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. Until March 2020, there were direct flights between Germany and Grenada.
In development cooperation, Grenada is the only island state in the Eastern Caribbean engaged in bilateral cooperation with Germany (through the project Climate Resilience in Grenada’s Water Sector). Through agreements between Germany and the Caribbean Community CARICOM, the two countries are also engaged in joint projects on the promotion of renewable energy and adaptation to climate change (e.g. reforestation of mangrove forests). 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). The further development of trade relations with the EU is being followed very keenly in Grenada and the entire region against the background of the upcoming signing of the EU’s new partnership agreement with the states of Africa, the Pacific and the Caribbean (Post-Cotonou Agreement).