WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/139/Add.1 
2 March 2005 
 (05-0898) 
Trade Policy Review Body 
17 and 19 January 2005 Original:  English/ 
                anglais/                 inglés 
  
TRADE POLICY REVIEW 
JAMAICA 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Mrs. Puangrat Asavapisit (Thailand) 
 This document contains the advance writte n questions, and replies provided by Jamaica.1 
__________________________________________________________________________________  
Organe d'examen des politiques commerciales 
17 et 19 janvier 2005  
EXAMEN DES POLITIQUES COMMERCIALES 
JAMAÏQUE 
Compte rendu de la réunion
 
Addendum  
Présidente:  S.E. Mme Puangrat Asavapisit (Thaïlande) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses fournies par la Jamaïque.
1 
__________________________________________________________________________________ 
 
Órgano de Examen de las Políticas Comerciales 
17 y 19 de enero 2005  
EXAMEN DE LAS POLÍTICAS COMERCIALES 
JAMAICA 
Acta de la reunión
 
Addendum  
Presidenta:  Excma. Sra. P uangrat Asavapisit (Tailandia) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Jamaica.1 
                                                      
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/139/Add.1
 Page 3 
  
ADVANCE WRITTEN QUESTIONS BY MEMBERS AND 
REPLIES PROVIDED BY JAMAICA 
 
1.0 CANADA  
1.1 Paragraph 6 states that “Jamaica’s investmen t regime is open to foreign investors and grants 
national treatment with few exceptions, for example air transport.”  Could Jamaica provide further detail on the exceptions, such as air transport, for which the Government of 
Jamaica does not grant national treatment to foreign investors? 
 
Response
 
 Air Transport
 
 Section 7 (4) of the Civil Aviation Authority Act 19 66 states that "Except with the consent of the 
Minister, which may be granted either generally or in respect of a particular case or class of cases, 
the Authority shall not grant an air service licence to any person who is not either:  
• a citizen of Jamaica;  or 
 
• a body incorporated in Jamaica, being a body which in the opinion of the Authority is 
substantially controlled by persons who are citizens of Jamaica. 
 Maritime Transport
 
 There are two examples of exceptions to nat ional treatment in Maritime Transport: 
 
• The Shipping Act 1998 Part 3 states that only Jamaican ships may be engaged in local trade 
in Jamaican waters.  However regulations are in force allowing foreign ships to apply for a 
local trade certificate at a cost in order to engage in local trade in Jamaican waters. 
 
• The Pilotage Act section 5 states that a pilot’s licence can only be granted to a person who is 
a Jamaican citizen although the Minister has the authority to grant a licence to a person who is not a Jamaica citizen if it is felt that it would be in the country's best interest. 
 
1.2 Paragraph 6 further states that “since its last Review, Jamaica has continued to make progress in 
simplifying regulations and procedures and creating a more investment-friendly environment.”  Could Jamaica please describe in greater detail the prog ress made to date to simplify the regulations and 
procedures relating to investment?  
Response
 
 Jamaica continues to improve its investment envi ronment in terms of its openness and investor 
friendliness.  WT/TPR/M/139/Add.1 
Page 4   
Greater transparency is being achieved through the execution of an E-enabled program building on 
the administrative improvements made in the World bank led Public Sector Modernization 
Program.  Initiatives include:  
• The National Environmental Planning Agency (NEPA) manages a website which allows 
companies to apply for environmental permits online; 
 
• The Jamaica Revenue Service manages a portal which allows companies to apply for their 
Tax Compliance Certificates online.  This is one output of the Taxation Administration 
review Project  (TAXARP); 
 
• JAMPRO operates a website (www.jamaicatra depoint.com) which networks with agencies 
such as the Customs Department, Trade Board, Shipping Association of Jamaica to allow for 
the following services online including: 
 
 o Payment of trade duties; 
 o Application for trade license;  o Tracking of ship manifests online; 
 o Exporter registration;  
The private sector and the government are also in a partnership (the Jamaica Regulations, 
Legislations and Process Improvement Project) to produce a Developers Manual which will for the 
first time document in a comprehensive manner all the steps required to receive various 
Investment/development approvals.  This process has also allowed for the payment of all statutory 
deductions at one time rather than having to  pay statutory deductions at four separate agencies. 
 
Additionally, Jamaica is involved in the OECD/ IADB Caribbean Rim Investment Initiative which 
has produced an Investment Policy Review currently being used by the OECD.  This provides greater information on the Jamaican business regime. 
 
The World Bank “Doing Business” report lists Jamaic a as a top twenty destination.  The 2005 report 
indicates that competitors are stepping up their reform agenda.  However Jamaica is still competitive on labour reform, and company registration procedures.  Additionally, the 2003-2004 Global Competitiveness Report, published by the World Economic Forum, ranks Jamaica as 21
st for 
the curtailment of bureaucratic red tape. 
 1.3 According to paragraph 57 (Part II), Jamaica applies provisionally the Revised Treaty of Chaguaramas, through which the union became t he Caribbean Community including the CARICOM 
Single Market and Economy (CSME).  Can Jamaica please explain whether “national treatment” will be provided to goods imported into one CARICOM Member  State?   Also, how will service providers 
authorized in one CARICOM Member State be treated in the other CARICOM Member States? 
 
Response
 
 The Revised Treaty of Chaguaramas (Article 239) env isages the free circulation of goods within the 
CSME whereby a good imported into one member territory would move freely into other member territories.  A Protocol is to be elaborated for this  purpose.  The negotiation of this Protocol has not 
yet begun. 
  WT/TPR/M/139/Add.1
 Page 5 
  
Chapter 3 of the Revised Treaty of Chaguaramas provi des for the Right of Es tablishment, the Right 
to Provide Services and the Right to Move Ca pital in the Caribbean Community by eligible 
CARICOM nationals.  The scope of eligibility for free movement of nationals includes:  university 
graduates, media workers, sports persons, artistes and musicians, self-employed service providers, managerial, technical and supervisory staff rela ting to the particular enterprise, spouses and 
immediate dependent family members.  A company or other legal entity which is 50 per cent or more 
owned and effectively controlled by a CARICOM nation al with the power to name a majority of its 
directors or otherwise legally direct its actions is also included.  Service providers from one Member 
State are entitled to like treatment to their counte rparts who provide like services and are nationals 
of the receiving State under the terms of the R evised Treaty.  Service providers from one Member 
State are therefore entitled to full market acce ss and national treatment in a receiving Member 
State.  Member States are also required to remove legisl ative and administrative restrictions to the full 
enjoyment of the rights outlined in Chapter 3 except for those which are specifically authorised by the Revised Treaty.  As part of this process, service providers from one Member State will be exempt 
from the need for work permits in the receiving State . 
 
1.4 Canada notes that Jamaica plans to provide compul sory licensing of patents in its future Patents 
and Designs Act.  Could Jamaica specify under whic h requirements such compulsory licenses would be 
provided?  (Intellectual Property Rights (Para. 184)). 
 
Response
 
 
The requirements would be in accordance with Article 31 of the TRIPS Agreement and the relevant 
WTO Decisions. 
 1.5 Would Jamaica please specify under which circumstances infringement of a geographical 
indication takes place under the Protection of Geographical Indications Act? 
 Response
 
 
An infringement of a geographical indication takes place:  
• in the designation or presentation of a good that indicates or suggests that the good originates 
in a geographical area other than the true place of origin, in a manner which misleads the 
public as to the geographical origin of the good; 
 
• in any use which constitutes an act of unfair competition; 
 
• in any use which identifies wine s or spirits that do not originate in the place indicated by the 
geographical indication as wines or spirits of that origin. 
 
1.6 Paragraph 186 appears to state that trademarks th at contain or consist of a geographical indication 
relating to a product that does not originate in the territory indicated by the geographical indication are 
likely to mislead the public.  If this interpretation is correct, could Jamaica provide the rationale for such a 
presumption, given that there could be many instances where trademarks containing a geographical indication do not mislead the public as they are used  in association with goods that are different from those 
for which the geographical indication concerned is used? WT/TPR/M/139/Add.1 
Page 6   
Response
 
 
The actual wording of Section 17 (1) of The Protectio n of Geographical Indications Act states as 
follows:  “This section applies to a trade mark that contains or  consists of a geographical indication relating to 
a good which does not originate in the territory indi cated by the geographical indication, if the use of 
the indication in the trade mark, for such product in  Jamaica is of such a nature as to mislead the 
public as to the true place of origin.”  The referenced sentence in the Report should, therefore, be interpreted as indicating that, where trademarks are demonstrated to be likely to mislead the public, these can be barred from registration.  
 
1.7 Can Jamaica please explain what work remains to be done and provide a more concrete timeframe 
for its ratification of  the GATS Fifth Protocol. 
 
Response
 
 
There is the need to put in place certain critic al and necessary measures for strengthening the 
regulatory and institutional framework of the financial  sector, particularly in the areas of pension 
supervision and anti-money laundering.  These measures are intended to benefit both providers and 
consumers of financial services.  It should be no ted that these initiatives have begun.  However they 
have not yet been completed. 
 
Jamaica is not in a position to provide a more concrete timeframe at this time. 
 1.8 Paragraph 96 indicates that Jamaica applies discriminatory subscribed capital requirements to 
foreign-owned banks aimed at ensuring a “buffer against risks arising from the foreign banks’ operations 
outside of Jamaica.”  Can Jamaica please indicate whether this difference in treatment stems from 
experience with past events?  Given that the vast majority of home banking regulators oversee the global operations and liabilities of their banks, Canada q uestions whether this additional provisioning by Jamaica 
is needed. 
 
1.9 Can Jamaica also please indicate whether minimum capital requirements differ between foreign 
branches and subsidiaries?  Response (1.9 and 1.10)
 
 
There is no “discriminatory subscribed capital requirements to foreign-owned banks”.  A foreign 
owned bank, once incorporated in Jamaica as a distinct legal entity, is defined under Jamaican law as a local bank.  Section 6(1)(a) of the Banking Act stipulates:  “a licence shall not be granted to a 
local bank unless……capital to an amount no less than eighty million dollars has been subscribed”. 
 
