Introduction
Dominica has been a WTO member since 1 January 1995 and a member of GATT since 20 April
1993. Dominica has a per capita GDP of US$6,692 and a population of about 71,780 (as of 2012
estimates). Dominica's population and GDP are low when compared to those of other OECS
countries. Due to its primarily volcanic composition, the island is highly susceptible to various
types of natural disasters and hazards. Two hurricanes, Dean and Omar, hit Dominica
consecutively in 2007 and 2008, wreaking havoc on the economy and causing extensive damage
to the island's infrastructure.
The primary goals of Dominica's trade strategy have not altered. Improving the trade balance has
been a top priority, thus efforts have been made to boost exports and export income. To achieve
this goal, they use promotional and marketing assistance programs in addition to measures
designed to increase competitiveness. Membership in the WTO is critical in view of concerns
over preference erosion and its effects on banana exports and agriculture more generally. Doha
Round negotiations in which Dominica is involved are seen as crucial. Dominica, which has
significant resource constraints, has been seeking to expand its relations with other OECS-WTO
members to assist it develop and implement a trading plan. Dominica is dedicated to expanding
regional commercial ties with the other OECS and CARICOM member states. In this assignment
the author will be analyzing the foreign trade policy, national regulations for international trade,
and the contribution to global trade.
Foreign Trade Policy and National Legal Regime for International Trade
Since its inception, Dominica has been an active member of the World Trade Organization. It
treats all of its trade partners with at least MFN status. Dominica made certain preliminary
pledges in the areas of tourism, leisure, communication, and financial services under the GATS.
Dominica has informed the WTO on its fiscal incentives scheme, licensing requirements for
imports, and technical rules, among others. However, there is still a delay in sending out notices
in other sectors, including agricultural and sanitary and phytosanitary measures.
As of now, the Dispute Settlement Body has not heard any cases in which Dominica was either a
plaintiff or a defendant. It has participated in three instances as a third party: “European
Communities - Regime for the Importation, Sale and Distribution of Bananas, United States -
Sections 301-310 of the Trade Act 1974, and United States - Import Measures on Certain
Products from the European Communities.”
Tariff Structure
The tariff is based on the CET, as published by CARICOM, with the exclusions specified in Lists
A and C. Merchandise on List A may be imported at lower than CET prices, whereas
Merchandise on List C can be imported at higher than CET prices. As of 2011, when the OECS
Economic Union went into effect, the OECS Economic Affairs Council became the body
primarily responsible for making adjustments to tariffs. The Government still has the right to
adjust tariffs within the CET's parameters. Following the submission of a request by the
CARICOM Secretary General and its subsequent approval. The Harmonized System from 2007
serves as the basis for Dominica's tariff in 2013. Tariffs are assessed based on the value of goods.
There were 6,359 10-digit tariff lines in the 2013 tariff.
Taxes and fees might be anywhere from 0% to 165%. The ultimate rate limit in the World Trade
Organization for agricultural goods is 150%. Industrial goods not covered by the World Trade
Organization are subject to (non-CET) tariffs ranging from 50% to 165%. Enamels, paints, and
varnishes are subject to the highest tax rate among similar products.
National Policy on Imports
Items whose import is restricted or outright banned may be found on a list in the Customs Act,
2010. These bans and regulations are often put in place to protect the health and safety of the
Dominican public or to prevent the distribution and sale of illicit substances. Products made in or
imported to Iraq are banned.
“The Supplies Control (Restricted Imports and Exports) Order, 2003” governs Dominica's
import-licensing framework. The WTO was informed of this in 2001, and it is overseen by the
“Ministry of Employment, Trade, Industry, and Diaspora Affairs.” In 2006, Dominica filled out a
questionnaire for the WTO on its import licensing practices. As stated by the authorities,
“annually about 150 permits are issued. In addition to liquefied petroleum gas (butane and
propane) for non-domestic use, diesel, petroleum spirits, kerosene, aviation fuel, acetylene,
oxygen, sulphuric acid, kerosene oil, and other petroleum products; alcoholic beverages;
tobacco, cigarette, cigarillo, or cigar imports are subject to licensing requirements.” Products
subject to priority sourcing requirements are administered under the licensing regime.
