RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/190/DMA 
1 October 2007  
 
(07-3990) 
Trade Policy Review Body Original:  English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
DOMINICA 
 
  
 
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 Dominica 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 Dominica. Dominica WT/TPR/G/190/DMA 
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CONTENTS 
 
  Page 
I. INTRODUCTION 5 
II. RECENT ECONOMIC PERFORMANCE 5 III. CHALLENGES FACING DOMINICA 6 
IV. GOVERNMENT’S MEDIUM TERM DEVELOPMENT STRATEGY 6 
V. SECTORAL DEVELOPMENTS AND PROGRAMMES 7 VI. THE ENABLING ENVIRONMENT AND THE CLIMATE FOR INVESTMENT 10 
VII. TRADE POLICY AND NATIONAL ECONOMIC DEVELOPMENT 11 
VIII. REGIONAL INTEGRATION 12 
IX. BILATERAL/HEMISPHERIC AND PREFERENTIAL TRADE ARRANGEMENTS 13 
X. MULTILATERAL TRADING SYSTEM - THE WTO 13 XI. DOMINICA AND THE AID FOR TRADE INITIATIVE 13 
XII. CONCLUSION  14 
  Dominica WT/TPR/G/190/DMA 
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I. INTRODUCTION 
1. Following the first trade policy review of Domi nica the trade agenda grew to become the 
most negotiation intensive that Dominica has faced.  During the period 2001 – 2006 Dominica became involved in trade negotiations at various le vels:  At the multilateral level in the World Trade 
Organisation (WTO);  at the hemispheric level for the creation of a Free Trade Area of the Americas 
(FTAA);  and under the African Caribbean Pacifi c (ACP) Group of States – European Union (EU) 
Cotonou Agreement for an Economic Partnership Ag reement.  There were also CARICOM bilateral 
negotiations with Costa Rica, Cuba and the Dominican Republic. 
2. There were continuing efforts to deepen the regional integration process at the Caribbean 
Community (CARICOM).  Dominica, through a numb er of legislative amendments implemented its 
programme for the removal of restrictions on the free movement of capital, services and certain categories of labour and investment.  Dominica de clared its compliance with the creation of the 
CARICOM Single Market and Economy (CSME) in June 2006.  The member states of the Organisation of Eastern Caribbean States (OECS) are also embarking on a road to deeper integration 
through the creation of an Economic Union. 
3. Dominica’s trade policy continued to focus on the development of the institutional and 
legislative framework to reposition Dominica’s trade sect or to reap the benefits of globalization and to 
overcome the numerous challenges that will emerge. 
4. For the medium term 2005-2010 Dominica has artic ulated a growth and development strategy 
that provides an overarching and strategic pers pective on the management of Dominica’s economy 
into the future.  It is a perspectiv e that is informed by fiscal and debt  parameters and considerations of 
prudential national ec onomic management. 
II. RECENT ECONOMIC PERFORMANCE 
5. During the period 2001 – 2003 Dominica e xperienced serious economic difficulties.  
Dominica experienced negative economic growth fo r three consecutive years – 2001 to 2003, with 
real gross domestic product declining by 4.2% in  2001, 5.1% in 2002 and 0.1% in 2003.  Estimated 
per capita incomes declined from EC$10,200 in 2000 to $9,900 in 2002, or by 3%.  The 
unemployment rate increased from 11.6% in the census year 2001 to about 14% in 2003 
(Govt estimate).  However, the decline bottomed out in 2003 and the economy grew by 3.5 % in 2004.  The growth in the economy continued in 2005 and 2006 at rates of 3.5% and 4% respectively. 
6. To combat the severe macro-economic and fi nancial difficulties, the Government of 
Dominica embarked on an Economic Stabilisation and Adjustment Programme introduced in the 
Budget address of June 2002.  The Government programme was supported by the International 
Monetary Fund (IMF) Stand-By Arrangement.  Th e region also responded to Dominica’s short-term 
funding needs.  Multi-lateral agencies and the friendly governments also  provided considerable 
technical assistance. 
