WT/TPR/S/139 Trade Policy Review 
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II. TRADE AND INVESTMENT POLICY REGIME 
(1) OVERVIEW  
1. Since its previous Review in 1998, Jamaica h as formulated and implemented its trade policy 
within a stable legal framework.  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 incr ease the flow of net positive returns from foreign 
investment. 
2. Jamaica is an original Member of the WTO, and one of its most active developing Members.  
Within the WTO, Jamaica has presented numerous submissions advocating special and differential 
treatment for developing countries, including a pape r to adopt provisions of this type in dispute 
settlement.  Jamaica also advocates increased part icipation in, and use of the multilateral trading 
system by developing countries and, in this c ontext proposes making some rules more flexible and 
their application less costly, so that they can be u sed by developing countries.  Jamaica participated in 
the GATS negotiations on telecommunications, and on financial services.  Jamaica has ratified the 
Fourth Protocol to the GATS, on basic telecommunications services, but, as at May 2004, it had not 
ratified the Fifth Protocol, on financial services. 
3. Jamaica has maintained an active programme of notifications to the WTO.  It has not been 
involved directly, as either plaintiff or defendant , under the WTO dispute settlement mechanism.  
However, it has participated as a third party in sev eral panels, mostly concerning issues that might 
affect its preferential margins to export markets. 
4. Jamaica's trade policy is designed and implemen ted within the framework of the Caribbean 
Community and Common Market (CARICOM), of whic h it is one of the leading members.  Jamaica 
applies provisionally the Revised Treaty of Chag uaramas, which is aimed at consolidating the 
Caribbean Single Market and Economy. 
5. Through its participation in CARICOM, Jamaic a has concluded preferential trade agreements 
with Venezuela, Colombia, the Dominican Republic , Cuba, and Costa Rica;  the agreement with 
Costa Rica is not yet in effect (July 2004), wh ile the agreement with Cuba is being applied 
provisionally.  Jamaica's exports also benefit from preferential market access under a number of non-
reciprocal preferential trade arrangements offered by a number of developed countries.  Jamaica's 
growing network of such agreements raises con cerns about the resulting administrative burden, the 
impact on trade and investment flows, increased co mplexity of the trade regime, and possible trade 
diversion.  One of the challenges Jamaica is fa cing is adjusting to an environment in which 
preferences are being eroded. 
6. Jamaica's investment regime is open to forei gn investors and grants national treatment with 
few exceptions, for example air transport.  Invest ors may benefit from a number of import duty and 
tax concessions.  Since its last Review, Jamaica has continued to make progress in simplifying 
regulations and procedures and creating a more invest ment-friendly environment.  In part as a result, 
investors' perception of Jamaica as a prime locati on for foreign direct investment has improved (see 
also Chapter I(3)(iii)). Jamaica WT/TPR/S/139 
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(2) TRADE POLICY FORMULATION AND IMPLEMENTATION  
(i) General legal and institutional framework 
7. Jamaica, a member of the Commonwealth of Natio ns, became an independent nation in 1962.  
The Constitution is Jamaica's supreme law and any law th at is inconsistent with it is void to the extent 
of the inconsistency.  Constitutiona l amendments can be a pproved by a simple majority of both the 
House of Representatives and the Senate.  However, entrenched provisions of the Constitution, such 
as those preserving fundamental rights and freedoms,  require a two-thirds majority of the house 
before an amendment can take place.  Moreover, an  amendment to the provisions that deal with 
membership to the House of Representatives require majority support in the legislature as well as a 
referendum.  The Head of State is the British m onarch whose local representative is the Governor 
General. 
8. Jamaica is a Parliamentary democracy, modelled on the Westminster system.  The Parliament 
comprises the monarch, the Senate and the Hou se of Representatives.  The Senate comprises 
21 members, appointed by the Governor General;  13 appointed in accordance with the advice of the 
Prime Minister, and eight in accordance with the ad vice of the Leader of the Opposition.  The House 
of Representatives consists of 60 members elected under universal a dult suffrage.  The members are 
elected by single-member constituen cies on the first-past-the-post basis.  The Government in power 
must have the support of the majority of the members of the H ouse of Representatives. 
9. Lawmaking is the responsibility of the legisl ature.  Initial proposals are framed by the 
Executive and then introduced as a bill in Parliament.  A bill may be introduced in either house of 
Parliament, but the Constitution restricts the introduction of a money-bill to the House of 
Representatives.  A bill introduced in Parliament go es through several stages:  it is presented and 
published in a first reading, debated in a second reading, examined and amended by a Committee 
(Committee stage), presented by the Speaker of the H ouse (report stage), and accepted or rejected in a 
third reading.  Once the bill receives the requis ite majority and is passed by the House of 
Representatives, then it is placed before the Se nate, where a similar procedure is followed.   If 
accepted by the Senate, the bill is presented to th e Governor General for royal assent.  Bills are 
certified by the Attorney General.  An Act of Parliame nt can enter into force with immediate effect, or 
simply be proclaimed but with a suspension of its enforcement.  All laws passed by Parliament are 
officially published in the Government Gazette . 
10. International agreements must be concluded by the Prime Minister after approval by the 
Cabinet.  They do not automatically enter into for ce and must be ratified by Parliament when the law 
is passed.  International agreements to which Jamaic a is a signatory must first be incorporated into 
domestic law before they can be invoked before th e courts;  this applies to the provisions of WTO 
Agreements. 
11. The executive authority of Jamaic a is vested in the British monarch;  this authority may 
be exercised by the Governor General on behalf of  the monarch.  The Governor General must act 
in accordance with the advice of the Cabinet.  Th e Cabinet is charged with the general direction 
and control of the Government of Jamaica and is  collectively responsible to Parliament.  The 
Prime Minister is appointed by the Governor Ge neral from amongst the members of the House of 
Representatives.  The Prime Minister, as leader of  the Executive appoints members of Parliament to 
form the Cabinet.  There is a Constitutional requirement  that at least two, but no more than four of the 
members of the Cabinet be appointed from the Sena te.  Cabinet members have  conduct of the various 
ministries, which are sometimes supported by relate d agencies and statutory bodies.  Constitutionally, 
elections must be held every five years, but they may be called at any time by the Prime Minister.  WT/TPR/S/139 Trade Policy Review 
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The last general elections took place in October 2002.  The Governor General has the power to 
prorogue Parliament and to dissolve it in circ umstances where the majority of the House of 
Representatives support a no-confidence motion against the Government. 
12. The judicial system of government is based, to a large extent, on English common law.  
Through the principle of separation of powers, the j udiciary is independent of the legislature and the 
executive.  This independence is also guaranteed by the Constitution.  The head of the judiciary is the 
Chief Justice.  The judiciary comprises the Supreme Court, the Court of Appeal, and inferior courts, namely the Resident Magistrate's Courts, and the Petty Sessions Courts;  the latter are presided over 
by Justices of the Peace.  The Supreme Court has original jurisdiction and hears applications for 
redress of breaches of fundamental rights and freedom  provisions of the Constitution.  Within the 
Supreme Court, there are specialized courts such as the Revenue Court, established in 1971, and the 
Commercial Court, which began opera tions in February 2001.  The Chief Justice, a senior judge, and 
six other judges sit in the Supreme Court. 
13. Magistrates courts deal with most criminal offences and conduct committal proceedings in 
serious cases that are tried in the Supreme Court.  These courts also have limited jurisdiction in civil 
cases.  There is a Resident Magistrate in each of the 14 parishes;  they are presided by a lawyer of at 
least five years standing at the Bar.  These Courts also have a limited jurisdiction in civil cases.  The 
final court of appeal is the Judicial Committee of the Privy Council in Lond on, England.  However, 
Jamaica, along with the other members of the Ca ribbean Community (CARICOM) are in the process 
of creating the Caribbean Court of Justice (CCJ) to  replace the Privy Council as the final court of 
appeal.  The CCJ is scheduled to be inaugurated in November 2004. 
14. Jamaica is divided into three counties and 14 parishes.  Local governments are funded by 
local taxes and do not have regulation-maki ng powers on issues beyond the scope of local 
administration.  
(ii) Trade and investment policy objectives 
15. Broad trade policy and development goals are included in the National Industrial Policy for 
the period 1996 to 2010, formulated by the Planning Institute of Jamaica, aimed at improving the 
efficiency of the Jamaican economy and the quality of  life, through higher GDP growth rates and an 
increase in the value of exports.  The Plan target s five strategic clusters:  tourism, shipping and 
berthing, agri-processing, apparel, and bauxite and alumina, and highlights the need to revise the 
system of incentives. 
16. More specific and precise trade policy actions are outlined in the Government's New Trade 
Policy (NTP).
1  The authorities view the NTP as a support for the NIP.  The NTP is based on a paper 
prepared by the Jamaica Trade Adjustment Team (JTAT, see below), which was circulated among the 
public and private sectors, academia, and civil society institutions.2  The results of the consultations 
were reflected in the Ministry's paper.  R ecognizing 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.  The NTP has three key objectives:  to expand and diversif y exports by facilitating the growth of domestic 
capital;  to steadily reduce the share of imports rela tive to exports (import displacement);  and to 
increase the flow of net positive returns from foreign investment. 
                                                     
