RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/190/GRD 
1 October 2007  
 
(07-4006) 
Trade Policy Review Body Original:  English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
GRENADA 
 
  
 
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 Grenada is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
 session of the meeting of the Trade Policy Review Body on Grenada. Grenada WT/TPR/G/190/GRD 
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CONTENTS 
 
 Page 
I. INTRODUCTION 5 
II. MACRO-ECONOMIC ENVIRONMENT AND TRADE PERFORMANCE 5 
III. GOVERNMENT ECONOMIC REFORMS PROGRAMMES 2006-2008 9 
IV. TRADE POLICY AND INSTITUTIONAL FRAMEWORK 11 V. CARICOM SINGLE MARKET AND ECONOM Y, BILATERAL AND PREFERENTIAL 
TRADING ARRANGEMENTS 12 
VI. WORLD TRADE ORGANIZATION 13 VII. TECHNICAL ASSISTANCE 17 
 
   Grenada WT/TPR/G/190/GRD 
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I. INTRODUCTION 
1. The state of Grenada consists of the islands of Grenada, Carriacou, and Petit Martinique and 
has a land area of three hundred and forty-five s quare kilometers (or 133 square miles).  The 
population was estimated at 101,100 in 1999.  Grenada is the southernmost of the Windward Island 
Group situated in the Eastern Caribbean and is a member of the sub-regional grouping called the 
Organisation of Eastern Caribbean States (OECS).  As an OECS member, Grenada shares a common 
Central Bank and cooperates with the other member states in several economic and social areas.  
Grenada is also a member of the Caribbean Community and Common Market (CARICOM) and the Association of Caribbean States (ACS). 
2. Grenada is recovering from one of the most diffi cult periods in its econom ic history.  Grenada 
has been buffeted by several external shocks in recent years: the September 11, 2001 attacks in the 
United States which triggered a recession in 2001- 02, Tropical Storm Lili in 2002, Hurricane Ivan in 
September 2004 (causing an unprecedented 200 per cen t of GDP damage), Hurricane Emily in July 
2005 (which caused additional 12 per cent of GDP dama ge), and, more recently, high world oil prices. 
As a result, economic growth has fluctuated sh arply since 2001, unemployment and poverty have 
risen, and effective policy implementation has been  hampered.  The poverty eradication and fiscal 
consolidation programmes that the Government of Grenada had initiated before  Hurricane Ivan struck 
have also been derailed.  Reconstruction needs rema in substantial, while fiscal imbalances, financing 
gaps and the public debt burden are high. 
3. Two hurricanes in the space of 10 months, as well as recent and emerging global phenomena, 
have contributed to defining Grenada’s current socio-economic situation.  Hurricane Ivan, which 
affected the island in September 2004, severely imp acted the country’s economic and social sectors, 
resulting in the contraction of the productive sectors, dislocating the labour force, and destroying schools, houses and buildings, as well as disrupting key infrastructure such as electricity and 
telephones.  Hurricane Emily, which struck the countr y in July 2005, though not as destructive as the 
previous one (Hurricane Ivan), affected the Northern part of the island and, in particular, the food crop 
sector, which was in the process of recovering fro m Hurricane Ivan.  The damage to the economy is 
estimated at EC$2.4 billion as a result of Hurricane Ivan with an additional EC$140 million following 
the passage of Hurricane Emily.  Fifty-eight per cen t of the damage caused by Hurricane Ivan was 
attributed to the housing sector. 
4. As a Small Island Developing country, Grenada is constrained in its  development by a 
number of factors.  These include: susceptibility to na tural disasters;  limited diversification due to a 
very narrow resource base and small domestic ma rket;  limited domestic and export production on a 
limited number of products;  Inadequate Infr astructure;  and low levels of productivity. 
II. MACRO-ECONOMIC ENVIRONMENT AND TRADE PERFORMANCE 
(i) Macro-economic Performance 
5. The domestic economy in 2006 was influenced primarily by developments in the major 
industrial economies to which Grenada’s economy is linked.  Those developments include: 
• An increase in global output by 5.1 per cent, and 
• Relatively high rates of inflation, fuelled mainly by the high price of oil particularly during 
the earlier part of the year. 
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6. Grenada has had a relatively diversified economic  structure, based on the contributions of 
agriculture, manufacturing, tourism, construction,  communications, transportation and government.  
Its economy experienced impressive growth during 1997 and 2000, a period of relative stability, with 
real GDP growing from 4.42% to approximately 7% .  As might be expected after the September 11th 
disaster in the United States, one of the leading touris t markets, GDP is estimated to have declined by 
4.36% in 2001.  In addition, the transportation and construction sectors, which are linked with the 
travel and tourist sectors, were a dversely affected by the September 11th disaster.  Signs of recovery 
were evidenced in the Years 2002 and 2003, mainly as a result of the upturn in tourism.  Grenada 
however suffered a major set back with the passage of Hurricane Ivan in September 2004.  It is 
estimated that Grenada’s real GDP declined by 6.9 per cent in 2004 (see table A1) . 
7. Agriculture had been in decline before th e passing of Hurricanes Ivan and Emily despite 
showing good growth in 2002.  Agricultural output declined by 7.33 per cent in 2004 and significantly 
more (38 per cent) in 2005.  The tourist sector, w hose positive contribution in 2003 turned negative in 
2004, showed a significant decline of 42.5 per cen t in 2005, as most accommodation establishments 
remained inoperative until the winter season of 2005.  In the case of manufacturing, the sector, which 
had been in decline from 2001 to 2003, experienced a further decline in 2004. 
