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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(对圣文森特和格林纳丁斯)(英)

World Trade Organization	RESTRICTED

	WT/TPR/S/190/VCT 1 October 2007
	(07-3987)

Trade Policy Review Body

TRADE POLICY REVIEW

Report by the Secretariat

SAINT VINCENT AND THE GRENADINES

This report, prepared for the second Trade Policy Review of Saint Vincent and the Grenadines, 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 Saint Vincent and the Grenadines 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/VCT contains the policy statement submitted by Saint Vincent and the Grenadines.

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 Saint Vincent and the Grenadines.

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 3

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

(5) Outlook 6

II. trade and investment policy framework 6

(1) General Constitutional and Legal Framework 6

(2) Trade Policy Formulation and Implementation 7

(3) Foreign Investment Regime 8

(4) International Relations 9

(i) World Trade Organization 9

(ii) Preferential agreements and arrangements 10

III. trade policies and practices by measure 11

(1) Measures Directly Affecting Imports 11

(i) Customs procedures, documentation, and registration 11

(ii) Customs valuation 11

(iii) Rules of origin 12

(iv) Tariffs, and other charges on imports 12

(v) Other levies and charges 16

(vi) Import prohibitions, restrictions, and licensing 18

(vii) Contingency measures 20

(viii) Technical regulations and standards 20

(ix) Sanitary and phytosanitary measures 22

(2) Measures Directly Affecting Exports 23

(i) Documentation, export taxes, and restrictions 23

(ii) Export subsidies, financing, support, and promotion 24

(3) Measures Affecting Production and Trade 26

(i) Legal framework for business and taxation 26

(ii) Incentives and assistance 27

(iii) Competition policy and regulatory issues 27

(iv) Government procurement 30

(v) Intellectual property rights 30

IV. trade policies by sector 33

(1) Agriculture 33

(2) Manufacturing 35

(3) Services 36

(i) Main features 36

(ii) Telecommunications 36

(iii) Financial services 38

(iv) Air transport 42

(v) Maritime transport 43

Page

(vi) Tourism 45

(vii) Professional services 46

(viii) Other offshore services 47

REFERENCES 49

APPENDIX TABLES 51

TABLES

I. ECONOMIC ENVIRONMENT

I.1 Basic macroeconomic indicators, 2000-06 1

I.2 Balance of payments, 2001-06 4

II. TRADE AND INVESTMENT POLICY FRAMEWORK

II.1 Notifications to the WTO, 2002-07 10

III. TRADE POLICIES AND PRACTICES BY MEASURE

III.1 Structure of the tariff, 2006 13

III.2 Summary analysis of the MFN tariff, 2006 13

III.3 Revenue forgone on concessional imports, 2001-06 16

III.4 VAT exemptions and zero-rated supplies, 2007 17

III.5 Excise taxes that entered into effect 1 May 2007 18

III.6 Import licensing requirements 19

III.7 Membership in international instruments on intellectual property rights, 2007 31

III.8 Trade marks and patents issued by St. Vincent and the Grenadines, 2001-06 31

IV. TRADE POLICIES BY SECTOR

IV.1 Telecommunications statistics, 2002-06 37

IV.2 Cargo transported by air, 2001-06 42

IV.3 Cargo transported by sea, 2001-06 44

APPENDIX TABLES

I. ECONOMIC ENVIRONMENT

AI.1 Merchandise exports and re-exports by groups of products, 2000-06 53

AI.2 Merchandise imports by groups of products, 2000-06 54

AI.3 Merchandise exports and re-exports by trading partner, 2000-06 55

AI.4 Merchandise imports by trading partner, 2000-06 56

I. Economic environment

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

1. During the period under review, growth in St. Vincent and the Grenadines has been mixed, with alternating years of fast and slow growth. The economy contracted in 2001, but growth accelerated between 2002 and 2004; there was a slowdown in 2005, mainly caused by a contraction in agricultural production and slow growth in manufacturing. Average annual GDP growth rate (market prices) between 2000 and 2006 was 3.4% at market prices (3.3% at basic prices) (Table I.1). During 2006, economic activity accelerated, driven by the construction and tourism, but also by a recovery of manufacturing and agriculture.

2. Private consumption was sustained during 2001-06, supporting GDP growth. Private and public consumption accounted for some 89% of GDP in 2005. Gross capital formation strengthened during the review period, supported by the strong performance of construction, but also by investment in machinery and equipment, particularly over 2003-06. Gross capital formation accounts for almost a third of GDP. The programme to build infrastructure for the Cricket World Cup and thereafter boosted growth during the period under review.

Table I.1

Basic macroeconomic indicators, 2000-06

(Per cent, unless otherwise specified)

	2000	2001	2002	2003	2004	2005	2006
Real sector
Nominal GDP at market prices (EC$ million)	904.6	932.1	986.1	1,032.1	1,121.1	1,162.2	1,316.5
Nominal GDP at basic prices EC$ million)	761.8	776.7	817.2	852.3	931.5	972.2	1,064.1
Real GDP at basic prices (EC$ million)	612.9	612.3	631.8	649.5	693.9	709.2	755.2
GDP per capita at market prices (EC$)	8,077	8,549	9,143	9,909	10,722	11,073	12,597
GDP per capita at basic prices (EC$)	6,802	7,124	7,577	8,183	8,909	9,264	10,139
GDP growth (real, market prices)	1.8	1.0	3.7	3.2	6.2	1.5	6.4
GDP growth (real, basic prices)	2.0	-0.1	3.2	2.8	6.8	2.2	6.5
GDP components
Total consumption (% of GDP)	79.0	80.0	80.3	84.9	89.0	89.3	..
Private consumption (% of GDP)	59.5	60.2	59.8	65.4	69.3	68.6	..
Government consumption (% of GDP)	19.4	19.8	20.5	19.5	19.7	20.7	..
Gross capital formation (% of GDP)	27.3	29.8	29.7	33.0	32.1	32.8	..
Transport equipment	2.5	3.1	2.2	1.6	2.2	2.0	..
Other machinery and equipment	5.7	6.7	8.5	11.7	8.8	10.0	..
Construction	19.2	20.0	19.0	19.7	21.1	20.8	..
Exports of goods and services (% of GDP)	53.6	51.0	48.8	45.2	44.4	46.3	..
Goods	15.4	12.4	11.3	10.5	9.5	9.9	..
Non-factor services	38.1	38.6	37.5	34.7	35.0	36.4	..
Imports (% of GDP)	59.8	60.7	58.8	63.1	65.6	68.4	..
Goods	43.1	44.0	43.2	46.3	47.9	49.3	..
Non-factor services	16.7	16.7	15.6	16.9	17.6	19.1	..
Gross national savings (% of GDP)	20.2	18.9	18.2	12.2	7.4	7.2	..
Foreign savings (% of GDP)	7.1	10.9	11.5	20.8	24.6	23.2	28.3
Consumer price index (end of period)	0.2	-0.7	2.4	2.2	1.7	3.9	4.8
Consumer price index ( period average)	0.2	0.9	1.9	0.2	3.0	3.7	3.0
Implicit gross value added deflator	-0.3	2.0	2.0	1.4	2.3	2.1	2.8
General government finance (% of GDP)
Current revenue	28.8	29.2	31.0	30.8	29.0	28.96	29.9
of which, tax revenue	24.9	24.7	27.7	26.4	26.0	26.4	27.5
of which taxes on international trade	11.3	12.0	12.8	12.9	12.4	12.2	12.3
of which
Consumption tax	6.5	7.0	7.9	7.7	7.3	6.9	7.1
Import duties	2.5	2.7	2.6	2.5	2.7	2.8	2.6
Customs service charge	1.8	1.8	1.8	1.9	1.8	1.9	2.0
Table I.1 (cont'd)
Current expenditure	26.7	27.8	27.7	26.4	25.7	27.7	27.0
Current account balance	2.1	1.3	3.3	4.4	3.3	1.2	2.9
Primary balance	3.9	0.9	1.3	0.4	1.1	-1.3	-0.7
Overall fiscal balance (% of GDP)	-0.6	-1.7	-1.4	-2.3	-1.4	-4.3	-3.9
Public sector debt	69.1	68.2	72.9	79.1	85.3	85.4	79.9
Money and interest rates
Money supply, M1 (end of period.)	16.2	3.3	9.1	6.1	13.1	14.7	5.1
Broad money, M2 (end of period)	9.5	3.0	8.3	1.9	13.7	6.4	7.5
Prime lending rate (% per annum)	9.5-11.0	9.0-11.0	9.0-11.0	9.0-11.0	9.0-11.0	9.0-11.0	9.0-11.0
Other lending rates	5.0-16.0	7.0-21.5	7.0-21.5	6.4-21.0	3.0-21.6	3.5-21.6	3.5-21.6
Savings rate	4.0-5.0	4.0-5.0	3.0-5.0	3.0-5.0	3.0-450	3-0-4.5	3-0-4.5

Source: Information provided by the authorities and ECCB data.

3. GDP per capita was US$4,665 at market prices (US$3,755 at basic prices) in 2006. GDP per capita in terms of purchasing power, was estimated by the IMF at US$8,090 in the same year.[1] Net aid per capita in 2005 was estimated by the World Bank at US$88.[2]

4. During the period under review, there was a further increase in the contribution of services to GDP, while the contributions of agriculture and manufacturing declined. The services sector accounted for some 84% of GDP at basic prices, in 2005; the main services activities include wholesale and retail trade, government services, and transportation.[3] Although not readily identifiable in national accounts, tourism is the main economic activity.

5. In 2005, agriculture's contribution to GDP was 8.2%, down from 9.6% in 2001. St. Vincent and the Grenadines has continued to move away from the production of bananas, and their contribution to GDP declined from 3% in 2000 to 1.2% in 2005. Construction accounted for 12.3% of GDP in 2005, up from 11.9% in 2001, while manufacturing accounted for 5.7%, and water and electricity for 6.5%.

6. A number of structural reform measures were undertaken during the review period. These included the restructuring of the banana industry, efforts to diversify production away from bananas, simplification of the tax regime and investment procedures, adjustments to domestic energy prices, and the reduction of operational losses in public enterprises.

7. No data was available with respect to the unemployment rate, since no formal labour force surveys are carried out; the last estimates, corresponding to the 2001 census, show a rate of 21.1%. The informal sector is large: a recent IMF study estimated informal activity at some 50.6% of GDP.[4] Real wages in the public sector have increased modestly on average in recent years: in 2000-01, central government nominal wages increased by some 3.5% per year; they were frozen during 2002 and 2003, and have been growing at annual rates of some 3-4% thereafter. Private sector nominal wages have been growing at some 4% per year since 2000.[5]

(2) Fiscal Policy

8. Fiscal policy is the responsibility of the Ministry of Finance. Fiscal policy is the main macroeconomic policy actively used by the authorities to affect output, as St. Vincent and the Grenadines, like all other OECS WTO Members, has no independent monetary and exchange rate policy (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 high dependency on taxes on foreign trade for revenue, fiscal policy has a strong link with trade policy.

9. The general government current balance was in surplus each year over 2000-06. However, as a result of a large deficit in the capital account, partly due to public investment projects and debt repayments, the overall balance posted a deficit throughout the period under review. The deficit has been increasing since 2003 and, after peaking in 2005, was 3.9% of GDP in 2006. This reflects mainly increases in capital expenditure linked to infrastructural projects.

10. The Government introduced a fiscal reform package in the 2005, which included (expected yield as a percentage of GDP in parentheses): a 5% tax on all calls made on cellular telephones (0.2%); an increase in the retail price of petroleum products (0.2-0.4%); and a 10% tax on lottery winnings in excess of EC$500 (0.1%). The package envisaged an increase in outlays in most areas, including current expenditure (e.g. education and subsidies to banana producers), and capital expenditure (e.g. port and road construction and the recapitalization of the regional airline, LIAT).

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

12. St. Vincent and the Grenadines' public sector debt increased during the period under review, from 69.1% of GDP in 2000 to 79.7% in 2006. The largest share of the increase has been in domestic debt, which represented some 35% of GDP in 2005, up from 20% in 2000. The increase in debt has resulted in a substantial increase in interest payments, requiring an ever larger surplus in other areas. The IMF considers that continuation of current fiscal policies will lead to an unsustainable level of debt, and crowd-out expenditure towards the achievement of important social and economic goals. Under current policies, the stock of debt will reach over 95% of GDP by the end of the decade and central government interest payments will rise to 5% of GDP.[6]

(3) Monetary and Exchange Rate Policy

13. St. Vincent and the Grenadines is a member of the Eastern Caribbean Currency Union (ECCU). Hence, monetary and exchange rate policy is 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.

14. Both narrow money (M1) and quasi money have been expanding rapidly since the economy resumed growth. The growth of M1 since 2004, which slowed down somewhat in 2006, is mainly associated with a strong expansion in private demand deposits, while the more moderate increase in quasi money reflects an expansion in savings by private sector businesses and individuals.[7] 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. Liquidity in the commercial banking system remained very high during 2005 and 2006 (the ratio of loans and advances to total deposits was 72.9% in 2006).

15. Commercial bank interest rates were unchanged during 2005 and 2006: rates on savings deposits ranged from 3% to 4.5% and 2.5% to 3.8% on time deposits. Prime lending rates remained within the 9-11% range.

16. The level of inflation as measured by the change in the consumer price index (CPI) has been relatively low over the review period, averaging some 1.6% a year, during 2000-05. In 2004 and 2005, however, price increases picked up, reflecting higher oil prices, but also higher prices for certain food items, including beef, chicken, and fish, as well as increases in some service tariffs. The CPI index rose by 4.8% during 2006, on an end-of-period basis.

(4) Balance of Payments, Trade and Investment Flows

17. The current account of St. Vincent and the Grenadines's balance of payments has traditionally posted a deficit, reflecting largely the deficit in merchandise trade (Table I.2). Exports of goods declined by some 22% in U.S. dollar terms between 2001 and 2006, while imports increased by a third. The export fall was due in large part to lower banana exports. The service surplus remained steady, in nominal terms, during the period under review, although it declined as a percentage of GDP, from 21.9% in 2001, to 16.2% in 2006. The surplus is due entirely to the travel balance, since in all other service areas St. Vincent and the Grenadines has a deficit. Net investment income revenue is increasingly negative, but is virtually offset by a surplus in current transfers.

Table I.2

Balance of payments, 2001-06

(US$ million)

	2001	2002	2003	2004	2005	2006
Current account	-37.6	-41.4	-79.5	-102.1	-99.8	-138.2
Goods and services	-33.7	-36.0	-68.6	-87.7	-87.3	-123.8
Goods	-109.2	-116.5	-136.7	-159.7	-161.0	-202.9
Merchandise	-109.6	-117.8	-138.2	-161.7	-164.0	-206.3
Exports	41.6	39.3	38.0	36.6	38.6	32.4
Imports	151.2	157.1	176.2	198.3	202.7	238.7
Goods procured in ports by carriers	0.4	1.3	1.5	2.0	3.0	3.4
Services	75.5	80.6	68.2	72.0	73.7	79.1
Transportation	-16.2	-16.9	-20.1	-21.4	-22.8	-26.8
Travel	77.4	80.8	78.6	81.3	89.0	97.9
Insurance services	-3.4	-4.2	-4.6	-5.1	-5.4	-6.3
Other business services	19.2	21.7	16.2	19.3	17.4	18.8
Government services	-1.6	-0.9	-1.9	-2.0	-4.4	-4.5
Income	-16.5	-17.6	-23.9	-28.9	-30.7	-35.2
Compensation of employees	0.1	0.7	0.6	0.7	0.5	0.5
Investment income	-16.6	-18.3	-24.4	-29.6	-31.1	-35.7
Current transfers	12.6	12.1	12.9	14.1	18.1	20.9
General government	-0.5	-0.8	-1.0	-0.4	-0.3	2.5
Other sectors	13.1	13.0	13.9	14.5	18.5	18.3
Table I.2 (cont'd)
Capital and financial account	46.7	34.9	79.0	128.0	97.0	150.3
Capital account	8.8	10.6	14.4	18.9	14.2	10.9
Capital transfers	8.8	10.6	14.4	18.9	14.2	10.9
Financial account	37.9	24.2	64.7	109.0	82.7	139.4
Direct investment	21.0	34.0	55.1	65.7	41.4	84.4
Portfolio investment	3.5	1.0	20.7	33.2	-10.1	-0.2
Other investments	13.4	-10.8	-11.2	10.1	51.4	55.1
Public sector long term	13.0	2.1	-1.1	2.6	25.9	7.3
Commercial banks	16.0	-15.3	-17.1	-18.3	-6.5	9.7
Other assets	-10.7	-7.7	-17.5	-8.7	6.1	-9.3
Other liabilities^a	-5.0	10.1	24.6	34.5	25.9	47.4
Overall balance	9.1	-6.6	-0.4	25.4	-2.9	12.1
Financing	-9.1	6.6	0.4	-25.4	2.9	12.1
Change in government foreign assets	-2.8	-1.7	-1.6	-1.7	-2.5	-3.0
Change in imputed reserves	-6.3	8.3	2.0	-23.8	5.4	-9.1
Memorandum
Current account balance (% of GDP)	-10.9	-11.5	-20.8	-24.7	-23.2	-28.3
Terms of trade	2.9	2.1	-4.2	-3.4	..	..
Real effective exchange rate	0.5	-6.7	-8.3	-5.0	-0.2	-18
Estimated visitor expenditure (EC$ million)	240.3	245.7	246.2	258.0	280.5	305.8
Net imputed international reserves (US$ million)	60.7	52.5	50.4	74.2	68.5	77.8
Outstanding external public debt (% of GDP)	49.2	46.5	53.1	56.5	54.7	..
Debt service ratio (% of exps. of goods and servs.)	4.4	4.6	9.4	12.7	16.6	..

.. Not available.

a Includes errors and omissions.

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

18. As a consequence of both the deterioration in the merchandise trade balance and the reduction in the surplus in services, the deficit in the current account increased substantially, from 10.9% of GDP in 2001 to 28.3% in 2006. The current account deficit has been financed mainly through inflows of official capital for public sector projects, mainly in infrastructure, and by direct investment flows, mainly associated with private-sector tourism developments in the Grenadines, such as the construction of a resort in Canouan Island.[8] Upon completion of this project in 2004, however, FDI flows declined considerably. Portfolio investment, mainly in bonds, has also been an important source of revenue.

19. Most of St. Vincent and the Grenadines' external trade takes place under preferential conditions. Agricultural exports account for some 75% of total exports; bananas alone accounted for some 32% of the total in 2005 (Table AI.1). Other agricultural exports include flour and rice, sweet potatoes, eddoes and dasheens, arrowroot, coconuts, and plantains. Exports of manufactures accounted for 24% of total exports in 2005; the main items were machinery and equipment and iron and steel products. Re-exports, mainly of surplus materials and machinery, closely tied to the completion of large investment projects, represented some 9.6%.

20. Merchandise imports expanded by 34% over 2001-05, or at an average annual rate of 6%. The strong construction activity linked to the tourism industry and other infrastructure projects have been mainly behind this growth. Over 60% of imports in 2005 were manufactured goods, particularly machinery and transport equipment (22.7%), semi-manufactures (14%), and other consumer goods (10% of total imports). Food and beverages accounted for 21.5% of total imports (Table AI.2).

21. St. Vincent and the Grenadines's main trading partners are the United Kingdom, the United States, and other CARICOM member countries, which together accounted for more than 97% of exports and 76% of imports in 2005. Over half of total exports are destined for the CARICOM area (Table AI.3). The United States is the main import supplier, with over 33.3% of the total followed by Trinidad and Tobago (23.6%), and the United Kingdom (9.4%). The remaining suppliers accounted for less than 5% each (Table AI.4). Since 2001, the import shares of St. Vincent and the Grenadines' main trading partners have remained mainly unchanged; however, exports to other CARICOM countries have increased substantially, while those to countries other than the United Kingdom and the United States have fallen.

22. Exports of services, particularly tourism, have continued to gain in importance: they accounted for some two-thirds of exports of goods and services in 2005; tourism receipts accounted for slightly over 50%.

23. Net foreign direct investment flows totalled some US$209 million in 2001-05, up from US$67 million in 1995-99. Most of the investment has been in tourism or linked to government-fostered investment projects. Net portfolio investment inflows have also increased substantially, totalling US$77 million in 2001-05, compared with a slight outflow at the time of the previous review.

