Note:   Advance written questions by WTO Members and the replies provided by Jamaica are 
reproduced in document WT/TPR/M/139/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.  WORLD TRADE  
ORGANIZATION  WT/TPR/M/139 
28 February 2005 
 (05-0840) 
Trade Policy Review Body 
17 and 19 January 2005  
 
 
 
 
TRADE POLICY REVIEW 
 
JAMAICA 
 
Minutes of Meeting  
 
Chairperson:  H.E. Mrs. Puangrat Asavapisit (Thailand) 
 
 
    Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF JAMAICA 4  
III. STATEMENT BY THE DISCUSSANT 9 
 
IV. STATEMENTS BY MEMBERS 12 
 V. REPLIES FROM THE REPRESENTATIVE OF JAMAICA AND 
 ADDITIONAL COMMENTS 22 
 VI. CONCLUDING REMARKS BY THE CHAIRPERSON 27 
 
 WT/TPR/M/139 
Page 3 
 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The second Trade Policy Review of Jamaica wa s held on 17 and 19 January 2005.  The 
Chairperson (H.E. Mrs. Puangrat Asavapisit) welc omed H.E. Mr. Keith D. Knight, Minister of 
Foreign Affairs and Foreign Trade as head of the delegation, as well as H.E. Ambassador Ransford 
Smith and the rest of the Jamaican delegation.  The Chairperson also welcomed H.E. Mr. Eirik 
Glenne (Norway) who had kindly agreed to act as the discussant for this Review.  As usual, the 
discussant would speak in his personal capacity and not as a representative of his Government and, in accordance with the establi shed procedures, he had made availa ble in advance, outlines of the main 
issues he intended to raise (WT/TPR/D/117). 
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures of the meeting.  The Report by Jamaica was contained in document WT/TPR/G/139 and that of the WTO Secretariat in document WT/TPR/S/139. 
3. Copies of advance written questions submitte d by Hong Kong, China;  the European 
Communities;  the United States;  Japan;  Canada;  Brazil;  and Colombia had been transmitted to the 
delegation of Jamaica.  These questions and the re plies provided by the delegation of Jamaica are 
reproduced in WT/TPR/M/139/Add.1. 
4. The Chairperson noted that Jamaica was an active participant in the WTO and had been 
playing an important role in the Doha negotia tions.  Jamaica was a strong advocate of increased 
participation in and use of the multilateral trading system by developing countries.  Since its last 
Review in 1998, Jamaica had also made significant  efforts to facilitate and liberalize its trade.  
Jamaica had adopted the WTO definition of tran saction value for customs valuation, and the 
introduction of customs modernization programmes had resulted in a shorter time for customs 
clearance.  However, Jamaica had not ratified th e Fifth Protocol on Financial Services and she 
expressed interest in learning of any progress made on th is ratification.  In the context of reductions in 
CARICOM's Common External Tariff, Jamaica's simple average MFN tariff had fallen to 8.6% in 
2004, although average tariff protection for agricultu ral products remained substantially higher than 
for non-agricultural products.  The gap between a pplied rates and bound tariffs remained wide.  
Besides tariffs, Jamaica also applied certain othe r duties and charges on imports.  She believed that 
Members would be interested in hearing how Jamaica planned to reduce the complexity of these charges. 
5. The Chairperson stated that Jamaica's efforts to  achieve macroeconomic reform had started to 
bear fruit, but growth had been slow since its last Review, partly due to the heavy burden imposed by 
the public debt and the fiscal constraints this created .  In this respect, the Secretariat Report noted that 
reassessing the fiscal incentives granted to promote specific sectors could ease those constraints, and 
promote growth.  No doubt Members would like to hear how Jamaica foresa w its economy adjusting 
to a world economic environment characterized  by an increasingly level playing field. WT/TPR/M/139 
Page 4 
 
 
II. OPENING STATEMENT BY THE RE PRESENTATIVE OF JAMAICA 
6. The representative of Jamaica  noted that his country, as a small developing economy, was 
firmly committed to the principle of multilateralism and to the primacy of the rule of law in the 
ordering of international relations .  This applied with equal force to the global trading system.  
Jamaica regarded a rules based multilateral trading sy stem that was fair and balanced as indispensable 
for the survival of small developing nations.  In the WTO, and particularly in the current Round of 
negotiations, Jamaica consider it of paramount importance and of utmost  priority, that full account be 
taken of the differing interests of a diverse and growing  membership:  the weak and the strong, the rich and the poor, the developed and the developing.  
7. Jamaica considered it essential that balance a nd fairness in the global trading system 
encompassed responsiveness to the particular c oncerns of small economies, whose economic and 
ecological fragility had been so amply and devastat ingly demonstrated in the past year, and across 
continents.  The representative expressed his country 's deep and heartfelt sympathy to the several 
countries affected by the devastating tsunami.  Ja maica was recovering from th e ravages of the most 
active hurricane season in recent memory and kn ew well the destructive potential of nature. 
8. The representative stated that for the Trade Polic y Review of a country such as his own to be 
truly meaningful, it needed to focus attention on the particular reality and the special circumstance of 
small economies.  He had become more convinced of this on reviewing the mandate of the Trade 
Policy Review Mechanism, and specifically the objec tives agreed at the end of the Uruguay Round.  
He recalled that what was sought was a collective appreciation and evaluation of the full range of a 
Member's trade policies and of their impact on the functioning of the multilateral trading system.  In 
this context, he noted that Jamaica's Gross Domestic Product was US$7 billion, which was but a 
fraction of the sales revenue of a moderate sized  global corporation.  According to the WTO, 
Jamaica's share in world trade was 0.055%.  Jama ica wondered what criteria or methodologies had 
been developed to allow WTO Members to “evalua te” the impact of Jamaica’s trade policies and 
practices on the functioning of the multilateral tr ading system.  Jamaica doubted that it had a 
measurable impact on the multilateral trading system, while the reverse was not true.  Jamaica's small 
trade share was combined with a high degree of openn ess.  This was reflected in a high trade to GDP 
ratio, which exceeded 90%.  Furthermore, given its size, Jamaica was merely a price taker in the global economy.  Jamaica frankly believed that in this circumstance of smallness and openness the focus of a Review should be to better understand the wider economic and development needs, policies 
and objectives of the Member, including the role of the external environment, and how all of this 
informed its trade policies and practices.  Jamaica wa s of the view that the “collective appreciation” of 
the Member's trade policies and practices could onl y be achieved through such an approach.  The 
Jamaican delegation hoped that this Review would provide just such a fuller appreciation, including 
of the domestic and external context and constraints.   By so doing, it would also provide a clearer 
understanding of Jamaica's negotiating prior ities and concerns in the current Round. 
Recent economic trends 
9. In its first Trade Policy Review in 1998, Jamai ca had outlined in great detail the far reaching 
liberalization of its trade and investment regime, much of it on an autonomous and non-reciprocal 
basis.  Jamaica had remained committed to the proce ss of trade liberalization, but was aware that this 
was not an end in itself but a means to foster gr owth and development.  Liberalization had to be 
balanced with the human and social costs of adjust ment and take fully into account that the level of 
development and the size of economies are important  factors in determining the potential pace and 
scope of the liberalization process.  Since its last Re view, Jamaica had been able to maintain a stable, 
and now expanding economy in the face of significa nt economic and financial challenges, as well as 
recurrent shocks from natural disasters, including Hurricane Ivan in September 2004. WT/TPR/M/139 
Page 5 
 
 
10. Jamaica had continued to adhe re to sound fiscal and economic policies, and to promote 
macroeconomic reform.  The core targets of the macroeconomic programme we re the maintenance of 
single-digit inflation, continued foreign exchange stability, containment of the growth of the public 
debt, and the lowering of interest rates, within a disciplined fiscal framework and with the overall 
objective of growth and development.  In genera l, progress towards meeting these targets had been 
made.  The Central Bank had pursued an aggressi ve monetary policy since the mid-1990s and had 
succeeded in reducing inflation.  In recent years, with a single exception, th ere had been single-digit 
inflation in Jamaica.  Although the out-turn for the cu rrent fiscal year would be affected by the impact 
of Hurricane Ivan and related expenditure, financ ial markets remained calm and inflationary 
expectations low, in a climate of growing conf idence, nationally and internationally, in the 
Government's monetary and fiscal discipline.  Th is had succeeded in revers ing the high levels of 
inflation and reducing the high levels of interest ra tes.  The downward trend in interest rates, an 
important element of the Government's strategy to  encourage investment and place the fiscal accounts 
on a sustainable path, continued.  The Government 's sound approach to the macro economy had also 
engendered stability in the foreign exchange market and this stability was now underpinned by record 
levels of external reserves, which stood at US$1.8 billion. 
11. On the fiscal side, the objective was to achieve  a balanced budget by financial year 2005/06, 
and surpluses thereafter.  The Jamaican Govern ment, despite set-backs, had been making steady 
progress in containing and reducing the size of the fiscal deficit, which, at 5.6% of GDP had been on 
target for fiscal year 2003/04.  The deficit for fis cal year 2004/05 was expected to be 4.4% of GDP, 
only a shade outside the target, despite unanticipat ed expenditure related to Hurricane Ivan.  The 
Government's continued success in containing and reducing the fiscal deficit, and in moving to a 
surplus position, would require that it stayed the course in implementing measures to broaden the tax 
base, restricted the size of the public sector and r estrained public sector expenditure.  In February 
2004, an historic Memorandum of Understanding (M OU) had been signed between the Government 
and the Jamaica Confederation of Trade Unions, in which the parties had agreed to, among other 
measures, a policy of wage restraint in the public  sector for the period April 2004 to March 2006. 
12. With respect to Jamaica's debt situation and th e considerable charge that this imposed on the 
national budget, while progress had been made in  renegotiating the terms of domestic debt and 
managing and containing the external debt, in the current fiscal year, 60 cents out of every dollar of 
revenue had to be allocated to debt servicing.  Meet ing fiscal deficit reduction ta rgets in this situation 
required tremendous sacrifice.  Every single dollar of  tax revenue was important.  Jamaica could not 
support negotiating proposals that would drastically  reduce tariff revenues, especially considering 
that, as clearly indicated in the Secretariat Report,  Jamaica's total trade in goods and services already 
accounted for 96% of its GDP, and imports of goods  and services alone accounted for close to 60% of 
GDP.  It was hard to conceive in the face of these ra tios that there could be any issue of access to the 
Jamaican market or that existing tariffs, which we re important to revenue, could be seen as protective 
barriers. 
13. Jamaica's broader commitment to sound macr oeconomic policies was bearing fruit.  Like 
trade liberalization, macroeconomic stability was not an end in itself, but aimed at promoting growth and development.  It was thus satisfying that the favourable environment created had resulted in 
Jamaica becoming, for its economic size, a premie r investment destination.  UNCTAD's 2004 World 
Investment Report ranked Jamaica 20th of 140 countries in its Inward Foreign Direct Investment 
(FDI) Performance Index.  Key areas of invest ment included tourism, telecommunications, mining 
and construction, transport and port infrastructure.  In tourism, in a renewed growth spurt more than 
5,000 rooms would be added in the next five years,  and projections were for some 11,000 in the next 
decade.  In calendar year 2003, stop-over and cruise -ship visitors had totalled 2.5 million, a visitor 
total just slightly less than Jamaica's own populati on of 2.6 million.  The bauxite and alumina industry 
was undergoing expansion, with well ov er US$500 million of new investment. WT/TPR/M/139 
Page 6 
 
