RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/139 
15 December 2004 
 
 (04-5495) 
Trade Policy Review Body Original: English 
 
 
 
 
 
 
 
TRADE POLICY REVIEW 
 
Report by 
 
JAMAICA 
 
   
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreemen t Establishing the World Trade 
Organization), the policy statement by Jamaica is attached. 
 
 
Note: This report is subject to restricted circul ation and press embargo until the end of the meeting 
 of the Trade Policy Review Body on Jamaica. Jamaica WT/TPR/G/139 
 Page 3 
 
 
CONTENTS 
 
  Page 
I. INTRODUCTION 5 
II. MACRO-ECONOMIC ENVIRONM ENT AND TRADE PERFORMANCE 5 
(i) Macro-economic performance 5 
(ii) Trade and Sectoral Performance 7 
III. TRADE POLICY AND INSTITUTIONAL FRAMEWORK 9 
(i) Elements of Jamaica’s Trade Policy 9 
(ii) Institutional Framework 10 
IV. REGIONAL INTEGRATION – THE ESTABLISHMENT OF THE CARICOM SINGLE 
MARKET AND ECONOMY (CSME) 10 
V. BILATERAL/HEMISPHERIC AND PREFERENTIAL TRADE ARRANGEMENTS 11 
 (i) CARICOM  Bilateral Agreements 11 
 ( i i )  C o t o n o u / E P A          1 1  
 (iii) Free Trade Area of the Americas (FTAA)      12 
 ( i v )  C A R I B C A N          1 2   (v) The Caribbean Basin Initiative (CBI)      12 
VI. MULTILATERAL FRAMEWORK – THE WTO AND THE URUGUAY ROUND  
AGREEMENTS  12 
(i) Implementation of the Uruguay Round Agreements 12 
(ii) Jamaica’s Position on the Current Round of Multilateral Trade Negotiations 14 
(iii) Technical Assistance 15 
VII. CONCLUSION  16 
  
 
 Jamaica WT/TPR/G/139 
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I. INTRODUCTION 
1. The Jamaican economy has been showing signs of recovery arising from the introduction of 
macro-economic reforms and the promotion of  sound fiscal and monetary management. 
2. The consolidation of the reforms throughout th e economy continues to be pursued within a 
broad-based framework for economic policy compleme nted by sector-specific structural initiatives.  
Significant progress has been made in managing the process of adjustment to the new world economic 
environment through, inter alia,  greater openness to trade;  financial and investment flows;  market 
liberalization;  privatization and divestment of cr itical productive and infrastructural sectors;  the 
development of human and institutional capacity;  fi nancial sector consolida tion;  and structural 
reform measures to improve efficiency and competitiveness. 
3. A new trade policy was implemented in 2001,  inter alia , to promote sustainable export-led 
growth and development through an expansion of the export sector, enhanced productivity and 
reversing the trade deficit by expanding exports over imports in the medium- to long- term. 
II. MACRO-ECONOMIC ENVIRONMENT AND TRADE PERFORMANCE 
(i) Macro-economic performance 
4. The National Industrial Policy (N IP) implemented in 1996, continues to provide the broad 
framework for macro-economic and social policy formulation.  This framework promotes the 
maintenance of macro-economic stability;  the implem entation of sector-specific measures to facilitate 
economic adjustment;  infrastructural development;  enhanced international competitiveness and the 
development of human capital through education and training. 
5. The efforts to achieve macro-economic reform have started to bear fruit as evidenced by the 
moderate but consistent growth in real GDP over the period 1999 – 2003.  During this period, the 
average real GDP growth  was 1.3%. 
6. The government regards low inflation as a principal component of its long-term growth 
strategy.  In this regard, the government has taken strong measures in recent years to control the rate 
of inflation in the economy through tight monetary po licy.  Inflation remained in single digits for the 
period 1999-2002.  Inflation however increased significantly in 2003 to 14.1%, due mainly to depreciation of the exchange rate in May 2003, incr eases in international oil prices throughout the 
year, changes to the indirect tax structure and adjustment of user charges for key utilities.  Despite 
continued volatility in oil prices, the monthly in flation rate has trende d downwards since the 
beginning of 2004 such that in August the annual point-to-point measure of inflation was 11.5%. 
7. While there was a notable deterioration in Jamaica’s current account between 1999 and 
2002, the external accounts have shown marked improvement in 2003.  The current account deficit 
grew significantly from US$216.3 million in 1999 (or approximately 2.8% of GDP) to 
US$1074.4 million in 2002 (or 13.9 % of GDP).  A major cause of the deterioration was increases in 
the trade deficit (goods) from 15.4% of GDP in 1999 to 24.2% of GDP in 2002.  The services balance 
has remained positive over the period while net curr ent transfers have grown significantly over the 
period.  For 2003 however, the current account deficit fell to US$761.4 million (or 9.9% of GDP).  
