Political relations are close and friendly. Cooperation between the two countries takes place in the form of individual development cooperation and cultural projects and within the United Nations. It is especially trusting and successful in the area of climate policy.
Economic relations with Grenada are relatively insignificant. Grenada’s main exports to Germany are agricultural products (including cocoa and spices, particularly nutmeg). The growing number of German holidaymakers generate considerable revenue. In addition, Germany provides assistance through micro-projects and sports promotion measures.
A tax information exchange agreement with Grenada entered into force in November 2013. Other cooperation and trade accords exist within the framework of the agreements between the European Union and the ACP (Africa, Caribbean, Pacific) states as well as between the EU and CARIFORUM (CARICOM member states plus the Dominican Republic). Grenada and the states of the Caribbean hope that the signing of the EU’s new partnership agreement with the states of Africa, the Pacific and the Caribbean (Post-Cotonou Agreement) will bring a further intensification of relations with the EU.
In development cooperation, Grenada is the only island state in the Eastern Caribbean engaged in bilateral cooperation with Germany (to improve climate resilience in Grenada’s water sector). Through agreements between Germany and the Caribbean Community CARICOM, the two countries are also engaged in joint regional projects on sustainable economic development, the promotion of renewable energy, adaptation to climate change and the promotion of biodiversity.
Germany supports the CARICOM states in their efforts to combat the proliferation of small arms through the Caribbean Firearms Roadmap.