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2007年11月WTO对东加勒比国家贸易政策审议-WTO秘书处报告(对多米尼加)(英)

World Trade Organization	RESTRICTED

	WT/TPR/S/190/DMA 1 October 2007
	(07-4028)

Trade Policy Review Body

TRADE POLICY REVIEW

Report by the Secretariat

DOMINICA

This report, prepared for the second Trade Policy Review of Dominica, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Dominica on its trade policies and practices.

Any technical questions arising from this report may be addressed to Mr. Angelo Silvy (tel. 022 739 5249), and Ms. Katie Waters (tel. 022 739 5067).

Document WT/TPR/G/190/DMA contains the policy statement submitted by Dominica.

Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Dominica.

CONTENTS

Page

I. Economic environment 1

(1) Structure of The Economy, Output, and Employment 1

(2) Fiscal Policy 3

(3) Monetary and Exchange Rate Policy 4

(4) Balance of Payments, Trade and Investment Flows 5

(5) Outlook 7

II. trade and investment policy framework 7

(1) General Constitutional and Legal Framework 7

(2) Trade Policy Formulation and Implementation 8

(3) Foreign Investment Regime 9

(4) International Relations 11

(i) World Trade Organization 11

(ii) Preferential agreements and arrangements 12

III. trade policies and practices by measure 13

(1) Measures Directly Affecting Imports 13

(i) Customs procedures, documentation, and registration 13

(ii) Customs valuation 14

(iii) Rules of origin 14

(iv) Tariffs, and other charges on imports 15

(v) Other levies and charges 18

(vi) Import prohibitions, restrictions, and licensing 20

(vii) Contingency measures 22

(viii) Technical regulations and standards 23

(ix) Sanitary and phytosanitary measures 26

(2) Measures Directly Affecting Exports 27

(i) Documentation, export taxes, and restrictions 27

(ii) Export subsidies, financing, support, and promotion 27

(3) Measures Affecting Production and Trade 28

(i) Legal framework for business and taxation 28

(ii) Incentives and assistance 30

(iii) Competition policy and regulatory issues 33

(iv) Government procurement 34

(v) Intellectual property rights 35

IV. trade policies by sector 38

(1) Agriculture 38

(2) Manufacturing 39

(3) Services 40

(i) Main features 40

(ii) Telecommunications 40

Page

(4) Financial Services 42

(i) Onshore financial services 42

(ii) Offshore financial services 44

(iii) Air transport 45

(iv) Maritime transport 46

(v) Tourism 47

(vi) Professional services 49

(vii) Other offshore services 50

REFERENCES 51

APPENDIX TABLES 53

TABLES

I. ECONOMIC ENVIRONMENT

I.1 Basic macroeconomic indicators, 2000-06 1

I.2 Balance of payments, 2001-06 5

I.3 Investment flows, 2001-05 6

II. TRADE AND INVESTMENT POLICY FRAMEWORK

II.1 Ministries and agencies dealing with trade 8

II.2 Notifications to the WTO, 2001-07 11

III. TRADE POLICIES AND PRACTICES BY MEASURE

III.1 Structure of the tariff, 2006 15

III.2 Summary analysis of the MFN tariff, 2006 16

III.3 Other taxes and levies on imports 19

III.4 Goods subject to prohibitions, licensing, or other restrictions, 2007 21

III.5 Goods under CARICOM Article 164 exceptions 23

III.6 Credits and trade under the Fiscal Incentives Act No. 42 of 1974 31

III.7 Dominica's membership in international agreements on intellectual property rights 36

IV. TRADE POLICIES BY SECTOR

IV.1 Telecommunications statistics, 2002-06 41

APPENDIX TABLES

I. ECONOMIC ENVIRONMENT

AI.1 Merchandise exports and re-exports by group of products, 2000-06 55

AI.2 Merchandise imports by group of products, 2000-06 56

AI.3 Merchandise exports and re-exports by trading partner, 2000-06 57

AI.4 Merchandise imports by trading partner, 2000-06 58

I. Economic environment

(1) Structure of The Economy, Output, and Employment

1. Services accounted for 66.2% of GDP in Dominica in 2005, followed by agriculture (18.5%), manufacturing (8.1%), construction (8.4%), water and electricity for (6.4%), and mining and quarrying (0.9%).[1] No employment or wage change statistics are available.

2. Although the contribution of agriculture to GDP declined from 30% in the mid 1980s to 18.5% in 2005, its share of GDP continues to be higher than in other OECS countries. Moreover, agriculture still employs around one third of the labour force and is an important earner of foreign exchange. The banana industry has been declining since the 1990s for a number of reasons, among which are the erosion of preferential access to its main export market, the United Kingdom, the changing demography of the farming community, high production costs, and low productivity.[2] Agricultural production includes dasheens, grapefruit, plantains, coconuts, cocoa beans, coffee, sweet potatoes, mangoes, oranges, and limes.

3. Dominica's growth performance continues to be below the OECS average. During the period under review, Dominica's economy overcame a major economic crisis. Output fell by some 10% in 2001-02; growth resumed in 2004 and 2005. Gross capital formation declined sharply during the crisis but it has been recovering since 2003. Private consumption held its contribution to GDP relatively stable during the period. The shares of both imports and exports fell as a consequence of the crisis, but, while the share of imports recovered with resumed economic growth, the share of exports continued to decline (Table I.1).

Table I.1

Basic macroeconomic indicators, 2000-06

(EC$ and per cent)

	2000	2001	2002	2003	2004	2005	2006
Real sector
Nominal GDP at market prices (EC$ million)	732.2	718.6	688.1	709.7	770.1	810.7	860.0
GDP per capita, at market prices (EC$)	10,236	10,075	9,854	10,164	10,936	11,479	12,039
GDP per capita, at basic prices (EC$)	..	..	8,238	8,323	8,683	9,015	9,562
Real GDP at market prices (EC$ million)	537.5	517.4	496.6	507.4	539.3	557.3	583.0
Real GDP at basic prices (EC$ million)	456.4	437.4	415.2	415.6	428.2	442.7	463.0
GDP growth (real, at market prices)	0.6	-3.8	-4.0	2.2	6.3	3.3	4.6
GDP growth (real, at basic prices)	1.3	-4.2	-7.8	0.1	3.0	3.4	3.0
GDP components (% of GDP)
Total consumption (% of GDP)	86.2	92.8	92.2	86.5	88.1	94.8	90.0
Private consumption (% of GDP)	63.7	70.5	70.8	67.4	70.0	76.7	71.2
Government consumption (% of GDP)	22.5	22.3	21.4	19.0	18.1	18.1	18.7
Gross capital formation (% of GDP)	28.1	23.9	20.7	25.0	27.3	28.5	28.8
Transport equipment (% of GDP)	5.0	3.1	3.8	3.4	3.5	5.2	4.5
Other equipment (% of GDP)	7.0	4.4	4.1	7.1	8.6	7.8	8.0
Construction (% of GDP)	16.0	16.4	12.8	1.9	15.3	15.5	16.2
Exports of goods and services (% of GDP)	53.3	50.5	48.4	45.0	45.6	41.9	44.2
Goods	20.2	16.7	17.1	15.6	14.9	14.0	13.5
Non-factor services	33.1	33.8	31.3	29.4	30.7	27.9	30.7
Table I.1 (cont'd)
Imports (% of GDP)	67.5	62.3	61.3	56.5	61.0	65.2	63.0
Goods	48.1	43.5	40.2	39.9	44.8	48.5	46.2
Non-factor services	19.4	18.8	21.1	16.6	16.2	16.7	16.8
Gross national savings (% of GDP)	6.0	5.2	3.1	9.0	6.6	1.8	..
Foreign savings (% of GDP)	22.1	18.7	18.9	20.3	20.8	25.9	23.4
Consumer price index (period average)	0.9	1.6	0.2	1.5	2.4	1.7	2.6
Consumer price index (end of period)	0.9	1.6	0.4	2.8	0.8	2.7	1.6
Implicit gross value added deflator (end period)	0.7	2.0	-0.2	0.9	2.1	1.9	1.4
General government finance (% of GDP)
Current revenue	34.4	28.2	28.0	28.8	30.5	31.5	31.3
of which, tax revenue	29.2	22.7	23.5	25.3	26.6	28.3	28.8
of which taxes on international trade	14.3	11.9	12.4	13.0	13.7	13.9	7.7
of which
Consumption tax	8.0	6.9	7.5	7.4	7.3	7.1	1.2
Import duties	4.0	3.0	2.8	3.0	3.3	3.4	3.3
Service charge on imports	0.9	0.9	0.8	1.2	1.5	1.5	1.5
Current expenditure	36.2	33.1	30.2	32.6	30.3	29.3	28.4
Current account balance	-1.8	-5.0	-2.1	-3.8	0.2	2.2	2.9
Primary balance	0.6	-4.0	-0.7	1.8	3.9	5.8	10.3
Overall fiscal balance (% of GDP)	-5.3	-9.6	-5.1	-4.4	-1.5	2.6	6.3
Total public debt (% of GDP)	112.0	127.4	131.9	131.2	119.2	117.3	110.0
Money and interest rates
Money supply, M1 (end of period)	-13.0	1.4	16.4	1.2	3.1	28.6	-3.5
Broad money, M2 (end of period)	5.2	8.7	6.9	0.9	6.0	6.8	9.6
Prime lending rate (% per annum)	9.5-10.5	9.5-10.5	8.5-10.5	8.5-10	8.5-10	8.5-10	8.5-10
Other lending rates	7.5-20.8	7.5-20.8	7.5-20.8	5-20.8	7.5-20	7.5-18.2	7.5-18.2
Savings rate	4-5.5	4-5.5	3-5.5	3-5.5	3-4.25	3-4.25	3-4.25

.. Not available.

Source: Information provided by the authorities; and ECCB (2006a), (2006b) and (2007b).

4. The IMF considers that the roots of the 2001-02 economic crisis lie to a large extent in the expansionary fiscal policies of the preceding decade.[3] As output growth declined in the 1990s, the authorities sought to prop-up activity by increasing public spending. As a result, the primary balance of the Central Government turned strongly negative in the mid-1990s, and public debt increased substantially. A build-up in debt payment arrears was aggravated by external events, such as the adverse effects of a severe drought on agriculture and of the 11 September 2001 terrorist attacks on the emergent tourism sector.

5. To face the crisis, Dominica adopted a comprehensive adjustment strategy in mid 2002, the Economic Stabilization and Adjustment Programme, supported by an IMF Stand-By Arrangement; Dominica also received assistance from countries in the Caribbean region and from the ECCB. In the 2003/04 Budget address, the Government introduced a two-pronged strategy. The first step would reduce the fiscal gap and engender additional external financial support, followed by structural measures to reinvigorate growth and ensure fiscal sustainability. The adjustment programme was supported by an IMF three-year Poverty Reduction and Growth Facility Programme (PRGF). A central government primary balance of 3% of GDP was established as the objective for budgetary policies. To meet this goal, the adjustment effort concentrated initially on measures to strengthen revenue, including the introduction of a stabilization levy of 4% on payroll income and a 5% sales tax on telecommunication services, adjustments in fuel prices to reflect international oil prices and ensure annual revenue from the consumption tax equivalent to 0.6% of GDP, broadening the coverage of license fees, and limiting discretionary duty and tax exemptions on imports.[4]

6. Expenditure measures concentrated on reducing the wage bill, mainly implemented through a temporary 5% reduction of government employees salaries. As fiscal performance improved and the tax base expanded, resulting in higher-than-anticipated revenue collection, the Government started to remove some of the measures. Measures to rationalize government employment were introduced, and the stabilization levy was removed in the course of the 2004/05 budget. In 2005/06, the Government removed the 5% salary cut.

7. Economic growth has been around or above 3% since 2004. In general, growth since the recovery started has been driven mainly by expansion in the services, with strong growth in wholesale and retail trade, telecommunications, and construction, which received a boost from public sector projects. Output in manufacturing increased but in agriculture it was affected by a decrease in banana production, partly a result of unfavourable weather. Foreign savings have been increasingly important in the financing of investment during the period under review; foreign savings accounted for 23.4% of GDP in 2006, while gross capital formation was 28.8%; the gap was financed mainly through the surplus in public finances.

8. There are no up-to-date national statistics on employment. The authorities note, however, that the results of a labour survey conducted in 2005 are expected by the end of 2007. A recent IMF study estimated informal activity at some 34.2% of GDP.[5]

9. Dominica's GDP per capita was some US$4,450 in 2006. GDP per capita in terms of purchasing power, as estimated by the IMF was US$6,764.3 in the same year.[6] Net aid per capita in 2005 was estimated by the World Bank at US$409, the highest among OECS-WTO Members.[7]

(2) Fiscal Policy

10. Fiscal policy, which is under the responsibility of the Ministry of Finance, is the main macroeconomic instrument actively used by the Dominican authorities to affect output because, like all other OECS-WTO Members, Dominica has no independent monetary and exchange rate policy (see section (3) below). As a result, the national authorities may only resort to fiscal policy to act on the economy as the main income stabilizer and counter the effect of external shocks. As in other OECS countries, and due to the traditional high dependency on taxes on foreign trade for revenue, fiscal policy has a strong link with trade policy. Tariffs and other taxes on international trade represented some 44% of total government revenue in 2005. The main single source of indirect tax revenue is the consumption tax, followed by tariffs and customs charges. After the introduction of the VAT, however, the contribution of foreign trade taxes declined, mainly due to replacement of the consumption tax on imports by the VAT.

11. As a result of the adjustment strategy, fiscal accounts have improved substantially since 2003: the primary balance swung from an average deficit of 1-4% of GDP in 2001-02 to a surplus of 10.3% in 2006. Both higher revenues and lower spending contributed to the improvement. Revenue measures, aimed at broadening the tax base and improving the efficiency of the tax system, and the economic recovery have helped to increase revenue, while there has been a policy of restraint with respect to expenditure, including a reduction of the wage bill, and of investment spending not funded by grants. However, investment outlays have increased. The IMF considers that the FY2006/07 budget, based on a primary surplus target of 3% of GDP, is consistent with medium-term fiscal and debt sustainability; however, the IMF has urged the authorities to accelerate the pace of structural reforms, including in the electricity sector, and encouraged them to progress further with the debt restructuring process.[8]

12. A value-added tax was introduced on 1 March 2006, after three years of preparation. Four taxes were eliminated with the introduction of the VAT: the consumption tax, sales tax, hotel occupancy tax, and entertainment tax. New excise tax legislation has also been introduced (Chapter III(3)(i)).

13. The system of fiscal incentives for investment and import duty concession result in considerable revenue forgone (Chapter III(3)(ii)). Curtailing concessions and making them more transparent, would help strengthen the otherwise fragile fiscal situation, and would enhance the investment regime's predictability and accountability.

14. By mid 2003 public debt had reached the equivalent of 127% of GDP, with debt servicing requirements representing about 25% of current revenue or 8% of GDP. To address this problem, in April 2004, the Government launched an offer to exchange outstanding debt to the private sector and bilateral creditors for medium- to long-term bonds carrying a lower interest rate. In late 2006, agreements had been reached with creditors holding over 70% of the debt eligible for restructuring. Improved fiscal performance and debt restructuring resulted in a decline of public debt to 110% of GDP in late 2006 and a reduction in interest cash outlays of some 50%.

(3) Monetary and Exchange Rate Policy

15. Dominica is a member of the Eastern Caribbean Currency Union (ECCU). Monetary and exchange rate policy is hence determined by the Monetary Council of the Eastern Caribbean Central Bank (ECCB). The ECCB has been responsible for monetary policy for the whole OECS area since 1976, keeping the EC dollar pegged to the U.S. dollar at a rate of EC$2.70/US$1. Movements in the EC dollar real effective exchange rate are related largely to changes in the value of the U.S. dollar vis-à-vis other major currencies. As a consequence, the EC dollar depreciated in real effective terms during the period under review.

16. Both narrow money (M1) and quasi money have been expanding since the economy resumed growth. The growth of M1 is mainly associated with a strong expansion in demand deposits, while the more moderate increase in quasi money reflects an expansion in savings by private sector businesses and individuals.[9] Domestic credit has also been expanding, to both the private sector and central government. The composition of credit by economic activity shows increases in outstanding loans for manufacturing, tourism, construction, and personal use, but decreases for agriculture and distribution. Liquidity in the commercial banking system remained high during 2005 and 2006 (the ratio of loans and advances to total deposits was 58% in 2005).

17. Commercial bank interest rates were unchanged during 2005 and 2006: rates on savings deposits ranged from 3% to 4.25% and rates on time deposits from 1% to 6%. Prime lending rates remained within the 8.5-10% range.

18. The increase in the consumer price index was moderate over 2000-04, in the 0-2.5% range, although it picked up some in 2005 and 2006, reflecting mainly higher food and energy prices.

(4) Balance of Payments, Trade and Investment Flows

19. Dominica posts a structural deficit in its external current account; this declined somewhat during the crisis but increased again as of 2004, as growth resumed (Table I.2). The merchandise trade balance is structurally negative, with imports almost four times as large as exports. In recent years, the share of exports to GDP has contracted, while the share of imports has increased substantially, and in 2006 they represented 46% of GDP.

20. The net travel component of the balance of payments in 2006 was US$58 million, or some 18% of GDP. Net investment income is widely negative, mostly due to substantial external debt interest payments. Net foreign investment inflows have been increasing since 2003, and capital transfers remain significant, reflecting remittances from Dominicans living abroad. The overall balance-of-payments position improved in 2006, influenced by an expansion in inflows on the capital and financial account, recording a surplus of 1.6% of GDP in 2006.

Table I.2

Balance of payments, 2001-06

(US$ million)

	2001	2002	2003	2004	2005	2006
Current account	-49.7	-48.0	-53.4	-59.4	-77.8	-74.4
Goods and services	-44.5	-33.7	-39.2	-42.8	-69.7	-60.6
Goods	-71.3	-59.4	-71.9	-84.2	-102.4	-104.1
Merchandise	-72.3	-60.4	-72.9	-85.7	-103.9	-105.6
Exports	43.4	42.0	39.7	41.0	41.6	41.1
Imports	-115.7	-102.4	-112.6	-126.7	-145.5	-146.7
Goods procured in ports by carriers	1.0	0.9	1.0	1.5	1.5	1.5
Services	26.8	25.7	32.7	41.3	32.8	43.6
Transportation	-13.9	-13.0	-14.9	-15.7	-22.8	-23.5
Travel	37.2	36.4	43.4	51.4	47.3	58.0
Insurance services	-2.1	-2.9	-2.4	-3.9	-4.3	-4.4
Other business services	7.1	7.5	9.5	9.7	13.7	14.6
Government services	-1.6	-2.2	-2.9	-0.2	-1.1	-1.1
Income	-22.7	-27.9	-27.0	-33.3	-28.0	-31.1
Compensation of employees	1.4	0.6	0.6	1.6	1.4	1.4
Investment income	-24.1	-28.5	-27.6	-34.9	-29.4	-32.4
Current transfers	17.5	13.6	12.8	16.7	19.7	17.2
General government	5.9	1.0	0.4	-1.6	0.3	-3.0
Other sectors	11.6	12.6	12.4	18.4	19.6	20.2
Capital and financial account	53.2	60.6	56.2	53.6	92.3	87.9
Capital account	18.0	20.5	18.8	26.8	18.3	42.5
Capital transfers	18.0	20.5	18.8	26.8	18.3	42.5
Financial account	35.2	40.1	37.4	26.7	74.0	45.3
Direct investment	14.7	20.1	31.5	26.2	32.6	32.7
Portfolio investment	-0.2	12.1	3.5	-2.5	3.8	0.0
Other investments	20.7	7.9	2.4	3.0	37.6	12.6
Public sector long term	22.4	13.3	10.2	10.7	4.2	-5.6
Commercial banks	-10.0	-24.0	-34.1	-28.5	8.8	-12.4
Other assets	-5.0	-2.8	7.5	-1.9	-13.3	-4.8
Other liabilities^a	13.3	21.4	18.9	22.7	37.6	35.4
Overall balance	3.4	12.5	2.7	-5.9	-14.8	13.4
Financing	-3.4	-12.5	-2.7	5.9	14.8	-13.4
Change in government foreign assets	-1.6	1.7	-0.5	0.4	-7.6	0.4
Change in imputed reserves	-1.9	-14.3	-2.2	5.5	-6.9	-13.9
Table I.2 (cont'd)
Memorandum
Current account balance (% GDP)	-18.7	-18.9	-20.3	-20.8	-25.9	-23.4
Real effective exchange rate	3.7	-6.7	-6.3	-7.0	-3.5	..
Estimated visitor expenditure (EC$ million)	125.4	123.3	141.2	163.7	154.0	183.9
Net imputed international reserves (US$ million)	43.6	45.5	47.8	42.2	49.19	62.9
Outstanding external public debt (% of GDP)	68.2	82.1	87.5	81.6	79.8	..
Debt service ratio (% of exports of goods and services)	36.8	16.2	13.0	14.1	8.7	..

.. Not available.

a Includes errors and omissions.

Source: WTO Secretariat, based on ECCB (2006a) and (2007), Annual Economic and Financial Review 2005 and 2006.

21. Most of Dominica's exports take place under reciprocal or non-reciprocal preferential conditions. Reflecting the decline in banana exports, exports of goods as a whole decreased at an annual average rate of 1.1% between 2001 and 2006. The share of agricultural exports in total Dominican exports decreased during the period under review, mainly due to the continued decline in banana exports (Table AI.1). Manufactured exports maintained their share, accounting for some 59% of total exports in 2006. By individual products, Dominica's main exports in 2006 were soaps, bananas and toothpaste. Almost two thirds of imports are manufactured goods (SITC definition), mainly machinery and transport equipment, semi-manufactures, chemicals, and other consumer goods other than textiles and clothing. Fuel imports have increased considerably since 2000 as a result of high world prices; they represented 15.5% of total imports in 2006, up from with 9.6% in 2000 (Table AI.2).

