Reigniting the Barbados China Connection

Due to its geographic location and network of tax and investment treaties with key markets such as Mexico, Colombia, Cuba and Panama, Barbados has promoted itself as a natural gateway into Latin America for multinational companies, mostly from Canada, who are looking for a springboard into that region. However, with shifting global dynamics, Barbados has a prime opportunity to position itself as a strategic partner for Chinese companies looking for a conduit into Latin America. As that Asian giant looks to embrace more of its role as a global economic power, bringing financial and infrastructure investment to more nations through its “One Belt, One Road” initiative launched in 2013, Barbados now has a prime opportunity to pick back up the ball after a more than five-year hiatus in on-the-ground engagement with Chinese service providers and business leaders.

One of the first indicators that the new Barbados government administration gave that it was interested in furthering its strategic relationship with China was the early announcement by Prime Minister Mottley that she had given the directive to the Ministry of Foreign Affairs to pursue an agreement with Chinese officials for the island to become part of what has become called the “Belt and Road Initiative”. As China pushes further into Africa, Caribbean and Latin America, Barbados has tax and investment treaties with over 30 nations across these regions that can be used to facilitate cross-border transactions in the areas of financial services, manufacturing and infrastructure investments, among others. Barbados continues to have some obvious advantages over other international financial services jurisdictions in the region in that the size and qualifications of our skilled professionals ensures that there is enough depth of talent to have Barbadian managed and staffed Chinese subsidiaries that can operate within this hemisphere with greater cultural familiarity. The Cave Hill Campus of the University of the West Indies in Barbados hosts a Confucius Institute which provides Chinese language and cultural training resources to Barbadians as well as facilitates cultural and educational exchanges. Historical linkages and cultural rapport between Barbados and the African nations with which we have treaties could also ease Chinese business expansion across that continent.

Barbados is also sitting on another significant financial services advantage as highlighted recently by Nancy Carroll, National Head of Insurance and Reinsurance Group of McCarthy Tetrault in Toronto, and that is in captive insurance. Carroll, who is also a Partner in the Financial Services Group of McCarthy Tetrault, pointed out at the 2018