Barbados2005 Investment Climate Statement -- Barbados
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Openness to Foreign Investment
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The Government of Barbados, through the Barbados
Investment and Development Corporation (BIDC) strongly
encourages foreign direct investment in Barbados,
particularly in industries that create jobs and earn foreign
currency. Special incentive packages govern the hotel
industry, manufacturing, and offshore business services and
offer opportunities based on the interaction of tax
incentives and tax treaties. For example, International
Business Companies (IBCs) have a maximum tax rate of 2.5
percent of income and exemption from foreign exchange
controls.
The services sector holds the largest potential for
growth, especially in the areas of financial services, e-
commerce, tourism, educational, health, and cultural
services. In agriculture, investment opportunities exist in
the areas of Sea Island cotton and hydroponics. In the
financial services sector, the government seeks to expand
product offerings while maintaining strong regulatory
standards. In 2002, parliament enacted the International
Financial Services Act to meet international standards on
supervision and regulation of financial institutions and e-
commerce. They also passed a comprehensive Tourism
Development Act in late 2002 and recently enacted amendments
to the Insurance Act, Companies Act, Trademarks Act, and
Patents Act.
The government introduced a new telecommunications
framework in 2000 to end the long-standing monopoly,
introduce competition, lower the cost of international
telecommunications, and enhance the telecom infrastructure.
Legislation passed in December 2001 set the stage for
telecom liberalization and in March 2003, the government
awarded new cellular licenses to Cingular (AT&T Wireless at
the time), Digicel, and Sunbeach Communications. In October
2004, the government awarded fixed wireless access licenses
to TeleBarbados, WIISCOM, and Last Mile Holdings, and
awarded an undersea cable landing license to Antilles
Crossing. The former monopoly, Cable and Wireless, and the
government agreed to liberalize the long distance sector by
February 21, 2005. Long distance rates remain relatively
high, but should come down once the long distance market
opens for competition. To prepare a workforce skilled in
advanced IT services, the government and educational
institutions such as the Barbados Community College and the
University of the West Indies have undertaken educational
and training initiatives.
Foreign nationals receive the same protections as local
citizens. Barbados is proud of its tradition of the rule of
law. By Caribbean standards, the police and court systems
are efficient and unbiased in commercial matters, and the
government operates in an essentially transparent manner.
Local enterprises generally welcome joint ventures with
foreign investors in order to access technology, expertise,
markets, and capital. Barbados's economy is small, however,
and new enterprises that might compete with entrenched local
establishments, especially in the retail and restaurant
sector, may face a de facto veto of their license by local
interests. Importers of U.S. ice cream and poultry
products, and franchisees interested in establishing a
McDonald's, TGI Friday's, and Subway have all been denied
access to the Barbados market.
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Conversion and Transfer Policies
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The Ministry of Finance controls the flow of foreign
exchange, and the Exchange Control Division of the Central
Bank of Barbados executes policy under the Exchange Control
Act. Individuals may apply through a local bank to convert
the equivalent of USD 3,750 per year for personal travel and
USD 25,000 for business travel. To convert anything over
these limits, one must apply to the Central Bank. Companies
can freely repatriate profits and capital from foreign
direct investment if they registered with the Bank at the
time of investment. The Central Bank may limit or delay
conversions depending on the level of international reserves
under the bank's control.
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Expropriation and Compensation
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The Barbados Constitution and Companies Act contain
provisions that permit the government to compulsorily
acquire property for public use upon prompt payment of
compensation at fair market value. The Embassy is not aware
of any outstanding expropriation claims or nationalization
of foreign enterprises in Barbados.
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Dispute Settlement
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Barbados bases its legal system on the British common law
system. The Attorney General, the Chief Justice, Puisne
Judges, and Magistrates administer justice in Barbados. The
highest court of appeal is currently the Privy Council in
London, although the new Caribbean Court of Justice may soon
replace the Privy Council as the highest court of appeal for
CARICOM nations.
The United States and Barbados are both parties to the
World Trade Organization (WTO). The WTO Dispute Settlement
Panel and Appellate Body resolve disputes over WTO
agreements, while courts of appropriate jurisdiction in both
countries resolve private disputes. The Barbados Arbitration
Act (1976) and the Foreign Arbitral Awards Act (1980), which
recognizes the 1958 New York Convention on the Negotiation
and Enforcement of Foreign Arbitral Awards, contain
provisions for arbitration of investment disputes.
