JEA urges political parties to reveal growth policies

Concurrently, Industry Minister Christopher Tufton stated that 62 companies are preparing for audits by the United States Food and Drug Administration (FDA) as part of measures to meet a new US trade law.

"As the country anticipates the holding of general election within the coming weeks, the JEA calls on Prime Minister Andrew Holness to outline his programmes to stimulate investment and production. We are looking forward to hearing from both parties the strategies they intend to implement to address unemployment and to re-engage marginalised communities," said Vitus Evans, JEA president, on Thursday at the JEA's 46th annual general meeting held at the Knutsford Court Hotel in Kingston.

Jamaica's trade deficit - the difference between its merchandise imports and exports - widened to US$805.4 million for the period January to June 2011, a 40 per cent decline over year-earlier levels, according to Bank of Jamaica data.

Evans acknowledged that reducing the debt remained a "dire necessity" but wants Government to actively stimulate growth through fiscal spending. This ought to be done, notwithstanding the fiscal conditionalities proposed by the International Monetary Fund (IMF), he said.

Government obtained a  US$1.3-billion standby agreement with the IMF in February 2010. It resulted in the equivalent of some US$811 million disbursed to date but the IMF stalled further disbursements pending the implementation of tax and public-sector reform and a raft of measures, including new legislation, to strengthen the economy and financial sector.

Evans said that his lobby remains concerned but vigilant in addressing the new requirements under the US Food Safety Modernisation Act to take effect in January.

"A significant number of exporters within the food industry are concerned about the implications of the Food Safety Modernisation Act ... . We must be concerned about this as approximately 50 per cent of our non-traditional food exports go to that market," Evans said.

"While our export firms work to ensure their compliance, we are asking the Government to ensure that the relevant support agencies are also compliant and that agencies such as the Scientific Research Council, Bureau of Standards and AMC Complex are all upgraded."

Tufton told the JEA at the annual general meeting that his ministry would upgrade private and public labs in order to facilitate exporters. Up to late last month, none of Jamaica's 83 private and public labs were certified for food-safety tests, according to management at Jamaica National Agency for Accreditation (JANAAC).

Currently, just one fifth of Jamaican food exporters are considered sufficiently up to code to pass the stringent scrutiny that the law will impose. Under the pending regime, food must be tested by an accredited laboratory before shipments are allowed entry to US ports. Also, a rigorous documentation of the supply chain must be done.

"Of the 62 companies that will be audited, 10 firms assessed are ready for the FDA; 24 require some amount of work; 14 stated that they require substantial work; and another 14 are nowhere," he said. "It gives us a roadmap of where we need to go and what needs to be done."

Earlier this month, reports surfaced that the audits of these food-processing companies were postponed fuelled a political quarrel over the readiness of Jamaica's food processors to meet American standards. The Opposition initially claimed that food exports were temporarily banned but the US Embassy in Kingston denied that claim.

business@gleanerjm.com