Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.
Last Published: 7/8/2019

The Caribbean is one of the most indebted regions in the world, and Barbados is no exception, with a debt to GDP ratio of 126 percent.  Tariffs remain high, although Barbados has lowered its tariffs and simplified its tariff system to fulfill its World Trade Organization (WTO) obligations.  The government grants duty-free concessions for some international businesses and tourism enterprises.  However, import duties on food products remain prohibitive, especially for franchise businesses.  Barbados’ economy is small and new enterprises that might compete with entrenched local establishments, especially in the retail and restaurant sectors, and may face a de facto veto of their license by local interests.  Although  the government has not approved licenses for importers of U.S. ice cream and poultry products and some U.S. fast food franchises, Burger King, Payless ShoeSource, and Subway have been licensed to operate.  Government red tape and inefficiencies on the part of the customs authority are frequently cited as impediments to trade.  The government recognizes customer service has been a weakness and is focused on improving it through training.   The IMF stand-by agreement has dampened income and spending power due to public sector layoffs, the introduction of new indirect taxes, and a decline in the construction sector.  The government also announced the collection of 17.5 percent Value Added Tax (VAT) on online purchases of goods and services to be consumed in Barbados. The tax will be collected at the point of sale.  This is added to the existing foreign exchange commision of two per cent on all purchases of foreign currency including cash, bank drafts and wire transfers, credit, debit and travel cards.  The commission is applied to the Barbados dollar value of the foreign currency transaction.  Everyone conducting purchases of foreign currency is required to pay this commission, except residents and non-residents making payments from their foreign currency accounts, including entities in the International Business and Financial Services (IBFS) sector.  To date, the VAT on online purchases has not been implemented.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.