(5) Outlook

24. No government economic forecasts were made available to the Secretariat. After projected economic growth of around 3.4% for 2006 and a consumer price increase of 1.8%, the IMF is forecasting GDP growth of 5.5% and consumer price inflation of 3.9% in 2007, and of 6.3% and 3.7%, respectively in 2008. The current account deficit of the balance of payments is expected to remain high, at between 20% and 25% of GDP. The fiscal deficit is expected to broaden if no new measures are adopted to reduce it.

II. trade and investment policy framework

(1) General Constitutional and Legal Framework

25. St. Vincent and the Grenadines became an independent parliamentary democracy on 27 October 1979. The Queen of England remains its Head of State and it is part of the Commonwealth of Nations. The Queen is represented by a Governor General. Constitutionally, the Queen is the head of Saint Vincent and the Grenadines' Executive, Legislature and its Judiciary.

26. Real executive authority is exercised by the Prime Minister and his/her Cabinet: they are responsible for concluding and signing international treaties and agreements, including trade-related agreements. The Governor General appoints as Prime Minister the representative in the House of Assembly (the House) who, in his or her sole judgment, appears to command the majority of support from other elected representatives. In principle, this generally means that the Prime Minister is the head of whichever party forms the majority in the House.

27. The Constitution of St. Vincent and the Grenadines grants significant powers to the Prime Minister, including sole authority to: nominate and relieve parliamentary colleagues of ministerial posts; decide the date of elections; veto nominations for the post of Commissioner of Police; appoint the majority of senators; appoint most senior personnel in major statutory boards or organizations; and nominate the majority of appointments to the Public Service Commission.

28. The Cabinet is appointed from among elected representatives in either the House of Assembly or the Senate, and is collectively responsible to the Governor General for the advice it offers. No more than two senators may be appointed to serve in ministerial posts. Where the Attorney General is a public servant as opposed to an elected representative or senator, he or she is automatically an ex-officio member of the Cabinet, and is also a member of the Parliament. The Cabinet is also collectively responsible to the House of Assembly for its decisions.

29. St. Vincent and the Grenadines' legislature is unicameral, with 15 elected representatives and six appointed senators. Elections are required every five years, although they may occur before this. Elections were last held in December 2005.

30. The process of law making starts with the introduction of a bill, usually at the request of a ministry. A bill will generally have three readings: during the second reading the merits of the bill are debated and amendments proposed; the bill will be rejected or passed at its third reading. Bills become law only after receiving the assent of the Governor General and publication in the official Government Gazette. This procedure applies to all laws, including trade and trade-related laws.

31. The legal system is based on English common law. The exercise of ministerial discretion is subject to review by superior courts. The judiciary is guaranteed constitutional independence. At the lowest judicial level are magistrates courts, which deal with minor criminal and civil cases. Serious criminal cases, usually involving indictable charges, and civil cases over a certain threshold, are dealt with by St. Vincent's High Court, which is also capable of interpreting provisions of the Constitution. The first level of appeal is to the Eastern Caribbean Supreme Court, which is an itinerant court based in St. Lucia, but enjoys entrenched protection in the Constitution of St. Vincent and the Grenadines. Final appeal is to the Judicial Committee of the Privy Council, based in London. International agreements that have not been enacted into domestic law cannot be invoked or relied upon by private parties in national courts.

32. All laws must conform to the terms of the Constitution or are void to the extent of any inconsistency. In 2003, the Government of St. Vincent and the Grenadines established a Constitutional Review Commission, with representatives of the Government, the Opposition and civil society organizations. The Commission undertook widespread public consultations for the purposes of reforming the Constitution, and examining the desirability of maintaining appeals to the Privy Council, versus substituting its jurisdiction for that of the Caribbean Court of Justice (CCJ). The CCJ is a superior regional court established by CARICOM Heads of Government in April of 2005. The Constitutional Review Commission delivered its final report to the Parliament in September 2006, recommending the abolition of appeals to the Privy Council and joining the CCJ, as well as reducing Prime Ministerial authority in certain areas.

(2) Trade Policy Formulation and Implementation

33. The Ministry of Foreign Affairs, Commerce and Trade is responsible for advising the Government on trade policy and strategy, and has primary responsibility for WTO affairs and trade-related negotiations. The Division of International Trade in the Ministry, which follows WTO issues, has four staff members. The Ministry of Finance and Planning is responsible for tariff policy, fiscal policy, and for setting general investment policy. The Department of Customs and Excise is responsible for administration of the Customs Act and the General Consumption Tax Act. Trade policy is also influenced by the Ministry of Agriculture, Forestry and Fisheries, the Ministry of Tourism, Youth and Sports, the Ministry of Legal Affairs, the Ministry of Telecommunications, Science and Industry, and the St. Vincent and the Grenadines Bureau of Standards.

34. The main objective of St. Vincent and the Grenadines' national trade policy is the promotion of exports. The Government is hoping to promote long-term and sustainable balanced growth by transforming St. Vincent and the Grenadines into an export-led economy.[9] St. Vincent and the Grenadines has taken a number of steps towards this objective in recent years (Chapter III(2)).

35. While WTO membership is important to overall trade policy in St. Vincent and the Grenadines, it has had to rely more heavily on regional institutions and mechanisms to advance its WTO-related interests due to limitations of human and technical resources. Specifically, it collaborates actively with other OECS and CARICOM states in trade policy formulation and implementation on WTO-and other trade-related issues. Although St. Vincent and the Grenadines participates directly in trade negotiations as and when resources allow, its international trade negotiations are generally facilitated by the Caribbean regional negotiating machinery.

(3) Foreign Investment Regime

36. Foreign investment policy in St. Vincent and the Grenadines is formulated by the Ministry of Finance and Planning. The Ministry of Tourism, Youth and Sports and the Ministry of Foreign Affairs, Commerce and Trade are directly involved in implementation. Prior to 2003, the Development Corporation was mandated to attract foreign direct investments, manage an industrial estate and market the country abroad. The National Investment Promotions Inc. (NIPI) was established in October 2003 with a slightly more focused mandate to promote and sell the image of the country abroad to foreign direct investors. NIPI reports directly to the Office of the Prime Minister and conducts business facilitation through the provision of a range of services to both local and foreign investors.

37. NIPI regards foreign investors as potential exporters, and focuses on creating an environment for such foreign investment to flourish. It sees potential growth in investment and in exports being led almost exclusively by the private entrepreneur.[10] The Government has identified agri-processing, tourism, information and communications technology, and light manufacturing as high export potential areas for involvement by foreign investors.

38. With one exception, foreign investment in St. Vincent and the Grenadines is not subject to restrictions, and foreign investors receive national treatment. The only restriction is a requirement under the Alien Landholding Act (Cap 235 Volume 6 of the Laws of St. Vincent and the Grenadines, Revised Edition 1990, as amended by Act No. 6, 2004) for foreigners to obtain a licence to purchase land, shares or debentures in a company. For foreign investors seeking to purchase one acre or less, the application must contain an approved development plan and an execution plan is required within 18 months. Foreigners wishing to purchase more than one acre of land must present a development plan for the whole area. Licences are granted subject to submission of an application to Cabinet and the payment of requisite licence fees, which amount to 10% of the value of the property purchased.

39. Foreign firms are allowed to repatriate dividends abroad. Jointly owned companies (joint ventures between foreign and national investors) may repatriate profits equivalent to the extent of foreign ownership. Unless granted an exemption under the Fiscal Incentives Act, foreign investment profits are subject to a corporate tax rate between 25% and 40%, with the exception of manufacturing enterprises, which are subject to rates of: 30% on income from sales to the domestic and OECS markets (down from 35% since 2001); 25% on income from exports to non-OECS markets (down from 30% since 2001); and 15% on income from exports to other markets (down from 25% since 2001).[11]

40. In order to attract foreign investment St. Vincent and the Grenadines offers incentives in a range of areas (Chapter III(3)(ii)). The St. Vincent and the Grenadines Export Free Zone Act No. 15 of 1999 grants the port authority responsibility for administering free zones. To date there are no free zones in operation.

41. St. Vincent and the Grenadines has double taxation arrangements with CARICOM member countries, through provisions of the Revised Treaty. It has an investment agreement with Germany, to encourage the reciprocal protection of investments.[12] It does not have any double taxation or bilateral investment agreements with other countries.

42. St. Vincent and the Grenadines is a member of the World Bank's Multilateral Investment Guarantee Agency. It is also a member of the International Centre for the Settlement of Disputes.[13]

(4) International Relations

(i) World Trade Organization

43. Prior to Independence, on 27 October 1979, St. Vincent and the Grenadines applied GATT de facto as a member of the metropolitan territory of the United Kingdom. St. Vincent and the Grenadines became a GATT contracting party on 18 May 1993, under Article XXVI:5(c), with its rights and obligations under GATT retroactive to the date of Independence. St. Vincent and the Grenadines is an original member of the WTO and applies MFN treatment to all its trading partners.

44. There is no specific Uruguay Round Act.

45. Under the GATS, St. Vincent and the Grenadines made initial commitments on tourism, transport, and financial services (Chapter IV(3)), as well as on health related (hospital services) and recreational (entertainment and sporting) services. The country did not present offers in the extended negotiations on telecommunications and financial services. It has presented an initial offer in the DDA negotiations on services, which remains restricted[14]; but has not made a revised offer.

46. St. Vincent and the Grenadines has made a few notifications to the WTO since 2001 (Table II.1).

47. St. Vincent and the Grenadines has supported a request by a number of small developing WTO Members for an extension of time for providing export subsidies until 2018.[15]

Table II.1

Notifications to the WTO, 2002-07

WTO Agreement	Description	Document symbol
Sanitary and phytosanitary measures	Notification of draft legislation and regulations: Plant Protection Bill 2004	G/SPS/N/VCT/1 11 January 2005
Services	Notification as part of CARICOM of the removal of restrictions to the right of establishment and the provision of services among members	S/C/N/229 19 February 2003
State trading enterprises (Art. XVII:4(a) GATT)	New and full notification of St. Vincent Marketing Corporation as St. Vincent's only STE	G/STR/N/4/VCT 19 December 2000 G/STR/N/5/VCT 19 December 2000 G/STR/N/6/VCT 19 December 2000
Subsidies and countervailing measures (SCM) (Art. 27.4)	Request for extension to provide export subsidies	G/SCM/N/74/VCT 4 January 2002 G/SCM/N/71/VCT 20 March 2002 G/SCM/N/95/VCT 26 August 2003 G/SCM/N/99/VCT 26 August 2003 G/SCM/N/114/VCT 7 July 2004 G/SCM/N/123/VCT 12 May 2005 G/SCM/N/146/VCT 4 October 2006

Source: WTO Secretariat.

48. St. Vincent and the Grenadines has not been a plaintiff or defendant in any case before the DSB. It has been a third party in one case (European Communities – Regime for the Importation, Sale and Distribution of Bananas).[16] In November of 2006, Ecuador submitted a request for consultations under Article 21.5 of the DSU and Article XXII of the GATT 1994. St. Vincent and the Grenadines has requested to join the consultations.[17]

(ii) Preferential agreements and arrangements

49. St. Vincent and the Grenadines is a founding member of both CARICOM and the OECS. CARICOM has signed bilateral trade agreements with Colombia, Costa Rica Cuba, the Dominican Republic, and Venezuela. St. Vincent and the Grenadines is also a member of the ACP-EC Revised Cotonou Agreement, and the Association of Caribbean States (ACS).

50. St. Vincent and the Grenadines' exports receive traditional preferential access to the EC market under the ACP-EC Revised Cotonou Agreement. The production and export of bananas to the EC under the agreement had been one of St. Vincent and the Grenadines's major economic activities, accounting for a significant percentage of the country's exports. This has declined steadily in recent years, since preferences have been eroded due to changes in the banana regime. St. Vincent and the Grenadines is now engaged as part of CARIFORUM in negotiations with the EC to conclude an economic partnership agreement.

51. Exports of a number of products from St. Vincent and the Grenadines enjoy preferential access to the U.S. market under the CBI. In mid 2000, the United States granted CBI beneficiaries extended preferences. Canada also grants preferential access to a number of exports from St. Vincent and the Grenadines, through CARIBCAN. Notwithstanding these arrangements, CARICOM and the United Kingdom remain the most important markets for exports; exports to the United States and Canada are relatively low compared with the other markets (Table AI.3).

52. Products from St. Vincent and the Grenadines are eligible for the GSP schemes of Australia, Canada, the European Communities, 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

53. Importers are not required to register, or to use customs brokers. Customs (Control and Management) Act No. 14 of 1999 governs customs procedures. Up to six documents are required for imports: all imports must be accompanied by a declaration either by the importer or a broker; a formal entry warrant itemized with the corresponding tariff numbers, the quantity imported, and the customs value of each good imported; an invoice; and a bill of lading or airway bill. Other documents that may be required, depending on the nature of the import, include: an import licence (section (1)(vi)); a certificate of origin for goods benefiting from CARICOM duty relief; and a veterinary or health certificate.

54. Customs uses ASYCUDA to process customs documents electronically. The Customs and Excise Department is in the process of implementing ASYCUDA ++. The manifest module was implemented on 30 April 2007. This will eventually allow for electronic filing of entries, a reform that would facilitate trade. ASYCUDA V2.71 is used to process all customs documents electronically, and it computes the duties and taxes payable; the filing of documents by importers is still done on paper, but the authorities hope to have an electronic filing system in place by July 2007. Advanced Passenger and Cargo Information Act No. 4 of 2007 provides for carriers and agents to submit their passenger and manifest information electronically, but some documents will still be required in hard copy.

55. Most imports clear customs within 24 hours, with priority given to perishables, but some items require up to 48 hours. Less than 50% of imports are subject to physical inspection; those that are inspected are chosen on the basis of a risk assessment. An importer may, prior to importation, consult with the Queries Officer to determine the correct tariff classification of an item. Customs decisions may be appealed to the Comptroller of Customs. St. Vincent and the Grenadines is not a member of the World Customs Organization.

(ii) Customs valuation

56. St. Vincent and the Grenadines has not notified its customs valuation regime to the WTO. It did not invoke the special and differential treatment provisions in Article 20 of the WTO Customs Valuation Agreement, nor has it responded to the WTO checklist of issues on customs valuation.[18]

57. St. Vincent and the Grenadines implemented the WTO Customs Valuation Agreement in 2000. The legislative framework was incorporated into the Customs (Control and Management) Act No. 14 of 1999, Second Schedule. The methods of valuation contained in the Code are used in the order prescribed in the Agreement. The authorities note that the transaction value is used for about 95% of imports. No minimum or reference prices are used for valuation purposes. Benchmark values are used for reference purposes where no transaction value is declared; for this purpose customs uses catalogues as well as an internal database that contains values captured from previous imports.

(iii) Rules of origin

58. St. Vincent and the Grenadines has not notified to the WTO either its preferential or non-preferential rules of origin.[19]

59. St. Vincent and the Grenadines 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. St. Vincent and the Grenadines has obtained derogations for rice, and for coniferous wood for the manufacture of furniture. These derogations are still in place (mid 2007). St. Vincent and the Grenadines, 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. Implementation of the VAT has contributed to the delay in implementation in St. Vincent and the Grenadines, but the authorities expect HS 2007 to be used by 1 January 2008.

(iv) Tariffs, and other charges on imports

(a) Tariff revenue

60. Customs duties have been an important source of revenue in St. Vincent and the Grenadines, but that will likely change with the tax reforms instituted in 2007 (see section (1)(v)). Customs duties totalled EC$34 million in 2006, some 8.6% of the Central Government's current revenue for that year, and 9.4% of its tax revenue.[20] Other taxes on imports are also important sources of revenue: the consumption duty collected on imports totalled EC$94.2 million, accounting for some 23.9% of total central government current revenue, while the customs service charge yielded EC$26.1 million, (6.6% of revenue) In all, these taxes on imported goods represented 41.3% of total revenue in 2006, slightly above the 2000 figure of 39.8%.

(b) MFN applied tariff structure

61. St. Vincent and the Grenadines grants at least MFN treatment to all its trading partners. The vast majority of tariff rates are ad valorem; specific rates apply on 13 lines at the seven-digit level, which correspond to alcoholic beverages such whisky, rum, and gin (HS 2208), wine (HS 2204), and vermouth (HS 2205). These rates have not been included in the summary statistics presented below. There are no seasonal tariffs, or tariff quotas.

62. The tariff, as applied in 2006, is based on the Harmonized Commodity Description and Coding System and comprises 6,274 tariff lines at the ten-digit level (Table III.1).[21] The tariff has nine tiers, with rates of 0%, 5%, 10%, 15%, 20%, 25%, 30%, 35%, and 40%. Duty-free treatment is accorded to 7.2% of tariff lines for MFN imports. Almost one third of agricultural tariff lines are subject to a rate of 40%, while the maximum applied rate on non-agricultural goods is 20%.

Table III.1

Structure of the tariff, 2006

(Based on the 2000 tariff)

1.	Total number of tariff lines	6,274
2.	Non-ad valorem tariffs (% of all lines)	0.8
3.	Non-ad valorem tariffs with no AVEs (% of all lines)	0.8
4.	Tariff quotas (% of all lines)	0.0
5.	Duty-free tariff lines (% of all lines)	7.2
6.	Dutiable lines average rate (%)	11.7
7.	Domestic tariff "peaks" (% of all lines)^a	6.2
8.	International tariff "peaks" (% of all lines)^b	27.3
9.	Bound tariff lines (% of all lines)	99.7

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%.

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

63. The simple average MFN tariff in 2006 (based on the 2000 tariff) was 10.9% (14.9% when the CSC is included). The average MFN tariff for agricultural products (WTO definition) was 20.5% (24.5% with the CSC) and 9% (13%) for non-agricultural products (Table III.2). Among the highest average MFN tariffs in agriculture are on fish and fishery products (29%), tobacco (26%), and fruit and vegetables (25.7%). While tariffs on non-agricultural products are generally lower, the averages are relatively high for arms and ammunition (24.3%), works of art (20%), and footwear and headgear (16.2%). St. Vincent and the Grenadine has a partially inverted tariff structure, insofar as tariffs are highest on the first stage of processing, and lowest on semi-processed products. St. Vincent and the Grenadines imposes a 4% customs service charge (CSC, see below).

64. St. Vincent and the Grenadines has applied the CARICOM Common External Tariff (CET) since 1991, and implemented Phase IV of the CET on 1 January 1998. CET tariff changes occur at CARICOM level, but ultimate authority for the determination of tariff rates rests with Parliament. Temporary reductions of the CET and the imposition of import charges are made by the Ministry of Finance, Planning and Development.