 
14. Jamaica was also strongly supported by its many  nationals who lived and worked overseas.  
They remitted more than US$1 billion each year, the second highest source of foreign exchange after 
tourism, and underpinned a growing overseas market  for Jamaica's music, culture, speciality, and 
other products.  Jamaica hoped that mode 4 negotia tions on the movement of natural persons under 
the GATS would create further opportunities for those who wished to work temporarily overseas, and 
that existing opportunities enjoyed by some devel oping Members would not be  constrained or eroded 
in any way. 
15. He drew attention to the transformation of the telecommunications sector, which had been 
fully liberalized ten years ahead of the target  date (2013) in its GATS Schedule of Specific 
Commitments.  The telecommunications sector had been a leader in investment during the 
liberalization process, and Jamaica had achieved its  universal service objective in voice telephony, 
with a total of 2.1 million cellular users and land lines. 
16. Jamaica had achieved its positive developments th rough disciplined effort and sacrifice.  The 
challenge was to ensure that the economy continued on a path of sustained gr owth and development.  
Growth rates had for some time been modest.  In 2003, the economy had grown by 2.1%.  In 2004, 
real GDP growth had been originally projected to approach 3%, but was now expected to be 
somewhat reduced as a result of the impa ct of Hurricanes Ivan and Charley. 
Trade policy 
17. Trade played a key role in any overall growth  strategy.  Small, open economies relied on 
trade, and it was widely recognized that given the constraint of a small domestic market, sustained 
growth and development required competitiveness in the export of goods and services.  The process 
of macroeconomic reform and liber alization was aimed in significant measure at attracting external 
resources, stimulating domestic investment, and generally creating conditions in which economic 
resources were more efficiently allocated, and in whic h factor and sectoral adjustment was facilitated.  
Jamaica's trade policy was geared towards incr easing and diversifying exports, facilitating both 
market penetration and diversification, and st rengthening domestic competitiveness.  Jamaica sought 
to achieve these objectives through active engagement  and involvement at the regional, hemispheric, 
and multilateral levels. 
18. The out-turn in terms of the growth and divers ification of exports had been disappointing.  
Jamaica's trade deficit had widened from US$238 m illion in 1980 to US$2.45 billion in 2002, a ten-
fold increase.  The average growth rate of impor ts had accelerated to 7.6% between 1993 and 2002, 
while export growth had slowed to an average annua l rate of 1.1%.  Jamaica had thus joined many 
developing countries which, for various reasons, in cluding weak supply capability, had been unable to 
take advantage of the purported export opportuniti es and to benefit from the welfare gains that the 
Uruguay Round was supposed to have  brought.  The Secretariat's Report noted these trends for the 
period since Jamaica's last Review and correctly ascr ibed the contraction of exports primarily to a 
decline in manufactured exports.  This had been du e in significant measure to developments in the 
apparel sector, where exports had fallen by 91%  between 1998 and 2003, a consequence partly of 
trade diversion due to NAFTA.  This underscored the validity of Jamaica's concern regarding the 
adverse impact that the phasing out of the MFA would have on many small suppliers. 
19. Jamaica's trade in agricultural commodities had met with different but significant obstacles.  
There had been various challenges in the WTO ag ainst sugar and bananas, on which Jamaica and 
other CARICOM members relied as important sources of foreign exchange, job creation, and social 
and economic development, especially in rural ar eas.  These commodities were important to the 
domestic economy, although Jamaica and CARICOM members had a minimal share of the global 
market.  These developments had created and deepen ed concern in the region regarding the extent to WT/TPR/M/139 
Page 7 
 
 
which global trade rules provided space and flexibilit y for the special circumstance of vulnerable 
developing countries, often with inconsequentia l market shares, and negligible impact on the 
functioning of the global trading system.  Jamaica also believed that there was insufficient recognition 
of and attention paid to the acute difficulties of ad justment, and to the constraints on diversification 
and on supply side strengthening th at small economies faced.  These needed to be at the heart of a 
development-oriented perspective on trade. 
20. In the Doha Round, intended to be a developm ent Round, it needed to be ensured that small 
economies dependent on preferences were not called u pon to make drastic adjustments within narrow 
time frames in both their import-competing industries and their export sectors.  Jamaica feared that 
this would be the consequence for these countries of proposals for the severe further reduction of 
tariffs in their domestic markets and on products of  interest in their major export markets.  The 
existing high levels of import pe netration in many of these economies had to be taken into account.  
The reduction of tariffs was not an end in itself.  The objective was to facilitate the flow of imports.  
Jamaica wondered about the objective of such propo sals when these flows we re already torrential. 
21. Jamaica considered that through disciplined  effort and sacrifice it had made significant 
progress in important areas:  in engendering macroec onomic stability, in infrastructural development, 
in the liberalization of important sectors, such as finance and telecommunications, and in attracting 
direct investment.  Jamaica would continue to work at  all levels – bilateral, regional, hemispheric, and 
multilateral – to improve its trade performance, particularly in increasing and diversifying exports of 
goods and services, which remained an area of great  concern.  Conducive and responsive trade rules 
were important to this goal and Jamaica would contin ue to work with all Members in the WTO, and in 
other trade fora, to fashion such rules. 
22. Jamaica had supported the consen sus achieved in July 2004 on a framework package to allow 
the resumption of negotiations on the DDA.  Jama ica did so out of a shared commitment to placing 
development at the heart of trade negotiations.  While the package had marked an important 
breakthrough, much had been left open and subject  to the subsequent negotiation in which Jamaica 
was now participating fully within its res ources.  Non-agricultural market access (NAMA), 
agriculture, services, and development issues, were vital areas of primary interest. 
Technical assistance 
23. Jamaica welcomed the technical assistance it had received from the WTO and acknowledged 
the efforts to expand the range of these activitie s.  Jamaica conveyed its appreciation for the 
establishment of a regional trade policy course at th e Mona Campus of the University of the West 
Indies, which was slated for its second staging later this month. 
Regional integration 
24. Jamaica remained deeply committed to the re gional integration process under way within 
CARICOM, and was confident that this woul d enhance prospects for economic growth and 
development and more effective integration into the global economy.  It was Jamaica's firm belief that 
RTAs such as the CARICOM Single Market and Economy (CSME), complemented and reinforced 
the objectives of multilateral trade in  all its dimensions.  For small economies, this was particularly 
important.  RTAs enabled them to apply the princi ples of trade liberalization in a defined economic 
and geographical context, and thus facilitated thei r effective participation in the wider multilateral 
trading environment. 
25. On 19 February 2005, the Prime Ministers of Barbados, Trinidad and Tobago, and Jamaica 
would meet in Georgetown, Guyana to officially la unch the CSME within thei r respective territories.  WT/TPR/M/139 
Page 8 
 
 
This historic step would be a precursor to the wi der implementation of the CSME by 11 other member 
states in January 2006.  When fully implemented, the CSME would provide a single economic space in which goods, services, labour, and capital would be  able to move without impediment.  The Single 
Economy would come on-stream in 2008.  Jamaica's pa rticipation would serve as the platform for its 
broader engagement in hemispheric and other trad ing arrangements, including the Free Trade Area of 
the Americas (FTAA), the Regional Economic Partne rship Agreement between the Caribbean and the 
European Union, and the WTO itself.  Jamaica also  highly valued its network of trade arrangements 
with other partners in the region, such as the Dominican Republic, Cuba, Colombia and Venezuela, 
and more recently Costa Rica. 
26. Jamaica was mindful of the challenges posed by its simultaneous participation in several trade 
arrangements and negotiating theatres, but recognized that it had to be active and fully engaged to 
ensure that its interests were protected. 
Conclusion 
27. The representative stated that  Jamaica remained committed to a multilateral trading system 
underpinned by equity and transparency.  Jamai ca's experience with trade liberalization had 
reaffirmed the need to preserve policy space to enable the implementation of critical  national 
development initiatives, and to take account of socio-economic and other imperatives.  Jamaica, 
therefore, urged the WTO to recognize and accept that  trade liberalization must be undertaken at a 
pace consistent with a Member's level and stage of  development.  Failure to do so would not only 
cause dislocation in the economy and society, but in  some circumstances would make it more difficult 
for Members to gain support from the productive sect or, and from the wider public, for changes that 
were desirable and necessary.  In any calculus of co st and benefits, such an outcome would be in no 
one's interest.  Jamaica intended to remain an active and committed Member of the WTO. WT/TPR/M/139 
Page 9 
 
