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, especially nutmeg). The only significant source of revenue from Germany is tourism, an industry that recorded growth in the past year. There are direct flights between Germany and Grenada.
The destruction caused by the 2004 Hurricane Ivan (90 percent of the island was devastated, including numerous hotels) can still be felt today. It was for this reason, that the country’s economic development suffered substantial setbacks.
In development cooperation, Grenada is the only island state in the Eastern Caribbean engaged in bilateral cooperation with Germany (through the projects Integrated Climate Change Adaptation Strategies in Grenada and Reform of the Electricity Sector to Support Climate Policy in Grenada). 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. reafforestation 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 closely in Antigua and Barbuda and in the entire region against the background of the ongoing negotiations on the EU’s new partnership agreement with the states of Africa, the Pacific and the Caribbean (Post‑Cotonou Agreement).