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PRESS/TPRB/194
11 July 2002
(02-3846)
TRADE POLICY REVIEW: BARBADOS
Trade and foreign investment instrumental in Barbados attaining
and sustaining high living standards
Barbados has used foreign trade and investment opportunities deftly to maintain living standards
well above those of most developing countries. Its trade and investment policies have fostered
world-class suppliers in a few areas, particularly tourism and financial services, which have
become the mainstay of the economy and the main source of foreign exchange, according to aWTO Secretariat report on the trade policies and practices of Barbados.
The WTO Secretariat report, along with the policy statement by the Government of Barbados, will
serve as a basis for the first Trade Policy Review (TPR) of Barbados by the Trade Policy Review
Body of the WTO on 9 and 11 July 2002.
The report says that sound monetary policy, un derpinned by a fixed exchange rate, has ensured
investor confidence and provided a framework of low inflation. Exchange controls on capital
movements are designed to reduce the economy’s vulnerability to speculative attacks against itscurrency. However, rather larg e fiscal deficits limit the room for counter-cyclical policies.
Barbados’s trade policy formulation takes place with in a stable overall policy environment, based
on extensive consultation among social and economic partners. The Government considers that
trade openness (with the exception of a small range of agricultural and service activities that are
heavily protected) is crucial in order to overcome any constraints arising from the small size of theeconomy, its restricted capacity to diversify risk, and limited institutional capacity.
The services sector is the cornerstone of the economy, with tourism and financial services playing
a particularly important role. Buttressed by a low tax environment, financial services now
contribute to a significant share of GDP. The Government encourages investment in the tourism
industry through tax incentives; there are generally  no restrictions on market access for foreign
companies. On the other hand, barriers to food imports may have weighed on the international
competitiveness of tourist catering activities by restricting access to the best and most
competitively priced inputs.
Since the mid 1960s, legislation has been in place to encourage the development of “international”
companies, which have enjoyed fiscal advantages not generally available to other firms. SuchPRESS/TPRB/194
Page 2 of 11
advantages have resulted in the establishment of offshore banks, exempt insurance companies,
and offices of multinational companies. The different legislation that is applied to firms dependingon whether they are supplying residents or overseas customers was the subject of frictions with
certain OECD partners. In this context, the Go vernment has campaigned for the right to fiscal
sovereignty.
Foreign firms provide both air and maritime tr ansport services, notably passenger and cargo
traffic. Telecommunications are under a private, foreign-owned monopoly, but full competition isto be established by November 2002 in cellular telephone services, and in the provision of
telephone sets and equipment; by August 2003, competition should be extended to fixed
telephone services. Domestic insurance services and legal services are protected from foreigncompetition by local purchase obligations and qualification requirements, respectively.
The report says that Barbados has made important efforts in recent years to liberalize and simplify
its import regime, which is all the more important given that most of domestic consumption is
imported. In the context a CARICOM tariff redu ction programme, tariffs were reduced between
1993 and 1999, as was reliance on quantitative im port restrictions. A surtax of 100% on locally
produced goods, introduced in 1994, was progressively lowered and abolished in April 2000. A VAT
was introduced in 1997 to replace multiple taxes and levies. The Customs Act was amended in
1999 to implement the WTO Agreement on Customs Valuation. As a result of these reforms,Barbados’s import procedures are no w relatively simple and transparent.
The average MFN applied tariff is 16.5%. Border pr otection is high for activities where there is
domestic production, based on tariffs of 60% or  more and import licensing. Domestic producers
import most of their inputs duty free, under an  array of waivers and ex emptions, which adds to
effective protection.
Barbados is a high-cost location for production of goods, and except for some niche products, is
not competitive vis-à-vis foreign producers. Without stringent protection from import competition,most of the few existing activities in manufacturing and agriculture would likely contract strongly.
Border protection appears to be  highest in the agri-food sector, notably for meat, dairy, and
vegetables. As tariffs ranging to 240% have not been  effective in deterring imports, the authorities
reintroduced non-automatic import licensing on  the most import-sensitive products in 2001,
initially for three months. Special safeguards legislation was being drafted in early 2002 to supportsuch measures. Imports of all poultry products are under government monopoly. A number of
tariff quotas were bound in the Uruguay Round bu t were not being applied in early 2002. Barbados
maintains a positive list of a few source countries for fresh meat; adding new countries wouldrequire a change of law.