 
III. STATEMENT BY THE DISCUSSANT 
28. The discussant  (H.E. Ambassador Eirik Glenne) stated that his point of departure for the 
Trade Policy Review was one of lessons learned.  The papers presented by the Secretariat and by 
Jamaica, and not least the intervention from Minist er Knight provided a very good basis for this 
exercise. 
Macroeconomic environment 
29. Jamaica's macroeconomic performance since th e last TPR was impressive on one hand and 
less so on the other.  As Jamaica did not pursue a policy of isolation, like most other countries it was 
exposed to events in the world economy.  Some external events had had a marked influence on 
Jamaica's economy since its last Review.  The trag ic events of 11 September and Hurricane Ivan had 
had an impact particularly on tourism, which played an important role in the economy.  The rise in oil 
prices was also beyond the control of the Jamaican authorities.  Th e recorded performance seemed to 
indicate that these challenges had been met, though the achievements might not have been all that 
were initially hoped for by the policymakers.  The Se cretariat paper pointed out the increasing public 
debt burden, the monetary tightening, the appreciat ion of the exchange rate, and the shift away from 
agriculture and manufacturing over to services, with  the ensuing result that services had increased its 
relative contribution to GDP during the period under review. 
30. Normally, a shift from primary production to secondary or, as in this case, tertiary sectors, 
was considered a positive development by most econom ists.  However, someti mes this general view 
needed to be adjusted depending on the reasons for th e shift.  The reasons for this shift appeared to 
have been the decline in productivity of the first two sectors, particularly in manufacturing, and 
developments in important markets.  The compe titiveness of the manufacturing sector had also been 
influenced by the appreciation of the currenc y up until 2001;  after which, the currency had 
depreciated.  In addition, the real and nominal wages had had a role in the development of the 
competitiveness of the economy in general and the manufacturing sector in particular. 
31. The Government and the unions had reached an  understanding in support of a policy of wage 
moderation.  Norway had had good experience with a similar approach in the 1990s and was still 
benefiting from it to some extent.  He was inter ested to learn more about the way how this was 
working and, in particular, the reasons behind the choice of a two-year duration for the MOU setting out the formal basis for the understanding. 
32. With respect to Jamaica's fiscal and monetary po licies, the discussant believed that the goal of 
reducing the growth in public debt was very sensi ble and necessary.  The ratio of debt to GDP was 
relatively high, and risked having crowding-out effects on the economy.  He was interested to learn whether the Government had contemplated increasing  the tax base further, for instance by introducing 
a VAT system.  Given that tariffs were an important source of fiscal revenue, the need for increased 
revenue might become even greater in future. 
33. The policy mix between fiscal and monetary policy might also be of interest.  The burden on 
monetary policy seemed to be relatively high.  In some countries inflation targeting was the 
instrumental monetary policy goal, and thus interest rates were left to vary as was the exchange rate.  
He believed that in Jamaica the target for inflation was set one year at the time by the BOJ.  Most 
economists would prefer the period to be somewhat longer or even not specified.  In the best of 
worlds somewhat greater exchange rate flex ibility would better safeguard competitiveness and 
facilitate responses to shocks.  Such a policy was bei ng pursued to a greater or lesser extent in many 
countries, in combination with an independent cen tral bank.  More generally, there was growing 
consent among economists that policymakers shoul d shift the emphasis of economic policy design WT/TPR/M/139 
Page 10 
 
 
away from isolated measures towards the institutiona l framework.  This insight had had a far-reaching 
impact on reforms carried out in many countries, including his own. 
34. The overall macroeconomic goals of the Govern ment were single-digit inflation, foreign 
exchange market stability, containing the public debt  growth, lowering interest rates, and promoting 
economic growth.  It appeared, from the paper submitt ed by Jamaica to this TPR, and the intervention 
today, that there were positive signs in economic development, which would hopefully also lead to 
reduced unemployment. 
Trade policy regime 
35. The discussant commended Jamaica's trade policy, which had made it a very open economy.  
It was an original Member of the WTO and a cont racting party to the GATT since its independence.  
Jamaica was a very active Member and its commitme nts bore witness to its seriousness in integrating 
into the international trade environment, for goods an d services.  It had ratified the Fourth Protocol to 
the GATS on basic telecommunications services.  Ja maica advocated increased participation in and 
use of the multilateral trading system by develo ping countries.  It was playing an active and 
constructive role in the ongoing negotiations. 
36. The New Trade Policy adopted in 2001, had thr ee key objectives:  to expand and diversify 
exports;  to reduce the share of imports relative to  output;  and to increase the flow of net positive 
returns from foreign investment.  The policy seemed to be bearing fruit, and there seemed to be an 
awareness of the risk of pursuing an import subs titution policy, which in almost all cases was non-
optimal for increased growth and wellbeing.  In particular, priority was given to the policy of 
simplifying regulations and procedures pertaining to  foreign investment.  He wondered whether this 
basic policy approach was also being considered in  other areas of importance for the external sector. 
37. A striking feature of Jamaica's trade policy was involvement in regional trade integration 
projects and preferential agreements;  its aims seemed  to include increasing the level of integration of 
CARICOM and strengthening bilateral trade with Caribbean Basin countries.  Jamaica had also 
entered into asymmetric trade arrangements with developed countries, and had obtained preferences 
for some important products;  some of these pref erences risked being reduced.  This challenge had 
been recognized in the New Trade Policy.  The discussant asked how Jamaica envisaged continuing 
its double-track multilateral and regional policy. 
38. Since its last TPR, Jama ica had continued to liberalize it s trade regime on an autonomous 
basis.  The simple aver age MFN tariff was 8.6 % in 2004.  In  addition, Jamaica had continued its 
policy of facilitating trade, including through customs modernization and computerization 
programmes, which, according to the Secretariat paper, had resulted in shorter customs clearance 
times. 
39. The Secretariat Report had noted that a few app lied rates seemed to be above the bound rates.  
He was interested in th e explanation for this. 
Sectoral policies 
40. There appeared to be a virtual private monopoly for the production and distribution of 
electricity.  In some circumstances, the conditions  were in place for so-called natural monopolies.  
This might be the case also fo r Jamaica but, if not, introducing a different market situation might 
reduce electricity prices. WT/TPR/M/139 
Page 11 
 
 
41. Growth in the telecom sector had significan tly outperformed the overall growth of the 
country.  The sector had also attrac ted more employment, but at a slow er pace than that of production, 
thus suggesting that productivity had increased in  the telecom sector.  In  addition the increased 
competition among the various producers had resulted in a reduction in prices to consumers.  The 
Government was on track to achieve its objective of utilizing the telecommunications industry as an 
engine of growth for the economy a nd should be commended for its policy. 
42. Much progress had also occurred in the financ ial services sector, where the policy followed 
had been basically the same as for the telecom sector.  The 1996 crisis had been overcome, which was 
commendable.  However, further improvements in th e functioning of the financial sector were still 
necessary, to deal with problems such as the seemingly large interest rate spreads. WT/TPR/M/139 
Page 12 
 
 
IV. STATEMENTS BY MEMBERS 
43. Members welcomed the Jamaican delegation,  and thanked Minister Knight for his 
introductory remarks and the discussant for his contri bution.  A number of Members referred to the 
questions they had submitted to the Jamaican delega tion in writing;  they looked forward to receiving 
the replies to these questions. 
44. The representative of Hong Kong, China  noted that Jamaica and Hong Kong, China enjoyed 
harmonious trade relations;  their annual bilateral trade, while not  large, had remained reasonably 
steady at around US$20 million in the last few years.   They had had no disp utes and few complaints.  
Hong Kong, China commended the determined on-goi ng macroeconomic reform in Jamaica, and the 
greater openness to trade and market liberalization that had come with it.  There was potential for 
expansion of the trade between the two economies.   At the multilateral level, Hong Kong, China 
shared Jamaica’s firm belief in a rules-based system.  They both supported the Doha Round 
negotiations and Hong Kong, China appreciated the part  played by Jamaica in the lead-up to the July 
package and to moving the negotiations forward thereaf ter.  The next important step was to agree on 
the modalities for agriculture and NAMA, and to pur sue the same high level of ambitions in other 
areas, particularly services and rules negotiations.  Hong Kong, China endorsed the view that in order 
to make the Doha Round truly a development round, the concerns of developing countries had to be 
addressed in the negotiations.  However, the represen tative held a different view from Minister Knight 
with respect to the influence of the smaller pl ayers on world trade and the trading system.  He 
considered that, in the rules-based multilateral regi me, the behaviour of the smaller players was vital 
to the strength of the system, and in no way less than  that of larger players.  Thus Hong Kong, China 
looked forward to the continued constructive engagement of Jama ica in moving towards a successful 
conclusion of the Round. 
45. Hong Kong, China commended Jamaica for reducin g its average applied tariff from 10.9% in 
1997 to 8.6% in 2004.  However, there was room  for further improvement.  The gap between bound 
and applied tariffs remained wide, and average ta riff protection for agricultural products remained 
substantially higher than for non-agricultural pro ducts.  Also, the applied tariff on certain non-
agricultural products appeared to exceed their respec tive bound tariff in 2004.  In addition to tariffs, 
certain other charges, in the form of customs us er fees and stamp duties, applied exclusively on 
imports, considerably increased the border protecti on for some products.  For example, taking into 
account the stamp duty, average border protection rose from 8.6% to 10.3% for the overall tariff.  
Hong Kong, China urged Jamaica to  eliminate the tariff gaps and other non-tariff barriers in the 
current round of negotiations.  In a globalized ec onomy adjustment had to be continuous and any 
measures to impede it were illusory and self-defeating. 
46. Hong Kong, China congratulated Jamaica on th e continued process of liberalization in 
services, notably in the fundamental infrastructural sectors such as financial services and telecommunications.  Liberalization of infrastructural services sectors would contribute to the development of the economy and, therefore, Hong Kong, China encouraged Jamaica to continue its 
liberalization efforts and to expand them to othe r infrastructural services sectors, especially in 
transport and logistics services.  These were essen tial in supporting exports of goods and were 
particularly important for an island economy like Jam aica with significant exports of physical goods.  
The active participation of all Members in the services negotiations, with a view to reaching 
substantive outcomes on both market access and rule -making in services, was crucial to reaching an 
overall balance of results and to accomplish a successf ul outcome of the Doha Round.  In this regard, 
Hong Kong, China keenly awaited the initial offer fro m Jamaica and strongly encouraged Jamaica to 
engage constructively in the services negotiations. 
47. Hong Kong, China was pleased that all new standa rds in Jamaica were required to be gazetted 
and made available for sale to the public.  However,  as at July 2004, there were 123 draft standards WT/TPR/M/139 
Page 13 
 