This substantial improvement came on the back of a US$250.0 million improvement in net inflows 
from services, particularly travel, supported by st rong growth in net private remittance inflows. 
8. Jamaica established an Interbank system  of trading in 1991 and abolished all foreign 
exchange  controls with the repeal in 1992 of the Exchange Control Act.  Since then, the exchange WT/TPR/G/139 Trade Policy Review 
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rate has been determined by market conditions and Jamaica has not set any trading bands or targets.  
Several developments, including negative ratings by in ternational rating agencies, the terrorist attack 
on the USA in 2001 and general macroeconomic dise quilibria saw the exchange rate falling from 
J$36.69 to US$1 in 1998 to J$60.62 to US$1 at the end of 2003.  Since then, relative calm has returned to the foreign exchange market.  Jama ica is committed to the use of targeted macro-
economic policies in order to maintain relativ e stability in the foreign exchange market. 
9. In the wake of the liberalization of the forei gn exchange regime, the high levels of inflation 
and heightened inflationary expectations, interest rates  rose appreciably in the early 1990s.  Since the 
mid 1990s, the Central Bank has been successful in  reducing inflation through aggressive monetary 
policy, which has underpinned a gradual reduction in inte rest rates.  Market dete rmined interest rates, 
as captured by the nominal six-month treasury bill rate, fell from a high of 41.1% in FY 1992/93 to 
16.1% in FY 2001/02.  This was led by the declin e in the Central Bank’s reverse repurchase rate 
structure throughout most of the latter half of the 1990s.  In the face of increasing investor concerns 
regarding the fiscal accounts, instability in the fore ign exchange market and heightened inflationary 
expectations, interest rates were derailed from their downward path and rose sharply in 2003.  Since 
then much of the focus has been placed on returnin g rates to more sustainable levels.  The Central 
Bank reduced interest rates ten times between Ma rch 2003 and August 2004.  Concurrently, the six-
month treasury bill rate fell from 22.0% in December 2003 to around 15.0% in September 2004. 
10. Jamaica registered a fiscal deficit  of J$27,297.8 million for FY 2003/04 compared with 
J$30,570.6 million for FY 2002/03.  Since the financial year (FY) 1998/1999, Jamaica has posted a 
fiscal deficit for each financial year with the exception of FY 2000/2001, which realised a fiscal surplus of J$4.2 billion or 1.3% of GDP.  The fisc al deficits registered for the financial years 
1997/1998 to 1999/2000 were largely attributable to the rehabilitation of the financial sector and to 
the higher interest payments associated with the fi scal costs of supporting Jamaica’s monetary policy 
to achieve its inflation rate objective.  The fi scal balance deteriorated for FY 2002/2003 due to 
(i) government expenditure to offset the effects of islandwide flooding in 2002;  (ii) larger than 
budgeted recurrent expenditure in relation to the public  sector wage bill;  (iii) increased debt servicing 
which accounted for the largest component of ov erall expenditure and (iv) fallout in revenue 
occasioned by the significant drop in international travel following the September 11 attacks on the 
United States.  The budget for the fiscal year FY 2003/2004 was formulated with a view to targeting a 
fiscal deficit of 5.0%-6.0% of GDP to be achieved  by increased revenue collection and more efficient 
utilization of resources.  This target was met with the actual deficit amounting to 5.6% of GDP.  There 
was an increase in tax revenues from the new tax measures imposed during FY 2003/2004, which 
widened the tax base and increased the tax on some items. 
11. The FY 2004/2005 budget is consistent with  Jamaica’s overall macro-economic programme 
which has as its core targets the maintenance of single digit inflation, continued foreign exchange 
market stability, the containment of the growth of pu blic debt, the lowering of interest rates and the 
promotion of economic growth.  The government in tends to pursue economic policies which will 
result in a fiscal deficit of 3.0%-4.0% of GDP in FY 2004/2005 followed by a balanced budget in 
FY 2005/2006 and surpluses thereafter.  This will require addressing the public sector wage bill, 
prudent debt management and continuation of the public sector modernisation programme.  Other 
targets for the fiscal year 2004/2005 include real GDP growth of 2.0%-3.0% and containing inflation 
between 8.0%-9.0%. 
12. Measures to achieve these objectives were firs t presented to Parliament in February 2004 and 
details were further outlined during the budget pr esentation in April 2004.  These measures include 
(i) controlling expenditure (wages, interest paymen ts, prudent debt management and prioritization of 
capital projects) and (ii) maximizing revenue. Jamaica WT/TPR/G/139 
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(ii) Trade and Sectoral Performance 
13. Jamaica is a net goods importing country with annual imports and exports equivalent to 46% 
and 17.5% of GDP respectively. 
