98-4263 MOREPRESS RELEASE
PRESS/TPRB/86
2 November 1998
TRADE POLICY REVIEW BODY
REVIEW OF JAMAICA
TPRB'S EVALUATION
The Trade Policy Review Body of the World Trade Organization (WTO) concluded its first
review of Jamaica's trade policies on 29 a nd 30 October 1998. The text of the Chairperson's
concluding remarks is attached as a summary of the salient points which emerged during the
discussion. The review enables the TPRB to conduct a collective examination of the full range oftrade policies and practices of each WTO member country at regular periodic intervals to monitor
significant trends and developments which may have an impact on the global trading system.
The review is based on two reports which are prepared respectively by the WTO Secretariat
and the government under review and which cover all aspects of the country's trade policies, including
its domestic laws and regulations, the institutional framework, bilateral, regional and otherpreferential agreements, the wider economic needs and the external environment.  A record of the
discussion and the Chairperson's summing-up together with these two reports, will be published in
due course as the complete trade policy review of Jamaica and will be available from the WTO
Secretariat, Centre William Rappard, 154 rue de Lausanne, 1211 Geneva 21.
Since December 1989, the following reports have been completed: Argentina (1992),
Australia (1989, 1994 & 1998), Austria (1992), Bang ladesh (1992), Benin (1997), Bolivia (1993),
Botswana (1998), Brazil (1992 & 1996), Cameroon (1995), Canada (1990, 1992, 1994 & 1996), Chile
(1991 & 1997), Colombia (1990 & 1996), Costa Rica (1995 ), Côte d'Ivoire (1995), Cyprus (1997), the
Czech Republic (1996), the Dominican Republic (1996), Egypt (1992), El Salvador (1996), the
European Communities (1991, 1993, 1995 & 1997), Fiji (1997), Finland (1992), Ghana (1992), HongKong (1990 & 1994), Hungary (1991 & 1998), Icel and (1994), India (1993 & 1998), Indonesia (1991
and 1994), Israel (1994), Jamaica (1998), Ja pan (1990, 1992, 1995 & 1998), Kenya (1993), Korea,
Rep. of (1992 & 1996), Lesotho (1998), Macau (19 94), Malaysia (1993 & 1997), Mauritius (1995),
Mexico (1993 & 1997), Morocco (1989 & 1996), New Zealand (1990 & 1996), Namibia (1998),
Nigeria (1991 & 1998), Norway (1991 & 1996), Pakistan (1995), Paraguay (1997), Peru (1994), the
Philippines (1993), Poland (1993), Romania (1 992), Senegal (1994), Singapore (1992 & 1996),
Slovak Republic (1995), the Solomon Islands (1998), South Africa (1993 & 1998), Sri Lanka (1995),
Swaziland (1998), Sweden (1990 & 1994), Switzerland (1991 & 1996), Thailand (1991 & 1995),
Tunisia (1994), Turkey (1994 & 1998), the United States (1989, 1992, 1994 & 1996), Uganda (1995),
Uruguay (1992), Venezuela (1996), Za mbia (1996) and Zimbabwe (1994).PRESS/TPRB/86
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MORETRADE POLICY REVIEW BODY
Review of Jamaica
Concluding remarks by the chairperson
The first Trade Policy Review of Jamaica was conducted by the TPR Body on 29-30 October
1998.  These remarks, prepared on my own responsibility, are intended to summarize the main points
of the discussion;  they are not intended as a full report.  Details of the discussion will be fully
reflected in the minutes.
The discussion developed under three main themes:  (i) economic environment;  (ii) trade
policy measures;  and (iii) sectoral policies.
Economic environment
Members congratulated Jamaica on its structural reform, underpinned by prudent
macroeconomic management.  In consequence, inflation had been significantly reduced and the
economy had become more efficient and outward oriented.  Members noted, however, that challenges
remained, including high unemployment and a substantial internal debt;  in view of the large trade
deficit, they also asked about the competitiveness of Jamaica's exports, particularly given rising unit
labour costs and recent real appreciation of the currency.  Members sought assurance on the Jamaicanpolicy response, including with respect to the investment environment.
Members welcomed Jamaica's strong commitment to the multilateral trading system and
stressed the view that Jamaica's growing regi onal links should continue to complement its
contribution to the system.  They asked about the coordination of Jamaica's trade policies with
CARICOM and the effect of the erosion of preferences on Jamaica's exports;  in this respect theyinquired about efforts to diversify both Jamaica's export product mix and markets.
