Trade relations between Canada and Barbados

             Trade relations between Canada and Barbados

1. The top ten exports that Canada exports to Barbados include pig meat, processed fish, preserved meat, computers, refrigerators, plastic lids, frozen vegetables, metal mountings, iron structure, spices, potatoes, news print, seats and coins. The total value of these products was around $32.4M in 2016.

2. The value of exported goods was $32.4M in 2016 and in 2010 it was $53.3M which shows that there is a decrease in the total value of exports from Canada to Barbados.

3. The articles exported by Barbados to Canada include mineral fuels which includes oil, gems and several precious metals, vinegar, beverages, and several spirited and aerated drinks, pharmaceutical products, medical apparatus, optical materials, and technical equipment, clocks and watches including their several parts, salt, sulphur, stone, cement, various electrical machineries and their required parts and pieces, paper and paper items, animal fats, vegetable fats, oils, and wax. Along with the above mentioned above, other products include petroleum oil or crude petroleum, medicaments of various mixed or unmixed products, automobiles having the provision of piston reversing, food products and food preparations, and art jewellery and its associated parts. The total value of these goods was around

4.  Regarding the trade relationship between Barbados and Canada the trade has been observed to drop $50.4 million in 2010.

5. Barbados has a great reserve of natural environment which is favourable for international trade and commerce. The Canadian leaders had explored the world economics and decided that Barbados would continue to function as their trade booster in long run because trade with the country would give Canada an advantage of ‘dual tax treaties’ which would in turn help the Canadian companies to master their global trade and investments by remaining in a single location  and would also help them to manage and control the investments made in a single platform in a single country, but giving them innumerable profit outcomes.

6. The Canadian Trade Commissioner services which was entered between Canada and Barbados has maintained a long term relation between the two countries.  The trade relations between Canada and Barbados were secure, yet the government of both the countries helped each other in the foreign trade. There are various trade policies that are followed by both the countries in order to conduct their foreign trade. Their trade ties have been an important factor to encourage other neighboring countries to perform import and export of goods between themselves.  When it comes to the products exported by Barbados, the annual estimated transaction stands to a rate of $385 million.  Regarding the bilateral relationship between the two countries, several agreements exist which  regulate and construct their trade transactions and working implications. The existing agreements between the countries which regulate and determine their commercial and business ties include the following:-

●       Double taxation agreement

●       Social security agreement

●       Foreign investment protection agreement

●       Transfer of offenders treaty

7.  The currency of Barbados is Barbados Dollar ( BBD ).

8. Current Exchange rate to convert CAD to BBD is $1CAD - $1.61 BBD

9. If the Canadian dollar devalues significantly then the commercial and trade relations between Canada and Barbados will suffer a setback and severe injury regarding their bilateral transactions and relations which has brought the merchandise transaction to a fall of about 50.4 million dollars. As the total merchandise exported faced a fall of around 40.7 million dollars, which included products such as meat, paper and paperboards, machinery products, pharmaceutical products, wood, and plastics. The merchandise products which were imported, products such as iron and steel products, leather art and handbag products, beverages, electronic goods and electrical equipment are included, which faced a fall in their value by almost 9.7 million dollars. Therefore lack of a proper and efficient and proper economic slack is another crucial problem which the Canadian economy is currently facing with. An existing fraction of the investments as made by Canada have gone extremely disproportionate giving a serious fall in the commodity rates of the country.