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Report prepared by U.S. Embassy Bridgetown, released August 1997*.
I. Executive Summary
This Country Commercial Guide (CCG) presents a comprehensive look at Barbados' commercial environment, using economic, political and market analysis. The CCGs were established [by recommendation of the trade promotion coordinating committee (TPCC), a multi-agency task force,] to consolidate various reporting documents prepared for the U.S. business community. Country Commercial Guides are prepared annually at U.S. embassies through the combined efforts of several agencies.
Barbados is an English speaking country with a long standing democratic tradition, a strong commitment to the rule of law and an open economy with a marked dependence upon imports, primarily from the United States. Barbados imports most of what is consumed on the island. Like many of the smaller Caribbean island states, Barbados' economy and foreign exchange earnings are based on tourism. The economy also benefits from sectors such as international financial services, sugar production and manufacturing, all of which generate foreign exchange. Barbados' monetary policy is focused on maintaining a constant rate of two Barbadian dollars to one U.S. dollar.
The Barbadian economy has performed well since coming out of recession in 1993. Growth rates have averaged about three 3% each year, and inflation has remained low. This trend is expected to continue. On January 1, 1997 the Government of Barbados replaced 11 different taxes -- many of which fell on imports -- with a flat 15 % value added tax (VAT) on almost all goods and services. The tax has made most imports cheaper. This should benefit both Barbadian consumers as well as U.S. and other exporters to Barbados.
The local market is well developed in that virtually all consumer
goods are readily available, if at a high price. U.S. companies
trying to break into the market would be best advised to find
a local agent/distributor and make a long term commitment to exporting
to the region.
II. Economic Trends and Outlook
The Barbadian economy has been experiencing good growth for the past four years, based in large part on improved tourism receipts. The economy grew 4.5 % in 1996, up from a 3 % growth rate in 1995. A 3 % rate of growth is predicted for 1997, bringing GDP to over U.S. $2 billion. Unemployment has decreased in line with the economic expansion, from a high of 24.5 % in 1993 to about 14 % in 1997.
From 1993 until 1996 inflation was kept low at 3 % or under. There was a marked onetime increase in prices when a value added tax was implemented on 1 January 1997. As a result, the Central Bank projects that inflation for 1997 will be about 7 %. Central Government budget deficits have increased over the past two years to a projected 4 % of GDP in 1996. Nevertheless, foreign exchange reserves have increased substantially, reaching a record USD 300 million, or 14 weeks of imports, by early 1997. The exchange rate visvis the U.S. dollar has remained unchanged (at Bds$2.00 = U.S.$1.00) since the end of 1975.
Much of the economic growth has come as a result of increases in tourism and its downstream effects, in particular construction. Another source of growth has been financial and other services. Sugar production has increased significantly from a drought-caused low in 1995. However, over the past decade agricultural and manufacturing sectors have not shown much growth. In June 1997, the Clinton Administration presented a proposal to the Congress that would allow Caribbean Basin Initiative countries improved market access in the textile and apparel sectors. It is hoped that enhanced CBI access will stimulate export-oriented manufacturing.
The commercial environment is generally favorable, although tax rates and import tariffs remain high. Infrastructure, including roads, ports, water service, electricity, and telecommunications is good if expensive. The attitude of government is generally favorable toward business and offers a variety of incentives to investors. The Government of Barbados focuses its resources on education and health care. Over the next five years, the government will be carrying out major investments in school computerization, the installation of a modern waste disposal system for the heavily populated south and west coasts, and upgrades of the sea and air ports.
Key growth sectors remain tourism and tourism related industries,
especially construction. As a country with a relatively narrow
resource base and limited production, Barbados imports much of
what it needs to survive, including energy, food, and most consumer
products. As the Barbadian economy continues to grow, trade opportunities
will increase in parallel for U.S. exporters of goods to supply
hotels and restaurants, building materials, medical equipment,
and water and electricity conservation equipment. Barbadian attitudes
toward the United States and toward American business are generally
favorable. Approximately one-fourth of the country's imports in
1996 were sourced from the United States. Nevertheless, American
business faces strong competition from Canada, the United Kingdom,
and from within the Caribbean Community (CARICOM).
III. Political Environment
Barbados has a cordial, longstanding relationship with the United States. As a democratic country and a member of the Commonwealth of Nations, many of Barbados' foreign policy goals coincide with our own. Barbados is also an active member of the Caribbean Community (CARICOM), with which it sometimes votes as a bloc in international fora.
Major issues affecting the business climate in Barbados include the taxation of business and incentives given to business. Both of the major political parties the Barbados Labor Party (currently, the Government) and the Democratic Labour Party (the opposition) are probusiness, although they may have differences in approach to macroeconomic policy. Overall, the differences between the two parties are minimal.
Barbados is a parliamentary democracy. Executive authority is
vested in the prime minister and cabinet, which is collectively
responsible to the Parliament. The Prime Minister is appointed
by the governorgeneral as the member of the House of Assembly
best able to command the support of the majority of the members.
The Prime Minister usually selects a cabinet from his party members
in the legislature. The bicameral Parliament consists of Assembly
(the lower house) with 28 elected members and the Senate (the
upper house) with 21 members appointed by the governorgeneral.
The term of office is five years, although the ruling party may
call elections at any time to seek a new mandate. Elections must
be held on or before September 1999.
IV. Marketing U.S. Products and Services
Distribution and Sales Channels:
Most imports are made by wholesalers, although some retailers
import products directly from manufacturers, wholesalers, and
retailers in the United States. Distribution agreements are common
because manufacturers often grant countrywide or regional exclusive
distribution agreements
Use of Agents and Distributors; Finding a Partner:
Although the use of an agent or distributor is not required, it
is often helpful to have a local point of contact if the U.S.
exporter wishes to market a product or service on a regular basis.
