The Tribune

BY NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

FREEPORT’S free trade zone status and the Grand Bahama Port Authority (GBPA) are not in violation of any World Trade Organisation (WTO) membership rules, a Cabinet Minister says, arguing that the Bahamas could be significantly disadvantaged compared to regional counterparts if it does not join up.

“We have done the research and analysis on that, and we are comfortable that the current regime that we have now does not violate the rules,” said Financial Services Minister, Ryan Pinder.

“Many WTO countries have free trade zones. We’re also comfortable that the governance structure of the Grand Bahama Port Authority is not in violation of any rules for membership.”

Mr Pinder said the Bahamas could find itself significantly disadvantaged in world trade if it does not accede to the WTO.

“We could actually be disadvantaged, for instance, with Canada, if the Canadian trade agreement doesn’t conclude. It’s an empowering opportunity for businesses and those that want to participate in international trade. We are continuing the WTO accession process, which is more than 10 years old now,” said Mr Pinder.

Referring to the Canada trade agreement, Mr Pinder said: “Under the trade agreement with Canada, which expired at the end of last year, we would have received duty free access to Canada. Morton Salt exports to Canada under the agreement.

“Without the agreement we would have had to go to default trade, and the tariff rate which is 35 per cent. If there is a salt company in Jamaica who is a WTO member, they would trade at 5 per cent, we would be automatically cost disadvantaged, and it would essentially close off the market in Canada to someone like Morton Salt or our crawfish exporters, for example.

“With that process with Canada being an uncertainty, being that we are not WTO members and don’t get access to the preferential duty rates, some of our industries could be jeopardised. We look to be able to access those markets; that’s the purpose of the WTO process, gain access to those markets for our businesses.”