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RESTRICTED WT/TPR/W/76 10 February RESTRICTED WT/TPR/W/76 10 February 2015 (15-0841) Page: 1/35 Trade Policy Review Body BARBADOS DRAFT MINUTES OF THE MEETING* HELD ON 27 AND 29 JANUARY 2015 Delegations are invited to submit factual corrections, if any, on their own statement to the Secretariat (Mrs Barbara Blanquart: [email protected], or to [email protected]) no later than 24 February 2015. Organe d'examen des politiques commerciales BARBADE PROJET DE COMPTE RENDU DE LA RÉUNION* TENUE LES 27 ET 29 JANVIER 2015 Les délégations sont invitées à soumettre leurs éventuelles corrections factuelles concernant leurs propres déclarations au Secrétariat (Mme Barbara Blanquart: [email protected], ou [email protected]) le 24 février 2015 au plus tard. Órgano de Examen de las Políticas Comerciales BARBADOS PROYECTO DE ACTA DE LA REUNIÓN* CELEBRADA LOS DÍAS 27 Y 29 DE ENERO DE 2015 Las delegaciones pueden enviar a la Secretaría (Sra. Barbara Blanquart: [email protected], o [email protected]) a más tardar el 24 de febrero de 2015 las correcciones fácticas que deseen introducir en sus propias declaraciones. _______________ *In Original language only/En langue originale seulement/En el idioma original solamente. WT/TPR/W/76 • Barbados - 2 - TRADE POLICY REVIEW BARBADOS DRAFT MINUTES OF THE MEETING Chairperson: H.E. Mrs. Mariam MD Salleh CONTENTS 1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ....................................................... 3 2 OPENING STATEMENT BY THE REPRESENTATIVE OF BARBADOS .................................. 5 3 STATEMENT BY THE DISCUSSANT ................................................................................ 8 4 STATEMENTS BY MEMBERS ........................................................................................ 12 5 REPLIES BY THE REPRESENTATIVE OF BARBADOS AND ADDITIONAL COMMENTS ..................................................................................................................... 30 6 CONCLUDING REMARKS BY THE CHAIRPERSON ......................................................... 34 Note: Advance written questions and additional questions by WTO Members, and the replies provided by Barbados are reproduced in document WT/TPR/M/308/Add.1 and will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/W/76 • Barbados - 3 - 1 INTRODUCTORY REMARKS BY THE CHAIRPERSON 1.1. The third Trade Policy Review of Barbados was held on 27 and 29 January 2015. The Chairperson H.E. Mrs Mariam MD Salleh (Malaysia) welcomed the delegation of Barbados headed by Senator the Honourable Maxine McClean, Minister for Foreign Affairs and Foreign Trade; the rest of the delegation, including H.E. Ambassador Marion Vernese Williams, Permanent Representative of Barbados to the WTO; other colleagues from the mission in Geneva; and the discussant, H.E. Ms Tan Yee Woan (Singapore). 1.2. The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of the procedures for the meeting. The report by Barbados was contained in document WT/TPR/G/308 and that of the WTO Secretariat in WT/TPR/S/308. 1.3. Questions by the following delegations had been submitted in writing at least two weeks in advance and had been transmitted to the delegation of Barbados: China; Guatemala; Canada; the European Union; Peru; Turkey; Brazil; Mexico and Thailand. The following delegations submitted written questions after the two-week deadline: Colombia; Trinidad and Tobago; and the United States. 1.4. During the review period, Barbados had been severely affected by the global economic crisis, which had resulted in a sharp decline in tourism receipts. GDP had contracted sharply in 2009, had grown at very moderate rates between 2010 and 2013, and had contracted again in 2014. 1.5. As the Secretariat report noted, Barbados' fiscal position remained precarious. During the period under review Barbados had registered large fiscal deficits, which had risen to 12.7% of GDP in 2013/14. The mounting fiscal deficit had led to an increase in the debt to GDP ratio to over 126%. To redress this situation, the Government of Barbados had undertaken a fiscal consolidation programme, which was expected to lead to a decline in the deficit this year and in the medium run, and to restore fiscal sustainability. The Chairperson was sure Members would like to know more details regarding measures undertaken. 1.6. On the external front, Barbados had been running persistent external current account deficits during the review period. In 2013, the deficit had reached 11.6% of GDP, up from 9.6% in 2008, mainly due to falling tourism receipts and an increasingly negative investment income balance. 