Bridges Weekly Trade News Digest • Volume 12 • Number 31 • 25th September 2008

TPR: Barbados ‘A Good Model for Developing Countries’

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Barbados stands out among developing countries in terms of its per capita income and human development indicators, but actions to reduce applied tariffs and encourage domestic competition could further strengthen the country’s economy, according to a review of the country’s economic policies conducted by the WTO.

The Trade Policy Review (TPR) noted that Barbados is deeply integrated into the world economy, as the country’s total trade in goods and services represents 133 percent of its gross domestic product. But the Barbados’ applied most-favoured nation (MFN) tariff is 16.2 percent, a relatively high rate that the report warned could create a bias against exports. However, Barbados’ non-tariff barriers are low, and the country has implemented a number of fiscal and other incentive programmes in an effort to encourage the development of exports.

The WTO Trade Policy Review Body met on 17 and 19 September so that delegates could discuss the report.

“Barbados’ experience stands out as a good model for developing countries, especially those facing similar challenges due to their small size,” the chair of the Barbados TPR committee said.

Delegates at the meeting commended Barbados for enacting new laws on competition policy, which was regarded as a key step in improving the functioning of the country’s domestic markets. Members also congratulated the country for liberalising its telecommunications sector and for implementing new intellectual property legislation.

But a number of delegates called on Barbados to further cut its applied tariffs, and to remove some remaining restrictions on foreign investment.

Barbados’ Foreign Trade Minister Christopher Sinckler said that his country would consider the proposed reforms, but that development concerns had to come first. The minister stressed that he was eager to “participate in a WTO that appreciates these real challenges and that creates the appropriate flexibilities to allow Barbados and other Small Vulnerable Economies to respond in a deliberate way to protect the most vulnerable sectors and groups.”

Last week’s events marked the second TPR for Barbados, which has been a WTO Member since the global trade forum was established in 1995.

ICTSD reporting; “Barbados Foreign Trade Minister says, ‘National Development must be first’,” SOUTH FLORIDA CARIBBEAN NEWS, 21 September 2008.

One response to “TPR: Barbados ‘A Good Model for Developing Countries’”

courage 1st October 2008 at 18:00
I want to know why Barbados is classified as a developing country