The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Bahamas’ World Trade Organisation (WTO) accession strategy must balance the needs of different industries to minimise any negative impact, the Bahamas Chamber of Commerce’s (BCCEC) chief executive said.

Edison Sumner, addressing a breakfast at the British Colonial Hilton, said full WTO membership will not produce benefits by itself without a business environment which allows the private sector to operate competitively.

“WTO membership may result in the Bahamas providing concessions to appropriate and qualifying local industries while also lowering customs duties on imports,” he said. “This is a considerable benefit for an economy that is reliant on foreign imports and seeking to develop local sectors which drive broad economic value.

“Reduced rates on imports will assist producers who import raw materials and inputs. This has the ability to expand the range of final products and services that are made by domestic producers, and it increases the range of technologies they can use as well.

“Additionally, this will lower the cost of consumer products and, therefore, lower the cost of living and the cost of doing business for the business community.”

Mr Sumner added: “The BCCEC recognises that an isolated reduction in import taxes will result in a revenue shortfall for the Government. The BCCEC appreciates that the Government must seek alternative income to replace the lost revenue, but believes that the introduction of any new tax or increase in existing taxes must be carefully evaluated and include active public consultation.

The Chamber chief executive said key sectors that contribute significantly to the Bahamas’ economic growth must be protected. “It is important to recognise that regardless of how appropriate concessions and taxes intended to discourage imports are, they are in fact subsidies provided by the Bahamian consumer and business,” he said.

“The BCCEC must, therefore, ensure that all concessions and import taxes designed to protect a local sector result in greater economic growth. The BCCEC, therefore, supports a WTO accession strategy that will identify, through public consultations and verifiable research, current and future sectors of the economy that are deemed crucial to the nation’s long-term growth and stability so that they remain protected for generations to come.”

Mr Sumner added: “WTO accession does not mean the indiscriminate opening of our borders to foreign participation; rather a deliberate and intentional positioning of the Bahamas to take advantage of global trade opportunities. The level of market openness to be achieved is what is ultimately negotiated with our trading partners through the accession process.

“If market openness beyond a certain point would damage the business community’s competitive position, the negotiators need to be properly informed so that this can be taken into consideration and expressed at the negotiating table. In the WTO accession process, we get what we negotiate.”

Mr Sumner also reiterated the need for a continued focus on improving the ‘ease of doing business’ in the Bahamas, and praised the Government on recently-announced initiatives in this area.