Table III.2

Summary analysis of the MFN tariff, 2006

(Based on 2000 tariff)

Description	MFN
				Coefficient of	Final bound
	No. of	Average	Range	variation	average^a
	lines	(%)	(%)	(CV)	(%)
Total	6,274	10.9	0 - 40	0.9	65.0
HS 01-24	1,033	20.5	0 - 40	0.8	117.3
HS 25-97	5,241	9.0	0 - 35	0.8	54.9
By WTO category
WTO Agriculture	989	18.0	0 - 40	0.8	115.6
Animals and products thereof	129	17.7	0 - 40	0.9	121.2
Dairy products	24	6.7	0 - 20	0.8	100.0
Coffee and tea, cocoa, sugar etc.	171	17.9	0 - 40	0.8	111.2
Cut flowers, plants	55	11.7	0 - 40	1.2	100.0
Fruit and vegetables	253	25.7	0 - 40	0.6	121.5
Grains	28	17.8	0 - 40	0.7	116.1
Oil seeds, fats and oils and their products	85	17.7	0 - 40	1.0	127.4
Beverages and spirits	78	22.1	5 - 40	0.5	129.4
Tobacco	10	26.0	5 - 35	0.6	104.8
Other agricultural products n.e.s.	156	6.5	0 - 40	1.0	101.5
Table III.2 (cont'd)
WTO Non-agriculture (incl. petroleum)	5,285	9.6	0 - 40	0.9	55.5
WTO Non-agriculture (excl. petroleum)	5,246	9.6	0 - 40	0.9	55.4
Fish and fishery products	134	29.0	0 - 40	0.5	117.8
Mineral products, precious stones and precious metals	411	9.1	0 - 30	0.8	55.4
Metals	714	6.6	0 - 20	0.8	50.8
Chemicals and photographic supplies	991	7.0	0 - 30	0.8	52.4
Leather, rubber, footwear and travel goods	168	10.7	0 - 25	0.7	51.5
Wood, pulp, paper and furniture	314	9.6	0 - 25	0.7	64.5
Textile and clothing	949	11.6	0 - 30	0.6	52.8
Transport equipment	184	10.3	0 - 35	1.0	65.0
Non-electric machinery	592	6.4	0 - 35	1.0	51.4
Electric machinery	269	9.8	0 - 35	0.8	54.4
Non-agriculture articles n.e.s.	520	13.5	0 - 35	0.7	55.5
Petroleum	39	7.3	0 - 35	1.1	72.5
By ISIC sector^{a, b}
Agriculture and fisheries	388	24.6	0 - 40	0.7	111.6
Mining	116	6.9	0 - 25	0.8	53.0
Manufacturing	5,769	10.1	0 - 40	0.9	62.1
By HS section
01 Live animals & products	269	22.6	0 - 40	0.8	115.3
02 Vegetable products	388	21.6	0 - 40	0.8	117.3
03 Fats & oils	53	24.3	4 - 40	0.7	145.4
04 Prepared food etc.	323	16.8	0 - 40	0.6	114.4
05 Minerals	203	6.4	0 - 35	0.8	55.8
06 Chemical & products	929	6.9	0 - 30	0.8	55.0
07 Plastics & rubber	234	7.7	0 - 25	0.9	51.8
08 Hides & skins	84	10.2	5 - 20	0.7	62.5
09 Wood & articles	122	9.7	0 - 20	0.6	53.0
10 Pulp, paper etc.	169	8.2	0 - 25	0.8	55.1
11 Textile & articles	935	11.3	0 - 20	0.7	54.2
12 Footwear, headgear	66	16.2	0 - 20	0.4	50.0
13 Articles of stone	195	10.0	0 - 25	0.7	51.8
14 Precious stones, etc.	61	15.2	0 - 25	0.7	73.5
15 Base metals & product	708	7.0	0 - 35	0.8	50.9
16 Machinery	894	7.8	0 - 35	0.9	52.5
17 Transport equipment	194	10.1	0 - 35	1.0	64.2
18 Precision equipment	248	11.4	0 - 30	0.8	56.7
19 Arms and ammunition	20	24.3	0 - 35	0.5	79.2
20 Miscellaneous manufactures	171	15.3	0 - 20	0.4	71.2
21 Works of art, etc.	8	20.0	20 - 20	0.0	50.0
By stage of processing
First stage of processing	786	18.4	0 - 40	0.9	94.4
Semi-processed products	1,829	5.5	0 - 40	0.7	53.4
Fully-processed products	3,659	12.0	0 - 40	0.7	64.5

a Bound rates are provided in HS96 classification and applied rates in HS2002; therefore, there may be a difference between the number of lines included in the calculation.

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

Source: WTO Secretariat estimates, based on data provided by the authorities of St. Vincent and the Grenadines.

65. Exceptions to the CET are included in Lists A, B, C, and D of the Tariff Schedule of each CARICOM Member. In the case of St. Vincent and the Grenadines, products included in List A, which are subject to a maximum customs duty of 40%, includes mainly agricultural products, packaging material, ceramics, washing machines and dryers, and sanitary fixtures. List C contains products that are revenue-sensitive; most goods included in this list (e.g., automobiles, some electrical appliances, precious metals, tobacco products, beer, wine and spirits) as well as some general manufactures (e.g., soap and shampoo) are subject to a 30% tariff. Rates applied on these products are generally higher than CET rates, and some products on the list are subject to specific rates. Applied rates may be modified for budgetary purposes; since goods included in List C are exceptions to the CET, tariffs applied on them are not fixed under CARICOM. St. Vincent and the Grenadines has bound most of these goods in the WTO at rates higher than 50% (see below).

66. CARICOM members may maintain applied tariffs below CET rates for goods included in the List of Conditional Duty Exemptions to the CET, which states the purposes for which the goods may be admitted into the importing member state free of import duty or at a rate lower than the CET. St. Vincent and the Grenadines, as an LDC within CARICOM, may import all inputs duty free instead at a the CET rate of 5%. There is also a List of Items Ineligible for Duty Exemption, which includes goods produced in the CARICOM in quantities considered adequate to justify the application of tariff protection.

67. Article 164 (Promotion of Industrial Development) of the revised Treaty of Chaguaramas allows less developed CARICOM countries to petition COTED to suspend Community-origin treatment to products "as a temporary measure in order to promote the development of an industry". COTED approved the list of products and rates in January 2006.[22] These rates were not being applied by St. Vincent and the Grenadines as of early 2007.

(c) Bound MFN tariffs and undertakings on quotas

68. St. Vincent and the Grenadines bound all its tariff lines during the Uruguay Round; it had not made any previous tariff commitments under the GATT. Tariffs on imports of industrial products (HS 25-97) were bound at a uniform rate of 50%, with over 200 exceptions at the HS four-, six-, seven- or eight-digit levels. Non-agricultural products included in List C, which are exceptions to the CET, were bound at higher rates. For example, automobiles were bound at rates between 100% and 140%, according to the category. Agricultural products were bound at a ceiling level of 100% with some exceptions that range between 107% and 250%.

69. St. Vincent and the Grenadines left blank the column "other duties and charges" in its schedule, which in practice is equivalent to having entered "zero".[23]

(d) Tariff and tax concessions

70. Numerous agreements and laws provide for duty-free imports. These programmes accounted collectively for some EC$441.5 million in forgone tariff revenue during 2001-06 (Table III.3). The largest category of concessional imports was those taking place under government agreements or legislation.

71. In accordance with Duties and Taxes (Exemption in the Public Interest) Act No. 6 of 1980, as amended by Act No. 8 of 1987 (Cap 305 of the Laws of St. Vincent and the Grenadines), Cabinet may grant a partial or total waiver or relief from import duties on specific goods, upon request by individuals or organizations, if it is considered to be in the public interest. Tariff exemptions are granted on imports of capital and consumer goods and building materials to be used in a free zone (see section (2)(ii)). Government imports are exempt from both the tariff and the CSC.

Table III.3

Revenue forgone on concessional imports, 2001-06

(EC$ million)

Purpose of concession	2001	2002	2003	2004	2005	2006	Total
Government agreements or legislation	25.4	8.0	18.4	39.5	31.2	38.9	161.5
Special cabinet/ministerial concessions	17.2	10.7	13.3	11.0	15.2	18.5	85.9
Statutory bodies	5.9	8.7	7.9	10.2	7.2	13.1	53.1
Government and governmental purposes	8.1	6.3	6.9	9.4	10.2	8.1	49.0
Industry	10.1	8.8	2.6	2.9	3.8	5.2	33.3
Fiscal Incentive Act and legislation	0.7	4.3	10.0	5.8	4.2	5.9	31.0
Diplomatic missions and international organizations	0.3	0.3	0.6	2.4	0.8	0.6	5.1
Other approved purposes	0.4	0.8	0.8	0.3	0.2	1.3	3.8
Home use by returning nationals	0.6	0.8	0.3	0.3	1.0	0.7	3.7
Movement of persons	0.3	0.5	0.5	0.7	0.5	0.5	3.0
Aircraft	0.5	0.3	0.3	0.3	0.5	0.7	2.6
Home use under Hotel Act for hotels	0.0	0.0	0.1	0.7	0.5	0.3	1.6
Educational and cultural purposes	0.4	0.5	0.0	0.0	0.2	0.2	1.3
Health purposes	0.1	0.2	0.0	0.0	0.1	0.6	1.1
Home use under concession for senior civil servants	0.2	0.3	0.0	0.2	0.0	0.1	0.7
Home use under concession for churches	0.0	0.0	0.5	0.0	0.0	0.0	0.5
All other programmes	0.8	0.6	0.5	0.3	1.5	0.5	4.2
Total	71.1	51.2	62.7	84.1	77.1	95.3	441.5

Source: Information supplied by the authorities.

72. A duty-free concession can be granted on items used in the fishing industry (including fishing nets, marine engines, and other equipment). Applicants must request the concession from the Chief Fisheries Officer, providing proof of being a fisher or stakeholder in the fishing industry. Processing of requests requires six to eight weeks. All materials, equipment, stores, vehicles, and other goods acquired by the Banana Growers Association are exempt from customs duty and other duties and taxes. Elements of duty relief are also a feature of the several investment, production, and export promotion schemes put in place by the Government.

73. In the 2006 Budget Address the Government announced that it would rationalize the system of granting duty-free concessions in order to control the revenue losses. The proposal would lower the concessions associated to 50% of the import duties and consumption tax payable on specific categories.

(e) Tariff preferences

74. Duty-free access is granted by St. Vincent and the Grenadines to imports from other CARICOM countries, provided they meet the CARICOM rules of origin.

(v) Other levies and charges

75. St. Vincent and the Grenadines applies a customs service charge of 4% on the c.i.f. value of imports, in addition to tariffs; the CSC applies to imports from other CARICOM countries. Two companies that operate resort islands (i.e., the Mustique Company and Canouan Development Company) are exempt by statute from the CSC and import duties for most items; they do pay CSC and duties on imports of food.

76. The Government of St. Vincent and the Grenadines has revamped it tax system based upon the conclusion of a 2006 White Paper that the tariff, excise, and domestic consumption tax regimes needed to be rationalized. Studies of its tax regime had been undertaken in the expectation that import duties, which constitute a substantial part of its revenues, would be reduced significantly by its commitments to CARICOM and by ongoing negotiations at the regional and multilateral levels. The VAT White Paper found that the existing array of charges "resulted in inefficiencies and inequities within the system and, in some sectors, high costs of conducting business because of difficulty in administering and complying with these indirect taxes".[24] The paper recommended replacing these with a VAT.

77. Following the White Paper recommendations, a VAT was introduced. The Value Added Tax Act No. 25, 2006 entered into effect on 1 May 2007. The VAT is generally assessed at 15% on taxable supplies and taxable imports; a reduced rate of 10% is imposed on hotel and holiday accommodation. The VAT must be paid to the Comptroller of Customs by the importer at the time of import; for domestic transactions, the VAT is paid to Inland Revenue. The value of a taxable import for the purpose of computing VAT is the sum of the customs value of the goods determined in accordance with the Second Schedule of the Customs (Control and Management) Act, i.e., c.i.f. value and any customs duties, taxes or fiscal charges payable on the importation e.g. import duty, customs service charge, excise tax and vehicle surtax. Exemptions and zero-ratings are provided under the law for several types of supplies and transactions (Table III.4).

Table III.4

VAT exemptions and zero-rated supplies, 2007

Zero-rated

Export of goods and other supplies of goods for consumption outside of St. Vincent and the Grenadines

Export services and other supplies of services for consumption outside of St. Vincent and the Grenadines

Non-package white rice; cane sugar; milk; raw chicken back, neck and wings; raw turkey back, neck and wings; baby formula; and non-package wheat flour

The first 200 kilowatt hours per month of electricity and the fuel surcharge provided by Vinlec or any other approved person

Gasoline, kerosene, diesel, and LPG

Exercise books, newspapers, and computers

Packages, containers, labels, and bottles

Invalid carriages and orthopedic appliances

Services by: (a) St. Vincent and the Grenadines Port Authority, or (b) any airport in St. Vincent and the Grenadines

International financial services

Exempt

Financial services

International transport services including international mail services provided by the postal corporation

The sale of real property

A lease, licence, hire or other form of supply of the rights to occupy accommodation in residential premises

Hotel or holiday accommodation for a continuous period of more than 45 days

Transportation of passengers by land, sea, or air within St. Vincent and the Grenadines excluding: (a) chartered tours, and (b) a chartered journey by sea or air

Education services

Medical, dental, nursing, convalescent or similar services

Nursing homes or residential care for the aged, indigent, infirm or disabled

Prescription medicines

Veterinary services

Gambling by an approved non-profit body

Tickets in a lottery conducted by the national lotteries authority or the Windward Islands lotteries commission

Domestic postal services by the postal corporation

Supply of unprocessed agricultural products if the supplier is the producer of the goods

Supply of live animals or insects other than domesticated animals generally held as pets

Agricultural inputs including machinery and equipment for agriculture

Fishing inputs including boats and outboard engines up to 75 hp and inboard diesel engines, used for taxable fishing activity

Aircraft and ship stores and spare parts if used during flight or voyage that constitutes international transport

Bread supply by the producer of the bread

Table III.4 (cont'd)

Services by a trade union to a member or another trade union in the ordinary course of its objectives as a trade union

Articles of religion, worship or a supply of religious services by an institution

Goods or services supplied to a diplomatic mission

Import of goods given as an unconditional gift to an approved charitable organization, or government school

Goods imported for international organization or personal

Imports of goods that are exempted from custom duties

Goods shipped or conveyed to St. Vincent and the Grenadines for trans-shipment or conveyance to any other country

Supply of water by the central water and sewerage authority if the supply is provided to residential premises for domestic use

Source: Information provided by the authorities.

78. The VAT replaces taxes that together generated revenue estimated at EC$100.3 million in 2006.[25] At the same time, St. Vincent and the Grenadines instituted new excise taxes on 15 types of goods; like the VAT, the excise taxes entered into effect 1 May 2007. These taxes apply to various types of alcohol, tobacco, fuels, vehicles and parts, and incandescent bulbs (Table III.5). For excise taxes applied to imports on an ad valorem basis, the tax is based on the actual value of the good, and not the value plus the tariff and CSC.

79. Trade (Bottle Deposit Levy) Act No. 13 of 1991, amended by Act No. 3 of 1993, Act No. 4 of 1993, Act No. 3 of 1998 and Act No. 8 of 2002, provides for a refundable deposit on beer, malt, stout, ale, aerated beverages, and juices in non-returnable bottles or cans at a rate of EC$0.50 cents per bottle or can. The excise equalization tax on CARICOM rum at specific rates, was abolished as of 1 May 2007.

Table III.5

Excise taxes that entered into effect 1 May 2007

(EC$ and per cent)

Commodity	Rate
Beers and stouts	$0.66 per litre
Malt	$0.35 per litre
Wine	$2.0 per litre
Rum, brandy, whiskey, gin, vodka and liquor	$2.00 per litre
Other fermented beverages	$0.66 per litre
Gasoline	$2 per gallon
Gas oil	$0.7 per gallon
Kerosene	$0.5 per gallon
Butanes	$3 per 100 lb
Used tyres	20%
Incandescent bulb	10%
Transport vehicles	50%
Car and jeeps	45%
Goods vehicles	55%
Tobacco	5%
Cigars and cigarettes	10%

Source: Information supplied by the authorities.

(vi) Import prohibitions, restrictions, and licensing

80. St. Vincent and the Grenadines has not notified its import-licensing system to the WTO, nor has it replied to the questionnaire on import-licensing procedures (G/LIC/2).

81. Import and Export (Control) Regulations No. 10 of 1992 (as amended by Act No. 18 of 1995 and Act No. 38 of 1998), prohibits the import of certain goods without a licence. The importation of jet skis and water bikes is prohibited. Imports of arms, ammunition, camouflage clothing, and toy guns are allowed only with the permission of the Commissioner of Police. Imports of ozone-depleting substances and chemical weapons are also restricted. Customs Control and Management Act No. 14 of 1999, Third Schedule, makes provision for prohibitions and restrictions covering goods such as swords, chain saws and tear gas.

82. Goods listed in the First Schedule of the Import and Export (Control) Regulations require import licences when imported from any country outside the OECS and Belize, while those listed in the Second Schedule require import licences when imported into St. Vincent and the Grenadines from any country outside CARICOM (Table III.6). According to the 1992 regulations, the granting of licences for goods included in the First Schedule is non-automatic. These goods were subject to quantitative restrictions in accordance with Article 56 of the CARICOM Treaty, but were tariffied in 2005 as per Article 164 of the revised Treaty of Chaguaramas; some fall within the WTO definition of agriculture. Quotas were determined product-by-product, taking into account domestic production and imports of the restricted goods in the three-year period prior to the licence application, and allowing for a growth rate.

Table III.6

Import licensing requirements

First Schedule: Goods that require import licences when imported into St. Vincent and the Grenadines from any country outside the OECS and Belize:

Curry powder (HS 0910.50); wheat flour (HS 1101.00); margarine (HS 1517.10); shortening (HS 1517.901); pasta products (HS 1902); aerated beverages (HS 2202.101); malt (HS 2202.902); beer (HS 2203.001); stout (HS 2203.002); oxygen (HS 2804.400); carbon dioxide (HS 2811.21); acetylene (HS 2901.002); candles (HS Ex 3406); toilet paper (HS 4818.10); paper bags (HS Ex 4819.30 and Ex 4819.40); solar water heaters (HS 8419.10); chairs and other seats (HS Ex 9401); other furniture of wood and upholstered fabric (HS Ex 9403)

Second Schedule: Goods that require import licences when imported into St. Vincent and the Grenadines from any country outside the CARICOM:

Live poultry (HS 0105); meat and edible meat offal (HS 0201-0204); edible offal of bovines, sheep, etc. (HS 0206); meat and edible offal of fowl (HS 0207); other meat and edible offal (HS 0208); fish, frozen (HS 0303); salmon, trout and other fish (HS Ex 0305); milk and cream not concentrated (HS 0401); ); milk and cream concentrated (HS 0402); honey, natural (HS 0409.00); parts of Christmas trees (live) (HS Ex 0604); tomatoes (HS 0702); onions (HS 0703.101); cabbages (HS 0704.001); carrots (HS 0706.001); okra (HS 0709.003); pumpkin (HS 0709.004); sweet peppers (HS 0709.006); other vegetables (HS 0709.009); dried vegetables (HS 0712.00); coconut, Brazil nuts and cashew nuts fresh or dried (HS 0801); bananas, fresh or dried (HS 0803); pineapples, avocados, mangoes, guavas, and mangosteens fresh or dried (HS Ex 0804); peppers (HS 0904); cinnamon (HS Ex 0906); cloves (HS 0907.00), rice (HS 1006); starches (HS 1108); groundnuts (HS Ex 1202); edible vegetable oil (HS 1507-1515); sausages and the like of meat, meat offal or animal blood (HS 1601); cane or beet sugar (HS 1701); cheezets and corn churls (HS Ex 1904); bread, pastries, cakes, etc. (HS 1905); jams, fruit jellies, marmalades (HS 2007); fruit and vegetables juices (HS 2009); ice cream (HS 2105.001); water and aerated beverages (HS 2202); over proof rum (HS 2208.409); paints and varnishes (HS 3208-3210); shampoos (HS 3305.01); hair conditioners (HS Ex 3305.90); deodorant (HS 3307.20); household soaps (HS 3401.191); medicated soaps (HS 3401.111); toilet soaps (HS 3401.112); plastic tubing for the banana industry (HS Ex CH 39); PVC pipes (HS Ex 3917.201); poly-foam (HS Ex 3921); plastic bags (HS Ex 3923.20); retreaded tyres (HS Ex 4012); doors, wooden (HS 4418.20); grass mats (HS Ex 4601); corrugated cartons (HS Ex 4819.10); exercise books (HS 4829.20); carpets, rugs and mats of vegetable plaiting materials (HS 5720); T-shirts (HS Ex 6109); bed linens (HS 6302); mattresses and mattress supports (HS Ex 9404).

Source: The Import and Export (Control) Regulations No. 10 of 1992.

83. Most imports are subject to automatic licensing; the authorities indicate that this is for data-collection reasons. Non-automatic licensing is applied on: products previously subject to quantitative restrictions under Article 56 of the Treaty of Chaguaramas, and currently subject to tariffication under Article 164 of the revised Treaty;[26] imports of animals, poultry, livestock, and poultry products, plants and plant products, pesticides, drugs and antibiotics, firearms, fireworks, arms and ammunition; and chemicals controlled by the Montreal Protocol. For all other products, licences are granted on request by the importer. The import-licensing regime is administered by the Ministry of Foreign Affairs, Commerce, and Trade. The authorities state that they intend to rationalize Import and Export (Control) Regulations No. 10 of 1992 as it relates to minimizing the list. The 2005 Budget Address mentioned that changes would be introduced to the licensing of imports from other CARICOM countries.

84. To import marine and freshwater products, an importer’s licence must be obtained from the Ministry of Foreign Affairs, Commerce, and Trade. The importer must also have a Health Certificate issued by the Fisheries Division; the importer must inform the Division at least 48 hours before the inspection is needed.

85. Import permits are also required for certain imports controlled for sanitary, phytosanitary, health, or safety reasons (e.g., live animals, plants and seeds, arms and ammunition) (section (1)(ix)). A permit to import firearms must be obtained from the Commissioner of Police prior to importation.