14. Throughout the period, Jamaica’s merchandise trade deficit grew at an average rate of 4.8%, 
and peaked at US$1,855m in 2002.  This persistent increase in the trade deficit was mainly attributed 
to a general decline in the value of merchandise exports, particularly in non-traditional exports 
because of a major downturn in the apparel sector.  Exports in this sector fell by 91% from US$200m 
in 1998 to just under US$19m in 2003.  The main factor responsible for the widening trade deficit, 
however, was increased raw materials imports, due to  a burgeoning fuel import bill which grew by an 
average of 18.2%. 
15. The contribution of the manufacturing  sector as a percentage of GDP remained relatively 
constant over the period ranging from 14.7% in 1998 to 14.2% in 2001.  In 2003 the percentages fell 
marginally, with the share of the manufact uring sector representing 13.5% of GDP. 
16. Total merchandise exports declined over the period from US$475.6 million in 1998 to 
US$357 million in 2001.  In 2000, manufacturing exports recovered slightly by 4.7% over the 
previous year but declined by 15% in 2001.  For the period January to August 2003, total 
manufactured exports increased by 0.8% compared with the corresponding period last year. 
17. The policy of the Government of Jamaica toward the manufacturing sector continues to be to 
facilitate improved international co mpetitiveness and to enha nce productivity and output.  To this end, 
a range of support programmes has been implemented by the government, in conjunction with local institutions and international development agencies, aimed at industrial upgrading, re-tooling and 
enhancing productivity.  Some of these pr ogrammes include financing facilities through, inter alia , 
the Development Bank of Jamaica and the Export-Import (EXIM) Bank and the provision of 
assistance to small and micro enterprises (SMEs) to facilitate entrepreneurial development and to 
generate and sustain employment. 
18. A number of projects aimed at e nhancing private sector development are currently in place.  
These include the Cluster Compe titiveness Project, which is aimed at increasing the international 
competitiveness of selected Jamaican enterprises.  The project currently involves approximately 60 
small and medium-sized firms in three (3) Jamaican business clusters, namely, agro-business, tourism, 
entertainment and culture with a view to iden tifying potential customers, building local and 
international partnerships, and facilitating market pe netration.  Similar projects include the Private 
Sector Development Project (PSDP), to be  implemented later this year and the  New Economy Project 
that recently came to a close in July 2004.  JAMPRO, an agency of the Ministry of Development in  
the Office of the Prime Minister is in the process of completing  a national export strategy, which is 
intended to complement the overall trade policy ob jectives by advancing programmes for improved 
export performance and market penetration.  Amo ng the goals of the national export strategy is the 
targeted increase in exports by 9% per annum  through, inter alia , developing the capacity and 
competitiveness of export -oriented businesses. 
19. During the period 1998-2003, total a gricultural production showed an overall decline - as 
indicated by the Planning Institute of Jamaica’s Ag ricultural Index, initiated by a 5.4% reduction in 
output in 1998, which contributed to an average de cline of 1.14% throughout.  The main factors that 
contributed to this decline were extreme weather conditions – drought and flooding and reduction of planting activities by farmers to av oid losses.  Agricultural producti on returned to positive growth in WT/TPR/G/139 Trade Policy Review 
Page 8 
 
 
2003, increasing by 9.7%, due mainly to government projects that were implemented over the period 
to assist farmers to overcome the effects of the drought and flooding. 
20. Government policies in the agricultural sector are driven by a concentration of measures 
aimed at improving productivity, efficiency and product quality.  Specifically, these measures are 
aimed at, among others, rehabilitation of critical  infrastructure, the provision of concessionary 
financing through public developmen t banks;  training and technology application;  rehabilitation and 
increased efficiency in the traditional sector;  incr easing value-added production and ensuring rural 
development and food security. 
21. The services sector  continues to reflect the highest annual contribution to GDP in Jamaica.  
In 2003, services accounted for 71.9 % of GDP as compared with 69.9 % in 1998 at constant prices. Much of this growth can be attributed to tourism, expansion of the telecommunications sub-sector and 
the improved performance of financial services , transportation and the distributive trade. 
22. Tourism  remains the most dominant area of servi ces growth and development in Jamaica.  
Despite its vulnerability to external  shocks, the sub-sector has manage d to retain its position as the 
single-largest contributor of foreign exchange earnings in Jamaica.  In 2003, foreign exchange inflows from the travel sector amounted to US$1325.0 million compared to US$1209.0 million in 2002. 
23. There continues to be significant  investment in the sector with the addition of greater room 
capacity as well as the development of new produc ts and attractions.  The Government has also 
implemented a Master Plan for Sustainable Tourism, which will guide the sustainable growth and 
development of the industry in the years ahead. 
24. The telecommunications sector has experienced tremendous transformation, particularly 
over the last two years, largely driven by the dismantling of the former monopoly arrangement with 
Cable and Wireless Jamaica Limited and the entry of new players into the market. 
