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trade policies by sector
1. Compared with most other developing countries, Barbados is a high-cost location for the production of goods, except for some niche products. Without protection from import competition, most of the few existing activities in agriculture and manufacturing would likely contract significantly. On the other hand, the protection granted to the production of goods arguably may have weighed on the international competitiveness of service activities, for example tourist catering, by restricting access to the most competitively priced inputs.
2. The agriculture sector contributes only a small and declining share to GDP and employment, despite the protection it receives. Barbados no longer administers a tariff quota regime for agricultural products, instead it applies the in-quota bound rates to the respective imports. In 2002, Barbados invoked price-based special safeguard actions for 23 agricultural products. Two state entities have monopolies on the importation of chicken and turkey wings, and raw sugar. 3. Most of Barbados' sugar production is exported to the European Communities under unilateral preferential arrangements. The sugar industry suffers from high costs that exceed world prices. The industry has shrunk considerably in recent years due to the reduction in the guaranteed price offered by the EC; efforts are under way to help it adapt to envisaged changes in access conditions to the EC market.
4. The manufacturing sector is also small but production and exports of manufactured goods have grown steadily since 2002. Manufacturing enterprises are actively encouraged through a number of fiscal incentives.
5. The services sector is the cornerstone of Barbados' economy, and its main source of foreign exchange. Despite the importance of services to its economy and the general de facto openness of its
foreign investment regime, Barbados has scheduled only a limited number of GATS commitments (21 of the 160 subsectors). Barbados submitted an initial services offer in the negotiations on services under the Doha Development Agenda.
6. Barbados operates separate regimes for onshore and offshore banking and insurance. All commercial banks operating domestically are predominantly foreign owned. In view of the oligopolistic nature of the market, the Central Bank sets a minimum deposit rate for onshore banks, and, between 2001 and 2003, maintained temporary indicative rates of interest on loans. Since 2002, the spread between deposit and lending rates has decreased. International (offshore) financial services companies benefit from minimal taxes and are not subject to exchange controls. They may conduct business only with non-residents (except resident international business companies) and with foreign currency or assets.
7. During the period under review, Barbados has liberalized its telecommunications sector ending, earlier than initially intended, the monopoly held by the private-sector incumbent. New legislation has come into force and new institutions have been created inter alia, to foster competition.
8. The Government owns Barbados' basic air and maritime infrastructure, and during the review period has taken steps to operate it on a more commercial basis. Private providers are present in ground handling at the airport, and in certain port services. Barbados administers an international ship registry.
9. Professional services are governed by an overarching law and profession-specific legislation. For foreign persons to practice law and architecture in Barbados, legislation requires that reciprocity must be provided to Barbadian citizens in third countries. Efforts are under way at the CARICOM level to develop and harmonize requirements for the licensing and regulation of certain professions. (2) AGRICULTURE
110. In 2006, agriculture contributed 2.7% to GDP. In 2006, 4,700 people were employed in 2agriculture and fisheries, representing just over 3.6% of the total employed workforce in Barbados.
Barbados produces a variety of vegetables and root crops as well as livestock and diary, most of 3which is domestically consumed. Barbados' main agricultural export is sugar.
11. The Minister of Agriculture and Rural Development is responsible for agricultural policy in Barbados. There is currently no general legislation governing the sector as a whole, however the authorities indicate that the first draft of a Sustainable Agricultural Development Bill is to be considered in June 2008.
12. A Rural Development Commission (RDC) has responsibilities for improving social amenities and assisting in the establishment of cottage industries in rural areas, as well as helping small farmers 4in training, investment, engineering and machinery, production, and marketing. Its major aim is to
bring relief to the poor in rural areas. It allocates land under Government control to persons wishing to take up farming and is also involved in rural enterprise development. It manages the Rural Enterprise and Livestock Development Funds (see below).
13. The Barbados Agricultural Development and Marketing Corporation (BADMC) has been notified to the WTO as a State Trading Enterprise (see Chapter III(4)(iv)). It provides farm support services to the non-sugar agriculture sector, collects agricultural statistical data, and provides irrigation services to small farmers. The BADMC also administers the Land for the Landless Programme, which seeks to make unused arable lands, in public or private ownership, available to farmers. It provides cold storage facilities for local livestock farmers, and fabrication and meat 5cutting services at competitive rates. The BADMC holds a monopoly on the importation of chicken
and turkey wings for wholesale and retail sale. In practice, however, its importation of chicken wings was suspended in 2006. Manufacturers may import wings directly.
