RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/242 
7 December 2010 
 (10-6431) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
JAMAICA 
 
  
 
This report, prepared for the third Trad e Policy Review of Jamaica, has been 
drawn up by the WTO Secretariat on its own responsibility.  The Secretariat has, 
as required by the Agreement establishing the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), sought clarification from Jamaica on its trade policies and 
practices. 
 
Any technical questions arising from this report may be addressed to 
Mr. Mario Kakabadse (tel:  022/739 5172).   
 
Document WT/TPR/G/242 contains the policy statement submitted by Jamaica. 
 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Jamaica. Jamaica WT/TPR/S/242 
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CONTENTS 
 
    Page 
SUMMARY   vii 
(1) T RADE POLICY CONTEXT  vii 
(2) M AIN TRADE MEASURES  viii 
(3) S ECTORAL DEVELOPMENTS  ix 
(4) O UTLOOK  x 
I. ECONOMIC ENVIRONMENT  1 
(1) I NTRODUCTION  1 
(2) M AIN MACROECONOMIC DEVELOPMENTS AFFECTING TRADE  1 
(i) Fiscal policy 3 
(ii) Trade competitiveness 4 (iii) Current account deficit 5 
(3) T
RENDS IN TRADE AND FOREIGN DIRECT INVESTMENT  6 
(i) Merchandise trade 6 (ii) Trade in services 8 
(iii) Foreign direct investment (FDI) 10 
(4) O
UTLOOK  10 
II. TRADE AND INVESTMENT POLICY REGIME  12 
(1) O VERVIEW  12 
(2) T RADE POLICY FORMULATION AND IMPLEMENTATION  12 
(i) General institutional and regulatory framework 12 
(ii) Trade policy framework 14 (iii) Trade policy formulation and implementation 15 
(3) I
NTERNATIONAL TRADING RELATIONS  16 
(i) World Trade Organization 17 (ii) CARICOM and re lated agreements 18 
(iii) Other preferential agreements 20 
(4) F
OREIGN INVESTMENT REGIME  22 
(i) Legislative framework 22 
(ii) Regional framework 23 
(iii) Bilateral investment and tax treaties 23 
(5) A ID FOR TRADE  23 
(i) Overview 23 
(ii) Mainstreaming trade into national development strategies 24 (iii) Supply side and infrastructure constraints 25 
(iv) Aid-for-trade support to Jamaica 27 
III. TRADE POLICIES AND PRACTICES BY MEASURE  30 
(1) I
NTRODUCTION  30 WT/TPR/S/242 Trade Policy Review 
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    Page 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  30 
(i) Customs 30 
(ii) Tariffs and other duties and charges 33 (iii) Import prohibitions, restrictions, and licensing 41 
(iv) Contingency measures 42 
(v) Government procurement 43 (vi) Import-related operations of state-trading enterprises (as defined in GATT 
Article XVII) 44 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  45 
(i) Procedures 45 
(ii) Export taxes, charges, and levies 45 
(iii) Export prohibitions, re strictions, and licensing 45 
(iv) Export subsidies 46 
(v) Export free zones 47 
 (4) M EASURES AFFECTING PRODUCTION AND TRADE  48 
(i) Incentives 48 
(ii) Business regulation 49 
(iii) Standards and other technical requirements 51 
(iv) Intellectual property rights 55 
IV. TRADE POLICIES BY SECTOR  59 
(1) I NTRODUCTION  59 
(2) A GRICULTURE  60 
(i) Sector and trade overview 60 (ii) Institutional and policy framework 63 
(iii) Trade policy 63 
(3) M
INING AND QUARRYING  65 
(i) Industry overview 65 
(ii) Policy and institutional framework 68 
(4) M ANUFACTURING  69 
(i) Sector overview 69 
(ii) Policy framework 70 
(5) S ERVICES SECTOR  71 
(i) Overview 71 
(ii) Financial services 71 
(iii) Telecommunications 78 (iv) Tourism 81 
(v) Transport 84 
REFERENCES   87 
APPENDIX TABLES  91 
 
  Jamaica WT/TPR/S/242 
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CHARTS 
    P a g e  
I. ECONOMIC ENVIRONMENT  
