Elizabeth Morgan | Local expos and increasing Jamaica’s exports

My weekend was spent at the Jamaica Expo, ‘Connecting the world to Jamaica’, at the stadium complex and at the Jamaica Horticultural Show, ‘Still Growing Strong’, at their Hope Pastures location. For both exhibitions, it was the continuing revival following the COVID restrictions. The Jamaica Orchid Society had had their show ‘An Orchid Reawaking’ at the beginning of April. These exhibitions are all linked to international trade and the possibilities for creating jobs and earning foreign exchange.

HORTICULTURE – CUT FLOWERS AND FOLIAGE

It was nice to visit the horticultural show though it is not what it used to be and it became clear that an export potential is not being realised. Of course, horticulture is a branch of agriculture. There was a great deal of enthusiasm in the 1980s about exporting cut flowers and foliage. My impression is that the enthusiasm waned drastically from the 1990s onward for reasons which may include inclement weather, praedial larceny, and competition from Latin American producers.

Statistics from the Statistical Institute of Jamaica (STATIN) indicate that in 1990, Jamaica exported about US$3 million in cut flowers, foliage and live plants, but the exports fell off and, by 2019, were valued at US$52,000.

Imports have remained small but steady. In 2019, imports were valued at US$899,000. Statistics from other sources show Jamaica exporting US$22,000 in 2021 and importing US$1.1 million. So, it seems that any major production of cut flowers, foliage and live plants for export is not on the agenda in Jamaica.

Cut flowers, orchids, foliage, and live plants may be growing strong but primarily to meet local decorative demand and for those still having the luxury of garden space or can get a few potted plants to grow in their homes. Even the landscaping of the new housing complexes is not promoting gardens using varied local plants, and public gardens are not high on the list of priorities, even with talk about the need for recreational spaces and preservation of local flora, even for tourism.

THE JMEA EXPO

I have been examining Jamaica’s goods exports in this column since 2018. I have made the point that the gap left in the fallout of Jamaica’s traditional exports of sugar, bananas, and other agricultural products, as well as textiles and clothing and ethanol, has not been filled by current non-traditional exports, even though growth has been registered. The trade agreements to which Jamaica is a party, which provide reciprocal and non-reciprocal preferential market access, remain underutilised.

Touring the JMEA Expo, I cannot say that I saw products on display which will fill the export gaps, connecting the country more securely to export markets. I saw a lot of sauces, jams, jellies, ketchups, and salad dressings. Some were novel ideas. I saw hair and skincare products, and at least one set of hair products which was very interesting. I was assured that most of these products were made from local raw materials and emphasised natural products. I was told that buyers viewing the products on the Thursday and Friday were interested and there were orders. There were some exhibitors who were already exporting into North America, the United Kingdom, and the CARICOM markets.

I am actually concerned about the quantity of the products being exported and their potential for growth. I am also wondering about their sustainable linkages with the agriculture and tourism sectors. Of course, most of the producers are micro and small enterprises who need encouragement and support. It is important for them to use the services of the Jamaica Intellectual Property Office (JIPO).

On the services side, there were some service providers who mainly seemed to be concentrating on the domestic market. Goods and services (logistics) are interlinked.

THE EXPORT GAP

In 2021, Jamaica’s total exports to the world was valued at US$1.4 billion, while imports were valued at US$5.9 billion, with the deficit being – US$4.5 billion. It has been that earnings from exports of goods and services combined have not filled this gap. From services, Jamaica earned about US$2.1 billion from tourism in 2021.

Under the trade agreements to which Jamaica is a party, total exports in 2021 were as follows:

USA – US$730.3 million

Canada – US$98.4 million

Britain – US$63.7 million

EU27 – US$186.04 million

CARICOM – US$113.3 million

Costa Rica – US$4.0 million

Colombia – US$1.3 million

Venezuela – US$15,000

Cuba – US$3.0 million

Dominican Republic – US$2.7 million

Total exports under trade agreements amounts to US$1.02 billion. There is room to export much more to these countries. But were buyers from some of these countries, such as those in Latin America, at the Expo, and, if so, were they among those interested and placing orders?

Looking specifically at the US market using statistics from US Census:

In the 1990s, Jamaica’s imports from the US averaged US$1.2 billion, and exports averaged US$707 million.

In the 2000s, the figures averaged are as follows:

2000-2009: imports – US$1.72 billion; exports – US$507 million

2010-2022: imports – US$2.05 billion; exports – US$389.0 million

Exports to the US have basically trended down since the end of the 1990s, while imports have trended up, making trade in the US’s favour. How many new orders were secured at the Expo from US importers?

On the goods side, to register real growth, Jamaica’s manufacturing and agriculture have to be producing goods which will generate and sustain large orders from importers (including hoteliers) and will have longevity promoting expansion in production. There is a lot of work to be done in production and export of goods and services.

Elizabeth Morgan is a specialist in international trade policy and international politics. Email feedback to columns@gleanerjm.com