RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/190/KNA 
1 October 2007  
 
(07-3986) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
SAINT KITTS AND NEVIS 
 
  
 
This report, prepared for the second Tr ade Policy Review of Saint Kitts and 
Nevis, 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 (Annex 3 of the Ma rrakesh Agreement Establishing the 
World Trade Organization), sought clar ification from Saint Kitts and Nevis 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/KNA contains the policy statement submitted by 
Saint Kitts and Nevis. 
 
 
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 Kitts and Nevis. Saint Kitts and Nevis WT/TPR/S/190/KNA 
 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 10 
 (1) M EASURES DIRECTLY AFFECTING IMPORTS  10 
 (i) Customs procedures, documentation, and registration 10 
 (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 16  (vii) Contingency measures 18 
 (viii) Technical regulations and standards 19 
 (ix) Sanitary and phytosanitary measures 19 
 (2) M
EASURES DIRECTLY AFFECTING EXPORTS  20 
 (i) Documentation, export taxes, and restrictions 20 
 (ii) Export subsidies, financing, support, and promotion 21 
 (3) M EASURES AFFECTING PRODUCTION AND TRADE  22 
 (i) Legal framework for business and taxation 22 
 (ii) Incentives and assistance 23  (iii) Competition policy and regulatory issues 24 
 (iv) Government procurement 25 
 (v) Intellectual property rights 25 WT/TPR/S/190/KNA Trade Policy Review 
Page iv 
 
 
 Page 
IV. TRADE POLICIES BY SECTOR 28 
 (1) A GRICULTURE  28 
 (2) M ANUFACTURING  30 
 (3) S ERVICES  30 
 (i) Main features 30 
 (ii) Telecommunications 31  (iii) Financial services 33 
 (iv) Air transport 36 
 (v) Maritime transport 37  (vi) Tourism 38 
 (vii) Professional services 39 
 (viii) Other offshore services 40 
REFERENCES   41 
APPENDIX TABLES  43 
 
TABLES 
 
I. ECONOMIC ENVIRONMENT 
 
I.1 Basic macroeconomic indicators, 2000-06 2 I.2 Balance of payments, 2001-06 5 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
III.1 Trade-related taxes, 2007-08 12 
III.2 Structure of the tariff, 2006 13 III.3 Summary analysis of the MFN tariff, as applied in 2006 14 
III.4 Import restrictions, 2006 17 
III.5 Membership in international instruments on intellectual property rights, 2006 26  
IV. TRADE POLICIES BY SECTOR 
 IV.1 Telecommunications statistics, 2002-06 32 
 
 
APPENDIX TABLES 
 
I. ECONOMIC ENVIRONMENT 
 
AI.1 Merchandise exports and re-exports by group of products, 2000-06    45 AI.2 Merchandise imports by group of products, 2000-06      46 
AI.3 Merchandise exports and re-exports by trading partner, 2000-06    47 
AI.4 Merchandise imports by trading partner, 2000-06      48 
 
 Saint Kitts and Nevis WT/TPR/S/190/KNA 
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I. ECONOMIC ENVIRONMENT 
(1) STRUCTURE OF THE ECONOMY , OUTPUT , AND EMPLOYMENT  
1. Services are the major economic activity of St. Kitts and Nevis, contributing about 80.5% of 
GDP in 2005 at basic prices.  Construction accounted  for some 14.8% of GDP in 2005, manufacturing 
for 9.7%, agriculture for 3%, and water and electricity for 2.8%.1  Aside from services provided by the 
Government, the main service activities are touris m, banking and insurance, wholesale and retail 
trade, and transportation;  all except wholesale an d retail trade, gained share of GDP during the 
2001-05 period.  Tourism is the most important act ivity in terms of jobs and foreign exchange. 
2. The contribution of agriculture to GDP declined to just 3% of GDP between 2002 and 2005, 
as a consequence of lower sugar cane production, but also of the reduced output of other crops.  It 
declined further in 2006 as sugar production w as halted at end July 2005, and agricultural GDP 
contracted by 14.4% in real terms.  The importan ce of sugar cane had been declining, and in 2005 it 
represented just 0.5% of GDP;  production was concentr ated in St. Kitts, where it was the main crop.  
The St. Kitts Sugar Manufacturing Corporation (SSM C), the sole producer and exporter of sugar, 
continued to make heavy losses up to 2005;  its closur e in July left around 1,500 workers out of a job 
(some 12% of the labour force).  Sugar exports  had taken place under quotas and preferential price 
conditions offered by the European Communities and the United States. 
3. The contribution of manufacturing (including agri -industry) to GDP declined slightly between 
2000 and 2005, from 10.4% to 9.7%, mainly due to a sharp contraction in the refined sugar and 
molasses industry.  The manufacturing sector consis ts primarily of light manufactures like beverages 
(beer, malt, rum, bottled water, and other soft dri nks), and pasta for the domestic market;  and of 
enclave industries that assemble electrical or elec tronic components, and traps for the cable industry, 
for the external market.  In recent years, there has been an increase in the production of concrete, 
electronic components, and bottled water.  Construc tion grew strongly in the early 2000s, boosted by 
reconstruction after the hurricanes of the late 1990s , and new investment in tourism, housing, and 
public sector projects. 
4. Following the 11 September 2001 events, the econom y of St. Kitts and Nevis contracted, but 
rebounded strongly in 2004 with growth continuing at  high rates in 2005 and 2006 (Table I.1)  The 
annual average real GDP growth rate for the 2000-06  period was 4.1% at market prices and 3.1% at 
basic prices.  GDP growth in 2004, 2005, and 2006 was largely due to the expansion of the 
construction and hotels and restaurants sectors.  The latter activity was boosted by the preparations for 
international cricket matches in 2006 and the Cric ket World Cup in 2007.  In this respect the 
authorities noted that the effect of the Cricket Worl d Cup had been less than initially expected:  they 
expected construction to remain the driving fo rce of the economy, supported by still strong hotel 
developments, and some public infrastructure projects. 
5. GDP per capita in St. Kitts and Nevis, at  US$9,550 in 2006, is the second highest among 
OECS countries.  In terms of purchasing power, it was estimated by the IMF as US$17,523 in the 
same year.2  Net aid per capita is nil, having been estim ated by the World Bank as an outflow of US$2 
in 2005.3 
                                                      
1 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). 
2 http://www.imf.org/external/pubs/f t/weo/2007/01/data/weoselgr.aspx. 
3 World Bank (2007). WT/TPR/S/190/KNA Trade Policy Review 
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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$ m illion) 888.9 924.5 947.6 977. 5 1,077.9 1, 157.6 1,289.0
Nominal GDP at basic prices (EC$ m illion) 765.2 792.8 802.1 813.1 894.0 952. 1 1,031.1
Real GDP at basic prices (EC$ m illion) 555.0 564.1 562.5 555.5 596.2 620.5 656.5
GDP per capita at market prices (EC$) 20,071 20,049 20,287 20,659 22,124 23,478 25,786
GDP per capita at basic prices (EC$) 17,280 17,193 16,965 16,927 18,350 19,291 20,625
GDP growth (real, market prices) 4.3 2.1 1.0 0.5 7.6 5.0 8.7
GDP growth (real, basic prices) 4.3 1.7 -0.3 -1.2 7.3 4.1 5.8
GDP components  
Total consumption (% of GDP) 80.4 71.8 77.6 79.5 72.7 74.1 ..
   Private consumption (% of GDP) 59.3 51.1 57.8 60.7 52.5 55.6 ..
   Central government consumption (%  of GDP) 21.1 20.7 19.8 18.8 20.2 18.5 ..
   Gross capital formation (% of GDP) 49.6 54.1 51.8 45.6 43.8 45.5 ..
   Machinery and equipment 15.6 17.3 16.7 15.9 14.3 15.9 ..
   Construction 34.0 36.8 35.1 29.7 29.5 29.6 ..
Exports of goods and services  (% of GDP) 45.5 44.7 43.7 48.8 48.3 47.0 ..
  Goods 15.6 16.1 18.0 19.0 14.4 13.5 ..
  Non-factor services 29.9 28.6 25.7 29.8 33.9 33.5 ..
Imports (% of GDP) 75.5 70.6 73.0 70.6 64.7 66.5 ..
  Goods 52.5 48.7 50.6 48.5 43.9 45.1 ..
  Non-factor services 23.0 21.9 22.4 22.1 20.8 21.4 ..
Gross national savings (% of GDP) 29.5 22.8 16.34 13.6 21.2 20.6 ..
Foreign savings (% of GDP) 20.1 31.4 35.5 32.1 17.2 19.5 26.8
Consumer price index (end of period) .. 2.7 1.7 3.1 1.7 6.0 8.4
Consumer price index (period average) 2.2 2.3 2.0 2.2 2.3 3.6 8.5
Implicit gross value added deflator (end period) 3.5 1.9 1.5 2.7 2.5 2.3 2.4
General government finance (% of GDP)   
Current revenue 28.6 28.9 31.6 32.9 33.9 37.5 38.1
  of which, tax revenue 21.1 21.1 22.4 23.8 28.7 28.2 29.0
         of which taxes on international trade 10.6 10.2 11.0 12.6 14.3 14.6 13.6
             of which  
                    Consumption tax 4.7 4.8 5.4 6.0 7.0 6.9 6.5
                     Import duties 4.4 3.4 3.6 3.9 4.2 4.2 3.8
                     Customs service charges 1.1 1.5 1.7 2.0 2.4 2.7 2.6
Current expenditure 33.2 33.2 34.2 34.1 35.4 38.0 36.8
Current account balance -4.6 -4.3 -2.6 -1.2 -1.5 -0.5 1.3
Primary balance -9.5 -6.2 -9.5 -0.5 -0.4 4.1 6.1
Overall fiscal balance (% of GDP) -14.2 -11.8 -16.6 -8.2 -7.9 -4.2 -2.1
Total public debt (% of GDP) 114.2 132.3 158.7 177.2 191.6 196.6 188.3
Money and interest rates  
Money supply, M1 (end of period.) 3.8 -3.6 12.9 11.0 25.0 -1.6 9.4
Broad money, M2 (end of period) 27.9 2.3 6.4 6.9 21.7 4.7 11.7
Weighted deposit interest rate 4.3 4.2 3.8 4.1 3.6 4.1 3.7
Weighted lending interest rate 11.1 11.1 10.4 12.0 9.9 9.7 9.4
Prime rate 9.5-11.0 9.5-12.5 9.5-12.5 8.5-11.0 8.5-9.0 8.5-9.0 8.5-9.0
 
.. Not available. 
 
Source: ECCB (2006b), National Account Statistics 2006  and ECCB (2006a) and (2007) Annual Economic and Financial 
 Review , 2005 and 2006. 
6. Data are not available on the level of employme nt and wage movement in St Kitts and Nevis 
for the period under review.  The informal sector is  relatively large;  a recent IMF study estimated 
informal activity at some 24.4% of GDP.4 
                                                      
4 Vuletin, Guillermo (2007). Saint Kitts and Nevis WT/TPR/S/190/KNA 
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(2) FISCAL POLICY  
7. Fiscal policy is the responsibility of the Ministry of Finance.  It is the main macroeconomic 
instrument actively used by the authorities to affect output, as St. Kitts and Nevis, 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 effects of external  shocks.  As in other OECS countries, and due to 
the high dependency on taxes on foreign trade for re venue, fiscal policy has a strong link with trade 
policy. 
8. After worsening over the 2000-02 period, the fiscal position of St. Kitts and Nevis has 
improved.  The overall fiscal deficit declined fro m 16.6% of GDP in 2002 to 2.1% in 2006, while the 
primary balance posted a surplus of 6.1% of GDP in  contrast to a 9.5% deficit in 2002.  The lower 
overall deficit reflected an initial narrowing and, in  2006, turnaround of the current balance, from a 
4.6% of GDP deficit in 2000 to a surplus of 1.3% of  GDP in 2006, and an increase in grant receipts.  
This improvement was also the result of various factors, including higher economic growth, a freeze 
on public sector wages, and a substantial increase in tax revenues due to administrative 
improvements, as well as the reduction of tax and tariff concessions.  Higher receipts from tax and 
non-tax sources has led to an increase in tax revenue  from 21.2% of GDP in 2001 to 29% in 2006, 
with taxes on international trade rising from 10.2% to 13.6% of GDP. 
9. While government finances impr oved during 2004-05, the IMF cautions that the sharp rise in 
oil prices and prospective public sector investments are constraining further fiscal consolidation.5  The 
IMF also notes that, although revenue collection ha s shown continued strength, it has been mostly 
offset by increasing current expenditure.  As a r esult, current expenditure increased from 33.2% of 
GDP in 2001 to 38% in 2005, before declining somewhat to 36.8% in 2006. 
10. Although reforms have been introduced, the syst em of fiscal incentives for investment and 
import duty concessions may result in considerable  revenue forgone.  Curtailing concessions and 
making them more transparent, may help strengthen the otherwise fragile fiscal situation, and would 
enhance the predictability and accountability of the investment regime. 
11. Total public debt continued to rise during th e period under review, reaching 196.6% of GDP 
by end 2005, before declining to 188.3% by end 2006.  The stock of domestic debt totalled 
EC$756.1 million in 2005, while that of external de bt reached EC$592 million.  In recent years, the 
level of domestic debt has been increasing, while fore ign debt has fallen.  Total debt service payments 
were 36.3% of current revenue in  2005.  High debt payments remain among the main problems facing 
the economy:  they are a major macroeconomic cons traint since they limit the use of fiscal policy. 
12. The 2007 budget address announced the imminent  implementation of policy measures, 
including tax incentives, to induce consumers to  modify their levels and patterns of energy 
consumption.  It also announced that the Gove rnment was studying the implementation of a 
comprehensive transaction-based tax, with an impl ementation schedule to be announced during 2007.  
As at mid 2007, no measures had been put in place yet. 
(3) MONETARY AND EXCHANGE RATE POLICY  
13. St. Kitts and Nevis, together with the other OECS States, is a member of the Eastern 
Caribbean Currency Union (ECCU).  The Monetary Council of the Eastern Caribbean Central Bank 
                                                      
5 IMF, Public Information Notice (PIN) No. 06/11, "Executive Board Concludes 2005 Article IV 
Consultation with St. Kitts and Nevis", 1 February 2006. WT/TPR/S/190/KNA Trade Policy Review 
Page 4 
 
 
(ECCB) is responsible for monetary policy for th e whole OECS.  The ECCB has kept the EC dollar 
pegged to the U.S. dollar at a rate of EC$2.70 pe r US$1.  Following this peg, the nominal effective 
exchange rate has followed the movement of the U. S. dollar vis-à-vis the currencies of other trading 
partners, which in the period under review  has implied a gain in competitiveness. 
14. The growth in monetary aggregates remained  high during the period under review.  Broad 
money supply (M2) expanded at an annual averag e rate of 11.5% betwee n 2000 and 2006.  Gross 
credit to the Central Government grew by some 140% from 2002 to end 2006, almost five times the 
rate of growth in private sector credit, giving so me indications of a crowding out effect.  Outstanding 
loans and advances from commercial banks to the Central Government more than doubled in 2005, 
partly due to a loan to meet severance payments to former sugar workers.  In 2006, commercial bank 
credit to the Central Government increased by 28%, in  part associated with loans for electricity and 
water upgrades and for severance payments to former  sugar workers.  Among credit to the private 
sector, credit for construction was particularly d ynamic.  The prime lending rate declined from a 
9.5-11% range in 2001 to an 8.5-9% range on 2006;  other lending rates also declined. 
15. During 2001-06, inflation, as measured by the increase in the CPI, was moderate on average.  
However, during 2005 and 2006, the retail price i ndex rose substantially, driven largely by price 
increases in the sub-indices fuel and electricity, transport and communications, and food. 
(4) BALANCE OF PAYMENTS , TRADE AND INVESTMENT FLOWS  
16. The current account of the balance of payments is traditionally in deficit, since imports of 
goods largely exceed exports, and the surplus in servi ces is insufficient to cover the difference.  
Current account deficits, although la rge, have fluctuated widely during the period under review.  The 
deficit narrowed somewhat in 2004 and 2005 owing to a large increase in tourism receipts (Tables I.1 
and I.2), but increased again in 2006.  The larg e current account deficit resulted mainly from a 
deterioration in the merchandise trade balance as increases in import payments outweighed export 
receipts. 
17. The share of exports of goods in GDP declined between 2001 and 2006, affected by the 
problems in the sugar industry.  After peaking in  the early 2000s, the share of imports in GDP 
declined somewhat to some 45.7% of GDP in 2006.  The surplus in services in creased substantially in 
2004 and 2005, on account of higher travel receipt s.  The income balance posted a considerable 
deficit throughout 2001-06, reflecting mainly the repa triation of profits by commercial banks as well 
as interest payments by foreign-owned hotels.  Th e deficit in merchandise trade continued to increase 
in 2001-06.  The surplus on the capital and financ ial account declined between 2002 and 2005, partly 
due to a reduction in net inflows of commercial bank short term capital;  it increased again in 2006. 
18. Exports of agricultural products (principally  sugar) accounted for some 33.4% of total 
merchandise exports in 2004, but only for 4.2% in 2005 due to the closure of the sugar industry 
(Table AI.1).  Products such as switches, relays , fuses, and electrical capacitors accounted for about 
90.6% of total exports in 2005, up  from 62.9% the previous year.  The composition of imports has 
remained stable since 2000:  more than half of all imports are consumer goods, both agricultural and 
manufactures (Table AI.2);  the rest is mainly m achinery and equipment (some 30% of the total), and 
inputs.  Fuel imports have increased substantially since 2000 as a result of high world prices;  they 
represented 8.8% of total imports in 2005, compared with 7.6% in 2000. Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 5 
 
 
Table I.2 
Balance of payments, 2001-06 
(US$ million) 
 2001 2002 2003 2004 2005 2006 
Current account -107.4 -129.6 -116.1 -68.6 -83.6 -127.7 
Goods and services -88.9 -105.7 -90.9 -47.9 -70.7 -114.4 
Goods -111.6 -117.2 -118.6 -102.2 -130.7 -159.6 
Merchandise -113.9 -118.7 -121.0 -106.3 -135.1 -166.8 
   Exports 43.4 58.9 54.6 54.5 50.1 51.4 
   Imports -115.7 -177.5 -175.6 -160.8 -185.2 -218.2 
Repair on goods 0.0 0.0 0.0 0.0 0.1 0.1 
Goods procured in ports by carriers 2.3 1.4 2.4 4.1 4.3 7.1 
Services  22.7 11.6 27.7 54.3 60.0 45.1 
Transportation -19.4 -21.9 -23.0 -23.2 -27.9 -30.1 
Travel 53.8 49.6 67.2 93.0 104.5 104.4 
Insurance services -6.3 -7.3 -7.5 -6.7 -8.7 -10.0 
Other business services -5.3 -7.7 -7.5 -8.2 -8.0 -19.0 
Government services -0.1 -1.1 -1.6 -0.4 0.0 -0.2 
Income -34.6 -38.1 -43.7 -38.9 -33.5 -33.3 
Compensation of employees -2.7 -2.7 -3.3 -2.9 -2.2 -2.5 
Investment income -31.9 -35.3 -40.4 -36.0 -31.3 -30.9 
Current transfers 16.1 16.4 18.6 18.2 20.6 20.1 
General government -1.2 -0.4 -0.4 -1.3 -1.0 -1.4 
Other sectors 17.2 16.9 19.0 19.6 21.6 21.5 
Capital and financial account 119.0 135.9 115.1 82.2 76.9 144.8 
Capital account 10.9 14.6 5.4 5.4 14.7 12.9 
Capital transfers 10.9 14.4 5.2 5.4 14.7 12.9 
Financial account 108.1 121.3 109.8 76.8 62.2 131.9 
Direct investment  88.1 79.8 75.6 46.1 85.5 199.7 
Portfolio investment 42.7 30.4 48.0 -9.9 -15.0 -15.1 
Other investments -22.7 11.2 -13.9 40.5 -8.3 -52.7 
Public sector long term -20.5 16.5 2.2 -0.8 -10.1 -1.7 
Commercial banks -10.0 -19.2 -33.3 56.3 -40.0 -68.3 
Other assets -7.7 3.0 -6.1 -22.4 -12.5 -14.0 
Other liabilitiesa 0.2 11.0 23.2 7.4 54.3 31.3 
Overall balance  11.6 8.6 -1.0 13.6 -6.7 17.1 
Financing -11.6 -8.6 1.0 -13.6 6.7 -17.1 
Change in government foreign a ssets 0.1 0.2 0.0 0.0 -0.2 0.0 
Change in imputed reserves -11.7 -8.9 1.0 -13.7 6.9 -17.1 
Memorandum   0.0 0.0 0.0 0.0 0.0 
Current account balance (% of GDP)  -31.3 -13.4 -11.9 -6.4 -7.2 -9.9 
Estimated visitor expenditure (EC$  million) 167.0 57.1 75.4 102.6 114.5 116.3 
Outstanding external public debt (%  of GDP) 62.6 75.5 87.1 79.1 67.4 .. 
 
