WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIOWT/TPR/M/101/Add.1
13 August 2002
(02-4403)
Trade Policy Review Body
9 and 11 July 2002Original: English/
               anglais/
               inglés
TRADE POLICY REVIEW
BARBADOS
Minutes of Meeting
Addendum
Chairperson:  H.E. Ms. Amina Chawahir Mohamed (Kenya)
This document contains the advance written questions, and replies provided by the delegation
of Barbados.1
__________________________________________________________________________________
Organe d'examen des politiques commerciales
9 et 11 juillet 2002
EXAMEN DES POLITIQUES COMMERCIALES
BARBADE
Compte rendu de la réunion
Addendum
Président:  S.E. Mme. Am ina Chawahir Mohamed (Kenya)
Le présent document contient les questions écrites communiquées à l'avance et les réponses
fournies par la délégation de Barbade.1
__________________________________________________________________________________
Órgano de Examen de las Políticas Comerciales
9 y 11 de julio de 2002
EXAMEN DE LAS POLÍTICAS COMERCIALES
BARBADOS
Acta de la reunión
Addendum
Presidente:  Excma. Sra. Ami na Chawahir Mohamed (Kenya)
En el presente documento figuran las preguntas presentadas anticipadamente por escrito,
junto con las respuestas facilitadas por la delegación de Barbados.1
                                                     
1 In English only./En anglais seulement./En inglés solamente.WT/TPR/M/101/Add.1
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ADVANCE WRITTEN QUESTIONS BY MEMBERS, AND REPLIES PROVIDED BY THE
DELEGATION OF BARBADOS
Theme 1:  ECONOMIC AND INSTITUTIONAL ENVIRONMENT
JAPAN
CSME
1. What merit does Barbados find in the CSME? If Barbados predicts any negative impacts form
the CSME, please provide an explanation, together with the measures that Barbados considers would
overcome such negative impacts.  How does the private sector in Barbados estimate the CSME?
(a) What merit does Barbados find in the CSME?
Barbados is a member of CARICOM and it fully supports the CSME.  The CARICOM Single Market
and Economy provides for CARICOM goods, services, capital and people to move throughout the
region without the imposition of tariffs and other restrictions so as to achieve a single economic spaceand provide for a common economic and trade policy.
The CARICOM Single Market and Economy will further harmonise economic, monetary and fiscal
policies and measures throughout member states  of CARICOM to facilitate the sustainable
development of the region.  It is envisaged that this will involve the coordination of economic policies
such as foreign exchange and exchange rate policy, the harmonisation of tax regimes and laws and the
convergence of economic performance.
The CSME represents a significant departure from the original Treaty establishing the Caribbean
Community in that it seeks to remove restrictio ns on the right of establishment, the provision of
services and the movement of capital.  Since the 1970s, the Barbados economy has seen a steady
increase in the role of services in terms of its contribution to Gross Domestic Product (GDP) andemployment.  Barbados has been making a determined effort to increase its range of exportable
services.  Barbados believes that it has a comparative advantage in the provision of services in the
CARICOM region.
Barbados sees the CSME as a means of developing more fully its regional market for goods and
services, of increasing its capacity to interface internationally as well as facilitating its effective
integration into the world economy.
The value of the CSME for the Caribbean is based on the ability to build on the individual strengths of
the participating countries to produce a regional economy that is stronger than the sum of itscomponent parts.
(b) If Barbados predicts any negative impacts from the CSME, please provide an explanation,
together with the measures that Barbados considers would overcome such negative impacts.
The Treaty acknowledges that CARICOM member states might encounter difficulties in
implementing the provisions of the CSME and seeks to address these problems.  The Treaty makes
provision for corrective measures for import surges, balance of payments difficulties, and other
problems, which countries could face with respect to the implementation of the CSME.  It provides
for safeguard measures to be invoked, for support to be given to sensitive industries, and contains an
entire chapter designed to redress the disadvantages arising from economic dislocation.  MeasuresWT/TPR/M/101/Add.1
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taken to redress any negative impact will fall within what is allowed by the Treaty and would have to
be notified to the Council for Trade and Economic Development and approval sought.
Barbados is aware of the fact that the country migh t experience dislocations with respect to its labour
force, its structure of production, its export earnings and its balance of payments as a result of the
CSME.  However, it should be noted that Barbados is already operating in an environment in which
much liberalisation has already taken place.  The country is therefore aware of the need to developadequate education and training facilities and to sensitise the members of the private sector to the
need to constantly upgrade their productive facilities.
(c) How does the private sector estimate the CSME?
