RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/203 
13 August 2008  
 
(08-3777) 
Trade Policy Review Body Original:  English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
BARBADOS 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Barbados is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
 session of the meeting of the Trade Policy Review Body on Barbados. Barbados WT/TPR/G/203 
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CONTENTS 
  Page 
I. INTRODUCTION 5 
II. MAJOR CHALLENGES 5 III. MACROECONOMIC  INDICATORS 6 
 (1) G
ROSS DOMESTIC PRODUCT (GDP) 6 
 (2) F ISCAL POLICY  6 
 (3) N ATIONAL DEBT 6 
 (4) I NFLATION  6 
 (5) M ONETARY POLICY  6 
 (6) I NTERNATIONAL RESERVES  7 
 (7) T RADE PERFORMANCE  7 
IV. MAJOR SECTORS 7 
 (1) A GRICULTURE  7 
 (2) M ANUFACTURING  8 
 (3) S ERVICES  8 
  (i) Tourism 8 
  (ii) International business 9 
V. TRADE AND TRADE RELATED POLICIES 9 
VI. TRADE RELATIONSHIPS 9 
 (1) CARICOM  SINGLE MARKET AND ECONOMY  9 
 (2) CARICOM-B ILATERALS  10 
 (3) P REFERENTIAL TRADE ARRANGEMENTS  10 
 (4) E CONOMIC PARTNERSHIP AGREEMENT  10 
VII. MULTILATERAL TRADE RELATIONS 10 
 (1) S MALL VULNERABLE ECONOMIES WORK PROGRAMME  11 
 (2) A GRICULTURAL NEGOTIATIONS  11 
 (3) N ON-AGRICULTURE MARKET ACCESS (NAMA)  NEGOTIATIONS  11 
 (4) S ERVICES NEGOTIATIONS  12 
 (5) A ID FOR TRADE  12 
VIII. THE WAY FORWARD 13 
IX. CONCLUSION  13 
  
  
 Barbados WT/TPR/G/203
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 I. INTRODUCTION 
1. Since its last trade policy review in 2002, Ba rbados has continued to pursue its development 
goals within the context of a liberalized economy w ith transparent trade policies.  Its economic and 
social development continues to be grounded in  a number of factors which have contributed 
significantly to the quality of life enjoyed by its  approximately 274,000 citizens.  These factors 
include a stable government, democratic freedoms, the advancement of human rights, an independent 
and fair judicial system, a well educated and trai nable labour force, and s ound economic management.  
2. As a small developing economy, Barbados remain s very much aware that its size and lack of 
natural resources can be a constraint to sustainable gr owth and development.  It is also aware that the 
nature and direction of its trade policy regime are critically important in determining the performance 
of its economy.  It is for this reason, that the Government has been pursuing an outward looking trade 
policy at both the regional and international levels. 
3. With the establishment of th e CARICOM Single Market in 2006, Barbados and other 
countries of CARICOM have moved closer to th e creation of the CARICOM Single Market and 
Economy (CSME).  In order to ensure that the Region is prepared for trade liberalization at the global 
level, CARICOM has concluded a number of trade ag reements with third countries.  Barbados has 
codified these agreements in its domestic legislat ion.  In addition, the Government is actively 
considering the signing of an Economic Partnership Agreement between CARIFORUM1 countries of 
which it is a member, and the European Union. 
4. At the multilateral level, Barbados remains committed to discharging its obligations as a 
member of the World Trade Organization (WTO), and is fully participating in  the Doha Development 
Round.  
5. This report will describe the major challenges facing Barbados, and the performance of its 
key economic indicators.  It will also discuss its major sectors, its trade policies and its trade relationships with other countries.  The report will also highlight Barbados’ participation in the WTO 
and speak to the way forward. 