14. According to the authorities, consideration is being given to institutional reform of the Central Agriculture Ministry, the BADMC and RDC, to promote enterprise development, value-added products, local foods, and forging of greater links with the tourism and manufacturing sector, and to
1 Government of Barbados (2006), Appendix Table 4. In 2006, food crops contributed
BDS$64.2 million to GDP; livestock BDS$49.5 million; sugar BDS$44.4 million; other cultivation BDS$0.6 million. 2 Government of Barbados (2006), Table 3.5-1. 3 In 2006, the main agricultural commodities produced in Barbados were (tonnes between parentheses): sugar (33,700); poultry (13,571); milk (5,570); pork (2,637); sweet potatoes (2,201); eggs (1,987); cucumbers (1,324); tomatoes (1041); yams (794); cabbage (642); okra (525); pepper, sweet (477); onions (444); lettuce (439); cassava (375); beans, string (371); carrots (318); melon (310); turkey (275); beef and veal (182); eddoe (157); pepper, hot (136); pumpkins (121); beets (92); mutton (79); peanuts (21); and cotton (15). Government of Barbados (2006). 4 Rural Development Commission Act, CAP. 238 of the Laws of Barbados. Viewed at:
http://www.caricomlaw.org/docs/Rural%20Development%20Commission.pdf. 5 Government of Barbados (2006).
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enhance competitiveness. It is anticipated that some of these institutional reforms would be incorporated into the Sustainable Agricultural Development legislation.
(ii) Policy objectives and measures
15. The Government of Barbados sees agriculture as making an important contribution to the social and environmental fabric of the country, as well as generating economic benefits. During the period under review it has sought to preserve the sector and increase its contribution to GDP within 6WTO rules. The Government has been focusing on three main priorities: the attainment of food security; the full use of modern technology and research within the sector; and the creation of an environment that encourages agri-processing. Efforts will be concentrated in developing greenhouse technology (see below), promotion of value-added sea island cotton garments, as opposed to exporting lint; and the value-added production of beef burgers through the BADMC. 16. The main instrument of border protection is the tariff. Barbados' average applied tariff on agricultural products was 33.7% (WTO definition) in 2007 (Table III(3)). Applied rates ranged from zero to 216%; the average bound tariff on agricultural products was significantly higher than the applied rate, at 110.9%. The products attracting tariff rates of over 100%, include meat, milk, eggs, vegetables, and some fruits. Between 2005 and 2007, a Cess Tax was levied on extra-regional imports (see Chapter III(2)(v)), which combined with higher applied tariffs on certain processed food products has contributed to rapidly rising prices for food products.
17. Barbados notified the WTO in 2004, that it did not provide export subsidies on agricultural products during 2001/02. Barbados has reserved the right to use the special safeguard mechanism for the 36 products for which it has a tariff quota regime. It has notified the WTO it invoked price-based 7special safeguard actions, commencing in 2002, for 23 products. The authorities indicate these
actions are no longer in force.
18. With respect to attaining the objective of food security, government strategy has been to encourage output of a number of commodities: poultry; fresh pork; table eggs; hot peppers; onions; cucurbits (specifically cucumbers, pumpkins, melon, squash, and christophene); root crops (sweet potatoes, yams, cassava, and eddoes); sweet peppers; fresh herbs (including chives, parsley, marjoram, and thyme); tomatoes; beans; crucifers (specifically cabbage, Chinese cabbage, cauliflower, and broccoli); okras; and fresh milk. The Government has reported that there was a 21% decline in consumer spending on imports of these commodities between 2005 and 2006. 19. Other Government initiatives over the review period have been to encourage a closer link between agriculture and tourism, through the promotion of Barbadian foods in hotels, and the development of a "Bajan haute cuisine". The Ministry of Agriculture and Rural Development is 8coordinating more closely with the Barbados Hotel and Tourism Authority for this purpose.