Parliament has written The New York Convention's provisions
into domestic law, but has yet to ratify the convention.
Barbados is a member of the International Center for the
Settlement of Investment Disputes (ICSID), also known as the
Washington Convention. Additionally, individual agreements
between Barbados multilateral lending agencies have
provisions calling on Barbados officials to accept recourse
to binding international arbitration to resolve investment
disputes between foreign investors and the state.
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Performance Requirements and Incentives
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Performance requirements and expectations are central to
the administration of certain foreign direct investments.
Local officials will more likely approve licenses if they
believe the investment will create jobs, increase exports
and foreign exchange earnings, and increase economic
activity in Barbados. There are no requirements for
participation either by nationals or by the government in
foreign investment projects. To receive a work permit for
top management, the company must show that a Barbadian
national or resident cannot fill the position. Work permits
are of two types, short-term (for six months or less) and
long-term (usually for no more than three years).
There is no requirement that enterprises must purchase a
fixed percentage of goods from local sources, but the
government encourages local sourcing. Export performance
requirements exist for certain industries. For example,
"enclave enterprises" must produce goods exclusively for
export outside the CARICOM region. Foreign investors must
finance their investments from external sources or from
income that the investment generates. When a foreign
investment generates significant employment or other
tangible benefits for the country, the authorities may allow
the company to borrow locally for working capital. There is
no requirement that locals own shares of a foreign
investor's enterprise, but some restrictions may apply to
share transfers. The Companies Act does not permit bearer
shares. Foreign investors do not need to establish
facilities in any specific location, although there are
zoning and other restrictions.
Most investment incentives in Barbados are tax
incentives, although there are some special programs for
manufacturers.
In the manufacturing sector, The Barbados Investment and
Development Corporation (BIDC) has established ten well-
equipped industrial parks with subsidized rent. The BIDC
may also supply limited training grants and free technical
assistance through two programs with a focus on developing
local businesses, the Export Grant and Incentive Scheme and
the Technical Assistance Program. The former helps both
locally and foreign-owned companies (but only those foreign
companies with management or marketing branches in Barbados)
by defraying export costs such as the preparation and
shipment of samples and the development of marketing
materials. The latter helps companies solve a range of
operational problems. The BIDC also offers local small
businesses access to its Small Business Development Center,
with conference room facilities, communications services,
short-term office space, and a commercial library. To
further help manufacturers, the Central Bank of Barbados has
established an export credit guarantee scheme, covering pre-
shipment financing requirements and post-shipment credit
risks for manufacturing companies.
The Fiscal Incentives Act (1974) provides a maximum 10-
year tax holiday to any manufacturer of an approved product,
provided that it meets the definition of an enclave
enterprise: manufacturing exclusively for export outside of
CARICOM; manufacturing approved products containing a
specified percentage of local value added; or being highly
capital intensive. Under the Fiscal Incentives Act, such
enterprises may import duty-free equipment, spare parts, and
raw materials from outside CARICOM. Dividends and other
distributions to shareholders during the tax holiday are
also exempt from the payment of income tax. Non-resident
shareholders liable to tax in their country of residence are
subject to Barbados withholding tax at a lower rate. To
qualify for these incentives, the enterprise must apply to
the Ministry of Economic Development.
Enterprises not obtaining benefits under the Fiscal
Incentives Act and generating export profits (other than
from exports within CARICOM) may receive an export allowance
expressed as a rebate of corporation tax (between 35-93
percent) on those profits. The maximum rebate of 93 percent
applies if more than 81 percent of an enterprise's profits
result from extra-regional exports. Such enterprises are
also entitled to a 50 percent rebate of the import duty
applicable to all imports for use in manufacturing.
Companies may request additional relief from the Customs
Department based on the ratio of exports to local
production. The Export Development Allowance allows a
company to deduct from taxable income an additional 50
percent of what the company spends in developing export
markets outside CARICOM.