(vii) Contingency measures

(a) Anti-dumping and countervailing measures

86. St. Vincent and the Grenadines has made no notifications to the WTO Anti-dumping Committee. It has not notified its anti-dumping and countervailing legislation to the WTO. Its notifications to the Committee on Subsidies and Countervailing Measures concern export subsidies (section (2)(ii))

87. Anti-dumping and Subsidies legislation is contained in the Customs Duties (Dumping and Subsidies) Act, Cap 304 of the Laws of St. Vincent and the Grenadines. This Law was applied once, in 1999, in relation to imports of flour from Grenada; however, no duties were imposed.

(b) Safeguards

88. St. Vincent and the Grenadines 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.

89. The use of safeguards is permitted by CARICOM rules. As a CARICOM less developed country, St. Vincent and the Grenadines may invoke the special provisions in Chapter 7 of the Revised Treaty of Chaguaramas. Articles 150 and 164 (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. This article superseded Articles 29 and 84 of the original Treaty. In the 1990s St. Vincent and the Grenadines applied to the CARICOM Secretariat for derogations in accordance with the safeguards provisions of the Treaty; safeguards in the form of import quotas were applied to imports of beer and malt from third countries and CARICOM MDCs. However, these measures have been in place since 2001.

(viii) Technical regulations and standards

90. The St. Vincent and the Grenadines Bureau of Standards (SVGBS) has been notified to the Committee on Technical Barriers to Trade as the enquiry point for standards, technical regulations, certification, conformity assessment procedures and metrological services.[27] The SVGBS has accepted the Code of Good Practice for the Preparation, Adoption and Application of Standards contained in Annex 3 to the TBT Agreement.[28] St. Vincent and the Grenadines has made no other notifications to the TBT Committee.

91. The SVGBS is responsible for the preparation, promotion, and implementation of national standards in relation to goods, services, processors, and practices. Some national standards are compulsory (technical regulations within the meaning of the TBT Agreement), and others are voluntary. The authorities stated in the context of this review that technical regulations and standards are based on and/or adopted from international standards of ISO, CODEX and IEC. The SVGBS has membership in Codex Alimentarius and the CARICOM Regional Organization for Standards and Quality (CROSQ).

92. Notices of all technical regulations and standards are published in the Official Government Gazette. The general public is also informed through the local press. Technical regulations and standards are published by the SVGBS, and the existence of national standards is made known through the press and in the SVGBS Standards Catalogue.

93. Standardization, testing, and type approval of goods are regulated by the Standards Act No. 70 of 1992, implemented in 1998 and amended by Act No. 28 of 2001. The Standards Act established the SVGBS and covers technical regulations and standards for goods, services, and processes and practices. The SVGBS is entitled to declare and review standards, and provide testing and calibration services; it may also act as an advisor to the private sector in quality control issues. The general affairs of the SVGBS are managed by a National Standards Council (NSC), appointed by the Cabinet. The NSC is an intergovernmental body, with public and private sector and consumer participation; it is a member of the International Organization for Standardization (ISO), the Pan American Standards Commission (COPANT), and the Caribbean Common Market Standards Council (CCMSC). It is also the national contact point for the Codex Alimentarius Commission. The NSC's main responsibility is to determine and approve policy guidelines to ensure that the standardization activities pursued by the SVGBS play a role in the development of the economy.

94. Technical regulations or standards are developed by technical committees, or in some cases they may be developed and proposed by other national organizations and institutions. The first source for the development of national standards is CARICOM standards (standards developed by the CROSQ) followed by other international standards, which are generally adopted or adapted.

95. On the recommendation of the SVGBS, the relevant Minister may declare a standard to be compulsory. These technical regulations are intended primarily to protect health and safety, prevent fraud or deception, ensure quality in goods produced for export, or ensure quality when supply is restricted. Imports of goods that are subject to technical regulations must be accompanied by a certificate of examination and compliance with the standard issued by a laboratory recognized by the SVGBS or similar institution in the country of origin. Otherwise they are subject to examination of samples. Compliance with technical regulations may be monitored randomly by inspectors appointed by the Bureau. There are no certification bodies in St. Vincent and the Grenadines, but the SVGBS is authorized to certify products and services. The SVGBS may grant licences to use the St. Vincent and the Grenadines Standard Mark where there is a domestic standard for the product. The Standard Mark is the property of the Bureau.

96. As at March 2007, the SVGBS had developed 41 St. Vincent and the Grenadines national standards, of which six were compulsory (technical regulations), dealing mainly with labelling (five) and specification for tyres (one).[29] Since 2001, no new technical regulations have been declared. However, 12 standards covering the areas of construction materials and food products have been recommended by the NSC to be declared as technical regulations.

(ix) Sanitary and phytosanitary measures

97. The Animal (Disease and Importation) Control Act (Cap 49 of the Laws of St. Vincent and the Grenadines, Revised Edition, 1990), and the Plant Protection Act No. 15 of 2005, which supersedes the Plant Protection Act No. 22 of 1998 comprise the main legislation on sanitary and phytosanitary issues, respectively. St. Vincent and the Grenadines notified the Plant Protection Bill, SROs No. 1/28/43 of 2004, which later became the Plant Protection Act of 2005, to the WTO Committee on Sanitary and Phytosanitary Measures (SPS) as an Act to prevent the introduction and to control the spread of plant pests, to protect plant resources, to facilitate trade in plants and plant products, and to regulate matters related thereto.[30] No other notifications have been made to the Committee.

98. The Ministry of Agriculture, Forestry and Fisheries addresses issues of phytosanitary and sanitary measures in agriculture, livestock and crops. The Ministry of Health and the Environment has responsibility for sanitary measures, as it relates to health and food safety. Under this new arrangement, introduced in 2000, the focal point for St. Vincent and the Grenadines on phytosanitary measures, is the contact person or designated head of the newly established National Plant Protection Organisation (NPPO). The Plant Protection Act of 2005, delegates the Ministry with responsibility for Agriculture as the designated National Plant Protection Organisation. The Minister for Agriculture is obligated to report the name of the NPPO to the International Plant Protection Convention Secretariat (IPPCS). The list of duties of the NPPO is detailed in Part 11 Administration, of the Plant Protection Act of 2005.

99. Further to this, the Ministry of Agriculture has prepared a draft Bill to be read in Parliament in 2007 on matters pertaining to 'Agriculture Health and Food Safety'. A SVG Animal (National and International) Movement and Diseases Bill, relating to anti –mortem and post –mortem inspections, is in the drafting process.

100. All food items must be inspected and certified on Customs declarations as being fit for human consumption. Imports of live animals, plants, and seeds are subject to quarantine regulations and require import licences. Live animals, birds, and poultry, require a permit by the Chief Veterinary Officer and an import licence. The authorities note that licences are generally granted within 48 hours.

101. Imports of all restricted articles as well as imports from countries where there is evidence of pests, require the presentation of a phytosanitary certificate. A phytosanitary certificate from the exporting country is also required on all shipments of fresh fruit and vegetables. A sanitary certificate is required for meat imports; the certificate must be provided by the appropriate government agency in the exporting country. In February 2007, a temporary ban was placed on all poultry imports from the United Kingdom, in light of the outbreak of Avian Influenza.

102. Imports of pesticides require a permit from the Pesticides Control Board, under the Pesticide Control Act No. 7 of 1975. The import of controlled drugs requires an import licence issued by the Ministry of Health, under Drugs (Prevention and Misuse) Act No. 22 of 1988. Applications for a pesticide permit are available online from the Ministry of Agriculture, Forestry and Fisheries.[31]

103. In early 2007, St. Vincent and the Grenadines made a submission to the SPS Committee in which it stressed the adverse effects on its exporters, and especially small farmers, caused by what it described as "the proliferation of standards developed by private interest groups without any reference to the SPS Agreement or consultation with national authorities".^{^[32]} According to a government study cited in the submission, these standards are estimated to impose costs of more than US$3 million on approximately 3,000 farmers. St. Vincent and the Grenadines therefore urged the consideration of four steps: (a) companies and corporations that institute these standards should make available a support facility for producers in small vulnerable economies; (b) standards should be more flexible and take into consideration specific crops and country situations; (c) producers should be involved as much as possible in the development of standards; and (d) when standards are being developed, consideration should be given to compliance with the SPS Agreement and should involve the input of international standard setting bodies.

(2) Measures Directly Affecting Exports

(i) Documentation, export taxes, and restrictions

104. Exporters are not required to register, but must obtain a tax registration number from both the Customs and Excise Department and the Inland Revenue Department.

105. St. Vincent and the Grenadines requires up to seven documents for exports: an export bill; commercial invoice; certificate of origin (when required); an original airway bill or bill of lading; phytosanitary certificates (when required); health certificates (when required); and export permits (when required). Export declarations require verification of tariff numbers and customs values. Not all exports need to be inspected; most agricultural exports are inspected by the Plant Quarantine Department of the Ministry of Agriculture, and inspection is required whenever there are suspicious exports (e.g., drugs). Export inspections have increased since the institution of the VAT, in order to verify that goods have indeed been exported and hence are exempt from taxation.

106. St. Vincent and the Grenadines applies no taxes or levies on exports. Exports are exempt from internal taxes. Preshipment inspection of exports is not generally required, but the authorities note that it takes place for agricultural exports to Barbados. Since 2005, these inspections have been performed by officials in St. Vincent and the Grenadines.

107. Exports of birds under HS 0106.99 are restricted and, in general, CITES rules are followed. Under Import and Export (Control) Regulations No. 10 of 1992, a licence is required for exports of: live swine (HS 0103); live sheep and goats (HS 0104); and live, frozen, fresh or chilled, and prepared or preserved lobsters (HS Ex 0306.001, 0306.003, Ex 0306.009, and Ex 1605.30). In 2002, restrictions were lifted on exports of dried coconuts, potatoes, oranges, and plantains. A phytosanitary certificate from the Ministry of Agriculture must be obtained for the export of local produce or plants and plant materials.

108. The St. Vincent and the Grenadines Banana Growers Association (SVBGA) is a quasi-governmental organization that has a monopoly on the export of bananas; conducts exports to the United Kingdom through the Windward Islands Banana Development and Exporting Company (WIBDECO) (Chapter IV(1)). An export licence requires farmers to pay a per-box fee to the SVBGA Association; this amounts to an export tax. The fee is adjusted periodically, but tends to fluctuate around EC$2 per box (i.e., about one sixth or one seventh of the normal market price). A new licence is required for every shipment, regardless of the destination. The applicant must state the amount that is to be shipped, and the destination. In practice, export licences will not be issued for any shipments intended for the United Kingdom.

109. Under the Export (Sea Foods) Regulations of 21 November 1967, a licence is required for the export of more than 500 lb of fish, turtle, lobster, conch, whelk, sea eggs, and oysters. In order to export fresh fish, a shipper must obtain a health certificate from the Fisheries Division. Seasonal bans apply for exports of some marine species, including lobster, turtles, and conch.

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

110. National Investment Promotion Incorporated (NIPI) (Chapter II), acts as an export and investment promotion agency. In June, 2005, the agency created the Export Development Office as a new division. Its first order of business is to develop a National Export Strategy (NES). This is expected to be completed shortly. NIPI is receiving technical assistance from the International Trade Centre and the Commonwealth Secretariat, and has had a national consultant appointed to the process. At the first stakeholder symposium, held in November 2006, the public and private sectors endorsed the outline of the sectors on which the NES will focus. The five priority sectors identified by the NES are: tourism; information communication technology (e.g., improved connectivity); light manufacturing (e.g., furniture); agriculture/agri-processing (e.g., juices and sauces); and creative industries (e.g., music). Among the activities that may be called for in the NES are trade fairs, a website, and national branding. Two legislative proposals that are in the early stages of development would provide support for these activities: a Small Business Development Bill 2007, and an Information and Communication Technology Services Investment Incentives Bill, 2007. Another activity in NIPI is the establishment of an online export help desk. This site, which is expected to be online by 2008, would provide information and advice to national exporters of goods and services.

111. St. Vincent and the Grenadines has not made any notification to the WTO Committee on Agriculture with respect to export subsidies for agricultural products.

112. The Fiscal Incentives Act Cap 336 of the Laws of St. Vincent and the Grenadines (Revised Edition, 1990) makes provision for export subsidies. St. Vincent and the Grenadines has notified to the Committee on Subsidies and Countervailing Measures (SCM) The Fiscal Incentives Act No. 5 of 1982 amended by Act No. 20 of 1987 and Act No. 16 of 1991, as providing export subsidies.[33] In a decision of 27 October 2006 the SCM Committee agreed to continue until 31 December 2007 the extension and continuation granted in G/SCM/91 and Adds.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.[34] St. Vincent and the Grenadines and the other OECS countries, together with eight other WTO Members, made a proposal in early 2006 that would extend export subsidies until 2018.[35] 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.[36]

113. Benefits under the Fiscal Incentives Act also include import duty and GCT exemptions for imports of machinery, equipment, spare parts, building materials, and raw and packaging materials to be used in eligible enterprises. The subsidies granted under the Fiscal Incentive Act in 2003, 2004, and 2005 were EC$13,061,989, EC$12,844,269 and EC$8,274,908, respectively.[37] Total exports by firms benefiting from fiscal incentives were EC$32,999,345 in 2003; EC$35,469,211 in 2004; and EC$37,883,337 in 2005, representing some 32%, 35%, and 36% of total exports, respectively. Between 2001 and 2006, incentives under the Fiscal Incentives Act were granted to 23 manufacturing enterprises, new and expanded, in office furniture and general household furniture, clothing and textiles, paint and trowel plaster, concrete roof, wall and floor tiles, balusters, polyethylene, water tanks and other plastic products, aluminum, PVC, and glass products, aggregates and boulders, and a range of agri-processing products.[38]

114. The Act provides for income tax relief in the form of tax credits to enterprises once their tax holiday has expired. This relief is contingent on exports and is granted on profits accruing from exports of the approved products (products granted benefits under the Act). Relief is provided for non-traditional exports to all countries; however, for exports to Guyana, Jamaica, and Trinidad and Tobago, relief is only for five years immediately following expiry of the tax-holiday period. Relief is granted if export profits amount to 10% or more of the enterprise's total profits. The percentage of relief depends on the share of export profits in total profits. For a share between 10% and less than 21%, the maximum tax relief is 25%; between 21% and less than 41%, relief is 35%; 41% to less than 61%, relief is 45%; and for a share of more than 61%, the maximum percentage of tax relief is 50%.[39] Allowances may only be made once for any specific approved product.

115. Manufacturing enterprises not benefiting from fiscal concessions under Fiscal Incentives Act No. 5 of 1982 are taxed at special corporate rates on their export production (section (3)(i)).

116. Exporters have access to the export financing guarantee schemes and insurance facilities provided by the ECCB through the Export Credit Guarantee Scheme, covering political and commercial risks. The authorities noted in the context of this Review that foreign-controlled companies are generally excluded from participation in the guarantee scheme, but that exceptions are made for enterprises that are substantial foreign exchange earners, or large employers. Exporters may also benefit from support from the OECS Export Development Unit (EDU).

117. The Export Free Zones Act No. 15 of 1999, aimed at promoting the development of free zones, grants the Port Authority responsibility for the approval and administration of free zones. Enterprises producing goods or services may operate in a free zone. Incentives include: exemption from import and export licensing requirements; total income tax relief on the profits of manufacturing operations; total income tax relief on international trading activities; and exemption from payment of customs duties. Benefits are conditional on the export of all production. Enterprises operating in the free zone may not borrow from banks located in the customs territory of St. Vincent and the Grenadines. There are currently no free zones in operation in St. Vincent and the Grenadines. A part of the Diamond Estate on the island of St. Vincent is designated as a free zone, but does not operate on this basis. The authorities indicate that one application was made by a group of Asian investors for the establishment of a free zone in St. Vincent and the Grenadines, but during inter-agency discussions of this application in 2004-05 concerns were raised regarding the applicability of national law within the proposed zone. The matter remains under consideration.

(3) Measures Affecting Production and Trade

(i) Legal framework for business and taxation

118. Companies must be incorporated under Companies Act No. 8 of 1994 and the Companies Regulation of 1996, with the exception of sole proprietorship and partnerships of less than 20 members carrying the surnames of all partners, which do not require any legal formalities for registration. The Companies Act provides for the establishment of three types of company: companies limited by guarantee; companies limited by share capital and unlimited companies; and public and private companies. In addition, the law distinguishes between domestic, external, and non-profit companies. There are differences in the type and degree of information that domestic and external companies are required to provide. In the view of the authorities, while external companies were required to file different forms, the level of information required of them was not disproportionately higher vis-a-vis domestic companies.

119. Corporate income tax is imposed at a flat rate of 37.5% on profits, down from 40% prior to 2007. Manufacturing enterprises registered under the Companies Act are subject to lower rates; these companies are also required to submit annual financial statements to the Comptroller of Inland Revenue in order to maintain their status under this programme. These rates depend on the destination for the exports, such that profits are taxable at 30% when the destination is the local market or other OECS countries, 25% when the destination is non-OECS CARICOM countries, and 15% when the destination is outside of CARICOM. These provisions came into effect in 2002. A withholding tax is charged on payments to non-residents: the rates are 10% for rent, 15% for inter-company dividends, and 20% for other payments. Property tax is levied at 2.5% of the annual rental value for hotels and guest houses. Capital gains are tax free.

120. St. Vincent and the Grenadines has an array of legislation dealing with offshore firms, including the St. Vincent and the Grenadines Financial Services Authority Act No. 28 of 2003; the Registered Agent and Trustee Licensing Act No. 15 of 1996 (as amended by Act No. 102 2004); the International Trusts Act No. 20 of 1996 (as amended by Act No. 39 of 1996 and Act No. 27 of 2002); the International Banks Act No. 40 of 2004; the International Business Companies Act No. 18 of 1996 (as amended by Act No. 44 of 2002 and SRO 35 of 2004); the International Insurance Amendment and Consolidation Act No. 13 of 1998; and the Mutual Funds Act No. 6 of 1997 (as amended by Act No. 12 of 1998 and Act No. 23 of 2005.

121. The OECD identified 41 countries and other jurisdictions as "tax havens" in 2000. St. Vincent and the Grenadines signed a "Commitment Letter" with the OECD dated 26 February 2002 on transparency and the exchange of information, and was removed from the "uncooperative" list. In its letter to the OECD, St. Vincent and the Grenadines committed to transparency measures, and to share information in criminal tax matters by January 2004, and in civil tax matters by January 2006. In this respect, Exchange of Information Act No. 29 of 2002 provides for assisting overseas regulatory authorities to obtain information from within St. Vincent and the Grenadines. Upon the request of a foreign regulatory authority, and if certain conditions are met, any one of nine national regulatory authorities may seek information from persons in St. Vincent and the Grenadines, and disclose that information to the foreign regulatory authority.

(ii) Incentives and assistance

122. Incentives exist in the form of tax holidays, import duty exemptions, repatriation of profits, and withholding tax exemptions. Incentives are granted under Fiscal Incentives Act No. 5 of 1982, and under Hotels Aid Act (Cap 339 and 340 of the Laws of St. Vincent and the Grenadines, Revised Edition, 1990), (see Chapter IV). Export incentives are discussed in section (2)(ii) above. The incentives schemes are managed by the Ministry of Telecommunications, Science, Technology, and Industry. Applications for incentive benefits are submitted to the Ministry, which decides on the level and type of concessions to be granted.

123. St. Vincent Marketing Corporation provides marketing support to farmers, who also receive support services from the Ministry of Agriculture. They have traditionally been exempt from income tax, and are also granted 75% import-duty relief on pick-up trucks. The National Investment Promotions Inc. Corporation provides investment promotion services.

124. Enterprises of St. Vincent and the Grenadines may receive concessionary credits funded or guaranteed by the Caribbean Development Bank (CDB). Loans from ordinary capital resources face an annual rate of 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 St. Vincent and the Grenadines at an annual interest rate of 2.5%, with a repayment period of 30 years, including a grace period of 10 years.[40]

(iii) Competition policy and regulatory issues

(a) Competition policy

125. Fair Competition Act No. 23 of 1999 is the main competition policy legislation. The Act is aimed "at ensuring fair competition in the marketing of goods and services in St. Vincent and the Grenadines". The Fair Trading Commission called for in this Act has had not yet been established. In place of this national measure, the authorities intend to adopt the CARICOM model competition law, and delegate authority for competition policy to a subregional body acting on behalf of all OECS countries. Among the issues to be resolved is whether national commissions are to be created, and precisely what relationship these institutions would have with the subregional body. The authorities indicate that the Attorney General’s office is in the process of reviewing that model. The intention is to enact the legislation before end 2007, concurrent with the creation of the subregional body.

