Treaties
Trade Agreements
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. Caribcan (1986) 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 (1973) 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.
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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 (EPA’s), (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
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-
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