Treaties
Treaties
Trade
Agreements
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)
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.
CARIBCAN
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.
CARICOM
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
Grenadian-made products can be exported to
Venezuela under this recent agreement, without
attracting any customs duties. Goods should be
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import raw materials from outside
the Caribbean.
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.
BILATERAL AGREEMENTS
COLOMBIA - CARICOM AGREEMENT 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
Grenadian-made products can be exported to
Colombia under a recent Colombian- CARICOM
agreement without attractingany 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. 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.
DOMINICAN REPUBLIC - CARICOM AGREEMENT
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
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
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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
COOPERATION AGREEMENT
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
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 (EPA’S),
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
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
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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
CSME MEMBER STATES
• Antigua and Barbuda
• The Bahamas
• Barbados
• Belize
• Dominica
• Grenada
• Guyana
• Haiti
• Jamaica
• Montserrat
• St. Kitts and Nevis
• St.Lucia
• St Vincent and the Grenadines
• Suriname BG
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