 
1 Ministry of Foreign Affairs and Foreign Trade (2001). 
2 Jamaica Trade Adjustment Team (2001). Jamaica WT/TPR/S/139 
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17. The NTP seeks to facilitate the developmen t of domestic capacity to produce goods and 
services by increasing domestic capital formation, including both physical and human capital, as well 
as infrastructure.  It is aimed at enhancing Jama ica's capacity to export by promoting measures to 
facilitate foreign market penetrati on, and developing a broader export base.  In this respect, the new 
trade policy guideline is to:  negotiate for the rem oval of tariff and non-tariff barriers abroad within an 
asymmetrical timeframe that can enable effective market penetration;  focus trade negotiations on the implications of the WTO Agreements for exports ;  support the granting of incentives for foreign 
investment targeted at facilitating domestic capital formation;  engage in sector-specific and issue-
specific negotiations to address supply-side constraints and facilitate targeted market penetration;  and 
use trade remedies as defensive tools to assist the development of strategic firms/sectors that are 
creating and using domestic capital.
3 
18. The NTP seeks to achieve import replacemen t without actually adopting import substitution 
policies per se , but by taking account of the multilateral fra mework and globalized environment, and 
adopting measures to improve the productivity and competitiveness of Jamaican products and foster 
awareness of the availability of local products.  In  this respect, the NTP guideline is to "facilitate 
access to cheaper imports", while "slow(ing) the pace of tariff and non-tariff reduction".4  A s  
supplementary tools to attain the goal of import di splacement, the NTP also mentions the need to 
grant incentives for FDI consistent with the TR IMs Agreement, as well as stimulating FDI flows 
through linkage programmes between foreign affiliates and domestic  firms.  With respect to trade 
negotiations, the strategy is to subordinate the st ructure and pace of tariff and non-tariff reductions to 
the need to stimulate domestic capital growth and to adjust to the global trading environment. 
19. The NTP calls for increased private sector i nvolvement in regional policy formulation and 
negotiations.  It also calls for acceleration of the implementation of the CARICOM Single Market and Economy (CSME), including the establishment of the Ca ribbean Court of Justice;  the acceleration of 
free movement of people, within and outside of CA RICOM;  and the strengthening of bilateral trade 
with Caribbean Basin countries, such as Venezuel a, Colombia, the Dominican Republic, and Cuba.  It 
calls for the negotiating process for the Free Trade Ar ea of the Americas (FTAA), to take into account 
the vulnerabilities associated with "small economies"  by focusing on the need to develop a strong 
domestic capital base.  The NTP recognizes the need  to prepare for the ending of preferential 
arrangements and to preserve preferences only as long as is necessary for adjustment to take place 
while preparing for reciprocal free trade in the FTAA and the ending of EU preferences by 2008. 
20. With respect to the multilateral trading sy stem, the NTP recognizes the need to fulfil 
Jamaica's obligations under the WTO, to monitor de velopments and respond to issues arising in WTO 
negotiations, advocating a proactive approach  in these negotiations to promote domestic 
capital formation.  To this end, the NTP suggests continuing to introduce and amend legislation and modify or create institutions.  The NTP guidelines are to negotiate for time concessions linked to 
specific adjustment activities, continue preferen tial arrangements during the period of adjustment, 
obtain special considerations for "small states", a nd alleviate supply side constraints and increase in 
domestic capital formation by utiliz ing special and differential trea tment provisions and engaging in 
sector-specific negotiations to achieve these objectives. 
(iii) Trade policy formulation and implementation 
21. 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 
                                                     
 
3 Jamaica Trade Adjustment Team (2001). 
4 Ministry of Foreign Affairs and Foreign Trade (2001). WT/TPR/S/139 Trade Policy Review 
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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 polic y and negotiation, and with all matters related to the FTAA, 
ACP/EU, and bilateral issues.5  The work of the Ministry of Foreign Affairs and Foreign Trade is 
supported by other Ministries and agencies and 18 diplomatic missions and consulates.6 
22. The Ministry of Commerce, Science and T echnology has responsibility for intellectual 
property rights, distributive trade, and anti-dumping measures.7  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 Commi ssion, and the Jamaica Intellectual Property 
Organization (Chapter III). 
23. The Ministry of Finance and Planning is res ponsible for all fiscal policy issues including the 
administration of the Revenue Administration Act.  It sets Jamaica's fiscal and economic policies and 
regulates the operation of the country's financial ins titutions, including the Bank of Jamaica, mainly 
through its Financial Services Regulation Division.8  The Ministry has ultimate authority over the 
country's monetary and exchange rate policy, an d is responsible for tariff policy and customs 
administration, including tariff administration.9  Other specialized bodies of the Ministry include the 
Statistical Institute of Jamaica and the Planning  Institute of Jamaica.  The Bank of Jamaica 
administers the country's monetary policy.  The Financial Services Commission regulates the 
insurance industry. 
24. The Ministry of Industry and Tourism (MIT) is  responsible for formulating and implementing 
industry, tourism and entertainment policies.  The Mi nistry of Transport and Works is responsible for 
maritime, road, and air transport policy formulation and implementation.  Its statutory bodies include 
the Civil Aviation Authority, the Airports Authorit y of Jamaica, the Maritime Authority, the Port 
Authority of Jamaica (Chapter IV(6)).10  Other Ministries involved in foreign trade include the 
Ministry of Agriculture, and the Ministry of Co mmerce, Science and Technology.  The Attorney 
General's Department is responsib le for providing legal advice to the Government of Jamaica and 
must review international agreements including trade agreements. 
25. Jamaica's investment and export promotion are facilitated by the Jamaica Promotions 
Corporation (JAMPRO), an agency under the Minist er of Development.  JA MPRO facilitates various 
types of government approvals on behalf of invest ors, including for incentives, as applicable;  film 
and mining licences;  work permits and work permit s exemptions;  the processing of work visas and 
land and building approvals.  JAMPRO also  maintains a registry of exporters.11 
26. Since the last review of Jamaica, its consulta tion mechanism for trade policy formulation has 
been strengthened.  The Jamaica Trade Adjustment Team (JTAT), a task force with private sector 
participation, was established to undertake a comp rehensive review and upda te of Jamaica's trade 
policy.12  The JTAT succeeds the Trade Coordinati on and Policy Committee (TCPC) established by 
                                                      