Section 6(1)(b) of the Banking Act, however, desc ribes a situation where a foreign bank (being a 
bank incorporated in a country other than Jamaica) has Jamaican operations, usually through a branch.  The branch is not legally distinct from the other operations of the foreign bank and 
therefore, while the capital requirements for the branch (i.e. the assigned capital) are the same as 
those applicable for local banks, this section stipul ates that the paid up capital for the foreign bank  WT/TPR/M/139/Add.1
 Page 7 
  
(being the entirety of its operations both in Ja maica and abroad) be a minimum of two hundred and 
fifty million dollars.  This requirement is in keeping with a standard pr udential requirement around the world, whereby a 
domestic supervisor is entitled to consider the fina ncial resources of any banking institution seeking 
to establish a branch in that country, before granting its permission for the establishment of such a 
presence.  This would be particularly necessary gi ven that the financial cond ition of the local branch 
is potentially vulnerable to risks arising from the overseas operations of the foreign bank.  For example, section 526 of the Canadian Banking Act gives the relevant minister the power to take into account all matters relevant to the application (for a licence) including the nature and sufficiency of the financial resources of the foreign bank as a source of continuing financial support for the 
carrying on of its business in Canada.  The Jamaican approach to this issue has been to define the minimum amount of financial resources that shou ld be available to the foreign bank, before a licence 
is granted for that bank to operate a branch in Jamaica.  The approach of expressly naming a minimum capital that applies across the board is however being reviewed in the current drive by the Bank of Jamaica to modernise and centralise the laws relating to the deposit-taking sector.  
1.10 Canada congratulates Jamaica for fully liberalizing its telecommunications sector in 2003, which 
we understand was ten years earlier than originally scheduled.  Paragraph 125 notes that, as part of the 
sector’s reform, Jamaica is considering the establishment of a single regulator.  Could Jamaica please 
provide further detail on steps being taken by the Government with respect to this reform and the 
anticipated effects on the telecommunications sector? 
 
Response
 
 
Jamaica completed full liberalisation of its telecommunications sector in 2003, a decade ahead of its 
GATS commitments.  This has led to tangible be nefits including direct investment of over US$500 M 
and a more competitive market, which has led to a decl ine in rates.  Jamaica now has a teledensity of 
over 80 per cent compared with 30 per cent in  2000.  However, there are further consumer benefits 
to be harvested from the sectors reform.  Effo rts are now being made to deepen the benefits of 
liberalisation by improving broadband services throughout the island.  In this regard, two licences were recently awarded for the construction and operat ion of two submarine fibre optic network to 
provide increased connectivity between Ja maica and the rest of the world. 
 
Jamaica is cognisant of the effect that convergence is having in the telecommunication services 
sector.  The advent of Voice Over Internet Protocol (VOIP) technologies have blurred any distinction between voice and data  and, increasingl y, voice, video and data are being delivered by a 
single operator, through a single medium.  This has posed some challenges and, in this regard, 
Jamaica is currently reviewing its regulatory infrastructu re with a view to possibly rationalizing it to 
match the requirements of this new Telecommuni cations environment.  The telecommunications 
sector is currently regulated through a network of four agencies. 
 
2.0 BRAZIL 
 
2.1 Paragraph 33 of WT/TPR/G/139 states that "With  the dramatic increase in the cost of energy 
inputs at the national level, the Government has embar ked on a review of the energy policy and strategy 
which was approved by Parliament in 1995.  As part of  this process, emphasis in  the current financial year 
will be placed on energy diversification and the develop ment of policy mechanisms to increase indigenous 
renewable energy supply, such as wind, biomass and phot ovoltaic energy".  In addition, paragraph 26 of 
the Summary Observations of the Secretariat Report assert s that "The electricity industry is mostly in the WT/TPR/M/139/Add.1 
Page 8   hands of one private operator, which was granted a new  licence in 2001 giving it an exclusive right to 
transmit and distribute electricity throughout Ja maica for 20 years".  Has the Jamaican government 
considered ending this monopoly to diminish the high  cost of energy and promote energy diversification? 
Is there any specific plan regarding the use of ethanol as fuel?  
Response
 
 
The government is now engaged in a review of the Electricity Lighting Act and its 1995 Energy 
Policy.  This review will seek to improve investment opportunities in electricity generation.  The generation of electricity from new and renewable sources of energy (NRSE) will also be encouraged 
as the Policy will establish specific targets in this area.  With regard to ethanol, the Jamaican refinery will, in 2005, begin producing ethanol for export. Consideration is also being given for the use of et hanol as a replacement for Methyl Tertiary Butyl 
Ether (MTBE) in octane fuels, for the local market.  
2.2 In accordance to paragraph 9 of Chapter II in WT/TPR/G/139, "In the wake of the liberalization of 
the foreign exchange regime, the high levels of inflat ion and heightened inflationary expectations, interest 
rates rose appreciably in the early 1990s (...) In the face of increasing investor concerns regarding the fiscal 
accounts, instability in the foreign exchange market and heightened inflationary expectations, interest rates 
were derailed from their downward path and rose sharply in 2003".  How does the Jamaican government 
assess the impact of the higher interest rates on investment?  
 
Response
 
 
High real interest rates skewed commercial bank’s incentive structure in favour of investments in 
securities, and away from their core function of deposit providing credit to the private sector. 
Commercial bank’s real lending rates averaged 22.0 per cent between 1997 and 1999, which coincided with the period of disinflating the economy.  In this context, commercial bank’s 
investments, as a share of their total assets, increased to an average of approximately 34.0 per cent 
over the period 1997 - 1999 from approximately 15.0 per cent in 1996.  Concurrently, the average share of loans in bank’s asset portfolio fell to 18.0 per cent over the period, from 39.2 per cent in 
1996. 
 
Private sector loans also grew slowly, relative to the growth in loans to the government sector. 
Between 1999 and 2003, loans to the private sector expanded at an annual average rate of 23.0 per cent.  In comparison, loans to the government grew by an average of 36.0 per cent.  For private 
sector loans, personal loans, which are sometimes characterised as unproductive in nature, have 
traditionally accounted for the largest share of overall loans. 
 
The impact on GDP growth of the high real ra tes is not clearly discernible.  GDP declined by an 
average of 0.45 per cent between 1997 and 1999, compared with an average growth of 1.4 per cent over the period 2000 and 2003.  The latter period corresponds to a trend decline in real rates.  Some 
of the contraction in GDP over the former period, however, was due to shocks not related to the 
impact of financing cost on investment.  For exam ple, the contractions in real GDP in 1997 and 1998 
were partly due to the financial sector crisis.  Adverse weather conditions, in the forms of floods, 
drought and other natural pestilence, negatively af fected the agricultural sector.  A significant 
contraction occurred in the mining sector between 1999 and 2000 and was attributed to the partial 
closure of the Kaiser bauxite plant in those years.  WT/TPR/M/139/Add.1
 Page 9 
  
Preliminary research in Jamaica has however suggested that the main sectors that are vulnerable to 
high real rates are construction and manufacturing.   The other sectors, particularly tourism, 
telecommunications, electricity and water, and agriculture, do not generally respond negatively to 
interest rate shocks.  One probable reason for this is that tourism and telecommunications can access loans in foreign currency, while agriculture, electricity and water have access to other forms of financing.  In addition the flow of foreign direct  capital to the economy has been relatively buoyant.  
Consequently, the share of investment to GDP has remained consistently high.  
 
2.3 Paragraph 18 of Chapter II (WT/TPR/G/139) states  that "A number of projects aimed at enhancing 
private sector development are current ly in place.  These include the Cluster Competitiveness Project, 
which is aimed at increasing the international comp etitiveness of selected Jamaican enterprises".  Which 
are the criteria for selecting these enterprises?  
Response
 
 Clusters selected under the Project are rated on six criteria combining objective and subjective 
measures.  These included: 
 
• their willingness to embrace new ideas 
• their potential to be internationally competitive 
• their employment potential/GDP contribution 
 
Three clusters were selected – agri-business, touri sm and entertainment.  The selection was made by 
a project management board which comprised senior leaders from business government and 
academia.  2.4 According to paragraph 9 of the Summary Observations in WT/TPR/S/139, "Jamaica's exports benefit from non-reciprocal preferential trade arrang ements offered by a number of developed countries, 
and it faces the challenge of adjusting to an environ ment in which preferences are being increasingly 
eroded".  In the view of the Government of Jamaica,  which measures could be taken in order to deal with 
the problem of preferences erosion?  What is the pos ition of Jamaica regarding the rules of graduation in 
various GSP schemes?  
Response
 
 
Jamaica is the beneficiary of  a number of preferential arrangements for which reform efforts are 
underway.  While seeking to preserve the op timal benefits for such arrangements, Jamaica 
recognizes that there is likely to be a reduction in the benefits of a number of these arrangements.  In response to these developments, Jamaica has argued for adjustment programmes and initiatives that 
do not cause significant economic shocks and enable t he long term survival of the related industries.  
Some measures which can be taken include:  (1) Restructuring local industry to adapt to the changing global trade scenario through  diversification of products, retooling and the adoption of new technologies;  (2) Negotiating measures which provide support for sensitive products;  (3) Negotiating for Special and Differential (S &D) treatment for smaller economies with their 
 attendant small firms and limited capacity. WT/TPR/M/139/Add.1 
Page 10   
The broad issue of graduation has been of concern to Jamaica and other CARICOM Members for 
some time.  Indeed, a number of small CARICOM Member States have been made ineligible for concessional loans from international financial institutions on this basis.  While Jamaica realizes that development is a process and successful developmen t can produce strong economies with significant 
resource capabilities, we do not co nsider that benefits should be removed unilaterally.  However, 
Jamaica considers it appropriate for the specific si tuation of countries to be taken account of in the 
provision of benefits.  
2.5 Paragraph 14 of Summary Observations states as  follows:  "In addition to tariffs, certain other 
charges, including a customs user fee and the stamp duty , are applied exclusively on imports, considerably 
increasing border protection for some products.  Also, for a number of products, an additional stamp duty 
is levied on the customs value plus tariff in a compound manner.  (...) Taking into account the additional stamp duties, the average aggregate import duty on agr icultural products (WTO de finition) increases by 
almost one third".  What is the rationale and the main criteria behind the adoption of such duties, especially 
on agriculture goods?  Does the Jamaican government intend to simplify this system? 
 Response
 
 All our customs related duties and charges have been notified to the WTO in accordance with our 
obligations.  With respect to the higher bound levels of duty on certain agricultural products, as 
opposed to non-agricultural products, this is necess ary to safeguard domestic production of certain 
important products in order to better ensure sustainable food security.  It should be emphasised, 
however, that Jamaica is a net food importing country and that close to twenty per cent of all 
imports are agricultural products.  It should also  be noted that almost forty per cent of these 
agricultural tariff lines are duty free. 
 