126. The Fair Competition Act regulates uncompetitive practices, including agreements lessening competition, agreements containing exclusionary clauses, abuse of dominant position, and collective agreements by suppliers and dealers. The exceptions are state monopolies, which, the authorities note, are allowed by CARICOM legislation under Protocol II of the Revision of the Treaty of Chaguaramas. An example of this is the monopoly held by the Agricultural Input Warehouse in the importation of bulk sugar.

127. Abuse of dominant position is assumed if, among other things, an enterprise restricts entry to a market; deters competitive conduct; imposes unfair purchase or selling prices; limits production to the prejudice of consumers; or makes the conclusion of contracts dependent on supplementary obligations. Collective agreements by suppliers or dealers that restrict supply or orders are prohibited. The Act declares void any conditions that seek to impose minimum resale prices agreed between two or more suppliers. The Act does not apply to provisions relating to the use, licence, or assignment of rights by virtue of a patent, trade mark, or copyright.

128. Legal action must be initiated within three years of when the cause for action arose. The law provides that if, as a result of an investigation, the Fair Trading Commission (not yet created) established by the 1999 Act, finds violation of any provision of the Act, it may be bring the case to Court to request civil remedies. Civil liabilities are determined by the Court taking into account the damages caused. The Commission's rulings and decisions may be appealed in Court. There are no penal remedies for uncompetitive practices that violate the provisions of the Act.

129. The Distribution of Goods Act Cap 117 of the Laws of St. Vincent and the Grenadines, Revised Edition 1990 deals with some aspects of consumer protection, but is not comprehensive and, according to the authorities, has few enforcement provisions. A new law, currently under consideration, would replace the consumer-protection provisions of this Act. The new legislation is expected to be presented to Parliament in the third quarter of 2007.

(b) Price controls

130. Responsibility for enforcing price controls is with the Ministry of Telecommunications, Science, Technology, and Industry. There are about 100 items under price control, covering food products (e.g., milk, flour, rice), pharmaceuticals, stationery and hardware products, petrol, and motor vehicles. Prices are in general controlled by setting a fixed mark-up for wholesalers and/or retailers. Products included in the First Schedule of the Supplies Control Act are subject to maximum mark-ups at both the wholesale and retail levels (e.g., rice and flour). The mark-up ranges from 5% to 15% for wholesalers; and 10% to 20% for retailers, with some exceptions. Products included in the Second Schedule are subject to a maximum mark-up at the retail level only, ranging from 15% to 100%. Motor vehicles are subject to a maximum retail mark-up of 33%. Wholesale mark-ups are calculated on the landed cost, while those at the retail level are calculated on the wholesale price. LPG was added to the price-control list in 2005.

131. According to the authorities, price controls are not enforced for all the products legally subject to control. In some cases the products in question no longer exist (e.g., certain types of juices and biscuits), while in other cases the items are not considered important components in the consumer basket. The main products still subject to control are motor vehicles and parts, fuel, milk, flour, sugar, and other essentials. The authorities note that the Ministry is presently undertaking a study with the aim of rationalizing the number of items on the price control list. It is expected that a number of products that are no longer considered essential would be removed. The items that are strictly monitored such as petroleum products, basic food items, prescription drugs and motor vehicles and vehicular parts are expected to remain.

132. St. Vincent and the Grenadines operates a price stability system for petrol, diesel, and kerosene. For each of these products, a fixed price is set periodically. Whenever the global market price drops, the retailer must return the difference between the fixed and the market prices to the Government. Conversely, when the global market price rises above the fixed price, the Government is obliged to make up the difference to the retailer between the fixed price and actual price. When global oil prices rose substantially during 2005-06, this policy placed a strain on the Government’s finances. The experience led the Government to adjust the fixed price more frequently. Whereas in 2000-03 price adjustments were rare and relatively small, three adjustments were made in 2006 alone.

133. The Agricultural Input Warehouse is the sole importer of sugar in bulk (see below). The price of refined sugar is determined by tender and influenced by the warehouse’s purchasing decisions. The agency sells sugar to intermediaries, who then market it to consumers. The wholesale and retail prices of sugar are controlled; the price is adjusted periodically.

(c) State-owned enterprises and privatization

134. St. Vincent and the Grenadines has not notified to the WTO the existence of any state-trading enterprise, as defined by Article XVII of the General Agreement on Tariffs and Trade of 1994.

135. Two new institutions were established during the review period replacing the St. Vincent and the Grenadines Marketing Corporation. National Properties Limited (NPL), was established in 2003 as an independent, statutory body. In addition to owning government real estate, NPL also has two divisions that engage in the marketing of goods. The Produce Division of NPL is responsible for the marketing (domestic sales) and export of fresh produce, but does not have a monopoly over either activity. It trades mainly in root crops such as dasheens, potatoes, and eddoes, as well as plantains. The unit operates on a for-profit basis; its main objective is to obtain the best price for producers. About 40% of the produce handled by NPL is sold domestically. NPL accounts for only a small share of domestic produce sales; but it accounts for more than half of export sales. The NPL offers some export market intelligence to exporters of these commodities, such as prices and specifications. The Produce and Commodity Act of 2006 provides the legal framework for a government undertaking to have the powers to (a) buy and sell goods; (b) fix and determine grading of produce; (c) export produce; (d) establish and operate depots agencies for the purchase, delivery and sale of produce; and (e) establish and operate facilities for preparing and processing any produce.

136. The Supermarket Division of the NPL sells both domestically produced and imported produce. The supermarket through which these goods are sold is National Properties Food City, with one outlet located in Kingstown. It trades in a wide range of commodities, including liquor, fruit and vegetables, dairy products, baked goods, non-prescription drugs, canned goods, toiletries, meats, processed foods, stationery, household items, and utensils. It does not have a monopoly over the import or sale of any of these goods. The authorities state that the underlying objective of the institution is to provide goods at affordable prices, and to encourage discipline on inflation. The retail price is based both upon the import price and the prices charged by competing supermarkets. The supermarket is profitable.

137. In 2006, the Agricultural Input Warehouse was granted some of the functions previously performed by the Marketing Corporation. It has a de facto monopoly on the import of dry fertilizers, and has a legal monopoly on the import of sugar. The agency also imports other inputs, such as tools, seeds, and pesticides, but does not have a monopoly for these items. (The monopoly on the import of milk, which was in the hands of the St. Vincent and the Grenadines Marketing Corporation, was abolished in 2005.) The agency sells the dry fertilizers and seeds to farmers; the agency seeks to reduce the volatility of prices in this area. It has no role in the export of agricultural products.

138. Diamond Dairies Ltd. formerly had a monopoly on the import of milk, but ceased operation in 2002. Milk may now be imported by private importers.

139. Other Government-owned services entities are the Central Water and Sewage Authority, the St. Vincent Electricity Services (VINLEC), and the St. Vincent Postal Services; each of these operates as a monopoly. The Government also owns the National Commercial Bank.

140. St. Vincent and the Grenadines has no overarching policy with respect to privatization.

(iv) Government procurement

141. St. Vincent and the Grenadines is not a party to the WTO Plurilateral Agreement on Government Procurement.

142. Government procurement accounts for a sizeable part of GDP: purchases of goods and services by the Central Government totalled EC$72.9 million in 2005, or 6.2% of GDP, while capital expenditure was EC$83.3 million (7% of GDP).[41]

143. Government procurement has its legal basis in the Purchases and Tenders Regulations, Statutory Rules and Orders No. 13 of 1967. For amounts over EC$20,000, procurement for governmental agencies is centralized through a Central Tenders Board, and tenders must be invited through notices in the Government Gazette. At least three suppliers must be short-listed and examined. Tenders are advertised generally only in St. Vincent and the Grenadines; in the case of projects funded by international financial institutions and other donors, however, tenders are advertised internationally. In all cases, however, tenders are open for international bidding. The authorities note that no preferences are granted to local suppliers or companies or to those from other CARICOM countries, except for some projects financed by the Caribbean Development Bank (depending on the ultimate source of the funding). Domestic legislation does not mandate nor prohibit the granting of preferences. The main focus of the Government is on efficiency, but local procurement is sometimes stressed in subcontracting or other small contracts.

144. Tenders are generally open, and decisions are based on the most advantageous offer; this often means the lowest price, but the credibility of the bidder is also taken into account. Lists of suppliers are kept, and potential suppliers should be part of a registry. Bidding is nevertheless open to providers that are not a part of the registry. Contracts funded by the Caribbean Development Bank have special procurement rules; they generally require an 8% margin of preference for local or regional suppliers.

(v) Intellectual property rights

145. St. Vincent and the Grenadines has not notified contact point(s) for intellectual property rights. No existing legislation with respect to the protection of intellectual property rights has been notified to the WTO.

146. While several new provisions of intellectual property law have been enacted during the review period, the authorities indicate that the complexity of the subject matter has resulted in delays in the drafting of regulations, and hence the entry into force, of these Acts. The authorities further indicate that, while they had obtained assistance from WIPO in intellectual property matters, specific technical assistance in the drafting of regulations is urgently needed.

147. St. Vincent and the Grenadines is a member of the World Intellectual Property Organization and party to a number of intellectual property conventions (Table III.7).

Table III.7

Membership in international instruments on intellectual property rights, 2007

Convention/Agreement	Accession
Convention Establishing the World Intellectual Property Organization (1970)	29 August 1995
Paris Convention for the Protection of Industrial Property, Stockholm Text (1967)	29 August 1995
Berne Convention for the Protection of Literary and Artistic Works, Paris Text (1971)	29 August 1995
Patent Cooperation Treaty (1970)	6 August 2002

Source: World Intellectual Property Organization, online information. Viewed at http://www.wipo.int.

148. The Commerce and Intellectual Property Office (CIPO), under the Ministry of Legal Affairs, is responsible for granting commercial rights to the owners of intellectual property. CIPO is a statutory agency established in December, 2003, under Act No. 43 of 2003; it became operational in March, 2004. The CIPO functions as regulator of trade names, unincorporated associations, and domestic and external companies. The CIPO administers: the Trade Marks Act, 2003; Trade Marks Regulations, 2004; Patents Act, Cap 110; Patents (Amendment) Rules, 1998; Registration of United Kingdom Patents Act, Cap 112; Registration of United Kingdom Patent (Amendment) Rules, No. 29 of 2001; Copyright Act, 2003; Copyright (Specified Countries) Order, 2005; and Geographical Indications Act, 2004. The agency will administer the Patents Act, 2004, the Layout-Designs of Integrated Circuits Act, 2005 and the Industrial Designs Act, 2005 on their entry into force.[42]

(a) Trade marks

149. Trade marks are protected under Trade Marks Act, No. 46 of 2003, which entered into force on 18 May 2004. Two types of legal protection are available for trade marks: a statutory right arising from registration of the mark, which entitles the owner to bring an action to stop infringement; and the common law right to bring an action for "passing off" against the unauthorized user of a mark whether registered or not. Only registered marks can be licensed. In order to qualify for protection, a trade mark must: be capable of being graphically represented; be distinctive; not deceive or be scandalous; not be similar to a registered trade mark; and not contain a sign that is proscribed for use as a trade mark. A trade mark is protected for ten years from the date of filing, renewable for further periods of ten years.

150. Between 2001 and 2006, there were 639 trade mark registrations in St. Vincent and the Grenadines, and 37 patent registrations (Table III.8).

151. The Trade Marks Act affords non-exclusive protection to special types of trade marks, including collective trade marks and certification trade marks. Unlawful use or falsification of a trade mark is punishable by conviction and a fine up to a maximum of EC$250,000.

Table III.8

Trade marks and patents issued by St. Vincent and the Grenadines, 2001-06

	2001	2002	2003	2004	2005	2006	Total
Trade marks	125	151	101	79	160	23	639
Patents	5	8	10	6	7	1	37

Source: Information supplied by the authorities.

(b) Patents

152. The grant of patents is governed by the Patents Act, Chapter 110, and the Registration of United Kingdom Patents Act, Chapter 112, concerned with the local re-registration of United Kingdom and European grants only. Patents granted under this Act are issued on the basis of a prior grant from the United Kingdom Patent Office or the European Patent Office within three years of the date of local application. Apart from the Cap 112 re-registration system, an application for a patent may be made under Chapter 110 by an inventor-applicant, without any need for a prior grant.

153. Under the legislation in force (early 2007), the only legal requirement for patentability is novelty: nothing is specifically excluded from patent protection. Patent protection lasts for a maximum of 14 years under Cap 110 and for the period of the foreign grant in the case of re-registrations under Cap 112. Protection may lapse before the statutory period expires, if the patent owner does not pay the annual fees. The special characteristics of patent legislation that grants exclusive priority rights to patent applications filed in the United Kingdom prevents St. Vincent and the Grenadines from joining the Patent Cooperation Treaty, which provides priority rights to signatories on an MFN basis.

154. The patent legislation is expected to be repealed and replaced by the Patents Act of 2004, which was passed by Parliament in November 2004 but is not yet in force.[43] The new law does not include provisions for compulsory licensing, and parallel imports are not allowed.

(c) Industrial designs

155. Industrial designs are protected through the United Kingdom Designs Protection Act, Cap 116 of the Laws of St. Vincent and the Grenadines. In accordance with the Act, the owner of any design registered in the United Kingdom has the same privileges and rights as if it had been issued with an extension to St. Vincent and the Grenadines. The period of protection is not specified. The Industrial Designs Act, 2005, has been passed by Parliament but is not yet in force.

(d) Copyright

156. Copyright is regulated by Copyright Act, No. 21 of 2003, which entered into force on 30 November 2004. Registration of works is not required and there is no system of voluntary registration. To qualify for protection, a work must be original, must have passed the "idea stage," and have been fixed in some tangible form. To benefit from protection, a work must have been created by citizens or residents of St. Vincent and the Grenadines, or in the case of published works, the first publication must have taken place in St. Vincent and the Grenadines or in another country that has been specified in subsidiary legislation.

157. All performances taking place within the country are protected. The author of a protected work enjoys commercial rights and moral rights. Licensing of commercial rights is permitted. Protection for literary, dramatic, musical or artistic works of known authorship is the lifetime of author plus 50 years; works of unknown authorship are protected for 50 years from the end of the calendar year in which the work is made. Also granted 50 years protection are computer generated works, sound recordings and films, broadcasts and cable programmes, typographical arrangements of published editions, and performances.[44]

(e) Other intellectual property rights

158. St. Vincent and the Grenadines does not have legislation on the protection of plant varieties or on undisclosed information. Legislation to protect layout designs of integrated circuits has been passed but is not yet in force.

(f) Enforcement

159. St. Vincent and the Grenadines has not submitted the WTO checklist of issues on enforcement.

160. The 2003 Copyright Act strengthened the ability of the courts, the police and customs officials to enforce the rights of copyright owners. Its enforcement provisions include: allowing copyright owners to give notice to the Comptroller of Customs to restrict the importation of infringing copies of protected works; authorizing forcible entry and search of premises, and seizure of any infringing article; a fine of EC$1,500 on summary conviction for a first offence and of EC$1,500 or imprisonment for a maximum of 12 months in the cases of unauthorized use. For trade in counterfeit goods, the liability on summary conviction is a fine of EC$5,500, and in the case of recurrence, a fine determined by the Court or imprisonment for a maximum of two years. For trade of illicit recordings, the liability on summary conviction is EC$2,500 or a term of imprisonment not exceeding 12 months; the liability on conviction is a fine of up to EC$50,000 or imprisonment for a maximum term of 5 years or both.

161. The enforcement provisions of the Trade Marks Act allow the owner of a locally registered trade mark to apply to the High Court for an injunction to stop infringement and/or an award of compensation. The law provides for the seizure and (where necessary) disposal of illegitimate infringing goods, and fines up to a maximum of EC$250,000. While there are no enforcement measures under the existing patent legislation, the new patents law provides for fines and imprisonment. The enforcement measures under the new industrial designs law contemplate fines of up to EC$5,000 and imprisonment of up to four years.

IV. trade policies by sector

(1) Agriculture

162. During the period under review, agriculture, and banana production in particular, has generally declined in terms of overall contribution to GDP. In 2005, agriculture contributed 8.2% to GDP, down from 9.6% in 2001 (Chapter I). The overall decline of the sector is related to declines in preferences, and vulnerability to external shocks and natural disasters. Nevertheless, St. Vincent and the Grenadines continues to regard agricultural exports as important for earning foreign exchange, promoting employment, and poverty alleviation.[45] Although the sector is dominated by bananas, there is some production of a range of root crops, including yams, dasheens, eddoes, tannias and sweet potatoes, as well vegetables (sweet peppers, carrots, and tomatoes).

163. During the review period the performance of the agriculture sector has been uneven, with contractions in some years and expansion in others, although the general trend in the sector has been contraction. Output grew by 7.8% in 2002, but contracted by 2.2% in 2003, due to a drought and an estimated decline of 32.1% in banana production.[46] Due to the effects of a hurricane in the last quarter of 2004, output fell by a further 5.2% [47], and in 2005, output fell by a further 6%, with banana production reaching its lowest recorded output of 17,373 tonnes.[48] Value added in agriculture rose by 2.3% in 2006, largely due to increases in output for non-banana crops.[49] Performance in 2006 was also aided by slightly better prices resulting from the purchase by United Kingdom supermarkets of St. Vincent and the Grenadines and other Windward islands bananas under "fair trade" arrangements.[50] In general diversification into non-banana crops has expanded during the review period, but increases in output have been insufficient to offset losses in banana production.

164. In contrast, value added in livestock, forestry and fishing has generally tended to increase during the review period, although these increases have been modest, at 1-2% annually. The exception has been the fishing sector, which grew by 26% in 2003, due to increased fish landings as a result of changes in purchasing arrangements with neighbouring islands.

165. The average tariff for agricultural products in 2006 was 18% and the average bound rate 111.6% (Chapter III). St. Vincent and the Grenadines bound all tariff lines in the Uruguay Round; the majority of agricultural products were bound at 100%, although a few products were bound at 250%. Overall, agricultural products accounted for 77.8% of exports between 2000-05. The primary market for exports has been the United Kingdom, which receives an average of 33% of St. Vincent and the Grenadines' exports. St. Vincent and the Grenadines uses import licenses for some agricultural products, including wheat flour and margarine (Table III.6).

166. The Banana Growers Association (BGA), a quasi-governmental organization, has the monopoly on the export of bananas, and conducts the exports to the United Kingdom through Windward Islands Banana Development and Exporting Company (WIBDECO) (Chapter IV(1)). The monopoly was established by Banana (Protection and Quality Control) Act No. 33 of 1984 as amended by S.R.O. No. 31 of 1990. Independent banana exporters may not export directly to the United Kingdom, but may apply to the BGA for licences to export to other markets. Licensed exports into Trinidad and Tobago, Barbados, and the United States have increased in recent years. Export licence require farmers to pay a per-box fee to the BGA, which amounts to an export tax. The level of the tax is adjusted periodically, but tends to fluctuate around EC$2 per box (i.e., about one sixth or one seventh of the market price). A new licence is required for every shipment, regardless of the destination.

167. The restructuring of the banana industry has taken place amid an erosion of trade preferences for banana exports. In a recent report, the IMF noted that St. Vincent and the Grenadines is among the world’s most preference-dependent economies, being heavily reliant on annual income transfers derived from quota rents (income transfers to preferred exporters from tariff revenue forgone in preference-granting markets) and higher export revenues from sales into protected overseas markets.[51] The IMF notes that the changes in the EC banana regime introduced in 2006 represent a challenge for St. Vincent and the Grenadines and other Windward Islands banana producers, since unit costs are high, a result of small-scale production, relatively high transportation costs, and high labour costs not matched by high productivity.[52]

168. Government measures in favour of the agriculture sector include: subsidies for fertilizers and other key inputs; granting farmers an exemption from income tax; and paying off the debt of banana producers' associations. Farmers also receive support services from the Ministry of Agriculture. They have traditionally been exempt from income tax, and are granted 75% import duty relief on pick-up trucks. National Investment Promotions Inc., provides investment promotion services. All materials, equipment, stores, vehicles, and other goods acquired by the BGA are exempt from customs duty and other duties and taxes. Also, St. Vincent and the Grenadines's banana producers have received assistance from the EC under the Special Framework of Assistance (SFA) (some €33 million between 1999 and 2004), and previously under the STABEX export revenue stabilization scheme.