1.7. Barbados was an active Member of CARICOM and through its participation in it had subscribed a number of trade agreements. A significant development during the review was the CARIFORUM-EU Economic Partnership Agreement (EPA) which had been signed in October 2008, and had been ratified by Barbados in July 2014. Barbados was still in the process of making the legal adjustments required for a full implementation of the EPA. 1.8. The Chairperson was pleased to note that Barbados had made considerable progress with respect to the adoption of trade facilitation measures. Customs clearance could be done electronically and mechanisms for advanced ruling were in place. A risk assessment was in place, with merchandise channelled through four lanes according to risk, including a "blue" lane, for post-clearance assessment. 1.9. However, as some Members had noted in their questions, Barbados continued to maintain a dual licensing regime that favoured imports from other CARICOM partners. It was interesting to hear from Barbados what the rationale for maintaining such a system was. 1.10. During the period under review, Barbados had continued to implement a number of incentives programmes targeted solely or partly at the promotion of exports. Five of these programmes had been notified to the WTO. Barbados had also notified to the WTO the internal steps that it needed to undertake to bring these subsidies into conformity with the SCM Agreement by 31 December 2015. It interested Members to hear about the latest steps undertaken for the dismantlement of these programmes, as the deadline approached. 1.11. Agriculture played in general a small role in the economy, except the sugar industry, which provided the raw material for Barbados' main export product, rum. A National Agricultural Strategy was currently under development, with main emphasis on food security, and on boosting WT/TPR/W/76 • Barbados - 4 - production and productivity. Also, the authorities were considering expanding the scope of sugar-related activities to include the production of ethanol and electricity generation. 1.12. The Chairperson was sure that these topics and themes, and many more would be touched upon in greater detail at the deliberations on the first and second day of the meeting. 1.13. She also noted that a podcast would be made of this TPRB meeting. WT/TPR/W/76 • Barbados - 5 - 2 OPENING STATEMENT BY THE REPRESENTATIVE OF BARBADOS (SENATOR THE HONOURABLE MAXINE MCCLEAN) 2.1. It is a distinct honour for me to be here at the World Trade Organization, representing the Government and people of Barbados on the occasion of Barbados' third Trade Policy Review. 2.2. Barbados welcomes the opportunity to discuss the trade policies which would have guided Barbados' economy over the last six years with you the Members of the World Trade Organization. We look forward to sharing with you our perspective on how we have managed to weather the challenges which we have encountered during this time period. We also look forward to hearing your comments on the review. 2.3. Since Barbados' last trade policy review in 2008, the world has gone through an unprecedented economic recession and this has had deleterious effects on many countries, particularly small vulnerable economies like Barbados. 2.4. On the surface, if you only look at the statistics, Barbados is a middle income country with a high per capita income and human development index. The reality, however, is that Barbados is a small vulnerable open economy and we possess the characteristics of the same in terms of small size, limited resources, susceptibility to external economic and financial shocks and vulnerability to natural disasters. In this regard, it is evident that many of the larger developed countries are showing signs of economic recovery. Unfortunately, we have come to recognize that a time lag of a few years is required for us to show the same positive signs. 2.5. Barbados' economy was challenged during the period under review. The economic recession, which came about as a result of circumstances beyond our control, has had a particularly huge impact on our major foreign exchange earner: tourism. There was a marked decrease in tourist arrivals and tourist spend. 2.6. We are beginning to see modest improvements in the tourism sector. The Government has used this time period to redefine our strategy for the sector. Barbados has developed a Tourism Master Plan, intended to be Government's blueprint for the industry and a guide for all stakeholders. The Barbados Tourism Authority (BTA) has been restructured to bring equal focus to product development and promotion. Major investments have commenced in this area and are contributing to the diversification in this sector. Barbados remains one of the most beautiful islands in the world, with very hospitable and sociable people, a relaxing environment with an enviable climate. The fact
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