A Thought-Provoking Letter!

[Historian]

This letter actually raises a very important issue, an issue that I have tried to promote in the past here on this forum.
issue:Restrict CARICOM imports

Published: Saturday | May 23, 2009

The Editor, Sir:
For some time now I have noticed that Jamaica has far more CARICOM products on the shelves in supermarkets than Jamaican products on the shelves of those supermarkets I have visited in other CARICOM member states. The list is long and includes a wide variety of soft drinks, alcoholic beverages, canned foods, biscuits and snacks, dog food, cat food, detergents and cleaners, tissues and related products, to even coconut milk.

As I go between countries I realise that they all have one thing in common - they promote the idea of their citizens buying locally. The radio, television and printed media bombard with this drive. I think they may even teach it to students in schools as I had an experience recently that left me bewildered. A child no more than ten years told me that she is 100 per cent (a particular nationality) because she was not only born there, but only buy her country's products. She, of course, referred mainly to snacks and biscuits and soft drinks. Further questions to her revealed that her teacher had told her this.

There are some Jamaican products in these territories, but not anything to 'write home about'. Some countries export as much as 40 per cent of their manufactured goods to CARICOM, while others are in the high 30s and high 20s. Jamaica only exports seven per cent to CARICOM. At first glance, it could be a number of things contributing to this situation. Lack of proper marketing, not producing enough, lack of interest in CARICOM markets, and the list goes on. But I believe that the main contributing factor is the interest that other CARICOM governments take in importing from Jamaica.

It is time that we as Jamaicans take steps to rectify this situation. If others will not open their markets to us as we do to them, then cut back on the levels of importation from them. Many times they make it difficult for us to export to them by putting in place stringent measures on imported goods. We should do the same.

I am, etc.,
NEBERT PRYCE nebertpryce@yahoo.com

[Assasin]

[Hortical]

Jamaica desperately needs to produce more products for export. To use one person's views to justify limiting imports from CARICOM countries is simplistic.

[Comment]

No.......there is merit to this argument. Juici Patties, by way of example, have been trying for years to get approval to sell in Trinidad.

[Historian]

Not so, Hortical

Jamaica desperately needs to produce more products for export. To use one person's views to justify limiting imports from CARICOM countries is simplistic.

Hortical: Actually my position on Jamaica’s economic relationship has absolutely nothing to do with this letter. I am very familiar with CARICOM and CSME arrangements and functions, but I used this letter as a reference for today’s post simply because of convenience. Trust me when I say that there is nothing “simplistic” about my position on the matter.

Comment: You have made a very timely and certainly very relevant illustration.

Jamaica's costly affair with CARICOM
published: Sunday | August 10, 2008

Claude Clarke, Contributor


Clarke

It has always been assumed that CARICOM is of great economic benefit to Jamaica. Certainly, Jamaica for a long time has had a somewhat romantic fascination with the idea of Caribbean integration and many of our leaders have been passionate advocates of regionalism. However, given the fact that economic unions exist principally to advance the economic interest of each of its member nations, the case for Jamaica's participation in CARICOM bears closer examination.
Caribbean free trade began in the 1960s and Jamaica's benefit in the early years cannot be disputed. Exports grew impressively and reached US$85 million by 1982, representing 15 per cent of total exports. This gave us a trade surplus with CARICOM of US$25 million. So well did we do that in 1982, Trinidad introduced an import-licensing regime, purportedly for monitoring purposes, but which in execution, turned out to be a trade embargo directed at specific Jamaican exports.


competitive advantage
The Trinidadian manufacturers justified their government's actions with the claim that Jamaica had gained a competitive advantage by devaluing its currency. They further argued that payments for their shipments to Jamaica were being delayed by exchange-control regulations in Jamaica. It was my guess at the time that the Trinidadian producers calculated that a cessation of trade with Jamaica would be in their interest, as they would lose little from the then relatively weak Jamaican market, and gain much by keeping Jamaican goods out of Trinidad, which at the time was characterised by very strong demand for consumer products.

I well recall during meetings arranged in an effort to end the embargo, the Trinidadian manufacturers using the analogy of a funnel to demonstrate how the rest of CARICOM (substitute Jamaica) was pouring their products into Trinidad, with Trinidad having the much more difficult task of getting its goods back up the funnel to their markets.

precipitous decline
The embargo resulted in a precipitous decline in Jamaica's trade with CARICOM, with both exports and imports being cut by half. After five years, Trinidad lifted its embargo in 1988, apparently after it was satisfied that new government- policy initiatives had improved the competitiveness of its manufacturers. Jamaica's exports recovered and reached US$71 million by 1991.


Full article http://www.jamaica-gleaner.com/glean...cleisure2.html

[Historian]

Nevertheless....

Having said the above, it is only fair to note as well the role of Jamaica’s government and private sector in this disadvantageous position in which we find ourselves today.

The following is taken from Claude Clarke’s article above:

“However, as substantial as these negatives are, there might well have been positives to outweigh them if there was anything approaching the growth in exports to the region that there was for imports from the region. But exports, instead of growing, have contracted. Since 1991, they have declined by 25 per cent, or by 50 per cent if adjusted for inflation. As a result, much of Jamaica's wealth has been shifted to the Eastern Caribbean. Through the persistent trade deficit with CARICOM, Jamaica has transferred over US$6 billion, or over US$7 billion if adjusted for inflation, to the Eastern Caribbean since 1991. This is almost 80 per cent of our gross domestic product, and 100 per cent of our entire external debt.”

[HL]

Jamaica is an inefficient country.

The main problem is that there are very few (if any) quality systems in place. And this inefficiency/poor quality--applies to both service and manufacturing businesses. (Government ministries in Jamaica take inefficiency and poor quality to another level....).

The problem (I think) will always remain--since 'Jamaicans' generally know everything...and are resistant to change.

SIDEBAR:

I exclude the tourism industry from the above appraisal.

[Assasin]

with all a that inefficiency the nuff a the other countries them actually put up barriers to Jamaican good. Time for a even playing field.

[Hortical]

As stated above, production is very inefficient in Jamaica. Before knee jerk embargo wishes, you have to first examine why Jamaica is importing so much from foreign lands, and what can't those items be produced locally.

Do you know that a lot of the fruits & vegetables provided in the hotels are imported?

[Assasin]

while we are not as productive as we should be it is not only a question of productivity. It is a greed, as politicians get more if they give their friend and imported license. They don't pay the right duties and in some case substandard goods are been imported like box juice with expired date which is sold cheeper than anything produced.

A lot goods is brought from overseas for hoteliers why the local produce rot in the field so the farmer give up. You remember when a certain resturant said they couldn't use Jamaican potato to keep standard of their chain? I wouldn't buy from that chain.

We need policy makers to look out for business and the consumer and also encourage productivity. It was good that Samuda confronted Trinidad on their policy they have been using for the longest time to keep out Jamaican goods. There are few efficient companies in Ja and they shouldn't suffer because of unfair policies toward them.