2019/20 Budget Communication Final Budget Communication | Page 44

of the accession period, we anticipate some $50 million in foregone revenue over time, against the
backdrop of the proposed 15 percent decline in the average tariff rate.
Since then, the WTO working party has met again to discuss the offers The Bahamas
is willing to make on duty rate reductions, and these discussions will continue until both sides are
satisfied with the offer. The protection of small businesses and the production of local farms and
manufacturers remain key priorities for the WTO negotiating team, which I am confident will be
reflected in the final Goods and Services Offer.
With regard to the impact of WTO accession on the Bahamian economy, I wish to
draw on the findings of the recent Oxford Economics study, which estimates that the potential
economic impact will be positive over the medium term, with the near term impact crucially
dependent on the government’s efforts to put in place structural reforms. These reforms were noted
as:
Improved transparency and consistent application of rules and regulations governing
businesses;
Reduced bureaucratic time delays with the introduction of modernized and streamlined
processes;
Rationalization of the regulatory requirements for starting a business and strengthening
of the intellectual property regime;
Policy initiatives to improve access to finance for SMEs;
Energy sector reforms to lower electricity costs and improve reliability; and
Expansion of training and improvement of job placement services to increase
employment opportunities.
Mr. Speaker,
Most, if not all, of these reforms are addressed in the policy initiatives set out in our
2017 Manifesto, many of which we have already begun to implement. For example, as has been
mentioned already, we developed and implemented the SBDC to aid small and medium-sized
businesses in acquiring capital and developing them for success. We have streamlined a number
of processes associated with starting a business and complying with other business requirements.
And we are well on our way to rolling out our solar initiatives in our push for energy reform. Thus,
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