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IV. TRADE POLICIES BY SECTOR 
(1) OVERVIEW  
1. Compared with most other developing countri es, Barbados is a high-cost location for the 
production of goods, except for some niche produc ts.  Without protection from import competition, 
most of the few existing activities in agriculture and manufacturing would likely contract 
significantly.  On the other hand, the protection gr anted to the production of goods arguably may have 
weighed on the international competitiveness of ser vice activities, for example tourist catering, by 
restricting access to the most competitively priced inputs. 
2. The agriculture sector contributes only a small and declining share to GDP and employment, 
despite the protection it receives.  Barbados no longer administers a tariff quota regime for 
agricultural products, instead it applies the in-quota  bound rates to the respective imports.  In 2002, 
Barbados invoked price-based special safeguard actions for 23 agricultural products.  Two state 
entities have monopolies on the importation of ch icken and turkey wings, and raw sugar. 
3. Most of Barbados' sugar produc tion is exported to the European Communities under unilateral 
preferential arrangements.  The sugar industry suffe rs from high costs that exceed world prices.  The 
industry has shrunk considerably in recent years due to the reduction in the guaranteed price offered 
by the EC;  efforts are under way to help it adapt to  envisaged changes in acc ess conditions to the EC 
market. 
4. The manufacturing sector is also small but pr oduction and exports of  manufactured goods 
have grown steadily since 2002.  Manufacturing ente rprises are actively encouraged through a number 
of fiscal incentives. 
5. The services sector is the cornerstone of Barb ados' economy, and its main source of foreign 
exchange.  Despite the importance of services to its economy and the general de facto  openness of its 
foreign investment regime, Barbados has sche duled only a limited number of GATS commitments 
(21 of the 160 subsectors).  Barbados submitted an initial services offer in the negotiations on services 
under the Doha Development Agenda. 
6. Barbados operates separate regimes for onshor e and offshore banking and insurance.  All 
commercial banks operating domestically are predom inantly foreign owned.  In view of the 
oligopolistic nature of the market, the Central Bank sets a minimum deposit rate for onshore banks, 
and, between 2001 and 2003, maintained temporary i ndicative rates of interest on loans.  Since 2002, 
the spread between deposit and lending rates has decr eased.  International (offshore) financial services 
companies benefit from minimal tax es and are not subject to exchange controls.  They may conduct 
business only with non-residents (except resident in ternational business companies) and with foreign 
currency or assets.  
7. During the period under review, Barbados h as liberalized its telecommunications sector 
ending, earlier than initially intended, the monopoly held by the private-sector incumbent.  New 
legislation has come into force and new institutions have been created inter alia,  to foster competition. 
8. The Government owns Barbados' basic air and maritime infrastructure, and during the review 
period has taken steps to operate it on a more comm ercial basis.  Private providers are present in 
ground handling at the airport, and in certain port ser vices.  Barbados administers an international ship 
registry. Barbados WT/TPR/S/203/Rev.1
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9. Professional services are governed by an overarching law and profession-specific legislation.  
For foreign persons to practice law and architecture in Barbados, legislation requires that reciprocity 
must be provided to Barbadian citizens in third countries.  Efforts are under way at the CARICOM 
level to develop and harmonize requirements for th e licensing and regulation of certain professions.  
(2) AGRICULTURE  
(i) Features 
10. In 2006, agriculture contributed 2.7% to GDP.1  In 2006, 4,700 people were employed in 
agriculture and fisheries, representing just over 3.6%  of the total employed workforce in Barbados.2  
Barbados produces a variety of vegetables and root  crops as well as livestock and diary, most of 
which is domestically consumed.3  Barbados' main agricultural export is sugar. 
11. The Minister of Agriculture and Rural Developm ent is responsible for agricultural policy in 
Barbados.  There is currently no general legisl ation governing the sector as a whole, however the 
authorities indicate that the first draft of a Sust ainable Agricultural Development Bill is to be 
considered in June 2008. 
12. A Rural Development Commission (RDC) has responsibilities for improving social amenities 
and assisting in the establishment of cottage industr ies in rural areas, as well as helping small farmers 
in training, investment, engineering and machinery, production, and marketing.4  Its major aim is to 
bring relief to the poor in rural areas.  It allocat es land under Government c ontrol to persons wishing 
to take up farming and is also involved in rural enterprise development.  It manages the Rural 
Enterprise and Livestock Development Funds (see below).   
13. The Barbados Agricultural Development and Marketing Corporation (BADMC) has been 
notified to the WTO as a State Trading Enterprise (see Chapter III(4)(iv)).  It provides farm support 
services to the non-sugar agriculture sector, collect s agricultural statistical data, and provides 
irrigation services to small farmers.  The BADM C also administers the Land for the Landless 
Programme, which seeks to make unused arable lands, in public or private ownership, available to 
farmers.  It provides cold storage facilities for local livestock farmers, and fabrication and meat 
cutting services at competitive rates.5  The BADMC holds a monopoly on the importation of chicken 
and turkey wings for wholesale and retail sale.  In  practice, however, its importation of chicken wings 
was suspended in 2006.  Manufacturers may import wings directly. 
14. According to the authorities, consideration is be ing given to institutional reform of the Central 
Agriculture Ministry, the BADMC and RDC, to promote enterprise development, value-added 
products, local foods, and forging of greater links with the tourism and manufacturing sector, and to 
                                                      
1 Government of Barbados (2006), Appendix Table 4.  In 2006, food crops contributed 
BDS$64.2 million to GDP;  livestock BDS$49.5 million;  sugar BDS$44.4 million;  other cultivation 
BDS$0.6 million. 
2 Government of Barbados (2006), Table 3.5-1. 
3 In 2006, the main agricultural commodities produced in Barbados were (tonne s between parentheses):  
sugar (33,700);  poultry (13,571);  milk (5,570);  pork (2,637);  sweet potatoes (2,201);  eggs (1,987);  cucumbers (1,324);  tomatoes (1041);  yams (794);  cabbage (642);  okra (525);  pepper, sweet (477);  onions 
(444);  lettuce (439);  cassava (375);  beans, string (371);   carrots (318);  melon (310);  turkey (275);  beef and 
veal (182);  eddoe (157);  pepper, hot (136);  pumpkins (121);  beets (92);  mutton (79);  peanuts (21);  and cotton (15).  Government of Barbados (2006). 
4 Rural Development Commission Act, CAP. 238 of the Laws of Barbados.  Viewed at:  
http://www.caricomlaw.org/docs/Rur al%20Development%20Commission.pdf. 
5 Government of Barbados (2006). WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 58 
 
 
enhance competitiveness.  It is anticipated that some of these institutional reforms would be 
incorporated into the Sustainable Ag ricultural Development legislation. 
(ii) Policy objectives and measures 
15. The Government of Barbados sees agriculture as making an important contribution to the 
social and environmental fabric of the country, as well as generating economic benefits.  During the 
period under review it has sought to preserve the sect or and increase its contribution to GDP within 
WTO rules.6  The Government has been focusing on three main priorities:  the attainment of food 
security;  the full use of modern technology and r esearch within the sector;  and the creation of an 
environment that encourages agri-processing.  Effo rts will be concentrated in developing greenhouse 
technology (see below), promotion of value- added sea island cotton garments, as opposed to 
exporting lint;  and the value-added produc tion of beef burgers through the BADMC. 
16. The main instrument of border protection is th e tariff.  Barbados' average applied tariff on 
agricultural products was 33.7% (WTO definition) in 2007 (Table III(3)).  Applied rates ranged from 
zero to 216%;  the average bound tariff on agricultu ral products was significantly higher than the 
applied rate, at 110.9%.  The products attracting tariff rates of over 100%, include meat, milk, eggs, 
vegetables, and some fruits.  Between 2005 and 2007, a Cess Tax was levied on extra-regional 
imports (see Chapter III(2)(v)), which combined with higher applied tariffs on certain processed food 
products has contributed to rapidly rising prices for food products. 
17. Barbados notified the WTO in 2004, that it di d not provide export subsidies on agricultural 
products during 2001/02.  Barbados has reserved the right to use th e special safeguard mechanism for 
the 36 products for which it has a tariff quota regime.  It has notified the WTO it invoked price-based 
special safeguard actions, commencing in 2002, for 23 products.7  The authorities indicate these 
actions are no longer in force. 
18. With respect to attaining the objective of f ood security, government strategy has been to 
encourage output of a number of commodities:  poultry;   fresh pork;  table eggs;  hot peppers;  onions;  
cucurbits (specifically cucumbers, pumpkins, melon,  squash, and christophene);  root crops (sweet 
potatoes, yams, cassava, and eddoes);  sweet peppe rs;  fresh herbs (including chives, parsley, 
marjoram, and thyme);  tomatoes;  beans;  crucifers (specifically cabbage, Chinese cabbage, cauliflower, and broccoli);  okras;  and fresh milk .  The Government has reported that there was a 
21% decline in consumer spending on imports  of these commodities between 2005 and 2006. 
19. Other Government initiatives over the review pe riod have been to encourage a closer link 
between agriculture and tourism, through the prom otion of Barbadian foods in hotels, and the 
development of a "Bajan haute cuisine".  The Mi nistry of Agriculture and Rural Development is 
coordinating more closely with the Barbados Hotel and Tourism Authority for this purpose.
8  
Government funding of BDS$2 million (US$1 million) has been earmarked for upgrading 
government facilities for research, production, and training in agricultural practices such as 
greenhouses and hydroponics.  In order to assist sm all farmers in their cultivation requirements, the 
Government has committed a total of BDS$3.7 million (US$1.85 million) for the purchase of tractors 
                                                      