5 MFAFT online information.  Available at:  http://www.mfaft.gov.jm. 
6 MFAFT online information.  
7 MCT online information.  Available at:  http://www.mct.gov.jm/portfolio.htm. 
8 MOF online information. Available at:  http://www.mof.gov.jm/programmes/tm/tax/default.html. 
9 MOF online information.  
10 MTW online information.  Available at:  http://www.mtw.gov.jm/Dep_Agen/port_authority_agncy. 
htm. 
11 JAMPRO online information.  Available at:  http://www.investjamaica.com/services/index.php. 
12 MFAFT online information.  Available at:  h ttp://www.mfaft.gov.jm/Ministry/Departments/Foreign 
%20Trade/consult.htm. Jamaica WT/TPR/S/139 
 Page 23 
 
 
the Cabinet in 1992.  The ongoing functions of th e 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 a dvisory body, providing advice on multilateral and 
bilateral negotiations and assessing national and sect oral plans to guide trade policy and negotiating 
strategies in bilateral and multilateral agreements.  Th e work of the JTAT has a wider scope than that 
of the TCPC, since it incorporates more private sector  groups and representatives of civil society in 
Jamaica.  It has, therefore deepened and widene d the consultation process for trade policy formulation 
in Jamaica. 
27. At the regional level, Jamaica coordinates tr ade and economic policy with other Caribbean 
Community and Common Market (CARICOM) countries, through the Council for Trade and Economic Development (COTED), which meets twice a year.
13  Since Jamaica's previous review in 
1998, this coordination has increased. 
(iv) Investment and business framework 
28. The investment environment for enterprises is regulated in Jamaica by the Companies Act, 
1965, the Registration of Business Names Act of 1934,  and the Industrial and Provident Societies Act 
of 1903.  A new Companies Act 2004  was passed in the Senate in March 2004;  the authorities 
indicate that the Act will come into effect on 1 Janua ry 2005.  All companies, foreign or domestic, as 
well as individuals carrying on business in Jamaica must be registered at the Office of the Registrar of Companies (ORC), a department of the Mini stry of Commerce, Science and Technology. 
29. Under Jamaican law, there are three basic enterp rise structures:  a business name, registered 
under the Business Names Act, a comp any (a commercial enterprise) registered or incorporated under 
the Companies Act, and an industrial and provident society.  Business names are registered at the 
ORC for a fee of J$1,500.  Business name certif icates are valid for three years, renewable.
14  The cost 
of registering a company is J$7,000, and the fee to register an industrial and provident society is J$6,000. 
30. There is a minimum requirement of at least two shareholders (and a maximum of 20) to 
incorporate a private company;  for public companies the minimum requirement is seven 
shareholders.  According to the authorities, th e incorporation process takes around two weeks.  The 
Companies Act 2004 introduces the possibility of a single person forming a company (either private a public).  Companies incorporated abro ad can be registered in Jamaica without incorporation;  they are 
required to appoint a resident representative in Jamai ca.  Joint ventures take the form of partnerships, 
which may not exceed 20 people.  Companies are re quired to register with the tax authorities and 
obtain an income tax reference number, and to obta in a national insurance reference number from the 
Ministry of Social Security.  They are also required to register with the National Housing Trust (NHT), and obtain a general consumption tax (GCT ) registration and a tax compliance certificate 
(TCC);  and if they wish to export, they must register with JAMPRO.  Depending on the planned 
activity, the requirements may also include an e nvironmental impact assessment by the Natural 
Resources Conservation Authority (NRCA) or an inspection and licensing by the appropriate 
Government Agency.
15 
                                                      
13 MFAFT online information. Available at:  http ://www.mfaft.gov.jm/Ministry/Departments/Foreign 
%20Trade/consult.htm. 
14 ORC online information.  Available at:  http:// www.orcjamaica.com/services/bus_registration. asp. 
15 Jamaica Trade Point online information.  Availabl e at:  http://www.jamaicatrade point.com/FAQ.asp. WT/TPR/S/139 Trade Policy Review 
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31. The Companies Act 2004, grants a private company the capacity, rights, powers, and 
privileges of an individual, and makes mutual fund companies registerable.  The Act also introduces 
new requirements with respect to a company's acc ounts, and establishes disclosure requirements for 
shareholders, debenture holders, directors, and officers of a company. 
32. Investment profits (except in free zones) are generally subject to a 25% tax rate for 
individuals and 331/3% for companies, except in the case of life insurers and building societies, which 
pay 15% and 30%.  Insurance companies incorporat ed in Jamaica and with a home base in another 
CARICOM member state, pay a further 1.5% tax on income from premiums;  the rate is 2% when the 
home base is located outside CARICOM.  Dividends are subject to a 25% withholding tax.  Income 
tax is applicable to interest paid or credited to i ndividuals by financial institu tions at a rate of 25%.  
There is no capital-gains tax.  A 7.5% tax is a pplied on transfers of land, shares, stock, and 
debentures, except for the transfer of shares and other securities listed on the Jamaica Stock 
Exchange, which is free from both the transfer tax a nd the stamp duty.  Stamp duty must be paid on 
transfers of shares and land;  the rates are between 1% and 5.5%.  Exemptions to the corporate profit 
tax are granted to companies with "approved status " in accordance with the Income Tax Act, as well 
as to companies involved in certain agricultural ac tivities, such as horticulture, fruit growing, and 
livestock keeping. 
33. A key part of Jamaica's development strategy is stimulating foreign direct investment (see 
also Chapter I(3)(iii)).16  JAMPRO is in charge of promo ting foreign investment in Jamaica, 
particularly in the non-traditional areas.  JAMP RO provides the secretariat for the Investment 
Facilitation Board (comprising members from the public sector), which seeks to resolve any problem 
during the investment process and expedite the granting of the necessary government approvals.  
JAMPRO facilitates various types of government appr ovals on behalf of investors, including approval 
for incentives, film and mining licences, work permits and business visas, and land and building approvals. 
34. There is no specific legislation on foreign inv estment in Jamaica.  Investment, including 
foreign investment, is protected under common law and by legislation related to investment incentives 
schemes.  The right of property is upheld by the Constitution.  Foreign investment is not defined in 
the domestic law.  In general, national treatment is applied. 
35. Foreign companies may invest th rough the establishment of a bran ch office, by incorporating 
a local subsidiary, by registering as an overseas company, by establishing a joint venture or a 
partnership, or through the acquisition of a local co mpany.  The most common practice is registration 
as an overseas company.  An overseas parent comp any must be registered with the Registrar of 
Companies within a month of its establishment in Jamaica and a place of business must be designated.  
A list of the directors of the company must be pr ovided to the Registrar, as well as the name and 
address of one or more persons resident in Jamaica  authorized to accept service of process on behalf 
of the company. 
36. Foreign investors may freely acquire shares of existing Jamaican companies; they pay the 
same transfer tax and stamp duty as domestic investors.  Transfers of shares of companies listed on the Jamaica Stock Exchange are exempt from transfer tax and stamp duty.  The capital structure of a company may comprise both ordinary and/or pref erence shares.  Redeemable Shares can only be 
redeemed out of company profits or out of a fresh issue of shares made for redemption purposes;  they 
must be fully paid up before they are redeemed.  A company may be wound up in one of three ways:  
by the Court, voluntarily by its members or credito rs, or voluntarily subject to Court supervision. 
                                                     
