PRESS RELEASE
PRESS/TPRB/197
12 July 2002
(02-3901)
TRADE POLICY REVIEW: BARBADOS
Trade boosts Barbados' standard of living
The Trade Policy Review Body of the World Trade Organization (WTO) concluded its first review of
Barbados on 9 and 11 July 2002. The text of the Chairperson’s concluding remarks is attached as asummary of the salient points wh ich emerged during the discussion.
The review enables the TPRB to conduct a collective examination of the full range of trade policies
and practices of each WTO member countries at re gular periodic intervals to monitor significant
trends and developments which may have an  impact on the global trading system.
The review is based on two reports which are pr epared respectively by the WTO Secretariat and
the government under review and which cover all aspects of the country’s trade policies, including
its domestic laws and regulations, the institutional framework, bilateral, regional and otherpreferential agreements, the wider economic needs and the external environment. A record of the
discussion and the Chairperson’s summing-up together with these two reports will be published in
due course as the complete trade policy review of Barbados and will be available from the WTOSecretariat, Centre William Rappard , 154 rue de Lausanne, 1211 Geneva 21.
Since December 1989, the following reports have been completed:  Argentina (1992
and 1999), Australia (1989, 1994 and 1998), Austria (1992), Bahrain (2000) Bangladesh (1992
and 2000), Barbados (2002), Benin (1997), Bolivia (1993 and 1999), Botswana (1998), Brazil(1992, 1996 and 2000), Brunei Darussalam (2001), Burkina Faso (1998), Cameroon (1995 and
2001), Canada (1990, 1992, 1994, 1996, 1998 and 2000), Chile (1991 and 1997), Colombia
(1990 and 1996), Costa Rica (1995 and 2001), Côte d’Ivoire (1995), Cyprus (1997), the CzechRepublic (1996 and 2001), the Dominican Republic (1996), Egypt (1992 and 1999), El Salvador
(1996), the European Communities (1991, 1993, 1995, 1997 and 2000), Fiji (1997), Finland
(1992), Gabon (2001), Ghana (1992 and 2001), Guatemala (2002), Guinea (1999), Hong Kong(1990, 1994 and 1998), Hungary (1991 and 1998), Iceland (1994 and 2000), India (1993, 1998
and 2002), Indonesia (1991, 1994 and 1998), Israel (1994 and 1999), Jamaica (1998), Japan
(1990, 1992, 1995,1998 and 2000), Kenya (1993 and 2000), Korea, Rep. of (1992, 1996 and2000), Lesotho (1998), Macao (1994 and 2001), Madagascar (2001), Malawi (2002), Malaysia
(1993, 1997 and 2001), Mali (1998), Mauritius (1995 and 2001), Mexico (1993, 1997 and 2002),
Morocco (1989 and 1996), Mozambique (2001), New Zealand (1990 and 1996), Namibia (1998),Nicaragua (1999), Nigeria (1991 and 1998), Norway (1991, 1996 and 2000), OECS (2001),
Pakistan (1995 and 2002), Papua New Guinea (1999), Paraguay (1997), Peru (1994 and 2000),
the Philippines (1993 and 1999), Poland (1993 and 2000), Romania (1992 and 1999), Senegal(1994), Singapore (1992, 1996 and 2000), Slovak Republic (1995 and 2001), Slovenia (2002), thePRESS/TPRB/197
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Solomon Islands (1998), South Africa (1993 and 1998), Sri Lanka (1995), Swaziland (1998),
Sweden (1990 and 1994), Switzerland (1991, 1996 and 2000 (jointly with Liechtenstein)),Tanzania (2000), Thailand (1991, 1995 and 1999), Togo (1999), Trinidad and Tobago (1998),
Tunisia (1994), Turkey (1994 and 1998), the United States (1989, 1992, 1994, 1996, 1999 and
2001), Uganda (1995 and 2001), Uruguay (1992 and 1998), Venezuela (1996), Zambia (1996)and Zimbabwe (1994).
