Paulwell (left) and Francis (right)
Ian Boyne, Contributor
JAMPRO is spearheading an electronic data exchange system which should see significant benefits, cost-savings and efficiencies accruing to businesses. Already a Memoranda of Understanding have been signed with a number of private sector partners under this programme.
Called the Jamaica Trade Point Project, the Jampro-implemented system is part of the Global Trade Point Network which links over 153 trade points in 91 countries.
Co-ordinated by the United Nations Conference on Trade and Development (UNCTAD), the network links various participants in foreign trade - customs, chambers of commerce, freight forwarders, shipping and insurance companies, to name a few - under one virtual "roof".
A major feature of the Global Trade Point network is the Electronic Trading Opportunity (ETO) system. ETOs provide the means of processing the enquiries of traders and investors and other business people particularly, and represent an efficient means of bringing supply and demand together. It is estimated that through this extensive electronic trading network enquiries are disseminated to as many as seven million companies around the world every day.
A document on the ETO system claims that UNCTAD's ETO system now ranks as one of the top 20 list servers in the world with regard to the volume of information transmitted daily. A trade point is a trade information centre, which disseminates data on business and market opportunities, potential clients, joint-venture partners and suppliers, trade regulations and requirements, legal framework etc. A Jampro document sums it up: "At the trade point, market opportunities are targeted, Government formalities are cleared and business transactions are carried out.
This "one-stop shopping' facility offers services under one roof which lowers the transaction costs of importing and exporting. It also reduces the procedural and psychological barriers to trade, thus encouraging new entrants." Memoranda of Understanding have been signed with the following groups who are involved in the ETO system as part of the Global Trade Point Programme:
The Ministry of Industry, Commerce and Technology, the Jamaica Exporters Association, the Jamaica Manufacturers Association, the Port Authority of Jamaica, the Customs Department, the Freight Forwarders Association and the Shipping Association of Jamaica.
A primary objective of the Jamaican Trade Point Programme, explains Jampro President Patricia Francis, is to "Increase the economic competitiveness and trade prospects of Jamaican firms as they grapple with issues of globalisation".
Mrs. Francis points out that there are vast opportunities for emerging countries like Jamaica in the global economy. "One of the advantages of the Internet, is the wide variety of choices it offers and, consequently the opportunities for cost-savings "Because we can shop around and compare prices we can often get the best deals.
Over the years we have not always had the best deals hence our products have in some cases been uncompetitively priced, affecting viability", she added. Electronic commerce has been growing enormously over the last few years. It is estimated that last year over 50 million consumers did business over the Internet. Over 350 million persons are on the Internet and it is estimated that the number might increase to a billion within the next four years.
Businesses-to-business transaction on the Internet is expected to rise to US$1.3 trillion by 2003.
Jamaica Trade Point is seeking to position Jamaica to be able to reap some of the windfall benefits which will come through the explosion in electronic commerce. Another significant area is that of trade facilitation and enhancement, which is absolutely crucial if our export trade is to grow.
Trade facilitation therefore has to be at the very top of the nation's agenda. Information technology opens up tremendous possibilities in terms of rapidly expanding trade efficiencies. Indeed, the smoothness and efficiency with which countries are able to do business with Jamaica has a major bearing on the country's ability to expand trade. Countries have lost millions of dollars in potential businesses because of inefficiencies in their trading systems, log-jams with customs etc.
To address this issue, the Government established a broad-based, public-private sector group to deal with the matter of foreign trade facilitation. The draft report itself notes, "Current export processes are made up of a sequence of steps that requires the exporter to be knowledgeable about the requirements and terminology of several agencies.
It requires travel to several parts of Kingston to prepare for each shipment and to several parts of the wharf area or airport when the shipment occurs. Exporters and exports are subjected to some procedures add time, cost and uncertainty to export transactions.
The result of the Foreign Trade Facilitation project will be the creation of single points of service on the Jamaica Trade Point Web site. This will give the exporters all the relevant information that he needs in one place, reducing multiple visits to various agencies involved in the exporting process.
Jamaica Trade Point will provide critical information on the export process, including information on the Jamaica Exporters' Association's Forms Generator Programme, which has been recommended for wider use by exporters. It eliminates the need to provide the same information on different forms.
Jamaica Trade Point will also provide potential exporters with information on the requirements for becoming a certified exporter. Besides, through the completion of an on-line questionnaire, exporters or potential exporters can evaluate their readiness for the export market.
The Final report of the Foreign Trade Facilitation Project, recently completed, has this to say about the importance of the Jamaica Trade Point Programme vis-a-vis trade facilitation: "The single most important innovation arising from the Foreign Trade Facilitation Programme is an Electronic Singe Service Point (ESSP) to be housed on the Jamaica Tradepoint".
Jamaica has introduced one welcome innovation to the Global Trade Point system. Jamaica Trade Point has the distinction of being the first trade point in UNCTAD's Global Trade Point Programme to launch a national version of the ETO, called the e-basket. The variety of uses of the ETOs only goes to demonstrate the significant opportunities unleashed by the information revolution.
The e-basket programme, this is a local network which links buyers and suppliers together. The pilot project involves the Rural Agricultural Development Authority (RADA) and the Jamaica Hotel and Tourist Association (JHTA). Minister of Industry,, Commerce and Technology, the Hon. Phillip Paulwell, has hailed the public-private sector partnership, viewing it as a fitting model of co-operation for the 21st century."
I am very happy about the partnership with the private sector and the strong support which is being given to the Trade Point programme. I am gratified that our private sector is aware of the importance of utilising technology for improved efficiency and productivity.
When one considers the considerable efficiencies which have been achieved in a country like Singapore because of its adept use of information technology to enhance its reputation as a modern trading giant, then one is encouraged by the possibilities of this technology".
The Minister said it was his hope that the Jamaica Trade Point Programme would achieve the same international prestige and recognition, which Singapore's Tradenet has achieved and that considerable improvements would be made to the Jamaican business process.
