From: OVERSEAS BUSINESS REPORTS (JAMAICA)
University of Missouri-St. Louis
Match 15 DB Rec# - 26,460 Dataset-MARKET
Source : USDOC, International Trade Administration
Source key :IT
Program key :IT MARKET
Program :Market Research Reports
Update sched. :Monthly
ID number :IT MARKET 111104949
Title :JAMAICA - OVERSEAS BUSINESS REPORT - OBR9208
Data type :TEXT
End year :1992
Date of record:09/17/1992
Keywords 1 :
| 9208
| CC241
| ECONOMY
| JAMAICA
| OBR
| OBR9208
| ZEC
Country :
| JAMAICA
| CARIBBEAN
| CARIBBEAN COUNTRIES
| CARIBBEAN GROUP
| ENTERPRISE FOR THE AMERICAS
| ORGANIZATION OF AMERICAN STATES
| WESTERN HEMISPHERE
| WH
Text :
JAMAICA - OVERSEAS BUSINESS REPORT - OBR9208
SUMMARY
This article is derived from a report dated August 1992, prepared at the
U.S. Government - U.S. Department of Commerce, Washington, DC. The article
consists of 3 pages and discusses the economic and commercial climate in
Jamaica, with emphasis on information useful for potential U.S. sellers and
investors. It includes the following sections:
I. FOREIGN TRADE OUTLOOK
II. CUSTOMS AND SHIPPING PROCEDURES
III. DISTRIBUTION AND SALES CHANNELS
IV. TRANSPORTATION, UTILITIES, AND COMMUNICATIONS
V. ADVERTISING AND MARKET RESEARCH
VI. FINANCIAL SYSTEM
VII. INVESTMENT
VIII. INTELLECTUAL PROPERTY RIGHTS PROTECTION
IX. LABOR
X. GUIDE FOR BUSINESS VISITORS
XI. KEY CONTACTS AND RESOURCES
XII. RESOURCES
XIII. MARKET PROFILE
XIV. U.S. DEPARTMENT OF COMMERCE DISTRICT OFFICES
CONTENTS
I. FOREIGN TRADE OUTLOOK
General Trends - Caribbean Basin Initiative - Leading Trade Opportunities -
Export/Import Table
II. CUSTOMS AND SHIPPING PROCEDURES
Duties and Internal Taxes - Import Prohibitions - General Consumption Tax -
Monopoly Rights - Customs Processing and Storage - Temporary Admissions -
Postal Documentation - Shipping Documentation - CARICOM Commercial Invoice
III. DISTRIBUTION AND SALES CHANNELS
Importers, Agents, and Distributors - Appointing an Agent or Distributor -
Franchising and Licensing - Government Procurement - Barter Trade Agreements
IV. TRANSPORTATION, UTILITIES, AND COMMUNICATIONS
Transportation - Utilities - Communications
V. ADVERTISING AND MARKET RESEARCH
Advertising
VI. FINANCIAL SYSTEM
Overview - Currency - Monetary Control - Profit Remittances - Trade/Sale
Purchase System - Domestic Financing - Sources of Finance - US Sources -
Multinational Sources - Jamaican Sources - Taxation
VII. INVESTMENT
Investment Trends - Free Trade Zones - Mining - Tourism -Agribusiness -
Investment Laws and Incentives
VIII.INTELLECTUAL PROPERTY RIGHTS PROTECTION
Patents - Trademarks - Copyrights
IX. LABOR
General Conditions - Unions - Labor Regulations - Workers Rights - Free
Trades Zones
X. GUIDE FOR BUSINESS VISITORS
Entrance Requirements - Working Permits - Holidays - Business Hours
XI. KEY CONTACTS AND RESOURCES
U.S. Government Contacts - Jamaican Private Sector Contacts - Jamaican
Government Contacts
XII. RESOURCES
XIII. MARKET PROFILE
Economy - Resources - Population
XIV. U.S. DEPARTMENT OF COMMERCE DISTRICT OFFICES
I. FOREIGN TRADE OUTLOOK
General Trends
Since its election in February 1989, the Manley administration followed
economic liberalization policies creating a largely open, market-oriented
economy. His administration pursued a tariff reduction program and
continued a successful divestment of state-owned properties. In March 1992,
Prime Minister Manley resigned his post due to his deteriorating health.
