Barbados WT/TPR/S/203/Rev.1
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II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(1) OVERVIEW  
1. Barbados considers that a generally open trade policy is vital to overcome the adverse effects 
of the small size of its economy, its restricted capacity to diversify risk, and limited institutional 
capacity.  Barbados is an original Member of th e WTO, within which it has advocated binding and 
enhancing special and differential treatment for developing countries and for the recognition of the 
special status and needs of small, vulnerable, de veloping economies.  Barbados made commitments in 
the extended GATS negotiations on telecommunications, and has ratified the Fourth Protocol, but did 
not participate in the extended negotiations on fina ncial services.  It has never been involved in 
multilateral dispute settlement procedures, either as a defendant or complainant.  Barbados has been 
the Caribbean representative in the WTO Aid for Trade Task Force. 
2. Barbados formulates and implements its trade polic y within the context of its participation in 
the Caribbean Community and Common Market (CARICOM).  CARICOM is in the process of consolidating a single market and economy.  Through its CARICOM membership, Barbados 
maintains preferential trade agreements with Co lombia, Costa Rica, Cuba, the Dominican Republic, 
and Venezuela.  Barbados's exports have also  benefited from preferential market access under non-
reciprocal preferential trade arrangements o ffered by a number of developed countries. 
3. Barbados' investment regime is  generally open to foreign investors;  CARICOM citizens and 
companies are guaranteed the same treatment as domest ic investors.  Barbados maintains in force 
eight bilateral investment treaties offering nationa l treatment to foreign investors.  However, 
investment in activities such as certain ground transp ort and food retail services is reserved for locally 
domiciled enterprises, as are tour operators services.   In addition, althou gh Barbados allows 100% 
foreign ownership, restrictions may be applied to  share transfers in the case of foreign investors. 
(2) G
ENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK  
4. Barbados is a constitutional mona rchy with a parliamentary system based on the Westminster 
model, and a member of the British Commonwealth of Nations.  The Head of State is the British 
monarch who is represented in Barbados by th e Governor General.  In accordance with the 
Constitution, executive authority may be exercised on behalf of the Monarch by the Governor General 
either directly or through officers subordinate to hi m.  This authority is in practice exercised by the 
Cabinet, which is the principal instrument of policy,  is charged with the general direction and control 
for the Government of Barbados, and must collectivel y respond to Parliament.  The Cabinet is headed 
by the Prime Minister, appointed by the Governor  General among elected Members of Parliament.  
Other Ministers are appointed from either House of  Parliament by the Governor-General as advised 
by the Prime Minister. 
5. Barbados has a bicameral Parliament.  The Senate has 21 members, all appointed by 
the Governor-General, 12 on the advice of the Prime Minister, two on the advice of the Leader of the 
Opposition, and seven at the Governor-General's discretion.1  The House of Assembly has 
30 members, all elected.  Both Houses debate all legislation, but the House of Assembly may ultimately override Senate's rejection of mone y bills and other bills except bills amending 
the Constitution.  In accordance with the Constitution, elections must be held every five years but may 
be called at any time by the Prime Minister.  At the end of a legislature, both Houses of Parliament are 
                                                     