7. In 2003 Government adopted a two-pronged a pproach to addressing the worsening economic 
difficulties.  First, it strengthened fiscal policy to  reduce the financing ga p and engender additional 
external financial support.  Second, once the fis cal efforts showed results, it embarked on a more 
comprehensive reform programme to foster growth  and move towards debt sustainability.  This 
programme has been supported by a three-year Poverty Reduction and Growth Facility Programme 
(PRGF) of the IMF. WT/TPR/G/190/DMA Trade Policy Review 
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8. Strong performance in the fiscal area permitted the removal of the adjustment measures that 
were causing most hardship to the public.  Im proved macro-economic cond itions and stronger tax 
administration, including the expansion of the ta x base resulted in higher-than-anticipated revenue 
collection.  Greater financial discipline and increased  attention to cash flow management resulted in 
more effective control of current expenditure. 
9. By mid-2003, the Government concluded that th e very high level of public debt constituted 
the most severe obstacle to Dominica’s growth prosp ects and fiscal sustainability.  Public debt had 
doubled over the preceding six years and was equiva lent to about 127% of GDP.  Debt servicing 
requirements were very heavy, representing about one- quarter of current revenue or 8% of GDP.  A 
combination of improved fiscal performance and debt restructuring has resulted in a decline of public 
debt to about 117% of GDP at mid-2005 and a reduc tion in the Government cash outlays for interest 
by almost 50% (from $34 million in 2003/04 to estimated $17.8 million estimated for 2005/06).  In addition, postponement of debt amortization for th e next several years and reduced risks associated 
with the need for debt rollover will r esult in higher net inflow of funds. 
III. CHALLENGES FACING DOMINICA 
10. The challenges facing Dominica are those relate d to accelerating growth in the economy that 
can be sustainable and pro-poor.  Largely, this m eans creating jobs that will activate the unemployed 
in the rural areas, where poverty is most pronounced  and absorb the youth who experience the highest 
rate of unemployment.  Investment in agriculture, community tourism, and human resource development (skills training etc), and improving en vironment for private sector activity offer best 
prospects in this endeavour. 
In that regard the main challenges facing Dominica include: 
• Continuing sound fiscal management to c onsolidate progress towards reducing the 
government’s financing requirements to sust ainable levels and reducing public sector 
indebtedness; 
• Reducing poverty levels through growth a nd employment generation, and improving the 
effectiveness of the social services and social assistance programmes; 
• Improving the law and order apparatus, including the effectiveness of the judicial and land 
administration systems in swift enforcement of property rights and contracts; 
• Improving the efficiency of institutions and simplifying procedures that make the enabling 
environment for private enterprise with a view to shortening the process and reducing the cost 
of establishing new and expanding existing businesses. 
IV. GOVERNMENT’S MEDIUM TERM DEVELOPMENT STRATEGY 
11. In 2006 the Government of Dominica complete d its medium term strategy for growth and 
poverty reduction over the next five years.  Th e Growth and Social Protection Strategy (GSPS) 
document provides the framework for Dominica’s economic and social policies over the medium 
term.  It sets out the macro-economic framework;  the growth strategy including the enabling 
environment for private enterprise and sectoral strate gies;  and poverty reduction and social protection 
programmes.  It also provides for the mon itoring and evaluation of the progress made in 
implementing the strategy on an annual basis. 
12. Priorities set in this document make poverty reduction the direct focus of the Government’s 
economic and social policy.  Government regards the pursuit of sustained strong economic growth to 
be the main strategy to alleviate poverty. Dominica WT/TPR/G/190/DMA 
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The GSPS seeks to foster growth in th e economy by building on four pillars: 
1. Fiscal policy and administrative reform; 
2. Enhancing the investment climate for private enterprise development; 3. Sectoral strategies for growth;  and 
4. Strategies for poverty reduction and social protection. 
The main objectives of the GSPS include: 
• Reduction in unemployment and underemployment. 
• The attainment of sustainable growth and development. 
• A reduction in vulnerability to shocks  – economic and natural disasters. 
• An improvement in international competitiveness and export performance. 
• An improvement in the effectiveness of social protection programmes. 
V. SECTORAL DEVELOPMENTS AND PROGRAMMES 
13. The attainment of sustained economic growth over the medium term will be based on 
increased levels of activities in all sectors, in particular tourism, agriculture, manufacturing and 
energy.  Improving export performance is cr itical for growth and increasing international 
competitiveness is a major challenge if Dominica is  to succeed in the global economic environment.  
Eco-tourism, agro-industries, niche-focused agri culture, water, and the quarrying of sand and 
aggregate are some of the natural resource based industries which Dominica enjoys some comparative 
advantage and have great potential to generate employment and income growth opportunities. 
