Global trade winds blow towards Antigua and Barbuda

The issues of trade liberalization and globalization are at the forefront of world economic developments. Free trade zones have become a large part of the global landscape as they eliminate tariffs and quotas and lower bureaucratic requirements in order to raise incentives for companies to establish businesses. Antigua and Barbuda Free Trade & Processing Zone was created in 1997 in order to create an ideal climate for investors to grow his or her assets. The Government of Antigua and Barbuda realizes that successful companies create employment opportunities for nationals and therefore, the Free Trade & Processing Zone was set up to offer a top environment in various sectors. For example, the Government is actively courting high-tech, information based industries, light manufacturing and import/export companies to add to the diversification of the country’s economy. In order to learn more about the progress made by the Free Trade & Processing Zone and the benefits available for companies looking for a home away from home, International Reports spoke to Commissioner Maurice Murphy. Mr. Murphy understands the social impact of well managed investment. He explained that under the leadership of Hon. Baldwin Spencer, the new Government has been able to spot the errors made by the previous administration and shape its development strategies to match the needs of the country and the international investor. Murphy pointed out that the aim of the Free Trade & Processing Zone is to "have a dual positive impact on the socio-economic development of the country by lifting educational standards and the quality of life as well as attracting investment to provide employment opportunities for the population. Antigua and Barbuda has a wealth of opportunities right now and we want to develop strategic alliances from both a diplomatic and business position world wide."

How has the Free Trade & Processing Zone contributed to economic diversification in Antigua and Barbuda since its implementation?
Mr. Murphy: The Free Trade & Processing Zone has contributed significantly to the economic diversification of Antigua and Barbuda. The Zone was established by an Act of Parliament in 1994 and is currently positioned under the Ministry of Finance and the Economy as a Statutory Body of Government. The organization is mandated to attract local and international investment in areas deemed to be of priority by the Government for the economic development of Antigua and Barbuda. Since commencing operation in 1997 as a special tax-free zone, the Antigua and Barbuda Free Trade & Processing Zone has concentrated on attracting businesses in the high-tech end of the market as well as export – oriented, light manufacturing businesses rather than large scale manufacturing businesses which require mass labor at low wages. The high-tech market requires specialized services, highly skilled workers and is less labor intensive, so as a small developing country, Antigua can be better able to compete on the global market. In keeping with its target market and mandate, the Zone has also been responsible for promoting computer literacy and technology transfer in the twin island state through its subsidiary, the Antigua and Barbuda International Institute of Technology, the creation and monitoring of the Offshore Gaming Industry and the "Computers in Schools" Project.

In 1996, the Free Trade & Processing Zone was mandated to develop the Offshore Gaming Industry. Between 1996 and 2000, it was responsible for the setting up and monitoring of the Offshore Gaming Sector which was considered to be the most vibrant of economic activities in Antigua and Barbuda. With approximately 300 licensed companies at one time, the sector provided employment in the field of e-commerce, computer networking and software and other technologically based fields for hundreds of Antiguan and Barbudan nationals. This was indeed a change for an island whose main financial generating product was tourism. The license fees paid by the companies, promoted an additional flow of foreign exchange. Many locals benefited from renting buildings not only for businesses but also for living accommodations for the influx of foreign nationals. As a result of this new industry, new ancillary businesses were established by Antiguan nationals e.g. management companies, website design and other support service companies.

What inspired the formation of the Antigua & Barbuda International institute of Technology?
Mr. Murphy: The Antigua and Barbuda International Institute is a tertiary level institution offering numerous Diploma and Associate degree programs in the field of Information and Communication Technology and business, and was the brainchild of the Government of Antigua and Barbuda. In March 1997, The Free Trade Zone was mandated to establish a computer training school. The main purpose of the Institute was to train young Antiguans and Barbudans to become more computer literate and to create a technologically skilled labor force in the island needed to drive the offshore gaming industry. The school also was responsible for training public sector employees in IT so that they could become more efficient in delivering Government services especially during the current move towards e-government. Emphasis was also placed on the training of some of these employees for re-employment into the private sector. The school originally named the Free Zone Institute of Training and Technology was mandated to work with the Ministry of Education in the setting up of the "Computers in Schools" project, a project which outfitted all of the Government schools in Antigua and Barbuda with computer training labs and provided training for the relevant teachers. Between 1997 to present approximately 5,000 persons between the ages of 18 – 65 have been trained at the Institute’s facilities and have been snapped up by private companies in this successful initiative. As the school evolved, it outgrew its original home and a new state of the art building was built to house it. A name change was also deemed appropriate. On September 27th 2001, the Antigua and Barbuda International Institute of Technology was born. The Institute has since been declared a Centre of Excellence for IT Training in the OECS.

What advantages exist for corporations establishing themselves on the island?
Mr. Murphy: There are many advantages for corporations wishing to establish themselves in the Free Trade & Processing Zone or in Antigua and Barbuda as a whole. First of all, we offer attractive investment conditions, an enabling environment, professional and courteous service to facilitate mutually beneficial corporate partnerships, all within a warm and friendly tropical climate.

Geographically, Antigua sits at the gateway to the Caribbean with easy access to the markets of the OECS islands. It is also centrally located to markets in the USA, Central and South America, all easily accessible by both airline and ship. Antigua hosts a modern airport in the form of the VC Bird International Airport and deep water harbor both serviced by the major international airlines and shipping lines. Antigua is the telecommunications hub for the regional carrier Cable and Wireless and is served by both satellite and fiber optic cables which terminate here in Antigua. Antigua and Barbuda also has one of the most politically stable Governments in the region which encourages and protects foreign investment and offers the full protection of the Laws of Antigua and Barbuda. Investors can also take advantage of the numerous free trade and bilateral trade agreements that the country is signatory to.

What new initiatives can we expect from the Free Trade & Processing Zone?
Mr. Murphy: There are several initiatives in the works for the Free Trade & Processing Zone. First, we are poised to establish an Information Technology Park. The island is home to a vibrant offshore sector which promotes the use of e-commerce. E-commerce has no boundary restrictions and can be highly significant in leveling the playing field of economic pursuits between robust economies and third world or developing nations like Antigua and Barbuda. The Technology Park would comprise the necessary facilities, amenities, resources, training, commercial and industrial business and technology transfer linking cyberspace and real world technology producers and users in a common marketplace, thus creating an enabling environment for local and international businesses and investment growth. Businesses targeted for establishment in the Technology Park include general electronics manufacturing, computer software / hardware manufacturing, server hosting, telecommunications and related services, multimedia products and content producers, business service providers, finance companies, e-commerce businesses, trading companies, research and development institutions, manufacturing and processing, convention and business centre, telemedicine, and call centers, etc.

Another plan in the works is to set up the Antigua and Barbuda Free Trade & Processing Zone as a central distribution centre for the Organization of Eastern Caribbean States (OECS) region for goods and services. This will be maximized by utilizing the opportunities created by existing trade policies and agreements and the onset of CSME. Targeted industries include pharmaceuticals, hurricane protection materials, pre-fabricated houses and accessories. There is no limitation to the type of investment or business that can be set up in the Free Trade Zone or Antigua and Barbuda as long as it is within the scope of the law.