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Press release:
Reducing market distortions could foster growth
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This second Trade Policy Review of Jamaica has contributed to a deeper
understanding of its trade and investment policy regime. The
participation of the Honourable Minister Knight, Ambassador Smith and
their delegation greatly contributed to the success of this Review. I
also thank our discussant, Ambassador Glenne, and the interventions
from many Members, all of which has contributed a great deal to our
work.
Members noted that, despite a series of external shocks and the burden
of a large public debt, Jamaica has persevered with the reform of its
economy. Jamaica was encouraged to continue these efforts, which had
yielded consistent, economic growth. Members highlighted the overall
openness of the Jamaican economy, witnessed by the large share of
trade in GDP.
Members commended Jamaica for its active participation in the WTO, and
for advocating an increased participation in the multilateral trading
system by developing countries. Jamaica's initiatives to advance
special and differential treatment 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 faced
in their integration into the multilateral trading system. Different
views were expressed on how Jamaica could address the challenge 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 timetable for completion of the
CARICOM integration process.
Members agreed that Jamaica had made significant efforts to make its
trade and investment regime more open and transparent, including
through initiatives to speed and simplify customs clearance. It was
observed that Jamaica's applied tariff had declined since 1998, but
also that tariffs on agricultural products had increased for some
items while the overall average remained 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.
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. Several Members noted that Jamaica had 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.
I thank Jamaica for the written answers to Members' questions and we
look forward to receiving answers to outstanding questions.
In conclusion, Members acknowledged the progress made by Jamaica in
restructuring its economy, while recognizing the challenges it faces
on account of changes affecting the world economy. Whether those
changes are for the benefit of all depends in a fundamental manner on
efforts within the multilateral trading system, and 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 hence welcome Jamaica's plans to continue with its internal
reform process, and its active engagement in the Doha Development
Agenda, both of which will decisively influence Jamaica's future
development.
Finally, Minister Knight and Ambassador Smith, thank you: you have
been instrumental in a good review of Jamaica's trade policies.
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