EDITORIAL

Barbados-Canada relations vital

Barbados has had a very productive relationship with Canada over the course of the last 50 years. This point was borne out during the recent discussions by representatives of both countries.

Now as this country looks to deal with economic challenges, it may be useful to see where Canada can be of further assistance.
The two countries are part of the Commonwealth where they have interfaced regularly at Commonwealth meetings. Over the past four decades, Barbados has benefited enormously from these relations.

Research has shown that Canada has given Barbados support in key social sectors such as water, health care, and education. A significant share of that assistance was funnelled through the Canadian International Development Agency (CIDA).

Several Barbadians have found jobs in the Canadian Farm Labour programme and the Barbadian relatives of those who have migrated to that country and the local economy have benefited from remittances. When attempts were made to forge an oil industry here, Petro Canada International stepped in at the request of the then Tom Adams administration to give guidance to those efforts, with both finance and technical expertise.

Canada remains a key source for long-stay visitors to Barbados, with that country being among the top three as a source market.

Former Canadian Prime Minister, Bryan Mulroney, on an official visit to Barbados in the late 1980s, announced the write off of some debts which this country and the Caribbean had owed Canada. Canadian companies account for a large share of the entities making up the Barbados’ International Business and Financial Services sector. This made Barbados the third major country where billions of dollars of Canadian investments are managed. In setting up the Barbados Stock Exchange (known in the early days as the Securities Exchange of Barbados) Canadian expertise was utilised in that undertaking. Their banks predominate in Barbados.

Canada has created a facility known as CARIBCAN which allows for exports from Barbados and the Caribbean to enter that market duty-free. That agreement has incurred the wrath of some countries within the World Trade Organisation (WTO), but in light of the two sides not being able to conclude a new economic development arrangement which will see an end to CARIBCAN, there has been a waiver that allows for its continuation.

However, there are some things that need to be pursued. Last year Canada pledged US$100 million to assist Caribbean countries affected by hurricanes and climate change.

In their recent discussions, Canadian officials pledged a sum of Bds$7.2 million (Cn$4.8 million) to empower women in Barbados and across the Caribbean, thus underlining the strong ties between the two states. These are positives which will be embraced by the region.

Canada represents many Caribbean countries on the Board of Governors of the World Bank and the International Monetary Fund (IMF). These countries have become ineligible for soft loans on account of their increase in per capita income. It is recognised globally that this yardstick should not be used to gauge the development of countries, particularly in a region that is very vulnerable to disasters and climate change. Here it is expected that Canada can make a case for the region, simply because these islands need finance to rebuild their economies following the impact from the world’s economic crisis.

Barbados Advocate

Mailing Address:
Advocate Publishers (2000) Inc
Fontabelle, St. Michael, Barbados

Phone: (246) 467-2000
Fax: (246) 434-2020 / (246) 434-1000