Elizabeth Morgan | Jamaica’s 2024 WTO Trade Policy Review

In my article of November 8, 2023, I wrote about Jamaica’s pending six-yearly trade policy review at the World Trade Organization (WTO). This is a transparency mechanism to see how members are implementing the WTO agreements.

In November, Jamaica was in the preparatory process for this review which involved a visit to Jamaica by the WTO secretariat’s technical team. The review required the preparation of a comprehensive report by the WTO secretariat and a report by the Government of Jamaica. Note that the reports can be viewed at the WTO’s website.

The WTO’s fifth review of Jamaica’s trade policies and practices took place on July 10-12 in Geneva, Switzerland, before fellow members of the organisation.

Jamaica’s delegation was led by Senator Kamina Johnson Smith, minister of foreign affairs and foreign trade, which is an indication of the importance which Jamaica attaches to this WTO review.

The WTO secretariat’s report reflects Jamaica’s situation in trade since 2017 as a small island developing state which is vulnerable to internal and external shocks. This, as customary, has not been a smooth journey for the country, which has been impacted by the COVID-19 pandemic, by war in Ukraine, and by natural disasters, especially the recent encounter with Hurricane Beryl.

Jamaica has been struggling for years to increase and diversify its exports. Thus, in reviewing the secretariat’s report, one is left with the feeling that not much progress has been made since 2017 in advancing Jamaica’s trade policies and practices.

The hope was that with a new national foreign trade policy, adopted in 2018, Jamaica would have made greater progress in modernising its trade practices and in preparing itself and its private sector to be better able to participate in trade negotiations, especially at the bilateral level. This was not to happen, especially in the period after March 2020.

The Government’s report points to achievements in macroeconomic policy to maintain fiscal prudence and achieve continued success under its economic reform programme. There have been reforms in customs procedures through implementing the Jamaica Single Window for Trade.

Jamaica also made advances in its implementation of the WTO Agreement on Trade Facilitation. There were also improvements in Intellectual Property Rights, as the 2020 Patents and Designs Act was implemented and an effort continued to improve the intellectual property regime overall. Measures taken on trade and the environment, particularly plastics, was also noted.

VIEWS OF MEMBERS

At the conclusion of the meeting at WTO Headquarters in Geneva, the chairperson of the Trade Policy Review Body summarised the views of participating members as follows:

• Expressed their deepest sympathy and solidarity with the Jamaican people for the devastation caused by Hurricane Beryl.

• Noted that the increasing intensity and frequency of natural disasters due to climate change requires members to stand together in support of one another in order to overcome environmental challenges.

• Noted that Jamaica, as a small island economy, considered trade and the multilateral rules-based system as essential to promoting its socio-economic development and enhancing the resilience of its economy.

• Congratulated Jamaica on its economic recovery from the pandemic, due mainly to a comprehensive support programme.

• Noted that the country sustained growth by the rebound in tourism and remittances.

• Highlighted Jamaica’s success in fostering a stable macroeconomic environment, including reducing its debt to GDP ratio and inflation.

• Noted Jamaica’s socio-economic achievements.

• Urged Jamaica to diversify its economy beyond tourism and minerals, and expand its export portfolio to higher value-added products. This shift was considered essential to reducing its vulnerability to external shocks and to promoting the green transition and digital transformation.

DIVERSIFYING THE ECONOMY AND EXPORTS

The challenge for Jamaica over several decades, and previous trade policy reviews, has been diversifying its economy and exports. This can be much easier said than done and is a challenge for small states at the WTO.

Under WTO rules, what seems to be expanding is imports and not exports. The WTO needs to actually examine seriously the needs of small, vulnerable economies as was proposed by the decision adopted at the 13th Ministerial Conference.

Diversifying exports means that Jamaica has to be able to attract investments to produce higher value-added products. To do this, Jamaica has to be able to implement all its various policies adopted through the years, which include on creative and cultural industries, many of which have not been fully implemented. It also has to be able to reduce the cost of production, which includes reducing the cost of energy and looking at implementing renewable energy.

Jamaica’s producers also have to be able to meet demand, producing consistent supplies of products, for example, cosmetics and hair care products, which meet international standards.

Since COVID-19, Jamaica has talked a lot about “building back better” and building a more resilient economy. Hurricane Beryl has exposed weaknesses in the Jamaican infrastructure and poor maintenance and construction. So, “building back better” and diversifying the economy and exports cannot just be continued talk in this age of climate change.

Jamaica’s next WTO Trade Policy Review is due between 2030 and 2031. This is an important date as it coincides with the end of the development plans at the local, Vision 2030 Jamaica, and international levels, the UN Sustainable Development Goals (UNSDGs).

For that report, can we hope that Jamaica will have made actual progress in diversifying its economy and exports, having prioritised building a more resilient economy and actually receiving financing to support this initiative?

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