WORLD  TRADE  
ORGANIZATION  WT/TPR/S/190/VCT/Rev.1 
21 April 2008  
 
(08-1884) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
SAINT VINCENT AND THE GRENADINES 
 
Revision 
 
 
 
 
This report, prepared for the second Trad e Policy Review of Saint Vincent and 
the Grenadines, has been drawn up by the WTO Secretariat on its own 
responsibility.  The Secretariat has, as required by the Agreement establishing 
the Trade Policy Review Mechanism (A nnex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from 
Saint Vincent and the Grenadines on its trade policies and practices. 
 
Any technical questions arising from this report may be addressed to 
Mr. Angelo Silvy (tel. 022 739 5249), and Ms. Katie Waters (tel. 022 739 5067). 
 
Document WT/TPR/G/190/VCT contains the policy statement submitted by 
Saint Vincent and the Grenadines. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
 session of the meeting of the Trade Policy Review Body on Saint Vincent and the 
 Grenadines. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page iii 
 
 
CONTENTS 
 Page 
I. ECONOMIC ENVIRONMENT 1 
 (1) S TRUCTURE OF THE ECONOMY , OUTPUT , AND EMPLOYMENT  1 
 (2) F ISCAL POLICY  3 
 (3) M ONETARY AND EXCHANGE RATE POLICY  3 
 (4) B ALANCE OF PAYMENTS , TRADE AND INVESTMENT FLOWS  4 
 (5) O UTLOOK  6 
II. TRADE AND INVESTMENT POLICY FRAMEWORK 6 
 (1) G ENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK  6 
 (2) T RADE POLICY FORMULATION AND IMPLEMENTATION  7 
 (3) F OREIGN INVESTMENT REGIME  8 
 (4) I NTERNATIONAL RELATIONS  9 
 (i) World Trade Organization 9 
 (ii) Preferential agreements and arrangements 10 
III. TRADE POLICIES AND PRACTICES BY MEASURE 11 
 (1) M EASURES DIRECTLY AFFECTING IMPORTS  11 
 (i) Customs procedures, documentation, and registration 11 
 (ii) Customs valuation 11 
 (iii) Rules of origin 12 
 (iv) Tariffs, and other charges on imports 12  (v) Other levies and charges 16 
 (vi) Import prohibitions, restrictions, and licensing 18 
 (vii) Contingency measures 20  (viii) Technical regulations and standards 20 
 (ix) Sanitary and phytosanitary measures 22 
 (2) M
EASURES DIRECTLY AFFECTING EXPORTS  23 
 (i) Documentation, export taxes, and restrictions 23 
 (ii) Export subsidies, financing, support, and promotion 24 
 (3) M EASURES AFFECTING PRODUCTION AND TRADE  26 
 (i) Legal framework for business and taxation 26 
 (ii) Incentives and assistance 27 
 (iii) Competition policy and regulatory issues 27  (iv) Government procurement 30 
 (v) Intellectual property rights 30 
IV. TRADE POLICIES BY SECTOR 33 
 (1) A
GRICULTURE  33 
 (2) M ANUFACTURING  35 
 (3) S ERVICES  36 
  ( i )  M a i n  f e a t u r e s         3 6  
  (ii) Telecommunications       36   (iii) Financial services        38 
  ( i v )  A i r  t r a n s p o r t         4 2  
  ( v )  M a r i t i m e  t r a n s p o r t        4 3  WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page iv 
 
 
 Page 
 
  ( v i )  T o u r i s m          4 5  
  ( v i i )  P r o f e s s i o n a l  s e r v i c e s        4 6    (viii) Other offshore services       47 
REFERENCES   49 
APPENDIX TABLES  51 
 
TABLES 
 
I. ECONOMIC ENVIRONMENT 
 
I.1 Basic macroeconomic indicators, 2000-06       1 I.2 Balance of payments, 2001-06        4 
 
II. TRADE AND INVESTMENT POLICY FRAMEWORK  
II.1 Notifications to the WTO, 2002-07        10 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 III.1 Structure of the tariff, 2006        13 
III.2 Summary analysis of the MFN tariff, 2006       13 
III.3 Revenue forgone on concessional imports, 2001-06      16 III.4 VAT exemptions and zero-rated supplies, 2007      17  
III.5 Excise taxes that entered into effect 1 May 2007      18 
III.6 Import licensing requirements        19 III.7 Membership in international instruments on intellectual property rights, 2007   31 
III.8 Trade marks and patents issued by St. Vincent and the Grenadines, 2001-06   31 
 IV. TRADE POLICIES BY SECTOR 
 
IV.1 Telecommunications statistics, 2002-06       37 IV.2 Cargo transported by air, 2001-06        42 
IV.3 Cargo transported by sea, 2001-06        44 
 
APPENDIX TABLES 
 
I. ECONOMIC ENVIRONMENT 
 
AI.1 Merchandise exports and re-exports by groups of products, 2000-06    53 AI.2 Merchandise imports by groups of products, 2000-06      54 
AI.3 Merchandise exports and re-exports by trading partner, 2000-06    55 
AI.4 Merchandise imports by trading partner, 2000-06      56  
 Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
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I. ECONOMIC ENVIRONMENT 
(1) STRUCTURE OF THE ECONOMY , OUTPUT , AND EMPLOYMENT  
1. During the period under review, growth in St. Vincent and the Grenadines has been mixed, 
with alternating years of fast and slow growth .  The economy contracted in 2001, but growth 
accelerated between 2002 and 2004;  there was a slow down in 2005, mainly caused by a contraction 
in agricultural production and slow growth in ma nufacturing.  Average annual GDP growth rate 
(market prices) between 2000 and 2006 was 4% at mark et prices (3.4% at basic prices) (Table I.1).  
During 2006, economic activity accelerated, driven by  the construction and tourism, but also by a 
recovery of manufacturing and agriculture. 
2. Private consumption was sustained during 200 1-06, supporting GDP growth.  Private and 
public consumption accounted for some 83% of GD P in 2006.  Gross capital formation strengthened 
during the review period, supported by the strong perf ormance of construction, but also by investment 
in machinery and equipment, particularly over 200 3-06.  Gross capital formation accounts for almost 
a third of GDP.  The programme to build infrast ructure for the Cricket World Cup and thereafter 
boosted growth during the period under review. 
Table I.1  
Basic macroeconomic indicators, 2000-06  
(Per cent, unless otherwise specified) 
 2000 2001 2002 2003 2004 2005 2006
Real sector 
Nominal GDP at market prices (EC$ million) 904.6 932.1 986.1 1,032.1 1,118.0 1,201.8 1,353.8
Nominal GDP at basic prices EC$ million) 761.8 776.7 817.2 852.3 928.4 967.8 1,094.0
Real GDP at basic prices (EC$ million) 612.9 612.3 631.8 649.5 693.7 711.8 760.5
GDP per capita at market prices (EC$) 8,077 8,549 9,143 9,909 10,693 11,461 12,851
GDP per capita at basic prices (EC$) 6,802 7,124 7,577 8,183 8,880 9,413 10,385
GDP growth (real, market prices) 1.8 1.0 3.7 3.2 6.2 3.6 8.7
GDP growth (real, basic prices) 2.0 -0.1 3.2 2.8 6.8 2.6 6.9
GDP components 
Total consumption (% of GDP) 79.0 80.0 80.3 84.9 89.0 90.3 82.7
   Private consumption (% of GDP) 59.5 60.2 59.8 65.4 69.3 70.9 64.2
   Government consumption (% of GDP) 19.4 19.8 20.5 19.5 19.7 19.4 17.5
Gross capital formation (% of GDP) 27.3 29.8 29.7 33.0 32.1 31.7 34.8
Transport equipment 2.5 3.1 2.2 1.6 2.2 1.9 2.9
Other machinery and equipment 5.7 6.7 8.5 11.7 8.8 9.7 8.8
Construction 19.2 20.0 19.0 19.7 21.1 20.1 23.1
Exports of goods and services (% of GDP) 53.6 51.0 48.8 45.2 44.4 42.9 39.8
  Goods 15.4 12.4 11.3 10.5 9.5 9.3 8.4
  Non-factor services 38.1 38.6 37.5 34.7 35.0 33.6 31.4
Imports (% of GDP) 59.8 60.7 58.8 63.1 65.6 60.0 57.4
  Goods 43.1 44.0 43.2 46.3 47.9 47.7 40.7
  Non-factor services 16.7 16.7 15.6 16.9 17.6 17.3 16.7
Gross national savings (% of GDP) 20.2 18.9 18.2 12.2 7.4 7.2 14.9
Foreign savings (% of GDP) 7.1 10.9 11.5 20.8 24.6 23.2 20.0
Consumer price index (end of period) 0.2 -0.7 2.4 2.2 1.7 3.9 4.8
Consumer price index ( period average) 0.2 0.9 1.9 0.2 3.0 3.7 3.0
Implicit gross value added deflator -0.3 2.0 2.0 1.4 2.3 2.1 2.8
General government finance (% of GDP)  
Current revenue 28.8 29.2 31.0 30.8 29.0 28.96 29.9
  of which, tax revenue 24.9 24.7 27.7 26.4 26.0 26.4 27.5
    of which taxes on international trade 11.3 12.0 12.8 12.9 12.4 12.2 12.3
       of which 
              Consumption tax 6.5 7.0 7.9 7.7 7.3 6.9 7.1
              Import duties 2.5 2.7 2.6 2.5 2.7 2.8 2.6
              Customs service charge 1.8 1.8 1.8 1.9 1.8 1.9 2.0
Table I.1 (cont'd)WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
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 2000 2001 2002 2003 2004 2005 2006
Current expenditure 26.7 27.8 27.7 26.4 25.7 27.7 27.0
Current account balance 2.1 1.3 3.3 4.4 3.3 1.2 2.9
Primary balance 3.9 0.9 1.3 0.4 1.1 -1.3 -0.7
Overall fiscal balance (% of GDP) -0.6 -1.7 -1.4 -2.3 -1.4 -4.3 -3.9
Public sector debt 69.1 68.2 72.9 79.1 85.3 85.4 79.9
Money and interest rates 
Money supply, M1  (end of period.) 16.2 3.3 9.1 6.1 13.1 14.7 5.1
Broad money, M2 (end of period) 9.5 3.0 8.3 1.9 13.7 6.4 7.5
Prime lending rate (% per annum) 9.5-11.0 9.0-11.0 9.0-11.0 9.0-11.0 9.0-11.0 9.0-11.0 9.0-11.0
Other lending rates 5.0-16.0 7.0-21.5 7.0-21.5 6.4-21.0 3.0-21.6 3.5-21.6 3.5-21.6
Savings rate 4.0-5.0 4.0-5.0 3.0-5.0 3.0-5.0 3.0-450 3-0-4.5 3-0-4.5
 
Source:  Information provided by the authorities and ECCB data. 
3. GDP per capita was US$4,759 at market prices (US$3,846 at basic prices) in 2006.  GDP per 
capita in terms of purchasing power, was estimated  by the IMF at US$8,09 0 in the same year.1  Net 
aid per capita in 2005 was estimated by the World Bank at US$88.2 
4. During the period under review, there was a furthe r increase in the contribution of services to 
GDP, while the contributions of agriculture and manufacturing declined.  The services sector 
accounted for some 84% of GDP at basic prices,  in 2005;  the main services activities include 
wholesale and retail trade, government services, and transportation.3  Although not readily identifiable 
in national accounts, tourism is the main economic activity. 
5. In 2005, agriculture's contribution to GDP was 8.2%, down from 9.6% in 2001.  St. Vincent 
and the Grenadines has continued to move away from the production of bananas, and their 
contribution to GDP declined from 3% in 2000 to  1.2% in 2005.  Construction accounted for 12.3% 
of GDP in 2005, up from 11.9% in 2001, while manufacturing accounted for 5.7%, and water and electricity for 6.5%. 
6. A number of structural reform measures were undertaken during the review period.  These 
included the restructuring of the banana industry, efforts to diversify production away from bananas, 
simplification of the tax regime and investment pr ocedures, adjustments to domestic energy prices, 
and the reduction of operational losses in public enterprises. 
7. No data was available with respect to the unemployment rate, since no formal labour force 
surveys are carried out;  the last  estimates, corresponding to the 2001 census, show a rate of 21.1%.  
The informal sector is large:  a recent IMF study estimated informal activity at some 50.6% of GDP.
4  
Real wages in the public sector have increased mo destly on average in recent years:  in 2000-01, 
central government nominal wages increased by some  3.5% per year;  they were frozen during 2002 
and 2003, and have been growing at annual rates of  some 3-4% thereafter.  Private sector nominal 
wages have been growing at some 4% per year since 2000.5 
                                                      
1 IMF online information.  Viewed at:  http://www.imf.org/external/pubs/ft/weo/2007/01/data/weoselgr 
.aspx. 
2 World Bank (2007). 
3 The totals do not add to 100% since it is necessary to subtract the financial intermediation services 
indirectly measured (FISIM), which includes total proper ty income receivable by financial intermediaries minus 
their total interest payable.  For details see:  ECCB (2006b). 
4 Vuletin (2007). 
5 IMF (2006b). Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
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(2) FISCAL POLICY  
8. Fiscal policy is the responsibility of the Minist ry of Finance.  Fiscal policy is the main 
macroeconomic policy actively used by the author ities to affect output, as St. Vincent and the 
Grenadines, like all other OECS WTO Members, has no independent monetary and exchange rate 
policy (section (3) below).  As a result, the national authorities may only resort  to fiscal policy to act 
on the economy as the main income stabilizer and counter  the effect of external shocks.  As in other 
OECS countries, and due to the high dependency on  taxes on foreign trade for revenue, fiscal policy 
has a strong link with trade policy. 
9. The general government current balance was in surplus each year over 2000-06.  However, as 
a result of a large deficit in the capital account, partly due to public investment projects and debt 
repayments, the overall balance poste d a deficit throughout the period under review.  The deficit has 
been increasing since 2003 and, after peaking in 2 005, was 3.9% of GDP in 2006.  This reflects 
mainly increases in capital expenditure linked to infrastructural projects. 
10. The Government introduced a fiscal reform pack age in the 2005, which included (expected 
yield as a percentage of GDP in parentheses):  a 5% tax on all calls ma de on cellular telephones 
(0.2%);  an increase in the retail price of petrol eum products (0.2-0.4%);  and a 10% tax on lottery 
winnings in excess of EC$500 (0.1%).  The package e nvisaged an increase in outlays in most areas, 
including current expenditure (e.g. education and subsidies to banana producers), and capital 
expenditure (e.g. port and road c onstruction and the recapitalization of the regional airline, LIAT). 
11. The complex system of fiscal incentives for i nvestment and import duty concessions result in 
considerable revenue forgone (Chapter III(3)(ii)).   Curtailing concessions and making them more 
transparent, would help strengthen the fragile fi scal situation, and would enhance the investment 
regime's predictability and accountability. 
12. St. Vincent and the Grenadines' public sector de bt increased during the period under review, 
from 69.1% of GDP in 2000 to 79.7% in 2006.  The largest share of the incr ease has been in domestic 
debt, which represented some 35% of GDP in 2005, up from 20% in 2000.  The increase in debt has 
resulted in a substantial increase in interest payments, requiring an ever larger surplus in other areas.  
The IMF considers that continuation of current fisca l policies will lead to an unsustainable level of 
debt, and crowd-out expenditure towards the achieve ment of important social and economic goals.  
Under current policies, the stock of debt will reach  over 100% of GDP by the end of the decade and 
central government interest payments will rise to 5% of GDP.6 
(3) MONETARY AND EXCHANGE RATE POLICY  
13. St. Vincent and the Grenadines is a member  of the Eastern Caribbean Currency Union 
(ECCU).  Hence, monetary and exchange rate polic y is determined by the Monetary Council of the 
Eastern Caribbean Central Bank (ECCB).  The ECCB has been responsible for monetary policy for 
the whole OECS area since 1976, keeping the EC do llar pegged to the U.S. dollar at a rate of 
EC$2.70/US$1.  Movements in the EC dollar real e ffective exchange rate are related largely to 
changes in the value of the U.S. dollar vis-à-vis  other major currencies.  As a consequence, the EC 
dollar depreciated in real effective terms during the period under review. 
14. Both narrow money (M1) and quasi money have  been expanding rapidly since the economy 
resumed growth.  The growth of M1 since 2004, which slowed down somewhat in 2006, is mainly 
associated with a strong expansion in private dema nd deposits, while the more moderate increase in 
                                                      
6 IMF (2006a). WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
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quasi money reflects an expansion in savings by private sector businesses and individuals.7  Domestic 
credit has also been expanding, to both the privat e sector and central government.  The composition of 
credit by economic activity shows increases in out standing loans for manufacturing, tourism, 
construction and personal use, but decreases for ag riculture.  Liquidity in the commercial banking 
system remained very high duri ng 2005 and 2006 (the ratio of lo ans and advances to total deposits 
was 72.9% in 2006). 
15. Commercial bank interest rate s were unchanged during 2005 and 2006:  rates on savings 
deposits ranged from 3% to 4.5% and 2.5% to 3.8%  on time deposits.  Prime lending rates remained 
within the 9-11% range. 
16. The level of inflation as measured by the change  in the consumer price index (CPI) has been 
relatively low over the review period, averagi ng some 1.6% a year, during 2000-05.  In 2004 and 
2005, however, price increases picked up, reflecting higher oil prices, but also higher prices for certain food items, including beef, chicken, and fish , as well as increases in some service tariffs.  The 
CPI index rose by 4.8% during 2006, on an end-of-period basis. 
(4) B
ALANCE OF PAYMENTS , TRADE AND INVESTMENT FLOWS  
17. The current account of St. Vincent and the Gren adines's balance of payments has traditionally 
posted a deficit, reflecting largely the deficit in merchandise trade (Table I.2).  Exports of goods 
declined by some 22% in U.S. dollar terms betw een 2001 and 2006, while  imports increased by a 
third.  The export fall was due in large part to lower banana exports.  The service surplus remained 
steady, in nominal terms, during the period under review, although it declined as a percentage of 
GDP, from 21.9% in 2001, to 16.2% in 2006.  The surp lus is due entirely to the travel balance, since 
in all other service areas St. Vincent and the Grenadin es has a deficit.  Net investment income revenue 
is increasingly negative, but is virtually o ffset by a surplus in current transfers. 
Table I.2 
Balance of payments, 2001-06 
(US$ million) 
 2001 2002 2003 2004 2005 2006 
Current account -37.6 -41.4 -79.5 -102.1 -99.8 -138.2 
Goods and services -33.7 -36.0 -68.6 -87.7 -87.3 -123.8 
Goods -109.2 -116.5 -136.7 -159.7 -161.0 -202.9 
Merchandise -109.6 -117.8 -138.2 -161.7 -164.0 -206.3 
    Exports 41.6 39.3 38.0 36.6 38.6 32.4 
    Imports 151.2 157.1 176.2 198.3 202.7 238.7 
Goods procured in ports by carriers 0.4 1.3 1.5 2.0 3.0 3.4 
Services 75.5 80.6 68.2 72.0 73.7 79.1 
Transportation -16.2 -16.9 -20.1 -21.4 -22.8 -26.8 
Travel 77.4 80.8 78.6 81.3 89.0 97.9 
Insurance services -3.4 -4.2 -4.6 -5.1 -5.4 -6.3 
Other business services 19.2 21.7 16.2 19.3 17.4 18.8 
Government services -1.6 -0.9 -1.9 -2.0 -4.4 -4.5 
Income -16.5 -17.6 -23.9 -28.9 -30.7 -35.2 
Compensation of employees 0.1 0.7 0.6 0.7 0.5 0.5 
Investment income -16.6 -18.3 -24.4 -29.6 -31.1 -35.7 
Current transfers 12.6 12.1 12.9 14.1 18.1 20.9 
General government -0.5 -0.8 -1.0 -0.4 -0.3 2.5 
Other sectors 13.1 13.0 13.9 14.5 18.5 18.3 
Table I.2 (cont'd) 
                                                      
7 ECCB (2006a). Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
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 2001 2002 2003 2004 2005 2006 
Capital and financial account 46.7 34.9 79.0 128.0 97.0 150.3 
Capital account 8.8 10.6 14.4 18.9 14.2 10.9 
Capital transfers 8.8 10.6 14.4 18.9 14.2 10.9 
Financial account 37.9 24.2 64.7 109.0 82.7 139.4 
Direct investment 21.0 34.0 55.1 65.7 41.4 84.4 
Portfolio investment 3.5 1.0 20.7 33.2 -10.1 -0.2 
Other investments 13.4 -10.8 -11.2 10.1 51.4 55.1 
Public sector long term 13.0 2.1 -1.1 2.6 25.9 7.3 
Commercial banks 16.0 -15.3 -17.1 -18.3 -6.5 9.7 
Other assets -10.7 -7.7 -17.5 -8.7 6.1 -9.3 
Other liabilitiesa -5.0 10.1 24.6 34.5 25.9 47.4 
Overall balance 9.1 -6.6 -0.4 25.4 -2.9 12.1 
Financing -9.1 6.6 0.4 -25.4 2.9 12.1 
Change in government foreign assets -2.8 -1.7 -1.6 -1.7 -2.5 -3.0 
Change in imputed reserves -6.3 8.3 2.0 -23.8 5.4 -9.1 
Memorandum        
Current account balance (% of GDP) -10.9 -11.5 -20.8 -24.7 -23.2 -28.3 
Terms of trade 2.9 2.1 -4.2 -3.4 .. .. 
Real effective exchange rate 0.5 -6.7 -8.3 -5.0 -0.2 -18 
Estimated visitor expenditure (EC$  million) 240.3 245.7 246.2 258.0 280.5 305.8 
Net imputed international reserves (U S$ million) 60.7 52. 5 50.4 74.2 68.5 77.8 
Outstanding external public debt (%  of GDP) 49.2 46.5 53.1 56.5 54.7 .. 
Debt service ratio (% of exps. of goo ds and servs.) 4.4 4.6 9.4 12.7 16.6 .. 
 
