Grenada

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

Capital : Saint George's

Languages : English (official), French patois 

Area : 344 sq km

Land Use : arable land: 5.88%; pe rmanent crops: 29.41%; other: 64.71% (2001)

Natural Resources : timber, tropical fruit, deepwater harbours

Population : 89,502 (July 2005 est.).

Labour force : 42,300 (1996) 

Labour force participation rate : 47.26% of population (2000)

Population below poverty line : 32% (2000)

International Organisation participation : ACP, C, Caricom, CDB, FAO, G-77, IBRD, ICAO, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, ISO (subscriber), ITU, LAES, MIGA, NAM, OAS, OECS, OPANAL, OPCW (signatory), UN, UNCTAD, UNESCO, UNIDO, UPU, WHO, WIPO, WTO 

GDP per capita : U$5,000 (2004 est.)

GDP Real Growth Rate : 4.01% (2004 est.)

GDP sectoral composition : agriculture: 7.7%; industry: 23.9%; services: 68.4% (2000)

Industries: food and beverages, textiles, light assembly operations, tourism, construction 

Industrial production growth rate : 0.7% (1997 est.)

Agriculture - products : bananas, cocoa, nutmeg, mace, citrus, avocados, root crops, sugarcane, corn, vegetables

Exports : U$46 million (2002 est.)

Exports - commodities : bananas, cocoa, nutmeg, fruit and vegetables, clothing, mace

Exports - partners : Saint Lucia 11.8%, US 11.6%, Netherlands 8.1%, Antigua and Barbuda 8%, Germany 7.7%, Saint Kitts and Nevis 7.2%, Dominica 7.2%, France 4.5% (2004)

Imports : U$208 million (2002 est.)

Imports - commodities : food, manufactured goods, machinery, chemicals, fuel

Imports - partners : US 27.7%, Trinidad and Tobago 25.4%, UK 5.2% (2004)

QUALITATIVE TRADE PROFILE  

Grenada applies the CARICOM Common External Tariff (CET). It imposes zero tariffs on imports from other CARICOM countries, once a certificate of origin has been produced. 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.

Although Grenada has been moving towards trade liberalization in recent years, a wide array of measures managing trade are still in force. A number of products are subject to import licensing requirements, and the licensing regime favours imports from CARICOM partners especially countries from OECS. Also, some products, such as fruit and vegetables, wheat flour products, beer, cigarettes, and beverages are subject to priority sourcing from members of OECS and less developed CARICOM countries, while others, such as whole chicken, high proof spirits, and galvanized sheets are restricted. For products such as paint and varnish, consumer durables like refrigerators, freezers, and stoves, there are priority sourcing requirements from CARICOM. Minimum import prices are still used for customs valuation purposes.

Grenada bound all tariff lines during the Uruguay Round. Industrial goods were bound at a uniform rate of 50%. Agricultural products were bound at a ceiling level of 100%, with an implementation period of six years

INSTITUTIONAL FRAMEWORK 

The Ministry of Finance and Trade is in charge of tariffs, trade facilitation, export promotion, import and export licensing, industrial development, investment incentives, and state trading. The Ministry of Agriculture, Forestry and Fisheries is involved in Agriculture and Sanitary and Phytosanitary Measures (SPS); the Ministry of Legal Affairs is involved with intellectual property issues and the Grenada Bureau of Standards with Technical barriers to Trade (TBT).

The Trade Unit within the Ministry of Trade and Finance periodically reviews and assesses Grenada's trade policies. This is carried out in collaboration with the Multipartite Committee, which comprises the Grenada Chamber of Industry and Commerce, the Trade Union Council, and other non-governmental organizations and parties. The Trade Unit holds consultations with the Multipartite Committee and other interested parties whenever new trade policies are to be instituted or amended.

Grenada also coordinates a number of trade policy issues with other OECS and CARICOM member states, especially through the Caribbean Regional Negotiating Machinery in the case of the latter. This is also true for investment issues, foreign affairs, services, and competition policy. Agricultural policies are coordinated to some extent with other CARICOM member States under the Regional Transformation Programme (RTP), and a greater degree of coordination is anticipated as the CARICOM Single Market consolidates, as outlined in Protocol V on Agricultural Policy. The authorities also expect deepening regional integration to be instrumental in fostering increased coordination of policies at the OECS and CARICOM levels, resulting in a strengthening of the institutional framework for policy formulation and implementation in the region and in Dominica, and more effective use of limited resources.  

TRADE AGREEMENTS

Bilateral

Grenada 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, Canada, the European Union, Japan, New Zealand, and the United States. The Caribbean Basin Initiative (CBI) provides for duty-free access to the U.S. market for a range of Grenada's exports. Exports from Grenada also enjoy preferential access to the Canadian market through the Canadian Programs for Commonwealth Caribbean Trade, Investment and Industrial Cooperation (CARIBCAN). Through CARICOM, Grenada is currently negotiating a free trade agreement to replace CARIBCAN as well as a free trade agreement with MERCUSOR.

Regional

Grenada 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. Grenada 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

Grenada is a WTO Member and applies at least MFN treatment to all its trading partners. It has GATS commitments in 19 sectors.

NEED PRIORITIES

Grenada 's need priorities are; assistance with the incorporation of WTO obligations into domestic legislation; assistance with initiating notifications to the WTO and stakeholder sensitisation.

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