22. The United Kingdom remains the main single destination for Dominica's exports (Table AI.3). There has been a substantial increase of exports from Dominica to other OECS and CARICOM countries in the last ten years. In 2005, CARICOM accounted for almost 60% of Dominica’s total exports, of which some 25% was directed to other OECS countries. The United States is the main source of Dominica’s imports followed by the CARICOM (Table AI.4). Imports from CARICOM countries and Asia gained market share during the period under review, while imports from Europe lost market share.

23. Foreign direct investment in Dominica totalled EC$232.8 million (US$86 million) in 2001‑05, compared to US$100 million in the 1995-99 period. Investment was particularly important in hotel and tourism, which accounted for some 44% of the total, followed by agri-business (24.5%), light manufacturing (20.2%, main investments were in aluminium recycling and soaps), and services (2.2%, mostly telecommunications and related services) (Table I.3).

Table I.3

Investment flows, 2001-05

Name	Number of projects	Jobs	Total investment EC$ million
Name	Number of projects	Jobs	2001-05	2001	2002	2003	2004	2005
Hotel and tourism	54	3,354	101.85	36.00	21.33	16.25	14.22	14.1
Agri-business	22	449	56.95	5.61	7.53	3.72	6.90	33.2
Light manufacturing	35	603	47.14	13.51	14.58	15.22	1.84	1.99
Services	23	348	26.87	3.04	6.97	11.16	2.70	3.00
Total	134	4,754	232.81	58.16	50.41	46.34	25.65	52.25

Source: Information provided by the authorities.

(5) Outlook

24. Over the 2007-10 period, the Government is targeting economic growth of some 3%, an inflation rate of some 2% per year, a primary fiscal balance of 3% of GDP, and an overall fiscal deficit (after grants) of between 1.0% and 1.6% of GDP.[10] Growth is expected to benefit from a reduction in the debt burden, although a tight fiscal policy may act as a brake to growth. The Government considers that improving export performance is critical for growth, and increasing international competitiveness is a major challenge in which private investment may play a major role. The Government is aiming at a gradual reduction of the external current account deficit, acknowledging that this will mean increasing reliance on domestic savings to finance investment.

25. The IMF is expecting growth of some 3% for both 2007 and 2008 and a CPI increase of 1.5% in each of these years.[11]

II. trade and investment policy framework

(1) General Constitutional and Legal Framework

26. The Commonwealth of Dominica (Dominica) achieved independence from Great Britain on 3 November 1978. Although Dominica is a republic, it remains part of the British Commonwealth of Nations. Dominica's Head of State is an executive President. Candidates for the post of President may be nominated jointly by the Prime Minister and Parliamentary Leader of the Opposition, and in such cases the nominee will be appointed to the position of President without further formalities. Where there is no consensus between the Prime Minister and Leader of the Opposition, the President is elected on the basis of a simple majority by secret ballot cast by members of the House of Assembly (the House). In either case, the President will serve for a once-renewable term of five years. The President appoints as Prime Minister an elected member of the House who appears likely to command the support of the majority of the other elected members.

27. Although executive authority is vested in the President, it is actually exercised on his behalf by the Prime Minister and the Cabinet of Ministers. The Cabinet is appointed by the President acting on the advice of the Prime Minister, who has exclusive authority to determine the scope of ministerial portfolios and designations. Ministers are appointed from either elected members or from among those appointed as Senators; however, no more than three Senators may be appointed to ministerial portfolios. The Prime Minister and Cabinet have exclusive authority for signing and concluding trade treaties and agreements.

28. Dominica's legislature is unicameral. The House of Assembly has 30 members comprising one elected representative from each of the 21 constituencies, and nine Senators, five of which are appointed on the advice of the Prime Minister and four on the advice of the leader of the opposition. There is also a Speaker of the House. Although the Constitution requires parliamentary elections every five years, they can occur sooner. All 21 elected members are elected through universal adult suffrage, by simple majority. Elections in Dominica were last held on 5 May 2005.

29. In the hierarchy of domestic legislation, the Constitution is the supreme law and all other laws must conform to it, or they are void to the extent of any inconsistencies. The law-making process starts with the introduction of bills in Parliament. Members of Parliament and Ministers have the right to introduce bills. Most bills are produced at the request of a Ministry. After introduction in Parliament, a bill goes through several stages: it is presented and published in a first reading, debated in a second reading, examined and amended by a committee, presented by the Speaker of the House, and accepted or rejected in a third reading. Bills become law only after receiving the assent of the President and publication in the official Government Gazette. This procedure applies to all laws, including trade and trade-related laws.

30. International agreements that have not been incorporated into domestic law cannot be invoked before the courts and have no direct effect under Dominican law, except if the relevant legislation expressly states otherwise. Private individuals may not invoke WTO provisions directly before national courts.

31. The legal system is based on English common law. The administration of justice is vested in the judicial branch of Government, which functions independently from the legislature and executive. There are three local levels of judiciary, and the Eastern Caribbean Court of Appeal. Local courts deal with minor civil and criminal cases. The Supreme Court deals with the more serious cases; it adjudicates both in criminal and civil cases and on interpretation of the Constitution. The Eastern Caribbean Court of Appeal is the first Court of Appeal. It is a constitutionally entrenched itinerant court shared by the countries who form the Organisation of Eastern Caribbean States. The London-based Judicial Committee of the Privy Council is the final court of appeal for Dominica.

32. Dominica joined the rest of CARICOM in inaugurating the Caribbean Court of Justice (CCJ) in 2005. Based in Trinidad and Tobago, the court is established by treaty among CARICOM states with an exclusive and original jurisdiction to deal with interpretation of the revised Treaty of Chaguaramas, and an appellate jurisdiction for dealing with domestic legal matters. Although Dominica is committed by treaty obligation to the original jurisdiction of the court, its accession to the court's appellate jurisdiction will require an amendment of the country's constitution, since Dominica would be obligated to abolish appeals to the Privy Council. While the Government of Dominica has expressed an interest in acceding to the court's appellate jurisdiction, the Privy Council remains Dominica's final court of appeal.

(2) Trade Policy Formulation and Implementation

33. The Ministry of Foreign Affairs Trade and Labour formulates and coordinates national and international trade policy, while the Ministry of Finance and Planning is responsible for tariff issues (Table II.1).

Table II.1

Ministries and agencies dealing with trade

Government Ministry/Agency	Area of responsibility
Ministry of Foreign Affairs Trade and Labour	All trade issues, WTO coordination, OECS, CARICOM affairs, FTAA; and price controls
Ministry of Finance and Planning	Economic planning and monitoring, regulation of financial sector, fiscal policy, debt management, loans negotiations, coordination with ECCB for monetary policy, trade facilitation, tariffs and other customs duties, import controls, and customs valuation
Ministry of Tourism, Industry and Private Sector Relations	Tourism policy formulation and implementation; industry policy implementation and formulation
Customs and Excise Division	Trade facilitation, implementation of border taxes and measures
The Bureau of Standards	Development and implementation of standards
Ministry of Agriculture, Fisheries and the Environment	Agricultural policy formulation and implementation and research

Source: Information provided by the authorities.

34. Since the mid 1990s, Dominica's trade policies have been aimed at gradually establishing an open trading environment while ensuring that domestic producers become more competitive in order to face the increased competition that characterizes trade liberalization. During the period, Dominica moved away from the use of quantitative restrictions and import licences, through substantial tariffication of items on the Import Negative List. The main objective of Dominica's trade policies has been to maximize exports and export earnings to improve the country's balance of trade position. Dominica has pursued this objective through programmes and measures seeking to expand market share for exports, such as competitiveness-improving and marketing-assistance and promotion programmes. This policy has remained broadly unchanged since 2001.

35. Dominica has also been committed to securing the best "development-oriented" agreement it can in international trade negotiations, including the Economic Partnership Agreement with the European Communities and in the Doha Development Round.[12] Dominica’s key negotiating objective has been to obtain access for exports while attempting to reduce the potential negative impact of some obligations, by advocating the need for special and differential treatment, given what it regards as the vulnerabilities of its economy.[13]

36. Dominica regards participation in the WTO as critical, in light of concerns about preference erosion and its effects on banana exports and on agriculture more generally.[14] Dominica's engagement in the Doha Round, in particular, is therefore viewed as a priority. To this end Dominica has sought to deepen cooperation with OECS-WTO Members in order to overcome significant constraints in financial and human resources related to trade policy formulation and implementation. As a result, Dominica coordinates a number of trade policy issues with other OECS and CARICOM member States. This is also true for investment issues, foreign affairs, services, and competition policy. There is a high level of functional cooperation on agriculture between Dominica and other OECS-WTO Members.

37. The authorities noted that Dominica's point of emphasis has not been so much market access, which the country has in the main markets of the U.S., EC, and Canada, but ensuring that the development dimension is put at the centre of both the WTO and EPA negotiations. They also noted that in addition to differentiated treatment of member states, the development dimension embodies the critical aspect of securing development assistance to address concerns of domestic production capacity in order to turn opportunities for market access into actual access, and to build or strengthen capacity. The authorities consider that gaining market access will not help the development process if Dominica cannot overcome its supply side constraints.

(3) Foreign Investment Regime

38. With one exception, foreign investment in Dominica is not subject to any restrictions, and foreign investors receive national treatment. The only restriction is a requirement for non-national investors to obtain an Alien Landholding Licence in order to purchase property for residential and commercial purposes.

39. Under the Alien Landholding Act No. 17 of 1995, non-nationals are allowed to acquire and hold up to one acre of land for residential purposes, and up to three acres of land for trade or business purposes, without an Alien Landholding Licence, except in areas prescribed by the Minister, by Order, and published in the Gazette.[15] In addition to the licence requirement, the landholder must pay a tax equivalent to 10% of the market value of the land to the Government. Foreign investors can receive exemption from the provisions of the Alien Landholding Act if: they are party to an agreement with the Government for financing the development of housing, industry, tourism, forestry, fisheries, or agriculture; they embark on an undertaking that has been declared an approved enterprise under the provisions of the Fiscal Incentives Act; and if it is in the public interest to do so. All licences are subject to the submission of a satisfactory application to Cabinet and the payment of licence fees.

40. Dominica's investment policy has not changed substantially in the last decade. Foreign investment policy is the responsibility of the Ministry of Tourism, Industry and Private Sector Relations and Invest Dominica Authority. The Government's strategy for the past 20 plus years has been attracting foreign investors by offering various incentive schemes; some of this policy is guided by agreements and arrangements with the OECS and CARICOM.[16] Dominica's legislation governing fiscal and other incentives is similar to incentive-related legislation in a number of other OECS states. A number of conditions apply to foreign investors with respect to their bona fides, the source of financing, the number of foreign employees with respect to local employees, the goods to be produced, and the markets targeted, among others.

41. Foreign investors may hold up to 100% of an investment. There are no restrictions on the repatriation of dividends for totally foreign-owned firms; a mixed (foreign-domestic) company, the repatriation of profits is allowed to the extent of the foreign participation in the company. Unless granted an exemption under the Fiscal Incentives Act, foreign investment profits are subject to a 30% tax rate for both individuals and companies.

42. Incentive regimes for foreign investors are governed chiefly by Fiscal Incentives Act, No. 42 of 1973 (as amended), Hotel Aids Act Cap 85, Vol. 4 of the Revised Laws of Dominica, the Income Tax Act, Cap 61, Vol. 1 of the Revised Laws, and Value Added Tax Act No. 7 of 2005 (see Chapter III(3)(ii)). Although the Government places particular emphasis on tourism, manufacturing, agri-processing and information technology, investment in any other sector of economic activity is welcome and may be eligible for incentives if the proposed investment meets policy and legislative requirements. Horizontal incentives for foreign investors are also in place with respect to exemptions from foreign exchange remittance limitations under the Foreign Exchange Control Act.

43. Dominica has active bilateral investment treaties with Germany and the United Kingdom.[17] It has double taxation treaties with Canada, the United Kingdom, the United States, and arrangements with other CARICOM countries to prevent double taxation of income earned by CARICOM nationals in Dominica.[18]

(4) International Relations

(i) World Trade Organization

44. Prior to independence, on 3 November 1978, Dominica applied GATT de facto as a member of the metropolitan territory of the United Kingdom. Dominica became a GATT contracting party on 20 April 1993, under Article XXVI:5(c) with its rights and obligations under GATT retroactive to the date of independence. Dominica is an original WTO Member and applies at least MFN treatment to all its trading partners.

45. Dominica is well advanced in the process of incorporating the results of the Uruguay Round into domestic legislation (see Chapter III). Under the GATS, Dominica made initial commitments on tourism, recreational, communication, and financial services; it presented an offer in the extended negotiations on telecommunications, but did not participate in the extended negotiations on financial services (see Chapter IV). Dominica submitted an initial conditional offer in the services negotiations in the DDA in March 2005[19]; it has not submitted a revised offer.

46. Dominica is hindered in its notification efforts by significant human resource limitations in the area of trade policy implementation. However, it has made some notifications to the WTO since 2001 (Table II.2).

Table II.2

Notifications to the WTO, 2001-07

WTO Agreement	Periodicity	Document symbol of most recent notification
Import Licensing Procedures (Article 7.3)	ad hoc	G/LIC/N/3/DMA/2, 6 December 2006
Services (Article V:7(a))	ad hoc	S/C/N/229, 19 February 2003
Subsidies (Article 25) and GATT XVI:1	ad hoc	G/SCM/N/71/DMA, 20 March 2002 and Corr.1, 25 March 2002; G/SCM/N/95/DMA, 2 July 2003; G/SCM/N/99/DMA, 2 July 2003; G/SCM/N/123/DMA, 5 July 2005; G/SCM/N/128/DMA, 5 July 2005
(Article 27.4) and document G/SCM/39	ad hoc	G/SCM/N/74/DMA, 7 January 2002; G/SCM/N/114/DMA, 5 July 2004; G/SCM/N/146/DMA, 6 July 2006
Technical Barriers to Trade Article 10.6	ad hoc	G/TBT/N/DMA/10, G/TBT/N/DMA/9, G/TBT/N/DMA/8, G/TBT/N/DMA/7, G/TBT/N/DMA/6, G/TBT/N/DMA/5 , G/TBT/N/DMA/4, G/TBT/N/DMA/3, G/TBT/N/DMA/2, G/TBT/N/DMA/1, 23 August 2005

Source: WTO Secretariat.

47. Dominica has not been either a complainant or defendant in any case before the Dispute Settlement Body. It has, however, been a third party in three cases (European Communities – Regime for the Importation, Sale and Distribution of Bananas[20]; United States – Sections 301-310 of the Trade Act 1974[21]; and United States – Import Measures on Certain Products from the European Communities.[22] In November 2006, Ecuador submitted a request for consultations under Article 21.5 of the DSU and Article XXII of the GATT 1994. Dominica has requested to join the consultations.

48. In the Doha Round, Dominica has been a strong proponent for the recognition of special and differential treatment for small and vulnerable economies, and has attempted to give impetus to the negotiations, principally through its membership of CARICOM and the ACP. Dominica has also given support in the WTO to a joint request by several developing countries for an extension of time (up to 2018) for granting export subsidies. It regards this extension as necessary in order to become more fully integrated into the multilateral trading system (see Chapter III(2)(ii)).[23]

(ii) Preferential agreements and arrangements

49. Dominica participates in a number of regional and preferential trade arrangements: the Caribbean Community (CARICOM and CARICOM Single Market and Economy (CSME); the OECS; the ACP-EC Revised Cotonou Agreement; the U.S. Caribbean Basin Initiative (CBI); the Canadian CARIBCAN; and the Association of Caribbean States (ACS); and is a beneficiary of the General System of Preferences of several industrial countries. Among these, the ACP-EC Agreement, CARICOM, and the OECS have had the greatest impact on the economy of Dominica. The majority of Dominica's exports continue to go to the United Kingdom and to other CARICOM countries (see Chapter I).

50. Dominica is a founding member of CARICOM. It participated actively in negotiations aimed at revising the Treaty in order to establish the CARICOM Single Market and Economy (CSME). While the process of drafting new protocols to amend the Treaty was completed in 2000, the process to establish the CSME reached maturity in 2003-04, and Dominica together with a number of other member states commenced enactment of domestic legislation and regulations to give effect to the Revised Treaty.[24]

51. Dominica is also a founding member of the OECS. It enjoys a high level of functional cooperation with the OECS members on trade policy formulation and negotiations in particular. The OECS also facilitates cooperation in a number of related policy, areas, such as telecommunications, competition policy, and international relations.

52. Dominica has traditionally regarded its participation in regional trade arrangements as a springboard into the wider global economy. In addition to the economic benefits from closer economic integration with CARICOM members, Dominica's participation in the OECS and in CARICOM has enabled it to share the human and technical resources of other member states; benefit from greater political influence in a number of fora; and participate in a range of international negotiations through the Caribbean regional negotiating machinery. Membership in these regional organizations has been particularly important for Dominica in light of its limited human resources for trade policy formulation and negotiations. Dominica expects the regional institutional framework for trade policy formulation and implementation to strengthen with deeper integration at both the OECS and CARICOM levels. It has traditionally regarded regional trade liberalization as helpful preparation for liberalization at the multilateral level.

53. Prior to the challenge of ACP preferences under the Cotonou and Lomé Agreements, at the DSB, Dominica's preferential exports of bananas accounted for more than 50% of Dominican exports and nearly 30% of its GDP. This has been reduced significantly in recent years, as preferences have been eroded. Dominica is now engaged as part of CARIFORUM in negotiations with the EC to conclude a new trade agreement. It hopes that the agreement will provide greater access to European markets for exports.

54. Dominica enjoys preferential access under the U.S. Caribbean Basin Initiative (CBI). Dominica also enjoys preferential access to the Canadian market through CARIBCAN, mainly for processed and fresh vegetables. In the context of Dominica's previous Review, the authorities noted that Dominica exports very little to the United States under the CBI or to Canada under the CARIBCAN. This position appears to have remained the same during the period under review, with the United Kingdom and the rest of CARICOM representing the most important markets for Dominica's exports.

55. Products from Dominica are eligible for the Generalized System of Preferences (GSP) schemes of Australia, Canada, the European Union, Japan, New Zealand, Switzerland and the United States. The range of products varies according to each country's scheme.

III. trade policies and practices by measure

(1) Measures Directly Affecting Imports

(i) Customs procedures, documentation, and registration

56. Dominica is not a member of the World Customs Organization. The average time to clear customs is 48 hours. Importers are not required to register per se, but any traders that do not have either a VAT identification number (the preferred identifier) or a tax identification number will be issued a trade code number by Customs. Importers may use the services of a licensed customs broker, but this is not a requirement.

57. Physical inspection is required in many cases. The authorities note that goods subject to low or no duty are not generally inspected, nor are shipments by persons who are known to them. Overall, around 65-70% of shipments are inspected, based on a risk assessment. Import documents for vehicles, which are a high-duty item, tend to be subject to closer scrutiny.

58. The Customs and Excise Division of the Ministry of Finance is responsible for the control and management of the customs clearance of goods.[25] Up to 15 forms may be required for imports, depending on the type of transaction; but most imports typically require the submission of five documents. Three documents are required for all imports: an invoice relating to the customs value of the imported goods; bill of lading/airway bill; and import value declaration form. Depending on the nature of the import, the following may also be required: work sheets; certificate of origin for goods from CARICOM members; FT1 101 forms to obtain duty-free exemptions; FT1 104 form to obtain duty-free exemptions for the vehicles of returning residents; import licence and health permit; delivery note; packing list; insurance certificate; contract of sale; proof of payment; proof of exportation of goods re-imported; and proof of warranty and exportation for goods under warranty that are imported.

59. The import value declaration is required for all imports, with the exception of fresh fish caught by Dominican fishermen and landed by them in their vessels; passengers' accompanied baggage; and goods of a non-commercial nature of a value less than EC$500. This declaration must be presented to Customs up to seven days after the goods have been landed, in the case of air transport, or 14 days in the case of maritime transport, along with the invoice and the bill of lading, and all other documentation pertaining to payment for transport and related services, such as freight, insurance, and handling.

60. Since 1991, Customs has used ASYCUDA to process customs declarations electronically, although all import declarations and accompanying documentation must be submitted on paper. The authorities state that funding and technical assistance is being sought to implement the ASYCUDA World programme, which will allow electronic filing of documents to customs. Dominica does not use preshipment inspection.

61. In the Budget Address for Fiscal Year 2006-07, plans were announced for the customs reform process.[26] The reforms are aimed at improving efficiency, modernizing customs operations, and addressing complaints about delays and inefficiencies in the clearance of goods.[27] Measures will include the introduction of updated technology, changing the staffing structure, and setting up a customs intelligence unit.

(ii) Customs valuation

62. Dominica did not invoke the special and differential treatment provisions in Article 20 of the Customs Valuation Agreement. It notified Customs (Control and Management) (Amendment) Act No. 16 of 1995, Chapter 69.01 of the revised laws of Dominica, to the Committee on Customs Valuation.[28] Dominica has not responded to the WTO checklist of issues on customs valuation.[29]

63. The 1995 Act incorporated the GATT Customs Valuation Code. Consequently, the methods of valuation contained in the Agreement are used by Customs, in the order prescribed. The transaction value is used for about 80-85% of shipments. Where there are concerns over the value declared, the transaction value is accepted while a post-import verification is carried out.

64. No minimum prices are used for valuation purposes. However, reference prices based on international lists, catalogues, or previous import values, are used for about 5% of shipments. Vehicles and other high-duty items are more susceptible to under-invoicing. Dominica is developing a risk-management programme as part of the customs reform process; an intelligence section will be established to enable the authorities to conduct more in-depth investigations.

65. Importers may challenge valuation decisions with the Customs Appeal Commissioners. If unsatisfied by the decision of the Commissioners, the importer may appeal to the High Court or the Eastern Caribbean Court of Appeal. No cases were brought before the Customs Appeal Commissioners during 2001-06. The Customs Appeal Commissioners have the powers of a subordinate court with respect to enforcement of witnesses attendance, the hearing of evidence on oath, and punishment for contempt. At appeal, the Commissioners may increase, decrease, or confirm the amount of duty due.

(iii) Rules of origin

66. Dominica has notified its preferential rules of origin to the WTO[30]; it has also notified that it does not have non-preferential rules of origin.

