. It is also the case where the role of these bodies is still evolving and the long term 
impact on trade policy development and implementati on is yet to be realised.  This institutional 
framework would allow for greater private sector participation, initiative and innovativeness in the 
national effort to achieve international competitiven ess, especially in those areas that can serve as 
catalysts for the diversification of the productio n and export base and the modernization of the 
economy.  In this respect, WTO matters would be accord ed the highest priority for special attention.  
The Inter-ministerial Committee 
 
40. The Inter-ministerial Council discusses all impor tant trade issues from all negotiating spheres 
and meetings of the CARICOM Council on Trade and Economic Development (COTED) as well as 
implementation issues related to the CARICO M Single Market and Economy (CSME).  The 
composition of the Inter-ministerial Council includes Government Ministries and Statutory Agencies and Private Sector Trade and Commerce related organizations. 
OECS Technical Mission 
 41. The establishment of the OECS Technical Missi on and its permanent presence in Geneva has 
enabled and ensured that St. Vincent and the Gr enadines and the other OECS Member States have 
greater and more visible representation at WTO meetings.  The critical role of this mission cannot be overstated.  Since its inception, GoSVG have obser ved a significant improvement in the dissemination 
of information, networking between capital and Ge neva has been enhanced, enabling the country to 
better table national positions on impor tant matters and to actively enga ge in the negotiations process 
along with other alliance groupings on multilateral issues. 
(ii) Elements of trade and foreign investment developments 
42. During the period under review the GoSVG e ndeavored to reorient the economy from 
production based on import substitution,  to one based on competitive export development.  Attempts 
to focus on providing parity in the incentives offere d for the development of services exports was also 
undertaken. 
43. The regulatory environment for trade and investment was enhanced by undertaking the WTO 
Trade Policy Review in 2001.  This was coupled with a national programme for compliance with 
WTO and CARICOM obligations.  The introduction of important legislations to ensure that the 
international financial services sector jurisdiction w as reformed in keeping with international best 
practices was a major step forward for the sust ainability of the sector.  The establishment of 
regulatory agencies such as the Finance Intellig ence Unit, the Commerce and Intellectual Property 
Office (CIPO), and the National Telecommunications  Regulatory Commission (NTRC) are important 
elements of this effort.  
44. Programmes in youth entrepreneurial developm ent through the Youth Empowerment Service 
(YES) initiatives, the Adult Literacy Crusade as we ll as Island wide delivery of Tech-Voc and ICT 
training at Multi- Purpose Centers (MPCs) and the Na tional Institute of Technology (NIT) have been 
established to address critical human capita l development needs on an ongoing basis. 
45. To stimulate increase in exports, programmes fo r small and medium enterprise development 
have been undertaken through the micro-credit programme at the National Commercial Bank, Saint Vincent and the Grenadines WT/TPR/G/190/VCT 
 Page 15 
 
