Legislation for Foreign Investment Statutes in Countries in the Americas
Comparative Study
1. Legal bases for foreign investment
Objective: Indicate if there is a Foreign Investment Statute and describe it. In the paragraphs below, indicate the legal rank of the norms contained in the Statute, i.e., regulations for expropriation fall under which rank?
1.1 Constitutional
1.2 Legal
No specific legal framework. Covered by various acts.
1.3 Administrative
2. Concept and subject of foreign investment
Objective: It is essential that both the investor and the nature of the investment be identified, so as to determine to which activity and to whom the regulations will be applied. This is also essential at the international level, especially in case of dispute and arbitration.
2.1 Is foreign investment in your country legally defined or conceptualized?
Defined in various acts.
2.2 Are there registered records or mechanisms to clearly identify both the foreign investor and the nature of the investment?
Defined in various acts.
2.3 Is it possible for a natural person to resort to the foreign investment legislation?
Defined in various acts.
2.4 Is it possible for a citizen or resident to resort to the foreign investment regime?
Defined in various acts.
2.5 Can a recipient company funded with both domestic and foreign capital resort to foreign investment regulations? Is this subject to restrictions?
Defined in various acts.
2.6 Is there a time limit for a foreign investor to be considered as such?
No.
2.7 Are restrictions imposed on the executive body or other staff of an enterprise. Are there nationality quotas? Under what conditions can the executives or other staff hired abroad send their earnings to their country of residence?
Covered within the Exchange Control Act Cap. 71.
3. Scope of foreign investment activities
Objective: Define the legal scope of foreign investment in your country, as well as their conditions and limitations.
3.1 Describe the regulating principles of economic activity in your country
a) Describe how economic freedom is guaranteed.
Provisions contained in Section 16 of the Barbados Constitution.
b) Is the principle of economic nondiscrimination guaranteed? Describe how.
Provisions contained in Section 16 of the Barbados Constitution.
c) Public and private enterprises (local and foreign): do they compete on equal terms, or does the State have higher benefits?
Indicate the scope of foreign investment, i.e., does it include movable and immovable property, assets, concessions, claims to money, intellectual property, industrial property, leasing, technology, etc.
Yes.
3.3 Reserved sectors
a) Indicate the sectors or economic activities reserved exclusively for the state in your country. Explain the regulations pertinent to these areas.
No existing legislation in this area.
b) Indicate the sectors or economic activities in which only foreign investment is excluded, restricted or limited in your country. Explain in what consists said exclusion, restriction or limitation.
c) Does the Principle of International Reciprocity exist in the legislation of your country?
d) Is foreign investment subject to performance requirements?
e) Can foreign investors take part in the privatization processes of your country?
4. Rights and protection of foreign investment
Objective: Identify the type of treatment granted foreign investment i.e.: its rights, protection and incentives.
4.1 Treatment granted to the foreign investor and the investment
a) National treatment or Most-Favored-Nation clause ? (Refer to paragraphs 3.1 and 3.3)
No existing legislation in this area. Provided for in treaties and international agreements.
4.2 Protection of Property
a) Constitutional or legal grounds that may lead to expropriation of, or limitations to property
Section 16 of the Barbados Constitution.
b) How is compensation determined? Which value is it based on? How is it settled?
Section 16 of the Barbados Constitution.
c) Can the authorities take possession of expropriated assets prior to paying compensation?
d) Is property of both corporal and incorporeal assets equally guaranteed?
Yes.
4.3 Transfers of investment, remittances of capital and benefits
a) Under what conditions may investments in the form of foreign exchange, capital goods, technology, associated credits, etc., be brought into the country? Are there specific regulations for each item?
Contained in Exchange Control Act Cap. 7.
b) Are there restrictions to the remittances of capital, benefits, debt service, or other remittances derived from foreign investment?
c) Are there different kinds of exchange rates? To which does the foreign investor have access?
No.
4.4 Taxes and incentives to foreign investment
a) Explain briefly the taxes that foreign investments are subject to.
Tax rates differ depending on type of investment.
b) Are there special tax rules for foreign investment?
Yes.
c) Has your country signed agreements with other countries in the Americas to avoid double taxation? If yes, list those countries.
d) Are there other incentives to foreign investment, such as access to domestic credit, investment insurance, industrial parks, customs exemptions, etc.?
Yes.
5. Dispute settlement
Objective: Because Bilateral Investment Treaties (BITs) will be part of another study, only an overview of the subject is required here.
5.1 Domestic settlements: Can the foreign investor resort to the same procedures as the national investor? Are there special forms of appeal available to foreign investors? Please describe.
5.2 International settlements: Is your country a member of ICSID or other international arbitration mechanisms on the subject of investment?
5.3 Has your country signed BITs with other countries in the Americas? What is the present status of said agreements, i.e., approved, ratified, in effect?
5.4 Where in the juridical hierarchy of your country are international treaties and specifically the Investment Protection Agreements? Analyze your response in relation to the Constitution and domestic laws.
5.5 Do said agreements have "direct effect", that is to say, can they be invoked by the parties directly before the Courts and then applied to the case in question? If not, under what circumstances can they be invoked and applied?
6. National authorities
Objective: To identify the agencies in charge of foreign investment, their organization and functions.
6.1 Is foreign investment handled by specially appointed offices in your country? What is their hierarchical status? How are their actions integrated? What are their main attributions?
Yes.
The Barbados Investment and Development Corporation.
Its function is to promote exports and encourage investment.
The corporation has a CEO and six Divisional Directors.