67. In 1999, Dominica adopted the rules of origin introduced by CARICOM in 1998. Duty-free treatment is accorded only if goods satisfying the origin criteria are shipped directly between member States. Dominica, like other CARICOM members, was expected to implement the rules of origin contained in the Amended Schedule I of the revised Treaty of Chaguaramas, based on the 2007 HS from 1 January 2007. Dominica intends to bring the system on line in the first quarter of 2008. The CARICOM Treaty contains a derogation facility to the application of Common Market Rules of Origin.

(iv) Tariffs, and other charges on imports

68. Taxes on international transactions raised EC$112.5 million in 2005, accounting for 49.1% of the government’s tax revenue; that share is projected to have declined to 22.9% in 2006/07.[31] The main cause of this reduction is the replacement of the consumption tax on imports with a value-added tax in 2006, (section (v)). The consumption tax on imports raised EC$56.6 million in 2004/05, providing 39.3% of government revenue; its share of total revenue fell to 17.1% in 2005/06.

(a) MFN applied tariff structure

69. Dominica grants at least MFN treatment to all its trading partners. It has applied the CARICOM Common External Tariff (CET) since 1991. The schedule has been based on the Harmonized Commodity Description and Coding System 1996 since 1 January 1999. The tariff, as applied in 2006, comprises 6,479 tariff lines at the ten-digit level. Dominica implemented the fourth and final phase of the CARICOM CET reductions on 1 July 2001. Exceptions to the CET are included in Lists A, B, C and D, as well as in the Statutory Rules and Orders No. 25 of 1998, comprising tariffied items previously subject to quantitative restrictions and currently subject to tariffs as high as 165%.

70. The highest rate applied on agricultural products is 150%, which corresponds to the final rate bound in the WTO. In the case of industrial products, competing imports from non-CARICOM countries are subject to (non-CET) rates between 50% and 165%, for products not bound in the WTO. These products are no longer subject to quantitative restrictions or non-automatic licensing (with the exception of three products subject to non-automatic licensing (section (vi)). Products facing the highest rate (165%) include enamels, paints, and varnishes. Duty-free treatment is accorded to 22% of tariff lines; this percentage is somewhat lower than for other OECS countries. Some 27.8% of tariff lines are subject to international peaks, and 7.9% to domestic peaks (Table III.1). The only product subject to seasonal tariffs is potatoes (HS 0701.90). Tariff quotas are not used.

Table III.1

Structure of the tariff, 2006

1.	Total number of tariff lines	6,479
2.	Non-ad valorem tariffs (% of all lines)	0.0
3.	Non-ad valorem with no AVEs (% of all lines)	0.0
4.	Tariff quotas (% of all lines)	0.0
5.	Duty-free tariff lines (% of all lines)	22.0
6.	Dutiable lines average tariff rate (%)	15.6
7.	Domestic tariff "peaks" (% of all lines)^a	7.9
8.	International tariff "peaks" (% of all lines)^b	27.8
9.	Bound tariff lines (% of all lines)	93.2

a Domestic tariff peaks are defined as those exceeding three times the overall average applied rate.

b International tariff peaks are defined as those exceeding 15%.

Note: Based on the 2002 tariff.

Source: WTO Secretariat calculations, based on data provided by the authorities of Dominica.

71. A customs service charge (CSC) previously set at 2%, rose to 3% in 2003. It is applied on the c.i.f. value of all imports (section (v)). Exemptions are provided for governmental imports, as well as imports by charitable organizations, and diplomatic missions.

72. The simple average MFN tariff in 2006 was 12.2% (Table III.2); the average aggregate import duty increases to 15.2% if the CSC is included. The average MFN tariff for agricultural products (WTO definition), at 25.8% (28.8% including the CSC), was well above the overall average. Beverages and spirits, fruit and vegetables, tobacco, and fish and fish products are subject to the highest average rates by WTO category. The highest tariff rate (40%) is applied on a number of agricultural products. Among manufactures, higher-than-average rates are imposed on miscellaneous non-agricultural products, textiles and clothing, chemicals and photographic supplies, and transport equipment. The lower tariffs, by WTO category, are applied on non-electrical machinery, other agricultural products, petroleum, metals, and dairy products.

Table III.2

Summary analysis of the MFN tariff, 2006

	MFN
				Coefficient of	Final bound
Description	No. of	Average	Range	variation	average
	lines	(%)	(%)	(CV)	(%)
Total	6,479	12.2	0 - 165	1.6	61.6
HS 01-24	1,137	27.6	0 - 150	1.2	116.5
HS 25-97	5,342	8.9	0 - 165	1.5	51.1
By WTO category
WTO Agriculture	1,055	25.8	0 - 150	1.3	116.0
Animals and products thereof	152	19.0	0 - 40	0.8	114.5
Dairy products	24	6.3	0 - 20	1.0	100.0
Coffee and tea, cocoa, sugar etc.	170	22.1	0 - 135	1.1	116.2
Cut flowers, plants	56	8.9	0 - 40	1.6	108.0
Fruit and vegetables	259	31.9	0 - 135	0.9	114.5
Grains	29	15.0	0 - 40	0.8	127.6
Oil seeds, fats and oils and their products	98	16.5	0 - 40	1.2	117.3
Beverages and spirits	108	80.3	5 - 150	0.7	138.9
Tobacco	10	31.5	0 - 45	0.7	115.0
Other agricultural products n.e.s.	149	4.2	0 - 40	1.7	106.0
WTO Non-agriculture (incl. petroleum)	5,424	9.5	0 - 165	1.4	50.1
WTO Non-agriculture (excl. petroleum)	5,398	9.6	0 - 165	1.4	50.1
Fish and fishery products	168	26.6	0 - 40	0.6	100.0
Mineral products, precious stones and precious metals	399	9.0	0 - 35	1.0	50.0
Metals	729	6.1	0 - 20	0.9	50.0
Chemicals and photographic supplies	1,031	10.0	0 - 165	2.3	50.2
Leather, rubber, footwear and travel goods	184	9.0	0 - 20	0.9	50.0
Wood, pulp, paper and furniture	328	9.1	0 - 40	0.9	50.0
Textiles and clothing	979	10.6	0 - 30	0.8	50.0
Transport equipment	190	9.7	0 - 40	1.1	50.0
Non-electrical machinery	594	3.9	0 - 60	1.8	50.0
Electrical machinery	267	9.5	0 - 30	0.8	50.0
Non-agriculture articles n.e.s.	529	13.4	0 - 125	1.0	50.0
Petroleum	26	5.6	0 - 20	1.4	50.0
By ISIC sector ^a
Agriculture and fisheries	438	23.1	0 - 100	1.0	104.4
Mining	114	6.9	0 - 35	1.3	50.0
Manufacturing	5,926	11.5	0 - 165	1.7	59.0
By HS section
01 Live animals & products	327	22.8	0 - 90	0.8	107.6
02 Vegetable products	402	22.0	0 - 135	1.1	113.7
03 Fats & oils	53	27.5	0 - 40	0.7	134.0
04 Prepared food etc.	355	38.5	0 - 150	1.2	122.1
05 Minerals	191	5.7	0 - 20	0.9	50.0
Table III.2 (cont'd)
06 Chemical & products	960	10.3	0 - 165	2.4	53.8
07 Plastics & rubber	257	7.7	0 - 100	1.2	50.0
08 Hides & skins	84	8.1	0 - 20	1.1	59.8
09 Wood & articles	124	9.2	0 - 20	0.7	50.0
10 Pulp, paper etc.	179	7.1	0 - 20	1.1	50.0
11 Textile & articles	963	10.1	0 - 20	0.8	51.4
12 Footwear, headgear	66	15.9	0 - 20	0.4	50.0
13 Articles of stone	183	9.5	0 - 20	0.7	50.0
14 Precious stones, etc.	62	17.4	0 - 35	0.8	50.0
15 Base metals & products	721	6.5	0 - 20	0.9	50.0
16 Machinery	895	6.0	0 - 60	1.3	50.0
17 Transport equipment	201	9.5	0 - 40	1.1	50.0
18 Precision equipment	249	9.3	0 - 30	0.9	50.0
19 Arms and ammunition	26	27.3	0 - 45	0.6	50.0
20 Miscellaneous manufactures	173	15.8	0 - 40	0.5	50.0
21 Works of art, etc.	8	20.0	20 - 20	0.0	50.0
By stage of processing
First stage of processing	847	18.3	0 - 135	1.2	88.0
Semi-processed products	1,909	4.8	0 - 40	1.0	53.1
Fully-processed products	3,723	14.6	0 - 165	1.5	60.7

a ISIC (Rev.2) classification, excluding electricity (1 line).

Note: Based on the 2002 tariff.

Source: WTO Secretariat estimates, based on data provided by the authorities of Dominica.

73. Goods included in the CARICOM List of Conditional Duty Exemptions to the CET may be imported at rates below the CET. In the case of Dominica, this applies to most inputs for industrial production. The List of Items Ineligible for Duty Exemption includes goods that may not be exempted in part from tariffs or in whole, nor imported at a reduced rate under incentives programmes. As an LDC within CARICOM, Dominica may import all inputs duty free instead of at the CET rate of 5%.

74. The authorities note that tariffs on a number of products subject to tariffication have been lowered during the review period. These reductions were made for various reasons: because domestic production ceased (pasta, footwear); to ensure that total import charges fell below the 150% bound level (aerated beverages); and because the regional circumstances for the production of oils and fats no longer warranted a tariff above the CET by Dominica. Among the most notable reductions, tariffs were lowered on footwear from 165% in 2001 to 20% in 2006; on uncooked pasta from 100% to 20%; and on most oils from 60% to 40%. Tariffs on aerated beverages declined slightly, from 148% in 2001 to 145% in 2006.

75. At the time of the previous Review, the authorities envisaged a comprehensive reduction of tariffied rates over a period of seven years for agricultural items (until 2006), and five years (until 2004) for all other products; the delay was intended to allow domestic producers to become more competitive during the period. The envisaged reductions have not been implemented, although rates on a few items have been reduced. The authorities indicate that there are no plans to reduce the existing applied rates outside of obligations arising from trade negotiations such as the WTO Doha Round and the CARIFORUM-EC EPA.

(b) Bound MFN tariffs

76. Dominica had no tariff bindings in the GATT. During the Uruguay Round, it bound all agricultural lines, with the exception of certain items of domestic-production interest to Dominica. Some 93.2% of all tariff lines are bound. The average bound tariff is 61.6%, five times the applied rate; the bound rate for agricultural products (WTO definition) is 116%, while that for non-agricultural goods is 50.1%.

77. Agricultural products were bound at a ceiling level of 100%, with an implementation period of six years; some exceptions were bound at 150%, with an implementation period of ten years. Dominica bound its tariffs on imports of industrial products (HS 25-97) at a uniform rate of 50% with a number of exceptions, which remained unbound. The exceptions are generally products for which there is domestic production in Dominica. Unbound products are also subject to import-licensing requirements.

78. Dominica's applied tariff schedule does not contain any rates that exceed bindings in the WTO.

79. Dominica left blank the column "other duties and charges" in its schedule, which in practice is equivalent to having entered "zero".[32] Dominica applies a 3% customs service tax on most imports (section (1)(iv)(a) above).

(c) Tariff and tax concessions

80. Two of Dominica's incentives schemes also grant import duty concessions and exemptions for imports of goods to be used in approved industries. Fiscal Incentives Act No. 42 of 1974 (as amended) provides import duty relief on raw materials and inputs, materials, tools, plant, machinery and building materials, and the Hotel Aid Act, as amended by Hotel (Amendments) Aid Act No. 21 of 1991 provides for the duty-free importation of building materials and articles of hotel equipment for the construction or equipment of hotels. Governmental imports are exempt from duty.

81. Certain organizations may apply for duty-free concessions through the National Development Cooperation (NDC). Exemptions for charitable organizations go through the Ministry of Finance; among those with exemptions are the Dominica Infirmary, Dominica Red Cross, the Grotto Home for the Aged, the Dominica Association of Disabled Persons, Rotary Club, and the Christian Children Fund. Carnival Committees and carnival bands can apply through the NDC for initial approval, which is endorsed by the Ministry of Finance and Planning. If duty-free exemptions are granted by the Ministry of Finance and Planning, these organizations submit a master list (also subject to approval by the Ministry) to the NDC of all the goods and products they wish to import under the programme. This list is kept on file by the Fiscal Incentive Unit of the Customs and Excise Division.

(d) Tariff preferences

82. Dominica grants duty-free access on imports from other CARICOM countries, provided they meet the CARICOM rules of origin criteria. Preferential imports are, however, subject to the customs service charge.

(v) Other levies and charges

83. In addition to customs duties, the Government levies a 3% customs service charge (CSC) on all imports, with the exception of goods imported by the Government, goods imported by passengers as personal baggage or household and personal effects, and goods temporarily imported under the provisions of an international convention to which the Government of Dominica has acceded. The charge is applied on the c.i.f. value of the customs declaration, and has its legal basis in the Customs (Control and Management) Act, Cap 69.01 of the Laws of Dominica, as amended by S.R.O. No. 41 of 1985, and S.R.O. No. 51 of 1987.

84. In addition to import tariffs and the CSC, Dominica imposes three other types of taxes on imports: specific and ad valorem excise taxes on alcoholic beverages, tobacco products, motor vehicles, and fuels; a value-added tax of 10-15%; and an environmental surcharge imposed at specific rates on some products and on an ad valorem basis on others (Table III.3).

Table III.3

Other taxes and levies on imports

Excise tax
Scope and rates:
Goods subject to excise tax and their respective rates, are listed in the First Schedule of Excise Tax Act 8 of 2005:

Alcoholic beverages and tobacco: EC$1.25 per litre on HS 2203.00.10-2203.00.90 (beer, stout, other); EC$1.20 per litre on HS 22.04 and 22.05 (wine and vermouth; EC$0.28 per litre on HS 2206.00.10, 2206.00.90 (shandy, other); EC$8.50 per litre on HS 2208.20.00, 2208.50.00, 2208.60.00 (brandy, gin & Geneva, vodka); EC$12.50 per litre on HS 2208.30.00 (whiskey); EC$2.60 per litre on HS 2208.40.00, 2208.70.00, 2208.90.90 (rum & taffia, liqueurs & cordials, other); EC$22.00 per kg on tobacco products

Fuels: approved rates per gallon of fuel as obtained from the Ministry of Trade and SRO No. 5 of 2006: EC$0.45 per kg on petroleum gases (LPG) and other gaseous hydrocarbons

Motor vehicles: 15% of the sum of the c.i.f. value, import duty, environmental surcharge and customs service charge (CSC) on motor vehicles HS 87.02 (motor vehicles for the transport of ten or more persons including the driver); 87.11 (motor cycles); 28% of the sum of the c.i.f. value, import duty, environmental surcharge and CSC on motor vehicles HS 87.03 and 87.04 (motor cars and motor vehicles for transport of goods)

Exemptions: Exemptions are listed in the Second Schedule of Excise Tax Act 8 of 2005:
Non-alcoholic beverages; alcohol and spirits describes under Customs Tariff Heading 22.07; aromatic bitters described under Custom Tariff Headings 2208.90.10 & 2208.90.20; tobacco described under Customs Tariff Heading 24.01; gases in gaseous state described under Customs Tariff Heading 2711.20.00; lubricating oils and greases described under the Customs Tariff Heading 2710.19.80; motor vehicles, alcohol and tobacco imported by Diplomatic Missions, International Organizations and Personnel; vehicles donated (as a gift) to approved charitable organizations; imports of building materials for churches who have met the following requirements as specified in the regulations; motor vehicles falling under HS 87.04 imported by approved farmers; goods imported into Dominica for temporary use with the permission of the Comptroller of Customs

Value-added tax
Scope and rates:
Based on c.i.f. value + import duty + environmental surcharge + customs service charge + excise tax

15% most goods; 0% fuel, flour, milk, rice, sugar, certain agricultural and fishing inputs to the extent provided in regulations, invalid carriages and orthopaedic appliances

Exemptions:
An unconditional gift of goods to approved charitable organizations and to the State; new enterprises benefiting from incentives under the Fiscal Incentives Act, Hotels Aid Act and Consumption Tax Order in respect of capital investments for the initial investment up to commencement of operations; goods from the approved list, imported by the church, or obtained from locally registered manufacturers; imports of building materials for churches who have met the following requirements as specified in the regulations; vehicles purchased by diplomats; bona-fide unsolicited goods not exceeding EC$75 in value; goods imported by Dominicans returning home for permanent residence; goods imported by diplomatic missions, international organizations and motor vehicles, alcohol and tobacco imported by personnel or diplomatic missions

Environmental surcharge
Scope and rates:
Specific

EC$3,000.00 per unit on motor vehicles over five years old; EC$10.00 per unit on used tyres; EC$20.00 per unit on used refrigerators; EC$20.00 per unit on used freezers; EC$10.00 per unit on electric accumulators (batteries)

Based on c.i.f. value

1% on motor vehicles less than five years old; 1.5% on goods in containers made of plastic, glass, metal, paperboard or wood; 1% on all other goods

Exemptions:
Raw materials and packaging materials imported for use in the manufacture of goods by locally registered manufacturers; raw materials and packaging materials imported for the purposes of the manufacture of goods for export; raw materials and packaging materials imported for use in the agriculture sector; milk, sugar, flour, rice or pharmaceuticals; goods imported by the Government; goods imported by military forces; goods imported by diplomatic missions, international organizations and personnel; goods imported into Dominica for temporary use with the permission of the Comptroller of Customs; goods imported by established and recognized charitable institutions

Source: Dominica Customs and Excise Division (undated), Handbook for Import and Export Procedures In the Commonwealth of Dominica. Viewed at: http://www.investdominica.dm/Customs%20Import%20and%20Export %20Procedures1.doc; and information supplied by the authorities.

85. Excise tax is levied on fuel, tobacco, alcohol and motor vehicles at various rates in accordance with Excise Tax Act 8 of 2005. Taxes apply to both imports and domestic products. The tax on imported motor vehicles it is based on the c.i.f. value, including the import duty. All other excise taxes on domestic and imported products are set at specific rates (Table III.3).

86. VAT has been in place since March 2006, under the Value Added Tax Act No. 7 of 2005; it is imposed at a general rate of 15%, but a reduced rate of 10% applies to hotel accommodation. This tax replaced the consumption tax (20% on most goods), the sales tax (7.5% on all goods), the hotel occupancy tax (5%), and the entertainment tax. Most exports, and fuel and a few basic commodities are zero rated. Most social services, as well as agricultural and fishing inputs, are exempt.

87. Tax reforms, including the introduction of the VAT, have been undertaken in part out of concern over the fiscal impact of trade liberalization. In the Budget Address for Fiscal Year 2006/07, the government announced its intention to undertake a comprehensive review of the experience under the VAT, one year after its implementation, taking into consideration the many concerns and queries raised, but that it would take no action that would weaken the VAT system or complicate its administration. The review was expected to be completed by September 2007.[33]

(vi) Import prohibitions, restrictions, and licensing

88. Some goods are prohibited from importation into Dominica, as provided under schedules in Customs (Control and Management) Act No. 16 of 1995. The importation of goods listed in Part I of the Act's Fifth Schedule (Table III.4) is not permitted, while Part II of the Fifth Schedule contains goods that are permitted upon certain conditions contained in the law (Table III.4). These prohibitions or restrictions are generally for health and safety reasons, to safeguard the Dominican public, or to curb the illegal use and import of certain products. Goods originating from Iraq are prohibited.

89. Dominica's import-licensing regime was notified to the WTO in 2001.[34] Dominica responded to the WTO questionnaire on import-licensing procedures.[35] The import-licensing system is regulated by the Supplies Control (Restricted Imports and Exports) Order, SRO No.14 of 2003. It is administered by the Ministry of Foreign Affairs, Trade and Labour. In addition, permits are required from other government entities for imports of several categories of goods (Table III.4). Statistics are not available on the number of licences requested or granted.

90. Import licences are not required for most goods and products. The Supplies Control (Restricted Imports and Exports) Order 14 of 2003 (Negative List) specifies four items for which licences are necessary when imported from a non-CARICOM country, and two additional products imported from any country other than a CARICOM LDC. The licence must be obtained prior to the importation of any of these goods. The authorities note that, with the exception of wheat flour, licences are issued to importers upon request. Completed application forms are sent to the Ministry of Foreign Affairs, Trade and Labour for approval, through the Consumer Affairs Division, processing is within 1-2 days and the licence is valid for six weeks from the date of issue. The validity period cannot be extended; however, a new licence may be issued. Upon importation, the importer is required to submit the approved licence, along with the relevant customs declaration forms, to the Customs Department.

