Gov't must level manufacturing playing field

On June 10, 2013, The Gleaner published its weekly column The Gavel with the title 'Beyond the T&T smokescreen'. The article is not only full of innuendoes, but misleading.

For example, accusing the Jamaican private sector of not being competitive, and that they build their businesses on getting waivers, is simply reckless, to say the least.

Maybe The Gavel wishes to explore the burden of doing business in Jamaica (i.e., bureaucracy, obtaining a loan, cost of energy, cost of security, clearing customs, incongruent taxes) and, on top of that, being taxed to death from raw material to finished product.

While Trinidadian finished products clear our customs in days (duty free), our local manufacturers are paying duties and waiting weeks for their raw material.The reality is that our environment is NOT business friendly! Maybe that is why Jamaican companies (i.e., GraceKennedy) invest elsewhere.

In the matter of supply and demand, The Gavel should take note that supply and demand in a competitive environment only works in favour of the consumer (i.e., value for money) if the "playing field is level". The Gavel should explore what would happen to the products out of Trinidad if we levelled the playing field and gave other countries the same duty-free status.

Trinidadian products come in droves because they are SUBSIDISED and PROTECTED by the Common External Tariff - not necessarily because Trinidad is more efficient and productive than Jamaica or other countries - and the Jamaican people are bearing the price.

We must remove the subsidy advantage from the products out of Trinidad, ensure that they are of CARICOM origin, and thereby level the playing field.

MAJOR CONCERNS REMAIN

The Opposition spokesperson on foreign trade and foreign investment, Senator Christopher Tufton, has advised: "... Regional collaboration within the Caribbean has been beneficial in critical areas such as education, disaster risk management, security and international lobbying. On issues of trade between Jamaica and Trinidad, however, there remain major concerns, particularly on issues related to energy subsidy and rules of origin, under the revised treaty."

The question is, what is our Government going to do about it? Blaming and putting the onus solely on the Jamaican manufacturers to challenge the Trinidadian manufacturers and their government is ridiculous.

The Gavel should enquire how the government of Trinidad built its manufacturing industry, from as far back as the 1970s, and continues to support it, through thick and thin, even today!That is where we have failed. The Jamaican Government needs to start working along with our manufacturers and help them build this sector, which would consequently provide Jamaica with more tax revenues and generate much-needed jobs.

The truth is, we have not done enough as a nation to support our own.

Finally, The Gavel is misleading. It states, "This is the same Mair who says Jamaica should leave CARICOM ... ." I have never said so. What I have repeatedly said is that it does not make sense to be part of a trade arrangement where Jamaica does not benefit. Hence, it needs to be revisited.

Gregory Mair is opposition spokesperson for industry, commerce and energy. Email feedback to columns@gleanerjm.com and gregorymair@desmondmair.com.