2.6 Paragraph 18 of Summary Observations states that "Numerous schemes are in place aimed at 
encouraging domestic production in general or exports  in particular.  Four were notified to the WTO as 
providing export subsidies.  Given Jamaica's fragile fiscal  position, it could be important to establish  
empirically whether the benefits of the incentives system  outweigh its costs, especially because the latter 
could be high and include forgone fiscal revenue, r educed transparency, and the encouragement of rent 
seeking and vested interests, which might make reform difficult".  Has this evaluation of costs and benefits 
been done?  Does Jamaica  think that additional flexibilities for developing countries must be pursued under 
the ASCM and TRIMs Agreements? 
 Response
 
 
In the Agreement on Subsidies and Countervailing Measures (ASCM), Jamaica supports additional 
flexibility such as in the area of export incentives.  Jamaica applies no Trade Related Investment 
Measures (TRIMs) but understands the need to provide increased flexibility to developing countries 
in this area. 
 
2.7 What are the views of Jamaica regarding south- south trade?  Is it possible that CARICOM consider 
acceding to the GSTP in order to take part in the São Paulo Round? 
 Response
 
 
The increase in trade among developing countries has emerged as a positive element of the current 
international trading environment.  Over the last 40 years, trade among developing countries has 
grown at a more rapid rate than global trade and trade with developed countries.  Trade among  WT/TPR/M/139/Add.1
 Page 11 
  
developing countries has risen from 24% of their total trade in 1960 to 43% in 2003.  This 
underscores the fact that there is a high potential for further growth in south-south trade.  In this 
context, Jamaica gives full support to initiatives aimed at facilitating further expansion in south-
south trade.  The Global System of Trade Preferen ces (GSTP) is one of the current initiatives which 
can serve to create increased trading opportunities among developing countries and facilitate product and market diversification and integration among the economies of developing countries.  The GSTP would also provide the opportunity for enhanced linkages among regional integration 
schemes in the south.  Jamaica is not a member of the GSTP.  Only two (2) CARICOM countries – Guyana and Trinidad and Tobago – are members of the scheme.  While it  is not possible to give an indication regarding 
CARICOM’s position on accession to the GSTP, Ja maica intends to examine the possibility of 
acceding to the GSTP. 
 
3.0 HONG KONG, CHINA 
 
3.1 We note that a Standard Compliance Fee of 0.03% is imposed on all imported goods subject to the Standard Compliance Programme, except for imports in connection with government incentive programmes, programmes relating to health and welfar e, international agreements and protocols;  personal 
effects;  raw materials and capital goods imported fo r use in the manufacturing process; crude petroleum, 
and certain agricultural products.  We would like to know whether the compliance fee is also applicable to 
the like domestic goods, and if not, the reasons for the exclusion (WT/TPR/S/139, p. 57, para. 86). 
 
Response
 
 
The objective of the compliance programme is primari ly to ensure that consumer goods conform to 
mandatory health and safety requirements.  Both importers and domestic producers are required to 
meet these requirements.  Imported products are checked at the point of entry.  Domestic producers are subject to factory registration and inspecti on by compliance officers and a fee is charged for 
registration, inspection and testing. 
 
3.2 It is noted that Jamaica has yet to ratify the Fi fth Protocol on financial services, in which there are 
enhanced commitments on insurance and banking services.  The existing market access conditions in 
respect of these services are indeed considerably more liberal than those specified in Jamaica’s GATS 
schedule.  For example, all forms of insurance activ ities are open to foreign suppliers and foreign 
investment up to 100% is permitted; and the life and non-life insurance and banking sectors nearly benefit 
from national treatment (with the only exception of the higher minimum subscribed capital requirements 
for foreign banks). 
 Response
 
 See response to Canada 1.8 
 Could Jamaica share with us its latest progress in t he ratification of the Fifth Protocol?  Besides, would 
Jamaica consider reflecting its more liberal de facto regime under the current round of services 
negotiations, so as to bring its commitments in line wi th its actual regime and to increase the predictability 
of the regime? WT/TPR/M/139/Add.1 
Page 12   
Response
 
 Regarding reflecting Jamaica’s more liberal de facto regime in its offer in the current round of 
negotiations, Jamaica is presently engaged in an in-depth review and consultation which will 
determine the scope of its services offer.  
3.3 We note Jamaica’s broad policy objective to u tilize the telecommunications industry development 
as an engine of growth for the Jamaican economy.  To achieve this goal Jamaica liberalized the telecommunications sector in full by March 2003, a decade ahead of its original plan.  We would like to 
commend Jamaica’s efforts in undertaking the liberalization autonomously.  To ensure a more predictable 
environment for investors, would Jamaica consider binding them in its services offer? 
 
Response
 
 Jamaica is presently engaged in an in-depth review and consultation to determine, inter alia,  the 
implications of binding multilateral commitments in  the telecommunications services sector.  This 
process will be completed fairly soon and a decision on the scope of additional commitment in this and other service sector will be determined thereafter wi th a view to the presentation of an offer in 
the current round of services negotiations.  
 
4.0 THE EUROPEAN COMMUNITIES 
 4.1 It is noted in the reports made by both the Go vernment of Jamaica and the report prepared by the 
WTO secretariat that Jamaican economy is heavily dependent on the service sector, specifically tourism. 
Bearing this in mind, the EC would like to have some indications on what is being done to promote growth 
within other sectors, such as manufacturing of goods? 
 
4.2 Could Jamaica elaborate on the extended coverage (implementation) of competition policy (page 37 in the report prepared by the WTO Secretariat) and inform us about the link to trade policy? 
 Response
 
 
Jamaica operates an open and liberal economy with competition legislation being an important feature of the commercial landscape since the 1993 promulgation of the Fair Competition Act.  
Competition policy seeks to ensure the efficient fu nctioning of markets by the removal of unfair and 
restrictive business practices.  In so doing, it co ntributes to an improved business environment which 
has potential beneficial effects for eco nomic activities, including trade. 
 
4.3 About 30% of Jamaica’s public revenues arise from customs-related duties and charges measures. 
Has Jamaica elaborated a strategy to address this issu e, taking into account the steady lowering of customs-
related duties?  
Response
 
 
Jamaica’s trade policy points out that it is ta king a measured approach to further tariff reductions in 
order to safeguard revenues, reduce the threat of shocks to vulnerable sectors from drastic tariff reduction and better enable adjustment to future liberalisation measures.  
4.4 Concerning CARICOM CET, there are a number of  exceptions included in various lists.  What is 
the schedule for phasing out of these exceptions?  WT/TPR/M/139/Add.1
 Page 13 
  
Response
 
 The CARICOM Council on Trade and Economic Development has agreed to a wide ranging review of the CET however no timetable has been set for this exercise nor has a decision been taken on the phasing out of these exceptions.  
4.5 In the report prepared by the WTO secretariat it could be read that Jamaica has not yet ratified the 
Fifth Protocol to the GATS on financial services.  When does Jamaica expect to ratify the 5th protocol?  
4.6 Please indicate what further actions are planned to be taken and the timeframe for taking these 
actions concerning the liberalisation of financial services. 
 
Response (to 4.4 & 4.5)
 
 Jamaica is committed to meeting its obligations  under the WTO Agreement with respect to the 5
th 
Protocol to the GATS on Financial Services and we are very cognizant of the importance for all members to honour the commitments made, and with this view, we stand ready and willing to sign the Protocol.  
However, the signing of the financial services agreement will have to be further delayed as more time 
is required to put in place certain critical and nece ssary measures for strengthening the regulatory 
and institutional framework of the financial sector , particularly in the areas of pension supervision 
and anti-money laundering.  These measures are intended to benefit both providers and consumers of financial services. 
 
4.7 Would Jamaica inform us on how much of the FDI attracted by the country in the last years has been in the tourism sector? 
 
Response
 
 
In 2003, the tourism sector attracted FDI amounting to US$114.3 million, 16% of total FDI.  This was an increase from on the previous year in which the tourism sector attracted 10 % of total FDI. 
 4.8 Would Jamaica inform us about their concrete plans to promote the tourism sector, and what 
measures the government is taking to ensure non-discrimination of Foreign Service suppliers? 
 
Response
 
 
An Action Plan has been formulated to carry out the ob jectives of the Tourism Master Plan, which is 
the main policy initiative guiding the industry.   The Ministry of Tourism has been working on the 
following:  
• The management mechanism for the implementation of projects emanating from the 
Tourism Master Plan; 
• The legal framework for raising the funds and; 
• The establishment of an interim advisory committee. 
 Jamaica will continue the aggressive and mu lti-pronged approach to marketing the destination 
among both consumers and the travel trade in key international markets (North and South America, WT/TPR/M/139/Add.1 
Page 14   
the United Kingdom and Europe).  New innovati ons in the marketing programme including 
advertising in movie cinemas and television promotion of the island’s less exposed and smaller attractions, as also on heritage and culture, will complement the traditional television and print 
advertising that were focussed on showcasing some of our longer and better known accommodations and attractions.  The Master Plan has set targets of 2.2 million stop over arrivals and a similar number of cruise 
arrivals by the year 2010 – targets that are achiev able based on recent trends.  The record levels of 
investment currently taking place in the sector by f oreign suppliers, for example, is expected to top 
US$800 million over the next five years.  Jamaica does not discriminate against foreign suppliers. 
 