169. A duty-free concession can be granted on items used in the fishing industry (fishing nets, marine engines, and other equipment). Applicants must request the concession from the Chief Fisheries Officer, providing proof of being a fisher or stakeholder in the fishing industry. Processing of these requests requires six to eight weeks.

170. During the period under review, the monopoly of the St. Vincent and the Grenadines Marketing Corporation on the commercialization of a number of agricultural products was terminated. To replace it, two new institutions were established: the National Properties Limited (NPL), a statutory body created in 2003, which engages in the marketing of goods, and the Agricultural Input Warehouse. The Produce Division of NPL is responsible for the marketing (domestic sales) and export of agricultural produce, mainly root crops such as dasheens, potatoes, and eddoes, as well as plantains, but does not have a monopoly over either activity, nor does it provide subsidies, since it operates on a profit basis. Some 60% of the produce handled by NPL is exported and the rest is sold domestically. The NPL also offers export market intelligence to exporters of these commodities. The Supermarket Division sells a wide range of domestically produced and imported produce, but does not have a monopoly over the importation or sale of any of these goods, and operates on a profit basis. The Agricultural Input Warehouse has a de facto monopoly on the importation of dry fertilizers, and has a legal monopoly for the import of sugar. The price of refined sugar is determined by tender and influenced by the Warehouse’s purchasing decisions. The agency sells the dry fertilizers and seeds to farmers, at pre-determined prices that are meant to reduce volatility and according to the authorities, may be at times below the cost of acquisition. The agency has no role in the export of agricultural products. Diamond Dairies Ltd. formerly had a monopoly on the importation of milk, but ceased operation in 2002: milk may now be imported by private importers.

(2) Manufacturing

171. St. Vincent and the Grenadines' manufacturing sector is relatively small and concentrated around a small number of products. During the period under review, the main products have been steel rods, PVC pipes, galvanized sheets, some feeds, flour, and beer.

172. As with agriculture, the sector's contribution to GDP has declined over the past few years. In 2005, manufacturing accounted for 5.7% of GDP, down from 6.3% in 2002.[53] Value added in the sector declined by 6.1% in 2002 but rebounded by 0.7% in 2003. The sector continued to grow steadily from 2004 to 2006; beer demonstrated the most consistent growth, due to increases in domestic demand and increased marketing.[54] Outputs of flour and feeds also grew modestly but consistently during this period.

173. The average tariff on manufactured goods is 10.1% while the average bound tariff is 62.1% (Table III.2). Between 2000 and 2005, manufactured goods accounted for an average of 22.2% of exports (Table AI.1).

(3) Services

(i) Main features

174. St. Vincent and the Grenadines made sector-specific commitments under the General Agreement on Trade in Services (GATS) in 5 of the 12 service areas, or around 8 of the 160 subsectors: financial services (reinsurance); tourism and travel related services (hotel and resort development); transport services (maritime transport services, and services auxiliary to all modes of transport); health-related and social services (hospital services); and recreational, cultural and sporting services (entertainment and sporting services). No market access or national treatment limitations have been scheduled on cross-border supply and consumption abroad in these sectors. In the case of commercial presence, various domestic laws have been scheduled as limitations across committed sectors.

175. Under St. Vincent and the Grenadines's horizontal commitments on commercial presence and movement of natural persons: foreign investors must comply with numerous Acts in order to establish their business locally, such as withholding tax provisions and property ownership regulations; and employment of foreign natural persons is normally limited to people with managerial and technical skills that are in short supply or not available in the country. St. Vincent and the Grenadines has not listed any Article II (MFN) exemptions. It did not participate in the extended negotiations on telecommunications or on financial services.

(ii) Telecommunications

176. St. Vincent and the Grenadines did not make any specific commitments on telecommunications under the GATS.

177. There are no limits on foreign ownership of telecommunications companies, nor are there citizenship requirements for directors. The VAT, introduced in 2007, replaced telecom-specific taxes including a 10% tax on international calls, and a 5% tax on domestic calls made from cellular telephones (introduced in 2005). Telecom providers are required to pay a 3% licence fee and a 1% fee to a universal service fund on their annual gross revenues.[55] The Information and Communication Technology Services Investment Incentives Bill, which is currently before Parliament, would allow approved companies duty-free imports of material and equipment for the provision of information and communication technology services. Such companies are currently entitled to a certain number of work permits for foreign nationals.

178. Telecommunications in St. Vincent and the Grenadines is the responsibility of the Minister of Telecommunications, Science, Technology and Industry. Regulation of the sector takes place at the national level, through the National Telecommunications Regulatory Commission of St. Vincent and the Grenadines. At the regional level, the Eastern Caribbean Telecommunications Authority (ECTEL) plays an important advisory and policy-coordinating role (Overview Report).[56]

179. The main legislation governing the sector is Telecommunications Act No. 1 of 2001[57], which deregulated the sector and opened it to competition. This Act contains substantially the same provisions as the telecommunications laws of the other OECS ECTEL-member states. It, inter alia, specifies criteria for the granting of a licence; universal services conditions that may be applied; and procedures for concluding interconnection agreements (see Overview Report). Telecommunications (Tariff) Regulations, No. 23 of 2004, stipulate that where there is effective competition in the telecom market, licensees may set tariffs. If there is insufficient competition in a particular service, the NTRC may designate it as a regulated service; within 30 days the telecommunications provider must file an applicable tariff with the Commission for approval. The tariffs for regulated services in St. Vincent and the Grenadines are determined in accordance with the Price Cap Plan agreed between Cable & Wireless and the ECTEL member states.

180. Key changes over the period since liberalization have been: significant increases in telecommunications revenues; a major increase in mobile penetration (from 7% in 2002 to 68% in 2006); as well as a corresponding increase in local traffic originating from mobile phones. Internet penetration has increased slightly, but remains low at 6% (Table IV.1).

181. Eight individual licences have been issued (May 2007), three for fixed public telecommunications, three for public mobile telecommunications and two for Internet networks and services.[58] A number of class licences have also been granted, although not all of the service suppliers have commenced operations.

Table IV.1

Telecommunications statistics, 2002-06 (March)

	2002	2003	2004	2005	2006
Telecommunications revenues (EC$ million)	87	95	137	135	143
Fixed-line penetration (%)	24	25	22	23	23
Mobile penetration (%)	7	34	64	62	68
Internet penetration (%)	3	3	4	6	6
Investment (EC$ million)	15	18	34	20	20
Employment	160	147	137	156	159
Local traffic from a fixed line (million minutes)	..	101	113	100	..
Local traffic from a mobile phone (million minutes)	..	90	118	126	..
International outgoing traffic (fixed and mobile) (million minutes)	2	5	9	7	22

.. Not available.

Source: Information provided by the authorities and ECTEL online information. Viewed at: http://www. ECTEL.int.

182. Three licences have been issued for fixed-line telephone services (to Cable and Wireless (West Indies) Ltd., Kelcom International, and Digicel Ltd.), but the incumbent, Cable and Wireless, is the sole provider.[59] According to the authorities, all local fixed-line to fixed-line tariffs (day, evening, and weekend tariffs) were increased by the incumbent following liberalization, and subsequently reduced under a Price Cap Plan (PCP) implemented in December 2004: peak tariffs went from EC$0.08 per minute to EC$0.09 before the PCP, then down to EC$0.07; off-peak (evening) tariffs went from EC$0.07 to EC$0.08 then to EC$0.05 per minute for the first year of the PCP then EC$0.04 thereafter. Off-peak (weekend) tariffs went from EC$0.05 to EC$0.06 then to EC$0.05 per minute for the first year of the PCP and EC$0.04 thereafter. The PCP does not apply to international fixed-line calls. Fixed-line tariffs to the United States have fallen by 40% to EC$0.99 per minute; call tariffs to other ECTEL members stayed at EC$0.50 and calls to non-member Caribbean islands were in the range of EC$0.66 to EC$0.99.[60]

183. Fixed-to-mobile rates were also covered by the PCP. Following liberalization of the market in 2001, and prior to implementation of the PCP, the incumbent, Cable and Wireless, under an interim agreement signed with OECS member countries in 2002, had increased peak (day) tariffs from EC$0.58 to EC$0.81 per minute. Under the PCP, the fixed-to-mobile peak tariff was reduced to EC$0.76 in the first year then to EC$0.71 thereafter. Following liberalization off-peak (evening tariffs) were raised from EC$0.57 to EC$0.80 and off-peak (weekend) tariffs from EC$0.55 to EC$0.78. Under the PCP, both rates fell to EC$0.70 in the first year, and EC$0.69 thereafter.

184. The residential fixed-line access charge has increased from EC$17.00 per month in 2002 to EC$20.40 in 2005. This includes 80 free minutes of off-peak fixed-to-fixed calls.

185. There are no regulations restricting call-back. It is illegal to pass traffic using an unlicenced provider.

186. Two mobile service providers are in operation in St. Vincent and the Grenadines (Cable and Wireless, and Digicel); there was some consolidation in the market with Digicel's takeover of Wireless Ventures (owned by Cingular Wireless) in 2005. In spite of increased competition, tariffs for mobile-to-mobile and mobile-to-fixed calls have remained relatively stable since liberalization.[61] Mobile-to-mobile tariffs ranged from EC$0.70 per minute for calls on the same network to EC$0.85 for calls between networks. Mobile-to-fixed call tariffs range from EC$0.80 to EC$0.85 per minute. The authorities note that the major growth of the mobile phone market, in the absence of lower prices, is due in part to the introduction of the prepaid system (96% of mobile subscribers have pre-paid mobile phones), and the affordability of handsets (subsidized by the provider). Digicel's customer base is slightly higher than that of the incumbent.

187. Cable and Wireless dominates the provision of Internet services in St. Vincent and the Grenadines. There has been a marked shift from dial-up towards high-speed Internet access; around 75% of Internet subscribers had broadband access in 2006, up from 13% in 2002. This reflects the greater affordability of high-speed access; the rates declined by up to 50% in March 2004.[62]

(iii) Financial services

188. According to the authorities, there has been agreement in principle at the governmental level to create a single regulatory unit for regulate all non-onshore bank financial services. This would involve merging the International Financial Services Authority (IFSA) (which has regulatory responsibility for the offshore sector) with the Regulatory Unit of the Ministry of Finance (which has regulatory responsibility for domestic financial institutions except for credit unions and banks). This single unit would also have responsibility for credit unions.

189. The Financial Intelligence Unit (FIU) is an autonomous government institution established in 2002, under Financial Intelligence Unit Act No. 38 of 2001 (amended by Act No. 24 of 2002). The Proceeds of Crime and Money Laundering Prevention Act No. 39 of 2001 (as amended by Act No. 25 of 2002) provides for the reporting of suspicious activity to the FIU, which collects information on financial transactions, and investigates cases reported. The FIU brings case of illegal activity to the attention of the Director of Public Prosecution, but conducts the prosecution of these cases itself under the Director's authority. Between 2001 and 2006, at least ten cases led to criminal referrals, resulting in five convictions. Money laundering offences have resulted in imprisonments of up to three years, as well as fines, forfeitures, and confiscations.

190. St. Vincent and the Grenadines' GATS commitments are limited to reinsurance services. Commercial presence is subject to the Insurance and Insurance Premium Acts, the Commercial Code, and the Exchange Control Act (listed as limitations on market access), and a withholding tax (listed as a limitation on national treatment). As specified in its horizontal commitments, only corporate entities are allowed to conduct insurance business in St. Vincent, and all entities must be registered by the Registrar of Insurance.[63]

(a) Onshore financial services

Banking

191. Domestic Banks in St. Vincent and the Grenadines are regulated by the ECCB. ECCB member countries have harmonized the substance of their national banking legislation, based upon a template Uniform Banking Act (see Overview Report). The main legislation governing the banking industry is Banking Act No. 33 of 2006, which upgraded previous 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 by such institutions.

192. Banks must be licensed by the Minister of Finance, and fulfil the conditions required for licensing (Overview Report) which include having a place of business in St. Vincent and the Grenadines (both local and foreign). Citizens and companies of St. Vincent and the Grenadines are not restricted from borrowing or placing deposits with banks located abroad, and exchange controls are no longer maintained on capital and non-trade current transactions (Chapter I). There are no limitations on foreign investment in onshore banks in St. Vincent and the Grenadines. Foreign-owned banks licensed and incorporated in St. Vincent and the Grenadines are subject to the same requirements as locally owned and locally incorporated banks, and may provide the same services. Branches of foreign banks must submit additional information when applying for a licence, to prove that they are subject to effective supervision at home, and that the regulatory body in their home jurisdiction does not object to the application. There are no residency or citizenship requirements applied to bank managers or directors.

193. There are four commercial banks operating in St. Vincent and the Grenadines: two are branches of foreign banks (Bank of Nova Scotia and First Caribbean International Bank (Barbados) Ltd); one is wholly Government-owned and locally incorporated (National Commercial Bank (SVG) Ltd; and one is a locally incorporated foreign subsidiary (RBTT Bank Caribbean Ltd.). Lending and deposit rates are similar to those in other OECS countries (see Chapter I). In 2006, the weighted average spread between deposit and lending interest rates was 6.9 percentage points (2.8% deposit, 9.9% lending).[64] St. Vincent and the Grenadines does not have a development bank; the former St. Vincent and the Grenadines Development Bank was subsumed by the National Commercial Bank.

Insurance

194. As at January 2007, there were 24 registered insurance companies in St. Vincent and the Grenadines. Of these, 20 were registered to offer short-term insurance business (5 were locally owned and 15 foreign owned), and 9 to offer long-term insurance business (all foreign owned).

195. The main legislation governing insurance activities is Insurance Act No. 45 of 2003. Insurance companies must be registered with the Supervisor of Insurance within the Ministry of Finance and Economic Planning.

196. A statutory deposit, which varies according to the type of insurance provided, is payable by all insurance companies to the Supervisor of Insurance. The deposit is: EC$500,000 for companies providing long-term insurance; EC$200,000 or 30% of gross premiums, whichever is greater, for companies providing insurance business other than long-term and motor vehicle insurance[65]; and EC$500,000 or 30% of gross premium, whichever is greater, for companies providing motor vehicle insurance. Each insurance company must also establish an insurance fund equal to its liability and contingency reserve, less the amount held on deposit with the Supervisor. The fund is held in trust by a bank or financial institution approved by the Supervisor.

197. While the statutory deposit and insurance fund requirements are applied equally to foreign and domestic companies, the share capital necessary for registration differs. For long-term insurance business, local companies are required to have paid-up share capital of not less than EC$2 million, while the requirement for foreign companies is not less than EC$5 million, fully paid-up in cash; the amounts for general insurance business are: not less than EC$1 million for local companies, and not less than EC$2.5 million, fully paid-up in cash for foreign companies.

198. An annual licence fee of EC$5,000 is levied by the Government on local and foreign insurers. The fee for companies registered rises to EC$10,000 for both long-term and general insurance business. According to the authorities, there are no restrictions on the type of insurance business for which a foreign company can register.

199. In general, citizens and companies may not obtain insurance coverage from companies not registered under the Insurance Act. However, in special circumstances, the Supervisor may grant approval for insurance to be placed with non-registered insurers where he is satisfied that it is not possible to obtain similar protection at a comparable cost from a registered insurer.

(b) Offshore financial services

200. In early 2007, St. Vincent and the Grenadines had six offshore banks and 14 international insurance companies.[66]

201. The International Financial Services Sector in St. Vincent and the Grenadines is regulated by the St. Vincent and the Grenadines International Financial Services Authority (IFSA).[67]

202. In June 2000, St. Vincent and the Grenadines was identified as a non-cooperative country by the G7 Financial Action Task Force (FATF) (see Overview Report). According to the FATF, the shortcomings of St. Vincent and the Grenadines' offshore services regimes included: no anti-money-laundering regulations or guidelines, and thus no customer identification or record-keeping requirements; extremely limited resources devoted to supervision; rudimentary licensing and registration requirements for financial institutions; no system to require reporting of suspicious transactions; the Offshore Finance Authority was limited by law from providing international cooperation; and international judicial assistance was unduly limited to situations where proceedings had been commenced against a named defendant in a foreign jurisdiction.[68]

203. The legislative reform undertaken by St. Vincent and the Grenadines to strengthen the regulatory framework included the enactment of the Proceeds of Crime and Money Laundering (Prevention) Act. No. 39 of 2001 (as amended in 2002 and 2006), the Financial Intelligence Unit Act, No. 38 of 2001, and the Exchange of Information Act No. 29 of 2002. The staffing of the Supervision and Examination Department of IFSA has been strengthened. The ECCB provided technical support and acted in an advisory capacity in the supervision and licensing of offshore banks. St. Vincent and the Grenadines was removed from the list of non-cooperative regimes in 2002.

204. Since 2002, 38 offshore banks ceased operation in St. Vincent and the Grenadines. According to the authorities legislative changes and improved regulatory oversight resulted in a number of licenses being revoked for non-compliance with relevant legislation. In addition, some banks found the new standards too difficult to comply with and went into voluntary liquidation.

205. The principle legislation governing offshore banking is International Banks Act No. 40 of 2004. As required by this Act, companies must be incorporated either as an external company, under Companies Act No. 8 of 1994, or under International Business Companies Act, No. 18 of 1996 (as amended). Companies must have a minimum of two directors and at least one director must be a resident. International Banks are precluded from conducting banking business with residents of St. Vincent and the Grenadines, from investing in any asset that represents a claim on any resident, and from buying bonds or other securities issued by the State. International Banks must be licensed by the IFSA. There are two kinds of licence: Class A allows the international bank to undertake business generally; Class B allows the international bank to carry out business only with non-resident persons specifically named in an undertaking accompanying the licence application.

206. Foreign companies wishing to establish a branch in St. Vincent and the Grenadines must have the consent of their home country supervisor, and confirmation may be required that the company is subject to comprehensive supervision at home; these branches may engage only in offshore business. International Banks must have a physical presence in St. Vincent and the Grenadines, with a minimum of two employees, one of which must be a senior manager. International Banks must also have a resident director and a designated registered agent.

207. Minimum paid-up capital requirements for international banks incorporated in St. Vincent and the Grenadines vary according the class of licence: from US$500,000 (Class B) to US$1 million (Class A). Likewise, banks must deposit or invest either US$100,000 or US$500,000, depending on the class of licence. Branches of foreign banks are not subject to these minimum capital and deposit requirements, although they are also granted either a Class A or Class B licence. Offshore banks benefit from various tax and duty exemptions, for a minimum of 25 years from the date the licence is granted.

208. Legislation governing offshore insurance includes International Insurance (Amendment and Consolidation) Act No. 13 of 1998, and the International Insurance Regulations Act No. 11 of 1999 (as amended by Act No. 11 of 2003 and Act No. 37 of 2004).[69] Under the Act, supervision and licensing of offshore insurance business in St. Vincent and the Grenadines is carried out by the IFSA. Most offshore insurance companies provide captive insurance. Different classes of insurance depend on the types of insurance business being carried out, and licensing requirements vary accordingly. Minimum capital (net worth) requirements vary from US$10,000 to US$200,000 depending on the class of insurance and minimum solvency requirements, stipulated in the regulations, are set at US$150,000, 20% of the insurer's net retained annual premiums for the year, or US$250,000. IFSA approval is required in order to carry out more than one class of insurance. Licences are granted for up to one year, and are renewable. A decision to refuse a licence is final, it cannot be appealed and no reason for refusal need be given.

209. There are no nationality or residency requirements for managers or directors of international insurance companies. However, for certain classes of licence, international insurance companies must appoint an international insurance manager, who must have a certificate of authority under the Act. International Insurance Managers are not required to be citizens of or resident in St. Vincent and the Grenadines.

210. International insurance companies are precluded from providing insurance for: residents or non-offshore companies; property in transit to or from St. Vincent and the Grenadines; and vehicles, vessels, aircraft or other moveable property based in the country.

211. Under the Act, international insurance companies are exempt from all taxes and stamp duty for a minimum of 25 years from the date the certificate of tax exemption is issued. This exemption is renewable indefinitely.

(iv) Air transport

212. St. Vincent and the Grenadines has not made any GATS commitments on air transport services.[70]

213. Both in volume and value terms, cargo transport by air is much less significant than cargo transport by sea (see below). Over the review period, the value of goods transported by air fluctuated between EC$82 million to EC$43 million; and the net weight of cargo transported ranged from 572,000 kg to nearly 8.5 million kg (TableIV.2).