 
 National Development Foundation and the Centre for Enterprise Development.  The commercial 
banks and credit unions also play an important role in this regard.  
46. To attract Foreign Direct Investment (FDI) th e National Investment Promotions Inc (NIPI) 
was established and operationalised in 2003 as the li nk between the host country St. Vincent and the 
Grenadines and the Investor.  
47. These programmes have been bolstered by an aggressive public sector investment programme 
in development of physical infrastructure including construction of roads and ports as well as water, 
sanitation, electricity and low income homes.  A 2020 vision plan for National Economic and Social Development is in its drafting stages.  
48. Other export incentive programmes include cons umption tax credit for SMEs which export 
and the corporate tax rebates for exporters to th e OECS, the wider CARICOM and to third country 
markets.  
49. Concomitantly, the GoSVG further recognises that  the service delivery network in the trade 
sector continues to be challenged by limited human,  financial and technical resources.  The Ministry 
of Foreign Affairs, Trade and Commerce, The Ministry of Legal Affairs (CIPO) and the Bureau of 
Standards are key institutions within the trade sup port network to be strengthened to take on the 
urgent task of transforming the export sector into a dynamic, diversified and su stainable contributor to 
national development.  The competitiveness constrai nts in the implementation of the national export 
strategy should therefore be accorded the highest priority, as part of a comprehensive strategic 
approach. 
50. Foreign investment regulations have undergone significant changes both in policy direction 
and institutional arrangements.  Prior to 2001, the now defunct Development Corporation (DEVCO) 
performed the role of an industrial development corporation, wielding a mandate to steer economic 
development through foreign direct investments in  industrial estate management, while promoting the 
country as an attractive location. 
51. Following the Financial Action Task Force blacklisting in 2001, the GoSVG embarked on a 
policy of transparency and good governance in or der to establish the standards necessary for the 
sustainability of the sector.  A number of innova tive, regulatory and law reform measures were 
enforced, aimed at separating both the regulatory/en forcement functions from that of the marketing of 
investment promotion.  This move manifested itself in the establishment of three (3) distinct 
institutions mandated to carry out these complementary portfolios.  
52. These institutions were the i)  Financial Intelligence Unit(FIU)  established by Act No. 38 of 
2001 to regulate the international financial sector  by collecting, analyzing and disseminating 
information of suspicious transactions to competent authorities; ii) the International Financial 
Services Authority  (IFSA), established by Act No. 28 of 2003  to supervise, examine and issue licenses 
to offshore banks.  This function is executed in co llaboration with the Eastern Caribbean Central Bank 
which serves to provide technical support and acts in  an advisory capacity in the supervision and 
licensing of offshore banks;  and iii) the National Investment Promotions Inc.  (NIPI) established by 
decree in October of 2003  as the central institutional pillar in the state administration to promote and 
attract direct private foreign investment to St. Vin cent and the Grenadines, particularly in the areas of 
hotels and tourism, international financial servi ces, information technology and related services and 
physical infrastructure.  The portfolio of this stat utory body falls under the mandate of the Office of 
the Prime Minister.  WT/TPR/G/190/VCT Trade Policy Review 
Page 16 
 
 
 53. Among the legislative reforms undertaken by St . Vincent and the Grenadines to strengthen 
the regulatory framework for good clean business  were the following enactment of the below-
mentioned laws: 
i) The Development Corporation (DEVCO) was dissolved by Act, No. 24 of 2003 . 
 
ii) The Confidential Relationship Preservation (Int ernational Finance) Act No. 17 of 1996  
was repealed by section 9 of the Exchange of Information Act No. 29 of 2002 . 
 
iii) The International Trust Acts, No. 20 of 1996 was passed to provide for the registration 
and regulation of the International Trust sector in St. Vincent and the Grenadines. 
(Regulations No. 30 of 2002)  
 
iv) The St. Vincent and the Grenadines Trust Act   was repealed by Section 11 of the 
St. Vincent and the Grenadines Offshore Finance Authority Act, No. 16 of 1996 (later 
renamed the St. Vincent and the Grenadines International Financial Services Authority 
Act, No. 28 of 2003 ).  A reconstituted body of the St. Vincent and the Grenadines Trust 
Authority Limited replaced it. 
 
v) The Proceeds of Crime Act, No. 12 of 1997  was repealed with savings by the Proceeds of 
Crime and Money Laundering (Prevention)Act, No. 39 of 2001 (as amended in 2002 and 
2006). 
54. During the period under review, the investment climate was further liberalized with the 
introduction of:  a new insurance act to capture the needs of the captive market;  a new mutual funds 
act that will recognize foreign fund managers/adm inistrators and allow for a seamless process of 
licensing of funds;  a new International Business Company (IBCs) act which served to strengthen hallmark ‘hybrid company’ as well as allow IBCs to own land in St . Vincent and the Grenadines.  
Further steps have been taken to liberalise its fore ign exchange regime by re moving the previous limit 
of EC$250,000.00 on foreign exchange transactions .  There are presently no exchange controls 
restrictions in place.  These were removed through revisions to the Interna tional Banks Act No. 40 of 
2004 and with the establishment of the Financial In telligence Unit (FIU) in May 2002, as called for in 
the terms of the Financial Intelligence Unit Act #38 of  2001.  Therefore, access to foreign exchange is 
not restricted, neither are taxes placed on dividends.  
(iii) Trade policy negotiations 
55. St. Vincent and the Grenadines fully recognises the importance of the WTO trade policy and 
negotiation process, however, the country is severel y constrained by the limited human, technical and 
financial resources.  While concrete steps have been taken by the UWI, EU, USAID to train and 
expose a cadre of local trade officers in the various negotiating theatres, it is premature to evaluate the 
impact of these measures taken consistently over the last four years.  
56. In the interest of regional harmonization, GOSVG trade arrangements are conducted within 
the framework of the Caribbean Common Market (C ARICOM).  In terms of its trade agreements 
GoSVG through its membership in the Organization of Eastern Caribbean States (OECS), Caribbean 
Common Market (CARICOM) and the ACP group of c ountries participates in a number of bilateral 
and multilateral agreements.  More specifically, St. Vincent and the Grenadines currently participates 
in four (4) preferential trade agreements one w ith each of its principal trading partners:   Saint Vincent and the Grenadines WT/TPR/G/190/VCT 
 Page 17 
 
