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Extra info for Caribbean Rim, Antigua and Barbuda, Grenada and St. Lucia: OECD Investment Policy Reviews

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91 per cent in 2003) of the country’s GDP. Antigua is also home to the Leeward Islands Air Transport (LIAT), a major regional airline, whose main competitor is Stanford’s Caribbean Star. Natural disasters, namely four large hurricanes, have hit the country in the recent past. Hurricane Luis in 1995 led to six month long electricity blackouts, tourism facilities were closed, and real GDP declined by 5 percentage points. As a shock-prone economy highly dependent on tourism, the twinisland state has strengthened the National Office of Disaster Services, initiated public awareness campaigns, embraced stricter building codes and located underground utility cables.

Under the Aid to Pioneer Industries Act (Cap. 28 The Cabinet can decide “at its absolute discretion” about granting pioneer status to a given firm29 based on few legal requirements; namely that the industry in question is not already conducted in the country on a commercial scale; there are insufficient manufacturing facilities in Antigua and Barbuda to undertake the proposed activity; and there is favourable potential to develop such an industry or product. 30 Losses can be carried forward up to three years after the tax holiday period ends.

For more information, see IMF 2004, “Antigua and Barbuda: Report on Observance of Standards and Codes – Basel Core Principles for Effective Banking SupervisionOffshore Banking”, November. 0. 12. IMF Country Report No. pdf. 13. Arrears on debt repayment stood at USD 366 million at the end of the Bird administration. 50 OECD INVESTMENT POLICY REVIEWS – ISBN 92-64-02596-0 – © OECD 2006 I. ANTIGUA AND BARBUDA 14. C&W held monopoly on domestic and international licenses in all eight of the Organisation of Eastern Caribbean States (OECS) members economies.

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