The U.S. Department of Commerce, through the Foreign Commercial Service at the U.S. Embassy in Bridgetown, Barbados, can assist U.S. exporters find agents and distributors through the following services:
Agent Distributor Service (ADS): This service assists U.S. firms seeking representation for their products and services. The Embassy will have a search made for suitable representatives and a report prepared listing firms that have read the product/service literature and have agreed to consider a business relationship. Fee: to be determined.
Gold Key Service: This service consists of a survey of potential representatives or customers based on the client's requirements, as well as prearranged appointments with these prospects. Fee: to be determined.
Please contact your local District office of the U.S. Department of Commerce to find out how to order the service(s).
Franchising:
All franchises must be approved by the Minister of Finance, who
will evaluate the potential competitive impact on nonfranchised
local businesses. Franchises pay an initial registration fee of
Bds. $10,000 (U.S. $5,000), and annual renewal fees of Bds. $2,000
(U.S. $1,000). All franchises must be registered with the Ministry
of Finance in order to operate legally; only legallyoperating
franchises may repatriate profits and capital. Process franchises,
such as those used in manufacturing or design, must also be registered
so that royalties can be remitted abroad.
Direct Marketing:
Direct marketing is not common in Barbados, although Avon has
established a successful foreignowned marketing organization
here. The Barbados Investment and Development Corporation (BIDC)
can be helpful in arranging this type of activity. See Appendix
E (pg. 27) for BIDC contacts.
Joint Ventures/Licensing:
There is considerable joint venture and licensing activity in
Barbados. The Barbados Investment and Development Corporation
(BIDC) can be helpful in arranging this type of activity. See
Appendix E (pg. 27) for BIDC contacts.
Establishing an office:
By law, a locallyregistered attorney will have to draft
and file Articles of Incorporation. For an International Business
Company (IBC) the cost of filing the application at the Corporate
Affairs office is Bds. $750. The cost of share certificates, a
company seal, and other secretarial documentation required to
commence operations usually does not exceed an additional Bds.
$250. Attorneys fees are usually quoted at about Bds. $3,000,
but those fees are negotiable. Both registration fees and attorney's
fees are normally lower for incorporation of a local company under
the Companies Act.
The Articles of Incorporation must conform to the Companies Act; among the requirements is that at least one of the incorporators must be a Barbadian citizen or legally permanent resident living in Barbados. For an IBC, no more than onetenth of the stock may be owned by a Barbadian citizen or legally permanent resident living in Barbados.
A name check with the Department of Corporate Affairs and Intellectual Property (Ministry of Finance) must be performed. The fee is Bds $35 (U.S.$17.50). This fee is normally included in the attorney's fee.
Any number of shares may be issued. Shares donot have to be fully subscribed and paid before incorporation takes place.
Notice of the formation of the company is published in the Official Gazette by the Corporate Affairs and Intellectual Properties Office.
An IBC is required to obtain a license from the Ministry of International Trade and Business in order to operate. This is a fairly routine procedure and costs about Bds.$200. This fee is normally included in the attorney's incorporation fee. This license allows the company to import inputs duty-free.
Selling Factors/Techniques:
In sales of services and manufactured goods, Barbadians prefer
to buy proven and brand name goods. Because sales volumes may
be low and storage space may be limited, it is not uncommon that
Barbadians purchase smaller lots of goods more often than is the
norm in larger countries.
Advertising and Trade Promotion:
Most businesses advertise in newspapers or on radio; the one local
television station does not have programming in the morning hours
and has started a print ad service on television (texts and telephone
numbers appear on the screen). Additionally, local access to American
channels via local cable is increasing (for example, ESPN, Fox
and HBO), which could be used to increase television advertising.
List of newspapers and radio and television stations
Newspapers:
The Barbados Advocate
Fontabelle
St. Michael
Tel: 246/4261210
Fax: 246/4297045
The Broad Street Journal
Hoyos Publishing Inc
Letchworth Complex
The Garrison
St. Michael, Barbados
Tel: 246/4278770
Fax: 246/4378772
Caribbean Week
Lefferts Place
River Road
St. Michael, Barbados
Tel: 246/4361902
Fax: 246/4361904
The Nation
Nation House
Fontabelle
St. Michael, Barbados
Tel: 246/4366240
Fax: 246/4276968
Radio Stations:
Barbados Broadcasting System 90.7 FM and
Faith 102.1 FM
"Dayrells"
St. George, Barbados
Tel: 246/4379550
Fax: 246/4379554
Barbados Rediffusion Service Ltd.
790 AM Voice of Barbados, 104.1 Yess FM, Star Radio Cable
River Road
Bridgetown, Barbados
Tel: 246/4307300
Fax: 246/4298093
Caribbean Broadcasting Corporation
The Pine
St. Michael, Barbados
Tel: 246/4292041
Fax: 246/4294795
Television:
Caribbean Broadcasting Corporation
The Pine
St. Michael, Barbados
Tel: 246/4292041
Fax: 246/4294795
Caribbean Broadcasting Union
Wilkins Lodge
Two Mile Hill
St. Michael, Barbados
Tel: 246/430-1000
Fax: 246/429-2171
Pricing Product:
Prices in Barbados are high, typically multiples of what a product
would sell for in the United States. Import tariffs and taxes
are high, competition at the wholesale and retail level is minimal.
To escape high prices Barbadians frequently make shopping trips
to San Juan, New York, and Miami.
Selling to the Government:
Significant opportunities exist, especially when project financing
is available from
international financial institutions or from foreign government aid sources which do not require purchase from donor country companies.
Protecting your Product from IPR Infringement:
The Government of Barbados has committed to submit new legislation
in 1997 giving extensive IPR protection. Pirating of U.S. artistic
products is the major problem now facing U.S. companies. Copyright
protection is a key part of the upcoming legislation.