Government funding of BDS$2 million (US$1 million) has been earmarked for upgrading government facilities for research, production, and training in agricultural practices such as greenhouses and hydroponics. In order to assist small farmers in their cultivation requirements, the Government has committed a total of BDS$3.7 million (US$1.85 million) for the purchase of tractors
6 Government of Barbados (2003). 7 WTO documents G/AG/N/BRB/13, 16 March 2004 and G/AG/N/BRB/14, 16 March 2004. The
products subject to safeguard actions were: turkey backs and necks; turkey wings; other meat of swine, fresh, chilled or frozen; tomatoes; onions; shallots; cauliflower; cabbages; cabbage head lettuce; other lettuce; carrots; beets; aubergines; sweet peppers; sweet corn; cantaloupes; other melons; chicken sausages (canned); other chicken sausages; ham and cuts thereof; and luncheon meat. 8 Government of Barbados (2007).
9and other farming equipment, to be leased or bought by tractor operators and farmers themselves. In
both of the above cases, at end May 2008, the money had not yet been spent.
20. In addition to non-sector-specific incentive schemes (Chapter III(4)(ii)) a number of incentive schemes have been developed to assist the agriculture sector, through loans, grants, and duty-free concessions (Table IV.1). For some of these initiatives, there has been limited take-up; for example, at end May 2008, there had been one application for the water harvesting rebate, and no applications for the tax holiday for technology-related investments. In addition, there had been no disbursements from the Scotland District Investment and Development Fund, which has been capitalized at 10BDS$2.5 million.
21. The value of up-front import duty concessions provided in 2005-06 totalled BDS$6.5 million (US$3.25 million). Over the same period rebates (drawback) on agricultural incentives amounted to BDS$774,905 (US$ 387,453).
Table IV.1 Agricultural incentive schemes
Incentive scheme Description Eligibility
Agricultural Duty-free concessions on: planting material; machinery and equipment; Qualifying farmers and farmers Incentives agricultural chemicals; veterinary medicaments; hand tools; irrigation organizations Programme machinery and equipment; organic farming; various types of vehicles (under certain conditions); as well as special inputs. Technical assistance funding (for 75% of the respective activity) and working capital funding are also available. A re-tooling rebate also provides duty free concessions Livestock Loans for up to BDS$50,000, with a minimum interest rate of 4% per year, Start-up or existing vegetable, Development with maximum repayment periods of up to ten years food crop or livestock enterprises Fund located in rural Barbados; borrowers' net worth must not exceed BDS$400,000 Agricultural Revolving fund enabling farmers and agri-processors to acquire their monies Registered farmers Payment speedily after distributing produce to local hotels or exporters for shipment to Guarantee Fund overseas buyers (this instrument has not been used) Agricultural Grants and loans for improved development of agriculture, including sugar, Registered farmer Development cotton, livestock, fisheries, and horticulture; grants provided for institutional Fund strengthening, i.e. cotton research, training, competitiveness enhancement; loan fund of BDS$27 million, with current interest rate of 6.5% Tax holiday for 15-year tax holiday for organizations investing in high-end technology to Registered farmers in business for technology related reduce production costs the duration of the tax holiday investments Water harvesting 50% rebate on the cost of establishing water harvesting facilities Registered farmers engaged in rebate livestock production Scotland District Grant funding; 10-year tax holiday for investments in fruit production, Agricultural and agri-related Investment and processing and marketing; an orchard development subsidy to promote the projects in the Scotland District Development production of approved fruit trees and the overall afforestation of the District Fund (BDS$5 per tree for a maximum of 1,000 trees per farmer); land cultivation scheme Cane Replanting Incentive payment of BDS$550 per acre for force-back planting and Sugar cane farmers, with Incentive Scheme BDS$450 per acre for conventional planting of sugar cane conditions related to plant density and cleanliness of fields
Table IV.1 (cont'd)
9 Government of Barbados (2006b). 10 Ministry of Commerce, Consumer Affairs & Business Development (2008).
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Incentive scheme Description Eligibility
Dairy industry Rebate of 25% for the components of diary housing up to a maximum of Dairy farmers incentives BDS$40,000; rebate of 40% of the cost of components for a milking parlour up to a maximum of BDS$60,000 Cotton Research Grant funding for agronomic research Research institutions and Development Fund
Source: Government of Barbados (2007, 2006, and 2003), Economic and Financial Policies of the Government of
Barbados. Viewed at: http://www.foreign.gov.bb/Userfiles/File/Financial%20Statement%20-%202007%20
March%2014,%202007.pdf; http://www.barbados.gov.bb/Docs/Budget2006.pdf; http://www.vob929.com/html/
budget/2003/part7.cfm; and information provided by the authorities.
