WORLD TRADE  
ORGANIZATION  WT/TPR/G/190/Rev.1 
21 April 2008  
 (08-1885) 
Trade Policy Review Body Original:  English 
  
 
   
 
TRADE POLICY REVIEW 
 
Report by 
 
OECS-WTO MEMBERS 
 
Revision 
 
   
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 the OECS-WTO Members. 
 
 
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 the OECS-WTO Members. OECS-WTO Members WT/TPR/G/190/Rev.1 
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CONTENTS 
  Page 
 
  1. Introduction 5 
 2. Main Economic Developments 5 
 3. Trade Policy and Institutional Framework 10  4. Regional Integration 12 
5. Bilateral/Hemispheric and Pr eferential Trade Agreements 13 
 6. The World Trade Organization (WTO) 15  7. Conclusion 20 
 
  OECS-WTO Members WT/TPR/G/190/Rev.1 
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 1. Introduction 
1. The Organisation of Eastern Caribbean States (OECS) was established in June 1981 with the 
signing of the Treaty of Basseterre.  The OECS  comprises nine member states including six 
independent states and three non-independent territori es.  The six independent members of the OECS, 
Antigua and Barbuda, Commonwealth of Dominica, Grenada, St Kitts and Nevis, St Lucia and 
St Vincent and the Grenadines are also members of the WTO.  Four of the OECS member states are 
founding members of the WTO.  St. Kitts & Nevis and Grenada acceded in 1996. 
2. The OECS members of the WTO are extremely small resource constrained economies with a 
total population of 550,000 and a combined GDP of US$3.98 billion in 2005 and a share in world 
merchandise trade of 0.001% for 2005.  The OECS experienced modest growth averaging 2.5% for 
2001 – 2005.  The effects of Sept ember 11 2001 and the declining output in the agricultural sector 
curbed growth in the early 2000 ’s.  Increased activity in tourism and construction and increased 
inflows of foreign investment ahead of the region’s  hosting of the Cricket World Cup in 2007 resulted 
in an increase in GDP growth which is estimated at 7.1% in 2006.  The average GDP per capita for 
the grouping was estimated at US$6,500 in 2005. 
3. Trade policy is seen as a tool for bringing about economic and social development.  The 
region seeks to foster economic growth through trade but is mindful that there are potentially negative 
social and economic effects of trad e liberalisation.  The region’s e ngagement in trade negotiations has 
intensified with the OECS increasing its particip ation in the WTO Doha round and broadening its 
mandate to include the Economic Pa rtnership Agreements with the EU , and several bilaterals as part 
of CARICOM.  In the period under review the OECS  has deepened its regional integration efforts, 
joining the CARICOM Single Market in June 2006 and signing a declaration of intent towards the 
establishment of the OECS Economic Union. 
4. This is the second trade policy review for the OECS, the first one having been undertaken in 
June 2001.  The OECS member states view the tr ade policy review exercise as an opportunity to 
undertake ongoing inventory of its trade policies and practices.  It also presents a forum for the OECS 
member states to articulate their positions in the context of the Doha Round and to also make a 
statement on the impact of the multilateral trade syst em and rules on the trade policies and actions of 
their trading partners and the resulting implications for their economies. 
2. Main Economic Developments 
Macro-economic performance 
5. In the wake of the events of September 11 2001, the OECS experienced severe downturn in 
economic performance, reporting nearly flat GDP grow th in 2001 - 2002.  The effects of this event 
exacerbated the decline in output precipitated by the uncertainties created for traditional commodities 
by the WTO rulings against the continuation of th e preferential arrangement for bananas from which 
four of the OECS members benefited.  Recovery h as been fuelled mainly by tourism and construction 
in the public and private sectors.  An increase in banana production and increased activity in the 
manufacturing sector have also contributed to expans ion of output.  Real GDP growth for 2006 stood 
at 7.1%, up from 5.8% in 2005 – the strongest growth figures for the OECS in 15 years.  However, the debt burden also increased during the same period and the OECS are ranked among the most highly indebted in the world as public sector debt h as climbed to above 100% of GDP since 2001. 
6. Growth in tourism and construction activity was driven by the preparations for the Cricket 
World Cup which was held during March to April 2007.  Antigua & Barbuda, Grenada, St. Kitts & WT/TPR/G/190/Rev.1 Trade Policy Review 
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 Nevis, St. Lucia and St Vincent and the Grenadin es were host venues for the event.  The post-Ivan 
recovery effort in Grenada also influenced outpu t.  The Grenadian authorities estimated that the 
construction sector grew by 91% in 2005 resulting in  a 12.9% increase in GDP after Ivan.  Insurance 
claims in the aftermath of the hurricane could also have buoyed up national income figures. 
7. The apparently favourable performance of the OECS must however, be assessed in context. 
Despite relatively high per capita incomes and GDP gr owth figures, unemployment is high (estimated 
between 5% –20%) and poverty levels  range from 12% –38%.  The very  high levels of vulnerability 
of these countries to exogenous factors, as demonstrated by various vulnerability indices must be taken into consideration.  The OECS countries ar e highly vulnerable to natural disasters, ranking 
among the most vulnerable in the world.  Over the last three years, no less than three hurricanes have 
severely affected the region.  Over a 10 month pe riod, Grenada suffered damage in the region of 
EC$2.5 billion from the passage of Hurricanes Ivan and Lily in 2004 and 2005 respectively.  
Hurricane Ivan inflicted damage amounting to over 2 00% of GDP including the complete destruction 
of the major traditional nutmeg industry.  More re cently, in August 2007, the passage of Hurricane 
Dean caused damage to the banana industry in St. Lucia and Dominica.  The effect of changes in the 
global economy also impact on the OECS, especially with regards to its competitiveness and share in 
world trade, as reflected in the volatility of earni ngs.  The openness of the economies as demonstrated 
by the ratio of trade to GDP, underscored by a high dependence on imports and tourism also 
exacerbates the region’s vulnerability to changes in the global economy. 
8. Agriculture’s contribution to GDP has continued to decline as a result of declining output and 
the strong performance of the services sector.  The re form of the EU banana regime over the last 
15 years has given rise to unfavourable market cond itions which have resulted in decreased earnings 
and reduced production brought about by a drastic  reduction in the number of producers – from 
24,000 banana producers in 1993 to 5,000 in 2004.  In Dominica, the attendant fallout from the contraction of the sector resulted in negative GDP grow th over a three year period.  More recently, the 
sugar industry in St. Kitts and Nevis was closed  on 30 July 2005 resulting in the release of over 
1,000 workers who represented 12% of the workforce at that time.  Poverty Assessment studies show 
that there is still a high incidence of poverty in these countries particularly in traditional agricultural 
areas as a result of loss of income from declining prices and production. 
9. Inflation rates remained low during the period u nder review, largely reflecting the situation in 
major trading partners as well as the constraining m onetary policy arrangement inherent in the quasi-
currency board operations of the ECCB.  However, there was some upward movement in the CPI for 
the ECCU, which rose steadily during the period under review, peaking at 4.6% in 2005 due to increases in international oil prices and decreasi ng to 1.4% in 2006 as the effect subsided. 
10. Unemployment figures are not available for all OECS-WTO member states but have been 
estimated to be at levels ranging from 5-20% with a higher incidence in agricultural areas.  Grenada 
reported unemployment figures of 18.5% in 2005, down from an estimated 40% in the wake of 
Hurricane Ivan.  The closure of the sugar industry in  St. Kitts and Nevis in 2005 resulted in the loss of 
1,000 jobs, or 12% of the labour force.  St. Lucia reported unemployment figures of 19.7% in 2005.  The construction boom of the past two years appears to have resulted in some tightening of the labour 
market in some countries.  However, without co mplete data it is difficult to assess whether the 
persons who have exited from the agricultural sector ha ve been absorbed into construction.  Poverty 
assessment reports have shown that pockets of povert y continue to exist or have even increased in 
rural areas which have traditionall y been engaged in agriculture. OECS-WTO Members WT/TPR/G/190/Rev.1 
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 Fiscal Performance  
11. As small countries with limited resources and w ith the monetary arrangements of the ECCU, 
fiscal policy instruments are the simplest and least burdensome policy tools available to the OECS to 
effect changes in economic activity.  Fiscal policy h as largely been geared towards the generation of 
revenue to finance public expenditu re, although there has been some use of it to encourage economic 
activity.  While each country sets out its fiscal po licy individually there has been discussion of the 
harmonisation of fiscal policy as the OECS moves towards Economic Union. 
12. OECS-WTO members have been heavily re liant on revenues from trade taxes to fund 
government expenditure.  In 2006, trade tax reve nue stood at 12.8% of GDP and accounted for just 
over half of tax revenue.  The increasing pressure  to reduce tariffs in multilateral and bilateral 
negotiations has presented the OECS with a major po licy challenge as the fiscal deficit continues to 
expand.  In the Doha negotiations the OECS as  part of the SVE group, is therefore seeking 
flexibilities in market access modalities that will be  sensitive to its dependence on trade tax revenue. 
13. The policy response to the deteriorating fiscal s ituation in the OECS has been to develop a 
programme of tax reform based on the recommendati ons of Report of Tax Reform and Administration 
Commission released in 2003, for the reform of th e tax structure and the strengthening of the tax 
administration system in the currency union.  Chang es have been made in Antigua and Barbuda with 
the reintroduction of income tax in 2006 and the introduction of a Sales Tax in 2007.  Dominica and St. Vincent and the Grenadines introduced a value a dded tax in 2006 and 2007 respectively.  Grenada 
and St. Lucia intend to introduce VAT within the next two years.  There are also ongoing efforts to 
reform tax administration to improve collection. 
14. One of the investment promotion strategies used by the OECS is the provision of tax 
concessions.  Admittedly, this has resulted in the fo regoing of tax revenue;  however, this has been a 
significant policy instrument for attracting FDI to the region and has resulted in employment generation and growth.  Reform of th ese regimes is anticipated in the short to medium term within the 
CSME through the development and implem entation of a regional investment code. 
Monetary Policy  
15. The Eastern Caribbean Central Bank (ECCB) is the monetary authority for the Eastern 
Caribbean Currency Union (ECCU) which compri ses eight island economies including Anguilla, 
Antigua and Barbuda, the Commonwealth of Dominica,  Grenada, Montserrat, St Kitts and Nevis, 
St Lucia, and St Vincent and the Grenadines.  Moneta ry and exchange rate polic y is determined by the 
Monetary Council of the ECCB which comprises the fi nance ministers of each member of the ECCU.  
The mission of the ECCB is to maintain the stability  of the EC dollar and the integrity of the banking 
system in order to facilitate the balanced growth and development of member states. 
16. The ECCB has pursued a strong dollar policy in an  effort to create a stable and predictable 
environment in the ECCU.  A fixed exchange rate regime has been maintained since 1976 which pegs 
the Eastern Caribbean dollar to the U.S. dollar at  the rate of EC$2.71/US$1.  During the period under 
review, however, the EC dollar depreciated in real  effective terms as the U.S. dollar, depreciated 
against other major currencies.  Foreign excha nge reserves stood at EC$1.9 billion at the end of 
December 2006 resulting in a backing ratio of 99.2%.   The ECCU is cognisant that reforms may be 
required to maintain the exchange rate peg. 
17. Since the last TPR, the Eastern Caribbean S ecurities Market was launched in October 2001 
with the opening of the Eastern Caribbean Secu rities Exchange Ltd. A regional market for WT/TPR/G/190/Rev.1 Trade Policy Review 
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 government papers became operational with the estab lishment of the Regional Government Securities 
Market in November 2002.  Since its establishmen t, governments have ra ised EC$1.7 billion and 
realised savings of almost EC$14 million in debt servicing, as at December 2006. 
Balance of Payments  
18. Except for 2005, the OECS1 have posted a small Balance of Payments surplus for the period 
under review.  The services surplus h as been sufficient to offset the significant deficit in the current 
account.  The OECS economies have been plagued by  an ever widening current account deficit which 
is primarily attributable to the decline in mercha ndise exports, rising fuel prices and the increase in the 
cost and volume of imports.  The growth in the servi ces sector, particularly tourism and construction, 
has been a boon and a disadvantage and increased ac tivity in these sectors is also driving up the 
demand for imported goods. 
19. The overall weak export performance for the peri od under review has been largely attributed 
to declining banana production due to unfavour able market conditions, the cessation of sugar 
production due to the closure of the sugar industry in St. Kitts and Nevis and the decimation of the 
agricultural sector in Grenada af ter the passage of Hurricane Ivan. 
20. In 2006, despite an increase in current account  deficit by 4.4% from 2005 a surplus of 2.3% 
was posted for the ECCU.  The upturn is attributab le to the increased inflows of FDI linked to the 
hosting of the 2007 Cricket World Cup, increased visito r arrivals and an increase in volume and price 
for banana exports. 
Sectoral Developments 
Agriculture  
21. The contribution of the agriculture sector to GDP continued to decline in the period under 
review, falling 1.27 percentage points from 6.77% in  2001 to 5.50% in 2005.  The decline was most 
marked in St. Vincent and the Gr enadines where the agricultural sector  contribution to GDP decreased 
by 5.5% between 2001 and 2006.  The changes in te rms of access to the EU markets for traditional 
commodities that have benefited from preferential arra ngements have been largely responsible for this 
decline.  The banana industry has been subject to increased competition and reduced prices since the 
WTO challenge to the EU banana regime resulted in  changes to the terms of  access to the market for 
non-ACP producers.  This problem was further com pounded by the prevalence of leaf spot disease 
and the passage of hurricanes Ivan (2004), Lily (2005) and Dean (2 007).  The closure of the sugar 
industry in St. Kitts and Nevis in 2005 also affected the sector’s performance. 
22. In 2006, there was an improvement in the pe rformance in the agricultural sector.  The ECCB 
reported that value added increased by 10.8% after d eclining by 11.7% in 2005.  This was attributed 
to a surge in banana production by 6.4% in 2006, compared to a decline of 25.7% decline in 2005, as 
well as by favourable movement in exchange rates for banana prices.  The increase in output was due 
to a confluence of factors including the efficacy of  measures to control leaf spot disease, generally 
favourable weather conditions and the higher prices paid  to farmers under the Fair Trade label.  Other 
traditional crops mainly cocoa, nutmeg and mace also showed some signs of recovery in the wake of 
hurricane damage in Grenada. 
                                                      
