Saint Lucia A. Definitions and sources of data Foreign direct investment (FDI) data are compiled by the Eastern Caribbean Central Bank. The FDI definition as recommended in the Balance of Payments Manual: Fifth Edition of the International Monetary Fund is applicable to this economy. The Government of Saint Lucia encourages local and foreign investment in its main economic sectors including manufacturing, tourism, agriculture and services. Under the Fiscal Incentives Act No. 15 of 1974, fiscal incentives are granted to enterprises to facilitate both local and foreign investment in the productive sectors of the economy. These incentives include up to 15-year profits tax holiday, duty free entry of raw materials, machinery and spare parts and unrestricted repatriation of profits and capital. As a Caribbean Basin Initiative (CBI) beneficiary economy that has signed a tax information exchange agreement (TIEA) with the United States, Saint Lucia is eligible for below market rate financing for eligible products through a 1986 amendment of section 936 of the United States tax code. Saint Lucia is a signatory of the CBI, CARIBCAN, Lomé IV Convention and the Caribbean Common Market (CARICOM). These treaties deal with duty free entry of products in different regions of the world, namely the United States, Canada, the European Union and CARICOM members. To be eligible for duty free entry, products have to meet different standards, depending on the treaty involved.
B. Statistics on FDI and the operations of TNCs
Table 1. Summary of FDI Variable Inward Outward 1. FDI flows, 2000-2003 (annual average) 35.2-0.04 2. FDI flows as a percentage of GFCF, 1998-2001 (annual average) 35.4-0.1 3. FDI stock, 2003 890 0.4 4. FDI stock as a percentage of GDP, 2003 119.9 0.05 Sources : Based on tables 3 and 4 and UNCTAD, FDI/TNC database.
Table 3. FDI flows, by type of investment, 1976-2003 Inward investment Outward investment Reinvested Reinvested Year Equity earnings Other Total Equity earnings Other Total 1976.... 3.0 3.0........ 1977.... 13.0 13.0........ 1978.... 20.6 20.6........ 1979.... 26.0 26.0........ 1980.... 30.9 30.9........ 1981.... 38.2 38.2........ 1982.... 26.5 26.5........ 1983.... 10.0 10.0........ 1984.... 12.0 12.0........ 1985.... 17.0 17.0........ 1986 14.5.... 14.5........ 1987 15.0.... 15.0........ 1988 8.5 3.3 4.6 16.4........ 1989 17.0 3.8 5.9 26.6........ 1990 7.1 7.7 30.0 48.8...... 0.2 1991 12.8 14.8 30.2 57.7...... 0.3 1992 4.1 15.2 21.6 40.9...... 0.2 1993 11.3 12.9 10.0 34.2...... 0.2 1994 6.2 16.0 10.3 32.5...... 0.2 1995 6.6 25.1 1.1 32.8...... 0.2 1996 4.1 15.6-1.3 18.4...... - 0.4 1997 4.0 12.7 31.2 47.8...... 0.1 1998 3.2 16.1 64.1 83.4...... - 0.4 1999 72.5 11.9-1.5 82.8...... - 0.1 2000 31.6 16.0 7.3 54.9...... 0.1 2001 9.4 15.1-2.1 22.4...... - 0.1 2002...... 31.4...... -0.05 2003...... 32.0...... -0.04 Sources: UNCTAD, FDI/TNC database. FDI inflows are based on information from Bank of Saint Lucia for 1990-2003 and International Monetary Fund, Balance of Payments CD ROM, June 2003, for 1976-1989. FDI outflows are based on information World Bank, World Development Indicators 2003 CD-ROM, for 1990-1991 and 1995-2000 and UNCTAD estimates.
Table 4. FDI stock, by type of investment, 1980-2003 Year Equity Inward investment Intracompany Reinvested earnings loans Total Equity Outward investment Intracompany Reinvested earnings loans Total 1980...... 93.5........ 1981...... 131.7........ 1982...... 158.2........ 1983...... 168.2........ 1984...... 180.2........ 1985...... 197.2........ 1986...... 211.7........ 1987...... 226.7........ 1988...... 243.2........ 1989...... 269.8........ 1990...... 318.6...... 0.2 1991...... 376.3...... 0.5 1992...... 417.2...... 0.6 1993...... 451.4...... 0.8 1994...... 483.9...... 1.0 1995...... 516.7...... 1.3 1996...... 535.1...... 0.9 1997...... 582.9...... 1.0 1998...... 666.3...... 0.6 1999...... 749.1...... 0.5 2000...... 804.0...... 0.6 2001...... 826.4...... 0.4 2002...... 857.7...... 0.4 2003...... 889.8...... 0.4 Sources: UNCTAD, FDI/TNC database. Notes: Inward stock is an accumulation of inflows since 1976. Outward stock is an accumulation of outflows since 1990.