II. MAJOR CHALLENGES 
6. The last six years have been a challenging peri od for Barbados due to a number of global 
developments.  World security has been threatened  by a number of conflicts throughout the globe; 
major international natural disasters such as hurrican es, earthquakes and tsunamis have also occurred; 
and new and re-emerging diseases such as Severe Acute Respiratory Syndrome (SARS), Bird Flu, 
Pandemic Flu and tuberculosis have impacted on world health.  These factors have threatened 
Barbados’ tourism industry - its la rgest foreign exchange earner.  
7. In addition, after a period of no increases in the guaranteed price for sugar exported to the EU 
market, Barbados experienced in 2006 a reduction in that price.  Sugar is Barbados’ single largest 
agricultural export and has contributed significantly to Barbados’ foreign exchange earnings.  As of 
2009, this product will no longer be nefit from a guaranteed price and market. Sugar will be exported 
duty-free and quota free to Europe. 
8. The persistent increases in the world market pri ce of oil have added to the economic burdens 
of Barbados. These higher prices have also affect ed the price of basic food commodities in the 
                                                     
 
1 CARIFORUM countries are CARICOM countries plus the Dominican Republic.  WT/TPR/G/203 Trade Policy Review 
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 country by way of increased shipping cost and higher manufacturing and distribution costs. Recent 
projections of a world recession could further undermine economic growth in Barbados as well. 
9. As a small vulnerable open economy, Barbados re mains at serious risk from the impact of 
these varied factors which are beyond its control.  The Government is cognizant of the fact that such 
challenges can reverse the economic gains which the country has achieved to date. 
III. MACROECONOMIC INDICATORS 
(1) GROSS DOMESTIC PRODUCT (GDP) 
10. Barbados’ economic landscape has undergone some  significant changes since the country’s 
last Trade Policy Review. On average the economy grew by a real value of 3.3% annually. This 
growth was uneven as was reflected in 0.7% in 2002, 4.1% in 2005, and 4.3% in 2007. Most of this 
growth, however, has been in the non-tradeable sector s, especially in construction. In terms of the 
tradeable sectors the contribution to GDP in 2002 for sugar, non-sugar agriculture, manufacturing and 
tourism was 17.3%.  In 2007 it was 18.5%. 
(2) FISCAL POLICY  
11. During the period since the last review, Government continued to adopt a fiscal policy geared 
towards promoting growth in the economy, especially  to counteract the slowdown in global growth 
during 2001/2002.  Government expenditure during th is period was aimed at counteracting the slow 
down in global growth in 2001/2002, and more spec ifically at promoting economic activity in the 
tourism sector through a number of projects.  A major project was the redevelopment of the Grantley Adams International Airport.  This led to a signi ficant increase in the fiscal deficit from 2.5% in 
2000/2001 to 5.4% in 2002/2003. 
12. Barbados sought to reduce the fiscal defi cit after the 2001/2002 recession and was quite 
successful in doing so.  In 2003, the deficit fell to 3% of GDP.  In 2007 the deficit stood at 
approximately 3.8% of GDP. 
(3) N
ATIONAL DEBT 
13. During the period 2002 to 2007, the Central Gove rnment’s debt rose from BDS$3.7 billion to 
BDS$5.3 billion.  This debt as a percentage GDP was 68.9% in 2007.  The foreign component of the 
debt was approximately 20% GDP, while the debt service ratio was 6.7%. 
(4) INFLATION  
14. The average inflation rate in Barbados was rela tively low in the period under review.  In 2002 
the rate of inflation was 0.2%.  This rose to 1.4%  in 2004 before peaking at 7.3% in 2006.  At the end 
of 2007 the inflation rate was 4.1%.  The volatili ty in the international price of petroleum and 
petroleum products have led to the recorded increas es in the rate of inflation.  These price increases 
have been partly responsible for the wideni ng of the visible trade balance as well.   
(5) MONETARY POLICY  
15. In terms of monetary policy, the minimum depos it rate as set by the Central Bank of Barbados 
fluctuated during the six year period.  At the end of 2002 the rate was 2.5%.  However, it was Barbados WT/TPR/G/203
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 increased to a maximum of 5.25% at the end of the second quarter of 2007 before being reduced to 
4.75% during the remainder of that year. 