 
16 JAMPRO online information.  Available at:  http://www.investjamaica. com/sectors/tourism/ 
investments.html. Jamaica WT/TPR/S/139 
 Page 25 
 
 
37. Jamaica provides a number of investment incen tives, which are accessible to local and foreign 
investors (Chapter III(4)(ii)).  Companies that do not qualify under existing incentives laws, but are 
considered to have the potential to contribute significantly to foreign exchange earnings and 
employment, may be granted relief from import duties for up to three years by the Minister of 
Finance;  the onus of proving it has this potentia l is on the company.  Construction companies 
building factories and leasing or selling them  to manufacturers under the Export Industry 
Encouragement Act, are granted re lief from import duties for items not  available locally, and income 
tax on income from factory leasing or gains made from sales. 
38. The NIP mandated a review of Jamaica's fis cal incentives to improve the competitiveness of 
the business environment by making incentives more  transparent, simple, and performance-based. 
The Foreign Investment Advisory Service (FIAS) was requested to assist in the review.  Among the 
proposals advanced are a reduction of the corporate in come tax rate to 25% and the elimination of all 
tax holidays. 
39. JAMPRO manages technical assistance progr ammes that cover various sub-programmes 
funded by international agencies, mainly the Eur opean Development Fund (EDF), and the Centre for 
the Development of Enterprises (CDE).  JA MPRO also works with the Caribbean Export 
Development Agency (CEDA).  These programmes are available for investment in projects with the 
potential to contribute to Jamaica's development. 
40. Special conditions and exceptions to national treatment of foreign investment may be 
contained in the provisions of the various bilate ral agreements for the promotion and reciprocal 
protection of investments (BITs) signed by Jamaica.17  Most BITs contain provisions dealing with 
expropriation, compensation, protection from stri fe, dispute settlement, as well as standstill and 
rollback clauses.  Since 1998, BITs have been sign ed with Zimbabwe (1999);  Indonesia (1999);  
Egypt (1999);  Spain (2002); and Korea (2003).  Jamai ca had previously signed bilateral investment 
agreements with Argentina, Chin a, France, Germany, Italy, the Netherlands, Switzerland, the United 
Kingdom, and the United States.  The Ministry of Fo reign Affairs is responsible for negotiating BITs. 
41. Jamaica acceded in 2002 to the New York C onvention on the Recogn ition and Enforcement 
of Foreign Arbitral Awards (New York Convention) , which requires the signatories to recognize each 
other's arbitral decisions and awards and to refu se to allow litigation within the jurisdiction once the 
matter has been subject to arbitration.  Jamaica is  also a member of the Convention on the Settlement 
of Investment Disputes between States and Nationals of Other States administered by the World 
Bank. 
42. Jamaica has signed and ratified double taxation agreements with Canada, CARICOM, China, 
Denmark, France, Germany, Israel, Italy, Norw ay, Sweden, Switzerland, the United Kingdom, and the 
United States.  Under these treaties income tax ra tes for non-residents are lower than 25%, on certain 
types of income.  The agreement among CARICOM members to avoid double taxation covers taxes 
on income, profits or gains, and capital gains.18  The agreement applies to all CARICOM member 
states, except Montserrat, Suriname, and Haiti. 
43. Jamaica has made progress in recent years in simplifying regulations  and procedures and 
creating a more investment-friendly environment.  According to a recent World Bank study, the 
number of procedures and days required to establish a business in Jamaica is considerably lower than 
the average for Latin America and the Caribbean.  Also, the cost of starting a business was estimated 
to be 16.2% of gross national income per capita, ag ainst a regional average of 70.1%.  The study also 
                                                      
17 FTAA (1997) online information.  Available at:  http://alca-ftaa.iadb.org/eng/invest/JAM~ 1.HTM. 
18 ICTSD online information.  Available at:  h ttp://www.caricom.org/archives/doubletaxation.htm. WT/TPR/S/139 Trade Policy Review 
Page 26 
 
 
notes that Jamaica has no minimum capital requirements to start a business, while for the rest of the 
region, minimum capital requirements were equivalent  to 85.6% of gross national income per capita.19 
44. Another study, by the OECD, points out that investor perceptions of Jamaica as a location for 
FDI are improving.20  In this respect, several public-private sector initiatives are playing a key role in 
creating a more enabling environment for business and private investment.  These include:  the New 
Economy Project (NEP), a US$6 million project funded by the United States Agency for International Development (USAID) since 2001, aimed at improving the business environment for Jamaica's small, 
medium, and micro enterprises;  and the Jamai ca's Cluster Competitiveness project, which is 
sponsored by the U.K. Department for Internati onal Development (DFID) a nd launched in February 
2003, and is aimed at promoting private investment by mobilizing eight clusters of firms to compete 
in the global marketplace.  The Government is al so working with USAID and the Jamaica Chamber of 
Commerce on a Jamaica Regulations Legislation and Process Improvement Project, to streamline the incentives regime. 
(3) I
NTERNATIONAL RELATIONS  
(i) World Trade Organization 
45. Prior to independence, Jamaica applied GA TT de facto as member of the metropolitan 
territory of the United Kingdom.  Following independence in 1962, Jamaica became a GATT contracting party in December 1963, with its oblig ations under GATT retroactive to the date of 
independence.  Jamaica became a WTO Member in Ma rch 1995.  It applies at least MFN treatment to 
all its trading partners.  The WTO Agreements must  be incorporated into domestic legislation and 
may not be invoked directly in domestic courts. 
46. During the Uruguay Round, Jamaica bound its en tire tariff (Chapter III(2)(vi)).  Under the 
GATS, Jamaica made commitments on tourism, busin ess (including professional), educational, health 
related, recreational, transport, and financial services, and particip ated, in the extended negotiations 
on basic telecommunications and financial services (C hapter IV(6)).  However, Jamaica had not yet 
ratified the Fifth Protocol to the GATS (as at May 2004). 
47. Since its last review in 1998, Jamaica has continued to comply with its WTO notification 
obligations (Table AII.1). 
48. Jamaica has been working to implement the WTO Agreements by the upgrading and 
modernizing its legislative and in stitutional framework (see Chapter III).  Efforts are being made to 
improve the framework for the operation of a more open financial services sector.  To ease the 
implementation of commitments under the GATS, Jama ica has reinforced the legislative framework 
in the financial services sector (Chapter IV(6)). 
49. In the WTO, Jamaica has been  an active supporter of efforts to promote special and 
differential treatment (S&D) for developing countri es.  In the context of the Doha Development 
Agenda, Jamaica considers S&D integral to the negotiating process.
21  Jamaica has made a proposal 
                                                      
