This suggestion carried in the Press recently was made by a local manufacturer.
One can sense the frustration at seeing market share eroded in an environment where the “playing field” is thought not to be level.
Within the Revised Treaty Of Chaguaramas, this arbitrary imposition of taxes or penalties is not allowed. So in essence the short answer is no, Barbados should not engage in this type of action.
The issue of Trinidad and Tobago as the single strongest economic entity within the Single Market and its profile, role and responsibilities are, however, in need of analysis and discussion.
Within the CSME, the statistics as they relate to Trinidad and Tobago are as follows:
1. Largest and strongest economy
2. Second-largest population
3. Net exporter
4. Third-weakest currency
5. Highest incidence of regional investment and cross-border ownership
In other words, Trinidad and Tobago is the powerhouse within the CSME.
In terms of Europe, it is like Germany in its economic strength. All of this is still not a case for imposition of any taxes or duties.
There is, however, a need for sectoral analysis and strategies to be developed by Barbadian companies that will lead to a more competitive position on their part.
The private sector needs to be more analytical and strategic and do less complaining.
Within the private sector grouping itself there are inherent business conflicts between producers and wholesalers or retailers.
Understanding the path that manufactured goods take on route to the final customer is important.
Trinidadian goods do not automatically transport themselves into the shopping baskets of Barbadian consumers. They are purchased by entities within Barbados and distributed for the sole purpose of making a profit. This is expected in any capitalist system and should never be discouraged.
That will never be the answer.
Denis Kellman, Minister of Industry, Small Business and Rural Development, is reported to have made a very serious comment in elation to local manufacturers.
His comment suggests that many of the local manufacturers peg the price of their goods close to those of the imported competing brands which are more expensive.
According to the minister, this is problematic as it adds to the high cost of living in Barbados.
My reference to that comment is not to add to the cost-of-living debate but to show how producers/ manufactures are sometimes not strategizing and focusing on reducing cost and improving efficiency, which will ultimately lead to lower prices to the market.
The majority of companies I have been associated with that had any focus on quality improvement and cost reduction simultaneously were foreign-owned!
In addition, they all operated in highly competitive environments where the playing fields were deemed not to be level.
Marketing with an innovative flair coupled with analysis and sound strategy represent a better solution than taxes.
• Randolph Sandiford is managing director of Matrix Marketing.