(a) Agriculture 
14. The agricultural sector continues to make a significant contribution to GDP of Dominica 
(17% of GDP).  The level of contribution to th e national economy has, however, been falling steadily 
over the last decade.  The sector continues to operate  in a very challenging local and global climate.  
Locally challenges include relatively high cost of production;  low labour productivity;  an aging 
farmer population;  low investment;  and lack of proper land use planning.  Globally the sector faces 
preference erosion and increased competition in traditional markets. 
15. The objectives for the agricultural sector for the medium term are to achieve sustained growth 
in production and exports, to fu rther diversification of the sector  and to increase employment and 
incomes.  To achieve these objectives Governme nt has provided significant investment in 
infrastructure such as acc ess roads, irrigation, packing houses, testing facilities and plant tissue 
cultivation.  The capacity to provide critical exte nsion services to the farmers has been improved.  
There have also been activities to facilitate new i nvestment in the sector;  to infuse a more business 
oriented approach among farmers;  and to attract young persons through a Young Farmers 
Programme. 
16. The transfer of modern agricultural technologies is also a strong feature of the development 
objectives for the agricultural sector.  Greater empha sis is being placed on research and development 
through the construction of a molecular laboratory and a certified citrus propagation facility with the 
aim of producing new crops and disease resistant seedlings. 
17. A National Symposium on Agriculture was held  in March 2007 which identified several 
opportunities for investment in the sector.  A compre hensive agricultural sector policy is in the final 
stages of preparation. WT/TPR/G/190/DMA Trade Policy Review 
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(b) Tourism 
18. Government has identified tourism as having the potential for the most rapid growth in the 
economy because of Dominica’s comparative advantag es and the current low stage of the sector’s 
development. 
19. A Tourism Master Plan for the sector has been  completed.  This is based on a Tourism 2010 
Policy document which was completed in 2005.  This  plan will underpin the strategic actions that 
Government will seek to implement into the medi um-term with a view to making a profound positive 
impact on the sector. 
These strategic actions would be geared towards achieving the following: 
1. providing adequate resources for a more  “competitive destination management and 
 marketing” and developing the tourism infrastructure; 2. Effectively positioning the destination and its  product to meet the demands of its specialty 
 market; 3. Successfully incorporating local community involvement in tourism and fostering  opportunities for local entrepreneurs; 
4. Overcoming constraints to investment in th e sector, such as limited air access and high energy 
 costs. 
20. A number of activities have already been initiate d towards achieving the above targets.  An 
eco-tourism development programme is at the final stages of implementation.  Under this programme 
over $18.9m was spent on strategic marketing, enhanc ing natural sites and attractions, implementation 
of several community based tourism projects, renovati on of the main ferry terminal and restoration of 
historical sites. 
21. A major re-branding and repositioning exercise for destination Dominica has been initiated 
which includes a new logo and brand for the island.  A ttention is also being paid to the enforcement of 
standards and quality service within the accommodati on sector aimed at increasing the total number 
of quality rooms available for stay-over visitors.  Emphasis is being placed on development of sites 
and facilities.  In order to ensure that the be nefits of tourism spread throughout the society 
Government has initiated community based touris m.  Under the initiative several communities are 
receiving financial support to for the implementation of projects. 
22. On April 2007 Parliament approved a Discove r Dominica Act which created the Discover 
Dominica Authority.  This new authority is charge d with tourism marketing and product development.  
(c) Manufacturing 
23. The development of agro-industries is a major part of the development of the manufacturing 
sector.  An Agro-Processing Sector Policy was form ulated in July 2002 and a number of specific 
measures were identified for boosting agro -processing output.  Agro-processing provides good 
opportunities for employment generation during the me dium-term since it is a natural resource based 
industry that can be internationally competitive, a nd there are good market prospects for agro-industry 
products (tropical fruits and vegetables) in Nort h America, Europe and in the CARICOM region. 
Agro-processing can play an important role in reduci ng post-harvest losses in ag riculture that are very 
significant for fruit and vegetables and which adver sely affect returns and incomes in agriculture. 
Agro-industries are also amenable to  small-scale cottage type industr ial development.  Despite these 
advantages, agro-processors face ma ny difficulties:  the high cost of sourcing agricultural raw 
materials in Dominica;  the obtaining of capital for development, particularly for small-scale Dominica WT/TPR/G/190/DMA 
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enterprises;  transportation and marketing problems, including lack of market intelligence;  and 
inadequate institutional support. 