6 Government of Barbados (2003). 
7 WTO documents G/AG/N/BRB/13, 16 March 2004 and G/AG/N/BRB/14, 16 March 2004.  The 
products subject to safeguard actions were:  turkey backs and necks;  turkey wings;  other meat of swine, fresh, 
chilled or frozen;  tomatoes;  onions;  shallots;  cauliflower;  cabbages;  cabbage head lettuce;  other lettuce;  
carrots;  beets;  aubergines;  sweet peppers;  sweet corn;  cantaloupes;  other melons;  chicken sausages 
(canned);  other chicken sausages;  ham and cuts thereof;  and luncheon meat. 
8 Government of Barbados (2007). Barbados WT/TPR/S/203/Rev.1
 Page 59 
 
 
and other farming equipment, to be leased or bought by tractor operators and farmers themselves.9  In 
both of the above cases, at end May 2008, the money had not yet been spent. 
20. In addition to non-sector-specific incentive sch emes (Chapter III(4)(ii)) a number of incentive 
schemes have been developed to assist the agricu lture sector, through loans, grants, and duty-free 
concessions (Table IV.1).  For some of these initiatives,  there has been limited take-up;  for example, 
at end May 2008, there had been one application fo r the water harvesting reba te, and no applications 
for the tax holiday for technology-related investment s.  In addition, there had been no disbursements 
from the Scotland District Investment and Deve lopment Fund, which has been capitalized at 
BDS$2.5 million.10 
21. The value of up-front import duty concessions provided in 2005-06 totalled BDS$6.5 million 
(US$3.25 million).  Over the same period rebat es (drawback) on agricultura l incentives amounted to 
BDS$774,905 (US$ 387,453). 
Table IV.1 
Agricultural incentive schemes 
Incentive scheme Description Eligibility 
Agricultural 
Incentives 
Programme Duty-free concessions on:  planting material;  machinery and equipment;  
agricultural chemicals;  veterinary me dicaments;  hand tools;  irrigation 
machinery and equipment;  organic farming;   various types of vehicles (under 
certain conditions);  as well as special  inputs.  Technical assistance funding 
(for 75% of the respective activity) and working capital funding are also 
available.  A re-tooling rebate also provides duty free concessions 
 Qualifying farmers and farmers 
organizations 
Livestock 
Development 
Fund Loans for up to BDS$50,000, with a minimum interest rate of 4% per year, 
with maximum repayment periods of up to ten years Start-up or existing vegetable, 
food crop or livestock enterprises 
located in rural Barbados; 
borrowers' net worth must not exceed BDS$400,000 
 
Agricultural 
Payment 
Guarantee Fund Revolving fund enabling farmers and agri -processors to acquire their monies 
speedily after distributing produce to local  hotels or exporters for shipment to 
overseas buyers (this instrument has not been used)  
 Registered farmers 
Agricultural 
Development 
Fund  Grants and loans for improved development of agriculture, including sugar, 
cotton, livestock, fisheries, and horticu lture;  grants provided for institutional 
strengthening, i.e.  cotton research, training, competitiveness enhancement;  
loan fund of BDS$27 million, with current interest rate of 6.5% 
 Registered farmer 
Tax holiday for 
technology related 
investments 
 15-year  tax holiday for organizations  investing in high-end technology to 
reduce production costs Registered farmers in business for 
the duration of the tax holiday 
Water harvesting 
rebate 
 50% rebate on the cost of establishing water ha rvesting facilities Registered farmers engaged in 
livestock production 
Scotland District 
Investment and 
Development 
Fund Grant funding;  10-year tax holiday for investments in fruit production, 
processing and marketing;  an orchard development subsidy to promote the 
production of approved fruit trees and the overall afforestation of the District 
(BDS$5 per tree for a maximum of 1,000 trees per farmer);  land cultivation 
scheme 
 Agricultural and agri-related 
projects in the Scotland District 
Cane Replanting Incentive Scheme 
 Incentive payment of BDS$550 per acre for force-back planting and 
BDS$450 per acre for conventional planting of sugar cane Sugar cane farmers, with 
conditions related to plant density 
and cleanliness of fields 
 
Table IV.1 (cont'd) 
                                                      
9 Government of Barbados (2006b). 
10 Ministry of Commerce, Consumer Affairs & Business Development (2008). WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 60 
 
 
Incentive scheme Description Eligibility 
Dairy industry 
incentives Rebate of 25% for the components of diary housing up to a maximum of 
BDS$40,000;  rebate of 40% of the cost  of components for a milking parlour 
up to a maximum of BDS$60,000 
 Dairy farmers 
Cotton Research 
and Development Fund Grant funding for agronomic research Research institutions 
 
Source:  Government of Barbados (2007, 2006, and 2003), Economic and Financial Policies of the Government of 
Barbados.  Viewed at:  http://www.foreign.gov.bb/ Userfiles/File/Financial %20Statement%20-%202007%20 
March%2014,%202007.pdf;  http://www.ba rbados.gov.bb/Docs/Budget2006.pdf ;  http://www.vob929.com/html/ 
budget/2003/part7.cfm;  and information provided by the authorities. 
(iii) Key sectors 
(a) Sugar 
22. In 2006, sugar production contributed 1% of Barbados's GDP.11  Sugar production used to be 
a key economic activity for Barbados but has dimi nished considerably;  production figures have 
fluctuated since 2002, showing no clear trends.  In 2006, 16,500 acres of sugar cane were harvested, and 348,300 tonnes of sugar produced:  62% was produ ced by independent plantations;  37% by the 
state-owned Barbados Agricultural Management Company Co. Ltd. (BAMC)
12;  and 1% by small 
farmers. 
23. The vast majority of sugar produced in Barba dos is exported:  some 94% in 2007, 96% of 
sugar produced was exported in 2006, and 90% in 2005.  In 2006, exports of sugars and sugar 
confectionary totalled US$19.6 million, and the Unite d Kingdom was the destination for 99% of these 
exports (some US$19.4 million).13  Under the Sugar Protocol (Protocol 3 of the EC/ACP Lomé 
Convention), Barbados' exports of cane sugar have been guaranteed entry within a set quota of 31,097 
tonnes (white sugar equivalent) at a fixed price of  €523.7 per tonne, which is higher than the world 
price for sugar.  In December 2005, the Commissi on implemented a programme of price cuts over a 
four-year period to reduce the guaranteed price to €335 per tonne.  Th e Barbadian authorities 
estimated that Barbados would stand to lose mo re than BDS$30 million (US$15 million) over the 
four-year period.14 
24. As set out in the CARIFORUM-EC Economic Partnership Agreement, reached in 
December 2007, the Sugar Protocol will be term inated on 30 September 2009.  From 1 October 2009 
all exports of beet sugar or sugar cane from CA RIFORUM states will enter the EC duty free and 
quota free.  As an interim step, for the marketi ng year 2008-09, the EC has committed to open an 
additional tariff rate quota at zero duty for 60,000 tonn es of sugar cane or beet sugar originating in the 
CARIFORUM states, half of which is reserved for the Dominican Republic.15 
                                                      
11 Government of Barbados (2006). 
12 The BAMC was created in the 1990s as part of an initiative to restructure the sugar industry due to 
high levels of debt incurred by the sugar plantations .  The BAMC's responsibility has been to manage the land 
and factories producing sugar until these debts have been repaid;  by 2007, some independent plantations had reverted to self-management status.  Under the Barb ados Agricultural Management Co. Ltd (Sugar Bonds 
Guarantee) Act Cap. 255 of the Laws of Barbados, bonds issued by the BAMC are guaranteed by the 
Government. 
13 COMTRADE data. 
14 Government of Barbados (2006b). 
15 CARIFORUM-EC EPA.  Viewed at:  http://www.normangirvan.info/wp-content/uploads/ 
2008/01/full-economic-partnership-a greement-text-with-hyperlinks.doc. Barbados WT/TPR/S/203/Rev.1
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25. Under the Sugar Industry Act, the Minister of Agriculture and Rural Development may 
determine the maximum quantities of sugar and molasse s that may be exported in any year, and issue 
export permits for these products.16  The Barbados Agricultural Ma nagement Company (BAMC) has 
a monopoly on the importation of bulk raw sugar,  and also imports refined sugar (not under 
monopoly).  Imports of raw cane sugar are subject to a BDS$0.90 per tonne levy under the Sugar 
Import Levy Act.17  Under the Revised Treaty of Chaguaramas, Barbados, as a producer of unrefined 
sugar cane, may apply quantitative restrictions on impor ts of unrefined sugar cane from any other part 
of the Community.18  At end May 2008, Barbados has not applied any such measures. 
26. The Government of Barbados has introduced a Cane Industry Restructuring Project aimed at 
moving from the production of low-value raw suga r, to a sustainable high value multi-product 
industry.  In this regard, there are plans to inst all by 2009 a multi-purpose plant capable of producing 
sugar, electricity, and ethanol.  In addition, Barb ados has started selling Barbados sugar as a branded 
product both on the domestic market (as Muscavado Gold) and overseas (as Plantation Reserve), at a 
significantly higher price (BDS$17 per lb), than bulk sugar (BDS$1 per lb).19 
(b) Dairy products 
27. Pine Hill Dairy (PHD) is the sole purchaser of  fresh milk from farms in Barbados.  The 
authorities indicate that there are no legal restricti ons on who may export or import of milk and milk 
products, and Pine Hill Dairy does not have a de facto  monopoly on imports or exports.   
28. A quota system is in operation, whereby farmers may sell milk to the PHD in fixed ratios 
depending on market supply.  The PHD pays the fa rmers a premium price for pasteurised milk sold 
within the quota system, and lower prices for out -of-quota milk used in other products, such as 
yoghurt, UHT milk, and ice cream.  A shortfall in the milk supply in 2006 prompted discussions as to whether this quota system should remain, and whethe r it would be appropriate for fresh milk to be 
imported to bridge this shortfall until such time as local supply matches demand. 
29. The Government requires that 60% milk-needs of the School Meals Service and all other 
Government institutions must be met from local milk production.
20  Milk is also one of the targeted 
areas in which the Government is se eking full self-sufficiency (see section (ii) above).  In this regard, 
and given the production shortfall in the industry,  the Government announced a package of incentives 
in 2006 for diary farmers (see Table IV.1) as well as government funding:  to establish a Dairy Board 
(BDS$250,000)21;  to develop a business plan for the industry (BDS$250,000);  and to provide for 
market research and development (BDS$300,000).22  In addition, in 2007, the Government announced 
that financing would be provided through the Agri cultural Development Fund to assist farmers to 
import more stock.  According to the authorities, 75% of local demand for milk (some 4.5 million kg) 
was produced domestically in 2006. 
                                                      