 
1 Constitution of Barbados.  Viewed at:  http ://www.parliament.go.th/p arcy/sapa_db/cons_doc/ 
constitutions/data/Barbados/Barbados.htm. WT/TPR/S/203/Rev.1 Trade Policy Review 
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disolved by the Governor-General acting on the advice of the Prime Minister.  The last elections took 
place in January 2008. 
6. The Constitution is Barbados' supreme law.  Any law that is not consistent with 
the Constitution is void to the extent of its inc onsistency.  International agreements must be 
incorporated into domestic law to have effect a nd to be invoked before the courts.  WTO provisions 
may not, therefore, be invoked directly before natio nal courts, but only to the extent that they have 
been incorporated in domestic legislation. 
7. Most bills are prepared by the office of the Atto rney General at the request of a Ministry, and 
may be introduced in either the House or the Senate.  A bill commen ced in the Senate must be passed, 
at its third reading, with or without amendments , before moving onto the House, and vice versa.  
However, most bills usually begin in the House.  Bills become law only after receiving the assent of 
the Governor General. 
8. The judicial system is based on English common law.  Magistrates courts deal with civil and 
criminal cases.  The Supreme Court of Judicature consists of the High Cour t and Court of Appeal, 
each with four judges, and deals w ith the more serious criminal and civil cases and with issues related 
to interpretation of the Constitution.  The court of last  resort is the Caribbean Court of Justice (CCJ) in 
Port of Spain, Trinidad and Tobago, whose decisi ons are binding on all parties.  The CCJ started 
operating in 2005;  it is established by treaty among CARICOM states with an exclusive and original 
jurisdiction to deal with interpretation of the revised Treaty of Chaguaramas, and an appellate 
jurisdiction for dealing with domestic legal matters.  In the case of Barbados, the CCJ has replaced the 
Privy Council in London as the final Court of Appeal. 
(3) TRADE POLICY FORMULATION AND IMPLEMENTATION  
9. Barbados' trade policy has not undergone any major changes since its first Trade Policy 
Review in 2002.  The stated aims of Barbados' trade policy are:  (i) to  secure market access for 
Barbadian exports of goods and services;  (ii) to  encourage the growth and development of the 
country's productive sector;  (iii) to allow imports of goods and services in a way that would not 
undermine the quality of life or increase the cost of living;  and (iv) to support other government 
initiatives for economic growth and development and services.2  Barbados considers trade agreements 
as vehicles to obtain increased mark et access for its goods and services, at the multilateral, regional 
and bilateral levels.  To this e nd, it deems of utmost importance its participation in the WTO and the 
CARICOM, complementing this w ith bilateral trade agreements. 
10. The authorities indicate that Barbados sees the WTO as providing a multilateral rules-based 
framework for the conduct of all trade, including all trade agreements.  Barbados’ approach to 
regional trade arrangements, including the CARI COM Single Market and Economy (CSME) requires 
that all such arrangements be WTO-compatible, as  this provides a platform for Barbados’ fuller 
integration into the global trading system. 
11. In international fora, including the WTO, Barb ados has actively highlighted the particular 
vulnerability of small economies to price and supply fluctuations, highe r fixed costs of production and 
marketing, and susceptibility to natural disasters.  In  particular, in trade ne gotiations, Barbados has 
stressed its small size, limited natural resources,  and heavy reliance on a wide range of imported 
goods. 
                                                      
2 Ministry of Foreign Affairs and Foreign Trade (2006). Barbados WT/TPR/S/203/Rev.1
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12. A number of agencies participate in the formulation and implementation of trade policy in 
Barbados;  there have not been any significant ch anges in their responsibilities in recent years.  
The Ministry of Foreign Affairs, Foreign Trade a nd International Business advises the Government on 
all trade policy matters and has responsibility for ne gotiating trade agreements  and coordinating their 
implementation;  it represents Barbados in the WT O.  In particular, the Ministry's Foreign Trade 
Division formulates and oversees Barbados' foreign tr ade policy.  The Division develops foreign trade 
policy in consultation with other Ministries, the private sector, and trade unions. 
13. The Government continues to consult extensively with the private sector and other social and 
economic partners for the formulation of trade polic y.  The authorities note that consultations take 
place as the need arises.  Some of  the main private bodies that par ticipate in the process include the 
Barbados Manufacturers' Association, the Barb ados Chamber of Commerce and Industry, the 
Barbados Private Sector Agency, the Congress of Tr ade Unions and Staff Associations of Barbados, 
the Barbados Hotel and Tourism Association, the Ba rbados Agricultural Society, the Barbados Private 
Sector Trade Team (BPSTT), and the Barbados  International Insurance Association.   
(4) FOREIGN INVESTMENT REGIME  
14. There is no specific legislation in Barba dos with respect to foreign investment.  
The responsibility for foreign investment policy in Barbados is shared between the Ministry of 
Foreign Affairs, Foreign Trade and International Bu siness.  The Barbados Government created Invest 
Barbados in 2007 to assist the country to become  more responsive in a competitive international 
environment.  Invest Barbados is now respons ible for attracting and sustaining international 
investment for Barbados;  developing the export potential of the indigenous services sector;  and 
helping to develop and ma nage the Barbados Brand.3  Prior to the creation of Invest Barbados, the 
Barbados Investment Development Corporation (BID C) was responsible for handling all investment 
issues.  The Barbados Tourism Investment Incorporat ed (BTI) also participates in policy formulation.  
The BIDC and Invest Barbados also provide a dvisory services and other assistance to companies 
looking to establish businesses in Barbados.   
15. The Government's general policy with respect to  attracting foreign investment is to offer a 
favourable environment and incentives schemes;  in general, foreign investors receive the same 
treatment as domestic investors.  Barbados' legisla tion does not contain specific references to foreign 
investment restrictions, nor does it explicitly guarantee market access or national treatment to foreign investors, except for CARICOM nationals and companies.  The authorities have noted that MFN and 
national treatment are specified in the different bila teral investment treaties signed by Barbados (see 
below). 
16. Some general restrictions to foreign investment are in place.  For example, tour operators and 
travel agents must be Barbadian owned as part of  Government policy to reserve some services for 
locals;  as part of the CARICOM Single Mark et and Economy (CSME) the concept of Barbadian 
ownership is now expanded to include CARICO M nationals.  Although foreign investment is 
generally not subject to restrictions, according to one report, investment in activities such as certain 
ground transport and food retail services is reserved for locally domiciled firms, as are services from tour operators.
4  Supply of water and of postal services are Government monopolies.  Also, although 
Barbados allows 100% foreign owners hip, restrictions may be applied to share transfer s in the case of 
foreign investors.  Private investment in broadcas ting, banking, international business, and insurance 
is subject to prior government approval in the form of licences. 
                                                      
