Jamaica

Location : Caribbean, island in the Caribbean Sea, south of Cuba

Capital : Kingston

Languages : English, patois English 

Area : 10,991 sq km

Land Use : arable land: 16.07%; permanent crops: 10.16%; other: 73.77% (2001)

Natural Resources : bauxite, gypsum, limestone

Population : 2,731,832 (July 2005 est.)

Population below poverty line 19.7% (2002 est.)

Labour force : 1.14 million (2004 est.) 

Labour force participation rate : 41.73% of population (2004 est.)

International Organisation participation : ACP, C, Caricom, CDB, FAO, G-15, G-77, IADB, IAEA, IBRD, ICAO, ICC (signatory), ICFTU, ICRM, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM (observer), ISO, ITU, LAES, MIGA, NAM, OAS, OPANAL, OPCW, UN, UNCTAD, UNESCO, UNIDO, UPU, WCO, WFTU, WHO, WIPO, WMO, WToO, WTO

GDP per capita : U$4,100 (2004 est.)

GDP Real Growth Rate : 1.9% (2004 est.)

GDP sectoral composition : agriculture: 6.1%; industry: 32.7%; services: 61.3% (2004 est.)

Investment (gross fixed): 32% of GDP (2004 est.)

Industries: tourism, bauxite/alumina, textiles, agro processing, wearing apparel, light manufactures, rum, cement, metal, paper, chemical products, telecommunications

Industrial production growth rate : -2% (2000 est.) 

Agriculture - products : sugarcane, bananas, coffee, citrus, yams, vegetables, poultry, goats, milk, crustaceans, and mollusks

Exports : U$1.679 billion f.o.b. (2004 est.)

Exports - commodities : alumina, bauxite, sugar, bananas, rum, coffee, yams, beverages, chemicals, wearing apparel, mineral fuels

Exports - partners : US 17.4%, Canada 14.8%, France 13%, China 10.5%, UK 8.7%, Netherlands 7.5%, Norway 6%, Germany 5.9% (2004)

Imports : U $3.624 billion f.o.b. (2004 est.)

Imports - commodities : food and other consumer goods, industrial supplies, fuel, parts and accessories of capital goods, machinery and transport equipment, construction materials

Imports - partners : US 38.7%, Trinidad and Tobago 13.2%, France 5.6%, Japan 4.7% (2004)

QUALITATIVE TRADE PROFILE  

Broad trade policy and development goals continue to be set with reference to the National Industrial Policy 1996-2010. A New Trade Policy (NTP) was adopted by the Government in 2001. Its three key objectives are: to expand and diversify exports, to reduce the share of imports relative to output, and to increase the flow of net positive returns from foreign investment. Recognizing that Jamaica's trade policy had focused previously on market access issues and on preserving its benefits from preferential trading arrangements, the new policy focuses on both exports and imports, as well as investments

Jamaica 's trade policy is designed and implemented within the framework of the Caribbean Community and Common Market (CARICOM), of which it is one of the leading members. Jamaica applies provisionally the Revised Treaty of Chaguaramas, which is aimed at consolidating the Caribbean Single Market and Economy. Jamaica applies the CARICOM Common External Tariff (CET). The tariff generally applies a top rate of 20% for industrial goods and 45% for agricultural products. The structure of the tariff is based on the concept of the economic use of the goods, differentiated between inputs and final goods. Inputs are identified as primary, intermediate or capital goods, while for final goods, distinction is made between basic and non-basic categories of goods. Certain foodstuffs and other supplies are classified as basic, while all other final goods are non-basic.

During the Uruguay Round, Jamaica bound all of its tariff lines. Tariff rates on non-agricultural products were bound at a uniform rate of 50% (with the exception of those previously bound at the lower level). In agriculture, Jamaica bound its tariffs at 100% (except for those previously bound at the lower level). Other duties and charges were bound at 15%. Despite this, he gap between applied and bound tariffs remains wide, and applied rates are above their bound levels for a number of products, in some cases by as much as 20 percentage points.

The simple average applied MFN tariff was 8.6% in 2004. Tariff rates range from 0% to 100% for agricultural products (WTO definition) and from 0% to 40% for non-agricultural products. Average tariff protection for agricultural products remains substantially higher than for non-agricultural products: 18.1% and 6.7%, respectively.