Table IV.2

Cargo transported by air, 2001-06

(Volume and value)

	c.i.f. value (EC$)	Net weight (kg)
2006	49,714,281	572,095
2005	82,159,919	8,461,926
2004	68,834,869	1,460,045
2003	70,604,935	867,299
2002	44,261,662	1,388,407
2001	43,420,490	1,822,201

Source: Information provided by the Government of St. Vincent and the Grenadines.

214. There were nearly 161,000 passenger arrivals by air (visitors and residents) to St. Vincent and the Grenadines in 2006. St. Vincent and the Grenadines has five public airports; the largest is Joshua Airport in Kingstown. Four of these airports are owned and operated by the Government while the other, on Mustique, is privately owned and operated. Flights to major international destinations are via connecting flights with carriers in other Caribbean islands.[71] Discussions are under way on constructing an international airport in St. Vincent, and upgrading the E.T. Joshua Airport as an interim measure. The Government views the construction of an international airport as the key to realizing the country's growth and development, particularly with respect to supporting the tourism industry, which will be the country's main foreign exchange earner for the foreseeable future, as well as in attracting foreign investment.[72]

215. The government of St. Vincent and the Grenadines has a partial share in LIAT with the governments of Antigua and Barbuda, Barbados, and St. Lucia. St. Vincent and the Grenadines Air and Mustique Airways are both privately owned and incorporated in St. Vincent and the Grenadines. No information was available regarding any foreign investment restrictions on ownership of domestically incorporated carriers. According to the authorities, cabotage is restricted to St. Vincent and the Grenadines carriers.

216. The Civil Aviation Act No.22 (2004) is the main legislation governing air transport in St. Vincent and the Grenadines. The Prime Minister is responsible for the development and supervision of all matters connected with civil aviation, and the Ministry of National Security, Air and Sea Ports Development is under the Prime Minister's Office. The Air Transport Licensing Board is the regulatory authority for civil aviation. At the regional level, regulatory oversight for safety and security matters is provided by the Eastern Caribbean Civil Aviation Authority (ECCAA).

217. The Airports Development Department, within the Ministry of National Security, Air and Sea Ports Development, is responsible for the regulation and management of public airports, as well as the provision of air traffic and meteorological services. Information was not available on whether private companies (local or foreign) could provide airport management or cargo and auxiliary services, and whether any such contracts were in place.

218. There are, in principle no nationality requirements for granting an air transport licence; however, the granting of a licence is at the discretion of the Ministry in charge of civil aviation, and a number of factors are taken into account before licences are granted. These are generally: the existence of the service proposed; the conditions in which the applicant intends to operate (number of flights, type of aircraft); and financial considerations.

219. St. Vincent and the Grenadines is a contracting state of ICAO. No information was available regarding any bilateral air service agreements with other countries.

(v) Maritime transport

220. St. Vincent and the Grenadines has made commitments on international passenger and freight transport services. While no limitations have been listed for cross-border supply and consumption abroad, the provision of the services through commercial presence is subject to the Commercial Code as well as a withholding tax. The same limitations apply to a related commitment on "transhipment services" listed under "services auxiliary to all modes of transport.[73]

221. Both in volume and value terms, cargo transported by sea is much more significant than cargo transported by air. The value of goods transported by sea rose from EC$420 million in 2001 to EC$680 million in 2006. The net weight of cargo transported by air ranged from 250 million kg to 300 million kg (Table IV.3).

Table IV.3

Cargo transported by sea, 2001-06

(Volume and value)

	c.i.f. value (EC$)	Net weight (kg)
2006	683,292,457	273,483,396
2005	567,192,954	253,208,483
2004	539,441,386	297,875,457
2003	472,662,879	270,078,936
2002	437,604,088	286,153,572
2001	420,423,645	269,727,293

Source: Information provided by the authorities.

222. St. Vincent and the Grenadines has several ports. According to the authorities, around 95% of cargo arrives at the two main commercial ports, Port Kingstown and Campden Park. Kingstown Port is the property of the Government as set out in Port Authority Act, No. 26 of 1987, and Campden Park is partly owned by the private sector (49% of shares) and partly by the Government.

223. The main legislation governing maritime transport is the Shipping Act of 2004[74], which replaced the Merchant Shipping Act No. 22 of 1982 (as amended).

224. Only St. Vincent and Grenadines ships may engage in cabotage, and they must have a trading licence. Information was not available from the authorities on the criteria to be met to obtain such a licence.

225. The St. Vincent and the Grenadines International Ship Registry was established in 1982. The Shipping Act 2004 specifies the conditions for registration. Persons entitled to own a St. Vincent and Grenadines-registered ship are: (a) St Vincent and Grenadines nationals; (b) CARICOM citizens resident in a CARICOM state where the ship is engaged in international voyages; (c) individuals or corporations owning ships hired out on bareboat charter to nationals; (d) individuals or corporations in joint-venture shipping enterprise relationships with nationals; (e) a body corporate, partnership or other association of individuals registered in accordance with the domestic laws and having their main office in St. Vincent and the Grenadines; and (f) such other persons as the Minister may by Order determine.[75] There are around 2,500 registered vessels.

226. No government or other cargos are reserved for domestically flagged vessels or for ships owned or operated by the Government. The authorities were unable to confirm whether domestically flagged ships were eligible for any fiscal incentives.

227. Ships registered in St. Vincent and the Grenadines are subject to registration fees ranging from US$400 for yachts, tugboats and small craft, to US$10,000 for ships over 10,000 net tonnes (NT). They are also required to pay annual fees.[76]

228. The St Vincent and the Grenadines Port Authority is a statutory corporation, mandated under Chapter 375 of the St. Vincent and the Grenadines Law (1990 edition) to manage and regulate ports. It has a monopoly on the provision of port services, and sets fees. According to the authorities, concessionary arrangements could be made for private companies (local or foreign companies) to provide certain auxiliary services; this, however, is at the discretion of the Port Authority and the Government. The authorities note that no foreign companies currently provide port services. According to the authorities, on average between 10 and 12, 20-40-foot containers are unloaded in an hour at the main commercial ports.

229. The costs of freight as a percentage of the value of imports in St. Vincent and the Grenadines was 8.1% in 2003; the developing country average was 9.1%.[77]

230. Over the period under review, St. Vincent and the Grenadines has invested around EC$5 million in bringing Kingston Port and Campden Park Port into compliance with the ISPS code. Work is under way to bring the smaller ports into compliance with the ISPS code.

231. St. Vincent and the Grenadines applies a cruise passenger tax and a travel tax (see below).

232. St. Vincent and the Grenadines is a member of the International Maritime Organization and is signatory to a number of IMO conventions.

(vi) Tourism

233. St. Vincent and the Grenadines made specific GATS commitments on "Hotel and Resort Development". Commercial presence was bound, subject to the provisions of the Commercial Code, the Exchange Control Act, and the Hotels Proprietor Act. Foreign suppliers may hire foreign staff only at managerial and specialist level, if these skills are in short supply or not available locally.

234. In 2005, St. Vincent and the Grenadines attracted 97,432 stayover visitors and 69,753 cruise passengers.[78] While stay-over visitors have increased gradually, cruise passenger arrivals have fluctuated. The Caribbean accounted for the majority of arrivals (42%) in 2004, followed by visitors from the United States (29%), the United Kingdom (14%), and Canada (6%). Visitor expenditures in 2004 were estimated at nearly US$96 million.[79]

235. The Minister of Tourism, Youth and Sports is responsible for the formulation and implementation of tourism policy; export promotion and marketing are carried out by the Ministry of Tourism and the private sector St. Vincent and the Grenadines Hotel and Tourism Association. The NIPI has a marketing officer focusing only on tourism.

236. Tourism development is one of the priority areas in which the Government is encouraging investment.[80] Under Hotels Aid Act No. 16 of 1988, tax concessions include the waiver or drawback of customs duties and consumption taxes on imports of building materials and equipment as well as advertising and promotional material related to the tourist industry. Between 2001 and 2006, total revenue forgone as a result of customs duty relief under the Hotel Aid Act was EC$1.6 million. Over the same period, an additional EC$751,000 of revenue was forgone as a result of other tax relief for purposes connected with tourism. Income tax holidays are available for the development of new hotels and apartment-hotels (of not less than five rooms for citizens of St. Vincent and the Grenadines, and not less than ten rooms for other persons) or for improvement and expansion. Applications must be made to the Minister or to the Cabinet and, in all cases, the Government retains the right to refuse the application. The income tax holiday is for 9 to 15 years, depending on the number of rooms created. Income tax exemptions for expansion of hotels apply only to the profits attributable to the expansion.[81]

237. St. Vincent and the Grenadines levies a number of tourism-related taxes and charges. A travel tax of 5% on the cost of passage is levied on tickets by air and maritime carriers for travel originating in St. Vincent and the Grenadines.[82] Revenue accruing to the Government from this tax was EC$1.5 million in 2006. A passenger departure tax of EC$40 (US$15) is levied on passengers leaving the country by air. As noted by the authorities, a cruise passenger head tax of US$10 was abolished in 2005.[83] With the introduction of the VAT, the hotel turnover tax, levied at 7% on the value of accommodation and refreshments, was also repealed. A reduced VAT rate of 10% is imposed on hotel and holiday accommodation, excluding accommodation for a continuous period of 45 days – which is exempt from VAT (Chapter III(1)(v)). Government revenue from this tax had been nearly EC$7.5 million in 2006.

(vii) Professional services

238. St. Vincent and the Grenadines did not make any GATS specific commitments on professional services.

239. There is no overall legislation governing the regulation and licensing of professional services in St. Vincent and the Grenadines, nor are there laws specific to particular professions. According to the authorities, regulations governing the licensing and practice of lawyers are enforced by the Bar Association and those governing the licensing and practice of medical doctors are enforced by the Medical Board. Other professional services are currently not regulated, and no licensing requirements apply. According to the authorities, no professions are explicitly reserved for nationals of St. Vincent and the Grenadines, nor are professional service providers required to reside in one of the OECS member states or the Caribbean region. St. Vincent and the Grenadines has not signed any mutual recognition agreements on professional services with any third country.

240. A number of steps are being taken to regulate professional services in St. Vincent and the Grenadines, driven by requirements under Chapter III of the Revised Treaty of Chaguaramas, relating to the right to establishment and to provide services within CARICOM. According to the authorities, model guidelines for the licensing and regulation of architects, nurses, accountants, and engineers are being developed at the CARICOM level (mid 2007), and the intention is to implement these in St. Vincent and the Grenadines as from January 2008. Such professionals wishing to practice must meet the requirements set out in the regulations. They must also be licensed by their respective professional organizations, all of which have now been set up in St. Vincent and the Grenadines.

241. To facilitate this process, CARICOM has been consulting with member states since 2003 on the establishment of an umbrella regional CARICOM coalition of services suppliers, which would bring together national coalitions in each member state. This, however, would apply also to non-professional service providers. According to the authorities, a by-law to establish the St. Vincent and the Grenadines' national coalition of services suppliers has been approved by the Attorney General; the Chamber of Commerce would provide secretariat support. The national coalition has been formed but not yet launched, pending the finalization of the Executive Committee (May 2007).

242. At the national level, the Education Act of 1992 was amended in December 2006 to provide for the establishment of an Accreditation Board; the Board has been constituted and approved by the Cabinet. The responsibilities of the Accreditation Board are to: assess and certify institutions delivering training, and training providers; assess qualifications; determine the equivalency of qualifications; and determine qualification criteria for the issuance of certificates. According to the authorities, the efficacy of having a sub-regional accreditation body at the OECS level is being discussed.

243. Some general legislation indirectly affects the market access of foreign professional service providers. Under Caribbean Community Skilled Nationals Act, No. 4 of 1997, a regional initiative to enhance the free movement of skilled persons, CARICOM nationals who are university graduates may enter and work in St. Vincent and the Grenadines without a work permit.

244. Certain foreign accountancy and actuarial bodies in the United Kingdom, United States, Canada, and the Caribbean have been approved by the Government of St. Vincent and the Grenadines to provide auditing and actuarial services as required under St. Vincent and the Grenadines' offshore legislation, for example, the International Banks Act, 2004, as well as the International Insurance (Amendment and Consolidation) Act, No.13 of 1998.

245. St. Vincent and the Grenadines is a contracting party to the CARICOM Agreement Establishing the Council for Legal Education (see Overview Report).

(viii) Other offshore services

246. International business companies (IBCs) must be incorporated under the International Business Companies Act No. 18 and Act No. 38 of 1996 (as amended in 2002). IBCs are regulated and licensed by the St. Vincent and the Grenadines Offshore Finance Authority.

247. In addition to offshore banks and international insurance companies, other offshore companies include: 16 mutual funds, 13 mutual fund managers, and 114 trusts. There are also 6,632 registered international business companies (IBCs).[84] No information was available on the contribution of offshore activities to employment, investment, or government revenue.

248. Under the International Business Companies Act, IBCs are precluded from carrying on business with residence of St. Vincent and the Grenadines. They may, however, hold bank accounts in St. Vincent and the Grenadines, and may invest in stocks and entities doing business in the state. IBCs must have a registered agent in St. Vincent and the Grenadines and a registered office (which may be the office of the registered agent); they do not need to appoint managers or directors in order to be registered. IBCs are exempt from all taxes as well as stamp duty for 25 years from their incorporation; this tax exemption is renewable indefinitely. Tax exemptions also apply to dividends paid by IBCs. IBCs are not subject to exchange controls.[85]

249. In 2001, the St. Vincent and the Grenadines' honorary citizenship programme was cancelled. As noted by the authorities, a project to create legislation in this regard was abandoned, and deposits made were refunded.

REFERENCES

Caribbean Development Bank (2006), Annual Country Report 2006. Viewed at: http://www.caribank.org/AnReport.nsf/AER06-Svg/$File/AER2006_SVG.pdf?OpenElement.

ECCB (2004), Annual Economic and Financial Review 2003. Viewed at: http://www.eccb-centralbank.org/PDF/2003aefr(1).pdf.

ECCB (2005), Annual Economic and Financial Review 2004. Viewed at: http://www.eccb-centralbank.org/PDF/aefr2004.pdf.

ECCB (2006a), Annual Economic and Financial Review 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/aefr06.pdf.

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

IMF (2006a), St. Vincent and the Grenadines: 2005 Article IV Consultation-Staff Report; and Public Information Notice on the Executive Board Discussion, IMF Country Report No. 06/205, June, Washington, D.C.

IMF (2006b), St. Vincent and the Grenadines: Statistical Appendix, IMF Country Report No. 06/206, June, Washington, D.C.

NIPI (2007), St. Vincent and the Grenadines Investment Guide. Viewed at: http://www.svg-nipi.com/CD-InvestmentGuide/InvetsmentGuide.pdf.

St. Vincent and the Grenadines Government (2006), 2007 Budget Address, On the Cusp of Advanced Economic Take-Off: Further Fiscal Consolidation and Tax Reform, December, Kingstown.

UNCTAD (2005) Étude sur les Transports Maritimes, Geneva.

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

World Bank (2007), St. Vincent and the Grenadines at a Glance. Viewed at: http://siteresources. worldbank.org/INTOECS/Resources/SVG.AAG.pdf.

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	51	45	39	38	37	40	..
	(% of total)
Total primary products	74.8	78.3	84.3	73.6	80.6	75.1	..
Agriculture	74.7	78.1	84.1	73.5	80.3	74.9	..
Food	74.6	77.9	84.0	73.4	80.1	74.8	..
0573 Bananas (including plantains), fresh or dried	37.7	32.3	42.6	33.0	38.2	32.1	..
0461 Flour of wheat or of meslin	10.8	13.6	11.5	12.4	13.3	12.7	..
0548 Vegetable products, roots, etc., n.e.s.	6.9	5.0	7.1	6.8	8.1	9.5	..
0423 Rice, milled, semi-milled	6.4	7.5	7.9	6.0	7.0	6.0	..
0819 Food waste, animal feeds n.e.s.	2.4	2.6	2.6	3.0	4.0	4.4	..
1110 Non-alcoholic beverage, n.e.s.	2.5	3.0	3.1	3.8	4.2	3.4	..
0422 Rice, husked, not further prepared (cargo or brown rice)	2.7	2.0	2.8	1.9	0.5	1.7	..
0361 Crustaceans, frozen	0.0	0.3	1.1	0.2	0.9	1.0	..
0752 Spices (except pepper and pimento)	0.8	0.7	0.8	0.7	0.7	0.9	..
0579 Fruit, fresh, dried, n.e.s.	0.7	7.5	1.2	1.6	1.0	0.9	..
Agricultural raw material	0.2	0.3	0.1	0.1	0.2	0.2	..
Mining	0.1	0.1	0.2	0.1	0.3	0.2	..
Ores and other minerals	0.1	0.1	0.1	0.0	0.3	0.2	..
2822 Waste and scrap of alloy steel	0.0	0.0	0.0	0.0	0.1	0.1	..
2882 Other non-ferrous base metal waste and scrap, n.e.s.	0.0	0.0	0.0	0.0	0.1	0.1	..
Fuels	0.0	0.0	0.1	0.1	0.0	0.1	..
Manufactures	25.2	21.7	15.7	26.4	19.3	24.7	..
Iron and steel	2.7	2.5	2.4	2.9	3.9	3.3	..
6741 Flat-rolled products, iron/steel, zinc plated	2.6	2.4	2.3	2.8	3.9	3.3	..
Chemicals	1.9	0.8	0.3	0.5	1.2	0.8	..
Other semi-manufactures	4.6	3.7	4.1	4.0	4.3	5.5	..
6421 Packing containers, of paper, paperboard, cellulose wadding etc.	1.1	1.2	1.5	0.7	1.0	2.2	..
6912 Aluminium structures and parts	0.6	0.3	0.7	0.9	1.4	2.0	..
6941 Nails, tacks, drawing-pins and similar articles, of iron or steel	0.2	0.1	0.1	0.3	0.7	0.5	..
Machinery and transport equipment	13.7	11.8	4.6	13.6	6.4	9.4	..
Power generating machines	0.0	0.1	0.0	1.3	0.3	0.3	..
Other non-electrical machinery	1.2	0.6	1.7	3.1	1.1	1.8	..
7232 Mechanical shovels, etc., self-propelled	0.1	0.1	0.2	0.5	0.2	0.6	..
7443 Derrick, cranes, mobile lifting fames, etc.	0.3	0.0	0.0	0.5	0.0	0.2	..
Agricultural machinery and tractors	0.0	0.0	0.0	0.4	0.0	0.0	..
Office machines & telecommunication equipment	0.3	0.7	0.8	0.7	1.3	1.4	..
7642 Microphones and stands thereof; loudspeakers, whether or not mounted in their enclosures; headphones, earphones and combined microphone/speaker sets; audio-frequency electric amplifiers; electric sound amplifier sets	0.1	0.1	0.4	0.1	0.1	0.7	..
7643 Radio or television transmission apparatus	0.0	0.0	0.0	0.3	0.8	0.4	..
Other electrical machines	1.2	0.6	0.2	1.8	1.0	2.2	..
7784 Electro-mechanical hand tools and parts	0.0	0.0	0.0	0.1	0.0	1.9	..
Automotive products	0.6	0.7	1.3	3.5	1.1	2.2	..
7822 Special purpose vehicles, other than those designed primarily for the transport of persons or goods (e.g., break-down and crane lorries, fire fighting vehicles, concrete-mixer, road sweeper and spraying lorries, etc.)	0.1	0.0	0.0	1.8	0.0	1.3	..
7821 Goods vehicles	0.1	0.0	0.7	0.9	0.3	0.3	..
Other transport equipment	10.5	9.1	0.5	3.1	1.6	1.4	..
7931 Yachts and other pleasure/sports/vessels	7.2	8.2	0.0	0.4	0.0	0.5	..
7139 Parts, n.e.s., for piston engines of 713.2, 713.3,713.8	0.0	0.0	0.1	0.2	0.1	0.3	..
Textiles	0.2	0.1	0.2	0.5	0.1	0.2	..
Clothing	0.7	0.7	0.5	1.3	0.4	3.0	..
Other consumer goods	1.4	2.2	3.6	3.7	3.1	2.5	..
8931 Plastics containers, stoppers, lids, etc.	0.8	1.0	1.1	1.3	1.1	1.2	..
8131 Lamps and light fittings, n.e.s.	0.0	0.0	0.0	0.4	0.1	0.3	..

.. Not available.

