Trade Liberalisation Is Crucial To Bahamian Prosperity, Says Ex-Minister

by Amanda Banks, Tax-News.com, London

19 April 2004

An expert in economics and trade liberalisation has urged the Bahamas to embrace initiatives promoting free trade if the jurisdiction's economy and financial services sector are to continue to flourish.

Addressing the Bahamas Chamber of Commerce last Wednesday, former Minister of Economic Development Zhivargo Laing told the audience that the Bahamas is one of the “freest trading societies” in the world and international trade has given the jurisdiction “access to levels of income and wealth that have enabled us to fund a standard of living envied by peoples in both developed and developing countries.”

Mr Laing noted that the necessary changes to the tax system, competition laws and regulatory system that will be brought about by the Free Trade Area of the Americas agreement will likely be "costly and painful”. However he warned that any obstacles put in the way of foreign investment or immigration, particularly in the financial services sector, would have a “devastating effect” on the local economy.

"The Bahamas can say from experience that free trade combined with relatively disciplined monetary and fiscal policies have served it well,” observed Laing.

"Given this experience, it is reasonable to believe that further free trade, under the right conditions, can further benefit the nation," he added.

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