Reaffirming the Government's commitment to providing an efficient strategy for investment at the International Labour Conference on FTAA, Minister of Financial Services & Investment, Allyson Maynard-Gibson said the pursuit of light industrial and agro-fisheries enterprises with environmental safeguards is one of the main things hoped to be accomplished through the initiative.
The goal of the Free Trade Area of the Americas (FTAA) is to eliminate barriers to trade and investment among the countries of the Americas. The FTAA, which comprises some 34 countries will have a combined population of 757 million, a combined GDP of approximately $10 trillion, and a total trade of around $2.4 trillion.
Stating that the FTAA process in this regard is vital because it raises the question of whether or not the present investment policy of reserving certain sectors of the economy for Bahamians may continue, Mrs. Gibson also stressed that this issue of reservation pertaining to the economy for nationals, is also one for negotiation.
Reiterating comments made by the Prime Minister on the matter, Mrs. Gibson said, "I wish to emphasise that no binding commitments or agreement of any kind will be made in relation to either the WTO or the FTAA without prior consultation with the Honourable House (Parliament) and with the Bahamian people. This consultation has been ongoing.
Addressing the conference, which is hosted by the Trade Union Congress (TUC) under the joint sponsorship of the Inter American Development Bank (IDB), the Organisation of American States (OAS) and the Broadcasting Corporation of The Bahamas (BCB), Mrs. Gibson pointed out that there are Bahamians who believe the policy, prevents them from expanding their ventures or from becoming entrepreneurs. Additionally, she said both sections are concerned about the cost of financing and the ability of financiers to invest as equity partners in these projects.
Government strategy for investment entail building the framework for a vibrant investment policy relevant to the emergency world economic order; expanding economic opportunities through diversification; fostering increased Bahamian and international investment and encouraging small business enterprises.
In addition to the encouragement to pursue light industrial and agro-fisheries enterprises, The minister said the Government aims to energise tourism and strengthen linkages to other sectors of the economy; expand real estate development and develop a well skilled and productive workforce, supplemented by progressive immigration policy emphasising technology transfer.
Sharing her view on how to energise the tourism industry, Mrs. Gibson pointed to the importance of time-share bonefish lodges, which she declared as the fastest growing sector of the tourism market. Combined with sports fishing, the market has generated approximately one half of a billion dollars.
The minister stated that in the Government's quest to expand real estate development in the country, islands like San Salvador, Exuma, and Abaco have been marked for significant economic development over the next five years.
In order to develop a well skilled and productive workforce as well as upgrading immigration policies, Mrs. Gibson said improvement in these sectors will come about with the assistance of Bills, that will come before Parliament by the end of the year in respect of e-commerce and mutual funds and a fully computerised Company Registry of the Registrar General's office to speed things along.
"Many of you will be aware that two of the major concerns of investors regarding investment in The Bahamas is the cost of labour and productivity," she said. "An investment by the union in either of these sectors would not only make several thousands of Bahamians entrepreneurs, but would also sensitise them to the very real and important impact that cost of labour and productivity have on profit."
"The profit in this context being the profit of the union's owns venture and the profit of a larger hotel or other enterprise for whom the members may be employed."
Stating that the significant pool of resources owned by unions could be utilised to purchase parcels of lands or obtain Crown Grants to construct homes on Family Islands, the minister said unions play a vital role in assisting with the success of many ventures and pursuits set out by the Government in their investment strategies.
The ongoing negotiations are occurring within nine negotiating groups and their consultative groups that include: market access, services, competition policy, government procurement, investment, dispute settlement, agriculture, intellectual property rights, subsidies, antidumping & countervailing duties, smaller economies, e-commerce and civil society.
Mrs. Gibson stated that as a strategy, the Government, in full awareness of small countries like The Bahamas without resources to effectively participate in the process alone, agreed to negotiate as a group with CARICOM countries.
Be that as it may, she said that Bahamian negotiators have been instructed that where there are no common interests, they are to break with the group.
"The Bahamas is ably represented by an interdisciplinary group comprising both private and public sector persons who have been actively following the process from the outset," she said.
"It is understood that small vulnerable developing economies such as The Bahamas cannot be expected to compete effectively in the international arena with the larger developed economies that have the infrastructure, institutions and knowledge, human financial and technical capacity to understand, implement and comply with commitment required under the proposed FTAA."
She said because the Ministry of Financial Services and Investments is responsible for such matters, there is a keen interest in the progress of the negotiating group as its mandate is to develop the investment chapter of the FTAA.
The group, the minister said, after three rounds of negotiations and eighteen meetings, has prepared a heavily bracketed text for the investment chapter. The text includes potential scenarios and negotiations required to remove the brackets.
The draft chapter consists of topics such as: basic definitions, national treatment, most-favoured nation treatment, fair and equitable treatment, expropriation and compensation, compensation for losses, key personnel, transfers, performance requirements, general exceptions and reservation and dispute settlement.
"We need to evaluate carefully the opportunities available in the FTAA that comprises almost 800 million people and provides a multi trillion dollar market," she said. "I encourage you to continue to inform yourselves about opportunities arising from the FTAA."
By Lisa Albury, The Nassau Guardian