Need for a Local Attorney:
A local attorney is necessary when incorporating and advised under
any circumstance.
The Consular Section of the U.S. Embassy in Bridgetown (Tel: 246/4310225, Fax: 246/4310179) maintains a current list of lawyers. The following list is in alphabetical order. Information is thought to be current but no assurance as to the accuracy of information contained herein is made.
BRATHWAITE, Ms. Vere P., 6 Glenda House, Roebuck Street, Bridgetown, Tel: 246/4361986, Fax: 246/436-1987. B.Sc. Honors (Public Administration) University of the West Indies (UWI), 1979; LL.B. Honors, UWI, 1982. Holbein Law Tutors, London. Lincoln's Inn, London, 1984. Call to Bar of England and Wales, 1984. Called to Barbados Bar, 1985. General Practice: Civil and Litigation. Collection cases Fee based on bar association published fees or negotiated amounts. Specialization: Offshore sector services, civil cases, insurance law, personal injury cases, land law, conveyances and mortgages. Language: English.
CARMICHAEL, Dr. Trevor A. Chancery House, High Street, Bridgetown, Tel: 246/4310070/0074. B.Sc. (Econ), M.A., Ph.D. Graduated November 1977 at Middle Temple, London, with Degree of the Utter Bar. Specialization: Insurance law, commercial law, tax law, real Estate, trade marks and charities. Collection cases Fee based on bar association published fees or negotiated amounts. Languages: English, Spanish, French.
CHASE, Ms. Cicely P. Epworth Chambers, Pinfold Street, Bridgetown, Tel: 246/4365379, Fax: 246/436-3843. Hugh Wooding Law School, Trinidad (LL.B., Hons.), 1983. General practice: family law, conveyancing law, civil litigation and corporate law, criminal cases, trade disputes. Collection cases percentage basis (retainer must be paid up front to cover legal expenses and preliminary legal work. Thereafter, a debt collection fee will be charged on all collections and balance of legal fees for further legal work). Specialization: Civil litigation. Language: English.
CLARKE, Ms. Cherry Brady, B.A., M.A., LL.B. (Hons.). "Harriet House," Spry Street, Bridgetown, Tel: 246/435-0867, Fax: 246/437-6543. Norman Manley Law School (Jamaica), 1985. Specialization: International business corporations, Personal injury, family law and company law. General practices: Estate cases, trade disputes, collection cases on a percentage basis if settled out of court, fee basis if litigated, contingency for either in some circumstances. Language: English.
CHELTENHAM, Mr. Patterson K.H. "Charlton House," Whitepark Road, St. Michael, Tel: 246/430-8953, Fax: 246/4310143. Graduated Hugh Wooding Law School (Trinidad). Specialization: Personal injury, labor law, divorce, criminal law, general and civil law. Collection cases Fee based on bar association published fees or negotiated amounts. Also member of the Saint Lucia bar. Languages: English and French.
CHELTENHAM, Dr. Richard L., Q.C., Ph.D. "Charlton House," Whitepark Road, St. Michael, Tel: 246/4310291, Fax: 246/4310143. Graduated Council of Legal Education and Inns of Court, Middle Temple, London, July 1970. Specialization: Motor vehicle claims, criminal law, family law, successions, constitutional and public law, labor law involving unlawful dismissal, and extradition.
ESTWICK, Mr. Tyrone 0. Suite 4, "Beacon House," Walrond Street, Bridgetown. Tel: 246/4262461, Home: 246/4206845, Fax: 246/426-2585. Graduated Hugh Wooding Law School (Trinidad), 1985. Also, B. Sc. (Public Administration), LL.B. General practice criminal and civil (estates, conveyancing). Collection cases Based on a percentage basis. Language: English.
FORDE, Mr. Henry de B., Q.C., M.A., LL.B. (Cantab.). Juris Chambers, "Keys House," Suite 203, Roebuck Street, Bridgetown, Tel: 246/4295320/2208/2203, Home: 246/4333388, Fax: 246/4292206. Education: Middle Temple, London; Christ's College, Cambridge (B.A., 1956, LL.B., 1957, Research Fellow, 195759). Called to the Bar in England June 1959 and in Barbados, October 1959. Attorney General and Minister of Foreign Affairs of Barbados, September 1976 to June 1981. Specialization: Tax law, international law, arbitration, building, banking, commercial, corporation, insurance and real estate law. General practice: civil litigation, collection cases, trade disputes, trade marks, industrial and intellectual property law, maritime law, family law, export/import, customs and freight forwarding law, immigration law, international commercial transactions, offshore services law, trusts and pensions. Languages: English and French.
FORDE, Mr. John Fitzgerald Alexis, LL.B. (Hons.), LL.M. (Corporate and Commercial Law). Reece Chambers, "Mottley House," Coleridge Street, Bridgetown, Tel: 246/4376008, Fax: 246/4293769. Graduated Hugh Weeding Law School, Trinidad (LL.B. Hons, 1990) and Queen Mary Westfield College, London (LL.M. Corporate and Commercial Law, 1991). Admitted to practice 1991. General practice, estate cases, trade disputes, criminal cases. Collection cases Fee based on percentage; minimum of 25 % of total amount. Also member of the Guyana Bar. Language: English.
KISSOON, Mr. Latchman P. Firm of Kissoon & HanomanKissoon, Synagogue Lane, Upper James Street, Bridgetown, Tel: 246/4269390/9394, Fax: 246/4284595. Graduated November 1970 at Inner Temple, London, as BarristeratLaw. General Practice. Specialization: Criminal and international law. Collection cases Fee based on percentage; 25% or "to be negotiated". Criminal cases: Trade disputes on a limited basis. Also member of the England and Guyana Bars. Languages: English, Hindi, Caribbean Creole.