It is expected that providers of services will reap the greatest benefits from the CSME.  Some service
providers are eagerly awaiting the implementation of the CSME.  These services providers are of the
view that Barbados should focus its energies on market access, business facilitation and product
development.  Many professionals see the CSME as an opportunity to access the markets of the other
member states.  The private sector acknowledges the need for regulatory mechanisms to be put inplace in order to make the system work effectively and to discourage unacceptable business practices.
FTAA
2. It seems that Barbados has also been making efforts towards creating the FTAA.  Please
provide Barbados' perspective of the CSME after the establishment of the FTAA.
It is recognized that the WTO, FTAA and ACP negotiations with Europe will have an impact on our
regional effort as far as the CSME is concerned.  This however, will not totally negate the benefits to
be derived from the CSME.  It is further recognized that given these multilateral developments there
is a certain degree of urgency to be attached to the realisation of the CSME.  CARICOM member
states are involved in trade negotiations at the regional, hemispheric and multilateral levels.  Barbados
also sees the CSME as a vehicle for the region’s integration into the world economy.
It is expected that the CSME will:
• Allow entrepreneurs to use the regional market for the development of competitive
productive enterprises before seeking to exploit extra-regional markets;
• Provide greater scope for cooperation in production and marketing;
• Enhance the ability of the region to negotiate more effectively in international fora.
WTO
3. Concerning S&D for the SIDS (Small Island Developing States), what criteria does Barbados
consider when defining “SIDS”?
There are certain features by which SIDS are characterized.  These include:
• High Income Volatility
• Great Openness to Trade
• High Vulnerability to external shocks
• High trade to GDP ratios
• Limited Export Base
• Highly susceptible to natural disasters
• Susceptibility to environmental and climatic changes, including sea-level rise
• Limited institutional and human capacityWT/TPR/M/101/Add.1
Page 5
4. Japan would like to know in which areas Barbados requires assistance from developed
countries for the purpose of capacity building.
Barbados requires assistance from developed countries in such areas as follows:
• Research and Development in its widest form, for example finance for R&D and
product development.
• Market development and export promotion
• Standards development - assistance in developing appropriate technical capability
preferably at a regional level
• Development of suitable technology
• Access to appropriate technology
• Development of institutional capacity
EUROPEAN UNION
Public finances
5. Given the contraction in the Barbados economy in 2001 and continued sluggish growth in
2002, is there scope for the Government to stimulate the economy given the relatively high level of theGovernment fiscal deficit?  How does the Government intend in the coming years to bring about
greater equilibrium to the Government’s fiscal position?  Has the Government made any tentative
assessment of the possible impact of the FTAA pro cess on the Government’s fiscal position, given the
substantial proportion of total revenue collected from taxes levied on imports?
There is some scope for increased Government sp ending to stimulate the economy without incurring
an unmanageable fiscal deficit.  In the coming years it is anticipated that private sector activity will
increase and consequently Government will better be able to control its expenditure.
Yes, Government has made a tentative assessment of the possible impact of the FTAA on it’s fiscal
position, given the substantial proportion of total revenue collected from taxes levied on imports.
6. Please clarify the timetable for completing the Customs Union, in particular through the
establishment of (a) a Common External Tariff for imports from third countries and (b) other aspects
of a common external trade regime, e.g. in the area of trade defence instruments.  Please elaborate on
other relevant aspects of the single  market and economy (CSME) project.
A revised CET has been in place since 1992.  Within the Region we are actively pursuing the
implementation of the other provisions of the CARICOM Single Market and Economy.  Further
details can be found in paragraph 71 and 72 of the Barbados Report in document WT/TPR/G/101.
Agreements between CARICOM and Colombia, the Dominican Republic and Venezuela.
7. Have these three agreements been notified to the WTO?  If not, will they be?No they have not been notified.  It is expected that CARICOM Secretariat will notify them because
they are CARICOM Agreements.
8. It appears from the Secretariat Report that  neither the CARICOM-Colombia nor CARICOM-
Dominican Republic Agreements presently satisfy the requirements of GATT Article XXIV for Free
Trade Areas (for example, product coverage is too limited).  Is it the intention of Barbados to upgrade
these agreements into FTAs?WT/TPR/M/101/Add.1
Page 6
These are CARICOM Agreements and it is not up to Barbados alone to determine the upgrading of
them.  It would be a matter to be determined by the parties to the Agreement to determine this.
9. Similarly, is it proposed to upgrade the CA RICOM-Venezuela Trading Arrangements into a
(reciprocal) FTA?