4.9 Would Jamaica inform us about their plans for improving professional education and training 
related to the tourism sector? 
 
Response
 
 As indicated earlier, it is mandatory for all workers in the tourism sector to be trained under the 
Team Jamaica Programme.  Skills training progra mmes for hospitality workers, chefs, waiters etc., 
are carried out by the Government’s Training Institut e.  The University of the West Indies through 
the Tourism Centre provides tertiary level training for persons seeking employment at a managerial 
level in the industry.  4.10 What is Jamaica’s viewpoint about the to urism sector and promotion of local cultures, 
development of water supply and sanitation services, and public security? 
 
Response
 
 
Tourism is a major pillar in the Jamaican economy a nd is a catalyst for growth in other sectors.  Its 
economic significance is demonstrated by the fact that:  
 - it is the major foreign exchange earner with over US$1 billion and accounts for over 
  50% of the country’s foreign exchange receipts; 
 
 - it is a major employer of labour accounting for direct employment of 75,000 persons   and about another 90,000 persons indirectly; 
 
 - it makes a significant contribution at about 10% to GDP; 
 
 - it generates a considerable amount of investment in the country and stimulates   economic activities in other sectors in other sectors through its linkages. 
 
Jamaica has been ranked in recent times within the top five of the World’s most favoured tourist 
destinations and the number of internationally branded and recognized hotels operating out of the 
island have been growing.  Some of the indigenous hotels are now recognized brand names and have become outward investors with establishments within and outside the Region.   WT/TPR/M/139/Add.1
 Page 15 
  
Environmental sustainability is the key objective of the Tourism Master Plan mentioned earlier, and 
in this connection, the Government is committed to improving water quality and sewage facilities to 
support the development of the tourism product.  Enhancing the visitor experience through the prom otion of local culture and the provision of 
adequate security are also measures that are being given continued attention. 
 
4.11 We would like to know about Jamaica’s assessment  of the effect of the tourism sector in overall 
economic growth and employment, and in particular in other economic sectors like construction, transport, 
computer services, education and professional training. 
 
Response
 
 As indicated above, the tourism industry makes a s ubstantial direct economic contribution to the 
economy.  The accommodation boom now taking place (5000 rooms are expected to be completed by 2006) provides additional linkage opportunities and companies in construction, transportation, computer distribution chains will be able to ‘plug’ into the growth train.  Measures to further improve professionalism in  the industry will be effected through continued 
training and human resource development programmes for workers in the industry.  It is already a 
requirement that all workers in the tourism and tourism support sector be trained under Team 
Jamaica – a training programme geared to providing workers with the requisite skills and training 
for employment in the sector.  4.12 Would Jamaica inform us about the existing legislation applicable to tour managers (professionals accompanying groups of tourists in their travel through the country) and tourist guides?  Would Jamaica 
inform us about the plans that the government is considering to reduce or eliminate discrimination of 
Foreign Service suppliers in these fields?  
Response
 
 There is no legislation applicable to tour operators. 
 
Jamaica does not discriminate against foreign suppliers and operates in accordance with 
commitments made in its Services schedule under the GATS. 
 
4.13 It is important that tourism is carried out in  a sustainable manner, in order to ensure that the very 
fundament for tourism itself is not eroded or disrupted.  What is the approach of the government of 
Jamaica to the regulation of tourism - related aspect s of general interests such as environment, wildlife, 
urban planning and the promotion of local cultures, de velopment of water supply and sanitation services, 
and public security?  
Response
 
 
Please see response to 4.9 
 
4.14 Would Jamaica inform us on how many people work in the distribution sector and what has been the evolution in the last years. 
 
 WT/TPR/M/139/Add.1 
Page 16   
Response
 
 In 2003, employment of 159,100 was recorded in the Distributive Trade Sector, representing 16.6% of total employment.  Real sales in the distributive trade sector is estimated to have grown by 1.2% in 2003 relative to 2002.  This performance was evident in higher sales, credit and imports, the major indicators of the 
sector.  The increase in gross sales in  2003 wa s attributed primarily to the expansion in sales by 
wholesale firms.  It should be noted that the sector has benefited in recent years from trade liberalisation, increased visitor arrival, increased credit to consumers and businesses as well as increased remittance inflows.  
4.15 Would Jamaica inform us how much of the FDI attracted by the country in the last years has been 
in the distribution sector? 
 
Response
 
 
A statistical breakout on FDI inflows to the dist ributive sector is unavailable at this time. 
 
4.16 The EC would like to know about Jamaica’s assessment of the effect of distribution sector in 
overall economic growth, employment and social deve lopment and also in other economic sectors like 
construction, transport, computer se rvices, education and personal training. 
 
Response  
 
The distributive sector continued in 2003 to be the largest contributor to GDP, accounting for 
approximately 20.2%.  As previously noted the sector is a significant employer, accounting for 
approximately 16.6% of the labour force with one-half of these being female.  
The outlook for the distributive sector remains positive, given expected growth in the domestic 
economy.  Consumer spending is expected to grow in line with aggregate incomes, with remittances remaining an important source of additional purchasing power.  Other factors which are expected to 
contribute to continued growth in the sector include the expected improvement in the performance 
of sectors closely linked to the distributive tra de, including construction and installation, tourism 
and transportation. 
 
4.17 Would Jamaica inform us about existing legislation applicable to retailing services. 
 Response
 
 
There are several laws that directly impact on the provision of retailing services in the Jamaican market.  The following is a listing of the legislation most applicable to retailing: 
 
1.  Sale of Goods Act 
2.  Hire Purchase Act 
3.  Standards Act 4.  Weights and Measures Act 5.  Fair Competition Act 
6.  Trade Act 
  WT/TPR/M/139/Add.1
 Page 17 
  
In addition to existing legislatio n it should be noted that a Consumer Protection Bill is presently 
before the Houses of Parliament.  The Bill seeks to establish the Consumer Affairs Commission as a 
statutory body and will strengthen provisions for co nsumer rights as well as consumer redress 
procedures.  Not highlighted above but also applicable would be corporate governance laws as well as taxation legislation including the framework for the collect ion and remittance of consumption tax charged at 
the point of retail. 
 
4.18 According to the report of the WTO secretariat, electricity rates are high compared to international 
standards.  Energy is an important ingredient in mo st production processes.  It seems that further 
liberalisation in the energy field could yield great benefi ts to Jamaica and that such liberalisation could be 
sought in the framework of the GATS.  
• Does Jamaica share this view? 
• Does Jamaica foresee entering into additional commitments and further liberalize the electricity 
market in order to achieve such lowering of energy prices? 
 
Response
 
 
Jamaica is now in the process of reviewing its 1995 Energy Policy.  As a part of the review process, 
issues relating to liberalisation and commitments  under the GATS will be the subject of thorough 
analysis.  As noted, Jamaica has already li beralised the electricity generat ion market and will continue to 
ensure that the policy and legislative framework governing electricity generation remains investor friendly. 
 
4.19 Would Jamaica inform us about the legislat ion applicable to the following activities and the 
measures the government is taking to ensure non-discrimination of Foreign Service suppliers?  
• Management consulting 
• Services related to management consulting 
 
Response
 
 
Jamaica’s treatment of service suppliers is in com pliance with its GATS comm itments.  Information 
will be subsequently provided on applicable legislation.  
4.20 What is specifically being done by the Government  of Jamaica to the infrastructural development? 
 
Response
 
 The Public Sector Investment Programme (PSIP) sets out in detail the Government’s investment 
priorities over the medium term.  The present programme for the period 2004/05- 2006/07 focuses on, inter-alia , the provision of economic and physical infrastructure (transport, communication, 
water and sanitation), social protection and povert y alleviation, social infrastructure (health and 
education), governance. WT/TPR/M/139/Add.1 
Page 18   
Some Infrastructural projects include:  (1) The National Road Service Improvement Programme, (2) 
the Parish Infrastructure Development Programme, (3) Northern Coastal Highway Improvement Programme and (4) the Information and Communication Technology Project. 
 In the Kingston Metropolitan Area, work is currently being undertaken in the context of Vision 20:20:  a Master Plan for the Redevelopment of Downtown Kingston, the Action Plan 2000-2004 Inner City Renewal Programme, and the recently established Kingston City Centre Improvement Company (KCCIC) and through the work of non-governmental organisations such as Kingston Restoration Company.  
4.21 The reports explain that Jamaica's macroecon omic/trade policy and social policy are based on and 
formulated in the same framework.  The importance of linking trade with sust ainable domestic policies, 
and in particular employment-related matters and core  labour standards, was confirmed last year by the 
Final Report of the World Commission on the Social Di mension of Globalisation.  It would appear that for 
example the programmes that Jamaica carries out also to respond to sustain employment (Para II.(ii)17.), as 
recommended in the World Commission's recommendat ions.  Could Jamaica please elaborate on her 
efforts being made to achieve improvements within this area?  
Response
 
 
Programmes aimed at generating Sustainable Employment:  The GOJ is committed to maintaining 
macro-economic stability and overall improv ing the environment for increased business 
competitiveness.  Specific strategies that are currently pursued include:  
− Reform of the Tax Administration 
 
− Prioritizing the budgetary allocations and release of funds to support the social sectors and 
poverty reducing measures 
 
− Providing basic education and vocational skills training opportunities for youth and adults 
outside the formal school system.  This is being implemented through the Human 
Employment and Resource Training (HEART ) Trust/National Training Agency (NTA).  
HEART Trust/NTA programmes are available to youth in the 17-29 age grouping however, non-certificate training and informal skills training programmes are provided to youth 
below the age of 17 in Special Programmes.  Pre-vocational/continuing education 
programmes are also provided at Vocational Training Centres (VTCs) for persons who do 
not satisfy the normal matriculation requireme nts for HEART Trust/NTA Level 1 training 
programmes.  This programme provides a pool for prospective HEART trainees 
 
− Focusing health reform measures on improving service delivery standards, with particular 
attention to those indicators cited above that are lagging in achieving Millennium Development Goals. 
 
