Barbados’ reputation as a good place to do business has been touted in a United States (US) government report.
In its 2014 Investment Climate State Report On Barbados, the US State Department said “despite the recession, the services sector holds the largest potential for investment growth, while a new energy law will likely lead to increased production of renewable energy”.
It also said Barbadian businesses “generally welcome joint ventures with foreign investors in order to access technology, expertise, markets and capital”.
“Barbados’ economy is small, and in the past new enterprises that might compete with entrenched local establishments, especially in the retail and restaurant sector, may face an objection to their licence by local private interests,” the report noted.
“In the past, licences for importers of US ice cream and poultry products, and some US fast food franchises were considerably delayed due to this objection process. Recently, there has been a relaxation on the use of this mechanism and there has been an increase in the entry of franchises on the island.”
American authorities also informed their private sector that the Barbados government “strongly encourages foreign direct investment” and “offers special incentive packages for foreign investments in the hotel industry, manufacturing, and offshore business services”.
“Companies can freely repatriate profts and capital from foreign direct investment. The [US] Embassy is not aware of any outstanding expropriation claims or nationalisation of foreign enterprises in Barbados. Barbados bases its legal system on the British common law system,” the report said.
“Barbados uses transparent policies and effective laws to foster competition and establish clear rules for foreign and domestic investors in the areas of tax, labour, environment, health, and safety. These rules are in keeping with international standards. The regulatory system can be slow, and at times not forthcoming on information regarding the refusal of a licence.
“Barbados is a member of the Caribbean Basin Initiative, which permits duty-free entry of many products manufactured or assembled in Barbados into markets of the United States. Barbados has no bilateral investment treaty with the United States, but has a double taxation treaty and tax information exchagne agreement,” it added.
In addition to the report, the US Embassy here recently held a forum where Minister of Industry, International Business, Commerce and Small Business Development Donville Inniss spoke directly with a number of American company officials.