8. The economy is estimated to have rebounded w ith a growth rate of 12.9 per cent in 2005, 
mainly as a result of the extensive rehabilitation and reconstruction programmes necessitated by the 
hurricanes.  As might be expected, the construction sector was the main contributor, with an estimated 91 per cent increase in output in 2005.  In keepi ng with the increased construction activity, the retail 
and wholesale sector also showed appreciable growth.  The manufacturing sector also grew by 
18.8 per cent reflecting the increased demand for chem icals and paints for use in the reconstruction 
programme.  Preliminary data show that in 200 6, the economy of Grenad a recorded positive real 
growth of 1.3 per cent compared to an unsustained rate of 12.1 per cent recorded in the previous year. 
All the major productive and services sectors of th e economy have shown signs of recovery and are 
contributing to this growth.  For example, the agricultural sector grew by  20.5 per cent in 2006 
following a decline of 38.1 per cent in the previous year.  This gr owth was reflected in increased 
production of crops, livestock, forestry and fishing. 
9. The Hotels and Restaurant sector, a proxy for th e tourism industry, grew by 65.0 per cent as 
most of Grenada’s hotels are now up and running.  On  the other hand, value added in the construction 
sector declined by 20 per cent (as was expected) fo llowing substantial growth of 91 per cent in the 
previous year.  In short, with all of the pr oductive and service sectors c ontributing positively to 
growth, the economy of Grenada has become more  diversified, and less dependent on one sector. 
10. An examination of the public finances indicates that Grenada registered a positive balance on 
current account during 2000 and 2003.  In 2004, however, it recorded a deficit of EC$28.3 million.  A 
surplus of EC$60.6 million was recorded in 2005 main ly as a result of the collection of arrears and 
strong growth in imports stimulated by the rec onstruction requirements.  As is the case for most 
developing countries, Grenada’s overall fiscal balan ce is negative.  However sharp increases in the 
deficit are noticeable in 2001 and 2002, while an im provement is observed in 2003.  The public debt, 
while considered to be sustainable, showed a te ndency to rise over the period 2001 – 2003.  By 2004, 
having reached a debt/GDP ratio of 129%, it was cons idered unsustainable.  Debt servicing, which 
increased from 18% in 2001 to 34% in 2003 and w as budgeted at 35% in 2004, accounts for large 
portions of the current expenditure.  However, in November 2005, the Government of Grenada 
negotiated a debt re-scheduling agreement with its commercial creditors resulting in savings in debt 
servicing of US$135 million over a ten year period  (Budget Speech 2006).  The Government also 
negotiated debt relief with the Paris Club in 2006. Grenada WT/TPR/G/190/GRD 
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11. The General Consumption Tax on imports is the highest single component of Government 
revenue, contributing 27 – 29 per cent of revenues.  Import duties accounted for 11 per cent of 
revenue in 2001 and 2002, and an estimated 13 per cen t in 2003.  On the whole, taxes on international 
trade and transactions contribute 49 – 54 per cent of current revenue.  Corporate taxes account for 
10% of revenue, while personal in come tax accounts for 3.2%.  The General Consumption Tax on 
domestic goods contributes approxima tely 9% to total revenues. 
12. Unemployment was estimated at 18.5% in 2005, having reached as high as 40% in the 
aftermath of hurricane Ivan.  The reduction in the ra te can be explained by the significant increase in 
demand for construction workers to the extent that workers were imported from the Region to satisfy 
demand. 
13. Total Central Government debt at December 31,  2005 stood at EC$1.4 billion or 108.7% of 
GDP, comprising 85.5% external and 14.5% domestic.  This can be compared with a debt stock of 
EC$1.2 billion in 2004, comprising 72% external and 28% domestic. 
(ii) Trade and Sectoral Performance 
14. Grenada registered a deficit on the balance of payments on current account over the period 
1998 to 2005.  The services sector, mainly touris m, accounted for a net positive balance, while the 
visible balance of trade has been in deficit estimat ed at EC$488 million in 2003, the year prior to the 
Hurricane.  The current account balance improved in  2004, largely as a result of a substantial increase 
in remittances and insurance payments.  Current  transfers increased 232 per cent in 2004.  This 
contributed to the deficit on current account declin ing to EC$159.2 million.  The balance on current 
account again deteriorated in 2005, mainly as a resu lt of a further decline in exports of goods and 
services.  The overall balance of payments has been po sitive for most of the period, largely as a result 
of inflows of direct investment and capital transfers.  Negative overall balances were however recorded in 2003 and 2005. 
15. In determining the economy’s internal dynami c, it is necessary to focus on the factors 
underlying the current account.  It will be observed that the value of domestic exports has been in 
decline in the pre-hurricane period, during the years 2001 to 2003.  Agricultural exports declined from 
a value of EC$54.5 million in 2001 to EC$46.3 milli on in 2003.  Similarly, manufacturing exports 
indicated a significant decrease in value from EC$93.8 million in 2001 to EC$33.9 million in 2003. 
16. Needless to say, the hurricanes have adversel y affected Grenada’s e xport performance and its 
balance of payments.  Its major export crops –nutmeg,  cocoa, mace and bananas – as well as its main 
service export – tourism all contracted as a result of the hurricanes. 
TOURISM
 
17. The Hotel & Restaurant sector contracted in 2005.  Growth was estimated at negative 42.5% 
compared to a negative growth of 13.1% obtained in  2004.  Stay-over visitors decreased by 26.6%, 
from a level of 133,865 in 2004 to 98,244 in 2005.  The number of cruise ship  calls increased from 
249 in 2004 to 257 in 2005, reflecting an increase of  19.7% in cruise passengers from 229,800 in 2004 
to 275,080 in 2005. 