16 Sugar Industry Act, CAP. 270 of the Laws of Barbados.  Viewed at:  http://www.caricomlaw. 
org/doc.php?id=540. 
17 Sugar Import Levy Act, CAP. 271 of the Laws of Barbados.  Viewed at: 
http://www.caricomlaw.org/docs /Sugar%20Imports%20Levy.pdf. 
18 Revised Treaty of Chaguramas, Schedule II, Mark eting Arrangements for Unrefined Sugar Cane.  
Viewed at:  http://www.sice.oas. org/Trade/caricom/caric8b.asp. 
19 Government of Barbados (2007). 
20 Government of Barbados (2003). 
21 The requisite legislation to establish the Dairy Board has not yet been passed. 
22 Government of Barbados (2006b). WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 62 
 
 
(c) Livestock and meat 
30. As mentioned, the BADMC holds a monopoly on the importation of chicken and turkey 
wings for wholesale and retail sale.  It's responsibilities are to regulate prices in the domestic market (the mark-up is determined on the difference betw een the c.i.f. price and the domestic price) and 
protect domestic producers by controlling imports.  A tendering system is used whereby overseas 
suppliers are invited to tender.  At March 2007,  Barbados' poultry industry supplied 80% of the 
country's requirements, and the government was comm itted to increasing this to 100%.  With this in 
mind the Government has proposed that a Poultr y Board be established, however, no relevant 
legislation has been passed to date. 
31. Pork production is another area in which th e Government is seeking self-sufficiency, and 
supply at least 50% of the processing industry's re quirements.  Pork production increased by 87% 
between 2002 and 2007, and the industry was produc ing 60% of local demand for fresh pork.  To 
encourage production to meet self-sufficiency targ ets, the Government is to provide BDS$300,000 for 
the development of a pig artificial insemination programme.
23 
32. Various poultry and meat products were subject  to special safeguard action in 2002 (see 
section (ii) above). 
(d) Cotton 
33. Cotton production increased year-on-year betw een 2003 and 2006, but there was a significant 
decline in 2007, with production falling to 2003 levels.  In 2007,  59,526 kg of seed cotton was 
received and 19,207 kg of lint was produced.  The pr ivate sector is seeking to generate higher value 
added from cotton produced in Barba dos, and to protect the intellectual property associated with West 
Indies Sea Island Cotton.  The Government ha s committed to providing the WISICA with 
BDS$400,000 to assist in its restructuring efforts.24  Under the Cotton Export Levy Act25, exports of 
cotton are subject to a levy at the rate of 17 cents per pound.  The proceeds of the levy are paid to the 
Barbados Cotton Growers Association. 
(3) MANUFACTURING  
34. The manufacturing sector in Barbados accounted for 5.5% of GDP in 2006 (Chapter I(2)(i)).  
In the same year 9,565 people were employed in manufacturing, mainly in the food processing, beverage and tobacco subsectors.  There has been  steady growth in almost all subsectors over the 
review period (Table IV.2). 
35. Applied tariffs in the manufacturing sector (ISIC  classification) range from zero to 184%:  the 
highest tariffs are on certain processed meat produc ts.  Products attracting tariff rates of 100% or 
above include certain processed meat products;  some  pasta products;  various fruit purees, jams and 
juices;  aerated beverages, as well as beer, stout and shandies.  Various firearms are subject to a 70% tariff.  In 2001, applied tariff rates on a number of manufactured products were raised to 60% 
(Chapter III(2)(iv)). 
                                                     
 
23 Government of Barbados (2007). 
24 Government of Barbados (2007). 
25 Cotton Export Levy Act, CAP. 271 of the Laws of Barbados.  Viewed at:  
http://www.caricomlaw.org/docs /Sugar%20Import%20Levy.pdf. Barbados WT/TPR/S/203/Rev.1
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Table IV.2 
GDP breakdown of manufacturing sectors (current prices) 
Production 
(BDS$ million) Employ-
ment Product 
2002 2003 2004 2005 2006 2006 
Food, beverages and tobacco  135.3 163.9 169.9 170.3 175.4 3,644 
Textiles & wearing appare l 7.3 6.9 7. 5 7.5 7.6 772 
Wood and wood products 7.4 6.7 6.7 6.0 7.8 498 
Paper products, printing and publishing 37.4 38.7 46.4 48.0 59.2 1,003 
Chemicals, oil and non-metallic productsa 33.6 34.3 33.9 37.0 44.3 1,930 
Metal products and assembled goodsb 31.7 31.7 37.0 37.7 46.5 1,581 
Other manufacturing 10.3 10.6 14.3 14.8 16.4 137 
Total 263 292.8 315.7 321.3 357.2 9,565 
 
a Includes: chemicals and chemical products, plastic products, non-metallic mineral products. 
b Includes:  fabricated metal products , precision instruments, electronic co mponents and devices, and handicrafts. 
 
Source: Government of Barbados (2006), Economic and Social Report , Table 4.2-4 and Appendix 2. 
36. At end 2007, there were 15 wholly foreign- owned manufacturing companies, employing 
985 people, and 5 majority foreign-owned compani es, employing 262 people.  The authorities note 
that challenges facing the manufacturing sector in clude:  inadequate and often limited access to 
capital for investment in the sector ;  the inability to build and mark et brands in the domestic and 
export markets;  inappropriate plant, equipment, a nd technology;  relatively high costs of production, 
particularly with increasing energy costs;  a sk ills deficit within the sector, and limited access to 
training programmes.26 
37. Over the review period the Government ha d been encouraging the repositioning and 
diversification of the sector, greater competitiveness , and job creation; and looking to assist industry 
in identifying niche markets and producing higher value-added goods.27  In April 2007,  the BIDC 
released an Industrial Policy for Barbados for the Manufacturing and Related Services Sectors 
(2007-12), which represented a component of Barba dos' long-term development policy as set out in 
Barbados' National Strategic Plan for 2006 to 2025. 
38. Manufacturing industries may benefit from a number of general incentive programmes 
(see Chapter III(3)(iv) and Chapter III(4)(ii)).  In  addition, under the Industrial Investment and 
Employment Fund, assistance to manufacturers is provided for industry re-tooling and plant upgrades.  
Assistance takes the form of loan s at an interest rate of 5.5% as well as equity financing. 
39. The Government has supported the implementa tion of a "Buy Local Campaign" which is 
managed by the Barbados Manufacturers' Associ ation to encourage the purchase of locally 
manufactured goods.  The Government has implemente d the "Basic Industries Programme" which is a 
technical assistance support programme, targeted at the garments, furniture, food and beverages 
subsectors.28  The Buy Local Campaign has specific initia tives and actions designed to achieve five 
major objectives:  increased output and sales by local  producers,  improved technical capacity in local 
plants;  improved quality and variety of product offerings in the domestic and export sectors;  
introduction of practical cost-reduction measures in terms of raw material procurement and plant 
upgrades;  and enhancement of Barb ados' reputation in internationa l markets as a producer of high-
end speciality products.  In addition, the Barbados  Investment and Developm ent Corporation (BIDC), 
assists manufacturing companies by offering techni cal assistance, factory space in government 
                                                      
26 Government of Barbados (2006). 
27 Government of Barbados (2006). 
28 Government of Barbados (2006b). WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 64 
 
 
industrial parks at concessionary rates, and o ffice and production facilities in its Small Business 
Development Centre under an incubator programme.29 
(4) SERVICES  
(i) WTO and regional commitments 
40. As reported in Barbados’s previous Review , Barbados scheduled some commitments under 
the General Agreement on Trade in Services (GA TS), in 1994.  In so doing, it specified two 
horizontal limitations:  regarding commercial prese nce (mode 3) the Property Transfer Tax Act was 
scheduled as a limitation to national treatment.30  As described in the Schedule, the Act stipulates that 
the purchase or sale of land or shares/stocks by a fo reign investor is subject to a specific tax on the 
value of settlement;  Barbados scheduled the Immigr ation Act as a limitation to market access through 
the presence of natural persons (mode 4). 
41. Specific commitments were scheduled in a very limited number of sectors or subsectors listed 
(4 of the 12 sectors, and 21 of the 160 subsectors Services Sectoral Classification List31) (Table IV.3).  
Barbados committed to unlimited market access a nd national treatment for foreign suppliers of 
software implementation services, courier services, reinsurance, and many entertainment services.  
Despite the importance of tourism, Barbados did not include the sector in its WTO commitments. 
42. In 1997, Barbados undertook specific co mmitments in the negotiations on basic 
telecommunications.32  It did not submit an offer in the nego tiations on financial ser vices that ended in 
1998.  Barbados has submitted an  initial conditional offer within the context of the Doha 
Development Agenda Negotiations.33 
43. Provisions for the liberalization of services with in the CARICOM are contained in Chapter 3 
of the Revised Treaty of Chaguaramas.34  Members undertook to notify the Council for Trade and 
Economic Development (COTED) of existing restricti ons to services in all four modes of supply, to 
abolish discriminatory restrictions on the provision of services in respect of CARICOM nationals, and 
not to introduce any new services restrictions (Table IV.3).  As noted by the authorities, Barbados 
removed all necessary restrictions to facilitate  the CARICOM Single Market and Economy (CSME) 
through the passage of the CARICOM Single Mark et and Economy (Implementation) (Miscellaneous 
Provisions) Act, 2004-24. 
44. Incremental steps have also been taken towards the stated goal of free movement of 
CARICOM nationals (Chapter 3, Article 45 of th e Revised Treaty), and this may encourage intra-
CARICOM trade in services through the presence of natu ral persons (mode 4).  As at January 2008,  
nine groups of persons we re permitted to work and reside in any of the CSME Member states without 
a work permit.  These are university graduates, me dia workers, sports persons, artists, musicians, 
                                                      