25. Full liberalisation of the telecommunications se ctor was completed in March 2003, nearly 10 
years ahead of the target date of 2013 as outlined in Jamaica’s schedule of specific commitments 
under the GATS. 
26. In keeping with the thrust towards liberalis ation, 125 new licenses for telecommunications 
services were issued in 2003, covering domestic an d international service prov iders, internet service 
providers and data service providers among others.  This has contributed to a total of 350 licenses 
being issued since the start of the liberalisation process in 2000. 
27. Jamaica has achieved its universal service objectiv es in terms of voice telephony.  There are 
now 1.6 million cellular users and 500,000 landlines, reflecting a total of 2.1 million active voice lines 
within a national population of approximately 2.6 million persons. 
28. The financial services  sector has benefited from a renewed thrust on the part of government 
and other stakeholders, to strengthen the policy an d regulatory framework, particularly following the 
financial crisis of the mid to late 1990s.  Develo pments in the regulatory framework have resulted in 
the creation of new institutions, such as the Jama ica Deposit Insurance Corporation (JDIC) and the 
Financial Services Commission (FSC). 
29. The real GDP of the financial services sub-sector grew by approximately 4.9 % in 2003 as 
compared with the 6.1% rate of growth in 2002.  Mu ch of this growth could be attributed to greater 
lending by deposit-taking institutions, increased earnings as well as investments in fixed income 
securities.  Moreover, there were further gains to the financial serv ices environment, arising from Jamaica WT/TPR/G/139 
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significant growth in the stock market, cost-cuttin g and consolidation in the insurance sector and 
increased activity in the area of fund management.  Over the short to medium term the government 
will seek to maintain exchange rate stability while pursuing macro economic policies that will serve to 
strengthen the operations of the financial services and other sectors. 
30. Expanded growth in the transport sector could largely be attributed to increased passenger 
movement via land, air and sea as well as a marked improvement in cargo transportation.  The 
government will be seeking to build on this grow th through renewed emphasis on infrastructural 
development and enhanced performance across all areas of the transportation sub-sector as part of its 
national development strategy. 
31. In keeping with this strategy, work is ongoing  with regard to the construction of Highway 
2000, a state-of-the-art road network, of whic h one major segment has already been completed. 
Additional segments are scheduled for completi on between October 2004 an d October 2005.  The 
Highway will enable swift interconnection with th e major tourism and commercial centres in Jamaica 
as well as the development of diverse economic activ ities (shopping, entertainment, cultural facilities) 
along the route.  Significantly, the Highway will yi eld additional revenue through the establishment of 
toll facilities at designated points. 
32. The government of Jamaica has made significant investment in upgrading facilities at the 
island’s ports and airports in order to expand capacity for the transshipment of cargo and to 
accommodate increased cruise ship arrivals and airport throughput. 
33. With the dramatic increase in the cost of energy  inputs at the national level, the Government 
has embarked on a review of the energy policy an d strategy which was approved by Parliament in 
1995.  As part of this process, emphasis in th e current financial year will be placed on energy 
diversification and the developmen t of policy mechanisms to increase indigenous renewable energy 
supply, such as wind, biomass and photovoltaic energy. 
III. TRADE POLICY AND INSTITUTIONAL FRAMEWORK 
(i) Elements of Jamaica’s Trade Policy 
34. Jamaica adopted a new trade policy in Septembe r 2001, which sets as its main objectives 
diversification of exports, facilitation of market pene tration, displacement of imports and increasing 
returns from overseas assets. 
35. The GOJ has, in the context of the new trade po licy, strongly supported public/private sector 
initiatives to foster competitiveness and improve tr ade performance.  It has led trade missions to a 
number of trading partners and is in the process of establishing trade councils in Jamaican 
communities overseas, recognizing the significant potential for enhancing trade opportunities in the 
Jamaican diaspora and the wider communities in which Jamaicans are located. 
36. Jamaica is actively engaged in the negotiation of multilateral, regional and bilateral trade 
agreements as a means of securing its trade intere sts and enhancing trade performance.  In these 
agreements it seeks to remove ta riff and non-tariff barriers on products of interest to Jamaica in 
asymmetrical arrangements with trading partners.  This with a view to fo stering increased market 
penetration while maintaining and improving performance in the domestic market.  It seeks also to 
facilitate measures to address supply-side constrai nts thereby facilitating improved productivity and 
competitiveness in both the domestic and export markets. WT/TPR/G/139 Trade Policy Review 
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37. 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 implement critical development progra mmes and provide facilities for adjustment to the 
new international economic environment. 
(ii) Institutional Framework 
38. The Ministry of Foreign Affairs and Foreign Trade has responsibility for the formulation of 
trade policy as it relates to foreign trade  and for the negotiation of trad e agreements.  A number of 
other ministries and agencies are also engaged in the formulation and implementation of overall trade 
policy namely the Ministries of Commerce, Sc ience and Technology;  Finance and Planning;  
Industry and Tourism;  Agriculture;  Development, and their trade related agencies. 
