Barbados Government Prepares to Review Trade Policies Amid Global Economic Shifts

The Barbados government is poised to launch a comprehensive review of the country’s trade policies, a move deemed crucial for adapting to the rapidly changing global economic landscape.

Speaking at the recently held Barbados Manufacturers Association’s (BMA) 60th anniversary celebration, Marsha Caddle, the minister of industry, innovation, science, and technology, emphasised the need for reform, noting that current trade policies, shaped by historical geopolitical conditions, no longer fully serve Barbados’ interests in today’s dynamic global economy.

“Our trade agreements and overarching trade policy emerged at a specific time in our economic and social history,” Caddle explained. “The geopolitics that obtained at the time have shifted slightly, I dare say, and continue to shift.”

The minister highlighted several factors necessitating this review, including frequent changes in the global trade landscape, technological advancements, and environmental challenges. She assured that the review would be conducted swiftly, with full engagement from all relevant partners, including the BMA.

Caddle also addressed the broader issue of Barbados’ development, particularly the declining contribution of manufacturing to the nation’s gross domestic product (GDP). While official figures indicate that manufacturing accounts for around 5.5 per cent of GDP, she stressed that this figure failed to capture the sector’s full impact, particularly its linkages with other critical sectors such as tourism, agriculture, and services.

The government’s vision for economic diversification was also outlined, with a particular focus on expanding the technology sector. Caddle highlighted efforts to strengthen the country’s technological infrastructure, especially in response to recent cybersecurity threats.

“A lot of the investment that we have to make as a government is in having a national protected technology infrastructure,” she noted.

In a move to support both established and emerging businesses, the minister announced the reintroduction of the special technical assistance programme through Export Barbados. This initiative forms part of a broader effort to develop a new industrial policy that will create a supportive environment for high-growth sectors.

“We have to be very crisply and very succinctly able to signal what are some of the opportunities we think exist from our vantage point, and what are some of the things we think are obvious and comparative advantages for us in 2024 and for the next 30 or 50 years,” the minister said.

The policy will seek to create an enabling environment for businesses through fiscal incentives and other measures. Caddle emphasised the importance of “sending a signal to our young people and to entrepreneurs that there is support for high-growth companies in this country that can spread throughout the region and also be able to function in global markets”.

Innovation was emphasised as a key driver of economic growth, with plans to adopt Industry 4.0 practices and establish a national scientific research and development council. This council will bridge the gap between the conception of ideas, development, and market readiness, particularly in emerging sectors such as pharmaceuticals.

“We realised that if countries like ours are not entrepreneurial as a state, if we don’t determine that we have to find the high growth potential and directly support it, we’re not going to be able to compete,” she said.

Caddle reiterated the government’s commitment to reforming trade policies to better serve Barbadian businesses and the economy as a whole. She expressed appreciation for the BMA’s role in Barbados’ development and hoped for continued collaboration, describing the organisation as one of the government’s “most practical partners”.

The minister’s remarks underscored the unique relationship between the government and the BMA, which she likened to a “family”. This partnership, she noted, has been particularly strong during challenging times, such as the COVID-19 pandemic, exemplifying the social partnership model of governance that has allowed for a collaborative approach to national development.

(RG/LG)