Barbados

Location : Caribbean, island in the North Atlantic Ocean, northeast of Venezuela

Capital : Bridgetown

Languages : English 

Area : 431 sq km

Land Use : arable land: 37.21%; permanent crops: 2.33%; other: 60.46% (2001)

Natural Resources : petroleum, fish, natural gas

Population : 279,254 (July 2005 est.).

Labour force : 128,500 (2001 est.)

Labour force participation rate : 46.02% of population (2001 est.)

International Organisation participation : ACP, C, Caricom, CDB, FAO, G-77, IADB, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, ISO, ITU, LAES, MIGA, NAM, OAS, OPANAL, UN, UNCTAD, UNESCO, UNIDO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO

GDP per capita : U$16,400 (2004 est.)

GDP Real Growth Rate : 2.3% (2004 est.)

GDP sectoral composition : agriculture: 6%; industry: 16%; services: 78% (2000 est.)

Industries: tourism, sugar, light manufacturing, component assembly for export

Industrial production growth rate : -3.2% (2000 est.) 

Agriculture - products : sugarcane, vegetables, cotton

Exports : U$206 million (2002)

Exports - commodities : sugar and molasses, rum, other foods and beverages, chemicals, electrical components

Exports - partners : US 20.6%, UK 14.5%, Trinidad and Tobago 13.9%, Saint Lucia 6.9%, Jamaica 6.6%, Saint Vincent and the Grenadines 5.1% (2004)

Imports : U $1.039 billion (2002)

Imports - commodities : consumer goods, machinery, foodstuffs, construction materials, chemicals, fuel, electrical components

Imports - partners : US 35.2%, Trinidad and Tobago 20%, UK 5.6%, Japan 4.3% (2004)

QUALITATIVE TRADE PROFILE  

Barbados applies the CARICOM Common External Tariff (CET). The tariff generally applies a top rate of 20% for industrial goods and 45% for agricultural products. The structure of the tariff is based on the concept of the economic use of the goods, differentiated between inputs and final goods. Inputs are identified as primary, intermediate or capital goods, while for final goods, distinction is made between basic and non-basic categories of goods. Certain foodstuffs and other supplies are classified as basic, while all other final goods are non-basic.

In the Uruguay Round negotiations, Barbados bound all of its tariffs except on fish and fish products, albeit at ceiling rates: a gricultural products are bound at least at 100%, with some specific items bound at rates ranging to over 220%, Tariffs on non-agricultural products are bound at rates of at least 70%, with other duties and charges bound at 200%, except for certain items bound at higher rates. Barbados relies on two main instruments of import protection: tariffs and import licensing. The average MFN applied tariff is 16.5%; MFN tariffs are high on most domestically produced goods, and have increased since 1999. Domestic producers import most of their inputs duty free under an array of waivers and exemptions. At the same time, imports from CARICOM partners are, without exception, free of duty or quantitative restrictions.

Barbados aims to form the Caribbean Single Market and Economy by January 1, 2006; initially with Jamaica and Trinidad & Tobago, and then incorporating all other trading partners. It will eventually allow CARICOM goods, services, people, and capital to move throughout the Caribbean Community without tariffs and without restrictions, and to provide for a common economic and trade policy. Members would coordinate and harmonize their tax and incentives regimes, as well as their exchange rate and monetary policies, with a view to the convergence of economic performance and the sustainable development of the region.

INSTITUTIONAL FRAMEWORK 

The Ministry of Foreign Affairs and Foreign Trade is responsible for advising the Government on all trade policy matters. It also has responsibility for negotiating trade agreements and coordinating their implementation. The Ministry of Commerce, Consumer Affairs and Business Development administers import licences. Changes in import or export duties can take place by Order of the Minister of Finance, or be voted by Parliament. The Ministry of Economic Development, the Ministry of Tourism, the Barbados Investment Development Corporation (BIDC) and the Barbados Tourism Investment Incorporated (BTI) are collectively responsible for regulating, promoting and facilitating domestic and foreign investment.

As a member of CARICOM, Barbados is committed to a regionally coordinated external trade policy for the group. The MTI therefore coordinates closely with the relevant regional agencies on trade policy matters, including the Caribbean Regional Negotiating Machinery (RNM).

The Government of Barbados consults with social partners in the course of the trade policy formulation process. The major consultative bodies are the Barbados Manufacturers' Association, the Barbados Chamber of Commerce and Industry, the Barbados Private Sector Agency, the Congress of Trade Unions and Staff Associations of Barbados, the Barbados Hotel and Tourism Association, the Barbados Agricultural Society, and the Barbados International Insurance Association. The Government also seeks the views of the public at large on trade and investment-related issues, for example through Town Hall meetings.

TRADE AGREEMENTS

Bilateral

Barbados has bilateral trade agreements with Colombia, Costa Rica, Cuba, Dominican Republic, and Venezuela through the Caribbean Community (CARICOM). It is a beneficiary of the General System of Preferences schemes of Bulgaria, Canada, the Czech Republic, the European Union, Hungary, Japan, New Zealand, Norway, Poland, Russia, the Slovak Republic, Switzerland, and the United States. The Caribbean Basin Initiative (CBI) provides for duty-free access to the U.S. market for a range of Barbados' exports. Exports from Barbados also enjoy preferential access to the Canadian market through the Canadian Programs for Commonwealth Caribbean Trade, Investment and Industrial Cooperation (CARIBCAN). Through CARICOM, Barbados is currently negotiating a free trade agreement to replace CARIBCAN as well as a free trade agreement with MERCUSOR.

Regional

Barbados is one of the founding members of the Caribbean Community and Common Market (CARICOM) Treaty signed in 1973. Barbados has responsibility within the CARICOM for the implementation of the Single Market and Economy. It is currently negotiating an Economic Partnership Agreement with the EU through the CARIFORUM configuration. It is also involved in negotiations to form the hemispheric Free Trade Area of the Americas.

Multilateral

Barbados is a founding member of the WTO and extends at least MFN treatment to all its trading partners. Ba rbados also made specific commitments under the General Agreement on Trade in Services (GATS) in 21 subsectors, including certain professional services and computer services, business services, re-insurance, courier services, and entertainment services

NEED PRIORITIES  

Priority areas for Barbados are; assisting national working groups in understanding the multilateral system and the nature of the obligations arising thereof; development of consultative mechanisms between government agencies and the private sector; capacity building of the private sector on trade matters; assistance in applying safeguard provisions under the Agreement on Agriculture; Agreement on Safeguards and trade impact studies of Barbados' agriculture, manufacturing and service sectors.

Source: Commonwealth Yearbook 2005, World Fact Book, WTO Secretariat.