16. In 2007, the security reserve requirement was reduced from 12% to 10% in keeping with 
commitments to continue the process of financial liberalization. 
(6) INTERNATIONAL RESERVES  
17. Notwithstanding the country’s widening trade defi cit, the foreign reserves held by the Central 
Bank have remained at an almost constant level between 2004 and 2007.  In 2007, the net 
international reserves stood at BDS$1.5 billion. Th e import reserve cover fo r goods stood 29.4 weeks 
at the end of 2007.  
(7) TRADE PERFORMANCE  
18. Over the 2002 to 2007 period, Barbados’ visibl e trade deficit increased moderately.  In 2002 
domestic exports stood at BDS$333 million, while impor ts were BDS$2.1 billion.  At the end of 
2007, domestic exports were BDS$598 million, while imports stood at BDS$3.3 billion. 
19. Barbados’ trade with CARICOM countries has been  growing steadily.  In 2007, imports were 
BDS$833 million or 25% of total imports, while exports were BDS$356 million or 60% of total 
domestic exports.  Major exports to CARICOM duri ng the period included crude oil, building cement 
and paper labels.  Major imports included motor spirits and diesel, and food items. 
20. Most of Barbados’ exports are to Trinidad  and Tobago, while the USA accounts for the 
largest share of imports.  Other major tradi ng partners are the United Kingdom and Canada. 
IV. MAJOR SECTORS 
(1) AGRICULTURE  
21. The instability in the world economy after the events of September 11th, 2001, has further 
underscored the importance of national food secur ity, particularly for vulnerable Small Island 
Developing States and Net Food Importing Countries like Barbados. Since that time, Barbados has 
been placing greater emphasis on achieving a higher degr ee of food security to ensure that its citizens 
have uninterrupted access to food.  Accordingly, a National Food Security Plan has been developed 
by the Government of Barbados. 
22. As part of the National Food Security Plan, agricultural  stakeholders identified a list of 
sixteen commodities in which they believe Barbados  can achieve a high degree of self -sufficiency. 
These include poultry, fresh milk and a number of vegetables. 
23. In addition, Barbados has been promoting the gr eater use of technology to ensure efficiency 
and productivity within the sector.  The Govern ment considers that the use of new production 
techniques is necessary to take Barbados into th e future with a vibrant agricultural sector.  New 
production techniques which are being enc ouraged include greenhouses and hydroponics 
technologies. 
24. Barbados continues to promote agro-processing as a practical solution to not only achieving 
its food security goals, but also  as a mechanism to provide sustainable livelihood opportunities for 
vulnerable members of the society.  In addition, agro-processing continues to facilitate the cohesive WT/TPR/G/203 Trade Policy Review 
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 partnership between the agricultural sector and othe r sectors, including the local manufacturing sector. 
At the end of 2007, the output of the agro-pro cessing sub-sector was valued at approximately 
BDS$182.1 million - a 35% increase over its estimated value in 2002. 
(2) MANUFACTURING  
25. Barbados recognizes the importance of ma nufacturing to its economic and social 
development, and the linkages that exist with the other sectors of the economy such as agriculture and 
tourism. Barbados also recognizes the importance of value-added industries and products.  It therefore 
maintains a relatively liberal trading regime, w ith generally low applied tariffs.  The local 
manufacturing sector which comprises the food and beverage, electronic components, chemicals, 
petroleum products, and non metallic mineral pr oducts, employs approximately 9,565 persons.  
26. Government assists the sector through the Special  Technical Assistance and Incentive Fund, 
the Industrial Investment and Employment Fund an d the Brands of Barbados – Programmes that are 
compatible with this country’s WTO obligations.  
