retail prices and those of stores abroad could get even wider, according to at least one major retailer.

Mr. Eldon Trimingham, president and CEO of Trimingham Bros., says the latest General Agreement on Tariffs and Trade (GATT), a sweeping 123-nation accord to lower protective tariffs around the world, will make it even harder for Bermuda retailers to compete.

Duty rates range from 8.5 to about 22 percent in Bermuda but the average impact on the final price for the consumer is about 17 percent, Mr. Trimingham claimed.

Reductions in tariffs between trading partners can trickle down to the consumer in the form of reduced retail prices but Bermuda retailers must rely on lobbying Government for reductions in the Island's duty structure as one means of lowering retail prices.

"We have to recognise what the GATT will do, it will reduce retail prices (outside Bermuda), we can no longer compete with the US on most items, we can still compete in the areas of china, crystal and perfumes but that is not enough,'' he commented.

Mr. Trimingham said collecting income tax is not the solution and may cost more to collect than that of duties.

"I have proposed a profit tax before (as a revenue-generating solution),'' he added.

But Finance Minister the Hon. David Saul said he believed reductions in tariffs via the GATT accord will not significantly impact Bermuda.

"We can be quite competitive against the US, though they reduce tariffs they still have expensive sales taxes and Europe has VAT (Value Added Tax), you will always see those,'' Dr. Saul said.

The Chamber of Commerce plans to continue to lobby for reducing retail-related duties, said Ms Carolyn Mello, Chamber of Commerce executive vice president.

"Discussion on the General Agreement on Tariffs and Trade (GATT) and their impact have come up informally among Chamber members, it is on our agenda to discuss (the impact of GATT),'' she added.

In the late 1980s Government reduced duty on most tourism-related retail items with the rate set at 8.5 percent, and last February's budget reduced some duties lobbied for by the retail sector.

"In the new year we (the Chamber) are hoping to get a general meeting together which will include GATT discussions,'' Ms Mello continued.

Mr. Trimingham and Ms Mello pointed to a recent Chamber survey they say is indicative of a business sector that is already losing on the relative competitive front and cannot afford to lose more.

The survey of 23 Island stores showed 1,408 people were employed in the retail sector -- the same 23 retailers now employ 1,167 and the forecast for the end of 1995 is 1,156 people.

In last year's budget, Government reduced the 16 rates of duty to nine with rates ranging from zero to 150 percent, and through amalgamation, the number of items listed in the tariff was reduced from 522 to 215.

"The already low 8.5 percent (duty) on items of particular importance to the tourist retail market, will remain unchanged,'' according to that budget.

Government did reduce duty from 22.5 to 10 percent on perfume and watches, children's clothes and footwear from 11.25 to 10 percent, and made the duty zero on computer software, but it increased duties on alcohol and tobacco.