By Claude Mills, Staff ReporterJAMAICA AND its trading partners in CARICOM will be seeking to strengthen economic ties and trading relations with other trading blocs in Central and South America to offset recent reverses in the international multilateral arena, Minister of Foreign Affairs and Trade K.D. Knight said yesterday.
Speaking at the Jamaica Manufacturers' Association/EAST seminar on 'Trade and Environmental Requirement for the Global Market', Mr. Knight said "More emphasis would now be paid on pursuing a more aggressive bilateral trade agenda.
"We in CARICOM are taking an in-depth look at the impact of growing bilateral free trade agreements (FTAs) especially within the hemisphere led mainly by a U.S. thrust to conclude such agreements with several partners most notably Central America and the Dominican Republic."
Minister Knight also said that CARICOM was eyeing trade negotiations with regional blocs such as MERCOSUR as a distinct possibility in the future.
"Although the region and Jamaica in particular does not have significant trade with the countries of South America, it is the view that relations at the economic and political levels should be pursued and developed," Minister Knight said.
A GROWING MARKET
MERCOSUR represents the fourth largest economic entity worldwide, after the European Union, the United States and Japan. It has more than 200 million consumers and boasts a combined GDP of more than US$1 trillion. This market is now among the fastest growing in the world.
He also revealed that CARICOM will be reviewing the situations with the Andean countries to determine how to proceed as there already exist partial scope agreements with Venezuela and Colombia.
"Consideration is being given to whether these should be expanded into a full free trade arrangement covering both goods and services," Minister Knight said.
Jamaica is grappling with trade major agreements on three fronts, the Free Trade Area of the Americas (FTAA), the WTO-Doha Development Agenda; and also the regional phase of the ACP/EU negotiations in light of the recent launch of the Caribbean/EU Economic Partnership Agreement negotiations.
According to Minister Knight, "The FTAA negotiations are to be concluded no later than 2005 as agreed by the heads of state and government" while the Caribbean/EC Economic Partnership is not expected to begin before the end of phases over the period September 2005 to December 2007.
FTAA BOGGED DOWN
He however admitted that the FTAA is "bogged down in a sea of disagreement" and that the longer the Trade Negotiations Committee (TNC) delays in reaching an agreement, the more it calls into question the timeline of 2005.
With respect to the WTO, Minister Knight drew attention to the "EC's offer to reduce export subsidies and domestic support measures, if other WTO members are willing to reciprocate in other areas of interest to the EC and members of the European Union".