27. The Special Technical Assistance Fund is an initiative aimed at improving international 
competitiveness and stimulating growth in the local manufacturing sector.  The Industrial Investment 
and Employment Fund is a facility which allows  for the recapitalization and retooling of 
manufacturing entities.  The Brand of Barbados Campaign is charged with building awareness of 
locally manufactured products and the importance of manufacturing to the Barbadian Economy.  It is 
also charged with promoting linkages, where po ssible, between the manufacturing, agriculture, 
tourism and services sectors.  In addition, this programme provides exposure of Barbadian products to 
international buyers through support fo r attendance at overseas trade shows.   
(3) SERVICES  
28. The services sector in Barbados has continued to grow and to play a key role in the economic 
and social development of Barbados. 
29. In recent years, Government has implemented a number of instruments to enhance the 
performance of this sector.  These included the cr eation of the Barbados  Coalition of Service 
Industries to mobilize services based organizations and to assist them in their development thrust.  In 
addition, Government also enacted legislation to  assist bodies such as Accountants and Architects in 
better regulating their professions. 
30. The two major foreign exchange earning services sectors in Barbados are tourism and 
international business. 
(i) Tourism 
31. Government’s commitment to ensuring the long term survival of Barbados’ primary foreign 
exchange earner is evidenced by its continued em phasis on the marketing and promotion of the sector 
as well as the allocation of resources towards the development of tourism related infrastructure.  The Barbados Tourism Authority (BTA), as mandated under the Barbados Tourism Authority Act CAP. 
342, continues to promote  and facilitate the efficient developm ent of tourism through the design and 
implementation of appropriate marketing strategies fo r the effective promotion of the industry.  The 
Barbados Tourism Investment Inc.  (BTI) is the Government agency responsible for the development 
of Barbados’ tourism product through the attraction of investment of specific tourism related projects.  Barbados WT/TPR/G/203
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 The BTI, in recent years has facilitated Governme nt’s Urban Renewal and Development Programme.  
This programme consists of the infrastructural renewal of tourism centres throughout the island. 
32. Tourist arrivals in 2002 comp rised 498,000 long stay visitors  and 523,253 cruise passengers. 
In 2007 there were 581,515 long-stay visitors a nd 616,354 cruise passengers. Receipts from tourism 
in 2007 totaled BDS$2.4 billion. 
(ii) International business 
33. The international business sector continued its positive growth with respect to new 
registrations.  All sectors recorded increases in new registrations.  For example, in 2002 there were 
296 international business companie s and in 2007 there were 506. 
34. The revenue accruing to Government from this sector has been increasing over the years.  In 
2002, revenue stood at BDS$241 million.  In 2007, revenue was BDS$492 million. 
35. In order to ensure the stability and continue d growth of the international business sector, 
Government has continued to extend its networ k of Double Taxation Agre ements and Bilateral 
Investment Treaties.  The negotiation of such ag reements avoids the effect of double taxation and 
provides for a suitable framework for the protecti on and promotion of Foreign Direct Investment. 
V. TRADE AND TRADE RELATED POLICIES 
36. During the period under review, Barbados has ma intained a transparent trade policy regime 
especially as it relates to import licensing and taxation. 
37. In 2004, Barbados increased the number of pr oducts from regional and extra regional sources 
which required import licenses under the Misce llaneous Controls (General Open Licence) 
Regulations.  These products which are mainly agri cultural goods include live poultry, ham, bacon, 
milk and cream, tomatoes, biscuits and ice cream. The licensing regime is for monitoring purposes only, and no licenses have been refused. 
38. In terms of taxation, Government in 2001 increased the rate of customs duty on a number of 
manufactured goods from the CET rate of 20% to a rate of 60%, as allowed under its WTO 
commitments.  This policy was introduced to provide  temporary relief to that sector which was being 
challenged by increased imports. In 2006 the rate of duty on some garments was returned to the CET 
rate. 
39. A cess tax was introduced on 1
st September 2005 for a period of 18 months.  The tax was 
originally levied on extra regional imports at the rate  of 3% and was increased to 6% in January 2006. 