.. Not available. 
 
a Includes errors and omissions.  
Source : WTO Secretariat, based on ECCB (2006 and 2007) Annual Economic and Financial Review 2005 and 
 2006. 
18. As a consequence of both the deterioration in  the merchandise trade balance and the reduction 
in the surplus in services, the deficit in the current account increased substantially, from 10.9% of 
GDP in 2001 to 28.3% in 2006.  The current account de ficit has been financed mainly through inflows 
of official capital for public sector projects, mainly in infrastructure, and by direct investment flows, 
mainly associated with private-sector tourism developments in the Grenadines, such as the 
construction of a resort in Canouan Island.8  Upon completion of this project in 2004, however, FDI 
flows declined considerably.  Po rtfolio investment, mainly in bonds, has also been an important 
source of revenue. 
19. Most of St. Vincent and the Grenadines' ex ternal trade takes place under preferential 
conditions.  Agricultural exports account for some 75%  of total exports;  bananas alone accounted for 
some 32% of the total in 2005 (Table AI.1).  Othe r agricultural exports include flour and rice, sweet 
potatoes, eddoes and dasheens, arrowroot, coconuts, and plantains.  Exports of manufactures 
accounted for 24% of total exports in 2005;  the ma in items were machinery and equipment and iron 
and steel products.  Re-exports, mainly of surplus materials and machinery, closely tied to the 
completion of large investment projects, represented some 9.6%. 
20. Merchandise imports expanded by 34% over 2001-05, or at an average annual rate of 6%.  
The strong construction activity linked to the touris m industry and other infrastructure projects have 
been mainly behind this growth.  Over 60% of imports in 2005 were manufact ured goods, particularly 
machinery and transport equipment (22.7%), semi -manufactures (14%), and other consumer goods 
(10% of total imports).  Food and beverages acc ounted for 21.5% of total imports (Table AI.2). 
21. St. Vincent and the Grenadines's  main trading partners are the United Kingdom, the 
United States, and other CARICOM member countries,  which together accounted for more than 97% 
                                                      
8 ECCB (2006), p. 72. WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
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of exports and 76% of imports in 2005.  Over ha lf of total exports are destined for the CARICOM 
area (Table AI.3).  The United States is the ma in import supplier, with over 33.3% of the total 
followed by Trinidad and Tobago (23.6%), and the United Kingdom (9.4%).  The remaining suppliers 
accounted for less than 5% each (Table AI.4).  Si nce 2001, the import shares of St. Vincent and the 
Grenadines' main trading partners  have remained mainly unchanged;   however, exports to other 
CARICOM countries have increased substantially, wh ile those to countries other than the United 
Kingdom and the United States have fallen. 
22. Exports of services, particularly tourism, have  continued to gain in importance:  they 
accounted for some two-thirds of exports of goods  and services in 2005;  tourism receipts accounted 
for slightly over 50%. 
23. Net foreign direct investment flows totalled some US$209 million in 2001-05, up from 
US$67 million in 1995-99.  Most of the investment has been in tourism or linked to government-
fostered investment projects.  Net portfolio inv estment inflows have also increased substantially, 
totalling US$77 million in 2001-05, compared with a slight outflow at the time of the previous 
review. 
(5) OUTLOOK  
24. No government economic forecasts were made available to the Secretariat.  After projected 
economic growth of around 3.7% for 2006 and a c onsumer price increase of 4.8%, the IMF is 
forecasting GDP growth of 5.5% and consumer pric e inflation of 3.5% in 2007, and of 6.3% and 
3.8%, respectively in 2008.  The current account defi cit of the balance of payments is expected to 
remain high, at between 20% and 25% of GDP.  The fiscal deficit is expected to broaden if no new 
measures are adopted to reduce it. 
II. TRADE AND INVESTMENT POLICY FRAMEWORK 
(1) GENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK  
25. St. Vincent and the Grenadines became an independent parliamentary democracy on 
27 October 1979.  The Queen of England remains its Head of State and it is part of the 
Commonwealth of Nations.  The Queen is represented by a Governor General.  Constitutionally, the 
Queen is the head of Saint Vin cent and the Grenadines' Executive, Legislature and its Judiciary. 
26. Real executive authority is exer cised by the Prime Minister and his/her Cabinet: they are 
responsible for concluding and si gning international treaties and ag reements, including trade-related 
agreements.  The Governor General appoints as Pr ime Minister the representative in the House of 
Assembly (the House) who, in his or her sole judgment, appears to command the majority of support 
from other elected representatives.  In principle, th is generally means that the Prime Minister is the 
head of whichever party forms the majority in the House. 
27. The Constitution of St. Vincent and the Gr enadines grants significant powers to the 
Prime Minister, including sole authority to:  nominate and relieve parliamentary colleagues of 
ministerial posts;  decide the date of elections;  veto nominations for the post of Commissioner of 
Police;  appoint the majority of senators;  appoint  most senior personnel in major statutory boards or 
organizations;  and nominate the majority of ap pointments to the Public Service Commission. 
28. The Cabinet is appointed from among elected repr esentatives in either the House of Assembly 
or the Senate, and is collectively responsible to the Governor General for the advice it offers.  No 
more than two senators may be appointed to serve in  ministerial posts.  Where the Attorney General is Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 7 
 
 
a public servant as opposed to an elected representative  or senator, he or she is automatically an ex-
officio member of the Cabinet, and is also a member of the Parliament.  The Cabinet is also collectively responsible to the Hou se of Assembly for its decisions. 
29. St. Vincent and the Grenadines' legislature is unicameral, with 15 elected representatives and 
six appointed senators.  Elections are required every five years, although they may occur before this. 
Elections were last held in December 2005. 
30. The process of law making starts with the introduction of a bill, usually at the request of a 
ministry.  A bill will generally have three readings:  during the second reading the merits of the bill 
are debated and amendments proposed;  the bill will be rejected or passed at its third reading.  Bills 
become law only after receiving the assent of the Governor General and publication in the official 
Government Gazette .  This procedure applies to all laws, including trade and trade-related laws. 
31. The legal system is based on English common law.   The exercise of ministerial discretion is 
subject to review by superior courts.  The judici ary is guaranteed constitutiona l independence.  At the 
lowest judicial level are magistrates courts, which deal with minor criminal and civil cases.  Serious criminal cases, usually involving indictable charg es, and civil cases over a certain threshold, are dealt 
with by St. Vincent's High Court, which is also capab le of interpreting provisions of the Constitution.  
The first level of appeal is to the Eastern Caribb ean Supreme Court, which is an itinerant court based 
in St. Lucia, but enjoys entrenched protection in the Constitution of St. Vincent and the Grenadines.  
Final appeal is to the Judicial Committee of th e Privy Council, based in London.  International 
agreements that have not been enacted into dom estic law cannot be invoked or relied upon by private 
parties in national courts. 
32. All laws must conform to the terms of the Constitution or are void to the extent of any 
inconsistency.  In 2003, the Government of  St. Vincent and the Grenadines established a 
Constitutional Review Commission, with representa tives of the Government, the Opposition and civil 
society organizations.  The Commission undertook wi despread public consultations for the purposes 
of reforming the Constitution, and examining the d esirability of maintaining appeals to the Privy 
Council, versus substituting its jurisd iction for that of the Caribbean C ourt of Justice (CCJ).  The CCJ 
is a superior regional court established by CARICO M Heads of Government in April of 2005.  The 
Constitutional Review Commission delivered its fina l report to the Parliament in September 2006, 
recommending the abolition of appeals to the Priv y Council and joining the CCJ, as well as reducing 
Prime Ministerial authority in certain areas. 
(2) T
RADE POLICY FORMULATION AND IMPLEMENTATION  
33. The Ministry of Foreign Affairs, Commerce and Trade is responsible for advising the 
Government on trade policy and strategy, and has primary responsibility for WTO affairs and trade-
related negotiations.  The Division of  International Trade in the Mini stry, which  follows WTO issues, 
has four staff members.  The Ministry of Finance and Planning is responsible for tariff policy, fiscal 
policy, and for setting general investment policy.   The Department of Customs and Excise is 
responsible for administration of the Customs Ac t and the General Consumption Tax Act.  Trade 
policy is also influenced by the Ministry of Agri culture, Forestry and Fisheries, the Ministry of 
Tourism, Youth and Sports, the Ministry of Lega l Affairs, the Ministry of Telecommunications, 
Science and Industry, and the St. Vincent and the Grenadines Bureau of Standards. 
34. The main objective of St. Vincent and the Gren adines' national trade policy is the promotion 
of exports.  The Government is hoping to promote long-term and sustainable balanced growth by WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 8 
 
 
transforming St. Vincent and the Gr enadines into an export-led economy.9  St. Vincent and the 
Grenadines has taken a number of steps towards this objective in recent years (Chapter III(2)). 
35. While WTO membership is important to overall trade policy in St. Vincent and the 
Grenadines, it has had to rely more heavily on re gional institutions and mechanisms to advance its 
WTO-related interests due to limitations of human and technical resources.  Specifically, it 
collaborates actively with other OECS and CARI COM states in trade policy formulation and 
implementation on WTO-and other tr ade-related issues.  Although St. Vincent and the Grenadines 
participates directly in trade negotiations as a nd when resources allow, its international trade 
negotiations are generally facilitated by th e Caribbean regional negotiating machinery. 
(3) FOREIGN INVESTMENT REGIME  
36. Foreign investment policy in St. Vincent and the Grenadines is formulated by the Ministry of 
Finance and Planning.  The Ministry of Tourism,  Youth and Sports and the Ministry of Foreign 
Affairs, Commerce and Trade are directly involved in implementation.  Prior to 2003, the Development Corporation was mandated to attract fo reign direct investments, manage an industrial 
estate and market the country abroad.  The Na tional Investment Promotions Inc. (NIPI) was 
established in October 2003 with a slightly more focused mandate to promote and sell the image of 
the country abroad to foreign direct investors.  NIPI reports directly to the Office of the 
Prime Minister and conducts business  facilitation through the provision of a range of services to both 
local and foreign investors. 
37. NIPI regards foreign investors as potential e xporters, and focuses on creating an environment 
for such foreign investment to flourish. It sees poten tial growth in investment and in exports being led 
almost exclusively by the private entrepreneur.
10  The Government has identified agri-processing, 
tourism, information and communications tec hnology, and light manufacturing as high export 
potential areas for involvement by foreign investors. 
38. With one exception, foreign investment in St . Vincent and the Grenadines is not subject to 
restrictions, and foreign investors receive national treatment.  The only restriction is a requirement 
under the Alien Landholding Act (Cap 235 Volume 6 of the Laws of St. Vincent and the Grenadines, 
Revised Edition 1990, as amended by Act No. 6, 2004) for foreigners to obtain a licence to purchase land, shares or debentures in a company.  For fore ign investors seeking to purchase one acre or less, 
the application must contain an approved development plan and an execution plan is required within 
18 months.  Foreigners wishing to purchase more than one acre of land must present a development 
plan for the whole area.  Licences are granted subject to submission of an application to Cabinet and 
the payment of requisite licence fees, which amount  to 10% of the value of the property purchased. 
39. Foreign firms are allowed to repatriate divide nds abroad.  Jointly owned companies (joint 
ventures between foreign and national investors) may repatriate profits equivalent to the extent of 
foreign ownership.  Unless granted an exemption under the Fiscal Incentives Ac t, foreign investment 
profits are subject to a corporate tax rate betw een 25% and 40%, with the exception of manufacturing 
enterprises, which are subject to rates of: 30% on income from sales to the domestic and OECS 
markets (down from 35% since 2001);  25% on income from exports to non-OECS markets (down 
                                                     
 
9 NIPI online information.  Vi ewed at:  http://www.s vg-nipi.com/index.cfm?method=html.export_ 
development. 
10 NIPI online information.  Viewed at:  http://www.svg-nipi.com/index.cfm?method=html.export_ 
development. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 9 
 
 
from 30% since 2001);  and 15% on income from e xports to other markets (down from 25% since 
2001).11 
40. In order to attract foreign investment St. Vi ncent and the Grenadines offers incentives in a 
range of areas (Chapter III(3)(ii)).  The St. Vincen t and the Grenadines Export Free Zone Act No. 15 
of 1999 grants the port authority responsibility for ad ministering free zones.  To date there are no free 
zones in operation. 
41. St. Vincent and the Grenadines has double ta xation arrangements with CARICOM member 
countries, through provisions of the Revised Treaty. It  has an investment agre ement with Germany, to 
encourage the reciprocal protection of investments.12  It does not have any double taxation or bilateral 
investment agreements with other countries. 
42. St. Vincent and the Grenadines is a member of the World Bank's Multilateral Investment 
Guarantee Agency.  It is also a member of the International Centre for the Settlement of Disputes.13 
(4) INTERNATIONAL RELATIONS  
(i) World Trade Organization 
43. Prior to Independence, on 27 October 1979, St . Vincent and the Grenadines applied GATT 
de facto as a member of the metropolitan territory of the United Kingdom.  St. Vincent and the 
Grenadines became a GATT contracting party on 18 May 1993, under Article XXVI:5(c), with its 
rights and obligations under GATT retroactive to th e date of Independence.  St. Vincent and the 
Grenadines is an original member of the WTO and applies MFN treatment to all its trading partners. 
44. There is no specific Uruguay Round Act. 
45. Under the GATS, St. Vincent and the Grenad ines made initial commitments on tourism, 
transport, and financial services (Chapter IV(3)), as well as on health related (hospital services) and 
recreational (entertainment and sporting) services.  The country did not present offers in the extended 
negotiations on telecommunications a nd financial services.  It has presented an initial offer in the 
DDA negotiations on services, which remains restricted14;  but has not made a revised offer. 
46. St. Vincent and the Grenadines has made a few notifications to the WTO since 2001 
(Table II.1). 
47. St. Vincent and the Grenadines has supported a request by a number of small developing 
WTO Members for an extension of time fo r providing export subsidies until 2018.15 
                                                      
11 NIPI online information.  Viewed at:  http ://www.svg-nipi.com/CD-Inve stmentGuide/Investment 
Guide.pdf, p. 66. 
12 NIPI online information.  Viewed at:  http ://www.svg-nipi.com/CD-Inve stmentGuide/Investment 
Guide.pdf, p. 52. 
13 NIPI online information.  Viewed at:  http ://www.svg-nipi.com/CD-Inve stmentGuide/Invetsment 
Guide.pdf. 
14 WTO online information.  Available at:  http://www.wto.org/english/ tratop_e/serv_e/s_negs_e.htm. 
15 WTO document G/SCM/W/535, 12 April 2006. WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 10 
 
 
Table II.1 
Notifications to the WTO, 2002-07 
WTO Agreement Description Document symbol 
Sanitary and phytosanitary meas ures Notification of draft legi slation and regulations: Plant 
Protection Bill 2004 
 G/SPS/N/VCT/1, 11 January 2005 
Services 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 
 
State trading enterprises (Art. XVII:4(a) 
GATT) New and full notification of St. Vincent Marketing 
Corporation as St. Vincent's only STE G/STR/N/4/VCT, 19 December 2000
G/STR/N/5/VCT, 19 December 2000
G/STR/N/6/VCT, 19 December 2000 
Subsidies and countervailing measures (SCM) (Art. 27.4) Request for extension to provide export  subsidies G/SCM/N/74/VCT, 4 January 2002 
G/SCM/N/71/VCT, 20 March 2002 G/SCM/N/95/VCT, 26 August 2003 
G/SCM/N/99/VCT, 26 August 2003 
G/SCM/N/114/VCT, 7 July 2004 G/SCM/N/123/VCT, 12 May 2005 
G/SCM/N/146/VCT, 4 October 2006
 
 
Source : WTO Secretariat. 
48. St. Vincent and the Grenadines h as not been a plaintiff or defendant in any case before the 
DSB.  It has been a third party in one case (E uropean Communities – Regime for the Importation, 
Sale and Distribution of Bananas).16  In November of 2006, Ec uador submitted a request for 
consultations under Article 21.5 of the DSU and Ar ticle XXII of the GATT 1994.  St. Vincent and the 
Grenadines has requested to  join the consultations.17 
(ii) Preferential agreements and arrangements 
49. St. Vincent and the Grenadines is a founding member of both CARICOM and the OECS.  
CARICOM has signed bilateral trade agreements with Colombia, Costa Rica Cuba, the Dominican 
Republic, and Venezuela.  St. Vincent and the Gren adines is also a member of the ACP-EC Revised 
Cotonou Agreement, and the Association of Caribbean States (ACS). 
50. St. Vincent and the Grenadines' exports recei ve traditional preferential access to the EC 
market under the ACP-EC Revised Cotonou Agreement.  The production and export of bananas to the EC under the agreement had been one of St. Vin cent and the Grenadines's major economic activities, 
accounting for a significant percentage of the country's  exports.  This has declined steadily in recent 
years, since preferences have been eroded due to ch anges in the banana regime.  St. Vincent and the 
Grenadines is now engaged as part of CARIFORUM in negotiations with the EC to conclude an 
economic partnership agreement. 
51. Exports of a number of products from St. Vincent and the Grenadines enjoy preferential 
access to the U.S. market under the CBI.  In mid 2000, the United States granted CBI beneficiaries 
extended preferences.  Canada also grants prefer ential access to a number of exports from St. Vincent 
and the Grenadines, through CARIBCAN.  Notwith standing these arrangements, CARICOM and the 
United Kingdom remain the most important markets for exports;  exports to the United States and 
Canada are relatively low compared w ith the other markets (Table AI.3). 
                                                     
 
16 WTO document WT/DS27/78, 9 September 1997. 
17 WTO online information.  Available at:  http://w ww.wto.org/English/tratop_e/dispu_e/cases_e/ds27_ 
e.htm. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 11 
 
 
52. Products from St. Vincent and the Grenadines are eligible for the GSP schemes of Australia, 
Canada, the European Communities, Japan, New Z ealand, Switzerland, and the United States. The 
range of products varies according to each country's scheme. 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures, documentation, and registration 
53. Importers are not required to register, or to  use customs brokers.  Customs (Control and 
Management) Act No. 14 of 1999 governs customs pro cedures.  Up to six documents are required for 
imports:  all imports must be accompanied by a declaration either by the importer or a broker;  a 
formal entry warrant itemized with the correspondi ng tariff numbers, the quantity imported, and the 
customs value of each good imported;  an invoice;  and a bill of lading or airway bill.  Other documents that may be required, depending on the nature of the import, include:  an import licence 
(section (1)(vi));  a certificate of origin for go ods benefiting from CARI COM duty relief;  and a 
veterinary or health certificate. 
54. Customs uses ASYCUDA to process customs doc uments electronically.  The Customs and 
Excise Department is in the process of implementing ASYCUDA ++.  The manifest module was 
implemented on 30 April 2007.  This will eventually allow for electronic filing of entries, a reform 
that would facilitate trade.  ASYCUDA V2.71 is used to process all customs documents 
electronically, and it computes the duties and taxes paya ble;  the filing of documents by importers is 
still done on paper, but the authorities hope to have an electronic filing system in place by July 2007.  
Advanced Passenger and Cargo Info rmation Act No. 4 of 2007 provides for carriers and agents to 
submit their passenger and manifest information electronically, but some documents will still be required in hard copy. 
55. Most imports clear customs within 24 hours, w ith priority given to perishables, but some 
items require up to 48 hours.  Less than 50% of impo rts are subject to physical inspection; those that 
are inspected are chosen on the basis of a risk as sessment.  An importer may, prior to importation, 
consult with the Queries Officer to determine the correct tariff classification of an item.  Customs 
decisions may be appealed to the Comptroller of Cu stoms.  St. Vincent and the Grenadines is not a 
member of the World Customs Organization. 
(ii) Customs valuation 
56. St. Vincent and the Grenadines has not notified its  customs valuation regime to the WTO.  It 
did not invoke the special and differential treatment provisions in Article 20 of the WTO Customs 
Valuation Agreement, nor has it responded to the WTO checklist of issues on customs valuation.
18 
57. St. Vincent and the Grenadines implemented the WTO Customs Valuation Agreement in 
2000.  The legislative framework was incorporated  into the Customs (Control and Management) Act 
No. 14 of 1999, Second Schedule.  The methods of valuation contained in the Code are used in the 
order prescribed in the Agreement.  The authorities note that the transaction value is used for about 
95% of imports.  No minimum or reference prices ar e used for valuation purposes.  Benchmark values 
are used for reference purposes where no transaction va lue is declared;  for this purpose customs uses 
catalogues as well as an internal database that contains values captured from previous imports. 
                                                      
18 WTO document G/VAL/W/155, 26 September 2006. WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 12 
 
 
(iii) Rules of origin 
58. St. Vincent and the Grenadines has not notifie d to the WTO either its preferential or non-
preferential rules of origin.19 
59. St. Vincent and the Grenadines adopted the rules of origin introduced by CARICOM in 1998.  
Duty-free treatment is accorded only if goods satis fying the origin criteria are shipped directly 
between member States.  St. Vincent and the Gren adines has obtained derogations for rice, and for 
coniferous wood for the manufacture of furniture.  These derogations are still in place (mid 2007).  
St. Vincent and the Grenadines, like other CARICOM members, was expected to implement the rules 
of origin contained in the Amended Schedule I of  the revised Treaty of Chaguaramas, based on the 
2007 HS, from 1 January 2007.  Implementation of the VAT has contributed to the delay in 
implementation in St. Vincent and the Grenadines, but the authorities expect HS 2007 to be used by 
1 January 2008. 
(iv) Tariffs, and other charges on imports 
(a) Tariff revenue 
60. Customs duties have been an important source of  revenue in St. Vincent and the Grenadines, 
but that will likely change with the tax reforms in stituted in 2007 (see section (1)(v)).  Customs duties 
totalled EC$34 million in 2006, some 8.6% of the Cent ral Government's current revenue for that year, 
and 9.4% of its tax revenue.20  Other taxes on imports are also important sources of revenue:  the 
consumption duty collected on imports totalled EC$9 4.2 million, accounting for some 23.9% of total 
central government current revenue, while the custom s service charge yielded EC$26.1 million, (6.6% 
of revenue).  In all, these taxes on imported goods re presented 41.3% of total revenue in 2006, slightly 
above the 2000 figure of 39.8%. 
(b) MFN applied tariff structure 
61. St. Vincent and the Grenadines grants at least MF N treatment to all its trading partners.  The 
vast majority of tariff rates are ad valorem ;  specific rates apply on 13 li nes at the seven-digit level, 
which correspond to alcoholic beverages such wh isky, rum, and gin (HS 2208), wine (HS 2204), and 
vermouth (HS 2205).  These rates have not been incl uded in the summary statistics presented below.  
There are no seasonal tariffs, or tariff quotas. 
62. The tariff, as applied in 2006, is based on the Harmonized Commodity Description and 
Coding System and comprises 6,274 tariff lines at the ten-digit level (Table III.1).21  The tariff has 
nine tiers, with rates of 0%, 5%, 10%, 15%, 20%, 25%, 30%, 35%, and 40%.  Duty-free treatment is 
accorded to 7.2% of tariff lines for MFN imports.  Almost one third of agricultural tariff lines are 
subject to a rate of 40%, while the maximum applied rate on non-agricultural goods is 20%. 
                                                      
19 WTO document G/RO/W/106, 29 September 2006. 
20 ECCB (2007). 
21 The tariff schedule is the same as in 2000, the late st year made available to  the Secretariat.  The 
authorities indicate that this same schedule corresponds to the 2006 tariff. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 13 
 