Initial Allowances or Investment Allowances of up to 40
percent on capital expenditure are available for businesses
making capital expenditures on machinery and plants, or on
an industrial building or structure. Annual depreciation
allowances on such expenditures are also available. Under
Section 14A of the Income Tax Act, any manufacturing company
in Barbados can enjoy tax reductions based on the percentage
of its profits derived from export income, as follows:
Rebate of Income Tax as a percent of Total Export
Profits:
Total Export Profits Rebate of Corporation Tax
Up to 20 percent 35 percent
More than 20 and up to 40 percent 45 percent
More than 40 and up 60 percent 64 percent
More than 60 and up 80 percent 79 percent
Over 80 percent 93 percent
In the tourism sector, a Market Development Allowance
allows a company to deduct an additional 50 percent of what
it spends encouraging tourists to visit Barbados. Under the
Tourism Development Act of 2002, businesses and individuals
that invest in the tourist sector can write off capital
expenditure and 150 percent of interest. They are also
exempt from import duties, the value added tax, and
environmental levies on furniture, fixtures and equipment,
building materials, supplies, and equity financing. The act
expands the definition of tourist sector to include not just
accommodation, but restaurants, recreational facilities, and
services. The Act encourages the development of attractions
that emphasize the island's natural, historic, and cultural
heritage, and also encourages construction of properties in
non-coastal areas. The Minister of Tourism must approve all
projects under this legislation.
Regarding taxation, Barbados has entered into double
taxation treaties with the United States, Canada, CARICOM,
China, Cuba, Finland, Norway, Sweden, Switzerland, U.K., and
Venezuela. A new amendment to the tax treaty between the
U.S. and Barbados went into effect on January 1, 2005. The
revised tax treaty strengthens measures to prevent U.S.
companies from using Barbados as a tax shelter on income
earned in the United States.
Offshore businesses may operate either free of income
tax (e.g., captive insurance, foreign sales corporations) or
with a tax rate from 1 to 2.5 percent. An International
Business Company (IBC) must by the terms of its
incorporation export 100 percent of its manufacture in order
to enjoy the following tax rates on gains and profits:
Gains and Profits Corporate Tax Rate
Up to USD 10 million 2.5 percent
USD 10-20 million 2.0 percent
USD 20-30 million 1.5 percent
Over USD 30 million 1.0 percent
An IBC may import machinery and equipment into Barbados
free from certain taxes and customs duties. IBC's also are
exempt from withholding tax and tax on the transfer of their
assets and may also make certain foreign exchange
transactions free of exchange controls. IBC's in the
information services sector receive a special tax rate of
2.5 percent on profits, full exemption from import duties on
production-related equipment, including computers, full and
unrestricted repatriation of capital, profits, dividends,
rental of subsidized office space, and training grants to
subsidize worker training.
International financial service companies also enjoy
several tax incentives. Under the Exempt Insurance Act, a
company incorporating with a minimum capital of USD 125,000
and at least one Barbadian director is eligible for taxation
on profits at zero percent for the first fifteen years, and
2 percent on the first USD 250,000 of profits thereafter, as
well as exemption from withholding tax and exchange control
restrictions. Its beneficial shareholders also must not be
persons resident in CARICOM. In 1998, legislation allowed
companies involved in the international insurance businesses
to register as Qualifying Insurance Companies, entitled to a
tax rate of 2.8 percent, after deducting a foreign currency
earnings allowance, and exemption from withholding taxes and
exchange controls.
The International Trust Act allows non-residents to
create trusts for the benefit of non-residents, with no
minimum capital requirements and no withholding taxes, but
subject to 40 percent tax on profits earned in or remitted
to Barbados. Societies of Restricted Liability, which may
not acquire land in Barbados or transact business with
CARICOM residents, enjoy certain concessions for up to 30
years, including exemption from exchange controls and
withholding tax on dividends, royalties, interest, or other
interest paid to non-residents. The European Union's 2001
WTO challenge to U.S. Foreign Sales Corporations (FSC) has
eliminated the exemption to U.S. taxes previously enjoyed on
profits derived from FSC export sales.
The Shipping Incentives Act of 1982 provides concessions
to shipping companies engaged in the operation of passenger
ships, leasing of ships, shipbuilding, maintenance or
repair. The concessions include a ten-year exemption on tax
and custom duties on materials connected with the shipping
activities.
