EU VS. UK
Brexit offers Jamaica a chance to renegotiate better terms for an old trade agreement with the EU, or pursue a new path with the UK and Commonwealth of Nations.
Brexit drew initial panic from and for Caribbean countries. However, the real economic impacts—largely based on remittances and tourism—have been minimal thus far, according to the Inter-American Development Bank (IDB). Unemployment proves to be of greater concern to Jamaicans than Brexit.
However, with Brexit negotiations further underway, economic and trade agreements are seeing revived attention. Of greatest interest to Jamaica is the economic partnership agreement (EPA) between CARIFORUM (Caribbean Community plus the Dominican Republic) and the EU. Without a transitional, and eventually finalized, trade agreement with the UK, Jamaica and other Caribbean nations lose a major trade partner when the UK officially leaves the EU.
This situation leaves Jamaica and CARIFORUM in flux in terms of trade partnerships, and both London and Brussels are vying for the attention of the Latin American and Caribbean region.
Meetings to figure out the future of trade between the UK, the EU, and Latin America and the Caribbean abound. Trinidad and Tobago, in 4Q2017, hosted the third meeting of the CARIFORUM-EU EPA Joint Parliamentary Committee “to chart a new way forward for CARIFORUM-EU priorities.”
At the fourth meeting of the EPA's Joint CARIFORUM-EU Council in Brussels in November 2017, Jamaica's Hon. Kamina Johnson Smith, Minister of Foreign Affair and Foreign Trade, led the CARIFORUM delegation. The council meets every two years to discuss the implementation of the EPA. Without surprise, the EU urged those who have to ratify the agreement to do so as quickly as possible. At the meeting, the minister explained Jamaica's progress toward ratification as well as underscored CARIFORUM's interests in securing further trade and investment opportunities, particularly in the services sector.
Indeed, whether Jamaica pursues more trade with the EU or the new “Global Britain” largely comes down to which trade partner will offer the best terms for tapping trade potential in favor of the small island country.
The UK has been quick to emphasize the importance of the UK for Jamaican exports and the benefits of the Commonwealth of Nations, often known as simply the Commonwealth. According to a briefing paper on trade competitiveness regarding the CARIFORUM-EU EPA published by the Commonwealth, the UK is Jamaica's fourth top export destination, behind the US, Canada, and the Netherlands, and trade with the UK far outweighs trade with most EU countries individually in terms of volume. Nevertheless, trade numbers with a sans-UK EU still exceeded trade with UK by itself in 2015.
Also in the briefing paper, the Commonwealth postulates that, “a CARIFORUM-UK EPA covering both goods and services is a possible way forward.” A new EPA with the UK would eliminate Jamaica's problem with penetrating the EU market, according to the Commonwealth, citing EU difficulties in implementing measures to support the CARIFORUM states in terms of productive capacity.
Under the CARIFORUM-EU EPA, Jamaica enjoys duty-free, quota-free (DFQF) access to EU markets, but full export potential has largely gone unrealized, as stressed by Minister Johnson Smith at the Joint Council meeting. The UK wants to capitalize on this opportunity to win favor with Jamaica and other Caribbean Commonwealth states as part of its expanding trade outlook. In fact, a major reason for Brexit was the desire for a more liberal, less bureaucratic avenue for pursuing trade agreements.
The future of Jamaica's trade agreements are of paramount importance amidst uncertain relations with the island's biggest trade partner: the US. Trump's protectionist policies and potential US budget cuts resulting in a huge loss of aid would strike a blow to the Jamaican economy, making penetration of other markets to increase revenue all the more important. For now, Jamaican and UK ministers reached a transitional agreement applying the terms of the current CARIFORUM-EU EPA to CARIFORUM-UK relations following the official Brexit in the hopes of maintaining continuity until the UK is permitted to make further trade deals.
EU VS. UK
TABLE OF CONTENTS
Interview
Most Honourable Andrew Holness, Prime Minister, Jamaica
TBY talks to the Most Honourable Andrew Holness, Prime Minister of Jamaica, on efforts to foster sustainable and inclusive growth, the main challenges ahead for the nation, and its key successes in improving the business environment.
read articleInterview
Diane Edwards, President, Trade & Investment Jamaica (JAMPRO)
TBY talks to Diane Edwards, President of Trade & Investment Jamaica (JAMPRO), on making investments throughout the whole value chain, becoming a regional distribution hub, and boosting niche agricultural output.