The representative of Jamaica reiterated his country's commitment to an open, multilateral
trading system.  He felt that the benefits of the system were not always equally distributed, which
should be addressed, as otherwise it might be difficult to maintain wide-ranging support for it.  With
respect to regional trade policy, he indicated the steps taken by CARICOM to deepen economic
integration, and noted that Jamaica was progressively increasing the coordination with CARICOM,
with the goal of moving to a Single Market.
On the issues raised by Members, the representative of Jamaica said that government policy
aimed at achieving macroeconomic stability including inflation control and reducing exchange rate
volatility;  given the high import content of Jamaican production and consumption he was not surethat export competitiveness would be improved by currency depreciation.  With regard to diversifying
export products and markets, a number of initiatives were being taken including niche market
promotion and improved techniques for innovation and product development.  He recognized the
concerns raised regarding the build-up of internal imbalances;  these would be addressed through
continued use of disciplined macroeconomic policies, improved productivity and enhanced
cooperation among social partners.
Trade policy measures
Members welcomed the many trade-liberalizing measures taken by Jamaica in recent years;
these included a lowering of tariffs, an eliminati on of quantitative restrictions and a reduction in the
scope of import licensing.  These measures had been integral to the creation of a more market-
oriented economy, and had also encompassed the removal of price controls, privatization and
financial sector reform.  In encouraging Jamaica to  continue with these efforts, Members raised aPRESS/TPRB/86
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MOREnumber of questions particularly with respect to:  high border charges, including additional duties;
customs valuation;  import and export licensing;  anti-dumping and government procurementprocedures;  the updating of standards;  and the system of incentives, especially subsidies and tax
allowances.  Questions were also posed on intellectu al property rights and competition policy, as well
as on Jamaica's efforts to amend domestic legislation to give effect to the WTO obligation.
In reply, the representative of Jamaica stated that his country would continue with
trade-opening measures.  Jamaica would move to Phase IV of the revised Common External Tariff(CET) and adopt the six-digit tariff structure HS96 in January 1999.  Clarification was provided on
the application of other levies and charges, including additional duties, on imports;  there was no
immediate plan to reduce them but taxation review was in progress to simplify and improve
compliance.  Jamaica's tariff schedule would be shortly submitted to the WTO Integrated Data Base.
On customs valuation, he accepted that the publication of reference prices would improve
transparency, and he clarified aspects of the Fair Competition Act.
Jamaica was actively working on amending its legislation and procedures in a number of
areas, including TRIPS, anti-dumping, standards, government procurement and customs valuation.
The representative of Jamaica stressed the need for technical assistance to strengthen the capacity of
small trading partners to meet reporting obligations  under the WTO and to fully exercise their rights.
Sectoral and structural issues
Members acknowledged the challenges faced by Jamaica as a small island economy and
welcomed its efforts to encourage a more efficient sectoral allocation of resources.  A number of
questions arose, particularly with respect to agriculture, textiles and clothing, and services.  On
agriculture, Members asked about issues such as high tariffs, preferential interest-rate schemes and
other subsidies, and efforts to increase the role of the private sector.  With respect to textiles, some
questions arose about the industry's cost structure, particularly with respect to labour, and aboutaccess to the U.S. market.  On services, Members welcomed Jamaica's commitments in the GATS and
encouraged a broadening of their scope, particularly in financial services.  A number of questions
were raised on specific issues, including about "exclusive rights" provisions in telecommunications
and the MFN exemption in maritime transport.
The representative of Jamaica replied, that agricultural policies should reflect concerns about
rural development, poverty alleviation and the building of competitiveness, as well as Jamaica's WTO
commitments.  Detailed information was provided regarding milk production programmes and state
trading enterprises in the sector.  He stressed that Jamaica did not use agricultural export subsidies.
Regarding textiles, details were provided with respect to the Caribbean Basin Initiative preferential
regime.
The Jamaican representative noted that his delegation would provide further written answers
in some areas, including licensing, additional duties, financial services, telecommunications and
tourism.
*******PRESS/TPRB/86
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Conclusions
In conclusion, Members expressed appreciation for Jamaica's active participation in, and
contribution to the work of the WTO.  It is also my sense that Members strongly welcomed the many
steps that Jamaica has already taken in becomi ng a more open, outward-oriented economy that is
integrated into the multilateral system;  they acknowledged the challenges faced by Jamaica as a small
economy.  It is felt that a continuation of Jamaica's trade-opening efforts would consolidate the basisfor steady, sustainable growth;  in this respect, the support of Jamaica's trading partners will also be
important.
END