.. Not available.  
a Includes errors and omissions. 
 
Source:  ECCB (2006a) and (2007) Annual Economic and Financial Review  2005 and 2006. 
19. St. Kitts and Nevis' main trading partner is the United States, which was the destination for 
some 92% of exports in 2005, and the origin of 58% of imports.  The second largest partner is the 
United Kingdom followed by other EC countries an d other CARICOM countries, especially Trinidad 
and Tobago (Tables AI.3 and AI.4). 
20. Total foreign direct investment during 2000-05 amounted to US$340 million, or over 75% of 
GDP.  The main foreign investment inflows in the period were in constructi on, hotel development and 
reconstruction, and the electronics industry.  FDI is expected to be boosted by investments, related to 
the Cricket World Cup, including a projected rise in visitor accommodation capacity, and should 
finance most of the current account deficit in the near term. WT/TPR/S/190/KNA Trade Policy Review 
Page 6 
 
 
(5) OUTLOOK  
21. No government economic forecasts were available for the current review.  The IMF is 
forecasting GDP growth of 6% in 2007 and 4.3% in 2008, after an estimated 5.2% in 2006.  
Consumer prices are expected to increase by 3.2% in  2007 and 2.1% in 2008.  The IMF considers that 
fiscal consolidation should be the policy priori ty and that, given the economy's high degree of 
vulnerability, precautionary measures and contingenc y planning should be adopted, with a focus on 
dealing with potential natural disast ers and financial sector shocks.6 
II. TRADE AND INVESTMENT POLICY FRAMEWORK 
(1) GENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK  
22. St. Kitts and Nevis is a sovereign federal democr atic state;  it inherited a Westminster-style 
parliamentary system upon independence on 19 Sept ember 1983.  Represented by the Governor 
General on the island, the Queen of England is the Head of State.  Although St. Kitts and Nevis is 
constitutionally a single state, the Constitution gran ts significant autonomy to the island of Nevis, 
which has a semi-autonomous Island Assembly , Island Administration, and a Premier. 
23. Governance of St. Kitts and Nevis is the responsib ility of the Cabinet of Ministers, headed by 
a Prime Minister.  The Cabinet is drawn from the ma jority party in Parliament, and is appointed by 
the Governor General after each election.  The Prim e Minister is appointed by the Governor General 
on the basis that he or she appears to command th e support of the majority of elected members.  
Ministers of Government are appointed by the Go vernor General exclusively on the advice of the 
Prime Minister.  Cabinet is responsible for the day to  day management of the country's affairs, and is 
collectively accountable to the National Assembly or Legislature. 
24. International treaties and trade agreements are concluded and signed on the exclusive 
authority of the Cabinet of Ministers, who may auth orize the Prime Minister or any other Minister to 
sign such agreements on behalf of St. Kitts and Nevis.  Internationa l agreements to which St. Kitts 
and Nevis is a party, may be invoked by private indi viduals before national courts only if enacted into 
domestic law. 
25. Responsibility for Law-making in St. Kitts an d Nevis is shared between the National 
Assembly based in St. Kitts and the Nevis Island As sembly based in Nevis.  The unicameral National 
Assembly has exclusive authority to enact laws of  national concern, while the Constitution permits the 
Nevis Island Assembly to enact ordinances relate d to a range of specified matters, not including 
defence or foreign relations.  The Nevis Island Assembly is restricted by the Constitution from 
enacting laws that are inconsistent with the genera l policy of the Government, or relating to matters 
that, in the written opinion of the Prime Minister , are of national concern, without his prior 
concurrence.  The provisions of laws enacted by the National Assembly prevail in the event of any 
inconsistency. 
26. In the National Assembly, laws begin as bills , generally introduced by a Minister of 
Government after the draft has been approved by th e Cabinet of Ministers.  Bills go through three 
stages;  during the second reading of a bill its mer its are debated by members of the Assembly and 
amendments are made.  Once all amendments have been  made, the bill is read a third time, and is put 
                                                      
6 IMF Public Information Notice (PIN) No. 07/42, "IMF Executive Board Concludes 2006 Article IV 
Consultation with St. Kitts and Nevis" , 27 March 2007.  Viewed at:  h ttp://www.imf.org/ex ternal/np/sec/ 
pn/2007/pn0742.htm. Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 7 
 
 
to a vote by the Speaker of the House.  Bills b ecome law only after they have received the assent of 
the Governor General and ha ve been published in the Government Gazette . 
27. The National Assembly consists of 11 elected re presentatives, each elected by universal adult 
suffrage through a first-past-the-post system, and three Senators, one appointed by the 
Governor General on the advice of the Leader of the Opposition, and two appointed on the advice of 
the Prime Minister.  Elections are due every five y ears but may be called sooner;  the last elections 
were held in October 2004. 
28. The law of Saint Kitts and Nevis is based on English common law.  The Constitution is the 
country's supreme law;  all other laws enacted by the National Assembly must conform to it or are 
void to the extent of any contradiction.  Cha nging the Constitution requires at least a two-thirds 
majority vote in the National Assembly as well as a referendum in many cases.  A two-thirds majority vote and a referendum would be required were Nevis to elect to end its status as part of the Federation 
with St. Kitts. 
29. The judicial branch of Government is independe nt from the Executive and Legislature.  At the 
lowest judicial level, Magistrate's courts deal with minor civil and criminal cases.  Serious criminal 
matters, civil cases involving claims above EC$5,00 0, and questions of interpretation of the 
Constitution are dealt with by the High Court.  The first level of appeal is to the Eastern Caribbean 
Supreme Court.  This is a constitu tionally entrenched itinerant court, based in Saint Lucia, and shared 
by the members of the OECS.  The country's final court of appeal is the Privy Council, based in 
London. 
30. In 2005, St. Kitts and Nevis joined other CARICOM Members States in establishing the 
Caribbean Court of Justice (CCJ), a regional court with both original and exclusive jurisdiction for 
interpreting provisions of the Revised Treaty of Chaguaramas 2001, and appellate jurisdiction for 
municipal appeals from the member states.  Although St. Kitts and Nevis has signed on to the court's original jurisdiction accession to the appellate juri sdiction of the CCJ would involve a constitutional 
amendment, including a referendum.  In 2005, the Go vernment indicated that it would attempt to take 
the necessary steps to accede to the Court's appellate jurisdiction.
7  Appeals are currently made to the 
London-based Privy Council. 
(2) TRADE POLICY FORMULATION AND IMPLEMENTATION  
31. The Ministry of Foreign Affairs, Internati onal Trade, Industry Commerce and  Consumer 
Affairs is responsible for all WTO and internationa l and regional trade issues;  it is also the main 
agency for coordinating trade policy discussions a nd formulation, and is responsible for matters 
related to anti-dumping, subsidies, and competition policy.  The Ministry of Finance, Sustainable 
Development, Information Technology, Tourism, Cu lture and Sport, through the Customs and Excise 
Department, is directly responsible for tariffs and cu stoms valuation.  It is also responsible, together 
with the Ministry of Foreign Affairs, Internationa l Trade, Industry, Commer ce and Consumer Affairs, 
for formulating of policy relating to services and to foreign direct investment.  Other agencies 
involved in trade include the Ministry of Housing, Agriculture, Fisheries, and  the Office of the Attorney General, and the St. Kitts and Nevis Bureau  of Standards.  In 2007, the Ministry of Foreign 
Affairs, International Trade, Industry, Commerce and Consumer Affairs had three technical staff 
focused on trade issues. 
                                                     
 
7 Government of St. Kitts and Nevis (2005) Prime Minister's Budget Address , viewed at:  
http://www.gov.kn/pdf/Budget_Addresses/2005_Budget_Address_20050222.pdf, p. 31. WT/TPR/S/190/KNA Trade Policy Review 
Page 8 
 
 
32. Trade policy is coordinated at the national leve l with the private sector.  The views of the 
private sector are generally expressed through th e local Chamber of Industry and Commerce and 
through specially organized consultations for these purposes.  In addition, the views of labour unions 
are taken into account. 
33. St. Kitts and Nevis' trade policy objectives have  not changed significantly since 2001.  Over 
the years, the objective of the trade and investme nt policy has been to enhance competitiveness and 
attract foreign direct investment, particularly in tourism and manufacturing, financial services, 
informatics and other services, and to promote some  degree of economic diversification particularly 
following the closure of the sugar industry.  St. Kitts and Nevis has traditionally regarded 
international trade and special and differential treat ment in its trading arrangements as playing a vital 
role in its economic development, and the authoriti es have noted that participation in the multilateral 
system presents opportunities for fuller integration into the global economy. 
34. St. Kitts and Nevis regards participation in the WTO as critically important, in light of 
concerns about preference erosion and the impact of changing preferences on its sugar industry.  The 
country regards engagement with the multilateral system  as important, particularly in the context of 
the Doha Development Agenda.  However, due to relatively small human and technical resources in 
the area of trade policy, St. Kitts and Nevis attempts  to coordinate its trade through agreements with 
regional partners, as part of the OECS, as well as through CARICOM (see section (4) below).  As 
with other CARICOM States, the country depends  on the CRNM to facilitate negotiations on its 
behalf.  Policy harmonization with other OECS and CARICOM Member States also takes place in 
other areas, including investment, internationa l relations, tourism, and monetary policy. 
(3) FOREIGN INVESTMENT REGIME  
35. St. Kitts and Nevis' foreign investment regi me has not changed substantially since 2001.  
Foreign investors may hold up to 100% of an investme nt.  With one exception, foreign investment in 
Saint Kitts and Nevis is not subject to any rest rictions, and foreign investors receive national 
treatment.  The only restriction is the requirement  to obtain an Alien Landholders Licence for foreign 
investors seeking to purchase property for residentia l or commercial purposes.  The cost of these 
licences is 10% of the value of the land or of the in terest in the real estate to be purchased.  Licences 
are granted once properly submitted to Cabinet for consideration and payment of the licence fees.  
Foreign investors do not require a landholding licence for the purchase of land in certain parts of the 
island, such as Frigate Bay or the South East Peninsula. 
36. In St. Kitts and Nevis, foreign investment is  the responsibility of the Ministry of Foreign 
Affairs, International Trade, Industry, Commerce a nd Consumer Affairs, along with the Ministry of 
Finance and the Ministry of Sustainable Developmen t  In order to attract foreign investment, the 
Government offers a range of incentives to potential i nvestors, particularly in the areas of tourism and 
hotel accommodation, and manufacturing.  Fiscal incentives for foreign investment are granted under 
the Fiscal Incentives Act of 1974 and also available under different acts for investment in the Tourism 
Sector, Chapter III(3)(ii)).  Remittances to persons or  entities abroad are subject to a 10% withholding 
tax.  Additionally, where a company is not exempt, there is a 20% capital gains tax on profits unless 
an exemption is granted under the Act from the dispo sal of assets located in St. Kitts within a year of 
their acquisition. 
37. In October 2006, St. Kitts and Nevis announced changes to its Citizenship by Investment 
Programme, with the stated objectives of strengt hening the regulations that underpinned it and 
protecting the programme's reputation.  The progr amme was reformed to focus more heavily on 
investment promotion.  Under the programme, foreign individuals can obtain citizenship in Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 9 
 
 
accordance with subsection (5) of Section 3 of the Ci tizenship Act of 1984, which grants the right of 
citizenship (without voting rights) by investment.  Previously, minimum investment of US$250,000 in 
ten-year Treasury Bonds issued and guaranteed by the Federation of St. Kitts and Nevis entitled the 
investor to apply for citizenship status.  This opt ion has been abolished.  The current minimum that 
would entitle an investor to qualify is US$350,000 in real estate.  The previous minimum was 
US$250,000.  Applicants must now also provide more  comprehensive personal information;  a full 
medical certificate;  and evidence of the source of funds.  In addition, the Government has adopted a 
new, more secure Citizen by Investment Certif icate in order to minimize the risk of unlawful 
duplication.8 
38. St. Kitts And Nevis has not signed any bilateral investment agreements with any countries. It 
has double taxation agreements with Denmark, Norway, Sweden, the United Kingdom, and the United States. 
(4) I
NTERNATIONAL RELATIONS  
(i) World Trade Organization 
39. Prior to independence, St. Kitts and Nevis applied GATT de facto as a member of the 
metropolitan territory of the United Kingdom.  Following independence, on 19 September 1983, 
St. Kitts and Nevis became a GATT contracting part y on 24 March 1994, un der Article XXVI:5(c), 
with its rights and obligations under GATT retroactiv e to the date of independence.  St. Kitts and 
Nevis has been a WTO Member since 21 February 1996 , and applies at least MFN treatment to all its 
trading partners. 
40. St. Kitts has not enacted an overall Urugua y Round Act into domestic law.  Private 
individuals can invoke WTO provisions before national courts only to the extent that the Agreements 
are incorporated into national legislation.  As at early 2007, St. Kitts and Ne vis had not completed its 
process of incorporation of the results of the Uruguay Round into domestic legislation. 
41. Under the GATS, St. Kitts and Nevis made spec ific commitments on tourism, recreational, 
communications, financial, and maritime transport ser vices.  It did not participate in the extended 
WTO negotiations on telecommunications or on financia l services.  St. Kitts and Nevis has made an 
initial offer in the new services negotia tions pursuant to the Doha mandate. 
42. St. Kitts and Nevis is the only OECS-WTO Memb er that has made no notifications to the 
WTO since 2001, other than those pursuant to Article XVI of the GATT 1994 and Article 25 of the SCM Agreement.  Prior to 2001, St. Kitts and Ne vis made notifications under the WTO Agreements 
on Agriculture, Anti-Dumping, Subsidies, Preshipment  Inspection, Safeguards, and Rules of Origin. 
43. St. Kitts and Nevis has supported a request by a number of small developing Members of the 
WTO for an extension until 2018 for the provision of export subsidies.
9 
44. St. Kitts and Nevis has not been a complainant or  a defendant in any case before the DSB.  It 
has been a third party in three cases, all referred to as EC- Export Subsidies on Sugar.10  In June 2006, 
                                                      
8 Government of St. Kitts and Nevis online informati on.  Viewed at:   http://www.skbfinancialservices. 
com/ recentdevelopments.php. 
9 WTO document G/SCM/W/535, 12 April 2006. 
10 WTO documents WT/DS265/28, WT/DS266/28, WT/DS283/9, 28 April 2005. WT/TPR/S/190/KNA Trade Policy Review 
Page 10 
 
 
Australia, Brazil, and Thailand informed the DSB th at they had reached an understanding with the 
European Communities on this dispute.11 
(ii) Preferential agreements and arrangements 
45. St. Kitts and Nevis has been a member of the Caribbean Community and Common Market 
(CARICOM) since 1974.  CARICOM has signed b ilateral trade agreements with Colombia, 
Costa Rica, Cuba, the Dominican Republic, and Venezu ela  St. Kitts and Nevis is a member of the 
Organization of Eastern Caribbean States, since it was created by the Treaty of Basseterre in 1981, and the Association of Caribbean States, and is a party to the ACP-EC Revised Cotonou Agreement. 
46. St. Kitts and Nevis' exports were granted preferential access to the EC market, under the 
ACP-EC Agreement.  Until 2001, this benefite d St. Kitts and Nevis' sugar exports to the 
United Kingdom but otherwise did not have a strong impact on exports.  As a result of changes to the 
EC pricing regime for sugar, wh ich was challenged in WTO, these arrangements have come to an end 
and St. Kitts and Nevis has had to completely abandon sugar production.  St. Kitts and Nevis is 
participating in negotiations with the EC as part  of CARIFORUM (a negotia ting partnership involving 
CARICOM and the Dominican Republic), with th e aim of finalizing an Economic Partnership 
Agreement (EPA) by 2007 (see Overview Report). 
47. A number of exports from St. Kitts and Nevis en joy preferential access to the United States 
under the U.S. Caribbean Basin Initiative (CBI).  In  2000, preferences were extended, but St. Kitts 
and Nevis did not sign the enhanced CBI on the basis that it did not consider the preferences attractive 
enough, and found the attached conditions  to be problematic.  St. Kitts  and Nevis' exports also enjoy 
preferential access to the Canadian  market through CARIBCAN.  Ho wever, exports to both Canada 
and the United States remain comp aratively low (Table AI.3). 
48. Products from St. Kitts and Nevis are eligible for the GSP schemes of Australia, Canada, the 
European Communities, Japan, New Zealand, Swit zerland, and the United States.  The range of 
products varies according to each country's scheme. 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures, documentation, and registration 
49. There have been no changes with regard to cust oms procedures since St. Kitts and Nevis' last 
Review.  The Customs (Control and Management) Act No. 4 of 1992 regulates import procedures.  
Imports must go through customs within five working days of arrival;  the usual time to clear customs 
is one or two days.  Importers are not required to  register, and it is not necessary to use a customs 
broker to conduct imports.  St. K itts and Nevis is not a member of the World Customs Organization. 
50. Five documents are required for all commercial im ports:  the CARISAD single declaration;  a 
commercial invoice;  the bill of lading;  a certif icate of insurance;  and a worksheet on the 
classification and value of the goods.  Additional docum entation may be required, e.g., a certificate of 
origin for preferential imports from CARICOM count ries or a phytosanitary certificate for veterinary 
and plant imports.  Entry of goods may be allowe d even if the relevant import documents are not 
ready, provided a deposit is made and the documents  are presented soon (generally within a week). 
                                                      
11 A summary of the evolution of the dispute is available at:  http://www.wto.org/english/ 
tratop_e/dispu_e/cases_e/ds283_e.htm. Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 11 
 
 
51. The Customs service classifies shipments into  low- and high-risk groups for inspection 
purposes.  Low-risk shipments are those undertaken by  importers with experience of the St. Kitts and 
Nevis procedures, and that arrive from countries th at are not considered to pose risks (e.g., with 
respect to illicit narcotics);  only about 20% of these shipments are subject to inspection.  The rate of 
inspection is much higher (around 95%) for shipment s involving new importers and/or countries that 
are deemed to pose higher risks. 
52. St. Kitts and Nevis has employed the Total Revenue Integrated Processing System (TRIPS) 
since February 2006; prior to which it used the AS YCUDA system.  The TRIPS system allows for the 
electronic filing of import documents, and th us constitutes a trade-facilitating measure. 
53. St. Kitts and Nevis does not have a pre-shipment inspection system. 
54. The authorities note that the Government has ta ken steps to reform the Customs Department, 
including programmes to train staff in modern t echniques of revenue management and collection.  
Under the Customs Reform Project, customs officers have received management training, and management procedures at the Customs Department have been upgraded.  According to the 
authorities, there has been a dramatic improvement in  collections.  The final phase of the project is the 
computerization of the entire Customs Department, including to process customs entries, provide 
management information, and allow businesses to  submit their entries in electronic format. 
(ii) Customs valuation 
55. There have been no changes in St. Kitts and Nevis' customs valuation regime since its last 
Review.  The Second Schedule of the Customs (Cont rol and Management) (Amendment) Act No. 4 of 
1992 governs customs valuation.  The legislati on is based on the GATT Valuation Code.  The 
customs value of imports must be the transaction value;   if this is not possible, or if the buyer and 
seller are related, the value must be based on th e transaction value of similar or identical goods 
between unrelated buyers and sellers in St. Kitts  and Nevis followed by the transaction value of 
similar imported goods as sold in St. Kitts and Nevi s, with deductions for customs duties and taxes, 
transportation and insurance costs, and a margin of profit.  If none of the previous methods can be 
used for the determination of value, the computed va lue, consisting of the sum of the cost of materials 
and inputs as well as commissions, brokerage and others, and a margin of profit, is to be used.  The 
authorities estimate that the transaction va lue is used for over 90% of imports. 
56. The Customs Act specifically outlaws the use of minimum customs values.  The Act also 
forbids using the selling price in St. Kitts and Nevi s of similar locally produced goods, the price of 
goods in the domestic market of the country of e xportation, and the price of goods for export in a 
country other than St. Kitts and Nevis, for valua tion purposes.  The prices of used vehicles imported 
from Japan are checked against Jap anese websites that provide price guidelines on such vehicles. 
57. The authorities indicated in the context of th is Review that questions of under-invoicing of 
imports sometimes arise.  When there is any suspic ion of this Customs officials may request proper 
invoicing from the importer. 
58. A Customs Appeal Commission, to deal with appeals regarding decisions on valuation, 
duties, and other customs issues, is in the process of  being established;  in the interim, appeals are 
made to Customs on a de facto basis.  If the appella nt is not satisfied with the decision, the case can be 
taken to a high court or to the Eastern Caribbean Court of Appeal. WT/TPR/S/190/KNA Trade Policy Review 
Page 12 
 
