A prominent Queen's Counsel has urged the government to not let the potential economic opportunities that could be found in arbitration and mediation "slip between our fingers for inactivity".
Fred Smith stated that he "100 percent" supports Minister of Foreign Affairs and Immigration Fred Mitchell's recent remarks over proposed immigration reforms for the trade. Speaking with Guardian Business, Smith applauded the government for mulling immigration reforms and possibly adopting legislation based on the United Nations Commission on International Trade Law (UNCITRAL) model law for arbitration, noting that Freeport is primed to become an arbitration and alternative dispute resolution hub for the country and the region.
Mitchell last week stated that the government intended to "consider" immigration reforms that would give parties involved in arbitration the right to be represented by legal practitioners and appoint arbitrators of their choice.
"I 100 percent support Minister Mitchell's push to pass a new arbitration act... This is the perfect storm of opportunity for Freeport. You'd need court stenographers; you'd need lawyers. And it would provide an opportunity for many of the law firms from the rest of The Bahamas to open branches in Freeport. The hotels would boom, the second home industry would boom.
"Creating an arbitral and mediation center in Freeport would be part of the answer to Freeport's economic woes," said Smith.
Mitchell stated that the Ministry of Foreign Affairs has completed preliminary steps required by the Netherlands' government for The Bahamas to become a member state of the Permanent Court of Arbitration and would eventually have to replace The Bahamas' Arbitration Act, 2009 with the UNCITRAL model law.
"My ministry is also cognizant of the fact that upon the enactment of the UNCITRAL model law in the jurisdiction of The Bahamas parties to arbitration will have the right to be represented by a legal practitioner of their choice. The government of The Bahamas will therefore consider immigration reforms, which will allow parties to arbitration the right to be represented by legal practitioners and appoint arbitrators of their choice," Mitchell stated.
Legislation based on the UNCITRAL model law has been adopted in 70 states in a total 100 jurisdictions. However, any changes to the country's immigration act -particularly as it relates to ingress and egress of legal professionals - would likely draw the ire of members of the Bahamas Bar Association, whose leadership has argued that the country's current processes for foreign practitioners were sufficient.
Smith, himself a certified arbitrator and mediator, felt that arbitration's success and prevalence in a growing number of jurisdictions necessitate a swift and decisive push from the government in establishing a regional center. Aside from amending the country's immigration legislation, though, Smith called on the government to introduce additional tax benefits to further promote investment in arbitration in Freeport.
"With the passage of domestic law to bring into effect the international trade law convention, and with the passage of a new arbitration act and opening the immigration doors, there really is a first-class opportunity for Freeport to take advantage of its position geographically and jurisdictionally.
"It is a great opportunity to create an entire homegrown industry for The Bahamas in Freeport," said Smith, highlighting that businesses could invest in Freeport customs and duty-free while enjoying further tax incentives, should the government decide to extend certain provisions of the Hawksbill Creek Agreement (HCA).
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