Dominica is a Small Island Developing State (SIDS) which is particularly vulnerable to adverse climatic conditions, as well as to social, economic and environmental shocks. While its traditional economy is based on banana exports, recent changes in the market have led to the development of service sectors, including tourism, offshore medical schools and offshore finance. However, the lack of infrastructures, including the absence of a large international airport, limits the potential of those sectors.
EU cooperation 2014-20
Under the 11th EDF, €4 million are allocated to assist the government in developing the sector of renewable energy and energy efficiency.
EU cooperation 2008-13
Under the 10th EDF, Dominica received €5.7 million which was focused on the General Budget Support Programme to assist Dominica in stabilising unbalanced public finances and to reduce its high debt.
As a member of the Caribbean Community (CARICOM) and the Forum of the Caribbean Group of African, Caribbean and Pacific ACP States (CARIFORUM), Dominica benefits from regional programmes funded under the Caribbean Regional Indicative Programmes. Dominica is also a signatory of the CARIFORUM-EU Economic Partnership Agreement (EPA), a comprehensive free trade agreement with a strong focus on development cooperation.