1 As a group, this includes the ECCU. OECS-WTO Members WT/TPR/G/190/Rev.1 
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 Manufacturing  
23. The manufacturing sector has been showing stead y growth since 2003.  In 2006, the sector 
increased by 3.4%.  Expansion in construction, in cipient recovery in the agricultural sector and 
preparations for the Cricket World Cup, have c ontributed to increased demand for manufactured and 
processed products. 
Services  
24. Services continue to be the major contri butor to GDP through the period under review 
fuelling the positive macroeconomic performance of the OECS.  Expansion in the construction sector 
was of the order of 15.5% in 2006 and 20.4% in 20 05.  Public and private sector investment ahead of 
the Cricket World Cup, reconstruction after Hurricane  Ivan and investment in tourism spurred growth. 
25. The tourism sector generally performed positive ly during the period under review but is 
vulnerable to externalities.  The sector performed poorly in 2002 and 2005 due to the effects of 
September 11 2001 and Hurricane Ivan in 2004.  Ge nerally visitor arrivals have been increasing 
including stay-over visitors, cruise ship arrivals  and yacht passengers.  There has been significant 
private sector investment in the tourism plant and ro om capacity is expected to increase sharply in the 
short-term. 
26. Other services sectors continued to maintain a major share in economic output.  In 2005, the 
communication, wholesale and retail trade, transport and banks and insurance sectors, together accounted for approximately 46% of real GDP.  Grow th in communication was fuelled by the entry of 
new service providers into the market.  Growth in the other sectors was triggered by expansion in the 
construction sector which drove up demand for other goods and services. 
Outlook  
27. The positive economic growth trend is expected to continue over the short to medium term, 
albeit at a reduced rate due to the completion of many major construction projects.  Growth will be 
spurred by the expansion of the services sector part icularly tourism, financial services, construction 
and agriculture.  The tourism industry is expected to be propelled by increased marketing exposure, 
especially through the region’s hosting of the 2007 Cricket World Cup.  Expansion in the tourism 
sector is expected to influence the performance of  other sectors through the creation of linkages.  
Efforts are being undertaken at the national and re gional levels to create backward linkages between 
tourism and agriculture and manufacturing.  Altern ative markets are being explored for traditional 
agricultural products such as ethical labelling under th e Fair-Trade brand and this should continue to 
yield favourable developments in the agricultural sector.  Efforts at retooling the manufacturing sector 
in line with recommendations and assistance from inter alia  USAID and International Trade Centre 
(ITC) are also expected to result in expansion of the manufacturing sector. 
28. The region will continue to attempt to di versify its economic base, focussing on the 
development of world-class and competitive servic es industries paying attention to areas such as 
offshore education, ICT, cultural industries and t ourism sector and the linkages between services and 
other sectors including manufacturing and agriculture, health and wellness and promoting investment in value-added sectors especial agro-processing. 
29. The region is faced with the major challenge of  reducing its debt and fiscal imbalances.  The 
fiscal deficit is expected to narrow as public sector i nvestment in capital projects falls and the effects 
of the measures implemented under tax reform programmes implemen ted in the OECS-WTO member WT/TPR/G/190/Rev.1 Trade Policy Review 
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 states kick in.  A new system of fiscal benchmarks was approved by the ECCB monetary council in 
2006 replacing the 1998 ones which had been unsuccessf ul in achieving fiscal convergence by 2007.  
The target date for compliance is 2020.  The OECS  remains committed to the strong dollar policy and 
will maintain the exchange rate peg which has created  a stable and predictable economic environment.  
Efforts to develop regional capital markets will con tinue and deepening regional integration efforts 
are expected to result in greater integration of  the OECS ECCU into wider Caribbean markets. 
3. Trade Policy and Institutional Framework 
30. The global environment has changed significantl y – the events of September 11 2001 have 
had far-reaching impacts the global economy. Foreign policy and therefore international trade policy 
is now heavily influenced by global security concerns.  The global environment is also unfavourable 
towards the continuation of long-standing unilatera l preferential arrangements that supported OECS 
trade.  While the OECS-WTO members remain co mmitted to the process of trade liberalisation as a 
tool for achieving their development goals the OECS  is faced with the challenge of inserting itself 
into the global trading system under conditions th at take into account the extreme smallness and 
vulnerability of these small island developing states. 
31. The development objectives of the OECS Member States include poverty reduction, job 
creation, increased access to education and hea lth services, environmental sustainability, good 
Governance and sustainable economic growth th rough the development of key sectors such as 
Agriculture, Tourism, Financial Services and Manufacturing. 
32. The OECS sees trade as a vehicle for promoti ng its development objectives.  The challenge, 
therefore, has been to enter into negotiated arra ngements that are suited to domestic realities and 
national development objectives a nd which are WTO-compatible.  The OECS seeks to become 
integrated into the global economy and to maximi se the benefits of trade liberalisation while 
mitigating its potentially negative impacts.  Th e OECS seeks policy space and flexibilities which 
allow for the promotion and safeguarding of sensi tive industries and sectors.  Any liberalisation 
commitments undertaken by these countries are to be commensurate in depth and scope with their 
levels of development, resource availability and share of world tr ade.  Market access for traditional 
commodities must be safeguarded and real market access for products and services of export interest 
to the OECS needs to be secured. 
33. The OECS is seeking to enhance the comp etitiveness of its economies while securing 
enhanced market access opportunities for its exports  and flexibilities in market access commitments 
that will support adjustment to increased competition.  The OECS trade strategy  is three-tiered.  At 
one level, is the regional integra tion process which acts as a platform for integration into the global 
economy.  The CSME and the OECS Economic Union are mechanisms for building resilient and competitive economies.  On the second tier are bilatera l and regional arrangements and at the third tier 
is the multilateral process in the WTO. 
34. The OECS-WTO members are now engaged in a number of trade negotiations which are 
stretching already limited technical and financial res ources.  On average, there are two trade officials 
in each member state that are assigned to dealing w ith all trade issues across all negotiating theatres.  
The capacity of the OECS to participate in th e negotiations and in the implementation of its 
commitments is hampered by the sheer paucity of human and financial resources that can be assigned to trade matters.  The OECS Secretariat plays a pi votal role in the coordination and development of 
trade policy for the OECS and has spearheaded several initiatives that  have been undertaken at the 
subregional regional level to enhance the OECS capa city to participate in a rapidly expanding trade OECS-WTO Members WT/TPR/G/190/Rev.1 
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 negotiations agenda.  These included the establis hment of the OECS Trade Negotiations Group 
(2002), the Trade Policy Unit (2003), designation of Ministerial Spokespersons (2004), the OECS Business Forum (2005) and the Geneva Technical Mission (2005).  While collaboration and shared 
actions at the regional level have helped to alleviate the situation,  joint mechanisms and institutions 
tend to survive on external sources of funding and where this has been lim ited, so has been the 
effectiveness of the mechanisms. 
35. The OECS Trade Negotiations Group (TNG) was established by the OECS Heads of 
Government in June 2002.  The group’s membersh ip comprises trade officials and representatives of 
the private sector from each Member State and the staff of the TPU of the OECS Secretariat.  The 
primary objective of the TNG is to facilitate the formulation of OECS positions on external trade 
negotiations issues by assisting member states in thei r participation in all trade negotiations fora and 
to provide a formal mechanism for engagement of national public and privat e sector representatives 
on trade-related matters. 
36. The Trade Policy Unit (TPU) was established in 2003 in the Economic Affairs Division of the 
Secretariat based on the recommendation of the CIDA funded Trade Policy Project.  The TPU 
currently has three staff members and is charge d with providing technical support administrative 
support for trade policy implementation and trad e negotiations to Member States across all 
