By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A digital payments provider yesterday argued that the Bahamas should join the Caribbean Single Market and Economy (CSME) to break down barriers facing local firms seeking to expand into the region.

Nicholas Rees, Kanoo’s chairman, told Tribune Business that The Bahamas not being a signatory to the CSME increases the cost for local firms wishing to do business in other Caribbean jurisdictions.

“We expect to be in multiple Caribbean islands. We are advanced in a number of Caribbean territories. We don’t want to name any territories as yet because we have provisional licenses in two additional territories, and we’re finalizing an acquisition in a further territory,” he said.

Mr Rees said difficulties encountered in expanding to other Caribbean jurisdictions include a lack of “tax treaties”, which are “essential” among CARICOM countries. “The Bahamas does not fully benefit from those tax treaties that the other CARICOM members benefit from, so I hope that that would be exciting for all Bahamian businesses and entrepreneurs to look at in terms of, you know, they want to expand their businesses,” he added.

“CARICOM territories share various economic benefits in terms of cross investments from one territory to the next. For example, the expatriation of dividends and royalties are taxed, and so within the CARICOM network that is not available for non-CSME members and such that further economic incentives can be delivered to the market that can foster and create a trade amongst us.”

Signing on to the CSME is something The Bahamas should “significantly” look at because of the benefits to local firms, Mr Rees said. “We all share common commonalities across all the Caribbean regions, and we all have different, different challenges. I think in combining resources and our minds collectively across the region, we can solve each other’s solve each other’s problems,” he added.

The Bahamas has previously rejected signing on to the CSME due to fears that it will permit the free movement of people and worsen an already significant Immigration problem. The Bahamas has been similarly skittish about becoming a full member of the World Trade Organisation (WTO), fearing that it will open up the economy to foreign firms including those reserved for “Bahamians only.”