29 U.S. Department of State (2006). 
30 Barbados has since removed the discriminatory property tax element in the Property Transfer Tax 
Act. 
31 WTO document MTN.GNS/W/120, 10 July 1991. 
32 WTO document GATS/SC/9/Suppl.1, 24 February 1998. 
33 WTO online information.  Viewed at:  http://www.wto.org/english/tratop_e/serv_e/s_negs_e.htm. 
34 CARICOM online information.  Viewed at:  h ttp://www.caricom.org/jsp/community/revised_treaty-
text.pdf. Barbados WT/TPR/S/203/Rev.1
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qualified artisans, non-graduate qualified teachers, and nurses, and holders of associate degrees and 
their equivalents.35   
Table IV.3 
Summary of Barbados's specific commitments under the GATSa 
   Market access National treatment 
 Modes of supply:          
  Cross-border supply 1    1    
  Consumption abroad  2    2   
  Commercial presence   3    3  
  Presence of natural persons    4    4 
Commitments (■ no limitations (none);  ◨ partial limitations;  □ no commitments (unbound);  – not appearing in Schedule) 
1. Business services         
 A. Professional services         
 Legal Services;  medical and dental services (CPC93122) □ □ ◨ ◨ □ □ − ■ 
  Other professional services − − − − − − − − 
 B. Computer and related services          
 Consultants installing equipment; Data processing; 
 databases − − − − − − − − 
 Software implementation services (CPC842)  ■ ■ ■ ■ ■ ■ ■ ■ 
C-F  Other business services − − − − − − − − 
2. Communications services         
       A.   Postal services;   D Audiovisual services  − − − − − − − − 
       B. Courier services (CPC 7152)  ■ ■ ■ ■ ■ ■ ■ ■ 
       C. Telecommunication services          
Voice telephone services;  packet-switched data 
transmission services;  circuit-switched data transmission 
services;  telex services;  telegraph services;  facsimile 
services;  private leased circuit services  ◨ ■ ◨ □ ■ ■ ■ □ 
Electronic mail;  voice mail;  on-line information and data 
base retrieval;  enhanced/value-added facsimile services;  
code and protocol conversion;  on-line information and/or 
data processing;  internet and internet access services;  
telecom equipment sales, rental, maintenance, connection, 
repair and consulting services;  certain mobile services, 
personal communications services and pagingb ■ ■ ■ □ ■ ■ ■ □ 
  Fixed satellite services and non public VSAT services  ◨ ◨ ◨ □ ◨ ◨ ◨ □ 
  Other telecommunication services  − − − − − − − − 
3. Construction services  − − − − − − − − 
4. Distribution services  − − − − − − − − 
5. Education services − − − − − − − − 
6. Services related to the environment − − − − − − − − 
Table IV.3 (cont'd) 
                                                      
35 These requirements were enacted in Barbados through the Immigration (Amendment) Act, 1996, 
Cap. 190 for university graduates and by administrative procedure for other categories of workers.  CARICOM online information.  Viewed at:  http://www.car icom.org/jsp/single_market/skill.jsp?menu=csme. WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 66 
 
 
   Market access National treatment 
 Modes of supply:          
  Cross-border supply 1    1    
  Consumption abroad  2    2   
  Commercial presence   3    3  
  Presence of natural persons    4    4 
7. Financial services         
 A. Insurance and related services           
  Life, accident and health insurance services;  non-life  
  insurance services;  Serv ices auxiliary to insurance − − − − − − − − 
  Reinsurance  ■ ■ ■ ■ ■ ■ ■ ■ 
 B. Banking and other financial se rvices;  C. Other financial  
  services − − − − − − − − 
8. Social and health services − − − − − − − − 
9. Tourism and travel services  − − − − − − − − 
10. Recreational, cultural and sports services         
 A. Entertainment services (CPC96191)  ■ ■ ■ ■ ■ ■ ■ ■ 
 B-E All other recreational, cultural and sporting services  − − − − − − − − 
11. Transport services − − − − − − − − 
12. Other services − − − − − − − − 
a The only authentic source of information on these commitments is Barbados's Schedule of Specific Commitments contained in 
documents GATS/SC/9 and GATS/SC/9/Suppl.1. 
b Mobile services listed include:  mobile services (terrestri al and satellite based); cellular/mobile telephone services;  mobi le data 
services;  personal communication services;  and, paging.  Fu ll commitments scheduled for modes 1 & 3 (market access) were 
listed as being from 1 January 1999. 
Source:  WTO Secretariat. 
45. Some of the bilateral agreements between CARICOM and other countries in the Western 
Hemisphere contain provisions  for the liberalization of services (Chapter II(5)(iii)). 
(ii) Banking and insurance 
(a) Main market features 
46. Barbados's financial services industry is well developed, providing banking services, 
insurance, securities services, and non-bank financia l services (e.g. fund management).  There are 
numerous foreign institutions operating in the domes tic market;  all the commercial banks operating 
domestically are predominantly foreign owned.  Additionally, a number of firms operate under 
international financial services legislation but these do not compete in the domestic market.  
47. At September 2007, there were six domestic commercial banks licensed to operate in 
Barbados.36  There has been consolidation within the ba nking sector through the merger of two large 
players and increased competition arising from the sale  of three other banks to larger foreign banks.  
According to the authorities, commercial banks acc ount for the lion's share of deposits in financial 
institutions in Barbados:  in 2006 there was nearly  BDS$6.4 billion (US$3.2 billion) of deposits in 
                                                      
36 The Bank of Nova Scotia;  Barbados National Bank Inc.;  Butterfield Bank (Barbados) Limited;  
FirstCaribbean International Bank (Barbados) Ltd.;  RBC Royal Bank of Canada;  RBTT Bank (Barbados) Limited. Barbados WT/TPR/S/203/Rev.1
 Page 67 
 
 
commercial banks, out of total deposits of nearly BDS$7.6 billion (US$3.8 billion) in all financial 
institutions (trust companies, commercial banks, cr edit unions, and finance companies).  The four 
largest banks accounted for 82.9% of assets in the sector at end FY2007. 
48. Credit unions are an important feature of the financial system in Barbados, in terms of 
participation by Barbadian residents.  There were  37 credit unions in operation in 2006, with nearly 
145,000 members (72% of the population).37  In 2006, credit unions accounted for domestic deposits 
totalling BDS$308 million (US$154 million).  However, since most of these assets are held by a small number of unions, which offer a ra nge of banking services, these could be considered as competition 
for commercial banks.
38 
49. In 2003, the Government sold the majority of  its shares in the Barbados National Bank (BNB) 
to Republic Bank Ltd;  at end-September 2007, it he ld 18.17% of BNB's shares.  The Government has 
also divested itself of most of its shares in the Insurance Corporation of Ba rbados Limited (ICB);  at 
end 2007, it owned 20% of ICB's assets. 
50. At end-November 2007, there were 57 offshor e banks licensed to operate in Barbados39;  
during the year the operations of fo ur offshore banks were dissolved. 
51. The Central Bank sets a minimum deposit rate, on the basis that the banking market is 
oligopolistic.40  The authorities note that a decision to change the minimum deposit rate is dependent 
upon several factors, including liquidity levels in Barbados and the region, and prevailing 
international interest rates locally, regionally, a nd internationally.  The Central Bank of Barbados 
intervened to lower the cost of borrowing, in July 2001, by introducing indicative weighted average 
rates of interest on loans from commercial ba nks.  This was a temporary measure and was 
discontinued in April 2003.41  In December 2006, the Central Bank specified a minimum deposit rate 
of 5.25%, and at the end of the year, the weighted  average deposit rate was 5.71% and the weighted 
average lending rate was 9.78%, a spread of 4.07%.  In November 2007, the Central Bank lowered the 
minimum deposit rate to 4.75%.42  This compares with a spread of around 8% in 2002.  The 
authorities note that there is no timetable for th e phasing out of the minimum deposit rate as a 
monetary tool.  However, alternative mone tary policy tools are under consideration. 
52. IMF has reported that the banking system, in mi d 2007 appeared to be stable, appropriately 
capitalized, and resilient to plausible shocks.  In anticipation of the abolition of foreign exchange 
controls and increased exposure to risk (see Chapte r 1), the Central Bank has issued guidelines with 
the objective of strengthening Ba rbados’s prudential regime. 
53. There are separate regimes for domestic and exem pt (offshore) companies.  At end 2007 there 
were 30 domestic insurance companies, five of th em foreign owned.  At end 2007, 459 exempt 
(offshore) insurance companies were licensed  in Barbados of which 164 were active. 
                                                      
37 World Council of Credit Unions (2006). 
38 Craigwell et al. (2006). 
39 Central Bank of Barbados online information.   Viewed at:  http://www.centralbank.org.bb/ 
Financial/Offshore_Banks_Nov_2007.pdf. 
40 Central Bank of Barbados (2004). 
41 Central Bank of Barbados Press Release, 31 March 2003.  Viewed at:  
http://www.centralbank.org.bb/ Pub lications/press_31mar2003.shtml. 
42 The authorities note that the incr ease of the minimum deposit rate from 4.57% to 5.25% in December 
2006 was intended to encourage savings, slow the grow th of credit in the privat e sector at the time and 
consequently increase liquidity within the banking system.  As liquidity recovered, the minimum deposit rate was reduced to 4.75% (November 2007). WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 68 
 
 
(b) Banking legal framework 
54. The Bank Supervision Department of the Centra l Bank of Barbados is responsible for the 
regulatory and prudential oversight of both the domestic and o ffshore banking sectors.  Under the 
International Financial Services Act and the Financial Institutions Act, the Minister of Finance has the 
sole power to impose and approve certain sancti ons and provisions on licences.  The Minister may 
delegate some of these functions.  
55. Different legislation applies to providers of  financial services depending on whether they 
supply services to residents or manage foreign funds for foreign persons ("offshore" services).  This 
duality was maintained during the period under review. 
56. Barbados' offshore regime has been under scr utiny by the OECD.  However, it was not 
blacklisted as non-cooperative by the OECD Fina ncial Action Task Force (FATF) whose mandate 
was to examine money-laundering trends, and set  out measures to combat money laundering.43  Anti-
money laundering supervision is carried out by the Financial Intelligence Unit, a division within the 
Anti Money Laundering Authority (AMLA). 
57. The Financial Institutions Act, No. 16 1996 ( as amended in August 2007) is the main law 
governing the onshore banking sector.44  It requires banks to be licensed by the Minister responsible 
for finance.  Banks may be incorporated domestical ly or be established branches of foreign banks.  
Minimum capital and reserve requirements apply e qually to domestic and foreign banks, and all 
licensed banks may provide the same services.  A foreign bank must notify the Minister of any 
substantial changes in areas such as its structure, the organization of its business, and changes in its 
assigned capital.  There are no specific taxes on fina ncial transactions.  There are no citizenship or 
residency requirements for bank directors. 
58. In 2006, the Central Bank of Barbados intr oduced a requirement for commercial banks to 
deposit 6% of their foreign currency deposits with the Bank, and undertook to pay interest on these 
deposits.  The objective is to ensure that a larger  proportion of the excess foreign currency within the 
banking system is made available to the general pool of foreign reserves held by the Central Bank.45 
59. The legal framework governing the operation of credit unions includes the Cooperative 
Societies Act 1990; and the Cooperative Societies Regulations (1993). 
60. The main law governing the operations of offs hore banks is the Inte rnational Financial 
Services Act of 2002, which repl aced the Off-shore Banking Act (1985).46  This Act requires all banks 
to be licensed.  Banks may be branches or subsidia ries of foreign banks, or locally incorporated.  At 
least one director must be a citizen of a member  state of CARICOM who is residing in Barbados. 
Minimum capital requirements and capital adequacy ra tios apply equally regard less of the origin of 
capital.  Offshore banks must have a place of business in Barbados. 
                                                      