 
Table III.1 
Structure of the tariff, 2006 
(Based on the 2000 tariff) 
1. Total number of tariff lines 6,274 
2. Non- ad valorem  tariffs (% of all lines) 0.8 
3. Non- ad valorem  tariffs with no AVEs (% of all lines) 0.8 
4. Tariff quotas (% of all lines) 0.0 
5. Duty-free tariff lin es (% of all lines) 7.2 
6. Dutiable lines average rate (%) 11.7 
7. Domestic tariff "peaks" (% of all lines)a 6.2 
8. International tariff "peaks" (% of all lines)b 27.3 
9. Bound tariff lines (% of all lines) 99.7 
 
a Domestic tariff peaks are defined as those exceed ing three times the overall average applied rate. 
b International tariff peaks are defined as those exceeding 15%.  
Source : WTO Secretariat calculations, based on data provided by the authorities. 
63. The simple average MFN tariff in 2006 (based on the 2000 tariff) was 10.9% (14.9% when 
the CSC is included).  The average MFN tariff fo r agricultural products (WTO definition) was 20.5% 
(24.5% with the CSC) and 9% (13%) for non-agricu ltural products (Table III.2).  Among the highest 
average MFN tariffs in agriculture are on fish and fishery products (29%), tobacco (26%), and fruit 
and vegetables (25.7%).  While tariffs on non-agricu ltural products are generally lower, the averages 
are relatively high for arms and ammunition (24.3%), works of art (20%), and footwear and headgear 
(16.2%).  St. Vincent and the Grenadine has a partiall y inverted tariff structure, insofar as tariffs are 
highest on the first stage of processing, and lowest  on semi-processed products.  St. Vincent and the 
Grenadines imposes a 4% customs service charge (CSC, see below). 
64. St. Vincent and the Grenadines has applied the CARICOM Common External Tariff (CET) 
since 1991, and implemented Phase IV of the CET on 1 January 1998.  CET tariff changes occur at 
CARICOM level, but ultimate authority for the dete rmination of tariff rates rests with Parliament.  
Temporary reductions of the CET a nd the imposition of import charges are made by the Ministry of 
Finance, Planning and Development. 
Table III.2 
Summary analysis of the MFN tariff, 2006 
(Based on 2000 tariff) 
MFN 
   Coefficient of Final bound 
No. of Average Range variation averagea Description  
lines (%) (%) (CV) (%) 
Total 6,274 10.9 0 - 40 0.9 65.0 
HS 01-24 1,033 20.5 0 - 40 0.8 117.3 
HS 25-97 5,241 9.0 0 - 35 0.8 54.9 
By WTO category      
WTO Agriculture 989 18.0 0 - 40 0.8 115.6 
   Animals and products thereof 129 17.7 0 - 40 0.9 121.2 
   Dairy products 24 6.7 0 - 20 0.8 100.0 
   Coffee and tea, cocoa, sugar, etc. 171 17.9 0 - 40 0.8 111.2 
   Cut flowers, plants 55 11.7 0 - 40 1.2 100.0 
   Fruit and vegetables 253 25.7 0 - 40 0.6 121.5 
   Grains 28 17.8 0 - 40 0.7 116.1 
   Oil seeds, fats and oils and their products 85 17.7 0 - 40 1.0 127.4 
   Beverages and spirits 78 22.1 5 - 40 0.5 129.4 
  Tobacco 10 26.0 5 - 35 0.6 104.8 
   Other agricultural products n.e.s. 156 6.5 0 - 40 1.0 101.5 
Table III.2 (cont'd) WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 14 
 
 
MFN 
   Coefficient of Final bound 
No. of Average Range variation averagea Description  
lines (%) (%) (CV) (%) 
WTO Non-agriculture (incl. petroleum) 5,285 9.6 0 - 40 0.9 55.5 
   WTO Non-agriculture (excl. petroleum) 5,246 9.6 0 - 40 0.9 55.4 
     Fish and fishery products 134 29.0 0 - 40 0.5 117.8 
     Mineral products, precious stones and precious metals 411 9.1 0 - 30 0.8 55.4 
     Metals 714 6.6 0 - 20 0.8 50.8 
     Chemicals and photographic supplies 991 7.0 0 - 30 0.8 52.4 
     Leather, rubber, footwear and travel goods 168 10.7 0 - 25 0.7 51.5 
     Wood, pulp, paper and furniture 314 9.6 0 - 25 0.7 64.5 
     Textile and clot hing 949 11.6 0 - 30 0.6 52.8 
     Transport equipment 184 10.3 0 - 35 1.0 65.0 
     Non-electric machinery 592 6.4 0 - 35 1.0 51.4 
     Electric machinery 269 9.8 0 - 35 0.8 54.4 
     Non-agriculture articles n.e.s. 520 13.5 0 - 35 0.7 55.5 
   Petroleum 39 7.3 0 - 35 1.1 72.5 
By ISIC sectora, b      
Agriculture and fisheries 388 24.6 0 - 40 0.7 111.6 
Mining 116 6.9 0 - 25 0.8 53.0 
Manufacturing 5,769 10.1 0 - 40 0.9 62.1 
By HS section      
  01  Live animals & products 269 22.6 0 - 40 0.8 115.3 
  02  Vegetable products 388 21.6 0 - 40 0.8 117.3 
  03  Fats & oils 53 24.3 4 - 40 0.7 145.4 
  04  Prepared food, etc. 323 16.8 0 - 40 0.6 114.4 
  05  Minerals 203 6.4 0 - 35 0.8 55.8 
  06  Chemical & products 929 6.9 0 - 30 0.8 55.0 
  07  Plastics & rubber 234 7.7 0 - 25 0.9 51.8 
  08  Hides & skins 84 10.2 5 - 20 0.7 62.5 
  09  Wood & articles 122 9.7 0 - 20 0.6 53.0 
  10  Pulp, paper, etc. 169 8.2 0 - 25 0.8 55.1 
  11  Textile & articles 935 11.3 0 - 20 0.7 54.2 
  12  Footwear, headgear 66 16.2 0 - 20 0.4 50.0 
  13  Articles of stone 195 10.0 0 - 25 0.7 51.8 
  14  Precious stones, etc. 61 15.2 0 - 25 0.7 73.5 
  15  Base metals & product 708 7.0 0 - 35 0.8 50.9 
  16  Machinery 894 7.8 0 - 35 0.9 52.5 
  17  Transport equipment 194 10.1 0 - 35 1.0 64.2 
  18  Precision equipment 248 11.4 0 - 30 0.8 56.7 
  19  Arms and ammunition 20 24.3 0 - 35 0.5 79.2 
  20  Miscellaneous manufactures 171 15.3 0 - 20 0.4 71.2 
  21  Works of art, etc. 8 20.0 20 - 20 0.0 50.0 
By stage of processing      
First stage of processing 786 18.4 0 - 40 0.9 94.4 
Semi-processed products 1,829 5.5 0 - 40 0.7 53.4 
Fully-processed products 3,659 12.0 0 - 40 0.7 64.5 
 
a Bound rates are provided in HS96 classification and applied ra tes in HS2002;  therefore, there may be a difference between th e 
 number of lines included in the calculation. 
b ISIC (Rev.2) classification, excluding electricity (1 line). 
 
Source:  WTO Secretariat estimates, based on data provided by the authorities of St. Vincent and the Grenadines. 
65. Exceptions to the CET are included in Lists A,  B, C, and D of the Tariff Schedule of each 
CARICOM Member.  In the case of St. Vincent a nd the Grenadines, products included in List A, 
which are subject to a maximum customs duty of 40%, includes mainly agricultural products, 
packaging material, ceramics, washing machines and dryers, and sanitary fixtures.  List C contains 
products that are revenue-sensitive;  most goods includ ed in this list (e.g. auto mobiles, some electrical 
appliances, precious metals, tobacco products, be er, wine and spirits) as well as some general 
manufactures (e.g. soap and shampoo) are subject to a 30% tariff.  Rates applied on these products are 
generally higher than CET rates, and some products on the list are subject to specific rates.  Applied 
rates may be modified for budgetary purposes;  sinc e goods included in List C are exceptions to the Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 15 
 
 
CET, tariffs applied on them are not fixed under CARICOM.  St. Vincent and the Grenadines has 
bound most of these goods in the WTO at rates higher than 50% (see below). 
66. CARICOM members may maintain applied tariffs  below CET rates for goods included in the 
List of Conditional Duty Exemptions to the CET, which states the purposes for which the goods may 
be admitted into the importing member state free of import duty or at a rate lower than the CET.  
St. Vincent and the Grenadines, as an LDC within CARICOM, may import all inputs duty free instead 
of at a CET rate of 5%.  There is also a List of  Items Ineligible for Duty Exemption, which includes 
goods produced in the CARICOM in quantities considered  adequate to justify the application of tariff 
protection.  
67. Article 164 (Promotion of Industrial Developmen t) of the revised Treaty of Chaguaramas 
allows less developed CARICOM countries to petition COTED to suspend Community-origin treatment to products "as a temporary measure in or der to promote the development of an industry".  
COTED approved the list of produc ts and rates in January 2006.
22  These rates were not being applied 
by St. Vincent and the Grenadines as of early 2007. 
(c) Bound MFN tariffs and undertakings on quotas 
68. St. Vincent and the Grenadines bound all its tariff lines during the Uruguay Round;  it had not 
made any previous tariff commitments under the GA TT.  Tariffs on imports of industrial products 
(HS 25-97) were bound at a uniform rate of 50%, w ith over 200 exceptions at the HS four-, six-, 
seven- or eight-digit levels. Non-agricultural produc ts included in List C, which are exceptions to the 
CET, were bound at higher rates.  For example,  automobiles were bound at rates between 100% and 
140%, according to the category.  Agricultural pr oducts were bound at a ceiling level of 100% with 
some exceptions that range between 107% and 250%. 
69. St. Vincent and the Grenadines left blank the column "other duties and charges" in its 
schedule, which  in practice  is equivalent to having entered "zero".23 
(d) Tariff and tax concessions 
70. Numerous agreements and laws provide for duty-free imports.  These programmes accounted 
collectively for some EC$441.5 million in forgone tariff revenue during 2001-06 (Table III.3).  The 
largest category of concessional imports was thos e taking place under government agreements or 
legislation. 
71. In accordance with Duties and Taxes (Exemption in  the Public Interest) Act No. 6 of 1980, as 
amended by Act No. 8 of 1987 (Cap 305 of the Laws  of St. Vincent and the Grenadines), Cabinet may 
grant a partial or total waiver or relief from import duties on specific goods, upon request by 
individuals or organizations, if it is considered to be in the public interest.  Tariff exemptions are 
granted on imports of capital and consumer goods a nd building materials to be used in a free zone 
(see section (2)(ii)).  Government imports are exempt from both the tariff and the CSC. 
 
                                                      
22 The eligible products are:  aerated beverages (2202.101);  waters;  other waters (201.10), beer 
(2203);  malt (2202.90.20);  candles/paraffin wax (3406);  curry powder (0910.50);  pasta (1902);  animal feed 
(2309);  wooden furniture (9401.60 /9403.60);  solar water heaters (8419.19);  and industrial gases/oxygen, 
carbon dioxide, acetylene ( 2804.40, 2811.21,  2901.292). 
23 WTO document WT/DS302/R, 26 November 2004. WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
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Table III.3 
Revenue forgone on concessional imports, 2001-06 
(EC$ million) 
Purpose of concession 2001 2002 2003 2004 2005 2006 Total 
Government agreements or legisl ation 25.4 8.0 18.4 39.5 31.2 38.9 161.5 
Special cabinet/ministerial conce ssions 17.2 10.7 13.3 11.0 15.2 18.5 85.9 
Statutory bodies 5.9 8.7 7.9 10.2 7.2 13.1 53.1 
Government and governmental purpos es 8.1 6.3 6.9 9.4 10.2 8.1 49.0 
Industry 10.1 8.8 2.6 2.9 3.8 5.2 33.3 
Fiscal Incentive Act and legisla tion 0.7 4.3 10.0 5.8 4.2 5.9 31.0 
Diplomatic missions and international or ganizations 0.3 0.3 0.6 2.4 0.8 0.6 5.1 
Other approved purposes 0.4 0.8 0.8 0.3 0.2 1.3 3.8 
Home use by returning nationals 0.6 0.8 0.3 0.3 1.0 0.7 3.7 
Movement of persons 0.3 0.5 0.5 0.7 0.5 0.5 3.0 
Aircraft 0.5 0.3 0.3 0.3 0.5 0.7 2.6 
Home use under Hotel Act for hotels 0.0 0.0 0.1 0.7 0.5 0.3 1.6 
Educational and cultural purposes 0.4 0.5 0.0 0.0 0.2 0.2 1.3 
Health purposes 0.1 0.2 0.0 0.0 0.1 0.6 1.1 
Home use under concession for senior civ il servants 0.2 0.3 0.0 0.2 0.0 0.1 0.7 
Home use under concession for churches 0.0 0.0 0.5 0.0 0.0 0.0 0.5 
All other programmes 0.8 0.6 0.5 0.3 1.5 0.5 4.2 
Total 71.1 51.2 62.7 84.1 77.1 95.3 441.5 
 
Source : Information supplied by the authorities. 
72. A duty-free concession can be granted on items used in the fishing industry (including fishing 
nets, marine engines, and other equipment). Applicants must request the concession from the Chief 
Fisheries Officer, providing proof of being a fisher or stakeholder in the fishing industry.  Processing of requests requires six to eight weeks.  All mate rials, equipment, stores, vehicles, and other goods 
acquired by the Banana Growers Association ar e exempt from customs duty and other duties and 
taxes.  Elements of duty relief are also a featur e of the several investment, production, and export 
promotion schemes put in place by the Government. 
73. In the 2006 Budget Address the Government announ ced that it would rationalize the system 
of granting duty-free concessions in order to cont rol the revenue losses.  The proposal would lower 
the concessions associated to 50% of the import duties and consumption tax payable on specific 
categories. 
(e) Tariff preferences 
74. Duty-free access is granted by St. Vincent a nd the Grenadines to imports from other 
CARICOM countries, provided they meet the CARICOM rules of origin. 
(v) Other levies and charges 
75. St. Vincent and the Grenadines a pplies a customs service charge of 4% on the c.i.f. value of 
imports, in addition to tariffs;  the CSC appli es to imports from other CARICOM countries.  Two 
companies that operate resort islands (i.e. the Mustique Company and Canouan Development 
Company) are exempt by statute from the CSC and import duties for most items; they do pay CSC 
and duties on imports of food. 
76. The Government of St. Vincent and the Gren adines has revamped it tax system based upon 
the conclusion of a 2006 White Paper that the tari ff, excise, and domestic consumption tax regimes 
needed to be rationalized.  Studies of its tax regi me had been undertaken in  the expectation that 
import duties, which constitute a s ubstantial part of its revenues, would be reduced significantly by its 
commitments to CARICOM and by ongoing negotiations  at the regional and multilateral levels.  The 
VAT White Paper found that the existing array of charges "resulted in inefficiencies and inequities Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 17 
 
 
within the system and, in some sectors, high costs of conducting business because of difficulty in 
administering and complying with these indirect taxes".24  The paper recommended replacing these 
with a VAT. 
77. Following the White Paper recommendations, a VAT was introduced.  The Value Added Tax 
Act No. 25, 2006 entered into effect on 1 May 2 007.  The VAT is generally assessed at 15% on 
taxable supplies and taxable imports;  a reduced rate of 10% is imposed on hotel and holiday 
accommodation.  The VAT must be paid to the Comptroller of Customs by the importer at the time of import;  for domestic transactions, the VAT is paid  to Inland Revenue.  The value of a taxable import 
for the purpose of computing VAT is the sum of the customs value of the goods determined in 
accordance with the Second Schedule of the Customs (Control and Management) Act, i.e. c.i.f. value 
and any customs duties, taxes or fiscal charges pa yable on the importation e.g. import duty, customs 
service charge, excise tax and vehicle surtax.  Exem ptions and zero-ratings are provided under the law 
for several types of supplies and transactions (Table III.4). 
Table III.4 
VAT exemptions and zero-rated supplies, 2007  
Zero-rated 
Export of goods and other supplies of goods for consum ption outside of St. Vincent and the Grenadines 
Export services and other supplies of services for c onsumption outside of St. Vincent and the Grenadines 
Non-package white rice;  cane sugar;  milk;  raw chicken back,  neck and wings;  raw tu rkey back, neck and wings;  baby formula ;  and 
non-package wheat flour 
The first 200 kilowatt hours per month of electricity and the fu el surcharge provided by Vinl ec or any other approved person 
Gasoline, kerosene, diesel, and LPG 
Exercise books, newspapers, and computers 
Packages, containers, labels, and bottles 
Invalid carriages and orthopedic appliances 
Services by:  (a) St. Vincent and the Gr enadines Port Authority, or (b) any air port in St. Vincent and the Grenadines 
International financial services 
Exempt 
Financial services 
International transport services including internati onal mail services provided by the postal corporation 
The sale of real property 
A lease, licence, hire or other form of supply of th e rights to occupy accommodation in residential premises 
Hotel or holiday accommodation for a continuous period of more than 45 days 
Transportation of passengers by land, sea, or air within St. Vi ncent and the Grenadines excluding:  (a) chartered tours, and (b)  a chartered 
journey by sea or air 
Education services 
Medical, dental, nursing, conva lescent or similar services 
Nursing homes or residential care for th e aged, indigent, infirm or disabled 
Prescription medicines 
Veterinary services 
Gambling by an approved non-profit body 
Tickets in a lottery conducted by the national lotteries authority or the Windward Islands lotteries commission 
Domestic postal services by the postal corporation 
Supply of unprocessed agricultural products if the supplier is the producer of the goods 
Supply of live animals or insects other than do mesticated animals generally held as pets 
Agricultural inputs including machinery and equipment for agriculture 
Fishing inputs including boats and outboard  engines up to 75 hp and inboard diesel e ngines, used for taxable fishing activity 
Aircraft and ship stores and spare pa rts if used during flight or voyage th at constitutes international transport 
Bread supply by the producer of the bread 
Table III.4 (cont'd) 
                                                      
24 Ministry of Finance and Planning online information.  Viewed at:  http://www.gov.vc/Govt/Files/ 
VAT%20White%20Paper.pdf.  WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 18 
 
 
 
Services by a trade union to a member or another trade union in the ordinary c ourse of its objectives as a trade union 
Articles of religion, worship or a supply of religious services by an institution 
Goods or services supplied to a diplomatic mission 
Import of goods given as an unconditional gift to an approved charitable organization, or government school 
Goods imported for internati onal organization or personal 
Imports of goods that are exempted from custom duties 
Goods shipped or conveyed to St. Vincent and the Grenadines  for trans-shipment or conveyance to any other country 
Supply of water by the central wate r and sewerage authority if the supply is provi ded to residential premises for domestic use 
 
Source : Information provided by the authorities. 
78. The VAT replaces taxes that together generated revenue estimated at EC$100.3 million in 
2006.25  At the same time, St. Vincent and the Gren adines instituted new excise taxes on 15 types of 
goods;  like the VAT, the excise taxes entered into effect 1 May 2007.  These taxes apply to various 
types of alcohol, tobacco, fuels, vehicles and parts,  and incandescent bulbs (Table III.5).  For excise 
taxes applied to imports on an ad valorem basis, the tax is based on the actual value of the good, and 
not the value plus the tariff and CSC. 
79. Trade (Bottle Deposit Levy) Act No. 13 of 1991, amended by Act No. 3 of 1993, Act No. 4 of 
1993, Act No. 3 of 1998 and Act No. 8 of 2002, prov ides for a refundable deposit on beer, malt, stout, 
ale, aerated beverages, and juices in non-returnab le bottles or cans at a rate of EC$0.50 cents per 
bottle or can.  The excise equalization tax on CARI COM rum at specific rates, was abolished as of 
1 May 2007. 
Table III.5 
Excise taxes that entered  into effect 1 May 2007 
(EC$ and per cent)  
Commodity Rate 
Beers and stouts $0.66 per litre 
Malt $0.35 per litre 
Wine $2.0 per litre 
Rum, brandy, whiskey, gin,  vodka and liquor $2.00 per litre 
Other fermented beverages $0.66 per litre 
Gasoline $2 per gallon 
Gas oil $0.7 per gallon 
Kerosene $0.5 per gallon 
Butanes $3 per 100 lb 
Used tyres 20% 
Incandescent bulb 10% 
Transport vehicles 50% 
Car and jeeps 45% 
Goods vehicles 55% 
Tobacco 5% 
Cigars and cigarettes 10% 
 
Source : Information supplied by the authorities. 
(vi) Import prohibitions, restrictions, and licensing 
80. St. Vincent and the Grenadines has not notified its import-licensing system to the WTO, nor 
has it replied to the questionnaire on import-licensing procedures (G/LIC/2). 
                                                      
25 The VAT replaced the consumption tax;  the in ternational telecommunications surcharge;  the 
domestic telecommunications surcharge;  the hotel tax;  the stamp duty receipts;  and the entertainment tax. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 19 
 
 
81. Import and Export (Control) Regulations No. 10 of 1992 (as amended by Act No. 18 of 1995 
and Act No. 38 of 1998), prohibits the import of cer tain goods without a licence.  The importation of 
jet skis and water bikes is prohibited.  Imports of arms, ammunition, camouflage clothing, and toy 
guns are allowed only with the permission of th e Commissioner of Police.  Imports of ozone-
depleting substances and chemical weapons are al so restricted.  Customs Control and Management 
Act No. 14 of 1999, Third Schedule, makes provision  for prohibitions and rest rictions covering goods 
such as swords, chain saws and tear gas. 
82. Goods listed in the First Schedule of the Im port and Export (Control) Regulations require 
import licences when imported from any country outsi de the OECS and Belize, while those listed in 
the Second Schedule require import licences when im ported into St. Vincent and the Grenadines from 
any country outside CARICOM (Table III.6).  Ac cording to the 1992 regulations, the granting of 
licences for goods included in the First Schedule is non-automatic.  These goods were subject to 
quantitative restrictions in accordan ce with Article 56 of the CARICOM Treaty, but were tariffied in 
2005 as per Article 164 of the revised Treaty of Cha guaramas;  some fall within the WTO definition 
of agriculture.  Quotas were determined product- by-product, taking into  account domestic production 
and imports of the restricted goods in the three- year period prior to the licence application, and 
allowing for a growth rate. 
Table III.6 
Import licensing requirements  
First Schedule:  Goods that require import licences when imported into St. Vincent and the Grenadines  from any country 
outside the OECS and Belize : 
Curry powder (HS 0910.50);  wheat flour (HS 1101.00);  margarin e (HS 1517.10);  shortening (HS 1517.901);  pasta products (HS 
1902);  aerated beverages (HS 2202.101);  malt (HS 2202.902);   beer (HS 2203.001);  stout (HS 2203.002);  oxygen (HS 2804.400) ;  
carbon dioxide (HS 2811.21);  acetyl ene (HS 2901.002);  candles (HS Ex 3406);  toile t paper (HS 4818.10);  pa per bags (HS Ex 48 19.30 
and Ex 4819.40);  solar water heaters (HS 8419.10);  chairs and other seats (HS Ex 9401);  other furniture of wood and upholste red 
fabric (HS Ex 9403) 
Second Schedule:  Goods that require import licences when imported into St. Vincent and the Grenadines  from any country 
outside the CARICOM : 
Live poultry (HS 0105);  meat and edible meat offal (HS 0201-0204);  edible offal of bovines, sheep, etc. (HS 0206);  meat and edible 
offal of fowl (HS 0207);  other meat and edible offal (HS 0208);  fish, frozen (HS 0303);  salmon, trout and other fish (HS Ex 0305);  
milk  and cream not concentrated (HS 0401); );  milk  and crea m concentrated (HS 0402);  honey, natural (HS 0409.00);  parts of  
Christmas trees (live) (HS Ex 0604);  tomatoes (HS 0702);  onions (HS 0703.101);  cabbages (HS 0704.001);  carrots (HS 0706.001 );  
okra (HS 0709.003);  pumpkin (HS 0709.004);  sweet peppers (HS 0709. 006);  other vegetables (HS 0709. 009);  dried vegetables (H S 
0712.00); coconut, Brazil nuts and cashew nuts fresh or dried (HS 0801 );  bananas, fresh or dried (HS 0803);  pineapples, avoca dos, 
mangoes, guavas, and mangosteens fresh or dried (HS Ex 0804);  peppers (HS 0904);  cinnamon (HS Ex 0906);  cloves (HS 0907.00),   
rice (HS 1006);  starches (HS 1108);  groundnuts (HS Ex 1202);  edib le vegetable oil (HS 1507-1515);  sausages and the like of meat, 
meat offal or animal blood (HS 1601);  cane or beet sugar (HS 1701);  cheezets and corn churls (HS Ex 1904);  bread, pastries, cakes, 
etc.  (HS 1905);  jams, fruit jellies, marmalades (HS 2007);  fruit and vegetables juices (HS 2009);  ice cream (HS 2105.001);  water and 
aerated beverages (HS 2202);  over proof rum (HS 2208.409);  pain ts and varnishes (HS 3208-3210);  shampoos (HS 3305.01);  hair  
conditioners (HS Ex 3305.90);  deodorant (HS 3307.20);  househol d soaps (HS 3401.191);  medicated soaps (HS 3401.111);  toilet soaps 
(HS 3401.112);  plastic tubing for the banana industry (HS Ex CH 39);  PVC pipes (HS Ex 3917.201);  poly-foam (HS Ex 3921);  pl astic 
bags (HS Ex 3923.20);  retreaded tyres (HS Ex 4012);  doors, wooden (HS 4418.20);  grass mats (HS Ex 4601);  corrugated cartons  (HS 
Ex 4819.10);  exercise books (HS 4829.20);  carpets, rugs and mats of vegetable pla iting materials (HS 5720);  T-shirts (HS Ex 6109);  
bed linens (HS 6302);  mattresses and mattress supports (HS Ex 9404).  
 