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Right to Private Ownership and Establishment
--------------------------------------------
There is a constitutional right for nationals and non-
nationals to establish and own private enterprises and
private property in Barbados. These rights also pertain to
the acquisition and disposition of interests in private
enterprises. No industries are officially closed to private
enterprise, although the government reserves the right not
to allow certain investments (such as in the case of
McDonalds, TGI Friday's and others.) Some activities, such
as utilities, broadcasting, banking, and insurance, require
a license from the government. There are no percentage or
other restrictions on foreign ownership of a local
enterprise or participation in a joint venture.
The Government of Barbados has been engaged for the past
eight years in efforts to divest itself of a number of
costly and often unprofitable parastatal enterprises. To
date, the government has achieved partial or total
divestment of most state-owned enterprises, leased public
facilities to the private sector, permitted private
management of parastatals, sought incorporation of
government developmental operations, allowed new project
installations to have build-operate-transfer arrangement,
and encouraged management or staff buy-outs of state-owned
enterprises or facilities.
Privatization is a major element of Barbados's ongoing
structural adjustment process. Since 1992, the government
sold BDS $61.7 million in commercial property to private
investors through the sale of shares in Barbados External
Telecommunications (to Cable & Wireless of the U.K.),
Barbados Telephone Company (to Cable & Wireless), Barbados
Mills, the Arawak Cement Company, Barbados Dairy Industries,
Barbados National Oil Company, National Petroleum
Corporation, Barbados Tourism Investment Inc., and Heywoods
resorts. In 2000, the government sold shares of the
Barbados National Bank and Insurance Corporation of Barbados
to the public.
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Protection of Property Rights
-----------------------------
The Barbados Government has improved the legal regime
for property rights, including intellectual property.
Barbados signed the Paris Convention on Intellectual
Property Rights (IPR), the Madrid accords, and is a member
of the United Nations World Industrial Property Organization
(WIPO). The Government of Barbados adopted a new Copyright
Act in August 1998, and amended it in 2004 to provide for
tougher penalties. The government also approved legislation
in September 1998 for Integrated Circuits Topography and
Protection against Unfair Competition and Geographical
Indications. In addition, the government recently revised
The Trademark and Industrial Designs Acts to meet world
standards. Legislation to comply with the World Trade
Organization (WTO) Agreement on Trade Related aspects of
Intellectual Property rights (TRIPS) for Patent and Plant
Variety Protection is in an advanced stage. Article 45 of
the Protocol Amending the Treaty that established CARICOM
commits all 15 members to implement stronger IP protection
and enforcement. Barbados must amend its domestic laws
prior to accepting international treaties and this is a
lengthy process. Infringement in most areas is small-scale,
although video stores rent black market DVD's and videos and
stores sell black market copies of computer software,
designer items, music, videotapes, CD's and DVD's.
Civil law protects physical property and mortgage
claims.
---------------------------------
Transparency of Regulatory System
---------------------------------
Barbados uses transparent policies and effective laws to
foster competition and establish clear rules for foreign and
domestic investors in the areas of tax, labor, environment,
health, and safety. The principal regulatory agencies are
the Ministry of Finance and the Ministry of Economic
Development.
The Ministry of Finance regulates the Exchange Control
Authority of the Central Bank of Barbados, including inward
investment, registration of foreign capital, currency
accounts, and repatriation of capital and earnings. Local
on-shore companies must meet fairly stringent exchange
control requirements, but the government welcomes investment
by non-residents with external sources of financing.
The Ministry of Economic Development administers the
Companies Act and other statutes dealing with company
affairs. The Companies Act is modeled on the Canada
Business Corporations Act, and creates flexibility and
simplicity for the incorporation and operation of companies
in Barbados.
Companies using or manufacturing chemicals need the
Barbados Investment and Development Corporation (BIDC) to
approve their environmental and health practices.
The Ministry of Commerce, Consumer Affairs, and Business
Development on rare occasions imposes price controls, listed
in the Official Gazette.
Barbados enacted legislation in 2000 to create the Fair
Trading Commission (FTC) to provide consumer protection in
telecommunication and utility services. There is no
specific antitrust legislation in Barbados.