This is a CARICOM Agreement and it is not up to Ba rbados alone to determine the upgrading of it.  It
would be a matter for CARICOM a nd Venezuela to determine this.
UNITED STATES
10. The Secretariat Paper notes that the CARICO M agreement provides for full implementation
of the agreement by January 1998 but that some CARICOM members have not implemented
Phase IV.  When might implementation of this agreement be completed?  Has Barbados initiated
discussions with other CARICOM Members in an attempt to effect full implementation?
Efforts to implement the provisions of the CSME, are underway by all countries.  All members of
CARICOM are seeking assiduously to implement the provisions of CSME, including the CET.
Barbados actively participates in the CARICO M Council for Trade and Economic Development and
always seeks to encourage members to meet their obligations under the Treaty.
Theme 2:  TRADE POLICIES BY MEASURE
HONG KONG CHINA
Anti-dumping (AD)
1. Note that Barbados notified the WTO of its legislation on AD duties in 1995 and indicated
that the Customs Duties (Dumping and Subsidies) Ac t 1959 was under review.  At the time of the
notification, some members pointed out that numerous  provisions of the WTO AD Agreement were not
reflected in the Barbadian legislation and some prov isions might be at odds with the WTO provisions.
Grateful if Barbados could provide more informat ion on the progress of the review, the timetable and
its measures in place, if any, to ensure compli ance of its AD actions with the WTO AD Agreement.
The legislation is currently being examined with a view to bringing it in line with our WTO
obligations.  We are hoping to complete the process by year-end.  It should be noted that there is a
need for the establishment of an institutional capacity to give effect to the legislation.  It may also be
noted that Barbados has requested technical assi stance from the WTO in respect of this activity.
Since the establishment of the WTO Barbados has not invoked any AD measures.
EUROPEAN UNION
Measures Directly Affecting Imports
2. Under the National Emergency Economic  and Financial Programme, drawn up by the
Ministry of Economic Development on 29 October 2001, the Government has taken a number of
measures in response to the economic fall-out of 11 September.  The package also entails the
reintroduction of import licenses on sensitive agricultural products and considerable increases in
customs duties for certain manufactured products.  We would like to receive further explanation about
this issue and how the licensing requirements and ta riff increases correspond to the common external
tariff and other measures agreed within CARICOM;  the tariff bindings agreed by Barbados in WTO,WT/TPR/M/101/Add.1
Page 7
as well as the liberalisation commitments taken in Doha;  and the letter and spirit of the ACP-EC
Partnership Agreement signed in Cotonou.
The National Emergency Economic and Financial Programme has come to an end and therefore
import licenses for protective purposes no longer exist in Barbados.  The increases in the customs
tariff on certain manufactured goods were contemplated prior to the implementation of the National
Emergency Economic and Financial Programme.  These increases are consistent with our obligationsunder the WTO.
3. The report also states that emergency meas ures (import licenses on agri-food products) were
initially foreseen for 90 days.  Could the Government please confirm that the reintroduction of
restrictive licenses was a temporary abrogation from Barbados’ “normal” trade policy?
Yes, they were deemed necessary in response to the uncertainty related to the fallout of September 11
but are no longer in place.
4. Could Barbados please give an overview of it s current customs procedures for importation, in
particular the extent to which those procedures are based on international standards e.g. those
developed by the WCO, UN etc.;  whether there is  any customs modernisation or trade facilitation
policy under development, what kind of mechanisms exist for consultation with the trading community
on customs rules and procedures, and what degree of coordination exists in terms of customs
simplification and modernization plans with other members of CARICOM.
Entry of Goods
Goods imported into Barbados are required to be “entered” whether these goods are imported via the
Bridgetown Port, the Grantley Adams International Airport or the General Post Office.
“Entering” of goods mainly entails the submission to the Customs Department of completed goods
declaration and the payment of the full duties and taxes, where applicable.
One of the important documents required for the entr y of the goods is a Commercial Invoice issued by
the supplier.  The standard format accepted is the Caribbean Common Market (CARICOM)
commercial invoice.  However if the informa tion specified on the prescribed CARICOM invoice
appears in another format, then such format would be accepted.  The Department would also accept a
Commercial Invoice showing a summary of the goods, once it is accompanied by a detailed supplier’s
invoice.  The invoice should give, among other specification, an accurate description, measurement,
values, country of origin of the goods, together with a declaration from the supplier that the
information stated is true and correct.  The carrier’s bill of lading or airway bill is also required.