39. The Foreign Trade Department in the Ministry of Foreign Affairs and Foreign Trade also 
coordinates the work of the Jamaica Trade and Ad justment Team (JTAT), which brings together 
representatives of ministries and departments with a bearing on trade policy as well as representatives 
of the private sector and civil society, in a cons ultative mechanism which informs the development of 
trade policy and positions for trade negotiations. 
40. The private sector plays an active role in trade policy developmen t and implementation 
through sectoral initiatives and the work of umbrel la organizations.  The Private Sector Organization 
has established a Trade Policy Committee which seeks to increase awareness of trade developments 
among members of the business comm unity and provides a platform for private sector initiatives and 
recommendations for trade policy development and negotiating strategies.  At the level of civil 
society, the Association of Development Agencies (ADA) has established a national working committee on trade which seeks to contribute to the formulation of national trade policy while 
improving public awareness of developments in external trade and the implications of trade 
negotiations for non-state actors. 
41. Jamaica’s trade policy formulation is also guided  by the provisions of the Revised Treaty of 
Chaguaramas which oblige it to coordinate certain ex ternal trade arrangements with the rest of the 
Caribbean Community.  In this connection, Jamaic a participates actively in  the work of the Council 
for Trade and Economic Development and other trad e-related bodies estab lished by the Community. 
IV. REGIONAL INTEGRATION – THE ESTABLISHMENT OF THE CARICOM 
 SINGLE MARKET AND ECONOMY (CSME) 
42. CARICOM, in recognition of the need to prepar e its economies for international competition, 
while at the same time providing an adjustment period, began unilateral trade liberalization in 1991 
with the implementation of the revi sed Common External Tariff (CET). 
43. To further deepen the integration process, CARICOM Governments decided in 1989 to 
establish the  CARICOM Single Market and  Economy (CSME).   This was done by way of the 
negotiation of nine (9) Protocols amending the Tr eaty of Chaguaramas which formed the legal basis 
for the establishment of the CSME.  The provisions  of the 9 Protocols have now been incorporated 
into the Revised Treaty of Chaguaramas. 
44. The aim of the single market is the creation of a single economic space to facilitate the free 
movement of goods, services, capital and people across the region for the efficient and competitive 
production of goods and services.  Jamaica, along with Barbados, and Trinidad and Tobago, has made 
commitments to implement the single market by December 2004 with other Member States 
committed to implementation by December 2005. Jamaica WT/TPR/G/139 
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45. The following institutions have been established to support the operation of the single market: 
(a) The Caribbean Court of Justice (CCJ) which will be charged with the 
 interpretation and application of the Revised Treaty and to exercise exclusive jurisdiction 
 with respect to dispute  settlement, includ ing mediation, consultations, conciliation and 
 arbitration;  and 
(b) The CARICOM Regional Organisation for Standards and Quality (CROSQ)  
 which will facilitate the development and harm onisation of regional standards, enhance 
 efficiency and  quality in the production of  goods and services within CARICOM, promote 
 consumer and environmental protection and facilitate trade within the CSME. 
46. The Revised Treaty of Chaguaramas contains pr ovisions to facilitate the establishment of a 
single economy through harmonisation, coordination and convergence of macro-economic policies in 
a number of areas including, capital market integration and development, investment and incentives 
policy harmonisation, fiscal policy harmonisation, corporate tax harmonisation and monetary union.  
It is expected that the single economy will be implemented by 2008. 
V. BILATERAL/HEMISPHERIC AND PREF ERENTIAL TRADE ARRANGEMENTS 
(i) CARICOM Bilateral Agreements 
47. At the regional level, Jamaica has been actively involved in the negotiations of economic  and 
trade agreements which include the CSME and a number of CARICOM bila teral trade agreements. 
48. In the process of expanding trade relations with the wider region, CARICOM currently has 
trade agreements with the following countries: Colo mbia, Venezuela, the Dominican Republic, Cuba 
and Costa Rica. 
(ii) Cotonou/EPA 
49. The Cotonou Agreement, which was signed in June 2000 between the African, Caribbean and 
Pacific (ACP) States and the European Union, provides a timetable for the negotiation of new, WTO-
compatible Economic Partnership Agreements (EPAs).  To facilitate the transition, current non-
reciprocal preferential trading arrangements will rema in in place until the end of 2007.  The EPAs are 
to enter into force in January 2008.  Negotiations  between the Caribbean and the EU commenced in 
April 2004. 
50. The commodity protocols, which are to be revi ewed in the EPA negotiations, are of critical 
importance to Jamaica. 
51. The new regime for bananas, which was agreed in 2001, will be implemented up to the end of 
2005 and a tariff only system will be introduced as of 1 January 2006.  Jamaica wishes to ensure that the tariff-only regime serves to maintain the continued viability of the country’s banana industry. 