 
that had been approved but had yet to be publishe d.  Hong Kong, China encouraged the Jamaican 
authorities to publish these standards as soon as possibl e to enhance transparency of its TBT regime. 
48. The representative of Hong Kong, China co mmended Jamaica for pledging a significant 
donation to help countries affected by the recent Tsunami. 
49. The representative of the United States  noted that her country and Jamaica had had a rich 
trade and investment relationship for more than three centuries.  The United States was Jamaica’s 
leading trading partner and investor;  two-way good s trade was nearly US$2 billion in 2003, up 4% 
from 2002.  This figure significantly understated the depth of their economic relationship, especially 
given the growing importance of services, where 75%  of the tourists visiting Jamaica came from the 
United States, and investment, where over 80 U.S. enterprises had invested more than US$1 billion in 
Jamaica’s economy, including in important empl oyment and export sectors such as tourism and 
minerals.  Jamaica's goods exports  to the United States were more than US$400 million in 2003, up 
7% from 2002, with some products showing partic ularly significant incr eases.  Jamaica enjoyed 
preferential access to the U.S. market under the Caribbean Basin Initiative and through the 
Generalized System of Preferences.  The objective of those programmes was to build closer economic 
links and help to spur jobs and growth.  In addition, the U.S. Agency for International Development 
sponsored assistance to enhance the participation of  Jamaican enterprises in global markets such as 
agri-business, tourism, and entertainment.  Furt her work was under way to improve the environment 
for small, medium, and micro-enterprises. 
50. Jamaica had done much to improve its trade and investment environment since its last 
Review, especially in light of recent difficulties cause d by unexpected tragic events such as Hurricane 
Ivan.  There had been activity on many fronts, including privatization and liberalization of its 
financial services and telecommunications sectors as well as customs modernization and computerization programmes that had cut down on border clearance times.  The international business community was recognizing these initiatives through thei r purchases, sales, and investments, and they 
helped to explain why U.S. investment in Jamaica had been so robust, to the mutual gain of both 
countries. 
51. The performance of Jamaica's financial services and telecommunications sectors was a 
testament to the efficacy of Jamaica's reforms.  Although production in some sectors was slowing 
down, which helped to explain why overall growth had been modest in recent years, value-added in 
these important services sectors had grown faster than overall GDP.  The importance of services came through in tourism, which generated as much fo reign exchange as goods exports;  in financial 
services, where greater competition and consolida tion had increased profitability and employment;  
and in telecommunications, where greater competition had led to faster growth , more jobs, and lower 
prices. 
52. With respect to border measures, the United St ates was concerned about Jamaica's increased 
tariffs on agricultural imports.  The United States al so wondered whether the application of Jamaica’s 
customs user fee was in proportion to the services re ndered, and whether the stamp duties, which were 
sometimes high, fell within the scope of Jamaica's bindings and were applied equally on imports and 
domestic goods.  The United States had noted that Jamaica's apparently unscientific SPS restrictions 
on certain processed, packaged, dry dairy products as well as its complete ban of U.S. pork products 
not only harmed U.S. export interests, but raised prices for Jamaica's poor.  These barriers also increased operating costs for Jamaica's tourism indus try, that had to compete with neighbours with 
lower levels of protection.  The United States hoped that these measures were temporary, and we 
would appreciate an update on when they would be removed. 
53. The United States noted that Jamaica had not yet ratified the Fifth Protocol to the GATS, in 
which the Government of Jamaica had made subs tantial market-opening commitments.  Given the WT/TPR/M/139 
Page 14 
 
 
passage of extensive new laws and regulations to lib eralize Jamaica's financial services trade, together 
with the growing importance of services as an econom ic activity and earner of foreign exchange, the 
United States asked whether Jamaica would soon be in a position to ratify the Fifth Protocol to the 
GATS. 
54. The United States was surprised by the number of export incentive programmes mentioned in 
the Secretariat Report.  The United States encouraged Jamaica to update  its subsidies notifications to 
include any programmes that had not yet been notif ied.  The Unites States noted that Jamaica had 
successfully utilized the Subsidi es Committee to obtain more time to eliminate certain export 
subsidies, and commended Jamaica's efforts in  the annual reviews of those programmes.  
Furthermore, the United States noted Jamaic a's ongoing efforts to rationalize its incentive 
programmes and was confident that it would be able  to accomplish its development objectives within 
a WTO-compatible structure. 
55. The United States appreciated the informati on Jamaica was providing during the course of 
this Review.  The United States also commended the Jamaican Government for the steps that it had 
taken to liberalize its trade and investment regi me.  The strengthening of the financial services and 
telecommunications sectors was particularly importa nt in demonstrating that reforms could produce 
tangible benefits, and the United States looked fo rward to learning more about these and similar 
efforts. 
56. The representative of the European Communities  noted that the EC had for many years 
improved its historic relations w ith Jamaica, including through close cooperation in many areas in 
terms of trade arrangements, aid, and dialogue.  The EC was one of Jamaica's the largest export 
markets.  Since the last review of Jamaica, importa nt efforts had been made to liberalize and enhance 
the transparency of its trade regime, but more work  needed to be done to ensure a transparent and 
well-functioning trade regime.  The Secretariat Report touched on many areas where further improvement could yield benefits.  In particular, there was a need to do away with tariff exemptions 
and to provide certainty for exporters by ensuring a transparent import regime.  Customs user fees and 
stamp duties were without doubt harmful to trad e, as were a number of other import measures 
currently applied. 
57. Jamaica had unfortunately been suffering from economic turmoil and instability for a number 
of years.  The economy was presently suffering from low growth, combined with high unemployment 
and an enormous public debt  burden.  In addition, Jamaica's intern al security had continued to provide 
a cumbersome challenge, as violence had continued to  pose a threat to both tourism and new foreign 
investment.  Despite this difficult environment, Jamaica had undertaken continuous opening of its 
trade regime.  Trade had become increasingly importa nt for Jamaica and, by promoting a sustainable 
trading environment, would benefit it in the longer run. 
58. Jamaica had been active in promoting a multilatera l trade agenda, while also seeking regional 
integration in the framework of the CARICOM.  The EC was encouraged by Jamaica's efforts to seek 
market-opening through bi-regional, intra-regional,  and bilateral trade agreements with other 
developing countries.  Bilateral and regional trade compatible with the rules and obligations of the 
WTO was an important tool for promoting trade, not least among developing countries, and it would 
be beneficial for the development of Jamaica, pr ovided that Jamaica continued to fully support the 
WTO system and its further development, given that  multilateralism remained the most certain way to 
promote the interests of a small country. 
59. The EC was pleased to hear that Jamaica had adopted a national trade strategy to address its 
development objectives.  Such strategies were vita l.  Trade and development needed to go hand-in-
hand.  No amount of aid could replace trade as th e main engine for development.  And trade and 
investment could not grow optimally without the right political conditions. WT/TPR/M/139 
Page 15 
 
 
60. The representative of Japan  stated his appreciation to Jamaica for undertaking its Review 
despite the many difficulties in Ja maica, such as the serious damage caused by the recent hurricane.  
On that occasion, Japan had provided emergency assistance goods, such as tents, electric dynamos 
and blankets, showing that Japan and Jamaica mainta ined an amicable relationship.  Japan welcomed 
Jamaica's active participation in discussions in th e WTO, and acknowledged the difficulties that small 
economies faced in integrating into the multilateral trading system.  Japan firmly believed that the 
promotion of trade facilitation contributed strongly to the development of the economy in developing 
countries by vitalizing their trade and economy.  Therefore, Japan welcomed Jamaica's customs 
modernization programme and active participati on in the on-going trade facilitation negotiations. 
61. Japan commended Jamaica for scheduling horiz ontal commitments for commercial presence 
in all sectors under the GATS, and for participating in the negotiations on telecommunications and on 
financial services.  Japan appreciated that Jamaica had accepted commitments in the Fourth Protocol, 
including the Reference Paper on Telecommunications , and had achieved full market liberalization in 
2003, ten years earlier than originally scheduled .  In financial services, Jamaica had promoted 
liberalization and had the potential capacity to rati fy the Fifth Protocol.  Japan, thus, hoped that 
Jamaica would ratify the Fifth Protocol soon.  Japan also hoped that Jamaica would undertake an 
initial offer in the on-going service negotiations as soon as possible. 
62. The increase in the external de bt and the high unemployment rate were serious economic 
concerns.  To improve the situation, it seemed desi rable to promote foreign direct investment.  Since 
its last Review, Jamaica had continued to make pr ogress in simplifying regulations and procedures to 
create a more investment-friendly environment.  Jap an hoped that Jamaica would continue to enhance 
this environment and stimulate further foreign dire ct investment.  Japan hoped that Jamaica would 
continue to participate actively in the DDA negotia tions and, based on the multilateral trading system, 
achieve further development by ove rcoming its economic difficulties  
63. The representative of Canada  stated that Jamaica's voice at the WTO was one to be heard.  As 
the longest-standing Caribbean member of the GA TT and WTO, Jamaica was an active player at 
WTO negotiating tables.  Under the leadership of  Ambassador Ransford Smith – who had chaired 
everything from the G-77 in the lead up to UNCT AD XI last year, to the Special Session of the 
Committee on Trade and Development at the WTO – the Jamaican delegation in Geneva advocated 
not just for the interests of Jama icans, but for citizens of devel oping countries across the Caribbean 
and around the world. 
64. Canada was very pleased that, since its first Review in 1998, Jamaica had made significant 
progress in liberalizing its trade and investment regi me.  It had introduced anti-dumping legislation, 
amended intellectual property legisl ation, and revised competition policy legislation.  In particular, 
Canada congratulated Jamaica for fully liberalizi ng its telecommunications sector in 2003, ten years 
earlier than scheduled.  Market access conditions were  quite liberal in Jamaica, particularly in the 
financial services sector;  Canadian banks were significant players in Jamaica.  However, Jamaica had still not accepted the Fifth Protocol to the GATS, embodying the results of the financial services negotiations in the 1990s, and Cana da encouraged Jamaica to comp lete its domestic ratification 
procedure at an early date. 
65. Canada was also concerned that there was a s ubstantial difference between some of Jamaica's 
bound and applied tariff rates, and that some applied rates actually exceeded Jamaica's bound 
commitments.  Canada urged the authorities to na rrow the gap between bound and applied tariff rates, 
and to ensure that no applied rates exceeded the bindings.  This would pr ovide more predictable 
market access conditions for traders and investors.  Canada also encouraged Jamaica to ensure that 
customs fees and charges were limited to the co st of the services rendered, and to address sectoral 
limitations, such as the monopoly conditions in the el ectricity industry, which had  implications on its 
textiles and clothing industry. WT/TPR/M/139 
Page 16 
 
