Governments of Jamaica and Canada agree that both countries enjoy a mutually beneficial relationship. The 1975 pact between the countries formalised and gave structure to a strong partnership that saw Jamaica benefitting from grants and loans and technical support.

Published Tuesday, May 6, 1975

Canada–Jamaica Development Pact signed

A DEVELOPMENT COOPERATION agreement between the Government of Canada and the Government of Jamaica was signed at Jamaica House yesterday.

Prime minister of Canada, the Rt Hon Pierre Trudeau, signed on behalf of his country and Honourable Michael Manley, the prime minister, signed on behalf of Jamaica.

In the main, the agreement provides

(a) assistance in the form of goods and services for specific programmes and projects agreed upon from time to time between the two governments – such assistance to be in the form of grants and loans;

(b) exemption from Jamaican taxes of goods and services paid for from funds made available by Canada;

(c) entering into subsidiary arrangements, notes or memoranda by the two governments which relate to terms and conditions of loans and grants;

(d) responsibilities of each government in respect of support services, particularly in the case of technical assistance, local cost financing, etc;

(e) indemnity to Canadian firms and Canadian personnel engaged on projects financed under the agreement from civil liability, except in cases of willful misconduct or actionable negligence arising from failure to meet accepted professional standards in relation to the implantation of projects.

The agreement will remain in force for at least five years, after which it will be automatically extended for further five-year periods unless it is terminated by either party.

Declaring that the agreement was long overdue, Prime Minister Manley said, “Jamaica and Canada have always maintained the closest and most cordial relationships. Canada has over the years shown great interest in, and sympathy with, Jamaica’s efforts in relation to the social and economic development of our country. Canada has provided substantial development assistance in education, including the National Literacy Programme; infrastructure development, including the construction of small bridges; rural areas and the mounting of a comprehensive transport survey; and industrial development through loans to the Development Bank of Jamaica.”

The prime minister concluded by expressing gratitude for the “tremendous help” to Jamaica.

Thanking Mr Manley for his remarks, Prime Minister Trudeau said, "The Government and people of Canada are very happy that the Government and people of Jamaica are using this form of assistance in such an efficient way, a way which tends towards the fulfilment of the humanitarian objectives and goals which it is designed to achieve.”

The Canadian High Commission yesterday released the following information:

The new agreement provides a framework for cooperation in both capital and technical assistance projects and reflects the expansion and diversification of Canadian development assistance to Jamaica which has totalled approximately $26 million over the past 10 years.

Grants, Loans

Canadian development assistance to Jamaica consists of both grants and loans. Grant funds are provided for Canadian technical assistance, study awards for Jamaican counterparts, and capital equipment. Loan funds are provided at an interest rate of 3 per cent with a 30-year repayment period and a seven-year period of grace.

Prior to 1973, Canada’s programme sought to concentrate on four major areas of activity: natural resources, transportation, agriculture and education. Assistance was primarily programme-oriented rather than project-oriented, and tended to support basic infrastructural development in these broad areas.

Canadian assistance has now shifted towards integration with the new development strategies proposed by the Government of Jamaica in support of a primary goal of productive employment growth.

Efforts are currently being made to tackle the major development problems of unemployment, income distribution and balance of payments. To this end, Canadian projects are being directed towards

(A) improving the performance of the agricultural sector with emphasis on production and marketing;

(B) providing assistance to export-oriented industries and import substitution industries which will stimulate employment growth;

(C) extending technical/vocational training capabilities to alleviate the shortage of skilled sub-professional personnel;

(D) assisting the country’s administrative structure for project planning and implementation. In all projects in which Canada is involved, the Government of Jamaica provides counterpart funds, personnel and other facilities.

Canada’s 1975/1976 bilateral programme anticipates an expenditure of approximately four million dollars in loans and one million in grants.

Additional Canadian government assistance is provided through multilateral agencies and Canadian charitable organizations.

Jamaica also benefits from Canada’s involvement in a five-year, $10-million programme of the West Indies which focuses on education, engineering, management studies and agriculture.

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