The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Obama administration believes the Bahamas will face “external and internal challenges” to becoming a full World Trade Organisation (WTO) member, with this nation’s preferential trade regime with the US set to expire at year’s end.

The US State Department, in its 2015 investment climate report on the Bahamas, warned that the one-way trade preferences this nation enjoys with the US could be under threat when their WTO ‘waiver’ expires at year’s end.

The report warns that it is uncertain whether the Caribbean Basin Initiative (CBI) will receive another WTO waiver, which could impact key Bahamian exports and foreign exchange earners such as Polymers International’s styrofoam products.

“There is no Bilateral Investment Treaty (BIT) between the Bahamas and the United States,” the US report says.

“The benefits under CBI provide products manufactured in the Bahamas that meet defined rules of origin duty-free and quota-free entry into the US, such as the country’s largest export to the US, polystyrene beads used in the production of Styrofoam products.

“The Bahamas continues to use this access guaranteed by waiver from the WTO as an incentive for investments in manufacturing in the domestic economy. The CBI agreement expires at the end of 2015, and prospects for an additional waiver are unknown at this time.”

The US State Department added that the Bahamas had also “applied for benefits under the Caribbean Basin Trade Partnership Act (CBTPA), but as of April 2015 had not yet met all of the requirements for its application to be ratified”.

The report acknowledged that the Bahamas remained the only Western Hemisphere nation to become a full WTO member, and warned that this nation would encounter challenges in acceding to this status.

“The Government has committed to accelerating its efforts to acquire full membership, which will require it to remove barriers to international trade and take further steps to facilitate foreign investment and bolster intellectual property rights,” the US State Department said.

“These goals are commendable and vital to economic growth, but the Government likely will face continued internal and external challenges to their successful implementation.”

On the issue of intellectual property rights (IPR), the report added that the Bahamas was “taking positive steps to strengthen” protection in this area, as shown by the recent tabling of legislation in the House of Assembly.

“The Bahamas is a member of the World Intellectual Property Organisation (WIPO) but has not ratified the WIPO Internet treaties,” the US State Department said.

“There is no legislation relating to geographical indications, rules of origin, or technological protection measures, and there are recognised shortcomings in the current industrial design and patents legislation.

“To this end, the Government has implemented a ‘Plan of Action’, which includes proposed legislative amendments to address gaps in the current legislation,” it added.

“The goal of the proposed amendments is to provide greater IPR protections and more stringent penalties for violations. The new legislation would bring the Bahamas into compliance with the terms of the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), as well as its obligations under the Economic Partnership Agreement (EPA).”