negotiating fora.  The unit has helped to strengthen the OECS’ ability to formulate and implement trade policy and participate effectively in trade negotiations. 
37. The Authority assigned lead responsibility to Ministers of the Member States for monitoring 
activities in negotiating theatres and agreed to th e establishment of a ministerial committee which 
would have oversight for OECS Trade Policy.  Tr ade Policy is discussed at the national level and 
taken through the OECS TNG and the Council of  Trade Ministers and endorsed by the OECS 
Authority.  Policy decisions of the OECS Authority are communicated to the CARICOM Council on Trade and Economic Development (COTED) and th en to the CARICOM Conference of Heads 
Caribbean where they are integrated into CARI COM positions.  The Caribbean Regional Negotiating 
Mechanism (CRNM), the negotiating arm of CARICO M, is guided by the decisions of the COTED 
and the Conference of Heads in formulating regi onal positions and developi ng regional negotiating 
strategies. 
38. Efforts have also been made to  ensure the institutional developm ent of the private sector.  In 
this regard  the OECS Business Forum was conceptualised as a mech anism for the exchange of views 
among private sector officials on trade matters and to build capacity of the private sector to deal with 
trade policy issues.  The Forum now needs to be appropriately resourced to undertake its mandate and 
develop its work programme. 
39. The OECS Observer Mission to the United Nations  and Other International Organisations in 
Geneva also functions as the Technical Mission of the OECS to the WTO.  It was established in 
June 2005 with a grant from the European Deve lopment Fund under the ACP Project Management 
Unit for WTO activities.  The purpose of the mission was to link the OECS more directly to the WTO 
as all are non-resident WTO members. 
40. The existence of the Mission has facilitated greater improvement in the ability of the 
OECS Member States to follow developments in Geneva and to advance OECS positions in the 
WTO negotiations.  Information flow between  Geneva and all member states and the 
OECS Secretariat has improved significantly.  This has provided an opportunity for the OECS to be WT/TPR/G/190/Rev.1 Trade Policy Review 
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 more actively engaged in WTO matters and to sen sitise other WTO members about the particular 
needs of the OECS Member States. 
41. At the national level responsibility for trade policy development and implementation resides 
in different ministries.  In an effort to achieve gr eater coordination at the national level and in order to 
mainstream trade into national economic policy, me mber states established national trade councils 
whose composition in some include private sector participation.  This has resulted in greater organisation and coordination at the national level on matters of trade policy.  The institutional 
framework for the development and implementa tion of trade policy has benefited from the 
rationalisation of trade ministries with the portfolios of trade and external affairs being handled by the 
same minister.  Training of trade officials with the assistance of organisations such as the WTO 
remains an ongoing exercise. 
4. Regional Integration 
OECS Economic Union 
42. The OECS has a history of successful joint institutions including the Eastern Caribbean 
Central Bank (ECCB), the Eastern Caribbean Supreme Court, mechanisms for the joint regulation of 
banking and securities, telecommunications and civil aviation, joint procurement of pharmaceuticals; 
joint diplomatic representation, functional coopera tion and coordinated and cooperative approaches to 
trade, education, health, sports, agriculture, t ourism, export development, the environment and 
maritime matters.  The OECS has now entered into another phase in the journey of regional 
collaboration with the declaration of intent by th e OECS Authority, the highest decision making body 
of the OECS in June 2006, to advance the pr ocess towards an Economic Union.  A new Treaty 
towards this end is now in its final stages of review  by the Authority with the intent of putting it out 
for public consultation and debate ove r a twelve month period prior to its final adoption.  This would 
complete an integration process th at began over forty years ago. 
43. The establishment of the OECS Economic Union was first endorsed at the 34
th meeting of the 
OECS Authority in 2001.  The OECS Economic Un ion will create a single financial and economic 
space where people, goods and services move freely, rights of establishment are guaranteed and major 
economic policies are harmonised.  This will also  create a mechanism for common action in five 
major areas:  justice, law and order, foreign affair s, public administration, management if human and 
natural resources and economic coope ration and coordination.  It will require gradual surrender of 
sovereignty to a central supra national body, giving  legal effect to the decisions of the Heads of 
Government and the grant of executive pow er to Organs of the Organisation. 
The CARICOM Single Market and Economy (CSME)  
44. The OECS member states are party to the Treaty of Chaguaramas signed in 1973 which 
established the Caribbean Community (CARICOM ).  The Revised Treaty of Chaguaramas 
(completed in 2000) has been enact ed into the domestic legislation of all OECS-WTO member states 
giving effect to the CARICOM Single Market and Economy (CSME).  The CSME is an arrangement 
that is intended to enhance the competitiveness of  the region by effecting the free movement of the 
factors of production and the right of establishment.  The expected benefits include increased efficiency, higher levels of investment, employme nt and increased intra- and extra-regional trade. 
45. In 2006, the CARICOM single market became ope rational with the signing of the Declaration 
by Heads of Government of the Caribbean Community on the participation of their countries in the OECS-WTO Members WT/TPR/G/190/Rev.1 
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 CARICOM Single Market.  A timeline of 2015 has been set for the implementation of the single 
economy. 
46. Chapter VII of the Revised Treaty recognises th e peculiar situation of OECS countries and 
categorises them as Less Developed Countries (LDCs) within the CARICOM grouping.  The 
provisions of the chapter are designed to provide sp ecial and differential treatment to these countries.  
The OECS is committed to this regional integrati on process and like the OECS Economic Union, this 
is perceived as a means for reduc ing the vulnerability inherent to small economies by expanding 
access to the factors of production and creating a larger domestic market.  The OECS will face similar challenges to benefiting from the CSME as faced in the wider global economy.  The dearth of skilled 
labour and the high cost of production (due to high cost of energy, capital, labour, for example) place 
the OECS at a disadvantage to other lower co st CARICOM producers.  The special provisions 
applicable to the OECS/CARICOM LDCs will be utili sed to facilitate adjustment to the effects of 
regional liberalisation.  These include a Regi onal Development Fund along with special and 
differential treatment accorded with respect to inter alia  sensitive industries, access to land and free 
movement of labour. 
47. The OECS-WTO members currently apply the CARICOM Common External Tariff (CET) as 
the MFN rate.  Under Article 164 of the Revised Treaty, sensitive industries in the Less Developed Countries/OECS are accorded and additional level of  tariff protection.  The OECS-WTO members are 
in the process of tariffying the import licensing syst ems which have been used to safeguard these 
industries in order to make the regime more transparent and WTO compatible.  The OECS-WTO 
members apply the CARICOM rules of origin regime  in order to facilitate the duty-free entry of 
goods originating in CARICOM. 
48. According to Article 46 of the Revised Treaty, one of the objectives of the single market is 
free movement of nationals.  This is being impl emented on a phased basis commencing with Nurses 
and Teachers, University Graduates;  citi zens possessing Associate degree or comparable 
qualifications, Sports Persons;  Medi a Persons;  Artistes and Musicians. 
49. The region is now moving to the establishment of a Regional Competition Commission 
before the end of 2007 which will have responsibility for cross-border issues.  The Revised Treaty of 
Chaguaramas requires that each CARICOM me mber state establish a national competition 
commission.  However, due to resource constr aints the OECS has opted to create an OECS 
competition commission which will function as a national competition commission for individual 
Member States. 
50. The OECS Economic Union is also seen as fac ilitating the full implementation of the CSME 
and is therefore a means of deepening the CARICOM integration process. 
5. Bilateral/Hemispheric and Preferential Trade Agreements 
CARICOM Bilateral Arrangements 
51. As part of CARICOM, the OECS is party to several bilateral trade arrangements.  These 
include agreements with Colomb ia (1994, amended in 1998), Venezuela (1992), Dominican Republic 
(1998), Cuba (2000) and Costa Rica (2004).  In keeping with a decision of the 16
th Meeting of the 
CARICOM Conference of Heads of Government, the OECS countries as CARICOM LDCs are not required to extend reciprocal treatment on market  access under the terms of these agreements in 
accordance with GATT Article XXIV. WT/TPR/G/190/Rev.1 Trade Policy Review 
Page 14 
 