REIFER, Ms. Margaret A. Inn Chambers, Inga Lodge, Pinfold St., Bridgetown, Tel: 246/437-3900. Hugh Weeding Law School (LL.B., July 1982, Upper Second Class Honors). Civil law practice. Collection cases Fees in accordance with the Attorneys'AtLaw Renumeration for NonContentious Business Rules (1983) as follows: Local clients On first $50,000, 15 %; on next $50,000, 10 %; on next $400,000, 5 %; on next $500,000, 4 %; Thereafter, 2 %. Overseas clients: 25 % or to be negotiated being not less than that prescribed for local clients. Specialization: Corporate law, family law, conveyancing, probate. Language: English.
SIMMONS, Mr. David, Q.C. Equitas Chambers, "Alexander House," Pinfold Street,
Bridgetown, Tel: 809/4261846, Home: 246/4363900. University of London/ Lincoln's Inn, LL.B. and LL.M. General practice: primarily civil (especially estate cases, trade disputes); selected criminal cases accepted (mainly murder and manslaughter). Specialization: commercial and company law. Collection cases handled on a percentage basis. Language: English.
TAITT, Ms. Monique C. Reece Chambers, "Mottley House," Coleridge Street, Bridgetown, Tel: 246/4366727, Home: 246/4244113, Fax: 246/437-6777. Hugh Weeding Law School, Trinidad (LL.B., Hons.), 1989). General legal practice. Collection cases minimum fee is 25 % of total collected. Member of the Trinidad and Tobago Bar. Language: English.
WORRELL, Mr. Randall. Equitas Chambers, "Alexander House,"
Pinfold Street,' ,Bridgetown, Tel: 246/4368815. London School
of Economics and Political Science, University of London (LL.B.)/
Lincoln's Inn; Council of Legal Education (England). Called to
the Bar of England and Wales. Language: English.
V. Leading Sectors for U.S. Export and Investment
The U.S. Embassy in Bridgetown has identified the following sectors as best prospects for U.S. exports:
| [In alphabetical order] | [Sector name & ITA code] |
| Construction Materials | BLD |
| Food Processing and Packaging Equipment | FPP |
| Hotel and Restaurant Equipment | HTL |
| Household Appliances | HCG |
| Medical Equipment | MED |
| Personal Computers and Peripheral Equipment and Accessories | CPT |
| Personal and Home SecurityRelated Equipment | SEC |
| Processed Foods (all types) | FOD |
| Sportswear and Sports Equipment | SPT |
| Telecommunications Equipment | TEL |
Water and Energy Conservation Consumer Goods
For Agricultural Products:
Bulk wheat and Coarse Grains
Soybean and Soybean products
Snack Foods
Note for Exporters: Barbadian consumers buy goods based on price, quality and habit. Long-standing connections with the United Kingdom and Canada have tended to favor exporters from those countries. However, close proximity to the United States, price, quality and vast selection have induced Barbadian businesses to focus increasingly on U.S. providers. Miami has become the nexus of much of the commerce of the Caribbean in large part because of its status as the hub of regional air and sea transportation. Best prospects focus on tourism related purchases, associated construction and agricultural products which can not be sourced from the Caribbean. U.S. firms have an advantage where they can use proximity and existing excellent air and sea links to provide quality merchandise at competitive prices.
VI. Trade Regulations and Standards
Tariffs and Import Taxes:
Barbados is an active member of the CARICOM, and as such, has
implemented CARICOM's common external tariff for goods, with duties
ranging from 0-20 %. An additional one 1% environmental levy is
also imposed. Tobacco products, motor vehicles, alcoholic beverages
and petroleum products are subject to an exise tax. A value added
tax (VAT) was instituted on January 1, 1997, replacing eleven
existing taxes, including the consumption tax and stamp duties,
which fell primarily on imports. The VAT is 15 % on most goods
and services and
7.5 % on hotel accommodations. A few specific goods and services,
for example water and medical services, have been zerorated
or exempted from the tax.
Customs Valuation:
Customs valuations are based on the CIF value of the supplier's
invoice.
Import Licenses:
Import licenses are required for most agricultural products which
can be sourced locally or within the CARICOM community. The list
includes, carrots, onions, chicken, fish and rice. A complete
list of items that require an import license can be obtained from
The Government Printery (tel.246/436-6776). The publication is
called Open Import General License Regulation 1995.
Export Controls:
There are no significant export controls.
Import/Export Documentation:
Airway bills or bills of lading depending on the method of import
must be presented to customs when goods are imported. The Caricom
document invoice, the supplier's invoice documenting all items
in the shipment, the C-60 form signed by the importer - indicating
insurance paid, freight paid and invoiced items, and, a C-63 form
- indicating the items shipped, the weight, the shipper, the tariff
code etc. must also be attached.
For exports, the C-63 form is also used. Commercial invoice and the relevant central bank forms must also be presented to customs. When import licenses are required, they should be obtained prior to importation. The use of a registered customs broker is recommended when preparing export/import documents.
Temporary Entry:
Most goods can be brought temporarily into Barbados, though they
must be registered by Customs at the port of entry. Frequently,
a bond must be posted to ensure the reexport of the goods.
Prohibited Imports:
Almost all goods can be imported into Barbados, though some require
an import license. Beer and fruit drinks theoretically can be
imported with a license; however, licenses are unavailable for
imports from other than CARICOM countries.
Standards:
Importing goods which meet U.S. or European standards is not a
problem. Very few local companies have successfully completed
the ISO 9000 certification process.
Free Trade Zones/Warehouses:
There are no free trade zones in Barbados. The government permits
goods to be stored in bonded warehouses with duties collected
upon removal.