Table 6. FDI flows in the host economy, by geographical origin, 1990-2002 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 France 1.5 - - - 0.2 - - 0.3 - - 2.8-10.4 United States - - - - - - - - - - - - 5.0-1.0 Note: Data are based on information reported by the economies listed above. Table 9. FDI flows abroad, by geographical destination, 1990-2002 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 United States - - - - - - - - 1.0 - - - 1.0 1.0 Note: Data are based on information reported by the United States. Table 12. FDI stock in the host economy, by geographical origin, 1990-2002 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Republic of Korea - - - - - 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 United States - - - - - - - - 39.0-24.0 19.0 17.0 Note: Data are based on information reported by the economies listed above. Table 15. FDI stock abroad, by geographical destination, 1990-2002 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Brazil - - - - - 0.9 - - - - - - - United States - - - - - - - - - - - - 1.0 - Note: Data are based on information reported by the economies listed above. Table 23. The number of affiliates of foreign TNCs in the host economy, by geographical origin, 1990-2001 Economy 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Republic of Korea - - - - - - 2 2 2 2 2 2 United States 3 3 3 3 3 3 3 3 3 3 3 - Note: Data are based on information reported by the economies listed above.
Tables 30,35,40,45,50,55. Assets, employment, wages and salaries, sales, value added and profits of affiliates of United States TNCs in Saint Lucia, 1990-2000 (Millions of dollars and thousands of employees) Table no. Variable 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 30 Assets - - - - - - - - 123.0-113.0 35 Employees 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 40 Wages and salaries 1.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 45 Sales 39.0 36.0 36.0 40.0-47.0 49.0 53.0 50.0 50.0 59.0 50 Value added - - - - 24.0 23.0 21.0 24.0 24.0-12.0 55 Profits before taxes 8.0 3.0 4.0 6.0-6.0 3.0 - - 33.0-7.0 Notes: Data are based on information reported by the United States. Data for value added refer to majority-owned affiliates only.
C. Legal framework for FDI I. National framework Fiscal Incentives Act No. 15, 1974 Source: www.stluciandc.com/aboutus.htm, 4 March 2004 Customs Freezone Act 1983 Customs Act 1967-1985 Customs Duties (Dumping and Subsidies) Ordinance 1964, 1967 Trade Licence Act 1985 Sale of Produce Ordinance (Chp 27), 1959-1967 Petroleum Act (1990).ct (1958) CAP.54 Trade Licence Act 1985 Sale of Produce Ordinance (Chp 27) 1959-1967 External Trade Act 1968 Distribution and Prices of Goods Act 1967 Price Control Order 1984 II. International framework St. Lucia is a party to the following multilateral and regional instruments: Paris Convention for the Protection of Industrial Property, 1995 Source: http://www.wipo.org/treaties/general/parties.html, 24 Feb 2004 Convention establishing the Multilateral Investment Guarantee Agency (MIGA) of 11 October 1985 Source: Depository of the original convention: World Bank; International Legal Materials, vol. XXIV (November 1985), p. 1505 Convention on the Settlement of Investment Disputes Between States and Nationals of Other States 1965, signed 4 June 1984 (effective 4 July1984) Source: http://www.worldbank.org/icsid/constate/c-states-en.htm, 24 Feb 2004
Law 170 ratifying Agreement on Trade-Related Aspects of Intellectual Property Rights 1994, (effective 1 January, 1995) General Agreement on Trade in Services 1994, (effective 1 January, 1995), Fourth Protocol to the General Agreement on Trade in Services 15 February 1997, Fifth Protocol to the General Agreement on Trade in Services 12 December 1997 The ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy, adopted 16 November 1977 The Caribbean Community and Common Market (CARICOM ) established by the Treaty of Chaguaramas 1973 East Caribbean States Development Agency Act 1990 Source: www.stluciandc.com/aboutus.htm, 4 March 2004
D. Sources of information Official 1. Eastern Caribbean Central Bank: http://www.eccb-centralbank.org/. Secondary 1. Crick, Anne P., Internal marketing of attitudes in Caribbean tourism, International Journal of Contemporary Hospitality Management, 2003, vol. 15, No 3, p. 161. 2. Dujon, Veronica, Communal property and land markets: agricultural development policy in St. Lucia, World Development, vol. 25, No. 9, September 1997, pp. 1529-1540. 3. Invest in Eastern Caribbean: St Lucia, country background for investors, (http://www.caribisles.org/caribbean/inv-07.htm). 4. Jayawardena, Chandana and Diaram Ramajeesingh, Performance of tourism analysis: a Caribbean perspective, International Journal of Contemporary Hospitality Management, 2003, vol. 15, No. 3, p. 176. 5. St. Lucia National Development Corporation, A guide to investing in St. Lucia, (http://www.stluciandc.com/investment%20guide_updated%20august%202001. pdf). 6. Tuitt, Kathleen, Small tigers of the Caribbean, Bobbin, November 1991, vol. 33, No. 3, pp. 52-56.