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On evoking the economy of Martinique, it is necessary to take into consideration its colonial past, essentially centred on agricultural activity. The agricultural sector of the island is in a paradox situation today: agriculture is extremely visible in terms of workforce and exploited surface, as well as of typical products of the region (sugar, rum, banana), yet accounts for only a feeble 4% of the island?s GDP.

This antinomy is due to an important period of transition begun in the early 80s: international competition left its mark on the exploitation of the island?s foodstuffs, and Martinique, not being able to face up to cheap foreign produce flowing in from the end of the 19th century on, has still continued to exploit its own resources.

As a general rule, the DOM (French Overseas Departments) are endowed by a great number of derogations, and undergo highly complex legal arrangements. Martinique holds a department status, yet is regarded as ?export territory? in terms of commercial exchange. A metropolitan company selling goods to Martinique is considered an exporter, and is thus exempt from paying VAT. Guyana, Saint-Martin and Saint-Barthelemy do not levy VAT, and on Martinique its rate is between 2.2 and 8.5%. All goods entering Martinique fall into the tax category of ?sea toll?, which constitutes an important source of income for the community. The amount of this toll is stated by the Regional Council depending on the category of the products concerned, though it only rarely surmounts 30%. The collected sum is distributed among the communities (accounting for about 40% of their fiscal income). The sea toll is complemented by another tax: the additional due (between 1 and 2.5%), conditions of which remain dependent on the Regional Council, which is its direct beneficiary.

All in all, it is difficult to speak of a structured economy, as indices tend to reveal a sort of ?artificial profile?, fuelled primarily by a sole deciding factor: consumption. This, of course, implies the existence of a certain monetary volume, which is to be provided before passing on to the circulatory phase, possessing countless sources between the private and public sectors. The list is a long one, so only a few, well-known examples will be mentioned herein: taxes on imported products, a fiscal system with obvious advantages on certain socio-professional categories, tax optimisation and subsidies, a high rate of public transfers, extended holidays, etc.

Agriculture

The island chose to develop a plantation-style agriculture, of which the trio of sugarcane, banana and rum remains a fundamental element to our days, though decreasing exports from 2002 on have been directly linked to banana and sugarcane networks. Taking into consideration the ever-changing market, authorities have launched several timid attempts to diversify production, backed by the Regional Council in the period between 2000 and 2006.

Banana

Sugarcane

Fishing

This sector is characterised by small-scale, local organisation, both in the fields of fishing and retailing. Statistics are hard to assess, but it is more than likely that local consumption is significantly higher than local production (approximately 6,000 tons).

Industry

Services

The tertiary sector is the undisputed leader of local economy, accounting for 82.2% of the GDP and 80% of total workforce. Hotels are of utmost evidence, but a good level of services is visible all around the island, most particularly in the sector of Fort de France/ Lamentin. The towns have extended to their largest, land is scarce and traffic jams so intense that property developers are on the lookout for new grounds, in the vicinity of Trinite and Riviere Salee (take, for instance, Genipa, which is one of the most recent developments). However, as the island remains under strong French influence today, the service sector is often obviously connected to the food industry.

Tourism