Note to Editors
Trade Policy Reviews are an exercise, mandated in the WTO agreements, in which membercountries’ trade and related policies are examined and evaluated at regular intervals. Significant
developments which may have an impact on the global trading system are also monitored. For
each review, two documents are prepared: a policy statement by the government of the member
under review, and a detailed report written independently by the WTO Secretariat. These twodocuments are then discussed by the WTO’s full membership in the Trade Policy Review Body
(TPRB). These documents and the proceedings of the TPRB’s meetings are published shortlyPRESS/TPRB/194
Page 3 of 11
afterwards. Since 1995, when the WTO came into force, services and trade-related aspects of
intellectual property rights have also been covered.
For this review, the WTO’s Secretariat report, together with a policy statement prepared by the
Government of Barbados, will be discussed by the Trade Policy Review Body on 9 and 11 July2002. The Secretariat report covers the development of all aspects of Barbados’ trade policies,
including domestic laws and regulations, the institutional framework, trade policies and practices
by measure, and developments in selected sectors.
Attached to this press release are the Summary Ob servations of the Secretariat report and parts of
the government policy statement. The Secretaria t and the government reports are available under
the country name in the full list of trade policy reviews at
http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm . These two documents and the minutes
of the TPRB’s discussion and the Chairman’s summing up, will be published in hardback in duecourse and will be available from the Secretariat, Centre William Rappard, 154 rue de Lausanne,
1211 Geneva 21.
Since December 1989, the following reports have been completed:  Argentina (1992
and 1999), Australia (1989, 1994 and 1998), Austria (1992), Bahrain (2000) Bangladesh (1992
and 2000), Barbados (2002), Benin (1997), Bolivia (1993 and 1999), Botswana (1998), Brazil(1992, 1996 and 2000), Brunei Darussalam (2001), Burkina Faso (1998), Cameroon (1995 and
2001), Canada (1990, 1992, 1994, 1996, 1998 and 2000), Chile (1991 and 1997), Colombia
(1990 and 1996), Costa Rica (1995 and 2001), Côte d’Ivoire (1995), Cyprus (1997), the CzechRepublic (1996 and 2001), the Dominican Republic (1996), Egypt (1992 and 1999), El Salvador
(1996), the European Communities (1991, 1993, 1995, 1997 and 2000), Fiji (1997), Finland
(1992), Gabon (2001), Ghana (1992 and 2001), Guatemala (2002), Guinea (1999), Haiti (2002),Hong Kong (1990, 1994 and 1998), Hungary (1991 and 1998), Iceland (1994 and 2000), India
(1993, 1998 and 2002), Indonesia (1991, 1994 and 1998), Israel (1994 and 1999), Jamaica
(1998), Japan (1990, 1992, 1995,1998 and 2000), Kenya (1993 and 2000), Korea, Rep. of (1992,1996 and 2001), Lesotho (1998), Macao (1994 and 2001), Madagascar (2001), Malaysia (1993,
1997 and 2001), Malawi (2002), Mali (1998), Mauritius (1995 and 2001), Mexico (1993, 1997 and
2002), Morocco (1989 and 1996), Mozambique (2001), New Zealand (1990 and 1996), Namibia(1998), Nicaragua (1999), Nigeria (1991 and 1998), Norway (1991, 1996 and 2000), OECS
(2001), Pakistan (1995 and 2002), Papua New Guinea (1999), Paraguay (1997), Peru (1994 and
2000), the Philippines (1993 and 1999), Poland (1993 and 2000), Romania (1992 and 1999),Senegal (1994), Singapore (1992, 1996 and 2000), Slovak Republic (1995 and 2001), Slovenia
(2002), the Solomon Islands (1998), South Africa (1993 and 1998), Sri Lanka (1995), Swaziland
(1998), Sweden (1990 and 1994), Switzerland (1991, 1996 and 2000 (jointly with Liechtenstein)),Tanzania (2000), Thailand (1991, 1995 and 1999), Togo (1999), Trinidad and Tobago (1998),
Tunisia (1994), Turkey (1994 and 1998), the United States (1989, 1992, 1994, 1996, 1999 and
2001), Uganda (1995 and 2001), Uruguay (1992 and 1998), Venezuela (1996), Zambia (1996)and Zimbabwe (1994).PRESS/TPRB/194
Page 4 of 11
TRADE POLICY REVIEW BODY
BARBADOS
Report by the Secretariat –Summary Observations
Barbados has used foreign trade and investment opportunities deftly to maintain living standards
well above those of most developing countries.  Its trade and investment policies have fostered
world-class suppliers in a few areas, particularly tourism and financial services.  Based onBarbados's natural endowments and on niche ac tivities created by go vernment policy, these
services have become the mainstay of the economy and the main source of foreign exchange.  Of
necessity, however, specialization and the small size of the economy have resulted in a narrowproduction base that makes Barbados vulnerable to external shocks.
