Ex-minister: Jamaica losing $15b to Caricom imports
According to a report in the Jamaica Observer, Clarke suggested that Government collect the revenue by suspending Caricom trade subsidies, at least during the island’s lending arrangement with the International Monetary Fund (IMF). He also called on Government to resist the urge to scrap tax concessions afforded to listings on the Junior Stock Exchange as it offered an efficient method of raising capital for small and medium-sized businesses.
“Surely the Government could not be aware of how irrational it is to handicap Jamaican producers with taxes and fees, while it surrenders as much as $15 billion of revenue to our Caricom competitors as subsidy to make them more competitive than our own producers in our own market,” said Clarke in his address at the Jamaica Pegasus hotel.
Imports into Jamaica are greatest from the United States, followed by Venezuela and Caricom member state T&T. The JMA claimed earlier this year that manufacturers from T&T were misrepresenting items as originating from within Caricom—which would entitle the goods to duty-free status. However a rate of duty or common external tariff is applied on products originating from outside the grouping. T&T manufacturers denied the claim.
The Economic and Social Survey Jamaica 2012 indicates that Jamaica’s annual trade deficit with Caricom narrowed to US$775.3 million relative to US$916.0 million in 2011. The improvement was attributed to a 22.4 per cent rise in exports to US$83.2 million and a 12.7 per cent reduction in imports to US$858.6 million.
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Source: guardian.co.tt
