Grenada’s economy is mostly built on tourism, and it is small and open. Grenada’s economy has switched from agricultural to services during the last twenty years, with tourism serving as the largest source of foreign cash. The spices nutmeg and mace (Grenada is the world’s second-largest producer of nutmeg after Indonesia) are the country’s main export crops. Bananas, cinnamon, cocoa, cloves, and citrus fruits are among the other crops that can be exported. Grenada’s manufacturing businesses, which include the production of beverages and other foodstuffs, textiles, and the assembly of electronic components for export, are primarily small-scale.
World Trade Organization (WTO)
Grenada has been a member of the World Trade Organization (WTO) since February 22, 1996, and the General Agreement on Tariffs and Trade (GATT) since February 9, 1994.
CARICOM
Grenada is a member of the Caribbean Community (CARICOM), a confederation of 15 Caribbean countries and dependent territories. Its main responsibilities include coordinating economic policies and development planning, developing and implementing special projects for the less-developed countries under its jurisdiction, acting as a regional single market for many of its members, and resolving regional trade disputes. Grenada is a signatory to a variety of CARICOM trade agreements, some of which are listed below:
Caribbean-Canada Trade Agreement (CARIBCAN)
It is a Canadian government initiative that was established by the Canadian Parliament in 1986. The agreement was intended to encourage trade, investment, and industrial cooperation by giving Commonwealth countries privileged access to the Canadian market for duty-free goods. Its main goals are to strengthen the Commonwealth Caribbean’s existing trade and export profits, boost the region’s trade and economic development prospects, and promote new investment opportunities.
CARICOM and Costa Rica
The Free Trade Agreement, which was signed on March 9, 2004, includes rules for goods trade. It also allows for additional agreements in the areas of competition policy, government procurement, double taxation, and services. The FTA is based on reciprocity with CARICOM’s five More Developed Countries, but not with CARICOM’s Less Developed Countries.
CARICOM and Colombia
CARICOM and Colombia have a Trade, Economic, and Technical Cooperation Agreement. It’s a Partial Scope Agreement that was signed on July 24, 1994, and went into effect on June 1, 1995. The Agreement focuses on goods commerce while also laying the groundwork for future collaboration in the fields of services and investment among contracting parties.
CARICOM and the Dominican Republic
The Free Trade Agreement was signed on August 22, 1998, and it went into effect provisionally in December 2001. It came into force on April 28, 2000, after the Protocol implementing the Agreement was signed. While the Agreement is primarily focused on product trade, it also includes a timeframe for negotiating a trade-in services regime as well as government procurement. The FTA establishes a reciprocal commercial partnership between the Dominican Republic and CARICOM’s five More Developed Countries (MDCs), as well as a non-reciprocal economic relationship with CARICOM’s Less Developed Countries.
CARIFORUM and the European Union
The CARIFORUM-EU Economic Partnership Agreement was signed in October 2008 by Grenada and other members of the CARIFORUM. The EPA includes a free trade agreement (FTA) that allows goods trade between the two zones to flourish. Unlike previous FTAs, the EPA aids in their development by facilitating commerce, services, and investment. It also makes doing business in the Caribbean easier. The EPA aids trade by making it simpler to export products and services between all CARiforum countries and the 17 Caribbean territories with direct linkages to the EU. In December 2008, the CARIFORUM-EU EPA was granted provisional approval. Every five years, the agreement is re-evaluated. So far, two impartial ex-post evaluations have been completed, the most recent of which took place in 2019-2020.
