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PRESS RELEASE
PRESS/TPRB/86
2 November 1998TRADE
POLICY REVIEW BODY: REVIEW OF JAMAICA
TPRB'S EVALUATION Back to top
The Trade Policy Review Body of the
World Trade Organization (WTO) concluded its first review of Jamaica's trade policies on
29 and 30 October 1998. The text of the Chairperson's concluding remarks is attached as a
summary of the salient points which emerged during the discussion. The review enables the
TPRB to conduct a collective examination of the full range of trade policies and practices
of each WTO member country at regular periodic intervals to monitor significant trends and
developments which may have an impact on the global trading system.
The review is based on two reports
which are prepared respectively by the WTO Secretariat and the government under review and
which cover all aspects of the country's trade policies, including its domestic laws and
regulations, the institutional framework, bilateral, regional and other preferential
agreements, the wider economic needs and the external environment. A record of the
discussion and the Chairperson's summing-up together with these two reports, will be
published in due course as the complete trade policy review of Jamaica and will be
available from the WTO Secretariat, Centre William Rappard, 154 rue de Lausanne, 1211
Geneva 21.
Since December 1989, the following
reports have been completed: Argentina (1992), Australia (1989, 1994 & 1998), Austria (1992), Bangladesh
(1992), Benin (1997), Bolivia (1993), Botswana (1998), Brazil (1992 & 1996), Cameroon
(1995), Canada (1990, 1992, 1994 & 1996), Chile (1991 & 1997), Colombia (1990
& 1996), Costa Rica (1995), Côte d'Ivoire (1995), Cyprus (1997), the Czech Republic
(1996), the Dominican Republic (1996), Egypt (1992), El Salvador (1996), the European
Communities (1991, 1993, 1995 & 1997), Fiji (1997), Finland (1992), Ghana (1992), Hong
Kong (1990 & 1994), Hungary (1991 & 1998), Iceland (1994), India (1993 &
1998), Indonesia (1991 and 1994), Israel (1994), Jamaica (1998), Japan (1990, 1992, 1995
& 1998), Kenya (1993), Korea, Rep. of (1992 & 1996), Lesotho (1998), Macau (1994),
Malaysia (1993 & 1997), Mauritius (1995), Mexico (1993 & 1997), Morocco (1989
& 1996), New Zealand (1990 & 1996), Namibia (1998), Nigeria (1991 & 1998),
Norway (1991 & 1996), Pakistan (1995), Paraguay (1997), Peru (1994), the Philippines
(1993), Poland (1993), Romania (1992), Senegal (1994), Singapore (1992 & 1996), Slovak
Republic (1995), the Solomon Islands (1998), South Africa (1993 & 1998), Sri Lanka
(1995), Swaziland (1998), Sweden (1990 & 1994), Switzerland (1991 & 1996),
Thailand (1991 & 1995), Tunisia (1994), Turkey (1994 & 1998), the United States
(1989, 1992, 1994 & 1996), Uganda (1995), Uruguay (1992), Venezuela (1996), Zambia
(1996) and Zimbabwe (1994).
TRADE POLICY REVIEW BODY:
REVIEW OF JAMAICA
CONCLUDING REMARKS BY THE CHAIRPERSON Back
to top
The first Trade Policy Review of
Jamaica was conducted by the TPR Body on 29-30 October 1998. These remarks, prepared
on my own responsibility, are intended to summarize the main points of the discussion;
they are not intended as a full report. Details of the discussion will be fully reflected
in the minutes.
The discussion developed under three
main themes: (i) economic environment; (ii) trade policy measures; and (iii) sectoral
policies.
Economic environment
Members congratulated Jamaica on its
structural reform, underpinned by prudent macroeconomic management. In consequence,
inflation had been significantly reduced and the economy had become more efficient and
outward oriented. Members noted, however, that challenges remained, including high
unemployment and a substantial internal debt; in view of the large trade deficit, they
also asked about the competitiveness of Jamaica's exports, particularly given rising unit
labour costs and recent real appreciation of the currency. Members sought assurance on the
Jamaican policy response, including with respect to the investment environment.
Members welcomed Jamaica's strong
commitment to the multilateral trading system and stressed the view that Jamaica's growing
regional links should continue to complement its contribution to the system. They asked
about the coordination of Jamaica's trade policies with CARICOM and the effect of the
erosion of preferences on Jamaica's exports; in this respect they inquired about efforts
to diversify both Jamaica's export product mix and markets.
