Last updated in March 2013
Political relations are close and friendly. Cooperation takes the form of individual development cooperation and cultural projects and within the United Nations. Cooperation between the two countries is especially close and successful in the area of climate policy. On the sidelines of the United Nations Climate Change Conference in Durban in December 2011, Federal Environment Minister Röttgen pledged Grenada EUR 5 million for measures to help the country adapt to climate change. Grenada participates in the annual Petersberg Climate Dialogue, which is presided over by the Federal Chancellor.
Economic relations with Grenada are fairly insignificant. Grenada’s main exports to Germany are agricultural products. The only significant source of revenue from Germany is tourism, which suffered substantial losses as a result of the destruction caused by the 2004 Hurricane Ivan (90 per cent of the island was devastated, including numerous hotels) and on account of the global economic and financial crisis.
In development cooperation Grenada is indirectly linked with the Federal Republic of Germany through agreements between the latter and the Caribbean Community CARICOM. Joint projects focus on HIV/AIDS prevention, sustainable economic development, the promotion of renewable energy, and adaptation to climate change. In addition, Germany provides assistance through so-called microprojects and sports promotion measures.
Cooperation and trade accords exist only within the framework of the agreements between the European Union and the so-called ACP (Africa, Caribbean, Pacific) states as well as between the EU and CARIFORUM (CARICOM member states plus the Dominican Republic). Grenada, like the other countries of the region, is paying very close attention to further developments in trade with the EU in the light of the Economic Partnership Agreement (EPA) that was signed in October 2008.