3 Invest Barbados online information.  Vi ewed at:  http://www.investbarbados.org/. 
4 U.S. Department of Commerce, U.S. & Foreign Commercial Service (2006). WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 14 
 
 
17. According to Barbadian law, no property of any description may be compulsorily taken 
possession of, and no interest in or right over prop erty of any description may be compulsorily 
acquired, except by or under the authority of a written law, and where provision applying to that 
acquisition or taking of possession is made by a wr itten law.  The Land Acquisition Act, Cap. 228 
provided for land to be compulsorily acquired for a public purpose, and pr ovides the rules for the 
determination of compensation. 
18. Transfers of investment and remittances of capital are regulated by the Central Bank under 
the Exchange Control Act;  exchange control perm ission is required before a non-resident may hold 
shares in a company incorporated in Barbados, ex cept in the case of offshore companies.  The 
exchange control regime will be further liberali zed gradually (Chapter I(2)(iii)).  Foreign or non-
resident investors must register with the Centra l Bank funds brought into Barbados in order to 
facilitate repatriation of these funds.  Foreign curre ncy funds may generally be freely repatriated for 
current transactions.  However, if substantial cap ital gains have been realized, repatriation must 
generally be phased over a period determined by the Central Bank, which can be up to five years.  
Exemption from exchange control restrictions is provided for offshore business.  Acquisition of real 
estate by foreigners requires permission from the Central Bank. 
19. Investors (including foreign) may benefit from a number of incentives administered by the 
Ministry of Finance, Economic Affairs and Energy a nd the Ministry of Tourism, in coordination with 
Invest Barbados (the BIDC, prior to 2008) (Chapter III(4)(ii)).5 
20. Barbados has double taxation avoidance agr eements with other CARICOM countries by 
virtue of the Revised Treaty of Chaguaramas.  It  has agreements for the avoidance of double income 
tax taxation with the United Kingdom (subscribed  in 1970), Canada (1980), United States (1984, 
second Protocol signed in 2004), Finland (19 89), Norway (1990 and 2004), Sweden (1991), 
Venezuela (1998), China (1999), Cuba (1999), Ma lta (2001), Mauritius (2004), Botswana (2005), 
the Netherlands (2005), Austria (2007), Ghana (2008), and Mexico (2008)6.  A tax agreement with 
Switzerland, which pre-dates independence (1954), is an extension of a U.K. agreement.  The main 
differences among the treaties relate to the rates of withholding tax on dividends, royalties, and 
interest. 
21. Bilateral investment promotion and protection treaties (BITs) are in place with 
the United Kingdom (1993), Germany (1994), Ven ezuela (1994), Italy (1995), Switzerland (1995), 
Canada (1996), Cuba (1996), China (1 998), Mauritius (2005), and Ghana (2008).7 
22. The Barbados Arbitration Act (1976) and the Foreign Arbitral Awards Act (1980) contain 
provisions for arbitration of investment disputes.   Foreign national investors receive the same 
protection as local investors and, in case of dispute related to an investment, they can resort to the 
same procedures as national investors.  Barbados is  a member of the International Center for the 
Settlement of Investment Disputes (ICSID), and of most of the conventions and model laws 
emanating from the work of the United Na tions Commission on International Trade Law.8  Barbados 
is also a member of the Multilate ral Investment Guarantee Agency. 
                                                      
