Canada, Barbados Near Agreement On Double Tax Treaty

by Robert Lee, Tax-News.com, London

10 September 2001

During the Canada Barbados Business Association (CBBA) annual general meeting last week Sandelle Scrimshaw, Canadian High Commissioner to Barbados and the Eastern Caribbean, indicated that a new double tax treaty between Barbados and Canada is about to be formalised by both governments.

The Barbados Advocate online news service has reported that Ms Scrimshaw, who labelled the Caribbean as Canada's 'third most important investment destination' with Canadian investment in the region at about $16.8 billion, confirmed that several sets of talks had taken place earlier on in the year. 'I have every reason to believe that the renegotiation of the Canada Barbados Double Tax Treaty will soon be concluded, to the satisfaction of both sides,' she said.

'What remains is to reach agreement on an appropriate period of guaranteeing the application of treaty benefits to international business and exempt insurance companies,' added Ms Scrimshaw.

The Commissioner also called for a more solid and in depth free trade agreement between Canada and the Caribbean Community (CARICOM). 'A free trade agreement with CARICOM would strengthen Canada's trade and political ties with the region's economies, and contribute to the shared goal of deepening economic integration within the Western Hemisphere,' she said.

Ms Scrimshaw also said that CARICOM countries like Barbados could provide Canadian enterprises with a much needed market for computer components and telecommunications equipment, and noted that demand also 'remains strong for more traditional Canadian exports such as food and consumer products.'

'Prospects for growth are also promising for products and services in the agri-food sector, energy (petrochemical and hydro), education, health, building materials and housing, transportation, environment and utilities (for example, water and sewage, waste management) and tourism,' she added.

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