The agreement was announced recently by Lawrence Cannon, Canadian Minister of Transport, Infrastructure and Communities, and David Emerson, Canadian Minister of International Trade, and Minister for the Pacific Gateway and the Vancouver-Whistler Olympics.

"This is Canada's first Open Skies-type agreement in the Caribbean region and signals another step forward in providing greater flexibility for air services for passengers, businesses, air carriers and airports," announced Cannon.

"I am pleased with the outcome of these negotiations, marking another bilateral air services agreement achieved under Canada's Blue Sky policy," he added.

The new agreement allows airlines to provide scheduled air services as frequently as desired between cities in Canada and Barbados. This agreement also allows airlines to react quickly to market conditions by more effectively adjusting prices. In addition, airlines from both countries will have greater flexibility in offering flights (passenger and cargo) to and from third countries, with the gradual phase-out of all limitations.

"Canada greatly values its close, long-standing relationship with Barbados," commented Emerson, adding that Canada is celebrating the 100th anniversary of the Canadian Trade Commissioner Service's presence in Barbados this year.

"The new agreement will provide a stronger basis for competitive air services. We anticipate this will generate even more growth in trade, tourism and investment," Emerson added.

The new agreement also provides all-cargo air carriers with greater options to facilitate and expedite the flow of cargo between both countries, and third countries, including those in the Caricom region.

Caricom countries include Antigua and Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, Saint Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago.

The new agreement also builds on Canadian Prime Minister Stephen Harper's visit to the Caribbean region in July 2007, when he outlined Canada's re-engagement in the Americas as a critical, long-term international priority for the government.

In 2007, trade between Canada and Caricom members, including Barbados, was CAD2.2bn (USD2.2bn), a 20% increase from 2006.

Canadian merchandise exports to Caricom totalled CAD725mn and merchandise imports from Caricom totalled CAD1.47bn.

In 2006, 25,600 Canadians travelled to Barbados, while the Caricom region received more than 251,100 Canadian tourists in 2006.

The new provisions are to be applied immediately. Once ratified, the new agreement will replace the 1985 agreement currently in force.