(iii) Key sectors
1122. In 2006, sugar production contributed 1% of Barbados's GDP. Sugar production used to be
a key economic activity for Barbados but has diminished considerably; production figures have fluctuated since 2002, showing no clear trends. In 2006, 16,500 acres of sugar cane were harvested, and 348,300 tonnes of sugar produced: 62% was produced by independent plantations; 37% by the 12state-owned Barbados Agricultural Management Company Co. Ltd. (BAMC); and 1% by small
23. The vast majority of sugar produced in Barbados is exported: some 94% in 2007, 96% of sugar produced was exported in 2006, and 90% in 2005. In 2006, exports of sugars and sugar confectionary totalled US$19.6 million, and the United Kingdom was the destination for 99% of these 13exports (some US$19.4 million). Under the Sugar Protocol (Protocol 3 of the EC/ACP Lomé
Convention), Barbados' exports of cane sugar have been guaranteed entry within a set quota of 31,097 tonnes (white sugar equivalent) at a fixed price of ?523.7 per tonne, which is higher than the world
price for sugar. In December 2005, the Commission implemented a programme of price cuts over a four-year period to reduce the guaranteed price to ?335 per tonne. The Barbadian authorities
estimated that Barbados would stand to lose more than BDS$30 million (US$15 million) over the 14four-year period.
24. As set out in the CARIFORUM-EC Economic Partnership Agreement, reached in December 2007, the Sugar Protocol will be terminated on 30 September 2009. From 1 October 2009 all exports of beet sugar or sugar cane from CARIFORUM states will enter the EC duty free and quota free. As an interim step, for the marketing year 2008-09, the EC has committed to open an additional tariff rate quota at zero duty for 60,000 tonnes of sugar cane or beet sugar originating in the 15CARIFORUM states, half of which is reserved for the Dominican Republic.
11 Government of Barbados (2006). 12 The BAMC was created in the 1990s as part of an initiative to restructure the sugar industry due to high levels of debt incurred by the sugar plantations. The BAMC's responsibility has been to manage the land and factories producing sugar until these debts have been repaid; by 2007, some independent plantations had reverted to self-management status. Under the Barbados Agricultural Management Co. Ltd (Sugar Bonds Guarantee) Act Cap. 255 of the Laws of Barbados, bonds issued by the BAMC are guaranteed by the Government. 13 COMTRADE data. 14 Government of Barbados (2006b). 15 CARIFORUM-EC EPA. Viewed at: http://www.normangirvan.info/wp-content/uploads/ 2008/01/full-economic-partnership-agreement-text-with-hyperlinks.doc.
25. Under the Sugar Industry Act, the Minister of Agriculture and Rural Development may determine the maximum quantities of sugar and molasses that may be exported in any year, and issue 16export permits for these products. The Barbados Agricultural Management Company (BAMC) has
a monopoly on the importation of bulk raw sugar, and also imports refined sugar (not under monopoly). Imports of raw cane sugar are subject to a BDS$0.90 per tonne levy under the Sugar 17Import Levy Act. Under the Revised Treaty of Chaguaramas, Barbados, as a producer of unrefined sugar cane, may apply quantitative restrictions on imports of unrefined sugar cane from any other part 18of the Community. At end May 2008, Barbados has not applied any such measures.
26. The Government of Barbados has introduced a Cane Industry Restructuring Project aimed at moving from the production of low-value raw sugar, to a sustainable high value multi-product industry. In this regard, there are plans to install by 2009 a multi-purpose plant capable of producing sugar, electricity, and ethanol. In addition, Barbados has started selling Barbados sugar as a branded product both on the domestic market (as Muscavado Gold) and overseas (as Plantation Reserve), at a 19significantly higher price (BDS$17 per lb), than bulk sugar (BDS$1 per lb).
(b) Dairy products
27. Pine Hill Dairy (PHD) is the sole purchaser of fresh milk from farms in Barbados. The authorities indicate that there are no legal restrictions on who may export or import of milk and milk products, and Pine Hill Dairy does not have a de facto monopoly on imports or exports.