− Implementing the recommendations of the Committee of the Rights of the Child. 
 
− Supporting the National Youth Policy (2003) with a National Strategic Plan for Youth 
Development (NSPYD), that is currently being prepar ed.  The NSPYD will act as the guide to 
the implementation of the Policy over the next five to ten years, and will focus primarily on 
the 19-24 age group  WT/TPR/M/139/Add.1
 Page 19 
  
− The purpose of the National Youth Policy (2003) is to: seek to define a common vision and 
framework for youth development; articulate t he roles and responsibilities of youth in 
personal and national development; All youth completing secondary level education should acquire the skills which will enable them to be prepared for livelihood, self-development and citizenship.  In addition the government’s goal is  to facilitate the creation of opportunities for 
employment and an environment that promotes entrepreneurship. 
 4.22 In the report prepared by the WTO secretariat, it is stated that  a National Trade Policy has been 
adopted by the Government in 2001.  Could Jamaica please elaborate further on how the NTP goes 
together with the NIP?  What specific actions ha ve been taken following the NTP since its adoption? 
 
Response
 
 
− The strategic focus of both the NIP and the NTP is export-oriented growth driven by the 
private sector with government playing a facilitatory role. 
 
− The development of an Export Strategy jointl y with the Private Sector which identifies 
targets to be achieved by the year 2010. 
 
4.23 Jamaica has adopted the National Trade Policy advancing the country’s development objectives in 
the context of increasing globalization.  What is the relationship between this strategy and the poverty 
reduction strategy of Jamaica?  Response
 
 
The National Poverty Eradication Programme (NPE P) is being revised to address the shortcomings 
identified in a recently concluded evaluation.  Consideration can now be given to mainstreaming trade in the NPEP.  
The approach to poverty reduction is expected to  remain an integrated one embracing social capital 
development through the broad social policy agenda and promoting/maintaining macro economic 
stability and growth.  An essential part of the st rategy to be followed is building a base for the 
breaking of intergenerational poverty through expansion of access to improved quality early childhood development services and secondary educatio n, better targeting of limited resources to the 
poor and the promotion of equity.  These will be complemented by direct poverty alleviation 
programmes and micro enterprise support. 
 
4.24 Has the need for technical assistance been fu rther assessed such as to provide an overview and a 
plan of areas are to be further boosted by technic al assistance and how much technical assistance is 
required in each of these areas?  Further is the issue of technical assistance incorporated in the national trade strategy?  
Response
 
 See responses to questions 4.21 and 4.22.  
4.25 As most LDCs the EC is truly aware of the needs that Jamaica may be facing with regard to further 
trade related assistance.  The EC should like to ask to what extent trade has been mainstreamed in the PRSP and national development policy? WT/TPR/M/139/Add.1 
Page 20   
Response
 
 See responses to questions 4.21 and 4.22.  
4.26 Regional trade is an important tool for impr oving and harvesting the benefits from trade.  In the 
view of the EC, the CARICOM liber alisation plans are important for fostering continued growth.  How 
does Jamaica assess the possibility for carrying out  those liberalisation plans establishing a free-trade 
within the CARICOM within the deadline establishe d in the revised treaty of Chaguaramas in 2001? 
 
Response
 
 CARICOM leaders will officially launch the CARI COM Single Market in February 2005.  Jamaica, 
along with Barbados and Trinidad & Tobago will participate in the launch when inter alia
 national 
CARICOM Single Market Legislative Enactments wi ll be presented to the Secretary General.  The 
Legislative Enactments relate to the “Caribbean Community Act” and the “Caribbean Community 
(Establishment Services, Capital, Movement of Comm unity Nationals) Act”.  Other members of the 
community are to do the same January 1, 2005.  Agreement has been reached at the regional level for implementation of the Single Economy by 
January 2008.  Jamaica has embarked on the necessary preparations to meet this timeline. 
 
4.27 What strategy does Jamaica have with regard to  establishing national institutional mechanisms for 
enforcing CARICOM decisions? 
 Response
 
 
To facilitate the enforcement of key CARICOM decisions, Jamaica has established the “Inter-
Ministerial Consultative Committee” and t he “CARICOM Single Market & Economy (CSME) 
Unit” which are focal poi nts for ensuring the implementation of relevant CARICOM decisions. 
 
Through the parliamentary process Jamaica enacted into do mestic law the following legislation that 
provides enforcement of relevant domesti c authority for the CARICOM obligations: 
 
• The Revised Treaty of Chaguaramas 
• The Agreement establishing the Caribbean Court of Justice (CCJ) 
• The Agreement establishing the CARICOM Regional Organization for Standards and 
Quality (CROSQ) 
• The Intra-Regional Double Taxation Agreement 
• Agreement on Transfer of  Social Security Benefits 
 
4.28 The EC considers that the WTO and multilateral  liberalization is the most certain way for small 
countries to promote their interests.  How does Jamaica judge the relative importance and weight of 
bilateral/FTA policies and further development of the WTO system in terms of her own trade and 
development needs? 
 
Response  
 
Jamaica is deeply committed to the regional in tegration process underway within CARICOM and is 
confident that this exercise will enhance pr ospects for economic growth and development and more  WT/TPR/M/139/Add.1
 Page 21 
  
effective integration into t he global economy.  RTAs such as  the CARICOM Single Market and 
Economy (CSME), serve to complement and reinforce t he objectives of multilateral trade in all its 
dimensions.  For small economies, this is particularly important.  RTAs enable them to apply the principles of trade liberalization in a defined econo mic and geographical context, and thus facilitate 
their effective participation in the wider multilateral trading environment. 
 5.0 THE UNITED STATES OF AMERICA  
5.1 The Secretariat’s Report states in paragraph 26 that tariffs account for 9.3% of total taxation 
revenue.  Please provide the percentage of both taxatio n and total revenue collected from other duties and 
charges, including the stamp duty, GST and SCT. 
 
Response
 
 
Tax Revenue from International Trade (2003/04) 
 % of Total Revenue % of Tax Revenue 
Customs Duty 8.2 9.4 
Stamp Duty 0.6 0.7 
GCT 9.6 11.2 
SCT 4.8 5.5 
 
5.2 The Secretariat’s Report states in paragraph 43, pa ge 46, that “a customs user fee of 2% is levied 
on all imports.”  Please explain how this fee is con sistent with Jamaica’s obligations to the WTO under 
Article VIII of the GATT to limit such fees to  the approximate cost of services rendered. 
 
Response  
 
Our preliminary view is that these user fees ar e WTO consistent.  Further details will be provided at 
a later date.  
5.3 Referring to Paragraphs 44 and 45 on pages 46 and 47 of the Secretariat Report, Jamaica levies an 
ad valorem Stamp Duty on many imports but not on domes tic products.  On some ag ricultural products, the 
combination of tariff and stamp duty raises the ad  valorem charges on these products above tariff rates 
bound in the Uruguay Round.  Please explain how Jama ica’s levying of Stamp Duty is consistent with 
Jamaica’s tariff bindings and WTO obli gations regarding national treatment. 
 Response
 
 
Stamp duties and other duties and charges are reflected in Jamaica’s Uruguay round schedule. 
 
5.4 Paragraph 46 of the Secretariat’s Report lists the non-agricultural products which are subject to 
higher stamp duty rates.  Could Jamaica confirm that these are the only non-agricultural products subject to 
the higher stamp duty? WT/TPR/M/139/Add.1 
Page 22   
Response
 
 Jamaica confirms that these are the only non-a gricultural products subject to the higher stamp duty 
rates. 
 
5.5 U.S. exporters report that Jamaica requires processed, packaged, dry pr oducts that contain minor 
amounts of dairy content to meet the same SPS requir ements as fresh dairy products which pose a different 
level of risk.  Does Jamaica have a scientific basis for requiring processed, packaged, dry products that contain minor amounts of dairy content to meet the same  SPS requirements as fresh dairy products?  If so, 
please provide details and references, if available. 
 
Response
 
 The Veterinary Services Division (Jamaica) requires that products containing products of animal origin are produced/processed in a manner, which renders the products wholesome, safe and fit for human/animal consumption.  It therefore requires that such imported product is certified by the 
official regulatory agency monitoring the origin production and processing systems and procedures involved in the production of the product.  
Normally, certification addresses the scientific systems and procedures under which the products are 
produced or processed.  It therefore attests to the safety wholesomeness and fitness for its intended 
use. 
 Jamaica does not require processed packaged an d dry products containing minor amount of dairy 
content to meet the same SPS r equirements as fresh dairy products. 
 
It must be pointed out that it is the scientific processes e.g. pasteurization and ultra heat treatment 
(UHT) of milk that renders milk safe to be utilized in producing milk based products, not whether there will be a small or large amount of milk in the product. 
 
It would be unsafe to accept such milk-based product s on the basis of the exporters comments on the 
quantity of its ingredients rather than with the offi cial attestation as to the origin, production and 
processing system relating to the safety wholesomeness and fitness of the product for its 
usage/consumption. 
 
This is especially so when allergen producing product s of animal origin are contained in the product 
since the allergenic responses are not usually based on the quantity of the ingredients in the product. 
 
5.6 U.S. exporters have advised that Jamaica has ban ned importation of all U.S.-origin pork products 
due to the presence of Aujesky’s disease (pseudorabies ) in certain states.  There have been no reported 
cases of Aujesky’s disease in the United States since March 2003.  When does Jamaica intend to remove its import ban on all U.S. pork products? 
 