Trade policy has also sought to protect a small number of domestic activities, mostly food
production, from foreign competition, while recognizing that most domestic needs are best met by
imports.  This protection, and limited competition in certain domestic sectors have weighed on the
competitiveness of the leading service activities by restricting their access to inputs at the lowestcost.  Barbados's historically stable policy environment and wealth of human capital bode well for
its ability to address this issue, adjust to new challenges and, thus, attain and sustain further
welfare improvements.
Barbados ranks 31st in terms of the United Nations' Human Development Index;  life expectancy
at birth is 77 years, the adult literacy rate is 97%, and GDP per capita was US$9,700 in 2000.Since the 1950s, the economy has become increasingly reliant on income from tourism.
Buttressed by a low tax environment, f
inancial services now contribute to a significant share of
GDP.  Simultaneously, there has been a falling share of agriculture, especially sugar, in GDP.The Barbados economy performed well between 1993 and 2000, driven by domestic consumption.
However, the economy remains vulnerable to external shocks, as witnessed by the depth and
duration of the recessions experienced when worldwide economic decelerations have occurred,notably during the early 1990s and again in 2001.  Real value added in tourism declined by an
estimated 6% in 2001, and the economy contracted by 2.8% in real terms.
Sound monetary policy, underpinned by a fixed exchange rate, has ensured investor confidence
and provided a framework of low inflation.  Exchange controls on capital movements are designed
to reduce the economy's vulnerability to speculative attacks against its currency.  However, ratherlarge fiscal deficits limit the room for counter-cyclical policies.  Current account transactions have
shown a persistent large deficit, as the surplus of the services account has not offset the
merchandise trade deficit.  The current account deficit has generally been compensated by publicand private capital inflows.
Revenues from exports of merchandise have remained relatively small, at about one fifth of total
exports of goods and services, and 11% of GDP.  Merchandise exports consist mostly of sugar,
rum, and crude petroleum and are not, apart from niche products, internationally competitive
without government support or preferential access to foreign markets.  The main exportdestinations are the CARICOM countries, the European Union, and the United States.  Exports of
services consist mostly of tourism and financial services.  Imports of goods are diversified, with a
relatively strong reliance on imported food.  Fastest import growth has originated in the UnitedStates, which supplies 40% of imports, on an MFN basis.  This concerns merchandise trade.  The
next largest suppliers are the CARICOM countries and the European Union.  Imports of services
consist mostly of transportation, insurance, and travel.PRESS/TPRB/194
Page 5 of 11
Barbados's trade policy formulation takes place with in a stable overall policy environment, based
on extensive consultation among social and economic partners.  The Government considers that
trade openness (with the exception of a small rang e of agri-food and service activities that are
heavily protected) is crucial in order to overcome any constraints arising from the small size of theeconomy, its restricted capacity to diversify risk, and limited institutional capacity.
Barbados is an original Member of the WTO, and participates actively in its work.  It grants at least
MFN treatment to all its trading partners.  Barbados has never been involved in multilateral
dispute settlement procedures, either as a defendant or complainant.  However, it reserved its
rights to participate as third party in the dispute relating to U.S. provisions on Foreign SalesCorporations, as many such corporations are established under Barbados law.