28. A quota system is in operation, whereby farmers may sell milk to the PHD in fixed ratios depending on market supply. The PHD pays the farmers a premium price for pasteurised milk sold within the quota system, and lower prices for out-of-quota milk used in other products, such as yoghurt, UHT milk, and ice cream. A shortfall in the milk supply in 2006 prompted discussions as to whether this quota system should remain, and whether it would be appropriate for fresh milk to be imported to bridge this shortfall until such time as local supply matches demand. 29. The Government requires that 60% milk-needs of the School Meals Service and all other 20Government institutions must be met from local milk production. Milk is also one of the targeted
areas in which the Government is seeking full self-sufficiency (see section (ii) above). In this regard, and given the production shortfall in the industry, the Government announced a package of incentives in 2006 for diary farmers (see Table IV.1) as well as government funding: to establish a Dairy Board 21(BDS$250,000); to develop a business plan for the industry (BDS$250,000); and to provide for 22market research and development (BDS$300,000). In addition, in 2007, the Government announced
that financing would be provided through the Agricultural Development Fund to assist farmers to import more stock. According to the authorities, 75% of local demand for milk (some 4.5 million kg) was produced domestically in 2006.
16 Sugar Industry Act, CAP. 270 of the Laws of Barbados. Viewed at: http://www.caricomlaw. org/doc.php?id=540. 17 Sugar Import Levy Act, CAP. 271 of the Laws of Barbados. Viewed at:
http://www.caricomlaw.org/docs/Sugar%20Imports%20Levy.pdf. 18 Revised Treaty of Chaguramas, Schedule II, Marketing Arrangements for Unrefined Sugar Cane. Viewed at: http://www.sice.oas.org/Trade/caricom/caric8b.asp. 19 Government of Barbados (2007). 20 Government of Barbados (2003). 21 The requisite legislation to establish the Dairy Board has not yet been passed. 22 Government of Barbados (2006b).
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(c) Livestock and meat
30. As mentioned, the BADMC holds a monopoly on the importation of chicken and turkey wings for wholesale and retail sale. It's responsibilities are to regulate prices in the domestic market (the mark-up is determined on the difference between the c.i.f. price and the domestic price) and protect domestic producers by controlling imports. A tendering system is used whereby overseas suppliers are invited to tender. At March 2007, Barbados' poultry industry supplied 80% of the country's requirements, and the government was committed to increasing this to 100%. With this in mind the Government has proposed that a Poultry Board be established, however, no relevant legislation has been passed to date.
31. Pork production is another area in which the Government is seeking self-sufficiency, and supply at least 50% of the processing industry's requirements. Pork production increased by 87% between 2002 and 2007, and the industry was producing 60% of local demand for fresh pork. To encourage production to meet self-sufficiency targets, the Government is to provide BDS$300,000 for 23the development of a pig artificial insemination programme.
32. Various poultry and meat products were subject to special safeguard action in 2002 (see section (ii) above).
33. Cotton production increased year-on-year between 2003 and 2006, but there was a significant decline in 2007, with production falling to 2003 levels. In 2007, 59,526 kg of seed cotton was received and 19,207 kg of lint was produced. The private sector is seeking to generate higher value added from cotton produced in Barbados, and to protect the intellectual property associated with West Indies Sea Island Cotton. The Government has committed to providing the WISICA with 2425BDS$400,000 to assist in its restructuring efforts. Under the Cotton Export Levy Act, exports of
cotton are subject to a levy at the rate of 17 cents per pound. The proceeds of the levy are paid to the Barbados Cotton Growers Association.
34. The manufacturing sector in Barbados accounted for 5.5% of GDP in 2006 (Chapter I(2)(i)). In the same year 9,565 people were employed in manufacturing, mainly in the food processing, beverage and tobacco subsectors. There has been steady growth in almost all subsectors over the review period (Table IV.2).
35. Applied tariffs in the manufacturing sector (ISIC classification) range from zero to 184%: the highest tariffs are on certain processed meat products. Products attracting tariff rates of 100% or above include certain processed meat products; some pasta products; various fruit purees, jams and juices; aerated beverages, as well as beer, stout and shandies. Various firearms are subject to a 70% tariff. In 2001, applied tariff rates on a number of manufactured products were raised to 60% (Chapter III(2)(iv)).