This temporary tax was introduced to dampen th e demand for imports.  The cess was abolished on 
28th February 2007. 
VI. TRADE RELATIONSHIPS 
(1) CARICOM  SINGLE MARKET AND ECONOMY  
40. Barbados is a founding Member of the Ca ribbean Community (CARICOM) which was 
established in 1974.  It fully implements the agreed  duties in the Customs Un ion, which are currently 
set at 40% on agricultural goods and 20% on industrial goods imported from outside the region. WT/TPR/G/203 Trade Policy Review 
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 Barbados, with the permission of CARICOM, imposes WTO bound rates on a number of sensitive 
products, particularly agriculture. 
41. In 2006, Barbados joined other CARICOM countries in creating the CARICOM Single 
Market, which allowed for the free movement of some factors of production, as well as goods and 
services produced in the region.  In preparation for this, it passed the CARICOM Single Market and 
Economy Act in 2004 which amended a number of pieces of legisl ation to make them compatible 
with the Revised Treaty of Chaguaramas.  The full CARICOM Single Market and Economy is to be 
established by 2015. 
42. Barbados recognizes the Caribbean Court of Ju stice in both its original and appellate 
jurisdiction.  The Headquarters of the court are in Trinidad and Tobago.  
43. Barbados also actively participates in other CSME institutions.  These include the Caribbean 
Regional Organization on Standards and Quality (C ROSQ) established in 2002, and the Caribbean 
Competition Commission which was inaugurat ed in January 2008 in Suriname. 
(2) CARICOM-B ILATERALS  
44. As part of CARICOM, Barbados has signe d bilateral trade and economic cooperation 
agreements with five countries within the hemis phere.  These countries are Venezuela, Colombia, the 
Dominican Republic, Cuba and Costa Rica.  CARICO M is currently having exploratory talks with 
Canada regarding the possibility of negotiati ng an enhanced trade and economic cooperation 
agreement with that country.  
(3) PREFERENTIAL TRADE ARRANGEMENTS  
45. Barbados has been benefiting from preferentia l trade arrangements with the USA under the 
Caribbean Basin Initiative (CBI), Canada under the CARIBCAN arrangement, and a number of GSP 
programmes.  However, it was graduated from th e GSP programme offered by the USA in 2006. 
(4) ECONOMIC PARTNERSHIP AGREEMENT  
46. On the 16th of December 2007, the Draft Economic Partnership Agreement (EPA) between 
CARIFORUM countries and the European Union (EU) was initialed by the Principal Negotiators of 
the two Parties, thus signaling the conclusi on of negotiations for a new trade and economic 
relationship between CARIFORUM and the EU, which commenced in April 2004.  The Agreement is 
to be signed by both Parties in July 2008. 
47. The draft Agreement consists of an exclusi on list which allows for 13.1% of specific goods, 
mainly agriculture products, impor ted by CARIFORUM from the EU to  be excluded from free trade. 
Duties on all other items are to be eliminated on a phased basis ranging from 5 to 25 years.  The EU 
liberalized almost 100% of its trade with CARIFORUM countries from January 1st 2008. In the area 
of services, the EU has agreed to liberalize approximately 90% of its services sectors, while Barbados has agreed to liberalize some 75% of its sectors. 
VII. MULTILATERAL TRADE RELATIONS 
48. Barbados places high priority on the fulfillmen t of its WTO obligations and on the Doha 
Development Round of negotiations. Barbados WT/TPR/G/203
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 49. In keeping with its obligations, Barbados appli es WTO approved tariff rates.  The majority of 
Barbados’ incentive programmes have been adjusted to make them consistent with WTO rules and 
consideration is being given to the appropriate me chanisms to bring its export subsidy programmes 
under Article 27.4 of the ASCM under conformity .  Notwithstanding human resource limitations, 
Barbados has been endeavouring to make notifications as required.  
50. In the current WTO negotiations, Barbados h as been emphasizing the concerns of small 
vulnerable economies and the challenges which thes e economies face in integrating into the global 
economic system. 
