Posts Tagged ‘The Bahamas’

The Bahamas Getting Heat From WTO

July 9, 2008

WTO – World Trade Organization – is an excellent organization to increase trade between participating countries. That why most nation have an agreement with WTO or are trying to join. Of course, free trade must go both ways (export and import) to be truely free. And WTO job is to make sure are countries are fair.

So how does this related to Japanese used car exports and the Bahamas? Well it might not be important to all exporters, but there are some that do export to the Bahamas. For those who do and appreciate small country news, the Bahamas might have to relax it tariffs if they don’t find a good excuse (and maneuvering) on why they should maintain their high tariffs for transport sector imports.

Because 40% of the Bahamas’ imports are transport related (new and used cars, parts, and fuel), they’ve grown used to the extra revenue and need to keep the budget balanced. WTO says this is violation of free trade and an act of protectionism. If the Bahamas’ government doesn’t make a reason to keep high taxes (such as for “enviornmental reasons”), they may be forced to reduce tariff rates for imports.

Advertisements