Table III.4

Goods subject to prohibitions, licensing, or other restrictions, 2007

Category	Products	Legal authority
Prohibited goods	All gold and silver articles of foreign manufacture bearing imitations of British assay marks, or British assay marks not complying with the standard indicated by the mark; substandard coins of legal tender in Dominica; counterfeit coins; food unfit for human consumption; indecent or obscene articles; infected animals, or their carcasses, hides and skins; pistols in the form of stylographic pens or pencils; any goods bearing the coat of arms of Dominica; shaving brushes manufactured in or exported from Japan; and fictitious stamps	Part I, Fifth Schedule, Customs (Control and Management) Act No. 16 of 1995
Goods that may be imported in accordance with the conditions and restrictions prescribed in the law	Arms and ammunition; fireworks; cannabis; gunpowder; imitation banknotes; kerosene; spirits; tobacco; tear gas; cigarette-making appliances (either machine or paper); and all other goods the importation of which is restricted by any other enactment	Part II, Fifth Schedule, Customs (Control and Management) Act No. 16 of 1995
Goods that may be imported only under licence from the Ministry of Foreign Affairs, Trade and Labour	Liquefied petroleum gas (butane and propane) except for domestic use; diesel, petroleum spirits, kerosene, aviation fuel, acetylene; oxygen; sulphuric acid; kerosene oil and other petroleum products with a flash point below 73 degrees F; spirits and wine, unless specifically reported as such and unless (a) in a cask containing 5 gallons or more, (b) in a demijohn containing one gallon or more, or (c) in glass or stone bottle properly packed in cases, each case containing one gallon or more, except as expressly permitted by the Comptroller, in writing Tobacco, cigarette, cigarillos or cigars, unless specifically reported as such and, unless imported by Parcel Post in whole and complete packages not less than 20 lbs net weight	Noxious and Dangerous Substances Control Act No. 4 of 1982; Customs Control and Management Act
Import licence required from the Ministry of Foreign Affairs, Trade and Labour: goods from any non-member of CARICOM	Potatoes, fresh or chilled; footwear with upper straps of thongs assembled to the sole by means of plugs of rubber or plastic	Schedule I of the Supplies Control (Restricted Imports and Exports) Order No. 14 of 2003
Import licence required from the Ministry of Foreign Affairs, Trade and Labour: goods from any country other than a CARICOM LDC (i.e., Belize or a Member State of the OECS)	Wheat flour; oxygen; carbon dioxide; candles of paraffin wax	Schedule II of the Supplies Control (Restricted Imports and Exports) Order No. 14 of 2003
Licence from the Commissioner of Police	Arms and ammunition; gunpowder, blasting powder, detonators, high explosives of any description; fireworks	Firearms Act of 1973
Must be imported by the Government of Dominica	Tear gas	Customs Control and Management Act
Permission of the Minister of Finance required	Cigarette-making appliance, whether machine or paper	Customs Control and Management Act
Import permit from the Chief Veterinary Officer and a health permit from the country of origin (see section (2)(ix))	Live animals	Animals Act Chap. 61:02
Table III.4 (cont'd)
Health certificate from the veterinary department, Ministry of Agriculture and certificate from country of origin (see section (2)(ix))	Meat of animals, poultry or bird carcasses and parts thereof	Animals Act Chap. 61:02
	Plants, vegetables, fruit and plant products	Plant Protection and Quarantine Act No. 19 of 1986
Registration with Pesticide Control Board and import permit (see section (2)(ix))	Pesticides	Plant Protection and Quarantine Act No. 19 of 1986

Source: Dominica Customs and Excise Division (undated), Handbook for Import and Export Procedures in the Commonwealth of Dominica. Viewed at: http://www.investdominica.dm/Customs%20Import%20and%20Export %20Procedures1.doc, supplemented by additional information supplied by the authorities.

91. In January 2006 at its twentieth meeting, the CARICOM Council for Trade and Economic Development (COTED) approved a new set of tariffs to be applied by the lesser developed countries (LDCs) on items that require a licence due to action under Article 164 (see below). This includes wheat flour. Dominica is in the process of implementing the new rates and, in early 2007, stopped issuing licenses on wheat flour.

92. Irish potatoes are no longer subject to seasonal import restrictions. Effective 1 July 2006, a seasonal tariff on potatoes was implemented: potato imports "in-season" (i.e., from February to June inclusive in any year) attract a tariff of 150%; and "off-season" potato imports (the rest of the year) attract a tariff of 10%.

(vii) Contingency measures

(a) Anti-dumping and countervailing measures

93. Dominica notified its anti-dumping and countervailing duty legislation to the WTO in 1999.[36] No questions were asked by other WTO Members on the basis of this notification. The legislation was not amended following the adoption of the WTO Agreements on Anti-Dumping and on Subsidies and Countervailing Measures. There is no record of use of measures of this type in Dominica. There have never been any anti-dumping investigations requested, initiated, or acted upon in Dominica.

94. Customs Duties (Dumping and Subsidies) Act No. 14 of 1959 regulates the use of anti-dumping and countervailing measures. The Act authorizes the imposition of duties where goods imported are considered dumped or subsidized, if it is considered in the interest of the State. In accordance with the Act, the application of duties is to be consistent with the GATT 1947. Duties chargeable under the Act are in addition to customs duties.

(b) Safeguards

95. Dominica did not avail itself of the special safeguard provisions of the WTO Agreement on Agriculture, nor of the right to use the transitional safeguard mechanism in the Agreement on Textiles and Clothing. Dominica has notified the WTO that it does not have any legislation with respect to safeguards.[37] However, the authorities note that, at the multilateral level, Dominica follows WTO safeguard rules.

96. The use of safeguards is permitted by CARICOM rules: as a less developed country, Dominica may invoke the special provisions in Chapter 7 of the Revised Treaty of Chaguaramas, in particular article 150, when necessary, to impose safeguard measures. Article 150 (Safeguard Measures) entitles a disadvantaged country to limit imports of goods from other Member States for up to three years, and to take such other measures as COTED may authorize. Dominica has not made use of any safeguard measures during the period of this Review.

97. In January 2006, COTED agreed that under the provisions of Article 164 of the Revised Treaty, tariff rates could be increased on a list of goods (Table III.5). It was further agreed that this decision would be reviewed after a period of five years. The authorities indicate that Dominica is in the process of implementing the new rates. In most cases, the rates agreed by COTED are higher than those applied by Dominica in 2006, but in a few cases, they are lower.

Table III.5

Goods under CARICOM Article 164 exceptions

HS code	Description	Duration	MDC rates	Third party	Applied MFN rate (2006)
2202.100	Aerated beverages	10 years	70%	100%	145%
201.10	Waters; other waters	10 years	70%	100%	135%
22.03	Beer	10 years	70%	100%	50-75%
2202.90.20	Malt	10 years	70%	100%	60%
34.06	Candles/paraffin wax	7 years	40%	50%	20-125%
0910.50	Curry powder	5 years	30%	40%	40%
19.02	Pasta	5 years	50%	100%	20%
23.09	Animal feed	10 years	50%	100%	15-20%
9401.60 /9403.60	Wooden furniture	10 years	40%	50%	40%
8419.19	Solar water heaters	10 years	40%	50%	20-60%
2804.40, 2811.21, 2901.292	Industrial gases/oxygen, carbon dioxide, acetylene	10 years	40%	50%	25%

Source: Information provided by the authorities.

(viii) Technical regulations and standards

98. Dominica submitted a statement to the WTO in 2001 on the implementation and administration of the Agreement on Technical Barriers to Trade.[38] Dominica has notified a series of technical regulations (compulsory standards) in ten notifications in 2005[39]: the subject matter included a code of practice for general principles of food hygiene; a specification for labelling of brewery products; and a specification for the limit on lead content in paints. All of the notifications were made in advance of the entry into force of the regulations.

99. Dominica Bureau of Standards (DBOS), established by the Standards Act No. 4 of 1999, is responsible for developing standards and technical regulations. The DBOS, which has been notified as the national enquiry point for the TBT Agreement[40], adopted the Code of Good Practice for the Preparation, Adoption and Application of Standards on 13 September 2000.[41] The DBOS is under the purview of the Ministry of Foreign Affairs, Trade and Marketing and is administered by the National Standards Council appointed by the Minister. The Minister on the recommendation of the DBOS, may declare a specification or draft standard to be a national standard, i.e. formally adopted by the Government. It may be compulsory (a technical regulation) or non-compulsory. The authorities indicate that these standards are prepared under the guidelines of Articles 2 and 4 of the TBT Agreement. Specifications are made public and open for comment before becoming standards; the same applies for revocations. Every declaration, revocation, or variation of a standard must be published in the Gazette.

100. The DBOS has been operating since 2000. The Bureau promotes the general adoption and implementation of technical regulations and standards, establishes or designates testing facilities or laboratories, and provides for the examination and testing of goods. The Bureau is also in charge of certifying that goods, services, processes, and practices conform with national, regional or international technical regulations and standards, and of declaring standards and keeping them under review. The DBOS may also provide advice to manufacturers on quality control.

101. The adoption or adaptation of technical regulations and standards is prepared by four technical committees for: food, food products and practices; labelling and packaging; manufacturing and chemical products; and building and construction materials.[42] Adoption/adaptation in Dominica is within the framework of the CARICOM Regional Organisation for Standards and Quality (CROSQ). One of CROSQ’s main objectives is the harmonization of standards within CARICOM. Standards adopted/adapted in Dominica are therefore mainly standards approved by the COTED, based on recommendations from CROSQ. Regional standards, whenever available, are based on international standards and guidelines prepared by ISO, IEC, and CODEX. If a standard does not exist at the regional level, Dominica undertakes the process at the national level, but the standard becomes part of the regional programme.

102. The authorities note that consultations among interested parties are encouraged in the process of adoption/adaptation of a technical regulation or standard, and for technical regulations only, through the WTO notification process; a 90 day comment period is part of the procedure. Standards are reviewed every five years and revised or withdrawn where necessary. National standards, including technical regulations, are reviewed every five years. The review or revision process is undertaken by the appropriate DBOS technical committee; the reasons for the revision or withdrawal are documented. No technical regulations or standards were withdrawn during the review period.

103. The DBOS has no mandatory certification of conformity; however, consideration is being given to implement a system based on third-party assessment in addition to inspection and certification. The authorities note that mechanisms to check compliance with technical regulations for both domestic and imported products (e.g., spot checks in the domestic market, customs inspections, or other) are being developed, and are intended to monitor compliance. When implemented, certification will be based on a mixture of type approval and 100% testing, depending on the type of product. The DBOS also intends to pursue activities in metrology and metrication. The National Standards Compliance system proposed for monitoring national standards involves: inspection and testing of samples of goods traded; market surveillance; and third party assessment, especially where the Bureau has limited capacity to test products, or for products coming from CARICOM countries. The DBOS intends to monitor products against the national standards at the ports of entry. Monitoring of locally manufactured products is through market surveillance and product certification.

104. In accordance with the Standards Act, the Minister for Foreign Affairs, Trade and Marketing may declare a standard compulsory (i.e., a technical regulation within the meaning of the TBT Agreement) or voluntary, upon recommendation of the DBOS. The Bureau may recommend that it be made compulsory for reasons of consumer safety or to protect against danger to health; to prevent fraud arising from misleading advertising or labelling; to ensure quality in goods produced for export; to ensure adequate information is given to the consumer; to ensure quality when the source of supply is restricted; and generally to ensure the quality of goods and services. This process provides opportunity for comment and notification to the WTO.

105. The DBOS may request the testing of goods subject to a technical regulation. If tested goods fail to conform to the regulation, domestic use or export is prohibited unless the goods are marked as imperfect. Moreover, upon application by the Minister, a High Court may order the producer to cease the production of a good that does not conform with a technical regulation.

106. Limited testing services in agri-processing are provided by the Produce Chemist Laboratory. In the context of Dominica's previous Review, it was noted that the laboratory needed to be upgraded before it was competent to assess conformity to standards. The Government has established a programme for a National Center of Testing Excellence in Dominica which envisions capacities in microbiological, chemistry, metrology, physical, and environmental laboratories, based on international guidelines. The project is at the final design and preconstruction phase. None of the existing labs are involved in assessing conformity with technical regulations and standards: it is anticipated that the infrastructure should be on the ground by the end of 2008. The engineering laboratory of the Ministry of Housing, Land, Telecommunications, Energy, and Ports also provides some testing services. These are not, however, related to procedures for assessing conformity with technical regulations or standards. To the extent that testing is conducted outside of Dominica, the DBOS prefers to use facilities in other OECS member states.

107. With respect to imports, the DBOS may order the inspection of goods for which a technical regulation has been declared in Dominica: the goods may enter only after certification that the samples examined conform to the standard.

108. The DBOS began its conformity-assessment activities in the first quarter of 2007, and is still in the process of establishment. Goods may be allowed to enter Dominica if accompanied by a certificate of examination and compliance with the standard, issued by a laboratory or similar institution in the country of origin that is recognized by the Bureau. The Government has endorsed 11 (one of which has two parts) national standards as compulsory standards; all were notified to the WTO while they were still in the comment phase. A three-month grace period has been granted to persons involved in trade to conform to these requirements. This also provided the Bureau the opportunity to establish its standards monitoring compliance system to effectively monitor these standards. The Bureau recognizes certification from CARICOM Member countries that has a similar national compliance system to that of Dominica. Additionally, products with a certification mark from British Standards Institution, Indian Bureau of Standards, and Australian Bureau of Standards are recognized by Dominica.

109. Eleven standards were adapted from existing regional and international standards between 2000 and 2006: all were made compulsory (ten different standards, one with two parts), and hence became technical regulations. The DBOS has adopted 42 CARICOM standards, 26 voluntary national standards, and 11 technical regulations (mandatory national standards).[43] Nine of these technical regulations refer to labelling (general principles, pre-packaged foods, pre-packaged goods, electrical appliances, brewery products, cigarettes, and textiles); there is also a code of hygiene practice for foods production and processing, and a limit for lead in paint. The DBOS maintains an inventory of standards and technical regulations.

(ix) Sanitary and phytosanitary measures

110. Dominica has made no notifications under the SPS Agreement.

111. Plant Protection and Quarantine Act No. 10 of 1986 regulates the import of plants, planting material, fruits, vegetables, plant products, soil, for phytosanitary reasons. The importation of live animals and animal products, meat and meat products, milk and milk products, is regulated by the Animals Act Chap 61:02. Plant articles may require an import licence from the Minister of Agriculture and a phytosanitary certificate from the appropriate government department or agency in the exporting country. In accordance with the Plant Protection (Importation) Regulations, all imports of plants, soil, dung, living insects, non-marine invertebrate animals, and any accompanying container or wrapping material must enter Dominica through a designated port of entry and be subject to examination by officers of the Plant Protection Office. Exceptions apply to dry hulled rice; nuts; dried, candied, canned, or other processed fruit and vegetables; roasted coffee; commercial yeast; cooked plant products; and seeds of vegetables or ornamental plants from Canada, the United Kingdom, or the United States. Dominica has introduced SPS measures during the review period, but the authorities could not indicate the number of measures. The authorities note that SPS measures in force are guided by standards provided by international standards setting bodies (ISSBs), in particular the IPPC and the OIE.

112. Pesticide Control Act No. 15 of 1974 provides for controls on the importation, sale, storage, and use of pesticides. Imports of pesticides require a licence from the Pesticide Control Board; licences from the relevant Minister are also required for imports of drugs.

113. Dominica is a contracting party to the International Plant Protection Convention (IPPC), and a member of the Codex Alimentarius Commission, but is not a member or the World Organisation for Animal Health (OIE).

114. The authorities note that trading partners are informed of new or modified national SPS regulations that could affect trade on a bilateral and peer-to-peer basis, through SPS enquiry points. The measures are not, however, notified at the multilateral level.

115. Testing and inspection are conducted at the border and port of entry, where samples are taken and brought to the laboratory for confirmation. This process is guided by ISPM #23 (2005) “Guidelines for inspection” as set out by the IPPC. Two units of the Ministry of Agriculture perform tests: the Plant Protection and Quarantine Services, and the Produce Chemists Lab. A new molecular lab was installed in 2005. Some testing is also done outside the country for pests that are outside the capacity of these facilities.

116. Dominica has no rules regarding GMOs: the Environmental Coordinating Unit has the authority to give advice. A new plant protection act that is under development will cover GMOs and LMOs. It will be a harmonized act in the CARICOM region, and may be approved at the regional level before the end of 2007. It will be in line with the revised text of the IPPC, and would give the Plant Protection Unit sole authority to deal with these matters. In some cases, this may lead to the imposition of restrictions.

117. There are no recorded imports of GMO or hormone-fed animals. The authorities could not indicate whether such imports would be subject to special procedures or restrictions.

118. Dominica has not entered into any international SPS agreements, but is monitoring developments in international negotiations on to this topic.

(2) Measures Directly Affecting Exports

(i) Documentation, export taxes, and restrictions

119. Exporters are not required to register; and no products are subject to export licensing.

120. All exports require a customs declaration form and commercial invoice. Other documents may be required, depending on the type of goods and the destination, for example a certificate of origin, health certificate or permit, or a permit to export firearms or ammunition. All export shipment documents are examined by customs at the port of exit. The authorities note that export verification is designed to prevent smuggling and ensure that the appropriate certificate accompanies restricted goods. Imports/exports of restricted goods have a statutory presumption of denial in the absence of separate approval by Customs. Part 2 of the Fifth Schedule of the Customs (Control and Management) Act Chap. 69:01 lists a number of goods and products that are restricted: certain conditions must be met, and export warrants are required in certain cases. These instruments are used in order to collect taxes, compile statistics, and to verify information.

121. A 3% customs service charge is due on any goods that are either: re-exported from a government warehouse, private warehouse, and other premises under fiscal control; or re-exported from transit. There are also export royalties of EC$0.50/ton on sand and EC$0.45/ton on stone; and an EC$1.50 stamp duty on re-exported good. Data were not available on the revenue from the export royalties.

122. Exports of any wildlife (live or dead) or parts thereof are forbidden, in accordance with Section 32 of the Forestry and Wildlife Act. This export prohibition is for the protection and conservation of wildlife in Dominica. Export of all CITES-related products are prohibited.

(ii) Export subsidies, financing, support, and promotion

123. Dominica has not notified to the WTO whether it provides export subsidies on agricultural products.

124. It has notified the Fiscal Incentives Act No. 42 of 1974 (as amended) as providing export subsidies.[44] The Act provides for, among other things, exemption from income tax on export profits for up to five years to any enterprise if export profits amount to 10% or more of total profits; export profits accrue from an approved product under the Act; the enterprise is not already benefiting from exemptions during a tax holiday period; and the enterprise is engaged in a non-traditional industry exporting a product not traditionally exported from Dominica (section (3)(ii) below).[45]

125. In a decision of 27 October 2006, the Committee on Subsidies and Countervailing Measures agreed to continue until 31 December 2007 the extension and continuation granted in G/SCM/63 and Add.1-3 of the transition period, under Article 27.2(b) of the SCM Agreement, for the elimination of export subsidies that take the form of full or partial exemptions from import duties and internal taxes and that were in existence under the programme on 1 September 2001.[46]

126. Dominica and the other OECS countries, together with eight other WTO Members, made a proposal in early 2006 that would extend export subsidies to 2018.[47] In the view of these countries, export subsidies are necessary because they consider themselves to be "particularly vulnerable and unable to fully and better integrate into the multilateral trading system and benefit from the positive aspects of international liberalization". In July 2007, the General Council decided to extend the date for the dismantlement of export subsidies to end 2015. Members benefiting from the extension must take, from 1 January 2008, the necessary internal steps with a view to eliminating export subsidies under the programme before the end of the final two-year phase-out period. In addition, from 1 January 2008 and no later than 31 December 2009, the Member must notify each beneficiary under the programme indicating that no export subsidies within the meaning of SCM Article 3.1(a) will be granted or maintained beyond the end of calendar year 2015.[48]

127. Dominican manufacturing exporters may make use of the Eastern Caribbean Central Bank (ECCB), political and commercial risks insurance facilities against the risks involved in exporting on commercial terms. The rates on loans from commercial banks under the guarantee schemes are generally lower than rates obtainable otherwise. The ECCB also provides preshipment financing, offering competitive rates for purchases of raw materials and other working-capital needs, against confirmed export orders. It also provides post-shipment financing, allowing exporters to convert trade receivables into cash to enhance working capital. The ECCB may, alternatively, provide guarantees to commercial banks for advances to exporters of non-traditional manufactured goods for the purchase of working capital, through its Export Credit Guarantee Scheme. Dominica has not used ECCB export financing guarantee schemes during the review period. Exporters may also receive export promotion support from the OECS Export Development Unit (EDU).

128. The Market Support Service Department of the Dominica Export and Import Agency (DEXIA) is in charge of facilitating exports of agricultural, agri-processed, and manufactured goods (section (3)(iii)(c)). Support is provided to exporters in areas such as market research and market entry requirements; product identification and development; participation in trade fairs, exhibitions, and promotions; organization of trade missions; organizational development; financial risk development; and training. To meet market entry requirements, DEXIA runs quality assurance programmes. An action plan is expected to be completed in 2007, with a view to enhancing DEXIA’s efficiency, streamlining its functions, and improving accountability.[49]

(3) Measures Affecting Production and Trade

(i) Legal framework for business and taxation

129. Foreign or local individuals wishing to establish a business in Dominica have various options: sole proprietorships; partnerships; corporations; joint ventures; and international business companies. Pre-existing external companies wishing to continue operations in Dominica must register. All business undertakings with more than 20 owners or shareholders are required to incorporate. The Companies Act No. 21 of 1994 regulates company incorporation in Dominica. Companies may be incorporated by sending signed articles of incorporation to the Registrar of Companies. Other legislation regulating incorporation and the operation of enterprises in Dominica includes: Alien Landholding Act No.17 of 1995; the Registration of Business Names Act (Chapter 78:46); and International Business Company Act No. 10 of 1996. For companies registered under the Companies Act, the one-off registration fee (certificate of incorporation) is EC$750. There is also an annual renewal licence fee that varies according to the share capital, from EC$200 to EC$700 plus EC$100 per EC$100,000 in additional shares. A business name can be registered for EC$100.

130. Most businesses are required to obtain a trade or professional licence under the Trade and Professional Licence Act. No trade licence is required for a business that trades solely in domestic goods. The procedures and costs for a business licence vary according to the type of business: a store that sells alcoholic beverages in any form (on-sale, off-sale, wholesalers, etc.) must obtain a licence from a magistrate, and pay an annual licensing fee of EC$100 to EC$1,000, depending on the size and nature of the business.

131. The Government has identified the processes involved in the ownership, transfer, and registration of land as an area for reform. In 2005, it appointed a Land Tenure and Administration Reform Task Force to oversee the process of improving and modernizing the legislative, institutional, and administrative systems. Based on recommendations emerging from this process, procedural changes were made in 2006 relating to the grant of state lands and the transfer of allocated lands. The Task Force is still meeting regularly, and is developing additional recommendations with regard to procedures, automation, and other issues.

132. The governing legislation for corporate taxation is the Income Tax Act (Chapter 67:01): the corporate tax rate is 30%. There is no capital gains tax. The withholding tax is assessed on a sliding scale, depending on the type of transaction: rental payments in respect of immoveable property (25%, after deductions for expenses), dividends (15%), rental payments in respect of moveable property (20%), other payments to non-residents (25%), and fees payable to public entertainers (30%). Land transfer taxes include an assurance fund fee (1%), a judicial fee (2.5%), a solicitor’s fee (3%, on which a 15% VAT is paid), and stamp duties (2.5% on the vendor, 4% on the buyer). Foreign investors are allowed to repatriate 100% of profits. Effective 1 January 2008, the withholding tax will be made uniform at a range of 15% for the various categories currently specified (see budget address of FY2007/2008.