CONSTRUCTION  
18. The construction sector was the fastest growing sector in the aftermath of Hurricane Ivan.  
Growth in 2005 was estimated at 91.0%.  Retail sales  of building materials increased significantly by WT/TPR/G/190/GRD Trade Policy Review 
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114.1%.  Demand for cement and other materials remained strong, indicating that this sector would 
continue on its strong growth path in 2006 and 2007. 
MANUFACTURING  
19. The manufacturing sector consists of a variety of products, namely wheat flour, beer and 
brewery products, bottled water, clothing, paints and chemicals.  While small, the sector has 
contributed to the diversification of the economy.  However, it has been in decline and faces strong 
competition with the advent of the CSME and in  particular from neighbouring Trinidad, which has 
considerable cost advantages.  Grenada, together with the other least developed countries within the 
CSME, nevertheless, has negotiated a ten-year pe riod during which selected manufacturing industries 
will be given protection, thus providing them an opp ortunity to reorganize and be better able to cope 
with the full implementation of the CSME. 
20. Output in the Manufacturing sector was driven  by significant increases in the production of 
chemical and paints of 81.6% in response to the c onstruction boom.  The value of output for the other 
industries showed positive growth reflecting the fact that the economy is on a growth recovery path.  
This sector grew by 18.8% in real terms in 2005.  
21. The manufacturing sector in Grenada suffers from high unit costs of production arising from a 
significantly high proportion of imported inputs, high  overhead costs, the application of inappropriate 
technology and high cost of borrowing for initial in vestment and working capital.  The sector is been 
granted assistance in the form of duty free importa tion of inputs and corporate tax exemption. 
22. The National Export Strategy developed by the Government is aimed at facilitating 
international competitiveness and enhancing productivity and out put in the manufacturing sector. 
AGRICULTURE  
23. The Agricultural sector has been an important contributor to the Grenadian economy in terms 
of its contribution to Gross Domestic Product (8.7% in 2004), employment, income and foreign exchange earnings.  The sub-sector components indi cate that nutmeg made up 59% of agricultural 
exports in 2003, cocoa (7%), mace (7%) and fish ( 25%).  Agricultural exports have shown a decline 
in value over the period 2001 to 2005, thus contribu ting to the declining balance of trade over the 
same period.  Both price and quantity have s hown some volatility over the period 1998 to 2005. 
24. Given the importance of Agriculture to the ec onomy, Government policies in the agricultural 
sector are aimed at improving productivity, efficien cy and product quality.  The Government will 
concentrate on increasing production and value-added in the sector and ensuring rural development 
and food security. 
25. Following the severe devastation of the sector by Hurricanes Ivan and Emily in 2004 and 
2005 respectively, the Government of Grenada agre ed to an agricultural sector strategy and policy 
document titled ‘Modernizing Agriculture in Grenad a:  A National Policy and Strategy’.  The policy 
document highlights the need to provide an enabli ng environment that enhances commercial viability, 
facilitate private sector investment and enhance the commercial perspective throughout the sector. 
Given the major focus of rehabilitating the sector, the Government in its 2007 Budget, allocated 
14.3 per cent of the Capital Investment portfolio to the agricultural sector.  The nutmeg, cocoa and 
food crops sub-sectors remain important pillars  of the agricultural sector in Grenada.  
 Grenada WT/TPR/G/190/GRD 
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III. GOVERNMENT ECONOMIC REFORMS PROGRAMMES 2006-2008 
26. The Government of Grenada has undertaken a reform programme for the period 2006-2008 
entitled – “Enhancing Growth, Poverty Alleviation and Macroeconomic Stability”.  The main goals of 
the program are to:  promote sustained high economic growth by improving the climate for private 
investment;  restore fiscal and debt sustainability  through fiscal consolidation and reform;  reduce 
vulnerabilities by safeguarding the soundness of th e financial system;  and reduce poverty through 
more effective social developm ent programmes and safety nets. 
27. In order to achieve the above goals, the Gove rnment of Grenada will, during the period 2006-
2008, undertake the following reforms: 
• Debt Restructuring :  The Government has already undertak en and was successful in its debt 
restructuring involving its commercial creditors.  This debt restructuring exercise was concluded on November 15, 2005, resulting in substantial lowering of debt service payments 
for the next few years.  
• Investment Promotion
:  Steps will be taken to ensure th at Grenada Industrial Development 
Corporation (GIDC), our investment promotion agency, plays a more prominent and proactive role in promoting the country as an  attractive investment destination.  Higher 
private investment is critical to sustaining gr owth beyond 2007.  The Government is in the 
process of preparing a new Investment Code whic h will be legislated by the end of 2007.  
This Code will, inter alia, improve and clarify the legal system for investment in Grenada;  
outline investor rights and obligations;  detail i nvestment procedures and the means to access 
fiscal incentives. 
• Tax Incentives:
  The Government has initiated reforms to the present costly and complex 
system of tax incentives.  During 2000–02, revenue forgone from import duty and 
consumption tax concessions were nearly 11 per cent of GDP.  In 2003–04, Government took 
steps to curtail concessions, although these efforts were set back by Hurricane Ivan. 
The Government took the decision, effective, January 1, 2006, not to grant any new tax 
holidays or renew expiring ones;  incentives ther eafter will be provided in the form of tax 
write-offs for investment and after June 1, 2006 through accelerated depreciation with loss 
carry forward provisions.  The Government will also repeal the Invest ment Code Incentives 
and Qualified Enterprises Acts by the end of  2007.  These little used Acts give wide 
discretionary powers to grant tax concessions in many areas. 