Source : The Import and Export (Control) Regulations No. 10 of 1992. 
83. Most imports are subject to automatic licensing;  the authorities indicate that this is for data-
collection reasons.  Non-automatic lic ensing is applied on:  products previously subject to quantitative 
restrictions under Article 56 of the Treaty of Cha guaramas, and currently subject to tariffication under 
Article 164 of the revised Treaty;26  imports of animals, poultry, livestock, and poultry products, 
                                                      
26 These items are:  aerated beverages, beer, stout, ale, and porter;   pasta;  candles;  solar water heaters;  
oxygen in cylinder;  carbon dioxide in cylinder;  acetylene in cyli nder;  candles;  chairs and other seats of wood 
and upholstered fabric;  other furniture of wood and upholstered fabric;  and mops. WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
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plants and plant products, pesticid es, drugs and antibiotics, firearms, fireworks, arms and ammunition;  
and chemicals controlled by the Montreal Protocol .  For all other products, licences are granted on 
request by the importer.  The import-licensing regi me is administered by the Ministry of Foreign 
Affairs, Commerce, and Trade.  The authorities stat e that they intend to rationalize Import and Export 
(Control) Regulations No. 10 of 1992 as it relates to minimizing the list.  The  2005 Budget Address 
mentioned that changes would be introduced to  the licensing of imports from other CARICOM 
countries. 
84. To import marine and freshwater products, an importer’s licence must be obtained from the 
Ministry of Foreign Affairs, Commerce, and Trade.  The importer must also have a Health Certificate 
issued by the Fisheries Division;  the importer must inform the Division at least 48 hours before the 
inspection is needed. 
85. Import permits are also required for certain imports controlled for sanitary, phytosanitary, 
health, or safety reasons (e.g. live animals, plants and seeds, arms and ammunition) (section (1)(ix)).  
A permit to import firearms must be obtained from th e Commissioner of Police prior to importation. 
(vii) Contingency measures 
(a) Anti-dumping and countervailing measures 
86. St. Vincent and the Grenadines has made no notifications to the WTO Anti-dumping 
Committee.  It has not notified its anti-dumping a nd countervailing legislation to the WTO.  Its 
notifications to the Committee on Subsidies and Countervailing Measures concern export subsidies 
(section (2)(ii)) 
87. Anti-dumping and Subsidies legislation is contained in the Customs Duties (Dumping and 
Subsidies) Act, Cap  304 of the Laws of St. Vincen t and the Grenadines.  Th is Law was applied once, 
in 1999, in relation to imports of flour from  Grenada;  however, no duties were imposed. 
(b) Safeguards 
88. St. Vincent and the Grenadines did not avail itsel f of the special safeguard provisions of the 
WTO Agreement on Agriculture, nor of the right to use the transitional safeguard mechanism in the 
Agreement on Textiles and Clothing. 
89. The use of safeguards is permitted by CARICOM rules.  As a CARICOM less developed 
country, St. Vincent and the Grenadines may invoke  the special provisions in Chapter 7 of the 
Revised Treaty of Chaguaramas.  Articles 150 and 164 (Safeguard Measures) entitles a disadvantaged 
country to limit imports of goods from other member states for up to three years, and to take such 
other measures as COTED may authorize.  This artic le superseded Articles 29 and 84 of the original 
Treaty.  In the 1990s St. Vincent and the Gren adines applied to the CARICOM Secretariat for 
derogations in accordance with the safeguards provis ions of the Treaty;  safeguards in the form of 
import quotas were applied to imports of beer and malt from third countries and CARICOM MDCs.  
However, these  measures have  been in place since 2001. 
(viii) Technical regulations and standards 
90. The St. Vincent and the Grenadines Bureau of Standards (SVGBS) has been notified to the 
Committee on Technical Barriers to Trade as the enquiry point for standards, technical regulations, Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 21 
 
 
certification, conformity assessment procedures and metrological services.27  The SVGBS has 
accepted the Code of Good Practice for the Prepar ation, Adoption and Application of Standards 
contained in Annex 3 to the TBT Agreement.28  St. Vincent and the Grenadines has made no other 
notifications to the TBT Committee. 
91. The SVGBS is responsible for the preparation,  promotion, and implementation of national 
standards in relation to goods, services, processors , and practices.  Some national standards are 
compulsory (technical regulations within the me aning of the TBT Agreement), and others are 
voluntary.  The authorities stated in the context of th is review that technical regulations and standards 
are based on and/or adopted from international sta ndards of ISO, CODEX and IEC.  The SVGBS has 
membership in Codex Alimentarius and the CA RICOM Regional Organization for Standards and 
Quality (CROSQ). 
92. Notices of all technical regulations and standards are published in the Official Government  
Gazette .  The general public is also informed thr ough the local press.  Technical regulations and 
standards are published by the SVGBS, and the existence of national standards is made known 
through the press and in the SVGBS Standards Catalogue . 
93. Standardization, testing, and type approval of goods are regulated by the Standards Act No. 
70 of 1992, implemented in 1998 and amended by Ac t No. 28 of 2001.  The Standards Act established 
the SVGBS and covers technical regulations a nd standards for goods, services, and processes and 
practices.  The SVGBS is entitled to declare and revi ew standards, and provide testing and calibration 
services;  it may also act as an advisor to the priv ate sector in quality control issues.  The general 
affairs of the SVGBS are managed by a National Standa rds Council (NSC), appointed by the Cabinet.  
The NSC is an intergovernmental body, with public a nd private sector and consumer participation;  it 
is a member of the International Organization for Standardization (ISO), the Pan American Standards 
Commission (COPANT), and the Caribbean Common Market Standards Council (CCMSC).  It is also the national contact point for the Codex Alimentari us Commission.  The NSC's main responsibility is 
to determine and approve policy guidelines to ensure that the standardization activities pursued by the 
SVGBS play a role in the development of the economy. 
94. Technical regulations or standards are developed by technical committees, or in some cases 
they may be developed and proposed by other natio nal organizations and ins titutions.  The first source 
for the development of national standards is CARICOM standards (standards developed by the 
CROSQ) followed by other international standard s, which are generally adopted or adapted. 
95. On the recommendation of the SVGBS, the relevant Minister may declare a standard to be 
compulsory.  These technical regulations are intended primarily to protect health and safety, prevent 
fraud or deception, ensure quality in goods produ ced for export, or ensure quality when supply is 
restricted.  Imports of goods that are subject to technical regulations must be accompanied by a certificate of examination and compliance with the st andard issued by a laboratory recognized by the 
SVGBS or similar institution in the country of origin .  Otherwise they are subject to examination of 
samples.  Compliance with technical regulations may be monitored randomly by inspectors appointed by the Bureau.  There are no certification bodies in St. Vincent and the Grenadines, but the SVGBS is 
authorized to certify products and services.  The SVGBS may grant licences to use the St. Vincent and 
the Grenadines Standard Mark where there is a domes tic standard for the product.  The Standard Mark 
is the property of the Bureau. 
                                                     
 
27 WTO document G/TBT/2/Add.71, 10 December 2002. 
28 WTO document G/TBT/CS/N/150, 9 September 2002. WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
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96. As at March 2007, the SVGBS had developed 41 St. Vincent and the Grenadines national 
standards, of which six were compulsory (technical  regulations), dealing ma inly with labelling (five) 
and specification for tyres (one).29  Since 2001, no new technical regulations have been declared.  
However, 12 standards covering the areas of cons truction materials and food products have been 
recommended by the NSC to be declared as technical regulations. 
(ix) Sanitary and phytosanitary measures 
97. The Animal (Disease and Importation) Control Ac t (Cap 49 of the Laws of St. Vincent and 
the Grenadines, Revised Edition, 1990), and the Plant Protection Act No. 15 of 2005, which supersedes the Plant Protection Act No. 22 of 1998 comprise the main legislation on sanitary and 
phytosanitary issues, respectively.  St. Vincent and the Grenadines notified the Plant Protection Bill, 
SROs No. 1/28/43 of 2004, which later became the Plant Protection Act of 2005, to the WTO 
Committee on Sanitary and Phytosanitary Measures (SPS) as an Act to prevent the introduction and to control the spread of plant pests, to protect plant resources, to facilitate trade in plants and plant 
products, and to regulate matters related thereto.
30  No other notifications have been made to the 
Committee. 
98. The Ministry of Agriculture, Forestry and Fi sheries addresses issues  of phytosanitary and 
sanitary measures in agriculture, livestock and crops.   The Ministry of Health and the Environment has 
responsibility for sanitary measures, as it relates to health  and food safety.  Under this new arrangement, 
introduced in 2000, the focal point for St. Vincent an d the Grenadines on phytosanitary measures, is the 
contact person or designated he ad of the newly established Nati onal Plant Protection Organisation 
(NPPO).  The Plant Protection Act of 2005, delegates the Ministry with responsibility for Agriculture as 
the designated National Plant Protection Organisation.  The Minister for Agriculture is obligated to report the name of the NPPO to th e International Plant Pr otection Convention Secretariat (IPPCS).  The 
list of duties of the NPPO is detailed in Part 11 Administration, of the Plant Protection Act of 2005. 
99. Further to this, the Ministry of Agriculture has pr epared a draft Bill to be read in Parliament in 
2007 on matters pertaining to "Agric ulture Health and Food Safety".   A SVG Animal (National and 
International) Movement and Diseas es Bill, relating to anti-mortem and post-mortem inspections, is in 
the drafting process. 
100. All food items must be inspected and certified on Customs declarations as being fit for human 
consumption.  Imports of live animals, plants, and seeds are subject to quarantine regulations and 
require  import licences.  Live animals, birds, and poultry, require a permit by the Chief Veterinary 
Officer and an import licence.  The authorities note that licences are generally granted within 
48 hours. 
101. Imports of all restricted articles as well as imports from countries where there is evidence of 
pests, require the presentation of a phytosanitary certificate.  A phytosanitary certificate from the 
exporting country is also required on all shipments of  fresh fruit and vegetables.  A sanitary certificate 
is required for meat imports;  the certificate must be provided by the appropriate government agency 
in the exporting country.  In February 2007, a temporary ban was placed on all poultry imports from 
the United Kingdom, in light of the outbreak of Avian Influenza. 
102. Imports of pesticides require a permit from th e Pesticides Control Board, under the Pesticide 
Control Act No. 7 of 1975.  The import of controll ed drugs requires an impo rt licence issued by the 
                                                     
 
29 SVGBS online information.  Viewed at:  http://www.gov.vc/Govt/Government/Executive/Ministries/ 
Telecommunications/Bureau S/Library.asp?a=3049. 
30 WTO document G/SPS/N/VCT/1, 11 January 2005. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 23 
 
 
Ministry of Health, under Drugs (Prevention and Mi suse) Act No. 22 of 1988.  Applications for a 
pesticide permit are available online from the Mini stry of Agriculture, Forestry and Fisheries.31 
103. In early 2007, St. Vincent and the Grenadin es made a submission to the SPS Committee in 
which it stressed the adverse effects on its exporters , and especially small farmers, caused by what it 
described as "the proliferation of standards devel oped by private interest groups without any reference 
to the SPS Agreement or consultation with national authorities".32  According to a government study 
cited in the submission, these standards are estimat ed to impose costs of more than US$3 million on 
approximately 3,000 farmers.  St. Vincent and th e Grenadines therefore urged the consideration of 
four steps:  (a) companies and corporations that  institute these standards should make available a 
support facility for producers in small vulnerable ec onomies; (b) standards should be more flexible 
and take into consideration specifi c crops and country situations;  (c ) producers should be involved as 
much as possible in the development of standards;   and (d) when standards are being developed, 
consideration should be given to compliance with the SPS Agreement and should involve the input of 
international standard setting bodies. 
(2) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Documentation, export taxes, and restrictions 
104. Exporters are not required to register, but must  obtain a tax registration number from both the 
Customs and Excise Department a nd the Inland Revenue Department. 
105. St. Vincent and the Grenadines requires up to sev en documents for exports:  an export bill;  
commercial invoice;  certificate of origin (when requir ed);  an original airway bill or bill of lading; 
phytosanitary certificates (when required);  health  certificates (when required);  and export permits 
(when required).  Export declarations require verifi cation of tariff numbers and customs values.  Not 
all exports need to be inspected; most agricultu ral exports are inspected by the Plant Quarantine 
Department of the Ministry of Agriculture, and in spection is required whenever there are suspicious 
exports (e.g. drugs).  Export insp ections have increased since the institution of the VAT, in order to 
verify that goods have indeed been expo rted and hence are exempt from taxation. 
106. St. Vincent and the Grenadines applies no tax es or levies on exports.  Exports are exempt 
from internal taxes.  Preshipment inspection of ex ports is not generally required, but the authorities 
note that it takes place for agricultural exports to Barbados.  Since 2005, these inspections have been 
performed by officials in St. Vincent and the Grenadines. 
107. Exports of birds under HS 0106.99 are restricted and, in general, CITES rules are followed.  
Under Import and Export (Control) Re gulations No. 10 of 1992, a licence  is required for exports of:  
live swine (HS 0103);  live sheep and goats (HS 0104) ;  and live, frozen, fresh or chilled, and 
prepared or preserved lobsters (HS Ex 0306.001, 0306 .003, Ex 0306.009, and Ex 1605.30).  In 2002, 
restrictions were lifted on exports of dried co conuts, potatoes, oranges, and plantains.  A 
phytosanitary certificate from the Ministry of Agri culture must be obtained for the export of local 
produce or plants and plant materials. 
108. The St. Vincent and the Grenadines Banana Growers Association (SVBGA) is a quasi-
governmental organization that has a monopoly on th e export of bananas;  conducts exports to the 
                                                      
31 Ministry of Agriculture, Forestry and Fisheries online information.  Viewed at:  http://www.gov.vc/ 
Govt/Government/Executive/Ministries/Agriculture&Fis heries/Agriculture/SRD/App lication%20for%20approv 
val%20of%20pesticides.pdf. 
32 WTO document G/SPS/GEN/766, 28 February 2007, p. 1.  WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 24 
 
 
United Kingdom through the Windward Islands  Banana Development and Exporting Company 
(WIBDECO) (Chapter IV(1)).  An export licence re quires farmers to pay a per-box fee to the SVBGA 
Association;  this amounts to an export tax.  The fee is adjusted periodically, but tends to fluctuate 
around EC$2 per box (i.e. about one sixth or one seventh of the normal market price).  A new licence 
is required for every shipment, regardless of the destin ation.  The applicant must state the amount that 
is to be shipped, and the destination.  In practi ce, export licences will not be issued for any shipments 
intended for the United Kingdom. 
109. Under the Export (Sea Foods) Regulations of 21 November 1967, a licence is required for the 
export of more than 500 lb of fish, turtle, lobster, conch, whelk, sea eggs, and oysters.  In order to 
export fresh fish, a shipper must obtain a health cer tificate from the Fisheries Division.  Seasonal bans 
apply for exports of some marine species,  including lobster, turtles, and conch. 
(ii) Export subsidies, financing, support, and promotion 
110. National Investment Promotion Incorporated  (NIPI) (Chapter II), acts as an export and 
investment promotion agency.  In June, 2005, the agency created the Export Development Office as a 
new division.  Its first order of business is to develop a National Export Strategy (NES).  This is 
expected to be completed shortly.  NIPI is r eceiving technical assistance from the International Trade 
Centre and the Commonwealth Secretariat, and has ha d a national consultant appointed to the process.  
At the first stakeholder symposium, held in N ovember 2006, the public and private sectors endorsed 
the outline of the sectors on which the NES will focus.  The five priority sectors identified by the NES 
are:  tourism;  information communication t echnology (e.g. improved connectivity);  light 
manufacturing (e.g. furniture);  agriculture/agri- processing (e.g. juices and sauces);  and creative 
industries (e.g. music).  Among the activities that ma y be called for in the NES are trade fairs, a 
website, and national branding.  Two legislative prop osals that are in the early stages of development 
would provide support for these activities: a Small Business Development Bill 2007, and an Information and Communication Technology Servi ces Investment Incentives Bill, 2007.  Another 
activity in NIPI is the establishment of an online export  help desk.  This site, which is expected to be 
online by 2008, would provide information and ad vice to national exporters of goods and services. 
111. St. Vincent and the Grenadines has not made  any notification to the WTO Committee on 
Agriculture with respect to export subsidies for agricultural products. 
112. The Fiscal Incentives Act Cap 336 of the Laws of  St. Vincent and the Grenadines (Revised 
Edition, 1990) makes provision for export subsidies.   St. Vincent and the Grenadines has notified to 
the Committee on Subsidies and Countervailing Measu res (SCM) The Fiscal Incentives Act No. 5 of 
1982 amended by Act No. 20 of 1987 and Act No . 16 of 1991, as providing export subsidies.
33  In a 
decision of 27 October 2006 the SCM Committee agreed to continue until 31 December 2007 the extension and continuation granted in G/SCM/91 and Adds.1-3 of the transition period, under Article 
27.2(b) of the SCM Agreement, for the elimination of  export subsidies that take the form of full or 
partial exemptions from import duties and internal  taxes, and that were in existence under the 
programme on 1 September 2001.
34  St. Vincent and the Grenadines and the other OECS countries, 
together with eight other WTO Members, made a proposal in early 2006 that would extend export 
                                                      
33 WTO documents G/SCM/N/74/VCT, 4 January 2002;  G/SCM/N/71/VCT, 20 March 2002;  
G/SCM/N/99/VCT, 26 August 2003; G/SCM/N/114/VCT, 7 July 2004;  G/SCM/N/128/VCT, 31 May 2005;  
G/SCM/N/146/VCT, 4 October  2006;  and G/SCM/Q3/VCT/1-8, 8 April 2002 to 26 July 2002. 
34 WTO document G/SCM/91/Add.4, 13 November 2006. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 25 
 
 
subsidies until 2018.35  In July 2007, the General Council decided to extend the date for the 
dismantlement of export subsidies to end 2015.  Members benefiting from the extension must take, 
from 1 January 2008, the necessary internal steps w ith a view to eliminating export subsidies under 
the programme before the end of the final two-y ear phase-out period.  In addition, from 1 January 
2008 and no later than 31 December 2009, the Me mber must notify each beneficiary under the 
programme indicating that no export subsidies with in the meaning of SCM Article 3.1(a) will be 
granted or maintained beyond the end of calendar year 2015.36 
113. Benefits under the Fiscal Incentives Act also include import duty and GCT exemptions for 
imports of machinery, equipment, spare parts, build ing materials, and raw and packaging materials to 
be used in eligible enterprises.  The subsidies granted under the Fiscal Incentive Act in 2003, 2004, 
and 2005 were EC$13,061,989, EC$12,84 4,269 and EC$8,274,908, respectively.37  Total exports by 
firms benefiting from fiscal incentives were EC $32,999,345 in 2003;  EC$35,469,211 in 2004;  and 
EC$37,883,337 in 2005, representi ng some 32%, 35%, and 36% of to tal exports, respectively.  
Between 2001 and 2006, incentives under the Fiscal Incentives Act were granted to 23 manufacturing 
enterprises, new and expanded, in office furnitu re and general household furniture, clothing and 
textiles, paint and trowel plaster, concrete roof, wall and floor tiles,  balusters, polyethylene, water 
tanks and other plastic products, aluminum, PVC, an d glass products, aggregat es and boulders, and a 
range of agri-processing products.38 
114. The Act provides for income tax relief in the fo rm of tax credits to enterprises once their tax 
holiday has expired.  This relief is contingent  on exports and is granted on profits accruing from 
exports of the approved products (products granted benefits under the Act).  Relief is provided for 
non-traditional exports to all countries;  however, fo r exports to Guyana, Jamaica, and Trinidad and 
Tobago, relief is only for five years immediately fo llowing expiry of the tax-holiday period. Relief is 
granted if export profits amount to 10% or more of the enterprise's total profits.  The percentage of 
relief depends on the share of export profits in tota l profits.  For a share between 10% and less than 
21%, the maximum tax relief is 25%;  between 21% and less than 41%, relief is 35%;  41% to less 
than 61%, relief is 45%;  and for a share of more  than 61%, the maximum perc entage of tax relief is 
50%.39  Allowances may only be made once for any specific approved product. 
115. Manufacturing enterprises not benefiting from fiscal concessions under Fiscal Incentives Act 
No. 5 of 1982 are taxed at special corporate rates on their export production (section (3)(i)). 
116. Exporters have access to the export financi ng guarantee schemes and insurance facilities 
provided by the ECCB through the Export Credit Guarantee Scheme, covering political and 
commercial risks.  The authorities noted in the c ontext of this Review that foreign-controlled 
companies are generally excluded from participation in the guarantee scheme, but that exceptions are 
made for enterprises that are substantial foreign exch ange earners, or large employers.  Exporters may 
also benefit from support from the OECS Export Development Unit (EDU). 
                                                      
35 WTO document G/SCM/W/535, 12 April 2006.  In addition to the OECS countries, this proposal 
was made by Barbados, Belize, the Dominican Republic, El Salvador; Fiji, Jamaica, Mauritius, and Papua New 
Guinea. 
36 The proposal to extend the period is contained in WTO documents G/SCM/W/542, 2 July 2007 and 
G/SCM/W/535, G/SCM/W/542/Suppl.1, 9 July 2007. 
37 WTO document G/SCM/N/146/VCT, 4 October 2006. 
38 St. Vincent and the Grenadines Government (2007), p. 6. 
39 Export profits as a share of tota l profits are calculated using the formula (E*P)/S, where E represents 
the proceeds from export sales of the approved product  for the year, P represents the profits made by the 
enterprise from sales of the approved product for the year, and S represents th e proceeds of all sales for the year. WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 26 
 
