In a recent news story on a local channel, Jamaica’s Junior Agriculture Minister Ian Hayles made statements encouraging Jamaicans to buy Jamaican, citing that the import bill is too high, a range of six hundred to seven hundred million US dollar. He commended local company, Best Dressed Broilers on the job of maintaining its place in the poultry industry, supplying the nation while providing jobs. The high import bill is nothing new as Jamaica depends heavily on foreign exchange to pay this bill. Foreign exchange which is earned mainly from the Tourism sector and to a large part, remittances sent home from the Jamaica Diaspora. Sadly, Mr. Hayles never stated what, if any policy or the intention of the government to aid local producers and manufacturers in production and protection from the influx of cheaper import of goods. The imports far exceed the exports resulting in a huge trade deficit.
The local producers suffer from high operating costs, making it difficult to be price competitive against cheap products. Taking a trip to the Coronation market and worse, the supermarket, is a marker as to the differences. Shockingly, imported produce such as Irish potatoes, carrots, meats such as chicken, mutton are cheap compared to our own locally grown. Supermarket shelves are stacked with loads of imports ranging from snacks to frozen convenience meals.
The Statistical Institute of Jamaica February 2012 news release on external trade shows expenditure on merchandise imports during January to October 2011 was valued at US$5,364.5 million, compared to the US$4,303.7 million reported for the January to October 2010 period. This represents a value of imports increased by US$1,060.8 million or 24.6 per cent. While total exports did increase for the same 2011 period, amounted to US$1,355.8 million, US$240.0 million or 21.5 per cent above the US$1,115.8 million recorded for the January to October 2011period. The trade deficit during January to October 2011 was US$4,008.7 million. This indicates that the deficit widened by US$820.8 million, 25.7 per cent above that recorded for the comparable 2010 period.
The message to reinforce Jamaicans to buy Jamaican is all well and good and the prospect of running that Buy Jamaica, Build Jamaica campaign is not sufficient to resolve the issue. Trade policy needs to be in place to protect our borders from cheap influx of imports that kill our local markets. Current local producers and manufacturers require support and legislation that will protect them and also aid in cutting high overhead costs and to increase exports. The focus of removing the Queen as Head of State and becoming a republic is the least of our worries right now as there are several more pressing issues to work on resolving.
