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Barbados: A High-Income Country with a Strong Tourism Sector

Overview

The International Telecommunications Union (ITU) has released its latest report on the economic and trade situation of Barbados. According to the report, tourism remains the leading foreign exchange earner in the country, followed by international business and financial services.

Economy

Barbados is classified as a High-Income Country with a GDP per Capita of $18,145 in 2019. The economy grew at an average rate of 1 percent per year from 2015-2019. However, the International Monetary Fund (IMF) estimates that the country suffered a contraction of 11.6 percent in 2020 due to the impact of COVID-19 on the economy.

Government Response

In response to these challenges, the Barbados government entered into an agreement with the IMF in 2018 to secure macroeconomic stability for the country. The report notes that the measures implemented under this agreement have had a strong positive impact on efforts to consolidate the fiscal position.

Trade

Despite challenges, Barbados remains open to trade. The country has a long trading relationship with the United Kingdom (UK), which is an important, friendly and reliable market for UK exporters. Total imports from the UK up to Q2 2020 were valued at £248 million, with approximately £43 million in goods and £205 million in services imported.

  • Enhanced market access is available for Barbados regionally through trade agreements between CARICOM countries and internationally through e.g. the newly signed Economic Partnership Agreement (EPA) between CARIFORUM and the UK.

Business and Human Rights

The government of Barbados has ratified several International Labour Organisation (ILO) conventions on labour rights, including those relating to ‘freedom of association and the right to organise’, ‘social security’, ‘forced labour’ and ‘child labour’. Other human rights features include the Employment Rights Act 2012 and the 2017 Employment (Prevention of Discrimination) Act.

  • The active trade union movement in Barbados plays a robust role in the Social Partnership (government, workers representatives and private sector representatives).

Bribery and Corruption

Bribery is illegal in Barbados, and the country has legislation to promote Integrity in public life. However, Barbados has not ratified the Convention against Corruption.

  • In 2020, Barbados ranked 29th in Transparency International’s Corruption Perception Index (CPI).
  • Anti-Money Laundering legislation is also in place.

Terrorism and Security

The ITU report notes that there are no specific terrorism concerns for businesses operating in Barbados. However, UK firms are advised to take standard security precautions when conducting business on the island.

Commercial Disputes

Businesses in Barbados can utilize the Caribbean Court of Justice as a forum for commercial disputes at the highest appellate level. It is important for UK businesses to seek legal advice and ensure that contracts are formally agreed upon, as informal commitments made by individual representatives may not be honored.

Intellectual Property

Infringement of copyright and intellectual property is low in Barbados. The Caribbean Intellectual Property Organisation (CAIPO) is responsible for the administration of these intangibles in Barbados.

For further information on doing business in Barbados, please contact the Department for Business and Trade at [insert contact details].