 
117. The Export Free Zones Act No. 15 of 1999, aimed at promoting the development of free 
zones, grants the Port Authority responsibility fo r the approval and administration of free zones.  
Enterprises producing goods or services may operate in a free zone.  Incentives include:  exemption 
from import and export licensing requirements;  total income tax relief on the profits of manufacturing 
operations;  total income tax relie f on international trading activities;  and exemption from payment of 
customs duties.  Benefits are conditional on the expor t of all production.  Enterprises operating in the 
free zone may not borrow from banks located in the customs territory of St. Vincent and the 
Grenadines.  There are currently no free zones in ope ration in St. Vincent and the Grenadines.  A part 
of the Diamond Estate on the island of St. Vincen t is designated as a free zone, but does not operate 
on this basis.  The authorities indicate that one app lication was made by a group of Asian investors for 
the establishment of a free zone in St. Vincen t and the Grenadines, but during inter-agency 
discussions of this application in 2004-05 concerns were raised regarding the applicability of national 
law within the proposed zone.  The matter remains under consideration. 
(3) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Legal framework for business and taxation 
118. Companies must be incorporated under Companies Act No. 8 of 1994 and the Companies 
Regulation of 1996, with the exception of sole proprietorship and partnerships of less than 
20 members carrying the surnames of all partners , which do not require any legal formalities for 
registration.  The Companies Act provides for th e establishment of three types of company:  
companies limited by guarantee;  companies limited by share capital and unlimited companies;  and public and private companies.  In addition, the la w distinguishes between domestic, external, and non-
profit companies.  There are differences in the ty pe and degree of information that domestic and 
external companies are required to provide.  In th e view of the authorities, while external companies 
were required to file different forms, the le vel of information required of them was not 
disproportionately higher vis-à-vis  domestic companies. 
119. Corporate income tax  is imposed at a flat rate of 37.5% on profits, down from 40% prior to 
2007.  Manufacturing enterprises registered under the Co mpanies Act are subject to lower rates;  these 
companies are also required to submit annual fina ncial statements to the Comptroller of Inland 
Revenue in order to maintain their status unde r this programme.  These rates depend on the 
destination for the exports, such that profits are taxable at 30% when the destination is the local 
market or other OECS countries, 25% when the destination is non-OECS CARICOM countries, and 
15% when the destination is outside of CARICOM.  These provisions came into effect in 2002.  A 
withholding tax is charged on payments to non-reside nts:  the rates are 10% for rent, 15% for inter-
company dividends, and 20% for other payments.  Propert y tax is levied at 2.5% of the annual rental 
value for hotels and guest houses.  Capital gains are tax free. 
120. St. Vincent and the Grenadines has an array of  legislation dealing with offshore firms, 
including the St. Vincent and the Grenadines Financial Services Authority Act No. 28 of 2003;  the Registered Agent and Trustee Licensing Act No. 15 of 1996 (as amended by Act No. 102 2004);  the 
International Trusts Act No. 20 of  1996 (as amended by Act No. 39 of 1996 and Act No. 27 of 2002);  
the International Banks Act No. 40 of 2004;  the International Business Companies Act No. 18 of 
1996 (as amended by Act No. 44 of 2002 and SRO 35 of 2004);  the International Insurance 
Amendment and Consolidation Act No. 13 of 1998;   and the Mutual Funds Act No. 6 of 1997 (as 
amended by Act No. 12 of 1998 and Act No. 23 of 2005). 
121. The OECD identified 41 countries and other jurisdictions as "tax havens" in 2000.  
St. Vincent and the Grenadines signed a "Commitm ent Letter" with the OECD dated 26 February 
2002 on transparency and the exchange of informat ion, and was removed from the "uncooperative" Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 27 
 
 
list.  In its letter to the OECD, St. Vincent and the Grenadines committed to transparency measures, 
and to share information in criminal tax matters by January 2004, and in civil tax matters by January 
2006.  In this respect, Exchange of Informati on Act No. 29 of 2002 provides for assisting overseas 
regulatory authorities to obtain information from wi thin St. Vincent and the Grenadines.  Upon the 
request of a foreign regulatory authority, and if cer tain conditions are met, any one of nine national 
regulatory authorities may seek information from pe rsons in St. Vincent and the Grenadines, and 
disclose that information to the foreign regulatory authority. 
(ii) Incentives and assistance 
122. Incentives exist in the form of tax holidays, import duty exemptions, repatriation of profits, 
and withholding tax exemptions.  Incentives are granted under Fiscal Incentives Act No. 5 of 1982, 
and under Hotels Aid Act (Cap 339 and 340 of the La ws of St. Vincent and the Grenadines, Revised 
Edition, 1990), (see Chapter IV).  Export incenti ves are discussed in section (2)(ii) above.  The 
incentives schemes are managed by the Ministry of  Telecommunications, Science, Technology, and 
Industry.  Applications for incentive benefits are su bmitted to the Ministry, which decides on the level 
and type of concessions to be granted. 
123. St. Vincent Marketing Corporation provides mark eting support to farmers, who also receive 
support services from the Ministry of Agriculture.  Th ey have traditionally been exempt from income 
tax, and are also granted 75% import-duty relief on pick-up trucks.  The National Investment  
Promotions Inc. Corporation provides investment promotion services. 
124. Enterprises of St. Vincent and the Grenadines may receive concessionary credits funded or 
guaranteed by the Caribbean Development Bank (C DB).  Loans from ordinary capital resources face 
an annual rate of 6% (public sector) or 8% (private sector) per year, with a repayment period of up to 
22 years.  Loans from special fund resources are gr anted to St. Vincent and the Grenadines at an 
annual interest rate of 2.5%, with a repaymen t period of 30 years, including a grace period of 
10 years.40 
(iii) Competition policy and regulatory issues 
(a) Competition policy 
125. Fair Competition Act No. 23 of 1999 is the main  competition policy legislation.  The Act is 
aimed "at ensuring fair competition in the marke ting of goods and services in St. Vincent and the 
Grenadines".  The Fair Trading Commission called for in  this Act has had not yet been established.  In 
place of this national measure, the authorities intend to adopt the CARICOM model competition law, 
and delegate authority for competition policy to a subregional body acting on behalf of all OECS 
countries.  Among the issues to be resolved is whet her national commissions are to be created, and 
precisely what relationship these institutions would ha ve with the subregional body.  The authorities 
indicate that the Attorney General’s office is in the process of reviewing that model.  The intention is 
to enact the legislation before end 2007, concu rrent with the creation of the subregional body. 
126. The Fair Competition Act regulates uncompetitiv e practices, including agreements lessening 
competition, agreements containing exclusionary clauses, abuse of dominant position, and collective 
agreements by suppliers and dealers.  The excep tions are state monopolies, which, the authorities 
note, are allowed by CARICOM legislation under Protocol II of the Revision of the Treaty of 
                                                      
40 Caribbean Development Bank online informati on.  Viewed at:  http://www.caribank.org/ 
CDBWebPages.nsf/Basicinfo/$File/Basicinformation1.pdf?OpenElement. WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 28 
 
 
Chaguaramas.  An example of this is the monopoly held by the Agricultural Input Warehouse in the 
importation of bulk sugar. 
127. Abuse of dominant position is assumed if, among other things, an enterprise restricts entry to 
a market;  deters competitive conduct;  imposes unfai r purchase or selling prices;  limits production to 
the prejudice of consumers;  or makes the conc lusion of contracts dependent on supplementary 
obligations.  Collective agreements by suppliers or deal ers that restrict supply or  orders are prohibited.  
The Act declares void any conditions that seek to impose minimum resale prices agreed between two 
or more suppliers.  The Act does not apply to provis ions relating to the use, licence, or assignment of 
rights by virtue of a patent, trade mark, or copyright. 
128. Legal action must be initiated within three year s of when the cause for action arose.  The law 
provides that if, as a result of an investigation,  the Fair Trading Commission (not yet created) 
established by the 1999 Act, finds violation of any pr ovision of the Act, it may be bring the case to 
Court to request civil remedies.  Civil liabilities are determined by the Court taking into account the damages caused.  The Commission's rulings and deci sions may be appealed in Court.  There are no 
penal remedies for uncompetitive practices that violate the provisions of the Act. 
129. The Distribution of Goods Act Cap 117 of the Laws of St. Vincent and the Grenadines, 
Revised Edition 1990 deals with some aspects of cons umer protection, but is not comprehensive and, 
according to the authorities, h as few enforcement provisions.  A new law, currently under 
consideration, would replace the c onsumer-protection provisions of this  Act.  The new legislation is 
expected to be presented to Parliament in the third quarter of 2007. 
(b) Price controls 
130. Responsibility for enforcing price controls is  with the Ministry of Telecommunications, 
Science, Technology, and Industry.  There are ab out 100 items under price control, covering food 
products (e.g. milk, flour, rice), pharmaceuticals, st ationery and hardware pr oducts, petrol, and motor 
vehicles.  Prices are in general controlled by setti ng a fixed mark-up for wholesalers and/or retailers.  
Products included in the First Schedule of the Supp lies Control Act are subject to maximum mark-ups 
at both the wholesale and retail levels (e.g. rice a nd flour).  The mark-up ranges from 5% to 15% for 
wholesalers;  and 10% to 20% for retailers, with some exceptions.  Products included in the Second 
Schedule are subject to a maximum mark-up at the retail level only, ranging from 15% to 100%.  
Motor vehicles are subject to a maximum retail mark -up of 33%.  Wholesale mark-ups are calculated 
on the landed cost, while those at the retail level are calculated on the wholesale price.  LPG was 
added to the price-control list in 2005. 
131. According to the authorities, price controls ar e not enforced for all the products legally 
subject to control.  In some cases  the products in question no longer ex ist (e.g. certain types of juices 
and biscuits), while in other cases the items are not  considered important components in the consumer 
basket.  The main products still subject to control ar e motor vehicles and parts, fuel, milk, flour, sugar, 
and other essentials.  The authorities note that the Ministry is presently undertaking a study with the 
aim of rationalizing the number of items on the price control list.  It is expected that a number of 
products that are no longer considered essential woul d be removed.  The items that are strictly 
monitored such as petroleum products, basic food items, prescription drugs and motor vehicles and vehicular parts are expected to remain. 
132. St. Vincent and the Grenadines operates a price stability system for petrol, diesel, and 
kerosene.  For each of these products, a fixed price is set periodically.  Whenever the global market 
price drops, the retailer must return the differen ce between the fixed and the market prices to the Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 29 
 
 
Government.  Conversely, when the global market price rises above the fixe d price, the Government 
is obliged to make up the difference to the retaile r between the fixed price and actual price.  When 
global oil prices rose substantially  during 2005-06, this policy placed  a strain on the Government’s 
finances.  The experience led the Government to ad just the fixed price more frequently.  Whereas in 
2000-03 price adjustments were rare and relatively sm all, three adjustments were made in 2006 alone. 
133. The Agricultural Input Warehouse is the sole impor ter of sugar in bulk (see below).  The price 
of refined sugar is determined by tender and influenced by the warehouse’s purchasing decisions.  
The agency sells sugar to intermediaries, who then  market it to consumers.  The wholesale and retail 
prices of sugar are controlled;  the price is adjusted periodically. 
(c) State-owned enterprises and privatization 
134. St. Vincent and the Grenadines has not notified to  the WTO the existence of any state-trading 
enterprise, as defined by Article XVII of the Ge neral Agreement on Tariffs and Trade of 1994. 
135. Two new institutions were established during th e review period replacing the St. Vincent and 
the Grenadines Marketing Corporation.  National Properties Limited (NPL), was established in 2003 
as an independent, statutory body.  In addition to  owning government real estate, NPL also has two 
divisions that engage in the marketing of goods.  The Produce Division of NPL is responsible for the 
marketing (domestic sales) and e xport of fresh produce, but does not have a monopoly over either 
activity.  It trades mainly in root crops such as d asheens, potatoes, and eddoes, as well as plantains.  
The unit operates on a for-profit basis;  its main objec tive is to obtain the best price for producers.  
About 40% of the produce handled by NPL is sold domestically.  NPL accounts for only a small share 
of domestic produce sales;  but it accounts for more th an half of export sales.  The NPL offers some 
export market intelligence to exporters of these co mmodities, such as prices and specifications.  The 
Produce and Commodity Act of 2006 provides the legal framework for a government undertaking to have the powers to (a) buy and sell goods;  (b) fi x and determine grading of produce;  (c) export 
produce;  (d) establish and operate depots agencies for the purchase, delivery and sale of produce;  
and (e) establish and operate facilities for preparing and processing any produce. 
136. The Supermarket Division of the NPL se lls both domestically produced and imported 
produce.  The supermarket through which these goods are sold is National Properties Food City, with 
one outlet located in Kingstown.  It trades in a wi de range of commodities, including liquor, fruit and 
vegetables, dairy products, baked goods, non-presc ription drugs, canned goods, toiletries, meats, 
processed foods, stationery, household items, and utensils.  It does not have a monopoly over the 
import or sale of any of these goods.  The authorities state that the underlying objective of the 
institution is to provide go ods at affordable prices, and to encour age discipline on inflation.  The retail 
price is based both upon the import price and the prices charged by competing supermarkets.  The 
supermarket is profitable. 
137. In 2006, the Agricultural Input Warehouse was granted some of the functions previously 
performed by the Marketing Corporation.  It has a de facto monopoly on the import of dry fertilizers, 
and has a legal monopoly on the import of sugar.  The agency also imports other inputs, such as tools, 
seeds, and pesticides, but does not have a monopoly for these items.  (The monopoly on the import of milk, which was in the hands of the St. Vincen t and the Grenadines Marketing Corporation, was 
abolished in 2005.)  The agency sells the dry fer tilizers and seeds to farmers;  the agency seeks to 
reduce the volatility of prices in this area.  It has no role in the export of agricultural products. 
138. Diamond Dairies Ltd. formerly had a monopoly on the import of milk, but ceased operation in 
2002.  Milk may now be imported by private importers. WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 30 
 
 
139. Other Government-owned services entities are the Central Water and Sewa ge Authority, the 
St. Vincent Electricity Services (VINLEC), and the St. Vincent Postal Services; each of these operates 
as a monopoly.  The Government also owns the National Commercial Bank. 
140. St. Vincent and the Grenadines has no overarchi ng policy with respect to privatization. 
(iv) Government procurement 
141. St. Vincent and the Grenadines is not a pa rty to the WTO Plurilateral Agreement on 
Government Procurement. 
142. Government procurement accounts for a sizeable part of GDP:  purchases of goods and 
services by the Central Government totalled  EC$72.9 million in 2005, or 6.2% of GDP, while capital 
expenditure was EC$83.3 million (7% of GDP).41 
143. Government procurement has its legal basi s in the Purchases and Tenders Regulations, 
Statutory Rules and Orders No. 13 of 1967.  For amounts over EC$20,000, procurement for governmental agencies is centralized through a Cent ral Tenders Board, and tenders must be invited 
through notices in the Government Gazette .  At least three suppliers must be short-listed and 
examined.  Tenders are advertised generally only in  St. Vincent and the Grenadines;  in the case of 
projects funded by international financial ins titutions and other donors,  however, tenders are 
advertised internationally.  In all cases, however , tenders are open for international bidding.  The 
authorities note that no preferences are granted to lo cal suppliers or companies or to those from other 
CARICOM countries, except for some projects fi nanced by the Caribbean Development Bank 
(depending on the ultimate source of the funding).  Domestic legislation does not mandate nor 
prohibit the granting of preferences.  The main fo cus of the Government is on efficiency, but local 
procurement is sometimes stressed in s ubcontracting or other small contracts. 
144. Tenders are generally open, and decisions are based on the most advantageous offer; this 
often means the lowest price, but the credibility of the bidder is also taken into account.  Lists of suppliers are kept, and potential supp liers should be part of  a registry.  Bidding is  nevertheless open to 
providers that are not a part of the registry.  Contracts funded by the Caribbean Development Bank 
have special procurement rules;  they generally re quire an 8% margin of preference for local or 
regional suppliers. 
(v) Intellectual property rights 
145. St. Vincent and the Grenadines has not notified contact point(s) for intellectual property 
rights.  No existing legislation with respect to the protection of intellectual property rights has been 
notified to the WTO. 
146. While several new provisions of intellectual property law have been enacted during the 
review period, the authorities indicate that the comple xity of the subject matter has resulted in delays 
in the drafting of regulations, and hence the entry into force, of these Acts.  The authorities further 
indicate that, while they had obtained assistance fro m WIPO in intellectual property matters, specific 
technical assistance in the drafting of regulations is urgently needed. 
147. St. Vincent and the Grenadines is a member of  the World Intellectual Property Organization 
and party to a number of intellectua l property conventions (Table III.7). 
                                                     
 
41 ECCB (2006). Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 31 
 
 
Table III.7 
Membership in international instrume nts on intellectual property rights, 2007  
Convention/Agreement Accession 
Convention Establishing the World Intellectu al Property Organization (1970) 29 August 1995 
Paris Convention for the Protection of Industri al Property, Stockholm Text (1967) 29 August 1995 
Berne Convention for the Protection of Literary a nd Artistic Works, Paris Text (1971) 29 August 1995 
Patent Cooperation Treaty (1970) 6 August 2002 
 
Source:  World Intellectual Property Organization, online information.  Viewed at:  http://www.wipo.int. 
148. The Commerce and Intellectual Property Office (C IPO), under the Ministry of Legal Affairs, 
is responsible for granting commercial rights to th e owners of intellectual property.  CIPO is a 
statutory agency established in December, 2003, unde r Act No. 43 of 2003;  it became operational in 
March, 2004.  The CIPO functio ns as regulator of trade names,  unincorporated associations, and 
domestic and external companies. The CIPO administ ers:  the Trade Marks Act, 2003;  Trade Marks 
Regulations, 2004;  Patents Act, Cap 110;  Pate nts (Amendment) Rules, 1998;  Registration of 
United Kingdom Patents Act, Cap 112;  Registrati on of United Kingdom Patent (Amendment) Rules, 
No. 29 of 2001;  Copyright Act, 2003;  Copyright (Specified Countries) Order, 2005;  and 
Geographical Indications Act, 2004.  The agency wi ll administer the Patents Act, 2004, the Layout-
Designs of Integrated Circuits Act, 2005 and the Industrial Designs Act, 2005 on their entry into 
force.42 
(a) Trade marks 149. Trade marks are protected under Trade Marks Act,  No. 46 of 2003, which entered into force 
on 18 May 2004.  Two types of legal protection are ava ilable for trade marks:  a statutory right arising 
from registration of the mark, which entitles the owne r to bring an action to stop infringement;  and 
the common law right to bring an action for "passing off" against the unauthorized user of a mark 
whether registered or not.  Only registered marks can  be licensed.  In order to qualify for protection, a 
trade mark must:  be capable of being graphically represented;  be distinctive;  not deceive or be 
scandalous;  not be similar to a registered trade mark ;  and not contain a sign that is proscribed for use 
as a trade mark.  A trade mark is protected for ten years from the date of fili ng, renewable for further 
periods of ten years. 
150. Between 2001 and 2006, there were 639 trade ma rk registrations in St. Vincent and the 
Grenadines, and 37 patent registrations (Table III.8). 
151. The Trade Marks Act affords non-exclusive pr otection to special types of trade marks, 
including collective trade marks and certification trade marks.  Unlawful use or falsification of a trade 
mark is punishable by conviction and a fine up to a maximum of EC$250,000. 
Table III.8 
Trade marks and patents issued by St. Vincent and the Grenadines, 2001-06 
 2001 2002 2003 2004 2005 2006 Total 
Trade marks 125 151 101 79 160 23 639 
Patents 5 8 10 6 7 1 37 
 
Source:  Information supplied by the authorities. 
                                                      
42 CIPO online information.  Viewed at:  http://www.gov.vc/govt/cipo/aboutus.asp?a=2947. WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
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(b) Patents 
152. The grant of patents is governed by the Pate nts Act, Chapter 110, and the Registration of 
United Kingdom Patents Act, Chapter 112, con cerned with the local re-registration of 
United Kingdom and European grants only.  Patents granted under this Act are issued on the basis of a 
prior grant from the United Kingdom Patent Office or the European Patent Office within three years 
of the date of local application.  Apart from th e Cap 112 re-registration system, an application for a 
patent may be made under Chapter 110 by an invento r-applicant, without any need for a prior grant. 
153. Under the legislation in force (early 2007), the only legal requirement for patentability is 
novelty:  nothing is specifically excluded from patent protection.  Patent protection lasts for a 
maximum of 14 years under Cap 110 and for the period of the foreign grant in the case of re-
registrations under Cap 112.  Protection may lapse befo re the statutory period expires, if the patent 
owner does not pay the annual fees.  The special ch aracteristics of patent legislation that grants 
exclusive priority rights to patent applications f iled in the United Kingdom prevents St. Vincent and 
the Grenadines from joining the Patent Cooperation Treaty, which provides priority rights to signatories on an MFN basis. 
154. The patent legislation is expected to be re pealed and replaced by the Patents Act of 2004, 
which was passed by Parliament in N ovember 2004 but is not yet in force.
43  The new law does not 
include provisions for compulsory licensi ng, and parallel imports are not allowed. 
(c) Industrial designs 
155. Industrial designs are protected through the Un ited Kingdom Designs Protection Act, Cap 116 
of the Laws of St. Vincent and the Grenadines.  In  accordance with the Act, the owner of any design 
registered in the United Kingdom has the same privile ges and rights as if it had been issued with an 
extension to St. Vincent and the Grenadines.  The period of protection is not specified.  The Industrial Designs Act, 2005, has been passed by Pa rliament but is not yet in force. 
(d) Copyright 
156. Copyright is regulated by Copyright Act, No. 21 of 2003, which entered into force on 
30 November 2004.  Registration of works is not  required and there is no system of voluntary 
registration.  To qualify for protection, a work must  be original, must have  passed the "idea stage", 
and have been fixed in some tangible form.  To benefit from protection, a work must have been 
created by citizens or residents of St. Vincent and the Grenadines, or in th e case of published works, 
the first publication must have taken place in St. Vincent and the Grenadines or in another country 
that has been specified in  subsidiary legislation. 
157. All performances taking place within the country are protected.  The author of a protected 
work enjoys commercial rights and moral rights.  Licensing of commercial rights is permitted.  
Protection for literary, dramatic, musical or artistic works of known authorship is the lifetime of 
author plus 50 years;  works of unknown authorsh ip are protected for 50 years from the end of the 
calendar year in which the work is made.  Also granted 50 years protection are computer generated 
works, sound recordings and films, broadcasts a nd cable programmes, typographical arrangements of 
published editions, and performances.
44 
                                                      
43 CIPO online information.  Viewed at:  http:// www.gov.vc/govt/cipo/intellectualproperty.asp?a=2729. 
44 CIPO online information.  Viewed at:  http:// www.gov.vc/govt/cipo/intellectualproperty.asp?a=2728. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 33 
 