Membership in Free Trade Arrangements:
Most products manufactured in Barbados are eligible for dutyfree
and quotafree entry to major world markets:
Under the Caribbean Basin Initiative (CBI) and the Generalized System of Preferences (GSP), many products made in Barbados enter the United States duty free provided one of either two requirements are met: 1) at least 35 % of the product's value originated in Barbados, or 2) at least 20 % of the product's value originated in Barbados if not less than 15 % originated in the United States or Puerto Rico.
Under CARIBCAN, products manufactured or assembled in Barbados can be exported to Canada free of duty if at least 60 % of the exfactory price of the product originated in Barbados or Canada.
Under the Lome IV Convention, certain products meeting specified rules of origin can be shipped to countries of the European Union and their overseas departments free of duty.
As a member of the Caribbean Community Common Market (CARICOM), products manufactured in Barbados can be exported free of customs duties to the markets of the other CARICOM states if the products meet a minimum valueadded criterion or a change in customs classification.
Under a CARICOMVenezuela agreement, Barbadianmanufactured products can be exported to Venezuela dutyfree if at lease 50 % of their value is local valueadded or if the final product is classified under a different tariff heading than any of the material inputs.
CARICOM signed a trade agreement with Colombia that allows dutyfree treatment into Colombia of a list of goods which comprised 86 % of CARICOM's exports to Colombia (in a particular base year). Tariffs on goods counting for another 4% of exports to Columbia are gradually being eliminated. CARICOM and Columbia plan to negotiate Colombia's tariff liberalization on the remaining goods as well as tariff concessions to be made by the four major CARICOM economies (Jamaica, Trinidad and Tobago, Guyana, and Barbados) and the Bahamas. The agreement with Colombia has a 40 % regional content rule of origin.
Barbados is a member of the General Agreement on Tariffs and Trade
(1947) and has signed, but not yet implemented, all provisions
of the World Trade Organization (1994).
VII. Investment Climate
Investment Practices:
The Government of Barbados through the Barbados Investment and
Development Corporation strongly encourages foreign direct investment
in Barbados. Foreign nationals receive the same protections as
local citizens. Barbados is rightfully proud of its tradition
of the rule of law. The police and court systems are efficient
and unbiased, and the government operates in a transparent manner.
Foreign investment should be registered with the Central Bank
so that profits and capital may be freely repatriated.
Currency Conversion and Transfer:
The Central Bank of Barbados administers exchange control regulations
under the Exchange Control Act. Individuals may convert the equivalent
of U.S.$2,500 per year without special permission if they are
traveling outside the country by applying to a local bank. Amounts
in excess of U.S. $2,500 may be obtained upon application to the
Central Bank. Profits and capital from foreign direct investment
usually may be repatriated if the investment was registered with
the Bank at the time the investment was made. The Central Bank
may limit or delay conversions depending on the level of international
reserves under the Bank's control.
Investment Incentives:
Incentives for manufacturing are available under The Fiscal Incentives
Act (1974), which does not discriminate between foreign and national
ownership. Any manufacturer may qualify for a maximum 10year
tax holiday by satisfying a value added criterion or as
a socalled "enclave" (International Business Company)
that, by definition, exports 100 % of its output to markets outside
of CARICOM.
Under Section 14A of the Income Tax Act, any manufacturing company in Barbados can enjoy tax reductions which are based on the percentage of its profits derived from export income. Again, no distinction is made between locally and foreignowned companies. The scale is as follows:
Export Profits Rebate of Income Tax as a percentage of Total Profits Income Tax on Export Profits
| Up to 20% | 35% |
| More than 20% and up to 40% | 45% |
| More than 40% and up to 60% | 64% |
| More than 60% and up to 80% | 79% |
| Above 80% | 93% |
An International Business Company, which must by the terms of its incorporation export 100 % of its manufacture, enjoys an even more advantageous tax structure; the rate of tax is as follows:
| For gains and profits up to $10 million | 2.5 % |
| More than $10 million and up to $20 million 2.0% | 2.0% |
| More than $20 million and up to $30 million | 1.5 % |
| More than $30 million | 1.0 % |
An IBC is entitled to import into Barbados machinery and equipment free from certain taxes and duties. An IBC also enjoys exemption from Withholding Tax and Transfer Tax on the transfer of its assets. An IBC also may effect certain foreign exchange transactions for which other types of companies would need permission from the Central Bank of Barbados which administers the Exchange Control regulations.
The Training Grant Scheme, which makes modest reimbursements toward training costs at the time of company startup, is similarly to both locally and foreignowned companies. The Barbados Investment and Development Corporation (BIDC) administers this program.
The BIDC also administers two programs that favor local business. The Export Grant and Incentive Scheme, helps both locally- and foreignowned companies (but only those foreign companies with management/ marketing branches located in Barbados). The scheme helps to defray export costs such as the preparation and shipment of samples and the development of marketing materials. The second is a Technical Assistance Program. which helps companies solve a range of problems. Local small businesses can also use the services of the BIDC's Small Business Development Centre, which offers conference room facilities, communications services, shortterm office space, and access to a commercial library, among other services.
Expropriation and Compensation:
Like most governments, the Government of Barbados reserves the
right to compulsorily acquire property for public uses, but the
Embassy is not aware of any disputes involving the Government's
exercising this right.
Dispute Settlement:
The United States and Barbados are both parties to the General
Agreement on Tariffs and Trade, under which disputes involving
that agreement may be subject to dispute resolution by an arbitral
panel. There is no forum available to private disputants, other
than courts of appropriate jurisdiction in both countries. Barbadian
law is based on the British "common law" system. Barbados
is a member of the International Center for the Settlement of
Investment Disputes (ICSID, also known as the Washington Convention).
