Gov't criticised for delayed implementation of EU agreement
Published:Thursday | December 13, 2012 | 12:00 AM
Christopher Serju, Gleaner Writer
AMBASSADOR PAOLA Amadei, head of the delegation of the European Union to Jamaica on Tuesday, blasted the Jamaican Government for its tardiness in implementing aspects of its Economic Partnership Agreement (EPA) with the European Union (EU).
This, according to the ambassador, has retarded efforts for a stable, predictable and transparent business environment.
"The credibility of the Jamaica's signature is at stake and your non-ACP (African, Caribbean and Pacific) competitors are looking very closely at the implementation of the EPA," she told the launching ceremony of the EPA capacity building project, at the Bureau of Standards Jamaica, St Andrew.
"Honourable ministers, Jamaica is two years behind on schedule regarding tariff cuts ... . The risk of a new challenge before the WTO (World Trade Organization) should not be discarded," she said in an official statement.
Speaking with The Gleaner afterwards, Amadei explained that time is of the essence in meeting the 2013 deadline for introducing reduction of tariffs, in keeping with Jamaica's commitments under the EPA. However, the Jamaican Government seems not to be seized of the urgency of the situation, according to the ambassador.
She noted: "So far there has been only provisional introduction of tariff reductions, but the full legislative cycle has not yet been completed. So we can run the risk, that not necessarily the European Union but competitors of Jamaica, from other geographical areas will say Jamaica is in the EU, but not providing equal access to its market and, therefore, this system is not WTO compatible."
In her address, Amadei noted that by failing to implement any significant measure of the tariff reforms, Jamaica continues to stand in the way of its own progress. The country has failed to put to good use the EPA chapter on trade facilitation, modernising trade and customs procedures, cutting red tape, improving customs facilities and other measures aimed at making business easier and faster.
Ranked 106th
Noting that Jamaica is ranked 106th out of 185 countries, with an average transaction cost of US$1,500 on exports and imports, the head of the European delegation cited the value of the EPA in helping to improve the country's ease-of-doing-business rating. She cited the case of the Dominican Republic, which having liberalised its trade regime in 1996, went on a serious campaign in 2007 to increase its business competitiveness, and has seen the average time period for opening a business drop from 78 days to 78 hours, and the process of property registration reduced from 107 to 60 days.
With the support provided by the EU, Amadei expressed confidence that Jamaica would eventually get it right, pointing to developments in the sugar cane and banana industries as signs of progress.
The EU has committed to spending €2,250,000 over 18 months, which will see the Bureau of Standards Jamaica being the focal point of an extensive project to, among other things, increase the capacity for product testing and certification for compliance with international standards.