I.   Commercial Overview

As a country with a relatively narrow resource base and limited
production, Barbados imports much of what it needs to survive --
including energy, food, and many types of consumer products.  At the
end of 1993, the external sector in Barbados recorded a surplus on
current account of $58.7 million -- a much lower surplus than the $137.9
million recorded at the end of 1992, but a great improvement from the
$29.9 million deficit posted at the end of 1991.

Barbados' economy expanded by almost one percent in 1993 -- after
three consecutive years of decline -- and import growth surged during
the year.  Exports also grew during 1993, but at a slower pace than
imports, resulting in the lower current account surplus at December 31,
1993, compared to the year-earlier figure.

Despite the slight turnaround in the economy, the unemployment rate
continued its four-year rising trend in 1993, officially rising to 24.5
percent at the end of the year.  That figure compares to rates of 17.1
percent and 23.0 percent at the end of 1991 and 1992.

The commercial environment is generally favorable: although the local
business community would like to see lower tax rates and import tariffs,
and fiscal policies that would favor more investment, the attitude of
government is generally favorable toward business.

Barbadian attitudes toward the United States and toward American
business are also generally favorable, as evidenced by the approximately
36 percent of the import market (1992) commanded by goods from the
United States.  According to U.S. Department of Commerce figures, U.S.
exports to Barbados grew by about 13.9 percent in 1993, from $127.8
million in 1992 to $145.5 million in 1993.  Barbados' exports to the United
States grew by 11.3 percent in 1993, to $34.1 million.  Bilateral trade
between the United States and Barbados reached $179.5 million in 1993.

As the Barbadian economy continues to improve, major trade
opportunities exist for U.S. exporters of goods to supply hotels and
restaurants, building materials, medical equipment, and water and
electricity conservation equipment.  American business faces strong
competition from Canada, the United Kingdom, and from within the
Caribbean Community (CARICOM).