At the time of clearance of the goods a Barbados  Customs Goods Declarati on Form (C63) along with
a Declaration of Value Form (C60) are required.  Goods of a Customs Value of less than
BDS$2,500.00 do not require a C60 Form.  The World Trade Organization (WTO) Valuation
Agreement is in operation in Barbados.
Duties and Taxes
Import duties and taxes must be paid or covered by acceptable surety before the goods are released
from the Port of Entry.  Rates of duty range from 0% to 20% of the Cost, Insurance and Freight (CIF)
value.  There are some exceptions to these rates which include Bound Rates ranging from 40% -
216% for special agricultural products, 60% for jewellery, 50% for watches and 45% for motor cars.Rates can be obtained from the Barbados Customs Tariff which is based on the HarmonisedWT/TPR/M/101/Add.1
Page 8
Commodity Description and Coding Systems (HS).  The Tariff is obtainable from the Government
Printing Department.
Imported goods are subject to an Environmental Levy at the rate of 1% for most goods.  A limited
number of commodities carry individual, specific rates.
Imports are subject to 15% Value Added Tax.  Some goods are zero-rated.  Value Added Tax
replaced a number of taxes that were previously in existence.
An excise tax is in place for four categories of goods namely, motor vehicles, tobacco products,
alcoholic beverages and petroleum products.  These rates appear in the Second Schedule of the Excise
Tax Act and are obtainable from the Customs Department.
Licensed Clearing Agents
Although importers can legally enter goods on their own behalf it is normal to recommend the use of
Licensed Clearing Agents (Customs Brokers) especially if importers are not familiar with Customsprocedures.  A list of Clearing Agents is published in the Official Gazette and can also be found in the
yellow pages of the Barbados Telephone Directory.
Entry Processing
Entry processing in Barbados is computerized using the Automated System for Customs Data
(ASYCUDA) programme.  The standard is to return entries to importers/clearing agents within three(3) working days.  Permission may be granted to take delivery of goods pending the payment of duties
and/or other taxes once a Bond, guaranteed by a commercial bank or insurance company, is executed.
This method is known as the Accounts Holder’s Module and allows importers to take delivery of
goods after processing of the relevant entry.  Duti es and taxes must however be paid within ten (10)
days.
Barbados is currently moving towards migrating to the latest version of ASYCUDA i.e. ASYCUDA
++.
Restricted Goods
A few items are still on the import license schedule (Miscellaneous Controls Act Cap. 329).  When
goods appear on the schedule, import licenses must be obtained before the specified goods are
imported into Barbados.  These goods include motorcars and specified agricultural products.  Import
licenses are now only used mainly as a monitoring measure.
Phytosanitary certificates must accompany plant and plant material.  Checks can be made with the
Plant Quarantine Division of the Ministry of Agriculture.
Overseas health certificates issued by the relevant National Authority are required for meat and meat
products before they are imported; an import permit must also be issued by the Veterinary Division of
the Ministry of Agriculture before milk, milk  products, meat and meat products are imported.
Specified controlled and psychotropic drugs are subject to licences obtainable from the Barbados
Drug Service of the Ministry of Health.
Pesticides are only allowed if a licence is obtained from the Pesticide Control Board, Ministry of
Agriculture.WT/TPR/M/101/Add.1
Page 9
Firearms, ammunition and explosives must not be  imported unless the Commissioner of Police grants
permission.
Specified wireless equipment is subject to licence issued by the Telecommunications Division.Mandatory Standards administered by the Barbados National Standards Institution (BNSI) are in
place for a number of commodities.
Access to Information
Customs and related legislation is obtainable from the Barbados Government Printing Department.
When there are changes to be made in respect of Customs procedures or requirements, informationbulletins are circulated to the relevant private se ctor organizations and other Government Departments
concerned with the movement of goods and travellers.
However, the Customs and Excise Department wi ll soon be launching its web page, whereby
information will be available.  Among the information that will be available include CustomsLegislation and procedures for the importation of goods.
Kyoto Convention: Although not a signatory to th e International Convention on the Simplification
and Harmonisation of Customs Procedures the Kyoto Convention, the procedures of the Barbados
Customs and Excise Department are substantially in accordance with the Standards outlined in
General Annex of that Convention.
Coordination with other CARICOM Members: In terms of co-ordination with other CARICOM
countries, it is to be noted that Barbados applies the Common External Tariff, which is also applicable
to other CARICOM member states.  The Common External Tariff is based on the World Customs
Organisation Harmonised System 1996 edition.  It is  expected that Barbados and other CARICOM
Members States will adopt the HS 2002 edition early in 2003.
