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Stabroek News

CARICOM Single Market: barriers on the brink - $billion market beckons
published: Sunday | December 18, 2005

Gareth Manning, Gleaner Writer


Farmer Julie Anderson of the 1,700-acre Negril Spot Valley Farm packages eggs to be delivered to a hotel. - Janet Silvera Photo

THE AGRICULTURAL sector has been weakening for nearly a decade, recording large declines in its production index since 1996 and declines in the production of selected traditional imports.

Sugar and bananas have been some of the most affected crops in recent times, recording declines in production and export due to slashes in global prices and destruction to crops by hurricanes.

In fact, no bananas were exported last year due to the destructive impact of Hurricane Ivan. Direct damage to export plantations stood at $278.4 million, while losses in production were estimated at $930 million, the Planning Institute of Jamaica states.

But despite these challenges, Government feels the CARICOM Single Market and Economy (CSME) will provide a myriad of advantages for the sector.

President of the Jamaica Agricultural Society (JAS), Senator Norman Grant, says one of the clear opportunities that will be unmasked is an improvement of the interregional trade index.

OPPORTUNITIES FOR GROWTH

Interregional trade, he explains currently stands at single-digit figures, but opportunities for trade to grow to double-digit figures are to be realised through the implementation of the CSME.

The senator, who is also chairman of the Caribbean Farmer's Association (CFA), says the CSME should provide a breeding ground for the development of a regional marketing concept that allows CARICOM nations to share supply and demand information.

The information he says should create marketing opportunities for Jamaican farmers and drive agricultural exports.

"The market size is in excess of 16 million and all [the developed countries] have been seeing this as a huge trading market, except us," Senator Grant says.

The senator expects that by end of next year, the sector should benefit from an active agricultural trade between member states. He says these should include mostly non- traditional exports such as pumpkin, ginger and spices and other traditional crops, such as Blue Mountain coffee, for value-added exports.

SUPPLY AND DEMAND

"Let us look at specific quantities we produce and share our information on supply and demand, I give what you want and you give what I want," is one way the Senator says trade may work.

The CSME should also provide opportunities for CARICOM member states to purchase input and ship in bulk. This is more cost effective for agriculture and allows goods to be traded at ports with lower tariffs.

The new single market should also create employment opportunities for farmers through the farmer exchange programme.

The programme is one now being discussed by the CFA for implementation next year. It is expected to work by selecting specialised farmers in certain sectors of agriculture, to work with other farmers, in particular CARICOM countries, so as to increase production.

"So, there is an interregional exchange of information that will help to enhance our productivity and our competitiveness," Senator Grant says.

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