 
(e) Other intellectual property rights 
158. St. Vincent and the Grenadines does not have legi slation on the protection of plant varieties or 
on undisclosed information.  Legislation to protect  layout designs of integrated circuits has been 
passed but is not yet in force. 
(f) Enforcement 
159. St. Vincent and the Grenadines has not submitted the WTO checklist of issues on 
enforcement. 
160. The 2003 Copyright Act strengthened the ability of the courts, the police and customs 
officials to enforce the rights of copyright owners .  Its enforcement provisions include:  allowing 
copyright owners to give notice to the Comptroller of  Customs to restrict the importation of infringing 
copies of protected works;  authorizing forcible entry and search of premises, and seizure of any 
infringing article;  a fine of EC$1,500 on summary conviction for a first offence and of EC$1,500 or 
imprisonment for a maximum of 12 months in the cases of unauthorized use.  For trade in counterfeit 
goods, the liability on summary conviction is a fine of EC$5,500, and in the case of recurrence, a fine determined by the Court or imprisonment for a maxi mum of two years.  For trade of illicit recordings, 
the liability on summary conviction is EC$2,500 or a term of imprisonment not exceeding 12 months;  
the liability on conviction is a fine of up to EC $50,000 or imprisonment for a maximum term of 
five years or both. 
161. The enforcement provisions of the Trade Marks Act allow the owner of a locally registered 
trade mark to apply to the High Court for an inju nction to stop infringement and/or an award of 
compensation.  The law provides for the seizure and (where necessary) di sposal of illegitimate 
infringing goods, and fines up to a maximum of  EC$250,000.  While there are no enforcement 
measures under the existing patent legislation,  the new patents law provides for fines and 
imprisonment.  The enforcement measures under the new industrial designs law contemplate fines of 
up to EC$5,000 and imprisonment of up to four years. 
IV. TRADE POLICIES BY SECTOR 
(1) A
GRICULTURE  
162. During the period under review, agriculture, and banana production in particular, has 
generally declined in terms of ove rall contribution to GDP.  In 2005, agriculture contributed 8.2% to 
GDP, down from 9.6% in 2001 (Chapter I).  The overa ll decline of the sector is related to declines in 
preferences, and vulnerability to ex ternal shocks and natural disasters.   Nevertheless, St. Vincent and 
the Grenadines continues to regard  agricultural exports as importa nt for earning foreign exchange, 
promoting employment, and poverty alleviation.45  Although the sector is dominated by bananas, there 
is some production of a range of root crops, in cluding yams, dasheens, eddoes, tannias and sweet 
potatoes, as well vegetables (sweet peppers, carrots, and tomatoes). 
163. During the review period the performance of th e agriculture sector has been uneven, with 
contractions in some years and e xpansion in others, although the gene ral trend in the sector has been 
contraction.  Output grew by 7.8% in 2002, but contracted by 2.2% in 2003, due to a drought and an estimated decline of 32.1% in banana production.
46  Due to the effects of  a hurricane in the last 
                                                      
45 Government of St. Vincent and the Grenadines online information.  Viewed at:  http://www.gov.vc/ 
Govt/Government/Executive/Ministries/Agric ulture&Fisheries/articles.asp?a=1886. 
46 ECCB (2004). WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
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quarter of 2004, output fell by a further 5.2% 47, and in 2005, output fell by a further 6%, with banana 
production reaching its lowest recorded output of 17,373 tonnes.48  Value added in agriculture rose by 
2.3% in 2006, largely due to incr eases in output for non-banana crops.49  Performance in 2006 was 
also aided by slightly better prices resulting from the purchase by United Kingdom supermarkets of 
St. Vincent and the Grenadines and other Wi ndward islands bananas under "fair trade" 
arrangements.50  In general diversification into non-ba nana crops has expanded during the review 
period, but increases in output have been insu fficient to offset losses in banana production. 
164. In contrast, value added in livestock, forest ry and fishing has generally tended to increase 
during the review period, although these increase s have been modest, at 1-2% annually.  The 
exception has been the fishing sector, which grew by 26% in 2003, due to increased fish landings as a 
result of changes in purchasing a rrangements with neighbouring islands. 
165. The average tariff for agricultural products in 2006 was 18% and the average bound rate 
111.6% (Chapter III).  St. Vincent and the Grenad ines bound all tariff lines in the Uruguay Round;  
the majority of agricultural products were bound at 100%, although a few products were bound at 
250%.  Overall, agricultural products accounted for 77.8% of exports between 2000-05.  The primary 
market for exports has been the United Kingdom, wh ich receives an average of 33% of St. Vincent 
and the Grenadines' exports.  St. Vincent a nd the Grenadines uses import licences for some 
agricultural products, including wheat flour and margarine (Table III.6). 
166. The Banana Growers Association (BGA), a quasi-governmental organization, has the 
monopoly on the export of bananas, and conducts  the exports to the United Kingdom through 
Windward Islands Banana Develo pment and Exporting Company (WIBDECO) (Chapter IV(1)).  The 
monopoly was established by Banana (Protecti on and Quality Control) Act No. 33 of 1984 as 
amended by S.R.O. No. 31 of 1990.  Independent banana exporters may not export directly to the 
United Kingdom, but may apply to the BGA for licences to export to other markets.  Licensed exports 
into Trinidad and Tobago, Barbados, and the United States have increased in recent years.  Export 
licence require farmers to pay a per-box fee to the BG A, which amounts to an export tax.  The level of 
the tax is adjusted periodically, but tends to fluc tuate around EC$2 per box (i.e. about one sixth or one 
seventh of the market price).  A new licence is  required for every shipment, regardless of the 
destination. 
167. The restructuring of the banana industry has take n place amid an erosion of trade preferences 
for banana exports.  In a recent report, the IMF not ed that St. Vincent and the Grenadines is among 
the world’s most preference-depe ndent economies, being heavily re liant on annual income transfers 
derived from quota rents (income transfers to pref erred exporters from tari ff revenue forgone in 
preference-granting markets) and higher export re venues from sales into protected overseas markets.51  
The IMF notes that the changes in the EC banana regime introduced in 2006 represent a challenge for 
St. Vincent and the Grenadines and other Windward Islands banana producers, since unit costs are 
high, a result of small-scale production, relatively hi gh transportation costs, and high labour costs not 
matched by high productivity.52 
168. Government measures in favour of the agriculture  sector include:  subsidies for fertilizers and 
other key inputs;  granting farmers an exemption from income tax;  and paying off the debt of banana 
                                                      
47 ECCB (2005). 
48 ECCB (2006a). 
49 ECCB (2007). 
50 Caribbean Development Bank (2006). 
51 IMF (2006a). 
52 IMF (2006a). Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 35 
 
 
producers' associations.  Farmers also receive su pport services from the Ministry of Agriculture.  
They have traditionally been exempt from inco me tax, and are granted 75% import duty relief on 
pick-up trucks.  National Investment Promotions In c., provides investment promotion services.  All 
materials, equipment, stores, vehicles, and ot her goods acquired by the BGA are exempt from 
customs duty and other duties and taxes.  Also, St . Vincent and the Grenadines's banana producers 
have received assistance from the EC under the Sp ecial Framework of Assistance (SFA) (some 
€33 million between 1999 and 2004), an d previously under the STABEX  export revenue stabilization 
scheme. 
169. A duty-free concession can be granted on items used in the fishing industry (fishing nets, 
marine engines, and other equi pment).  Applicants must request the concession from the Chief 
Fisheries Officer, providing proof of being a fisher or stakeholder in the fishing industry.  Processing of these requests requires six to eight weeks. 
170. During the period under review, the monopoly of the St. Vincent and the Grenadines 
Marketing Corporation on the commercialization of a number of agricultural products was terminated.  
To replace it, two new institutions were establis hed:  the National Properties Limited (NPL), a 
statutory body created in 2003, which engages in the marketing of goods, and the Agricultural Input 
Warehouse.  The Produce Division of NPL is respons ible for the marketing (domestic sales) and 
export of agricultural produce, mainly root crops such as dasheens, potatoes,  and eddoes, as well as 
plantains, but does not have a monopoly over either  activity, nor does it provide subsidies, since it 
operates on a profit basis.  Some 60% of the produ ce handled by NPL is exported and the rest is sold 
domestically.  The NPL also offers export market intelligence to exporters of these commodities.  The 
Supermarket Division sells a wide range of domestic ally produced and imported produce, but does not 
have a monopoly over the importation or sale of any of these goods, and operates on a profit basis.  The Agricultural Input Warehouse has a de facto monopoly on the importation of dry fertilizers, and 
has a legal monopoly for the import of sugar.  The price of refined sugar is determined by tender and 
influenced by the Warehouse’s purchasing decisions.  The agency sells the dry fertilizers and seeds to 
farmers, at pre-determined prices that are meant to reduce volatility and according to the authorities, 
may be at times below the cost of acquisition.  Th e agency has no role in the export of agricultural 
products.  Diamond Dairies Ltd. formerly had a monopoly on the importation of milk, but ceased 
operation in 2002:  milk may now be imported by private importers. 
(2) M
ANUFACTURING  
171. St. Vincent and the Grenadines' manufacturing sector is relatively small and concentrated 
around a small number of products.  During the period under review, the main products have been 
steel rods, PVC pipes, galvanized sheets, some feeds, flour, and beer. 
172. As with agriculture, the sector's contribution to GDP has declined over the past few years.  In 
2005, manufacturing accounted for 5.7% of GDP, down from 6.3% in 2002.53  Value added in the 
sector declined by 6.1% in 2002 but rebounded by 0. 7% in 2003.  The sector continued to grow 
steadily from 2004 to 2006; beer demonstrated the most consistent growth, due to increases in 
domestic demand and increased marketing.54  Outputs of flour and feeds also grew modestly but 
consistently during this period. 
173. The average tariff on manufactured goods is 10.1% while the average bound tariff is 62.1% 
(Table III.2).  Between 2000 and 2005, manufactured  goods accounted for an average of 22.2% of 
exports (Table AI.1). 
                                                      
53 ECCB (2004). 
54 ECCB (2005), (2006a) and (2007). WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
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(3) SERVICES  
(i) Main features 
174. St. Vincent and the Grenadines made sect or-specific commitments under the General 
Agreement on Trade in Services (GATS) in 5 of the 12 service areas, or around 8 of the 160 
subsectors:  financial services (reinsurance);  tourism and travel related services (hotel and resort 
development);  transport services (maritime transport services, and ser vices auxiliary to all modes of 
transport);  health-related and social services (hos pital services);  and recreational, cultural and 
sporting services (entertainment and sporting services).  No market access or national treatment limitations have been scheduled on cross-border supp ly and consumption abroad in these sectors.  In 
the case of commercial presence, various domestic laws have been scheduled as limitations across 
committed sectors. 
175. Under St. Vincent and the Grenadines's horiz ontal commitments on commercial presence and 
movement of natural persons:  foreign investors must comply with numerous Acts in order to 
establish their business locally, such as withhol ding tax provisions and property ownership 
regulations;  and employment of fo reign natural persons is normally limited to people with managerial 
and technical skills that are in short supply or not  available in the country.  St. Vincent and the 
Grenadines has not listed any Article II (MFN) exemp tions.  It did not participate in the extended 
negotiations on telecommunications or on financial services. 
(ii) Telecommunications 
176. St. Vincent and the Grenadines did not make any specific commitments on 
telecommunications under the GATS. 
177. There are no limits on foreign ownership of telecommunications companies, nor are there 
citizenship requirements for directors.  The VAT, introduced in 2007, replaced telecom-specific taxes 
including a 10% tax on international calls, and a 5% tax on domestic calls made from cellular 
telephones (introduced in 2005).  Telecom providers are required to pay a 3% licence fee and a 1% 
fee to a universal service fund on their annual gross revenues.
55  The Information and Communication 
Technology Services Investment Incentives Bill, wh ich is currently before Parliament, would allow 
approved companies duty-free imports of material and equipment for the provision of information and communication technology services.  Such compani es are currently entitled to a certain number of 
work permits for foreign nationals. 
178. Telecommunications in St. Vincent and the Grenad ines is the responsibility of the Minister of 
Telecommunications, Science, Technol ogy and Industry.  Regulation of the sector takes place at the 
national level, through the National Telecommunicat ions Regulatory Commission of St. Vincent and 
the Grenadines.  At the regional level, the Eastern Caribbean Telecommunications Authority 
(ECTEL) plays an important advisory and policy-coordinating role (Overview Report).
56 
179. The main legislation governing the sector is Telecommunications Act No. 1 of 200157, which 
deregulated the sector and opened it to competition.   This Act contains substantially the same 
                                                      
55 These fees are not added on to the bills of consumers but are built into the rates charged by the 
providers. 
56 National Telecommunications Regulatory Commission of St. Vincent and the Grenadines online 
information.  Viewed at:  http://www.ntrc.vc. 
57 Telecommunications Act No. 1, 2001.  Viewed  at:  http://www.ntrc.vc/regulations/telecom_act% 
202001%20SRO%20NO%201.pdf. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 37 
 
 
provisions as the telecommunications laws of the other OECS ECTEL-member states.  It, inter alia , 
specifies criteria for the granting of a licence;  univer sal services conditions that may be applied;  and 
procedures for concluding interconnection agreemen ts (see Overview Report).  Telecommunications 
(Tariff) Regulations, No. 23 of 2004, stipulate that where there is effective competition in the telecom 
market, licensees may set tariffs.  If there is insuffi cient competition in a particular service, the NTRC 
may designate it as a regulated service;  within 30 days the telecommunications provider must file an 
applicable tariff with the Commission for approval.  The tariffs for regulated services in St. Vincent 
and the Grenadines are determined in accordance with the Price Ca p Plan agreed between Cable & 
Wireless and the ECTEL member states. 
180. Key changes over the period since liberaliza tion have been:  significant increases in 
telecommunications revenues;  a major increase in  mobile penetration (from 7% in 2002 to 68% in 
2006);  as well as a corresponding increase in local traffi c originating from mobile phones.  Internet 
penetration has increased slightly, but  remains low at 6% (Table IV.1). 
181. Eight individual licences have been issued (May 2007), three for fixed public 
telecommunications, three for public mobile teleco mmunications and two for Internet networks and 
services.58  A number of class licences have also been granted, although not all of the service 
suppliers have commenced operations. 
Table IV.1 
Telecommunications statistics, 2002-06 (March) 
 2002 2003 2004 2005 2006 
Telecommunications revenues (EC$ million) 87 95 137 135 143 
Fixed-line penetration (%) 24 25 22 23 23 
Mobile penetration (%) 7 34 64 62 68 
Internet penetration (%) 3 3 4 6 6 
Investment (EC$ million) 15 18 34 20 20 
Employment 160 147 137 156 159 
Local traffic from a fixed line (million minutes) .. 101 113 100 .. 
Local traffic from a mobile phone (million minutes) .. 90 118 126 .. 
International outgoing traffic (fixed and mobile) (million minutes) 2 5 9 7 22 
 
.. Not available. 
 
Source:  Information provided by the aut horities and ECTEL online information.  Viewed at:  h ttp://www.ECTEL.int. 
182. Three licences have been issued for fixed- line telephone services (to Cable and Wireless 
(West Indies) Ltd., Kelcom International, and Digicel Ltd.), but the incumbent, Cable and Wireless, is 
the sole provider.59  According to the authorities, all local fi xed-line to fixed-line tariffs (day, evening, 
and weekend tariffs) were increased by the incumb ent following liberalizati on, and subsequently 
reduced under a Price Cap Plan (PCP) implemente d in December 2004:  peak tariffs went from 
EC$0.08 per minute to EC$0.09 before the PCP, then down to EC$0.07;  off-peak (evening) tariffs went from EC$0.07 to EC$0.08 then to EC$0.05 per minute for the first year of the PCP then 
EC$0.04 thereafter.  Off-peak (weekend) tariffs we nt from EC$0.05 to EC$0.06 then to EC$0.05 per 
minute for the first year of the PCP and EC$0.04 ther eafter.  The PCP does not apply to international 
fixed-line calls.  Fixed-line tariffs to the United St ates have fallen by 40% to EC$0.99 per minute;  
                                                     
 
58 NTRC of St. Vincent and the Grenadines online information.  Viewed at:  http://www.ntrc.vc/ 
registry/index.htm. 
59 Kelcom International operates a Cable TV network. WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
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call tariffs to other ECTEL members stayed at EC$0.50 and calls to non-member Caribbean islands 
were in the range of EC$0.66 to EC$0.99.60 
183. Fixed-to-mobile rates were also covered by th e PCP.  Following liberalization of the market 
in 2001, and prior to implementation of the PCP, the incumbent, Cable and Wireless, under an interim 
agreement signed with OECS member countries in  2002, had increased peak (day) tariffs from 
EC$0.58 to EC$0.81 per minute.  Under the PCP, the fixed-to-mobile peak tariff was reduced to EC$0.76 in the first year then to EC$0.71 thereaf ter.  Following liberalization off-peak (evening 
tariffs) were raised from EC$0.57 to EC$0.80 an d off-peak (weekend) tariffs from EC$0.55 to 
EC$0.78.  Under the PCP, both rates fell to EC$0.70 in the first year, and EC$0.69 thereafter. 
184. The residential fixed-line access charge has increased from EC$17.00 per month in 2002 to 
EC$20.40 in 2005.  This includes 80 free minutes of off-peak fixed-to-fixed calls. 
185. There are no regulations restricting call-back.  It  is illegal to pass traffic using an unlicenced 
provider. 
186. Two mobile service providers are in operation in  St. Vincent and the Grenadines (Cable and 
Wireless, and Digicel);  there was some consolid ation in the market with Digicel's takeover of 
Wireless Ventures (owned by Cingular Wireless) in 2005.  In spite of increased competition, tariffs 
for mobile-to-mobile and mobile-to-fixed calls have  remained relatively stable since liberalization.
61  
Mobile-to-mobile tariffs ranged from EC$0.70 per minute for calls on the same network to EC$0.85 
for calls between networks.  Mobile-to-fixed call tariffs range from EC$0.80 to EC$0.85 per minute.  
The authorities note that the major growth of the m obile phone market, in the absence of lower prices, 
is due in part to the introduction of the prepaid system (96% of mobile subscribers have pre-paid 
mobile phones), and the affordability of handsets (subs idized by the provider).  Digicel's customer 
base is slightly higher than  that of the incumbent. 
187. Cable and Wireless dominates the provision of  Internet services in St. Vincent and the 
Grenadines.  There has been a ma rked shift from dial-up towards high-speed Internet access;  around 
75% of Internet subscribers had broadband access in  2006, up from 13% in 2002.  This reflects the 
greater affordability of high-speed access;  th e rates declined by up to 50% in March 2004.62 
(iii) Financial services 
188. According to the authorities, there has been ag reement in principle at the governmental level 
to create a single regulatory unit for regulate all non-onshore bank financial services.  This would 
involve merging the International Financial Services Authority (IFSA) (which has regulatory 
responsibility for the offshore sector) with the Regulat ory Unit of the Ministry of Finance (which has 
regulatory responsibility for domestic financial institutions except for cr edit unions and banks).  This 
single unit would also have responsibility for credit unions. 
189. The Financial Intelligence Unit (FIU) is an au tonomous government institution established in 
2002, under Financial Intelligence Unit Act No. 38 of 2001 (amended by Act No. 24 of 2002).  The 
Proceeds of Crime and Money Laundering Prevention Act No. 39 of 2001 (as amended by Act No. 25 
of 2002) provides for the reporting of suspicious ac tivity to the FIU, which collects information on 
financial transactions, and investigates cases reported.   The FIU brings case of illegal activity to the 
attention of the Director of Public Prosecution, but conducts the prosecution of these cases itself under 
                                                      
60 ECTEL (2006). 
61 ECTEL (2006). 
62 ECTEL (2006). Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
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the Director's authority.  Between 2001 and 2006, at l east ten cases led to criminal referrals, resulting 
in five convictions.  Money laundering offences have resulted in imprisonments of up to three years, 
as well as fines, forfeitures, and confiscations. 
190. St. Vincent and the Grenadines' GATS commitmen ts are limited to reinsurance services.  
Commercial presence is subject to the Insurance a nd Insurance Premium Acts, the Commercial Code, 
and the Exchange Control Act (listed as limitations on market access), and a withholding tax (listed as 
a limitation on national treatment).  As specified  in its horizontal commitments, only corporate 
entities are allowed to conduct insurance business in St . Vincent, and all entities must be registered by 
the Registrar of Insurance.63 
(a) Onshore financial services 
Banking 
191. Domestic Banks in St. Vincent and the Gren adines are regulated by the ECCB.  ECCB 
member countries have harmonized the substance of  their national banking legislation, based upon a 
template Uniform Banking Act (see Overview Repor t).  The main legislation governing the banking 
industry is Banking Act No. 33 of 2006, which upgrad ed previous legislation in relation to the Basle 
core principles.  These changes include strengthened oversight of financial institutions by the ECCB, 
and more stringent and systematic repor ting requirements by such institutions. 
192. Banks must be licensed by the Minister of Fi nance, and fulfil the conditions required for 
licensing (Overview Report) which include having a place of business in St. Vincent and the Grenadines (both local and foreign).  Citizens and companies of St. Vincent and the Grenadines are 
not restricted from borrowing or placing deposits with  banks located abroad, and exchange controls 
are no longer maintained on capital and non-trade current transactions (Chapter I).  There are no limitations on foreign investment in onshore banks in St. Vincent a nd the Grenadines.  Foreign-owned 
banks licensed and incorporated in St. Vincen t and the Grenadines are subject to the same 
requirements as locally owned and locally incorpor ated banks, and may provide the same services.  
Branches of foreign banks must submit additional in formation when applying for a licence, to prove 
that they are subject to effective supervision at  home, and that the regulatory body in their home 
jurisdiction does not object to the application.  There are no residency or citizenship requirements applied to bank managers or directors. 
193. There are four commercial banks operating in St. Vincent and the Grenadines:  two are 
branches of foreign banks (Bank of Nova Scotia and First Caribbean International Bank (Barbados) 
Ltd);  one is wholly Government-owned and loca lly incorporated (National Commercial Bank (SVG) 
Ltd;  and one is a locally incorporated foreign s ubsidiary (RBTT Bank Caribbean Ltd.).  Lending and 
deposit rates are similar to those in other OECS countries (see Chapter I).  In 2006, the weighted 
average spread between deposit and lending interest  rates was 6.9 percentage points (2.8% deposit, 
9.9% lending).
64  St. Vincent and the Grenadines does not have a development bank;  the former 
St. Vincent and the Grenadines Development Bank was subsumed by the National Commercial Bank. 
Insurance 
194. As at January 2007, there were 24 registered  insurance companies in St. Vincent and the 
Grenadines.  Of these, 20 were registered to offer short-term insurance business (5 were locally 
owned and 15 foreign owned), a nd 9 to offer long-term insurance business (all foreign owned). 
                                                      
63 WTO document  GATS/SC/74, 15 April 1994. 
64 ECCB (2007). WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 40 
 
 
195. The main legislation governing insurance ac tivities is Insurance Act No. 45 of 2003.  
Insurance companies must be regist ered with the Supervisor of In surance within the Ministry of 
Finance and Economic Planning. 
196. A statutory deposit, which varies according to the type of insurance provided, is payable by 
all insurance companies to the Supervisor of Insu rance.  The deposit is:  EC$500,000 for companies 
providing long-term insurance;  EC$200,000 or 30% of gross premiums, whichever is greater, for 
companies providing insurance business other th an long-term and motor vehicle insurance65;  and 
EC$500,000 or 30% of gross premium, whichever is  greater, for companies providing motor vehicle 
insurance.  Each insurance compan y must also establish an insuran ce fund equal to its liability and 
contingency reserve, less the amount held on deposit w ith the Supervisor.  The fund is held in trust by 
a bank or financial institution approved by the Supervisor. 
197. While the statutory deposit and insurance fund requirements are applied equally to foreign 
and domestic companies, the share capital necessary for registration differs.  For long-term insurance 
business, local companies are required to have pa id-up share capital of not less than EC$2 million, 
while the requirement for foreign companies is not  less than EC$5 million, fully paid-up in cash; the 
amounts for general insurance business are:  not l ess than EC$1 million for local companies, and not 
less than EC$2.5 million, fully paid- up in cash for foreign companies. 
198. An annual licence fee of EC$5,000 is levied by the Government on local and foreign insurers.  
The fee for companies registered rises to EC $10,000 for both long-term and general insurance 
business.  According to the authorities, there are no restrictions on the type of insurance business for 
which a foreign company can register. 
199. In general, citizens and companies may not obtain insurance coverage from companies not 
registered under the Insurance Act.  However, in  special circumstances, the Supervisor may grant 
approval for insurance to be placed with non-register ed insurers where he is satisfied that it is not 
possible to obtain similar protection at a co mparable cost from a registered insurer. 
(b) Offshore financial services 
200. In early 2007, St. Vincent and the Grenadin es had six offshore banks and 14 international 
insurance companies.66 
201. The International Financial Services Sector in St. Vincent and the Grenadines is regulated by 
the St. Vincent and the Gren adines International Financial Services Authority (IFSA).67 
202. In June 2000, St. Vincent and the Grenadines w as identified as a non-cooperative country by 
the G7 Financial Action Task Force (FATF) (see Overview Report).  According to the FATF, the 
shortcomings of St. Vincent and the Grenadines' offshore services regimes included:  no anti-money-
laundering regulations or guidelines, and thus no customer identification or record-keeping 
requirements;  extremely limited resources devoted  to supervision;  r udimentary licensing and 
registration requirements for financial institutions;  no system to require reporting of suspicious 
transactions;  the Offshore Finance Authority was limited by law from providing international 
                                                      
