The impending closure of Berger Paints Barbados’ manufacturing operations has ignited serious concerns regarding the future viability of the island’s industrial sector and the effectiveness of CARICOM’s regional trade agreements. The company confirmed this week it will cease all local production, shuttering its factory, warehouse, retail outlets, and administrative offices by April 24th, transitioning to a distribution-only model through established partners including Carters and Ace H&B Hardware.
This strategic pivot stems directly from challenges posed by Article 164 of the Revised Treaty of Chaguaramas, the foundational document governing the CARICOM Single Market. University of the West Indies economists Dr. Ankie Scott-Joseph and Dr. Antonio Alleyne identify this provision as the central catalyst. Article 164 permits smaller, designated Less Developed Countries (LDCs) within the trade bloc to impose protective tariffs on imports from more economically advanced members like Barbados.
Dr. Scott-Joseph explained the mechanism: “The provision’s intent is to shield nascent industries in LDCs. Consequently, Barbadian-manufactured paint becomes subject to tariffs in those markets, deliberately making production in lower-cost LDC territories—such as Grenada or Trinidad—more financially attractive. Thus, the very regulation designed to foster regional protectionism has rendered local manufacturing in Barbados uncompetitive.”
Dr. Alleyne contextualized the move within Barbados’s broader economic structure, noting the island has traditionally focused on high-value services rather than mass production. “Our competitive edge lies in marketing our human capital for high-end, technologically advanced products and services. Large-scale manufacturing faces inherent limitations here due to constrained land availability, a smaller labor pool, and consequently, higher production costs,” he stated.
Both economists warned of significant macroeconomic repercussions, extending beyond immediate job losses. Dr. Scott-Joseph highlighted the risk of increased import dependency, potential foreign exchange pressures, and negative multiplier effects on the nation’s current account. They jointly emphasized that while Berger’s decision is a rational business response, it underscores a critical flaw in the regional framework—the absence of a compensatory mechanism for countries experiencing industrial displacement due to trade policies.
The analysts concluded that this development necessitates a urgent reassessment of CARICOM’s trade arrangements to ensure regional integration does not inadvertently penalize its more developed member states, balancing protectionist goals with economic equity.