 
 a. CARIBCAN with Canada  
b. The Caribbean Basin Trade Partnership Act (CBTPA) which replaced the CBI 
agreement with the United States of America 
c. The Cotonou Agreement with EU (U.K.)  
d. CARICOM 
57. Given that the Cotonou agreement allows fo r the negotiation and establishment of WTO-
compatible trade arrangements, Saint Vincent and th e Grenadines is currently engaged in negotiating 
an Economic Partnership Agreemen t (EPA) with the EU in conjunc tion with the other CARIFORUM 
Member States.  Generally, most  of the country’s trade nego tiations are facilitated through 
CARICOM (COTED) and through the Caribbean Regional Negotiating Machinery.  
IV. REGIONAL INTEGRATION:  THE ESTABLISHMENT OF THE CARICOM 
 SINGLE MARKET AND ECONOMY 
58. On 11th March, 2005 by Act No. 5 of 2005, St. Vincent and the Grenadines enacted the 
Revised Treaty of Chaguaramas into domestic law,  establishing the ground work for the creation of 
the CSME, signifying Saint Lucia’s firm commitm ent to regional integration and the Caribbean 
Community.  As early as 1999, Saint Lucia had impl emented Phase 4 of the Common External Tariff 
(CET). 
59. To give effect to the provisions of the treaty,  St. Vincent and the Grenadines also enacted the 
Caribbean Movement of Factors Bill No. 21 of 2006, The Caribbean Regional Organization of 
Standards and Quality Bill No. 20 of 2005, D ouble Taxation Agreement S.I. 195 of 2000, among 
others.  
60. As at July 1, 2006, The CARICOM Single Market became operational with the Common 
Economy expected to be in place during 2008.  However to give full effect to the treaty the 
Harmonization of certain laws and the legislati on of regulations, such as; Competition Policy, 
Customs Regulations, Consumer Protection, Banking  and Securities and Sanitary and Phytosanitary 
Measures, are still to be enacted. 
61. Transition however appears to be seamless, desp ite the absence of administrative structures 
and procedures in some important areas, particul arly accreditation and the free movement of natural 
persons, and competition policy. 
Organisation of Eastern Caribbean States(OECS) Economic Union 
62. With the signing of the Treaty of Basseterre in  1968, OECS member states have been able to 
collectively pool resources and work in the interest  of citizens on several fronts, evidenced by a 
common judiciary, a regional central bank, a re gional civil aviation authority, a pharmaceutical 
procurement body, an electrical and a telecommunications authority. 
63. The survival of small disjointed, vulnerable island states in the global market is very 
challenging in the absence of economies of scale, inadequate marine and ai r transport and renewable 
energy policies and programmes.  If the member states of the OECS are to maintain a competitive 
edge in those disciplines where syne rgy already exist, it is essential that steps be taken to strengthen 
existing alliances by deepening the already existing relationship, with the other member states of 
Organization of Eastern Caribbean States, (OECS). WT/TPR/G/190/VCT Trade Policy Review 
Page 18 
 
