A variety of trade agreements established between Grenada and countries overseas open the door for business investors to a world of lucrative markets.
Caribbean Basin Initiative (CBI) (1993)
Products made in Grenada and exported to the U.S.A. can enjoy duty free entry under the provisions of the Caribbean Basin Initiative (CBI). At least 35% of the appraised value of manufactured articles must be derived in Grenada. This can be reduced to 20% as U.S. made components may account for up 15% of the value added.
Products made in Grenada can be exported to Canada free of customs duties under the CARIBCAN agreement. The products must either be wholly produced or manufactured in Grenada with a minimum of 60% of the ex-factory price of the product originating in the Commonwealth Caribbean or Canada.
Grenada-based manufacturers have preferential access to the regional market of over 5 million people in the Caribbean Common Market (CARICOM). Locally produced or manufactured goods may be imported duty free into any of the fourteen (14)CARICOM member states, subject to certain value added criteria as specified under the CARICOM Rules of Origin.
Venezuela - Caricom Agreement (1992)
Grenadian-made products can be exported to Venezuela under this recent agreement, without attracting any customs duties. Goods should be wholly produced or at least 50% of the export value of the products should be local value added, or should have undergone a process of substantial transformation, i.e. the final product should be classified under a different tariff heading from that of the material used to manufacture the said product.
Colombia - Caricom Agreement (1994)
Grenadian-made products can be exported to Colombia under a recent Colombian-CARICOM agreement without attracting any customs duties. Goods should be wholly produced or at least 60% of the export value of the product should be local value added, or should have undergone a process of substantial transformation, i.e. the final product is classified under a different tariff heading from that of the material used to manufacture the said product.
Dominican Republic - Caricom Agreement (2001)
This agreement allows the creation of a Free Trade Area, which includes trade in goods and services, investment and economic co-operation, with the objective of strengthening the commercial and economic relations between the two (2) parties.
Canada - Caricom Agreement (1979)
This agreement seeks to establish a Joint Working Group to prepare a Framework Agreement on the scope and nature of a more mature trade and economic agreement in enhancement of existing arrangements and culminating in a possible ‘Free Trade Agreement’. Caricom’s objectives in an enhanced trade arrangement with Canada are to: (i) preserve, build on and broaden the scope of the current instruments of trade and economic co-operation; (ii) deepen disciplines to improve market access for CARICOM exports of goods and services; (iii) broaden the country coverage to include all CARICOM states (iv) stimulate increased flows of Canadian investment into the region and (v) to provide a comprehensive framework for the development of co-operation initiatives.
Cuba - Caricom Trade and Economic Co-operation Agreement (2000)
This agreement was inspired by the purposes of the Association of Caribbean States to promote an expanded economic space for regional trade and investment and to gradually and progressively foster economic integration including the liberalization of trade, investment, transportation and other related areas.
The agreement allows for the promotion and expansion of trade in goods and services originating in the territories of the Parties by means of inter alia, free access to the markets of the Parties, elimination of non-tariff barriers to trade, the establishment of a system of rules of origin, and harmonization of technical, sanitary and phyto-sanitary measures.
Costa Rica - Caricom Agreement (2004)
Under this agreement, Costa Rica will grant free access to goods originating from LDC members of CARICOM which includes Grenada. It provides for the free trade or preferential access for a wide range of products. However, the LDC’s are not required to grant free market access of imported goods from Costa Rica.
Economic Partnership Agreements (EPAs), (2008)
The CARIFORUM-EC EPA is an agreement in the international trading system that promotes sustainable development, builds a regional market among developing countries and helps eliminate poverty.
The EPA removes all tariffs and quotas on Caribbean exports to the EU . The only exception is sugar and rice, which will be liberalized over short periods. Grenada and other Caribbean countries will now benefit from improved 'rules of origin' that will support the development of industries that import materials to make goods for onward export to Europe. This is important for industries such as processed food or fisheries that might import raw materials from outside the Caribbean.
Bilateral Investment Agreements established between Grenada and the following countries are designed to encourage and protect international investments and to ensure that investors receive fair, equitable, and nondiscriminatory treatment
Investment Protection and Promotion Agreement with the United Kingdom
The agreement encourages British investor confidence by setting high standards of investor protection applicable in international law. Key elements include provisions for equal and non-discriminatory treatment of investors and their investments, compensation for expropriation, transfer of capital and returns and access to independent settlement of disputes.
Reciprocal Encouragement and Protection of Investment with the USA
The agreement protects U.S. investors against performance requirements, restrictions on transfers, arbitrary expropriation and sets forth procedures for the settlement of disputes. By providing a more open and secure environment for investment, it also promotes private sector development.
Caribbean Single Market and Economy (CSME)
The CARICOM Single Market and Economy is an arrangement which allows CARICOM goods, service, people and capital to move throughout the community without restrictions to achieve a single large economic space and provide for one economic and trade policy. This arrangement was implemented by the More Developed Countries and Belize on 1st of January 2006 and by O.E.C.S. countries on the 1st of July 2006.
The CSME was envisioned to embody the notion of a Single Caribbean Economy based upon the pursuit of unified and harmonized economic, fiscal and monetary policies.
The CSME introduces several new areas into the integration process including:
- The pursuit of a common trade policy provision for the coordination of efforts to develop all of the productive sectors
- A common competition policy
- A common approach to consumer protection, dumping, subsidies and business development
- A regional transportation policy
- Fiscal harmonization
- A common approach to market development, macroeconomic policy and convergence
- Special measures to treat the needs of disadvantaged sectors, regions and countries
- The creation of new institutional arrangements to support and regulate cross border economic liberalization and to resolve disputes
- Antigua and Barbuda
- The Bahamas
- St. Kitts and Nevis
- St. Lucia
- St. Vincent and the Grenadines
[Grenada Trade Informtion Portal]