The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Government was yesterday urged to "put our house in order first" and remove the competitive disadvantages facing Bahamian businesses prior to joining the World Trade Organisation (WTO).

Robert Myers, a principal with the Organisation for Responsible Governance (ORG, told Tribune Business that the Bahamas would "not be ready" to accede to full WTO membership unless the Government enabled local businesses to compete on a 'level playing field' with foreign rivals.

He identified the relatively high cost of capital (interest rates) for Bahamian businesses, and exchange control restrictions, as key obstacles that needed to be relaxed before this nation opened its markets and industries to foreign companies.

"We're not ready for it until such time that government can remove the competitive hurdles out of the way of Bahamian businesses ahead of that accession, otherwise you are going to put Bahamian businesses and services at a complete disadvantage to foreign ones," Mr Myers told Tribune Business.

"Due to the restrictive nature of our banking, our debt is regionally higher; exchange control prohibits us from being able to function effectively or efficiently in other nations; and you are essentially making it easier for foreigners to have foreign accounts than locals to have foreign accounts and operate in local jurisdictions. The banking interest rates, complexity and exchange control are two huge hurdles."

Mr Myers was speaking after Tribune Business revealed that the Minnis Cabinet has approved an "aggressive" push for the Bahamas to become a full WTO member by 2019.

Brent Symonette, minister with responsibility for trade and industry, confirmed to Tribune Business that the WTO process was among the Minnis administration's priorities as it seeks to re-position the Bahamian economy for growth via liberalisation and deregulation.

Mr Myers, meanwhile, said, is the Bahamas' ease and cost of doing business was another obstacle to the ability of its economy, and companies, to compete in a rules-based trading environment.

"You have to be very careful that you put your house is order before you allow others to come into the Bahamas and compete," he told Tribune Business. "It is the movement of goods and services. It is important for us to be in an advantageous position. To do so otherwise is just going to jeopardise Bahamians and their ability to compete.

"I think that there is a tremendous amount of opportunity for Bahamians to go out and compete. There is a tremendous opportunity for Bahamians to go out and expand their portfolios in the Caribbean, but not when we are handcuffed by our own government."

Mr Symonette told Tribune Business that becoming a full WTO member was part of the Government's strategy to overhaul the Bahamas' current economic model, and open up new GDP growth possibilities by attracting new industries and businesses to domicile in this nation.