• Public Sector Modernization Programme :  The Government will undertake reforms to 
enhance the performance appraisal system in th e civil service and improve the efficiency and 
quality of government services, including through commercialization.  With assistance from 
the World Bank, Government is undertaking a Public Sector Modernization Programme that 
will be implemente d during 2006-10. 
• Value Added Tax :  In order to reduce the Country’s reliance on international trade taxes, 
Government will introduce a value added tax ( VAT) in 2008.  Work on this had commenced 
before Hurricane Ivan struck in  2004.  The VAT will replace the ticket tax, motor vehicle tax 
and the existing general consumption tax that  applies on a relatively narrow base and has 
multiple and varying rates for domestic and im ported goods.  To broaden the base, the VAT 
will only incorporate standard exemptions (financ ial, education and health services, etc) with WT/TPR/G/190/GRD Trade Policy Review 
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a zero rate for exports.  The VAT and accompanying system of excises will be calibrated to 
be broadly revenue neutral. 
• National Export Strategy:   In 2006, the Trade and Industry Division, Ministry of Finance in 
collaboration with the Private Sector, other Government Agencies and Non-Governmental 
Organizations, developed a National Export Stra tegy (NES) for Grenada.  The objective of 
the NES is to improve export performance th rough improved national competitiveness, value 
addition, improved quality and reduc tion of the cost of production. 
28. The NES has identified five priori ty sectors.  These sectors include: 
 (1) Agriculture (nutmeg, fruits and vegetables and fish);  (2) Manufacturing (aerated beverages, wate r, alcoholic and non-alcoholic beverages, 
  processed nutmeg products, and light manufacturing (paints, roofing sheets, garments 
  and paper products); 
 (3) Tourism (attractions, yachting and cruise tourism);  (4) Services (education, professional, engi neering and engineering related services and 
  entertainment); 
 (5) Gifts and craft items. 
29. The implementation of this Strategy will requi re considerable resources – financial, human 
and institutional. 
• Simplification of Customs Procedures: 
 There will also be comprehensive reforms taken in 
simplifying customs clearance.  The envisaged reforms at the Customs Authority will seek to 
reduce the amount of paper work and time (cu rrently as much as 4 da ys) needed to clear 
imports through the Ports. 
• Dismantling Price Controls:   To foster the functioning of markets and efficient allocation of 
productive resources, the Ministry of Finance plans to abolish the small number of items 
under price controls with the exception of a few essential items such as rice, chicken, sugar, 
medicines, biscuits etc, for cost of living reasons. 
• Debt Management:   The Government will undertake step s to enhance our debt management 
capacity and transparency.  With assistance from the Commonwealth Secretariat and the 
ECCB, the Government intends to upgrade the debt recording systems.  The Government 
further intends to implement a debt management  strategy with a view to improving the debt 
profile and lowering vulnerabilities, including through retiring expensive debt with any 
financing surpluses that accrue and asset sales.   Due consideration has also been given to 
divesting remaining government assets and usi ng the proceeds to retire debt and approved 
capital expenditures subject to strict rate of retu rn analysis.  While most of the privatization 
and divestiture occurred in the 1990s, the Government retains small share holdings. 
• Supervision of the Financial Sector:   To strengthen the supervision of the banking sector, 
the Government passed a new Uniform Banking Act in August 2006, making Grenada one of 
the first countries in the Region to do so.  Ou r banks are now supervised under this new Act. 
To strengthen the supervision of the non-bank  financial sector which includes the insurance Grenada WT/TPR/G/190/GRD 
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sector, cooperatives, the offshore sector and m oney changers, a new Act was passed in 
Parliament in 2006 for the Regulation of Financial Institutions (GARFIN).  The Act 
establishes a single supervisory agency for the non-bank financial sector.  GARFIN became 
operational on February 1st, 2007. 
IV. TRADE POLICY AND INSTITUTIONAL FRAMEWORK 
(i) Grenada Trade Policy 
30. Grenada is actively engaged in the negotiation of multilateral, regional and bilateral trade 
agreements as a means of securing its trade interests and enhancing trade performance. 
31. The main objectives of Grenada’s trade policies are: 
 - To improve competitiveness in the manufacturing sector; 
 - Diversification of the agriculture sector;  - Development of the services sector to be internationally competitive; 
 - To gain greater market access for non-traditional sectors;  - Export led growth;  - To generate sustained economic growth and reduction of poverty. 
32. In order to achieve the above objectives, there will be strong public/private sector dialogue.  
In order to have more public/private sector invol vement in trade policy formulation, Cabinet has 
appointed a National Trade Policy Committee, comp rising representatives from the public sector, 
private sector and civil society, in a consultative mechanism which informs the development of trade 
policy and positions for trade negotiations. 
(ii) Institutional Framework 
33. The Ministry of Economic Development a nd Planning now has responsibility for the 
formulation of trade policy as it relates to inte rnational trade and for the negotiation of trade 
agreements.  A number of other Ministries and ag encies are also engaged in the formulation and 
implementation of overall trade policy namely th e Ministries of Finance, Tourism, Agriculture, 
Foreign Affairs, Legal Affairs, Health and the Envi ronment, Prime Minister’s Office and the Ministry 
of Works and Communications, and trade related agen cies such as the Grenada Bureau of Standards 
and the Grenada Industrial Development Cooperation. 
