Bahamas Trade

Subchapters:

  • Business Relationships
  • Foreign direct investment
  • FTAs ​​and Treaties
  • Development Cooperation
  • Prospective fields of study (MOP)

Business relations

Trade relations with the EU

The EU is the Bahamas’ second largest trading partner after the US. In 2008, the Bahamas signed the Economic Partnership Agreement with the EU (EPA), which, among other things, establishes the legal regime of the Free Trade Agreement between the EU and 15 Caribbean countries. Based on this agreement, exports to the EU are mostly duty-free. Poland is the largest trading partner within the EU for the Bahamas.

  • Allcountrylist: Overview of major industries in Bahamas, including mining, construction, transportation, tourism, and foreign trade.

In 2020, EU exports to the Bahamas fell by EUR 300 million due to the pandemic to a total of EUR 48million. Imports from the Bahamas to the EU halved to EUR 267 million. In 2021, exports recovered to EUR 52million, imports still show a decreasing trend and reached EUR 178.8 million. The most significant item of import to the EU is engineering and transport equipment, i.e. re-export from the USA and other countries, on the other hand, production of the chemical industry and agricultural products are exported to the Bahamas.

2017 2018 2019 2020 2021
Exports from the EU (million EUR) 1,016.60 988.9 786.3 481.5 521.6
Imports into the EU (million EUR) 310.2 399.6 524.1 266.7 178.8
Balance with the EU (million EUR) -706.4 -589.3 -262.2 -214.8 -342.8

Source: European Commission

Trade relations with the Czech Republic

Mutual trade with the Czech Republic in 2021 developed in favor of Czech exports in the value of 343 thousand. EUR, imports into the Czech Republic amounted to 96 thousand. EUR. The balance of the trade balance reached 247 thousand. EUR, i.e. twice the level before the pandemic. Metal products, means of transport, lighting, glass, filter equipment, agricultural machinery, electrical equipment are exported to the Bahamas from the Czech Republic, and alcoholic beverages, rubber, seafood, and clothing are imported from the Bahamas to the Czech Republic.

2017 2018 2019 2020 2021
Exports from the Czech Republic (billion CZK) 627 68 265 477 233
Imports to the Czech Republic (billion CZK) 244 228 152 84 96
Balance with the Czech Republic (billion CZK) 368 -160 113 392 247

Source: CZSO

Trade relations with countries outside the EU

Data not available.

2017 2018 2019 2020 2021
Exports from countries outside the EU (million EUR) ON ON ON ON ON
Imports to countries outside the EU (million EUR) ON ON ON ON ON
Balance with non-EU countries (million EUR) ON ON ON ON ON

Source: EIU, Eurostat

Foreign direct investment

The Bahamas has a stable and attractive investment climate. The country favors foreign direct investment. According to World Bank data, in 2020 foreign direct investment reached 3.63% of GDP, while in 2019 it was 2.1%. Thus, there was an increase in foreign investment in the Bahamas during the pandemic.

Among the most promising areas for investment are investments in infrastructure, hotels and tourism. As part of the investment incentives, hotel developers are exempted from duties on construction materials, equipment and other supplies, as well as business licenses and property taxes for a period of 20 years. It is also possible to purchase one of the hundreds of islands of the Bahamian archipelago based on the submission and approval of a development project. According to the available information, these are investments from USD 3-4 million with a return in some cases of up to 100% within one year. With investments of this type, however, it is necessary to take into account climate change and possible losses due to sea level rise. Other areas of possible interest for investors include building second homes and condominiums, ports and ship repairs, hi-tec services, manufacturing for export, food processing or pharmaceutical industry. Likewise, the area of ​​renewable energy production appears promising for the future.

FTAs and treaties

Treaties with the EU

The Trade and Development Partnership Agreement (EPA) between CARIFORUM and the EU, which was signed in 2008, aims to contribute to the deeper integration of the region. The EU considers the Bahamas, like some other Caribbean countries, to be a non-cooperative jurisdiction because the Bahamas does not ensure tax fairness. The Bahamas is also on the list of risky third countries with serious deficiencies in the fight against money laundering.

Contracts with the Czech Republic

Supplementary Convention on Civil Procedure between the Czechoslovak Republic and the United Kingdom of Great Britain and Northern Ireland of 1935; Treaty between the Czechoslovak Republic and the United Kingdom of Great Britain and Ireland for the Reciprocal Extradition of Criminals as amended by the Protocol signed in London on June 4, 1926; Treaty between the Czechoslovak Republic and the United Kingdom of Great Britain and Ireland on legal assistance in civil matters from 1924. On March 6, 2014, the Agreement between the Czech Republic and the Commonwealth of the Bahamas on the exchange of information in the Ministry of Foreign Affairs and Immigration of the Commonwealth of the Bahamas was concluded in Nassau tax matters. The agreement entered into force on 4/2/2015.

Developmental cooperation

The Bahamas is not a priority country for development cooperation of the Czech Republic.

Prospective fields of study (MOP)

MOP is not processed for this country.

Bahamas Trade