Barbados

Australia and Barbados enjoy friendly relations, based on various historical, sporting, social and political ties. From January 1994 to June 2004, Australia's diplomatic representation in the Caribbean was based in Bridgetown, Barbados. The Australian High Commissioner now resident in Port of Spain, Trinidad and Tobago, holds non-resident accreditation to Barbados. Barbados maintains formal diplomatic relations with Australia through a High Commissioner resident in Ottawa.

Barbados has an activist foreign policy, recognising that its small size and limited resources oblige it to engage with other countries. Reflecting this, Barbados is a founding member of the Caribbean Community (CARICOM), the region's main political grouping, and is committed to regional integration. It hosts the headquarters of a number of regional bodies, including the Caribbean Examinations Council (CXC), Caribbean Development Bank (CDB), Caribbean Conference of Churches (CCC), and the Caribbean Tourism Organisation (CTO). Barbados has been at the forefront of efforts by CARICOM countries to create a Caribbean Single Market (CSM). Barbados is one of only two CARICOM countries (Guyana being the other) that recognises the Caribbean Court of Justice in its original jurisdiction (as a disputes mechanism for the CSM) and appellate jurisdiction (as the country’s court of last resort replacing the UK Privy Council).

Maintaining good relations with the United States is an important foreign policy focus for Barbados, and relations with other regional and global players are strengthening. However Barbados has been unwilling to sign an agreement exempting United States military and civilian personnel from action by the International Criminal Court. As a consequence, US military assistance to Barbados has been withheld since 2003. But cooperation with the US continues in other key areas, such as drug trafficking and counter-terrorism. An agreement was reached between Barbados and China in 2004, for the provision of Chinese financial assistance for the defence force.

In the international arena, Barbados is a member of the United Nations and its specialised agencies, the Organization of American States (OAS) and other agencies of the Inter-American system, the Commonwealth, the group of African, Caribbean and Pacific states (ACP) and the Non-Aligned Movement.

Barbados trades strongly with its CARICOM partners. Former Prime Minister Arthur was at the forefront of efforts to promote the Caribbean Single Market.

Along with Jamaica, Belize, Guyana, Suriname and Trinidad and Tobago, Barbados formally joined the Caribbean Single Market (CSM), on 1 January 2006. The CSM is intended to enhance export opportunities and attract foreign investment, by creating a single market among the participating member states. The main objectives are to achieve full use of labour (full employment) and full exploitation of the other factors of production (natural resources and capital), competitive production leading to greater variety and quantity of products and services to trade with other countries. This is intended to improve standards of living and work, and promote sustainable economic development.

Political Overview

Barbados is politically, economically and socially stable. The Democratic Labour Party (DLP) led by David Thompson won the most recent election in Barbados in January 2008. This ended the Barbados Labour Party (BLP) government of Owen Arthur which had been re-elected in 2003 for a third consecutive term.

Barbados is a parliamentary democracy. The Head of State is Queen Elizabeth II, represented by the Governor-General. It has a bicameral parliament comprising a 30-member House of Assembly and a 21-member Senate. The Prime Minister is the leader of the party with the most members in the House of Assembly. House of Assembly members are directly elected to represent single-member constituencies for a term of five years. Senators are appointed by the Governor-General: 12 on the advice of the Prime Minister, two on the advice of the Leader of the Opposition and seven by the Governor-General acting alone.

Economic Overview

GDP growth was 4.2 per cent in 2007, according to the country’s Central Bank. Barbados experience solid economic growth from 2004 t0 2007 driven by the construction and retail sectors, along with tourism and manufacturing. GDP growth for 2008 is expected to be around 1.7 percent. The financial sector is also prominent in Barbados. It is seeking to position itself as a gateway to the region and to Latin America.

Bilateral relationship

The Commonwealth provides the principal link between Australia and Barbados, and both countries are members of the Commonwealth Parliamentary Association. Sport, predominantly cricket, is also a major link in the bilateral relationship. Barbados was one of the Caribbean host countries for the 2007 Cricket World Cup, including the final, which was won by Australia. The Australian youth team also played in Barbados in 2008.
Both Australia and Barbados are members of the United Nations and many of its specialist agencies. We cooperate on a range of multilateral issues, including candidatures for multilateral bodies and we have liaised bilaterally on matters such as sharing information on taxation.

Bilateral economic and trade relationship

Trade between Australia and Barbados is modest, with the balance of trade in Australia's favour. In 2007-08 Australian merchandise exports totalled A$9.1 million, whilst imports from Barbados totalled A$1.2 million. Australia’s main exports to Barbados include coated flat steel, medicaments, milk and cream and alcoholic beverages. Australian imports from Barbados include alcoholic beverages, plastic articles, household equipment and orthopaedic appliances.

Export Opportunities

Possible opportunities exist for increased Australian trade and investment in Barbados. Food is a major import commodity for the country and opportunities exist in both the domestic and tourist markets. Processed food, beef, lamb, wine and dairy products are some of the sectors where opportunities might be pursued.

The tourism industry, in particular, provides a steady market for imports, much of which is currently filled by the United States. Over one million cruise ship passengers are expected to arrive annually in Barbados over the next five to 10 years. As most tourists are from Europe and the UK, there is already brand identification for Australian products. Australian exporters could also consider exporting to Barbados via distribution networks located elsewhere in the Caribbean. Australian know-how and expertise in hotel and resort development is another area with potential. It is estimated that Barbados needs a further 300-700 rooms to meet current tourist demand. The provision of telecommunications services could also represent an area of opportunity following earlier deregulation of the sector.

There may be potential for providing a fast, inter or intra-island ferry service. The possible introduction of Australian-built fast ferries elsewhere in the region would be a major step towards Australian boat builders gaining access to markets throughout the Caribbean.