23 Government of Barbados (2007). 24 Government of Barbados (2007). 25 Cotton Export Levy Act, CAP. 271 of the Laws of Barbados. Viewed at:
Table IV.2 GDP breakdown of manufacturing sectors (current prices)
Product Production Employ-(BDS$ million) ment
2002 2003 2004 2005 2006 2006
Food, beverages and tobacco 135.3 163.9 169.9 170.3 175.4 3,644
Textiles & wearing apparel 7.3 6.9 7.5 7.5 7.6 772
Wood and wood products 7.4 6.7 6.7 6.0 7.8 498
Paper products, printing and publishing 37.4 38.7 46.4 48.0 59.2 1,003 a 33.6 34.3 33.9 37.0 44.3 1,930 Chemicals, oil and non-metallic productsb 31.7 31.7 37.0 37.7 46.5 1,581 Metal products and assembled goods
Other manufacturing 10.3 10.6 14.3 14.8 16.4 137
Total 263 292.8 315.7 321.3 357.2 9,565
a Includes: chemicals and chemical products, plastic products, non-metallic mineral products. b Includes: fabricated metal products, precision instruments, electronic components and devices, and handicrafts.
Source: Government of Barbados (2006) Economic and Social Report, Table 4.2-4 and Appendix 2.
36. At end 2007, there were 15 wholly foreign-owned manufacturing companies, employing 985 people, and 5 majority foreign-owned companies, employing 262 people. The authorities note that challenges facing the manufacturing sector include: inadequate and often limited access to capital for investment in the sector; the inability to build and market brands in the domestic and export markets; inappropriate plant, equipment, and technology; relatively high costs of production, particularly with 26increasing energy costs; a skills deficit within the sector, and limited access to training programmes.
37. Over the review period the Government had been encouraging the repositioning and diversification of the sector, greater competitiveness, and job creation; and looking to assist industry 27in identifying niche markets and producing higher value-added goods. In April 2007, the BIDC
released an Industrial Policy for Barbados for the Manufacturing and Related Services Sectors (2007-12), which represented a component of Barbados' long-term development policy as set out in Barbados' National Strategic Plan for 2006 to 2025.
38. Manufacturing industries may benefit from a number of general incentive programmes (see Chapter III(3)(iv) and Chapter III(4)(ii)). In addition, under the Industrial Investment and Employment Fund, assistance to manufacturers is provided for industry re-tooling and plant upgrades. Assistance takes the form of loans at an interest rate of 5.5% as well as equity financing. 39. The Government has supported the implementation of a "Buy Local Campaign" which is managed by the Barbados Manufacturers' Association to encourage the purchase of locally manufactured goods. The Government has implemented the "Basic Industries Programme" which is a technical assistance support programme, targeted at the garments, furniture, food and beverages 28subsectors. The Buy Local Campaign has specific initiatives and actions designed to achieve five major objectives: increased output and sales by local producers, improved technical capacity in local plants; improved quality and variety of product offerings in the domestic and export sectors; introduction of practical cost-reduction measures in terms of raw material procurement and plant upgrades; and enhancement of Barbados' reputation in international markets as a producer of high-end speciality products. In addition, the Barbados Investment and Development Corporation (BIDC), assists manufacturing companies by offering technical assistance, factory space in government
26 Government of Barbados (2006). 27 Government of Barbados (2006). 28 Government of Barbados (2006b).
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industrial parks at concessionary rates, and office and production facilities in its Small Business 29Development Centre under an incubator programme.
(i) WTO and regional commitments
40. As reported in Barbados’s previous Review, Barbados scheduled some commitments under the General Agreement on Trade in Services (GATS), in 1994. In so doing, it specified two horizontal limitations: regarding commercial presence (mode 3) the Property Transfer Tax Act was 30scheduled as a limitation to national treatment. As described in the Schedule, the Act stipulates that
the purchase or sale of land or shares/stocks by a foreign investor is subject to a specific tax on the value of settlement; Barbados scheduled the Immigration Act as a limitation to market access through the presence of natural persons (mode 4).
41. Specific commitments were scheduled in a very limited number of sectors or subsectors listed 31(4 of the 12 sectors, and 21 of the 160 subsectors Services Sectoral Classification List) (Table IV.3).