52. The EU Commission has proposed the reform of its sugar regime, which will result in a 
reduction of the price of sugar over two (2) phases.  Jamaica has grave concerns about the 
implications of the reform programme for the local sugar industry.  A sudden drastic reduction in the guaranteed price would result in a severe setback to  Jamaica’s process of restructuring of the local 
sugar industry.  In this context, it is imperative that  there is an adequate transition period to facilitate 
the continued competitiveness of the sugar industry in Jamaica. WT/TPR/G/139 Trade Policy Review 
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(iii) Free Trade Area of the Americas (FTAA) 
53. The FTAA, on completion, will be the world’s largest free trade area with a population of 
over 800 million persons and a combined GDP of US$13 trillion.  Jamaica and her CARICOM 
partners (which are negotiating as a bloc) are seeking to ensure that the agreement takes fully into account the situation of small economies in order fo r them to benefit equally as other parties from the 
trade agreement in terms of economic advancement and national development. 
54. The FTAA negotiations are scheduled for conclusion by January 2005 but given the current 
stalemate in the process it is not likely that this deadline will be met. 
(iv) CARIBCAN 
55. The CARIBCAN programme was introduced by the Government of Canada in 1986 to 
facilitate trade, investment and industrial coop eration with CARICOM.  Products excluded from 
CARIBCAN are textiles, clothing and footwear, certain luggage and handbag products, leather 
garments, lubricating oils and methanol. 
(v) The Caribbean Basin Initiative (CBI) 
56. The Caribbean Basin Initiative (CBI) whic h was initially launched in 1983 through the 
Caribbean Basin Economic Recovery Act (CBERA), was amended in 1990 to increase market access to the United States and was also made permanent.  In 2000, the United States enacted a further 
expansion of the CBI through the U.S. – Caribbean Basin Trade Partnership Act (CBTPA).  The 
CBTPA provides preferential access for a number of products previously excluded from the CBI. 
VI. MULTILATERAL FRAMEWORK – THE WTO AND THE URUGUAY ROUND 
 AGREEMENTS 
(i) Implementation of the Uruguay Round Agreements 
57. Since 1995, Jamaica has made significant strides in meeting its obligations under the relevant 
WTO Agreements.  Implementation has taken the fo rm of the upgrading and modernisation of the 
legislative and institutional framework with a view to  facilitating compliance.  This has also required 
the development of human resource capacity through  the identification of competent officials and 
continuous education and training.  As a small, resource constrained economy, however, Jamaica 
continues to face challenges in implementing the Agreements. 
58. Jamaica has implemented the WTO Agreements on Anti-dumping, Subsidies and 
Countervailing Measures and Safeguards  through the Customs Duties (Dumping and Subsidies) 
Act, 1999;  the Customs Duties (Dumping and Subs idies) (Determination of Fair Market Price, 
Material Injury and Margin of Dumping) Regulations, 2000;  the Safeguards Act, 2000 and the Safeguards Regulations, 2003. 
59. These agreements are administered by the Anti-dumping and Subsidies Commission, which 
was established pursuant to the Customs Duties (Dumping and Subsidies) Act.  The Commission has 
responsibility for investigating all complain ts of injurious dumping and import surges  which cause or 
threaten material injury and for applying appropria te trade remedies in accordance with the law.  
Since the implementation of the laws and regulations, the Commission has initiated four  anti-dumping 
investigations and anti-dumping duties were imposed in all four  cases.  In October 2003, the 
Commission initiated its first safeguards case and a  provisional duty was imposed.  The safeguard 
case was closed with the recommendation by the Commission of a duty which was effected by a Jamaica WT/TPR/G/139 
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straightforward tariff increase as the amount of the du ty resulted in a tariff increase within the bound 
rate for the subject product. 
60. Jamaica has experienced challenges in implemen ting the Agreements due to financial, human 
resources and other constraints.  In this regard, there is need for ongoing support at the national and 
regional level, particularly in the ar eas of training and capacity building. 
61. The WTO Agreement on Customs Valuation  is administered by Jamaica Customs, a 
department of the Ministry of Finance and Planni ng.  Under the Customs Modernisation and Reform 
Programme, the Customs Department has undergone an extensive process of rationalisation and re-
organization of customs procedures and manageme nt.  The Customs Act, 1955 which is Jamaica’s 
primary piece of legislation dealing with customs valuation and procedures, was amended in 2001 to bring it into conformity with the provisions of the WTO Agreement on Customs Valuation.  This 
resulted in a change from the valuation system ba sed on the Brussels Definition of Value to six (6) 
systems of valuation under the WTO Customs Valuation Agreement.  Jamaica made a reservation 
under Annex III (2) of the Agreement to retain the use of reference pricing/minimum values until 
March 2003 on (i) used motor vehicles;  (ii) specif ied used equipment;  (iii) used chassis and bodies;  
and (iv) used motor cycles.  The application of the computed value method was deferred until March 
2004. 
