OECS To Remove Export Subsidies

Trade officials from members of the Organization of Eastern Caribbean States (OECS) concluded talks on May 11, 2010, on withdrawing government subsidies to the region’s exporters by the end of 2015, as part of an agreement concluded with the World Trade Organization (WTO).

While government subsidies for exports have been used to attract foreign investment to the region, creating thousands of jobs throughout the OECS, the agreement concluded with the WTO in 2007 obligates OECS member states to remove all export subsidies from their legislation from 2015.

Despite the pending restrictions, there is some flexibility where OECS member states can continue to use subsidies after 2015 as long as these subsidies are not based solely on exports. In addition, OECS member states can also continue to use subsidies to garner or maintain employment.

Natasha Edwin, Technical attaché at the OECS Secretariat’s Geneva Mission in Switzerland says her office will continue to assist OECS member states in ensuring that reformed legislation regarding government subsidies does not breach WTO rules.

“In the discussions we acknowledged the importance of continuing to provide subsidies to attract investment [in a way that is compliant with WTO rules].