(1) SMALL VULNERABLE ECONOMIES WORK PROGRAMME  
51. Barbados has been actively participating in  the Small Vulnerable Economies (SVE) Work 
Programme. The Group has been working to deepen  the engagement of small economies in the 
negotiation process and also to build unders tanding among WTO members of the problems 
confronting these economies.  The Group also seeks to find solutions to these problems. 
52. SVE proponents emphasize that while no single characteristic or problem by itself can be said 
to be unique to small, vulnerable economies, it is a combination and the intensity of several of these 
characteristics and problems that give rise to SVE vulnerability.  This acute vulnerability 
differentiates small states from other states which may be affected by similar characteristics, but to a 
lesser degree and with less impact. 
53. Barbados has coordinated the work of the gr oup of 23 resident SVEs since 2004 (this number 
includes the members represented by the Organizati on for Eastern Caribbean States (OECS) and the 
Pacific Islands Forum). During this period the SVEs ha ve tabled over thirty different proposals in the 
areas of NAMA, Agriculture, Services, Fisheries Subs idies, Horizontal Subsidies, TRIPS, SPS, TBT, 
Trade Facilitation, Accession and Aid for Trade.  This reflects the fact that SVEs concerns and 
difficulties span a wide spectrum of the negotiations.  
(2) AGRICULTURAL NEGOTIATIONS  
54. Barbados has predominantly defensive interest s in agriculture, given the small size of the 
agriculture sector and the fact th at it is a net importer of such products. Some of the key areas of 
interest to Barbados in the negotiations include  the tariff reduction modalities, Special Products, the 
Special Safeguard Mechanism for developing coun tries, and Tariff Quota Rates administration.  
Barbados also has vested interests in discussions on de minimis  and domestic support measures. 
Further, as a small economy and a Net Food Impo rting Developing Country, the discussions and 
modalities on export credits and export credit guarantee schemes are also of interest. 
(3) NON-AGRICULTURE MARKET ACCESS (NAMA)  NEGOTIATIONS  
55. The issues of policy space and policy flexibilit y are important to ensuring that small 
developing countries like Barbados ha ve all available tools and suffi cient time to facilitate economic 
and social development.  Indeed, policy space in th e past has been used to assist domestic industries 
which were in distress.   
56. Barbados’ NAMA interests are pursued throu gh the group of Small, Vulnerable Economies 
(SVEs).  As part of that group, and given that ta riffs are the principal means of safeguarding domestic 
industries, proposals have centered on the magnitude of  proposed tariff reductions.  Barbados is of the WT/TPR/G/203 Trade Policy Review 
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 view that reduction requirements must take into account existing and future development objectives, 
thus recognizing the need for small economies to con tinually re-orient and adjust to market forces. 
(4) SERVICES NEGOTIATIONS  
57. Given the contribution of the services sector to its economic development, Barbados’ 
approach to liberalization is one that seeks to  carefully balance the opportunities and challenges 
facing small, vulnerable economies.  Barbados therefore pursues an approach that facilitates the 
development of its domestic capacity, gradual libera lization of the service sector and the creation of a 
capacity to export.  
58. Barbados’ principal sectoral interests in the negotiations include Entertainment Services, 
Professional Services, Financial Services (Insuranc e and related services), Solar Heating Services, 
Health Tourism and Network Manage ment Services.  The Government has made an initial offer in a 
number of areas including Computer and Related Services, Research and Development services, Business Services, Environmental Services and Transpor t Services.  This is a reflection of Barbados’ 
commitment to the further liberalization of the services sector. 
59. Within the rules-making framework of services negotiations, Barbados has been particularly 
active in the multilateral efforts aimed at the de velopment of horizontal disciplines on domestic 
regulation in the areas of licensing requirement s and procedures, qualification requirements and 
procedures, and technical standards.  