Response
 
 The Veterinary Service Division has advised that the procedures for approving the importation of 
live animals and products originate require inter alia: 
  WT/TPR/M/139/Add.1
 Page 23 
  
• Consideration of officially reported animal/zoonoti c disease status such as Aujeszky’s disease 
(pseudorabies) of the exporting country.  This information is usually provided by the 
designated Competent Authority (official agency)  in the exporting country e.g. United States 
Department of Agriculture (USDA). 
 
• The Official regulatory agency’s ma nagement/monitoring systems being implemented during 
production, slaughtering and processing. 
 
• The possible risk that importing and util ization of such products, by-products and their 
waste disposal might pose to human and/or animal population. 
 
How the animal or zoonotic disease if any associated with such a product is treated, controlled and 
eradicated, etc. 
 
The Veterinary Services Division has further advised that it will always respond to a request from the competent authority from the exporting country for evaluation of the country’s disease status  
and sanitary and food safety programme implemented in the production and processing of the subject product. 
 
5.7 According to paragraph 116, page 64 of the Secre tariat’s Report, a duty drawback may be granted 
under the Customs Act on imported inputs for the manufa cture of exports, and that  the Minister of Finance 
“is empowered to direct, by order, the goods and the conditions on which a drawback can be granted.”  Is the drawback applied solely to inputs which are consumed in the production process of another product 
that is exported? 
 
Response
 
 Pursuant to a policy decision, inputs used in the manufacture of goods are entitled to duty free treatment.  Duty drawbacks therefore do not arise. 
 
5.8 According to paragraph 155 on page 75 of the Secr etariat’s Report, the Coffee Industry Board was 
divided in 2000 into regulatory and commercial divisi ons.  The commercial assets were scheduled for an 
August 1, 2004, transfer to a new state-owned enterprise, the Specialty Coffee Company of Jamaica, which will produce, procure, process, and market Jamaican coffee.  Has this transfer taken place?  Does Jamaica have an y intention of privatizing part or all of the Specialty 
Coffee Company of Jamaica?  
Response
 
 
The Commercial Division of the Coffee Industry Boar d was officially separated from the Regulatory 
Division of the Board.  The Comm ercial entity initially referred to as the Specialty Coffee Company 
of Jamaica was renamed Wallenford Coffee Company and became operational 1st August 2004. 
 The main objective and focus of the Wallenford Coffee Company at this time is to establish a viable 
and profitable operation, particularly after the damage to the coffee industry caused by hurricane Ivan in September 2004.  The issue of privatization will be considered in due course. WT/TPR/M/139/Add.1 
Page 24   5.9 Referring to paragraph 157 on page 75 of the Secr etariat’s Report, we applaud the transparency 
requirements for State-Owned Enterprises enacted in Jamaica’s 2001 Public Bodies Management and Accountability Act (PBMA), particularly the requiremen ts for annual reports, internal and external audits, 
and for the submission of corporate plans.  Does the Public Bodies and Management and Accountability 
Act require state-owned enterprises to make annual re ports, audits, and corporate plans available to the 
public?  
Response
 
 The PBMA (section 3 and 7(6)) requires annual reports (inclusive of audited financial statements) 
and corporate plans of public bodies to be Tabled in  Parliament.  Once Tabled, they become public 
documents.  
5.10 Does this Act explicitly require State-Owned Enterprises to operate on commercial principles? 
 
Response
 
 While the act does not explicitly indicate that state owned enterprises operate on commercial principles, it nevertheless requires that the enterprise s be operated effectively and efficiently (section 
6 – Corporate Governance) and that due care, dili gence and skill be exercised in their operations. 
 5.11 Paragraph 159 on page 76 of the Secretariat’s Report notes that “entities engaged in delivering 
goods and services mandated by statute will continue to  operate so long as markets are unable to function 
fairly and effectively”.  What government entity determines that “..markets are unable to function fairly 
and effectively” and what criteria are to be used to make the determination?  
Response
 
 The Fair Trading Commission may be consulted on t he fair and effective functioning of markets.  
Criteria such as entry barriers, and other market power determinants are considered in arriving at 
the relevant conclusions.  The government has undertaken an aggressive programme of privatization of many state owned enterprises.  There are few remai ning statutory boards.  These exist primarily 
for trade in sensitive commodities.  
5.12 According to Table III.16 on page 87 of the Secret ariat’s Report Jamaica does not grant protection 
for undisclosed information.  No further information regarding any efforts undertaken by Jamaica to provide this sort of protection is particularly provided in the report.  An update on the status of any efforts 
being made by Jamaica to provide TRIPS Article 39 pr otection and in particular article 39(3) protection is 
requested. 
 Response
 
 Jamaica intends to put legislation in place to pr ovide TRIPS Article 39 protection by the end of 2005. 
 
5.13 According to paragraph 185 on page 87 of the Secretariat’s Report, Jamaica proposed new law on Patents and Industrial Designs provides exceptions to patentability for animals and biological processes or 
discoveries which appear overly broad.  TRIPS Articl e 27(3) (b) permits exclusions from patentability for 
“animals other than micro organisms” and “essentially biological processes for the production of plants and 
animals”.  Please clarify whether the exclusions from  patentability in the new law relating to animals and 
biological processes or discoveries are limited to those permitted under TRIPS Article 27(3((b).  WT/TPR/M/139/Add.1
 Page 25 
  
Response
 
 The exclusions from patentability in the new law wi ll be consistent with our TRIPS obligations.  The 
proposed law is being drafted and we will be consulting with our intellectual property office on the scope of coverage. 
 
5.14 Referring to paragraph 186 on page 87 of the Secretariat’s Report, a new law regarding the protection of geographical indications was passed on April 2004, The Protection of Geographical Indications Act.  In what way does the new law preserve the legal rights of trademark owners consistent 
with Articles 16(1) and 24(5) of the TRIPS Agreement? Specifically, does the new law provide for 
trademarks in Jamaica to be protected from confusingly similar and later in time geographical indications 
as required by Articles 16(1) and 24(5) of TRIPS?  
Response
 
 Under Section 19 (2) and (3) of The Protection of Geographical Indications Act, the registrability of 
a trade mark application or the validity of a trade mark registered in good faith or the validity of rights to a trade mark acquired through use in good faith:  
 (a) before the coming into force of the Act;  or 
 
 (b) before the geographical indication in res pect to the trade mark is protected in its 
country of origin, cannot be prejudiced on the basis that the trade mark is identical with or similar to a geographical indication. 
 5.15 Has this new law been notified to the WTO?  Response
 
 
No, the new law has not been notified to the WTO.  We are now in the process of doing so. 
 
5.16 Are there implementing regulations that accompany the new law?  
Response
 
 
There are currently no implementing regulations that accompany the new law.  These are being 
prepared. 
 5.17 Paragraph 63, page 13 of the Jamaica Report states that amendments are also due to be made to the 
Copyright Act and the Trademarks Act and the Trademar k Rules in order to strengthen the enforcement 
provisions and overall compliance with the TRIPS Agreem ent.”  Please specify the key provisions of these 
proposed amendments  
 
Response
 
 
New Regulations under the Copyright Act and the Trade Marks Act are now being prepared.  It is proposed that the new regulations wi ll give additional powers for the detention of infringing goods.  
In addition, the procedure with which a proprietor or licensee must comply, to request the 
intervention of the Customs Department, will be simplified . 
 WT/TPR/M/139/Add.1 
Page 26   5.18 The Secretariat Report relates in paragraph 16, page 93 that Jamaica’s agricultural imports are more than two times its exports.  Vegetable imports  have increased significantly since Jamaica’s last 
review and Jamaica is nearly self-sufficient in chicken production.  Paragraph 25 on page 96 of the Secretariat Report provides the details of Jamaica’s 2002 aggregate duty increases on vegetable and poultry imports to 260%.  Please explain the policy rationale for this increase in protection.  Are these tariff increases above bound rates temporar y?  When does Jamaica expect to reduce the tariffs to previously 
applied rates?  
Response
 
 In Jamaica’s Uruguay Round the duty on poultry was bond at 100% and other duties and charges at 80% for some items, 15% for others and 3 items at 200%.  The Government of Jamaica has increased these duties within the scope provided for in its schedule of commitments. 
 
5.19 Are there other financial sector  laws and regulations that Jamaica believes it needs to implement, 
or can it now move expeditiously to ratify the Fifth Protocol to the GATS? 
 
Response
 
 
See answer to similar question posed by Canada 1.8 
 
6.0 JAPAN 
 
6.1 According to the Secretariat Report, as at June 2004, Jamaica had not yet ratified the Fifth Protocol 
to the GATS, in spite of having made commitments on financial services in both the Uruguay Round and the extended negotiations that led to the Fifth Protoc ol.  Please indicate the specific prospects of ratifying 
the Fifth Protocol to the GATS.  
Response
 
 
See answer to similar question posed by Canada 1.8  
6.2 The Report by Jamaica states that in the multilateral negotiations in the WTO, Jamaica seeks to ensure that the rules take appropriately into account the concerns of small developing economies, preserve 
the policy space necessary to important critical development programmes and provide facilities for 
adjustment to the new international economic environment.   In this regard, please explain Jamaica’s overall 
concerns more specifically.  In particular, please define the concept of “the policy space” more clearly. 
 
Response
 
 
Policy space in this context is seeking to ensure that multilateral trade rules which increasingly 
encompass behind the border, as well as, boarder measures provide room for developing country to 
pursue their development goals and objectives.  T he flexibility that is provided may result from 
negotiations or it may entail the acknowle dgement that rules need not be developed. 
 
7.0 COLOMBIA 
 7.1 In paragraph 1 the Secretariat’s report refers to  aggregate duties applied.  Would Jamaica explain 
what these aggregates are and to which products do they apply? 
  WT/TPR/M/139/Add.1
 Page 27 
  
Response
 
 
The aggregate duty levied is derived from the compounding of the customs duty, the cif and GCT. 
 