Anti-Dumping and Countervailing Measures
The primary piece of law governing the application of anti-dumping and countervailing measures
is the “Customs Duties (Dumping and Subsidies) Act No. 14 of 1959.” In 1999, it was reported to
the World Trade Organization. In cases where imported commodities are deemed to be
subsidized or dumped, and it is judged that it is in Dominica's interest to impose such duties in
addition to customs charges, the Act permits the application of such duties. The Act mandates
that these levies be implemented in a manner compatible with the GATT 1947. The lack of a
competent body to begin and execute investigations was reported to the WTO in 2010. The
scenario is still the same.
Contribution to Global Trade
Dominica was an early participant in both the “CARICOM” and the “OECS.” It works with the
OECS countries to formulate and negotiate trade policy, as well as collaborate in other areas
including telecommunications, competition policy, and foreign relations. In 2011, Dominica
accepted the amended “Treaty of Basseterre Establishing the Organization of Eastern Caribbean
States (OECS),” and by 2015, all necessary legal and administrative procedures for the free
passage of persons under the Treaty had been accomplished. Trade agreements on the regional
level are seen as a stepping stone for Dominica into the global market. Dominica has benefited
economically from deeper economic integration with CARICOM members, as well as by sharing
human and technical resources with other member states, gaining political influence in a number
of sites, and improving participation in a variety of global negotiations (through the Caribbean
regional negotiating machinery).
By virtue of the CARIFORUM-EC EPA, Dominica has privileged access to the European Union
market. In 2008, Dominica signed an “Economic Partnership Agreement (EPA)” with the
European Union as a member of “CARIFORUM” (a negotiating partnership between
CARICOM and the Dominican Republic) (see Common Report). There are a number of
legislative and institutional reforms that need to be made in order for Dominica and the other
OECS nations to fully implement the EPA, despite the fact that it is now in effect. As of early
2014, Dominica had administratively implemented the EPA's 2011 tariff reductions and was
waiting for a Standing Order to pass in order to implement the following reductions in the
Schedule of tariff reductions. U.S. Caribbean Basin Initiative trade advantages help a variety of
Dominican exports (CBI). The CARIBCAN agreement gives Dominica preferential access to the
Canadian market for processed commodities and fresh vegetables. Dominica is now in the midst
of negotiating a “CARICOM/Canada Trade and Development Agreement” via its membership in
CARICOM. In 2013, CARIBCAN exports were valued at EC$165,462.
Conclusion
The Dominican government has informed the World Trade Organization that it is committed to
fostering an environment favorable to domestic and international business. This is still an
essential aspect of the effort to diversify the economy. The goal is to diversify the agricultural
base and lessen the economy's reliance on a single cash crop for export. In order to get export
subsidies, Dominica has informed the WTO that it would be using “Fiscal Incentives Act No. 42
of 1974, as revised by Act No. 11 of 1983.” Dominica is required to amend its law by the end of
2015 to eliminate any export subsidy element, notwithstanding the fact that the deadline for
doing so has been extended according SCM Article 27.4 of the “Transition Period for the
Elimination of Export Subsidies.” In July 2008, the OECS Secretariat, with help from the
Commonwealth Secretariat, set out to establish a plan of action for fulfilling the responsibilities,
and the OECS hired the services of a trade attorney and legislative drafter to help with the
execution of WTO commitments. In June 2009, sample legislation and guidelines for drafting
were made available to legislators and trade authorities. The authorities claim that the new law is
meant to standardize the management of incentive programs, ensure that both domestic and
international investors are treated fairly, boost openness, and set up a monitoring system to
evaluate the efficacy of incentive schemes.