24. Government’s strategy towards agro-processing is broadly the same as for the manufacturing 
sector as a whole – to reduce barriers to growth and create an environment that will enhance the 
performance and competitiveness of manufacturing fi rms, and contribute to efforts to attract 
investment. 
The strategy will be achieved by: 
• Developing a private sector strategy for fac ilitating development of manufacturing, including 
the creation of a business incubator service; 
• Improving the operating environment from a policy and regulatory perspective, including the 
streamlining of business-related bureaucratic processes; 
• Improving the competitiveness of its economic infrastructure, particularly in regard to 
transportation and electricity; 
• Ensuring that the education system prepares indi viduals to make effective contributions to a 
modern, productive workforce; 
• Assisting small firms with market research  and intelligence through national and regional 
institutions;  and 
• Working with the private sector organization to wards improved and institutionalized relations 
between the private sector and Government. 
(d) Energy 
25. Dominica’s energy sector faces immense challenges amidst unstable and speculative global 
fuel prices.  Its small consumer and commercial base results in diseconomies of scale and very high operating energy costs.  The world oil situation w ith its rising and fluctuating prices has been felt 
most acutely in Dominica and threatens to affect the rate of inflation by its impact on the cost of living.  The continuance of high fuel prices during the medium-term could adversely affect 
competitiveness and growth in the economy.  The polic y of the Government of the Commonwealth of 
Dominica (GOCD) for the medium term for dealing with this issue involves taking steps to increase 
energy security and to seek to reduce the depe ndence on petroleum produ cts by exploring and 
utilizing alternative sources of energy. 
26. In 2005 Dominica signed the Energy Cooperation Agreement PetroCaribe with Venezuela.  
The fundamental objective of PetroCaribe, is to c ontribute to energy security.  The construction of a 
5.3 acre Oil Derivative Terminal, a Marine Docki ng Base and piping distribution network for refined 
petroleum import, has already commenced, and w ill be ready for use by October-November of 2007.  
27. The project is estimated to cost approxima tely US$18.0 million, with the bulk of the 
financing provided by the Bolivarian Republic of Venezuela. 
28. Dominica’s long term goal in this sector are to  explore and utilize rene wable and alternative 
energy potential.  Several options  have been and are being explored .  This includes the generation of 
hydroelectricity.  Dominica’s rugged terrain, high  rainfall and many rivers makes it well endowed for 
harnessing hydroelectric energy.  A hydroelectric plant already exists on the island while several studies have been conducted on the expansion of h ydroelectric generation.  Another option is geo-
thermal energy.  Technical studies of potential ge othermal development s ites have been conducted 
and a prospective site for geotherm al exploration has been identified.   Preliminary studies have also 
been undertaken to determine the economic feasibilit y of laying submarine cables from Dominica to WT/TPR/G/190/DMA Trade Policy Review 
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the two neighbouring French islands for the transmi ssion of electricity.  These studies have so far 
shown that the exportation of power is economically  viable, once the availabi lity of the geothermal 
resource is confirmed. 
29. The GOCD has also looked at wind and solar energy as other alternative sources.  
Government has facilitated the electricity company with feasibility studies for the development of a 
wind farm, with funding from the OAS.  The use of solar power in housing and commercial building has also been explored 
VI. THE ENABLING ENVIRONMENT AND THE CLIMATE FOR INVESTMENT 
30. The Government of Dominica has made improving the investment climate a priority of its 
medium term Growth and Social Protection Strategy.  Administrative transparency and efficiency that 
affect the time and cost of doing business have b een identified as the essential aspects of investment 
climate that need to be addressed. 
31. A comprehensive analysis of Dominica’s i nvestment climate conducted on behalf of 
Government by a team sponsored by the USAID found that there were four overarching issues that required governmental action.  Accordingly Government will take action accordingly to:  
• Create more comprehensive guidelines for busin ess activity – to include information on 
critical procedures, including the process of r eceiving incentives, and on the whole finding 
how to start and operate a legal business; 
• Improve the availability of legislation – making copies of important legislation more easily 
available; 
• Establish timeframes for government decisions , on the basis of a process reengineering 
exercise that will identify constraints and bottlenecks;  and 
• Improve dialogue between the public and private sectors with a view to increasing mutual 
understanding and bene ficial engagement. 