I.1 Merchandise trade by product, 2003 and 2009 7 
I.2 Merchandise trade by main origin and destination, 2003 and 2009 9 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Frequency distribution of MFN tariff rates, 2010 38 
TABLES 
I. ECONOMIC ENVIRONMENT  
I.1 Selected economic indicators, 2004/10 2 
I.2 Trade in services, 2003-09 8 
I.3 FDI inflows by sector, 2005-09 10 
II. TRADE AND INVESTMENT REGIMES  II.1 Aid for trade assistance, 2002-08 28 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Cost of doing business, 2010 31 
III.2 International trade taxes as share of total tax revenue, 2005-10 33 
III.3 Jamaica Customs Department:  tax revenue collected, waivers, and incentives, 2005-10 34 
III.4 Structure of the tariff schedule, 2004 and 2010 35 
III.5 Summary analysis of the MFN tariff, 2010 36 
III.6 CARIFORUM tariff liberalization commitments under the EPA, 2008-33 39 III.7 Main tax incentives, 2010 48 
III.8 Jamaica Import/Export Inspection Centre, 2010 54 
III.9 Overview of IPR protection, 2010 56 
IV. TRADE POLICIES BY SECTOR  
IV.1 Employment and productivity, by sector, 2002 and 2009 59 
IV.2 Agriculture sector, 2004-09 61 IV.3 Export volume of traditional crops, 2004-08 61 
IV.4 Domestic support:  measur es exempt from the reduction co mmitment "Green Box", 2004-07 64 
IV.5 Bauxite and alumina industry structure, 2010 66 IV.6 Alumina shipments, by destination, selected years 67 
IV.7 Manufacturing sector exports, 2004 and 2008 69 
IV.8 Financial system structure, 2004 and 2009 72 IV.9 Financial sector indicators, 2006-10 73 
IV.10 Number and market share (assets) of  licensed deposit-taking entities, 2007-09 76 
IV.11 Telephone subscribers, by category, 2005-09 79 IV.12 Number of telecoms licences granted, 2002-08 79 
IV.13 Performance of the tourism sector, 1962, 1982, and 2008 82 
IV.14 Incentives/programmes to the tourism industry, 2008-09 82 
IV.15 Tourism Master Plan targets, 2000-10 and actual 84 WT/TPR/S/242 Trade Policy Review 
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     P a g e  
APPENDIX TABLES 
I. ECONOMIC ENVIRONMENT  
AI.1 Merchandise exports and re-exports, by group of products, 2003-09 93 
AI.2 Merchandise imports, by groups of products, 2003-09 94 
AI.3 Merchandise exports and re-exports, by trading partner, 2003-09 96 
AI.4 Merchandise imports, by trading partner, 2003-09 97 
II. TRADE AND INVESTMENT REGIMES  
AII.1 Notifications to the WTO, 2005-10 98 
AII.2 Overview of Jamaica's trade under free-trade agreements, 2010 100 
AII.3  Cooperation programmes, 2010 102 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
AIII.1 Lines where the MFN applied duty is higher than the bound duty, 2010 tariff of Jamaica 104 
AIII.2 Import prohibitions, 2010 105 
AIII.3 Goods subject to import licensing, 2010 106 
AIII.4 Goods subject to export licensing, 2010 108 
 
 
 Jamaica WT/TPR/S/242 
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SUMMARY 
1. Jamaica's economy, which is 
dependent on alumina, tourism, remittances, and its large informal sector, is highly trade-
oriented.  Exports and imports of goods and 
services have represented on average over 90% of GDP since 2005.  During the review period, Jamaica has continued to struggle with a narrow production structure and 
vulnerability to external climatic and 
economic shocks.  These shortcomings were exposed starkly during the recent global economic slowdown, which severely impacted the Jamaican economy, r esulting in declines of 
real GDP of 1.7% in fiscal year 2008/09 and 
2.5% during 2009/10 as well as marked 
decreases in earnings from the export of goods and services  and from remittances.  