19 IBRD/World Bank, (2004).  The study analysed business environments in different countries based 
on five criteria:  starting a business, hiring and firing of work ers, contract enforcement, access to credit, and 
closing a business. 
20 OECD (2003). 
21 International Centre for Trade and Sustainable Development online information.  Available at:  
http://www.ictsd.org/dlogue/2003-05-06/Smith_remarks.pdf. Jamaica WT/TPR/S/139 
 Page 27 
 
 
pressing for S&D treatment for developing countries in WTO disputes.22  These points were also 
captured in a joint communication with respect  to amendments to the DSU's legal text.23  In another 
contribution, Jamaica proposed amendments to the DSU so as to include language recognizing the 
right of a WTO Member to determine the com position of its delegation in dispute settlement 
proceedings.24 
50. With respect to the negotiations on agriculture , Jamaica, together with CARICOM partners, 
has called for, among other things, balanced results that accommodate the issu es affecting the more 
vulnerable Members, and for meaningful S&D treatment .  It has also made proposals regarding tariff 
reductions, including the maintenance or expans ion of preferences, and exemptions from tariff 
reductions for a percentage of commoditi es exported by small developing countries.25 
51. Together with Barbados and Trinidad and Tobago, Jamaica submitted a proposal on market 
access for non-agricultural products.26  Jamaica also submitted a joint communication with respect to 
geographical indications, and another for the review of offers in services.27  In the preparatory process 
leading to the third WTO Ministerial Conference,  Jamaica submitted a proposal "to examine the 
relevant provisions of Article XXIV of GATT a nd Article V of GATS relating to regional trade 
agreements in which developing countries are part icipating, with a view to providing these countries 
with adequate scope for absorbing the adjustment co sts of trade liberalization and ensuring that these 
agreements make a sustained contribu tion to their economic development".28 
52. Jamaica has not been a plaintiff or defendan t in any case before the DSB (as at May 2004). 
53. It has participated as a third party in several cases, mainly related to agriculture, for example 
in the case involving the export of bananas from the ACP countries to the EU under a preferential 
trade regime, challenged by Ecuador, Guatemal a, Honduras, Mexico, and the United States.29  After 
the Appellate Body confirmed most of the Pane l findings, the EU introduced Regulation (EC) No. 
2587/2001 establishing a common organization of the banana market (see Chapter IV(2)).30  I n  a  
related matter, Jamaica was a third party in a case brought by the EU against measures adopted by the 
United States in relation to the EU's response to the DSB rulings.31 
54. Jamaica is involved as a third party in actions that have been brought separately by Australia, 
Brazil, and Thailand, pertaining to export subsid ies on sugar from countries of the EU;  in its 
communication to the WTO, Jamaica noted its substan tial trade interest as a supplier to the EU sugar 
market.32  The plaintiffs allege that the EU is opera ting above commitment levels for the reduction of 
                                                      
22 WTO document TN/DS/W/21, 10 October 2002. 
23 WTO document TN/DS/W/47, 11 February 2003. 
24 WTO document TN/DS/W/44, 11 February 2003, 
25 WTO documents TN/AG/R/6, 21 February 2003, TN/AG/R/8, 18 July 2003 and TN/AG/9, 
25 August 2003. 
26 WTO document TN/MA/W/30, 25 March 2003. 
27 WTO documents TN/C/W/14/Add.1, 11 July 2003, and TN/S/W/16, 25 July 2003, respectively. 
28 WTO document, WT/GC/W/369, 13 October 1999. 
29 WTO document WT/DS27/1, 12 February 1996. 
30 WTO document WT/DS27/51/Add.25, 21 January 2002. 
31 WTO documents WT/DS165/9, 18 October 1999, WT/DS165/R, 17 July 2000, and 
WT/DS165/AB/R, 11 December 2000. 
32 WTO documents WT/DS265/8, and WT/DS266/9, 15 October 2002. WT/TPR/S/139 Trade Policy Review 
Page 28 
 
 
subsidies.33  A panel was established in December 2003;  the matter was yet to be resolved (as at 
May 2004).34 
55. In November 1998, Jamaica request ed to join the EU in consultations with the United States 
in  a matter questioning the legality of Section 301 of the United States Trade Act.35  The Panel 
concluded that Section 301 was not inconsistent with WTO law.36  Jamaica was also a third party in 
an action brought by the United States against Me xico for not implementing the rulings of a WTO 
panel that its anti-dumping measures on high fructose corn syrup imported from the United States were inconsistent with WTO law.
37  The panel and, in a later action, the DSB ruled against Mexico.38 
(ii) CARICOM and related agreements 
(a) CARICOM 
56. Jamaica is one of the founding members of the Caribbean Community (CARICOM) Treaty 
signed in 1973 (Treaty of Chaguaramas), which established the Caribbean Community and Common 
Market.  The Community comprises 15 members and five associate members.39  By Treaty Revision, 
effective February 2002, the union became th e Caribbean Community including the CARICOM 
Single Market and Economy (CSME).40  Jamaica is one of the five more developed countries (MDCs) 
in CARICOM, together with Barbados, Guyana, Suriname, and Trinidad and Tobago;  all other 
member states are "less developed countries" (LDCs). 
57. The original Treaty of Chaguaramas was ame nded by nine protocols, which have been 
consolidated into the Revised Treaty, ratified by Jamaica but not yet enacted in domestic legislation.  The Revised Treaty is provisionally applied by Jamaica and other 11 CARICOM members.  The 
protocols cover various areas, including trade policy, services, consumer protection, competition 
policy, transport policy, and agricultural policy. 
58. The main CARICOM decision-making body is the Conference of Heads of Government, 
vested with the final authority on concluding any treaties involving CARICOM.  Next in the hierarchy 
is the Community Council of Ministers, which e ngages in strategic planni ng and coordination of 
matters of economic integration and external relations with third states.  Both the Conference and the 
Council are supported by organs dealing with speci fic areas or issues:  the Council for Trade and 
Economic Development (COTED) cove rs trade and economic developmen t, and has general oversight 
of operations relating to the CSME;  the Counc il for Human and Social Development (COHSOD) 
covers human and social development;  the C ouncil for Foreign and Community Relations (COFOR) 
manages CARICOM's interac tion with international organizations  and third states;  and the Council 
                                                     
 
33 WTO documents WT/DS265/1, and WT/DS266/1, 1 October 2002. 
34 WTO document WT/DS266/22, WT/DS283/3, 23 December 2003. 
35 WTO document WT/DS152/6, 14 December 1998. 
36 WTO document WT/DS152/14, 28 February 2000. 
37 WTO document WT/DS132/3, 19 January 1999. 
38 WTO documents WT/DS132/R, 20 January 2000, WT/DS132/RW, 22 June 2001, and 
WT/DS132/ABRW, 22 October 2001. 
39 CARICOM members are:  Antigua and Barbuda, Bahamas, Barbados, Belize Dominica, Grenada, 
Guyana, Haiti, Jamaica, Montserrat, St . Kitts and Nevis,  St. Lucia, St. Vincent and the Grenadines, Suriname, 
and Trinidad and Tobago.  The Bahamas is a member of  the Community only, but not of the Common Market.  
Anguilla, Bermuda, British Virgin Islands, Turks and Caic os Islands, and the Cayman Islands are associate 
members. 
40 Revised Treaty of Chaguaramas establishing the Caribbean Community including the CARICOM 
Single Market and Economy. Jamaica WT/TPR/S/139 
 Page 29 
 