The Minister of Industry and International Business or
the Minister of Finance must approve foreign investment.
The Chief Town Planner must approve new construction or
changes in land use. Zoning restrictions protect
agricultural land, and the government pursues policies to
ensure environmental integrity.
The Central Bank must approve real property purchases
for non-residents. If a non-resident uses foreign funds and
pays for the property in Barbados, the Central Bank will
normally approve the transaction. When they sell the
property, non-residents need to pay the 18 percent Property
Transfer Tax in addition to brokerage and legal fees. The
Commissioner of Land Tax charges an annual fee based on the
assessed property value. The government taxes Hotels on 50
percent of the improved value at 0.7 percent, and
residential properties on 100 percent of the improved value
at between 0.2 and 1 percent.
--------------------------------------------------
Efficient Capital Markets and Portfolio Investment
--------------------------------------------------
Local policies seek to facilitate the free flow of
financial resources, unless there is a shortage of funds.
The Government has intervened in recent years in the local
credit market to raise or lower interest rates, limit the
volumes of funds available for borrowing, and borrow on the
local market. There are a variety of credit instruments in
the commercial and public sectors that local and foreign
investors may access.
The legal and accounting professions in Barbados are of
a high quality and their procedures are generally consistent
with international norms. The government is improving the
system for regulating, encouraging, and facilitating
portfolio investments. The Bank Supervision Department of
the Central Bank undertook a self-assessment in 2000, and
found their on-shore and offshore sectors in general
compliance with the Basle Core Principles of Effective
Banking Supervision utilizing the Basle Committee's Core
Principles Methodology. The International Financial
Services Act, which replaced the Offshore Banking Act in
June 2002, incorporates the Basle standards, and provides
for on-site examinations of offshore banks. This allows the
Central Bank to augment its offsite surveillance system of
reviewing anti-money laundering policy documents and
analyzing prudential returns.
Under the authority of the Money Laundering (Prevention
and Control) Act (1998), the government established the Anti-
Money Laundering Authority and its operating arm, the
Financial Intelligence Unit in 2000. The Bank Supervision
Department issued in 2001 revised Anti-Money Laundering
Guidelines for Licensed Financial Institutions. The
Barbados domestic financial sector consists of 6 domestic
banks, 2 merchant banks, 38 credit unions and one money
remitter. The offshore sector includes 4,635 international
business companies, 413 exempt insurance companies and 53
offshore banks (November 2004 figures). Starting in 2001,
the government required Barbados's institutions and legal
entities to reveal the identity of beneficiaries receiving
dividends or interest, with the possible penalty for
American companies of not getting the benefits of the U.S.-
Barbados tax treaty and being subject to the full U.S.
withholding tax at a rate of 30-31 percent.
Assets of commercial banks totaled USD 3.5 billion in
October 2004, and remained relatively consistent throughout
the year. The reserve requirement for commercial banks is
16 percent of deposit liabilities and the minimum deposit
rate is 2.5 percent. The weighted average interest rate was
2.53 percent on deposits and 9.7 percent on loans in October
2004, and has remained within half a percentage point of
each of those levels since 2002.
Domestic deposits expanded by BBD 406.6 million in 2004,
following growth of BBD 441.3 million in 2003. Accounts of
private individuals, business firms, and statutory bodies
recorded increases of BBD 248.9 million, BBD 243.9 million,
and BBD 20 million respectively. Deposits of financial
institutions declined by BBD 44.9 million and government
deposits declined by BBD 46.8 million.
Credit to the non-financial private sector expanded by
BBD 313.3 million in 2004, several times the BBD 23.4
million increase in 2003. Demand for residential mortgages
drove up personal lending by BBD 155.7 million. Lending to
the financial, distribution, and construction sectors
increased in 2004, while credit to the tourism and
agriculture sectors declined.
The Securities Exchange Act of 1982 established the
Barbados Stock Exchange (BSE) to develop the capital market,
assist companies to raise equity, and support the
Government's privatization efforts. The BSE began trading
corporate stocks, and government bonds (not commercial
paper) in 1997, including a cross-border trading arrangement
for shares listed on the Trinidad, Jamaica, and Bahamas
stock exchanges. On August 2, 2001, a new Securities Act
introduced several adjustments to the Capital Markets
Regulation intended to strengthen infrastructure and
transparency, encourage foreign portfolio inflows, boost
cross-border activity, and increase market liquidity.