The CARICOM Member States are working towards the harmonization of Customs legislation as they
move towards the implementation of the CARICOM Single Market and Economy.  An aspect of the
harmonized legislation includes the World Trade Organisation Valuation Agreement.
There is in place a CARICOM Customs Committee that meets at least once a year.  A wide range of
matters pertaining to Customs procedure as well as other subjects impacting on customs operations
are discussed at these meetings.  Among the topics discussed is the Preferential Rules of Origin that
exist among CARICOM Member States.
Consultations:  Barbados holds quarterly meetings with the trade and has established a consultative
Customs/Trade/Finance Consultative Committee.  Its membership comprises public and private sector
organizations that interact with Customs relative to the movement of goods and travellers across the
national borders.
Government procurement
9. (Para 54) The report describes the thresholds applicable to works and services.  What are the
rules applicable to the purchase of goods?
The same threshold applies to works, goods and services.  The relevant rules are Rules 124 through
126 of the Financial Rules (1971) under the Financial Administration and Audit Act Cap. 5 1964.WT/TPR/M/101/Add.1
Page 10
10. (Para 55) Foreign bidders must be registered in a list of suppliers.  What are the criteria and
deadlines to be registered?  Under what circumst ances may a request for registration be refused and
what are the possibilities to appeal?
Any person may apply to the Chief Supply Officer in wr iting to be listed as an approved supplier and
shall furnish such information as requested by the Chief Supply Officer.  The information required
should:
• Establish the identity or corporate status of the applicant;
• Ascertain the type, quality of the goods or services offered;
• Demonstrate the capacity of the applicant to effect the supplies delivery in a timely
manner at reasonable and cost effective prices;  and
• Indicate whether the applicant is generally in good standing – legally, commercially
etc.
If in the judgement of the Chief Supply Officer the applicant does not meet the criteria he may reject
the application.
Should the Chief Supply Officer reject an appli cation the applicant may under Rule 7 (3) (Supplies
Rules) appeal to the Minister of Finance against the rejection of his application.
The reference to “foreign bidders” may also need  to be considered in respect of International
Competitive Bidding practices of the International Financial Institutions (IFIs) who have establishedtendering procedures.
Where the IFIs are funding procurements out of project loan funds, bidders will be limited to all firms
and entities domicile in member countries of the IFIs.
Criteria and deadlines will be established within the framework of the project procurement plan e.g.
pre-qualification of contractors.
Bidders on these projects need not therefore be “approved suppliers” within the meaning of Rule 7
(Supplies Rules).
11. (Para 55) Direct purchase is allowed to the Chief Supplier Officer “whenever it becomes
necessary”.  Could the Government of Barbados explain under what circumstances these direct
purchases are favoured against an open tender?  Could the Government provide examples of “public
interest” as referred at the end of this paragraph?
The Chief Supply Officer generally makes purchases from local distributors, agents and
representatives in respect of goods not produced locally.
Should there be no local agent, distributor or representative for the required supplies or should it be
more advantageous then the Chief Supply Officer may undertake to import them directly.
There are no official criteria but the factors considered include whether:
(a) More favourable terms and conditions of supply can be obtained via direct imports;
(b) A more dependable supply chain can be established;  and
(c) Issues of security need to be addressed, e.g. arms and ammunitions imports for
disciplined services.WT/TPR/M/101/Add.1
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It should be noted that the guidelines state that  contracts for less than BDS$100,000 could be awarded
without the invitation of tenders.  Tenders ‘shall’ be invited for all works and services exceedingBDS$100,000.
12. (Para 57) Would the Government of Barbados consider to request observer status to the
Agreement on Government Procurement (GPA) aiming to better understand government procurement
laws and practises at international level and share experience with GPA Parties and observers?  Isthe government of Barbados aware of the spec ial provisions for Developing Countries?
This is a matter to which the Government will give consideration.UNITED STATES
13. Particularly in light of the regional free trade negotiations in which Barbados is currently
participating or planning to participate, is the Go vernment of Barbados contemplating changes in
legislation and practice to reduce the level of dependence on border taxation as a source of
government revenue?
Barbados has agreed to participate in the FTAA as well as to negotiate a new economic relationship
with Europe within the context of the ACP-EU framework.  The action Barbados takes will be
dependent on the outcome of both sets of negotiations.
14. It appears Barbados' application of tariffs and taxes may not complement its efforts to
stimulate growth in services, th e most important sector of the economy.  To what extent has the
government examined the relationship between goods market access and, for example, the tourism
and communications services sector?