34. The Ministry of Economic Development and Planning also coordinates the work of the 
Cabinet appointed National Trade Policy Committ ee, which brings together representatives of 
Ministries and Departments with a bearing on trade policy, as well as representatives of the Private 
Sector and Civil Society, in a consultative mechan ism which informs the development of trade policy 
and adopt positions for trade negotiations. 
35. Grenada’s position for trade negotiations, agreed  to by the National Trade Policy Committee, 
is fed into the OECS Trade Negotiating Group (TNG), which comprises representatives from the Public and Private Sectors of OECS member states.   Positions of the TNG are fed into the various 
CARICOM Technical Working Groups and harm onized as much as possible into an overall 
CARICOM position.  Any position adopted by CARICO M in external negotiations must be approved 
by the Council for Trade and Economic Development (COTED). 
36. The Region’s trade position is collectively repr esented at external fora by the Caribbean 
Regional Negotiating Machinery (CRNM).  The Caribbean Regional Negotiating Machinery WT/TPR/G/190/GRD Trade Policy Review 
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(CRNM) was created by the Caribbean Communi ty (CARICOM) Governments to develop, 
coordinate and execute an overall negotiating stra tegy for various external trade negotiations in 
which the Region is involved.  The CRNM is responsible for developing and maintaining a cohesive 
and effective framework for the coordination and management of the Caribbean Region’s negotiating 
resources and expertise. 
V. CARICOM SINGLE MARKET AND ECONOMY, BILATERAL AND 
PREFERENTIAL TRADING ARRANGEMENTS 
37. Over the last decade Grenada’ s trade policy evolved as a result of its participation in 
international, regional and bi-lateral trade agreemen ts.  The change in trade policies reflected a shift 
from import substitution to a more liberalised trading system.  The erosion of trade preferences, 
including the trend towards liberalization of wo rld trade, the establishment of the WTO and the 
proliferation of regional trade agreements have a ll impacted on the formulation of Grenada’s trade 
policies. 
38. As a member of the Caribbean Community, Gren ada’s policy decisions on trade are taken in 
consideration of the country’s obligations  under the Revised Treaty of Chaguaramas. 
(i) CARICOM Single Market and Economy 
39. To further deepen the integration process,  CARICOM Governments decided in 1989 to 
establish the CARICOM Single Market and Economy (C SME).  The aim of the Single Market is the 
creation of a single economic space to facilitate the free movement of goods, services, capital and 
people across the Region for the efficient and co mpetitive production of goods and services.  The 
Revised Treaty also makes provision for the establishment of a Single Economy through 
harmonisation, coordination and convergence of macro-economic policies in a number of areas 
including, capital market integration and de velopment, investment and incentives policy 
harmonisation, fiscal policy harmonisation, corporat e tax harmonisation and monetary union.  It is 
expected that the Single Economy will be implemented by 2015. 
40. The Single Market was implemented on January 1st, 2006 and was formally signed onto by 
Jamaica, Barbados, Belize, Guyana, Suriname and Tr inidad and Tobago.  Grenada, together with the 
rest of the OECS sub-grouping, officially joined the Single Market arrangement on July 3, 2006. 
41. The expected benefits of the CSME include greater efficiency in both the private and public 
sectors, higher levels of domestic and foreign inv estment, increased employment, and growth of intra-
regional trade and of extra-regional exports. 
(ii) Bilateral Trade Agreements 
42. Grenada, together with its CARICOM partners , has negotiated Bilateral Trade Agreements 
with the following countries: Colombia, Venezuela,  the Dominican Republic, Cuba and Costa Rica. 
(iii) Preferential Arrangements 
(a) Cotonou/Economic Partnership Agreement - The Cotonou Agreement, which was signed 
in June 2000 between the African, Caribbean and Pacific (ACP) States and the European Union, 
provides for trade and economic development between th e EU and ACP countries.  It is also aimed at 
gradual and full integration of the ACP States into  the world economy by enhancing their production, 
supply and trading capacity, as well as their capac ity to attract investment.  This non-reciprocal 
trading arrangement will be replaced by WTO-compa tible Economic Partnershi p Agreements (EPAs).  Grenada WT/TPR/G/190/GRD 
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To facilitate the transition, current non-reciprocal  preferential trading arrangements will remain in 
place until the end of 2007.  The EPAs are to enter into force in January 2008. 
(b) Caribbean Basin Initiative (CBI ) - The Caribbean Basin Init iative (CBI) commenced in 
1984 under the Caribbean Basin and Economic Rec overy Act (CBERA) with amendments through 
the Caribbean Basin Trade Partnership Act (CB TPA).  This Agreement provides Grenada with 
preferential access to the market of the United St ates of America.  Benefits under the CBTPA are 
available until 2008.  CARICOM is exploring the possibility of negotiating with the U.S. a successor 
Agreement to CBI/CBTPA. 
(c) CARIBCAN - The CARIBCAN programme, which was introduced in 1986 covers trade, 
investment and industrial cooperation between Cana da and the Commonwealth Caribbean countries.  
This program provides Grenada’s exporters with  preferential access to the Canadian market. 
CARICOM is also exploring the possibility of ne gotiating with Canada a successor Agreement to 
CARIBCAN. 
(d) Free Trade Area of the Americas - the Government of Grenada also participated in the 
negotiations towards the establishment of the FTAA.   The FTAA, should it have been completed in 
2005, would have been the world’s largest free trade area with a population of over 800 million 
persons and a combined GDP of US$13 trillion.  Ne gotiations however stalled since 2004 and to date 
have not resumed. 