43 WTO (2002). 
44 Amendments to the Financial Institutions Act in 2007 included:  definitions to support the Deposit 
Insurance;  expanded definition of the word "group";  definition of "significant interest";  amended definition of 
"auditor";  provisions for the charging for the supervisory services by the Central Bank;  and amendments to 
Part V of the Act – Winding up, Reorganization and Si ezure of Licences.  Further amendments are being 
considered. 
45 Central Bank of Barbados (2007). 
46 International Financial Services Act (2002).  Viewed at:  http://www.barbadosbusiness.gov.bb/ 
miib/Legislation/documents/international_financial_services_act.pdf. Barbados WT/TPR/S/203/Rev.1
 Page 69 
 
 
61. All business must be conducted with forei gn currency or assets, and with non-residents 
(although offshore banks may accept foreign assets in trust from offshore entities resident in Barbados).  Offshore banking (international financ ial services according to the Act) encompasses not 
only receiving and using foreign funds, but also accepting foreign assets (foreign currency, securities 
or property) in trust. 
62. Offshore banks are exempt from various taxes, in cluding:  capital gains taxes and other direct 
taxes on profits and gains; withholding tax;  taxes on dividends, increases on the value of property, 
and other assets; and transfer of securities.  The Act states that income tax may be payable on profits ranging on a sliding scale from 2.5% to 1% with hi gher profits attracting lower tax rates.  Offshore 
banks are not exempt from payment of service or u tility charges, which include charges relating to 
incorporation, registration or licensing.  At the Mi nister's discretion, offshore banks are eligible for 
customs duty exemptions on equipment or fixt ures essential for doing business in Barbados.  
Exchange controls do not apply to offshore banks. 
(c) Insurance legal framework 
63. As with banking, separate regimes apply to  domestic insurance companies and exempt 
(offshore) insurance companies, with the exception of "qualifying insurance companies" (see below). 
64. The Insurance Act Cap. 310 (as amended in 2001 and 2004) sets out the criteria for 
registration and supervision of domestic insurance companies, by the Supervisor of Insurance.  
Companies must maintain deposits proportional to th e level of premium income generated.  Risks 
located in Barbados must be insured by local insu rance companies registered with the Supervisor of 
Insurance.  Risks for which coverage is not ava ilable locally may be insured by foreign insurance 
companies (cross-border trade), subject to the approval  of the Supervisor of Insurance;  however, if 
the insurance is approved, a re mittance tax amounting to 20% or 15% of the premium (for property 
insurance or life and health insura nce, respectively) may be levied.
47  The authorities note that 
measures to strengthen supervision of the insurance sector are under consideration. 
65. Insurance companies that have a minimum of 90% of their risks and premiums coming from 
outside CARICOM may be registered as "qualif ying insurance companies" (QICs) under the 
Insurance Act.  Such co mpanies are eligible for tax advantag es enjoyed by companies registered 
under the Exempt Insurance Act (see below), with  the exception of corporate income tax which 
remains payable at the same rate as domestic general insurance companies. 
66. Exempt (offshore) insurance companies may be es tablished either as a branch of a foreign 
company or a company incorporated under the Comp anies Act, and in both cases must be registered 
under the Companies Act.  A licence must be obtaine d from the Office of the Supervisor of Insurance 
and Pensions and nominal applica tion and incorporation fees apply as well as an annual licence fee of 
US$2,500. 
67. Companies licensed under the Exempt Insura nce Act are exempt from income tax, 
withholding taxes, corporate taxes on capital gains, taxes on the transfer of assets or securities, and 
stamp duty on capital.  They are not subject to exchange controls.  Companies may underwrite both general and long-term risks under the same licence.
48  All risks and premiums must originate outside 
Barbados.  Minimum capital requirements apply.   Exempt insurance companies must have a 
registered office and a resident representative in Ba rbados, the registered office may be that of the 
                                                      
47 WTO document WT/TPR/S/101, 10 June 2002. 
48 BIDC (2005). WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 70 
 
 
representative. The requirement for a director of the company to be a resident citizen of Barbados has 
been repealed.49 
(iii) Telecommunications 
(a) Main market features 
68. During the period under review, Barbados has c ontinued to liberalize its telecommunications 
sector.  
69. Responsibility for policy formulation rests with the Minister of Finance, Economic Affairs 
and Energy.  A Telecoms Unit within the Minist ry is responsible for regulation of the local 
telecommunications system50;  the Fair Trading Commission has authority to regulate tariff rates and 
address consumer protection and unfair trading. 
70. Until 2001, Cable and Wireless, was the monopol y provider of nationa l and international 
telecommunications services in Barbados under exclusive licences, expiring in 2011.  The 
Government had been planning reform of  the telecommunications sector since 199751; its proposed 
liberalization strategy was set out in the Green Paper on Telecommunications issued in December 
2000.52  The first main step was the renegotiation of the exclusive licences given to Cable and 
Wireless;  the agreements reached were set out in a Memorandum of Understanding signed in October 
2001.53  New legislation, the Telecommunications Ac t CAP. 282B of 2001, was enacted to govern the 
sector. 
71. Liberalization was introduced in a phased appr oach.  This should have been completed by 
August 2003, but full liberalizati on was achieved in February 2005. 
72. Carrier licences are granted for the ownership and operation of teleco mmunications networks, 
and service provider licences are granted for the pr ovision of telecommunications services.  In mid 
2007, 21 carrier licences had been granted to 8 licen cees (companies);  15 licences were in service.  In 
addition, 22 service provider licences had been gran ted to 8 licensees (companies);  16 licences were 
in service. 
73. As at end May 2008, Cable a nd Wireless was the only compan y providing domestic fixed line 
services.  In 2007, residential local fixed line rates ranged between BDS $39.44 and BDS$84.87 per 
month (compared to BDS$32.20 to BDS$97.75 pe r month in 2003), business rates range from 
BDS$23.00 to BDS$163.30 per month. 
74. Two companies, Cable and Wireless and Digicel  are active in the cellular market.  The 
incumbent has reduced its post-paid cellular ra tes:  in 2003, these ranged from BDS$0.40 to 
BDS$0.77 and in 2007, they ranged from BDS$0.19 to  BDS$0.27.  Digicel's post-paid cellular rates 
have not changed since it started operations, th ese ranged from BDS$0.30 to BDS$0.70 per minute.  
                                                      
49 The requirement was repealed by the International Business (Miscellaneous Provisions) Act,  
2004-07. 
50 Telecoms Unit online information.  Viewed at:  http://www.telecoms.gov.bb. 
51 WTO (2002).  In 1996 a Technical Committee was appo inted by the Prime Minister to assist in the 
formulation of a National Telecommunication Policy.  It presented its report in July 1997. 
52 Ministry of Industry and International Business Green Paper on Telecommunications Sector Policy, 
20 December 2000.  Viewed at:  http://www.barbados. gov.bb/Docs/GreenPaperTelecomSecPol1.pdf. 
53 Memorandum of Understanding Between Government of Barbados and Cable and Wireless 
(16 October, 2001).  Viewed at:  http ://www.barbados.gov.bb/Docs/MOU_CW.pdf. Barbados WT/TPR/S/203/Rev.1
 Page 71 
 
 
No information was available on line rental rates fo r either company.  Both companies also offer 
prepaid and international cellular services.  Sunb each has been granted a li cence to provide cellular 
mobile telephony, but has not commenced operations. 
75. Five companies are licensed to provide interna tional telephony:  Cable and Wireless, Digicel, 
TeleBarbados, Sunbeach and Blue Communications .  Information was not available on which 
companies had commenced operations and the rates charged. 
76. Three companies, Cable and Wireless, Sunbeach  and TeleBarbados offer both dial-up and 
ADSL internet services. 
77. Barbados undertook specific commitments in the extended WTO negotiations on 
telecommunications, and accepted the reference paper.54  Its WTO Schedule reflects the regulatory 
framework as at 1997, and commits to liberalize voice telephony, data transmission, and private 
leased circuit services offered to the general public in 2012, as planned under the initial monopoly 
arrangement with Cable and Wireless.  In additi on, Barbados undertook to allow the unrestricted 
supply of terrestrial- and satellite-based mobile ser vices (cellular, data, and paging) as of 1999.  
Barbados also committed to liberalize market acces s on a variety of value-added services, including 
Internet access and V-SAT services.55 
(b) Legal framework 
78. In order to own or operate telecommunicati ons networks and provi de telecommunications 
services, a licence must be obtained from the Minister  of Economic Affairs.  Licences are renewable.  
The granting of licences is at the discretion of the Minister, on the advice of the Chief 
Telecommunications Officer.  
79. Obligations attached to licences may include:  interconnection;  universal service;  licence 
limitations; and network build-out requirements.  Ap plication fees and annual fees for licensees differ 
significantly depending on the type of licence granted.56  The Minister has the authority to modify 
licences without the consent of the li censee, where he is of the view that the modification is necessary 
for reasons of public interest.  The Minister has not exercised this right. 
80. Universal service obligations appl y to the following services:  fi xed-line private residential;  
fixed line public payphone;  emergency and directory services;  and special services for the disabled or elderly.  Contributions to a universal service fund are collected from all carriers and service providers through the Access Deficit Charge, which is paid to the designated universal service carrier 
for initiating and terminating calls. 
81. A price cap plan introduced on 1 April 2005, whic h runs to 31 July 2008 applies to domestic 
and international fixed line servic es provided by Cable and Wireless.
57  A flat rate in place for fixed 
line local calls allows residential and business c onsumers unlimited local calls for any duration. 
                                                      