The Government has recognised the complimentary role played by services and other sectors and does
not consider that its external tariff regime undermines that role.  With respect to tourism sector itshould be noted that Barbados is a high importer of goods and its tariff regime has not been a
deterrent to the level of imports.  The inputs into  the telecommunications sector are either zero-rated
or at the minimum in the tariff regime.
15. While the United States welcomes the increased transparency provided by tariffication in
recent years, the level of protection remains high, particularly in the food and agriculture sector.  The
average applied tariffs for agricultural and food products, at 36.7 percent, is more than double the
average applied rate for all products.  Has the Government of Barbados considered the effect of this
high taxation on Barbadian consumers, particularly those for whom food costs are a substantial
proportion of total expenditures?
The Government of Barbados despite its narrow resource base has been seeking assiduously to
develop its agricultural sector with great emphasis on food security.  In doing so, it is mindful of the
highly subsidised imports of food and other agricultural items into Barbados.  The tariff regime seeks
to some extent to address this concern.  Furthermor e, the Government of Barbados has a responsibility
to ensure that an adequate balance is struck among all interested groups in society.
16. The extremely high bound tariff on motor vehicles (Para 23) is difficult to understand.  What
is the justification for this high binding?
This is both a revenue earning and foreign exchange saving policy.  The structure of the CARICOM
Common External Tariff deliberately makes provision for this policy.WT/TPR/M/101/Add.1
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17. Can the government please clarify the status  of the non-automatic import-licensing regime
referred to in paragraph 42?  Has the system reverted back to automatic licensing?  What is thestatus of the government’s review of this issue?
There are no longer any import licenses for protective purposes.18. Barbados' import licensing system does not pr ovide for publication of the overall amount of
the quota and the amounts allocated from each coun try.  This makes it difficult for exporters and
importers to plan.  Does the Government of Barbados plan to respond to questions of Australia and
the United States regarding this lack of transparency?  Both countries have previously questioned this
policy and whether the arrangements were fully WTO-consistent.
The tariff quota rates have been published in the Government’s Official Gazette.  The actual quotas
and the allocation mechanism have been published in the print media.  Changes to Barbados’ tariff
quota system have been notified to the WTO.
Barbados intends to respond to the questions raised by Australia and the United States.19. Regarding rules of origin, the Secretariat's report indicates Barbados has not notified its
preferential rules of origin.  When does Barbados plan to do so?
Barbados plans to notify its preferential rules of origin as soon as possible.20. Can the government please prov ide information on the status of the IPR-related legislation
referred to in paragraph 130 as “scheduled to be enacted by the end of 2002"?
The response to this question will be supplied from capital.
Theme 3:  SECTORAL POLICIES
HONG KONG CHINA
Telecommunications
1. We commend the efforts made by Barbados in accelerating the timetable initially scheduled
for the liberalization of the telecommunications sector.  While expecting the details for the application
of cellular licences, we would like to know more about plans for the phased liberalization of the local
and international telephone services.
The liberalisation of the telecommunications sector will take place in three (3) phases.  The three
phase dates and the main activities of those phases are as follows:
Phase 1 (December 2001- November 30, 2002) – The promotion of competition through resale of
services and the encouragement of facilities-based competition in cellular services
Phase 2 (December 1, 2002 –July 31, 2003 – The promotion of facilities-based competition among
domestic providers
Phase 3 (August 1, 2003) – The promotion of facilities-based competition in international
telecommunications infrastructure and services.  This would constitute the final stage of liberalisation
and give new entrants the opportunity to own, operate and install international facilities such assubmarine cables and satellite services.WT/TPR/M/101/Add.1
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Financial Services
2. Note that the Barbadian Government own hol dings in the Barbados National Bank (BNB) and
Insurance Corporation of Barbados (ICB).  Despite the privatisation in late 2000, the Government
holdings in BNB and ICB stood at 79% and 62% respectively this year.  Besides, Barbados has yet to
make any commitment with respect to banking and insurance (except reinsurance).  We encourage
Barbados to make commitments in the current round of services negotiations.  We are also interestedto know whether the authorities have any plan to further liberalize these two state owned
corporations, and if so, how foreign investors can participate in the privatisation.
The Government of Barbados is proceeding with the further privatisation of the Barbados National
Bank and the Insurance Corporation of Barbados.  While providing for local investors to participate inthe exercise, this will not exclude strategic partners who may be non-resident.