62. Despite the advances that have been made under the Customs Modernisation and Reform 
Programme, there continues to be a need for on-goin g training and technical assistance.  In this 
regard, Jamaica has benefited fr om technical assistance provided by the governments of the 
United States, the United Kingdom and Canada as well as the World Customs Organization (WCO). 
63. Jamaica fully supports the development and main tenance of an international regime for the 
promotion and protection of intellectual property rights .  In this regard, through the establishment of 
the Jamaica Intellectual Property Office (JIPO) and the adoption of appropriate legislation, Jamaica is 
on the way to achieving full compliance with the TRIPS Agreement. 
64. Since the last Trade Policy Review, the Trade Marks Act, 1999 and the Layout-Designs 
(Topographies) Act, 1999 were passed and have entered into force.  In terms of new legislation, the 
Protection of Geographical Indications Act was passed in February 2004 and accompanying 
regulations are being prepared.  Currently, legislat ion is being finalised in relation to patents and 
industrial designs.  In addition, work will commence shortly on the drafting of legislation concerning 
the protection of the rights of breeders of new plant va rieties.  Amendments are also due to be made to 
the Copyright Act and the Trade Marks Act and Tr ade Marks Rules in orde r to strengthen their 
enforcement provisions and overall co mpliance with the TRIPS Agreement. 
65. Standards  in Jamaica are regulated by a number  of laws and regulations including the 
Standards Act, 1968, the Weights and Measures Act, 1976 and the Processed Foods Act, 1959.  The 
Bureau of Standards of Jamaica was established in 1968 pursuant to the Standards Act.  The BSJ, working in conjunction with the relevant Ministries and Agencies, is responsible for the promulgation of national standards.  Most standards in Jamaica are voluntary, although there are a number of 
mandatory standards.  The BSJ acts as the national enquiry point under the WTO Agreement on 
Technical Barriers to Trade. 
66. Jamaica implemented the Code of Good Pr actice for the Preparation, Adoption and 
Application of Standards (Annex 3 to the WTO Agre ement on Technical Barriers to Trade) in 1996.  
The BSJ has undergone a process of internal restructuring to ensure greater efficiency and compliance with Annex 3.  The changes include the rationaliza tion and restructuring of the Committees involved WT/TPR/G/139 Trade Policy Review 
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in standards development and divestment of the responsibility for writing and implementing technical 
regulations to various Ministries within their respective portfolios. 
67. A National Quality Infrastructure (NQI) that is co nsistent with new international principles of 
technical regulations and conformity assessment is being established under a technical co-operation 
agreement with the Swedish International Develo pment Agency (SIDA) and the Government of 
Jamaica.  A National Accreditation Agency of Jama ica is to be established with the mandate, 
inter alia , to accredit laboratories and companies to va rious international standards including the ISO 
9000 series.  The BSJ currently accredits and audi ts laboratories for chemical and microbiological 
testing. 
68. Changes have been made to Jamaica’s legislative framework in the area of sanitary and 
phyto-sanitary measures to facilitate compliance w ith the WTO agreement.  The legal framework is 
being modernised by upgrading existing legislation, including the Plant Quarantine Act, 1993 and the 
Agricultural Produce Act of 1926, and implementing new legislation, such as the Meat and Meat 
Products (Inspection and Export) Act, 1998 and the Aquaculture, Inland and Marine Products and By-
products (Inspection, Licensing and Export) Act, 1999. 
69. The Plant Quarantine Produce Inspection Division in the Ministry of Agriculture is Jamaica’s 
enquiry point under the WTO Ag reement on Sanitary and Phyto-sanitary Measures.  The 
establishment of the enquiry point plays a major role  in ensuring transparency in the implementation 
and application of Jamaica’s laws an d regulations affecting SPS measures. 
70. Jamaica operates an open and general import licensing  system, which was implemented in 
order to monitor the importation of products that c ould affect the environment, health and security of 
the country.  Jamaica has had a long tradition of implementing and administering its import licensing 
regime and therefore had li ttle difficulty in developing import licensing regulations and in establishing 
an administrative system to ensure conformity with the WTO Agreement on Import Licensing.  
Additionally, the Trade Board was already operat ing a two-tiered system for processing import 
licensing with automatic import licences being issued within twenty-four (24) hours after submission and approximately fifteen (15) working days for non-automatic licences to be processed. 
(ii) Jamaica’s Position on the Current Round of Multilateral Trade Negotiations 
71. Jamaica’s participation in the current round of negotiations must be informed by its 
experience to date with trade liberalization.  Trade liberalization has ha d a significant impact on 
Jamaica.  In fact, given its small size and depende nce on a few goods and services, Jamaica has been 
forced to address adjustment issues affecting the competitiveness of firms;  product and market 
diversification;  the restructurin g of the productive sectors of the economy;  and the development of 
specialised human and institutional skills. 
