By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Bahamas’ chief WTO negotiator has urged businesses to identify overseas markets this nation should target, arguing it has “billions of dollars” in untapped trade potential to unleash.
Zhivargo Laing, the former minister of state for finance, told Tribune Business in a recent interview that the Bahamian private sector needed to proactively identify goods and services export opportunities that would secure its future growth in the World Trade Organisation’s (WTO) rules-based trading environment.
Disclosing that other countries were already approaching The Bahamas on behalf of their own industries about opportunities in this nation, Mr Laing said this nation was already fully engaged in international trade as highlighted by its $473.335m worth of goods exports in 2017.
He argued that full WTO membership will provide the platform for the Bahamian private sector to expand beyond this nation’s borders and grow gross domestic product (GDP) by millions of dollars, since it will provide “certainty and fair treatment” for both local and international investors.
Mr Laing said The Bahamas would better secure market access for its products, services and exporters under the WTO’s rules-based regime, while foreign investors will have more clarity over which industries they can invest in and the rules protecting their capital.
“One of the things I said to the Chamber is that we’re getting requests from countries for bilaterals, as they have a particular interest to pursue [in The Bahamas],” the Government’s chief WTO negotiator told Tribune Business.
“I invite the Chamber and private sector to tell me the areas you believe that we should seek audiences with countries to advance the business interests we have.”
Having emphasised that trade is a two-way street, and that the private sector needs to drive the Government in seeking out future export-led growth opportunities, Mr Laing said The Bahamas was already heavily integrated into the global economy.
Completing this process by finishing The Bahamas’ 17-year WTO accession process, he argued, would unlock further trade and investment opportunities that will fuel economic growth and diversify the economy away from its “twin pillar” reliance on tourism and financial services.
“If you understand the full story of The Bahamas’ trading profile you will know we have lots of trade: $400m-plus in goods exports, and $3bn worth of imported goods, and billions of dollars of goods and services potential we can still have,” Mr Laing told Tribune Business.
“Without question The Bahamas is an existing trading country, both on the goods and services sides, and has the potential to be substantially more. That said, The Bahamas needs to preserve what we have, enhance what we have, and develop ourselves further....
“Membership of the WTO does that as it gives you a more certain platform for both the goods side and the services side, and the investment environment. That’s good for Bahamian and foreign investors, more local business ownership, more entrepreneurial opportunities and more wage opportunities,” he continued.
“All these opportunities are enhanced by participation in the WTO. In addition to that, business people in The Bahamas put up millions and millions of dollars in import tariffs up front to import items. Under WTO membership that will be reduced substantially.
“I want you to ask yourself: What will businessmen do with millions and millions of dollars in capital freed up? The potential for that freed up capital is enormous.”
Mr Laing argued that full WTO membership, which The Bahamas hopes will be ratified by mid-2020, will ensure this nation “does things for ourselves” in modernising the Bahamian economy through initiatives such as competition law and intellectual property rights protection that will help domestic businesses to grow.
“Your competition rules, your intellectual property rights, all of the things Bahamian business people want to happen to give them transparency and certainty in operating in the country will extend to international investors,” he added. “You make the jurisdiction more attractive for doing business as a Bahamian and international person.”
Mr Laing said one disadvantage of The Bahamas being the last western hemisphere nation to join the WTO was that other countries are able to discriminate against it at will, and potentially deny market access to its goods and services exports - as happened when Polymers International sought to export to Mexico.
“Here’s what is true today,” he told Tribune Business. “The Bahamas does not have Most Favoured Nation status as a country because it is a non-WTO member. The US, for example, is not obligated to treat The Bahamas in the same way as a member of the WTO in respect of accessing its market.
“It makes your jurisdiction less attractive for investment than it otherwise could be. Upon joining, you will have that MFN status. Companies in The Bahamas can then use that to their advantage in accessing the market.” ‘MFN status’ means a country cannot be treated less favourably in comparison to other nations by a trading partner under WTO rules.
Mr Laing added that WTO membership will encourage increased cross-border trade by Bahamian companies “on a platform of certainty and fair treatment for Bahamian businesses”.
