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Country Commercial Guides for FY 2000: The Bahamas Report prepared by U.S. Embassy Nassau, released July 1999 Note*

V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT

The best U.S. export opportunities remain in the traditional areas of foodstuffs and manufactured goods; vehicles and automobile parts; hotel, restaurant, and medical supplies; and computers and electronics. Bahamian tastes in consumer products roughly parallel those in the United States, both because of similarities in culture and because the proximity of The Bahamas to the U.S. exposes Bahamians to massive doses of American domestic advertising. Merchants in Southern Florida have found it profitable to advertise in Bahamian publications, as the average middle-income Bahamian makes several shopping trips to Florida every year. With approximately 85 percent of the population primarily being of African descent, there is a large and growing market in The Bahamas for "ethnic" personal care products aimed at the African-American market. Bahamian consumer and safety regulations, where they exist, are based on U.S. models and thus are not a barrier to exports of items suitable for the domestic American market. Most imports in this sector are subject to high but non-discriminatory tariffs.

Best Prospects for Non-Agricultural Goods and Services (all figures in millions of U.S. dollars)

Power Generating Machinery, Specialized Machinery, Metalworking Machinery, General Industrial Machinery, Electrical Machinery, Apparatuses and Appliances

The Bahamas does not produce machinery or mechanical appliances of its own. Strong growth in the construction sector, including residences for Bahamians and second homes for foreigners, as well as hotel development, should create continuing demand for U.S. construction machinery, domestic appliances and other types of machinery.

	1997	1998
Total imports	N/A	$211.0
Imports from U.S.	$107.3	$134.0

Motor Vehicles and Parts, Boats, Ships and Other Transport Equipment

Although Bahamians drive on the left side of the road, there is no legal restriction against left-hand drive (U.S. standard) vehicles, and the majority of vehicles on Bahamian roads are American-made. There is a large market for second-hand U.S. vehicles, although these can only be sold through local dealers. Used limousines are particularly prized for use as taxis. Bahamian safety and pollution standards are less restrictive than those in the United States. Import tariffs, while high, are non-discriminatory. As an island archipelago, the market for boats, ships, and other maritime equipment is significant.

	1997	1998
Total imports of motor vehicles and parts	N/A	$140.34
Imports from U.S.	$84.0m	$105
Total imports of Transport equipment including marine	N/A	$71.4
Imports from U.S.	$39.4	$26.3

Medicinal and Pharmaceutical Products

There are three main hospitals in The Bahamas (the Government-owned hospitals, Princess Margaret in Nassau and Rand Memorial in Freeport, and the privately owned Doctors Hospital in Nassau). The level of medical care in The Bahamas is continuously developing to keep abreast with medical technology. The medical community aims to provide a level of service to treat patients effectively and curtail the numbers of Bahamians who travel to South Florida for medical treatment.

	1997	1998
Total imports	N/A	$22.7
Imports from U.S.	$4.7	$ 5.7

Office Machines and ADP Equipment (computers), Telecommunications Equipment (Including Televisions, etc.)

The large, modern financial services sector is a particular target for export. In 1996 the Government reduced import duties on computers and computer parts and consumer electronic appliances. Goods, which can be easily, serviced either in The Bahamas or in Florida will enjoy a competitive advantage over those that cannot; service agents in The Bahamas must be Bahamian. The Bahamas is constantly upgrading its telecommunications network. The impending privatization of Batelco will create opportunities for exporters of telecommunications equipment.

	1997	1998
Total imports	N/A	$142
Imports from U.S.	$33.2	$47.7

Best Prospects for Agricultural Products (all figures in millions of U.S. dollars)

Miscellaneous Edible Preparations

The Bahamas has a relatively sophisticated consumer goods market and most major U.S. producers are well represented here. Some local food brokers say that Bahamians prefer brand name products and it is often difficult to sell large quantities of unknown brands unless the quality is exceptional. The only barriers to entry of most food imports are duties and stamp taxes. The Bahamian Government charges import duties on most items including food products. The duties generally range from zero to 35 percent plus two to seven percent stamp tax on some items. There is no duty on market basket items -- breads, rice sugar, corned beef and baby foods. The Government occasionally bans imports of certain food products such as bananas and poultry products to protect local production.

	1997	1998
Total imports of Miscellaneous edible Preparations	N/A	$11.8
Imports from U.S.	$34.5	$24.4

Fruits and Vegetables, Cereal and Cereal Preparations

	1997	1998
Total imports	N/A	$48.0
Imports from U.S.	$29.9	$45.5

Meat and Meat Preparations

	1997	1998
Total imports	N/A	$74.5
Imports from U.S.	$20.0	$27.8