 
 64. After thirty-nine years, plans are in an advance stage to forge a closer relationship through an 
Economic Union between our member states.  By the last quarter of 2007, a draft treaty will be put 
before the citizens of the sub-region for consu ltation.  Hopefully, the process will not be unduly 
protracted and the Union will come into being before our next Trade Policy Review. 
V. BILATERAL/HEMISPHERIC AND PREF ERENTIAL TRADE ARRANGEMENTS 
65. St. Vincent and the Grenadines is a member  of the Caribbean Community and Common 
Market and has to date concluded fi ve (5) bilateral Trade agreements:  
CARICOM-Costa Rica:  A Free Trade Agreement was signed  on March 2004.The agreement 
provides for free trade or preferential access for a wide range of products.  Some sensitive products 
have been excluded.  A special list of products will be granted differentiated market access between 
Costa Rica and each of the CARICOM More Devel oped Countries (MDCs).  In keeping with the 
1995 decision of the CARICOM Heads of Government (16th Conference), the GoSVG being a 
CARICOM LDC, does not have to reciprocate.  CARICOM-Dominican Republic:  The CARICOM-Dominican Republic Agreement provisionally 
entered into force in December 2001.  The Ag reement between CARICOM and the Dominican 
Republic is based on reciprocity with the five CA RICOM MDCs and non-reciprocity with the LDCs 
until 2005, renewable every five (5) years.  It provides for the asymmetrical application of the reciprocity principle as CARICOM LDCs are not required to reciprocate treatment.  While the Free Trade agreement focuses on trade in goods, provisions have also been made for investment and trades 
in services to be negotiated. 
 CARICOM-Cuba :  The 7th Meeting of the CARICOM-C uba Joint Commission held on March 3-4, 
2005, approved the consolidated text of Annexes I-V of the CARICOM-Cuba Agreement, reflecting 
amendments set out in the protocol implementing the agreement and thereby giving them legal
 effect 
as the list of products in Article V of the Agreemen t.  The Revised Product Lists dated August 2001 
therefore replace Annexes I-V of the Agreement signed in July 2000.  St. Vincent and the Grenadines 
is yet to complete internal procedures to give effect to this agreement.  
 CARICOM–Colombia :  A Trade, Economic and Technical cooperation agreement signed July 24
th 
1994.  The Colombia agreement provides reciproc al duty free treatment for select products.  As 
currently structured, these agreements are not compre hensive in their coverage of services trade.  
Additionally, exporters complain of excessive product registration requirements which prohibit 
market penetration. 
 
CARICOM-Venezuela:  A one way partial scope agreement in favour of CARICOM;  signed 
October 13th 1992.  In 1998, Venezuela requested CARICO M to provide reciprocal preferential access 
similar to that granted to Columbia.  While the tw o-sides continue to discuss problems encountered by 
CARICOM exporters, consultation continues be tween the parties on possible products from 
Venezuela for which it would be prepared to grant reciprocal preferential access. 
 
CARICOM-Canada (CARIBCAN):  A multilateral preferential scheme between Canada and the 
Commonwealth Caribbean.  Beginning June 15, 198 6, the Commonwealth Caribbean enjoyed duty 
free access to the Canadian market for most  commodities originating in the Commonwealth 
Caribbean.  This agreement was subject to WTO wa iver, expiring in December 2006.  The Canadian 
Government has secured an extension which will now  expire in 2011.  Discussions towards the Saint Vincent and the Grenadines WT/TPR/G/190/VCT 
 Page 19 
 