 
59. St. Kitts and Nevis has not responded to the WTO checklist of issues on customs valuation, 
nor has it notified its customs valuation regime.12  St. Kitts and Nevis did not invoke the special and 
differential treatment provisions in the Customs Valuation Agreement. 
(iii) Rules of origin 
60. St. Kitts and Nevis adopted, in 1999, the new rules of origin introduced by CARICOM in 
1998.  In accordance with these rules, duty-free treatme nt is accorded only to goods shipped between 
member States that satisfy the CARICOM origin rules.  The CARICOM Treaty contains a derogation facility to the application of Common Market Ru les of Origin for MDCs, known as the Safeguard 
Mechanism (see section (2)(vii)(b) below).  St. Kitts  and Nevis, like other CARICOM members, was 
expected to implement the rules of origin contai ned in Amended Schedule I of the revised Treaty of 
Chaguaramas, based on the 2007 HS from 1 January 2007.  This has not yet been done in any OECS 
country. 
61. St. Kitts and Nevis has not notified preferentia l or non-preferential rules of origin to the 
WTO.
13 
(iv) Tariffs and other charges on imports 
62. International trade taxes are an important s ource of fiscal revenue.  In addition to import 
tariffs, several levies and charges are applied to tr ade.  Taxes on international transactions raised 
EC$176.1 million in 2006, up fr om EC$169.5 million in 2005, accounting for 47.1% of the 
Government’s tax revenue, and equal to 13.7% of GDP.  The ch ief components of these international 
taxes were import duties (EC$49.4 million) and th e consumption tax on im ports (EC$84.1 million), 
which together provided 35.7% of government tax revenue.  The custom s service charge, which is set 
at 6% on the c.i.f. value of all imports, raised  another EC$34.1 million (Table III.1).  The overall 
incidence of taxes on international trade is e xpected to decline with new fiscal reforms. 
Table III.1 
Trade-related taxes, 2007-08 
 2007 (estimates) 
EC$'000 2008 (projections) 
EC$'000 2008 
% of total tax revenue 
International trade/transactions taxes  166,193  183,230  41.6 
Consumption tax 78,146 82,095 18.6 
Import duty 46,928 49,274 11.2 
Customs service charge 33,801 35,491 8.1 
Transaction-based tax 0 8,727 2.0 
Travel tax 3,283 3,447 0.8 
Environmental levy 2,732 2,869 0.7 
Excise duty on alcohol & tobacco 900 945 0.2 
Mercantile tax 327 343 0.1 
Export/excise duty 17 18 <0.1 
Parcel tax 17 18 <0.1 
 
Source : St. Kitts and Nevis Government  estimates for the year 2007. 
(a) MFN applied tariff structure 
63. St. Kitts and Nevis' 2007 applied tariff is b ased on Phase III of CARICOM Common External 
Tariff (CET), based on the Harmonized Commodity Description and Coding System 1996.  At the 
                                                      
12 WTO document G/VAL/W/155, 26 September 2006. 
13 WTO document G/RO/W/106, 29 September 2006. Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 13 
 
 
time of its last Review in 2001, St. Kitts and Nevi s applied Phase II of the CET.  St. Kitts and Nevis 
applies exceptions to the CET included in Lists of Exceptions A and C. 
64. St. Kitts and Nevis last notified its applied ta riff to the WTO in 2002.  It comprises 6,340 
tariff lines at the seven-digit level.  Rates range fro m 0 to 25% for industrial goods for which the CET 
is used;  an additional rate of 40% applies only to agricultural products subject to the CET.  For 
products included in List A of CET exceptions, ma inly agricultural products, packaging material, 
ceramics, washing machines and dryers, and sanitary  fixtures, which may be subject to a maximum 
customs duty of 40%, St. Kitts and Nevis applies ra tes generally below the CET.  List C contains 
mainly alcoholic beverages, tobacco, oil produc ts, jewellery, electrical appliances, and motor 
vehicles;  these products face rates above the CET rates. 
65. A customs service charge (CSC) of 6% is a pplied on all imports, (including from other OECS 
and CARICOM countries), up from 5% at the time of the previous Review.  The charge is applied on 
the c.i.f. value of the customs declaration.  Exemptions from the CSC are granted to imports by governmental institutions, enclave manufacturers, as well as for imports of foodstuffs under 30 kg.  A 
drawback is available for manufacturing enterprises that paid the CSC on imported inputs and 
subsequently export the processed goods. 
66. CET changes are made at CARICOM level, but u ltimate authority for tariff determination in 
St. Kitts and Nevis rests with the National Assemb ly, following a Cabinet initiative.  There are no 
seasonal tariffs.  The vast majority of rates are ad valorem :  22 tariff headings account for some 0.4% 
of all tariff lines, all agricultura l, are subject to specific rates.
14  No ad valorem  equivalents were 
provided for these specific tariffs.  Duty-free treatment is accorded to 23.5% of tariff lines;  this is 
somewhat lower than for other OECS countries.  Around two thirds of all tariff lines are subject to rates between 0 and 10%.  Some 25.4% of tariff lines are subject to international peaks, while 3.3% of 
lines are subject to domestic peak (Table III.2).  Tariff rate quotas are not used. 
Table III.2 
Structure of the tariff, 2006 
1. Total number of tariff lines 6,340 
2. Non- ad valorem  tariffs (% of all lines) 0.4 
3. Non- ad valorem  tariffs with no AVEs (% of all lines) 0.4 
4. Tariff quotas (% of all lines) 0.0 
5. Duty-free tariff lin es (% of all lines) 23.5 
6. Dutiable lines average rate (%) 13.5 
7. Domestic tariff "peaks" (% of all lines)a 3.3 
8. International tariff "peaks" (% of all tariff lines)b 25.4 
9. Bound tariff lines (% of all lines) 97.5 
 
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%. 
 
Note: Based on the 2002 tariff schedule.  
Source:  WTO Secretariat calculations, based on data provided by the authorities of St. Kitts and Nevis. 
67. The simple average MFN tariff in 2006 was 10. 3%, or 16.3% including the customs service 
charge.  The average MFN tariffs  for agricultural products (WTO definition) and non-agricultural 
products were, respectively, 14.6% and 9.4% (20. 6% and 15.4% including the CSC) (Table III.3).  
                                                      
14 These are:  refined sugar (HS 1701.999);  beer (HS 2203.001), stout (HS 2203.002), and other malt 
beverages (HS 2203.009);  undenatured (HS 2207.10) and denatured (HS 2207.20) alcohol;  spirits (nine HS 
lines, HS 2208.20–2208.60);  cigars and cigarettes (HS 2402.10, 2402.20, and 2402.90);  and other manufactured tobacco and tobacco substitutes (H S 2403.10, 2403.91, 2403.991, 2403.999). WT/TPR/S/190/KNA Trade Policy Review 
Page 14 
 
 
The highest average rates by WTO category are on beverages and spirits;  tobacco;  fish and fish 
products;  coffee, tea, sugar and cocoa;  and fruit and vegetables.  The highest tariff rate (70%) is 
applied only on arms and ammunition.  Motor vehicles,  which are included in List C, may be subject 
to tariffs as high as 45%.  The lower tariffs, by  WTO category, are applied on other agricultural 
products, non-electric machinery, chemicals, dair y products, metals and mi nerals, and petroleum. 
Table III.3 
Summary analysis of the MFN tariff, as applied in 2006 
 MFN 
    Coefficient of Final bound 
Description No. of Average Range Variation average 
 lines (%) (%) (CV) (%) 
Total 6,340 10.3 0 - 70 1.1 77.0 
HS 01-24 1,088 14.6 0 - 45 1.0 108.8 
HS 25-97 5,252 9.4 0 - 70 1.1 71.4 
By WTO category      
WTO Agriculture 1,023 14.2 0 - 45 1.0 108.1 
   Animals and products thereof 147 15.1 0 - 45 1.0 97.3 
   Dairy products 24 7.5 0 - 25 0.8 99.0 
   Coffee and tea, cocoa, sugar etc. 174 17.6 0 - 40 0.8 106.5 
   Cut flowers, plants 56 9.0 0 - 40 1.6 100.0 
   Fruit and vegetables 254 17.2 0 - 40 0.8 115.5 
   Grains 29 14.5 0 - 40 0.9 104.0 
   Oil seeds, fats and oils and their products 95 13.6 0 - 40 1.3 124.2 
   Beverages and spirits 78 21.6 5 - 40 0.5 117.4 
   Tobacco 10 19.0 5 - 25 0.5 100.0 
   Other agricultural products n.e.s. 156 4.3 0 - 40 1.7 98.2 
WTO Non-agriculture (incl. petroleum) 5,317 9.6 0 - 70 1.1 70.9 
   WTO Non-agriculture (excl. petroleum) 5,278 9.6 0 - 70 1.1 70.9 
     Fish and fishery products 155 10.9 0 - 40 1.1 100.0 
     Mineral products, precious stones and precious metals 415 8.6 0 - 25 1.1 70.0 
     Metals 714 6.6 0 - 25 1.0 70.0 
     Chemicals and photographic supplies 992 6.6 0 - 25 1.0 70.0 
     Leather, rubber, footwear and travel goods 168 10.5 0 - 25 1.0 70.0 
     Wood, pulp, paper and furniture 316 10.6 0 - 35 0.9 78.9 
     Textile and clot hing 949 12.5 0 - 30 0.8 71.1 
     Transport equipment 187 12.5 0 - 45 1.2 70.0 
     Non-electric machinery 593 5.9 0 - 30 1.5 70.1 
     Electric machinery 269 12.1 0 - 30 0.9 70.0 
     Non-agriculture articles n.e.s. 520 15.3 0 - 70 0.9 71.2 
   Petroleum 39 8.1 0 - 25 1.1 70.0 
By ISIC sectora      
Agriculture and fisheries 427 13.6 0 - 40 1.2 107.3 
Mining 116 2.6 0 - 25 2.8 70.0 
Manufacturing 5,796 10.2 0 - 70 1.0 75.2 
By HS section      
  01  Live animals & products 309 12.4 0 - 45 1.2 98.5 
  02  Vegetable products 401 13.5 0 - 40 1.1 112.4 
  03  Fats & oils 53 21.3 0 - 40 0.8 149.3 
  04  Prepared food etc. 325 17.0 0 - 40 0.7 103.6 
  05  Minerals 203 3.9 0 - 25 1.7 70.0 
  06  Chemical & products 930 6.4 0 - 25 1.0 71.6 
  07  Plastics & rubber 234 7.6 0 - 25 1.1 70.0 
  08  Hides & skins 84 9.3 0 - 25 1.2 77.5 
  09  Wood & articles 121 10.2 0 - 25 0.7 70.1 
  10  Pulp, paper etc. 170 8.3 0 - 25 1.1 70.0 
  11  Textile & articles 935 11.9 0 - 25 0.9 72.0 
  12  Footwear, headgear 66 18.9 0 - 25 0.5 70.0 
  13  Articles of stone 199 10.8 0 - 25 0.8 70.0 
Table III.3 (cont'd) Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 15 
 
 
 MFN 
    Coefficient of Final bound 
Description No. of Average Range Variation average 
 lines (%) (%) (CV) (%) 
  14  Precious stones, etc. 61 15.2 0 - 25 0.7 70.0 
  15  Base metals & products 708 7.3 0 - 25 1.0 70.0 
  16  Machinery 895 8.5 0 - 30 1.2 70.1 
  17  Transport equipment 197 12.2 0 - 45 1.3 70.0 
  18  Precision equipment 248 10.7 0 - 30 0.9 70.0 
  19  Arms and ammunition 20 43.0 0 - 70 0.7 88.6 
  20  Miscellaneous manufactures 173 18.7 0 - 35 0.6 86.5 
  21  Works of art, etc. 8 25.0 25 - 25 0.0 70.0 
By stage of processing      
First stage of processing 834 10.2 0 - 40 1.4 95.1 
Semi-processed products 1,827 4.7 0 - 40 0.9 71.6 
Fully-processed products 3,679 13.1 0 - 70 0.9 76.2 
 
a ISIC (Rev.2) classification, excluding electricity (1 line). 
 Note: The calculation of averages excl udes the 22 specific tariff rates.  (The  tariff was last changed in 2002). 
 
Source:  WTO Secretariat estimates, based on data provide d by the authorities of St. Kitts and Nevis. 
(b) Bound tariffs 
68. St. Kitts and Nevis bound all of its tariff lines in the Uruguay Round, except for fish products.  
Agricultural products were bound at a ceiling level of  100%, with immediate (1995) effect;  products 
not bound at 100% were bound at rates ranging be tween 10% and 250%, in some cases with an 
implementation period of ten years.  Tariffs on imports of non-agricultural items were bound at a 
ceiling rate of 70% with a number of exceptions, su ch as cement, petroleum products, some textiles, 
and industrial goods subject to import restric tions under Article 56 of the CARICOM Treaty 
(Article 164 of the revised Treaty), which were boun d at rates between 87% and 150%.  The average 
bound tariff is 77.0%, almost seven times the applie d rate;  the bound rates are 108.1% for agricultural 
products (WTO definition) and 70. 9% for non-agricultural goods. 
69. St. Kitts and Nevis is the only OECS country to have recorded other duties and charges 
applied on imports in its WTO tari ff schedule.  Other duties and charges were bound for all tariff lines 
at a general rate of 18% with a number of excepti ons subject to lower rates or to specific rates. 
(c) Tariff and tax concessions 
70. Tariffs for goods may be maintained at rate s below the CET and included in the List of 
Conditional Duty Exemptions to the CET, whic h states the purposes for which the goods may be 
admitted free of import duty or at a rate lower than  the CET.  St. Kitts and Nevis, as a less developed 
country within CARICOM, may import all inputs duty -free instead of at the CET rate of 5%.  The 
List of Items Ineligible for Duty Exemption incl udes goods that may not be exempted in part from 
tariffs or in whole, nor imported at a reduced rate  when imported for use in  an approved industry 
under some incentives programmes.  Goods on this  list are generally produced in the CARICOM 
region in quantities considered adequate to ju stify the application of tariff protection. 
71. With the exception of goods classified as ine ligible, the different incentives schemes put in 
place by St. Kitts and Nevis grant import duty concessi ons and exemptions for goods to be used in 
approved industries.  The Fiscal Incentives Act of  1974 provides import duty relief on raw materials 
and inputs, materials, tools, plant, machinery, and building materials.  The Hotels Aid Act, as 
amended by the Hotels Aid (Amendment) Act (1 998), provides for duty-free imports of building 
materials and articles of hotel equipment for the co nstruction or equipment of hotels.  Farmers may WT/TPR/S/190/KNA Trade Policy Review 
Page 16 
 
 
import duty-free vehicles and machinery to be used in agriculture;  imported and domestic animal and 
poultry feed,  plants, seeds and bulbs, machiner y for agricultural purposes, and fertilizers and 
herbicides are exempt from the consumption tax.  There are also duty concessions for imports of 
supplies and capital goods to be used by registered  fishermen.  Imports destined for government 
institutions are not subject to import duties. 
(d) Tariff preferences 
72. Duty-free access is granted by St. Kitts and Nevis to imports from other CARICOM 
countries, provided they meet the CARICOM rules of origin criteria. 
(v) Other levies and charges 
73. Imports as well as domestic products are subject  to a consumption tax, governed by the 
Consumption Tax (Amendment) Order, S.R.O: No. 4 of 2003.  The general rates are 22.5% for goods 
and 4%  for professional services;  a number of products are subject to higher ad valorem  rates.  For 
imports, the consumption tax is le vied upon importation and collected at the point of entry;  it is 
calculated on the c.i.f. value plus import duties.  For domestically produced goods the consumption tax is calculated on the ex-factory price.  A few produc ts are subject to specific consumption tax rates, 
i.e. tobacco, acetylene, and cement.  All agricultural products grown in St. Kitts and Nevis, as well as 
produce of CARICOM origin, are exempt from the c onsumption tax.  As part of its Uruguay Round 
Schedule of Tariff Concessions, St. Kitts and Nevis bound combined other duties and charges 
including the customs service charge, the consumption tax, and any other applicable tax, at a general 
rate of 18%. 
74. Under the Trade (Bottle and Can Deposit Levy ) Act No. 1 of 2002, St. Kitts and Nevis 
imposes a deposit levy of EC$0.30 per container of im ported beer, stout, malt, ale, and aerated drinks 
in non-returnable bottles.  The deposit levy is refunded on re-export of the bottles or if disposal 
arrangements acceptable to the relevant authorities are made within six months of payment of the 
deposit. 
75. An environmental levy is imposed on imports of second-hand cars under Environmental Levy 
(Used Motor Vehicles) (Amendment of Schedule) Or der No.12 of 2005.  Since 2005, it has been set 
at a rate of EC$3,500 for cars imported between two a nd four years after the date of manufacture;  and 
EC$5,000 for cars imported four years or more afte r the date of manufacture.  A gasoline levy was 
eliminated in December 2006. 
76. For reasons of public health, an excise duty at a rate of 15% was introduced in 2006 on 
alcoholic and tobacco products in 2006.  It is levied on the c.i.f. values of these goods plus any 
applicable import duties and customs service charge. 
(vi) Import prohibitions, restrictions, and licensing 
77. Import prohibitions and restrictions are in ge neral regulated by the Customs Control and 
Management (Amendment) Act No.7 of 2001 (Table III.4).  St. Kitts and Nevis also applies a number 
of prohibitions for health and safety reasons (sections (viii) and (ix)). 
78. St. Kitts and Nevis notified its import- licensing regime to the WTO in 1998.
15  It did not 
respond to the questionnaire on import licensing procedures. 
                                                      
15 WTO document G/LIC/N/1/KNA/1, 31 July 1998. Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 17 
 
 
Table III.4 
Import restrictions, 2006 
Prohibited items 
Base or counterfeit coin or currency notes from any country; co in or currency notes legally current in Saint Christopher and Ne vis or any 
money purporting to be such, not being of the established standard in weight and finene ss;  articles or food intended for human  
consumption declared by the competent public  health authority to be unfit for such pu rpose;  indecent or obscene prints, painti ngs,  
photographs, books, cards, lithographic or othe r engravings, phonograph reco rds, videos or any other indecent articles or matte r;  
matches that contain white or yellow phosphorus;  prepared opium a nd pipes or other utensils for use in connection with the smo king of 
opium or other narcotic drugs; preparations of opium or other narcotic drugs for smoki ng; any pistol or other apparatus in the form of a 
stylographic pen or pencil capable of firing any kind of shot or cartridge whatsoever or any cartridge containing tear gas;  fi ctitious 
stamps or any die, plate, instrument or materials capable of making any such stamps;  flick knives, gravity knives, black jack,  bludgeon, 
switch knives and blades, night sticks, ratche t knives and other similar kni ves with flying blades, dagger or any sword, knife or any 
instrument having a blade ending in a sharp point, which is not primarily designed for use in a profession, craft or business o r for 
domestic use;  shock batons and stun guns;  all publications, ar ticles or other matter associated with black magic, secret magi c, obeah, 
witchcraft or other magical arts and occultism; seditious pub lications, articles, prints, phonogr aph records or video;  goods, the 
importation of which is prohib ited by any other enactment 
Goods that require the written permi ssion of the Commissioner of Police  
Firearms and ammunition including any lethal barrelled weapon from which any shot, bulle t or other missile can be discharged or  
noxious fumes or liquid can be emitted or a ny component part of any such weapon or an y accessory to such weapon designed or ada pted 
to diminish the noise or other flash caused by firing such wea pon;  pepper spray and mace; explosives;  handcuffs of any type 
Goods that require a licence from the Minister of Communications  
Radio and television tran smitting equipment, including walkie talkies 
Goods that require a licence from the Chief Medical Officer  
Cannabis sativa, including parts of the plant, cannabis Indica, c horas, ganja or any preparation or mixture of cannabis, choras  or ganja; 
narcotic drugs and psychotropic s ubstances including controlled drugs 
Goods that require the approval of the Comptroller of Customs  
Any goods whatsoever that bear a design in imitation of any currenc y or bank notes or coin in common use in Saint Christopher a nd 
Nevis or elsewhere 
Goods that require the written authority of the Minister responsible for National Security  
Tear gas or any ingredient that may produce what is commonly know n as tear gas or tear smoke; laser pointers; any goods whatsoe ver 
that bear the coat of arms or  the flag of Saint Christopher and Nevis or a ny facsimile imitation or representation thereof 
Other restrictions 
All goods that if sold would be liable to forfeiture under the Merchandise Marks Act, Chapter 345, and all goods of foreign man ufacture 
bearing any name or trade mark or purporting to bear the name or  trade mark of any manufacturer, dealer or trader in Saint Chri stopher 
and Nevis, unless such trade name or trade mark is accompanied by a specific indication of the country in which the goods were made or 
produced;  rare or threatened species of animals or plants, (i ncluding whales, elepha nts, flamingoes, parrots, turtles, tortois es, black coral, 
tree ferns, and orchids), their products a nd derivatives, (including ivory necklaces, carvings and rings, fur coat of protected  species, 
turtle-shell combs, necklaces, bracelets and black coral jeweller y), whose international trade is regulated by the Convention o n 
International Trade in Endangered Species (CITES), unless such goods are accompanied by the appropriate perm its signed by the C ITES 
authorities in the country of exportation or  importation;  night scope binoculars and similar night vision instruments or appar atus of a 
kind generally used by the armed forces, paramilitary and other law enforcement agen cies, unless with the written permission of  the 
Minister responsible for National Security;  uniforms or clothing including camouflage clothing used by the St Kitts and Nevis Defence 
Force or the Royal St Kitts and Nevis Police Force or closely resembling their uniform or clot hing, unless with the written per mission of 
the Commissioner;  ozone depleting substances  to be restricted under the Montreal Prot ocol on Substances that Deplete the Ozone  Layer, 
1987 and specified under Annexes A to E, unless under licence from the Minister responsible for the Environment. 
 
