St Vincent and the Grenadines

Location : Caribbean, islands between the Caribbean Sea and North Atlantic Ocean, north of Trinidad and Tobago 

Capital : Kingstown

Languages : English (official) 

Area : 389 sq km ( Saint Vincent 344 sq km)

Land Use : arable land: 17.95%; permanent crops: 17.95%; other: 64.1% (2001)

Natural Resources : hydropower, cropland

Population : 117,534 (July 2005 est.).

Labour force : 67,000 (1984 est.) 

Labour force participation rate : 57% of population (1984 est.)

International Organisation participation : ACP, C, Caricom, CDB, FAO, G-77, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFAD, IFRCS, ILO, IMF, IMO, Interpol, IOC, ITU, MIGA, OAS, OECS, OPANAL, OPCW, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL, WFTU, WHO, WIPO, WTO

GDP per capita : U$2,900 (2002 est.)

GDP Real Growth Rate : 0.7% (2002 est.)

GDP sectoral composition : agriculture: 10%; industry: 26%; services: 64% (2001 est.)

Industries: food processing, cement, furniture, clothing, starch

Industrial production growth rate : -0.9% (1997 est.) 

Agriculture - products : bananas, coconuts, sweet potatoes, spices, small numbers of cattle, sheep, pigs, goats, fish

Exports : U$38 million f.o.b. (2002 est.)

Exports - commodities : bananas 39%, eddoes and dasheen (taro), arrowroot starch; tennis racquets

Exports - partners : UK 33.5%, Barbados 13.1%, Saint Lucia 11.5%, Trinidad and Tobago 9.9%, Antigua and Barbuda 8.3%, US 5.3%, Grenada 5.3%, Dominica 4.1% (2004)

Imports : U$ 174 million f.o.b. (2002 est.)

Imports - commodities : foodstuffs, machinery and equipment, chemicals and fertilizers, minerals and fuels

Imports - partners : US 37.5%, Trinidad and Tobago 21.3%, UK 10.5% (2004)

QUALITATIVE TRADE PROFILE

St. Vincent and the Grenadines' main trade policy objectives, as presented in the Medium Term Economic Strategy Paper, are to increase the level of exports, to respond effectively to the requirements of international and regional trading arrangements, to develop a strategy to negotiate trade treaties and agreements, and to improve access to export markets. The Paper presents a number of action plans to achieve these objectives, including: collaboration within the OECS to develop a joint negotiating strategy towards the FTAA, the WTO and Lomé; strengthening the institutional capacity to address trade and development issues; and strengthening the inter-ministerial committee on trade matters.

St. Vincent and the Grenadines applies the CARICOM Common External Tariff (CET). The tariff generally applies a top rate of 20% for industrial goods and 45% for agricultural products. The structure of the tariff is based on the concept of the economic use of the goods, differentiated between inputs and final goods. Inputs are identified as primary, intermediate or capital goods, while for final goods, distinction is made between basic and non-basic categories of goods. Certain foodstuffs and other supplies are classified as basic, while all other final goods are non-basic. In addition to import duties, there is a customs service charge of 4% applied on all imports, including those from preferential partners.

All tariff lines were bound during the Uruguay Round. Agricultural products were bound at a ceiling level of 100% with some exceptions above that rate, which range between 107% and 250%. Other charges on imports, such as the customs service charge, were not bound during the Uruguay Round. Industrial products were bound at a uniform rate of 50% with over 200 exceptions at the HS four-, six- or seven-digit levels. A large number of products subject to binding exceptions are also subject to import licensing requirements. A list of some 90 agricultural products was bound at rates higher than 100%

The simple average MFN tariff in 2000 was 10.9%, or 14.9% including the customs service charge. The average MFN tariff for agricultural products was 18% (22%), and 9.6% (13.6%) for non-agricultural products. Duty-free treatment is accorded to 7.2% of tariff lines for MFN imports. Some two-thirds of lines are subject to rates lower or equal to 15%. Some 8% of lines are subject to rates of 25% or higher. The highest rate, 40%, is generally applied on competing agricultural or agri‑industry products. Duty-free lines are still subject to the customs service charge, so the minimum import duty practically applied is 4%. Almost one third of tariff lines on agricultural products are subject to a rate of 40%.

 INSTITUTIONAL FRAMEWORK 

The Ministry of Trade, Industry and Consumer Affairs is responsible for trade policy formulation and implementation. The Ministry of Finance, Planning and Development is responsible for tariff policy, for all fiscal policy issues, including administration of the Revenue Board Act. It is also responsible for policy and regulations governing financial services, and administers bilateral investment treaties that contain incentive schemes. Within the Ministry, the Customs Department administers the Customs and General Consumption Tax Acts. Other ministries involved in foreign trade include the Ministries of: Agriculture and Labour; Justice (responsible for copyright and patents); Communications and Works; and Foreign Affairs, Tourism, and Information.

As a member of OECS and CARICOM, St. Vincent & the Grenadines is committed to a regionally coordinated external trade policy for the group. It therefore coordinates closely with the relevant regional agencies on trade policy matters. Policy coordination, including aspects of trade policy, takes place at the Economic Advisory Council, which has the Ministry of Finance, Planning and Development as its Secretariat. The Council has inter-ministerial participation, as well as participation by the private sector (Chamber of Commerce), trade unions, and other interest groups. The authorities noted that there are plans to restructure the Ministry of Trade to follow more closely WTO issues. In this respect, the Ministry envisages the creation of intellectual property rights and anti-dumping units.

 TRADE AGREEMENTS

Bilateral

St. Vincent and the Grenadines has bilateral trade agreements with Colombia, Costa Rica, Cuba, Dominican Republic, and Venezuela through the Caribbean Community (CARICOM). It is a beneficiary of the General System of Preferences schemes of Australia, Bulgaria, Canada, the Czech Republic, the European Union, Hungary, Japan, New Zealand, Norway, Poland, Russia, the Slovak Republic, Switzerland, and the United States. The Caribbean Basin Initiative (CBI) provides for duty-free access to the U.S. market for a range of St. Vincent and the Grenadines' exports. Exports from St. Vincent and the Grenadines also enjoy preferential access to the Canadian market through the Canadian Programs for Commonwealth Caribbean Trade, Investment and Industrial Cooperation (CARIBCAN). Through CARICOM, St. Lucia is currently negotiating a free trade agreement to replace CARIBCAN as well as a free trade agreement with MERCUSOR.

Regional

St. Vincent and the Grenadines participates in a number of regional and preferential trade arrangements, namely:  the Caribbean Community (CARICOM) and the Organization of Eastern Caribbean States (OECS).Through the latter it is a part of a fully established monetary union with the other states of the Eastern Caribbean. St. Vincent and the Grenadines is currently negotiating an Economic Partnership Agreement with the EU through the CARIFORUM configuration. It is also involved in negotiations to form the hemispheric Free Trade Area of the Americas.

Multilateral

St. Vincent and the Grenadines is a founding member of the WTO and applies at least MFN treatment to all its trading partners. It has GATS commitments in 8 sectors.

 NEED PRIORITIES  

Priority areas for St. Vincent and the Grenadines are; technical assistance in market access, agriculture, rules of origin, TBT, TRIPS, services; incorporation of WTO Agreements into domestic legislation especially in the areas of anti-dumping and IPRs; assistance in the identification of technical needs, assistance in the development of negotiation strategies; impact studies of trade liberalisation; institution-building and training for negotiators.

Source: Commonwealth Yearbook 2005, World Fact Book, WTO Secretariat