The Government has made clear it views accession as a key element in its plans to break out from the Bahamian economy’s low growth/high unemployment cycle that has persisted since the 2008-2009 recession.
It sees the move as part of efforts to deregulate and liberalise the economy, restructuring it towards new foreign exchange-earning opportunities, and reducing reliance on tourism and financial services while generating more jobs.
Not everyone agrees with this strategy, though, as opposition to WTO membership was among the many grievances aired by demonstrators on last week’s march to the House of Assembly.
Comments
DDK 5 years, 11 months ago
What a crock!
TalRussell 5 years, 11 months ago
Going deep inside dream head ma comrade Zhivargo's as he prepares go from scratch to be's unlocking Billions and Billions - is force gravity sufficiently capable pops one's belly button right out - not knowing if former defeated red junior minister turned talkie radio host and one time heir Papa Hubert - that is before Papa he self suffered governing setback - if he does mean send we belly buttons to the upper stratosphere or lower troposphere we earth? ( No way be making such up }.
Funny Carl Sagan ~ Billions and Billions of Laughs -
.......////https://www.youtube.com/watch?v=kjK3Jh1S1o4
BahamaPundit 5 years, 11 months ago
He didn't say a single tangible thing. Just words. Just hopes and dreams. Just wishful thinking. Any person reading this would think this guy has a vivid imagination. He wants to enter WTO in the hope and dream that Bahamians will one day invent something worth trading globallly. Mr.Laing should sell bridges to nowhere. He's good at that.
BahamaPundit 5 years, 11 months ago
The funniest point I get from this article is the Bahamian motivation behind joining WTO is to increase foreign direct investment. Not to create anything. Not to trade anything. But to get more handouts and borrow more. This majority rule lot are so addicted to borrowing. They are obviously joining WTO for completely the wrong reasons.
ThisIsOurs 5 years, 11 months ago
"#“One of the things I said to the Chamber is that we’re getting requests from countries for bilaterals, as they have a particular interest to pursue [in The Bahamas],” the Government’s chief WTO negotiator told Tribune Business."
This is what I believe this is all about. We're being encouraged to do this thing for all the benefits it will bring us when all that's happening is the other guys are chomping at the bit looking at how they'll bring their company here to exploit an untapped market. Possibly already in discussions with Bahamian interests involved in pushing this thing. If our guys are just being encouraged to "find" something to sell abroad, we've lost the battle already. Abolishing The immovable properties act sounded good at the time too, it would bring in a lot of capital into the country, and it did! But what good did it do the average Bahamian? We can't buy land anymore. What story will be told when this lock is removed? We can't afford to open businesses anymore? The others are too big.
Sickened 5 years, 11 months ago
Yup. Seeing that there is no more lending being done in The Bahamas to Bahamians (only for buying cars and holiday shopping), these foreigners are going to roll in here with their ability to borrow at 0.75% (for CHF) and will be building/growing/producing things that we can't even dream of BECAUSE WE CANT BORROW MONEY AT AN AFFORDABLE RATE!!!
BahamaPundit 5 years, 11 months ago
And nobody pushes policy in The Bahamas like a Bahamian politician fronting for a foreign company. Ever seen a Bahamian fronting? They act like they're king of the world and have the most honorable intentions! When will these people get a life and stop frigging begging!
BahamaPundit 5 years, 11 months ago
I wish Mr. Laing would tell us which countries are seeking these bilateral agreements. China anyone?
John 5 years, 11 months ago
"The Bahamas’ chief WTO negotiator has urged businesses to identify overseas markets this nation should target, arguing it has “billions of dollars” in untapped trade potential to unleash."
The key words here are. 'trade" and "potential". There are only about 10 or so countries around the world that have not yet joined on to this organization. So what will change? Except the bigger and powerful nations will continue business as usual and the smaller and less powerful countries, like the Bahamas, will be forced and bullied into toeing the line. For example, the agreement says in the time of crisis, like a hurricane or earthquake or even an uprising, member nations must relax their immigration laws and allow the free movement of peoples in the affected countries to cross their borders. Another article of the treaty says that member states must share their excess products with other member nations. So if oil was found here or it is determined that the Bahamas has excess fisheries or even aragonite, they cannot automatically implement control and preservation measures, but must first meet the needs or other member nations. So the world will be like one big socialist nation, share and share alike. Less autonomy.
