Barbados may challenge U.S. law

Wednesday, October 15, 2003

BRIDGETOWN, Barbados: Research Fellow at the Sir Arthur Lewis Institute of Social and Economic Studies, Dr Don Marshall, says Barbados may have to challenge any breaches of international law which the United States Patriot Act incurs, since it will have a significant impact on the level of remittances that Barbadians move home annually. 

"Whoever is in office in Barbados, when this act is brought into full effect, will have to challenge the excesses of the breaches of international law that it beckons," the Barbados Nation quoted Dr Don Marshall as saying. 

From 1st October, the new regulations for financial services business in the United States went into effect. Under the act, banks and money transfer entities, among others, are required to have formal procedures in place to verify customer identities which are all part of the effort to combat terrorism in the U.S. and around the globe. 

Remittances represent a large proportion of the foreign exchange earnings for Barbados as well as the region. Statistical data from the International Monetary Fund, provided by the Central Bank of Barbados, showed that between 1970 and 1999, for example, $1.424 billion was remitted to the island from workers in the United States. 

In 1999 alone, this amounted to $176 million or approximately seven per cent of the gross domestic product (GDP) at the time. 

"There are issues that are likely to be raised at a bilateral level that would mirror some of the very debates that took place under Shiprider (anti-drug trafficking arrangements between the United States and Barbados) and then the question of international arbitration will have to be brought into play, if the region is witnessing a restriction in terms of that very important receipt of remittances," Dr. Marshall said. 

He suggested that Barbados should employ its best minds in the area of law and international relations to focus on the implications of the Patriot Act, which was passed in October 2001, following the terrorist attack on the United States. 

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