133. International Business Company Act No. 10 of 1996 regulates the establishment of offshore companies. IBCs may be incorporated for any activity not explicitly prohibited by the International Company Act (mainly banks, insurance companies, or indecent or illegal activities); they are constituted as limited-liability companies in which shareholders or directors do not have personal liability in case of default.

134. Dominica is among the 41 countries and other jurisdictions that the OECD identified in 2000 countries as tax havens. Dominica signed a Commitment Letter with the OECD on transparency and the exchange of information, and was removed from the "uncooperative" list. Dominica committed to transparency measures, and to share information in criminal tax matters by January 2004, and in civil tax matters by January 2006.

135. The Financial Intelligence Unit, established in 2001 as part of the Ministry of Legal Affairs, under Money Laundering Prevention Act No. 20 of 2000, investigates allegations of illegal activity. It refers matters to the Attorney General’s office for prosecution through the Director of Public Prosecution. During the review period one investigation led to prosecution, conviction, and the imposition of the maximum fine. The Financial Services Unit (FSU) of the Ministry of Finance will replace a unit that has been in place since 1996, operating as a regulatory body for offshore financial services. The Exchange of Information Act authorizes the FSU to give information to requesting countries on tax matters. Legislation is under consideration in Parliament to provide the legal status for this institution.

(ii) Incentives and assistance

136. Like other OECS countries, Dominica grants a number of investment incentives. The Ministry of Tourism, Industry, and Private Sector Relations is responsible for the administration of these schemes. In mid-2007 the bodies that directly administer these programmes were in transition. Two new agencies were expected to be operational by mid 2007. The Invest Dominica Authority Act, which was passed in Parliament in April 2007, provides for the creation of a new Invest Dominica Authority, which will be responsible for promotion and stimulation of foreign investment. It will replace the Dominica National Development Corporation (NDC) in the administration of incentives schemes. The new institution will operate on the same basis as the NDC, in that it receives applications for incentive benefits and makes recommendations to the Government on the level and types of concessions to be granted. The ultimate decision-making authority will remain with Cabinet. According to the authorities, the new institution will have a more specific focus and more institutional resources than its predecessor. Parliament also enacted in April 2007 the Discover Dominica Act of 2007, which authorized the creation of a Discover Dominica Authority to focus on the marketing of Dominica as a tourism destination. Like the Invest Dominica Authority, this new institution will take over jurisdiction of programmes under the control of the NDC.

137. Under Fiscal Incentives Act No. 42 of 1973 as amended by Act No. 3 of 1992 and Act No. 3 of 1994, a tax holiday of up to 15 years may be granted for the manufacture of approved products by approved enterprises, as follows: (i) Group 1 enterprises, in which local value is 50% or more of sales, up to 15 years; (ii) Group 2 enterprises, in which local value is between 25% and 50% of sales, up to 12 years; (iii) Group 3 enterprises, in which local value is between 10% and 25% of sales, up to 10 years; (iv) enclave enterprises, defined as those in which production is exclusively for export, up to 15 years; and (v) capital intensive enterprises, defined as those in which there is investment of not less than US$10 million, up to 15 years. The authorities nevertheless indicate that these guidelines are not used in the granting of incentives: they do not classify proposals into these groups, nor do they calculate the level of value-added of an investment. Decisions are based on such considerations as employment generation, the amount of capital, and the sector involved. Among the government's favoured sectors are hotels and ancillary services, agri-business, manufacturing, information and communication technology, and any other sector that has the potential to provide employment. The Ministry of Finance and Planning compiles a monthly report on the value of revenue forgone by way of concession granted under the Fiscal Incentives Act and other Relevant Legislation.

138. During the tax holiday, exemptions are available from income tax on export profits (by way of tax credits), and import duties on plant, equipment, machinery, spare parts, raw materials, or components thereof. Any enterprise may be exempted from import duties during a tax holiday if local value-added accounts for at least 10% local value-added of the amount realized from sales. Exemptions from income tax on export profits are granted for up to five years to any enterprise if its export profits amount to 10% or more of total profits, export profits accrue from an approved product, the enterprise is not already benefiting from exemptions during a tax holiday period, and the enterprise is engaged in a non-traditional industry exporting a product not traditionally exported from Dominica. The authorities note that the legislation speaks of local value added, the granting of incentives is predicted by the level of investment and employment generation in practice.

139. The 1992 amendment to the Act introduced the possibility of obtaining an income tax credit for capital expenditures for the construction, acquisition or improvement of assets by any person not enjoying an income tax holiday in relation to the relevant activity.[50] The Act also grants import duty exemptions on machinery, equipment, spare parts, building materials, raw and packaging materials, and others, as appropriate, to be used in eligible enterprises.

140. The products benefiting from the income tax credits on exports constitute almost US$18.5 million or 44% of Dominica’s total merchandise exports in 2005, and close to 300 persons are employed. Only one company continues to benefit from income tax credits on exports: total investment by this company, which manufactures soap, dental cream, and detergents, is EC$60 million (US$22 million).

141. In the view of the authorities, the provision of the export subsidy and other fiscal incentives under the programme constitutes a major deciding factor in the continuation of investment, export earnings, and employment generation. They state that the subsidy cannot be considered as trade-distorting at the multilateral level, given Dominica's very small share of world exports of these products (Table III.6).

Table III.6

Credits and trade under the Fiscal Incentives Act No. 42 of 1974

Year	Tax credits granted on exports (EC$’000)	Production (EC$’000)	Exports of subsidized products (EC$’000)	Subsidized exports as a share of total exports (%)	Imports of subsidized products (EC$’000)	Subsidized imports as a share of total imports (%)
1996	635	n.a.	53,847	38.9	4,224	1.2
1997	444	n.a.	53,327	37.8	4,100	1.1
1998	833	59,184	72,494	43.3	1,337	0.4
1999	568	41,684	64,164	42.6	3,313	0.9
2000	432	36,818	61,789	42.7	2,907	0.7
2001	61	33,399	55,589	47.1	1,865	0.5
2002	160	32,125	48,934	42.5	1,623	0.5
2003	213	17,771	28,336	26.2	0,271	0.1
2004	274	39,468	50,233	45.0	3,667	0.9
2005	813	40,408	26,929	23.9	0,641	0.1

n.a. Not applicable.

Source: Calculated from WTO document G/SCM/N/146/DMA, 6 July 2006.

142. The authorities state that, while the percentage of local value-added should, according to the Fiscal Incentives Act, determine the length of the tax holiday, in practice the source of raw materials, components, and parts is given very little consideration in granting fiscal incentives. Greater consideration is given to employment generation.[51] The authorities also note that the programme's export tax credit provision is one aspect that is in need of phasing out. In 2002 only one company benefited from this incentive, which was to expire in 2005, and consideration was thus to be given to amend the Act to remove the provision.[52] However, an extension of the incentives was granted to the company in 2005. According to the authorities, the current fiscal incentive programme will be modified within the framework of CARICOM. New harmonized fiscal incentive legislation is being prepared by CARICOM, and is expected to be completed by the end of 2008.

143. The Aid to Development Enterprises Act also provides for relief from import duties on raw materials and inputs, materials, tools, plant, machinery, and building materials. These goods must be for use in manufacturing processes; constructing, erecting or altering factories; equipping hotels; or goods packaging. The Hotels Aid Act and Income Tax Act No. 37 of 1982 allow for a tax holiday of up to 20 years for approved hotel and resort developments (see Chapter IV(v)). Companies registered under the International Business Companies Act are exempt from taxes, duties, and similar charges for 20 years from the date of incorporation. In general, approved projects are allowed exemptions from withholding taxes on dividends and interest payments.

144. The Customs Control and Management Act grants the Cabinet power to confer customs duty relief on goods or classes or descriptions of goods. The relief may take the form of an exemption from duty; or payment of a sum lower than the amount due, and may be made subject to certain conditions, including post-import conditions.

145. A recent World Bank study observed that "the pervasive use of tax concessions" is a "key feature of the present tax system in Dominica and other OECS countries".[53] It reported that during FY1999/00 to FY2002/03, revenue forgone by the Central Government in customs duties and consumption taxes due to tax concessions was on average 5% of GDP. It found that if all exemptions under the Customs Control and Management Act were repealed, a revenue gain of 1.9% of GDP would be expected, assuming zero elasticity of imports with respect to tariffs and consumption tax. The authorities indicate that the revenue forgone and the potential revenue gain from tax changes would now be lower than the World Bank projected in that report because the consumption tax has since been replaced by the VAT.

146. The Government of Dominica is committed to reducing tax concessions and statutory exemptions. According to the 2006 Supplementary Memorandum of Economic Policies, this could be achieved through tax reforms that reduce the marginal tax burden and do not allow for exemptions, and through a regional approach to tax exemptions and fiscal incentives.[54] Among Dominica's commitments to the International Monetary Fund is that information on concessions granted will be published on a regular basis in the Official Gazette.[55]

147. Dominican enterprises may receive concessionary credits funded or guaranteed by the Caribbean Development Bank (CDB) for projects between US$750,000 and US$5 million. The rate for loans from ordinary capital resources is 6% (public sector) or 8% (private sector) per year, with a repayment period of up to 22 years. Loans from special fund resources are granted to Dominica at an annual interest rate of 2.5%, with a repayment period of 30 years, including a grace period of 10 years.[56]

148. Support through concessionary loans is also provided by the Agricultural and Industrial Development Bank (AID Bank), established in 1982, with the mandate to promote economic development, both in the agricultural and industrial sectors, and to mobilize resources for such development. The AID Bank grants development loans to businesses and entrepreneurs for the establishment and development of production activities in Dominica. Interest rates are lower than for similar loans from commercial banks. An action plan for the AID Bank was completed in 2006 under which it would be reorganized to seek greater operational efficiency and accountability, and address identified weaknesses, for instance, in the audit practices, corporate governance, and loan underwriting standards.[57]

149. The Ministry of Agriculture, DEXIA, the Dominica Banana Producers Limited, the Inter-American Institute for Cooperation in Agriculture (IICA), and the Caribbean Agricultural Research and Development Institute (CARDI) provide general services for the agriculture sector. These include research, pest and disease control, training, extension and advisory services, inspection services, marketing and promotion, and infrastructure services. There are also some support programmes for diversification and for the development of agri-industries. The agriculture sector also benefits from tax relief on most agricultural inputs. This relief, which applied to the consumption tax, continues under the new VAT regime.

150. Dominica has neither free zones nor legislation allowing for their establishment.

(iii) Competition policy and regulatory issues

(a) Competition policy

151. Dominica does not have anti-trust legislation in place, nor does it have a competition policy authority. Under the revised Treaty of Chaguaramas, Chapter VIII provides for the enactment of harmonized competition policy legislation in CARICOM members.

152. Apart from utilities, there are no monopolies in Dominica.

(b) Price controls

153. Price controls are regulated by Supplies Control Act No. 21 of 1979, implemented through Supplies Control Petroleum (Prices) Order (SRO) No. 16 of 1980, and its amendments; Supplies Control Building Material (Cement) (Prices) Order (SRO) No. 19 of 1982; and Supplies Control Order (SRO) No. 25 of 1986, all subject to amendment. The Supplies Control Act authorizes the Minister responsible for trade to fix maximum prices for any goods.

154. Dominica has eliminated price controls on many goods during the review period, a significant economic reform. At the time of the previous report, more than 40 items were subject to the controls; that number has been cut to five items: gasoline, diesel, kerosene, liquefied petroleum gas, and cement. Prices are adjusted every four weeks for the petroleum derivatives on the basis of average posted prices. These price controls are set at a maximum, thus allowing companies to sell at lower prices if they choose. For cement, adjustments are considered periodically, based on changes in import prices.

(c) State-owned enterprises and privatization

155. Pursuant to Article XVII:4(a) of the GATT 1994, Dominica notified to the WTO in 2001 that it maintains two state trading enterprises: the Dominica Import Export Agency (DEXIA) and Dominica Banana and Marketing Corporation (DBMC).[58]

156. The DBMC, a state-owned enterprise established in 1984, was wound up in 2002 with the divesture of its business assets and liabilities. This was in accordance with the Dominica Banana Marketing Corporation (Divesture and Restructuring) Act No. 18 of 2002. The industry was privatized and restructured, and a new company, the Dominica Banana Producers Limited (DBPL), began operations on 1 August 2002. The DBPL is owned by banana farmers and other private-sector interested parties. In 2004, the DBPL was able to pay a dividend to farmers. It does not have a monopoly on the export of bananas, but it accounts for all exports of bananas to the European Communities (in cooperation with WIBDECO, the Windward Islands Banana Development and Exporting Company).

157. The DEXIA, established in 1986, is primarily responsible for the importation of basic food items and the promotion of Dominica's exports of agricultural produce (section (2)(ii)). Under Dominica Export and Import Agency Act No. 14 of 1986, and Dominica Export and Import Agency (Amendment) Act No. 5 of 1993, DEXIA has the exclusive right to import sugar (brown and white sugar, except EEC No. 1 used by bottlers, and icing sugar), and bulk rice (white and parboiled). The private sector may import rice in packages of 10 kg or less. There is also free competition among private traders with respect to icing sugar.

158. DEXIA purchases the commodities over which it has an exclusive right under competitive tender; long-term contracts are generally negotiated. The quantities imported are based on previous years' consumption and/or estimated demands. The mark-up on imports is determined by projecting an annual gross margin that will accommodate the administrative and operating cost of DEXIA's operations, given the contracted prices on commodities for the following financial year. The Government announced plans in 2005 to restructure DEXIA, in order to improve its efficiency and accountability. It is still seeking assistance to develop an action plan for restructuring DEXIA.

159. There have been no other privatization activities during the review period.

(iv) Government procurement

160. Dominica is not a party to the WTO Plurilateral Agreement on Government Procurement.

161. Public finance figures indicate that public sector current expenditure on goods and services totalled EC$45.9 million in 2006, some 6.8% of nominal GDP, while capital expenditure totalled EC$84.1 million (12.4%).

162. Dominica has no specific procurement office or board. Most purchases are on a ministerial basis, although tenders boards may be established on an ad hoc basis for large purchases (e.g., construction projects). The authorities indicate that new procurement legislation is under consideration. Based on examples from similar laws in other OECS countries, the new proposal is under development in the Ministry of Finance. The initiative is still in the early stages of development, but a formal proposal might be presented to Parliament before the end of 2007. The legislation will be based on best practices in the choice of modalities and other aspects of procurement.

163. The current rules governing government procurement in Dominica are contained in Finance Administration Act No.4 of 1994. Procurement for government agencies is centralized for large projects: tenders must be submitted to government tenders boards, established on an ad hoc basis, which tend to base decisions on lowest price considerations. Procurement is open to all suppliers and no preferences are granted to domestic or regional suppliers. Tender notices are published in the Government Gazette. The procurement of supplies is decided at agency level.

164. Procurement for small amounts is decentralized. In practice, there is no specified threshold between large and small projects. For the procurement of supplies, local purchase orders are used in many cases and procurement is at ministry level; quotations from three different local suppliers are obtained, and the supplier is chosen on a price-competitive basis. In some cases, decisions also take into account the quality and skill level of the bidder. Preferences are not granted either to Dominican nationals or to other OECS or CARICOM countries. This is generally not possible, however, for large projects as there may be no local firms capable of providing the necessary services. Small and micro enterprises are favoured in community projects (e.g., a small road repair project).

165. At present, most procurement is on the basis of a short-list and the prequalification of contractors. Some bidding is done on the basis of publicized tenders. Selective tendering tends to be used for local community projects, where the communities themselves are invited to participate, however, according to the authorities, invitations are sent out to prequalified contractors in most cases; and bids from non-invited contractors would also be considered. Open, publicized tendering is the norm for the largest contracts.

166. Publicized tenders are published domestically, except when regional and international publication is required by a project’s funder (e.g., an international financial institution). Even when a project is domestically published, foreign suppliers of goods and services may still bid.

167. Imports for government consumption are exempt from customs duties and from the consumption tax. Imports of unconditional gifts of goods consigned to the state are also exempt from these charges.

168. As a member of CARICOM, Dominica is participating in the development of a common policy framework on public procurement in advancing the CARICOM Single Market Economy.

(v) Intellectual property rights

169. In 2001, Dominica notified to the WTO its main intellectual property laws, and its new legislation with respect to geographical indications, protection of layout-designs (topographies) of integrated circuits, protection of new plant varieties, and marks, collective marks and trade names.[59] Dominica's IPR legislation was reviewed by the TRIPS Council in 2001.[60] Dominica responded to questions posed by several WTO members, on issues such as the types of intellectual property covered by its laws, the compliance of these laws with TRIPS provisions, the procedures followed in the granting of intellectual property rights, and the provisions for enforcement.[61]

170. The two most significant reforms to Dominica’s intellectual property laws in the review period were to the copyright legislation in 2003, and Dominica’s new status as a signatory to the WIPO Copyright Treaty.

171. While new legislation was enacted in several areas during 1998-99 (i.e., within the period of the last Review), many of these laws have not yet entered into effect. The authorities indicate that the regulations to bring into force the new acts on trade marks, patents, industrial designs, geographical indications, new plant varieties, and layout of integrated circuits, were expected to be approved by Cabinet and gazetted by the end of the third quarter of 2007. The establishment of an intellectual property office is still outstanding, and is under active discussion within Government. While the Patent Act No. 8 of 1999 provides for the establishment of a Registry of Companies and Intellectual Property, and of a Registrar, no decision has yet been made regarding the establishment of such an office, nor its staffing and budget. The administration of intellectual property laws remains in the hands of an official in the Ministry of Legal Affairs and Immigration, who serves as the acting registrar of intellectual property.

172. Dominica is a member of the World Intellectual Property Organization (WIPO) and a signatory to a number of international agreements on intellectual property rights (Table III.7).

173. Dominica notified that the Ministry of Legal Affairs, Immigration and Labour, is its national enquiry point with respect to international cooperation for the protection of intellectual property rights. The Patents Act 1999 established the Companies and Intellectual Property Office; though the office does not have a full complement of staff it is currently functioning. The registration of patents, trade marks and industrial designs is administered by the Registry of Patents, Designs and Trade marks.

Table III.7

Dominica's membership in international agreements on intellectual property rights

Convention/Agreement	Date of membership
The Convention Establishing the World Intellectual Property Organization (1970)	26 September 1998
The Paris Convention for the Protection of Industrial Property, Stockholm Text (1883)	7 August 1999
The Berne Convention for the Protection of Literary and Artistic Works, Paris Text (1886)	7 August 1999
The Patent Cooperation Treaty (1970)	7 August 1999
International Convention for the Protection of Performers, Producers of Phonograms, and Broadcasting Organizations (Rome Convention, 1961)	9 November 1999
Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks	8 September 2000

Source: World Intellectual Property Organization.

174. Data were not made available on the number of trade marks, patents, and copyrights granted during the review period.

(a) Trade marks

175. New trade marks legislation, as provided in the Marks, Collective Marks and Trade Name Act No. 12 of 1999, has not yet entered into force. This law will repeal the colonial-era Registration of United Kingdom Trade Marks, and the Merchandise Marks Act.

176. Under the new legislation, the exclusive right to a trade mark will be acquired through registration with the Registrar of Marks. Trade marks are protected for a period of ten years renewable for consecutive similar periods Non-use of a trade mark for a period of three years may entail the loss of the right to the exclusive use of the trade mark. The Act provides for the right of priority of an earlier national or regional application filed by the applicant in any State party to the Paris Convention or Member of the WTO. The Act also specifies that the provisions of any international treaty in respect of marks and protection against unfair competition apply in Dominica and, in case of conflict with domestic legislation, prevail over it. The owner of a registered mark may grant licences with respect to it. Collective marks may be registered and protected, but may not be the subject of a licence contract. Acts of unfair competition are declared unlawful by Act No. 12 of 1999.

(b) Patents and industrial designs

177. New patents legislation, as provided in the Patents Act No. 8 of 1999, had not yet entered into force: it is intended to replace section 91 of the U.K. Patents and Designs Act of 1907. The new patent legislation reflects the internationally accepted criteria for registration of universal novelty, inventive step, and industrial applicability, along with a full search and examination procedure. The period of protection for patents is 20 years. There are no provisions for compulsory licensing.

178. Similarly, the Industrial Designs Act No. 2 of 1998 has not yet entered into effect. The Act provides that industrial designs may be registered if they are new prior to the date of filing, or the priority date of the application for registration. The right to registration belongs by law to the creator, who is named as such in the registration of the industrial design. Protection is for five years from the filing date, renewable for two consecutive periods of five years.

179. Dominican legislation establishes a right of priority for national, regional or international applications for patents or industrial designs filed in a country party to the Paris Convention or a WTO Member. Although this Act repealed the United Kingdom Designs (Protection) Act, designs registered under the latter Act remain in force for the unexpired period of protection.

(c) Protection of layout-designs of integrated circuits

180. Protection of Layout-Designs (Topographies) of Integrated Circuits Act No. 11 of 1999, which has not yet entered into force, will repeal the United Kingdom Designs (Protection) Act. Under the new law, layout-designs must be original in order to be protected. The right to registration belongs by law to the creator, and is transferable. The term of protection is ten years from the date of the first commercial exploitation, anywhere in the world, of the layout-design, or of the filing date for application for registration.

(d) Protection of new plant varieties

181. The Protection of New Plant Varieties Act No. 14 of 1999, which is not yet in force, will grant breeder's rights in respect of plant varieties that are new, distinct, homogeneous, stable, and given a denomination that is acceptable for registration. Applications for breeder's rights may be filed by citizens of Dominica, of a Contracting Party to the International Convention for the Protection of New Varieties of Plants, or any other State that grants reciprocal treatment to Dominica. Protection is for 25 years for vines, and forest, ornamental, and fruit trees, and 20 years for all other species.

(e) Copyright

182. Copyright Act No. 5 of 2003, which is not yet in force, will replace the Copyright (Dominica) Order, 1965, of the United Kingdom. The new law provides for the protection of literary and artistic works and for related matters. Literary, dramatic, musical, and artistic works; sound recordings, films, broadcasts or cable programmes; and typographical arrangements of published editions will be protected by copyright provided that such work is original and has been written down, recorded or otherwise expressed in some material form. Copyright protection is for life plus 50 years. According to the authorities, the Act’s enforcement regime is TRIPS-compliant.