INSTITUTIONAL FRAMEWORK 

The formulation and implementation of Jamaica's foreign trade policy falls principally within the purview of the Ministry of Foreign Affairs and Foreign Trade, working closely with other Ministries and departments. The Ministry of Foreign Affairs and Foreign Trade deals with international trade issues, acts as a coordinator in trade policy matters and is responsible for engaging in bilateral and multilateral trade and investment negotiations. It handles the coordination of WTO matters, deals with CARICOM policy and negotiation, and with all matters related to the FTAA, ACP/EU, and bilateral issues. The work of the Ministry of Foreign Affairs and Foreign Trade is supported by other Ministries and agencies and 18 diplomatic missions and consulates. As a member of CARICOM, Jamaica committed to a regionally coordinated external trade policy for the group. Jamaica therefore coordinates closely with the relevant regional agencies on trade policy matters, including the Caribbean Regional Negotiating Machinery (RNM).

The Ministry of Commerce, Science and Technology has responsibility for intellectual property rights, distributive trade, and anti-dumping measures. For the exercise of its functions, the Ministry has a number of agencies ascribed to it: the Bureau of Standards, the Anti-dumping and Subsidies Commission, the Fair Trading Commission, and the Jamaica Intellectual Property Organization. The Ministry of Finance and Planning is responsible for all fiscal policy issues and is responsible for tariff policy and customs administration, including tariff administration. The Ministry of Industry and Tourism (MIT) is responsible for formulating and implementing industry, tourism and entertainment policies. The Ministry of Transport and Works is responsible for maritime, road, and air transport policy formulation and implementation. Other Ministries involved in foreign trade include the Ministry of Agriculture, and the Ministry of Commerce, Science and Technology. The Attorney General's Department is responsible for providing legal advice to the Government of Jamaica and must review international agreements including trade agreements.

The Jamaica Trade Adjustment Team (JTAT), a task force with private sector participation, was established to undertake a comprehensive review and update of Jamaica's trade policy. The ongoing functions of the JTAT are: to assist in policy formulation and implementation on trade matters and to facilitate coordination of all public sector and private sector, including civil society, organizations and individuals involved in trade policy formulation and implementation. The JTAT also acts as an advisory body, providing advice on multilateral and bilateral negotiations and assessing national and sectoral plans to guide trade policy and negotiating strategies in bilateral and multilateral agreements.

TRADE AGREEMENTS

Bilateral

Jamaica has bilateral trade agreements with Colombia, Costa Rica, Cuba, Dominican Republic, and Venezuela through the Caribbean Community (CARICOM). It is a beneficiary of the Generalized System of Preferences schemes of Australia, Bulgaria, Canada, the Czech Republic, the European Union, Hungary, Japan, New Zealand, Norway, Poland, Russia, the Slovak Republic, Switzerland, and the United States. The Caribbean Basin Initiative (CBI) provides for duty-free access to the U.S. market for a range of Jamaica's exports. Exports from Jamaica also enjoy preferential access to the Canadian market through the Canadian Programs for Commonwealth Caribbean Trade, Investment and Industrial Cooperation (CARIBCAN). Through CARICOM, Jamaica is currently negotiating a free trade agreement to replace CARIBCAN as well as a free trade agreement with MERCUSOR.

Regional

Jamaica is one of the founding members of the Caribbean Community and Common Market (CARICOM). Jamaica has responsibility within the CARICOM for External Negotiations. It is currently negotiating an Economic Partnership Agreement with the EU through the CARIFORUM configuration. It is also involved in negotiations to form the hemispheric Free Trade Area of the Americas.

Multilateral

Jamaica is a founding member of the WTO and extends at least MFN treatment to all its trading partners. Under the GATS, Jamaica made commitments in 48 sectors including tourism, business (including professional), educational, health related, recreational, transport, and financial services, and participated, in the extended negotiations on basic telecommunications and financial services.

NEED PRIORITIES  

Priority areas for Jamaica are; technical assistance to develop programmes to strengthen the flow of information among inter-governmental agencies; assistance in expanding JTAT to the parish and community level; disseminating stakeholder information; training to understand linkages between trade and fiscal policy; trade data analysis training; and foreign language training.

Source: Commonwealth Yearbook 2005, World Fact Book, WTO Secretariat.