 
 negotiation of a Free Trade Agreement between Ca nada and CARICOM have been ongoing since 
2001.  C
OTONOU AGREEMENT :  St. Vincent and the Grenadines is a beneficiary to the commitments of the 
Lomé convention and its subsequent updates and modi fications.  Lomé expired in February 2000 but 
was replaced with the Cotonou Agreement (CA) whic h was ratified by GoSVG in January 2000.  The 
CA has a life span of twenty years and contains a clause for revision every 5 years.  The trade 
preferences under Cotonou are however continge nt on a WTO waiver scheduled to expire 
December 31, 2007.  The Cotonou Agreement therefor e provides for the entry into force of Economic 
Partnership Agreements with the  European Communities by January 1, 2008. Accordingly, 
St. Vincent and the Grenadines is currently nego tiating the EPA with the EC as part of the 
CARIFORUM region. 
VI. MULTILATERAL FRAMEWORK – THE WTO AND THE URUGUAY ROUND 
(i) Implementation of the Uruguay Round Agreements 
66. St. Vincent and the Grenadines has no specific Uruguay Round legislation, but many of the 
WTO Agreements have been incorporated into domes tic law in a number of Ac ts of Parliament and 
various Regulations.  Since 2001, the trade policy of St. Vincent and the Grenadines has undergone substantial changes, in response to regional a nd international developments, and as a result has 
become more open and transparent and WTO compliant. 
67. St. Vincent and the Grenadines has been active in the WTO in  the context of the Doha 
Development Round, (DDA).  In the negotiations, the GoSVG has strongly advanced the argument 
that special and differential is integral to the ne gotiating process.  It has also joined with other 
members of the CARICOM in advocating non-recipr ocity in NAMA and for flexibilities for small and 
vulnerable economies in the negotiation process.  TH E GoSVG has also highlighted the need for the 
negotiations to take account of the consequences of preference erosion for developing and particularly 
Small Vulnerable Economies.  St. Vincent and the Grenadines has supported a request by a number of 
developing members of the WTO for an extension of time for providing export subsidies until 2015, 
with the scheduling of the ph asing out to commence in 2010. 
68. St. Vincent and the Grenadines regards these subs idies as important to help it fuller integrate 
into the multilateral system, given what it views as w eaknesses associated with  its status as a "small 
and vulnerable economy".  St. Vincent and the Gr enadines has also attempted to advance the DDA 
agenda generally, in the context of its UN membership.   
69. In the ACP-EU joint ministerial sessions, St. Vincent and the Grenadines has lent support to 
regional and wider ACP efforts to encourage a successful conclusion to the Doha Round. 
Implementation of the Uruguay Round Agreement 
(a) Trade in Goods 
70. Prior to 2001, the GoSVG trade policy placed much effort on trade in goods as part of an 
import substitution strategy and policy prescrip tion of the World Bank for promoting economic 
development.  The strategy was implemented th rough a system of tariffs and non – tariff barriers 
designed to enable the manufacturing and agricultura l sectors to become internationally competitive. WT/TPR/G/190/VCT Trade Policy Review 
Page 20 
 