JAPAN
IV(5), pp.90-91, paras. 140 and 142, Accounting services
3. In paragraph 140, it is stated that the Institute of Chartered Accountants of Barbados (ICAB)
is not an accreditation centre but accepts qualifica tions from approved institutes.  Furthermore, in
paragraph 142, at least three years approved practical experience under the supervision of one or
more members of a body recognized by the Council (e.g. bodies in the U.S., Canada, Caribbean
countries) are required to hold a practising certificate.  Is it correct to understand that there is no
limitation on the nationality of the service supplier?
Yes there is no limitation on the nationality of the service supplier.ICAB is an ‘accreditation centre’, with registered students having to sit examinations offered through
a joint examination scheme organised with the Chartered Association of Certified Accountants.
P.91, Para. 145, Legal services
4. The Report states that only nationals of Barbados or any of the CARICOM and British
dependent countries may practice law in Barbados, and that citizens of other countries may bepermitted to practise on the basis of reciprocity.  Japan considers this is not consistent with Article II
of the GATS concerning MFN, seeing as Barbados has not registered an MFN exemption.  Moreover,
as Barbados commits "none" in National Treatment in Mode 4, Japan considers the Barbados
measure to be inconsistent with Article XVII concerning National Treatment.  Please provide
Barbados' view on the consistency of this measure with Article II and XVII of the GATS.
This matter is being examined in capital and an appropriate response will be forthcoming.P. 81, para. 83, Tourism
5. Please provide the reason for not making a commitment on tourism, which is one of the
biggest industries in Barbados.  When, and to what  extent, does Barbados have the intention to make
a commitment in this sector?
Tourism was not one of those sectors, which Barbados committed to liberalise.  Commitments for
further liberalisation will be submitted within the timeframe permitted WTO Members.WT/TPR/M/101/Add.1
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6. When foreign entities want to enter the Barbados market, are there any differences in the
conditions on market-entry depending on their nationa lities?  If so, please provide an explanation on
such conditions.
Foreign entities entering the tourism market in Barbados are not treated differently on the basis of
their nationalities.
P. 81, para. 84
7. According to the Report, business licences for travel agents and tour operators are reserved
in priority for residents.  Please explain in deta il what differences exist between residents and foreign
entities when granting such business licences.
Licenses are not granted to foreign entities at this time.CANADA
8. Paragraph 29 refers to the Green Paper on Sustainable Development of Tourism in
Barbados, which formed the basic framework for the drafting of a new Tourism Development Bill to
be enacted in the first half of 2002.  Please indicate whether or not this Bill has been enacted.  If not,
what is the date of enactment?
The Tourism Development Act 2002-7 was enacted on the 11th June 2002.
9. According to Table IV.5, Barbados has made full commitments under the GATS for modes 1,2
and 3 for data processing under the heading of computer and related services.  Canada notes,
however, that while Barbados’ GATS schedule includes commitments for 2Cn “on-line information
and/or data processing (including transaction pr ocessing)” under 2C Telecommunication Services,
the schedule does not include commitments for the entire definition of data processing services whichis provided for under CPC 843.  Please clarify the nature of Barbados’ GATS schedule commitments
for data processing services under both Computer and Related Services and Telecommunication
Services.
Barbados did not commit data processing under telecommunications.  However software production
was committed under Computer and Related Services.
10. Paragraph 3 suggest that tourism plays an im portant role in the economy of Barbados, a
point reiterated in the Government Report in paragraph 30, where it is mentioned that there has been
significant foreign investment in Barbados in the Tourism sector.  Paragraph 83 states that market
access conditions are fairly liberal for foreign investors wishing to establish a commercial presence
in Barbados and that the conditions for opening a hotel are the same for foreigners as for residents.
Given the importance of the Tourism sector fo r the economy of Barbados and the importance of
foreign investment in this sector, as well as the fact that this sector is already relatively liberal, please
indicate if the Government of Barbados is c onsidering making GATS commitments in tourism.
Barbados is actively examining the issue of furthe r commitments in services within the timeframe
allocated to WTO Members.
11. Paragraph 113 suggests that the new telecommunications Act 2001 was to come into
operation on a date fixed by proclamation, which was to take place no later than 15 March 2002.
Please indicate on what date the new Telecommunications Act 2001 came into effect.WT/TPR/M/101/Add.1
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The Telecommunications Bill has been passed through both Houses of Parliament and the date for
proclamation is now to be determined.
12. Paragraph 124 states that, following a Central Bank assessment in 2000, “changes were
recommended to the proposed International Financial Services Act, in order to improve compliance
with the (Basle Committee) Core Principles.” Please report on the current status of, and the time
frame for the implementation of this legislation.
This legislation was passed on May 30, 2002, has been proclaimed and the provisions are being
effected.
