The year 2006 was, overall, a very good year for exports in general, and for non-traditional exports in particular, despite a few hiccups.
Significant positives:
Exports have continued double-digit growth over the last four years
In 2006, growth of total exports exceeded 32 per cent January to August and, with luck, could possibly break the US$2 billion mark for the first time, or exceed .
Exporters are projecting total non-traditional exports to exceed US$567 million.
Non-traditional exports are growing at over 136 per cent and, in general, things are moving in the right direction.
Growth has come from a widening set of product categories: scrap metal, beverages, foods, minerals and fuels and agricultural produce, among others.
Re-exports also recovered and are growing at greater than 20 per cent per annum.
Export growth has remained strong and should be continued in 2007 at rates remaining in the double digits
The Jamaica Exporters' Association (JEA) and the Jamaica Agro-processors Association (JAPA) led the process of successfully regaining access to the U.S. market for Jamaican ackees.
New sources of financing for exporters:
- an additional $600 million to go with the more than $510 million available under the EGIF signed late last year
- $500 million in funding for exporting under the NCB/JEA Export Expansion Facility.
- $100 million from the National Insurance Fund.
Work completed on several projects including the USAID-funded Market Oriented Recovery of Exports targeting the agricultural sector, and the Jamaica Business Recovery Programme.
Continued the work with USAID's COMMIT and DFID's Jamaica Cluster Competitive Project.
The JEA's Competitiveness Company worked with a range of clusters within the exporting sector:
a. Unique Jamaica - a programme marketing non-traditional tourism;
b. Sea Island Cotton, a DFID-funded cluster project under which acreages were boosted from 200 to 600 acres of cotton by year end;
c. ornamental fish cluster under the USAID-funded COMMIT project.
d. Recording Industry Association of Jamaica/Jamaica Signature Beats - the entertainment cluster;
JEA membership increased by 30 in the calendar year.
Major areas of concern:
Increased contamination of export cargo by contraband which could potentially put export growth at risk.
The increasing dominance of phytosanitary issues in the export trade of food and agricultural products.
Loss of market for ackees resulting from temporary ban from North American markets.
Problems with exports on untreated pallets.
Introduction by the EU of new export requirements for agri-food exports.
Problems with the export of callaloo to the United States at year end.
On balance, it has been a very good year for exports that is expected to continue into 2007.
Prepared by Dr. André Gordon, immediate past president of the Jamaica Exporters' Association.