 
 CARICOM-U.S.  
52. OECS exports have been eligible for duty-fr ee access to the U.S. market under the Caribbean 
Basin Initiative (CBI) since 1984.  In 2000, the CB I was expanded and replaced by the Caribbean 
Basin Trade Partnership Act (CBTPA) and further enhanced by the Trade Act of 2002.  Access is 
subject to qualification under the rules of origin regime.  The CBI had facilitated the development of 
the manufacturing sector in the region, particularly light manufacturing such as electrical assembly and garment production.  However, due to changes in the rules of origin regime, exports of garments 
to the U.S. has become less profitable, resulting in the closure of these operations and social fall out in 
the areas where production had been located.  This further compounded the fall out from decline in 
the banana industry in the 1990’s. 
53. The benefits available under the CBTPA are va lid until September 2008.  The U.S. attempts 
to secure additional waivers for the continuation of this programme have been  repeatedly challenged 
by a failure to secure consensus in mee tings of the Council for Trade in Goods. 
54. CARICOM has signalled its interest in engaging in dialogue with the U.S. on the form in 
which U.S.-CARICOM relations should continue.  Pr ogress in this regard has been complicated by 
the lack of movement in the DDA, the expirati on of Trade Promotion Authority and the upcoming 
Presidential election in 2008. 
CARICOM-Canada
 