VI. WORLD TRADE ORGANIZATION 
(a) Implementation of the Uruguay Round Agreements 
43. Grenada became a WTO Member in February 1996.  Under the GATS, Grenada made initial 
commitments on tourism (hotel development), recr eational (entertainment and sporting services), 
communications (telecommunications and courier services) and financial services (reinsurance).  Grenada presented an offer in the extended WTO negotiations on telecommunications, but did not participate in the continued negotiations on financia l services.  Grenada subscribed to the Fourth 
Protocol on basic telecommunications on 4 December 1997, and the Agreement entered into force on 
February 5 1998.  Given the importance of a competitive and improved infrastructure in 
telecommunications, the Government of Grenada,  together with other OECS Member States, 
established the Eastern Caribbean Telecommunicati ons Authority (ECTEL), which has responsibility 
to promote market liberalization and competition in telecommunications of the contracting states.  As 
a result of this initiative there was an Agre ement between ECTEL member states and Cable & 
Wireless, the monopoly supplier of telecommunications , which paved the way for the liberalization of 
the telecommunications sector in the ECTEL states. 
44. Grenada bound all tariff lines upon its accession to the WTO in 1996.  Tariffs on products 
classified under HS headings 25-97, other than t hose included in Annex I of the WTO Agreement in 
Agriculture, were bound at a uniform rate of 50%.  Agricultural products (WTO definition) were 
bound at a ceiling level of 100%, with an implementa tion period of six years.  Some exceptions were 
bound at lower rates (i.e., boneless meat, soybean oil,  potato chips, breakfast cereals, cocoa butter, 
food preparations).  Some products were bound at zero rates, generally for products used as inputs 
(e.g. some seeds, inedible tallow, and soybean meal ).  A number of fruits (e.g., bananas, pineapples, 
citrus fruit, etc), as well as spices (e.g. cloves, nutmeg, mace, ginger, saffron, turmeric) were bound at 200%.  In 2003 Grenada successfully renegotiated the bound rates under Article XXVIII of GATT for 
the following tariff headings: WT/TPR/G/190/GRD Trade Policy Review 
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Tariff No. Description MFN Tariff as at 
1 January 2003 
0207149 Poultry Meat: Other cuts and offals of fowls frozen 100 
0207142 Fowl wings frozen 100 
0207141 Fowl backs and necks frozen 100 
0207271 Turkey backs, necks and wings 100 
020742 Other Turkey cuts and offals 100 
0207 Other poultry meat 100 
2203001 Beer 100 
2203002 Stout 100 
2202902 Malt 100 
45. The main reason for the renegotiation is the rene wed focus on the structural transformation of 
Grenada’s economy through, inter alia , an emphasis on the agricultural development of certain 
industries of critical importance to our food security and rural development objectives. 
46. To date however, the legislative actions nec essary to incorporate the WTO Agreement into 
national law in order to enable Grenada to comply  with its WTO obligations, remain incomplete.  
This situation was attributed to a number of fact ors including limited financial resources and technical 
personnel.  Notwithstanding the scarcity of tech nical and institutional resources, Grenada is 
committed to honouring its obligations under the WTO.   Grenada has started the process of amending 
its legislations so that the country can be WTO compliant. 
47. Work is currently ongoing to have the WTO Customs Valuation Agreement implemented in 
2008, together with the new value added tax. 
48. Few changes have been made to Grenada’s inte llectual property laws and agreements since its 
previous TPR.  Grenada is a member of the Worl d Intellectual Property Organization (WIPO) and a 
signatory to a number of international agreements  on intellectual property rights, which includes: 
Paris Convention for the Protection of Industrial property, Stockholm Text 1967;  Berne Convention 
for the Protection of Literary and Artistic Works 1 971;  and Patent Corporation Treaty 1970.  Grenada 
has not signed any additional treaties on intellectua l property since 2001.  Grenada’s national laws on 
intellectual property predate the WTO TRIPS Agreement.  To that end, the Ministry of Legal Affairs, 
with the assistance of WIPO, is working towards implementing WTO TRIPs compliant legislation.  
The Ministry has set the target date of 31 Dece mber 2007 for the enactment of new legislation. 
49. In the Memorandum of Economic Policies subm itted by the Government to the IMF, the 
Government indicated that steps will be taken to abolish price control items except on a few essential 
items. 
50. Grenada has notified the WTO that the Grenada Bu reau of Standards is its enquiry point and 
national notification authority as foreseen in the Ag reement on Technical Barriers to Trade.  Grenada 
adopted the WTO Code of Good Practice for the prepar ation, adoption and application of standards in 
1997.  During the period under review, Grenada also notified a number of technical regulations to the 
Committee on Technical Barriers to Trade (TBT) before their adoption.   In addition, Grenada notified 
to the Committee on Technical Barriers to Trade its requirements for labelling of pesticides and other 
toxic chemicals, domestic electrical appliances, and retail packages of cigarettes.1  Grenada notified to 
the TBT Committee its specification for four food -related products:  wet seasoning, brewery products, 
packaged water, and for the sampling, tests, and analysis of rice.2  Grenada has also notified its 
                                                      
1 WTO documents G/TBT/N/GRD/2, 30 April 2002 ;  G/TBT/N/GRD/3, 30 April 2002;  and 
G/TBT/N/GRD/8, 11 July 2003, respectively. 
2 WTO documents G/TBT/N/GRD/1, 30 April 20 02;  G/TBT/N/GRD/5, 11 July 2003;  
G/TBT/N/GRD/6, 11 July 2003;  and G/TBT/N/GRD/10, 5 July 2004. Grenada WT/TPR/G/190/GRD 
 Page 15 
 
 
specification for rum, for safety matches and its re quirements for the approval and licensing of child 
care homes.3 
51. Work is now ongoing to upgrade existing legislations such as the Plant Protection Act, 
Pesticides and Toxic Chemicals Act.  A new Food Safety Act will also be implemented.  These 
measures would ensure that Grenada continues to be compliant with its WTO SPS obligations. 