32. Efforts to improve the investment climate in clude the reform of the Customs and Excise 
Division.  The reform of Customs hinges on the introduction and use of trade facilitation software, 
ASYCUDA World.  The entire system is expected  to include software, hardware, specialised 
technical assistance from UNCTAD, training of staff, employment of new staff with IT specialised skills and upgrading of existing infrastructure.  Another area of reform is land tenure and 
administration.  Government has undertaken instituti onal and administrative review of all departments 
involved in land administration and planning with a view to streamlining and modernising their 
operations. 
33. A key objective of Dominica’s national devel opment strategy is to improve the enabling 
environment for private enterprise.  To improve  the environment for private enterprise, the 
Government intends to:  
• Streamline regulations and procedures relating to private sector activity; 
• Strengthen public service delivery mechanism; 
• Improve the judicial and land administration systems;  and 
• Encourage the private sector to identify and articulate issues and proposals for other 
improvements in business environment.  
 Dominica WT/TPR/G/190/DMA 
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VII. TRADE POLICY AND NATIONAL ECONOMIC DEVELOPMENT 
(a) Goals and Objectives 
34. The main goal of Dominica’s trade policy is to  transform Dominica’s economy into an export 
oriented economy that is open, resilient and compe titive and that is fully integrated into the global 
economy. 
Some of the key objectives which will be pursued are: 
• Increased efficiency, productivity and competitiveness of local production; 
• Diversification of the range of export-orie nted products to encompass traditional and non-
traditional manufactured and agricultural goods; 
• Diversification of the range of markets to which Dominica’s goods are exported; 
• Increased output and exports from the services sector in Dominica. 
(b) Export Development 35. Export development is a key objective of Domini ca’s trade policy.  To achieve this objective 
strategies and measures will be formulated a nd implemented to increase the efficiency and 
productivity of the productive sectors.  These strate gies and measures need to address the following: 
• The production of high quality goods and services at competitive prices; 
• The modernization of produc tion facilities and processes; 
• The introduction of new and innovative products; 
• The application of modern management practi ces in production, marketing, finance, human 
resource development, and industrial relations;  and 
• Application of state of the art technological processes. 
36. Dominica in collaboration with the Commonwealth Secretariat and International Trade Centre 
(ITC) has initiated a process to design and implemen t a national export strategy for Dominica.  This 
strategy will be drawn up and articulated in a na tional strategy document to be actively implemented 
over the medium term.  The objectives of such a strategy would be two-fold: 
• Enhanced international competitiveness; 
• Export development by increasing the capacity and competence of local producers;  
increasing the local content of exported goods;  and broadening the export base. 
37. A national core team made of key stakeholders  will be established to formulate the strategy. 
(c) Institutional Framework 
38. The Ministry of Foreign Affairs, Trade and La bour (FATL) has the lead responsibility for the 
formulation and implementation of trade policy in Dominica.  Managing Dominica’s trade policy to address the trade agenda requires the active involveme nt and participation of all the stakeholders.  
This includes the political directorate in Cabinet;  other Government Ministries, Departments and Agencies;  various non-state actors;  and the media. 
39. In 2004, Cabinet advised approved the creation of a framework for trade policy management 
in Dominica.  This included the establishment of a Cabinet Subcommittee on Trade and Development, WT/TPR/G/190/DMA Trade Policy Review 
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a Trade Policy Coordinating Committee (TPCC) a nd a National Trade Policy Advisory Committee 
(NTPAC).  The Ministry is currently in the pro cess of reconstituting and revitalising the framework. 
VIII.  REGIONAL INTEGRATION 
(a) The OECS Economic Union 40. For Dominica, the OECS integration process is  the foundation on which the wider regional 
integration process is based. 
41. The OECS Member States have more in common in terms of the structure of their economies, 
the constraints and limitations faced and the opportu nities and challenges that are laid before them. 
42. Dominica remains committed to the goals and id eals of the OECS which includes the building 
of institutions at the OECS level, the provision of  shared services, and the growth in functional 
cooperation. 
43. OECS Heads of Government have agreed to  create an OECS Economic Union through the 
revision of the existing treaty and deeper harmonisati on of policies and measures.  The draft treaty has 
been approved for consultation with all stakeholders at the national le vel over a period of one year.  It 
is expected that the revised treaty will be signed in 2008. 