 
66. Jamaica's investment regime was relatively open to foreign investors, and Jamaica had 
continued to make progress in simplifying regu lations and procedures and creating a more 
investment-friendly environment.  Canada welcomed  Jamaica's consistent and extensive support for 
regional integration within the Caribbean Single Market Economy (CSME), and was impressed by its 
participation and leadership in CARICOM.  Ca nada acknowledged Jamaica's impressive advocacy for 
special and differential treatment for developing c ountry Members in the WTO, which helped Canada 
and other WTO Members to recognize the challe nges small economies like Jamaica faced in 
implementing WTO Agreements and benefiting fully from the global economy.  In this respect, 
Canada strongly supported trade-related technical assistance and capacity building in the Caribbean 
region.  Canada had committed CDN$5 million to the Regional Trade Policy Responsiveness Fund to 
strengthen the capacity of the CARICOM region to fo rmulate trade policy options, to participate in 
trade negotiations, and to facilitate compliance with trade agreements.  Canada  had also supported the 
joint WTO Institute for Training and Technical Coope ration/University of West Indies regional trade 
policy course for the Caribbean – held in Jamaica last year – with a contribution of more than 
CDN$200,000.  Canada was planning a new trade a nd competitiveness programme to start in 2006, 
with a commitment of approximately CDN$7.5 million, from which Jamaica would benefit. 
67. The representative of Brazil  noted that Jamaica had made significant efforts to liberalize its 
trade and investment regime since its first Review in 1998, which reflected the importance of trade to 
its economy.  Efforts to achieve macroeconomic refo rm seemed to have cont ributed to the moderate, 
but consistent GDP growth over th e period 1999-03, in which average real GDP growth had reached 
1.3%.  Brazil encouraged the Jamaican Government to continue to consolidate reforms throughout the 
economy, attacking the problem of the heavy bu rden imposed by the public debt and fiscal 
constraints.  Brazil was aware of how difficult it  was to achieve these objec tives, since it faced the 
same challenges.  Brazil shared the Jamaican Govern ment's perception that its efforts would lead to 
higher growth in the medium and long terms. 
68. Jamaica had continued to use trade polici es and incentive schemes to promote specific 
sectors, within the overall framework established in the National Industrial Policy for 1996-10 and the 
New Trade Policy (NTP), adopted in 2001, with the objectives of expanding and diversifying exports, 
reducing the share of imports relative to output, and increasing the flow of net positive returns from 
foreign investments.  It was important for Ja maica to retain enough policy space to design and 
implement the policies best suited to its development needs. 
69. Brazil commended Jamaica for its continui ng progress in simplifying regulations and 
procedures and creating a more investment-friendly e nvironment.  Moreover, Jamaica had taken steps 
to facilitate trade, including customs modernizati on, adopting the WTO definition of transaction value 
for customs valuation, reducing the MFN tariff to 8.6% in the framework of CARICOM, and binding 
all tariff lines already in the Uruguay Round, in creasing the predictability of the trade regime. 
70. Jamaica, an original and very active Member of the WTO, was a strong supporter of special 
and differential treatment for developing countries.  It advocated increased par ticipation in and use of 
the multilateral trading system by developing count ries.  Brazil deeply appreciated the active and 
constructive participation of Jamaic a's Geneva-based delegation in th e workings of the WTO, as well 
as the key role played by Ambassador Smith in UNC TAD XI.  Jamaica had also been the beneficiary 
of technical assistance funds or programmes from a number of governments, including Brazil. 
71. Jamaica's trade policy was implemented within  the framework of the Caribbean Community 
and Common Market (CARICOM).  Jamaica was one of the leading members of CARICOM, through 
which it had concluded preferentia l agreements with a number of  countries.  Jamaica's exports 
benefited from non-reciprocal preferential trade a rrangements offered by some developed countries, 
but faced the challenge of adjusting to an environm ent where preferences were eroded.  Clearly, this WT/TPR/M/139 
Page 17 
 
 
adjustment would be easier if accompanied by a reduction in the non-tariff barriers faced by Jamaican 
exports in those markets. 
72. The representative of Colombia  stated that the two countries had tightened their relations as a 
result of the Partial Scope Agreement between Co lombia and CARICOM, signed in 1994 and revised 
in 1998.  Nonetheless, bilateral trade remained sma ll.  Jamaica granted Colombia preferential access 
for a number of tariff lines;  however, these did no t include some of the main Colombian export 
products to Jamaica.  Colombia exported mainly su gar, paper, and petroleu m products to Jamaica, 
while Jamaica exported products such as natural gyp sum and aluminium hydroxide.  However, there 
was much scope to develop trade further.  Colomb ia had made some investments in Jamaica in the 
chemical and paper industries. 
73. Colombia was aware of Jamaica's efforts to ab ide by its WTO commitments since the end of 
the Uruguay Round.  At present, the tariff was the main border protection instrument and an import 
fiscal revenue source.  The average MFN tariff was 8.6%, although high tariffs were applied on some 
agricultural products.  A more coherent trade policy would be desirable to correct tariff escalation and 
limit maximum tariff rates to their WTO bindings.  Continuing to apply a strong macroeconomic 
policy would contribute to achieve this.  Jamaica' s tariff policy should be more congruent with the 
export diversification objectives of its new Trade Po licy.  This would reduce Jamaica's dependency on 
exports of a limited number of products as well as its reliance on unilateral trade preferences.  Efforts 
in this respect and aimed at restructuring sensitive sectors s hould persist and be supported by 
international organizations. 
74. Colombia acknowledged Jamaica's leadership in the WTO and shared its view on the 
importance of special and differential treatment.  Co lombia and Jamaica also shared the view that 
balanced results benefiting all Members were needed .  However, Colombia could not share Jamaica's 
vision that the maintenance of preferences be ac hieved by altering the basic principles of the 
organization, such as MFN treatment .  Colombia was convinced that  the results of the DDA should 
provide opportunities for all Members and, for this reason, invited Jamaica to study alternatives to 
balance the interests of all Members, in particular  in the tropical products negotiations.  Sugar and 
bananas were important products for Colombia;  they were part of its peace strategy.  Colombia could 
not share the view that "small economies" were dependent on preferences and considered that 
alternative means should be sought to deal with th e erosion of preferences.  Countries like Jamaica 
would also have to think about alternatives in th e multilateral trading system.  In doing this, Jamaica 
would be contributing more consistently to the advancement of the multilateral trade liberalization 
process initiated in Doha. 
75. The representative of Mauritius  noted that, despite the distance between Mauritius and 
Jamaica, the two countries shared similar experiences and faced the same challenges.  They were both 
small island developing states, a nd net food importers.  They bot h belonged to the ACP group and 
were beneficiaries of trade preferences under the Co tonou Agreement.  Furthermore, sugar was very 
important for both countries.  It was therefore not  a coincidence that Maur itius and Jamaica shared 
common objectives at the WTO, in particular  in the agriculture and NAMA negotiations. 
76. Jamaica deserved to be commended for the sign ificant efforts it had made to liberalize its 
trade and investment regime, since its first Review in 1998.  It had made progress in the service sector and had endeavoured to align its in tellectual property legislation to WT O rules.  However, despite all 
these efforts, economic growth had been slow in Ja maica and per capita income had stagnated, while, 
according to the Secretariat Report, both the agricu ltural and manufacturing sectors appeared, to be in 
secular decline. 
77. The situation of Jamaica illustrated the hard r ealities faced by small island developing states.  
Jamaica was constrained in its development by a number of factors affecting these countries, WT/TPR/M/139 
Page 18 
 