 
 71. SVG has applied the Common External Tariff ( CET) since February, 1991, and implemented 
phase IV of the CET on 1st January 1998.  While  tariff levels and changes are agreed at the 
CARICOM level, the final authority to tariff change s rests with Parliament.  Derogations to agreed 
rates are approved by the Council on Trade a nd Economic Development (COTED) of CARICOM. 
72. St. Vincent’s schedule (tariff), as applied  in  2006, is based on the Harmonised Commodity 
Description and Coding  System and comprised 6, 274 Tariff lines at the ten–digit level.  The tariff 
has nine (9) tiers, with rates 0 – 40%. Almost one – third of tariff lines on agricultural products are 
subject to a rate of 40%;  and the maximum applied rate on non- agricultural goods is 20%.  As a rule 
domestic applied rates are in most cases lower than  the CET with several products zero (0) listed.  
73. In terms of tariff binding, customs duties for all tariff lines were bound during the Uruguay 
Round with the exception of tariffs on im ports of industrial products(HS 25-97 ) at a uniform rate of 
50%, with over 200 exceptions at the HS four, six, seven or eight digit levels;  Non – Agricultural 
products  included in list C, which are exceptions to  the CET, were bound at higher rates, e.g., 
automobiles  were bound at rates between 100% and 140%, according to the category.  Agricultural 
products  were bound at a ceiling level of 100% with so me exceptions above the rate, which ranges 
between 107% and 250%.  The column “other duties a nd charges” in the schedule was left blank, and 
this is equivalent to having entered “zero”. No previous tariff commitments were made under the 
GATT. 
74. During the period under consideration, much e fforts were directed towards upgrading custom 
procedures documentation and registration and excha nge controls measures: documentations are no 
longer processed manually, but electronically, using the ASYCUDA World system.  This will allow 
for electronic filing of entries, a reform that will facilitate trade.  ASYCUDA not only facilitates 
electronic filing but also computes the duties and taxes payable.  There were no quota restriction on 
imports and likewise there are no variable levies imposed on imports. 
75. The 2006 budget Address acknowledged that trade negotiations now, underway will force the 
GoSVG to rationalise the system of granting duty -free concessions in order to maximize on the value 
of the revenue loss from these waivers. Government intends to lower the level of concessions granted 
to 50% of the import duties and consumption tax payable to specific categories. 
76. The import –licensing regime of St. Vincen t and the Grenadines are guided by Customs 
procedures and regulations found in the Customs (C ontrol and Management) Act No. 14 of 1999, and 
the Customs (Control and Management) Amendment Ac t of 2007.  The GoSVG intends to review its 
import licensing regime in an attempt to rationali se the Import and Export (Control) Regulations # 10 
of 1992, as it relates to minimising the List.  Cha nges would also be introduced to the licensing of 
imports from other CARICOM countries. 
(b) Other Levies and Charges  
77. This category includes Consumption tax, Excise tax, Environmental tax and Stamp duty.  In 
its 2006 Budget Address, the GoSVG sought to abolish/ repeal seven (7) taxes with the introduction of 
the Value – Added Tax Act No. 25 of  2006 which was initially scheduled to be implemented in 
January 2007.(later introduced on 1st May 2007).  These taxes were the consumption duty (import), 
consumption duty (local), international telecomm unications surcharge, domestic telecommunications 
surcharge, hotel tax, stamp duty (receipts), and entertainment tax. 
78. The VAT is assessed at 15% on taxable supplies an d taxable imports;  a reduced rate of 10% 
is imposed on hotel and holiday accommodation and fe w exemptions in the Zero-rated and exempted Saint Vincent and the Grenadines WT/TPR/G/190/VCT 
 Page 21 
 
 
 list.  This tax system, it is envisaged, will simplify the administration and collection of taxes in SVG.  
The Value Added Tax Act No. 25 of 2006 determine how the tax will be imposed.  A VAT Unit has 
been established by the Inland Revenue Department  to implement the new tax system.  The Inland 
Revenue Department will be res ponsible for the administration of VAT and the collection of all 
domestic taxes while the Customs a nd Excise Department will be re sponsible for the collection of 
taxes on international trade. 
79. A new excise tax on 15 types of goods  also took effect on the 1st May 2007, in addition to the 
VAT.  These taxes apply to various types of alcohol, tobacco, fuels, vehicles and parts, and incandescent bulbs. 
80. The Trade (Bottle Deposit Levy) Act  # 13 of 1991, (amended by Act # 3 of 1993 and Act # 4 
of 1993,Act # 3 of 1998 and # 8 of 2002) provides for a refundable levy on beer, malt, stout, ale, 
aerated beverages and juices in non- returnable bottl es or cans at a rate of EC$0.50 cents per bottle or 
can.  There has been an excise equalisation tax on CARICOM rum at specific rates, but it was 
abolished as of 1
st May 2007. 
81. There was no change to vehicle surtax, whic h is an environmental tax payable on motor 
vehicles over four (4) years old.  
(c) Technical Regulations and Standards 
82. The GoSVG is aware that in order to promot e an aggressive national export strategy and 
industrial development policy for the economy, the development and promoti on of internationally 
recognized standards and best practices are imperati ve.  During the period under review, the parent 
Ministry of the SVGBS became the Ministry of Telecommunications, Science and Industry.  The 
constitution of the National Standards Council (NSC) a ppointed by cabinet to administrate the general 
affairs of the Bureau was reviewed to allow fo r appointments from the public and private sector.  
83. There are no certification bodies in St. Vin cent and the Grenadines but the SVGBS is 
authorized to certify products and services by prov iding certificates for conformity with labeling 
standards (these include; labeling of domestic elect rical appliances, pre-packaged foods/goods and 
brewery products.  The SVGBS may also grant license to use the SVG Standard Mark where there is a 
domestic standard for the product.  The Standard Mark is the property of the Bureau. 
84. During the period under review, the SVGBS has developed forty –one (41) SVG National 
Standards, of which six (6) were compulsory tec hnical regulations, labelling five (5) and specification 
for tyres (1).  Since 2001 twelve (12) standard s covering areas of construction materials and food 
products have been recommended by the Council to be declared as Technical Regulations. 
(d) Sanitary and Phytosanitary Measures 
85. During the period under review, a bill to supe rsede the Plant Protection Bill of 1988 was 
introduced in 2004.  The Plant Protection Act No. 15 of 2005 was notified to the WTO Committee on Sanitary and Phytosanitary Measures (SPS) as an Act designed to prevent the introduction and to 
control the spread of plant pest, to protect plant r esources, facilitate trade in plants and plant products 
and to regulate matters.  To this end, there ha ve been some administrative changes for the 
establishment and implementation of Sanitary and Phytosanitary measures. 
86. Under present arrangement, the Ministry and Ag riculture, Forestry and Fisheries addresses 
issues of phytosanitary and sanitary measures in ag riculture, livestock and crops.  The Ministry of WT/TPR/G/190/VCT Trade Policy Review 
Page 22 
 