In the Uruguay Round negotiations, Barbados bound all of its tariffs except on fish and fish
products, albeit at ceiling rates.  Agricultural products are bound at least at 100%, with some
specific items bound at rates ranging to over 220%; manufactured goods are bound at rates of at
least 70%, with certain items at considerably higher rates.  Barbados also made specificcommitments under the GATS in a few subsectors.  Barbados undertook specific commitments in
the WTO negotiations on basic telecommunications, but did not make new multilateral
commitments on financial services within the context of the Fifth Protocol to the GATS.
Barbados's exports benefit from unilateral trad e preferences granted by a number of trading
partners;  Barbados seeks to have these maintained.  Its trade policy has been deeply influencedby its participation in the Caribbean Community and Common Market (CARICOM), where it is
urging a rapid implementation of a single mark et.  The commitment to protect CARICOM industries
partly explains Barbados's relatively high tariffs on goods not produced domestically.
Barbados has made important efforts in recent years to liberalize and simplify its import regime,
which is all the more important given that most of domestic consumption is imported.  In thecontext of the Common External Tariff (CET) re duction programme, tariffs were reduced between
1993 and 1999, as was reliance on quantitative import restrictions.  A surtax of 100% on locally
produced goods, introduced in 1994, was progressively reduced and abolished in April 2000.  AVAT was introduced in 1997 to replace multiple taxes and levies.  The Customs Act was amended
in 1999 to implement the WTO Agreement on Customs Valuation.  As a result of these reforms,
Barbados's import procedures are no w relatively simple and transparent.
The average MFN applied tariff is 16.5% and fulfils mainly a revenue generating function.  Border
protection for activities where there is domestic  production is high, based on tariffs of 60% or
more and import licensing.  Domestic producers im port most of their inputs duty free, under an
array of waivers and exemptions, which adds to effective protection.  Taken together, all taxes
levied on imports amount to 22% of total tax revenue.
Import licences cover about 60 mainly food products.  They have been used to monitor imports
and to protect domestic production;  licences can be made automatic or non-automatic byadministrative decision.  Information is not publicly available regarding applications for licences or
the allocation of quotas.
Resort to anti-dumping and countervailing duties consists of a single measure.  The Agreement on
Article 6 of the GATT and the Agreement on Subsidies and Countervailing Duties have yet to be
incorporated into Barbados law on these matters.  Barbados does not have safeguard legislation.PRESS/TPRB/194
Page 6 of 11
Exports are not, in practice, taxed or restricted , and take place mostly under trade preferences.
Exports are also promoted via various duty and tax concessions and financial assistance measures,
several of which have been notified to the WTO as export subsidies.  In general, most domestic
production of goods and services benefits from tax breaks or other assistance, reflecting theGovernment's commitment to actively support businesses.  There are no available estimates of the
overall budgetary cost of this support.
Competition policy legislation was being put in place in early 2002 as part of the establishment of
a comprehensive competition policy regime.  Legislation was expected to eventually include
provisions on fair competition, consumer guaran tees, and consumer protection.  The need for a
comprehensive competition policy framework stems from the observed high levels of concentration
and prices in the domestic market.  Meanwhile, to limit the abuse of market power, price controls
are in place on a number of goods and services.
The Government has shareholdings in a number of commercial entities in such sectors as utility
services, transport services, hotels, and agri-food production.  It is government policy not to beinvolved in new ventures, except when there is a lack of private-sector interest in an activity the
Government wishes to promote.  State trading is limited to poultry imports.  Certain companies
are de facto sole traders: one company is the sole exporter of crude petroleum and the soleimporter of diesel, gasoline, and fuel oil.  Pu blic procurement, which represents approximately
10% of GDP, relies mostly on foreign goods and services given the small size of the economy.
Small contracts may be allocated without inviting tenders.
Barbados has recently taken steps to help ensure the protection of intellectual property rights, and
its legislation covers all major areas referred to in the TRIPS Agreement.  Barbados's IPR-related
legislation was reviewed by the WTO TRIPS Council in November 2001.
Barbados is a high-cost location for production of goods, and except for some niche products, is
not competitive vis-à-vis foreign producers.  Without stringent protection from import competition,
most of the few existing activities in manufacturing and agriculture would likely contract strongly.
