Gaynair
DAVID GAYNAIR, Managing Director of JGJ Products Ltd producers of hair care products is predicting that most local manufacturers will be forced out of business when Jamaica enters in the Free Trade Area of the Americas (FTAA) in 2005.
"What we are going to find with the FTAA is a situation where we remove custom tariffs. Now tariffs are the only method of keeping goods out. In the Caribbean and South America, every country except possibly Mexico, has stringent non-tariff barriers," he said.
Mr. Gaynair said most Latin American countries required that goods coming into their countries be registered and to register the product they require that formulas of the products be included.
"They protect their formulas and that is what they use to compete with. If I give them my formula, I don't have any business," said Mr. Gaynair, noting the clever use of the non-tariff barrier by most Latin American countries.
"For me to register a shampoo in Costa Rica, I have to appoint a lawyer in Costa Rica as my power of attorney. I have to send him four samples from the same batch, I have to pay him and pay the Government of Costa Rica," he said noting the little things that they do to frustrate the exporter to that country.
He pointed out that he has to pay a lab in Costa Rica, plus send them a lab report from here on a sample of every size of the same product.
"When they say one item, they don't mean one sample of shampoo. They mean every size of shampoo you have," he explained.
According to Gaynair, it would cost US$400 for every size of every item, plus giving them the formula.
"Obviously I can't export there," he said of the rigmarole to get his product into the Latin American markets.
But he said, it is ironic that these same countries can ship their shampoos to Jamaica with no problem whatsoever. "All our customs department wants to know is how much duty they are paying. When we sign in 2005 (FTAA) and we remove these duties, their goods will be coming in duty free with no barrier, but I can't ship to them because I have to register the product and give away my formula. I am not giving them my formulas so I am out of business by 2005," he said hopelessly.
Mr. Gaynair, who has 30 employees, said he has provided the Jamaican Government with documentation and "I know they are now starting to argue about bringing down the non-tariff barrier."
Mr. Gaynair warned that until the Government created barriers to protect locals, Jamaica would be in serious trouble.
- H.W.