54 WTO document GATS/SC/9/Suppl.1, 24 February 1998. 
55 WTO online information.  Viewed at:  http ://www.wto.org/english/tratop_e/serv_e/telecom_ 
e/telecom_highlights_commit_exempt_e.htm. 
56 Telecoms Unit online information, Schedule of Licence Fees Payable for Various Types of 
Telecommunications Network Operators and Services in Barbados .  Viewed at:  http://www.telecoms.gov.bb/ 
Fees/tabid/63/Default.aspx. 
57 FTC Price Cap Mechanism Decision.  Viewed  at: http://www.ftc.gov.bb/library/2005-04-
19_commission_decision_price_cap.pdf. WT/TPR/S/203/Rev.1 Trade Policy Review 
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82. As required by Part VI of the Telecommunicati ons Act (2001) and the Interconnection Policy 
issued in July 200358, interconnection must be provided wh en requested by other carriers, inter alia , 
on transparent and non-discriminatory terms and in a timely fashion.  Interconnection rates must be 
cost-based59;  and network components must be sufficiently unbundled so that the interconnecting 
operator does not pay for facilities it does not need.  Interconnection agreements can be reached either 
on the basis of a commercial negotiation betwee n carriers or under the terms of a Reference 
Interconnection Offer (RIO), which must have b een filed by the dominant carrier with the 
Commission, and approved by the latter.  All inte rconnection agreements must be approved by the 
Commission.  In April 2003, Cable and Wireless (B arbados) Ltd. was declared the dominant carrier 
for fixed line services.  RIOs have been conclude d for mobile and domestic fixed wireless services. 
83. In the  event of a pre-contract interconnecti on dispute between the parties, the Commission 
may determine interconnection terms and conditions.  In its determination the Commission is obliged 
to take into account the interconnection principles as well as other specific issues laid out in the 
Interconnection Policy.  The Commission is also res ponsible for resolving disputes referred to it under 
the terms of an interconnection agreement.  Interc onnection dispute resolution procedures were issued 
by the FTC in 2003.60 
84. The authorities note that two policies have been operationalized to promote competition with 
respect to international calls:  the Two-Stage Dia lling Policy and the Equal/Indirect Access Policy.  
The latter gives consumers the ability to pre-select th eir international service provider or to select any 
international service provider on a call-by-call basis. 
85. No telecommunications-specific taxes are levi ed by the Government.  Telecommunications 
providers (Cable and Wireless,  TeleBarbados, Sunbeach and Digicel) are entitled to import all 
telecommunications equipment duty free, as long as it is for their exclusive use. 
(iv) Transport 
(a) Air transport 
86. In 2006, there were 1,048,253 passenge r arrivals by air.  No data are available on the volume 
and value of merchandise trade transported by air. 
87. Barbados' only international airport, the Gran tley Adams International Airport serves as one 
of the main regional hubs.  Over the review peri od, there has been a major expansion and renovation 
of the terminal building, runway, and parking facilities. 
88. The airport is owned by the Government.  Grantley Adams International Airport Inc. 
(GAIA Inc.) has responsibility for managing and maintaining the airport61; this body, established in 
2003, is a government-owned limited liability company with a board of directors.  The lands of the 
                                                      
58 Telecoms Unit online information, Interconnection policy .  Viewed at:  http://www.telecoms.gov.bb/ 
Documents/Policies/pdf/ Interconnection%20Policy.pdf. 
59 In June 2003, the FTC issued "Interconnectio n Guidelines – Accounting, Costing and Pricing 
Principles", which sets out the methodology by which interconnection charges (through an agreement or through an RIO) must be determined.  FTC online information.   Viewed at:  http://www.ftc.gov.bb/library/2003-07-
01_interconnection_guidelines.pdf. 
60 FTC online information.  Viewed at:  http://www.ftc.gov.bb/library/2003-07-01_decision_on_dispute 
_resolution_v4.pdf. 
61 Grantley Adams International Airport (Transfer of  Management and Vesting of Assets), L.R.O. 
2003, CAP. 286 of the Laws of Barbados.  Viewed at:  http://www.caricomlaw.or g/docs/ Grantley%20Adams% 
20International%20Airport%20(Transfer%20of%20Management%20and%20Vesting%20of%20Assets).pdf. Barbados WT/TPR/S/203/Rev.1
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airport are leased by the Government to GAIA Inc.   The management structure of the airport was 
changed in 2003 to, inter alia  run, the airport on a commercial basis.  According to the authorities, 
partial privatization of the airport is envisaged fo r the future, however, the Government is likely to 
maintain a controlling interest.62  Companies may apply to provide ground handling services;  and 
some bilateral air services agreements contain pr ovisions for self-handling by airlines of the other 
party, subject to physical constraints.  At end-Ma y 2008, there were five private companies providing 
ground handling services.63  Air traffic control services remain with the Ministry of International 
Transport.  Within the Ministry, the Civil Aviation Department has a regulatory role. 
89. Air transport activity in Barbados is primarily  governed by the Civil Aviation Act 2004-18 as 
amended by the Civil Aviation (Amendment) Ac t 2007-38;  and the Airport Act Cap. 285A and 
regulations made thereunder. 
90. Barbados has signed and ratified the CA RICOM multilateral air services agreement 
(CARICOM MASA), which entered into force in November 1998.64  CARICOM MASA has also 
been ratified by Antigua and Barbuda, Belize, Do minica, Grenada, Guyana, St. Kitts and Nevis, 
St. Lucia, and Trinidad and Tobago.  This agreemen t confers third and fourth freedom route rights to 
airlines owned and operated by Caribbean nationals .  Fifth freedoms are exchanged on a bilateral 
basis, and day tour regimes may also be negotiated.  Article 9, allows for bilateral discussions to take 
place among Members with regard to air taxi operations, while Article 8 stipulates that a Member State shall not be required to grant cabotage righ ts to a CARICOM air carrier of another Member 
State.  The authorities note that CARICOM MASA is being reviewed with a view to replacing it with 
an agreement that conforms to the provisi ons of the Revised Treaty of Chaguaramas. 
91. The Air Transport Agreement among the member states and associate members of the 
Association of Caribbean States has been signed an d ratified by Barbados.  The agreement, has not 
entered into force.  Based on a policy decision at CARICOM level, a first round of negotiations 
towards a plurilateral air service agreement was held  with the United States in August 2004 at which a 
draft air services agreement text was initiated.  There has not been a second round of negotiations. 
92. Barbados has bilateral air services agreements  with Belgium, Canada, Cuba, Denmark, 
Luxembourg, the Netherlands, Nigeria, Norway, Sw eden, the United Kingdom, the United States, and 
Suriname, and has an interim agreement with Germ any.  New agreements with Switzerland and Brazil 
and revised agreements with the United Kingdom  and Canada have been  initialled and applied 
provisionally.  Memoranda of understanding (MOUs ) govern air services between Barbados and 
Aruba, and with Venezuela.  Barbados has also c oncluded MOUs with St. Lucia and St. Vincent and 
the Grenadines on air taxi services.  Some of the main features of Barbados' bilateral and plurilateral air services agreements are contained in Table AIV.1. 
93. Barbados does not have a national airline, but the Government has a 49.04% share in the only 
regional scheduled airline LIAT:  LIAT (1974) Ltd completed an asset purchase of Caribbean Star in 
October 2007.  Barbados-registered airlines must be  majority owned by Barbadian nationals and/or 
CARICOM nationals.  Scheduled airlines operating into Barbados must obtain a license (Civil 
Aviation (Licensing of Air Services) Regulations 2 007) from the Air Transport Licensing Authority, a 
statutory body established under the Civil Aviation Act.  Airlines wishing to operate charter services, must obtain a permit from the Minister respons ible pursuant to the same regulations. 
                                                     
 
62 GAIA Inc. online information.  Viewed a t:  http://www.gaiainc.bb/html/about-us.html. 
63 These are:  Caribbean Aircraft Handling Services ;  Fields Air Services;  International Aircraft 
Management;  Private Aircraft Services;  Seawell Air Services. 
64 CARICOM online information.  Viewed at:  http://www.caricom.org/jsp/secretariat/legal_ 
instruments/agreement_multilateralairservices.jsp?menu=secretariat. WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 74 
 
 
94. Barbados has not scheduled any GATS specific commitments on air transport activities listed 
in the GATS Air Transport Annex:  computer rese rvation systems (CRS), selling and marketing of 
transport services, and aircraft repair and mainte nance services.  The authorities indicate that in 
practice, there are no restrictions on the provision of these services in Barbados. 
(b) Maritime transport 
95. In 2003, the latest year for which data are ava ilable, the total volume of trade transported by 
sea was 958,874 tonnes (imports: 844,172 tonnes, and e xports 114,702 tonnes).  This represented a 
slight increase over the previous year (910,165 tonnes).65  I n  v o l u m e  t e r m s ,  m o s t  o f  B a r b a d o s ' s  
exports are shipped to other Caribbean countries and to America (47% and 42% respectively in 
2003)66  
96. Maritime activities are governed by the Shipping Act, Cap. 296 (as amended);  the Shipping 
Regulations, 1994;  the Shipping (oil pollution) Act, Cap. 296A;  the Shipping Corporations Act;  and 
the Shipping Corporations Regulations, 1997. 
97. Barbados did not take any GATS commitments  on maritime transport.  The authorities 
indicate that, in practice, there are no restrictions on the international transport of freight and 
passengers. 
98. Under the Shipping Incentives Act Cap. 90A (as amended by the Shipping 
(Incentives)(Amendment) Act 2005-5), approved shippi ng companies are entitled to a number of tax 
benefits, when involved in the operation or l easing of ships for carriage of passengers or cargo, 
commercial shipping and boating in the tourist indu stry, the leasing of ships or in shipbuilding, 
including the reconstruction, alteration, refitting, eq uipping, maintenance or repair of ships.  These 
benefits include:  duty-free imports of ships or any ar ticles to be used in reconstruction, etc. of ships 
and exemption from tax on dividends and interest.  An approved shipping company is any company 
that is engaged in shipping activities, or that is wholly owned by the Crown or in which the 
Government has a majority interest.  According to the authorities, the purpose of the Act was to 
encourage the development of a shipping industry in  Barbados, and an indigenous industry for ship 
repairs. 
99. The Barbados Ships' Registry deals with all foreign-going ships and all coastal and Caribbean 
ships over 150 tonnes.  There are no restrictions on the ownership of vessels.  Vessels over 20 years of 
age on initial registration may be accepted by the Principal Registrar, providing they meet the 
requirements of Conventions to which Barbados is party.  At  end-May 2008, 160 vessels were 
registered under the Barbados flag.  The Director of Maritime Affairs deals with all other ships. 
100. The Bridgetown Harbour, Barbados' only port, is owned by the Government of Barbados;  
sole responsibility for providing port ser vices rests with Barbados Port Inc.67  Barbados Port Inc. was 
established in 2003 as company incorporated under the Companies Act, but is owned by the Government of Barbados.  This change in management was undertaken with a view to enabling the 
                                                     
