WORLD TRADE  
ORGANIZATION  G/STR/N/12/JAM 
20 April 2010 
 (10-2025) 
Working Party on  
State Trading Enterprises Original:   English 
 
 
 
STATE TRADING 
 
New and Full Notification Pursuant to  Article XVII:4(a) of the GATT 1994  
and Paragraph 1 of the Understanding on the  
Interpretation of Article XVII  
 
JAMAICA 
  
 The following communication, dated 1 February 20 10, is being circulated at the request of the 
Delegation of Jamaica.  
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COMPLETED WTO QUESTIONNAIRE ON STATE TRADING 
SUBMITTED BY THE MINISTRY OF INDUSTRY, INVESTMENT  
AND COMMERCE ON THE JAMAICA COMMODITY TRADING COMPANY 
  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. I
DENTIFICATION OF STATE TRADING ENTERPRISES  
 Jamaica Commodity Trading Company Ltd. (JCTC).   
 B. D
ESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER (S) ENCOMPASSED 
IN PRODUCT DESCRIPTION ) 
 Importation of fertilizer (HS Code 3105.90.00).   
 
II. REASON AND PURPOSE 
A. REASON OR PURPOSE FOR ESTABLISHING AND /OR MAINTAINING STATE TRADING 
ENTERPRISE  
 The mandate/objective of the JCTC is to act on behalf of the Government of Jamaica as a 
commercial importer and/or exporter of sens itive commodities where there are exceptional 
circumstances which require direct Government intervention.   G/STR/N/12/JAM 
Page 2  
 
  B. S
UMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL RIGHTS 
OR PRIVILEGES , INCLUDING LEGAL PROVISIONS AND SUMMARY OF STATUTORY OR 
CONSTITUTIONAL POWERS  
 There are no statutory provisions conferring special or exclusive rights on the JCTC.  
Commodities traded by the JCTC can be imported/exported by any commercial trader.    III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING 
ENTERPRISE 
 
A. S
UMMARY STATEMENT PROVIDING OVERVIEW F OPERATIONS OF THE STATE TRADING 
ENTERPRISE  
 The JCTC is wholly owned government company.  A decision was made in 1999 to 
deactivate the JCTC and no further trading was undertaken by the company up to 2008.  Following the global recession in 2007/2008 a policy decision w as taken by the Government early 2008 to 
reactivate the JCTC to act in exceptional circ umstances where there was need for government 
intervention to ensure stability in the supp ly and pricing of sensitive commodities.   
 B. S
PECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE STATE 
TRADING ENTERPRISE . 
 No exclusive or special rights are currently en joyed by the JCTC.  However, the resale price 
of the product may be subsidized by the Government of Jamaica depending on the policy objectives 
established by the Government.   
 C. T
YPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE ALLOWED TO 
ENGAGE IN IMPORTATION /EXPORTATION AND CONDITIONS FOR PARTICIPATION  
 Any commercial entity in Ja maica may trade in the commodities handled by the JCTC.   
 
D. HOW IMPORT /EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE  
 Based on an analysis of demand, pricing and supply levels, prevailing market prices and a 
cost benefit assessment, policy recommendations are made to the Government of Jamaica on trading 
volumes.  The import/export levels are approved by th e portfolio Ministry and not the JCTC itself.   
 
E. HOW EXPORT PRICES ARE DETERMINED  
 JCTC is not currently engaged in export activity.   
 
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED  
 Resale prices are determined based on the cost  of importation combined with socio-economic 
considerations.  Because the JCTC intervenes to  address exceptional circumstances, decisions on 
resale pricing levels are taken by the portfolio Ministry.    G/STR/N/12/JAM 
 Page 3 
 
 
  G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING ENTERPRISE .  
WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFILL CONTRACTUAL 
OBLIGATIONS ENTERED  INTO BY THE GOVERNMENT  
 No long term contracts are currently in place but  it is possible that the JCTC can enter into 
long term contracts which are deemed beneficial.  The JCTC is not routinely used by the Government 
of Jamaica to fulfill its contractual obligations.   
 H. B
RIEF DESCRIPTION OF MARKET STRUCTURE  
 The market structure in Jamaica is typical of a highly liberalised market.  In addition to the 
producers (where these exist) there are importers in almost all sectors of the economy.  Importers may 
distribute to wholesalers or they may offer whol esale services directly.  Retailers will usually 
purchase from the wholesaler/distributor.  A fairly  recent phenomenon of the market is the increasing 
instances of retailers also offering wholesale services.    
IV. STATISTICAL INFORMATION (SEE ATTACHED TABLE I) 
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE) 
 Not applicable.   
 
VI. ADDITIONAL INFORMATION (AS APPROPRIATE) 
 
  
  G/STR/N/12/JAM 
Page 4 TABLE 1 
 
STATE TRADING:  JAMAICA COMMODITY TRADING COMPANY (JCTC) 
STATISTICAL INFORMATION, IMPORTS 
 
2006 
 
Description of 
products(s) 
(including HS 
number(s)) Total quantity 
imported Quantity 
imported by 
state trading 
enterprise Average 
import price Average 
representative 
domestic sales price Mark-up National 
production 
1 2 3 4 5 6 7 
NO IMPORTS BY JCTC FOR 2006 
 
2007 
 
Description of 
products(s) 
(including HS 
number(s)) Total quantity 
imported Quantity 
imported by 
state trading 
enterprise Average 
import price Average 
representative 
domestic sales price Mark-up National 
production 
1 2 3 4 5 6 7 
NO IMPORTS BY JCTC FOR 2007 
 
2008 
 
Description of 
products(s) 
(including HS 
number(s)) Total quantity 
imported Quantity 
imported by 
state trading 
enterprise Average 
import price Average 
representative 
domestic sales price Mark-up National 
production 
1 2 3 4 5 6 7 
Fertilizer 3105 Not yet 
available 2,268 metric 
tonnes Not available1 None 27,395 metric 
tonnes 
 
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1 Non standardized products – pricing data not available.