65 The authorities note that, in practice, there is an administrative agreement for EC$200,000 or 30% of 
net premium whichever is greater. 
66 International Financial Services Industry of St. Vincent and the Grenadines online information.  
Viewed at:  http://www.stvince ntoffshore.com/industry.htm. 
67 ECCB online information.  Viewed at:   http:// www.eccb-centralbank.org/Fi nancial/fin_offshore.asp. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 41 
 
 
cooperation;  and international judicial assistance  was unduly limited to situations where proceedings 
had been commenced against a named defendant in a foreign jurisdiction.68 
203. The legislative reform undertaken by St. Vincent and the Grenadines to strengthen the 
regulatory framework included the enactment of the Proceeds of Crime and Money Laundering 
(Prevention) Act. No. 39 of 2001 (as amended in 2002 and 2006), the Financial Intelligence Unit Act, 
No. 38 of 2001, and the Exchange of Information Ac t No. 29 of 2002.  The staffing of the Supervision 
and Examination Department of IFSA has been strengthened.  The ECCB provided technical support 
and acted in an advisory capacity in the supervisio n and licensing of offshore banks.  St. Vincent and 
the Grenadines was removed from the list of non-cooperative regimes in 2002. 
204. Since 2002, 38 offshore banks ceased operati on in St. Vincent and the Grenadines.  
According to the authorities legislative changes and improved regulatory oversight resulted in a 
number of licenses being revoked for non-compliance with  relevant legislation.  In addition, some 
banks found the new standards too difficult to co mply with and went into voluntary liquidation. 
205. The principle legislation governing offshore ba nking is International Banks Act No. 40 of 
2004.  As required by this Act, companies must be incorporated either as an external company, under 
Companies Act No. 8 of 1994, or under International Business Companies Act, No. 18 of 1996 (as 
amended).  Companies must have a minimum of two directors and at least one director must be a resident.  International Banks are precluded fro m conducting banking business with residents of 
St. Vincent and the Grenadines, from investing in any asset that represents a claim on any resident, 
and from buying bonds or other securities issued by th e State.  International Banks must be licensed 
by the IFSA.  There are two kinds of licence:  Cl ass A allows the international bank to undertake 
business generally;  Class B allows the international bank to carry out business only with non-resident 
persons specifically named in an undertak ing accompanying the licence application. 
206. Foreign companies wishing to establish a branch in St. Vincent and the Grenadines must have 
the consent of their home country supervisor, and confirmation may be required that the company is 
subject to comprehensive supervision at home;  thes e branches may engage only in offshore business.  
International Banks must have a physical presence  in St. Vincent and the Grenadines, with a 
minimum of two employees, one of which must be a senior manager.  International Banks must also have a resident director and a designated registered agent. 
207. Minimum paid-up capital requirements for intern ational banks incorporated in St. Vincent 
and the Grenadines vary according the class of li cence:  from US$500,000 (Class B) to US$1 million 
(Class A).  Likewise, banks must deposit or inv est either US$100,000 or US $500,000, depending on 
the class of licence.  Branches of foreign banks are not subject to these minimum capital and deposit requirements, although they are also granted either a Class A or Class B licence.  Offshore banks benefit from various tax and duty exemptions, for a minimum of 25 years from the date the licence is 
granted. 
208. Legislation governing offshore insurance incl udes International Insurance (Amendment and 
Consolidation) Act No. 13 of 1998, and the Intern ational Insurance Regulations Act No. 11 of 1999 
(as amended by Act No. 11 of 2003 and Act No. 37 of 2004).
69  Under the Act, supervision and 
licensing of offshore insurance busin ess in St. Vincent and the Grenadin es is carried out by the IFSA.  
                                                      
68 FATF online information.  Viewed at:  http://www.fatf-gafi.org/dataoecd/56/43/33921824.pdf. 
69 International Insurance (Amendment and Consolidation) Act.  Viewed at:  http://www.stvincent 
offshore.com/pdf/SVG%20international%20insurance%20act .pdf;  and International Insurance Regulations.  
Viewed at:  http://www.stvincentoffshore.com/pdf/INTERNATIONAL%20INSURANCE%20REGULAT IONS.pdf. WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 42 
 
 
Most offshore insurance companies provide captive insurance.  Differe nt classes of insurance depend 
on the types of insurance business being carried out , and licensing requirements vary accordingly.  
Minimum capital (net worth) requirements vary from US$10,000 to US$200,000 depending on the class of insurance and minimum solvency requiremen ts, stipulated in the regulations, are set at 
US$150,000, 20% of the insurer's net retained annua l premiums for the year, or US$250,000.  IFSA 
approval is required in order to carry out more than  one class of insurance.  Licences are granted for 
up to one year, and are renewable.  A decision to re fuse a licence is final, it cannot be appealed and no 
reason for refusal need be given. 
209. There are no nationality or residency requirements for managers or directors of international 
insurance companies.  However, fo r certain classes of licence, intern ational insurance companies must 
appoint an international insurance manager, who mu st have a certificate of authority under the Act.  
International Insurance Managers are not required to be citizens of or resident in St. Vincent and the 
Grenadines. 
210. International insurance companies are precluded from providing insurance for:  residents or 
non-offshore companies;  property in transit to or from St. Vincent and the Grenadines;  and vehicles, 
vessels, aircraft or other moveable property based in the country. 
211. Under the Act, international insurance companies are exempt from all taxes and stamp duty 
for a minimum of 25 years from the date the certificate of tax exemption is issued.  This exemption is renewable indefinitely. 
(iv) Air transport 
212. St. Vincent and the Grenadines has not made  any GATS commitments on air transport 
services.
70 
213. Both in volume and value terms, cargo transpor t by air is much less significant than cargo 
transport by sea (see below).  Over the review period,  the value of goods transported by air fluctuated 
between EC$82 million to EC$43 million;  and th e net weight of cargo transported ranged from 
572,000 kg to nearly 8.5 million kg (Table IV.2). 
Table IV.2 
Cargo transported by air, 2001-06 
(Volume and value) 
 c.i.f. value (EC$) Net weight (kg) 
2006 49,714,281 572,095 
2005 82,159,919 8,461,926 
2004 68,834,869 1,460,045 
2003 70,604,935 867,299 
2002 44,261,662 1,388,407 
2001 43,420,490 1,822,201 
 
Source:  Information provided by the Government of St. Vincent and the Grenadines. 
214. There were nearly 161,000 passenger arrivals by air (visitors and residents) to St. Vincent and 
the Grenadines in 2006.   St. Vincent and the Grenadin es has five public airports;  the largest is Joshua 
Airport in Kingstown.  Four of these airports ar e owned and operated by the Government while the 
other, on Mustique, is privately ow ned and operated.  Flights to majo r international destinations are 
                                                      
70 WTO document GATS/SC/74, 15 April 1994. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 43 
 
 
via connecting flights with carriers in other Caribbean islands.71  Discussions are under way on 
constructing an international airport in St. Vincen t, and upgrading the E.T. Joshua Airport as an 
interim measure.  The Government views the constr uction of an international airport as the key to 
realizing the country's growth and development, pa rticularly with respect to supporting the tourism 
industry, which will be the country's main forei gn exchange earner for the foreseeable future, as well 
as in attracting foreign investment.72 
215. The government of St. Vincent and the Grenadin es has a partial share in LIAT with the 
governments of Antigua and Barbuda, Barbados, and St. Lucia.  St. Vincent and the Grenadines Air 
and Mustique Airways are both privately owned and in corporated in St. Vincent and the Grenadines.  
No information was available regarding any fore ign investment restrictions on ownership of 
domestically incorporated carriers.  According to th e authorities, cabotage is restricted to St. Vincent 
and the Grenadines carriers. 
216. The Civil Aviation Act No. 22 (2004) is the main legislation governing air transport in 
St. Vincent and the Grenadines.  The Prime Mini ster is responsible for the development and 
supervision of all matters connected with civil avia tion, and the Ministry of National Security, Air and 
Sea Ports Development is under the Prime Minister's  Office.  The Air Transport Licensing Board is 
the regulatory authority for civil aviation.  At the regional level, regulatory oversight for safety and security matters is provided by the Eastern Caribbean Civil Aviation Authority (ECCAA). 
217. The Airports Development Department, within th e Ministry of National Security, Air and Sea 
Ports Development, is responsible for the regulation and management of  public airports, as well as the 
provision of air traffic and meteorological services.  Information was not available on whether private 
companies (local or foreign) could provide airport management or cargo and auxiliary services, and whether any such contracts were in place. 
218. There are, in principle no nationality require ments for granting an air transport licence;  
however, the granting of a licence is at the discretion of  the Ministry in charge of civil aviation, and a 
number of factors are taken into account before licences are granted.  These are generally:  the 
existence of the service proposed;  the conditions in which the applicant intends to operate (number of 
flights, type of aircraft);  and financial considerations. 
219. St. Vincent and the Grenadines is a contracting state of ICAO.  No information was available 
regarding any bilateral air service agreements with other countries. 
(v) Maritime transport 
220. St. Vincent and the Grenadines has made commitm ents on internationa l passenger and freight 
transport services.  While no limitations have been  listed for cross-border supply and consumption 
abroad, the provision of the servic es through commercial presence is subject to the Commercial Code 
as well as a withholding tax.  The same limitations  apply to a related commitment on "transhipment 
services" listed under "services auxiliary to all  modes of transport".
73 
221. Both in volume and value terms, cargo transporte d by sea is much more significant than cargo 
transported by air.  The value of goods tran sported by sea rose from EC$420 million in 2001 to 
                                                      
71 National Investment Promotions Inc., online information.  Viewed at:  http://www.svg-nipi.com/CD-
InvestmentGuide/InvetsmentGuide.pdf. 
72 Address by the Prime Minister on The Internatio nal Airport Project at Argyle.  Viewed at:   
http://www.caribbeannetnews. com/2005/08/11/argyle.pdf. 
73 WTO document GATS/SC/74, 15 April 1994. WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 44 
 
 
EC$680 million in 2006.  The net weight of cargo transported by air ranged from 250 million kg to 
300 million kg (Table IV.3). 
Table IV.3 
Cargo transported by sea, 2001-06 
(Volume and value) 
 c.i.f. value (EC$) Net weight (kg) 
2006 683,292,457 273,483,396 
2005 567,192,954 253,208,483 
2004 539,441,386 297,875,457 
2003 472,662,879 270,078,936 
2002 437,604,088 286,153,572 
2001 420,423,645 269,727,293 
 
Source: Information provided by the authorities. 
222. St. Vincent and the Grenadines has several por ts.  According to the authorities, around 95% 
of cargo arrives at the two main commercial ports , Port Kingstown and Campden Park.  Kingstown 
Port is the property of the Government as set out in Port Authority Act, No. 26 of 1987, and Campden Park is partly owned by the private sector (49% of shares) and partly by the Government. 
223. The main legislation governing maritime transport is the Shipping Act of 2004
74, which 
replaced the Merchant Shipping Act No. 22 of 1982 (as amended). 
224. Only St. Vincent and Grenadines ships may engage  in cabotage, and they must have a trading 
licence.  Information was not available from the aut horities on the criteria to be met to obtain such a 
licence. 
225. The St. Vincent and the Grenadines International Ship Registry was established in 1982.  The 
Shipping Act 2004 specifies the conditions for registra tion.  Persons entitled to own a St. Vincent and 
Grenadines-registered ship are:  (a) St Vincen t and Grenadines nationals;  (b) CARICOM citizens 
resident in a CARICOM state where the ship is enga ged in international voyages;  (c) individuals or 
corporations owning ships hired out on bareboat charte r to nationals;  (d) individuals or corporations 
in joint-venture shipping enterprise relationships wi th nationals;  (e) a body corporate, partnership or 
other association of individuals registered in accord ance with the domestic laws and having their main 
office in St. Vincent and the Grenadines;  and (f) such other persons as the Minister may by Order 
determine.75  There are around 2,500 registered vessels. 
226. No government or other cargos are reserved fo r domestically flagged vessels or for ships 
owned or operated by the Government.  The author ities were unable to confirm whether domestically 
flagged ships were eligible for any fiscal incentives. 
227. Ships registered in St. Vincent and the Gren adines are subject to registration fees ranging 
from US$400 for yachts, tugboats and small craft,  to US$10,000 for ships over 10,000 net tonnes 
(NT).  They are also required to pay annual fees.76 
                                                      
74 Shipping Act 2004.  Viewed at:  http://www .svg-marad.com/download.asp?path=Law%20and%20 
Directives&newpath=Shipping%20Acts. 
75 Shipping Act 2004, Part II(3)(2). 
76 St. Vincent and the Grenadines Maritime Administration.  Viewed at:  http://www.svg-marad.com 
/fees.asp.  Annual fees are US$160 yachts, tugboats, an d small craft;  US$0.50 per NT for bareboat charter;  
US$0.40 per NT for ships from 501 to 1000 NT;  US$0.20 per NT for ships from 1,001 NT to 5,000 NT;  and US$0.10 per NT for ships of 5,001 NT and over. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 45 
 
 
228. The St Vincent and the Grenadin es Port Authority is a statutory corporation, mandated under 
Chapter 375 of the St. Vincent and the Grenadines Law (1990 edition) to manage and regulate ports.  
It has a monopoly on the provision of port services,  and sets fees.  According to the authorities, 
concessionary arrangements could be made for private companies (local or foreign companies) to 
provide certain auxiliary services;  this, however, is  at the discretion of the Port Authority and the 
Government.  The authorities note that no forei gn companies currently provide port services.  
According to the authorities, on average between 10 and 12, 20-40-foot containers are unloaded in an 
hour at the main commercial ports. 
229. The costs of freight as a percentage of the valu e of imports in St. Vincent and the Grenadines 
was 8.1% in 2003;  the developing country average was 9.1%.77 
230. Over the period under review, St. Vincen t and the Grenadines has invested around 
EC$5 million in bringing Kingston Port and Campden Park Port into compliance with the ISPS code.  
Work is under way to bring the smaller ports into compliance with the ISPS code. 
231. St. Vincent and the Grenadines applies a cruise passenger tax and a travel tax (see below). 
232. St. Vincent and the Grenadines is a member of the International Maritime Organization and is 
signatory to a number of IMO conventions. 
(vi) Tourism 
233. St. Vincent and the Grenadines made specifi c GATS commitments on "Hotel and Resort 
Development".  Commercial presence was bound, subject  to the provisions of the Commercial Code, 
the Exchange Control Act, and the Hotels Proprieto r Act.  Foreign suppliers may hire foreign staff 
only at managerial and specialist level, if these sk ills are in short supply or not available locally. 
234. In 2005, St. Vincent and the Grenadines attracted  97,432 stayover visitors and 69,753 cruise 
passengers.78  While stay-over visitors have increased  gradually, cruise passenger arrivals have 
fluctuated.  The Caribbean accounted for the majority  of arrivals (42%) in 2004, followed by visitors 
from the United States (29%), the United Kingdom (14% ), and Canada (6%).  Visitor expenditures in 
2004 were estimated at nearly US$96 million.79 
235. The Minister of Tourism, Youth and Sports  is responsible for the formulation and 
implementation of tourism policy;  export promotion and marketing are carried out by the Ministry of 
Tourism and the private sector St. Vincent and th e Grenadines Hotel and Tourism Association.  The 
NIPI has a marketing officer focusing only on tourism. 
236. Tourism development is one of the priority areas in which the Government is encouraging 
investment.80  Under Hotels Aid Act No. 16 of 1988, tax concessions include the waiver or drawback 
of customs duties and consumption taxes on imports of building materials and equipment as well as 
advertising and promotional materi al related to the tourist industr y.  Between 2001 and 2006, total 
revenue forgone as a result of customs duty relief und er the Hotel Aid Act was EC$1.6 million.  Over 
the same period, an additional EC$751,000 of revenu e was forgone as a result of other tax relief for 
purposes connected with tourism.  Income tax hol idays are available for the development of new 
                                                      
77 UNCTAD (2005). 
78 ECCB (2005). 
79 Caribbean Tourism Organization online informati on.  Viewed at:  http://www.onecaribbean.org/ 
information/documentview.php?rowid=4169. 
80 NIPI (2007). WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 46 
 
 
hotels and apartment-hotels (of not less than five rooms for citizens of St. Vincent and the 
Grenadines, and not less than ten rooms for othe r persons) or for improve ment and expansion.  
Applications must be made to the Minister or to the Cabinet and, in all cases, the Government retains 
the right to refuse the application.  The income tax holiday is for 9 to 15 years, depending on the 
number of rooms created.  Income tax exemptions for expansion of hotels apply only to the profits 
attributable to the expansion.81 
237. St. Vincent and the Grenadines levies a number of tourism-related taxes and charges.  A 
travel tax of 5% on the cost of passage is levied on tickets by air and maritime carriers for travel 
originating in St. Vincent and the Grenadines.82  Revenue accruing to the Government from this tax 
was EC$1.5 million in 2006.  A p assenger departure tax of EC$40 (U S$15) is levied on passengers 
leaving the country by air.  As noted by the au thorities, a cruise passenger head tax of US$10 was 
abolished in 2005.83  With the introduction of the VAT, the hotel turnover tax, levied at 7% on the 
value of accommodation and refreshments, was also  repealed.  A reduced VAT rate of 10% is 
imposed on hotel and holiday accommodation, excl uding accommodation for a continuous period of 
45 days – which is exempt from VAT (Chapter III(1 )(v)).  Government revenue from this tax had 
been nearly EC$7.5 million in 2006. 
(vii) Professional services 
238. St. Vincent and the Grenadines did not make any GATS specific commitments on 
professional services. 
239. There is no overall legislation governing the regulation and licensing of professional services 
in St. Vincent and the Grenadines, nor are there laws  specific to particular professions.  According to 
the authorities, regulations governing the licensing and practice of lawyers are enforced by the Bar 
Association and those governing the licensing and pr actice of medical doctors are enforced by the 
Medical Board.  Other professional services are curren tly not regulated, and no licensing requirements 
apply.  According to the authorities, no professions are explicitly reserved for nationals of St. Vincent 
and the Grenadines, nor are professional service provi ders required to reside  in one of the OECS 
member states or the Caribbean region.  St. Vi ncent and the Grenadines h as not signed any mutual 
recognition agreements on professional services with any third country. 
240. A number of steps are being taken to regulate professional services in St. Vincent and the 
Grenadines, driven by requirements under Chapter III  of the Revised Treaty of Chaguaramas, relating 
to the right to establishment and to provide servic es within CARICOM.  According to the authorities, 
model guidelines for the licensing and regulation of architects, nurses, accountants, and engineers are 
being developed at the CARICOM le vel (mid 2007), and the intention is to implement these in St. 
Vincent and the Grenadines as from January 2008.  Su ch professionals wishing to practice must meet 
the requirements set out in the regulations.  They must also be licensed by their respective professional organizations, all of which have now been set up in St. Vincent and the Grenadines. 
241. To facilitate this process, CARICOM has been  consulting with member states since 2003 on 
the establishment of an umbrella regional CARI COM coalition of services suppliers, which would 
bring together national coalitions in each member state.  This, however, would apply also to non-
                                                     
 
81 The Hotels Aid Act.  Viewed at:  http://www.o as.org/tourism/incentives/st-vincent-and-grenadines. 
rtf. 
82 The legislative basis for this tax is the Travel Tax Act, Chapter 319 of the Laws of Saint Vincent and 
the Grenadines, Revised Edition 1990. 
83 This tax was levied under the Cruise Ships (Service  Charge) Act.  Chapter 361 of the Laws of Saint 
Vincent and the Grenadines Revised Edition 1990. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 47 
 
 
professional service providers.  According to the auth orities, a by-law to establish the St. Vincent and 
the Grenadines' national coalition of services supplie rs has been approved by the Attorney General;  
the Chamber of Commerce would provide secretariat s upport.  The national coalition has been formed 
but not yet launched, pending the finalization of the Executive Committee (May 2007). 
242. At the national level, the Education Act of  1992 was amended in De cember 2006 to provide 
for the establishment of an Accreditation Board;  th e Board has been constituted and approved by the 
Cabinet.  The responsibilities of the Accreditati on Board are to:  assess and certify institutions 
delivering training, and training providers;  asse ss qualifications;  determ ine the equivalency of 
qualifications;  and determine qualifi cation criteria for the issuance of certificates.  According to the 
authorities, the efficacy of having a sub-regiona l accreditation body at the OECS level is being 
discussed. 
243. Some general legislation indirectly affects the market access of foreign professional service 
providers.  Under Caribbean Community Skilled Nationa ls Act, No. 4 of 1997, a regional initiative to 
enhance the free movement of skilled persons, CA RICOM nationals who ar e university graduates 
may enter and work in St. Vincent and the Grenadines without a work permit. 
244. Certain foreign accountancy and actuarial bodies in the United Kingdom, United States, 
Canada, and the Caribbean have been approved by th e Government of St. Vincent and the Grenadines 
to provide auditing and actuarial services as requi red under St. Vincent and the Grenadines' offshore 
legislation, for example, the International Banks  Act, 2004, as well as the International Insurance 
(Amendment and Consolidation) Act, No.13 of 1998. 
245. St. Vincent and the Grenadines is a cont racting party to the CARICOM Agreement 
Establishing the Council for Legal Education (see Overview Report). 
(viii) Other offshore services 
246. International business companies (IBCs) must be incorporated under the International 
Business Companies Act No. 18 and Act No. 38 of 1996 (as amended in 2002).  IBCs are regulated and licensed by the St. Vincent and the Grenadines Offshore Finance Authority. 
247. In addition to offshore banks and interna tional insurance companies, other offshore 
companies include:  16 mutual funds, 13 mutual fund managers, and 114 trusts.  There are also 6,632 
registered international business companies (IBCs).
84  No information was available on the 
contribution of offshore activities to employ ment, investment, or government revenue. 
248. Under the International Business Companies Act, IBCs are precluded from carrying on 
business with residence of St. Vincent and the Gr enadines.  They may, however, hold bank accounts 
in St. Vincent and the Grenadines, and may invest in stocks and entities doing business in the state.  
IBCs must have a registered agent in St. Vincen t and the Grenadines and a registered office (which 
may be the office of the registered agent);  they do not need to appoint managers or directors in order 
to be registered.  IBCs are exempt from all taxes as well as stamp duty for 25 years from their 
incorporation;  this tax exemption is renewable inde finitely.  Tax exemptions also apply to dividends 
paid by IBCs.  IBCs are not subject to exchange controls.85 
                                                      
84 International Financial Services Industry, St. Vincent and the Grenadines online information.  
Viewed at:  http://www.stvince ntoffshore.com/industry.htm. 
85 International Business Companies Act No. 18 and No. 38 of 1996.  Viewed at:  http://www. 
stvincentoffshore.com/pdf/international%20business%20 companies%20act.pdf;  and International Business WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 48 
 
 
249. In 2001, the St. Vincent and the Grenadines' honorary citizenship programme was cancelled.  
As noted by the authorities, a project to create legi slation in this regard was abandoned, and deposits 
made were refunded. 
 
