With the government in the midst of its World Trade Organization (WTO) negotiations, manufacturing and agriculture are just some of the industries that are "very concerned" with the liberalization of trade, saying that it will leave them "extremely vulnerable" to the importation of goods.
Though it's an "exciting" time in the area of trade for the country, Chairman of The Bahamas Trade Commission Philip Galanis stressed that these negotiations require a delicate balancing act. And while he admits that it might be quite some time before The Bahamas receives WTO accession, progress is being made.
"It really creates a dichotomous situation, while we understand the needs and concerns of the producers, the government also has to take into account the needs of citizens who want products at a cheaper price," he said.
"Egg producers are very concerned because there is an excess of eggs in the Bahamian market presently. Part of the reason is because the food stores are saying that they can buy eggs cheaper from the U.S.
"So they feel threatened or vulnerable to what's happening. They are hoping that the government will help them in a way, either by increasing tariffs on imports, or limiting the number of importation."
Galanis was speaking at the Bahamas Institute of Chartered Accountants (BICA)'s Accountants Week on the topic "Regional Comparisons & Initiatives, Reciprocity Agreements, WTO, GATS & CARICOM Perspectives" at the Sheraton Nassau Beach Resort yesterday.
While the concerns that have been voiced to him are legitimate, Galanis believes at the end of the day the pros of international trade agreements like WTO and the Economic Partnership Agreement (EPA) far outweighs the cons.
"We want to help accountants to understand what does WTO mean for them, whether it's cross border trade, where people will be able to come to The Bahamas and provide services. How is that going to impact the profession? Is it something that they should be concerned about?" he said.
"I don't think it is, but I believe that some people have that fear with the opening up of the borders and the liberalization of trade. That means local professions, not only accountants, might see their business being adversely impacted by foreign competition. I think just the opposite is true.
"With the liberalization of trade, what we are likely to see [is] the levels of income increase, the level of investment increase, more opportunities for Bahamians not only at home but also abroad."
Like value-added tax (VAT), Galanis said WTO negotiations are very much in the early stages. However, the EPA's negotiation process has been accelerated.
"It's a very exciting time in the area of trade because a whole lot of things are coming together now, EPA, WTO, VAT, tax reform. All of these are timely and they are coming almost in a way where the hand fits the glove and hopefully it's going to be a comfortable fit," he added.
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