Source : Information supplied by the authorities. 
79. The Statutory Rules and Orders, No. 14 of 1992 sets the rules for import licensing procedures 
and contains the list of products subject to licensi ng.  The authorities indicate that no legislative 
changes have been introduced since St. Kitts and Nevis' last Review in 2001.  The products range 
from vegetables, eggs, and meat, to motor vehicles a nd agricultural machinery.  Except for eggs and 
some agricultural products produced in commercia l quantities, licensing is automatic.  The Ministry 
of Foreign Affairs, International Trade, Industry,  Commerce and Consumer Affairs is in charge of 
granting import licences.  Licences are typically valid  for three months, and are not transferable.  
Applications are generally processed within 24 hour s.  The authorities noted in the context of this 
Review that some licences for imports of agricultura l products have been denied at times when local 
production is rising.  When licences are denied, the applicant is given the reasons for the denial. WT/TPR/S/190/KNA Trade Policy Review 
Page 18 
 
 
80. Under Article 56 of the CARICOM Treaty, the u se of quantitative restrictions on imports of 
certain products from other CARICOM countries was allowed until end 2005.16  It has been replaced 
by Article 164.  (Promotion of Industrial Developm ent) of the revised Treaty of Chaguaramas which 
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."  
St. Kitts and Nevis applied quantita tive restrictions on imports of aerated beverages, beer and pasta 
products.  The restrictions have since been tariffied.17 
81. Import restrictions in the form of quantitative lim its, other than those allowed by Article 56, 
are applied to some agricultural imports from non- CARICOM countres.  Eggs may be imported only 
by domestic egg producers whenever domestic produc tion is insufficient.  Also, imports of a number 
of vegetables (cabbages, carrots, onions, sweet peppe rs, tomatoes, and white potatoes) are subject to 
seasonal import restrictions.  Licences are granted to import these items from outside of CARICOM only when domestic production cannot meet demand. 
82. Permits are required for imports of any live an imals, poultry or birds or carcasses and parts 
thereof, plants, planting materials, and pesticides (section 2(ix)).  The importation of arms and 
ammunition requires a licence from the Commissioner of Police under the Firearms Act. No. 23 of 
1967. 
(vii) Contingency measures 
(a) Anti-dumping and countervailing measures 
83. St. Kitts and Nevis has not notified any anti-dum ping or countervailing duty legislation to the 
WTO.  No legislation on these issues was made ava ilable to the WTO Secretariat for this Review.  
The authorities believe that there are some dormant provisions dating from the colonial period. 
84. St. Kitts and Nevis notified once, in 1998, th at it had not taken anti-dumping measures to the 
Committee on Anti-Dumping.
18  No further notifications have been made.  The authorities indicate 
that no anti-dumping or countervailing duty measures have ever been used in St. Kitts and Nevis. 
(b) Safeguards 
85. St. Kitts and Nevis did not make use of the safeguard provisions included in either the 
Uruguay Round Agreement on Agriculture or the Agreement on Textiles and Clothing. 
86. St. Kitts and Nevis does not have any national legislation with respect to safeguards.  
However, the use of safeguards is permitted by CARICOM rules.  St. Kitts and Nevis, as a 
CARICOM less developed country, may invoke the speci al provisions in Chapter 7 of the Revised 
Treaty of Chaguaramas, in particular Article 150 (S afeguard Measures) when necessary.  This Article 
entitles a country classified as less developed to limit imports of goods from other CARICOM 
members, for up to three years and to take such  other measures as COTED may authorize.  Members 
may not apply safeguard measures against the pr oducts of a disadvantaged country where such 
products do not exceed 20% of the market of the importing member. 
                                                      
16 The original date was 2004, extended in 2001 by the COTED to 2005. 
17 The eligible products are:  aerated beverages (2202.101), waters; other waters (201.10), beer (22.03), 
malt (2202.90.20), candles/paraffin wax (34.06), curry po wder (0910.50), pasta (19.02), animal feed (23.09), 
wooden furniture (9401.60 /9403.60), solar water heaters (8419.19), and industrial gases/oxygen, carbon 
dioxide, acetylene (2804. 40, 2811.21,  2901.292). 
18 WTO document G/ADP/N/41/Add.1, 17 July 1998. Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 19 
 
 
87. St. Kitts and Nevis has not implemented safegua rd measures during the period under review. 
(viii) Technical regulations and standards 
88. St. Kitts and Nevis made no notifications to  the TBT Committee during the 2001-06 period. 
89. Technical regulations and standards are deve loped by the Saint Christopher and Nevis 
National Bureau of Standards, which was establishe d by the National Bureau of Standards Act No. 7 
of 1999, and started operating in 2000.  The National Bureau of Standards is under the umbrella of the 
Ministry of Foreign Affairs, International Trade,  Industry, Commerce and Consumer Affairs and is 
managed by the Standards Council, composed of re presentatives of the public and private sectors.  
The Bureau's statutory function is to prepare, prom ote, and generally adopt standards.  The Bureau 
also has the mandate to maintain testing facilities, to  carry out testing, calibration, and certification, 
and to publish standards marks. 
90. The adoption/adaptation of technical regulations  and standards is prepared in technical 
committees in the Bureau, and must be approved by the Standards Council, which is in charge of 
declaring and publishing them.  The Bureau is also  in charge of making regulations on labelling, on 
the sale, import or export of goods for which a ma ndatory standard specification has been declared, 
and for granting licences to use a standard mark.  
91. The Standards Council may recommend that a standard becomes mandatory.  The 
recommendation is examined by the Ministry of Fo reign Affairs, International Trade, Industry, 
Commerce and Consumer Affairs, which may declar e the standard mandatory, by Order, to be 
implemented through a technical regulation.  St andards that may be declared mandatory are 
CARICOM standards adopted by the Bureau as nationa l standards, or standards that are primarily 
intended to protect health and safety, ensure  quality in goods for export, prevent fraud from 
misleading advertising, give information to the consumer, and ensure quality in cases of restrained 
supply.  Non-conformity with technical regulations (mandatory standards) is punishable by a fine of 
up to EC$5,000, or up to two years imprisonment.  Conformity may be verified at the border in the 
case of imports, and through internal checks in the case of domestic products. 
92. No information was made available to the Secret ariat with respect to the number of technical 
regulations adopted during 2001 -06. 
(ix) Sanitary and phytosanitary measures 
93. The authorities indicated in the context of this Review that St. Kitts and Nevis has very few 
resources in this area, and is in need of techni cal assistance.  The country lacks the infrastructure 
necessary to conduct testing of plants and animals,  apart from inspection of imports and examination 
of any documentation issued  in the exporting country. 
94. St. Kitts and Nevis maintains a number of sanitary and phytosanitary measures.  The 
authorities indicate that St. Kitts and Nevis main tains inventories of SPS measures in force, but 
information was not available on the number of measures introduced since 2001. 
95. Phytosanitary conditions for imports of plants  are regulated by the Plant Protection Act, 
Cap 97 of the Laws of St. Kitts and Nevis.  The Act mandates that all plants, plant products, plant 
pests, live beneficial organisms, and soils imported into St. Kitts and Nevis must be accompanied by a 
phytosanitary certificate issued by the appropriate agricultural authority of the exporting country.  Plants, planting materials, plant products, and soil al so require an import licence from the Minister of 
Agriculture.  The importation of any plant, plant pa rt, plant product, or fruit and vegetables from any WT/TPR/S/190/KNA Trade Policy Review 
Page 20 
 
 
country infested with the pink/hibiscus mealy bug is prohibited unless certain conditions are met.  
Imports of pesticides require a licence from the Pesticide Board, under the Drugs (Prevention and 
Misuse) Act No. 37 of 1978. 
96. Imports of live animals, bi rds, poultry, and carcasses require import licences and sanitary 
certificates, under the Animal (Disease and Importa tion) Act, Cap 107 of the Laws of St. Kitts and 
Nevis.  In order to obtain an import licen ce, an importation permit is required from the 
Chief Veterinary Officer. 
97. Permanent SPS measures may require the enactment of legislation by Parliament, but the 
Minister in charge of Agriculture also has the au thority to impose measures on an emergency basis.  
The authorities stated in the context of this Revi ew that the adoption of measures is based upon a 
review of the risks involved, both in scientific and economic terms, of not taking action.  Whether a 
measure is imposed on an emerge ncy or a non-emergency basis, no tification is given to national 
stakeholders and trading partners only afte r the fact.  Measures are published in the Gazette , but there 
is no provision for the solicitation or consideration of comments prior to their entry into force.  
Measures are also publicized through new media, posti ngs at the air- and seaports, and in meetings of 
the Caribbean Veterinary Association.  St. Kitts  and Nevis has made no notifications under the SPS 
Agreement, apart from listing the Department of Agriculture as th e enquiry point for SPS measures.  
The authorities indicate that there are no plans at present to change the procedures for adopting or 
publicizing SPS measures. 
98. St. Kitts and Nevis does not have the technical  means necessary to conduct laboratory testing 
of plants or animals.  Imports of animals mu st be accompanied by documents from the exporting 
country regarding the veterinary testing of the animal s:  the authorities state th at such test results are 
accepted from all countries.  The majority of animal im ports are also subject to quarantine, usually for 
at least one month;  this requirement does not apply to animals imported from other Caribbean 
countries, which supply about one tenth of these impor ts.  The large majority of animal imports are 
from the United States and Canada. 
99. St. Kitts and Nevis maintains no restrictions on the import and sale of genetically modified 
organisms or animals fed hormones (or their products). 
100. St. Kitts and Nevis is a contracting party to  the International Plant Protection Convention 
(IPPC), but is not a member of the Codex Alimen tarius Commission or the World Organisation for 
Animal Health (OIE). 
(2) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Documentation, export taxes, and restrictions 
101. Exporters are not required to register.  Up to four documents may be required for exportation, 
depending on the destination;  an export declaration (s hipping bill);  invoice;  certificate of origin (for 
preferential trade);  and a phytosanitary certificat e (when required).  Export licences are also required 
for vegetables, monkeys, and several types of seafood (conchs, crustaceans, fish, and lobsters). 
102. Export taxes are applied on some live animals, lobsters, and cotton, in accordance with the 
Export Duty Ordinance (Amendment) Act No. 4 of  1970.  The rates remain unchanged from those 
listed in the previous Review.  Revenue from this ta x represents less than 2% of tax revenue.  Exports 
are exempt from internal taxes. 
103. There is no export promotion agency in St. Kitts and Nevis. Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 21 
 
 
104. Export restrictions and licensing are governed by  the External Trade Order No. 32 of 1958.  
These restrictions are generally for safety and hea lth purposes.  Export licences are administered by 
the Supply Office of the Ministry of Foreign Affa irs, International Trade,  Industry, Commerce and 
Consumer Affairs.  The exportation of wild birds is forbidden in accordance with the CITES.  Exports 
of narcotic drugs and psychotropic substances, as we ll as goods bearing the coat of arms or flag of 
St. Kitts and Nevis are restricted. 
(ii) Export subsidies, financing, support, and promotion 
105. St. Kitts and Nevis has not notified to the WTO Committee on Agriculture whether it 
provides export subsidies to agricultural products. 
106. St. Kitts and Nevis has notified the Fiscal In centives Act No. 17 of 1974 to the Committee on 
Subsidies and Countervailing Measures (SCM), as provi ding export subsidies, requesting a extension 
as per Article 27(4) of the SCM Agreement.19  In a decision on 27 October 2006, the SCM Committee 
agreed to continue until 31 December 2007 the exte nsion and continuation of the transition period, 
under Article 27.2(b) and 27(4) of the SCM Agreemen t, 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 2001.20  In another communication to the SCM 
Committee, St. Kitts and Nevis noted that the Gove rnment was reviewing its fiscal structure with a 
view to adopting new systems for more efficiency and to make its systems more WTO compatible.21  
In July 2007, the General Council decided to ex tend the date for the dismantlement of export 
subsidies to end 2015.  Members benefiting from th e extension must take, from 1 January 2008, the 
necessary internal steps with a vi ew to eliminating export subsidi es under the programme before the 
end of the final two-year phase-out period.  In  addition, from 1 January 2008 and no later than 
31 December 2009, the Member must notify each bene ficiary under the programme indicating that no 
export subsidies within the meaning of SCM Article  3.1(a) will be granted or maintained beyond the 
end of calendar year 2015.22 
107. Some benefits granted under incentive schemes  are contingent upon exportation, especially 
those available after the end of the 15-year tax holiday  granted to some enterprises.  In this respect, 
concessions in the form of tax credits are grante d under the Fiscal Incentives Act, which provides for 
income tax relief on the profits accruing from a compa ny’s exports.  This benefit applies only to an 
enterprise that is exporting, and may not be grante d while it is enjoying a tax holiday and duty-free 
imports of raw materials and capital goods.  The maximum tax holiday under the Fiscal Incentives 
Act, 15 years, is granted to enclave enterpri ses exporting their entire production.  The authorities 
could not provide estimates of revenue foregone under the Fiscal Incentives Act for the period 
2001-06. 
108. At present, St. Kitts and Nevis does not have fr ee zones or legislation that would provide for 
their establishment.  The 2007 Budget Address announ ced that the Government was engaging in 
consultations on the duty-free and mercantile regime with a view to introducing an improved system.  
It was announced that Cabinet had approved a cha nge in the duty-free regime to become effective 
                                                      
19 WTO documents G/SCM/N/74/K NA, 17 December 2001;  G/SC M/N/71/KNA, 4 March 2002;  
G/SCM/N/95/KNA, G/SCM/N/99/KNA, 3 July 2 003;  G/SCM/N/114/KNA, 28 July 2004;  
G/SCM/N/123/KNA, G/SCM/N/128/KNA, 25 July 2005;  SCM/N/128/KNA, 26 July 2005;  and 
G/SCM/N/146/KNA, 13 July 2006. 
20 WTO document G/SCM/71/Add.4, 13 November 2006. 
21 WTO document G/SCM/Q2/KNA/2, 26 October 2005. 
22 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. WT/TPR/S/190/KNA Trade Policy Review 
Page 22 
 
 
1 January 2007.  The changes introduced imply a phasi ng out of the current system and the creation of 
two types of duty free licences.  The new system c onsists of approved duty -free zones, an expanded 
and improved list of goods, and new licence fees. 
109. St. Kitts and Nevis exporters may make use of the insurance and export credit guarantee 
facilities provided by the Eastern Caribbean Cent ral Bank (ECCB), covering political and commercial 
risks.  Exporters may also receive export prom otion support from the OECS Export Development 
Unit (EDU). 
(3) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Legal framework for business and taxation 
110. The incorporation and registration of companies in the federation differs somewhat on its two 
constituent islands.  In St. Kitts the process is regul ated by the Companies Act No. 22 of 1996.  The 
incorporation of companies in Nevis is regulated by the Nevis Island Business Corporation Ordinance 
No. 3 of 1984.  Companies must register in the Companies Registry.  There are no nationality 
restrictions for directors in a company, and in gene ral, national treatment is applied.  All registered 
companies must have a registered office in  the Federation of St. Kitts and Nevis. 
111. The Federation of St. Kitts a nd Nevis is party to double taxation treaties with Denmark, 
Norway, Sweden, the United Kingdom, and the United St ates (limited to social security benefits).  
There are no mutual legal assistance treaties in effect. 
112. There is a social services levy of 8%, half of which is paid by the employer.  Corporate tax is 
35% of net profits for ordinary (not exempt) compan ies;  there is no personal income tax.  Corporate 
tax does not apply to trusts, limite d partnerships, and exempt companies or to enterprises that have 
been granted a tax concession.  There is a capital gains tax of 20% on profits  or gains derived from a 
transaction relating to assets located in St. Kitts and Nevi s that are disposed of within one year of their 
acquisition.  A withholding tax of 10% is applie d on remittances of certain categories of income 
abroad.  These taxes are not applied to trusts, limit ed partnerships or exempt companies.  A tax on 
land located in the Federation is charged at various rates, depending on the size  and nature of the land 
concerned. 
113. The operations of offshore (exempt) companies are also regulated by the Companies Act and 
the Nevis Island Business Corporation Ordinance.  Exempt companies pay no income, capital gains, 
withholding, or stamp taxes for operations conducted outside the Federation of St. Kitts and Nevis.  
Offshore companies may also be registered as exempt limited partnerships under the Limited 
Partnership Act No. 24 of 1996, or as offshore trusts  under the Trust Act No. 23 of 1996 or the Nevis 
International Exempt Trust Ordinance.  Trusts are exempt from the same taxes as other offshore 
companies, and their beneficiaries do not lose their tax exemption for operations in St. Kitts and Nevis 
with respect to owning or leasing property, bankin g, or signing employment contracts.  Offshore 
companies may open bank accounts onshore and may hold shares in onshore or offshore companies 
incorporated in St. Kitts and Nevis. 
114. St. Kitts and Nevis is among the 41 countries a nd other jurisdictions that the OECD identified 
in 2000 countries as tax havens.  St. Kitts and Nevis is also among the 33 countries and other 
jurisdictions that have signed “Commitment Le tters” with the OECD on transparency and the 
exchange of information, and were thus remove d from the “uncooperative” list.  In a 5 March 2002 
letter to the OECD, St. Kitts and Nevis committed to transparency measures, and to share information 
in criminal tax matters by January 2004, and in civil tax matters by January 2006. Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 23 
 
