On January 31, 2002 - In a joint press release, Barbados and the OECD announced that Barbados will not appear on the OECD's forthcoming list of uncooperative tax havens.

The text of the release is as follows:

Following detailed discussions since the release of the 2001 Progress Report, Barbados and the OECD are pleased to announce that, for the reasons specified below, Barbados will not appear on the forthcoming list of uncooperative tax havens. These discussions have shown that Barbados has transparent tax and regulatory systems and has in place a mechanism that enables it to engage in effective exchange of information.

Barbados has long-standing information exchange arrangements with other countries, which are found by its treaty partners to operate in an effective manner. Barbados is also willing to enter into tax information exchange arrangements with those OECD Member countries with which it currently does not have such arrangements. Barbados has in place established procedures with respect to transparency. Moreover, recent legislative changes made by Barbados have enhanced the transparency of its tax and regulatory rules.

Both Barbados and the OECD acknowledge the importance of dialogue in addressing international tax issues. Barbados has played an important role in fostering such dialogue. Both parties look forward to a continuing and constructive dialogue on issues of mutual interest.

Contact:
Nicholas Bray
OECD"s Media Relations Division
Tel: [33] 1 45 24 80 90

Press Conference of the Prime Minister of Barbados, the Rt. Hon. Owen Arthur held on Tuesday, March 5, 2002

The following is a report of a Press Conference held by the Prime Minister the Right Honourable Owen S. Arthur on Mach 5, 2002 in the offices of the House of Parliament, Bridgetown, Barbados:

The Prime Minister expressed regret at comments attributed to some Caribbean countries regarding the decision taken by the OECD to take Barbados off the list of countries that were considered to be engaged in harmful tax competition. In one article in the Financial Times of March 5, 2002 Barbados was accused by an official of one Caribbean nation of weakening the position of tax havens. Other Caribbean countries had expressed similar sentiments.

Prime Minister Arthur noted that there has been no greater critic of the OECD initiative than Barbados. He also stated that the OECD had in its deliberate judgment decided to take Barbados off their list.

He made it clear that the Government had not written any letter to the OECD and that it had given no commitments.

Prime Minister Arthur stated that it was a bit galling that in the face of these objective circumstances and these clear facts, that Barbados should be accused by its Caribbean neighbours of having stabbed people in the back, jumped the gun or broken ranks. He stated that these accusations were unfounded but preferred to attribute this to ignorance rather than to malice.

Prime Minister Arthur also made it clear that he was not interested in entering into a war of words with his CARICOM colleagues. He however felt it necessary that he should make a statement in defence of the name of Barbados, especially within a context where Barbados had done all that it could do within its budgetary constraints to prevent the OECD initiative from being even more damaging to small states.

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