Foreign policy and defense
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.
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.