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	162	186	178	201	225	240	..
	(% of total)
Total primary products	39.4	35.2	37.0	34.7	36.7	38.3	..
Agriculture	29.1	25.5	27.7	24.4	24.9	23.9	..
Food	26.7	23.1	24.9	21.6	22.0	21.5	..
0123 Poultry, meat and offal	3.1	2.9	3.0	2.8	3.1	3.2	..
0412 Other wheat (including spelt) and meslin, unmilled	1.3	0.5	0.8	1.5	1.6	1.6	..
0222 Milk concentrated or sweetened	1.5	1.5	1.4	1.3	1.2	1.3	..
0989 Food preparations, n.e.s.	1.7	2.0	1.5	1.5	1.0	1.2	..
1110 Non-alcoholic beverage, n.e.s.	0.5	0.7	0.8	0.9	0.9	1.1	..
0484 Bread, baked goods	1.3	1.2	1.2	1.0	1.0	0.9	..
0422 Rice, husked, not further prepared (cargo or brown rice)	3.0	1.6	1.5	0.9	1.4	0.7	..
0910 Margarine, etc.	0.8	0.7	0.7	0.6	0.6	0.6	..
0984 Sauce, mixed seasonings and condiments	0.6	0.5	0.6	0.5	0.5	0.5	..
0481 Cereal grains, prepared n.e.s.	0.6	0.5	0.5	0.5	0.5	0.5	..
Agricultural raw material	2.4	2.3	2.9	2.7	2.9	2.4	..
2483 Wood, coniferous (incl. for parquet flooring) shaped	1.2	1.0	1.2	0.9	1.0	1.1	..
2482 Wood of coniferous, sawn of a thickness > 6 mm	0.7	0.6	0.9	1.0	0.7	0.8	..
Mining	10.3	9.7	9.3	10.3	11.8	14.4	..
Ores and other minerals	0.3	0.5	0.4	0.3	0.5	0.3	..
Non-ferrous metals	0.4	0.3	0.3	0.2	0.3	0.2	..
Fuels	9.6	9.0	8.7	9.8	11.0	13.9	..
3341 Motor gasolene, light oil	2.8	2.5	2.5	2.6	3.1	3.5	..
3425 Butanes, liquefied	1.4	1.0	1.1	1.0	1.3	1.4	..
Manufactures	60.6	64.8	62.9	65.3	63.3	61.7	..
Iron and steel	2.5	2.1	1.9	3.2	2.6	3.1	..
Chemicals	10.1	9.8	10.0	8.8	8.4	9.2	..
5429 Medicaments, n.e.s.	1.1	1.1	1.2	1.1	1.1	2.0	..
5334 Paints and varnishes; plastics in solution; etc.	1.2	1.2	1.2	1.2	1.0	1.2	..
5542 Surface-active agents (excl. soap)	0.8	0.8	1.0	0.8	0.7	0.7	..
Other semi-manufactures	14.8	14.3	15.0	15.0	15.0	14.2	..
6612 Portland cement and similar hydraulic cements	2.4	2.3	2.5	2.5	2.2	1.9	..
6343 Plywood of sheets <6 mm thickness	0.9	1.0	0.8	0.8	1.2	1.1	..
Machinery and transport equipment	19.0	19.1	23.5	24.8	22.8	22.1	..
Power generating machines	0.3	0.3	1.7	0.7	0.6	0.4	..
Other non-electrical machinery	3.0	3.5	4.9	3.8	5.0	4.8	..
Agricultural machinery and tractors	0.1	0.5	0.2	0.2	0.5	0.1	..
Office machines & telecommunication equipment	5.2	4.5	6.6	10.3	5.1	6.4	..
7762 Other electronic valves, tubes	0.0	0.0	0.0	0.0	0.0	1.9	..
7643 Radio or television transmission apparatus	0.5	0.3	1.6	4.9	1.6	1.4	..
Other electrical machines	3.8	3.2	3.9	3.8	5.9	3.5	..
7731 Insulated wire, cable etc.; optical fibre cables	0.8	0.5	0.7	0.5	0.8	0.5	..
7752 Household fridges and freezers	0.5	0.6	0.5	0.5	0.6	0.5	..
Automotive products	5.2	5.3	5.0	4.3	4.7	4.8	..
7812 Motor vehicles for the transport of persons, n.e.s.	2.8	2.2	2.7	2.5	2.2	2.3	..
7821 Goods vehicles	1.2	1.5	1.1	0.9	0.8	1.1	..
Other transport equipment	1.4	2.3	1.4	2.1	1.5	2.1	..
Textiles	1.4	1.3	1.3	1.3	2.0	1.3	..
Clothing	1.9	1.9	1.7	2.0	1.5	1.7	..
Other consumer goods	11.0	16.4	9.7	10.2	10.8	10.0	..
8921 Printed books, pamphlets, maps, etc. (excl. ad. material)	1.0	0.8	0.6	0.8	0.8	1.3	..
8931 Plastics containers, stoppers, lids, etc.	0.9	0.7	1.0	0.8	0.9	1.0	..

.. Not available.

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	51	45	39	38	37	40	..
	(% of total)
America	51.1	60.5	60.1	69.5	65.1	72.6	..
United States	2.6	2.6	5.2	13.2	5.3	9.2	..
Other America	48.6	57.9	54.9	56.2	59.8	63.4	..
Canada	0.5	0.3	0.2	0.6	0.3	0.3	..
Barbados	8.2	10.0	11.4	11.2	13.0	12.7	..
Trinidad and Tobago	9.5	17.4	9.9	11.0	9.9	12.3	..
St Lucia	7.8	8.1	8.8	10.3	11.5	10.9	..
Dominica	3.5	3.0	3.4	3.6	4.1	7.2	..
Grenada	2.8	2.7	3.2	3.4	5.3	6.8	..
Antigua and Barbuda	5.5	5.7	6.0	7.1	8.3	6.2	..
St Kitts and Nevis	4.6	2.9	2.7	2.7	2.6	2.8
Jamaica	2.9	4.2	4.3	2.5	2.2	1.8	..
British Virgin Islands	0.4	0.7	1.1	1.1	0.6	0.5	..
Montserrat	0.4	0.4	0.5	0.4	0.3	0.4	..
Guyana	0.6	0.6	0.4	0.4	0.3	0.4	..
Netherlands Antilles	1.5	1.1	1.5	0.9	0.9	0.3	..
Suriname	0.0	0.0	0.0	0.0	0.0	0.3	..
Anguilla	0.2	0.4	1.0	0.4	0.3	0.3	..
Bolivarian Rep. of Venezuela	0.1	0.1	0.1	0.1	0.1	0.1	..
Costa Rica	0.0	0.0	0.0	0.0	0.0	0.1	..
Brazil	0.0	0.0	0.0	0.0	0.0	0.1
Europe	47.6	39.2	39.7	30.2	34.6	27.2	..
EC(25)	46.3	39.2	39.6	30.2	34.6	27.2	..
United Kingdom	37.4	37.7	38.8	29.3	33.5	26.7	..
France	2.0	1.4	0.7	0.9	0.4	0.4	..
EFTA	0.0	0.0	0.0	0.0	0.0	0.0	..
Other Europe	1.3	0.0	0.0	0.0	0.0	0.0	..
Commonwealth of Independent States (CIS)	0.0	0.0	0.0	0.0	0.0	0.0	..
Africa	0.0	0.0	0.0	0.0	0.1	0.0	..
Middle East	1.0	0.0	0.0	0.0	0.0	0.0	..
Asia	0.1	0.1	0.0	0.0	0.0	0.2
China	0.0	0.1	0.0	0.0	0.0	0.1	..
Japan	0.0	0.0	0.0	0.0	0.0	0.0	..
Six East Asian Traders	0.1	0.0	0.0	0.0	0.0	0.1	..
Other Asia	0.0	0.0	0.0	0.0	0.0	0.0	..
Other	0.2	0.2	0.2	0.2	0.2	0.0	..
Memorandum:
EC(15)	46.3	39.2	39.6	30.2	34.6	27.2	..
ASEAN	0.0	0.0	0.0	0.0	0.0	0.0	..
APEC	3.2	3.0	5.4	13.9	5.6	9.7	..
MERCOSUR	0.0	0.0	0.0	0.0	0.0	0.1	..

.. Not available.

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	162	186	178	201	225	240	..
	(% of total)
America	77.0	71.4	77.0	78.9	73.9	73.0	..
United States	38.2	35.2	40.7	41.2	37.4	33.3	..
Other America	38.8	36.2	36.3	37.7	36.5	39.7	..
Canada	2.9	2.6	2.3	2.9	2.7	3.8	..
Trinidad and Tobago	21.1	19.9	20.5	20.7	21.3	23.6	..
Barbados	4.5	4.0	4.0	3.8	4.0	3.9	..
Brazil	1.0	1.1	1.1	1.1	1.4	1.2	..
Colombia	0.4	0.3	0.3	1.4	0.6	1.0	..
Guyana	2.3	1.2	1.2	0.8	1.1	0.8	..
Honduras	0.8	0.3	0.4	0.5	0.4	0.8	..
Mexico	0.4	0.5	0.4	0.5	0.4	0.7	..
Jamaica	0.8	0.9	0.7	0.9	0.6	0.7	..
St Lucia	0.4	0.5	0.8	1.1	0.9	0.7	..
Dominican Rep.	0.4	0.4	0.6	0.4	0.3	0.5	..
Argentina	0.1	0.1	0.1	0.1	0.2	0.3	..
Costa Rica	0.2	0.1	0.2	0.3	0.3	0.3	..
Bolivarian Rep. of Venezuela	1.0	0.6	0.7	0.9	0.4	0.3	..
Europe	16.0	21.5	16.1	13.2	16.7	15.5	..
EC(25)	15.7	21.2	15.3	12.9	16.1	15.1	..
United Kingdom	8.6	9.8	8.3	7.2	10.4	9.4	..
Italy	1.8	7.4	0.7	0.5	1.6	1.2	..
France	1.8	1.3	1.8	0.7	1.3	1.1	..
Germany	1.0	0.8	1.0	0.6	0.6	1.1	..
EFTA	0.3	0.3	0.7	0.3	0.4	0.4	..
Other Europe	0.0	0.0	0.0	0.0	0.1	0.0	..
Commonwealth of Independent States (CIS)	0.0	0.0	0.0	0.0	0.0	0.0	..
Africa	0.0	0.1	0.0	0.1	0.3	0.1	..
South Africa	0.0	0.1	0.0	0.1	0.2	0.1	..
Middle East	0.1	0.0	0.0	0.0	0.1	0.0	..
Asia	6.5	6.6	6.4	7.4	8.7	11.4	..
China	0.6	0.7	0.7	0.9	1.5	2.7	..
Japan	3.7	3.5	3.5	3.3	3.7	4.2	..
Six East Asian Traders	0.9	0.8	1.1	1.2	2.1	2.0	..
Chinese Taipei	0.3	0.3	0.8	0.8	1.4	0.9	..
Korea, Rep. of	0.2	0.1	0.1	0.1	0.1	0.5	..
Hong Kong, China	0.1	0.1	0.1	0.1	0.2	0.3	..
Other Asia	1.3	1.6	1.0	2.1	1.5	2.4	..
India	0.0	0.1	0.1	0.2	0.2	1.0	..
Australia	1.0	0.9	0.6	1.1	0.5	0.8	..
Other	0.5	0.5	0.5	0.4	0.4	0.0	..
Memorandum:
EC(15)	15.6	21.1	15.2	12.8	16.1	15.0	..
ASEAN	0.4	0.4	0.3	0.7	0.8	0.7	..
APEC	47.8	44.8	49.8	51.9	49.0	48.4	..
MERCOSUR	1.0	1.4	1.2	1.2	1.6	1.5	..

.. Not available.

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

__________

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

[2] World Bank (2007).

[3] The totals do not add to 100% since it is necessary to subtract the financial intermediation services indirectly measured (FISIM), which includes total property income receivable by financial intermediaries minus their total interest payable. For details see: ECCB (2006b).

[4] Vuletin (2007).

[5] IMF (2006b).

[6] IMF (2006a).

[7] ECCB (2006a).

[8] ECCB (2006), p. 72.

[9] NIPI online information. Viewed at: http://www.svg-nipi.com/index.cfm?method=html.export_ development.

[10] NIPI online information. Viewed at: http://www.svg-nipi.com/index.cfm?method=html.export_ development.

[11] NIPI online information. Viewed at: http://www.svg-nipi.com/CD-InvestmentGuide/Investment Guide.pdf, p. 66.

[12] NIPI online information. Viewed at: http://www.svg-nipi.com/CD-InvestmentGuide/Investment Guide.pdf, p. 52.

[13] NIPI online information. Viewed at: http://www.svg-nipi.com/CD-InvestmentGuide/Invetsment Guide.pdf.

[14] WTO online information. Available at: http://www.wto.org/english/ tratop_e/serv_e/s_negs_e.htm.

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

[16] WTO document WT/DS27/78; 9September 1997.

[17] WTO online information. Available at: http://www.wto.org/English/tratop_e/dispu_e/cases_e/ds27_ e.htm.

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

[19] WTO document G/RO/W/106, 29 September 2006.

[20] ECCB (2007).

[21] The tariff schedule is the same as in 2000, the latest year made available to the Secretariat. The authorities indicate that this same schedule corresponds to the 2006 tariff.

[22] The eligible products are: aerated beverages (2202.101); waters; other waters (201.10), beer (2203); malt (2202.90.20); candles/paraffin wax (3406); curry powder (0910.50); pasta (1902); animal feed (2309); wooden furniture (9401.60 /9403.60); solar water heaters (8419.19); and industrial gases/oxygen, carbon dioxide, acetylene (2804.40, 2811.21, 2901.292).

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

[24] Ministry of Finance and Planning online information. Viewed at: http://www.gov.vc/Govt/Files/ VAT%20White%20Paper.pdf.

[25] The VAT replaced the consumption tax; the international telecommunications surcharge; the domestic telecommunications surcharge; the hotel tax; the stamp duty receipts; and the entertainment tax.

[26] These items are: aerated beverages, beer, stout, ale, and porter; pasta; candles; solar water heaters; oxygen in cylinder; carbon dioxide in cylinder; acetylene in cylinder; candles; chairs and other seats of wood and upholstered fabric; other furniture of wood and upholstered fabric; and mops.

[27] WTO document G/TBT/2/Add.71, 10 December 2002.

[28] WTO document G/TBT/CS/N/150, 9 September 2002.

[29] SVGBS online information. Viewed at: http://www.gov.vc/Govt/Government/Executive/Ministries/ Telecommunications/BureauS/Library.asp?a=3049.

[30] WTO document G/SPS/N/VCT/1, 11 January 2005.

[31] Ministry of Agriculture, Forestry and Fisheries online information. Viewed at: http://www.gov.vc/ Govt/Government/Executive/Ministries/Agriculture&Fisheries/Agriculture/SRD/Application%20for%20approv val%20of%20pesticides.pdf.

[32] WTO document G/SPS/GEN/766, 28 February 2007, p. 1.

[33] WTO documents G/SCM/N/74/VCT, 4 January 2002; G/SCM/N/71/VCT, 20 March 2002; G/SCM/N/99/VCT, 26 August 2003; G/SCM/N/114/VCT, 7 July 2004; G/SCM/N/128/VCT, 31 May 2005; G/SCM/N/146/VCT, 4 October 2006; and G/SCM/Q3/VCT/1-8, 8 April 2002 to 26 July 2002.

[34] WTO document G/SCM/91/Add.4, 13 November 2006.

[35] WTO document G/SCM/W/535, 12 April 2006. In addition to the OECS countries, this proposal was made by Barbados, Belize, the Dominican Republic, El Salvador; Fiji, Jamaica, Mauritius, and Papua New Guinea.

[36] 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.

[37] WTO document G/SCM/N/146/VCT, 4 October 2006.

[38] St. Vincent and the Grenadines Government (2007), p. 6.

[39] Export profits as a share of total profits are calculated using the formula (E*P)/S, where E represents the proceeds from export sales of the approved product for the year, P represents the profits made by the enterprise from sales of the approved product for the year, and S represents the proceeds of all sales for the year.

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

[41] ECCB (2006).

[42] CIPO online information. Viewed at: http://www.gov.vc/govt/cipo/aboutus.asp?a=2947.

[43] CIPO online information. Viewed at: http://www.gov.vc/govt/cipo/intellectualproperty.asp?a=2729.

[44] CIPO online information. Viewed at: http://www.gov.vc/govt/cipo/intellectualproperty.asp?a=2728.

[45] Government of St. Vincent and the Grenadines. Online information. Viewed at: http://www.gov.vc/ Govt/Government/Executive/Ministries/Agriculture&Fisheries/articles.asp?a=1886.

[46] ECCB (2004).

[47] ECCB (2005).

[48] ECCB (2006a).

[49] ECCB (2007).

[50] Caribbean Development Bank (2006).

[51] IMF (2006a).

[52] IMF (2006a).

[53] ECCB (2004).

[54] ECCB (2005), (2006a) and (2007).

[55] These fees are not added on to the bills of consumers but are built into the rates charged by the providers.

[56] National Telecommunications Regulatory Commission of St. Vincent and the Grenadines online information. Viewed at: http://www.ntrc.vc.

[57] Telecommunications Act No. 1, 2001. Viewed at: http://www.ntrc.vc/regulations/telecom_act% 202001%20SRO%20NO%201.pdf.

[58] NTRC of St. Vincent and the Grenadines online information. Viewed at: http://www.ntrc.vc/ registry/index.htm

[59] Kelcom International operates a Cable TV network.

[60] ECTEL (2006).

[61] ECTEL (2006).

[62] ECTEL (2006).

[63] WTO document GATS/SC/74, 15 April 1994.

[64] ECCB (2007).

[65] The authorities note that, in practice, there is an administrative agreement for EC$200,000 or 30% of net premium whichever is greater.

[66] International Financial Services Industry of St. Vincent and the Grenadines online information. Viewed at: http://www.stvincentoffshore.com/industry.htm.

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

[68] FATF online information. Viewed at: http://www.fatf-gafi.org/dataoecd/56/43/33921824.pdf.

[69] International Insurance (Amendment and Consolidation) Act. Viewed at: http://www.stvincent offshore.com/pdf/SVG%20international%20insurance%20act.pdf; and International Insurance Regulations. Viewed at: http://www.stvincentoffshore.com/pdf/INTERNATIONAL%20INSURANCE%20REGULAT IONS.pdf.

[70] WTO document GATS/SC/74, 15 April 1994.

[71] National Investment Promotions Inc., online information. Viewed at: http://www.svg-nipi.com/CD-InvestmentGuide/InvetsmentGuide.pdf.

[72] Address by the Prime Minister on The International Airport Project at Argyle. Viewed at: http://www.caribbeannetnews.com/2005/08/11/argyle.pdf.

[73] WTO document GATS/SC/74, 15 April 1994.

[74] Shipping Act 2004. Viewed at: http://www.svg-marad.com/download.asp?path=Law%20and%20 Directives&newpath=Shipping%20Acts.

[75] Shipping Act 2004, Part II(3)(2).

[76] St. Vincent and the Grenadines Maritime Administration. Viewed at: http://www.svg-marad.com /fees.asp. Annual fees are US$160 yachts, tugboats, and small craft; US$0.50 per NT for bareboat charter; US$0.40 per NT for ships from 501 to 1000 NT; US$0.20 per NT for ships from 1,001 NT to 5,000 NT; and US$0.10 per NT for ships of 5,001 NT and over.

[77] UNCTAD (2005).

[78] ECCB (2005).

[79] Caribbean Tourism Organization online information. Viewed at: http://www.onecaribbean.org/ information/documentview.php?rowid=4169.

[80] NIPI (2007).

[81] The Hotels Aid Act. Viewed at: http://www.oas.org/tourism/incentives/st-vincent-and-grenadines. rtf.

[82] The legislative basis for this tax is the Travel Tax Act, Chapter 319 of the Laws of Saint Vincent and the Grenadines, Revised Edition 1990.

[83] This tax was levied under the Cruise Ships (Service Charge) Act. Chapter 361 of the Laws of Saint Vincent and the Grenadines Revised Edition 1990.

[84] International Financial Services Industry, St. Vincent and the Grenadines online information. Viewed at: http://www.stvincentoffshore.com/industry.htm.

[85] International Business Companies Act No. 18 and No. 38 of 1996. Viewed at: http://www. stvincentoffshore.com/pdf/international%20business%20companies%20act.pdf; and International Business Companies (Amendment) Act, No. 26 of 2002. Viewed at: http://www.stvincentoffshore.com/pdf/ International%20Business%20Comp%20_Amend_%20act%202002.pdf.

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