Elizabeth Morgan | With elections looming, are the political parties assessing and addressing foreign policy issues?

General elections are scheduled to be held in Jamaica on Wednesday, September 3. These elections are again being held amid international geo-political crises. The war, which began in Ukraine in February, 2022, is now in its fourth year. The situation in Gaza, Palestine, which exploded in October 2023, continues to deteriorate with appalling violations of human rights. The situation in Haiti also continues to deteriorate. The unsettling situation in the USA has held attention since President Donald Trump took office on January 20 and began signing a flurry of Executive Orders dealing with a range of issues, including immigration, overseas development aid, and international trade. The actions of the USA also have implications for cooperation in the multilateral organisations which are important to Jamaica and other CARICOM countries as Small Island Developing States (SIDS).

Foreign policy issues can severely set back economic growth and development, especially for SIDS, which are trade dependent and vulnerable to external shocks.

Although Haiti may be closer geographically, the issues with the USA are very disturbing due to the close economic ties between the countries. The USA is Jamaica’s principal trading partner in goods and services. There are over one million Jamaicans living and working in the USA. Travel between the countries is important if only for in transit travel.

Let’s look at the bilateral issues as follows:

GOODS TRADE

In 2024, the USA exported goods to Jamaica valued at US$2.6 billion, while Jamaica exported goods valued at US$363 million. The USA has a trade surplus with Jamaica. Yet, as reported and assessed in several articles, President Trump has imposed tariffs of 10 per cent on goods imported from Jamaica. This means that the goods exported by Jamaican producers to the USA will be more expensive there unless they can reduce their cost of production. Thus, Jamaican goods could be uncompetitive in the US market.

Reporting out of the USA is informing that prices are increasing there as importers begin to pass on the tariffs (import duties) to consumers.

SERVICES EXPORT TRADE – TOURISM AND BPOs

Jamaica’s main services export to the USA is tourism with visitors arriving by air and cruise ships. In 2024, Jamaica received over two million visitors from the USA. The total number of visitors for 2024 was given 4.3 million with earnings of US$4.3 billion. Thus, the USA is a very important market for visitor arrivals.

Through mainly Business Process Outsourcing (BPOs), Jamaica exported additional services to the USA in 2024. BPOs employ about 62,000 people in Jamaica.

It appears that proposed legislation in Congress called the “Keep Call Centres in America Act 2025” could impact BPOs operating in Jamaica. It seems US BPOs would be encouraged to keep their operations in the USA.

If the history of US/Jamaica trade is studied, it will be seen that action taken in the USA can be very damaging to trade and employment in Jamaica.

SERVICES IMPORTS

Jamaica imports services (travel, education, health, consultancy, etc) from the USA but accurate values are not available.

IMMIGRATION

The USA has been tightening its immigration policies and procedures to discourage illegal immigration through overstay of visas, and to deport undocumented people already residing and working in the USA. The price of US visas is increasing.

REMITTANCES

Jamaicans living in the USA transferred US$3.36 billion in remittances in 2024. This is important to the Jamaican economy. There are proposals from the Trump Administration to tax remittances.

Let’s look at other issues at the regional and international levels:

Regional integration (CARICOM)

Jamaica’s relationship with CARICOM as the regional integration arrangement and alliance should be important to Jamaicans, especially at this time. It should be seen as necessary to strengthen relations within the grouping; to be working to address the plight of Haiti; to address trade to increase intra-regional cooperation and trade through implementing the CSME, and to cooperate at the international level, including to diversify trade.

Whoever wins the elections, will be chair of CARICOM, as Jamaica assumed the chairmanship in July.

Multilateralism

Multilateralism is being severely weakened and Jamaica’s political parties should be aware of this and its implications for SIDS. President Trump is reviewing the USA’s financial contributions to the UN system and to the World Trade Organization (WTO). The US has withdrawn from the UN Education Scientific and Cultural Organization (UNESCO), the World Health Organization (WHO), and the UN FCCC’s Paris Climate Accord. The USA has opted out of the UN Sustainable Development Goals and funding for climate change mitigation. Addressing climate change is a critical issue. Reform in the UN and WTO are now important matters for these organizations.

So, as elections loom, the representatives of the political parties should be able to speak to how they will be approaching these issues which are key to achieving economic growth and development.

Elizabeth Morgan is a specialist in International trade policy and international politics. Send feedback to columns@gleanerjm.com