(f) Enforcement

183. Dominica submitted a response to the WTO checklist on issues of enforcement in intellectual property.[62]

184. The High Court has jurisdiction in cases of dispute relating to the application of all intellectual property rights. Any person who is aggrieved by a decision of the Registrar of Companies and Intellectual Property would have the right of appeal to the High Court. Each piece of legislation includes provisions for criminal sanctions and details a minimum fine and/or a minimum term of imprisonment. The following remedies may be ordered by the judicial authorities: damages; injunctions; seizure, forfeiture and destruction or disposal of infringing goods and material and implements used for their production; and other remedies. Infringement of right may lead to a fine between EC$10,000 and EC$30,000, or to imprisonment for three to ten years, or both. There is no provision requiring ex officio action by Customs officials. All actions must be initiated by the copyright owner or exclusive licensee or by the owner (or authorized user) of the industrial property right.

185. Customs authorities are not authorized to seize goods that infringe marks to prevent them from entering the country, except in the case of copyright, at the request of the right holder.

IV. trade policies by sector

(1) Agriculture

186. Agriculture, and specifically bananas, continues to play a dominant role in the Dominican economy. Dominica's non-banana crops include plantains, citrus fruits, root crops and vegetables. The sector employs approximately a third of the labour force and is an important foreign exchange earner. The authorities have noted the positive potential impact of agriculture on poverty reduction in Dominica.[63] Agriculture accounted for 18.5% of GDP in 2005, although the contribution of the sector to GDP has declined significantly since the mid 1980s when it contributed up to 30%. Reduced preferences and vulnerability to external shocks, such as frequent natural disasters, have contributed to the decline of the industry since Dominica's last TPR.

187. The general performance of the agriculture sector has declined steadily during the review period. Agricultural output declined by 6.6% in 2001, and by 1% in 2002.[64] Despite a slight resurgence in 2004, with growth of 3.5%, the sector contracted by approximately 3.6% in 2005, mainly due to the performance of the banana industry[65]: banana production fell by 16.7% to just under 11,000 tonnes. This figure represents one fifth of production levels during the 1990s; the contraction is consistent with the performance of the sector in the five-year period to 2004, and is due to a range of factors, including a smaller farmer base and natural disasters. Output in the agriculture sector as a whole for 2006 however, increased by an estimated 1.6%, buoyed primarily by increases in banana production, which rose by approximately 5.4% due to slight increases in the grower base, more stable prices, and more favourable weather conditions.[66] The total acreage under cultivation is estimated at around 3,000 hectares.[67]

188. Non-banana agricultural output has increased modestly in recent years. Livestock, forestry, and fisheries have all expanded since 2004, although growth in these subsectors has averaged approximately 1% in the last three years.

189. Dominica's fishing sector is small and generally informal; it employs an estimated 3,000 fishers, but only 1,000 on a full-time basis. The authorities note that the majority of fishers operate on a part-time, subsistence basis, and that fish landings have amounted to no more than 1,400 tonnes annually during the period under review. Dominica is attempting to improve its fisheries infrastructure by development of a number of fishing zones and upgrading facilities available to fishermen, as well as improving access to various technologies aimed at improving efficiency in the sector, and reducing waste and spoilage. Policy efforts to improve the economic potential of the fishing sector are in line with Dominica's integrated development goals, including the sustainable use of its biological marine and coastal resources.[68]

190. Dominica's average tariff on agricultural goods (WTO definition) is 25.8%, with the highest applied rate set at 150%. This is also the bound rate in some cases; the final bound average in the agriculture sector is 116%. Using the ISIC classification the average tariff on agriculture was 23.6% in 2006. Dominica does not require trade licences for imports of most goods. However, import licences are required for potatoes and wheat flour (Chapter III(1)). Agricultural products constituted an average of 36.4% of Dominica's exports between 2000 and 2006 (Table AI.I).

191. In 2006, a number of supermarkets in the United Kingdom announced that they would be purchasing bananas regularly from Dominica and other windward island banana producing countries. The authorities in Dominica regard the arrangements as important for the sustainability of the banana industry. In consultation with a range of stakeholders and the World Bank and IMF, the authorities in Dominica are also attempting to promote growth in the agriculture sector, primarily as part of an overall strategy to combat poverty. The Government has identified as medium-term objectives, an increase in agricultural production and exports as a means to increase employment and agriculture-related incomes. The strategies for achieving these objectives include more aggressive pursuit of crop diversification; increased emphasis on trade facilitation and investment in the sector; and increasing research and development to assist farmers.[69]

(2) Manufacturing

192. Dominica produces relatively low value manufactured goods, with production revolving around, inter alia, agri-processing, some assembly of plastic and metal goods, and textile production. Agri-industry includes beverage production using a variety of raw materials, including coconuts, citrus, and other fruits. Dominica also produces some chemicals, including dentals creams, as well as soaps and lotions.

193. The performance of the manufacturing sector in Dominica has been inconsistent during the review period: manufacturing contracted by 2.2%[70] in 2002, but expanded consistently between 2004 to 2006, by an average of 4.1%.[71] Performance in the sector is dependant on the overall performance of one dominant player primarily producing dentals creams and soaps.

194. Manufacturing is an important contributor to Dominica's exports, accounting for an estimated 58.6% of the total in 2006 (Table AI.1). Dominica's average tariff for non-agricultural goods (WTO definition) was 9.5%. The average tariff on manufactured goods was (ISIC) 11.5%, while tariffs range between 0-165% (Table III.2).

195. The Dominican authorities are placing greater policy emphasis on export promotion in manufacturing and other sectors, through a range of strategies, including the structures to conduct market research, and assisting local producers develop business plans. The principal agency for such programmes is DEXIA, a statutory organization responsible to the Ministry of Trade. There are also a range of incentive schemes to promote investment in manufacturing (Chapter III (3)(ii)).

(3) Services

(i) Main features

196. Dominica made sector-specific commitments under the General Agreement on Trade in Services, in four of the 12 main service areas (20 out of the 160 services subsectors: financial (reinsurance); tourism and travel related (hotel development); recreational, cultural and sporting (entertainment and sporting services); and communications (courier and telecommunications services). Except in telecommunications, no market access or national treatment limitations have been scheduled on cross-border supply and consumption abroad, unless the provision of the service was considered technically unfeasible. In contrast, limitations on commercial presence were scheduled in most areas where commitments were undertaken.

197. Dominica has scheduled horizontal market access limitations on commercial presence and movement of natural persons. As for the former, foreign service providers are subject to a specific withholding tax on foreign investors and specific regulations on landholding. In addition Dominica reserves a number of small business opportunities for nationals, permitting foreign suppliers only on the basis of an economic needs test. As regards movement of natural persons, employment of foreign natural persons is normally limited to people with managerial and technical skills that are in short supply or not available in Dominica. Dominica has not listed any Article II (MFN) exemptions.[72]

(ii) Telecommunications

198. Dominica made GATS commitments on telecommunications services, including the competitive principles set out in the Reference Paper under the Fourth Protocol, which entered into force on 27 June 2000.[73] Dominica's GATS Schedule reserves commercial presence in voice telephony (both fixed and mobile), packet-switched data transmission, circuit-switched data transmission, telex, telegraph, private-leased circuit, and facsimile services for the exclusive operator. The supply of electronic mail, voice mail, on-line information and data-base retrieval, electronic data interchange, Internet and internet access services (except voice), enhanced value-added facsimile services and some other services is open to other suppliers, provided the network of the exclusive operator is used to supply these services.

199. Dominica's GATS commitments contrast with the considerably more open telecommunications market situation. There are no limits on foreign ownership of telecommunications companies. Telecommunications companies and consumers are not subject to any specific telecom taxes. There are no sector-specific fiscal incentives in the sector.

200. Telecommunications in Dominica is under the responsibility of the Minister for Housing, Lands, Telecommunications, Energy and Ports. The National Telecommunications Regulatory Commission of Dominica is responsible for regulating the sector.[74] At the regional level, the Eastern Caribbean Telecommunications Authority (ECTEL) has an important advisory and policy-coordinating role (see Overview Report). The main legislation governing the sector is the Telecommunications Act (No. 8, 2000, as amended by Act No. 17 of 2001)[75], which is substantially the same as the respective telecommunications laws of the other OECS ECTEL-member states. This law, inter alia, specifies criteria for the granting of a licence, universal service conditions that may be applied, and procedures for concluding interconnection agreements (see Overview Report). The Telecommunications (Retail Tariff) Regulations SRO 18 of 2004, stipulate that where there is effective competition in the telecommunications market, licensees may set tariffs. The NTRC may designate services where there is insufficient competition as regulated services. Within 30 days of such a designation, the telecommunications provider must file an applicable tariff with the Commission for approval. The tariffs for regulated services provided by Cable and Wireless in Dominica are determined in accordance with a Price Cap Plan which was agreed between Cable and Wireless and the Government of Dominica. There are harmonized Price Cap Plans in all the ECTEL States.

201. Key changes since liberalization have been a major increase in mobile penetration (from 10% in 2002 to 84% in 2006) and a surge in foreign direct investment in 2004 and 2005, which tailed off in 2006. There has been a gradual increase in internet penetration, but this remains low at 6.6%. Local traffic from fixed lines has decreased slightly, while other indicators have remained reasonably stable (Table IV.1).

Table IV.1

Telecommunications statistics, 2002-06 (March)

	2002	2003	2004	2005	2006
Telecommunications revenues (EC$ million)	87	83	68	82	89
Fixed line penetration (%)	32	34	35	30	28
Mobile penetration (%)	10	18	33	62	84
Internet penetration (%)	3	6	8	9	6.6
Telecommunications investment (EC$ million)	13	8	27	44	16
Employment in telecommunications	283	273	275	282	294
Local traffic originating from a fixed line (million minutes)	..	84	72	60	70
International outgoing traffic (fixed and mobile) (million minutes)	9	9	8	10	13

.. Not available.

Source: ECTEL.

202. As at March 2006, eleven individual licences had been issued: five for fixed-line services, three for public mobile services, and three for internet networks and services. There was some consolidation in the mobile market with the acquisition of Cingular Wireless by Digicel in 2005.[76]

203. There are four providers of fixed-line services who, according to the authorities, are operational (Cable and Wireless; Marpin Telecoms and Broadcasting Company Ltd; SAT Telecommunications Ltd; and Orange Dominica Ltd[77]). A fixed line service licence has also been granted to IRISTEL (DA) Inc., but this company had not yet begun operations as at July 2007. Some local fixed line tariffs which are regulated by a Price Cap Plan, have fallen. According to ECTEL, as a result of the plan, off-peak tariffs for local fixed-to-fixed-line calls have decreased by 20%, peak fixed-to-mobile tariffs have fallen by 7%, and off-peak fixed-to-mobile tariffs have fallen by 8%. Tariff rates were not available.

204. Certain other fixed-line tariffs have not changed since the introduction of the Price Cap Plan on 1 January 2005. These included peak time local fixed-to-fixed line calls (EC$0.07 per minute); international tariffs for calls to the United States (EC$1.65 per minute); fixed line calls to other ECTEL Member States (EC$0.50 per minute) and calls to non-member Caribbean islands (from EC$0.66 to EC$0.99 per minute). The residential fixed line access charges have increased slightly, from EC$20 per month to EC$24 per month. The authorities confirmed that call-back and by-pass are not prohibited in Dominica.

205. Competition has been introduced in the mobile market with two additional licensees commencing operations in addition to Cable and Wireless (Digicel Dominica Ltd. and Orange Dominica Ltd.). According to ECTEL more than 90% of mobile subscribers have pre-paid mobile phones. Tariffs for mobile-to-mobile ranged from EC$0.50 to EC$0.60 per minute for calls on the same network, to EC$0.85 for calls between networks in 2006. Mobile-to-fixed tariffs ranged from EC$0.50 to EC$0.90 per minute. As noted by the authorities, the growth in cellular use has been driven primarily by increases in the availability of prepaid mobile services and affordable handsets.

206. There are two providers of internet networks and services in Dominica (Cable and Wireless; Marpin Telecoms and Broadcasting Company Ltd). SAT Telecommunications Ltd. has been granted a licence but had not started operations as at July 2007. While internet penetration levels remain relatively low, there has been a marked shift from dial-up to high-speed internet access; 74% of subscribers had broadband access in 2006, compared with 40% in March 2003. This reflects the greater affordability of high speed internet access; rates have declined by up to 50%.

(4) Financial Services

207. All on-shore and offshore financial services sectors, with the exception of domestic banks, are regulated by the Financial Services Unit. This was established in 2004 through a Cabinet Decision. A bill is before Parliament to give the FSU its formal authority and mandate.

208. Dominica made GATS specific commitments on reinsurance services. It has bound unrestricted market access and national treatment for cross-border supply and consumption abroad. Commercial presence is subject to the conditions set out in the Insurance Act (market access) and a withholding tax (national treatment), and the movement of natural persons is subject to work permits and immigration regulations.

(i) Onshore financial services

(a) Banking

209. The Eastern Caribbean Central Bank has sole responsibility for the regulation of domestic commercial banks.

210. ECCB member countries have harmonized, in substance, their national banking legislation, based upon a template Uniform Banking Act (see Overview Report). The main legislation governing onshore banking services is Banking Act No. 16 of 2005. The amendments to the Uniform Banking Act and hence the national Act (No. 16 of 2005), are to upgrade legislation in relation to the Basle core principles. These changes include strengthened oversight of financial institutions by the ECCB, and more stringent and systematic reporting requirements for such institutions.

211. Any person or business intending to carry out banking services in Dominica must obtain a licence from the Ministry of Finance, Planning and Overseas Nationals, and fulfil the licensing conditions (see Overview Report). These include that banks (local and foreign financial institutions) must have a place of business in Dominica, which may be an office or a mobile office. Dominican citizens and companies are not restricted from borrowing or placing deposits with banks abroad. Dominica no longer maintains exchange controls on capital and non-trade current transactions (see Chapter 1). There are no limitations on foreign investment in onshore banks in Dominica. Foreign-owned banks licensed and incorporated in Dominica are subject to the same requirements as locally owned and incorporated banks and may provide the same services. Foreign branches are required to provide a statement of no objection from their home regulatory authority. There are no nationality or citizenship requirements for bank managers or directors.

212. There are three branches of foreign-owned commercial banks operating in Dominica: Bank of Nova Scotia; First Caribbean International Bank (Barbados) Ltd.; and RBC Royal Bank of Canada. The National Bank of Dominica is wholly locally owned and incorporated. The Government of Dominica owns 48% of the shares of the National Development Bank.[78] In 2006, the weighted average spread between deposit and lending interest rates was 5.8 percentage points (3.4 deposit, 9.2 lending).[79]

213. Dominica has one development bank, the Dominica Agricultural, Industrial and Development Bank (AID). The AID's main source of funds is from the Caribbean Development Bank. Its key areas of funding include: agriculture, tourism, manufacturing, services, transportation, mortgage, and education. It offers consumer loans as well as venture capital financing.[80] According to the authorities, recent measures have been taken to strengthen the AID with respect to addressing non-performing loans, and erosion of the bank's capital base, and to strengthening oversight and internal controls.

214. There are 16 credit unions in operation in Dominica.[81] Four provide checking account services for their members. The Dominica Cooperative Societies League Ltd (DCSLL) represents and provides a variety of services to all of Dominica's credit unions.[82] According to the DCSLL, over 70% of Dominica's population belongs to one of the credit unions, which accounted for around 25% of total financial sector loans and 30% of deposits. The IMF has noted that credit union balance sheets have weakened over time, and that an inspection of the largest credit union, the Roseau Cooperative Credit Union (RCCU), generated concerns about the level of non-performing assets, account handling practices, and the quality of the audit process. The IMF further noted that the Financial Services Unit (FSU) would be working with the RCCU to address the identified shortcomings, and would carry out targeted inspections of the other credit unions. It advised that the FSU be provided with legal authority for direct supervision of the non-bank financial sector.[83] According to the authorities, amendments to the Co-operative Societies Act (No. 15 of 1996) and revised regulations have been drafted but not yet implemented.

(b) Insurance

215. There are 19 registered insurance companies in Dominica[84] (up from 18 in 1999). All but one are foreign-owned, mainly by companies located in other Caribbean countries, Europe, and the United States. Five provide long-term insurance, twelve provide general insurance, and two provide both long-term and general insurance. There are no reinsurance companies registered in Dominica.

216. The main legislation governing onshore insurance is Insurance Act No.17 of 1974, as amended in 1990. New insurance legislation, which would be harmonized among all OECS countries, has been drafted but not yet enacted (see Overview Report). Supervision of insurance business is in the hands of the Supervisor of Insurance within the Financial Services Unit of the Ministry of Finance.

217. Insurance companies must put down a statutory deposit, which is higher for foreign-owned companies than locally owned companies; and higher for life insurance than general insurance. Deposit requirements for life insurance are: EC$100,000 for foreign companies and EC$50,000 for local companies; and for general insurance are: EC$30,000 for foreign companies and EC$20,000 for local companies, or, in each case, 30% of premium income from general insurance in Dominica during the financial year preceding the date of deposit, whichever is less. Minimum paid-up capital requirements are not stipulated in the Insurance Act. All other requirements apply equally to foreign and local companies. There are no residency requirements relating to directors or managers of insurance companies. There is no legislation preventing Dominican citizens or companies from obtaining insurance coverage from firms located abroad.

(ii) Offshore financial services

218. Offshore banking in Dominica started in the mid 1990s. Within the Ministry of Finance, the FSU is responsible for regulating offshore financial services. The main legislation governing offshore banking is Offshore Banking Act No. 8 of 1996 (as amended by Act No. 2 of 1997; No. 18 of 1999; and No. 16 of 2000).

219. In June 2000, Dominica was identified as a non-cooperative jurisdiction by the Financial Action Task Force (FATF) (see Overview Report). Among the main concerns identified were that: Dominica had outdated legislation on proceeds of crime, and mixed financial services legislation; that company law provisions created obstacles to the identification of ownership; and the offshore sector appeared to be largely unregulated.[85] In addition to changes to existing legislation, Dominica set up the Money Laundering Supervisory Authority (MSLA) and the Financial Intelligence Unit in 2001 and created an Offshore Advisory Council. In October 2002, the FATF removed Dominica from its list of non-cooperative countries.

220. Dominica had one offshore bank, down from six in 2000. According to the authorities, these bank closures were as a result of the FATF report and subsequent reforms.

221. Offshore banks may only conduct banking business in currencies other than EC$. Under the Offshore Banking Act, companies must have a physical presence in Dominica and two individuals as their authorized agent and alternate agent residing in the country; they must maintain a minimum permanent capital of US$1 million or 5% of deposit liabilities, whichever is greater, as well as liquidity with a major international bank of at least 12% of total assets. At the commencement of activities, the paid-up capital must be at least US$1 million in cash. Offshore banks are required to maintain a reserve fund to which they must transfer not less than 25% of their yearly profit. The annual licence fee for offshore banks is US$8,000.

222. Offshore insurance companies are regulated by Exempt Insurance Act No. 14 of 1997 and the Exempt Insurance (Amendment) Act of 2000. There are no licensed offshore insurance companies in Dominica.

223. Under the Exempt Insurance Act, to benefit from the status of exempt insurance, a company must be incorporated in Dominica under the Companies Act 1994.[86] All risks and premiums must originate from abroad, and shareholders must reside outside Dominica. Some nationality requirements also apply: at least one of the directors of the licensed company must be a resident citizen of Dominica. Minimum paid-up capital must be US$100,000. Various tax exemptions apply. The Exempt Insurance (Amendment) Act 2000, inter alia: specifies the criteria the Minister should consider when deciding whether to issue or refuse a licence; lays out the supervisory powers and duties of the Insurance Supervisor, and the Supervisor's rights to access information; introduces penalty fees for the late or non-submission of audited financial statements; and introduces special provisions on mutual assistance in criminal matters.

(iii) Air transport

224. In 2006, there were nearly 85,000 air-passenger arrivals in Dominica. Both of Dominica's airports, Melville Hall and Canefield, are owned by the Government. Neither provides direct flights to major international destinations. A project to expand Dominica's air transport infrastructure, the Air Access Improvement Programme, is under way with completion scheduled for June 2008. It involves: extending and upgrading the terminal building at Melville Hall airport to make it International Civil Aviation Organization (ICAO) compliant, and to satisfy post-2001 security requirements; extending and lighting the runway; building sea defences; introducing facilities to enable night landings as well as navigation aids and communication equipment; and expanding parking facilities. In addition, road transport from the airport is being upgraded. The Government of Dominica sees these improvements as key to enhancing Dominica's tourism sector and thereby its economic growth.[87] A stated long-term objective of the Government is to work with the tourism industry on an international airport providing jet access.[88]

225. In volume terms, the vast majority of Dominica's cargo trade is shipped by sea. In 2006, 102,722 kg of cargo arrived by air, and 270,000 tons by sea.

226. The main legislation governing air transport in Dominica is Civil Aviation Act No. 21 of 2005. There are no foreign investment restrictions on ownership of domestically incorporated carriers. Currently, Dominica does not have any domestically incorporated airlines.

227. The Minister of Housing, Lands, Telecommunications, Energy and Ports is responsible for air transport in Dominica. At the regional level, safety and security oversight is provided by the Eastern Caribbean Civil Aviation Authority (ECCAA) (see Overview Report). The Air Transport Licensing Board, which is part of the Ministry, advises the Minister in relation to applications for air transport licences as well as tariffs to be charged for air passenger and cargo transport. Under the Civil Aviation Act (2005), licences are granted taking into account factors such as the existence of other air services in the area, the period for which air transport services have been operated by the applicant or by other operators, safety, continuity, regularity and efficiency concerns, the financial resources of the applicant, and the type of aircraft to be used. Although there are no specific nationality requirements, the Civil Aviation Act empowers the Minister in charge of civil aviation, to refuse an air service licence to any person who is not a citizen of Dominica or a body incorporated in the Dominica and substantially controlled by citizens of Dominica.[89]

228. Responsibility for airport administration lies with the Dominica Air and Sea Ports Authority (DASPA), established by the DASPA Act of 8 December, 2006. Previously, airports were under the Airport Services Division within the Ministry of Housing, Telecommunications, Energy and Ports. The Authority is charged with providing a coordinated and integrated system of airports, seaports, and port services and managing the assets, liabilities, resources and functions of the ports within the overall policy of the Government. The law, however, allows the Authority to contract out any of these responsibilities, with the authorization of the Minister: in practice ground handling is provided by private local companies. The authorities note that the DASPA is expected to provide greater operational efficiency in ports and airports, and to generate revenue; thus they expect more joint partnerships with the private sector in the future.

