The International Monetary Fund (IMF) wants Barbados to swiftly reduce tariffs and protection on locally produced goods and services.

This advice was delivered to Government recently by the Bretton Woods institution during the annual discussion on the island’s economic policy.

Anthony Pellechio who led the team of IMF staff during the exercise, said the parties discussed “the hard choices” facing Barbados as it met its commitments to free trade.

The IMF welcomed Barbados’ reversal of tariff increases adopted in 2001 as well as its intention to continue reducing tariffs over the medium term but it called for “expeditious tariff reduction and removal of protection in the context of CARICOM and the Free Trade Area for the Americas.”

Pellechio said while protective tariffs might be appropriate for a short period to give some local industries time to become competitive, they raised costs for other industries, especially tourism, and hurt consumers by raising the costs of imported food and other supplies.

This, he said adversely affects Barbados’ competitiveness and growth prospects, with high social costs. But he added, “protective barriers are often difficult to remove because of vested interests.”

His team also stressed the importance for Barbados to accelerate policies to reinvigorate growth and reduce the risks currently facing the economy.

Its recipe for doing so include :