Barbados committed to unlimited market access and national treatment for foreign suppliers of software implementation services, courier services, reinsurance, and many entertainment services. Despite the importance of tourism, Barbados did not include the sector in its WTO commitments. 42. In 1997, Barbados undertook specific commitments in the negotiations on basic 32telecommunications. It did not submit an offer in the negotiations on financial services that ended in 1998. Barbados has submitted an initial conditional offer within the context of the Doha 33Development Agenda Negotiations.
43. Provisions for the liberalization of services within the CARICOM are contained in Chapter 3 34of the Revised Treaty of Chaguaramas. Members undertook to notify the Council for Trade and
Economic Development (COTED) of existing restrictions to services in all four modes of supply, to abolish discriminatory restrictions on the provision of services in respect of CARICOM nationals, and not to introduce any new services restrictions (Table IV.3). As noted by the authorities, Barbados removed all necessary restrictions to facilitate the CARICOM Single Market and Economy (CSME) through the passage of the CARICOM Single Market and Economy (Implementation) (Miscellaneous Provisions) Act, 2004-24.
44. Incremental steps have also been taken towards the stated goal of free movement of CARICOM nationals (Chapter 3, Article 45 of the Revised Treaty), and this may encourage intra-CARICOM trade in services through the presence of natural persons (mode 4). As at January 2008, nine groups of persons were permitted to work and reside in any of the CSME Member states without a work permit. These are university graduates, media workers, sports persons, artists, musicians,
29 U.S. Department of State (2006). 30 Barbados has since removed the discriminatory property tax element in the Property Transfer Tax Act. 31 WTO document MTN.GNS/W/120, 10 July 1991. 32 WTO document GATS/SC/9/Suppl.1, 24 February 1998. 33 WTO online information. Viewed at: http://www.wto.org/english/tratop_e/serv_e/s_negs_e.htm. 34 CARICOM online information. Viewed at: http://www.caricom.org/jsp/community/revised_treaty-text.pdf.
qualified artisans, non-graduate qualified teachers, and nurses, and holders of associate degrees and 35their equivalents.
Table IV.3 aSummary of Barbados's specific commitments under the GATS
Market access National treatment
Modes of supply:
Cross-border supply 1 1
Consumption abroad 2 2
Commercial presence 3 3
Presence of natural persons 4 4
Commitments (? no limitations (none); ? partial limitations; ? no commitments (unbound); – not appearing in Schedule)
1. Business services
A. Professional services
Legal Services; medical and dental services (CPC93122) ? ? ? ? ? ? ? ?
Other professional services ? ? ? ? ? ? ? ?
B. Computer and related services
Consultants installing equipment; Data processing; ? ? ? ? ? ? ? ? databases
Software implementation services (CPC842) ? ? ? ? ? ? ? ?
C-F Other business services ? ? ? ? ? ? ? ? 2. Communications services
A. Postal services; D Audiovisual services ? ? ? ? ? ? ? ?
B. Courier services (CPC 7152) ? ? ? ? ? ? ? ?
C. Telecommunication services
Voice telephone services; packet-switched data ? ? ? ? ? ? ? ? transmission services; circuit-switched data transmission services; telex services; telegraph services; facsimile services; private leased circuit services
Electronic mail; voice mail; on-line information and data ? ? ? ? ? ? ? ? base retrieval; enhanced/value-added facsimile services; code and protocol conversion; on-line information and/or data processing; internet and internet access services; telecom equipment sales, rental, maintenance, connection, repair and consulting services; certain mobile services, bpersonal communications services and paging
Fixed satellite services and non public VSAT services ? ? ? ? ? ? ? ?
Other telecommunication services ? ? ? ? ? ? ? ? 3. Construction services ? ? ? ? ? ? ? ? 4. Distribution services ? ? ? ? ? ? ? ? 5. Education services ? ? ? ? ? ? ? ? 6. Services related to the environment ? ? ? ? ? ? ? ?
Table IV.3 (cont'd)
35 These requirements were enacted in Barbados through the Immigration (Amendment) Act, 1996,
Cap. 190 for university graduates and by administrative procedure for other categories of workers. CARICOM
online information. Viewed at: http://www.caricom.org/jsp/single_market/skill.jsp?menu=csme.