Barbados is not a signatory to any trade treaties on its own. It has inked many trade agreements with other countries in the hemisphere and beyond under the auspices of CARICOM. The following trade agreements have been signed and ratified by Barbados.
The CARICOM-Venezuela Trade and Investment Agreement
The CARICOM Venezuela Trade and Investment Agreement was signed in October 1992 and confirmed in June 2006. It is the first of CARICOM’s bilateral trade agreements with the Bolivarian Republic of Venezuela.
This agreement is currently a non-reciprocal preferential agreement in favor of CARICOM, allowing certain CARICOM items to enter the Venezuelan market duty-free. Given that CARICOM is not obligated to reciprocate this preferential access, Barbados must accord Venezuela’s Most Favoured Nation (MFN) treatment to all commodities imported from that country. MFN treatment refers to the tariffs imposed at a WTO Member’s border when goods are exported from another WTO Member.
The CARICOM-Colombia Trade, Economic and Technical Cooperation Agreement
The CARICOM-Colombia Agreement on Trade, Economic, and Technical Cooperation was signed in July 1994 and approved in June 2006. This arrangement originated as a non-reciprocal agreement that provided one-way preferential access to the Colombian market for specific CARICOM products. The Parties, on the other hand, agreed to a level of reciprocity on a limited list of commodities four (4) years after the non-reciprocal agreement went into effect. In May 1998, a protocol modifying the Agreement was signed to allow for this reciprocity.
The Protocol to the Agreement lays forth a list of duty-free commodities, as well as a list of items that are eligible for a progressive reduction in tariff between the CARICOM MDCs of Barbados, Guyana, Jamaica, Trinidad & Tobago, and Colombia. CARICOM’s Least Developed Members are not obligated to give Colombia priority access. It’s worth noting that the phasing procedure for the items on this list is now complete.
The CARICOM-Dominican Republic Free Trade Agreement
The CARICOM Dominican Republic Free Trade Agreement is the third CARICOM agreement to which Barbados is a signatory. This bilateral trade agreement between the five CARICOM MDCs of Barbados, Guyana, Jamaica, Suriname, Trinidad and Tobago, and the Dominican Republic was signed in August 1998 and confirmed in June 2006. (DR). The commercial relationship between the Dominican Republic and CARICOM’s LDCs is based on non-reciprocity, with the understanding that it will be revisited in 2005. This investigation has not yet been completed.
The agreement covers a wide range of topics, including trade in goods, trade in services, economic cooperation, and government procurement.
The Agreement’s Trade-in Commodities section includes an exclusion list and a gradual reduction of duty list, both of which contain a modest number of goods. As a result, the list of items that have been liberalized is quite long. It’s worth noting that the phasing procedure for the items on this list is now complete.
The CARICOM-Cuba Trade and Economic Cooperation Agreement
The CARICOM Cuba Trade and Economic Cooperation Agreement is the fourth bilateral agreement signed by CARICOM and to which Barbados is a party. The Parties signed this Agreement in July 2000, intending to strengthen their commercial and economic connections. The agreement permits advantageous goods trade between the CARICOM MDCs of Barbados, Guyana, Jamaica, Suriname, Trinidad and Tobago, and Cuba. CARICOM’s Least Developed Countries are not compelled to participate in the liberalization process.
Both Parties began negotiations for preferential access for additional items into each other’s market during a Joint Commission Meeting in 2007, at Cuba’s suggestion.
The Second (2nd) Additional Protocol to the Trade and Economic Cooperation Agreement between the Caribbean Community (CARICOM) and the Government of the Republic of Cuba was drafted following discussions at future Joint Commission Meetings between the two sides. On the margins of the Council for Trade and Development’s (COTED) Forty-Fifth (45th) Meeting in Georgetown, Guyana, CARICOM and Cuba signed the Second (2nd) Additional Protocol to the Trade and Economic Cooperation Agreement.