Border protection appears to be  highest in the agri-food sector, notably for meat, dairy, and
vegetables.  As tariffs ranging to 240% have not been effective in deterring imports, the
authorities reintroduced non-automatic import licensing on the most import-sensitive products in
2001, initially for three months.  Special safeguar ds legislation was being drafted in early 2002 to
support such measures.  Imports of all poultry products are under government monopoly.  A
number of tariff quotas were bound in the Urug uay Round but were not being applied in early
2002.  Barbados maintains a positive list of a few source countries for fresh meat;  adding newcountries would require a change of law.
Preferential access to the EU market has not pr evented the decline of the sugar industry, which
has suffered from high costs that in most years exceed guaranteed export prices well above world
levels.
The services sector is the cornerstone of the economy, with tourism and financial services playing
a particularly important role.  Tourism services are provided mainly by private operators.  The
Government encourages production and investment in the tourism industry mainly through taxincentives and concessionary loans.  There are generally no restrictions on market access for
foreign companies.  On the other hand, barriers to food imports may have weighed on the
international competitiveness of tourist catering and other service activities by restricting access tothe best and most competitively priced inputs.PRESS/TPRB/194
Page 7 of 11
Since the mid 1960s, legislation has been in place to encourage the development of "international"
companies, which have enjoyed fiscal advantages not generally available to other firms.  Suchadvantages have resulted in the establishment of offshore banks, exempt insurance companies,
and subsidiaries of multinational companies.  The different legislation that is applied to firms
depending on whether they are supplying residents or overseas customers was the subject offrictions with certain OECD partners.  In this context, the Government has campaigned for the
right to fiscal sovereignty.
Foreign firms provide both air and maritime tr ansport services, notably passenger and cargo
traffic.  Telecommunications are under a private, foreign-owned monopoly, but full competition is
to be established by November 2002 in cellular telephone services, and in the provision oftelephone sets and equipment; by August 2003, competition should be extended to fixed
telephone services.  Domestic insurance services and legal services are protected from foreign
competition by local purchase obligations and qualification requirements, respectively.PRESS/TPRB/194
Page 8 of 11
TRADE POLICY REVIEW BODY
BARBADOS
Report by the Government – Part IV
Trade and trade-related policies
Barbados, given its narrow resource base, limited production structure, and the openness of the
economy, has to participate actively in world trade in order to maintain and enhance its standard
of living.  This requires that it must produce goods and services which can be traded competitivelyin foreign markets.  The heavy reliance on trade makes it necessary to develop policies which are
responsive to the changing international environment.  Since the early 1990s, Barbados' trade
policy has become more open as a result of its own liberalisation programme, and in response toregional and international developments.
Traditionally, Barbados’ trade policy focused on tr ade in goods, and emphasis was placed on an
import substitution strategy for promoting economic development.  That strategy was
implemented through a system of tariff and non-tari ff barriers designed to protect producers in the
manufacturing and agricultural sectors until they were internationally competitive.  A licensingsystem restricted the importation of competing imports.
In 1994, prior to the creation of the WTO, Gove rnment embarked on a liberalisation programme.
To give legal effect to that programme the Miscellaneous Controls (General Open Import License)
Regulation, the Importation and Exportation of Goods (Prohibition) Amendment Regulations and
the Customs Tariff (Amendment) Order, were passed.  Licenses imposed on imports of mostcompeting manufactured goods were removed and a surtax was applied on those imports for a 5
year period.  During 1996 Government commenced the phase out of the surtax, and it was
removed in April 2000.
In April 2000 also, Government removed restrictions by way of license on all imports except those
which are in place for health or safety reasons or to protect public morals.  Most products involvedin this exercise were agricultural items.  For all items on which restrictions were removed,
Government applied the WTO bound rates.  Barbados will shortly be implementing the special
safeguard provision for agricultural products.
Prior to the introduction of the Value Added Tax (VAT) in January 1997, “other charges and duties”
levied on imports included:  Consumption Tax, Stamp Duty, Surcharge, Excise Tax and anEnvironmental Levy.  When a 15% VAT was introd uced it replaced all these taxes with the
exception of the Environmental Levy, and the Excise Tax which were levied on certain products.
The net effect of this action was a marked reduction in the price of imported goods.