 
for Finance and Planning (COFAP) is responsib le for coordinating economic policy and steering 
financial and monetary integration. 
59. Jamaica has applied CARICOM's Common Exte rnal Tariff (CET) since it was adopted on 
1 January 1991 Chapter III.  Sa feguard measures among CARICOM members may be applied for a 
period of 18 months, but affected members must be compensated.  No incentives are allowed for 
exports to other countries.  CARICOM has been pr omoting the regional harmonization of standards 
(Chapter III). 
60. The CSME is aimed at integrating the 15 CA RICOM Member States in to a single economic 
entity allowing for the free movement of people, cap ital goods, and services.  With this goal in mind, 
there have been joint efforts by the Community to  provide for a common economic and trade policy, 
and there is a movement for the convergence of ta x and incentive regimes, as well as exchange rate 
and monetary policies.  On 11 March 2004, the House of Representatives approved a Bill making 
provisions for the implementation of the Revised Treaty of Chaguaramas as the constituent legal 
instrument of the CSME and proposing to repeal  the Caribbean Community and Common Market 
Act.41  Once passed in the Senate and made into  an Act, the Revised Treaty would apply 
provisionally, until legi slation is passed fully incorpora ting the Treaty into domestic law.42  T h i s  
legislation would enable Jamaica to implement ob ligations contained in the Revised Treaty, for 
example, on consumer protection and the estab lishment of a regional competition commission. 
61. Since 1997, CARICOM has also worked through the Regional Negotiating Machinery 
(RNM) to coordinate information and efforts in ot her negotiations, including in the WTO.  The RNM 
works to develop a cohesive and effective framewo rk for the coordination and management of the 
Caribbean region's negotiating resources.43  The RNM also assists member states in preparing national 
positions, coordinating the formulation of a unified  strategy for the region, and undertaking and 
leading negotiations where appropriate, such as in th e context of the Free Trade Area of the Americas. 
62. Dispute settlement procedures are defined in th e Treaty of Chaguaramas (Articles 11 and 12) 
and the Revised Treaty (Chapter IX).  Members are encouraged to find bilateral solutions to their 
disputes.  If this is not possible, the dispute is brought to the COTED, which sets up a Conciliation 
Commission or an Arbitral Tribunal composed of th ree referees.  The Tribunal studies the dispute and 
informs the COTED of its conclusions.  The Counc il makes recommendations to the member affected 
by the Tribunal's conclusions.  If the member doe s not comply with the recommendations, the Council 
may authorize other members to suspend their obliga tions with regard to the non-complying member. 
63. In 2001, Jamaica and Guyana agreed to enter in to bilateral negotiations for a framework that 
would phase out Jamaica's duty-free imports of paddy rice (rice in the husk, HS item 1006.109);  under the CET, imports of this item from non-CA RICOM countries are subject to a tariff of 25% .  In 
2002 Suriname joined the negotiations.  The matte r reached a negotiated end in 2003 when it was 
agreed that Jamaica would be granted an annual ceiling for paddy rice imports up to December 2010. 
                                                     
 
41 The revised Treaty of Chaguaramas was notified to the WTO Committee on Regional Trade 
Agreements in 2003 (WT/REG155/1, 8 July 2003). 
42 Caribbean Net News online information.  Av ailable at:  http://www .caribbeannetnews.com 
/2004/02/27/ csme.htm. 
43 Caribbean Regional Negotiating Machinery we bsite online information.  Available at:  
http://www.crnm.org/about.htm. WT/TPR/S/139 Trade Policy Review 
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(b) Bilateral agreements betwee n CARICOM and other countries 
64. CARICOM has bilateral agreements with Ve nezuela, Colombia, the Dominican Republic, 
Costa Rica, and Cuba, the last three were signed subsequent to Jamaica's Review in 1998. 
CARICOM-Venezuela 
65. The CARICOM-Venezuela Agreement on Trade and Investment was signed in October 1992 
and entered into force on 1 January 1993.  It is a one-way preferential agreement aimed at promoting 
CARICOM exports to Venezuela.  Tariffs have be en eliminated on 22% of products, (mostly fresh 
produce, confectionery, cosmetics, jams and jelli es, medicines, wooden furniture, horticultural 
products, spices, processed foods, and toilet prepara tions), while 67% enjoy tariff reductions;  as a 
result, the average tariff applied by Venezuela to CARICOM imports is some one third lower than 
Venezuela's MFN tariff.44  The Agreement also seeks to foster  investment in the region and the 
facilitation of joint ventures between both parties.  The signatories are allowed to apply measures to 
counter unfair trade practices, such as export and domestic subsidies and dumping.  Disputes may be 
resolved through the use of the Joint Council, whose recommendations are not binding. 
CARICOM-Colombia 
66. CARICOM signed an agreement with Colombia on 24 July 1994, which entered into force for 
Jamaica on 3 February 2000; it provides for trad e liberalization and facilitation (including the 
exchange of preferences), as well as the promotion and protection of investment.  Initially a one-way 
agreement for phased tariff reductions on a list of  selected products, it was revised in mid 1999 to 
provide for reductions in tariffs on imports from Colombia.  This applies only to imports into Jamaica, 
Barbados, Guyana, and Trinidad and Tobago, and includes a list of  products on which tariffs were 
eliminated in mid 1999 (Annex II of the Agreement)  and a list for possible phased reduction of duties 
(Annex III).  The Agreement includes a safeguard clause  in case of injury or threat of injury to 
domestic production, or for balance-of-payments reasons;  disputes regarding subsidies and anti-
dumping are to be taken to the WTO.  A CARI COM-Colombia Joint Council on Trade, Economic 
and Business Cooperation is responsible fo r the administration of the agreement. 
CARICOM-Dominican Republic 
67. CARICOM signed a free trade agreement with th e Dominican Republic in 1998, which came 
into effect provisionally in 2001.  The agreement ha s not yet been fully implemented as some parties 
have not yet implemented the schedule for phased  duty reduction.  The agreement provides for 
asymmetrical application of reciprocity, with mutu al granting of tariff concessions by Jamaica and 
other CARICOM MDCs and the Dominican Republic , while CARICOM LDCs are not required to 
make any tariff concessions in favour of products originating in the Dominican Republic until 2005.45  
The agreement, in the case of Jamaica as an MD C, provides for the duty-free access for all goods 
other than those set out in appendices II and III to  the agreement;  the phased reduction of the MFN 
rate of duty on goods in Appendix II46;  and the application of the MFN rate of duty to goods in 
                                                      
44 WTO Secretariat (2002), p. 140. 
45 Caribbean Regional Negotiating Machinery online information.  Available at:  
http://www.crnm.org/bilateral. htm#CARICOM-Dominican%20Republic. 
46 Anthuriums, ginger lilies, orchids, and heliconias, fresh (Ex 06.03);  coffee (09.01);  sausages (Ex 
16.01);  bacon (Ex 16.02);  pasta (19.02);  biscuits  (E x 19.05);  jams, fruit jellies and marmalades (Ex 20.07);  
passion fruit juice (Ex 20.09);  soups and broths (Ex 21.04);  rum (Ex 22.08);  essential oils of lime (Ex 33.01);  perfumes and toilet waters (33.03);  boxes (Ex 3923.10);  sacks and bags of polymers of ethylene (3923.21);  Jamaica WT/TPR/S/139 
 Page 31 
 