 
65 Barbados Port Authority online information.  Viewed at:  http://www.barbadosport.com/ 
statisticaldigest2003.pdf. 
66 Barbados Port Authority online information.  Viewed at:  http://www.barbadosport.com/ 
statisticaldigest2003.pdf. 
67 Barbados Port Authority Inc. online information.  Viewed at:  http://www.barbadosport.com. Barbados WT/TPR/S/203/Rev.1
 Page 75 
 
 
Port to operate as a commercial entity.68  Some services are provided by the private sector on behalf 
of BPI:   depot services, maritime agency services, maritime freight forwarding services, stevedoring, 
and maintenance and repair of vessels.  The author ities indicate that approximately 22 containers are 
unloaded per hour at Bridgetown Harbour. 
(v) Tourism 
101. In 2007, Barbados received 581,515 long stay to urist arrivals, mostly from Europe (mainly 
the United Kingdom), and the United St ates, and 616,354 cruise passengers.69  The number of long 
stay arrivals has grown steadily over the review period, with the exception of a slight dip in 2005.70  
The authorities have attributed recent growth to the strong exchange rates of sterling and other 
currencies against the U.S. dollar.  Barbados has al so signed a multi-year contract with major cruise 
lines to guarantee minimum numbers of cruise passe nger arrivals.  Visitor expenditure in 2007 
totalled BDS$2.4 billion (US$1.2 billion). 
102. The Ministry of Tourism has responsibility for policy formulation in the sector.71  Barbados 
Tourism Investment Inc. (BTI) is a development agency charged with facilitating investment in 
tourism.72  The Barbados Tourism Authority is responsible for:  tourism promotion and marketing; 
carrying out market intelligence;  registering and licensing and classifying tourist accommodation and 
restaurants; licensing hotels; and regulating other tourist services as determined by the Minister.73  It 
also is charged with maintaining existing air and sea passenger transport services to and from 
Barbados, and cultivating new routes.  The Government  of Barbados is the major shareholder of the 
Gems group of hotels of Barbados (with a 94.4% sh are) as well as the largest shareholder in the 
regional carrier LIAT (49.04% share). 
103. The Government of Barbados offers a number of tax incentives to the tourism industry.  
These fall mainly under the legislative framework of the Tourism Development Act Cap. 341 which 
replaces the Hotels Aid Act (1956), but also under the Special Development Areas Act (see below).  
Total revenue forgone as a result of these pr ogrammes amounted to BDS$16.7 million in 2007 
(around US$8.4 million); and BDS$17. 3 million in 2006 (US$8.7 million). 
104. The Tourism Development Act Cap 341 (2002)  widened the application of tax incentives to 
include not only tourist accommodation, but also r estaurants, recreational facilities, tourism-related 
services, cultural and natural sites, and any ot her tourism project.  These tax incentives include 
customs duty exemptions for the import of building materials and a range of furniture and fixtures.74  
Owners or operators of tourism products are elig ible for various income tax concessions and are 
exempted from import duties, VAT and the environmen tal levy.  Investors (persons providing loans, 
other than commercial banks) are eligible for an invest ment tax credit to be offset against tax payable.  
Investors also enjoy exemption from income tax.  Th e Minister retains the right to approve or refuse 
                                                      
68 Barbados Port Inc. (Transfer of Management and Vesting of Assets) L.R.O. 2003, CAP.285B.  
Viewed at:  http://www.caricomlaw.org/docs/%20( Transfer%20of%20Management%20and%20Vesting%20of 
%20Assets).pdf. 
69 In 2006, there were 240,923 arrivals from Europe; 130,767 from the United States;  49,198 from 
Canada;  and 141,670 from other destinations. 
70 Government of Barbados (2006), Appendix table 26. 
71 The Barbados Ministry of Tourism online inform ation.  Viewed at:  http://www.barmot.gov.bb. 
72 Barbados Tourism Investment Inc. online information.  Viewed at:  http://barbadostourism 
investment.com. 
73 The Barbados Tourism Authority Act, Cap. 342 of the Laws of Barbados.  Viewed at:  
http://www.barbadosbusiness.gov.bb/miib/Legislation/docu ments/barbados_tourism_authority_act_cap342.pdf. 
74 The list of furniture and fixtures that may be imported duty free is listed in the Second Schedule to 
the Act. WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 76 
 
 
applications for tax concessions, and accordingly applications are vetted on the basis of a 
determination as to whether the tourism project is practical and would assist with the development of tourism in Barbados.
75  The authorities note that terms and conditions attached to tax concessions do 
not include requirements to employ Barbadian nationals. 
105. Under the Special Development Areas Act, devel opers involved in cons tructing, renovating or 
refurbishing buildings related to cer tain tourism activities in specific areas of the country are eligible 
to be exempt from certain taxes.  Tax exempti ons relate to the payment of import duties, the 
environmental levy and VAT on inputs for building works.  Investors making loans for such projects are also exempt from income tax on the interest received. 
106. The Enterprise Growth Fund Limited provides funding for certain small-scale tourism 
projects through the Small Hotels Investment Fund (SHIF), and the Tourism Loan Fund.  Through the 
SHIF, the Small Hotels of Barbados Inc. and its  members may apply for loans to assist with 
marketing, management, procurement of joint servi ces and refurbishment.  The repayment period is 
ten years at a 5% interest rate.  One-quarter of the initial funding for the SHIF was provided by the 
Government (BDS$5 million), and the rest was raised  by the private sector.  Through the Tourism 
Loan Fund, loans are provided for refurbishing and upgrading hotels of 75 rooms or less and facilities 
for historical, cultural, and natural heritage attractions .  The interest rate is 5.5%.  The Government set 
up this fund with an initial cont ribution of BDS$30million (US$15 million).
76  The authorities 
confirm that funding is available equally to citizens, residents, and foreigners. 
(vi) Professional services 
107. Barbados has undertaken GATS commitments on legal services (legal documentation and 
certification services) and medical services (specialized medical services).  Professional services are governed by the Profession, Trade and Business Registration Act, Cap. 373, a general law under 
which professional and other services providers are requi red to register with the Registrar or Chief 
Labour Officer and pay an annual fee.
77  A number of professions are also regulated by sector-specific 
legislation.  
108. Model guidelines for the licensing and regulation of architects, nurses, accountants, and 
engineers are in the final stages of development at the CARICOM level.  The authorities note that 
these are expected to be completed by the third quarter of 2008. 
109. The Barbados Accreditation Council, established by Act of Parliament in 2004, is charged, 
with inter alia , responsibility for recognizing the equiva lency of foreign-based qualifications.78  
According to the authorities, on average, prof essional qualifications of  regional and foreign 
professional are verified in eight weeks.  The A ccreditation Council is not responsible for signing 
mutual recognition agreements relating to professi onal services;  this rests with the respective 
professional bodies. 
110. A programme coordinated by Invest Barbados , to promote export-ready business services,  
including legal and accounting services, is in an early stage. 
                                                      
75 BTI online information.  View ed at:  http://barba dostourisminvestment .com/legislation_and_ 
incentives.cfm. 
76 Enterprise Growth Fund Limited online information.  Viewed at:  http://egfl.bb. 
77 Profession, Trade and Business Registration Act, L.R.O. 1991, CAP.373 of the Laws of Barbados.  
Viewed at: http://www.caricomlaw. org/docs/Profession%20Trade%20and% 20Business%20Registration.pdf. 
78 Barbados Government Information Service online information.  Viewed at:  http://www.barbados. 
gov.bb/site_search.asp?id=200611154562.txt. Barbados WT/TPR/S/203/Rev.1
 Page 77 
 
 
(a) Accounting services 
111. Barbados responded to the 1996 Working Part y on Professional Services questionnaire on the 
accountancy sector.79  The industry is self-regulating:  regul atory and disciplinary responsibility is 
exercised by the Institute of Charte red Accountants of Barbados (ICAB).80  Under the Companies Act 
Cap. 308, and the Charities Act, company audits must  be performed by ICAB members.  Public sector 
audits (including audits of statutory corporations ) need not be performed for ICAB members.  The 
authorities note that the growth of the internati onal business sector has had a spill-over effect on 
demand for accountancy services. 
112. Accountants may practice as sole practitioners; in a partnership with an unlimited liability 
structure; or within a company.  (Amendments to the Companies Act have enabled persons, both 
natural and juridical, to qualify as an auditor and therefore provide audit services through the vehicle 
of a company.)  According to the authorities, Ba rbadian practitioners work closely with foreign 
service providers, and there has been some concern in  the industry that in the event of professional 
negligence or misconduct, the Barbadian accountants, ra ther than their incorp orated colleagues, are 
likely to bear the burden of professional liability.  The ICAB is therefore proposing that the 
Government permits some degree of limitation on their professional liability.81 
113. Foreign accountants require a work permit, must have at least three years approved practical 
experience under the supervision of one or more members of a body recognized by the Council, and 
must qualify for membership of, and obtain a practicing certificate from, the ICAB.  Persons who are members of certain institutes and associations in  the United Kingdom, Ireland, Canada, the United 
States, Australia, and New Zealand are entitled to ICAB membership.
82  The Council has not 
approved any other bodies. 
114. ICAB is a member of the Institute of Charte red Accountants of the Caribbean (ICAC).  As 
noted by the authorities, discussions on a common accountancy qualification for ICAC members has been put on the shelf. 
(b) Architectural services 
115. In 2003, new legislation was enacted to cr eate a framework for the regulation of the 
architecture profession.  The Architects Registration Act
83, sets up an Architects Registration Board.  
The Board comprises government officials and re gistered architects.  All architects providing 
architectural services (as defined in the Act) within  Barbados must be registered under this Act. 
116. In order to be registered as an architect, certain qualification requirements apply and 
architects must have accumulated at least three years of approved practical experience.  Architects 
must have been awarded a qualification from an instit ution that in the Board's opinion, is evidence of 
satisfactory training.  Educational institutions recognized by the Commonwealth Association of 
                                                      