Additionally, the Ministry of Finance passed regulation of
the BSE and the 17 broker-dealers registered in Barbados to
the newly created Securities and Exchange Commission. The
BSE requires company stocks listed on the Regular Market to
provide evidence of gross revenue or assets in excess of USD
500,000, adequate working capital, competent company
management and a positive dividend profile over three
consecutive years. Stocks traded on the Regular Market are
denominated Ordinary, Preferred, Put-through (formerly
anonymous, electronic share transfers), and Junior (shares
of start-up and new small businesses that require lower
capitalization requirements to list). Reporting and
disclosure requirements for all listed companies include
interim financial statements, and an annual report and
questionnaire. Non-nationals must obtain exchange control
approval from the Central Bank of Barbados to trade
securities on the BSE. A Justice of the Peace monitors all
trades and adjudicates transfers. In 2002, changes in the
regulatory framework included the Regulations to the
Securities Act, the Take-Over Code Regulations and the
Mutual Funds Act, which transfers the regulation of funds to
the Stock Exchange.
Stocks in Barbados surged up 32 percent in 2004. Cave
Shepherd, a local department store, performed the best, with
a 141 percent increase for the year, followed by Goddard
Enterprises and Grace Kennedy and co. with increases of 109
percent and 97 percent respectively. Trading on the BSE
reached 122.2 million shares in 2004 at a value of BBD 451.5
million (around USD 225 million), down in volume from the
130.2 million shares traded in 2003, but up in value from
BBD 394.8 million in 2003. During 2004, nineteen of the
twenty-six companies that trade on the BSE increased, five
declined, one traded firm, and another did not trade. In
2003, sixteen increased, eight declined, and two traded
firm.
The face value of Bonds traded in 2003 was BBD 1,794,400
as compared to BBD 22,517,000 in 2002.
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Political Violence
------------------
Political violence is unknown in Barbados.
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Corruption
----------
Corruption is not a major problem in Barbados.
-------------------------------
Bilateral Investment Agreements
-------------------------------
Barbados has no bilateral investment treaty with the
United States, but has a double taxation treaty and Tax
Information Exchange Agreement. Barbados has bilateral
investment treaties with Canada (CARIBCAN), China, Cuba,
Germany, Italy, Switzerland, U.K., and Venezuela.
--------------------------------------------
OPIC and Other Investment Insurance Programs
--------------------------------------------
In 1999, the Overseas Private Investment Corporation
(OPIC), a development agency of the U.S. government, signed
with Citibank to establish a U.S. $200 million Investment
Facility for the Caribbean and Central America, as a means
of encouraging investment and stimulating economic
development. The Caribbean Development Bank, which is based
in Barbados, administers this program. OPIC provides
financing and political risk insurance to viable private
sector projects, helps U.S. businesses invest overseas, and
fosters economic development in new and emerging markets.
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Labor
-----
In 2004, Barbados' labor force was approximately
148,000, distributed in the following sectors: commerce,
tourism, government, manufacturing, construction,
agriculture and fishing sectors. Unemployment for 2004 was
estimated at 9.9 percent.
Wages in Barbados are among the highest in the
Caribbean. Minimum wages for only a few categories of
workers are administratively established and enforced by
law. The minimum wage for shop assistants, USD 2.13 per hour
is only marginally sufficient to meet minimum living
standards. Most employees earn more. The standard workweek
is a 40-hour, 5-day week. Custom and practice dictate
overtime payment for hours worked in excess of 40 hours.
Workers are guaranteed a minimum of fourteen days of annual
leave and are covered by unemployment benefits legislation
and National Insurance (social security) legislation.
Trade unions, and the leaders of the trade union
movement, enjoy a unique and generally respected position in
Barbados. The major unions recognize the advantages accruing
to Barbados from foreign investment and foreign expertise,
and they are generally flexible and accommodating in their
dealings with employers. 54. Approximately 19-20% percent
of the labor force belongs to trade unions, but this small
percentage belies the power and importance of unions in
Barbados; all key sectors are unionized, with all private
and public employees in agriculture, tourism, and at the
airport and seaport belonging to a single union
confederation.