52. Grenada maintains a licensing system to re gulate the importation of certain goods.  The 
import licensing system is applied for regulating an d monitoring purposes and security purposes.  Its 
objective is in no way to restrict the quantity or value of imports. 
53. Grenada's import-licensing regime has been no tified to the WTO.  Grenada replied to the 
questionnaire on import licensing procedures in October 2006.4  The licensing regime is regulated by 
the Supplies Control Act CAP. 314 and the Supplies C ontrol Regulations (Section 3).  The regime is 
administered by the Ministry of Finance and Trade through its Consumer Affairs Division. 
54. Grenada has made an important effort con cerning notifications.  Although prior to 2001 
Grenada had made no notifications to the WTO, it has since submitted notifications in the following 
areas, see table below. 
Notifications made by Grenada to the WTO, Jan. 2001-Mar. 2007 
WTO Agreement Description Document  no. of most recent notification 
Anti-dumping (Art.18.5 and 
32.6) No laws relevant to the Agreement 
Notification of laws relevant to the Agreement G/ADP/N/1/GRD/1 15 November 2001 
G/ADP/N/1/GRD/2 5 April 2002 
Import Licensing  (Art. 1.4a 
and 8.2b) Notification of Import Licensing  Procedures 
Replies to Questionnaire on Import licensing Procedures G/LIC/N/1/GRD/1 10 April 2002 
G/LIC/N/3/GRD/119 October 2006 
Services Art. V7(A) GATS Notification as  part of CARICOM of the removal of 
restrictions to the right of establishment and the provision 
of services among members S/C/N/229 19 February 2003 
Subsidies and Countervailing 
Measures (SCM) Art. XVI.I 
GATT 1994 and Art. 25 SCM No specific subsidies with in the meaning of the 
Agreement  
New and full notification of programmes forming the 
basis of a request for extension G/SCM/N/71/GRD 15 November 2001 
G/SCM/N/71/GRD/Suppl.1 19 March 2002 
G/SCM/N/71/GRD/Suppl.2 12 November 
2002 
G/SCM/N/95/GRD 2 July 2003 G/SCM/N/99/GRD 2 July 2003 
SCM Art. 18.5 and 32 SCM Art. 27.4 No laws relevant to the Agreement 
Notification of laws relevant to the Agreement 
Request for extension of time  for the grant of certain 
subsidies G/SCM/N/1/GRD/1 15 November 2001 
G/SCM/N/1/GRD/2 5 April 2002 
G/SCM/N/74/GRD 11 January 2002 
G/SCM/N/74/GRD/Suppl.1 26 March 2002 G/SCM/N/114/GRD 1 July 2004 
G/SCM/N/123/GRD 8 July 2005 
G/SCM/N/128/GRD 8 July 2005 G/SCM/N/123/GRD/Corr.1 26 July 2005 
G/SCM/N/128/GRD/Corr.1 26 July 2005 
G/SCM/N/146/GRD 10 July 2006 
Table (cont'd)
                                                      
3 WTO documents G/TBT/N/GRD/9, 5 July 2004, G/TBT/N/GRD/7, 11 July 2003 and 
G/TBT/N/GRD/4, 10 July 2003, respectively. 
4 WTO document G/LIC/N/3/ GRD/1, 19 October 2006. WT/TPR/G/190/GRD Trade Policy Review 
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WTO Agreement Description Document  no. of most recent notification 
TBT (Art.10.6) Notification of guidelines for vari ous products G/TBT/N/GRD/1-10, 30 April 2002- 5 July 
2004 
TRIPS (Art.63.2) Notification of main dedicated  laws relating to IP IP/N/1/GRD/1 5 March 2002 
IP/N/1/GRD/P/2, IP/N/1/GRD/C/2, and 
IP/N/1/GRD/C/1 12 March 2002 
IP/N/1/GRD/P/1 IP/N/1/GRD/I/2, IP/N/1/GRD/I/1, and  IP/N/1/GRD/D/1, 
18 March 2002 
IP/N/1/GRD/I/3 17 July 2002 
 
Source: WTO Secretariat. 
(b) Grenada’s Position on the Current Round of Negotiations at the WTO 
55. Grenada remains committed to th e multilateral trading system and the liberalisation process. 
However, liberalisation must be at a pace and with levels of reductions which the economy can 
sustain. 
56. Grenada is an active participant in the cu rrent round of negotiations under the Doha 
Development Agenda. Grenada participates in the di scussions in Agriculture, Non Agriculture Market 
Access (NAMA), Trade in Services, Trade Faci litation, Implementation Issues and Trade and 
Development. 
57. The gravity of the difficulties faced by sma ll, vulnerable economies, as well as the clear 
mandate provided in the Doha Ministerial Declarati on and reaffirmed in the 2004 July Package, make 
it necessary for the WTO to agree on concrete respon ses to the specific problems identified by small, 
vulnerable economies in the Committee on Trade and De velopment and in negotiations in other WTO 
bodies. Within the WTO context, small vulnerable economies like Grenada should not be required to 
undertake similar obligations as the more advanced developing countries. 