However, Barbados has not yet ratified the New York Convention
(1958) on the Negotiation and Enforcement of Foreign Arbitral
Awards, although the New York Convention's provisions have been
written into Barbados', domestic law.
Political Violence:
Political violence is unknown in Barbados.
Performance requirements and incentives:
Other than reductions on income tax rates for exporting manufacturers,
there are no performance requirements or incentives in Barbados.
Right to Private Ownership and Establishment:
Foreign investment is subject to the approval of the Government
(normally, the Minister of Industry, Commerce and Business Development
or the Minister of Finance). Please refer to sections on franchises
and on investment practices.
Protection of Property Rights:
Property rights are protected in Barbados. Liens can be placed
on property, including chattel property; mortgage claims can be
pursued in court.
Bilateral Investment Arrangements:
Barbados has not yet signed a bilateral investment treaty with
the United States, though the Government has indicated an interest
in concluding such a treaty with the aim of encouraging more direct
investment by U.S. nationals.
Major U.S. Investors:
[List may not be complete]
VIII. Trade and Project Financing
Barbadian, Canadianparent, and United Kingdomparent banks operate on equal terms in Barbados. Although U.S.parent commercial banks have operated in Barbados in the past, none currently do so. Financing using domesticallygenerated funds is generally available only to Barbadians or permanent residents of Barbados.
The Embassy recommends that US sellers to Barbados require payment using confirmed letters of credit to avoid difficulties in collecting past due accounts from a party hundreds of miles distant at least until firms have a satisfactory record of doing business with each other.
Both Barbados and the United States are members of the InterAmerican Development
Bank; as such, U.S. firms are eligible to bid on IDBfinanced projects. The Embassy submits notice of these projects to the National Trade Data Bank as soon as information is available about them.
Commercial Banks:
The Bank of Nova Scotia
Mr. Doug Cochrane, Manager
P.O. Box 202
Broad Street
Bridgetown, Barbados
Tel: 246/4313000
Fax: 246/4260969
Barbados National Bank
Mr. Coswin Branch
Broad Street
Bridgetown, Barbados
Tel: 246/4315700
Fax: 246/429-2106
Barclays Bank PLC
Mr. Tony Marshall, Senior Caribbean Director
P.O. Box 301
Broad Street
Bridgetown, Barbados
Tel: 246/4295300
Fax: 246/4310608
Caldon Finance Merchant Bank (B'dos) Ltd.
Mr. Ian Murphy, Consultant/Director
Tweedside Road
St. Michael
Tel: 246/4377550
Fax: 246/4364999
Canadian Imperial Bank of Commerce
Mr. David McConney, Managing Director
P.O. Box 405
Broad Street
Bridgetown, Barbados
Tel: 246/4172400
Fax: 246/4248923
Caribbean Commercial Bank Ltd.
P.O. Box 1007C
Broad Street
Bridgetown, Barbados
Tel: 246/4312500
Fax: 246/4312530
Caribbean Financial Services Corporation
Radley Court, Collymore Rock
St. Michael, Barbados
Tel: 246/4361960
Fax: 246/4261869
Mutual Bank of the Caribbean Inc.
Trident House
Lower Broad Street
Bridgetown, Barbados
Tel: 246/4368335
Fax: 246/4295734
Royal Bank of Canada
Barbados & Eastern Caribbean Regional Office
1st Floor, Bldg1, Chelston Park
St. Michael, Barbados
Tel: 246/4316501
Fax: 246/430-9160
IX. Business Travel
A. Business customs
For men, suit and tie is the normal business attire for nonBarbadians; Barbadian men sometimes wear a "shirtjack," which is akin to a safaritype shortsleeved jacket with matching trousers. For women, a long or shortsleeved suit, or a dress, is appropriate. Business hours are generally from 8:00 am 4:30 PM. Luncheon meetings are common, but breakfast meetings are not. Business appointments are generally required, and punctuality in business affairs is appreciated.
B. Travel Advisory and Visas
No Travel Warnings are in effect. Visas are not necessary for
U.S. citizens carrying United States passports. In fact, U.S.
citizens traveling direct from the U.S.A. to Barbados may be admitted
without a passport for a period not exceeding three (3) months,
as long as they present photo identification establishing their
identity and nationality, along with a valid return ticket. However,
U.S. citizens may find it easier to reenter the United States
if they carry a valid passport. Barbados collects a departure
tax of Bds. $25.00 (U.S.$13.00).
C. Holidays
D. Business Infrastructure
Airport: Grantley Adams International.
Runway: L 6,200 feet x W 150 feet.
Accommodates international, regional, and local traffic; passenger
and freight service.
One US commercial airline flies to the US directly
to San Juan, Miami, and New York, and by connecting flights to
the rest of the world daily. Canadian and British airlines fly
direct service to those countries, and Caribbeanbased air
carriers provide frequent service to the rest of the Caribbean
and to Venezuela.
Language: English.
Communications:
There is one local television station (governmentowned Caribbean
Broadcasting Corporation) which, in addition to local programming,
sells satellite service which broadcasts a number of U.S. "cable"
television channels. There are two AM, and four FM radio stations,
and two daily newspapers (the Advocate and the Nation). The Caribbean
News Agency (CANA) is based in Barbados. Many U.S.based
courier and package delivery services operate in Barbados, and
the Barbados Post Office has an express delivery service that
guarantees delivery within 48 hours. Incountry, mail is
delivered twice daily in Bridgetown and its suburbs, and once
daily in rural districts. Local letter rates are Bds. $0.30 for
unsealed letters and Bds. $0.35 for sealed (Closed) letters, and
Bds. $0.90 for letters to the United States.