 
 Health and the Environment has responsibility for san itary measures as it relates to health and food 
safety.  In this new arrangement, and in keep ing with the WTO’s International Commission on 
Phytosanitary and Sanitary Measures, the focal  point for St. Vincent and the Grenadines on 
Phytosanitary measures is the contact person or designated head of the newly established National 
Plant Protection Organisation (NPPO).  The Plant Pr otection Act of 2005 delegates the Ministry with 
responsibility for Agriculture as the designate d National Plant Protection Organisation.  
87. Further to this, the Ministry of Agriculture has prepared a draft Bill to be read in Parliament 
in 2007 on matters pertaining to ‘Agriculture Health  and Food Safety’.  Another Bill that is in the 
drafting stage pertains to “SVG Animal (Nati onal and International) Movement and Diseases” 
relating to anti -mortem and post - mortem inspections.  
88. St. Vincent and the Grenadines in 2007 have not ed with grave concern the proliferation of 
standards developed by private interest groups w ithout reference to SPS Agreements or consultation 
with national authorities. 
(e) Trade in services 
89. Under the Uruguay Round of trade negotiations , St. Vincent and the Grenadines committed 
five (5) areas of service activity:  tourism and tourism –related services, recreational and sporting 
services, financial (re-insurance), and marine transpor t services for liberalisation.  St. Vincent and the 
Grenadines did not participate in the continued WTO negotiations on telecommunications nor in the 
continued negotiation on financial services.  
(f) Trade – related intellectual property rights 
90. Legislation governing intellectual property rights existed since 1998.  The Commerce 
and Intellectual Property Office (CIPO) became op erational in March 2004, as a statutory agency 
formally established in December, 2003, under Act No . 43 of 2003.  CIPO functions as regulator of 
trade names, unincorporated associations, and do mestic and external companies.  Domestic 
legislations, regarding copyright, trademarks, geogr aphical indications, industrial designs, undisclosed 
information, and layout designs ha ve been updated between 2003 and 2005. 
91. St. Vincent and the Grenadines is a member of  the World Intellectual Property Organization 
(WIPO) and a party to a number of intellectual property conventions.  In August 2002 SVG signed on 
to the patent Cooperation Treaty (1970) bring the to tal membership in international instrument on IPR 
to four (4).  
92. The Legal Affairs Ministry and the Commerce and Property Rights Office continue to 
experience institutional capacity challenges in m eeting the legislative needs of the country. 
(ii) Technical assistance 
93. St Vincent and the Grenadines proposes that an y initiative towards the development of Aid 
for Trade within the context of multilateral negotiati ons must assist in building an environment where 
Small Island Developing States can improve their co mpetitive position through enhanced supply- side 
capacity and trade-related infrastructure.  
94. Since 2001 the sectors that traditionally contri buted to economic growth have declined 
considerably.  The Agricultural sector in St. Vi ncent and the Grenadines has been plagued by a 
number of setbacks including the recent discovery  of the Moko disease (Bacterial wilt of banana Saint Vincent and the Grenadines WT/TPR/G/190/VCT 
 Page 23 
 