 
including susceptibility to adverse climatic c onditions, dependence on a few goods and services, 
limited scope for diversification due to a very na rrow resource base and small domestic market, high 
production costs, difficulties in acces sing external capital.  Furthermor e, Jamaica faced a number of 
challenges, including those emanating from chang es taking place at the international level, in 
particular adjusting to an environment in which preferences were being increasingly eroded.  The 
multilateral trade liberalization process had led to a decline in Jamaica's preferential margins in its 
traditional markets, which had in turn exposed  Jamaica's economy to global competition. 
78. Mauritius was fully sympathetic to Jamaic a's concerns regard ing international 
competitiveness.  Sugar and bananas, the two ma jor commodities for which Jamaica benefited from 
preferential arrangements, were currently under serious  threat.  The sugar sector was at a crossroads:  
the EU's proposal for the Sugar Regime would result  in a 37% reduction in the price of sugar.  This 
would be a serious blow to ACP countries and would be a severe setback to the reform and 
restructuring process of their sugar industry.  Maur itius fully shared Jamaica's view regarding the 
need for an adequate transition period to facilitate  the continued competitiveness of the sugar industry 
in ACP countries.  The difficulties in the sugar se ctor had been further exacerbated by the Sugar 
Regime being challenged at the WTO by large expor ters.  Mauritius also not ed that Jamaica, like 
other small island developing states was facing casualties in  the textile sector.  Since its last Review in 
1998, production and exports had decreased sharply;  many factories had been closed and there had 
been massive job losses, employment had dr opped from 36,000 persons in the early 1990s to 
approximately 8,000 in 2002. 
79. Small island developing states, like Jamaica, needed rules to protect their fragility, and a 
moderate pace of trade liberalization for their su stainable development and gradual integration into 
the global economy and the multilateral trading syst em.  However, without secure and enhanced 
preferential access to markets and without assistan ce to meet adjustment costs and to improve 
competitiveness, it would be difficult for Jamaica to  meet the challenges of globalization.  The 
support of the international trade community and all WTO Members was therefore essential to permit 
the country to participate actively in the multilatera l trading system, and to enable it to implement 
existing commitments and derive benefits from th e resulting opportunities.  Jamaica needed further 
capacity-building and technical assistance to improve its effective participation.  The recent hurricane 
in the Caribbean and the impact it had had on these countries was a clear indication of the 
vulnerability of such island states.  Moreover, the devastating impact of the recent Tsunami on larger 
states reinforced Mauritius' arguments regardi ng the need to urgently address the vulnerability 
problems in smaller states and for the WTO to el aborate measures to help offset such adverse 
situations;  for instance, in the form of e nhanced preferential access for their exports. 
80. The representative of Barbados  congratulated Jamaica on its cr edible performance in the face 
of the continuing difficulties being experienced by small, vulnerable economies around the world.  As a neighbouring Caribbean island a nd a co-member of the emerging Caribbean Single Market and 
Economy, Barbados was well aware of the challenges that confronted Jamaica.  Barbados applauded 
Jamaica's moderate but consistent growth in real  GDP over the period 1999-03, but noted with regret, 
the widening trade deficit, and hoped that WTO rules were not a contributory factor. 
81. Some of Jamaica's small economy challenges could be seen in its agriculture problems caused 
by drought and flooding.  As Jamaica strived to en sure rural development and food security, the battle 
against the uncertainty of nature continued.  Ba rbados shared Jamaica's concern over vulnerability to 
external shocks, especially in the area of tourism,  Jamaica's single largest contributor of foreign 
exchange earnings.  Barbados also shared Ja maica's concern over vulnerability to any rapid 
adjustment to long-standing preferential trade arra ngements.  Barbados understood that the purpose of 
TPRs was to ensure adherence to the rules and commitments in a transparent way.  However, 
information detailing the Member's situation needed to be seen in a wider context.  Members should WT/TPR/M/139 
Page 19 
 
 
therefore take note of Jamaica's difficulties, a nd the difficulties visited upon small, vulnerable 
economies and be prepared to do something about them. 
82. Barbados believed that the success of the D oha Development round shoul d include substantial 
development gains, so that small economies like Jamaica would have further opportunity to deploy 
their limited resources and comparative advantage as they sought to reverse the persistent increase in 
their trade deficit. 
83. The representative of Pakistan  commended the commitment of the Jamaican government in 
pursuing its economic objectives through effective fo llow-up of and support to the multilateral trading 
system.  Though small in terms of both population and economy, Jamaica had been up to formulating and implementing drastic trade liberalization reform s.  Despite its institutional linkages with the 
CARICOM and its regional bondings with Colombia , Cuba, the Dominican Republic, Costa Rica, 
Venezuela, the ACP, and FTAA, Jamaica's average MFN tariff had remained as low as 8.6 % in 2004.  
Jamaica's efforts in customs modernization and co mputerization programmes had resulted in faster 
customs clearance. 
84. Jamaica deserved special recognition in servi ces, where market access conditions were more 
liberal than those specified in its GATS Sche dule, particularly in financial services and 
telecommunications.  Pakistan appreciated the openn ess of Jamaica's investment regime to foreign 
investors; it had been able to attract some US$4.4 billion in 2002 alone.  Jamaica needed to rectify, 
however, the wide gap between bound and applied tari ff rates, and its high tariff rates on agricultural 
commodities.  These had been furt her increased from 40% to 100% for some products, and average 
tariff protection for agriculture remained subs tantially higher than for non-agricultural goods. 
85. Pakistan commended the constructive role and contribution made by Ambassador Smith and 
his Geneva-based team in the multilate ral trade negotiations at Geneva. 
86. The representative of the Dominican Republic
 highlighted his country's excellent relationship 
with Jamaica, in the ACP frame work and through the free-trade agreement between the Dominican 
Republic and CARICOM.  The Secretariat Report had noted Jamaica's efforts to liberalize its trade 
and investment regime and highlighted that there were few non-tariff barriers to trade, and that the 
MFN average tariff was a low 8.6%.  Similarly, le gislative and institutional improvements had been 
put in place to facilitate trade and enhance tran sparency.  The Dominican Republic congratulated 
Jamaica for its active participation in the WTO, part icular for its defence of special and differential 
treatment for developing countries, their increased pa rticipation in the multilateral trading system, and 
better use of the system. 
87. The representative of India  complimented Jamaica's positive and constructive role in the 
deliberations at the WTO.  Jamaica was an original Member of the WTO and had been participating actively in the multilateral trading system.  It was clear however, that Jamaica was concerned at some 
elements of the Doha work programme aimed at further trade liberalization, especially in the 
agriculture sector.  It was the collective responsib ility of the membership to find ways to provide 
confidence to countries in situations similar to th at of Jamaica, so as to facilitate their active 
participation in the Doha work programme.  India wi shed to work closely with Jamaica and others in 
the Committee on Trade and Development to make  progress in the work pursuant to the Doha 
mandate on small economies.  India and Jamaica had extremely cordial bilateral relations.  Their two 
delegations maintained a close working relationshi p at Geneva.  Although their bilateral trade volume 
was not significant, there was good potential to widen their trade and economic collaboration. 
88. The representative of Trinidad and Tobago
 highlighted the remarks made by the International 
Monetary Fund in 2004 upon release of the Report  on its Article IV consultations with the 
Government of Jamaica, with respect to the success  of the authorities in stabilizing the economy and 
restoring market confidence.  However, the IMF had also emphasized that formidable challenges WT/TPR/M/139 
Page 20 
 
 
remained.  As a fellow member of CARICOM, Tr inidad and Tobago was well acquainted with the 
Jamaican economy, and with the challenges that faced a small and vulnerable economy striving 
towards more meaningful participation in the multila teral trading system.  One such challenge was the 
further erosion of preferential access for sugar to the EC market.  While the EC had continued to 
assure the ACP sugar-producing nations that prefer ential access would continue, the proposed reform 
of the EC Sugar Regime would have a debilitating e ffect on the Jamaican sugar industry and that of 
the wider CARICOM.  Jamaica had, nevertheless, made some commendable progress in reducing its economic dependence on a few products.  It had also continued to make significant investment in the 
services sector, and had ably met its GATS commitments while continuing to transform the telecommunications, financial services and transpor t subsectors.  Jamaica had adopted a new trade 
policy to assist its export diversification thrust  and develop the requis ite supporting institutional 
infrastructure. 
89. Jamaica was one of the major CARICOM economies.   Along with Barba dos and Trinidad and 
Tobago, it would inaugurate the CARICOM Single market and Economy on 19 February 2005.  
Jamaica had passed the necessary la ws to further free trade between the participating countries, a 
testimony to its strong sense of commitment to its obligations.  Clearly, the Government of Jamaica 
was committed to deepening its participation in the world trading system and would continue to work 
towards its development objectives. 
90. However, according to the IMF, Jamaica, as  a small economy, would need the support of 
international organizations such as the WTO, othe r international institutions as well as its trading 
partners.  Greater flexibility in the negotiating arena would be needed to help it attain a more stable 
footing in the economic landscape.  Trinidad a nd Tobago continued to offer its support and 
cooperation to the Government and people of Jama ica towards the achievement of their goals.  
Trinidad and Tobago encouraged the Government of Jamaica to continue its plans and policies 
towards economic growth and the deve lopment of a sustainable economy. 
91. The representative of Benin
 underlined the important efforts deployed by Jamaica to improve 
its legislative framework, develop its productive b ase, and reinforce activities to promote economic 
and trade competitiveness, as well as to enhance its participation in regional integration institutions 
and progressively and effectively liberalize its econom y.  These efforts had resulted in an average 
annual GDP growth rate of 1.3% in the 1999-03 pe riod, a clear improvement in the current account 
balance, an increase in fiscal revenue and rigor ous budgetary management, industrial modernization 
and enhanced productivity. 
92. As regards sectoral policy, efforts to promot e tourism, food production, and cultural services 
deserved to be underlined;  results were encouragi ng.  Benin urged the international community to 
support Jamaica's efforts to reinforce its economic a nd trade activities, to allow this small economy to 
attain the objectives set for the Doha Round and to integrate it fully to the world economy. 
93. The representative of Kenya  noted that in spite of the modest long-term growth, Jamaica had 
made substantial progress in pove rty reduction, fina ncial sector reform, and reform of the social 
sectors including safety nets, healthcare, and educatio n.  However, despite impressive performance in 
these areas, Jamaica continued to face some signifi cant challenges in its effort to spur economic 
growth and create more employment opportunities.  Among the most pressing challenges were the need to improve its international competitiveness  and productivity, address urgent short-term 
economic and social needs, and tackle the country's debt burden, which, according to World Bank estimates, had reached 150% of GDP.  Tackling the debt burden and achieving a sustainable fiscal 
situation should remain a top prio rity of the Jamaican Government. 
94. Jamaica had continued to undertake reform s within a broad-based economic policy 
framework, complemented by secto r-specific structural initiatives in order to address some of these WT/TPR/M/139 
Page 21 
 
 
challenges.  However, limited resources and the debt burden continued to undermine the 
Government's efforts in successfully implementing th e reforms.  Jamaica therefore needed the support 
of the international community and donors in this regard.  Kenya was pleased to note that trade 
liberalization measures at the multilateral, regional, an d bilateral levels had been  an important strategy 
for Jamaica for expanding its exports and attracting FDI inflows.  In this regard, Kenya shared the 
view that regional trade arrangements complement ed and were not a substitute for the multilateral 
trading system.  In addition, Kenya believed that  the experiences derived from regional integration 
processes continued to enhance the participation of many developing countries in the multilateral 
trade arrangements and therefore the two pr ocesses should be seen as mutually supportive. 
95. Kenya noted with concern the challenges face d by Jamaica in implementing the multilateral 
trade agreements.  Enhanced technical assistance and capacity building was needed to enable Jamaica 
to fulfil its implementation obligations and facilita te the fuller integration of its economy into the 
world economy.  With respect to the current mu ltilateral negotiations in the WTO, Kenya supported 
Jamaica's views that the resultant rules should effe ctively take into account the concerns of small 
developing economies, preserve the policy space necessary to implement critical development 
programmes, and provide facilities for adjustme nt to the new international environment. 
96. Kenya appreciated Jamaica's active participati on in the WTO including its leadership role 
among developing countries in terms defending and articulating the interests of these countries.  
Kenya and Jamaica had been working closely to en sure that mutual concerns and interests were 
carried on board in the current negotiations.  Kenya would continue to work closely with Jamaica to 
ensure effective implementation of the "developmen t content" of the Doha Agenda.  Kenya also 
appreciated the commitment and constructive role of H.E. Ambassador Ransford Smith in the WTO 
and in particular in the current negotiations. 
97. The representative of Cuba  stated that her country and Jamaica shared common challenges 
and views with respect to the multilateral trading sy stem.  Cuba considered liberalization to be a 
means to development, and not an end in itself.  She was pleased to note that the WTO recognized 
Jamaica's liberalization efforts.  The WTO should help  Jamaica in these efforts so  that they translated 
into contributions to its development. WT/TPR/M/139 
Page 22 
 