5 Ministry of Finance, Economic Affairs and Energy online information.  Viewed at:  
http://www.bidc.com/barbados_link.cfm?WebLink=27. 
6 Ministry of Finance, Economic Affairs and Energy online information.  Viewed at:  
http://www.bidc.com/barbados_link.cfm?WebLink=27. 
7 Ministry of Finance, Economic Affairs and Energy online information.  Viewed at:  
http://www.bidc.com/barbados_link.cfm?WebLink=27. 
8 UNCITRAL online information.  Viewed at:  http://www.un.or.at/uncitral. Barbados WT/TPR/S/203/Rev.1
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(5) INTERNATIONAL RELATIONS  
(i) Participation in the WTO 
23. Barbados became a GATT contrac ting party in 1967 and is an original Member of the WTO.9  
Barbados grants at least MFN treatment to all its  trading partners.  It made specific commitments 
under the General Agreement on Trade in Services ( GATS) in 4 of the 12 sectors, and 21 of the 160 
subsectors of the services classification list (Chapter IV(4)).10  In 1997, Barbados undertook specific 
commitments in the negotiations on basic telecommuni cations and ratified the Fourth Protocol to the 
GATS.11  However, it did not submit an offer in the financial services negotiations concluded in 1998.  
Barbados is not a party or observer in an y WTO plurilateral agreements, or the ITA. 
24. Barbados has submitted an initia l conditional services offer within the context of the Doha 
Development Agenda (DDA) negotiations.12  However, as at May 2008, it had not submitted a revised 
offer.13 
25. Barbados has never invoked the dispute settlement provisions of the GATT or WTO, nor have 
any complaints been brought against it in these fo ra.  However, Barbados reserved its rights to 
participate as third party in four cases:  a di spute relating to U.S. provisions on foreign sales 
corporations;  and three cases relating to EC export subsidies on sugar.14 
26. Barbados supported a request by a number of developing members of the WTO for an 
extension period for providing export subsidies until 2018.15  Barbados regards these subsidies as 
important to help it integrate more fully into th e multilateral system, given what it sees as weaknesses 
associated with its status as a "small and vulnerable economy". 
27. Barbados has also been active in the WTO in  the context of the DDA negotiations.  At the 
Sixth Ministerial Conference in Hong Kong, China,  in December 2005, Barba dos reaffirmed its full 
commitment to trade liberalization and its support of fair international trade rules.16  Barbados also 
strongly advanced the argument that special and di fferential (S&D) is integral to the negotiating 
process.  In the DDA, Barbados has submitted  joint proposals covering the main areas under 
negotiation.17  In those submissions, among other things, Ba rbados has stated that the characteristics 
of small vulnerable economies required special recognition, and should be addressed within 
international trade rules.  Barbados also made st atements on behalf of a num ber of other delegations, 
particularly calling for the negotiating bodi es to address the specific needs of SVEs.18 
28. Since its last Review, Barbados has submitted numerous notifications to the WTO but some 
are yet to be made (Table AII.1):  the last no tification under the Agreement on Agriculture was made 
                                                      
9 WT/LET/1/Rev.2, 22 May 1995. 
10 Contained in WTO document MTN.GNS/W/120, 10 July 1991. 
11 WTO document GATS/SC/9/Suppl.1, 24 February 1998. 
12 WTO online information.  Viewed at:  http://www.wto.org/english/tratop_e/serv_e/s_negs_e.htm. 
13 For further information see WTO online informa tion:  http://www.wto.org /english/tratop_e/serv_ 
e/s_negs_e.htm. 
14 For more information on these cases see WTO online information at:  http://www.wto.org/english/ 
thewto_e/countries_e/barbados_e.htm, or in WTO documents series DS108, DS265, DS266, and DS283. 
15 WTO document G/SCM/W/535, 12 April 2006. 
16 WTO document WT/MIN(05)/ST/29, 14 December 2005. 
17 WTO documents TN/S/W/7, 28 October 2002;  TN/MA/W/66, 11 November 2005;  
TN/AG/GEN/11, 11 November 2005;  TN/TF/W/129, 7 July 2006;  TN/TF/W/129/Rev.1, 21 July 2006;  
TN/RL/W/210, 6 June 2007;  TN/RL/W/210/Rev.1, 18 June 2007;  and TN/RL/W/210/Rev.2, 22 June 2007. 
18 WTO document TN/C/W/36, 2 December 2005. WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 16 
 