Government is aware that in order for Barbados to be internationally competitive, producers of
goods and services must meet internationally recognised standards.  Equally, it recognises theneed to ensure that imports are of the highest quality and that the health and safety of all
Barbadians are not compromised by the importation and use of inferior goods.  It also has a duty
to adequately protect the environment.  Accordingly, Government, since the establishment of theBarbados National Standards Institution in 1973, has been seeking to ensure that both local and
imported products adhere to international standards.  There are currently over 200 domestic
standards all of which are internationally compatible.
Sanitary and phytosanitary (SPS) systems and me asures in Barbados are, to a large extent,
compatible with internationally accepted standards and practices.  There is a need, however, forPRESS/TPRB/194
Page 9 of 11
technical assistance in the area of legislation drafting, as well as in the strengthening of the
surveillance systems and risk analysis to conform to international regulations.
The country already has equivalence agreements with some of its trading partners.
Barbados is implementing the provisions of th e WTO SPS Agreement with the assistance of a
number of international agencies.
Under the Uruguay Round of trade negotiations, Barbados committed six areas of services activity
for liberalisation.  In 1996 it further committed itself to liberalise some aspects of basic
telecommunication services.  In keeping with its policy to encourage foreign investment, cross-border trade in virtually all areas of services activity including tourism, distribution, business and
professional services, as well as financial services, is allowed.  In the area of telecommunications
services, Government has recently signed a Memorandum of Understanding with the sole serviceprovider which legally held a monopoly in this area for many years.  This Understanding will allow
for the liberalisation of this sector.
Legislation governing intellectual property rights has existed in Barbados for much of the twentieth
century.  The Patents Act of 1903 and the Patents and Design Act 1907 of the United Kingdom, for
example, were the earliest pieces of legislation governing the grant of patents in Barbados.  Sincejoining the World Intellectual Property Organi zation in 1979, Barbados has embarked on a
conscious policy of modernizing its intellectual property rights system in order to bring its
legislative framework in line with international standards.  Barbados is compliant with WTOrequirements under the TRIPS Agreement.  Barbados underwent a review of its intellectual
property legislation and its implementation  of the TRIPS Agreement in November 2001.
Barbados’ trade policies have been informed by the provisions of the Treaty of Chaguaramas that
established the Caribbean Common Market (CARICOM) in 1973.  The main focus of this integration
movement was initially trade in goods.  The main instruments through which trade within the regionwas facilitated were the Common External Tariff (C ET) and the Rules of Origin.  Periodically these
instruments have been revised with the view not only of ensuring the deepening of the integration
process, but also ensuring that firms achieve international competitiveness.
In 1992 the CARICOM Conference of Heads of Government of the region took a decision to reduce the
CET on manufactured goods to a range of 0-20% by 1998.  Barbados fully complied with thatdecision.  Also in keeping with the Heads of Government decision, Barbados applies a  maximum rate
of 40% on agricultural products.
During the 1990s, CARICOM Member States signed a number of non-reciprocal and reciprocal trade
agreements with some Caribbean and Latin American countries;  namely, Venezuela, Colombia, the
Dominican Republic and Cuba.  The reciprocal agreements with Colombia and the Dominican Republicare in force, while the agreement with Cuba will be implemented shortly.  Negotiations to convert the
agreement with Venezuela to a reciprocal one will soon be undertaken.  Barbados actively participates
in these arrangements.
In 1989 the CARICOM Conference of Heads of Gove rnment agreed to establish the Caribbean Single
and Economy (CSME).  The Treaty of Chaguaramas was accordingly amended, by way of Protocols, togive legal effect to the creation of the CSME.PRESS/TPRB/194
Page 10 of 11
The nine Protocols covered the following areas:
/g167 The management of the integration process (Protocol I);  dispute settlement (Protocol IX);
and any disadvantage confronting sectors, regions and member states as a result of
implementation of the CSME (Protocol VII).
/g167 The movement of goods (Protocol IV) and services and factors of production (Protocol II).
/g167 The conduct of relations in transport (Protocol VI);  agriculture (Protocol V) and industry
(Protocol III).
/g167 The behaviour of businesses – competition po licy, consumer protection, and dumping and
subsidies (Protocol VIII).
