The Tribune

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

The Government was yesterday said to have initiated “the North Abaco project” in an effort to first lure Caribbean manufacturers, then those outside the region, to set-up plants for US export.

Winston Pinnock, The Bahamas’ ambassador to the Food and Agricultural Organisation (FAO), disclosed the plan as part of this nation’s drive to boost its exports and foreign currency earnings while speaking at a Jamaica Manufacturers and Exporters Association (JMEA) trade mission.

Suggesting that the “tax incentives” and other policies will make it attractive for manufacturers looking to export to the US market, he said: “The Government of the Bahamas through the Prime Minister’s Office has initiated the North Abaco project.

“The North Abaco project is one where we, the Government, have decided to invite manufacturers firstly in the region, and then to take it outside of the region, to set up manufacturing plants; primarily those companies who are exporting to the US market. It is our view that the policies of the Government of the Bahamas are very favourable to encouraging food manufacturing by way of tax incentives.”

Mr Pinnock argued that The Bahamas is a prime location for manufacturers looking to export to the US from the Caribbean, while the project provides an opportunity for the country to lower its import bill.

He said: “We did a study and found out that in the region, we certainly seem to be the most favourable country to import more material imports, and to be able to have the freedom - no restrictions - on importing raw material and also being in an area that is tax free. Pretty much no corporate tax and all the rest of it.

“So there’s quite a lot of incentives that we have shared with the companies we’ve met with. And there is a significant interest in them exploring the possibility of setting up shop and the premises to simply manufacture goods primarily to ship to the US market. And, at the same time, making those products available for local consumption.”

Mr Pinnock added that sudden shocks to the international market, such as COVID-19 and the ongoing war in Ukraine, have increased shipping costs and can lead to food shortages if international manufacturers choose to hoard supplies for themselves.

He said: “During the pandemic, for example, in addition to seeing the escalation of shipping costs, countries like The Bahamas, which imports more than 80 percent of our food from the US, came face to face with the reality that their major US suppliers held on to these food stocks to ensure the North American market was serviced, which resulted in significant food shortages in some areas.

“If these stark realities don’t awaken us to look for our own self-interest, then nothing will. Now, more than ever, the cry of regional leaders who encourage us to grow what we eat, and eat what we grow, has once again become a clarion call. And, in my view, the time of reckoning is at hand and we can no longer turn a blind eye to this issue.”

Senator Barry Griffin, deputy chairman of the Bahamas Trade Commission, said this nation is “open for business” and that facilitating more regional trade can boost the Caribbean’s economy and strengthen relationships.

He said: “The Bahamas is open for business and hopes to do more business with you. On the heels of this trade mission, I hope that Jamaica and The Bahamas can be shining examples in the region of what we can accomplish when we work together. Caribbean integration, regional trade and the promotion of Caribbean business as a whole must be what we base our future prosperity on.”