(b) The CARICOM Single Market and Economy (CSME) 
44. As a small island developing state facing m onumental challenges in the international 
economic environment, the CSME together with th e OECS Economic Union offers the best option for 
Dominica and the region for the consolidation of limited resources, productive capacity and 
negotiating capital.  Dominica’s policy towards the CSME  is to use it first as a catalyst for the growth 
and development of the productive sectors   particularly the services sectors and secondly as a 
springboard for launching exports beyond the region a nd therefore further the integration of Dominica 
into the global economy. 
45. Since the last review CARICOM has made significant advancements in the establishment of 
the CSME and Dominica has actively participated  in the process and will continue to do so. 
46. Dominica has removed all unauthorized restrictions on the free movement of goods, services, 
capital, the rights of establishment and the free movement of approved categories of CARICOM 
nationals.  In December 2005 Dominica amended seve n pieces of legislation to remove restrictions in 
accordance with the programme for removal of r estrictions.  Dominica also enacted the Revised 
Treaty of CARICOM into domestic law.  Dominica declared CARICOM Single Market compliance on June 30, 2006 at the last CARICOM Heads of Government Meeting. 
47. As one of the Less Developed Countries (LDCs) of CARICOM, Dominica attaches 
significant importance to Chapter VII of the Revised Treaty of Chaguaramas.  Chapter Seven establishes a regime for disadvantaged countries regions  and sectors.  It is critically important for the 
success of the CSME project that the implications  of varying levels of economic deve lopment among 
the CARICOM Member States are recognised an d measures are taken to address any negative 
consequences that could arise from the remova l of restrictions among those countries.  The 
operationalisation of Chapter Seven of the Treaty is  therefore a vital requirement if Dominica is to 
benefit from participation in the CSME.  A key com ponent of the operationalisation of Chapter VII is 
the creation the Regional Development Fund. Dominica WT/TPR/G/190/DMA 
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IX. BILATERAL/HEMISPHERIC AND PREF ERENTIAL TRADE ARRANGEMENTS 
(a) CARICOM Bilateral Arrangements 
48. As a CARICOM less developed country Do minica has not had to reciprocate trade 
preferences in the various CARICOM bilateral trad e agreements.  Dominica has however sought to 
ensure that regional markets for Dominican expor ts are preserved in these bilateral agreements. 
(b) CARIFORUM-EU Economic Pa rtnership Agreement (EPA) 
49. The negotiations between CARIFORUM and the EU for an Economic Partnership Agreement 
are a major priority area for Dominica on the trad e policy agenda.  For Dominica the development 
dimension is one of the most important elemen ts of the EPA.  Among the key objectives which 
Dominica is pursuing are the attainment of deve lopment that is socially and environmentally 
sustainable and the facilitation of structural tr ansformation which would reduce the acute economic 
vulnerability and bring about a level of intern ational competitiveness leading to sustainable 
development. 
X. MULTILATERAL TRADING SYSTEM - THE WTO 
50. Dominica’s participation in the multilateral pr ocess of the World Trade Organisation both in 
its normal ongoing work and in the Doha negotiations  has been constrained by lack of physical 
presence in Geneva and a limited human resource base in capital.  The OECS Technical Mission 
established in Geneva has enabled an improvement  in the level of participation by providing 
Dominica with documentation, reports and first hand  information on the developments taking place in 
Geneva.  It has provided Dominica with a mean s to voice its concerns in the negotiations. 
51. With regards to the ongoing negotiations, balanc ing the development deficit of the Uruguay 
Round Negotiations remains the single most importa nt objective for Dominica of the aptly named 
Doha Development Agenda.  At the conclusion of this Round we should be able to say without any 
reservations that the development aspirations of de veloping countries and more particularly the small, 
vulnerable economies, the least developed countri es and landlocked countries have been advanced. 
52. As a small developing state Dominica faces ma ny constraints and disadvantages which make 
it very difficult and sometimes almost impossible to e ffectively trade.  For this reason it is imperative 
that if the development dimension is to have any re al meaning in this round of negotiations, specific, 
concrete, workable responses must be devel oped and implemented to address the special 
vulnerabilities and disadvantages of such countries to en sure that they are fully integrated into the 
multilateral trading system. 
XI. DOMINICA AND THE AID FOR TRADE INITIATIVE 
53. Paragraph 57 of the Hong Kong Ministerial Decl aration lays down the broad framework for 
the new Aid for Trade mechanism under the WTO.  