 
V. REPLIES FROM THE REPRESENTATIVE OF JAMAICA AND ADDITIONAL 
COMMENTS 
98. The representative of Jamaica reiterated that Jama ica intended to continue on the path of trade 
liberalization.  This was in the interest of a small open economy dependent  on trade.  However, 
liberalization was not an end in itself, but a means to  foster growth and development, balanced with a 
recognition of the human and social costs of adjustme nt.  Liberalization should also take fully into 
account important variables such as levels of development and size of economies, which should 
determine the potential scope and pace of the liberalization process. 
99. Jamaica's commitment to sound macroeconomic po licies could not be overemphasized.  It 
intended to continue these efforts, through disciplin e and sacrifice, to create a stable environment 
within which to foster growth and investment. 
Macroeconomic and institutional environment 
100. Three broad themes had arisen with respect to  the economic and institutional environment.  
These related to tax issues;  fiscal and monetary policy issues;  and inflation, exchange rate, and 
interest rate issues.  His delegation had noted the su ggestion of the need to broaden the tax base.  In 
this respect, it should be highlighted that a ma jor undertaking under way was a review of the tax 
system, with the main objective of broadening the sy stem.  The review had commenced in fiscal year 
2003/04 and was at an advanced stage, with reco mmendations currently before Cabinet.  Decisions 
arising from this review would be implemented in fiscal year 2005/06.  Jamaica also had a VAT, the general consumption tax (GCT), which was introdu ced in 1996.  In additi on, there was a special 
consumption tax (SCT) on alcoholic beve rages, cigarettes, and petroleum. 
101. He did not agree with the assertion that Jamaica relied heavily on monetary policy.  Monetary 
policy had as its principal objective the achievement  and maintenance of low and stable inflation, 
while fiscal policy was formulated within the broa d objectives of reducing the debt/GDP ratio while 
maintaining the provision of adequate services.  M onetary and fiscal policies were formulated in the 
context of an integrated framework that placed em phasis on achieving a balance between the available 
resources and the overall demand for them.  A coordina ted approach was also used in the day-to-day 
implementation of both arms of  macroeconomic management. 
102. Although the Jamaican Government tabled its budg et on an annual basis, as required by the 
Constitution, medium-term targets and projections  for the main macroeconomic indicators and 
accounts, including the inflation target, were also ou tlined in this exercise.  To achieve its annual 
target, the Central Bank employed a mix of methods , including varying the interest rate on its open 
market operations instrument.  Interest rates were, th erefore, allowed to vary in the achievement of the 
inflation target. 
103. The suggestion of "allowing more flexibility in the exchange rate", had become a recurring 
theme among multilateral institutions and some analysts .  It had been associated with enhancing the 
competitiveness of the economy and consequently st imulating growth.  Enhanced competitiveness 
was expected to come from increased local currenc y earnings and lower foreign currency costs when 
the exchange rate depreciated.  However, in a small, highly open economy such as Jamaica, changes 
in the exchange rate had a very immediate and si gnificant impact on prices, costs, and wages.  The 
Government had long recognized this and had ma de the maintenance of stability in the foreign 
exchange market a central element of its strategy to control inflation.  Allowing for more exchange 
rate flexibility would quickly translate into an exchange-rate-fuelled infl ation spiral, which was 
almost the case in March 2003.  In this context,  envisaged competitiveness gains would be quickly 
eroded. WT/TPR/M/139 
Page 23 
 
 
104. The issue of interest rates and spreads in Jamaica was a central focus of macroeconomic 
management in the near term, given the critical impor tance of interest rates for the Central Bank, the 
fiscal authorities, and for the economy in general.   The Government had successfully lowered money 
market rates over the past year, and would continue to give directional leadership in reducing rates 
and, consequently, banks' cost of funds.  This would be achieved th rough its reduced participation in 
the domestic money market, and the progressive loweri ng of inflationary expectations.  Lower rates in 
the money market would ultimately feed throug h to the productive sectors when lending rates 
generally were reduced.  For this to happen however , spreads needed to continue to fall.  Jamaica 
believed that enhanced competition within the fina ncial sector would be a critical component in 
fostering this. 
105. The discussant  stated that as Jamaica had a very open economy, at the same time as 
stimulating economic growth, the authorities would n eed to address the challenge of the relative high 
import elasticity.  Domestic stimulus would incr ease imports and put pressure on the current account, 
the exchange rate, and probably also the level of  inflation.  Clearly, Jamaica's economic policy 
addressed both the demand and the supply side.  Th e policy of promoting export diversification and 
increasing supply side capabilities seemed sensible.  In his view, Jamaica's economic policy was 
geared towards meeting the challenges ahead and he commended the authorities for their endeavours. 
Trade policies by measure 
106. The representative of Jamaica  noted that several Members had referred to border measures 
and tariff-related issues.  In responding, Jamaica re -emphasized the further reduction in its average 
tariff since its last Review, and recalled the favourable comments on the improvements in trade facilitation, both in the Secretariat Report and by a number of Members.  It had been noted that 
customs duties and charges accounted for a large por tion of Jamaica's public revenue.  The questions 
posed had, on one hand, identified the issue of the potential loss of revenue and, on the other, raised 
concerns about the level of tariffs for certain goods  and the structure and impact of other customs 
related charges.  With respect to revenue impact, Jamaica's trade policy clearly pointed out its more 
measured approach to further tariff reductions in order to safeguard revenue, reduce the threat of 
shocks to vulnerable sectors from drastic tariff re duction, and better enable adjustment to future 
liberalization measures.  Jamaica had indicated that all its duties were in keeping with its Uruguay 
Round commitments.  With respect to  what appeared to be anoma lies with regard to prior GATT 
commitments on several products, Jamaica was undertaking an urgent review to address the matter by 
ensuring consistency between applied rates, that  is, the Common External Tariff, and scheduled 
commitments. 
107. Jamaica has notified all its customs-related duti es and charges to the WTO in accordance with 
its obligations.  The higher bound levels of duty on certain agricultural products, as opposed to non-
agricultural products, was necessary to safeguard domes tic production of certain important products in 
order to better ensure sustainable food security.  However, Jamaica was a net food importing country 
and close to 20% of all imports were agricultural pr oducts.  Moreover, some 40% of agricultural tariff 
lines were duty free. 
108. Jamaica had noted the questions raised with rega rd to its customs user fees of 2% and their 
consistency with Article VIII of the GATT.  Jamaica' s preliminary view was th at these user fees were 
WTO-consistent, but would provide further details at a later date. 
109. Jamaica operated a robust system of standards development and enforcement to ensure that 
goods conformed to mandatory health and safety requirements.  It was a transparent system that applied to both importers and domestic producers.  The Jamaican Standards Act spoke of mandatory 
standards, which were also known internationally as technical regulations.  He clarified that none of WT/TPR/M/139 
Page 24 
 
 
the 123 draft standards mentioned in the Secretaria t Report were obligatory or referenced in any 
technical regulation.  Most of these standards were fully “adopted” from other standards bodies.  
These voluntary standards were readily availabl e and could be supplied upon request.  Jamaica 
assured members that it adhered to transparency pr ovisions of the TBT Agreement by notifying all 
technical regulations. 
110. The objective of the compliance programme at Ja maican ports was primarily to ensure that 
consumer goods conformed to mandatory health and safety requirements.  Both importers and 
domestic producers were required to meet these require ments.  Imported products were checked at the 
point of entry;  domestic producers were subject to factory registration and inspection by compliance 
officers and fees were charged for registration, inspection, and testing. 
111. A number of concerns had been raised rega rding the procedures applied by Jamaica with 
respect to the importation of animal products and pr oducts of animal origin.  Jamaica required that 
such products were processed in a manner that  rendered them wholesome, safe, and fit for 
human/animal consumption.  Therefore, such imports  had to be certified by the official regulatory 
agency monitoring the origin, production and processing systems, and procedures involved in 
production of the product.  These procedures were undertaken in acco rdance with the relevant SPS 
requirements.  Normally, official certification a ddressed the scientific systems and procedures under 
which the products were produced or processed.  It thereby attested the saf ety, wholesomeness, and 
fitness for its intended use.  Where products had be en restricted or banned due to SPS concerns the 
relevant authority had advised that it would always  respond to a request from the competent authority 
of the exporting country for an evaluation of the country's disease status and sanitary and food safety 
programmes being implemented in processing and production.  It was on the basis of these 
evaluations and findings that the authority recommended the importation of these products. 
112. The WTO Secretariat Report stated that Jamaica offered a number of schemes to encourage 
domestic production and exports.  It questioned whether, given Jamaica' s fragile fiscal position, there 
were economic benefits from these schemes.  In this regard, a comprehensive review of the system, 
including of incentive regimes,  was currently under way. 
113. With respect to questions related to Jamaica's legislative framework fo r intellectual property, 
Jamaica assured Members that it was cognisant of its international obligations and took these fully 
into account in formulating new legi slation in the area.  As a vibran t creative nation, populated with 
imaginative and artistic people, Ja maica understood the value of intell ectual property and had a vested 
interest in its protection;  it had made remarkab le progress in this area since its last Trade Policy 
Review in 1998.  Jamaica had become party to four  more international agreements, had passed several 
new intellectual-property-related la ws, and had established an Intellectual Property Office dedicated 
to the effective administration of intellectual prope rty rights.  The specific questions on intellectual 
property had been addressed in the circulated docum ent.  However, he highlighted the Protection of 
Geographical Indications Act, which had been pass ed into law during 2004.  This Act would be 
formally notified to WTO Members prior to the forthcoming meeting of the TRIPS Council. 
114. Strengthened enforcement measure s for copyrighted material and trade marks were being 
prepared.  The proposed new regulations under the relevant laws would introduce additional powers 
for the detention of infringing goods. 
115. The discussant  referred to Minister Knight's point rega rding the need to pay attention to the 
difficulties of adjustment processes.  He agreed with this view and found that, although the dynamics 
of a negotiating process deserved as much attention as the end goal itself, often this did not occur.  
Individual concerns were most likely very different , both with regard to the topics concerned and the WT/TPR/M/139 
Page 25 
 