EUROPEAN UNION
Services
13. The Government report does not contain any development on professional services.  The
report by the Secretariat only addresses accounting services and legal services.  The EU wouldappreciate it if the government could inform on the current status for the other professional services,
and, in particular, for architectural and engineering services, for which Barbados has not taken any
specific GATS commitment.
We are still examining the issue of services sector liberalisation and will finalise Barbados’ position
within the timeframe allocated to WTO Members.
Tourism
14. Despite the events of 11 September, US tourism arrivals to Barbados have apparently held
up, whereas tourism arrivals have in total fallen over 11% year-on-year in the period January – May
2002.  Could the Government please comment on the possible reasons for this, including whether itsees other structural problems besetting the indust ry, including the issue of the competitiveness of the
Barbados tourism product?  Have barriers to food imports affected the international competitiveness
of the tourist catering and relating services?  What  are the measures being taken by the Government
to stimulate the tourism industry?
The tourism industry is one where there are many competing destinations.  The events of September
11 have not affected the competitiveness of the tourism sector from a tourist perspective.  Whatever
additional costs there may have been, the hotels have absorbed that cost and have even offered
discounts to the tourists.
With respect to the positive performance of the U.S. market in early 2002, notwithstanding
September 11, the point must be made that much of the marketing of the sector in the U.S. had taken
place prior to September 11 and was accelerated post-September 11, 2002.  The recovery in the U.S.
market reflected a lagged response to earlier marketing efforts.  Increased airlift also contributed to
the recovery in the U.S. market.
The Region has recently developed a strategic plan and an accompanying sustainable tourism
development fund, which is presently under consideration.
15. Does the Government of Barbados have any indications concerning the effects of the decline
in tourism on the labour market in general as well as on the tourism-related sectors?  What are the
measures the Government has taken to cope with the losses of a significant proportion of tourism-WT/TPR/M/101/Add.1
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related labour force as a consequence of this decl ine?  Can the economy absorb such labour force in
other sectors?
There has been a declining level of employment in the tourism and tourism related industries as well
as a lower level of output in the economy generally.
The economy is unable to absorb the labour force in other sectors.  This is one of the symptomatic
problems of a small economy.
Manufacturing
16. (Para 42/43) The government report underlines the importance of the manufacturing sector,
but refers to its high production costs etc.  What me asures are being taken by the Government/private
sector to tackle the high production costs generally, so that products from Barbados can be
competitive in a more liberalised global economy?  In particular, how does the government see wage
trends evolving?
In Barbados, the process of collective bargaining among the workers, management and unions
primarily influences wage trends in both the private and public sector.  Parties to the negotiations look
at factors such as the rate of inflation and levels of productivity in determining wage increases.  In the
light of an increasingly liberalized market and in order to be competitive, local manufacturing firms
are likely to allow only marginal wage increases.
Government will continue to work with unions and the private sector, within the social partnership to
ensure that wage settlements are kept within management levels.
Both Government and the private sector are taking measures to address labour productivity.
However, it should be noted that production units are small thus precluding the possibility of
benefiting from economies of scale.  The industry has no control over imported inputs and relatedtransportation costs.
UNITED STATES
17. We appreciate Barbados making full commitments in reinsurance and would like to know if
Barbados is planning on making any commitments in life and non-life insurance and services
auxiliary to insurance as well?
Barbados is currently examining the entire questi on of further trade liberalisation in the services
sector within the timeframe allocated to WTO Members.
NEW ZEALAND
18. New Zealand supplies approximately 1,100 tonnes of high quality sheep meat to Barbados
annually, which substantially supplements domesti c production in meeting the demands of local
consumers and the restaurant trade.  The tariff for non-CARICOM sheep meat was raised from 0% to
40% in 1999 when Barbados adopted the common CARICOM tariff, despite their being no competing
supplier within the CARICOM Community.  New Zealand has made representations regarding this on
previous occasions.  Given the lack of competin g CARICOM suppliers, why is it that non-CARICOM
sheep meat can’t be exported to Barbados at the original tariff that existed prior to the entry by
Barbados into the CARICOM Community?WT/TPR/M/101/Add.1
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The Government of Barbados increased the rate of  duty on imports of meat of sheep from 0%-40% in
1999 in an effort to stimulate the development of the domestic small ruminant industry, which isbased on a unique indigenous breed called the Barbados black belly sheep.  This action was taken in
keeping with the thrust to diversify the agricultural sector in Barbados.
Barbados has been a Member of CARICOM since 4 August 1973 and there has been a CET from that
date.
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