“………. Aid for Trade should aim to help developing co untries, particularly LDCs, to build the 
supply-side capacity and trade related infrastructure t hat they need to assist them to implement and 
benefit from WTO Agreements and more broadly to ex pand their trade.  Aid for Trade cannot be a 
substitute for the development benefits that will result from a successful conclusion to the DDA, 
particularly on market access.  However, it can be a valuable complement to the DDA” 
 WT/TPR/G/190/DMA Trade Policy Review 
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54. As a small vulnerable economy Dominica is par ticularly interested in the prospects of 
potential benefits to be derived from the new AFT initiative in the WTO.  Technical and financial 
assistance for trade related capacity building can play a very critical role in assisting small developing 
countries in participating in the global economy.  Dominica sees the AFT Initiative as an avenue to 
obtain necessary assistance to build its capacity to produce and export internationally competitive 
goods and services.  This will contribute to the goals  of greater insertion into the global economy and 
increased national wealth and development. 
55. Dominica supports the OECS view that there should be at least four components to Aid for 
Trade. 
(a) Policy support, such that  agencies including the  IMF/World Bank can provide advice to 
governments upon request, for the mainstreaming of tr ade into their domestic policies such that export 
in their competitive areas can be enhanced; 
(b) Infrastructural financing and support (“hard ” technical assistance), such as improving roads, 
ports, airports, public utilities, trade-related laws, and regulations (all “hard” infrastructure that can be 
used to enhance trade); 
(c) Trade Adjustment financing for severance of workers in industries that close due to trade 
liberalisation.  Donors could also help developing countries that so request it to set-up unemployment 
insurance programmes; 
(d) Supply side support, such as assistance (financia l and technical) to firms and small industries 
to build the capacity to become globally competitive.   This should include technical and financial 
assistance to set up programmes that increase investment  in research, education, and worker training. 
56. In addition to the above the Aid for Trade initiative should be aligned with Dominica’s 
priority areas as identified in the Medium Term Gr owth and Social Protection Strategy (GSPS) to be 
effective. 
57. There also needs to be a pragmatic and concre te legal and institutional framework to ensure 
that the AFT agenda has a strong institutional back bo ne.  This should includ e an effective monitoring 
and enforcement mechanism in order to ensure that AFT plays a complementary role in the 
development of beneficiary countries and will not be  used to compromise on the real developmental 
issues of the Doha Round, such as preference eros ion, effective special a nd differential treatment 
provisions and adequate flexibility for small developing countries. 
XII. CONCLUSION 
58. The current international economic environment poses many threats to the economic survival 
of Dominica.  It is characterised by an expanding and increasingly complex trade agenda, increasing emphasis on trade liberalisation and strengthening the multilateral trading systems, arrangements and 
disciplines.  It is also characterised by increasing globalisation of the world economy and 
configuration into large regiona l economic groupings or blocs. 
59. The implications of the new internati onal economic environment for Dominica are 
significant.  Dominica’s limited resources have not allowed it to respond effectively or deal 
adequately with the current trade agenda.  There is  a movement away from non-reciprocal preferential 
trade arrangements.  The successive challenges to the EU LOMÉ Agreements with the ACP and its 
banana and sugar regime are testament to this.  The delay in obtaining waivers for the U.S. and 
Canada’s preferential schemes (CBI and CARIBCAN respectively) are also examples.  These are Dominica WT/TPR/G/190/DMA 
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being replaced by “WTO compatible” reciprocal  arrangements in the form of the Economic 
Partnership Agreements (EPAs) between the EU and the ACP. 
60. There are opportunities however to be found for Dominica in the same environment in which 
all the above developments are taking place.  Th e OECS Economic Union and the CSME offers the 
opportunity for Dominica and the rest of the OECS and CARICOM to consolidate their strengths and 
resources and to chart a common development path.  Concluding an EPA with the EU that is development centred and provides adequate develo pment support to address trade capacity needs will 
enable Dominica to expand trade to the EU and attract investment from the EU. 
61. Dominica continues to support a multilateral tr ading system that is rules based and 
transparent.  However Dominica also  continues to remain insistent that the World Trade Organisation 
needs to acknowledge and recognise the reality of the landscape that is its Membership.  It is not a 
plain.  There are mountains, hills and valleys signi fying the varying levels of development.  Rules 
therefore do not affect all in the same way.  Hence th ere is need for variable geometry in the approach 
to trade liberalisation.  And for Dominica that mean s that the interest of the smallest and weakest 
members of the system should be placed at the centre of ongoing and future reform processes. 
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