7.2  In paragraph 12 of the Secretariat’s document, it states that tariff escalation is negative, which may 
inhibit the production of intermediates.  Would Jamaic a explain what is the objective of this policy and if 
the aim is for the country to specialize in the production of primary products?  
Response
 
 Where a tariff is higher in the tariff structure on a primary product than an intermediate good it is 
usually the case that the primary product is one that is of socio-economic importance and for which 
the tariff functions to support adjustment of the sector or its preservation for valid economic or social reasons including the preservation of rural employment and development.  Where related intermediary goods are listed at a lower rate of  duty it may be the case that such goods are not 
produced locally or cannot be so produced on a competitive basis and do not have a comparable social economic or food security justification for similar measures.  In addition the product may be 
utilized as inputs for the production of more adv anced goods and would be treated in the tariff 
listing as a raw material.  However, the fact is  that negative tariff escalation is more apparent than 
real.  This is because a rate of zero is applied to raw materials and to inputs into production.  
Regarding the question of specializing in primary products we refer to the trade policy which states 
clearly that our strategy is to diversify pr oduction and exports.  Jamaica Promotions 
Corporation Ltd is actively looking at value added products and measures to increase product range.  Select companies are looking at expanding their product  line.  The Ministry of Finance and Planning 
is also current conducting a general review of fis cal measures which will be announced in the new 
financial year. 
 
7.3 How is the tariff policy compatible with the po licy of diversification of exports, referred to in 
paragraph 7? 
 Response
 
 
See response to question 2.  
7.4 Paragraph 7:  Would Jamaica explain its policy of reducing the share of imports relative                       
to output?  Is this policy applicable to all economic sectors or is it focused on the sectors that are more competitive internationally? 
 
Response
 
 
Jamaica is seeking to improve its balance of trade performance in a context where exports have expanded far more rapidly than imports and imports are a much larger share of GDP than exports.  In this regard Jamaica’s Trade policy seeks to promo te greater domestic competitiveness in a range 
of products thereby promoting greater purchase and consumption of local products without the use 
of protectionist measures.  It is for this re ason that the Cluster Competitiveness programme and 
other initiatives to promote more efficient domestic output are priorities in our overall economic strategy.  
7.5 Paragraph 13:  In which cases are the applied rates above the bound rates committed to at the WTO 
and why? WT/TPR/M/139/Add.1 
Page 28   
Response
 
 There are approximately 24 lines where the applied rates may be higher than the bound rates based on pre Uruguay round commitments.  This will be reviewed in the context of the CARICOM CET 
rates, which are applied by Jamaica, so as to ensure WTO consistency. 
 
7.6 Paragraph 14:  The other charges applied to imports, such as customs user fee and stamp duty:  are these bound in the WTO commitments or will Jamai ca consider binding them in its commitments in the 
WTO?  
 
Response
 
 Other duties and charges were bound in Jamaica’s Uruguay Round Schedule.  The customs user fee is a user fee and is not required to be scheduled.  
7.7 Paragraph 17 (Chapter III Para 58:  Why is t he importation of oils and fats products from third 
countries subject to special condi tions?  What are these conditions? What percentage of internal 
consumption of oils and fats is met by national product ion?  What types of oils does this measure cover 
and what are the tariff spread? 
 Response
 
 
The objectives of the oils and fats regime within  CARICOM as outlined in the Revised Treaty of 
Chaguaramas, Schedule III – Development of the Oils and Fats Sub-sector are as follows: 
 
(a) To encourage and support the viability, expansion and diversification of the regional oils and 
fats industry in the Community; 
(b) To facilitate the regional  marketing of oils produced from indigenous raw material; 
(c) To improve and promote the production of tradi tional and non-traditional oilseeds within 
the Community; 
(d) To encourage the development and marketing of a wider range of competitive value-added 
products especially in the less develop ed member states of CARICOM;  and 
(e) To encourage the role of the private sector in determining the conduct of the trade. 
 
In relation to the conditions applied- by CARIC OM, Member States of CARICOM shall apply the 
rate of duty set by the Council for Trade and Econo mic Development (COTED) on all imported oils 
and fats and their substitutes . 
 
In the event of insufficient su pply, the Secretary-General when acting on behalf of COTED may 
grant a suspension of the Common External Tariff in accordance with Article 72 of the Treaty.  In 
determining the adequacy of supply, the Secretary General shall take into consideration the allocation and provisions under the Schedule.  
The Secretary-General may issue a certificat e under the Safeguard Mechanism of the Rules of 
Origin in accordance with Article 73 of the Treaty, in  the event of insufficient supply of inputs used 
in the manufacture of oils and fats products.  Member States may use automatic licences to monitor imports of oils and fats especially where other 
methods prove inadequate. 
  WT/TPR/M/139/Add.1
 Page 29 
  7.8 What percentage of internal consumption of oils and fats is met by national production? 
 
Response
 
 The percentage of internal consumption of oils and fats met by national production are 85% and 60% respectively.  
7.9 What types of oils does this measure cover and what are the tariffs spread? 
 
Chapter 15: Animal or vegetable fats and oils and their cleavage products; prepared edible fats; 
animal or vegetable waxes.  34.01 Soap, organic surface active products and preparations for use as soap in the  form of bars 
cakes, moulded pieces or shapes whether or not containing soap paper, wadding felt and non-wovens, impregnated; coated or covered with soap or detergent.  
 
34.02 Organic surface active agents (other than soap);  surface active preparations, washing 
preparations (including ancillary washing preparati ons) and cleaning preparations whether or not 
containing soap, other than those of heading 34.01. 
 
Ex 34.06 Candles 
 7.10 Paragraph 23:  Is Jamaica developing programmes for restructuring the sectors, that have 
preferential access to some export markets and which are to be affected by a reduction in preferential 
margins as foreseen in the ongoing multilateral nego tiations?  What are the internal incentives, or with 
which multilateral organisational support, is Jamaica developing this? 
 
Response
 
 
The outcomes of multilateral negot iations and their effect on preferential margins are not yet clear.  
Nevertheless the Government of Jamaica along with bilateral partners and some multilateral agencies are engaged in efforts to strengthen various industries a number of which are the 
beneficiaries of important and longstanding preferences. 
 
Jamaica has been focusing for some time now on  restructuring the banana industry in anticipation 
of further changes in the external banana market   
Several acres of land have been taken out of banana production as more focus has been placed on the 
more suitable lands that will produce a better yield. 
 
A number of small farmers have withdrawn from t he banana export business as it was difficult for 
them to maintain the required standards and efficiencies as required by primary markets.  
Although banana production has decreased, the quality of export bananas has improved due to 
reforms and improved agricultural practices. 
 The administrative arrangements for the industr y have been reorganized and have resulted in the 
creation of some efficiency, also emphasis has been placed on Certification and Traceability in order 
to comply with EU market requirements. 
 WT/TPR/M/139/Add.1 
Page 30   
Work has been ongoing in the area of research and di sease control, particularly of black Sigatoka. 
 Several farmers, who have exited the export busi ness have been focusing on a lucrative domestic 
market for both bananas and plantains and Government has been assisting with these areas as well. 
 The Banana Support Programme funded by the EU concentrated initially on:  
• increased productivity and fruit quality 
• export banana certification 
• technology transfer, training programme for estate workers  in business management and 
marketing 
• value added production 
• diversification of products and market for farmers unable to meet export criteria 
 This programme is to be expanded in the next few years.  The sugar industry is also preparing to cope with t he anticipated reduction in the price paid for ACP 
sugar.  
The industry is looking at product diversification bot h within and outside of the sugar cane industry.  
We believe that the necessary shift in the development of  the industry at this time should be in the 
direction of products to be made from sugar cane in addition to raw sugar and that this should include the production of ethanol and refined sugar for the domestic market.  A basic concern 
however is to reduce significantly the current unsus tainable level of producing raw sugar.  This 
adjustment process in the industry needs to be implemented over a period of time and will require 
financial and technical assistance.  
7.11 Paragraph 26:  It appears that the monopoly in  the transmission and distribution of energy limits 
the expansion of other sectors:  What is Jamaica doing to introduce more competition in this sector and so 
generate more competitiveness in its internal production?  Response
 
 
The government is cognizant of the fact that the monopoly in the electricity distribution market may 
restrict the expansion of other sectors since growth is highly dependent on the existence of a relatively cheap and reliable supply of energy.  At this moment, there is no move towards ending the 
utility company’s 20-year monopoly in the electrici ty distribution market.  However, to generate 
more competition the government is in the process of re vising the Electricity Lighting Act, which will 
provide viable opportunities and easy access for privat e sector companies who wish to get involved in 
the electricity generation market.  Also, with the revision of the Energy Policy of 1995, the generation of electricity from new and renewable s ources of energy (NRSE) will be encouraged.  The 
policy will state that by 2012 at least 15 % of electricity generated must come from NRSE. 
 7.12 Paragraph 28:  The financial costs for the productive sector appeared to be very high and in turn has caused mergers in the banking sect or:  What is Jamaica doing to ensure lower interest rates for the 
productive sector that would allow the sector to compete internationally?  WT/TPR/M/139/Add.1
 Page 31 
  
Response
 
 
For commercial and merchant banks, loan rates reflect the combined impact of their cost of funds 
and the extent of the mark up on these funds (spreads).  In respect of the cost of funds, the nominal yield on the 180-treasury bill instrument, a benchmark for rates in the money market, has declined progressively in recent times, from 33.4 per cent in March 2003, to 14.94 per cent in December 2004.  The Government expects that  rates will continue 
to fall for the remainder of the fiscal year.  Consequent  on the attainment of a surplus fiscal position 
in FY2005/06, it is also expected that the superfluity of funds on the domestic market will occasion further reductions in rates.  This is expected to be supported by the progressive lowering of inflationary expectations.  Reductions in commercial bank spreads will largely depend on competition in the financial sector  7.13 Paragraph 16:  It is stated t hat the new trade policy of Jamaica focuses on exports and imports, as 
well as investments, which differs from the previous po licy that had focused on market access issues and 
on preserving the benefits from preferential trading ar rangements:  Does Jamaica consider this change in 
trade policy as being compatible with its position taken in  multilateral negotiations in the WTO calling for 
measures to maintain the level of trade preference s and, thereby limiting its own action on the more 
offensive matters such as the elimination of restrictio ns and distortions in the world market, issues which 
would be more compatible with the new policy of export and import? 
 