The representative of Jamaica
reiterated his country's commitment to an open, multilateral trading system. He felt that
the benefits of the system were not always equally distributed, which should be addressed,
as otherwise it might be difficult to maintain wide-ranging support for it. With respect
to regional trade policy, he indicated the steps taken by CARICOM to deepen economic
integration, and noted that Jamaica was progressively increasing the coordination with
CARICOM, with the goal of moving to a Single Market.
On the issues raised by Members, the
representative of Jamaica said that government policy aimed at achieving macroeconomic
stability including inflation control and reducing exchange rate volatility; given the
high import content of Jamaican production and consumption he was not sure that export
competitiveness would be improved by currency depreciation. With regard to diversifying
export products and markets, a number of initiatives were being taken including niche
market promotion and improved techniques for innovation and product development. He
recognized the concerns raised regarding the build-up of internal imbalances; these would
be addressed through continued use of disciplined macroeconomic policies, improved
productivity and enhanced cooperation among social partners.
Trade policy measures
Members welcomed the many
trade-liberalizing measures taken by Jamaica in recent years; these included a lowering of
tariffs, an elimination of quantitative restrictions and a reduction in the scope of
import licensing. These measures had been integral to the creation of a more
market-oriented economy, and had also encompassed the removal of price controls,
privatization and financial sector reform. In encouraging Jamaica to continue with these
efforts, Members raised a number of questions particularly with respect to: high border
charges, including additional duties; customs valuation; import and export licensing;
anti-dumping and government procurement procedures; the updating of standards; and the
system of incentives, especially subsidies and tax allowances. Questions were also posed
on intellectual property rights and competition policy, as well as on Jamaica's efforts to
amend domestic legislation to give effect to the WTO obligation.
In reply, the representative of
Jamaica stated that his country would continue with trade-opening measures. Jamaica would
move to Phase IV of the revised Common External Tariff (CET) and adopt the six-digit
tariff structure HS96 in January 1999. Clarification was provided on the application of
other levies and charges, including additional duties, on imports; there was no immediate
plan to reduce them but taxation review was in progress to simplify and improve
compliance. Jamaica's tariff schedule would be shortly submitted to the WTO Integrated
Data Base. On customs valuation, he accepted that the publication of reference prices
would improve transparency, and he clarified aspects of the Fair Competition Act.
Jamaica was actively working on
amending its legislation and procedures in a number of areas, including TRIPS,
anti-dumping, standards, government procurement and customs valuation. The representative
of Jamaica stressed the need for technical assistance to strengthen the capacity of small
trading partners to meet reporting obligations under the WTO and to fully exercise their
rights.
Sectoral and structural issues
Members acknowledged the challenges
faced by Jamaica as a small island economy and welcomed its efforts to encourage a more
efficient sectoral allocation of resources. A number of questions arose, particularly with
respect to agriculture, textiles and clothing, and services. On agriculture, Members asked
about issues such as high tariffs, preferential interest-rate schemes and other subsidies,
and efforts to increase the role of the private sector. With respect to textiles, some
questions arose about the industry's cost structure, particularly with respect to labour,
and about access to the U.S. market. On services, Members welcomed Jamaica's commitments
in the GATS and encouraged a broadening of their scope, particularly in financial
services. A number of questions were raised on specific issues, including about
"exclusive rights" provisions in telecommunications and the MFN exemption in
maritime transport.
The representative of Jamaica
replied, that agricultural policies should reflect concerns about rural development,
poverty alleviation and the building of competitiveness, as well as Jamaica's WTO
commitments. Detailed information was provided regarding milk production programmes and
state trading enterprises in the sector. He stressed that Jamaica did not use agricultural
export subsidies. Regarding textiles, details were provided with respect to the Caribbean
Basin Initiative preferential regime.
The Jamaican representative noted
that his delegation would provide further written answers in some areas, including
licensing, additional duties, financial services, telecommunications and tourism.
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Conclusions Back
to top
In conclusion, Members expressed
appreciation for Jamaica's active participation in, and contribution to the work of the
WTO. It is also my sense that Members strongly welcomed the many steps that Jamaica has
already taken in becoming a more open, outward-oriented economy that is integrated into
the multilateral system; they acknowledged the challenges faced by Jamaica as a small
economy. It is felt that a continuation of Jamaica's trade-opening efforts would
consolidate the basis for steady, sustainable growth; in this respect, the support of
Jamaica's trading partners will also be important. |
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