                                                                                                                                                                     
Companies (Amendment) Act, No. 26 of 2002.  Viewed at:  http://www.s tvincentoffshore.com/pdf/ 
International%20Business%20Comp%20_Amend_%20act%202002.pdf. Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 49 
 
 
REFERENCES 
 
Caribbean Development Bank (2006), Annual Country Report 2006 . Viewed at:  
http://www.caribank.org/AnReport.nsf/AER 06-Svg/$File/AER2006_SVG.pdf?OpenElement. 
 
ECCB (2004), Annual Economic and Financial Review 2003.   Viewed at:  http://www.eccb-
centralbank.org/PDF/2003aefr(1).pdf.  ECCB (2005), Annual Economic and Financial Review 2004.  Viewed at:  http://www.eccb-
centralbank.org/PDF/aefr2004.pdf. 
 ECCB (2006a), Annual Economic and Financial Review 2005.  Viewed at:  http://www.eccb-
centralbank.org/PDF/AEFR%202005%20-%20Final%20Document.pdf.  ECCB (2006b), National Accounts Statistics 2006 .  Viewed at:  http://www.eccb-
centralbank.org/PDF/NAC06.pdf. 
 ECCB (2007), Annual Economic and Financial Review 2006 .  Viewed at:  http://www.eccb-
centralbank.org/PDF/aefr06.pdf.  
ECTEL (2006), Annual Telecommunication Sector Review 2006 .  Viewed at:  
http://ectel.int/ectelnew-2/Telecoms%20Market%20Data/Telecoms%20Sector%20Review%202006. pdf.  IMF (2006a), St. Vincent and the Grenadines: 2005 Article IV Consultation-Staff Report; and Public 
Information Notice on the Executive Board Discussion , IMF Country Report No. 06/205, June, 
Washington, D.C. 
 IMF (2006b), St. Vincent and the Grenadines:  Statistic al Appendix, IMF Country Report No. 06/206 , 
June, Washington, D.C.  
NIPI (2007), St. Vincent and the Grenadines Investment Guide .  Viewed at:  http://www.svg-
nipi.com/CD-InvestmentGuide/InvetsmentGuide.pdf.  St. Vincent and the Grenadines Government (2006), 2007 Budget Address, On the Cusp of Advanced 
Economic Take-Off:  Further Fiscal Consolidation and Tax Reform , December, Kingstown. 
 
UNCTAD (2005) Étude sur les Transports Maritimes , Geneva. 
 Vuletin, Guillermo (2007), "The Size of the Informal Economy in the Caribbean", in Eastern 
Caribbean Currency Union: Selected Issues , IMF Country Report No. 07/97, March.  Viewed at:  
http://www.imf.org/external/ pubs/ft/scr/2007/cr0797.pdf. 
 
World Bank (2007), St. Vincent and the Grenadines at a Glance.  Viewed at:  http://siteresources. 
worldbank.org/INTOECS/Resources/SVG.AAG.pdf. 
  
APPENDIX TABLES Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 53 
 
 
Table AI.1 
Merchandise exports and re-expor ts by group of products, 2000-06 
(US$ million and per cent) 
Description 2000 2001 2002 2003 2004 2005 2006 
  (US$ million) 
Total 51 45 39 38 37 40 .. 
  (% of total) 
Total primary products 74.8 78.3 84.3 73.6 80.6 75.1 .. 
   Agriculture 74.7 78.1 84.1 73.5 80.3 74.9 .. 
      Food 74.6 77.9 84.0 73.4 80.1 74.8 .. 
         0573 Bananas (including plantain s), fresh or dried 37.7 32.3 42.6 33.0 38.2 32.1 .. 
         0461 Flour of wheat or of meslin 10.8 13.6 11.5 12.4 13.3 12.7 .. 
         0548 Vegetable products, roots, etc., n.e.s. 6.9 5.0 7.1 6.8 8.1 9.5 .. 
         0423 Rice, milled, se mi-milled 6.4 7.5 7. 9 6.0 7.0 6.0 .. 
         0819 Food waste, animal feeds, n.e.s. 2.4 2.6 2.6 3.0 4.0 4.4 .. 
         1110 Non-alcoholic bevera ge, n.e.s. 2.5 3.0 3.1 3.8 4.2 3.4 .. 
         0422 Rice, husked, not further prepared (cargo or brown rice) 2.7 2.0 2.8 1.9 0.5 1.7 .. 
         0361 Crustaceans, fr ozen 0.0 0.3 1. 1 0.2 0.9 1.0 .. 
         0752 Spices (except pepper and pimento) 0.8 0.7 0.8 0.7 0.7 0.9 .. 
         0579 Fruit, fresh, dried, n.e.s. 0.7 7.5 1.2 1.6 1.0 0.9 .. 
      Agricultural raw material 0.2 0.3 0.1 0.1 0.2 0.2 .. 
   Mining 0.1 0.1 0.2 0.1 0.3 0.2 .. 
      Ores and other minerals 0.1 0.1 0.1 0.0 0.3 0.2 .. 
         2822 Waste and scrap of alloy steel 0.0 0.0 0.0 0.0 0.1 0.1 .. 
         2882 Other non-ferrous base metal wa ste and scrap, n.e.s. 0.0 0.0 0.0 0.0 0.1 0.1 .. 
      Fuels 0.0 0.0 0.1 0.1 0.0 0.1 .. 
Manufactures 25.2 21.7 15.7 26.4 19.3 24.7 .. 
   Iron and steel 2.7 2.5 2.4 2.9 3.9 3.3 .. 
         6741 Flat-rolled products, iron/st eel, zinc plated 2.6 2.4 2.3 2.8 3.9 3.3 .. 
   Chemicals 1.9 0.8 0.3 0.5 1.2 0.8 .. 
   Other semi-manufactures 4.6 3.7 4.1 4.0 4.3 5.5 .. 
         6421 Packing containers, of paper, paperboa rd, cellulose wadding,
         etc. 1.1 1.2 1.5 0.7 1.0 2.2 .. 
         6912 Aluminium structures and parts 0.6 0.3 0.7 0.9 1.4 2.0 .. 
         6941 Nails, tacks, drawing-pins and simila r articles, of iron or steel 0.2 0.1 0.1 0.3 0.7 0.5 .. 
   Machinery and transport equipment 13.7 11.8 4.6 13.6 6.4 9.4 .. 
      Power generating machines 0.0 0.1 0.0 1.3 0.3 0.3 .. 
      Other non-electrical machinery 1.2 0.6 1.7 3.1 1.1 1.8 .. 
         7232 Mechanical shovels, etc ., self-propelled 0.1 0.1 0.2 0.5 0.2 0.6 .. 
         7443 Derrick, cranes, mobile lifting frames, etc. 0.3 0.0 0.0 0.5 0.0 0.2 .. 
         Agricultural machinery and tractors 0.0 0.0 0.0 0.4 0.0 0.0 .. 
      Office machines & telecommuni cation equipment 0.3 0.7 0.8 0.7 1.3 1.4 .. 
         7642 Microphones and stands thereof; loudspeakers, whether or not
         mounted in their enclosures; headphones, earphones and combined 
         microphone/speaker sets ; audio-frequency electric amplifiers; 
         electric sound amplifier sets 0.1 0.1 0.4 0.1 0.1 0.7 .. 
         7643 Radio or television tran smission apparatus 0.0 0.0 0.0 0.3 0.8 0.4 .. 
      Other electrical machines 1.2 0.6 0.2 1.8 1.0 2.2 .. 
         7784 Electro-mechanical hand tools and parts 0.0 0.0 0.0 0.1 0.0 1.9 .. 
      Automotive products 0.6 0.7 1.3 3.5 1.1 2.2 .. 
         7822 Special purpose vehicl es, other than those designed primarily 
         for the transport of persons or goods (e.g. break-down and crane          lorries, fire fighting ve hicles, concrete-mixer, road sweeper and 
        spraying lorries, etc.) 0.1 0.0 0.0 1.8 0.0 1.3 .. 
         7821 Goods vehicles 0.1 0.0 0.7 0.9 0.3 0.3 .. 
      Other transport equipment 10.5 9.1 0.5 3.1 1.6 1.4 .. 
         7931 Yachts and other pleasur e/sports/vessels 7.2 8.2 0.0 0.4 0.0 0.5 .. 
         7139 Parts, n.e.s., for piston engines of 713.2, 713.3,713.8 0.0 0.0 0.1 0.2 0.1 0.3 .. 
   Textiles 0.2 0. 1 0.2 0.5 0.1 0.2 .. 
   Clothing 0.7 0.7 0.5 1.3 0.4 3.0 .. 
   Other consumer goods 1.4 2.2 3.6 3.7 3.1 2.5 .. 
         8931 Plastics containers, stoppe rs, lids, etc. 0.8 1.0 1.1 1.3 1.1 1.2 .. 
         8131 Lamps and light fittin gs, n.e.s. 0.0 0.0 0.0 0.4 0.1 0.3 .. 
 
.. Not available. 
 
Source:  UNSD, Comtrade database (SITC Rev.3). WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 54 
 
 
Table AI.2 
Merchandise imports by group of products, 2000-06 
(US$ million and per cent) 
Description 2000 2001 2002 2003 2004 2005 2006 
  (US$ million) 
Total 162 186 178 201 225 240 .. 
  (% of total) 
Total primary products 39.4 35.2 37.0 34.7 36.7 38.3 .. 
   Agriculture 29.1 25.5 27.7 24.4 24.9 23.9 .. 
      Food 26.7 23.1 24.9 21.6 22.0 21.5 .. 
         0123 Poultry, meat and offal 3.1 2.9 3.0 2.8 3.1 3.2 .. 
         0412 Other wheat (including spelt) and meslin, unmilled 1.3 0.5 0.8 1.5 1.6 1.6 .. 
         0222 Milk concentrated or sweetened 1.5 1.5 1.4 1.3 1.2 1.3 .. 
         0989 Food preparations, n.e.s. 1.7 2.0 1.5 1.5 1.0 1.2 .. 
         1110 Non-alcoholic bevera ge, n.e.s. 0.5 0.7 0.8 0.9 0.9 1.1 .. 
         0484 Bread, baked goods 1.3 1.2 1.2 1.0 1.0 0.9 .. 
         0422 Rice, husked, not further prepared (cargo or brown rice) 3.0 1.6 1.5 0.9 1.4 0.7 .. 
         0910 Margarine, etc. 0.8 0.7 0.7 0.6 0.6 0.6 .. 
         0984 Sauce, mixed seasonings and condiments 0.6 0.5 0.6 0.5 0.5 0.5 .. 
         0481 Cereal grains, prepared n.e.s. 0.6 0.5 0.5 0.5 0.5 0.5 .. 
      Agricultural raw material 2.4 2.3 2.9 2.7 2.9 2.4 .. 
         2483 Wood, coniferous (incl. for pa rquet flooring) shaped 1.2 1.0 1.2 0.9 1.0 1.1 .. 
         2482 Wood of coniferous, sawn of a thickness > 6 mm 0.7 0.6 0.9 1.0 0.7 0.8 .. 
   Mining 10.3 9.7 9.3 10.3 11.8 14.4 .. 
      Ores and other minerals 0.3 0.5 0.4 0.3 0.5 0.3 .. 
      Non-ferrous metals 0.4 0.3 0.3 0.2 0.3 0.2 .. 
      Fuels 9.6 9.0 8.7 9.8 11.0 13.9 .. 
         3341 Motor gasolene, light oil 2.8 2.5 2.5 2.6 3.1 3.5 .. 
         3425 Butanes, liquefied 1.4 1.0 1.1 1.0 1.3 1.4 .. 
Manufactures 60.6 64.8 62.9 65.3 63.3 61.7 .. 
   Iron and steel 2.5 2.1 1.9 3.2 2.6 3.1 .. 
   Chemicals 10.1 9.8 10.0 8.8 8.4 9.2 .. 
         5429 Medicaments, n.e.s. 1.1 1.1 1.2 1.1 1.1 2.0 .. 
         5334 Paints and varnishes; plasti cs in solution; etc. 1.2 1.2 1.2 1.2 1.0 1.2 .. 
         5542 Surface-active agents (excl. soap) 0.8 0. 8 1.0 0.8 0.7 0.7 .. 
   Other semi-manufactures 14.8 14.3 15.0 15.0 15.0 14.2 .. 
         6612 Portland cement and similar hydraulic cements 2.4 2.3 2.5 2.5 2.2 1.9 .. 
         6343 Plywood of sheets <6 mm thickness 0.9 1.0 0.8 0.8 1.2 1.1 .. 
   Machinery and transport equipment 19.0 19.1 23.5 24.8 22.8 22.1 .. 
      Power generating machines 0.3 0.3 1.7 0.7 0.6 0.4 .. 
      Other non-electrical machinery 3.0 3.5 4.9 3.8 5.0 4.8 .. 
         Agricultural machinery and tractors 0.1 0.5 0.2 0.2 0.5 0.1 .. 
      Office machines & telecommuni cation equipment 5.2 4.5 6.6 10.3 5.1 6.4 .. 
         7762 Other electronic valves, tubes 0.0 0.0 0.0 0.0 0.0 1.9 .. 
         7643 Radio or television tran smission apparatus 0.5 0.3 1.6 4.9 1.6 1.4 .. 
      Other electrical machines 3.8 3.2 3.9 3.8 5.9 3.5 .. 
         7731 Insulated wire, cable etc.; optical fibre cables 0.8 0.5 0.7 0.5 0.8 0.5 .. 
         7752 Household fridges and freezers 0.5 0.6 0.5 0.5 0.6 0.5 .. 
      Automotive products 5.2 5.3 5.0 4.3 4.7 4.8 .. 
         7812 Motor vehicles for the transport of persons, n.e.s. 2.8 2.2 2.7 2.5 2.2 2.3 .. 
         7821 Goods vehicles 1.2 1.5 1.1 0.9 0.8 1.1 .. 
      Other transport equipment 1.4 2.3 1.4 2.1 1.5 2.1 .. 
   Textiles 1.4 1. 3 1.3 1.3 2.0 1.3 .. 
   Clothing 1.9 1.9 1.7 2.0 1.5 1.7 .. 
   Other consumer goods 11.0 16.4 9.7 10.2 10.8 10.0 .. 
         8921 Printed books, pamphlets, maps, et c. (excl. ad. material) 1.0 0.8 0.6 0.8 0.8 1.3 .. 
         8931 Plastics containers, stoppe rs, lids, etc. 0.9 0.7 1.0 0.8 0.9 1.0 .. 
 
.. Not available.  
Source:  UNSD, Comtrade database (SITC Rev.3). Saint Vincent and the Grenadin es WT/TPR/S/190/VCT/Rev.1 
 Page 55 
 
 
Table AI.3  
Merchandise exports and re-exports by trading partner, 2000-06  
(US$ million and per cent) 
Description 2000 2001 2002 2003 2004 2005 2006 
  (US$ million) 
Total 51 45 39 38 37 40 .. 
  (% of total) 
  America 51.1 60.5 60.1 69.5 65.1 72.6 .. 
    United States 2.6 2.6 5.2 13.2 5.3 9.2 .. 
    Other America 48.6 57.9 54.9 56.2 59.8 63.4 .. 
      Canada 0.5 0.3 0.2 0.6 0.3 0.3 .. 
      Barbados 8.2 10.0 11.4 11.2 13.0 12.7 .. 
      Trinidad and Tobago 9.5 17.4 9.9 11.0 9.9 12.3 .. 
      St Lucia 7.8 8.1 8.8 10.3 11.5 10.9 .. 
      Dominica 3.5 3.0 3.4 3.6 4.1 7.2 .. 
      Grenada 2.8 2.7 3.2 3.4 5.3 6.8 .. 
      Antigua and Barbuda 5.5 5.7 6.0 7.1 8.3 6.2 .. 
      St Kitts and Nevi s 4.6 2.9 2.7 2.7 2.6 2.8  
      Jamaica 2.9 4.2 4.3 2.5 2.2 1.8 .. 
      British Virgin Isla nds 0.4 0.7 1.1 1.1 0.6 0.5 .. 
      Montserrat 0.4 0.4 0.5 0.4 0.3 0.4 .. 
      Guyana 0.6 0.6 0.4 0.4 0.3 0.4 .. 
      Netherlands Antille s 1.5 1.1 1.5 0.9 0.9 0.3 .. 
      Suriname 0.0 0.0 0.0 0.0 0.0 0.3 .. 
      Anguilla 0.2 0.4 1.0 0.4 0.3 0.3 .. 
      Bolivarian Rep. of Venezuela 0.1 0.1 0.1 0.1 0.1 0.1 .. 
      Costa Rica 0.0 0.0 0.0 0.0 0.0 0.1 .. 
      Brazil 0.0 0.0 0.0 0.0 0.0 0.1  
  Europe 47.6 39.2 39.7 30.2 34.6 27.2 .. 
    EC(25) 46.3 39.2 39.6 30.2 34.6 27.2 .. 
      United Kingdom 37.4 37.7 38.8 29.3 33.5 26.7 .. 
      France 2.0 1.4 0.7 0.9 0.4 0.4 .. 
    EFTA 0.0 0.0 0.0 0.0 0.0 0.0 .. 
    Other Europe 1.3 0.0 0.0 0.0 0.0 0.0 .. 
  Commonwealth of Independent Stat es (CIS) 0.0 0.0 0.0 0.0 0.0 0.0 .. 
  Africa 0.0 0.0 0.0 0.0 0.1 0.0 .. 
  Middle East 1.0 0.0 0.0 0.0 0.0 0.0 .. 
  Asia 0.1 0.1 0.0 0.0 0.0 0.2  
    China 0.0 0.1 0.0 0.0 0.0 0.1 .. 
    Japan 0.0 0.0 0.0 0.0 0.0 0.0 .. 
    Six East Asian traders 0.1 0.0 0.0 0.0 0.0 0.1 .. 
    Other Asia 0.0 0.0 0.0 0.0 0.0 0.0 .. 
  Other 0.2 0.2 0.2 0.2 0.2 0.0 .. 
Memorandum:        
    EC(15) 46.3 39.2 39.6 30.2 34.6 27.2 .. 
    ASEAN 0.0 0.0 0.0 0.0 0.0 0.0 .. 
    APEC 3.2 3.0 5.4 13.9 5.6 9.7 .. 
    MERCOSUR 0.0 0.0 0.0 0.0 0.0 0.1 .. 
 
.. Not available.  
Source:  UNSD, Comtrade database (SITC Rev.3). WT/TPR/S/190/VCT/Rev.1 Trade Policy Review 
Page 56 
 
 
Table AI.4 
Merchandise imports by trading partner, 2000-06 
(US$ million and per cent) 
Description 2000 2001 2002 2003 2004 2005 2006 
  (US$ million) 
Total 162 186 178 201 225 240 .. 
 (% of total) 
  America 77.0 71.4 77.0 78.9 73.9 73.0 .. 
    United States 38.2 35.2 40.7 41.2 37.4 33.3 .. 
    Other America 38.8 36.2 36.3 37.7 36.5 39.7 .. 
      Canada 2.9 2.6 2.3 2.9 2.7 3.8 .. 
      Trinidad and Tobago 21.1 19.9 20.5 20.7 21.3 23.6 .. 
      Barbados 4.5 4.0 4.0 3.8 4.0 3.9 .. 
      Brazil 1.0 1.1 1.1 1.1 1.4 1.2 .. 
      Colombia 0.4 0.3 0.3 1.4 0.6 1.0 .. 
      Guyana 2.3 1.2 1.2 0.8 1.1 0.8 .. 
      Honduras 0.8 0.3 0.4 0.5 0.4 0.8 .. 
      Mexico 0.4 0.5 0.4 0.5 0.4 0.7 .. 
      Jamaica 0.8 0.9 0.7 0.9 0.6 0.7 .. 
      St Lucia 0.4 0.5 0.8 1.1 0.9 0.7 .. 
      Dominican Rep. 0.4 0.4 0.6 0.4 0.3 0.5 .. 
      Argentina 0.1 0.1 0.1 0.1 0.2 0.3 .. 
      Costa Rica 0.2 0.1 0.2 0.3 0.3 0.3 .. 
      Bolivarian Rep. of Venezuela 1.0 0.6 0.7 0.9 0.4 0.3 .. 
  Europe 16.0 21.5 16.1 13.2 16.7 15.5 .. 
    EC(25) 15.7 21.2 15.3 12.9 16.1 15.1 .. 
      United Kingdom 8.6 9.8 8.3 7.2 10.4 9.4 .. 
      Italy 1.8 7.4 0.7 0.5 1.6 1.2 .. 
      France 1.8 1.3 1.8 0.7 1.3 1.1 .. 
      Germany 1.0 0.8 1.0 0.6 0.6 1.1 .. 
    EFTA 0.3 0.3 0.7 0.3 0.4 0.4 .. 
    Other Europe 0.0 0.0 0.0 0.0 0.1 0.0 .. 
  Commonwealth of Independent Stat es (CIS) 0.0 0.0 0.0 0.0 0.0 0.0 .. 
  Africa 0.0 0.1 0.0 0.1 0.3 0.1 .. 
      South Africa 0.0 0.1 0.0 0.1 0.2 0.1 .. 
  Middle East 0.1 0.0 0.0 0.0 0.1 0.0 .. 
  Asia 6.5 6.6 6.4 7.4 8.7 11.4 .. 
    China 0.6 0.7 0.7 0.9 1.5 2.7 .. 
    Japan 3.7 3.5 3.5 3.3 3.7 4.2 .. 
    Six East Asian traders 0.9 0.8 1.1 1.2 2.1 2.0 .. 
      Chinese Taipei 0.3 0.3 0.8 0.8 1.4 0.9 .. 
      Korea, Rep. of 0.2 0.1 0.1 0.1 0.1 0.5 .. 
      Hong Kong, China 0.1 0.1 0.1 0.1 0.2 0.3 .. 
    Other Asia 1.3 1.6 1.0 2.1 1.5 2.4 .. 
      India 0.0 0.1 0.1 0.2 0.2 1.0 .. 
      Australia 1.0 0.9 0.6 1.1 0.5 0.8 .. 
  Other 0.5 0.5 0.5 0.4 0.4 0.0 .. 
M e m o r a n d u m :         
    EC(15) 15.6 21.1 15.2 12.8 16.1 15.0 .. 
    ASEAN 0.4 0.4 0.3 0.7 0.8 0.7 .. 
    APEC 47.8 44.8 49.8 51.9 49.0 48.4 .. 
    MERCOSUR 1.0 1.4 1.2 1.2 1.6 1.5 .. 
 
.. Not available. 
 
Source:  UNSD, Comtrade database (SITC Rev.3). 
 
__________