229. Dominica levies a travel tax on air tickets purchased, an embarkation duty on passengers leaving Dominica by air, and a security charge levied on passengers (see section(v)).

230. Dominica is not a contracting party to the ICAO. It has bilateral air services agreements with France; CARICOM (the Multilateral Air Transport Agreement); and the Netherlands. Dominica has not made any GATS commitments on air transport services.[90]

(iv) Maritime transport

231. In volume terms, the vast majority of Dominica's cargo trade is shipped by sea. In 2006, 270,000 tons of cargo arrived by sea, compared with 102,722 kg by air. The volume of sea cargo has grown gradually over the review period.[91] In 2006, nearly 39,000 passengers arrived by sea (just under half of arrivals by air). The Ministry of Housing, Lands, Telecoms, Energy and Ports is responsible for maritime transportation policy formulation and management.

232. The International Maritime Act of 2000 established an International Ships Registry, for commercial vessels providing international maritime services. International business companies and foreign maritime corporations that fly the Dominican flag are not taxed on their income or assets. According to the authorities, there are 156 vessels registered in the International Ship Registry. Various fees and charges are levied on ships registered on the international ship registry, including an initial, one-time registration fee of EC$3,500 for ships over 1,000 NT, and annual fees that vary according to the net tonnage of the vessel.[92] According to an agreement between the Government of the Commonwealth of Dominica and the Dominica Maritime Registry Inc., the Government's return is 13.5% of the gross revenues when the registry's gross revenues are under EC$10 million. No figures were available on the revenue accruing to the Government from the registry.

233. Dominica has around 65 domestic vessels. Oversight responsibility for ships engaged in international trade, rests with the Commonwealth of Dominica Maritime Administration (MARAD), which reports to the Minister of Finance and Planning. Records relating to vessels are maintained at an office in the United States. In 2005, Dominica Maritime Registry Inc. (DMRI) also took over responsibility for the domestic ships register.[93]

234. The ports of Dominica are owned and administered by the state-owned Dominica Air and Sea Ports Authority (DASPA), which has the authority to manage Dominica's ports and provide all port services. The law establishing DASPA, opens the door for the Authority to contract out any of these responsibilities, with authorization of the Minister. Dominica has five ports: Woodridge Bay Harbour and a ferry terminal, both in Roseau; Longhouse in Portsmouth; Anse de Mai; and Cabrits Cruise Ship Berth in Portsmouth. As noted in the previous review of Dominica, cabotage services are open to foreigners. According to the authorities, on average, 15 units are unloaded per hour at Dominica's commercial ports

235. In 2003, the costs of freight as a percentage of the value of imports in Dominica was 7.4%. This is below the developing country average (9.1%).[94]

236. Dominica levies head taxes (which includes an environmental fee) on cruise ship passengers; a travel tax on tickets purchased for vessels leaving Dominica; and an embarkation duty on passengers leaving Dominica (section (v) below).

237. Dominica is a member of the International Maritime Organization (IMO) and participates in a number of its conventions.[95] The authorities note that over the review period, investments have been made to bring the main ports into compliance with the International Ship and Port Facility Security Code (ISPS Code), and work is ongoing with respect to other facilities.

(v) Tourism

238. Dominica has made GATS specific commitments on "hotel development", limited to hotels with a capacity in excess of 50 rooms. Development of hotels with a lower number of rooms is subject to an economic needs test.

239. In 2006, Dominica attracted 83,916 tourists (stayover); the Caribbean was the main source of stayover tourists (46,579 tourists) followed by the United States (22,011). Cruise passenger numbers reached nearly 380,000. Visitor expenditures in 2006 were estimated at EC$185.3 million.[96]

240. The Minister of Tourism is responsible for policy formulation and implementation in the tourism sector. Dominica's National Development Corporation (NDC) has responsibility for promoting Dominica as an investment location and as a tourist destination.[97] The NDC however was expected to be replaced by two new agencies in mid 2007 (Chapter III(3)(ii)). The Dominica Hotel and Tourism Association, and the Dominica Water Sports Association are private-sector associations in the tourism industry.

241. Tourism is seen as one of Dominica's future growth sectors.[98] In January 2006, the Government adopted a national tourism policy, "Dominica Tourism 2010", as well as an action plan to implement the policy.[99] This includes developing Dominica's niche for attracting tourists seeking nature-based, cultural and heritage, and soft-adventure holidays. Upgrading Dominica's domestic tourism infrastructure has been identified as a key challenge, particularly with respect to air access, but also with respect to roads and ports. Improved destination marketing and investment promotion policies are envisaged, as well as supportive policies, such as human resources development and crime reduction. Dominica has received support to develop its tourism capacity from donor agencies (mainly the EC, CDB and USAID) and international financial institutions.[100]

242. Under the Hotels Aid Act (1991) and the Fiscal Incentives Act, the Minister responsible for tourism may grant licences to investors constructing hotels (of not less than five bedrooms) to import building materials and articles of hotel equipment free of all customs duties. Customs duties already paid may also be drawnback. Imports for capital investments, up until the commencement of the hotel's operations may also be exempt from VAT under the Value Added (Amendment) Act 2006. Under the Income Tax Act, No.37, 1982, as amended by Act No. 12 of 1997, income tax exemptions are available to property developers for the construction and extension of hotels; this tax relief is available for a maximum of twenty years. Tax relief, may be granted subject to certain terms and conditions, for example, investment thresholds, and employment of Dominican nationals. Most hotels and guest houses in Dominica are locally owned. There has not been a big influx of foreign investment into hotel development, although the Government is in active discussions with foreign investors regarding a major hotel and villa development at Woodford Hill. No figures were available on the revenue forgone by the Government as a result of the incentives provided.

243. The Tourism (Regulations and Standards) Act (No. 19, 2005) provides for the creation of a Quality Assurance Unit to develop and monitor standards for the tourist industry, and a licensing committee to assess applications for tourism services for submission to the Minister for approval.

244. A number of tourism-related taxes and charges are levied by the Government, including an embarkation of EC$55 on passengers leaving by air or sea (with a lower rate of EC$45 for nationals)[101]; a cruise passenger head tax of US$5; a hotel room tax of 10% (levied under the Value Added Tax Act No. 17 of 2005); and a travel tax of 7.5% on tickets (for travel by air and sea) purchased or issued in Dominica in respect of a journey commencing anywhere, or purchased or issued anywhere in respect of a journey commencing in Dominica (Travel Tax Act 2003). Figures on the amount of government revenue generated by these charges was not available.

(vi) Professional services

245. Dominica did not make any GATS specific commitments on professional services.

246. According to the authorities, the Government has the exclusive power to legislate on the practice of professions. There is no single law regulating professional services: there is legislation governing engineers, architects, lawyers, and doctors. According to the authorities, no professions are specifically reserved for nationals by law, nor are there residency requirements for the practice of any profession. No mutual recognition agreements have been signed.

247. Since 2003, practicing engineers must be registered by the Board of Engineering, established under Engineering Profession Act No. 22 of 2002; and practicing architects must be registered by the Board of Architecture, established under Architecture Profession Act No. 4 of 2003. The Board of Engineering and the Board of Architecture have regulatory responsibility for their professions and, inter alia, are mandated to assess qualifications and experience, and conduct examinations of persons applying for registration.

248. Dominica does not yet have an accreditation body in place, however an Accreditation Act, which was passed in Parliament in 2006 (Act No. 13 of 2006), provides for the establishment of such a body, and sets out the process and procedures by which an institution or programme of higher education would be accredited. The Trade and Professional Licences Act requires the payment of a specified fee for the practice of a scheduled list of professions. According to the authorities, this, however, is largely a revenue-generating measure and is not tied to a regulatory objective.

249. A number of steps are being taken at the national and CARICOM levels to give effect to the requirements of Chapter III of the Revised Treaty of Chaguaramas, which relates to the right to establishment and the provision of services within CARICOM. According to the authorities, a Draft Model Professionals Bill has been developed at the CARICOM level, which inter alia, deals with requirements and procedures for registration and licensing of certain services providers, including professional service providers. This should form the framework for laws for specific professions to be transposed into national legislation.

250. As the result of a CARICOM initiative to enhance the free movement of skilled persons, professional service providers, by virtue of being university graduates and CARICOM nationals may enter and work in Dominica without a work permit under the Caribbean Community Skilled Nationals Act No. 30 of 1995.[102]

251. Dominica is a contracting party to the CARICOM Agreement Establishing the Council for Legal Education (see Overview Report). In 2003, Dominica enacted legislation (Act No. 2 of 2003) to give effect to the provisions of the Institute of Chartered Accountants of the Eastern Caribbean Agreement, and is now a member of the Institute; a local chapter was set up in Dominica in 2006. The Institute does not yet have responsibilities for mandatory licensing of chartered accountants. Chartered accountants must be affiliated with, and licensed, by international accounting bodies, such as the ACCA and IFAC, and meet the required conditions for registration to those bodies. Dominica is also a member of the Regional Nursing Body and the Caribbean Accreditation Authority for Education in Medicine and Other Health Professions (CAAM-HP).

(vii) Other offshore services

252. Offshore businesses in Dominica are regulated by the Financial Services Unit of the Ministry of Finance.

253. The operations of offshore companies, other than banks and insurance companies, are regulated by International Business Company Act No. 10 of 1996. Offshore companies are allowed to open bank accounts in Dominica, and do their accounting and hire professional and other services there. They are also allowed to hold shares in other companies incorporated in Dominica through the International Business Company Act, or through the Companies Act. Companies may be incorporated for any activity not explicitly prohibited by the International Business Company Act (mainly banks, insurance companies, or indecent or illegal activities); they are constituted as limited-liability companies in which shareholders or directors do not have personal liability in case of default. They must pay a registration of incorporation fee of US$90 and an annual renewal licence fee of US$150. They are granted a 20-year tax holiday from the date of incorporation, and are not subject to the Exchange Control Ordinance. There are 11,796 international business companies registered in Dominica. According to the authorities, EC$2.23 million in government revenue was generated from the offshore sector in 2006.

REFERENCES

Caribbean Development Bank (2004), Annual Country Report 2003. Viewed at: http://www.caribank.org/Publications.nsf/AR2003_Part1/$File/AR2003_Part1.pdf?OpenElement.

Caribbean Development Bank (2006), Annual Country Report 2005. Viewed at: http://www.caribank.org/Publications.nsf/EReview2005_dominica/$File/ECReview2005_dominica.pdf?OpenElement.

Caribbean Development Bank (2007), Annual Country Report 2006. Viewed at: http://www.caribank.org/AnReport.nsf/AER06-Dom/$File/AER2006_Dominica.pdf?OpenElement.

Commonwealth of Dominica (2005), Budget Address for the Fiscal Year 2006/2007: "Towards Growth and Social Protection. Viewed at: http://www.daic.dm/docs/budget_address_2005.doc.

Commonwealth of Dominica (2006a), Budget Address for the Fiscal Year 2006/2007: Enhancing the Investment Climate. Viewed at: http://www.daic.dm/docs/2006-07%20Budget%20Address.pdf.

Commonwealth of Dominica (2006b) Medium-Term Growth and Social Protection Strategy (GSPS), April. Viewed at: http://siteresources.worldbank.org/INTPRS1/Resources/ Dominica_PRSP (April2006).pdf.

Commonwealth of Dominica (2006c), Poverty Reduction Strategy Paper. Viewed at: http://www.imf.org/external/pubs/ft/scr/2006/cr06289.pdf.

ECCB (2006a), Annual Economic and Financial Report 2005. Viewed at: http://www.eccb-centralbank.org/PDF/AEFR%202005%20-%20Final%20Document.pdf.

ECCB (2006b), National Accounts Statistics 2006. Viewed at: http://www.eccb-centralbank. org/PDF/NAC06.pdf.

ECCB (2007), Annual Economic and Financial Review 2006. Viewed at: http://www.eccb-centralbank.org/ PDF/AEFR%202006%20-%20Final%20Document.pdf.

ECTEL (2006), Annual Telecommunications Sector Review. Viewed at: http://ectel.int/ectelnew-2/Telecoms%20Market%20Data/Telecoms%20 Sector%20Review%202006.pdf.

FATF (2000), Review to Identify Non-Cooperative Countries or Territories: Increasing The Worldwide Effectiveness of Anti-Money Laundering Measures.

IMF (2005), Dominica: 2005 Article IV Consultation, IMF Country Report No. 05/384. Viewed at: www.imf.org/external/pubs/ft/scr/2005/cr05384.pdf.

IMF (2006), Dominica: Sixth Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility and Financing Assurances Review–Staff Report; and Press Release on the Executive Board Discussion. Country Report No. 06/291. Viewed at: http://www.imf.org/external/pubs/ft/scr/2006/cr06291.pdf.

IMF (2007), Dominica: Seventh Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility and Financing Assurances Review–Staff Report; and press Release on the Executive Board Discussion. Country Report 07/1.

Ministry of Tourism and National Development Corporation (2005), Dominica Tourism 2010 Policy. Viewed at: http://tourismdominica.dm/documents/DominicaNationalTourismPolicyReportFinal.doc.

UNCTAD (2005), Étude Sur Les Transports Maritimes, Geneva.

Vuletin, Guillermo, "The Size of the Informal Economy in the Caribbean", Eastern Caribbean Currency Union: Selected Issues, IMF Country Report No. 07/97, March 2007. Viewed at: http://www.imf. org/external/pubs/ft/scr/2007/cr0797.pdf.

World Bank (2005), Dominica: OECS Fiscal Issues: Policies to Achieve Fiscal Sustainability and Improve Efficiency and Equity of Public Expenditures, Report No. 27467-DOM, Washington, D.C.

World Bank (2007), Dominica at a Glance. Viewed at. http://siteresources.worldbank. org/INTOECS/Resources/Dominica.AAG.pdf.

WTO (2001), Trade Policy Review – OECS, Geneva.

APPENDIX TABLES

Table AI.1

Merchandise exports and re-exports by group of products, 2000-06

(US$ million and per cent)

Description	2000	2001	2002	2003	2004	2005	2006
	(US$ million)
Total	54	44	42	39	41	42	41
	(% of total)
Total primary products	41.8	41.0	42.6	39.7	42.4	40.1	41.4
Agriculture	37.8	36.9	39.1	35.5	37.0	33.7	34.6
Food	37.7	36.1	39.0	35.4	37.0	33.6	34.6
0573 Bananas (including plantains), fresh or dried	25.2	21.9	22.7	18.3	21.4	19.5	21.3
0579 Fruit, fresh, dried, n.e.s.	1.6	2.2	2.3	2.8	2.8	3.1	3.1
0548 Vegetable products, roots, etc., n.e.s.	2.9	3.1	3.3	3.0	4.0	3.5	3.1
1110 Non-alcoholic beverage, n.e.s.	0.3	0.4	0.5	1.5	1.7	1.7	1.4
0984 Sauce, mixed seasonings and condiments	2.4	2.0	3.5	2.3	1.2	0.9	1.3
0571 Oranges, mandarins, citrus hybrids, fresh or dried	1.1	1.4	1.5	1.3	1.2	1.1	1.0
0572 Other citrus, fresh or dried	1.1	1.6	1.6	1.5	1.2	0.8	0.7
0545 Other fresh or chilled vegetables	0.7	0.8	0.5	0.7	0.5	0.5	0.6
0599 Juices, other than citrus	0.5	0.4	0.4	0.5	0.7	0.4	0.6
Agricultural raw material	0.1	0.9	0.1	0.1	0.1	0.1	0.0
Mining	4.0	4.1	3.5	4.2	5.4	6.5	6.8
Ores and other minerals	4.0	4.1	3.5	4.2	5.4	6.5	6.7
2733 Sands, natural (excl. metal bearing of division 28)	2.2	2.1	2.1	2.7	3.9	3.8	4.3
2734 Pebbles, gravel, etc. for concrete aggregates	1.9	2.0	1.3	1.6	1.4	2.7	2.4
Non-ferrous metals	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Fuels	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Manufactures	58.2	59.0	57.4	60.3	57.6	59.6	58.6
Iron and steel	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Chemicals	52.1	54.1	51.4	58.5	54.5	53.7	56.6
5541 Soap	25.2	26.4	24.1	27.8	27.0	23.9	25.2
5534 Preparations for oral or dental hygiene	13.7	14.6	13.2	15.8	13.5	13.6	13.4
5334 Paints and varnishes; plastics in solution; etc.	3.2	2.8	2.8	3.6	4.6	7.0	6.9
5914 Disinfectants, rodenticides, etc. for retail sale	3.5	3.5	3.9	4.2	4.2	3.7	4.4
5542 Surface-active agents (excl. soap)	3.8	3.6	3.5	3.9	3.3	3.4	3.9
5513 Essential oils; resinoids; concentrates	2.0	2.0	2.8	2.4	1.2	1.2	2.0
Other semi-manufactures	1.3	1.7	0.2	0.1	0.4	0.5	0.4
6996 Articles iron or steel, n.e.s.	0.0	0.0	0.0	0.0	0.0	0.0	0.2
6353 Builders joinery/carpentry wood	0.0	0.0	0.0	0.0	0.0	0.0	0.1
Machinery and transport equipment	3.5	1.7	4.7	1.1	1.7	4.2	1.1
Power generating machines	1.0	0.0	1.7	0.1	0.1	0.1	0.0
Other non-electrical machinery	1.4	0.6	2.1	0.2	0.6	3.0	0.2
7422 Pumps for internal combustion piston engines	0.0	0.0	0.1	0.0	0.0	0.0	0.1
Agricultural machinery and tractors	0.0	0.0	0.0	0.0	0.0	0.1	0.0
Office machines & telecommunication equipment	0.5	0.3	0.2	0.1	0.1	0.2	0.3
7649 Parts and accessories for apparatus	0.1	0.1	0.1	0.1	0.0	0.1	0.2
7643 Radio or television transmission apparatus	0.0	0.1	0.0	0.0	0.0	0.0	0.1
Other electrical machines	0.2	0.2	0.2	0.1	0.1	0.0	0.1
7752 Household fridges and freezers	0.0	0.0	0.0	0.0	0.0	0.0	0.1
Automotive products	0.4	0.4	0.4	0.5	0.7	0.5	0.4
7821 Goods vehicles	0.1	0.1	0.1	0.0	0.4	0.2	0.2
7822 Special purpose vehicles	0.0	0.0	0.0	0.2	0.0	0.0	0.2
Other transport equipment	0.1	0.1	0.1	0.0	0.0	0.3	0.0
Textiles	0.0	0.1	0.1	0.0	0.0	0.0	0.0
Clothing	0.2	0.4	0.1	0.0	0.0	0.1	0.0
Other consumer goods	1.1	1.0	1.0	0.6	0.9	1.0	0.5
8932 Builders´ ware, plastics	0.0	0.0	0.0	0.0	0.0	0.0	0.3
8997 Basketware, etc., n.e.s., brooms, brushes, etc.	0.2	0.1	0.1	0.1	0.2	0.2	0.2
Other	0.0	0.0	0.0	0.0	0.0	0.3	0.0

Source: UNSD, Comtrade database (SITC Rev.3).

