Medicinal Cannabis in Barbados An Industry Poised for Growth Prime Minister Mia Amor Mottley and creating new jobs, new opportunities for her government are working on a local businesses and new revenues for the framework for the legalization of government. The legalization of medicinal cannabis in Barbados. Ms. medicinal cannabis also presents great Mottley has noted Barbados can no opportunity for international investors. longer a ord to miss out on the emerging, multi-billion-dollar global Local Sector Creation cannabis industry. The Barbados business sector is poised Left to right: The legalization of medicinal cannabis to experience significant positive Chris Sulaiman, CPA, CA marks a significant transition for a disruption should the cannabis industry Tax Manager, Tax & Legal, conservative Barbadian society. However, and all its potential for Barbados be Deloitte to maximize Barbados’ global market embraced. It can create new Ché Waithe share and overall impact of the cannabis opportunities for research, cultivation, Senior Consultant, Strategy & market, the government will need to manufacturing, exportation and quality Operations, Deloitte complete proper due diligence, which control standards. As cannabis legislation Kishmar Lorde includes considering social opposition, continues to evolve, there is a greater Associate, Tax & Legal, Deloitte sensitization process and socio-economic need for quality control. There is currently factors. Nevertheless, this dynamic and no standard body for governing and sophisticated sector can be a catalyst in stipulating the quality control and 92 / businessbarbados.com 93 / businessbarbados.com Medicinal Cannabis in Barbados - An Industry Poised for Growth assurance requirements; however, this neighbours: Jamaica (25%), St. Vincent whether for medicinal purposes and/or presents an opportunity for the Barbados (16%) and Antigua (25%). Notably, these recreational, is a complex e ort, whereby government to partner with and involve three territories were among the first in the needs of diverse stakeholders must best-in-class companies and talent in the Caribbean to have passed cannabis be delicately balanced. Public safety – cannabis quality control. legislation. from a health, security and justice Barbados has hectares of unused or The international business regime in perspective – is paramount. At the same underutilized land, which could become Barbados is well-established to host time, there is a strong desire to foster the main vehicle for extensive cultivation international entities which are a part of innovation and entrepreneurship across and manufacturing of cannabis and the medicinal cannabis industry. CARICOM and to show the world that a cannabis by-products in Barbados. The International entities seeking to register well-regulated, well-run, highly University of the West Indies has cannabis entities in Barbados are required professional cannabis industry can be a established the Cannabis Research Group to meet the economic substance positive contributor to a national to cultivate cannabis for research guidelines These guidelines can be economy. purposes and is set to establish an beneficial to cultivators, manufacturers Barbados will also have to strongly institute to coordinate research e orts on and the general labour force through the consider correspondent banking medicinal and commercial products of transfer of knowledge, thereby improving relationships. As countries push to cannabis. the skills of the local workforce. At the decriminalize cannabis, it can be an Legalization presents an opportunity same time, cannabis business can be opportunity to reinforce Barbados as a for Barbados to globally leverage beneficial to incoming international global hub for cannabis companies, with research strengths and become a leading entities as they can access the highly- the ability to pay dividends and interest global authority on cannabis quality skilled and well-rounded labour force. to global foreign companies with no control and assurance. In many countries In addition to quality control issues from respective governments or where medicinal cannabis is legalized, involvement as aforementioned, strong central banks. On the other hand, governance bodies are already in place in strategic partnerships between the countries like the United States, where response to the need for global government and experienced investors cannabis remains a federally illicit standards. In 2015, Jamaica created the with knowledge of the sector can be substance, could face banking issues, as Cannabis Licensing Authority to establish beneficial to both parties in terms of profits from cannabis are viewed to be and regulate Jamaica’s legal cannabis and business facilitation and the development derived from unlawful activities and hemp industry. While in Canada, of human capital. rejected by a correspondence bank. approximately $800 million was spent on medical cannabis in 2018. Other Considerations Conclusion These opportunities not only represent There are several other considerations The globalization of cannabis has caught Barbados’ ability to compete as a global that need to be thought out. With Canada on around the world. For those player, they also support the being the first G7 nation to fully stakeholders involved, there will be requirements for attracting and sustaining decriminalize the use of cannabis, continued lessons to be learned. As high quality local and foreign investment Barbados can make e orts to utilize Barbados embarks on the first steps into . available resources, such as working the legalization of medicinal cannabis, International Sector Creation groups and accounting or consulting there will be several opportunities for Specifically, in the international sector, firms. Deloitte, a global leader in the revenue growth, collaboration with there is potential for the cannabis Cannabis Sector, issued a 2018 Cannabis neighbouring islands and building business to strive. Barbados is recognized Report, in which several considerations relationships with global cannabis as a global hub for international business are applicable to Barbados. This report professionals and entities. because of its attractive tax incentives, notes that the legalization of cannabis, compliance with international best practices and standards, and skilled labour force in providing weightless ...this dynamic and sophisticated sector professional services. Barbados has a wide double-taxation treaty network and can be a catalyst in creating new jobs, is recognized as a transparent jurisdiction for international business with procedures new opportunities for local businesses and for information exchange and disclosure. There are 31 concluded treaties that allow new revenues for the government. The foreign investors in the international legalization of medicinal cannabis also cannabis sector to access certain treaty incentives. The island also o ers presents great opportunity for competitive tax rates for businesses at 5.5 % to 1 %, as compared to its Caribbean international investors. 94 / businessbarbados.com.