 
(ii) Incentives and assistance 
115. St. Kitts and Nevis employs incentives schemes in order to attract investment, encourage new 
employment opportunities, and promote diversificat ion of the economy.  The Ministry of Foreign 
Affairs, International Trade, Industry, Commerce and Consumer Affairs is in charge of managing 
these schemes.  The incentives available are genera lly holidays on income tax and profits, and import 
duty exemptions.  Most concessions relate to the consumption tax, import duties, and customs service 
charge;  the authorities could not provide informa tion on the total value of concessions granted during 
the period 2001-06. 
116. St. Kitts and Nevis has notified to the Committee on Subsidies and Countervailing Measures 
the Fiscal Incentives Act No. 17 of 1974, under which a tax holiday of up to 15 years may be granted 
for the manufacture of approved products by approved enterprises.23  The duration of these 
concessions is in accordance with the local value adde d generated.  In this respect, the Act classifies 
enterprises in four categories:  (i) Group 1 enterprise s, where local value is 50% or more of sales, may 
enjoy a tax holiday of up to 15 years;  (ii) Group 2 enterprises, with local value of 25%-50% of sales, up to 12 years;  (iii) Group 3 enterprises, local valu e of 10%-25% of sales, up to 10 years;  and (iv) 
enclave enterprises, where production is exclusivel y for export, may enjoy a tax holiday of up to 
15 years. 
117. At the end of the tax holiday period, the Act provides companies with a further tax incentive 
based on the share of export profits in their total pr ofits.  The income tax rebate is:  25% when export 
profits are between 10% and 20% of total profits ;  35% between 21% and 40%;  45% between 41% 
and 60%; and 50% when export profits  exceed 60% of total profits.  In addition, companies enjoying 
tax holidays under the Fiscal Incentives Act are allo wed duty-free imports of machinery, equipment, 
spare parts, building materials, raw and packaging ma terials, and others, as appropriate, to be used in 
eligible enterprises. 
118. There are sector-specific incentives for tourism,  as included in the Income Tax Act No. 17 of 
1966;  and the Hotels Aid (Amendment) Act (1998);  (Chapter IV(3)(vi)).  Tax waivers are also 
granted on a case-by-case basis to foreign investors for the construction of infrastructure, with 
preference given to the construction of hotels, casinos, and villas.  These incentives are decided by 
Cabinet;  they do not require approval by the National Assembly. 
119. Enterprises may receive concessionary credits funded or guaranteed by the Caribbean 
Development Bank (CDB) for projects of between US$750,000 and US$5 million.  Loans from 
ordinary capital resources are at an annual rate of  6% (public sector) or 8% (private sector) per year, 
with a repayment period of up to 22 years.  Loan s from special fund resources are granted to St. Kitts 
and Nevis (a Group 3 country) at an annual interest rate of 2.5%, with  a repayment period of 30 years, 
including a grace period of 10 years.
24 
120. The Development Bank of St. Kitts and Nevis provides credit for agriculture, education, 
industry, and mortgage financing.  In 20 05, the Bank approved 1,848 loans amounting to 
EC$67.5 million. 
121. St. Kitts and Nevis plans to establish an Invest ment Promotion Agency (IPA), to act as a one-
stop shop for local and foreign investors.  It will engage in small and medium-sized business 
development, actively encourage foreign investment  and domestic enterprise creation, provide support 
                                                      
23 Most recently, throug h WTO document G/ SCM/N/146/KNA, 13 July 2006. 
24 Caribbean Development Bank online information.  Viewed at:  http://w ww.caribank.org/CDBWeb 
Pages.nsf/Basicinfo/$File/Basicinformation1.pdf?OpenElement. WT/TPR/S/190/KNA Trade Policy Review 
Page 24 
 
 
services to businesses, as well as business advocacy aime d at initiating policy and legislative changes 
to improve the investment climate. 
(iii) Competition policy and regulatory issues 
(a) Competition policy 
122. St. Kitts and Nevis does not have a dedicated competition law, but the Consumer Protection 
Act No. 9 of 2003 includes several elements of such  law.  Moreover, the government’s legislative 
work plan for 2007 contemplates the drafting of additiona l legislation in this field.  St. Kitts and Nevis 
has signed Chapter VIII of the revised CARICOM Treaty, which deals with competition policy and provides for the enactment and harmonization of legi slation in CARICOM member States.  A regional 
competition policy will be implemented.  Draft mode l legislation has been prepared by CARICOM. 
(b) Price controls 
123. The Price Control Order of 1999, Statutory Rules and Orders No. 15 of 1999 fix maximum 
wholesale and retail prices for a large number of goods.  While the list of items that are de jure subject 
to such controls is relatively long, government offi cials indicate that the cont rols are exercised for a 
more limited range of essential products.  These incl ude cement, milk, and cooking gas.  Prices for 
these goods are periodically updated. Maximum wholesale prices are the same throughout the 
Federation, but maximum retail prices are fixed for B asseterre, the capital, and for "Special Districts", 
which encompass the island of Nevis, and areas of St. Kitts outside the boundaries of the town of 
Basseterre.  Prices are fixed and controlled by the Ministry of Housing, Agriculture, Fisheries and 
Consumer Affairs. 
124. In December, 2006 the Government accepte d a recommendation from the ECCB Monetary 
Council to adopt the international best practice fo r implementing the “full pass through” system in 
respect of the price of unleaded fuel.  This polic y ensures that the prices consumers pay at the pump 
reflect international oil price movements.  The au thorities nevertheless note that in introducing this 
measure they have sought to mitigate the potential a dverse effects on motorists, in part by imposing a 
maximum profit margin for dealers and retailers. 
125. In the 2007 Budget Address, the Government stated  the need to monitor consumer prices and 
to intervene in all relevant ma rkets where necessary to protect the population, and that during the 
upcoming year Government would tighten up the pri ce-control regime.  The declared policy is to 
restrict intervention to goods and services that are pa rticularly influential on the cost of living and on 
the quality of life of lower-income families. 
(c) State-owned enterprises and privatization 
126. St. Kitts and Nevis has not notified any state-trading enterprises to the WTO. 
127. The Supply Office of the Ministry of Foreig n Affairs, International Trade, Industry, 
Commerce and Consumer Affairs has an import monopoly on wheat flour in bulk (packages bigger than 5lbs), rice in bulk (packages bigger than 10lbs), and evaporated milk.  The monopoly does not 
extend to imports in retail-size packages. 
128. Until its demise in 2005, the St. Kitts Sugar Ma nufacturing Corporation (SSMC) was the sole 
de jure  producer and exporter of sugar.  The Cent ral Marketing Corporation (CEMACO) acts as 
marketing agent for non-sugar agricultural produce,  and competes with the private sector;  its 
monopoly rights on the non-sugar sector have been abolished. The authorities note that CEMACO Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 25 
 
 
acts practically as a retailer competing with privat e retailers.  Farmers are not obliged to sell their 
product to CEMACO, and CEMACO does not offer pref erential prices, nor is it obliged to purchase 
farmers’ produce if it considers that the purchase  will not enhance its profitability.  However, 
CEMACO does act as an outlet for excess produce;  buy ing farmers' produce generally at fixed prices.  
Consequently, CEMACO functions in practice as  a price stabilizer, absorbing excess supply and 
preventing prices from falling.  It does not curren tly provide farmers with agricultural extension 
services;  the authorities note that they intend to  remedy this, and expect to transform non-sugar 
agriculture into a commercially oriented sector. 
129. The three other public enterprises, the Air and Seaport Authority, th e Development Bank of 
St. Kitts and Nevis, and the Frigat e Bay Development Corporation, do not engage in trading activities.  
There are no plans to privatize these institutions. 
(iv) Government procurement 
130. Public finance figures indicate that public sect or current expenditure on goods and services 
totalled EC$115.1 million, in 2005 some 9.7% of GDP, while capital expenditure totalled 
EC$75.6 million or some 6.4% of GDP.  In the context of this Review, officials indicated that the 
higher level of government procurement vis a vis  other OECS countries may be accounted for by the 
greater extent of free education that is provided in St. Kitts and Nevis. 
131. St. Kitts and Nevis is not a party to th e WTO Plurilateral Agreement on Government 
Procurement.  The authorities note that they do not in tend to join the GPA in the near future.  In the 
context of the previous review, the authorities stated that World Bank tendering procedures were 
generally followed, with different set-ups for different kinds of te ndering.  The main exceptions are 
projects financed by the Caribbean Development Ba nk (CDB), which follow CDB procurement rules. 
132. In an attempt to begin centralizing the procur ement process, a Central Purchasing Unit (CPU), 
was created under the Ministry of Finance in 2000 .  The CPU procures stationary, furniture, and 
equipment for all sectors of government;  proc urement of small amounts of other items is 
decentralized.  For the procurement of supplies, local purchase orders are used in many cases and 
procurement is at ministry level;  quotations from th ree different local suppliers are obtained, and the 
supplier is chosen on a price-competitive basis (t he bid with the lowest price is selected). 
133. Tendering for small local public works projects may be done at a local and regional level 
only.  Procurement for large projects for government al agencies is centralized, and tenders must be 
submitted to the Government's Tenders Boar d, which makes its decision based on price 
considerations.  Tender notices are published in the Government Gazette . 
134. No information was available with respect to the procurement or selection processes, nor on 
the legal statutes that govern government procurem ent in St. Kitts and Nevis.  No documentary 
information was available on issues such as tende ring modalities, principles guiding the selection 
among bids, typical periods involved in the procurement process, pub lication and other transparency 
requirements, or appeal procedures. 
135. Imports for government consumption are not subject to customs duties or consumption tax, 
but they are subject to the customs service charge. 
(v) Intellectual property rights 
136. Several changes have been made to the domes tic legal regime during the review period.  
Legislation on trade marks, patents, and copyright was updated in 2000, when three Acts dealing with WT/TPR/S/190/KNA Trade Policy Review 
Page 26 
 
 
these issues were passed by Parliament;  these laws  entered into force in 2002.  In March 2007, 
Parliament approved the Geographical Indications Ac t No. 6 of 2007.  In the 2007 legislative session, 
Parliament was also expected to take up bills c oncerning protection of layout designs of integrated 
circuits and new plant varieties.  Internal c onsultations were still under way as of May 2007 on 
projects for the protection of industrial designs, utility models, and undisclosed information. 
137. As at March 2007, St. Kitts and Nevis had not  notified its IPR legislation to the TRIPS 
Council.25  Neither has St. Kitts and Nevis notified its IPR contact point.  St. Kitts and Nevis is a 
member of the World Intellectual Property Organization (WIPO) and a signatory to various intellectual property conventions (Table III.5). 
Table III.5 
Membership in international instrume nts on intellectual property rights, 2006  
Convention/Agreement Accession 
The Convention Establishing th e World Intellectual Property Organization  (1970) 9 April 1995 
The Paris Convention for the Protection of Industr ial Property, Stockholm Text (1883) 9 April 1995  
The Berne Convention for the Protection of Literary and Artistic Works, Paris Text (1886) 9 April 1995  
Patent Cooperation Treaty (1970) 27 October 2005 
Nice Agreement Concerning the International Classificati on of Goods and Services for the Purposes of the 
Registration of Marks (1957) 27 October 2005 
 
Source : World Intellectual Pr operty Organization onlin e information.  Viewed at:  www.wipo.int. 
138. The administration of intellectual property laws in St. Kitts and Nevis is under the 
responsibility of the Attorney General.  The registra tion of patents, trade marks, and service marks is 
administered by the High Court Registry.  The 2000 Act created an Intellectual Property Office 
responsible for the administration of all laws relati ng to intellectual property, which began functioning 
in 2004. 
(a) Trade marks 
139. The Marks, Collective Marks and Trade Names Ac t No. 10 of 2000, entered into force in 2002 
via Appointed Day Order No. 22 of 2002.  The exclusive right to a trade mark is acquired through registration in the Register of Marks.  The Act extends  protection to all marks, that is all visible signs 
capable of distinguishing goods (trade marks) or ser vices (service marks).  It extends protection to 
collective marks and trade names, which were not protected under the previous Act.  The term of 
protection is ten years, renewable for consecutive pe riods of ten years each.  The Act provides for the 
right of priority of an earlier national or regional application filed by the applicant in any WTO Member or State party to the Paris Convention, wh ich was not the case under the previous legislation.  
The 2000 Act also contains provisions on licences. 
(b) Patents 
140. The Patents Act No. 9 of 2000 repealed the Pate nts Act, Cap 189, and the Registration of 
United Kingdom Patents Act, Cap 190 of the Laws of St. Kitts and Nevis.  The new law entered into 
force in 2002 via Appointed Day Order No. 20 of 2002.  Under the new Patents Act, patent protection 
is for 20 years up from a maximum of 14 years or the period of the foreign grant in the case of re-
registrations under the previous Act.  The new legi slation limits the scope of patentability to new 
inventions involving an inventive step and capable of  industrial application;  previously, the only legal 
requirement was novelty, and nothing was specif ically excluded from patent protection. 
                                                     
 
25 WTO document IP/C/M/53, 22 March 2007. Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 27 
 
 
141. The 2000 Act contains provisions to grant the right of priority to WTO Members and parties 
to the Paris Convention, and provisions on compul sory licensing in cases of public interest, in 
particular, national security, health or the devel opment of vital sectors for the economy, or if the 
exploitation of the patent is deemed to be anti- competitive by the Government, or there has been non-
use of a patent. 
(c) Copyright 
142. St. Kitts and Nevis passed new copyright legi slation in 2000, which repealed the Copyright 
Act, Chapter 366 of 1919, as amended in 1956.  The Copyright Act No. 8 of 2000, entered into force in 2002 via Appointed Day Order No. 21 of 2002.  It extends copyright protection for life plus 50 years 
for literary, dramatic, musical, and artistic works, to 50 years for sound recordings, films, broadcasts, 
and cable programmes, and 25 years from the end of the calendar year in which the edition was first published for typographical arra ngements of published editions. 
143. The Act introduced copyright protection in audio-visual production made by foreign 
performers and foreign producers, as well as neighbour ing rights in a broadcast made by a foreign 
broadcasting organization.  Protection was broadene d to include, within the meaning of literary 
works, computer programs and tables and compilati ons.  The new legislation introduced provisions 
with respect to copyright licensi ng.  The Copyright Act of 2000 also extends protection of moral 
rights to producers of phonograms and to perform ers.  Copyright owned by international 
organizations is protected for 50 years from the date of creation of the work. 
(d) Enforcement of intellectual property rights 
144. St. Kitts and Nevis has not submitted to the WTO the Checklist of Issues on Enforcement of 
intellectual property rights. 
145. Infringement of the right to a mark may lead  to a High Court injunction;  an award of 
damages;  an order to seize, forfeit or destroy any infringing product or article;  or to other remedies 
as decided by the High Court.  The High Court must also decide on infringement patents and copyright, based on the existing legislation.  With  the entry into force of the new trade marks 
legislation in 2002, Customs is now authorized to  seize imports to prevent goods infringing marks 
from entering the country.  Forging a mark or a collective mark, or importing products containing a 
forged mark or infringing the right to a mark is liable to a fine of not less than EC$15,000 but not 
more than EC$40,000, or to imprisonment of 5 to 12 years. 
146. Under the 2000 Patents Act, a plaintiff in an in fringement case is entitled to relief by the way 
of an injunction to restrain the defendant from cau sing the infringement;  an order to deliver up or 
destroy the infringing product (this could lead to seizure of imports);  damages;  an account of the profits derived from the infringement by the defendan t;  or any other relief mandated by the Court. 
147. The new Copyright Act introduced provisions on civil and criminal proceedings for copyright 
infringement through the sale, hire or importati on of goods.  Remedies for infringement of economic 
rights include seizure of infringing copies and adjudication of damages;  infringement of copyright is 
punishable by a fine of up to EC$250,000, up to five-years imprisonment, or both. WT/TPR/S/190/KNA Trade Policy Review 
Page 28 
 
 
IV. TRADE POLICIES BY SECTOR 
(1) AGRICULTURE  
148. The contribution of agriculture to Gross Domes tic Product in current prices declined to just 
3% between 2002 and 2005, due to lower production of  sugar cane and of other crops.  The share of 
agriculture is expected to have  declined even further in 2006 and 2007 as sugar production was halted 
at the end of July 2005.  The contribution of sugar cane to GDP was just 0.5% in 2005.  Production was in St. Kitts, where it was the main crop until 200 5;  Nevis has not grown sugar cane for decades.  
Fishing contributes some 1.2% to GDP, while livestock production accounts for some 0.4%. 
149. The main event during the period under review ha s been the closure of the sugar industry.  
The St. Kitts Sugar Manufacturing Corporation (SSM C), the sole producer and exporter of sugar, 
continued to make heavy losses up to the end of July  2005, when the Government decided to close it.  
The closure left some 1,500 workers unemployed, equi valent to some 12% of the labour force.  These 
workers were given EC$44 million in severance paymen ts, and the OECS Secretariat was requested to 
help prepare a study to facilitate their insertion in other parts of the economy.
26  The closure was 
prompted by the industry's high production costs, which averaged EC$2,440 per tonne, while the 
average selling price was about half that level.   Sugar exports have taken place under quotas and 
preferential price conditions.  For sales to the EC, St . Kitts and Nevis benefite d from an ACP quota of 
15,590.9 tonnes in 2005 (raw value), which was estimated to generate some €8.16 million.27  Sales to 
the United States were under the U.S. Sugar Progr am, and the quota allocation was 7,258 tonnes each 
for FY2006 and 2007;  however,  no exports have taken place.28  Despite preferential market access, 
the industry continued to accumulate losses29;  and the EC's decision to cu t the price of white sugar by 
36% over a four-year period beginning  2006 seems to have triggered St  Kitts and Nevis's decision to 
close its sugar industry.  Sugar was sold in th e domestic market at controlled prices, with the 
Government reimbursing the industry the difference between these and market prices. 
150. In support of the former sugar industry work ers, and the post-sugar industry rehabilitation 
programme the Food and Agriculture Organizati on (FAO) assisted the Government through an 
emergency support project valued at US$393,000.00.   This provided technical support and the supply 
of the necessary inputs for the establishment of 100  crop and 46 livestock enterprises for the most 
affected displaced workers. 
151. Production of non-traditional crops also lost  GDP share during the period under review, 
affected especially during the 2004-05 period by adverse weather conditions.30  However, there seems 
to have been a substantial recovery since 2006:  non-sugar crop production showed marked increases 
for the first nine months of 2006, compared with th e same period for 2005.  Particularly dynamic were 
certain fruits such as pineapple, papaya, and wa termelon, as well as tomatoes.  The production of 
white potatoes, sweet potatoes, onion, sweet peppe rs, and peanuts has also been increasing.  The 
increase in food crop production resulted in small expor ts to the nearby islands.  Agri-processing has 
developed significantly with the ac tivation of a processing unit for a wi de range of local fruits into 
                                                      