 
Appendix III.47  Following the Protocol Implementing th e Agreement Establishing the Free Trade 
Area Between the Caribbean Community and th e Dominican Republic, the phased MFN-rate 
reduction for goods in Appendix II was to start in 2000 a nd be completed, at a rate of duty of zero, by 
1 January 2004 in the Dominican Republic and in the MDCs;  it is currently being reviewed.  Special 
provisions and rules of origin apply to trade in coco nuts (HS heading 08.01;  animal or vegetable fats 
and oils (HS Chapter 15);  and soap (HS 34.01). 
68. In addition to trade in goods, the agreement d eals with services, investment, and government 
procurement.  It also includes commitments to deve lop other areas of cooperation including reciprocal 
promotion and protection of invest ment and government procurement.48 
CARICOM-Cuba 
69. A trade and economic agreement between CARI COM and Cuba was signed on 5 July 2000, 
providing for duty-free treatment on specified goods.  There is a seasonal list of agricultural products for which the agreement outlines sp ecific treatment.  The agreement provides additionally for the 
elimination of tariffs on a specialized list of  products, through four annual reductions.
49  T h e  
agreement also deals with taxation, trade promoti on and facilitation, services, tourism, investment, 
intellectual property rights, and othe r topics.  Jamaica is still in the process of ratifying this agreement 
(May 2004).  A Protocol for the Provisional Application of the Agreement was signed by Jamaica and other CARICOM members in December 2002.  Legi slation for implementation is currently being 
drafted. 
CARICOM-Costa Rica 
70. In March 2004, CARICOM signed a free-trade agreement with Costa Rica (CARICOM-Costa 
Rica Free Trade Agreement).  The agreement is  reciprocal in so far as CARICOM MDCs are 
concerned.
50  CARICOM LDCs, while enjoying duty-free access to Costa Rica are not required to 
grant similar access to Costa Rican products.  The agreement provides for free trade or preferential 
access for a wide range of products, while excluding sensitive products;  95% of tariffs will be phased 
out when the agreement comes to effect.  A limited nu mber of products will continue to attract duty , 
and the duty on some others will be phased out by 1 January 2007.  CA RICOM products covered by 
the Oils and Fats Agreement are exempt from the sc ope of the FTA, which also provides for dispute 
settlement.  Apart from trade in goods, the agreement contains an ti-dumping provisions and provides 
for the enhancement of sanitary and phytosanitary measures.  The agreement provides for a review of 
developments in relation to trade in services, investment, competition policy, and government 
procurement within two years of the date of its entr y into force;  the parti es are then expected to 
consider adopting further disciplines in those areas.  Pending full entry into force, the agreement, can 
be applied provisionally as soon as any party has co mpleted the necessary procedures to give it effect. 
                                                                                                                                                                     
sacks and bags of other plastics (3923.29);  trays and cups (Ex 3923.90);  tableware of plastics (Ex 39.24);  
crates and boxes of paper or paperboard (Ex 48.19);  footwear with rubber soles (64.02);  mattresses (Ex 94.04). 
47 Goods in Appendix III of the agreement are mostly , but not only agricultural products.  The complete 
list, including HS heading description, is available [o nline] at:  http://www.caricom.org/ archives/agreement-
caricom-domrep-protocol.htm. 
48 CARICOM online information.  Available at:  h ttp://www.caricom.org/archives/ agreement-caricom-
domrep-protocol.htm. 
49 The Briefing Room- A Global Trade Communi cation Programme.  Ava ilable [online] at:  
http://www.thebriefing room.net/tb20.html. 
50 CARICOM Press release 32/2004, 10 March 200 4, "CARICOM and Costa Rica Sign Free Trade 
Agreement".  Available online at:  http://www.caricom.org/pressreleases/pres32_04.htm. WT/TPR/S/139 Trade Policy Review 
Page 32 
 
 
Agreements in negotiation/exploration 
71. CARICOM is still exploring the possibility of an FTA with Canada as at May 2004.  In 
September, 2002, officials met in Ottawa for a second round of exploratory discussions to exchange further views on the possible scope of the negotiati ons.  They agreed to continue to exchange 
information, and possibly to hold another expl oratory session in advance of seeking negotiating 
mandates from their respective governments.  In July 2004 the CARICOM Heads of Government 
endorsed the recommendation of the 4
th Special Meeting of the COTED on External Negotiations, that 
CARICOM should signal to Canada its  desire to begin formal negotiations before the end of the 2004. 
(iii) Other preferential agreements 
(a) Free Trade Area of the Americas (FTAA) 
72. The FTAA was launched at the Summit of the Americas in Miami in December 1994.  The 
FTAA is aimed at creating a barrier-free area for tr ade, while maintaining consistency with WTO 
rules as well as pre-existing bilateral agreements between member states.51  A total of 34 countries 
from the western hemisphere agreed to form a fr ee-trade area by 2005.  Currently there are nine 
negotiating groups dealing with issues relating to ma rket access and rules, as  well as three special 
committees.  Jamaica's Minister of Foreign Affair s and Foreign Trade is the CARICOM spokesman at 
the FTAA. 
73. In Jamaica, the Ministry of Foreign Affairs and Trade has initiated c onsultations with the 
public and private sectors, labour, academia, and civil society, so that their input can be reflected in the negotiations. 
74. The authorities note that one S&D element that has been approved by FTAA Ministers is the 
Hemispheric Co-operation Programme (HCP), which seeks to meet the specific needs of countries in 
order for them to participate in the FTAA negotiati ons, implement the agreement, and adjust to the 
integration process.  Jamaica has welcomed this initiative and has submitted trade-related capacity-
building projects for which assistance is needed. 
(b) Non-reciprocal arrangements 
75. Jamaica benefits from preferential access to the markets of other WTO Members through 
initiatives such as the ACP-EU Agre ement;  the Caribbean Basin Initiative (CBI);  and the Canadian 
Programs for Commonwealth Caribbean Trad e, Investment and Industrial Cooperation 
(CARIBCAN).  Jamaica is a beneficiary of the Generalized System of Preferences (GSP) 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 range of products 
covered varies according to each country’s scheme. 
ACP-EU Partnership Agreement 
76. Jamaica's exports are granted preferential access to the EU market under the African, 
Caribbean, and Pacific European Union Partners hip Agreement (Cotonou Agreement).  The Cotonou 
Agreement the most recent framework for the ACP- EU co-operation, was signed in June 2000 and 
has a duration of 20 years.  New terms for the tr ade aspects of the agreement are to be negotiated 
during a preparatory period, which began in Se ptember 2002 and will end by 31 December 2007 at 
the latest.  Negotiations for economic partnership agreements (EPAs) will aim notably at establishing 
                                                     