Response
 
 
Jamaica does not pursue policies at the national leve l that are inconsistent with those pursued at the 
multilateral level.  It considers the continuati on of trade preferences on certain products to be 
compatible with the pursuit of broader market access opportunities.  
7.14 Para 18.  The Secretariat commented in the Repo rt that the New Trade Policy of the Government 
of Jamaica “…seeks to achieve import replacement with out actually adopting import substitution policies 
per se, but by taking account of the multilateral framework and globalized environment, and adopting 
measures to improve the productivity and competitiveness of Jamaican products and foster awareness of 
the availability of local products.  It is signaled that  to achieve this objective, a guideline is given to 
‘facilitate access to cheaper imports” and at the sa me time “…slow the pace of tariff and non-tariff 
reduction.”  What has been the result of the new focus of the trade policy?  How do you resolve the 
objective of obtaining cheaper imports and at the same ti me, diminishing the level of reduction of tariffs 
and non-tariff barriers?  Response
 
 
This response will be provided at a later date. 
 
7.15 Paragraph 18:  What incentives for FDI being  used by Jamaica are consistent with the TRIMs 
Agreement? 
 Response
 
 No incentive used by Jamaica is in consistent with the TRIMs Agreement 
 WT/TPR/M/139/Add.1 
Page 32   7.16 Paragraph 19:  It is stated that the New Trade Policy of the Government, adopted in 2001, recognises the need to prepare for the ending of prefer ential arrangements and to preserve preferences only 
as long as is necessary for adjustments to take pl ace, such as to the end of preferences with the 
European Union (EU) in 2008.  How has Jamaica prepared, and what has been the successes achieved in the agricultural sector and more part icularly in the banana and sugar sectors, that allows them to adjust to 
more liberalization of the markets?  If the preferences in the EU are eliminated in 2008:  why does Jamaica insist on maintaining the level of preferences in the multilateral negotiations?  
Response
 
 Jamaica recognises that the traditional preferences to which we are now accustomed are being constantly eroded.  Like other countries of the ACP Group which enjoy special preferential arrangements for access to the market of European Unio n (EU) for products of significant interest to 
our economies, the ongoing reforms will have a tremendous effect on our country’s development. The reforms have been a result of internal measures deemed necessary as well as because of external international commitments such as those undert aken in the WTO.  Countries benefiting from 
preferences need time to adjust and should not be subject to make drastic changes in a minimum time frame.  Jamaica is concerned that the time periods being discussed are not nearly enough to 
ensure that people and industries, particularly the most vulnerable, are protected and given the 
requisite time and well needed assistance both financially and otherwise to make adjustments. 
 
Sugar remains Jamaica’s most important agricult ural industry contributing nearly 50% of income 
earned from agricultural exports.  Sugar, with its by-products, rum and molasses accounted for 
approximately 3.2% of the manufacturing component of Jamaica’s GDP.  Overall in 2001, sugar 
contributed 1.1% of the GDP.  In the six (6) ye ar period, 1996-2001, the value of sugar exports 
averaged US$92.4m or 7.1% of total merchandise exports. 
 
Presently, sugar cane is cultivated in at least 7 of Jamaica’s 14 parishes and sugar is manufactured in 8 factories island-wide.  This makes sugar production Jamaica’s largest agri-business.  Sugar 
cultivation and production are major employers of labour.  The industry employs approximately 
41,000 persons directly representing 4.4% of total employment and 3.7% of the labour force.  It is estimated that nearly 200,000 persons out of a po pulation of 2.6m benefit substantially from the 
industry. 
 
The industry has great potential for further development as a viable commercial enterprise, which 
can further contribute to and promote rural development.  As a result, the Government of Jamaica is supporting the restructuring and revitalization of the industry to make it a viable and competitive 
industry of the 21
st century.  The Government has invested in the industry to the sum of US$114 
million in a restructuring and revitalization progra mme which involves replanting of fields, retooling 
of factories and modernization of field operations.  It is of vital importance that nothing be done to 
undermine the market access and price arrangements for sugar exports in this critical phase.  Increased poverty would further aggravate the already problematic rural to urban drift, putting 
increasing pressure on the major urban centres in Jamaica, Kingston, Mandeville and Montego Bay.  
The result would be increased pressure on already over extended social services and would require 
the allocation of an increasing share of shrinkin g national resources for poverty alleviation both in 
rural and urban areas.  Jamaica wishes to alleviat e poverty through productive activities which 
generate economic growth, employment and export earnings.  A restructured and revitalized sugar 
industry has the potential to provide this kind of  poverty alleviation.  It is the Government’s  WT/TPR/M/139/Add.1
 Page 33 
  
confidence in the economic and commercial prospects for the sugar industry that has influenced its 
decision to invest substantially in its revitalization.  Liberalization by itself does not lead to economic grow th and development.  Small countries, such as 
Jamaica, in an increasingly challenging global  environment, continue to require special and 
differential treatment of which preferential tradi ng arrangements are a part.  Jamaica believes that 
for the negotiations on agriculture, the impact of decisions taken on the economy of a country such as Jamaica has to be taken into account.  The economic and social costs to the people and the country have to be weighed carefully and appropriate action taken to address them.  
 
7.17 What proposals are Jamaica likely to put forward in the NAMA negotiations, within the strategy of 
structural reform and the level of reductions in ta riff and non-tariff barriers as needed for stimulating the 
growth of internal capital and to adjust the world trade terms?  How would one guarantee the strategic 
objective of the Doha Agenda to improve the substantial access for major export products from developing 
countries? 
 
Response
 
 These proposals are under consideration and will be tabled in the Negotiating Group on Market 
Access in due course.  Jamaica however already experiences a high level of import penetration, and 
is concerned that the NAMA negotiations should not lead to further drastic reductions in its tariffs. 
 
7.18 What are the reasons that have prevented advantage being taken in full of the Caribbean Basin Initiative (CBI) put in place in 1984 by the United States by virtue of the Caribbean Basin Economic 
Recovery Act (CBERA) with the objective of allowing duty free access to products from the Caribbean 
region and Central America, especially fr om the textiles and confectionary sectors? 
 
Response
 
 
Jamaica has benefited in several areas from the CBI but would hold that no country in the region 
has managed to take full advantage of potential benefits.  Competitive pressure from within the hemisphere and outside the hemisphere along with weak supply capabilities are among the factors 
that have affected export performance under the CBI. 
 7.19 The Secretariat’s document informs that at the beginning of 2004 the types of non-tariff measures (NTMs) applied exceeded the level of  bound rate commitments in the case of some non-agricultural 
products whose levels had been bound prior to the Uruguay Round.  What are the reasons for increasing 
the tariff above the bound rate level?  When does Jamaica foresee reducing such tariffs?  Which products 
are presented in this situation? 
 Response
 
 See response to 7.5 above. 
 
7.20 What are the economic-trade objectives being pursued with the percentage applied to imports by 
concept of “other duties and charges” bound in the 15% range for the majority of industrial goods and 80% in the case of aluminium extrusions (solid shapes), corrugated aluminium sheets, and aluminium extrusions 
(hollow shapes, and slugs for tooth paste)? WT/TPR/M/139/Add.1 
Page 34   
Response
 
 Other duties and charges are levied consistent with  WTO provisions.  These are representative of the 
balancing of concessions arising from the Urug uay Round Negotiations.  These other duties and 
charges are incorporated in Jamaica’s schedule.  They reflect the economic trade objectives that are normally associated with border charges including revenue and the facilitation of domestic competitiveness amongst other objectives. 
 
7.21 The Secretariat informs that since its previous re view of 1998, parallel to its efforts to liberalize 
regional trade, Jamaica has continued to use trade po licies and incentive programmes to promote specific 
sectors, in general targeting those established in t he National Industrial Policy for 1996-2010 and the New 
Trade Policy adopted in 2001 (Chapter II).  It se ems that these programmes have not had the results 
expected and on the contrary have derived a complex system of exemptions which have affected the country’s fiscal situation.  Are t he Jamaican authorities considering reforming the scheme in light of the 
suggestions made in the Report of the Secretariat? 
 
Response
 
 Jamaica does not share the bleak view of incentives  as set out in the Secretariat’s Report or as 
implied in Colombia’s question.  However, the syst em of tax exemptions is being looked at in the 
context of the tax review now underway. 
 7.22 We would be grateful to be provided with more information on the results and experience derived 
from the application of mutual recognition Agreements  entered into with the American National Standards 
Institute (ANSI), the American Society for Tests an d Measures (ASTM), and the National Institute of 
Standardization and Technology (NIST) of the US Depar tment of Commerce?  Has progress been made in 
the harmonization of technical procedures, sanitary an d phytosanitary at the regional level, within the 
Agreement for the establishment of a free trade area between the Caribbean Community and the Dominican Republic? 
 Response
 
 
To be examined and a response submitted at a later date.  
7.23 What are the incentives and concessions in terms of duty for imports and taxes, for those that 
benefit from investing in Jamaica?  Response
 
 
Incentives for investments vary depending on the sector. e.g. for tourism building materials are 
entered duty free for 10-15 years depending on the size of the hotel.  They also receive 10 years Income tax holiday.  For mining duty free entry is provided for capital equipment for use in the 
sector . 
 
7.24 What were the reasons for increasing the applied tariffs on vegetables and horticulture from 40% to 
100%?  WT/TPR/M/139/Add.1
 Page 35 
  
Response
 
 
The increase was in relation to 11 tariff lines, including vegetables and poultry.  This increase in 
tariff was design to prevent social dislocatio n in rural farming communities that were being 
threatened by imports.  There was no incre ase in tariff for horticultural products. 
 
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