79 WTO document S/WPPS/W/7/ Add.12, 9 Au gust 1996. 
80 ICAB online information.  Viewed at:  http://www.icab.bb.  See also Institute of Chartered 
Accountants of Barbados (Incorporation) Act L.R.O. 1987, CAP.369A of the Laws of Barbados.  Viewed at http://www.caricomlaw.org/docs/Ins titute%20of%20Chartered%20Accountants%20of%20Barbados%20(Incorp
oration).pdf. 
81 Ministry of Foreign Affairs and Foreign Tr ade and the Commonwealth  Secretariat (2007). 
82 ICAB online information.  Viewed at:  http://www.icab.bb/UserFiles/File/about_the_institute.pdf. 
83 Architects Registration Act, L.R.O. 2003, C.A.P.  366 of the Laws of Barbados.  Viewed at:  
http://www.caricomlaw.org/docs/Archit ects%20Registration.pdf, as amende d by the CARICOM Single Market 
and Economy (Implementation) (Miscellaneous Provisions) Act, 2004-24. WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 78 
 
 
Architects (CAA) and the American Institute of Architects (AIA) who provide a minimum of five 
years of training leading to a professional degree, ha ve been recognized by the Architects Registration 
Board.  Otherwise they must be registered by an overseas body that, in the Board's view, upholds satisfactory standards of architecture.  The Roya l Institute of British Architects (RIBA), the Royal 
Architectural Institute of Canada (RAIC) and th e American Institute of Architects (AIA) are the 
overseas bodies that have been recognized by the Board. 
117. Foreign (non-CARICOM) architects must be registered under the Barbados Architects 
Registration Act.  They must also be registered  in a country other than Barbados or any other 
CARICOM Member State whose requirements are no l ess exacting than the registration requirements 
in Barbados;  reciprocal arrangements must exist between the Barbados Architects Registration Board 
and the respective overseas body;  architects must  have sufficient practi cal knowledge of local 
conditions in Barbados; and they must have obtained the necessary work permit.  The authorities note 
that there are no reciprocal arrangements in place between the Barbados Architects Registration Board and any overseas body, which in principle preclude foreign architects from practicing in Barbados.  
However, the authorities have indicated that in pr actice reciprocal arrangements are not a condition 
for foreign participation. 
118. The Architects Registration Act permits partne rships, associations, and corporations to 
practice architecture under their own name and in su ch cases architectural work must be undertaken 
under the responsibility of a full time employee who is  a registered architect.  According to the 
authorities, there are no restrictions on a forei gn architectural company establishing a commercial 
presence in Barbados other than that the foreign architects must be registered under the Barbados 
Architects Registration Act. 
(c) Engineering services 
119. In order to practice engineering, engineers (both resident and foreign) must be registered by 
the Engineers Registration Board.  This Board was established by Act of Parliament in 1978 and comprises a number government officials as well as registered engineers.
84  Engineering activities are 
defined in the First Schedule to the Act. 
120. For engineers to be registered, certain qualifica tion requirements apply.  Engineers must have 
a degree in engineering from the University of West  Indies or from an institution that is approved 
equivalent.  All universities accredited under the W ashington Accord have been recognized by the 
Board.  In addition, engineers must have four year s experience.  As confirmed by the authorities, there 
are no restrictions or special criteria applicable to foreign engineers who wish to be registered and to 
practice in Barbados.  Foreign engineering compan ies are recommended, but not required to join the 
Barbados Association of Professional Engineers in or der that they may conform to a Code of Ethics 
while practicing. 
121. The Engineers (Registration) Act permits part nerships, associations, and corporations to 
practice engineering under their own name;  in such  cases, engineering work must be undertaken 
under the responsibility of a full time employee who is a registered engineer.  The authorities note that 
there are no engineering-related restrictions on a foreign engineering company establishing a 
commercial presence in Barbados othe r than registration by the Board. 
                                                      
84 The Engineers (Registration) Act, L.R.O. 1978, CA P. 368B of the Laws of Barbados.  Viewed at:  
http://www.caricomlaw.org/docs/E ngineers%20(Registration).pdf. Barbados WT/TPR/S/203/Rev.1
 Page 79 
 
 
(d) Legal services 
122. Barbados's GATS specific commitments restri ct market access for the provision of legal 
documentation and certification services to natural pe rsons.  Attorneys must be admitted to the local 
bar and registered as required under the Legal Profession Act.85 
123. The Barbados Bar Association (BBA) supports a nd protects the status and interests of the 
legal profession generally, and particularly attorneys-at-law practising in Barbados.86 
124. Foreign licensed professionals wishing to practi ce law in Barbados must be registered under 
the Legal Profession Act.87  An attorney who does not have a degree from the University of the 
West Indies, must undergo six months of training at either the Hugh Wooding Law School (Trinidad 
and Tobago);  the Norman Manley Law School (Jamai ca);  or the Eugene Dupuc he (Bahamas).  Only 
Barbados and CARICOM nationals may practice law in Barbados.88  Citizens of other countries may 
be permitted to practice on the basis of reciprocity , in which case the Minister (Attorney General), 
after consultation with the Chief Justice, may make an Order to allow a foreigner to practise to the 
extent that a Barbadian is allowed to practi ce in the courts of the foreigner's country.89  N o  
information was available on orders made.  Nor was there information on whether, in practice, there 
are restrictions on the commercial presence of law firms, and on the cross-border supply of legal 
services. 
125. Barbados is a contracting party to the CA RICOM Agreement Establishing the Council for 
Legal Education, implemented into domestic law by the Council for Legal Education Act, Cap. 366A.  
In signing onto the agreement, Barbados has undert aken to recognize that any person holding a legal 
education fulfils the training requirements for practice in its territory. 
(vii) Other offshore services 
126. As at end 2007, a total of 3,334 internationa l (offshore) companies were licensed to conduct 
business from Barbados.  New registrations of offs hore companies have increased every year since 
2002.  The number of International business compani es and societies with restricted liability licensed 
in 2007 indicates the highest number of registrations in any single year.  As noted by the authorities, 
these increased numbers can be partly attributed to increased interest in i nvestments into China from 
U.S. and Canadian investors  (see Table IV.4). 
127. Specific legislation applies to each of the va rious types of offshore company set out in 
Table IV.4.  International Business Companies are governed by the International Business Companies 
Act, Cap. 77.  Exempt (offshore) insurance co mpanies and offshore banks are governed by the 
Exempt Insurance Act 308A and the Internationa l Financial Services Act of 2002, respectively 
(see section (iii) above).  Societies with restri cted liability are governed by the Societies with 
restricted liability Act.90  All these acts were amended by the International Business (Miscellaneous 
                                                      
85 WTO document GATS/SC/9, 15 April 1994. 
86 Barbados Bar Association online information.  Vi ewed at:  http://www.barba dosbarassociation.com. 
87 Legal Profession Act, L.R.O. 1978, CAP.370A of the Laws of Barbados.  Viewed at:  
http://www.barbadosbarassociation.com/documents .cfm?SelectedCategory=1&ActionSearch=true. 
88 See amendments to the Legal Profession Act contained in the CARICOM Single Market and 
Economy (Implementation)(Miscellaneous Provisions) Act 2004-24. 
89 Legal Profession Act, Cap. 370A.  Viewed at:  http://www.barbadosbarassociation.com/documents. 
cfm?SelectedCategory=1&ActionSearch=true. 
90 Societies with Restricted Liability Act.  View ed at:  http://www.barbadosbusiness.gov.bb/miib/ 
Legislation/documents/srl_act_cap318b.pdf. WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 80 
 
 
Provisions) Act 2004-7.  The Foreign Sales Corporati on Act, Cap.59C is still in force, however, as 
noted by the authorities, while no new licences have been issued since 2001, some registrations have 
been renewed. 
Table IV.4 
Offshore companies registered in Barbados, 2002-07 
 Total number of International Business Entities 
(of which new international registrations/licenses) 
 2002 2003 2004 2005 2006 2007 
International business companies 1,994
(296) 1,726
(274) 2,137
(297) 2,323
(372) 2,714 
(391) 2,488
(506) 
Exempt insurance companies 187
(11) 184
(15) 183
(13) 194
(9) 202 
(8) 164
(9) 
Exempt insurance management 
companies 31
(3) 27
(1) 24
(1) 30
(3) 31 
(1) 24
(1) 
Societies with restricted liability 165
(40) 104
(31) 240
(64) 258
(42) 391 
(133) 417
(151) 
Offshore banks 56
(3) 53
(2) 55
(4) 55
(0) 59 
(4) 57
(5) 
Foreign sales corporationsa 829 400 182 170 91 54 
International Trusts (registered) 84 119 112 117 127 130 
 (84) (51) (14) (13) (10) (3) 
Total entities 3,346 2,613 2,933 3,147 3,615 3,334 
 a No new licences since 2001, the figures relate to renewed regi strations.  The authorities expect that the FSC regime will be 
 phased out over time.  
Source:  Information provided by The Ministry of Foreign Affairs, Foreign Trade and International Business. 
128. International business companies carrying on the business of international manufacturing or 
international trade and commerce from within Barb ados are governed by the International Business 
Companies Act, Cap. 77.  IBCs benefit from a num ber of tax benefits, including a lower rate of 
corporate income tax, of 2.5% to 1%, with lowe r rates applying to higher levels of profit;  tax 
concessions for employment of non-resident specia lly qualified individuals;  tax exemption for 
dividends and other payments, as  well as withholding tax;  and tax exemptions for the specified 
transfer of assets.  IBCs are not subject to exch ange controls.  Imports of  machinery and equipment 
are also exempt from certain taxes and duties.  In 2007 total revenue from offshore companies was 
BDS$492.4 (around US$246.2), of  this amount BDS$281.3 was from international business 
companies.  This represents a significant in crease since 2002 when total revenue from offshore 
companies was BDS$241.8 million (US$121 million). 
129. Barbados was a third party to the dispute between the United States (respondent) and the 
European Communities (complainant) on Tax Treatment for Foreign Sales Corporations 
(Dispute DS108).  The authorities note that revenue  derived from FSC licensing and renewal fees was 
BDS$3.6 million (US$1.8 million) at end 1997, and the regime had generate d economic benefits for 
private sector companies provi ding services to these entities. Barbados WT/TPR/S/203/Rev.1
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