Barbados could see an increase in foreign direct investment from Latin America, over the next five years, once it continues to sign double taxation treaties in those jurisdictions.
Director of Cidel Bank and Trust, Ben Arrindell, made this assertion during the question and answer segment of the Consular Corps of Barbados luncheon meeting held recently at the Yacht Club. The discussion was held in collaboration with CIBC FirstCaribbean International Bank.
Mr. Arrindell, who spoke on the theme: The Role of Barbados??? Double Taxation Treaties and Investment, said there was the likelihood of a decline in investment out of the main market, Canada, due to increased competition from countries such as Bermuda and the Cayman Islands.
He reasoned that while the Canadian market was important, Barbados should not rely on that market too heavily and pointed to the importance of diversification. In this regard, Mr. Arrindell noted that Barbados had ratified a treaty with Mexico about three years ago and was already seeing benefits.
???Barbados has become a player in terms of investment, certainly from United States companies going into Mexico. So???as Barbados expands its network of treaties, you will find investors from many other countries, other than Canada, that will use Barbados for investment,??? he noted.
Mr. Arrindell further explained: ???I see that on two fronts. I see that in terms of investors in Latin America being able to use Barbados as a hub for their investment into various parts of the world, as well as foreign investors using Barbados to go to those countries. So, if we have a double taxation agreement, we are removed from the blacklist of those Latin American countries, then that facilitates the two-way flow.???
The Cidel Bank and Trust Director said once Barbados was exposed to the international business sector in the Latin American market, it could also benefit the island???s tourism industry.