 
in March 2004, and just one SPS measure had been  notified.  In the area of TBTs, a number of 
notifications were made between 2002 and 2005 but no new notifications have been made since early 
2006.  While recognizing that there had been a gene ral falloff in the notifications to the WTO, the 
authorities noted that this was not a reflection of th eir lack of commitment to the process, but was due 
to capacity constraints within Ministries as well as a heavy negotiating schedule over the last seven 
years, including the FTAA and EPA negotiations and work to implement the CSME. 
(ii) Participation in regional and bilateral agreements 
(a) CARICOM 
29. Barbados is a founding member of the Caribbean Community and Common Market 
(CARICOM) Treaty signed in 1973 (Treaty of Ch aguaramas).  CARICOM comprises 15 member 
states.19  Barbados is one of the five "more deve loped countries" (MDCs) of CARICOM, with 
Guyana, Jamaica, Suriname, and Trinidad a nd Tobago.  In 1989 the CARICOM Heads of 
Government decided to revise the treaty of Cha guaramas to create the CARICOM Single Market and 
Economy (CSME), within which there would be fr ee movement of goods, services, capital, and 
CARICOM nationals.  The CSME project was launc hed on 1 January 1991, and a phased programme 
to revise the Common External Tariff (CET) approved (Chapter III(2)(iv)).20  The revision of the 
Treaty of Chaguaramas was completed in 2000, and Barbados has enacted domes tic legislation giving 
effect to the CSME;  the Single Market became ope rational in 2006.  The Single Economy is expected 
to be fully implemented by 2015. 
30. The Conference of Heads of Government is  the highest decision-making body and final 
authority of CARICOM.  A number of ministerial councils deal with policy in different areas.  
The Council for Trade and Economic Development (COTED), representing membership of trade and development ministers from all member states, is r esponsible for the promotion of trade and economic 
development in CARICOM, and is among the or ganization's most influential institutions.  
The Council for Foreign and Community Relations (C OFCOR) is responsible for relations between 
CARICOM, international organi zations, and third countries, while the Council for Finance and 
Planning (COFAP) is responsible for monetary policy coordination.  Since 1997, CARICOM has 
worked through the Caribbean Re gional Negotiating Machinery (CRNM) to coordinate information 
and strategy in external trade negotiations, including in the WTO. 
31. During the period under review, a number a deve lopments in trade and trade policy in 
Barbados have been driven by its CARICOM me mbership.  In April 2005, CARICOM governments 
inaugurated the Caribbean Court of Justice (CCJ) in Trinidad and Tobago, a sui generis  court with an 
original and exclusive jurisdiction for interpreting pr ovisions of the Revised Treaty of CARICOM, as 
well as an appellate jurisdiction for municipal appeals from CARICOM states that choose to substitute the jurisdiction of the London-based Privy Council with that of the CCJ.  In its original 
jurisdiction, all Member States are obligated by Treat y to recognize and give effect to the jurisdiction 
of the Court.
21  Barbados adopted the CCJ as its court of last appeal on 8 April 2005 (Statutory 
                                                      
19 The founding members were:  Barbados, Guyana, Jamaica, and Trinidad and Tobago.  Bahamas, 
Belize, Dominica, Grenada, Montserrat,  St. Lucia, and St. Vincent and th e Grenadines acceded in May 1974;  
Antigua and Barbuda and St. Kitts and Nevis in July 1974;  Suriname in July 1995, and Haiti ratified the Treaty 
in 2004. 
20 For information on the development of the CSME see CARICOM online information.  Viewed at:  
http://www.caricom.org. 
21 For the status of accession to the Court see CARICOM online information.  Viewed at:  
http://www.caricom.org/jsp/single_marke t/csme_summary_key_elements_may_07.pdf. Barbados WT/TPR/S/203/Rev.1
 Page 17 
 
 
Instrument 2005 No. 44).  CCJ rules have been developed and the first session took place in 
August 2005.22 
32. CARICOM has also deepened trade-related cooperation at a technical level with the 
establishment of the CARICOM Regional Organiza tion for Standards and Quality (CROSQ).  
Barbados has enacted the agreement establishi ng CROSQ into domestic law.  CARICOM members 
also decided in 2004 to establish a Community Competition Commission (Chapter III(4)(iii)). 
(iii) Other preferential agreements 
33. Through its membership of CARICOM, Barbados has signed preferential free-trade 
agreements with Colombia, Cuba, the Dominica n Republic, Costa Rica, and Venezuela;  the 
agreement with Costa Rica was signed during the revi ew period.  None of these agreements had, as at 
January 2008, been notified to the WTO.  Merc handise trade between Barbados and these CARICOM 
FTA partners accounts for less than 2% of total Barbadian trade. 
34. The CARICOM-Venezuela Trade and Investment Agreement, which entered into force on 
1 January 1993, is a one-way preferential agreem ent granting most CARICOM exports to Venezuela 
preferential or duty-free access.  Tariffs have b een eliminated on 22% of products, while 67% of 
products enjoy tariff reductions.23 
35. The CARICOM/Colombia Agreement on Trade,  Economic and Technical Cooperation was 
signed on 24 July 1994 and entered into force on 1 Ja nuary 1995;  it provides for trade liberalization 
and facilitation (including the exchange of pr eferences), as well as promotion and protection of 
investment.  The agreement was revised in mid 1999  to become reciprocal in relation to the four 
CARICOM MDCs.  The agreement phased tariff reduc tions on a list of selected products:  Annex II 
of the agreement contains a list of products on which tariffs were eliminated in mid 1999, and 
Annex III a list for possible phased reduction of duti es, which are already in effect.  The agreement 
also provides for the phasing out of any non-tariff ba rriers.  It contains its own dispute settlement 
provisions;  disputes regarding subsidies and anti-dumping are to be taken to the WTO. 
36. CARICOM signed an FTA with the Dominican Republic (DR) in 1998, which provides for 
the mutual granting of tariff concessi ons between CARICOM MDCs and the DR.24  The agreement 
entered into force for Barbados on 1 December 2001.  In the case of Barbados, as an MDC, the 
agreement calls for provision of duty-free access for all goods originating in the DR other than those 
set out in appendices II and III to the agreement;  the phased reduction of the rate of duty on goods in Appendix II;  and no duty re duction on goods in Appendix III.
25  The phased duty reduction for goods 
in Appendix II was scheduled to start in 2000 and be  completed by 1 January 2004 in the DR and in 
the MDCs;  however, the schedule was subsequently reviewed.26  As at May 2008, Barbados had 
already completed all the necessary phased reductions as required by the Agreement.  In addition to 
                                                      