TRADE POLICY REVIEW BODY:
REVIEW OF BARBADOS
Concluding remarks by the Chairperson
In this, our first Review of Barbados, we have gained what I believe to be a very constructive
insight into Barbados' trade policies and practices.  Our very much improved understanding of
Barbados is due in no small measure to the whole hearted cooperation and frankness of theBarbados delegation, led superbly by the Deputy Prime Minister, and by the active involvement of
Members.  Barbados has brought to our attention th e special characteristics of countries with small
sizes and populations, and hence limited diversification capacity, and high infrastructure and socialcosts.  These factors can result in considerable vulnerability to external shocks, as witnessed by
the depth of past recessions experienced by Barbados.  Members noted that, despite such
challenges, Barbados has achieved high standards of living.  They attributed this in good part tothe country's remarkable social and institutional stability and its intensive participation in
international trade despite its peculiar economic circumstances.
Despite the small size of the Barbadian bureaucracy and the consequent strain on trade policy and
negotiating resources, Members appreciated Barbad os' active and productive engagement in the
WTO, as well as in regional trade liberalization in itiatives.  Some were cl ear that Barbados was an
example that the WTO can be a true instrument of development if the Member involved knows
how to approach and use it.  Members expressed support for additional technical assistance,
especially for capacity building, in implementing WTO commitments.  It is my view that Barbadoshas been successful in balancing difficult and often competing interests and objectives.
The Government of Barbados has made clear that its future economic prosperity rests upon a
successful integration into the world economy, but that this success was conditional on specific
measures designed to avoid marginalization of small countries.  Several Members were
understanding of the request by Barbados for special consideration, anchored in the principle ofspecial and differential treatment granted in the WTO to developing countries.
We have all recognized the concrete steps made by Barbados to reform its economy and further
liberalize its trade regime during the 1990s, partic ularly through tariff reductions in the framework
of CARICOM.  Concerns were expressed, however, with respect to the recent increase in tariffs on
certain food and other manufactured products, and the resurgence of non-automatic importlicensing on sensitive agri-food imports.  Members also noted that, although reduced, tariffs
remained relatively high at over 16%, with several peaks at or above 60%.  Such high tariffs and
taxes may not complement efforts to stimulate growth in services, the most important sector ofthe economy.  The adoption of a Value-Added Tax was welcome as an alternative revenue source
to tariffs.  Barbados was urged to lower tariff bindings to rates closer to the currently applied
rates, and thus improve the predic tability of its import regime.PRESS/TPRB/197
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The announced liberalization of the telecommunications services market was welcome, and
Members noted the generally liberal market access and national treatment conditions in most of
Barbados' services industries .  Several Members encouraged Barbados to make further
commitments under the GATS, as this would better reflect their current, relatively liberal practices.
Specific questions were also asked on:
/g167 WTO-consistency of anti-dumping legislation;
/g167 use of quantitative restrictions on sensitive agricultural products;
/g167 prospects for customs modernization and trade facilitation;
/g167 assistance and promotion activi ties and their budgetary cost;
/g167 government procurement procedures;
/g167 new legislation on the protection of IPRs;  and
/g167 market access conditions and incentives in specific service sectors.
We appreciate the oral and written response s and explanations provided by the Barbados
delegation, and look forward to receiv ing answers on outstanding questions.
In conclusion, it is my sense that this Review has amply fulfilled its main objective of
understanding Barbados' trade regime in the framework of its development needs and objectives
as well as of the external environment.  Barbad os has once again reaffirmed its full commitment to
the multilateral trading system, and the presence of  Her Excellency the Deputy Prime Minister is a
strong testimony to this.  But we have also been made aware of the problems and difficulties
hindering the fuller participation of Barbados in the system.  In this respect, I am convinced thatsmall and open economies like Barbados can only benefit from predictable, transparent and fair
multilateral trade rules, and I congratulate Barbados for their performance and for a successful
Trade Policy Review.
END