55. Since 1986, the Commonwealth Caribbean has en joyed non-reciprocal preferential access to 
the Canadian market for most commodities under th e Caribbean-Canada Free Trade Agreement.  The 
OECS are among eighteen countries or dependent terr itories that benefit from this arrangement.  The 
agreement is subject to a waiver from the WTO.  The last waiver, granted by the WTO General 
Council in March 2007, expires on December 31 201 1 (WT/GC/M/106).  Canada and CARICOM are 
engaged in preliminary discussions towards the negotiation of a free trade agreement. 
CARICOM-Central America  
56. CARICOM Ministers of Trade at the Second Summit of Heads of State and Government, 
May 12 2007 took a decision to commence negotiation of a free trade agreement with 
Central America.  The process has commenced  with preliminary technical discussions. 
CARIFORUM-EU Economic Part nership Agreement Negotiations  
57. As part of the ACP grouping, OECS members are party to the ACP-EU Cotonou Agreement 
which was signed in 2000 and revised in 2005.  Th e Cotonou Agreement is the latest in a series of 
agreements that extended unilateral trade prefer ences and provided development assistance to the 
ACP grouping.  Under these arrangements, the OECS  agricultural sector benefited from secure and 
stable market access for several decades and also  received technical and financial assistance.  
According to Articles 36 and 37 the parties agreed to negotiate “new WTO compatible arrangements” 
by December 31 2007 for entry into force by January 1 2008. 
58. The OECS as part of CARIFORUM (CARICOM plus the Dominican Republic) is engaged in 
the negotiation of Economic Partners hip agreements (EPA) with the European Union.  Negotiations 
for an EPA were launched in 2004 and despite fi nancial, human and technical constraints and 
divergences with the Europeans, CARIFORUM re mains committed to completing the negotiations 
within the stipulated deadline.  The plan and schedule for the negotiations set September 2007 as the OECS-WTO Members WT/TPR/G/190/Rev.1 
 Page 15 
 
