INDUSTRIAL CLIMATE

The economy of Antigua and Barbuda is largely dominated by tourism, leaving the country in a vulnerable position. The government has therefore taken a positive role in the diversification of the economy. Tourism development projects are still strongly supported, but proposals to increase manufacturing and agricultural production are strongly encouraged. Legislation to increase offshore company formation, including banks, trusts, and insurance companies has resulted in a large number of International Business Companies (IBCs).

INDUSTRY FRAMEWORK

Most of Antigua's businesses are run by local entrepreneurs, although most of the hotels are foreign owned. The public utilities, airport and seaports are government owned and operated. The importation and distribution of basic foodstuffs is controlled by the government owned Central Marketing Authority, and the government is the largest landowner since acquiring lands from the sugar estates. The government's policy is to sell land for tourist and residential development and to lease agricultural land for farming.

GOVERNMENT POLICY

Economic and fiscal policies are geared towards achieving growth of the economy. Incentives offered by the Ministry of Economic Development, and approved by the Cabinet, includes duty-free imports, tax holidays and exemptions from local taxies and levies. There is an apparent trend to reducing the level of government intervention and ownership.

Recently, a Free Trade Zone has been established for qualifying investors.

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LABOUR MANAGEMENT RELATIONS

Labor relations are governed by the 1975 Labor Code and incidents of industrial disputes are not common. There are two active trade unions, the Antigua Trade and Labour Union and the Antigua Workers Union.

OVERSEAS TRADE RELATIONS

United States

Products exported to the United States from Antigua enjoyed preferential treatment under the Generalized System of Preferences (GSP), the U.S. tariff provisions 806 and 807 and the Caribbean Basin Initiative (CBI).

Canada

Antigua received duty-free access to the Canadian market under Caribcan, except for methanol, lubricating oils, textiles, clothing, footwear, luggage, handbags, and leather garments. However, these items subject to most-favored-nation status in instances where there are preferential rates.

Europe

Antigua is a member of the Lome Convention between the members of the European Community (EC) and the African, Caribbean and Pacific States (ACP). Duty-free status is given to products meeting certain source and value-added criteria under the Lome Convention.

Caribbean

Manufacturers in Antigua have preferential access to the regional markets of over 5 million people in the Caribbean Common Market (Caricom). Duty-free imports is given to all of the 12 member states, providing that locally produced or manufactured goods meet certain value-added criteria.

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EXPORTS

Export-oriented industries qualify for the maximum 15-year tax holiday and duty-free imports as outlined in the Fiscal Incentives Act of 1975.

FOREIGN INVESTMENT

The Government of Antigua and Barbuda and its citizens generally welcome foreign investment. There are several policies that help make Antigua an ideal investment opportunity.

Foreign investors are permitted to obtain real estate property with a license, under the Non-Citizens Land Holding Regulations Act. Although import licenses are required for most products, there is a tendency towards free trade. Foreign investments receive tax holidays and other incentives, and joint ventures are possible between locals and foreigners. The labor force generally regard foreign investors as desirable employers.

For more information on the business setting of Antigua, incentives offered to investors and offshore company services, see Offshore Company Services Limited.

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