(1) T
RADE POLICY CONTEXT  
2. The merchandise trade deficit 
averaged over 26% of GDP during the period 
under review.  Jamaica has a relatively limited export base comprising mainly alumina/bauxite and some non-traditional exports, and is highly dependent on imported 
raw materials, oil, and capital goods.  The 
trade imbalance is only partially offset by a 
surplus in services exports – mainly tourism – and substantial inflows of remittances from Jamaicans abroad. 
3. Jamaica imposes no taxes or 
quantitative restrictions on exports and has a 
number of tax incentives that attempt to encourage exportation.  The four export subsidy programmes, which currently benefit from an extension of the transition period for 
developing countries under WTO rules, are 
scheduled to be phased out by 2015.  Jamaican exports have continued to stagnate indicating 
that there are long-standing structural problems in the economy, which the incentive programmes can only partially alleviate. 
4. For most of the past decade, real GDP 
growth has been low, at an annual average of under 1%.  Underlying Jamaica's weak economic and export performance are significant structural disadvantages.  These include the excessive cost of electricity, which 
adversely affects the economy's competitiveness;  the high debt ratio, which hinders the Government's ability to provide 
quality services and foster development; the 
high cost of capital; relatively high security costs for business, related to negative social factors; low labour productivity and limited productive capacity; and inadequate economic 
and trade-related infrastructure.  However, 
Jamaica has been making  progress, for example in simplifying regulations and procedures to create a more investment-friendly business environment.  Jamaica's investment regime continues to be 
open to foreign investors, who can benefit 
from a number of incentives, including duty and tax concessions. 
5. Broad trade policy and development 
goals are set within a number of policy 
frameworks, notably regional trade policies in 
the context of CARICOM, the 2001 New Trade Policy, the current national development plan (Vision 2030-Jamaica), and the 2009 National Export Strategy, as well as in the WTO framework.  Jama ica is an original 
and active Member of the WTO and is a strong 
supporter of special and differential treatment 
for developing countries within the WTO and the DDA negotiations.  Jamaica grants at least MFN treatment to all trading partners.  
6. Over 90% of Jamaica's merchandise 
exports go to the United States, Canada, and the EU.  Jamaica is in the process of redefining relations with its main trading partners as evidenced by the recently signed Economic 
Partnership Agreement with the EU, in which 
the non-reciprocal element of previous preferential agreements has been abandoned.  Jamaica and its CARICOM partners have started trade negotiations with Canada, and are also moving from unilateral to reciprocal 
arrangements.  A critical area is the adjustment 
and revenue implications arising from the implementation of such trade agreements.  Jamaica continues to enjoy preferential access to the United States market under the 
Caribbean Basin Initiative, which covers over 
90% of Jamaican exports to the United States.  WT/TPR/S/242 Trade Policy Review 
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 At the same time, Jamaica is closely involved 
in the process of regional trade integration with the on-going implementation of the Caribbean Single Market and Economy and, 
through its participation in CARICOM, 
implements a number of preferential trade agreements with regional neighbours.   
(2) M
AIN TRADE MEASURES  
7. Tariffs and other duties and charges 
remain Jamaica's main trade policy instrument.  
The Government generates a substantial share of its central revenue – averaging between 27% and 28% of total tax revenues – from tariffs and other charges on imports, which are seen as critical in the light of the country's 
structural fiscal deficit.  The Government is 
committed to scaling back the system of waivers and exemptions on customs duties, with a freeze in granting discretionary waivers on duties and taxes constituting a first step in 
this process.  Data from the Jamaican 
authorities suggest that the cost of various exemptions and waivers amounted to more than half of trade tax revenue in 2007, and over one quarter in 2009.      
8. In the context of CARICOM's 
Common External Tariff, Jamaica's average 
MFN tariff was 9.4% in 2010, up from 8.6% in 2004, which reflects the increase of tariff rates for luxury goods.  Protection is higher for agricultural products than for industrial 
products and the tariff structure shows 
escalation.  The tariff has eleven tiers, compared with nine tiers at the time of the previous Review.  No seasonal tariffs or tariff quotas are used.  Jamaica has bound all its 
tariff lines, thereby increasing the 
predictability of its trade regime, although the gap between applied a nd bound tariffs remains 
wide and applied rates are above their bound levels for a small number of products. 
