Business Environment

Investor considerations

• Generous incentives for economic development

• Good labor relations

• Membership in trade blocs

Industrial Climate

The economy of Montserrat is dominated by Public Sector led investments and projects. This is attributed to the need to rebuild. The Government takes a positive attitude towards diversification  of the economy. The present thrust is towards the development of tourism, manufacturing, agricultural diversification, informatics and e-commerce. The passing of legislation to accommodate offshore companies, including banks, trusts, provides for the incorporation of such companies, but this has not been a major contributor to the economy. 

Framework of industry

The public utilities and the airport and seaport are owned and run by the government. 

Montserrat’s business is run by entrepreneurs who are largely local persons, the hotel and guest houses are locally owned. Villa tourism which comprises a significant portion of the rooms available for the tourist sector is owned mainly by ex-patriots of American, Canadian and British origin.  Investment is actively encouraged in this area the purchase of property requiring an Alien Land Holding License.

Aims of government policy

The main thrust of government industrial policy is to encourage all sensible development by offering a package of incentives to locals and foreigners whose investment and expertise are recognized as essential.

Economic development plans

Economic and fiscal policy is geared toward achieving overall growth of the economy. The package of incentives offered by the Ministry of Finance and Economic Development, subject to the approval of the Executive Council, covers duty-free imports and tax holidays and exemptions from other local taxes and levies.

Trends toward nationalization/privatization                                         

The trend is towards the reduction of the level of government intervention and ownership.

Financial Services

Government policy is to encourage the development of Montserrat as a financial center. Legislation being put in place to ensure international conformity.

Labor-management relations

There is a shortage of skilled labor and this problem has been overcome by the granting of work permits to non-nationals. The Government facilitates the active recruiting of skilled labor both professional and otherwise to meet the demands.

Overseas trade relations-Membership in trade blocs

United States   

Products exported to the United States from Montserrat enjoy preferential treatment under the Generalized System of Preferences (GSP), the U.S. Tariff Provisions 806 and 807 and the Caribbean Basin Initiative (CBI). 

Canada

Under Caribcan, duty-free access to the Canadian market is provided for goods imported from Montserrat. Duty-free access, however, does not apply to methanol, lubricating oils, textiles, clothing, footwear, luggage, handbags, and leather garments. Nevertheless, these items are subject to most-favored-nation status in cases where there are preferential rates.

Europe

As a British dependent Territory and a member of the Overseas Countries and territories (OCT). Montserrat has privileged access to the European Union.                                                                          

Caribbean                                                                                                                          

Montserrat based manufacturers have preferential access to the regional markets of over 5 million people in the Caribbean Common Market (Caricom). Locally produced or manufactured goods may be imported duty-free into any of the 12 Caricom member states, subject to certain value-added criteria.

Exports

Export-oriented industries qualify for 5 to 10 year tax holiday and duty-free imports in accordance with the Fiscal Incentives Act, 1975. Tax holidays may be granted for longer periods depending on the circumstances.