22 The CCJ rules were viewed at:  http://www.car ibbean courtofjustice.org/rules/FINAL%20ORIG% 
20INAL%20RULES%20AS%20SIGNED%20MARCH%2024%20O6.pdf. 
23 Details of CARICOM bilateral agreements may be  viewed at:  http://www.crnm.org/bilateral.htm. 
24 CRNM online information.  Viewed at:  http ://www.crnm.org/bilateral. htm#CARICOM-Dominican 
%20Republic. 
25 Goods in appendix II include:  coffee, sausages, ba con, pasta, biscuits, jams and marmalades, soups 
and broths, rum, perfumes, boxes, plastic sacks and bags, plastic tableware, crates and boxes of paper or 
paperboard, footwear with rubber soles, and mattresses.  Goods in Appendix III of the agreement are mostly 
agricultural products. 
26 CRNM (2006). WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 18 
 
 
trade in goods, the agreement deals with services, investment, and government procurement.27  I n  
August 2005, negotiating groups on IPRs and services we re established:  negotiations are expected be 
concluded one year after the signature of th e CARIFORUM-EC Economic Partnership Agreement 
(see section (iv) below). 
37. A trade and economic agreement between CARI COM and Cuba was signed in July 2000, 
providing for duty-free treatment on specified goods ag reed by both sides.  The agreement outlines 
specific treatment for a seasonal list of agricultural products.  It also provides for the elimination of 
tariffs on a list of products, through four annual reductions.28  The agreement also deals with taxation, 
trade promotion and facilitation, services, tourism, i nvestment, intellectual prop erty rights, and other 
topics.  A Protocol for the Provisional Applicati on of the Agreement was signed by Barbados and 
other CARICOM members in December 2002.  The CARICOM/Cuba Trade and Economic Cooperation Agreement was incorporated into dom estic law in Barbados in April 2006 and has 
entered into force. 
38. The CARICOM-Costa Rica Free Trade Agreement was signed on 9 March 2004.
29  
The agreement, reciprocal in so far as CARICO M MDCs are concerned, provides for free trade or 
preferential access for a wide range of products, excl usive of sensitive products.  As a consequence of 
the agreement, some 90% of imports from Co sta Rica enter duty free (April 2006), some 4% are 
subject to a four-year phased reduction and 3.9% of lines are excluded from any reduction;  it entered 
into force in Barbados on 1 August 2006. 
39. The CARICOM-Costa Rica Free Trade Agreement contains a list of CARICOM-wide 
excluded products for which no c oncessions will be made;  these include a range of agricultural 
products, and a few manufactured goods.  CARICO M products covered by the Oils and Fats 
Agreement are exempt from the FTA's scope.  Some pr oducts exclusions are country-specific.  In the 
case of Barbados, this includes some meats, ham,  aerated beverages, cigars, and biscuits.  For 
Barbados, the products subject to phased reduction incl ude:  fish, cut flowers, wheat, pasta, ice cream, 
beauty preparations, bleach, insecticides, organi c solvents, some types of footwear, lead-acid 
accumulators, stoves, and mattresses and supports.30  A list of agricultural products is also subject to 
seasonal duties, being duty free the rest of the year .  The agreement contains anti-dumping, SPS, and 
dispute settlement provisions.31 
(iv) Unilateral preference programmes 
40. Barbados is a beneficiary of the Generalized System of Preferences (GSP) of:  Australia, 
Canada, the European Union, Japan, New Zealand, Norway, Russia, and Switzerland.  Barbados was 
removed from the U.S. GSP list of beneficiaries in  2006, as its per capita income was considered too 
high.  Barbados does not take part in the Global System of Trade Preferences. 
                                                      
