The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Cabinet minister yesterday urged Bahamian businesses and consumers to “not get fixated” on World Trade Organisation (WTO) membership for fear it will “hijack” and “derail” efforts to develop a broader National Trade Policy.

Michael Halkitis, minister of economic affairs, told the first public consultation on the policy that efforts to reposition the Bahamian economy through trade encompass a much wider agenda than the long-standing issue of whether this nation will finally complete the accession process to become a full WTO member.

The Bahamas’ stop-start effort to accomplish this now spans more than two decades, having begun in 2021, but he voiced concern that the often emotional and knee-jerk reaction to the prospect of joining the world’s rules-based trading watchdog - with businesses and workers fearing they will be overwhelmed by foreign competition - could threaten to overshadow and disrupt efforts to reinvigorate this nation’s economy by expanding its trade capabilities.

Asked by Edison Sumner, the former Bahamas Chamber of Commerce and Employers Confederation (BCCEC) chief executive, whether full WTO membership remains on the Government’s “to do” list, Mr Halkitis said its approach will be guided by what the private sector and public believe to be in their best interests.

“Our objective is to have the best possible outcome for The Bahamas, its economy and its people,” the minister said of the National Trade Policy’s development. “What we do in terms of membership in any organisation will be based on what the stakeholders, primarily the business community and consumers, bring to us. They identify opportunities where they can take advantage.”

Pointing out that “there are many steps that have to be taken” to reform The Bahamas’ present trading regime, and make it internationally competitive, regardless of whether full WTO membership is being sought, Mr Halkitis added: “I don’t want in this conversation, and let me be very frank, and I’ve said this privately and publicly....

“When you’re talking about trade there’s a very real risk the conversation will be hijacked, and goes off the rails, and 20 years later you are no further ahead in improving your performance locally, standards and protection for your people.” Asserting that the current National Trade Policy consultation is “a beginning”, Mr Halkitis said its outcome will help “decide what provides the best results for the Bahamian people”.

“I’ve said before that the WTO accession is not the only outcome of this sort of trade discussion,” he added, asserting that the real focus is to increase goods and services exports via existing trade agreements such as those that exist with the US (Caribbean Basin Initiative), CaribCan (Canada), and the Economic Partnership Agreements (EPA) separately with the UK and European Union.

“The WTO, I don’t want to go away with the feeling this is a WTO discussion,” Mr Halkitis said. “This is a trade discussion. WTO is one aspect out there. At the end of the day, if stakeholders believe this is an opportunity out there, this is something we will pursue. It’s not our view to impose or drive a particular agenda. This is about identifying how the Bahamian public will benefit.”

The prospect of full WTO membership has often been viewed negatively by many in the private sector, who perceive that the accession terms will force The Bahamas to open up multiple industries to foreign competitors with superior economies of scale and access to capital, thus putting local companies out of business. There is no guarantee that this would be the outcome, though, and trade advocates say that such fears are massively overblown.

However, WTO did not go away at yesterday’s consultation. Mr Halkitis, replying after the accession issue was raised for a second time, said: “There are many opportunities other than WTO to increase our exports of goods.” He reiterated his position that the National Trade Policy should not be overshadowed by the issue, and “past discussions of negativity and all we’re talking about is the WTO”.

“This is much more than that,” Mr Halkitis said. “An excellent outcome would be training for our people, increased access to trade opportunities, upgraded intellectual property rights protection, which is very important to creatives, and improvements in standards. I don’t want people to get fixated on the WTO or that this is a way to accede to the WTO. It’s a big world out there......... This is not a WTO trade-specific policy.”

The minister said the Government was hoping to receive feedback on its draft National Trade Policy by July’s end or “as close to that as possible”, indicating that he and the administration are seeking to rapidly advance the effort.

Philip Galanis, chair of the newly-reformed Bahamas Trade Commission, which relaunched on Wednesday, said the target was to submit the finished policy document to the Davis Cabinet for its deliberation and approval by the 2022 third or fourth quarter.

“We’re not just going to talk the talk. We’re going to walk the walk,” he added, promising that the Bahamian private sector will drive trade policy rather than the Government.