72. Important components of the adjustment process consequent to trade liberalization include the 
need to address the loss of government revenue and the erosion of preferences.  At present, approximately 30% of Jamaica’s total revenue is ob tained from customs-rela ted duties and charges. 
The benefits of trade liberalization can be outwei ghed in situations where governments are dependent 
on these duties as a key component of governme nt revenue.  A drastic reduction of government 
revenue from customs-related duties and charges could have a negative effect on the fiscal balance. 
73. Existing preferential arrangements offer predic tability of market access for critical export 
sectors.  Increasing pressures for greater libera lization will erode the le vel of preferences and 
contribute to increased international competitive pressures.  It is ther efore imperative that the issue of Jamaica WT/TPR/G/139 
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the erosion of preferences be addressed within the context of the current round of negotiations as a 
means of ensuring against the marginali zation of small, vuln erable economies. 
74. WTO Members agreed in August 2004 a framew ork package which will allow the resumption 
of negotiations on the Doha Development Agenda (DDA).  Jamaica joined the consensus to facilitate movement in the negotiations but did so with some reservations and with the clear understanding that 
further work on defining the scope of  the modalities will be required.  It is in this context that Jamaica 
will seek to ensure that its vital interests and co ncerns in these negotiations are taken into account. 
75. The text on agriculture responds to some extent to Jamaica’s concerns especially in its 
provisions for the designation of  special products and a special safeguard mechanism. 
76. On non-agricultural market access (NAMA ), Jamaica maintains serious reservations 
regarding the application of a non-linear tariff  formula or any formula which would result in 
unacceptably deep reductions in existing tariff leve ls.  Jamaica is also concerned about the lack of 
clarity as to whether participation in sectoral tari ff reduction will be mandatory or voluntary.  The 
framework package recognises the challenges faced by beneficiaries of non-reciprocal preferences 
and tariff revenue dependent-memb ers, but does not provide any specific guidance in this area. 
77. It is also critical that there are concrete results in the negotiations on special and differential 
treatment and implementation-related issues,  which remain at the core of the development 
dimension of the Doha negotiations. 
78. The July Package launched negotiations on trade facilitation .  A number of the proposals of 
the Core Group of developing coun tries, in which Jamaica participat ed actively, were incorporated 
into the text.  In proceeding with negotiations on trade fac ilitation, there will need to be greater clarity 
regarding the issue of the applicability of the di spute settlement mechanism.  Jamaica was pleased 
with the decision not to launch negotiations in the other three (3) Singapore Issues and that no work 
toward negotiations on any of them will take place within the WTO during the Doha Round given 
Jamaica’s resource and capacity co nsiderations and implications that  multilateral agreements in these 
areas could have for policy space. 
79. Jamaica continues to believe that there is co nsiderable scope for greater transparency and 
participation in the consultative and decision-mak ing processes in the WTO and urges Members to 
renew efforts in this regard. 
(iii) Technical Assistance 
80. Jamaica welcomes the technical assistance  it has received from th e WTO and acknowledges 
the latter’s efforts in seeking to expand the range of its technical assistance acti vities.  In this regard, 
special mention must be made of the inauguration of the regional trade policy course at the Mona 
Campus of the University of the West Indies held during the period 2 February – 23 April 2004. 
81. The technical assistance activities of the WT O have contributed immensely to increased 
awareness and understanding of the WTO Agreements among the public and private sectors.  There 
is, however, a need for a broader c oncept of technical assistance that  will include a greater focus on 
capacity building in the form of attachments and in ternships to address the capacity gap which still 
exists in Jamaica in terms of administering the WTO Agreements.  Technical assistance should also 
extend to addressing supply-side constraints whic h would complement efforts aimed at identifying 
market access opportunities. WT/TPR/G/139 Trade Policy Review 
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VII. CONCLUSION 
82. The Government of Jamaica has placed high prio rity on economic restructuring in order to 
ensure that the country can participate in and be nefit from the global economy.  The macro-economic 
and fiscal policies that have been pursued in order to address the recessionary period of the late 1990s 
to early 2000s have begun to provide a solid basis for growth. 
83. Regional and bilateral trade initiatives will conti nue to be an important element of Jamaica’s 
trade policy particularly as these arrangements  will provide the basis for product and market 
diversification and increa sed competitiveness among the local export sector. 
84. Jamaica will continue to promote the establishm ent of a multilateral trading system that is 
transparent, fair and balanced.  Jamaica is committed to a rules-ba sed multilateral trading system that 
takes into account the needs and interests of the Membership and that the small and vulnerable among 
them are given a chance to achieve the goals of poverty eradication, sustained economic growth and 
sustainable development. 
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