 
 caused by Pseudomonas solanacearum) which would further decimate the struggling Banana 
industry.  
95. Manufacturing continues to be plagued by the hi gh cost of electricity and overhead charges.  
The price for electricity is non competitive as it soars at US$0.38 cents per KWh. compared to 
US$0.6 cents in Trinidad and Tobago.  This pri ce is amongst the highest in the region and does not 
favor export – oriented enterprise.  Identifying and promoting affordable renewable sources of energy 
is critical to the survival of small businesses.  Anothe r major challenge is the lack of readily available 
marine transport within the sub –region that w ill facilitate the affordable movement of goods and 
people. 
96. The development of a regional maritime infrast ructure is deemed critical to intra regional 
trade.  Developing the logistical framework c ould be supported under an aid for trade program.  
Simultaneously environmental (tourism) and renewa ble energy supply issues would greatly enhance 
competitiveness of the small productive sector which has emerged as a replacement to our declining 
agro sector.   
97. Other constraints within the domestic operating environment, has to do with the high cost of 
obtaining certification, such as ISO or HACCP standa rds for small enterprises.  There is also limited 
access to export credit guarantee schemes and low inter est finances for production activities.  Venture 
capital for businesses incubation would also help en trepreneurs diversify their production base and re-
engineer their operations.  Seed Capital Funds that invest in innovative smaller companies with strong 
growth and employment potential would also go a long way to addressing poverty alleviation while 
creating employment particularly in rural communities. 
98. Lastly, there is a need for a permanent OECS technical mission in Geneva to adequately 
represent the interest of the sub region. 
(iii) Aid for trade 
99. Trade liberalisation and the decline of the Agri cultural sectors have reversed the gains that 
were achieved in the decades l eading up to the period under review.  Export of goods has rapidly 
declined and a heavy dependency has been placed on trade in services as a main contributor to GDP.  
100. The Government of St. Vincent and the Gren adines recognizes that Aid for Trade should 
create the enabling conditions for member states th rough the promotion of enterprise development and 
innovation.  This should take into account the deve lopmental priorities through technical assistance 
while distinctly focusing on programs that address w ealth creation, distribution and in country value 
adding.  It is therefore opined that this form of assistance should be geared at reducing the impact or 
multilateral trade liberalisation while maximizing the benefits of production synergies through: 
• Capacity-Building in Export Strategy Design and Management   
• Capacity-Building in Trade Informa tion Management and Market Analysis   
• Capacity-Building in Quality Management  and Standards for Trade and Services 
Development. 
101. Trade related assistance should therefore be unc onditional, demand driven, not related to any 
previous trade negotiations and incremental to exis ting programs.  In this regard, such arrangements 
would mean non- reciprocity with developed coun tries. The Government of St. Vincent and the 
Grenadines remains committed to the process of  liberalization.  The limited progress Small WT/TPR/G/190/VCT Trade Policy Review 
Page 24 
 
 
 Developing Island States have made in realizing true benefits from  trade liberalization have been 
stymied by the unequal relationshi ps with developed countries. 
VII. CONCLUSION 
102. The continued erosion of trade preferences has not helped the already vulnerable small 
economies of the region.  The member states ar e facing renewed challenges to find solutions to 
improve economies of scale.  However, the tide of globalisation continues to erode the progress that has been made.  
103. Consequently, the socio-economic dislocati on caused by the decre ase in competitiveness 
requires creative response measures if Small and Vu lnerable Economies are to survive in the global 
environment.  Within the limits of their depletin g resources these countries will continue to strive to 
be compliant.   
104. In light of these realities, St. Vincent and the Grenadines fully endorses the clarion call for aid 
for trade. 
__________