9. Numerous other taxes and fees on 
imports raise border protection markedly and 
raise the question of whether excessive import taxation may be hindering competitiveness. All imports entering Jamaica are subject to a basic stamp duty, and an additional stamp duty is payable on certain items.  While Jamaica 
does not apply fees on containers imported or exported or port security fees, it imposes fees for providing specific services, including a 
Customs User Fee, a Standard Compliance Fee 
(collected on behalf of the Bureau of Standards), an Import Entry Processing Fee, and an Environmental Levy.  Domestic taxes, notably the general consumption tax levied at 
a standard rate of 17.5%, are levied on imports 
and domestically produced goods.  
10. Jamaica has modern customs and 
trade-facilitation facilitie s and is working to 
improve customs procedures including in the area of customs valuation where.  However, 
problems of false and under-invoicing persist.  
There has been no policy change concerning Jamaica's import licensing regime during the review period.  Import prohibitions are applied for health, security, moral or environmental 
considerations, or under international 
conventions.  The Trade Board issues import licences for items that require close monitoring, with motor vehicle imports accounting for the bulk of import licence applications. 
11. The Anti-Dumping and Subsidies 
Commission is Jamaica's trade remedy authority.  Between 2004 and November 2009 no new investigations were opened.  The Commission attributes the dearth of open cases 
to the need for greater understanding of how to 
access remedies.  Government procurement policy has improved although there appears to be a need for more transparency of procurement performance and for better 
statistics.  Jamaica is not a party to the 
Plurilateral Agreement on Government Procurement. 
12. Limited ability to meet international 
quality standards is a significant challenge for exporters, in particular in the agri-processing 
subsector.  Jamaica has the relevant legislative 
and institutional framework for quality, standards, and other requirements but the timeliness and consistency of the service delivery is hampered by, inter alia :  high costs 
and variable quality of some basic services, Jamaica WT/TPR/S/242 
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such as product testing and certification, by the 
private sector;  high costs of implementation of international standards;  and the need for food exporters to contend with a range of 
testing and laboratory services that reside in 
multiple agencies.  Jamaica currently has 348 domestic standards, which are based on international (primarily ISO and Codex Alimentarius) standards.  
13. The Import/Export Inspection Centre, 
established in 2009, houses the regulatory agencies having responsibility for human health and safety, animal health, and plant health.  The Centre is designed to significantly reduce the time taken to complete inspection 
processes, which had been negatively affected 
by the hitherto scattered arrangement of regulatory agencies. 
14. The authorities consider that, given the 
resources available, Jamaica has achieved 
results in enforcement of intellectual property 
protection since 2005.  They note that the number of criminal prosecutions has increased, as has vigilance in carrying out raids and seizures of pirated products, including CDs and DVDs, although no statistics were 
provided in this regard.  
(3) S
ECTORAL DEVELOPMENTS  
15. Since 2005, the economy has 
continued to shift away from primary activities (mainly agriculture and mining) and 
manufacturing.  Goods production now 
accounts for a little under one quarter of GDP while services have become the main economic activity and the main earner of foreign exchange.  The Government remains 
involved in several commercial activities in, 
inter alia , agriculture, mining, utilities, 
banking, and transport through a number of publicly-owned companies that operate on a commercial basis.  During the review period, the Government has taken steps to restructure 
some of these enterprises including through 
divestment and liquidation.  It has focused on the bigger loss makers, namely Air Jamaica and the Sugar Company of Jamaica although significant losses have also  been recorded by the Airports Authority of Jamaica, Clarendon 
Alumina Partners, and  others. 
16. Agriculture's contribution to the 
overall economy has declined steadily but 
because of its role in poverty reduction and 
importance for employment, it is considered a sensitive sector.  As such, it benefits from a range of support measures, including high import duties. In the Doha negotiations, 
Jamaica is keen to protect  its right to 
implement effective domestic support measures for its farmers, including the freedom to increase tariffs within bindings and to use the revenue to provide agricultural support within the scope allowed by the WTO.   