26 OECS Secretariat (2005). 
27 Agritrade-CTA (2006). 
28 United States Department of Agriculture online in formation.  Viewed at:  http://www.fas.usda. 
gov/itp/imports/Sugar/SugarTrackingSheetFY07Jan.pdf. 
29 St. Kitts exported sugar to the United Kingdom, under the Cotonou Agreement;  the United States;  
and other CARICOM countries. 
30 ECCB (2006a). Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 29 
 
 
dehydrated products as well as juices.  There was a substantial increase in livestock production during 
2006, particularly pork production.31 
152. The Department of Agriculture in the Minist ry of Housing, Agriculture, and Fisheries 
formulates the overall agricultural policy and sector-specific policy measures;  the Department of 
Fisheries is responsible for fisheries policies.  The Government provides some support services to 
farmers, such as a Farmer Training Programme, and market research and marketing assistance.  A number of financial incentives are also granted to th e sector, for example, a special rate for water used 
by farmers for agriculture, and duty and tax concessi ons on farm vehicles, farm equipment, and farm 
inputs. 
153. The primary objective of the Government’s st rategy for the development of agriculture, 
following the closure of the sugar industry, is to  significantly increase agri cultural production in a 
sustainable manner through the transformation of th e sector to satisfy local demand and to supply 
selected export markets.
32  The focus is on developing comme rcial farms for both crop and livestock 
production.  Production will be market-led with sp ecial emphasis on commercialization of farms, in 
an attempt to make the sector internationally compe titive.  The main goals of the strategy are to:  (i) 
foster food security;  (ii) raise rural incomes;  ( iii) provide employment options;  and (iv) generate 
foreign exchange savings.  The Department of Agriculture has been placing great emphasis on the 
development of fruit production and exportation;  the Marketing Unit of the Department has been 
conducting field visits to nearby markets. 
154. Until 2005, the St. Kitts Sugar Manufacturing Corporation (SSMC) was the only producer 
and exporter of sugar.  The Ce ntral Marketing Corporation CEMA CO acts as marketing agent for 
non-sugar agricultural produce, and competes with the private sector;  its monopoly rights have been 
abolished.  CEMACO acts as an outlet where farm ers dispose of excess supply of a product, and 
functions in practice as a price stabilizer, absorb ing excess supply and preventing prices from falling.  
CEMACO does not provide farmers with agricultural extension services. 
155. Tariff protection is higher for agricultural produc ts than for non-agricultural goods.  The 2006 
applied MFN tariff on imports of agricultural produc ts (WTO definition) averaged 14.6%.  Using the 
ISIC classification, the average tariff on agriculture and fisheries was 13.6% in 2006, compared to an 
average tariff of 10.3%.  Some agricultural products, such as fruit and vegetables, animals and products thereof, beverages and spirits, coffee and tobacco benefit from higher than average 
protection (Table III.3).  All agricultural products grown in St. Kitts and Nevis, as well as produce of 
CARICOM origin, are exempt from the consumption ta x.  Specific import duties are applied on some 
agricultural and agri-industrial goods, included in 22 tariff HS headings, such as refined sugar;  beer, stout, and other malt beverages;  unde natured and denatured alcohol;  sp irits;  cigars and cigarettes;  
and other manufactured tobacco and tobacco subs titutes (Chapter III(1)(iv)).  Tariff quotas are not 
used.  Import licences are required for vegetabl es, eggs, and meat from non-CARICOM countries.  
Imports of beer and malt require a licence, granted under yearly quotas based on domestic production 
and import figures for the previous three years, once a domestic and OECS volume of production has been decided.  Import restrictions in the form of  quantitative limits are applied to some agricultural 
products from non-CARICOM countres, such as eggs , which may be imported only by domestic egg 
producers when domestic production is insufficient.   Also, imports of a number of vegetables 
(cabbages, carrots, onions, sweet peppers, tomatoes, and white potatoes) are subject to seasonal 
import restrictions.  Permits are required for imports  of any live animals, poultry or birds or carcasses 
                                                     
 
31 Government of St. Kitts and Nevis (2007), Prime Mi nister's Address for 2007 Budget.  Viewed at:  
http://www.gov.kn/pdf/ Budget_Addresses/2007_Budget_Address_20061212.pdf. 
32 Government of St. Kitts and Nevis (2007). WT/TPR/S/190/KNA Trade Policy Review 
Page 30 
 
 
and parts thereof, plants, and planting materials, pe sticides.  St. Kitts and Nevis has not notified any 
SPS measure to the WTO. 
(2) MANUFACTURING  
156. The manufacturing sector, including food processi ng, accounted for 9.7% of current GDP in 
2005.  Manufacturing lost GDP share over the 200 0-05 period, but increased in 2006.  The production 
of refined sugar declined substa ntially during 2001-05, and was stopped at the end of the July 2005 
harvesting season.  The manufacturing sector in St . Kitts and Nevis now comprises mainly light 
manufactures like beverages (beer, malt, rum, bottle d water, and soft drinks), and pasta for the 
domestic market;  and enclave industries that assembl e electrical or electronic components, and traps 
for the cable industry, for the ex ternal market, particularly the United States.  During the review 
period production of concrete, electronic compone nts and bottled water has increased.  In 2006, 
production benefited from increased international de mand, which led to the expansion and upgrading 
of certain industries, concentrating in products with higher value added.33 
157. The 2006 average MFN tariff on imports of i ndustrial products (ISIC-2 definition) was 
10.2%, with a peak of 70%.  The highest averag e tariffs are applied on beverages and tobacco, 
clothing and apparel articles, footwear, and other manufacturing articles.  Incentive schemes are 
available for manufacturers.  The Fiscal Incentives  Act grants tax relief from corporate tax and 
customs duties to approved enterprises for up to 15 years (Chapter III(3)(ii)). 
(3) SERVICES  
(i) Main features 
158. Sector-specific commitments under the Genera l Agreement on Trade in Services (GATS), 
were made in 5 of the 12 main service areas:  financial services (other financial services), tourism and travel related services (hotels and restaurants);  recreational, cultural and sporting services (entertainment and sporting services);  communications services (telecommunication services);  and transport services (maritime transport). 
159. With the exception of hotel and restaurant services, no sector-specific commitments are 
limitations for cross-border supply and consumption abroad.  In contrast, certain sector-specific 
commercial presence limitations are maintained in  most subsectors in which commitments were 
undertaken.  In the case of tourism,  a market access commitment, wit hout restrictions, is granted for 
hotels in excess of 50 rooms.  As regards the presence of natural persons, market access and national treatment are generally unbound or subject to limitations. 
160. St. Kitts and Nevis' horizontal commitments under the GATS relate to the movement of 
natural persons and commercial presence.  Th e provision of services through commercial presence 
requires that foreign service providers incorporate or establish the business locally in accordance with 
the regulatory requirements of St. Kitts and Nevis.  Foreign investors are subject to the Alien Landholding Act requirement that foreign companies and individuals wishing to hold property in 
St. Kitts and Nevis must first obtain a licence, within which conditions of purchase are detailed 
(see Chapter II).  St. Kitts and Nevis' GATS Schedul e also includes the reservation of a number of 
small business service opportunities for nationals ;  the room limitation on hotel and resort 
development is mentioned as an example of this po licy, but a comprehensive listing of other included 
service activities is not provided.  As regards the presence of natural persons, market access is 
                                                     
 
33 Government of St. Kitts and Nevis, Budget A ddress 2007.  Viewed at:  http://www.gov.kn/ 
pdf/Budget_Addresses/2007_Budget_Address_20061212.pdf. Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 31 
 
 
normally confined to people with managerial and t echnical skills that are in short supply or not 
available in St. Kitts and Nevis.  St. Kitts and Nevis has not listed any Article II (MFN) exemptions. 
(ii) Telecommunications 
161. St. Kitts and Nevis did not participate in the extended WTO negotiations on basic 
telecommunications services, but had made commitme nts in its GATS Schedule, with respect to the 
provision of some value-added telecommunications services.  These cover electronic mail, voice mail, and online information and data processing all of which were bound without limitations, except as 
regards the presence of natural persons. 
162. There are no limits on foreign ownership of telecom companies, nor are there citizenship 
requirements for directors.  All telecom licensees must be established as local companies.  Mobile 
calls are subject to a 5% tax, which has replaced a 5% surcharge applied on international calls prior to 
liberalization of the market.  There are no sector-specific fiscal incentives. 
163. The Prime Minister is the Minister for Telecommunications, and is assisted by the Minister of 
State in the Ministry of Finance, Sustainabl e Development and Information Technology.  The 
National Telecommunications Regulat ory Commission of St. Kitts and Nevis (NTRC) is responsible 
for regulation of the sector.  At the regional level, the Eastern Caribbean Telecommunications 
Authority (ECTEL) plays an important advisory a nd policy-coordinating role (see Overview Report).  
The main legislation governing the sector is the Te lecommunications Act No. 2 of 2000, (as amended 
by Act No. 12 of 2000), which deregulated the sect or and opened it to competition.  This Act, as 
amended, is substantially the same as the telecom la ws of the other OECS ECTEL-Member States.  It, 
inter alia,  specifies criteria for the granting of a licence;  universal service conditions that may be 
applied;  and procedures for conc luding interconnection agreements.  In the Second Schedule to the 
Telecommunications Act (as amended), the Minister responsible for telecommunications is empowered to attach terms and conditions to licences granted.  To date, these have included universal 
service requirements, and, in one case, a licensee was required to establish a joint venture with a local 
company.  The Telecommunications (Tariff) Regulations  No. 17 of 2004 stipulate that where there is 
effective competition in the telecommunications ma rket, licensees may set tariffs.  In services where 
there is insufficient competition, the NTRC may desi gnate this service as a regulated service;  within 
30 days, the telecoms provider must file an app licable tariff with the Co mmission for approval.  The 
tariffs for regulated services in St. Kitts and Nevi s are determined in accordance with the Price Cap 
Plan agreed between Cable and Wireless and the ECTEL Member states. 
164. Key changes over the period since liberalizati on have been a major increase in mobile 
penetration (from 14% in 2002 to 104% in 2006), as  well as a corresponding increase in local traffic 
originating from mobile phones.  Fixed line penetr ation has decreased gradually, as has local traffic 
originating from a fixed line. Other indicators have  either fluctuated since 2002, showing no clear 
trends or have remained stable (Table IV.1). 
165. As at May 2007, 11 individual licences had been issu ed in St. Kitts and Nevis:  three for fixed 
public services;  three for public mobile services;  four for Internet networks and services;  and one 
for a submarine cable.  According to ECTEL, recomme ndations have been made to the Minister of 
Telecommunications for a fixed public telecom licence to be issued to Caribbean Cable Communications and a Submarine Cable licence to Southern Caribbean Fibre.
34 
                                                      
34 ECTEL (2006). WT/TPR/S/190/KNA Trade Policy Review 
Page 32 
 
 
Table IV.1 
Telecommunications statistics, 2002-06 (March)  
 2002 2003 2004 2005 2006 
Telecommunications revenues (EC$ million) 80 84 88 98 91 
Fixed-line penetration (%) 52 52 49 42 41 
Mobile penetration (%) 14 32 47 61 104 
Internet penetration (%) 9 10 13 17 18 
Investment (EC$ million) 29 17 17 38 23 
Employment 150 122 120 140 159 
Local traffic from a fixed lin e (million minutes) n.a. 154 117 110 118 
Local traffic from a mobile phone  (million minutes) n.a. 5 15 15 10 
International outgoing traffic (fixed a nd mobile) (million minutes) 14 16 15 15 n.a. 
 
n.a. Not applicable. 
 
Source:  Information provided by ECTEL. 
166. With respect to the fixed line market, alt hough three licences have been granted, the 
incumbent, Cable and Wireless, is currently the only provider.  Acco rding to the authorities, the new 
entrants have claimed that they are experienci ng difficulties negotiating interconnection terms with 
the incumbent;  however, this issu e has not reached the NTRC for acti on.  The authorities note that, 
following liberalization of the market, Cable and Wi reless changed the fee structure for fixed line 
calls to adopt what they considered to be a mark et-orientated approach to call tariffs;  previously, 
international calls had subsidized local calls.  Fixe d-to-fixed line tariffs for peak time local calls were 
raised from EC$0.08 to EC$0.09 per minute, and fixed line tariffs for peak time calls to the United States were reduced in 2003 from EC$3. 60 to EC$1.65 per minute.  The Price Cap Plan 
introduced in 2004 resulted in reductions in certain fi xed line tariffs:  peak ta riffs for local fixed-to-
fixed calls have decreased to EC0.07 per minute, and off-peak tariffs for local fixed-to-fixed calls 
have fallen from EC$0.07 per minute to EC$0.05 per mi nute.  For fixed-to-mobile calls peak tariffs 
have fallen from EC$0.76 to EC$0.71 and off peak tariffs from EC$0.76 to EC$0.69.  The costs of 
calls to other Caribbean countries have remained  at EC$0.50 per minute to other OECS Member 
States, and at EC$0.66 to EC$0.99 per minute to no n-OECS Members.  Billing for fixed line calls is 
on a per minute rather than on a per second basis.  The residential fixed line access charge increased 
slightly during the review period, from EC$22 per month in 2002 to EC$24.00 in 2005. 
167. Competition in the mobile market began in Ap ril 2005, with two additional licencees, AT&T 
Wireless Services and UTS-Cariglobe Mobile servi ces, commencing operations in addition to Cable 
and Wireless.  In spite of increased competition, EC TEL has reported that rates for mobile to mobile 
and mobile to fixed line calls ha ve remained stable;  Cable and Wireless, the first operator in the 
market had set high tariffs, in the absence of regulated  prices.  Tariffs for mobile to mobile range from 
EC$0.50 per minute for calls on the same network to  EC$0.89 for calls betwee n networks.  The tariff 
for mobile to fixed was EC$0.85 per minute in 2006.
35  The authorities note that the reasons for the 
major growth in the mobile phone market include:  increases in the availability of pre-paid mobile 
services;  low prices for handsets;  and an increasing trend for individuals to have more than one mobile phone to take advantage of the lower cost of  calls on the same network.  The authorities also 
note that the termination rates, which the operators  had negotiated between th emselves, were high and 
interconnection issues were being looked into.  As  reported by ECTEL, 90% of mobile subscribers 
have pre-paid mobile phones. 
168. Of the four companies licensed to provide Internet networks and services, three are currently 
operational (Cable and Wireless, The Cable, and Caribbean Cable Communications).  All providers 
                                                     
 
35 ECTEL (2006). Saint Kitts and Nevis WT/TPR/S/190/KNA 
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offer high speed Internet access and, as in other OE CS countries, there has been a marked shift in 
St. Kitts and Nevis, from dial-up to high-speed In ternet access, as a result of rate reductions for 
broadband.  Some 75% of subscribers had broadband access in March 2006, up from 16% in 
March 2003.  Internet penetration in St. Kitts a nd Nevis is high compared with most other OECS 
countries. 
(iii) Financial services 
169. St. Kitts and Nevis did not participate in  the extended WTO negotiations on financial 
services.  In its GATS Schedule of Commitments, it made commitments in financial services only with respect to the "registration of offshore comp anies and trusts (not including insurance companies 
and banks) to do offshore business".
36 
(a) Onshore banking and insurance 
Banking 
170. Domestic banks in St. Kitts and Nevis are regulated by the ECCB.  Onshore banking 
legislation is uniform among all OECS Member Stat es.  The Banking Act No. 4 of 2004 is the main 
legislation governing onshore banking,  with changes to previous legislation in 2004 upgrading the law 
in relation to the Basle core principles.  These ch anges include strengthened oversight of financial 
institutions by the ECCB, and more stringent and systematic reporting requirements by such institutions. 
171. In order to carry out banking business in St. K itts and Nevis, banks must be licensed by the 
Minister of Finance, and fulfil the conditions re quired for licensing (see Overview Report).  These 
include that banks (both local and foreign institutio ns) must have a place of business there.  Citizens 
and companies of St. Kitts and Nevis may borrow fro m, or place deposits with, banks located abroad, 
and St. Kitts and Nevis no longer maintains exch ange controls on capital and non-trade current 
transactions (see Chapter I).  There are no limita tions on foreign investment in onshore banks in 
St. Kitts and Nevis.  Foreign-owned banks licensed a nd incorporated in St. Kitts and Nevis are subject 
to the same requirements as locally owned and local ly incorporated banks and may provide the same 
services.  Branches of foreign banks must submit ad ditional information when applying for a licence 
to show that they are subject to effective supervis ion at home, and confirm that the regulatory body in 
their home jurisdiction does not object to the appli cation.  There are no residency or citizenship 
requirements applied to bank managers or directors. 
172. At the end of 2006, there were six commercial ba nks operating in St. Kitts and Nevis:  three 
are branches of foreign banks (Bank of Nova Sc otia, First Caribbean Inte rnational Bank (Barbados) 
Ltd, and, Royal Bank of Canada);  one is a subs idiary of a foreign bank that has been locally 
incorporated (RBTT Bank (SKN) Ltd);  the other two are locally incorporated and locally owned 
(Bank of Nevis and St. Kitts-N evis-Anguilla National Bank Ltd.).
37  Information was not available on 
whether the Government of St. Kitts and Nevis has a share in any local banks.  In 2006, the weighted 
average spread between deposit and lending interest  rates was 5.7 percentage points (3.7% deposit, 
9.4% lending).38 
173. St. Kitts and Nevis has one government-own ed development bank, established by the 
Development Bank of Saint Kitts and Nevis Act No. 1 of 1981.  Its duties are to facilitate and 
                                                      
36 WTO document GATS/SC/119, 16 November 1995. 
37 ECCB online information.  Viewed at: http://www.eccb-centralbank.org/Financial/fin_banks.asp. 
38 ECCB (2007). WT/TPR/S/190/KNA Trade Policy Review 
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encourage savings and investment; and to grant loan s and other forms of financial assistance to help 
establish and maintain development enterprises, a nd expand small manufacturing and retail businesses 
(see Chapter III).  In February 2007, St . Kitts and Nevis had three credit unions.39 
174. The IMF has expressed concern that the burden of  financing the public sector deficit largely 
falls on domestic institutions, thereby increasing the vulnerability of loca lly owned banks.  It 
emphasized the importance of strengt hening prudential supervision, so  to better assess the financial 
sector's health.40  As noted by the ECCB, the public sector defi cit is being financed largely by resort to 
the Regional Governments Securities Market (RGSM). 
Insurance 
175. There are 16 registered insurance companies in St . Kitts and Nevis.  Fourteen are branches of 
foreign companies, and the other two are locally  incorporated.  Insurance companies must be 
registered with the Registrar of Insurance within  the Ministry of Finance.  Insurance licences are 
renewed annually and subject to an annual fee.  The authorities confirm that the requirements for local 
and foreign companies are the same in all respects. 
176. A uniform Insurance Act for all OECS Member c ountries is at an advanced stage of drafting 
and expected to be transposed into national legi slation.  Until then, the onshore insurance business in 
the OECS remains governed by the Insurance Act No . 14 of 1968.  Insura nce businesses operating in 
the domestic market or in businesses exclusively in EC dollars must be licensed under this Act.  
Licences may be granted either for two years or l onger.  The Act requires insurers to maintain a 
deposit equivalent to 10% of annua l average premium income.  For companies licensed to operate for 
two years or more, the latter is defined as the a nnual average of the gross premiums payable within 
two to ten years for policies issued by the registered  insurer in St. Kitts and Nevis;  for insurers 
holding a two-year licence, it is half of the premium income.  There are no citizenship requirements for managers or directors of insurance companies.   The authorities confirm that there is no legal 
restriction on companies located abroad from offering insurance coverage to locals. 
177. Individuals and companies remitting payments to  persons outside of St. Kitts must deduct a 
10% withholding tax from non-life insurance premiums.
41  This withholding tax does not apply to 
reinsurance premiums. 
(b) Offshore financial services 
178. St. Kitts and Nevis retain separate offshore fina ncial institutions and laws.  Offshore banking 
and insurance are regulated in St. Kitts by the Fi nancial Services Department in the Ministry of 
Finance, and in Nevis by the Nevis Financial Serv ices Department in the Ministry of Finance and 
Development.42  The Financial Services Commission, creat ed in 2000, acts as the ultimate regulatory 
body for financial services both for St. Kitts and fo r Nevis.  It receives reports from the respective 
regulators on both islands;  it is responsible for inte racting with the international community regarding 
regulatory and supervisory issues; it gives general advi ce and guidance to regulators;  it is authorized 
to take steps to develop effective regulation and supervision in St. Kitts and Nevis; and it is 
                                                      