 
 target for the conclusion of the negotiations be tween the EU and CARIFORUM and entry into force 
in January 2008. 
59. CARIFORUM is seeking the inclusion of a de velopment dimension in the negotiations.  
Agreement on modalities that provide sufficient flex ibilities in tariff liberalisation that address the 
region’s particular sensitivities with regard to fi scal revenue impacts and the adjustment of sensitive 
sectors has proven to be elusive.  Convergence h as been achieved however, in some aspects of the 
trade related issues and market access.  Services and investment and the treatment of regional integration are also within the scope of the ne gotiating mandate.  The OECS, like the rest of 
CARICOM, is seeking an outcome that is commerc ially meaningful and also provides for differing 
levels of commitment between CARICOM MDCs and LDCs. 
6. The World Trade Organization (WTO) 
60. The OECS member states remain  committed to the multilateral process of trade liberalisation, 
while at the same time being cognisant of the ch allenges and the fall out from trade liberalisation.  
The OECS-WTO members have become more active in the Doha Round with the establishment of the 
institutional mechanisms to support this.  The OECS  Geneva Mission has worked closely with OECS-
WTO member states directly and through the TNG and the TPU to advance the OECS positions in the 
negotiations. 
The Doha Round  
61. The OECS has been quite active in the Doha Round, particularly since the establishment of 
the Geneva Mission in June 2005.  Proposals have b een tabled and defended in Services, Agriculture, 
NAMA, Trade Facilitation, Rules especially Article 27.4 of the ASCM and fisheries subsidies and 
Aid for Trade.  Engagement has been through the CARICOM/Caribbean Gr oup, Small Vulnerable 
Economies (SVEs) Group, and the ACP. 
62. As was noted in the previous review report,  the OECS economies continue to attempt to 
adjust to the effects of trade liberalisation.  Th ese states face the challenge of overcoming the effects 
of declining revenues from trade taxes and contrac tion of productive sectors due to changes in trade 
policy brought about by changes in export market s based on outcomes of challenges to regimes from 
which OECS producers may benefit.  As small,  vulnerable developing economies, the OECS-WTO 
members are seeking modalities for trade liberalisa tion that are commensurate with the level of 
development of their economies. 
63. OECS/CARICOM officials are concerned about the possible benefits to be gained from a 
round which seems to have little to offer smaller developing countries.  The conclusion of the Round 
is of benefit to the OECS only if its interests have  been addressed and a strategy for the inclusion of 
the region’s defensive and offensive positions in  the emerging modalities is being pursued.  The 
OECS supports the return to the multilateral proces s and would like to see the “frontloading” of 
development in the emerging modalities. 
64. In Agriculture the OECS objectiv e has been to secure flexib le modalities that take into 
account the special circumstances of small developing countries.  Including real market access for 
products of export interest and modalities that are flexible enough to cater for sensitive sectors and the 
pursuance of non-trade policy objectives.  Special products that are excluded from tariff reduction commitments and a special safeguard mechanism are seen  as some policy tools that can be considered 
in this regard.  OECS member states need to  ensure that any modalities on market access in WT/TPR/G/190/Rev.1 Trade Policy Review 
Page 16 
 
 
 agriculture include flexibilities that take into account our development concerns including rural 
development, livelihood security and food security. 
65. In the negotiations on Non-Agricultural Mark et Access (NAMA) the OECS’ objective in 
these negotiations has been to secure policy space and to secure flexibilities in implementing tariff 
liberalization commitments that take into account the small size of the economies measured as share 
of world trade, vulnerability and tariff revenue depe ndency.  In the context of  the DDA, the OECS is 
seeking flexibilities in market access for goods to mitig ate the corresponding loss in fiscal revenue but 
also to lessen the effects of preference erosion on  products of interest to the OECS.  The SVE 
argument is gaining traction and several OECS memb ers have been quite active in this group seeking 
modalities that will facilitate adjustment of small ec onomies to the effects of liberalisation such as 
lower tariff reductions and longer transition periods for sectors wh ich are both revenue and production 
sensitive. 
66. Market access for bananas and products be nefiting from long-standing preferences still 
remains a matter of concern.  The July 2007 te xt submitted by the Chairman of the Agriculture 
Committee has flagged the issue for further work and analysis.  The idea that Aid for Trade could be 
compensation for the loss of preferences has been mooted but this is not a position that is supported 
by the OECS particularly because of  the lack of clarity on the definition of the scope and benefits to 
be derived by the region under this rubric. 
67. In Services the OECS participation in the negotiations on services has been mainly in 
domestic regulation.  The OECS called for flexib ility based on recognition of specific concerns 
including capacity constraints related to financial,  administrative and institutional capacity as well as 
size and level of development.  Given the impact of changes in plurilateral and national regulations 
and on small economies, notably the OECD’s Financ ial Action Task Force (FATF) blacklisting of 
some Caribbean jurisdictions and the internet ga ming case, the OECS is seeking to ensure that 
modalities on domestic regulation prevent simila r situations from arising in the future. 
68. Trade Facilitation is an area of interest for the OECS in the negotiations as this issue is 
supportive of OECS interest in improving the environment for investment by reducing the cost of 
doing business.  However, modalities in TF must in clude special and differential treatment provisions 
that address the constraints to implementation th at would be faced by small developing island 
economies. 
69. The negotiations on Article 27.4 of the Agre ement on Subsidies and Countervailing Measures 
(ASCM) have been of keen interest to the OECS .  As part of the SVE group, the OECS sought and 
has been granted an extension of th e waiver of the obligations to e liminate export subsidies under this 
provision.  A decision was taken at the July meeting of the WTO General Council to grant the waiver until December 2015 including a two-year phase out  period.  Despite the criticisms of these 
programmes the OECS maintains that they are si gnificant in creating employment and stimulating 
export-oriented economic growth and diversifica tion.  Extensive reform of these programmes has 
been undertaken in Grenada.  At the regional leve l the CSM has provisions for an Investment Code 
which will achieve reforms in this regard. 
70. The OECS-WTO members have also participated  in the Fisheries subsidies negotiations.  
Most OECS countries support the position articulated  by a group of small vulnerable coastal states 
that modalities on fisheries subsidies should includ e appropriate special a nd differential treatment 
which would exempt the following from subsidies disc iplines:  development assistance to developing 
coastal states;  assistance to artisanal or sma ll-scale fisheries, access fees in fisheries access OECS-WTO Members WT/TPR/G/190/Rev.1 
 Page 17 
 