60. Barbados, in collaboration with its SVE count erparts, has made a number of submissions 
within the Services Special Session and Working Party on Domestic Regulation on specific areas of 
trade-related interest to small, vulnerable economies. 
(5) A
ID FOR TRADE  
61. The Aid for Trade initiative at the WTO is of pa rticular importance to Barbados.  Despite its 
middle income developing country status and the f act that Barbados is unable to gain access to 
traditional forms of development aid, the imbala nce in Barbados’ sectoral contribution to GDP 
demands developmental assistance to the productive sectors.  
62. Barbados was one of the developing countri es active in the preparatory Aid for Trade 
discussions and indeed sat as a member of the Task Force.  Barbados, with the support of other Small 
Vulnerable Economies, submitted a wide-ranging pro posal on Aid for Trade which sought to identify 
many of the areas of priority for these economies.   The overarching message of the submission was 
that Barbados and the SVEs view an effectiv e and supportive Aid for Trade architecture as a 
complimentary mechanism to allow small, vulnerable economies to achieve a balanced outcome to 
the Doha Development Agenda. 
63. It is crucial that the financing for Aid for Trade is predictable, sustainable and effective as it is 
important for recipient countries to be able to pred ict the level of likely aid flows within a particular 
period.  It is also important to economies such as Barbados that the scope of Aid for Trade remains 
broad enough so that any sector and initiative of interest to trade development is not a priori  
excluded.  Areas of potential benefit to Barbados include: development and modernisation of trade 
policy, research and product development, standa rds and regulations, and broad trade development 
assistance. 
 Barbados WT/TPR/G/203
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 VIII.  THE WAY FORWARD 
64. In pursuit of its development strategy, Barba dos will focus on a number of issues which are 
fundamental to achieving economic growth. 
65. As a small developing country, Government sees education as being critical to Barbados’ 
economic progress.  It will therefore seek to deve lop its human resources both to improve the quality 
of life of its citizens and to earn valuable fo reign exchange through the export of services. 
66. In the area of health, Barbados is aware th at the greatest challenge facing the country is 
improving its health system to address lifestyle heal th issues, including HIV and AIDS, which impact 
negatively on its human resources.  Emphasis ther efore will be placed on developing and executing 
appropriate strategies designed to mitigate the problems affecting Barbados in this area.  
67. With respect to the productive sectors, the Government of Barba dos will implement new 
strategies, including the creation of an innovation fund, to re-vitalize those sector s that are in need of 
assistance.  It will also provide appropriate in centives, and foster public and private sector 
partnerships to address such issues as funding for these sectors. 
68. The sugar industry which traditionally has been the mainstay and the main money earner for 
Barbados, has also been negatively affected by ch anges in the global trading environment.  The 
Government of Barbados has therefore embarked on the restructuring of this industry, transforming it 
into a sugar cane industry in order to derive greater  benefits from the sugar cane plant.  This will 
allow for the production of ethanol, the generation of  electricity for domestic use, and the production 
of branded sugars for both th e domestic and export markets. 
69. Given the rising cost of energy, Barbados will im plement aggressive policies to ensure that its 
oil import bill is reduced.  The policy, which is multifaceted, will involve the provision of significant incentives to encourage ownership of fuel efficient vehicles, particularly motor cars, and the use of 
solar energy to meet the needs of consumers and businesses.  Barbados will also seek to exploit any 
petroleum resources which may exist within its territorial limits.  
IX. CONCLUSION 
70. Notwithstanding the many challenges currently  facing Barbados as a small developing 
economy, and signs of future challenges, the Gove rnment of Barbados will continue to pursue a 
development strategy which recognizes the rules of the multilateral trading system.  This strategy will 
include the deepening of Barbados’ relationshi p with CARICOM and other countries within the 
context of multilateral disciplines.  
71. Barbados sees the successful outcome of th e Doha Development Round as critical to the 
reinforcement of the above mentioned strategy.  For Barbados, a successful round would be one that 
takes fully on board the concerns of small vulnerable economies. 
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