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Courtney O. Campbell, President & CEO, Victoria Mutual
TBY talks to Courtney O. Campbell, President & CEO of Victoria Mutual, on the origins of financial inclusion in Jamaica, helping people get a start on their property journey, and assisting young businesses to exploit a positive business environment.
read articleInterview
Raymond Walker, Founder, Chairman & CEO , Caribbean Assurance Brokers Ltd. (CAB)
TBY talks to Raymond Walker, Founder, Chairman & CEO of Caribbean Assurance Brokers Ltd. (CAB), on fighting for its clients, using environmentally sound methods to drive down costs, and continuously driving innovation.
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Emanuel DaRosa,, President & CEO, Jamaica Public Services (JPS)
TBY talks to Emanuel DaRosa, President & CEO of Jamaica Public Services (JPS), on pursuing common goals in the best possible way, utilizing Jamaica's most abundant natural resources, and satisfying half of Jamaica's energy needs through renewables.
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Winston Watson, Group General Manager, Petroleum Corporation of Jamaica (PCJ)
TBY talks to Winston Watson, Group General Manager of Petroleum Corporation of Jamaica (PCJ), on keeping a hand in both green and black energy, helping the government reach its 2030 Energy Vision targets, and educating people on the importance of conservation.
read articleFocus: LNG Investments
Light My Fire Jamaica
The Jamaican government is pushing private investment in liquefied natural gas (LNG) to provide cheaper and cleaner energy to households and businesses. Through partnerships with local and international companies, New Fortress Energy is leading the way to ignite this sector.
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Gordon Shirley, President & CEO, Port Authority of Jamaica (PAJ)
TBY talks to Gordon Shirley, President & CEO of the Port Authority of Jamaica (PAJ), on the country's developing role as a logistics hub, attracting more cruise ships, and his outlook for the economy at large.
read articleInterview
Fritz Pinnock, President, Caribbean Maritime University
TBY talks to Fritz Pinnock, President of Caribbean Maritime University, on capitalizing on the rising power of the global south, customizing goods before they reach the final consumer, and leveraging Jamaica's geostrategic location to create added value.
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Winston Adams, JP, Executive Chairman, University of the Commonwealth Caribbean (UCC)
TBY talks to Winston Adams, JP, Executive Chairman of the University of the Commonwealth Caribbean (UCC), on the university's illustrious history, its upcoming strategies, and Caribbean Knowledge City.
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Michael Williams, Acting Executive Director , Mona School of Business and Management
TBY talks to Michael Williams, Acting Executive Director of Mona School of Business and Management, on maintaining quality across its programs, its achievements in the Caribbean, and the school's research-based approach.
read articleFocus: Downtown Kingston Revitalization
Drinking from the Fountain of Youth
Although the subject of much talk, downtown Kingston has been relatively neglected for many years while surrounding areas of the city attracted more real estate developments. A series of public and private investments indicate that the trend is finally reversing.
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Timothée F. Delebarre, Country Manager, VINCI Construction Grands Projets (VCGP)
TBY talks to Timothée F. Delebarre, Country Manager of VINCI Construction Grands Projets (VCGP), on diversifying their business lines, expanding Kingston's Port, and developing innovative financing mechanisms.
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Dittie Guise, General Manager, Montego Bay Convention Centre (MBCC)
TBY talks to the late Dittie Guise, General Manager of Montego Bay Convention Centre (MBCC), on marketing the convention center, creating an integrated tourist experience, and preparing for more events and visitors.
read articleFocus: Linking Tourism
Lifting All Boats in the Rising Tide
Although significantly contributing to the economy, tourism in Jamaica suffers from an inadequate level of linkage with other sectors. The government, in partnership with private actors, is launching a number of initiatives to ensure that international tourists meet local businesses.
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Natalie St. Louis, Founder, CEO & Managing Director, Strategic Konnections & Management Services Limited
TBY talks to Natalie St. Louis, Founder, CEO & Managing Director of Strategic Konnections & Management Services Limited, on working with businesses to further their goals, the importance of engaging with consultants, and goals for the coming year.
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