Jamaica's vulnerability to natural disasters 
means that it regularly experiences direct hits by hurricanes and storms, resulting in heavy damage to its agriculture sector.  
17. Jamaica is one of the world's leading 
producers of bauxite and alumina, and mining 
is the largest non-service export activity.  The sector is internationally competitive and benefited from rising world mineral prices until 2009 when the industry collapsed in the face of the global economic downturn and the 
reduced international demand for alumina.  A 
national minerals policy is under preparation to guide the sustainable development of the minerals industry.  
18. The services sector accounted for over 
three quarters of GDP in 2009 and employed 
around two thirds of the labour force.  The size of its main service industry, tourism, makes Jamaica an important exporter of services.  There is currently little government 
involvement in telecommunications and 
financial services, and market access is relatively open in those sectors.  Under the GATS, Jamaica participated in the extended negotiations on basic telecommunications and financial services, and presented offers in both 
negotiations.  Insurance, where foreign 
ownership was limited, was liberalized in the WTO Negotiations on Financial Services but as of mid 2010 Jamaica had not yet ratified the Fifth Protocol to the GATS. WT/TPR/S/242 Trade Policy Review 
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 19. The level of competition in the 
communications subsector has increased significantly since the liberalization of telecommunications and has led to a large 
increase in the number of providers, a decrease 
in the cost of international telephone calls and a strong increase in Jamaica's teledensity.  Mobile telephone penetration increased from 14 persons per 100 in 2000 to 108 in 2009, 
reflecting the prevalence of more than one cell 
phone per person due to high cross-network connection charges.  The telecommunications infrastructure has also enabled and facilitated the growth of an active information technology enabled services sub-sector, comprising, inter 
alia, contact centres, business process 
outsourcing, and information technology  providers, which has been identified by the Government as a strategic industry for support and development. 
20. Tourism is a significant contributor to 
the economy and governme nt tax revenue and 
is the main source of foreign exchange earnings.  The 2009 financial crisis negatively affected tourism receipts, although tourism has proven to be more resilient than in the rest of 
the Caribbean.  The Government promotes the 
development of tourism by encouraging investments in the sector, supporting product development with physical infrastructure (including airports, cruise ports, and 
highways), services (such as security and 
labour force training), and destination marketing.  Investments in the tourism sector have been promoted mainly through generous incentive schemes, which provide income tax 
relief and import duty concessions.  In an 
effort to diversify the tourism industry, the Government has enacted legislation to support the establishment of casino gaming facilities within the context of integrated resort development schemes.  As Jamaica is an island state and a tourist destination, air transport has 
a significant role in the nation's economy.  In March 2010, the Government adopted an open skies policy, which calls for Jamaica to pursue 
more liberalized air services agreements with 
as many states as possible.   
(4) O
UTLOOK  
21. Jamaica's vulnerability to natural 
disasters has been compounded by the global 
economic crisis and l ong-standing structural 
issues.  The crisis has seriously affected Jamaica, although the rate of decline in the economy is expected to slow appreciably in 2010 compared with 2009, due mainly to continued growth in agriculture and mining, 
and the recovery in the economies of Jamaica's 
major tourist markets in North America.  Real GDP is projected to increase by 0.5% between April 2010 and March 2011. The main downside risks  concern external factors, such 
as shocks to international commodity prices, 
higher than anticipated oil prices, a slower than expected recovery in the world economy, and adverse weather, which could temper 
gains in the agriculture sector.   
22. The longer term outlook is of gradual 
recovery depending on global market 
conditions and the Government's continued commitment to macroe conomic stabilization, 
fiscal reforms, and addressing the economy's main structural challenges. Jamaica's strategy 
for  meeting these challenges is based on its 
national development plan, Vision 2030, which aims to take the country to OECD standards of living. In this process, it is important to address Jamaica's aid-for-trade 
needs arising from the changing trading 
environment, not least in the context of preference erosion and the need for measures to facilitate export diversification.