27 CARICOM online information.  Viewed at:  h ttp://www.caricom.org/archives/agreement-caricom-
domrep-protocol.htm. 
28 The Briefing Room online information.  Viewed at:  http://www.thebriefingroom.net/tb20.html. 
29 CARICOM Press Release 32/2004, 10 March 2004, "CARICOM and Costa Rica Sign Free Trade 
Agreement".  Viewed at:  http://www.car icom.org/pressreleases/pres32_04.htm. 
30 The complete list is contained in ANNEX III.04.2 to the Agreement.  Viewed at:  
http://www.sice.oas.or g/trade/crcrcom_e/te xtagreement.pdf. 
31 OAS online information.  Viewed at:  http ://www.sice.oas.org/TPD/CAR_CRI/Negotiations/CRI_ 
BRB_s.pdf. Barbados WT/TPR/S/203/Rev.1
 Page 19 
 
 
41. Barbados enjoys preferential access to the U. S. market under the Caribbean Basin Initiative 
(CBI);  this was revised in 1990 and became a permanent part of U.S. law.32  The United States 
upgraded the CBI through the Caribbean Basin Tr ade Partnership Act (CBTPA) of 2000, which 
provided additional preferential access;  CBTPA benefits are available until September 2008.  
The CBTPA provides NAFTA-equivalent tariff treatment  for certain items previously excluded from 
duty-free treatment under the CBI programme (foot wear, canned tuna, petr oleum products, watches 
and watch parts).33  To benefit at least 35% of  the product's value must have originated in Barbados or 
another CBTPA beneficiary;  or this percentage can  be reduced to at least 20%, if not less than 15% 
of the product originated in the United States or Puerto Rico.  Barbados has enjoyed CBI benefits 
since June 2001.34  According to the authorities, some 98% of Barbados' exports to the United States 
take place under the CBI.  The possibility of an FTA between CARICOM and the United States has been explored.
35 
42. Barbados' exports enjoy preferential access to th e EC market under the African, Caribbean, 
and Pacific European Union Partnership Agreemen t (Cotonou Agreement), signed in June 2000 and 
with a duration of 20 years.  The Cotonou Agreemen t is based on five pillars:  an enhanced political 
dimension;  increased participation;  a strate gic approach to cooperation, focusing on poverty 
reduction;  economic and trade partnerships;  and improved financial c ooperation.  Under the 
agreement, ACP countries (except for South Africa) , benefited, during an interim period (2001-07), 
from non-reciprocal trade preferences on industrial, ce rtain agricultural, and fishery products, subject 
to a safeguard clause.  For certain products (ban anas, beef and veal, and sugar), the EC provided 
special market access under "commodity protocols.36 
43. The Cotonou Agreement called for negotiations for economic partnershi p agreements (EPAs) 
aimed at establishing the timetable for the substan tial liberalization of trade between the parties, 
compatible with WTO rules.37  To this end, the CARIFORUM-EC negotiations for an EPA were 
officially launched in Kingston in April 2004.38  The negotiations concluded in December 2007 when 
the EPA Agreement was initialled in Barbados on 16 December 2007.  The Agre ement is expected to 
be signed at the Ministerial level in July 2008.  As at early 2008, the  CARIFORUM/EC Economic 
Partnership Agreement  was expected to be signed at the Ministerial Level in Barbados in July 2008 
and to receive provisional application from 1 April 2008.   The EPA is of indefinite duration, and will 
enter fully into force when a suffi cient number of parties have ratified it.  The EPA is legally binding 
and has its own institutional structure of governance.39 
44. The EPA requires CARIFORUM to eliminate duti es on 82.7% of its imports from the EC in 
the first 15 years of the agreement, and 86.9% afte r 25 years.  CARIFORUM countries have a ten year 
moratorium on certain sensitive products before ta riff reductions.  A general moratorium of three 
years is in place for other products subject to duty el imination.  Other duties and charges may also be 
kept during the first three years and then phased out in the following seven years.  A standstill clause 
applies for tariffs and other duties and charges.  CARICOM states will also grant the DR the same 
                                                      
