Dominica is the least stable and impoverished of the Windward Islands. Agriculture products, particularly bananas, are the mainstay of the country’s income. The island’s very hilly terrain prevents much farming. Cyclones are also a threat to the area. Nonetheless, farming is Dominica’s primary source of jobs and money, and it is far more significant than it is on other Caribbean islands.
Despite diversifying its economy, Dominica remains reliant on agricultural exports, particularly the vulnerable banana sector. Agricultural poverty is a major issue, and the banana issue and environmental catastrophes have hampered the latest economic progress. Dominica is heavily reliant on the commercial agreements it has negotiated with several African countries.
Trade Agreements
Dominica has WTO Multilateral Arrangements, and international trade pacts with CARICOM, CARICOM-Venezuela, and CARIFORUM-EU.
All these trade agreements are mentioned in detail below:
World Trade Organization
Dominica has been a participant in the WTO since January 1, 1995, and in the GATT since April 20, 1993. Dominica is a member of the World Trade Organization (WTO) and has multinational trade treaties with other countries.
The World Trade Organization (WTO) Treaty is built on the idea of lowering trade restrictions and enforcing fair and equitable regulations. The WTO’s basic concepts comprise the most favored nation policy, national service notion, generalized ban notion, and tax rules. The WTO Accords make significant deviations from the aforementioned fundamental principles.
To reinforce GATT standards and boost agricultural trading, the Agriculture Treaty contains explicit and obligatory promises made by WTO Signatory countries in marketplace entry, domestic assistance, and export subsidization.
The WTO also involves an obligation on global procedures for the development, approval, and execution of hygienic and biosecurity regulations to avoid such policies from being exploited for arbitrary or unreasonable trade restrictions.
In addition, the agreements place a strong emphasis on removing technical impediments to international trade.
The free trade agreement with CARICOM
The Caribbean Community and Common Market (CARICOM) is a collection of 20 Caribbean emerging nations that have grouped to establish a financial and political union that strives to set regional regulations and promote economic development and commerce
CARICOM’s main goals are to enhance economic relations and collaboration between its participants, as well as to make sure that the perks of integration are shared evenly, and to organize foreign policy
CARICOM faces numerous issues, notably regional administration, organizational, and political involvement, and the non-automaticity of provincial organization funding. Due to these obstacles, trade advancements have been minimal.
CARICOM-Venezuela
Another goal of the pact is to encourage investors to take benefit of the Parties’ marketplaces and improve their efficiency in global commerce. The deal also calls for the convenience of the formation and operation of local joint ventures, as well as the establishment of procedures for the growth and safeguarding of investments by citizens of the Parties.
CARICOM-Cuba
The CARICOM-Cuba Trading and Economic Development Treaty, established on July 5, 2000, is a Limited Reach Accord. The Treaty is primarily concerned with goods traded, but it includes a timeframe for establishing a deal in solutions policy and pledges the Parties to do so for mutual development and security of capital as well as public procurement.
CARIFORUM-EU
Many nations, including Dominica, ratified the CARIFORUM-EU Economic Cooperation Treaty with the European Union in October 2008. This Economic Partnership Agreement (EPA) facilitates investment and commerce between the two regions while ensuring consistent EU market entry for participating nations.
The EU market for services, including creative and media companies, will progressively open due to this deal. It also guarantees that all products have duty-free and quota-free access to the EU market. In addition, the contract allows CARIFORUM enterprises to establish a business presence in the EU.
