Investing in Barbados an ideal choice
Thursday May 12 2011 | 12:46 AM

“BARBADOS intends to continue to distinguish itself as a preferred domicile for international insurance, banking, trusts, wealth management, niche manufacturing and information services.”

This is the word from Senator The Honourable Darcy Boyce, Minister in the Prime Minister’s Office.

He has explained this in the Barbados International Finance and Business publication 2011, by Invest Barbados.

“As a Government, we recognise that in today’s global context, competition, particularly for foreign direct investment flows, has reached unprecedented levels,” Senator Boyce said.

“Not surprisingly too, we have noticed the emergence of an international business community that is more discerning. We have therefore selected product offerings and regulatory systems that signal world–class standards in a dynamic, yet relevant and competitive environment,” according to him. 

Senator Boyce pointed out that this has resulted, for example, in amendments to key pieces of domestic legislation, as well as some additions.

At the top of the list is the strengthening of the Money Laundering (Prevention and Control) Act, as well as enacting the Registered Agents Act and the Financial Services Commission legislation, all of which will enhance Barbados’ regulatory regime, said the Government official.

The strength of Barbados’ international business sector has come under scrutiny recently with the news that Barbados does not currently meet the OECD standard, in addition to Britain’s tax classification of Barbados as Category Three. However, there are reports that the tide is changing and Barbados is set to move up to Category Two.

Boyce added, “Another primary focus for Barbados has [been], and continued to be the mainstream expansion of the platform from which international clients conduct business: our tax treaty network. Our network has been purposefully developed to allow excess to key and emerging markets.”

He revealed that over the past few years, treaties have been signed with Mexico, Panama, the Republic of Ghana, Luxembourg, Portugal and Spain, with the last five awaiting ratification.

“Since the Barbados/Mexico Double Taxation Agreement (DTA) came into effect in January 2010, we have seen buyout interest form the location.

“We anticipate similar levels of enquiries and new business when the other DTAs take effect. Discussions are going on with Brazil towards the finalisation of a DTA.”

Notwithstanding this new thrust, established markets will retain the country’s respective priority. 

He said, “In fact we will continue to strengthen bonds with proven source markets like the USA, UK and Canada where we also have diplomatic missions and the DTAs in place.”

According to Senator Boyce, “Barbados continues to safeguard its enviable standing as the third highest recipient of Canada direct investment abroad, and under CARICOM we are negotiating a Free Trade Agreement with Canada. 

When completed, this will create a new range of mutually beneficial trade and investment opportunities.”

The Senator suggested for the future of the sector, “With the lesson of the recent recession fresh in our minds, growth across the international business sector will be rooted more and more in sound investment choices, buttressed by a stable, secure enabling and competitive environment. Barbados provides the opportunity.