32 WTO document G/L/25, 15 September 1995. 
33 USTR online information.  Viewed at:  h ttp://www.ustr.gov/regions/whemisphere/camerica/ 
actsheet.html. 
34 For further information on the CBI , see WTO (2008), Chapter II(4)(iii). 
35 Caribbean Regional Negotiating Machinery online information.  Viewed at:  http://www.crnm.org/ 
acp.htm. 
36 WTO (2007). 
37 Cotonou Agreement, Chapter II.  Viewed a t:  http://europa.eu.int/comm/development/body/ 
cotonou/agrement/agr18_en.htm. 
38 The CARIFORUM comprises CARICOM countr ies and the Dominican Republic (DR). 
39 Girvan (2008). WT/TPR/S/203/Rev.1 Trade Policy Review 
Page 20 
 
 
treatment they give the EC, and vice versa.  CARI FORUM MDCs, such as Barbados, are expected to 
liberalize access to EC firms and service providers in some 75% of their service sectors.  The EPA 
guarantees CARIFORUM countries permanent duty-free,  quota-free access to the EC market for its 
exports, with special transition periods for sugar and rice.  CARIFORUM suga r exporters will benefit 
from an expanded annual quota of 60,000 tons in 2008 and 2009;  and an export quota for rice of 
187,000 tonnes and 250,0 00 tonnes in 2008 and 2009, respec tively, before quota-free access for 
milled rice to the EC market takes effect on 1 Ja nuary 2010.  The EPA also  contains provisions on a 
number of other areas, including intellectual prope rty protection, safeguards and other contingency 
measures, TBTs, services, competition policy, di spute settlement, government procurement and 
investment. 
45. Under the Canada Caribbean Technical Coopera tion Agreement (CARIBCAN), in force since 
1986, Canada grants exports fro m Barbados and other CARICOM countries duty-free treatment on 
eligible products (most products except textiles, cl othing, footwear, luggage and other leather goods, 
lubricating oils, and methanol).  CARICOM has also been exploring the possibility of concluding an 
FTA with Canada since January 2001.40  Following a visit by the Cana dian Prime Minister in July 
2007, negotiations for a new trade and economic coope ration agreement with Canada were expected 
to be undertaken in the near future. 
(v) Technical assistance and Aid for Trade 
46. Barbados has benefited from technical assist ance from various sources during the period 
under review, including the Caribbean Regional Te chnical Assistance Centre (CARTAC), Canadian 
International Development Agency, Caribbean Development Bank, Commonwealth Secretariat, 
European Commission, Organization of American States, Pan American Health Organization, United Nations Development Programme, United Na tions Environment Programme, United Nations 
Food and Agriculture Organization, United Nations  Population Fund, United Nations Volunteers 
Programme, United States Agency for Internatio nal Development, Inter American Development 
Bank, World Bank, World Intellectual Property Organi zation, and the WTO.  Barbados has also been 
the beneficiary of technical assistance funds or programmes from a number of governments. 
47. WTO technical assistance has focused on increasing government officials' understanding of 
WTO-related issues.  Between 1 January 2002 and 1 March 2008, Barbados participated in 
47 technical assistance activities, including mostly regional seminars and workshops and Geneva-
based trade policy courses, as well as five nationa l training activities.  These have covered a broad 
range of WTO subjects, including trade facilitati on, technical barriers to trade, sanitary and 
phytosanitary measures, intellectual property, servi ces, dispute settlement, market access.  Barbados 
hosted some 16 regional activities between 2002 and early 2008. 
48. Barbados participated in the WTO Task For ce on Aid For Trade (AFT), acting as the leading 
country for the Caribbean region.  The AFT subm itted its report and recommendations in July 2006.
41 
                                                      
40 Caribbean Regional Negotiating Machinery online information.  Viewed at:  http://www.crnm.org/ 
bilateral.htm. 
41 WTO document WT/AFT/1, 27 July 2006. Barbados WT/TPR/S/203/Rev.1
 Page 21 
 
 
49. Based on OECD data, aid for trade contributions  to Barbados during the period under review 
have been relatively small, reflecting in part its st atus of middle-income country.  Inflows in the form 
of grants increased steadily over 2002-0642;  they totalled US$29.62 million.  Some US$12.5 million 
of aid for trade came from multilateral donors, the rest came from bilateral donors in particular the 
G-7 countries, which contributed some US$16.4 million over the period.  Inflows in the form of loans 
totalled US$52.87 m illion over 2002-06. 
                                                      
42 Inflows were US$4.11 million in 2002, US$4.06 million in 2003, US$5.63 million in 2004, 
US$7.54 million in 2005, and US$8.28 million in 2006.  OECD Creditor Reporting System.  Viewed at:  http://stats.oecd.org/ WBOS/Def ault.aspx?Datset Code=CRSNEW.