39 ECCB online information.  Viewed  at:  http://www.eccb-centralbank .org/Financial/fin _structure.asp. 
40 IMF Public Information Notice (PIN) No. 06/11, "Executive Board Concludes 2005 Article IV 
Consultation with St. Kitts and Nevis", 1 February 2006. 
41 St. Kitts Financial Services online informati on.  Viewed at: http://www.skbfinancialservices. 
com/taxation.php. 
42 ECCB online information.  Viewed  at:  http://www.eccb-centralbank .org/Financial/f in_offshore.asp. Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 35 
 
 
responsible for the enforcement of regulations.43  As noted by the G7 Financial Action Task Force 
(FATF) the ECCB now vets offshore bank applicati ons and supervises St. Kitts and Nevis' offshore 
banks for money laundering compliance.44 
179. There are no offshore banks licensed in St. K itts;  there are, however, 48 captive insurance 
companies licensed.  There is one offshore bank (the  International Bank of Nevis), registered in 
Nevis.  No information is available on the number of offshore insurance companies licensed in Nevis. 
180. In June 2000, St. Kitts and Nevis was iden tified as a non-cooperative country by the FATF 
(see Overview Report).  Following legislative cha nges between 2000 and 2002, to bring St. Kitts and 
Nevis' supervisory and regulatory frameworks up to international standards, St. Kitts and Nevis was 
removed from the OECD and FATF lists of non-cooperating territories in June 2002. 
181. Among institutional and legislative changes that are applicable both in St. Kitts and in Nevis 
are the enactment of the Proceeds of Crime Act No. 16 of 2000 and the Anti-Money Laundering 
Regulations (2001, with amendments in 2001 and 2002), as well as the creation of the Financial 
Services Commission, under which, Financial Servi ces (Exchange of Information) Regulations were 
promulgated in 2002.  These regulations set out th e powers of the Financial Services Commission to 
obtain information and to assist a foreign regulatory authority with its inquiries.  In addition, a 
Financial Intelligence Unit was established in 2000 .  Its role includes collecting and acting upon 
suspicious transaction informati on and liaising with money launder ing intelligence agencies outside 
St. Kitts and Nevis.  It has the authority to freeze bank accounts for up to five days.45  The FATF 
Report and subsequent reforms did not lead to any bank closures. 
182. Under the Financial Services (Regulations) Or der No. 25 of 1997, authorization from the 
Minister of Finance is required to carry out any offshore finance business (deposit-taking, investment, 
insurance, assurance, trust, cor porate business) within St. Kitts. 
183. Offshore banks and insurance companies in St. Kitts are regulated by the Companies Act No. 
22 of 1996 (as amended);  the Li mited Partnerships Act of 1996;  and, the Captive Insurance 
Companies Act No. 12 of 2006.46  Amendments to the Companies Act included the  creation of a 
mechanism to register bearer shares that includ es identifying the beneficial owners, as well as new 
requirements that a company's secretary must be a resident of the Federation and that the registered office of the offshore entity must be at the place of business of a registered agent or person authorized 
under the Order.  Captive insurance companies may only provide insurance for risks that take place 
abroad.  Companies and limited partnerships are ex empt from all taxes as long as they conduct their 
business exclusively with non-residents. 
184. The Nevis Island Administration has issued sev eral Ordinances that govern offshore business 
in Nevis.  Offshore companies must be incorporat ed under the Nevis Business Corporation Ordinance, 
1984 (as amended).
47  Corporations must have a registered ag ent in St. Kitts and Nevis, who must be a 
barrister or solicitor admitted to practice in the Fede ration or a corporation ha ving a paid-in capital of 
                                                      
43 The Financial Services Commission Act, No. 17, 2000. 
44 FATF online information.  Viewed at:  http://www.fatf-gafi.org/dataoecd/4/32/33922320.pdf. 
45 The Financial Intelligence Unit Act, No. 15, 2000.  Further information is available from the FATF, 
online information.  Viewed at:   http://www.fatf-gafi.org/dataoecd/4/32/33922320.pdf. 
46 Captive Insurance Company Act, No. 12, 2006.  Viewed at:  http://www.skbfinancialservices.com/ 
PDF%20Documents/Captive%20Insurance%20Act.pdf. 
47 The Nevis Business Corporation Ordinance, 1984 (as amended).  Viewed at:  
http://www.nevisfinance.com/PDFS/NBCO%20(1984)%20as%20Amended%20to%202002.pdf. WT/TPR/S/190/KNA Trade Policy Review 
Page 36 
 
 
at least EC$500,000.  Offshore companies not concluding business in Nevis are exempt from payment 
of taxes and exchange controls.48 
185. The Nevis Offshore Banking Ordinance, 199 6 (as amended) governs offshore banks in 
Nevis.49  The establishment of offshore banks requires the consent of the Nevis Minister of Finance.  
Offshore banks must have at least one director who is  a citizen of St. Kitts and Nevis with a residence 
in Nevis.  Wholly owned subsidiaries of banks i ndigenous to St. Kitts and Nevis and qualified foreign 
banks are eligible to apply for a licence to provide offshore banking services;  separate accounts, however, must be kept.
50  Offshore banks may not accept deposits from Nevis residents or keep Nevis 
residents as customers for any of its offshore banking services.  Offshore banks must have an 
authorized and paid-up capital of EC$2 million, and EC$1 million must be subscribed and paid up in 
cash for deposit into an account maintained by the ECCB.  Tax exemptions apply. 
186. The Nevis Offshore International Insurance Or dinance (2004, as amended in 2006), and the 
Nevis International Insurance Regulations (2004) and the Nevis International Insurance Regulations 
(2006), govern the offshore insurance sector.51  Offshore insurance companies must be registered with 
the Registrar of International Insurance.  They must  have a registered office in Nevis, and either a 
management in Nevis or an appointed registered agent.  There are no citizenship requirements for 
directors.  Minimum paid-up share capital is  US$185,000 for long-term business and for general 
business and US$75,000 for reinsurance.  Lower figures apply for captive insurance and allied 
reinsurance business and where more than one cat egory of insurance is carried out, the minimum 
paid-up capital amounts are aggregated.  Exemptions from income tax, stamp duty, currency controls 
and foreign exchange levies apply.52  Application, registration, and renewal fees are set out in the 
Nevis International Insurance Regulations:  registration fees range from US$500 to US$2,000 
depending on business type;  and annual renewa l fees range from US$500 to US$1,000 (or the 
aggregate for more than one class of business). 
187. The 2006 amendment to the Ordinance provided for the establishment an  Insurance Advisory 
Committee to report to and advise the Minister on  matters connected with the development and 
regulation of the international insurance industry. 
(iv) Air transport 
188. St. Kitts and Nevis has two airports, the Robert L. Bradshaw International Airport in St. Kitts 
and the Vance W. Amory International Airport (previ ously known as Newcastle Airport) in Nevis.  In 
2004, there were just over 86,500 air passenger arrivals.53  According to the authorities, the vast 
                                                      
48 Offshore companies are permitted to perform a limi ted number of activities in Nevis.  These include:  
maintaining bank accounts in Nevis;  investing in stocks  or entities of Nevis corporations or being a partner in 
Nevis partnership or a beneficiary of a Nevis trust or estate;  acquiring real property in a local or industrial 
tourist facility provided always that such property is situated in a project or development approved and 
authorized by the Nevis Island Administration. 
49 Nevis Offshore Banking Ordinance, 1996 (as ame nded).  Viewed at:  http ://www.nevisfinance.com/ 
PDFS/NOBO%20(1996)%20as%20Amended%20to%202002.pdf. 
50 A qualified foreign bank is one licensed under the Banking Act or licensed to do domestic banking 
business in its jurisdiction of incorporation (or a wholly-owned subsidiary of such foreign bank). 
51 Nevis Financial Services Law Library online info rmation.  Viewed at:  http://www.nevisfinance. 
com/Law Library.cfm. 
52 An "allied reinsurance company" is a company carrying on insurance business where the registered 
insurer is allied to a primary insurer who typically initiate s insurance contracts as part of its normal course of 
business, and the allied reinsurer will only assume risks and accept premiums fro m this primary insurer. 
53 Caribbean Tourism Organization online informati on.  Viewed at:  http://www.onecaribbean.org/ 
information/documentview.php?rowid=4364. Saint Kitts and Nevis WT/TPR/S/190/KNA 
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majority of imports arrive by maritime transport, rather than air.  Both airports are owned by the 
Government;  this is a de facto situation and not mandated by law. 
189. A contract awarded in 2005 to upgrade and e xpand the Robert L. Bradshaw International 
Airport has now been completed.  According to the authorities, the upgrade allows the airport to 
handle large and more frequent airlift and thereb y an expanded flow of visitors and residents.54 
190. St. Kitts and Nevis does not have any domestically  incorporated airlines.  No information was 
available on any foreign investment restrictions on ownership of domestically -incorporated carriers, 
or whether there are any restrictions on cabotage. 
191. Overall responsibility for air transport in St. Kitts  and Nevis rests with the Minister of Public 
Works, Utilities, Transport and Postal Services.  The Air Transport Licensing Board deals with 
applications for air transport licences, and sets landi ng charges.  At the regional level, regulatory 
oversight for safety and security issues is provided by the Eastern Caribbean Civil Aviation Authority 
(ECCAA).  Responsibility for the airports rests with  the St. Christopher Air and Sea Ports Authority 
and the Nevis Air and Sea Ports Authority.  Th ese authorities provide all airport management and 
auxiliary services, with the exception of ground handl ing services, which are provided by private local 
companies. 
192. The main legislation governing the sector is th e Civil Aviation Act, 20 04.  The Act specifies 
the criteria to be considered in the granting of an ai r transport licence:  existence of other air services;  
need/demand for the proposed service;  and any unfai r advantage of the applicant over other operators 
by reason of the terms of employment of persons employed.  The Minister has final authority to 
suspend consideration of the application.  For count ries with which St. Kitts and Nevis has a bilateral 
air agreement (currently only Canada, see below) , the above issues are not considered, unless the 
Minister directs otherwise.  However, consideration is given to whether the airline is fit, willing, and 
able to operate the service. 
193. St. Kitts and Nevis raises a travel tax, a departure tax and a cruise passenger tax  
(see section (3)(vi)) 
194. St. Kitts and Nevis is a contracting state of the ICAO.  It has one bilateral air services 
agreement, recorded by ICAO, with Canada.55 
(v) Maritime transport 
195. St. Kitts and Nevis has undertaken GATS commitm ents on "ship registration for the control, 
regulation and orderly developm ent of merchant shipping" subject to certain registration 
requirements.56 
196. The Ministry of Public Works, Utilities, Tran sport and Posts is responsible for maritime 
transport formulation and management. 
197. The main legislation governing maritime tran sport is the Merchant Shipping Act of 2002 as 
amended in 2005.  Under the Act, pe rsons qualified to own St. Kitts a nd Nevis ships include:  St. Kitts 
and Nevis citizens;  CARICOM citizens resident in  a CARICOM member state as long as the ship is 
                                                      
54 Government of St. Kitts and Nevis (2007). 
55 Canadian Transportation Agency Online informa tion.  Viewed at:  http://www.cta-otc.gc.ca/air-
aerien/agreements/html/stkitts_e.html. 
56 WTO document GATS/SC/119, 16 November 1995. WT/TPR/S/190/KNA Trade Policy Review 
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engaged in international voyages;  individuals or corporations in joint-venture shipping enterprise 
relations with St. Kitts and Nevis citizens;  corpor ations established and with a registered office in 
St. Kitts and Nevis;  and any othe r persons determined by the Mini ster.  Non-eligible persons may 
register a ship under the St. Kitts and Nevis flag if  over 51% of the shares of the ship are owned by 
persons qualified to own a St. Kitts and Nevis ship, and a maritime agent resident in St. Kitts and 
Nevis is appointed.57  Therefore, foreign individuals or corporations wishing to register a ship under 
the St. Kitts and Nevis flag, must establish a local  company.  Various taxes and fees, including 
registration fees, administration fees for registration,  and annual fees and taxes, are levied by the 
Government;  these often vary according to the gross tonnage of the ship.  Ships wholly owned by a 
St. Kitts and Nevis company with its registered of fice in the Federation, or a St. Kitts and Nevis 
national or citizen resident in the Federation ar e entitled to a 50% reduction of registration fees.  
These fees range from US$160 for ships of 500 GT or  less to US$1,200 for ships of 20,000 GT or 
more.  Locally flagged vessels may benefit from duty concessions for imports of spare parts, fuel, and 
other items. 
198. According to the authorities, there are no restri ctions on cabotage.  There are no government-
owned cargo vessels, and government cargo is not reserved for domestically flagged vessels. 
199. The main ports in St. Kitts are Basseterre and Port Zante.  These are owned and administered 
by the state-owned St. Christopher Air and Sea Ports Authority.  The main port in Nevis is Charlestown, which is owned and administered by the Nevis Air and Sea Ports Authority.  Each authority has a monopoly in the provision of port ser vices, and approval from the relevant Authority is 
required to discharge and load general cargo.  A ccording to the authorities, an average of 22 
containers are unloaded in an hour at the main commercial ports. 
200. In 2003, UNCTAD reported the cost of freight as a percentage of the value of imports in 
St. Kitts and Nevis to be 11.5%.  The authorities estimate these costs to be around 10%.  In either 
case, these figures are above the developing country average of 9.1%.
58 
201. During the review period, steps have been take n to upgrade security at St. Kitts and Nevis' 
main commercial ports, including the upgrade of cer tain facilities to comply with ISPS Regulations. 
202. St. Kitts and Nevis acceded to the Internationa l Maritime Organization in 2001, and since that 
time has signed onto a number of its international conventions. 
(vi) Tourism 
203. St. Kitts and Nevis has made commitments on hot el services, limited to development of hotels 
in excess of 50 rooms, as well as a full commitment fo r restaurant services relating to ethnic food. 
204. In 2005, St. Kitts and Nevis had nearly 127,000 stayover tourist arrivals, and nearly 217,000 
cruise passenger arrivals;  in the same year, the contribution of hotels and restaurants to GDP was 
7.1%.  In 2006, tourism-related expenditure was estimated at EC $314 million.  The United States is 
the main source for tourist arrivals to St. Kitts  and Nevis (representing 57% in 2004), followed by 
other Caribbean countries (18%), the United Kingdom (9%) and Canada (5%).59 
                                                      
57 Merchant Shipping Act (2002), Part II (Art. 3-8) .  Viewed at:  http://www.st .kittsnevisregistry. net. 
58 UNCTAD (2005). 
59 Caribbean Tourism Organization online informati on.  Viewed at:  http://www.onecaribbean.org/ 
information/documentview.php?rowid=4166. Saint Kitts and Nevis WT/TPR/S/190/KNA 
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205. The Minister of Tourism has overall responsibilit y for the formulation of tourism policy and 
implementation in St. Kitts and Nevis;  marketi ng and promotion activities are carried out by the 
St. Kitts Tourism Authority and the Nevis Tourism Authority60, as well as the private sector St. Kitts 
Hotel and Tourism Association and the Nevis Hotel and Tourism Association. 
206. St. Kitts and Nevis offers fiscal incentives to  encourage the development or renovation of 
hotels.  No information was available however, on the revenue foregone as a result of these benefits.  
Under the Hotels Aid (Amendment) Act (1998), th e Administrator in Council may grant persons 
constructing a hotel a licence to im port building materials and hotel equipment free of customs duties 
or these duties may be drawnback.  Licences to r un hotels and guest houses are granted by the 
Minister responsible for Finance.  St. Kitts and Nevis, provides corporate income tax breaks for the 
construction or extension of hotels, as incl uded in the Income Tax Act No. 17 of 1966. 
207. In 2005, the Government of St. Kitts and Ne vis enacted a Cricket World Cup 2007 (Tourism 
Accommodation Incentives) Act (No. 11, 2005), prov iding tax incentives for a limited period for the 
construction or conversion of buildings into hotels, villa r esorts, condominiums or residential 
complexes of at least eight bedrooms.  These incl ude tax holidays, the dur ation of which varies 
according to the number of rooms61; and customs duty and consumpti on tax exemptions on imports of 
building materials for a period to be determined by the Cabinet.  A Customs Service Charge still applies.  Applications for tax bene fits had to be made to the Cabine t for approval before 31 May 2006.  
Tax relief granted under this Act, was not in additi on to relief and customs duty exemptions available 
under the Hotels Aid Act. 
208. St. Kitts and Nevis levies a number of touris m-related taxes and charges.  These include a 
US$22 departure tax for passengers departing both by  air and by sea;  a US$1.50 cruise passenger tax 
and a 9% hotel room tax (which incl udes a 2% island enhancement tax).
62  A travel tax is levied on 
tickets for air and maritime travel originating in St. Kitts and Nevis at a rate of 10% of the cost of the 
fare (Travel Tax (Amendment) Act 1997, Travel Ta x Act, 1981).  Figures were not available on the 
amount of revenue genera ted from these taxes. 
(vii) Professional services 
209. St. Kitts and Nevis has made no GATS specific commitments on professional services.  
According to the authorities, no professions are specifically reserved for nationals.   St. Kitts and 
Nevis has not signed any mutual recognition agreem ents in the area of professional services  No 
information was available on any residence requireme nts, in one of the OECS countries or the region 
for any professions. 
210. Professional services are regulated by the Go vernment rather than by self-regulating 
professional bodies.  Very little information was av ailable regarding the processes for recognizing 
professional qualifications obtained abroad.  U nder the Licences on Business and Occupations Act 
(Act No. 6, 1972), as amended, certain professional service providers must obtain a licence from the 
Minister of Finance in order to practice.  These professional service providers include medical 
doctors, dentists, lawyers, architects, and accountan ts (public, certified and chartered).  Licences are 
valid for up to one year, and are renewable;  a pplication fees and annual renewal fees range from 
                                                      
60 Nevis Tourism Authority online information.   Viewed at:  http://www.nevisisland.com. 
61 Ten year income tax holiday for accommodation projects between 8 and 29 rooms; and a 15-year 
income tax holiday for accommodation projects of 30 rooms and above. 
62 The legislative basis of the hotel room ta x is The Hotel Accommodation and Restaurant 
(Amendment) Act No. 16, 1999. WT/TPR/S/190/KNA Trade Policy Review 
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EC$500 to EC$1,000 depending on the profession concerned.63  Certain professional service 
providers must also pay a consumption tax.64 
211. A number of steps are being taken at the nati onal and CARICOM levels to give effect to 
requirements of Chapter III of the Revised Treaty of  Chaguaramas, which relates to the right of 
establishment and to the provision of services with in CARICOM.  According to the authorities, a 
Draft Model Professionals Bill has been developed at the CARICOM level, which, inter alia , deals 
with the requirements and procedures for the regi stration and licensing of certain service providers, 
including professional service providers.  This s hould form the framework for laws for specific 
professions, to be transposed into national legislation. 
212. Some general legislation indirectly affects the market access of foreign profession service 
providers.  Under the Caribbean Community Skilled Na tionals Act, No. 12, 1997, a regional initiative 
to enhance the free movement of skilled persons, CARICOM nationals who ar e university graduates 
may enter and work in St. Kitts and Nevis without a work permit. 
213. St. Kitts and Nevis is a contracting party to the CARICOM Agreement Establishing the 
Council of Legal Education (see Overview Report).  As noted in Annex III to the agreement, the 
government of each of the participating territori es undertakes to recognize that any person holding a 
Legal Education Certificate fulfils the traini ng requirements for practice in its territory.65 
(viii) Other offshore services 
214. Offshore companies in St. Kitts are regulated by the Companies Act of 1996, and in Nevis 
they are regulated by the Nevis Business Cor poration Ordinance, 1984 ( as amended) (see section 
(iii)(b)).  Information was not available regarding the total number of offshore companies operating in 
St. Kitts and Nevis, the types of companies or the contribution of offshore activities to employment, investment, and government revenue. 
215. As reported at the time of the last Review of St. Kitts and Nevis companies providing betting 
and gaming services must be locally registered at the Financial Services Department of the Ministry 
of Finance.  The registered company's banking operati ons must be carried out through an account with 
a local commercial bank.  Once approval has been granted, work permits must be obtained for non-
nationals, and a registration fee of US$80,000 and an  annual licence fee of US$40,000 must be paid.  
The registered company must consult with the Ministry of Finance on the content of any advertisement placed on the Internet.  Nationals of St. Kitts and Nevis are not permitted to place bets 
on these gaming activities.  There is currently one offshore betting and gaming company in operation 
in St. Kitts and Nevis. 
 
