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) (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 exfactory 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.
COLOMBIA - CARICOM AGREEMENT (1994)
Grenadian-made products can be exported
to Colombia under a recent ColombianCARICOM 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.
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
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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.
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 AGREEMENTS
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
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 nontariff barriers to trade, the establishment of
a system of rules of origin, and harmonization
of technical, sanitary and phyto-sanitary
measures.
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.
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.
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.
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
CARIBBEAN SINGLE MARKET AND ECONOMY (CSME)
The CARICOM Single Market and Economy
is an arrangement which allows CARICOM
goods,
ser vice, people a n d
capital to move throughout the community
without restrictions to achieve a single large
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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:
1. The pursuit of a common trade policy
provision for the coordination of efforts to
develop all of the productive sectors
2. A common competition policy
3. A common approach to consumer
protection, dumping, subsidies and
business development
4. A regional transportation policy
5. Fiscal harmonization
6. A common approach to market
development, macroeconomic policy and
convergence
7. Special measures to treat the needs of
disadvantaged sectors, regions and
countries
8. The creation of new institutional
arrangements to support and regulate
cross border economic liberalization and to
resolve disputes
CSME MEMBER ST ATES
• 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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