 
degree of the difficulties involved.  He suggested  that more attention should be given to these 
difficulties as work in the WTO proceeded. 
116. Like all other countries, Jamaica applied a broa d range of incentives and disincentives in its 
economic policy.  Many of these instruments had been in place for a long time and were most likely 
out of date.  Most Governments would benefit from reassessing their instruments, to try to establish 
whether they were serving a purpose and to calculate their net benefit for society.  The Government of 
Jamaica should be commended for doing just that. 
117. With regard to trade facilitation, he asked whet her Jamaica's costs in this respect had granted 
the expected return.  He was also interested  in knowing whether Jamaica had benefited from 
assistance from any of the international organizations involved in trade facilitation. 
Sectoral policies 
118. The representative of Jamaica  noted that a number of questions had been raised by several 
Members regarding sectoral policies in the areas of  agriculture, manufacturing, telecommunications 
tourism and other services.  In particular, the di scussant had referred to the shift to services in the 
economy and the growth in that sector relative to manufacturing.  While services was very important 
and Jamaica intended to continue to emphasize growth  and diversification of its services sectors, the 
difficulty of many small economies in estab lishing competitive manufacturing sectors deserved 
analysis and study.  The constraints of scale and scope to which Jamaica had repeatedly drawn attention, were important explanatory variabl es.  Small economies, though dependent on services, 
needed also to encourage and retain some ar eas of manufacturing, and specific measures and 
responsive trade rules might be required to ensure that this was possible. 
119. The tourism sector remained an important pilla r of the economy and was a catalyst for growth 
in other sectors.  The current accommodation boom ha d triggered the diversification of tourism to 
include natural and man-made attr actions and heritage tourism.  Jamaica was committed to achieving 
a highly competitive diversified and sustainable indus try.  Environmental cons iderations were being 
given focussed attention in the de velopmental plans for the sector. 
120. Jamaica was an oil dependant economy;  oil acc ounted for almost one quarter of its import 
bill.  With respect to electricity, and on the issu e of distribution, a condition of the privatization 
process had been the provision of exclusive distribution rights to a U.S. company.  Electricity generation was fully liberalized and open for new in vestment.  Independent providers had increased 
their market share from 24% in 1998 to approx imately 33% presently.  Jamaica was currently 
reviewing its Electricity Lighting Act and its energy  policy to make the electricity-generation market 
a viable venture for investors.  As a part of the review process, issues relating to liberalization and 
commitments under the GATS would be analysed thoroughly. 
121. A local refinery would begin producing ethanol for the North American market in 2005.  
Consideration was being given for the use of ethano l as a replacement for methyl tertiary butyl ether 
(MTBE) in octane fuels, locally.  Jamaica's fi rst commercial wind farm, with 23 turbines, was 
expected to generate enough electricity for 25,0 00 households.  Given Jama ica's relatively high 
expenditure on oil, it was now giving serious at tention to new and renewable sources of energy 
(NRSE);  approximately 9% of Jamaica's energy requirements were met from these sources.  The current revision of the 1995 Energy Policy, woul d encourage the generation of electricity from 
(NRSE).  The policy would set clear and measurable objectives for electricity generated from these 
sources. WT/TPR/M/139 
Page 26 
 
 
122. Jamaica had been commended by several Member s for the bold and impressive developments 
in its telecommunications sector, in particular fo r its full liberalization a decade ahead of its GATS 
commitments.  This had led to tangible benefits  including direct investment of over US$500 million, 
and a more competitive market with lower rates;  Jamaica's tele-density was now over 80%, up from 
30% in 2000.  The telecommunications industry was dynamic, with evolving technologies.  Jamaica 
was aware of the effect that convergence was ha ving in the telecommunication services sector, and 
was currently reviewing its regulatory infrastructure to ensure a framework for efficient, responsive, 
and transparent regulation of the sector whic h would continue to encourage competition and 
investment.  Efforts were also now being made to deepen the benefits of liberalization by improving 
broadband access and prices throughout the island, and to provide the infrastructure needed to open 
up further competition in high speed internet services .  Jamaica was engaged in  a consultative review 
to determine the implications of binding multilate ral commitments in the telecommunications services 
sector. 
123. Regarding the Fifth Protocol to the GATS, a nd the proposed time frame to ratify it, Jamaica 
proposed to sign the Protocol as soon as certain critical and necessary measures for strengthening the 
regulatory and institutional framework of  the financial sector were in place. 
124. The representative of Jamaica re iterated the importance of ta king account, through responsive 
rules, of the particular situations of small deve loping states.  Jamaica recognized that even small 
countries had responsibility within the multilateral trad ing system, and it fully intended to continue to 
meet its obligations and to take advantage of th e opportunities that participation in the multilateral 
trading system brought. 
125. His delegation had circulated responses to almost all of the questions that were received in 
writing, and would exercise the option to prov ide some of the answers at a later date. 
126. The discussant  stated that, in view of the importance of services in the economy, and the very 
impressive record in the telecommunications sector, he looked forward to the outcome of the current 
consultative review on the implications of bind ing multilateral commitments in telecommunication 
services. WT/TPR/M/139 
Page 27 
 
 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
127. This second Trade Policy Review of Jamaica has contributed to a deeper understanding of its 
trade and investment policy regime.  The particip ation of Minister Knight, Ambassador Smith, and 
their delegation greatly contributed to the success of this Review.  I also thank our discussant, 
Ambassador Glenne, and the Members for their many interventions, all of which have contributed a 
great deal to our work. 
128. Members noted that, despite a series of external  shocks and the burden of a large public debt, 
Jamaica has persevered w ith the reform of its economy.  Jamaic a was encouraged to continue these 
efforts, which had yielded consis tent, economic growth.  Members highlighted the overall openness of 
the Jamaican economy, witnessed by the large share of trade in GDP. 
129. Members commended Jamaica for its active par ticipation in the WTO, and for advocating 
increased participation in the multilateral tradi ng system by developing countries.  Jamaica's 
initiatives to advance special and differential treatme nt for developing countries were also noted, as 
were its efforts to enhance south-south trade.  Some Members referred to the difficulties that small 
economies like Jamaica face in their integration into the multilateral trading system.  Different views 
were expressed on how Jamaica could address the cha llenge of adjusting to an environment of eroding 
preferences.  Members noted and praised Jamaica' s participation and leadership in the CARICOM, 
and posed questions with respect to the timetab le for completion of the CARICOM integration 
process. 
130. Members agreed that Jamaica has made significan t efforts to make its trade and investment 
regime more open and transparent, including thro ugh initiatives to speed up and simplify customs 
clearance.  It was observed that Jamaica's applied ta riff has declined since 1998,  but also that tariffs 
on agricultural products have increased for some ite ms while the overall average remains higher than 
on non-agricultural products.  Jamaica was invited to narrow the gap between  applied and bound tariff 
rates in order to enhance the predictability of its trade regime.  Clarification was sought about some 
applied tariffs apparently exceeding bound rates.  Members expressed concern about the use of non-
tariff charges on imports, such as customs fees and stamp duties, noting in particular the impact of stamp duties on certain agricultural products.  Members sought information on the scope and 
economic rationale of Jamaica's various incentive schemes, including export incentives.  Questions 
were also posed on other measures such as technical regulations, state-owned enterprises, SPS 
requirements, and IPRs. 
131. Jamaica was commended for its liberalization of  financial services and telecommunications 
but was invited to review the monopoly conditions in the electricity sector.  The importance of 
tourism for Jamaica's economy was highlighted.  Seve ral Members noted that Jamaica has to date not 
ratified the Fifth Protocol to the GATS and encouraged it to do so.  Jamaica was also urged to table an 
offer in the current negotiations on services. 
132. I thank Jamaica for the written answers to Me mbers' questions and we look forward to 
receiving the outstanding answers. 
133. In conclusion, Members acknowledged the progre ss made by Jamaica in restructuring its 
economy, while recognizing the challenges it face s on account of changes affecting the world 
economy.  Whether those changes are for the bene fit of all depends in a fundamental manner on 
efforts within the multilateral trading system, a nd thus Members expressed great appreciation for 
Jamaica's contribution to our collective endeavours in this regard.  In a spirit of open dialogue, 
Members also offered their views on both Jamaica's domestic policies and its negotiating agenda.  To 
succeed, the two must complement each other.  I he nce welcome Jamaica's plans to continue with its WT/TPR/M/139 
Page 28 
 
 
internal reform process, and its active engagement  in the Doha Development Agenda, both of which 
will decisively influence Jamaica's future development. 
134. Finally, Minister Knight and Ambassador Smith, thank you:  you have been instrumental in a 
good review of Jamaica's trade policies. 
__________