                                                     
 
63 These fees are laid out in the St. Christopher and Nevis Statutory Rules and Orders, No. 9, 1997. 
64 Inland Revenue online informati on.  Viewed at:  http://www.ird .gov.kn/default.asp?PageIdentifier 
=117. 
65 CARICOM online information.  Viewed at:  http://www.caricom.org/jsp/secretariat/legal_ 
instruments/agreement_cle.jsp?menu=secretariat. Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 41 
  
  
REFERENCES 
 
Agritrade-CTA (2006), EC sugar-sector reform: implications for ACP countries .  Viewed at:  http:// 
agritrade.cta.int/en/resources/extended_comments/ eu_sugar_sector_reform_implications_for_acp_cou
ntries. 
 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/AEFR%202006%20-%20Final%20Document.pdf.  
ECTEL (2006), Annual Telecommunication Sector Review, 2006 .  Viewed at:  http://ectel.int/ectelnew 
-2/Telecoms%20Market%20Data/ Telecoms%20Sector%20Review%202006.pdf.  Government of St. Kitts and Nevis (2005) Prime Minister's Budget Address .  Viewed at:  
http://www.gov.kn/pdf/ Budget_Addr esses/2005_Budget_Address_20050222.pdf. 
 
Government of St. Kitts and Nevis (2007) Prime Minister's Address for 2007 Budget .  Viewed at:  
http://www.gov.kn/pdf/ Budget_Addr esses/2007_Budget_Address_20061212.pdf. 
 OECS Secretariat (2005), St . Kitts and Nevis:  Retraining the Sugar Workers , October.  Viewed at:  
http://www.oecs.org/Documents/Retraini ng%20St% 20Kitts%20Suga r%20Workers.pdf. 
 
UNCTAD (2005), Étude Sur Les Transports Maritimes, Geneva.  Vuletin, Guillermo, "The Size of the Informal Economy in the Caribbean" , Eastern Caribbean 
Currency Union:  Selected Issues , IMF Country Report No. 07/97, March 2007.  Viewed at:  
http://www.imf.org/external/ pubs/ft/scr/2007/cr0797.pdf. 
 World Bank (2007), St. Kitts and Nevis at a Glance .  Viewed at:  http://siteresources.worldbank.org/ 
INTOECS/Resources/SKN.AAG.pdf. 
  
APPENDIX TABLES 
 Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 45 
 
 
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 33 31 27 48 42 34 .. 
 (% of total) 
Total primary products 24.6 25.2 4.1 18.3 33.4 4.2 .. 
   Agriculture 24.6 25.1 4.0 18.2 33.3 4.2 .. 
      Food 24.6 25.0 4.0 17.7 31.5 4.1 . 
         1123 Beer made from malt (including ale, stout and 
         porter) 0.0 0.0 0.0 0.0 0.0 1.4 .. 
         1110 Non-alcoholic bevera ge, n.e.s. 3.2 1.6 1.1 1.0 1.1 1.3 .. 
         1124 Spirits 0.1 0.1 0.1 0.1 0.1 0.4 .. 
         0361 Crustaceans, fr ozen 0.7 0.4 0. 5 0.5 0.5 0.3 .. 
         0019 Live animals, n.e.s. 0.1 0.1 0.2 0.1 0.0 0.2 .. 
         0989 Food preparations, n.e.s. 0.1 0.0 0.0 0.0 0.0 0.1 . 
      Agricultural raw material 0.0 0.0 0.0 0.6 1.8 0.1 .. 
   Mining 0.0 0.1 0.1 0.1 0.0 0.0 .. 
      Ores and other minerals 0.0 0.0 0.0 0.0 0.0 0.0 .. 
      Non-ferrous metals 0.0 0.0 0.0 0.0 0.0 0.0 . 
      Fuels 0.0 0.1 0.0 0.0 0.0 0.0 .. 
Manufactures 75.4 74.8 95.9 81.7 66.6 95.8 .. 
   Iron and steel 0.0 0.0 0.0 0.0 0.0 0.0 .. 
   Chemicals 0.2 0.2 0.1 0.4 0.2 0.1 . 
   Other semi-manufactures 2.2 2.9 2.6 1.3 0.5 1.3 .. 
         6924 Reservoirs, tanks, vats of ir on, steel or aluminium 0.4 0.4 0.1 0.1 0.0 0.6 .. 
         6415 Paper and paperboard, uncoat ed, rolls or sheets 0.0 0.0 0.0 0.0 0.0 0.2 .. 
         6956 Knives, cutting blades, for m achines; plates, etc. 0. 5 0.0 0.1 0.0 0.0 0.1 . 
         6911 Iron or steel structures, tubes and the like 0.8 0.0 0.4 0.2 0.0 0.1 .. 
         6995 Miscellaneous articles of base metal 0.0 0.0 0.0 0.0 0.0 0.1 .. 
   Machinery and transport equipment 66.3 65.4 88.3 77.1 62.9 90.6 .. 
      Power generating machines 3.0 0.1 0.4 0.8 0.2 4.1 . 
         7165 Generating sets 0.3 0.0 0.0 0.4 0.2 4.0 .. 
         7169 Parts, n.e.s., for machines of 716 2.8 0.1 0.4 0.3 0.1 0.1 .. 
      Other non-electrical machinery 0.5 0.6 2.4 2.7 2.9 2.2 .. 
         7232 Mechanical shovels, etc ., self-propelled 0.0 0.0 0.5 1.2 1.2 1.1 . 
         7231 Bulldozers, angledozers, etc., self-propelled 0.0 0.0 0.0 0.3 0.0 0.6 .. 
         7283 Other mineral working machines 0.1 0.0 0.5 0.0 0.0 0.1 .. 
         Agricultural machinery and tractors 0.0 0.0 0.0 0.0 0.0 0.0 .. 
      Office machines & telecommuni cation equipment 1.1 4.5 4.7 0.1 0.5 2.4 . 
         7643 Radio or television tran smission apparatus 0.0 0.0 0.0 0.0 0.0 0.9 .. 
         7649 Parts and accessories for appa ratus of division 76 0.2 3.5 4.5 0.0 0.0 0.6 .. 
         7763 Diodes, transistors, etc. 0.0 0.0 0.0 0.0 0.0 0.5 .. 
         7642 Microphones and stands thereof; loudspeakers 0.7 0.6 0.0 0.0 0.4 0.1 . 
         7641 Electrical apparatus for lin e telephony/telegraphy 0.0 0.0 0.0 0.0 0.0 0.1 .. 
      Other electrical machines 57.7 58.8 79.6 73.1 58.5 80.7 .. 
         7725 Switches, relays, fuses etc. for a voltage < 1000 V 52.8 56.1 65.7 38.1 40.6 53.3 .. 
         7786 Electrical capacitors 4.7 2.5 13.7 34.7 16.8 27.1 . 
      Automotive products 0.9 1.0 1.0 0.2 0.5 0.5 .. 
         7812 Motor vehicles for the transport of persons, n.e.s. 0.6 0.8 0.5 0.1 0.4 0.2 .. 
      Other transport equipment 3.1 0.4 0.2 0.1 0.3 0.7 .. 
   Textiles 0.1 0. 0 0.0 0.0 0.0 0.0 . 
   Clothing 2.1 1.6 1.1 0.3 0.2 0.1 .. 
   Other consumer goods 4.5 4.7 3.7 2.5 2.8 3.7 .. 
         8928 Printed matter, n.e.s. 2.8 3.1 1.1 1.6 1.2 1.9 .. 
         8997 Basketware, etc., n.e.s., brooms, brushes, etc. 0.2 0.7 0.4 0.4 0.6 0.9 . 
         8921 Printed books, pamphlets, maps, etc. 0.1 0.3 0.2 0.1 0.2 0.3 .. 
 
.. Not available. 
 
Source:  UNSD, Comtrade database (SITC Rev.3). 
 WT/TPR/S/190/KNA Trade Policy Review 
Page 46 
 
 
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 196 189 201 205 182 210 .. 
 (% of total) 
Total primary products 29.9 28.2 24.1 27.8 32.0 29.6 .. 
   Agriculture 21.6 19.4 18.3 18.5 21.3 20.0 .. 
      Food 19.0 17.4 15.6 16.1 19.5 18.5 .. 
         0123 Poultry, meat and offal 1.5 1.6 1.5 1.5 1.9 2.0 .. 
         0989 Food preparations, n.e.s. 1.4 1.9 1.3 1.5 1.9 1.5 .. 
         1110 Non-alcoholic bevera ge, n.e.s. 1.6 1.4 1.2 1.2 1.1 1.4 .. 
         0545 Other fresh or chille d vegetables 0.8 0. 7 0.6 0.6 0.6 0.6 .. 
         1124 Spirits 0.6 0.4 0.4 0.4 0.5 0.6 .. 
      Agricultural raw material 2.5 2.0 2.7 2.3 1.9 1.5 .. 
         2482 Wood of coniferous, sawn of a thickness > 6 mm 1.0 0.7 0.9 0.8 1.0 0.6 .. 
         2483 Wood, coniferous (incl. for pa rquet flooring) shaped 0.9 0.8 0.4 0.5 0.3 0.5 .. 
   Mining 8.3 8.8 5.9 9.4 10.6 9.6 .. 
      Ores and other minerals 0.2 0.8 1.0 0.4 0.3 0.2 .. 
      Non-ferrous metals 0.5 0.5 0.4 0.3 0.4 0.6 .. 
      Fuels 7.6 7.5 4.5 8.7 9.9 8.8 .. 
         3341 Motor gasolene, light oil 2.2 1.8 3.5 7.7 3.7 2.6 .. 
         3425 Butanes, liquefied 0.5 1.0 0.4 0.4 0.6 0.5 .. 
Manufactures 70.1 71.8 75.8 72.2 67.9 70.3 .. 
   Iron and steel 2.4 3.6 2.6 4.8 2.3 2.2 .. 
         6795 Tube or pipe of iron/steel 0.6 0.6 0.6 0.6 0.6 0.7 .. 
         6741 Flat-rolled products, iron/st eel, zinc plated 0.3 0.4 0.2 0.2 0.3 0.3 .. 
   Chemicals 7.5 8.1 8.0 6.9 6.9 6.9 .. 
         5429 Medicaments, n.e.s. 0.8 0.8 0.8 0.8 0.7 1.3 .. 
         5334 Paints and varnishes; plasti cs in solution; etc. 1.1 0.9 1.0 0.9 0.8 0.8 .. 
         5542 Surface-active agents (excl. soap) 0.8 0. 7 0.6 0.7 0.8 0.7 .. 
   Other semi-manufactures 15.5 17.0 17.0 14.7 14.4 14.7 .. 
         6996 Articles iron or steel, n.e.s. 1.3 1.2 1.6 1.6 1.7 2.0 .. 
         6612 Portland cement and similar hydraulic cements 1.8 1.7 1.5 1.2 1.5 1.5 .. 
   Machinery and transport equipment 28.1 27.5 29.8 28.6 28.4 31.2 .. 
      Power generating machines 1.2 2.2 0.9 0.8 1.7 2.5 .. 
         7165 Generating sets 0.3 1.2 0.2 0.1 0.6 1.2 .. 
      Other non-electrical machinery 3.8 6.3 6.6 4.4 5.1 4.9 .. 
         7232 Mechanical shovels, etc ., self-propelled 0.2 0.6 0.9 0.3 0.1 0.7 .. 
         7415 Air conditioning machin es, and parts 0.6 0. 7 1.1 0.5 0.4 0.5 .. 
         Agricultural machinery and tractors 0.2 0.3 0.5 0.4 0.2 0.3 .. 
      Office machines & telecommuni cation equipment 7.8 5.0 5.9 6.1 6.9 8.2 .. 
         7643 Radio or television tran smission apparatus 0.7 0.1 0.1 0.1 1.2 1.9 .. 
         7641 Electrical apparatus for lin e telephony/telegraphy 1.4 0.4 1.2 1.0 0.8 1.3 .. 
         7763 Diodes, transistors, etc. 1.1 1.0 1.0 1.1 1.0 1.2 .. 
      Other electrical machines 9.2 8.2 10.1 10.4 9.0 8.3 .. 
         7725 Switches, relays, fuses etc. for a voltage not exceeding 1000 V 1.7 1.5 1.7 1. 6 2.0 1.9 .. 
         7731 Insulated wire, cable etc.; optical fibre cables 1.3 1.4 1.8 1.9 1.1 1.5 .. 
      Automotive products 5.3 4.8 5.0 5.8 4.9 6.3 .. 
         7812 Motor vehicles for the transport of persons, n.e.s. 3.5 2.6 3.6 3.5 3.5 3.9 .. 
         7831 Public-transport type passe nger motor vehicles 0.5 0.4 0.4 0.7 0.2 0.8 .. 
      Other transport equipment 0.8 0.9 1.2 1.0 0.7 0.9 .. 
   Textiles 1.1 0. 9 1.1 1.9 1.0 0.8 .. 
   Clothing 2.0 1.9 1.6 1.8 1.5 1.5 .. 
   Other consumer goods 13.5 12.8 15.8 13.6 13.4 13.0 .. 
         8939 Plastic articles, n.e.s. 0.9 1.1 1.2 1.2 1.2 1.8 .. 
         8215 Furniture, n.e.s., of wood 1.2 0.9 3.3 2.1 1.3 1.4 .. 
         8973 Jewellery of gold, silver or platin um metals (except watches) 0.0 0.0 0.0 0.0 0.2 1.3 .. 
         8931 Plastics containers, stoppe rs, lids, etc. 1.3 1.1 1.1 1.1 1.2 1.2 .. 
Other 0.0 0.0 0.0 0.0 0.1 0.0 .. 
 
.. Not available. 
 
Source:  UNSD, Comtrade database (SITC Rev.3). Saint Kitts and Nevis WT/TPR/S/190/KNA 
 Page 47 
 
 
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 33 31 27 48 42 34 .. 
 (% of total) 
  America 77.6 75.8 98.1 82.5 74.1 96.8 .. 
    United States 66.2 71.2 93.5 78.5 70.0 91.9 .. 
    Other America 11.5 4.6 4.6 4.1 4.1 4.9 .. 
      Canada 0.2 0.1 0.4 0.8 0.3 0.0 .. 
      Trinidad and Tobago 2.6 0.4 0.1 0.1 1.5 2.0 .. 
      Netherlands Antille s 1.1 0.8 0.9 1.2 1.1 0.8  
      St Vincent and the Grenadines 0.2 0.1 0.1 0.0 0.0 0.3 .. 
      St Lucia 2.0 0.2 0.1 0.1 0.0 0.3 .. 
      Montserrat 0.5 0.4 0.3 0.3 0.1 0.3 .. 
      Antigua and Barbuda 0.5 0.3 0.1 0.3 0.1 0.3 .. 
      Grenada 0.0 0.1 0.1 0.0 0.0 0.3  
      Anguilla 0.5 0.4 0.5 0.2 0.2 0.2 .. 
      Dominica 1.5 1.3 1.2 0.6 0.4 0.1 .. 
      Barbados 0.8 0.1 0.4 0.2 0.2 0.1 .. 
      British Virgin Isla nds 1.5 0.3 0.3 0.2 0.2 0.1 .. 
  Europe 21.3 23.8 1.2 17.2 24.3 3.0  
    EC(25) 21.3 23.8 1.2 17.2 24.3 3.0 .. 
      United Kingdom 20.8 23.6 0.9 17.0 24.2 1.9 .. 
      Sweden 0.0 0.0 0.0 0.0 0.0 0.9 .. 
      France 0.4 0.0 0.2 0.1 0.1 0.2 .. 
    EFTA 0.0 0.0 0.0 0.0 0.0 0.0  
    Other Europe 0.0 0.0 0.0 0.0 0.0 0.0 .. 
  Africa 0.0 0.0 0.0 0.0 0.0 0.0 .. 
  Middle East 0.0 0.0 0.0 0.0 0.0 0.0 .. 
  Asia 0.8 0.2 0.5 0.1 1.5 0.2 .. 
    China 0.4 0.0 0.0 0.0 0.0 0.0  
    Japan 0.3 0.2 0.5 0.1 1.5 0.2 .. 
    Six East Asian Traders 0.0 0.0 0.0 0.0 0.0 0.0 .. 
    Other Asia 0.0 0.0 0.0 0.0 0.0 0.0 .. 
  Other 0.2 0.2 0.2 0.2 0.0 0.0 .. 
      Areas n.e.s 0.2 0.2 0.2 0.1 0.0 0.0  
M e m o r a n d u m :         
    EC(15) 21.3 23.8 1.2 17.2 24.3 3.0 .. 
    ASEAN 0.0 0.0 0.0 0.0 0.0 0.0 .. 
    APEC 67.1 71.5 94.4 79.3 71.9 92.1 .. 
    MERCOSUR 0.0 0.0 0.0 0.0 0.0 0.0 .. 
 
.. Not available. 
 
Source:  UNSD, Comtrade database (SITC Rev.3). WT/TPR/S/190/KNA Trade Policy Review 
Page 48 
 
 
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 196 189 201 205 182 210 .. 
 (% of total) 
  America 86.0 83.2 86.3 83.6 84.9 84.4 .. 
    United States 56.9 50.5 51.2 53.4 58.0 57.9 .. 
    Other America 29.1 32.7 35.1 30.2 26.9 26.5 .. 
      Canada 7.6 11.4 17.7 9.2 3.6 2.2 .. 
      Trinidad and Tobago 12.8 12.3 8.9 13.0 14.1 14.1 .. 
      Barbados 2.5 2.2 2.4 2.3 2.7 2.8 .. 
      Netherlands Antille s 0.8 0.9 0.9 0.9 1.2 2.1 .. 
      Jamaica 0.9 0.9 0.9 0.8 0.8 0.8 .. 
      Grenada 0.7 0.7 0.7 0.9 0.8 0.6 .. 
      Dominican Rep. 0.2 0.3 0.3 0.3 0.3 0.5 .. 
      Brazil 0.2 0.3 0.3 0.4 0.3 0.5 .. 
      Antigua and Barbuda 0.5 0.5 0.4 0.3 0.4 0.4 .. 
      Guyana 0.1 0.1 0.2 0.2 0.2 0.4 .. 
  Europe 8.8 12.9 8.6 11.6 10.6 9.7 .. 
    EC(25) 8.6 12.6 8.2 11.5 10.3 9.3 .. 
      United Kingdom 6.1 8.2 4.7 9.1 7.7 6.3 .. 
      Sweden 0.0 0.0 0.0 0.0 0.0 1.0 .. 
      The Netherlands 0.5 1.3 0.3 0.3 0.2 0.4 .. 
      France 0.7 1.1 0.4 0.6 0.6 0.4 .. 
      Germany 0.4 0.8 0.4 0.4 1.0 0.4 .. 
    EFTA 0.2 0.2 0.1 0.1 0.2 0.3 .. 
      Switzerland 0.1 0.1 0.0 0.1 0.2 0.3 .. 
    Other Europe 0.0 0.0 0.2 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 0.1 0.1 0.0 0.0 0.0 0.1 .. 
  Middle East 0.0 0.0 0.0 0.0 0.0 0.0 .. 
  Asia 4.7 3.5 4.7 4.4 4.5 5.8 .. 
    China 0.1 0.2 0.4 0.5 0.6 0.8 .. 
    Japan 3.7 2.5 3.6 3.2 3.2 3.8 .. 
    Six East Asian Traders 0.4 0.5 0.4 0.4 0.4 0.6 .. 
      Korea, Rep. of 0.1 0.2 0.2 0.1 0.1 0.2 .. 
      Thailand 0.0 0.1 0.0 0.0 0.0 0.2 .. 
      Hong Kong, China 0.0 0.1 0.0 0.0 0.0 0.1 .. 
      Chinese Taipei 0.1 0.2 0.1 0.1 0.1 0.1 .. 
    Other Asia 0.5 0.3 0.3 0.4 0.3 0.5 .. 
      India 0.1 0.1 0.1 0.1 0.1 0.2 .. 
      Indonesia 0.1 0.1 0.1 0.1 0.1 0.2 .. 
  Other 0.3 0.3 0.3 0.3 0.0 0.0 .. 
Memorandum:       .. 
    EC(15) 8.6 12.6 8.2 11.5 10.3 9.3 .. 
    ASEAN 0.2 0.2 0.2 0.2 0.2 0.4 .. 
    APEC 69.2 65.5 73.7 67.1 66.4 66.0 .. 
    MERCOSUR 0.3 0.3 0.4 0.4 0.4 0.6 .. 
      Brazil 0.2 0.3 0.3 0.4 0.3 0.5 .. 
      Argentina 0.1 0.0 0.0 0.1 0.0 0.1 .. 
 
.. Not available. 
 
Source:  UNSD, Comtrade database (SITC Rev.3). 
 
__________