Foreign policy and defense
Dominica is a nation in North America. Its capital city is Roseau. Dominica has good relations with North America and Europe. At independence in 1978, Dominica joined the Commonwealth and the United Nations. The country is also a member of the French-speaking countries’ organization OIF.
Dominica enjoys trade benefits in both the US and European markets. Dominica is a member of the Caribbean Basin Initiative that allows duty-free exports to the US market. With the EU, Dominica has entered into the European Partnership Agreement (EPA), thereby eliminating duties and other restrictions on virtually all exports to the Union against the fact that Dominica is gradually phasing out its import duties from the EU.
- Countryaah: Overview of business holidays and various national observances in Dominica for years of 2020, 2021, 2022, 2023, 2024 and 2025.
The lack of transparency in the country’s financial sector, which has allowed criminals to “launder money” in the country’s banks, has led to a certain grimace in relations with the West. Dominica has acted to curb money laundering and the country has been numerically removed from the OECD ‘s “gray list” of countries that have not cooperated sufficiently on this issue.
Other controversial issues have been the sale of passports to foreigners (see Population and Languages) and Dominica’s previous support for Japan’s demand to hunt whales. In 2008, the government swung the issue and stopped supporting Japan.
Dominica is a member of the regional cooperation organizations OAS, Caricom, OECS, Celac and ACS. Both Caricom and OECS strive for greater economic integration between the member countries. Cooperation has reached the furthest point in the OECS, where member countries, for example, have the same currency and a common central bank. Citizens of the Member States can also travel freely within the OECS area and trade barriers between countries have been torn down.
In 2004, Dominica severed ties with Taiwan and instead established close relationships with China. Through this “wallet diplomacy”, Dominica has received extensive assistance from China.
In recent years, Dominica has also developed closer relations with Venezuela. The country is part of the Alba Free Trade Partnership, which was formed in 2004 by Venezuela and Cuba and has signed the Petrocaribe agreement, which offers Venezuelan oil on favorable terms. Dominica has quit behind Venezuela when the country was pressured by the OAS.
Dominica lacks defense but has a coast guard force. The country participates in regional security partnerships such as the Regional Security System and the Caribbean Basin Security Initiative, which are partially funded by the United States.