Local labor leadership is sensitive when it perceives a
lack of respect for Barbadian laws and customs by large,
visible foreign employers, but is generally cooperative with
management in unionized shops. In late 2002 and early 2003,
workers at the new Hilton complex walked off the job,
protesting numerous terminations and what the called unfair
working conditions on the construction site, however, work
on the site resumed shortly after the walkout. There were
no long-term work stoppages called by unions in 2004.
Barbados does not have labor legislation that mandates a
legal process necessary for unions to achieve status as
bargaining agents, and employers have no legal obligation to
recognize unions under the Trade Act of 1954, but most
employers do so when a majority of their employees desire to
be represented. Early contact and rapport with Labor
Ministry officials and union leaders by foreign investors
could pay handsome dividends in later labor harmony.
Additionally, legislation to address termination of
employment and benefits is pending, and health and safety,
sexual harassment, and union recognition laws and
regulations are currently being discussed at the Committee
level in Parliament.
------------------------------
Foreign-Trade Zones/Free Ports
------------------------------
There are no foreign trade zones or free ports in
Barbados.
------------------------------------
Foreign Direct Investment Statistics
------------------------------------
The Government of Barbados compiles no official
statistics on Foreign Direct Investment (FDI). However, the
Barbados Investment and Development Corporation (BIDC)
reported that BBD 26,694,227 was invested in 2004, up from
BBD 9,798,518 in 2003 and BBD 8,604,936 in 2002. New
investment totaled BBD 3,899,000 in 2004, up from BBD
2,783,700in 2003 and BBD 1,350,000 in 2002. (Note: these
are not official FDI statistics, but are numbers based on a
BIDC survey.)
--------------------
Major U.S. Investors
--------------------
American Airlines
Barbados Mills (Archer Daniels Midland)
Bondhus Corp.
Carib Supply (B'dos) Ltd.
Charles T. Gamble Industries
Chevron Texaco
Cingular Wireless
Cirrus Logic
Citicorp Merchant Bank
Continental Airlines
C F Caribbean Flavors
Ecolab Barbados Ltd. (joint venture)
Ernst & Young
Exxon Mobil
Federal Express
Lenstec Ltd.
MSI International Ltd.
Pricesmart Inc.
PriceWaterhouseCoopers
United Parcel Service (UPS)
U.S. Airways
Waggoner Barbados Ltd.
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Contacts for Investment Related Inquiries
-----------------------------------------
Barbados Investment and Development Corporation (BIDC)
Pelican House
Princess Alice Highway
Bridgetown
Barbados
Tel: 246-427-5350
Fax: 246-426-7802
Email: bidc@interport.net
Website: http://www.bidc@bidc.org
BIDC - Miami Office
130 Alhambra Circle, Suite 1000
Coral Gables, Florida 33134
Tel: 305-442-2269
Fax: 305-567-2844
BIDC - Los Angeles Office
3440 Wilshire Boulevard, Suite 1207
Los Angeles, California 90010
Tel: 213-380-2198
Fax: 213-384-2763
BIDC - New York Office
800 Second Avenue, 2nd Floor
New York, New York 10017-4709
Tel: 212-867-6420
Fax: 212-214-9815
Email: bidc@bidc.com
Ministry of Industry and International Business
The Business Center
Upton, St. Michael
Barbados
Tel: 246-430-2229
Fax: 246-228-6167
Website: http://www.barbadosbusiness.gov.bb
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Web Resources
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Barbados Investment and Development Corporation (BIDC)
Website: http://www.bidc@bidc.org
Ministry of Industry and International Business Website:
http://www.barbadosbusiness.gov.bb
U.S. exporters seeking general export
information/assistance or country-specific commercial
information should consult with their nearest Export
Assistance Center or the U.S. Department of Commerce's Trade
Information Center at (800) USA-TRADE, or go to the
following website: http://www.export.gov.
To the best of our knowledge, the information contained in
this report is accurate as of the date published. However,
The Department of Commerce does not take responsibility for
actions readers may take based on the information contained
herein. Readers should always conduct their own due
diligence before entering into business ventures or other
commercial arrangements. The Department of Commerce can
assist companies in these endeavors.
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