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Manufacturers/exporters still hurting

By McPherse Thompson, Staff Reporter


Clarke and Lopez

LOCAL MANUFACTURERS and exporters, two of the economic sectors most affected by last September's airborne attacks on sections of the United States, say that a year later they are still reeling from the economic fallout.

Although they were unable to quantify the ongoing losses, both the Jamaica Manufacturers Association (JMA) and the Jamaica Exporters Association (JEA) reported members as saying there has been a decline in output since the tragic events.

JMA president Clarence Clarke said, for instance, that there are a number of manufacturers who were dependent on supplying goods to the tourism sector and with that sector also declining, it has had an indirect effect on their businesses.

He said some JMA members had laid-off staff as a result of a decline in business after the terrorists attacks, and although some of those companies have since recalled some of those staff members, production has still not been brought back to pre-September 11 levels.

Among the areas affected, he said, were food processing, chemicals and cosmetics, all of which produce goods both for local consumption as well as for export. "Some of these are still not back to production experienced prior to September 11," said Mr. Clarke.

Noting there was also a decline in access to disposable income locally, Mr. Clarke said the downturn in tourism was a direct result because "a lot of us" relied on the tourism market. "I think the incident showed how much some industries were dependent on tourism," he said.

JEA president Beverly Lopez said that with the exception of agricultural produce, especially ackee, the trade statistics over the past year have not reflected a good performance in exports.

With heightened security following the September 11 incidents, exporters were also faced with higher costs for ocean and air freight, as well as delays in shipment especially in the case of agricultural produce.

Mrs. Lopez said, however, that the Association was actively working towards establishing a branch of the Business Anti-Smuggling Coalition (BASC) as part of the effort to speed up the processing of exports.

Although the JEA signed an agreement earlier this year to establish the BASC, Mrs. Lopez said the organisation had to be set up as a corporate body and was therefore not yet in place. She said however, that the legal aspects have been completed and a meeting is being scheduled for later this month to put the BASC in place.

Earlier this year, Mrs. Lopez explained that BASC certification would enhance Jamaica's status as a transhipment port and should encourage more shipping companies to do business with the island.

The promised installation of X-ray equipment would also assist in ensuring that the island's ports meet international standards and put Jamaica in a position to face new border initiatives implemented by the United States following the airborne attacks on last year.

Through the BASC, the JEA said it hoped to secure a working relationship with United States Customs that would allow certification of exporters and the service providers in the export chain in Jamaica.

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