58. Market Access (agriculture and non-agriculture ) - A major concern for Grenada as a 
consequence of trade liberalization is the loss of  government revenue. At present, approximately 55% 
of Grenada’s total revenue is obtained from taxes on international trade.  The benefits of trade 
liberalization can be outweighed in situations where Governments are dependent on these duties as a 
key component of government revenue.  A drastic reduction of government revenue from 
international trade taxes could have a negative eff ect on the fiscal balance and government’s ability to 
provide social services to its people. 
59. As a Small, Vulnerable Economy (SVE), Grenada should be required to undertake lower rates 
of reduction in its tariffs, and be  allowed longer transition periods , to help mitigate the negative 
effects which tariff liberalization can have on government revenue, small manufacturers and 
producers. 
60. In the market access negotiations there should al so be substantial improvement in market 
access for products of export inter ests to SVEs such as Grenada. 
61. Grenada should be given the right to designate  a number of tariff lines as special products 
based on food security, livelihood security and rural de velopment needs.  Added to this, given the 
importance of agriculture in achieving the above objectives, in the agriculture negotiations there 
should be in place a special safeguard  mechanism for agricultural products. 
62. Service  - In keeping with Grenada’s obligations under the GATS Agreement, the 
Government submitted its initial offer in services to the WTO.  This offer represents a commitment by Grenada WT/TPR/G/190/GRD 
 Page 17 
 
 
the Government to the WTO and to the Services negotiations.  The Government views the initial 
offer, within the context of Article XIX of th e GATS, as a reasonable and generous commitment to 
the goal of achieving progressively hi gher levels of liberalization. 
63. In addition to sectors scheduled, Grenada o ffers further commitments in the following 
Services Sectors: 
• Research and development services; 
• Other business services; 
• Educational Services; 
• Rental and leasing of yachts;  and 
• Transport services. 
64. The services’ negotiations component of the Doha Development Agenda (DDA) are 
significant for Grenada as the country seeks to dive rsify its economy.  Grenada wants to see more 
commitments especially by developed countries under  Mode 4, movement of natural persons, which 
will allow its services providers to temporarily move to provide services in those markets. 
65. Trade Facilitation - The Government of Gr enada welcomes the negotiations on Trade 
Facilitation to improve and clarify GATT Articles V,  VIII and X, which will result in the speedier 
release of goods through customs and eventually  result in a reduction in transaction costs. 
66. The negotiation of new disciplines in the ar ea of trade facilitation will result in new 
obligations to the Government of Grenada, a nd will require both financial and human capital. 
Accordingly, if Grenada is to effectively discharge  those additional obligations effectively, there is 
need for technical assistance to bu ild infrastructure in order to modernize Customs Administration. 
67. It is also imperative that there are concre te results in the negotiations on special and 
differential treatment and implementation-related issu es, which remain at the core of the development 
dimension of the Doha negotiations.  If the current  negotiations are to yield tangible benefits to 
Grenada, there is a need to ensure  that adequate policy space is main tained to enable the country to 
undertake liberalization commensurate with its development needs. 
68. Grenada welcomed the initiative announced at  the Hong Kong Ministerial Meeting in 
December 2005 on Aid for Trade.  The country firmly believes that Aid for Trade should involve: 
• Adjustment costs- cost of preference erosion,  cost of compliance with product standards, 
assistance with implementing WTO Agreements, cost of tariff revenue as a result of tariff reduction; 
• Supply side capacity building;  and 
• Trade-related infrastructure. 
69. Small vulnerable economies shoul d be offered meaningful packages under the programme to 
develop and expand their trade. 
VII. TECHNICAL ASSISTANCE 
70. Grenada as a small developing country faces tremendous problems in its implementation 
efforts.  Lack of human and financial resources have severely constrained the enforcement of our 
commitments. WT/TPR/G/190/GRD Trade Policy Review 
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71. The country welcomes the technical assistance it has received from the WTO.  In particular, 
Grenada has trade-related technical assistance needs in various areas, especially as it relates to the 
implementation of trade-related agreements, capacit y-building for participation in trade negotiations 
and the formulation of trade policy.  
72. Technical Assistance is also needed in the following areas: 
 - Technical support for agricultural research and training; 
 - Assistance in developing domestic infrastructure in the agriculture sector; 
 - Assistance in meeting SPS requirements in the export market;  - Support for the development of our Bureau of Standard to undertake testing; 
 - Customs Automation – specifically a system for Electronic Data Interchange which 
will allow importers to transmit documents and  information electronically prior to 
the importation of goods; 
 - Electronic Publication of Laws, Regulations and Procedures; 
 - Development and Implementati on of Risk Management System; 
 - Mechanism for Post-Clearance Audit;  - Assistance to develop Trade F acilitation National Needs Assessment. 
Table A1: Gross Domestic Product (GDP) 
Real Growth by Sectors 2003-2005 
 (%) 
 2003 2004 2005 EST 
Agriculture -2.44 -7.33 -38.10 
Mining & Quarrying 40.41 -15.28 8.64 
Manufacturing -2.45 -14.57 18.82 
Electricity and water 6.70 -7.89 4.70 
Construction 26.01 3.29 91.00 
Wholesale and Retail Trade 7.36 -19.85 27.54 
Hotels and restaurants 13.85 -13.07 -42.54 
Transport 7.47 6.30 23.72 
Communications 1.88 -12.00 30.74 
Banks and insurance 8.00 0.97 -1.53 
Real estate & Housing 1.51 -10.05 -4.31 
Government services 0.59 3.48 -6.38 
Other services 2.43 -15.69 2.98 
Less: imputed service charges 8.00 5.92 6.98 
Real GDP at factor cost 5.80 -6.90 12.09 
Source:  ECCB/Central Sta tistical Office. 
__________