72526 v1 World Trade Indicators 2009/10 Antigua and Barbuda Trade Brief Trade Policy country’s weighted average rest of the world tariff (including preferences) is very low at 0.2 percent, As a member of the Caribbean Community and especially when compared to the high-income non- Common Market (CARICOM), Antigua and Barbuda OECD and high-income countries (3.2 percent and 3 applies the group’s Common External Tariff (CET). percent, respectively). Its non-agricultural exports face For the last several years, the country’s average MFN a very low tariff of 0.04 percent while its agricultural tariff has remained constant at around 9.7 percent, exports face a higher tariff of 2.9 percent. Regionally, much higher than that of an average high-income non- Antigua and Barbuda is a member of the Organization OECD or high-income country (5.7 percent for both). of Eastern Caribbean States (OECS) and uses the The agricultural sector is given a higher level of tariff group’s common currency, the East Caribbean dollar, protection (14.9 percent) compared to the non- which is pegged to the U.S. dollar. The currency agricultural sector (8.9 percent). Based on the MFN appreciated by 0.7 percent in real, trade-weighted applied tariff, Antigua and Barbuda ranks 100th out of terms in 2008, decreasing the competitiveness of the 181 countries (where 1st is least restrictive). The country’s exports. country’s maximum MFN applied tariff, excluding alcohol and tobacco, is 70 percent. The trade policy A comprehensive Economic Partnership Agreement space, as measured by the wedge between bound and (EPA) between the EU and Caribbean states in the applied tariffs (the overhang), is 49.2 percent. Antigua CARIFORUM EPA group, including Antigua and and Barbuda ranks 92nd (out of 148) on the GATS Barbuda, was signed in 2008. This replaced the expired Commitments Index, suggesting ample room for preferences given under the Africa, Caribbean, and increasing its commitment to services trade Pacific (ACP)-EU Cotonou Agreement. The EU liberalization. committed to immediately removing all tariffs and quotas on Caribbean exports with the exception of In response to the food crisis, CARICOM heads of sugar and rice, which will get full duty-free and quota- state agreed in March 2008 to temporarily suspend the free access by the end of 2009. The Caribbean CET on 34 product lines for a period of two years up countries, on the other hand, committed to an to March 2010 to enable member governments to asymmetric and gradual opening of their economy to drop duties as needed to counteract rising food prices. EU imports. The CET on a range of infant juices was also suspended for a period of six months up to September 2008. Behind the Border Constraints Antigua and Barbuda remained in the top third of External Environment institutional environments conducive to business in 2009, being ranked 50th out of 183 countries in the As is the case for most CARICOM countries, Antigua Ease of Doing Business index. This reflects the and Barbuda’s exports face few external barriers. The generally positive business environment of most CARICOM members. With low processing times and relatively few documents needed for exporting and Unless otherwise indicated, all data are as of August 2009 importing, the country ranks 53rd on the Trading and are drawn from the World Trade Indicators 2009/10 Across Borders subcategory of the index, a proxy for Database. The database, Country Trade Briefs and the extent of trade facilitation in the country. Trade-at-a-Glance Tables, are available at http://www.worldbank.org/wti. Trade Outcomes If using information from this brief, please provide the World Bank estimates suggest that real trade growth following source citation: World Bank. 2010. “Antigua (in constant 2000 U.S. dollars) decelerated from 10.3 and Barbuda Trade Brief.� World Trade Indicators 2009/10: percent in 2007 to 7.7 percent in 2008, and is expected Country Trade Briefs. Washington, DC: World Bank. to fall further to 3.1 percent in 2009. Imports grew at Available at http://www.worldbank.org/wti. World Trade Indicators 2009/10 Antigua and Barbuda Trade Brief an estimated 7.5 percent in 2008, down from 10.9 first seven months of the year.1 FDI inflows into the percent in 2007. Exports are estimated to have country in 2008 were a high 33.9 percent of GDP. exhibited a similar performance, with an estimated growth rate of 7.9 percent in 2008, compared to 9.7 percent in 2007. Imports and exports are expected to Notes grow at the same rate of 3.1 percent in 2009. 1 The Government of Antigua and Barbuda 2008, p. 16. In nominal U.S. dollar terms, World Bank estimates indicate a 9.2 percent growth rate in trade in 2008 References compared to 11.5 percent the year before. Imports are estimated to have grown at 4.4 percent in 2008, after European Commission. 2009. Update: Economic Partnership growing at 15.7 percent in 2007. Exports performed Agreements. European Commission. June 17, 2009. well, increasing by an estimated 16.2 percent in 2008, . Goods exports grew at an estimated 16.7 percent in Food and Agriculture Organization of the United 2008, compared to 12.3 percent in 2007, but are Nations (FAO). 2008. Policy measures taken by expected to register a low growth rate of 1.9 percent in governments to reduce the impact of soaring prices—Latin 2009. Services exports also increased by an estimated America and the Caribbean. FAO. December 15, 2008. 16.1 percent in 2008, compared to 4.2 percent the . previous year. This high growth rate is, however, not Government of Antigua and Barbuda. 2008. Budget expected to be sustained in 2009, with services exports Statement 2009. The Government of Antigua and projected to increase at a lower rate of 5.8 percent. In Barbuda. December 1, 2008. . 2009 as a result of lowered demand from the advanced World Trade Organization (WTO). 2007. Trade Policy economies in light of the global economic crisis. The Review—Antigua and Barbuda. WTO. October 1, 2007. slowdown in the sector had already begun in the latter . average of 6.8 percent per month between August and October after growing by 7.7 percent per month in the