 
 agreements;  and fiscal incentives that facilitate the development of capabilities of small vulnerable 
coastal states. 
Aid for Trade  
71. Aid for Trade was brought into the Doha Round at the Hong Kong Ministerial.  The OECS 
prefers to refer to this issue as Aid to Trade as th e objective of the interventions under this should be 
to make countries achieve sustainable growth a nd development through trade and not to become 
mendicants.  The OECS is also concerned that AFT not be put forward as a means of providing 
compensation for preferences.  The OECS sees A FT as a means to address the challenges that 
Member States face in adjusting to the economic shoc ks from trade liberalization and to build medium 
to long-term competitiveness. 
72. The OECS perceives AFT as comprising four components including: 
i. Policy support, such that  agencies including the  IMF/World Bank can provide advice to 
 governments upon request, for the mainstreaming of trade into their domestic policies such 
 that export in their competitive areas can be enhanced; ii. Infrastructural financing and support (“hard ” technical assistance), such as improving roads, 
ports, airports, public utilities, trade-related la ws, and regulations (all “hard” infrastructure 
that can be used to enhance trade);  identif ication of alternative sources of energy and 
development of ICT.  In this regard the OE CS has received assistance from the Agency for 
International Trade Informati on and Cooperation in developing one such project proposal 
which can form the basis for an interven tion to improve intra-regional maritime 
transportation; 
iii. Trade adjustment financing for severance of workers in industries that close due to trade 
liberalisation.  Donors could also help deve loping countries that so request it, to set-up 
unemployment insurance programmes.  It could also be an area of investment; 
iv. Supply side support, such as assistance (financia l and technical) to firms and small industries 
to build the capacity to become globally compe titive.  This could also include support for the 
Private Sector for the development of entrep reneurial skills and support systems for SMEs. 
73. Aid for Trade should be simple to access and an y adjustment assistance under this facility 
should be delivered in a timely manner.  The OECS  would also like to see a component that addresses 
the high level of indebtedness of the region.  The OECS does not perceive the outcomes of AFT as being compensation for loss of preferences.  AFT is al so expected to be reflective of outcomes in the 
DDA and therefore should result in the provision of additional financing (or new sources of funds) 
and not the “recycling” or repackag ing of existing financing instruments.  AFT is seen as a new issue 
emerging from the Hong Kong Ministerial of Decem ber 2005.  Previous tr ade-related technical 
assistance or development assistance could therefore not be appropriately defined as constituting AFT and therefore such assistance should not be computed into any AFT package. 
Dispute Settlement 
74. Antigua and Barbuda was the first OECS-WTO state to be party to a dispute settlement in the 
WTO.  The United States was the largest market for Antigua and Barbuda’s remote gaming industry until it amended its domestic legislation to prohibit the provision of these services. 
75. In 2003, Antigua and Barbuda initiated proceed ings at the WTO against the United States, 
pursuant to the Understanding on Ru les and Procedures Governing the Settlement of Disputes (DSU).  
This action has proved expensive and time consuming for Antigua and Barbuda.  The DSB has ruled WT/TPR/G/190/Rev.1 Trade Policy Review 
Page 18 
 
 
 that the United States was in violation of the General Agreement on Trade in Services, but that 
country has not complied with the ruling and has instead announced its intention to withdraw its 
commitment.  Antigua and Barbuda has the right to compensation under Article XXI of the GATS.  
However it has always been Antigua and Barbuda ’s objective to engage the United States in a 
negotiated settlement that allows the continued pr ovision of gaming services to consumers in the 
United States on a mutually acceptable basis. 
76. The developments in this case highlight the fact that the WTO system does not provide a level 
playing field.  As a small economy there are few if  any retaliatory measures that Antigua and Barbuda 
can use in response to the U.S. non-implementation of the ruling.  The DSB has clearly failed to 
secure more than a hollow victory and allows, at least  in this case, one member to challenge the global 
trade systems and determinations by the WTO. 
77. The prospects for expanding the gaming sector are mixed.  U.S. actions in response to the 
challenge brought against them at the WTO by Antigua and Barbuda are likely to result in a protracted struggle for an acceptable settlement.  Al ternately, Antigua and Barbuda has submitted an 
application to the British Government to request  permission to allow the former’s licensees to 
advertise in the United Kingdom.  A decision is expected by September 2007. 
78. Since the last trade policy review, the banana -producing OECS countries have continued to 
maintain third-party status in the ongoing cons ultation between the EU and the Latin American 
banana producing countries as the affected countries,  namely Dominica, St. Lucia and St. Vincent and 
the Grenadines continue to fight for the preservation of secure market access for banana exports to the 
EU.  After sustained challenges from Latin American  producers, supported by their U.S. investors and 
as a consequence of adverse rulings in the DSB,  the Windward Island Banana Industry was dealt a 
critical blow.  Banana exports to the EU under pref erential arrangements have not been guaranteed 
beyond December 31, 2007, after the expiration of the Cotonou waiver. 
79. The banana issue continues to be a critical one and the further erosion or loss of preferential 
treatment would have the effect of completely d ecimating the once vibrant and now struggling banana 
industry in the OECS.  This is an outcome of grav e concern to these countries as it could only lead to 
further deterioration in the economic developmen tal prospects for the very small and vulnerable 
OECS economies. 
80. The severe consequences for the OECS Member States are evident Banana production across 
the Caribbean, since 1999, has fallen by more than tw o-thirds and there has been severe economic and 
social dislocation as a result especially in the ru ral communities which were so reliant on production 
and export of bananas for sustainable livelihoods.  Ru ral standards of living have fallen, migration to 
urban areas has increased significantly, creating ne w areas of pressure.  Crime has increased, and 
generally, the development progress of these our countries have been set back.  This is further 
reflected in a recent IMF Study which shows that the reduction in preferential market access for the 
OECS banana producers could see these countries expe riencing a permanent loss of between 1-2% of 
GDP.  For these small states, this is very significan t.  Despite this situation, the banana producing 
states continued to struggle to maintain some le vel of production within th e framework of support still 
provided by the European Union, even though this framework is a far cry from what could be regarded as satisfactory. OECS-WTO Members WT/TPR/G/190/Rev.1 
 Page 19 
 