 
51 FTAA online information.  Available at:  http://www.ftaa- alca.org/alca_e.asp. Jamaica WT/TPR/S/139 
 Page 33 
 
 
the timetable for the progressive removal of barriers to trade between the par ties, in accordance with 
the relevant WTO rules.52  The new trading arrangements will en ter into force by 1 January 2008, 
unless earlier dates are agreed between the parties. 
77. In this respect, the CARIFORUM-European Un ion negotiations for an EPA were officially 
launched in Kingston in April 2004.53  The negotiations are expected to  conclude in December 2007.  
CARICOM members, at a COTED meeting, agreed to  negotiations at three levels:  ministerial, 
principal negotiator and subject-specific.  Th e Director-General of the RNM was appointed 
CARIFORUM Principal Negotiator.  The negotiations  are expected to take place in four phases:  
establishment of priorities (April-September 2004);  convergence on strategic approach to 
CARIFORUM regional integration (September 2004-S eptember 2005);  structuring and consolidating 
of negotiations (September 2005-December 2006) ;  and finalization (January-December 2007). 
78. The Jamaican banana and sugar industries be nefit directly from the preferential access 
schemes under the respective Cotonou protocols.  The Cotonou Agreement does not contain a protocol on rum, as was the case under the Lo mé IV Convention.  The WTO waiver for the 
preferences is set to expire on 31 December 2005.  The new regime for bananas, which was agreed 
in 2002, will be implemented up to that date and a tariff-only system will be introduced as of 
1 January 2006.  The Commodity Protocols under the Cotonou Agreement are to be reviewed in the 
EPA negotiations. 
Caribbean Basin Initiative 
79. Jamaica enjoys preferential acc ess to the U.S. market under the Caribbean Basin Initiative 
(CBI), initiated in 1984 by the United States unde r the Caribbean Basin Economic Recovery Act 
(CBERA) to provide duty-free entry to products fro m the Caribbean and Central America.  The CBI 
was revised in 1990 (CBI II) and was given an indefi nite duration, becoming a permanent part of U.S. 
law.
54  The United States upgraded the CBI in 2000 to extend "NAFTA Parity" to beneficiary 
countries.  The CBERA, enhanced by the Caribbean  Basin Trade Partnership Act (CBTPA), which 
was implemented in October 2000 as part of th e Trade and Development Act of 2000, provided 
additional preferential access for most goods fro m 24 CBI beneficiary countries.  The CBTPA 
provides duty-free access for some items and reduced- duty treatment for others, with all duties being 
subject to a phase-out.  Although the CBERA is permanent, CBTPA benefits are available only until September 2008. 
80. The CBTPA expanded preferential treatment for a pparel made in the Caribbean Basin region:  
duty- and quota-free treatment are provided for apparel made in CBI countries from U.S. fabrics 
formed from U.S. yarns, and duty/quota-free treatm ent are made available for certain knit apparel 
made in CBTPA beneficiary countries from fabrics formed in the Caribbean Basin region, provided 
that U.S. yarns are used in forming the fabric.  Also, new duty/quota-free treatment is available for 
apparel made in the CBI from fabrics determined to  be in short supply in the United States, and for 
designated hand-loomed, handmade, or folklore  articles.  The CBTPA also provides NAFTA-
                                                     
 
52 Cotonou Agreement, Chapter II.  Available online at:  http://europa.eu.int/comm/development/body/ 
cotonou/agreement/agr18_en.htm. 
53 The Caribbean Forum of ACP States (CARIF ORUM) comprises the CARICOM countries of 
Antigua and Barbuda, Bahamas, Barbados, Belize, Commonwealth of Dominica, Grenada, Guyana, Haiti, 
Jamaica, Saint Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago, 
as well as the Dominican Republic. 
54 WTO document G/L/25, 15 September 1995. WT/TPR/S/139 Trade Policy Review 
Page 34 
 
 
equivalent tariff treatment for certain items prev iously excluded from duty-free treatment under the 
CBI programme (e.g., footwear, canned tuna, pe troleum products, watches and watch parts).55 
81. CBI beneficiaries also enjoy national treatment in respect of certain government procurement 
contracts.56  Beneficiaries may also benefit from U.S. Government, state government and private 
sector development programmes. 
82. According to a report by the United States Trade Representative, Jamaica has benefited 
modestly from the CBI programme.  However, th e report notes that Jamaica actively sought the 
enhanced benefits of the CBTPA, a nd hopes to achieve some recovery in the apparel sector as a result 
of those preferences.  In this respect, figures for 2001 show that although the CBTPA resulted in an 
effective increase in preferential ma rket access for Jamaican exports to  the U.S. market, total exports 
fell.  U.S. imports from Jamaica totalled US$286 million in the first eights months of 2001, compared with US$445 million in the same period the previous  year;  however, the share of imports under the 
CBERA/CBTPA schemes increased to 40.8% of tota l imports, from 14.2%, and the share of imports 
faced with MFN duties above zero declined from 43% to 20%.
57 
CARIBCAN 
83. Jamaica enjoys preferential access to the Canadian market through CARIBCAN, a 
programme for trade, investment, and industrial cooperation between Canada and the Commonwealth 
Caribbean countries, which extends duty-free treatme nt to nearly all qualifying imports from these 
countries58  Created in 1986, the programme covers produc ts other than textiles, clothing, footwear, 
luggage and handbags, leather oils, lubricating oils, and methanol.  To qualify for duty-free access to 
Canada, products from the Commonwealth Caribb ean countries and territories must meet the 
requirement that 60% of their ex-factory price orig inates in any beneficiary country or in Canada.  
CARIBCAN includes provisions that allow Canadi an producers recourse to the Canadian Tariff 
Board in case duty-free imports from the beneficiary c ountries are deemed to cause or threaten injury.  
It is estimated that some 90% of total imports  from the Caribbean enter Canada under the scheme's 
duty-free tariff rates.59 
(4) TRADE RELATED TECHNICAL ASSISTANCE  
84. Jamaica benefits from technical assistance from various sources, which has been instrumental 
in supporting its liberalization process and the impl ementation of its WTO commitments.  Technical 
cooperation has also been instrumental in the im plementation of sustainable development programmes 
and programmes, for the protection of the envir onment.  The Inter-American Development Bank 
provides Jamaica regularly with technical assistance;   disbursements for this totalled US$8.2 million 
in 2002.  Other entities providing technical assist ance funds include the Canadian International 
Development Agency, Caribbean Re gional Technical Assistance Centre, Commonwealth Secretariat, 
European Commission, Food and Agriculture Organi zation, International Atomic Energy Agency, 
Organization of American States, Pan American Health Organization, United Nations Children's 
Fund, United Nations Development Programme, United  Nations Educational, Scientific and Cultural 
                                                      
55 USTR online information.  Available at:  http://www.ustr.gov/regions/ whemisphere/camerica/ 
actsheet.html. 
56 WTO (2004). 
57 USTR (2002). 
58 Canada was granted a waiver to its obligations under Article I of the GATT in 1986 (L/6102).  The 
waiver was renewed for ten years by the WTO Gene ral Council on 14 October 1996 (WT/GC/M/15). 
59 Canada Gazette online.  Available at:  http:// canadagazette.gc.ca/partII/19 98/19980218/html/sor104 -
e.html. Jamaica WT/TPR/S/139 
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Organization, United Nations Environment Programme, United Nations Population Fund, 
United Nations Volunteers Programme, United Stat es Agency for International Development, 
World Bank, World Intellectual Property Organization, and the WTO.  Jamaica has also been the beneficiary of technical assistance funds or programmes from a number of governments, including 
those from Argentina, Brazil, Chile, Colombia, Ko rea, Mexico, the Netherlands, Sweden, and the 
United Kingdom. 
85. WTO technical assistance has focused on increasing government officials' understanding of 
WTO-related issues.  Since 1998, Jamaica has par ticipated in 76 technical assistance activities, 
including 46 regional and 11 nati onal training activities.  These have  covered a broad range of WTO 
subjects, including customs valuation, technical barri ers to trade, sanitary and phytosanitary measures, 
services, textiles, dispute settlement, market acces s, anti-dumping, subsidy disciplines, government 
procurement, and related issues such as competition policy, trade facilitation and investment.  Jamaica 
was the host country of a Regional Trade Policy Course for the Caribbean in 2004. 
86. As previously mentioned, JAMPRO manages technical assistance programmes that cover 
various sub-programmes funded by international ag encies.  Among these is the Trade Development 
Programme (TDP) funded by the EU aimed at prom oting trade by enhancing the competitiveness of 
Jamaican private sector companies:  €4.8 million w as provided for technical assistance and business 
development to private firms, and €1.2 million for te chnical assistance to servi ce suppliers.  Since its 
inception in 2000, the TPD has assisted 73 small a nd medium-size enterprises (SMEs) and 15 service 
suppliers or associations thereof.  The authoriti es note that the programme has proved successful in 
increasing exports:  overall, SMEs receiving assist ance achieved export sales growth of 28% in the 
first half of 2003 over the same period in 2002.  The TDP will conclude in 2004 and will be 
succeeded by a €20 million private sector development programme for SMEs.