Most business offices and hotels have facsimile machines; travelers can generally use hotels, machines on a fee basis. Barbados External Telecommunications Ltd. (BET) has a service whereby that firm can receive facsimile messages at no fee to the addressee, but the senders pay to send faxes. Incoming facsimile messages should have the addressee's name clearly marked, and sent to the following fax number: 246/4294854. Senders are charged Bds. $5.00 for the first page plus Bds. $2.00 for each additional page, plus any longdistance phone charges. Telephone calls and faxes are free within Barbados, while calls and faxes to the US cost Bds. $3.00 per minute of transmission time. Various secretarial service firms will also send facsimile messages for a fee.
Making telephone calls to the US and to most parts of the world is generally as easy as making calls within the US. Tone service is usually available. Telephone operators accept most global (as opposed to US only) calling cards for billing AT&T, Global Sprint, Bell, Discover, Visa and MasterCard are accepted. MCI, USSprint, and American Express are not accepted by the long distance telephone operators for billing.
Health: The main hospital is the 600bed Queen Elizabeth Hospital in Bridgetown, and there are several wellequipped health clinics distributed throughout the island. The medical community includes specialists trained in the Caribbean, the United States, Canada, and Europe.
Food: Foods are safe to eat. Specialties of the island include flying fish (and many other types of fish) and Baxter Road chicken. Fresh tropical fruits and vegetables are readily available. Fresh water around the island is safe to drink.
Other: Electricity is 110 volts/50 cycles.
(The U.S. is 110 volts/60 cycles. The cycle difference affects
made-for-the-U.S. electronic items with timing mechanism.)
I. Profile
Population: 264,400 (estimated mid-1996 ).
Population Growth Rate: 0.3 % (estimated mid-1996)
Religion(s): The population is 70 % Anglican. Of the remaining 30 %, Methodists, Moravians, and Roman Catholics are represented most strongly. Hindu, Muslim, Jewish and Baha'i congregations also exist in Barbados..
Work Week: Monday through Friday, 8:00 a.m. 4:30 p.m. Banking hours are 8:00 a.m. to 3:00 p.m. from Monday through Thursday, and from 8:00 a.m. to 5:00 p.m. on Friday; closed Saturday.
Appendix B: Domestic Economy
Please see attached table.
Barbados
Key Economic Indicators .(in millions of U.S. dollars,unless otherwise noted)
| 1995 | 1996 | 1997 (est.) | |
| Nominal GDP (U.S.$ millions) | 1,900 | 1,999 | 2199 |
| Population (in thousands, est) | 264 | 264 | 264 |
| Nominal GDP per capita (in U.S. $) | 7,200 | 7,570 | 8330 |
| Unemployment | 21 | 16 | 14 |
| Foreign Exchange Reserves (U.S.$ millions) | 203 | 264 | 300 |
| Average Exchange Rate (local dollar/U.S. $) | 2. | - 2 | .- 2.- |
| Debt Service Ratio | 5.9 | N/A | N/A |
Appendix C: Trade
| Total Exports (millions US$) | 238.8 | 280.0 | N/A |
| Total Imports (millions US$) | 770.5 | 833.5 | N/A |
| Imports from U.S. (millions US$) | 185.7 | 222.2 | N/A |
| Exports to U.S. (millions US$) | 37.7 | 41.2 | N/A. |
Appendix D: Investment Statistics
Statistics on the stock of foreign direct investment are not available.
Appendix E: U.S. and Country Contacts
Government of Barbados
Office of the Prime Minister,
Minister of Finance and Economic Affairs, Defense and Security
The Rt. Honorable Owen S. Arthur, MP
Government Headquarters
Bay Street
St. Michael, Barbados
Tel: 246/4366435
Fax: 246/4369280
Office of the Deputy Prime Minister, Minister of Foreign Affairs
and Tourism,
International Transport & Environment
The Honorable Billie A. Miller, MP
Government Headquarters
Bay Street
St. Michael, Barbados
Tel: 246/4317108
Fax: 246/4369250
Ministry of Civil Service
The Honorable Glyne Murray
1 Culloden Road
St. Michael, Barbados
Tel: 246/4262390
Fax: 246/4296652
Ministry of International Trade & Business
The Honorable Philip Goddard
No. 1 Culloden Road
St. Michael, Barbados
Tel: 246/4270427
Fax: 246/4296652
Ministry of Industry, Commerce & Business Development
The Honorable Reginald Farley
Reef Road
Fontabelle
St. Michael, Barbados
Tel: 246/4275270
Fax: 246/4310056
Ministry of Labour, Community Development, and Sports
The Honorable Rudolph "Cappy" Greenidge, MP
Pine East/West Blvd.
The Pine
St. Michael, Barbados
Tel: 246/4292191
Fax: 246/4268959
Ministry of Agriculture & Rural Development
The Honorable Rawle Eastmond
Graeme Hall
Christ Church, Barbados
Tel: 246/4284150
Fax: 246/4208444
Ministry of Education, Youth Affairs & Culture
The Honorable Mia Amor Mottley
Elsie Payne Complex
Constitution Road
Bridgetown, Barbados
Tel: 246/4273272
Fax: 246/4362411
Ministry of the Public Works, Transport & Housing
The Honorable George W. Payne, MP
P.O. Box 25
The Pine
St. Michael, Barbados
Tel: 246/4292863 Ext. 203
Fax: 246/4378133
Ministry of Health
The Honorable Elizabeth Thompson, MP
Jemmotts Lane
St. Michael, Barbados
Tel: 246/4265080
Fax: 246/4265570
Trade Associations/Chambers of Commerce in Barbados:
Barbados Association of Professional Engineers
P.O. Box 666
Bridgetown, Barbados
Tel: 246/4256105
Fax: 246/4256673
Barbados Bar Association
Geddes Grant Building
White Park Road
St. Michael, Barbados
Tel: 246/4377316
Barbados Chamber of Commerce and Industry
Mr. Rolph Jordan, Executive Director
Nemwil House
Collymore Rock
St. Michael, Barbados
Tel: 246/4260747
Fax: 246/4292907
Barbados Employers' Confederation
Nemwil House
Collymore Rock
St. Michael, Barbados
Tel: 246/4261574
Barbados Hotel Association
Fourth Avenue
Belleville
St. Michael, Barbados
Tel: 246/4265041 or 4297113
Barbados Manufacturers' Association
Pelican Industrial Park
St. Michael, Barbados
Tel: 246/4264474 or 4279898
Fax: 246/4365182
Barbados Sugar Industry Limited
Warrens
St. Michael, Barbados
Tel: 246/4250010
Caribbean Association of Industry and Commerce Inc.