DWW 5 years, 11 months ago
Sorry did I miss something? All of a sudden we are a resource powerhouse? In so confused. So is everything I was taut in grade school bollucks?
birdiestrachan 5 years, 11 months ago
Never mind Laing doc believes he has to eat, he has to sleep. so he gave him something to spin. It means nothing zero.
ohdrap4 5 years, 11 months ago
birdie, did you slip your koolaid into this guy's Monavie?
TalRussell 5 years, 11 months ago
Maybe too many homebaked for medicinal assistance edible marijuana brownies got me wrongly hearing how just week back - Zhivargo was telling comrades in he red shirts circle - how he was all red objective confused and prepared resign he appoint as Minnis's lead WTO negoitor?
Chucky 5 years, 11 months ago
Ain't nobody gonna admit that we ain't got no cooperative workforce to allow us to compete in open market .
We all cry bout foreign people, especially Haitians being here doing "our work" .
Them foreign all here cause they can and do work that we ain't willing to do, or we ain't do good. Or even proper.
How many times you here your fellow Bahamian say "my hatian" it cause every Bahamian know dry better.
WTO AIN'T GONNA WORK FOR US
We can't even make our own souvenirs for the tourists that come. What y all tink we gonna make and export?
Maybe we can export our crime, laziness, and attitudes
John 5 years, 11 months ago
My personal belief is that even though membership into the WTO may be voluntary, there is going to be some serious arm twisting and balls-busting for the few countries that do not join. Donald Trump has already told the UK that its (the UK's) exit from the European Union means that the US will be doing less trade with it. And lest we forget Haiti when it had the second most booming economies in the Western hemisphere. France then invited Haiti to "buy its freedom" and preserve its independence for $21 Billion dollars. Unbeknown to Haiti, France had secretly entered into agreements with all other countries not to do trade with Haiti, thus collapsing its economy and making it impossible to pay off its debt.
John 5 years, 11 months ago
And the controversy continues to today: "The Haiti indemnity controversy culminated in an agreement by Haiti to a 1825 gold demand by ... In 2003, President of Haiti Jean-Bertrand Aristide demanded that France pay Haiti over 21 billion U.S. dollars, ... in today's money of the 90 million gold francs Haiti was forced to pay Paris after winning its freedom from France."
Sickened 5 years, 11 months ago
We already trade with countries in the WTO. I have never heard of us getting a raw deal or terrible terms. When we buy stuff from the U.S., we pay the same as people from any other country. When we sell our crawfish to the U.S. we sell at a negotiated market price.
The_Oracle 5 years, 11 months ago
Head negotiator and I also understand has a Marketing contract for the (pro) Govt Position? Can anyone confirm this? Sounds a little "conflicted" if so. At least the Chamber may do some real Private sector consulting, all the Min of Finance has done is Insult everyone by claiming secrecy prevents disclosure! Aka those in the dark being led by those who keep them there. Asinine. This is a road map we are following with the little wiggle room the Bahamas long ago frittered away by GOVERNMENT inaction and secrecy. Even today the innuendo and language obfuscates, with no clue as to the effect. No Business can plan or project in this environment.
Well_mudda_take_sic 5 years, 11 months ago
Laing is as dangerously stupid as they come, and for all Bahamians (including me) that's no laughing matter!
BahamaPundit 5 years, 11 months ago
I don't think he is necessarily stupid. He is very quick on his feet. I think he just needs mentoring and more experience. His problem is that he has always been told he's very smart, so he has not been challenged and shaped to ground his arguments and his mentality. He has hung around the wrong types of people and not been challenged enough. He has potential, but he appears to have a racial bias that clouds his judgement. He watches too much MSNBC and CNN.
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