 
 Implementation of Uruguay Round Commitments 
81. The last trade policy review stimulated inter est in the OECS and drew attention to their 
technical assistance requirements and the ch allenging circumstances under which national 
governments were attempting to implement UR commi tments.  The region has benefited from several 
initiatives to assist with implementation.  Th e rate of implementation of Uruguay Round 
commitments by the OECS has varied across countries and sectors. 
82. Meeting the transparency requirements of the WTO agreements has presented specific 
difficulty to the OECS.  Efforts have been made to improve this since the last review;  however, there 
are still persistent human, technical and financia l resource constraints to full compliance with 
notification requirements.  However, with external  technical assistance, the implementation of the 
TRIPS agreement has advanced substantially since 2001. 
83. The OECS apply MFN at the CET rate which is well below the WTO notified bound rates.  
The only possible exception being Grenada.  After implementing the CET, Grenada engaged in tariff 
renegotiations since applied CET rates for some  products exceeded their WTO bound rates.  
Technical Assistance  
84. The OECS continues to face severe constraints,  both human and financial constraints with 
respect to trade policy implementation.  The OECS-WTO members have benefited from several 
technical assistance programmes aimed at building cap acity to formulate and implement trade policy 
in the period under review.  Notably the CIDA- Trade Policy Project which ended in 2006, the 
Commonwealth Secretariat’s Hub and Spokes Project which is managed by the 
Commonwealth Secretariat and funded by the European Union in its second year and the 
establishment in the OECS and the OECS Geneva Technical Mission which was established with the 
financial support of the European Union.  Member States have also benefited from training in trade 
policy from the WTO Institute for Technical C ooperation and IDB/INTAL.  This assistance has 
heightened the importance of trade policy at the na tional level and increased the capacity of the public 
and private sector to treat with trade policy matters. 
85. The CIDA had provided a programme of assistance to the OECS through a trade policy 
assistance project that was implemented over the pe riod 2000 to 2006 called the Trade Policy Project 
(TPP).  The project purpose was to strengthen OECS  capacity in three areas:  development and 
maintenance of an OECS international strategy, st rengthen OECS capacity to meet obligations under 
regional and international trade agr eements and to strengthen OECS capacity to participate effectively 
in international trade negotiations.  The TPP has been  one of the most successful and effective in 
terms of its impact on the beneficiaries.  Its outputs included the establishment of the Trade Policy Unit (TPU), the preparation of subregional trad e policy frameworks for agriculture, manufacturing 
and services, the funding of meetings of the OECS TNG, support for participation in trade negotiation 
through conduct of technical analysis and funding of participation in working sessions. 
86. The technical mission in Geneva was esta blished in Geneva in 2005 to support the 
participation of the OECS in the WTO.  Its establis hment was timely in that it came on stream at a 
time when the interventions of the CIDA-funded TP P had built up significant capacity at the national 
and regional levels.  Therefore the Mission was able  to locate itself within an existing institutional 
framework that would allow for effective representati on.  Since its establishment, OECS has benefited 
from increased and timely flow of information, and has enhanced and facilitate d the participation of 
the OECS in the Doha Round and the multilateral process.  The OECS played a pivotal role along WT/TPR/G/190/Rev.1 Trade Policy Review 
Page 20 
 
 
 with CARICOM in the SVE, ACP and G90 groups at the December 2005 Hong Kong Ministerial.  
Post-Hong Kong, the OECS mission has assumed a coordinating role for the Caribbean region and for Services in the ACP Group.  The Mission has been able to creating opportunities to forge strategic 
alliances geared towards advancing the interests of the OECS in the negotiations and enhance the 
region’s access to technical assistance through the cl oser cooperation with the WTO and various other 
international organisations, inter-governmental  organisations and NGOs such as AITIC. 
87. The implementation of the OECS Hub and Spokes Project by the Commonwealth Secretariat 
commenced in June 2005 with funding from the Europ ean Union.  Its objectiv e is to enhance capacity 
of Member States to implement policy and particip ate in WTO and EPA negotiations.  The project has 
provided technical assistance with preparations for the EPA negotiations and the WTO Doha Round 
by undertaking technical analysis related to prepar ations for the negotiations and training for trade 
officials and private sector in subjects such as agricu lture, services and rules of origin.  The OECS is 
among several ACP regions that will benefit from projects of this type to provide trade policy 
assistance to ACP states. 
88. The Caribbean Regional Negotiating Machinery (CRNM) provided a Trade Policy Adviser to 
the OECS since 2004 – 2006.  The adviser provide d direct support to Member States and the 
OECS Secretariat, particularly with respect to the WTO and EPA negotiations 
89. The OECS Legislative drafting facility is a CA RICOM Project with an office located at the 
Secretariat to service the needs of the OECS.  It was established in response to the drafting needs of 
Member States towards the harmonization of legisl ation in the implementation of the CSME.  The 
project has drafted over 15 pieces of legislation trea ting with competition polic y, consumer affairs, 
investment, financial services, and intellectual property.  Efforts are now being made to source additional support for the con tinuation of this facility. 
7. Conclusion 
90. The OECS trade policy is outward-looking and th e group is seeking to continue to engage in 
the process of trade liberalisation through the multilate ral and bilateral process.  The region is faced 
with the challenges of sustaining a positive macroeconomic performance, reducing fiscal and debt 
imbalances and mitigating the vulnerabilities that  are attendant to smallness and the region’s 
geographic location. 
91. The OECS recognises that the current global environment has become increasing 
unfavourable for the maintenance of the type of market access arrangements that had sustained the 
expansion of their economies.  There has been a m ove away from unilateral preferential arrangements 
to negotiated reciprocal agreements consistent w ith WTO principles.  The OECS maintains that any 
reciprocal arrangement for developing countries, particularly small economies that have an infinitesimal share in world trade (0.00%) should not  be obligated to undertake commitments that are 
not commensurate that  with their level of development and size. 
92. Deepening the regional integration process is one strategy that will be pursued to enhance the 
competitiveness of the region and reduce vulnerability of the OECS economies and the establishment 
of the CSME and OECS Economic Union will be given the highest priority. 
__________