P.O. Box 259
S.P. Musson Building
Hincks Street
Bridgetown, Barbados
Tel: 246/436638
Caribbean Broadcasting Union
Wilkins Lodge
Two Mile Hill
St. Michael, Barbados
Tel: 246/4301000
Fax: 246/4292171
Caribbean Conservation Association
Savannah Lodge
Garrison
St. Michael, Barbados
Tel: 246/4265373
Fax: 246/4298483
Insurance Association of the Caribbean
IAC Building
Mer1rose
Lower Collymore Rock
Tel: 246/4275608
Life Underwriters Association of Barbados Ltd.
Room 411
Third Floor, Norman Center
Broad Street
Bridgetown, Barbados
Tel: 246/4262266
Shipping Association of Barbados Ltd.
Second Floor, Trident House
Broad Street
Bridgetown, Barbados
Tel: 246/4279860
Fax: 246/4268392
Government of Barbados Development Banks/ Agencies and Central Bank:
Barbados Development Bank
Central Bank Building
Bridgetown, Barbados
Tel: 246/4368870
Fax: 246/4272391
Barbados Investment and Development Corporation (BIDC)
Pelican House
Princess Alice Highway
Bridgetown
Barbados
Tel: 246/ 427-5350
Fax: 246/ 426-7802
Central Bank of Barbados
Central Bank Building
Church Village
Bridgetown, Barbados
Tel: 246/4366870
Fax: 246/4279559
Development Banks and Agencies
Caribbean Development Bank
Wildey
St. Michael, Barbados
Tel: 246/431-1600
Fax: 246/426-7269
Inter-American Development Bank
Maple Manor
Hastings, Christ Church
Tel: 246/427-3612
Fax: 246/429-8869
Caribbean Export Development Agency
Mutual Building
Hastings, Christ Church
Tel: 246/436-0578
Fax: 246/436-9999
Market Research Firms:
Applied Marketing Consultants
Mr. James Nurse, Managing Director
Lowland Road
Christ Church, Barbados
Tel: 246/4280400
Fax: 246/4280514
Marketing Specialists (Caribbean) Ltd.
157 Lowlands Park
Christ Church, Barbados
Tel: 246/4209421
Systems Caribbean Ltd.
Dr. Basil Springer, Managing Director
Baslen House
Kingston Terrace
St. Michael, Barbados
Tel: 246/4318950
Fax: 246/4295188
Commercial Banks in Barbados:
Listed in Section VIII.
Economic Section, United States Embassy, Bridgetown, Barbados
Leo Gallagher, Economic/Commercial Officer
United States Embassy Trade Personnel:
U.S. Department of State
Leo Gallagher, Economic/Commercial Officer
United States Embassy
Address for mail from the United States:
FPO AA 34055
International Mail Address:
P.O. Box 302, Bridgetown, Barbados, W.I.
Tel: 246/4364950
Fax: 246/4295246
U.S. and Foreign Commercial Service
Sherrey-Ann Morris, Commercial Assistant
United States Embassy
Address for mail from the United States:
FPO AA 34055
International Mail Address:
P.O. Box 302, Bridgetown, Barbados, W.I.
Tel: 246/4364950
Fax: 246/4295246
Washingtonbased U.S. Government Country Contacts:
U.S. Department of State
Ms. Ann E. Pfozheimer
Desk Officer for Barbados and the Eastern Caribbean
Room 3248
2201 C Street, NW
Washington, DC 20520
Tel: 202/6472621
Fax: 202/6474477
U.S. Department of the Treasury
Bureau of Customs
Washington, DC 20226
Tel: 202/9272096
Office of the U.S. Trade Representative 600 Seventeenth Street,
NW
Washington, DC 20506
Tel: 202/3953000
Fax: 202/3953911
TPCC Trade Information Center
Washington
1-800-USA-TRADE
1-800-872-8723
U. S. Department of State
Office of the Coordinator for Business Affairs
Tel: 202/746-1625
Fax:202/647-3953
U.S. Department of Commerce
Michelle Brooks
Desk Officer Barbados and the Eastern Caribbean
14th & Constitution Ave. NW
Washington, DC 20230
Tel: 202/482-1658
Fax: 202/482-0464
U. S. Department of Agriculture
Foreign Agricultural Service
Trade Assistance and Promotion Office
14th & Independence Ave. SW
South Building
Washington, DC 20250
Tel: 202/720-7420
Willis G. Collie, Director
U.S. Caribbean Basin Agricultural Trade Office
Suite 720
909 SE 1st Avenue
Miami, FL 33131
Tel: 305/536-5300
Fax:305/536-7577
Appendix F: Market Research
Appendix G: Trade Event Schedule
BISC '98
4th Barbados Information Services Conference
March 2- 4, 1998
The Sherbourne Center
Contact : Barbados Investment and Development Corporation - 246/427-5350
*International Copyright, United States Government, 1997 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U. S. Copyright Law, Title17, United States Code.
[end document]
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