Barbados has lead responsibility for ensuring the implementation of the CSME.  It has signed all of
the Protocols, a number of which is being prov isionally applied in the Community.  Barbados
considers that the CSME is highly relevant, given liberalisation and globalisation.  Indeed,Government sees the CSME as critical to the development of the region, especially as it seeks to
integrate into the new global economy.  Barbados will therefore work assiduously with its fellow
CARICOM states to ensure that the CSME becomes a reality.
Barbados is a founding member of the WTO, having joined that Organization from its inception on 1
January 1995.  As a member, it has been diligently seeking to discharge its obligations, within thelimits of its human, financial and technical resources, while being fully cognisant of the need to
minimise transitional costs and maintain economic stability.  As previously  noted, Barbados, even
prior to 1995, has permitted greater market access for goods and services.  In addition, Barbados hasenacted the necessary legislation to protect both local and foreign intellectual property rights.  Given
the importance which Barbados attaches to the WTO, it has, at considerable cost, established a
Mission in Geneva, principally to deal with matters pertaining to the work of the WTO.
As a small developing country, Barbados fully supports the decision taken at the Fourth WTO
Ministerial Conference in Doha to continue to  address the implementa tion concerns of the
developing countries.  Barbados considers that there are genuine and real concerns which must be
effectively addressed.  Barbados also accords high importance to the establishment of a Work
Programme on Small Economies, to the establishment of Working Groups on Trade, Debt andFinance and on Trade and Transfer of Technology  and to the priority given in the Ministerial
Declaration to special and differential treatment and technical assistance for developing countries.
Barbados is currently engaged in trade negotiations in a number of international fora.  It is one of
the 34 countries seeking to create the Free Trade Area of the Americas (FTAA) by 2005.  As part of
the African, Caribbean and Pacific Group of countries (ACP), Barbados will participate innegotiations between the ACP and the EU for the establishment of a new trade and economic
relationship with Europe to be effective from 1 January 2008.  Formal negotiations will commence
in September 2002.  In addition, Barbados is involved in negotiations within the context of theWTO.
The conclusion of all of these negotiations will have a significant impact on Barbados’ trading
relations, particularly in two areas.  Firstly, the new trade arrangements will increase competition
for the relatively small firms which provide goods and services in the domestic market.  Secondly,
the arrangements, while promising greater export opportunities for Barbados, will erode thepreferential access now enjoyed by Barbados  under the CBI, CARIBCAN, Cotonou and GSPPRESS/TPRB/194
Page 11 of 11
arrangements.  This will undoubtedly increase competition in those markets.  More fundamentally,
the advantages which Barbados currently enjoys as a member of CARICOM will also be eroded as aresult of the new negotiated arrangements.
If in negotiating these new arrangements, sufficient consideration is not given to small economies
like Barbados, the economic outlook for these countries will be grim.  From experience, Barbados
is acutely aware of the possible speed and depth of  economic decline, and the rapid effect which
economic instability, especially by way of risi ng unemployment and rapid depletion of foreign
reserves, can have on its social and political stability.
Given this possibility, Barbados has, in all negotiating fora, joined other small developing
economies in requesting special and differential treatment for small economies.  In this regard, the
Doha Ministerial decision to establish a Work Programme on the treatment of the small economies
within the multilateral trade context is especially propitious.  The effective participation of thesecountries in the multilateral trading system should be a priority concern of the WTO.
The special and differential treatment which should be granted to small developing economies
should  includes the following:
The provision of technical assistance as well as financial resources to enable these countries and
generally all developing countries to overcome some of the basic market constraints confronting
them.
/g167 The granting of adequate transitional periods for the commencement of the liberalisation
process, and for the implementa tion of complex arrangements.
/g167 Allowing Government flexibility to assist businesses and sectors, especially those considered to
be strategically important to the development of their economies and which are facing
difficulties as a result of trade liberalisation.
/g167 Reducing the burden on these countries of having to cope with various non-tariff barriers
imposed by developed countries.  These incl ude:  onerous sanitary and phyto-sanitary
measures and technical standards.
/g167 Allowing for adequate thresholds that must be reached before action can be taken against the
products of the small suppliers in these countries.
END