The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Bahamas must resolve all its 'ease of business' weaknesses before joining the WTO, the Chamber's chief executive warned yesterday, as he issued an "all hands on deck" call.

Edison Sumner told Tribune Business that acceding to full World Trade Organisation Organisation (WTO) membership by 2019 is "where the rubber meets the road" for the competitiveness of Bahamian companies and the wider economy.

Emphasising that the Chamber of Commerce backed the Government's decision to complete the world's longest WTO accession process, Mr Sumner said it was of "paramount importance" that the Bahamas address its structural woes prior to joining.

He identified labour productivity, energy costs, the tax structure and Business Licence process as just some of the problems that have to be tackled if the Bahamian private sector is to have the platform to compete against foreign rivals in the WTO's rules-based liberalised trading environment.

Mr Sumner also said it was "regrettable" that the Bahamas had failed to properly reform its economy, and prepare Bahamian companies for what is to come, in the 16 years since it first signalled its intention to become a full WTO member.

He added that this country "can't point" to any advantages from its "hold out", after the first Ingraham administration started the accession process in 2001, and joked that "vacations may be over" for both the Government and private sector given the amount of reforms - and speed at which they need to be enacted - to meet the 2019 deadline.

"Of paramount importance, when we look at the competitive landscape, is that we must take measures to improve the 'ease of doing business'' in the Bahamas for Bahamian businesses," Mr Sumner told Tribune Business.

"We must improve the cost of doing business, we must improve our labour productivity and skills, we must improve the cost of energy, the Business Licence process has to be reviewed and improved, our tax structure needs to be looked at.

"There are a number of issues internally and domestically that must be looked at before we enter the WTO. We have to be sure that the issues we are facing now as a country relating to the growth of the economy, relating to our competitiveness, whether we have a competitive edge in certain areas and are looking to develop new industries, we have to get on a square footing before we enter the WTO. These must be addressed with priority and urgency before we even sign the papers for WTO."

Mr Sumner's comments, albeit perhaps more diplomatically, echo the concerns previously expressed by former Chamber of Commerce chairman, Robert Myers, who last week told Tribune Business that Bahamian companies will "have our backside handed to us" unless the Government "aggressively" undertakes key reforms prior to joining the WTO.

He, too, warned that the local private sector would be "seriously damaged" if the Minnis administration fails to implement fiscal, monetary and energy sector changes that place it "on a level playing field" with foreign rivals.

Tribune Business revealed last year that the Cabinet had decided to complete the WTO accession process by 2019, a deadline viewed by many as too aggressive and unrealistic given the scale of preparations required to ready the Bahamian economy and companies for this change.

Mr Sumner, though, said this deadline was achievable provided there was "a very aggressive and sustained campaign" by both the Government and private sector to reform and negotiate the best possible accession terms.

"Given that we've been at this for 16 years, it's not unrealistic to achieve this objective," he told Tribune Business. "It just means that there has to be a very aggressive campaign, and a very sustained campaign, over the next year.

"Domestic challenges must be addressed efficiently, addressed quickly. These are issues that must be resolved if we're talking 2019, which is less than a year away. This means we've got to set an extensive, aggressive agenda on ourselves to make sure we get things resolved in the domestic environment. That means all hands must be on deck.

"Whatever we do must be of benefit to the Bahamas and Bahamian businesses. Anything otherwise will be doing a grave disadvantage not only to our business community and generation, but to future generations."

Mr Sumner lamented that the Bahamas had failed to exploit the 16 years since it applied for full WTO membership to modernise and overhaul its economy, suggesting it had squandered an opportunity to prepare for a liberalised trade environment.

"It's regrettable that 16 years later we don't have resolution to a number of these issues," he said of the economy's flaws. "We haven't made the best use of it. We've got nothing much to show for it.

"We can't put our finger in anything to show we've made advances in this. We're the only country holding out [from WTO membership]. There are so many issues that we have to deal with and address. We talk about competition. This is where the rubber meets the road."

Mr Sumner urged all Bahamian citizens and businesses to become involved in the "national dialogue" that is essential to enabling this nation's negotiating team craft the best terms and conditions for WTO entry.

"Don't stand on the sidelines," he told Bahamians. "I believe the country will benefit from different perspectives, different levels of participation. I just would encourage all persons to get involved in the process, and make your voices heard - your suggestions and recommendations. We want as widespread a consultation and feedback as possible."

The Chamber of Commerce chief executive added that the aggressive WTO accession timeline meant both government and private sector would have little rest over the next two years, and said: "Those at the wheel will hardly have any time to rest. Vacation may be over for a while, at least until we complete the process."