Table AI.2

Merchandise imports by group of products, 2000-06

(US$ million and per cent)

Description	2000	2001	2002	2003	2004	2005	2006
	(US$ million)
Total	148	131	116	127	145	165	167
	(% of total)
Total primary products	33.1	34.6	35.8	36.4	35.1	34.2	38.6
Agriculture	23.2	24.4	25.9	25.2	23.7	20.4	22.9
Food	21.0	22.5	24.2	23.7	21.8	19.1	20.8
0123 Poultry, meat and offal	2.2	2.5	2.7	2.4	2.5	2.4	2.2
4113 Animal oils, fats, greases, n.e.s.	0.9	1.7	1.2	2.2	2.0	0.4	2.0
0222 Milk concentrated or sweetened	1.4	1.4	1.5	1.9	1.7	1.6	1.5
0461 Flour of wheat or of meslin	1.6	1.7	2.0	1.7	1.5	1.3	1.2
1110 Non-alcoholic beverage, n.e.s.	0.8	0.6	0.7	0.7	0.8	0.9	0.9
0989 Food preparations, n.e.s.	0.6	0.7	0.7	1.1	0.7	0.6	0.8
0484 Bread, baked goods	0.8	0.7	0.8	0.7	0.6	0.4	0.7
0819 Food waste, animal feeds n.e.s.	0.6	0.7	0.7	0.6	0.6	0.6	0.6
1123 Beer made from malt	0.7	0.8	0.8	0.7	0.6	0.6	0.6
Agricultural raw material	2.2	1.8	1.7	1.5	1.8	1.3	2.0
2482 Wood of coniferous	1.6	1.1	0.8	0.9	1.1	0.8	1.2
Mining	9.9	10.2	9.9	11.2	11.5	13.7	15.8
Ores and other minerals	0.2	0.2	0.3	0.2	0.2	0.2	0.1
Non-ferrous metals	0.1	0.1	0.2	0.2	0.2	0.3	0.2
Fuels	9.6	9.8	9.5	10.9	11.1	13.3	15.5
Manufactures	66.9	65.4	64.2	63.5	64.8	63.9	61.3
Iron and steel	2.2	2.4	1.5	1.7	2.2	3.2	2.5
6741 Flat-rolled products, iron/steel, zinc plated	0.7	0.6	0.5	0.4	0.4	0.7	0.7
Chemicals	12.3	11.5	12.9	11.4	11.1	11.3	12.2
5429 Medicaments, n.e.s.	0.9	1.1	1.3	1.1	1.1	1.8	2.1
5514 Mixtures of odoriferous substances	1.4	1.1	1.4	1.2	1.2	0.8	1.2
5542 Surface-active agents (excl. soap)	0.6	0.7	0.7	0.7	0.7	0.7	0.6
5829 Other plates, sheets, film, strip, of other plastics	0.3	0.3	0.2	0.2	0.3	0.2	0.6
Other semi-manufactures	14.1	15.7	14.1	13.9	13.4	10.6	11.7
6421 Packing containers, of paper, paperboard, etc.	0.6	0.9	2.4	1.8	1.8	1.5	1.5
6612 Portland cement and similar hydraulic cements	1.3	1.4	1.6	1.8	1.5	1.3	1.1
6429 Articles of paper pulp, paper, etc., n.e.s.	0.6	0.6	0.8	0.8	0.6	0.5	1.0
Machinery and transport equipment	26.2	23.5	22.0	22.8	25.2	25.1	23.5
Power generating machines	1.4	0.7	1.2	0.9	0.9	1.4	0.9
7165 Generating sets	1.0	0.1	0.1	0.1	0.4	0.8	0.4
Other non-electrical machinery	6.0	6.6	3.5	3.9	4.1	4.2	5.8
7283 Other mineral working machines	0.4	0.4	0.3	0.5	0.1	0.2	1.4
7452 Dish washing machines (other than household)	0.1	0.1	0.1	0.1	0.1	0.0	0.7
7284 Machinery for particular industries, n.e.s.	0.5	0.1	0.1	0.2	0.0	0.0	0.7
Agricultural machinery and tractors	0.1	0.1	0.0	0.0	0.1	0.0	0.1
Office machines & telecommunication equipment	6.7	6.3	6.4	7.9	10.3	8.2	6.7
7643 Radio or television transmission apparatus	0.5	0.7	0.9	2.2	2.4	2.1	2.1
Other electrical machines	3.2	3.4	3.7	3.7	3.2	3.3	3.4
7731 Insulated wire, cable etc.; optical fibre cables	0.7	0.8	0.7	0.8	0.6	0.7	0.8
7725 Switches, relays, fuses, for a voltage < 1000 V	0.3	0.5	0.5	0.7	0.4	0.8	0.6
Automotive products	8.3	5.6	5.9	5.4	5.9	7.3	5.7
7812 Motor vehicles for the transport of persons	2.8	2.4	2.4	2.2	2.4	2.6	2.2
7821 Goods vehicles	3.5	1.4	1.7	1.2	1.5	1.7	2.0
Other transport equipment	0.6	1.0	1.3	1.0	0.8	0.7	1.0
Textiles	0.9	1.0	1.1	1.0	1.1	1.2	0.8
Clothing	1.2	1.5	2.1	1.5	1.7	1.8	1.5
Other consumer goods	10.0	9.8	10.5	11.3	10.0	10.7	9.0
8931 Plastics containers, stoppers, lids, etc.	1.9	1.2	1.3	1.3	1.3	1.5	1.2
8921 Printed books, pamphlets, maps, etc.	1.1	1.1	1.2	1.2	1.1	1.2	0.9
Other	0.0	0.0	0.0	0.1	0.0	1.9	0.0

Source: UNSD, Comtrade database (SITC Rev.3).

Table AI.3

Merchandise exports and re-exports by trading partner, 2000-06

(US$ million and per cent)

Description	2000	2001	2002	2003	2004	2005	2006
	(US$ million)
Total	54	44	42	39	41	42	41
	(% of total)
America	67.1	70.0	68.9	74.9	70.1	65.5	70.0
United States	7.4	6.1	9.2	6.3	4.5	4.5	4.5
Other America	59.6	63.9	59.7	68.6	65.6	61.0	65.4
Canada	0.1	0.4	0.2	0.2	0.1	0.2	0.1
Jamaica	23.9	23.2	21.4	22.8	20.2	12.7	15.1
Antigua and Barbuda	7.4	8.3	8.4	10.2	10.0	11.3	12.9
Trinidad and Tobago	5.2	5.7	4.6	6.5	7.4	9.0	7.6
Barbados	4.7	4.8	4.3	5.2	4.5	4.2	7.2
Guyana	6.3	7.1	6.8	8.4	6.2	6.3	6.9
St Lucia	2.9	3.8	2.8	3.4	4.0	6.8	4.3
St Kitts and Nevis	3.8	3.2	3.3	3.4	3.0	2.5	2.7
Suriname	0.9	1.2	1.3	1.6	1.8	2.0	2.4
Belize	0.0	0.0	0.0	1.0	1.9	1.1	1.3
St Vincent and the Grenadines	1.1	1.3	1.4	1.2	1.0	1.6	1.3
British Virgin Islands	0.4	0.7	0.5	0.6	0.6	0.7	1.1
Grenada	0.7	0.7	0.7	0.7	0.7	0.8	0.7
Anguilla	0.1	0.1	0.0	0.2	0.4	0.5	0.7
Montserrat	0.6	0.6	0.6	0.7	0.7	0.8	0.5
Bahamas	0.1	0.1	0.3	0.2	0.2	0.4	0.2
Haiti	0.0	0.2	0.1	0.0	0.1	0.2	0.1
Bermuda	0.0	0.1	0.1	0.1	0.1	0.1	0.1
Europe	31.5	28.5	29.3	24.9	27.5	27.8	26.8
EC(25)	31.5	28.5	29.3	24.9	27.5	27.8	26.8
United Kingdom	24.0	21.1	22.6	15.8	18.0	16.5	18.5
France	7.5	7.4	6.7	9.1	9.6	10.8	8.3
EFTA	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Other Europe	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Africa	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Asia	0.0	0.4	0.0	0.0	0.2	0.0	0.2
China	0.0	0.0	0.0	0.0	0.0	0.0	0.1
Japan	0.0	0.1	0.0	0.0	0.2	0.0	0.0
Six East Asian Traders	0.0	0.0	0.0	0.0	0.0	0.0	0.1
Other Asia	0.0	0.4	0.0	0.0	0.0	0.0	0.0
Other	1.4	1.0	1.8	0.1	2.1	6.7	3.1
Areas n.e.s	1.4	1.0	1.8	0.1	2.1	6.7	3.1
Memorandum:
EC(15)	31.5	28.5	29.3	24.9	27.5	27.8	26.8
ASEAN	0.0	0.0	0.0	0.0	0.0	0.0	0.0
APEC	7.8	7.1	9.3	6.6	4.8	4.7	4.8
United States	7.4	6.1	9.2	6.3	4.5	4.5	4.5
China	0.0	0.0	0.0	0.0	0.0	0.0	0.1
Canada	0.1	0.4	0.2	0.2	0.1	0.2	0.1
MERCOSUR	0.0	0.0	0.0	0.0	0.0	0.0	0.0

Source: UNSD, Comtrade database (SITC Rev.3).

Table AI.4

Merchandise imports by trading partner, 2000-06

(US$ million and per cent)

Description	2000	2001	2002	2003	2004	2005	2006
	(US$ million)
Total	148	131	116	127	145	165	167
	(% of total)
America	75.8	74.1	76.9	78.6	75.9	76.7	77.0
United States	37.3	36.4	36.6	37.1	36.6	36.6	36.1
Other America	38.5	37.7	40.2	41.6	39.2	40.2	40.9
Canada	4.2	2.9	2.7	3.5	2.7	2.6	2.7
Trinidad and Tobago	16.3	17.4	17.6	18.2	18.1	20.5	22.1
Barbados	3.2	2.8	3.8	4.3	3.5	3.4	2.3
St Lucia	1.6	1.7	3.5	2.7	2.9	2.3	2.2
Grenada	1.1	1.4	0.8	0.4	0.5	0.7	1.4
Jamaica	1.2	1.4	1.3	1.2	1.3	1.6	1.3
Bolivarian Rep. of Venezuela	1.8	1.7	1.3	1.4	1.3	1.1	1.3
Guyana	1.2	1.3	1.2	1.2	1.3	1.0	1.3
St Vincent and the Grenadines	1.5	0.9	1.3	1.2	1.1	1.1	1.0
Europe	15.1	16.4	15.5	14.2	16.0	13.8	12.8
EC(25)	14.4	15.6	14.1	13.4	14.8	13.4	12.6
United Kingdom	7.7	10.1	8.6	7.6	6.6	6.8	5.7
France	1.9	1.7	2.1	2.4	5.0	2.4	2.7
Germany	1.0	0.7	0.7	0.6	0.7	1.0	1.6
The Netherlands	2.2	1.8	1.9	1.6	1.4	1.2	1.5
EFTA	0.4	0.7	0.7	0.4	0.7	0.3	0.1
Other Europe	0.3	0.1	0.7	0.4	0.4	0.0	0.0
Commonwealth of Independent States (CIS)	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Africa	0.0	0.2	0.1	0.2	0.1	0.3	0.2
South Africa	0.0	0.0	0.0	0.1	0.0	0.0	0.1
Middle East	0.1	0.1	0.1	0.0	0.1	0.0	0.0
Asia	8.5	8.6	6.6	6.3	7.3	8.4	9.1
China	0.5	0.8	0.7	0.9	1.2	2.2	3.9
Japan	6.3	6.3	4.1	3.9	4.7	4.6	4.0
Six East Asian Traders	1.5	1.2	1.4	1.2	0.8	1.1	0.8
Hong Kong, China	0.1	0.1	0.2	0.1	0.2	0.3	0.2
Korea, Rep. of	0.2	0.2	0.2	0.2	0.1	0.1	0.2
Other Asia	0.3	0.3	0.4	0.3	0.5	0.5	0.4
India	0.1	0.2	0.2	0.1	0.3	0.3	0.3
Other	0.5	0.6	0.8	0.7	0.7	0.8	0.7
Areas n.e.s	0.5	0.6	0.8	0.7	0.7	0.8	0.7
Memorandum:
EC(15)	14.3	15.5	14.1	13.4	14.8	13.4	12.6
ASEAN	0.3	0.3	0.6	0.3	0.3	0.5	0.4
Thailand	0.2	0.1	0.1	0.1	0.2	0.3	0.1
Singapore	0.0	0.0	0.0	0.0	0.0	0.1	0.1
Indonesia	0.0	0.0	0.0	0.0	0.1	0.0	0.1
APEC	50.6	48.3	46.3	47.2	47.1	47.9	48.2
MERCOSUR	0.7	0.7	1.0	1.4	1.4	1.4	1.0
Brazil	0.7	0.7	0.9	1.1	1.2	1.0	0.9
Argentina	0.0	0.0	0.1	0.2	0.2	0.4	0.1

Source: UNSD, Comtrade database (SITC Rev.3).

__________

[1] The totals do not add to 100% because it is necessary to subtract the financial intermediation services indirectly measured (FISIM), including total property income receivable by financial intermediaries minus their total interest payable (ECCB, (2006).

[2] IMF (2006).

[3] IMF (2006).

[4] Commonwealth of Dominica (2006b).

[5] Vuletin (2007).

[6] IMF online information. Viewed at: http://www.imf.org/external/pubs/ft/weo/2007/01/data/ weoselgr.aspx.

[7] World Bank (2007).

[8] IMF (2006).

[9] ECCB (2006a).

[10] Commonwealth of Dominica (2006b).

[11] IMF online information. Viewed at: http://www.imf.org/external/country/DMA/index.htm.

[12] DAAS online information. Viewed at: http://www.da-academy.org/savarin_oecs.html.

[13] DAAS online information. Viewed at: http://www.da-academy.org/savarin_oecs.html.

[14] DAAS online information. Viewed at: http://www.da-academy.org/savarin_oecs.html.

[15] Invest Dominica online information. Viewed at: http://www.investdominica.dm/alienlandholding license.cfm.

[16] See for example Article 68 of the Revised Treaty of Chaguaramas 2001.

[17] CTRC online information. Viewed at: http://ctrc.sice.oas.org/investment/bitsbycountry/dom_e.asp# Dominica.

[18] Invest Dominica online information. Viewed at: http://www.investdominica.dm/taxation.cfm.

[19] Summary of new services negotiations. Available at: http://www.wto.org/english/tratop_e/serv_e/s_ negs_e.htm.

[20] WT/DS27/78, 9 September 1997.

[21] WT/DS152/R, 22 December 1999.

[22] WT/DS165/AB/R, 11 December 2000.

[23] WTO document G/SCM/W/535, 12 April 2006.

[24] WTO document S/C/N/229, 19 February 2003.

[25] The operations of the Customs and Excise Division are governed, inter alia, by the Customs (Control and Management) Act chapter 69:01, the Customs Import and Export Tariffs Ordinance, the Value Added Tax Act 7 of 2005, the Excise Tax Act 8 of 2005, and the Supplies Control Act chapter 20:01.

[26] Commonwealth of Dominica (2006a).

[27] IMF (2007), p. 39, "Supplementary Memorandum of Economic Policies of The Government of Dominica".

[28] WTO document G/VAL/N/1/DMA/1, 12 September 2001.

[29] WTO document G/VAL/W/155, 26 September 2006.

[30] WTO document G/RO/N/24, 15 January 1999.

[31] Commonwealth of Dominica (2006a).

[32] WTO document WT/DS302/R, 26 November 2004.

[33] IMF (2007), SMEP, p. 42.

[34] WTO documents G/LIC/N/1/DMA/1, 23 February 2001, and G/LIC/N/3/DMA/1, 23 February 2001.

[35] WTO document G/LIC/N/3/DMA/2, 6 December 2006.

[36] WTO document G/ADP/N/1/DMA/1 and G/SCM/N/1/DMA/1, (8 June 1999).

[37] WTO document G/SG/N/1/DMA/1, (12 November 1998).

[38] WTO document G/TBT/2/Add.62, 28 February 2001.

[39] WTO documents G/TBT/N/DMA/1-10, 23 August 2005.

[40] WTO document G/TBT/ENQ/29, 12 March 2007.

[41] WTO document G/TBT/CS/2/Rev.13, 2 March 2007.

[42] Dominica Bureau of Standards online information, DBOS Technical Committees and Their Prime Functions. Viewed at: http://www.dominicastandards.org/dominica_bureau_of_standards_technical_ committees_and_their_prime_functions.php.

[43] DBOS online information. Viewed at: http://www.dominicastandards.org/ standards/question.php? qstId=55.

[44] WTO documents G/SCM/N/71/DMA, 20 March 2002, G/SCM/N/71/DMA/Corr. 1, 25 March 2002, G/SCM/N/74/DMA, 7 January 2002, G/SCM/N/99/DMA, 2 July 2003, G/SCM/N/114/DMA, 5 July 2004, G/SCM/N/128/DMA, 5 July 2005, G/SCM/N/146/DMA, 27 July 2006, G/SCM/Q3/DMA/1, 8 April 2002 to G/SCM/Q3/DMA/8, 14 September 2006, and G/SCM/Q4/DMA/6, 16 October 2006.

[45] WTO documents G/SCM/N/71/DMA, 20 March 2002, G/SCM/N/71/DMA/Corr. 1, 25 March 2002, G/SCM/N/74/DMA, 7 January 2002, G/SCM/N/99/DMA, 2 July 2003, G/SCM/N/114/DMA, 5 July 2004, G/SCM/N/128/DMA, 5 July 2005, G/SCM/N/146/DMA, 27 July 2006, G/SCM/Q3/DMA/1, 8 April 2002 to G/SCM/Q3/DMA/8, 14 September 2006, and G/SCM/Q4/DMA/6, 16 October 2006.

[46] WTO documents G/SCM/63/Add.4 and G/SCM/71/Add.4, 13 November 2006.

[47] WTO document G/SCM/W/535, 12 April 2006. The eight other Members were Barbados, Belize, the Dominican Republic, El Salvador; Fiji, Jamaica, Mauritius, and Papua New Guinea.

[48] The proposal to extend the period is contained in WTO documents G/SCM/W/542, 2 July 2007 and G/SCM/W/535, G/SCM/W/542/Suppl.1, 9 July 2007.

[49] IMF (2007), SMEP, pp. 41 and 44.

[50] Fiscal Incentives (Amendment) Act No. 3 of 1992, Part II 1.

[51] WTO document G/SCM/Q3/DMA/7, 26 July 2002.

[52] WTO document G/SCM/Q3/DMA/5, 29 April 2002.

[53] World Bank (2005), p. 32.

[54] IMF (2007), SMEP, p. 44.

[55] IMF (2007), SMEP, p. 41.

[56] Caribbean Development Bank online information. Viewed at: http://www.caribank.org/CDBWeb Pages.nsf/Basicinfo/$File/Basicinformation1.pdf?OpenElement.

[57] IMF (2007), pp. 11-12.

[58] WTO document G/STR/N/4/DMA, G/STR/N/5/DMA,G/STR/N/6/DMA, 15 February 2001.

[59] WTO documents IP/N/1/DMA/1, 13 June 2001; and IP/N/1/DMA/T/1, IP/N/1/DMA/P/2, IP/N/1/DMA/P/1, IP/N/1/DMA/L/1, IP/N/1/DMA/G/1, IP/N/1/DMA/D/1, and IP/N/1/DMA/C/1, 18 June 2001.

[60] WTO documents IP/Q/DMA/1, IP/Q2/DMA/1, IP/Q3/DMA/1, IP/Q4/DMA/1, 7 December 2001.

[61] Dominica’s responses are in WTO document IP/C/W/275/Rev.1, 8 October 2001. The questions which were addressed to several WTO Members, came from Japan (IP/C/W/258, 27 April 2001), Canada (IP/C/W/261, 9 May 2001; IP/C/W/261/Add.1, 13 June 2001), Switzerland (IP/C/W/263, 14 May 2001), the United States (IP/C/W/268, 31 May 2001), and the European Communities (IP/C/W/274, 12 June 2001).

[62] WTO document IP/N/6/DMA/1, 30 May 2001.

[63] Commonwealth of Dominica (2006c).

[64] Caribbean Development Bank (2004).

[65] Caribbean Development Bank (2006).

[66] Caribbean Development Bank (2007).

[67] Caribbean Development Bank (2006).

[68] Commonwealth of Dominica (2006c).

[69] Commonwealth of Dominica (2006c).

[70] Caribbean Development Bank (2004).

[71] Caribbean Development Bank (2007).

[72] WTO document GATS/SC/27, 15 April 1994.

[73] WTO document GATS/SC/27/Suppl.1, 11 April 1997.

[74] National Telecommunications Regulatory Commission of Dominica online information. Viewed at: http://www.ectel.int/ntrcdm/index.htm.

[75] Telecommunications Act No. 8, 2000. Viewed at: http://www.ectel.int/ntrcdm/Files/Laws, Regulations%20And%20Agreements/Telecommunications%20Act%208%202000.pdf.

[76] ECTEL (2006).

[77] As at July 2007 Orange Dominica Limited had installed some fixed-line public payphones, but had not yet started offering private fixed-line services.

[78] ECCB online information. Viewed at: http://www.eccb-centralbank.org/Financial/fin_banks.asp.

[79] ECCB (2007).

[80] AID Bank online information. Viewed at: http://www.aidbank.com/index.html.

[81] ECCB online information. Viewed at: http://www.eccb-centralbank.org/Financial/fin_structure.asp.

[82] DCSLL online information. Viewed at: http://www.dcsll.org. The services provided by the DCSLL are: education and training; advisory; public relations/promotions; representation/advocacy; supervision/fostering improved standards; bonding and insurance; central finance facility; supplies; and depository.

[83] IMF (2005).

[84] ECCB online information. Viewed at: http://www.eccb-centralbank.org/Financial/fin_structure.asp.

[85] FATF (2000).

[86] WTO (2001).

[87] Commonwealth of Dominica (2005).

[88] Ministry of Tourism and National Development Corporation (2005).

[89] WTO document WT/TPR/S/85/DMA, 7 May 2001.

[90] WTO document GATS/SC/27, 15 April 1994.

[91] The volume of sea cargo arrivals are: 219,378 tons in 2002; 236,218 tons in 2003; 247,334 tons in 2004; 265,457 tons in 2005; and 270,323 tons in 2006.

[92] These fees are EC$1,500 + EC$0.40/NT for less than 25,000 net tons, and EC$0.20/NT for over 25,000 net tons. All vessels of 1,000 NT and below have a first-year registration cap of EC$2,500. Follow-on annual services fees have a EC$1,400 cap.

[93] The Registration of Ships Act No. 42 of 1975, which governed the registration of ships in Dominica other than those registered under the International Maritime Act, has been repealed.

[94] UNCTAD (2005).

[95] For the complete list see IMO online information. Viewed at: http://www.imo.org/includes/ blastDataOnly.asp/data_id%3 D18214/status.xls.

[96] ECCB (2006a).

[97] The functions of the NDC are set out in the Article 11 of the National Development Corporation Act of 1988.

[98] OAS online information. Viewed at: http://www.oas.org/ TOURISM/incentives/dominica.rtf.

[99] Ministry of Tourism, Industry and Private Sector Relations online information. Viewed at: http://tourismdominica.dm/documents.cfm.

[100] Projects under way included: EC-Eco-tourism Development Programme, co-funded by the Government of Dominica; CIDA-funded Nature Island Standards of Excellence Phase II (CPEC project); Investment Opportunity Program funded by USAID and delivered by Carana Corporation; CIDA-funded Financial Services Project – CPEC; Upgrading of Eco-tourism Sites funded by CDB; Republic of China – Tourism Marketing and Promotion Program, co-funded by the Government of Dominica; Caribbean Regional Environmental Program (CREP), funded by the EC; Small Tourism Enterprises (STEP) Project, funded by the OAS and USAID; USAID-funded Green Globe 21 Destination Program; Waitukubli National Trail Program, funded by the EC; USAID-funded Caribbean Hotel Environmental Management Initiative; and EC Enterprise Development Fund. Dominica Tourism 2010 Policy (January 2005), Viewed at: http://tourismdominica.dm/ documents/DominicaNationalTourismPolicy ReportFinal.doc.

[101] Embarkation Duty (Amendment) Act No. 5 of 2004.

[102] As a result of an amendment to the Immigration and Passport Act in 2003, skilled CARICOM nationals covered by the Caribbean Community Skilled Nationals Act are not required to obtain a work permit in Dominica.

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