The new Prime Minister, Persival J. Patterson, took office on March 30
stating that the economic liberalization measures instituted under the
Manley government would continued.
On September, 1991 Jamaica removed its most serious roadblock to trade by
liberalizing foreign exchange transactions allowing the free floatation of
the Jamaican dollar and the purchase of foreign currency in the open
market. Prior to this reform, importers were unable to obtain foreign
exchange without substantial delays leading to arrears in import payments.
The resulting devaluation of the Jamaican dollar, however, is affecting the
private sector's ability to finance imports and other types of financial
transactions. Also, the government's need to service its international debt
is crowding hard currency demand. Only the tourist and bauxite sectors have
been spared currency problems due to their priority status. Despite these
shortcomings, the government is not likely to impose new trade restrictions
leaving the way open to importers to initiate their own creative solutions
toward foreign payments.
The Jamaican economy is heavily import dependent both for production and
consumption. The United States continues to be Jamaica's leading supplier
of goods and services. In 1991, U.S. exports to Jamaica amounted to $962.9
millions, a decrease from the $1 billion it exported in 1989. Trends for
1992 show a modest improvement in export market.
The U.S. market absorbed $575.9 million in imports from Jamaica in 1991, a
7.7 percent increase from the 1989 figure. While traditional exports of
minerals and agriculture remain important to the Jamaican economy,
non-traditional exports have expanded significantly. Principal U.S. imports
from Jamaica include bauxite/alumina, food, beverages and tobacco, and
textiles.
Caribbean Basin Initiative
The Caribbean Basin Initiative (CBI), initiated in 1984, encourages economic
development in the Caribbean and Central America through export
diversification led by the private sector. The CBI program provides
duty-free access to the United States for most products manufactured in the
Caribbean Basin. Jamaica is one of the countries in the region that has
benefitted the most from the opportunities available through CBI. In 1990,
over half of Jamaican exports to the United States entered duty-free in part
under the provisions of the CBI.
Under the CBI, manufacturers of apparel made from fabric cut and formed in
the United States pay U.S. import duties only on the value added outside the
United States. In 1990, the U.S. Congress added a provision to the CBI that
extends similar treatment to footwear produced in CBI-beneficiary
countries. As a CBI-beneficiary and signatory to a Tax Information Exchange
Agreement, Jamaica also has access to investment funds from Puerto Rico
under Section 936 of the Internal Revenue Code, and is an eligible site for
tax-deductible conventions for U.S. firms.
Non-traditional Jamaican products that offer good prospects for U.S.
importers include data-processing services, apparel assembly, fruits and
vegetables, horticulture, aquaculture, industrial minerals such as limestone
and marble, beverages and tobacco, light manufacturing, furniture, and
handicrafts. In addition, the Caribbean market has expanded for U.S.
exporters of products essential to these new industries, including textiles
and textile machinery, furnishings for tourism facilities, electronic
components and computer equipment, and intermediate goods such as wood,
chemicals, and fertilizers.
Articles excluded from CBI treatment are textiles and apparel already
subject to textile agreements;
o - footwear (except disposable items and parts such as uppers),
o - handbags, luggage, flat goods, work gloves, and leather wearing apparel
which is not covered by the Generalized System of Preferences;
o - canned tuna;
o - petroleum and petroleum products (provided for in Part 10 of Schedule 4
of the U.S. Tariff Schedule);
o - watches and watch parts, if any component originated in a communist
country.
Ethanol, sugar, beef, and veal may be eligible for duty-free treatment but
special conditions apply, such as import quotas.
Leading Trade Opportunities
Leading U.S. exports in 1991/92 include mining equipment, information
services, textiles, electric power systems, construction equipment,
agricultural and industrial chemicals, processed foods, hotel and restaurant
equipment, and trucks, trailers and buses.
--------------------------------------------------------------------------
This file extracted from Dept. of Commerce National Trade Data Bank (NTDB)
CD-ROM SuDoc No. C 1.88:993/12. Processed 12/01/1994 by software developed
by RCM (UM-St. Louis Libraries) / OBR_0014