Glenford Millin, Trade Writer
On March 25, Lavern Clarke's article, 'PSOJ wants equitable trade with Trinidad', mentioned a number of concerns which seem to be developing about Jamaica's growing trade deficit with Trinidad and Tobago, and unresolved issues on the liquified natural gas proposition.
Other concerns mentioned include the private sector's perception of barriers to entry for goods and investments in T&T and the suggestion by the PSOJ, "That the problem between both countries ought to be solved through constructive dialogue and action to remove any barriers to harmonious trade."
Widen the debate
Speaking as a former economist with the PSOJ, there is scope to widen the debate.
A study of import trade data is usually a part of the investment analysis that buyers and sellers undertake in their decision-making process about sourcing goods, accessing external markets, undertaking import substitution ventures and in forming manufacturing and distribution joint-venture partnerships.
Jamaica is the largest English speaking country in the Caribbean, with a growing diversified economy that is very dependent on imports to satisfy the growing demand for commodities by residents and visitors.
PHENOMENAL IMPORT GROWTH
Jamaica imports which totalled US$1.94 billion in 1990 has grown by 244 per cent to reach US$4.74 billion in 2005 - a phenomenal level of growth - especially for an economy that for a number of years has been experiencing negative to low levels of growth rates in GDP, export and real income.
The level of imports grew by an average annual rate of 6.4 per cent over the 14 years review period between 1990 and 2004, and for the eight months of January to August 2006, imports amounted to US$3.74 billion - a 20.1 per cent increase when compared to the same period of the previous year.
Jamaica is one of the largest import markets within the Caribbean and probably the most attractive.
The country's imports are supplied mainly by countries within five main trading blocs, which supplied 86.7 per cent of total imports in 2001, increasing marginally to 87.2 per cent in 2004.
In 2001, some 50.7 per cent or US$1.73 billion of Jamaica's total imports came from the North American Free Trade Area (NAFTA).
However, NAFTA's share of total imports fell by 4.04 per cent in 2004 to US$1.84 billion.
The Caribbean common market (Caricom) which supplied almost 13 per cent or US$431.5 million of Jamaica's imports in 2001, increased its market share marginally by 1.6 per cent in 2004 to US$562.68 million.
For the same review period the Latin American Integration Association also increased its exports to Jamaica from 10.48 per cent or US$356.4 million to 14.2 per cent or US$560.17 million - a growth of 3.8 per cent between 2001 and 2004.
The European Union was responsible for 8.1 per cent or US$316.9 million in 2004, a 1.2 per cent decline compared to 2001; while the Organisation of Petroleum Exporting Countries (OPEC) supplied 3.97 per cent of total imports, a marginal increase of 0.4 per cent for the review period.
Jamaica's remaining imports were supplied by a multiplicity of trading areas.
BEST PROSPECTS
Geographical and historical factors such as proximity to markets, colonisation, cultural and foreign policy initiatives, competitive prices and quality of goods resulting from technological advancement, have encouraged the Jamaican business class to buy goods primarily from companies within a preferred group of countries in the following regions:
North America (USA & Canada);
