Export expansion, key to Jamaica’s economic growth
Jamaica’s export status at a glance
JAMAICA HAS been grappling with an unfavourable balance of trade gap for the greater part of a century, and this highly unfavourable and unsustainable situation persists. At the end of 2021, Jamaica recorded imports valued at US$5.975 billion, and exported US$1.441 billion, resulting in a trade deficit of US$4.534 billion. This level of deficit is extremely alarming and demands that every Jamaican come into the realisation of the impending danger this situation poses to this and succeeding generations of Jamaica’s socio-economic well-being.
There are several strategies that can contribute to closing our trade gap. Among the much-talked about are import substitution, and the curbing our appetite for imported goods, etc. However, undoubtedly, the most effective way of narrowing the trade gap is increasing our export and developing a bias for imports of goods and services that will contribute to growth in exports. The proven export-led growth hypothesis (ELGH) postulated that export expansion is one of the main determinants of economic growth. It is therefore, imperative that Jamaica seeks export growth. There are numerous countries that have adopted export-led growth strategies and are reaping the benefits, countries such as China, Ireland, South Korea, Singapore, Hong Kong, Vietnam, and many other emerging export-oriented economies.
The Ministry of Industry, Investment, and Commerce (MIIC), dubbed, ‘The Jamaica’s Business Ministry’, is the parent to the Trade Board Limited (TBL). MIIC under the leadership of Senator Aubyn Hill, Minister of Industry, Investment, and Commerce, is fully cognisant of the need for Jamaica to achieve sustainable growth based on an export-oriented economy. The Trade Board Limited is therefore redoubling its effort to support exports.
WHAT IS THE TBL DOING?
As a trade facilitatory and regulatory entity, the TBL continues to contribute to a simplification of the export process. More importantly, the TBL provides the necessary trade-related information and know how to make export an easier understood process for our businesses. There are several initiatives that are in progress and at varying stages of development. The following are among the main developments:
STEP-UP EXPORT INITIATIVE:
This initiative is improving existing and potential exporters’ knowledge about the benefits of the nine Trade Agreements, comprising bilateral, regional, and multilateral agreements for which the TBL has custody. This involves sending expert teams into the field to interact directly with potential and existing exporters, and to offer hand-holding services where necessary. To date, over 70 companies have been visited by our team with encouraging feedbacks.
ESTABLISHMENT OF AN EXPORT ACADEMY
The TBL’s interaction with manufacturers revealed that there are businesses who could export, but refrain from doing so because they do not have the requisite knowledge. The TBL is in the process of establishing an online Export Academy to bridge the knowledge gap that will reduce the uncertainty about how to export and to give businesses the tools and confidence to seek out export opportunities globally. The Export Academy will be accessible as a free online service and is scheduled to be completed by July 2023.
PROVISION OF GLOBAL MARKET INTELLIGENCE AND COMPLIANCE INFORMATION
The TBL is also working on a project that will provide market intelligence and trade compliance information for markets around the world. At the completion of the project in the second quarter of the 2023/24 financial year, through the TBL, Jamaican businesses that register with the TBL for the service will be able to go online and identify target markets for their products and services, access relevant market intelligence and compliance information necessary. In addition, industry specific information will be accessible, as well as assistance in finding new business opportunities and counterparts.
REFORMING FOR GREATER EFFICIENCY
The TBL is also striving for greater operational efficiency through
digitalisation of all its processes with priority given to those process that impact export. An example was the digitalisation of the product analysis form, which has significantly sped up the process of product analysis and assessment for compliance to the criteria of the respective trade agreements.
WORKING IN CLOSE COLLABORATION WITH JAMAICA CUSTOMS AGENCY (JCA)
Working in close collaboration with Jamaica Customs Agency (JCA), we have been able to accomplish the use of Electronic Certificate of Origin (eCoO) that is ratified by COTED. The JCA has been magnificent in their development and management of our main transactional tool JSWIFT, which could easily rank as one of the largest IT projects undertaken in Jamaica or perhaps the Caribbean; doing for all Border Regulatory Agencies (BRAs) what it does for the TBL. JSWIFT has helped the TBL to improve its efficiency levels, particularly as it relates to turnaround time for the application of licences and certifications, much to the satisfaction of our clients.
Through continued reform in our operations and collaborative efforts with other BRAs the TBL will continue to innovate and strengthen its support for Jamaica’s push to grow exports as an imperative. A big thanks to Jamaica Customs Agency for their technical support and for the significant responsibility they shoulder in rolling out JSWIFT and other supporting initiatives. Thanks also to the leadership provided by the MIIC- “Jamaica’s Business Ministry” which has allowed us to unleash our creativity in supporting its drive for greater exports.