Updating existing hemispheric free trade agreements
Last week, I looked at the decisions from the 45th CARICOM Heads of Government Conference in Port of Spain on External Trade Negotiations. Among the decisions, heads decided that the region should prepare for and engage in negotiations to update the community’s existing hemispheric trade agreements with a sense of urgency and a willingness to arrive at mutually beneficial outcomes within the shortest possible timeframe.
These agreements are with Venezuela, Cuba, the Dominican Republic, and Costa Rica. Negotiations to update the agreement with Colombia are in progress after some years of lobbying by Colombia. These trade and economic cooperation agreements were negotiated between 1992 and 2004 and deal with trade in goods.
They have not been utilised through the years to the extent envisioned when they were negotiated. Trinidad and Tobago has been the main user of these agreements.
Jamaica’s exports to Colombia in 2021 were valued at US$1.3 million; with Costa Rica, US$4 million; Cuba, US$3 million; Dominican Republic, US$2.7 million; and Venezuela, US$15,000. Jamaica has fairly significant imports from Colombia (US$170.4 million), Dominican Republic (US$116 million), and Costa Rica (US$58.4 million). Jamaica imports oil from Colombia. This had been the main import from Venezuela in the past under the PetroCaribe Agreement. Thus, Jamaica has a trade deficit with four of the countries, only having a surplus with Cuba.
These agreements require review and analysis at the domestic and regional levels with the private sector playing a key role in this process. It was my understanding that decisions to engage in further negotiations on trade agreements should be based on data and analysis and consultations with the private sector.
For more information see the link https://jamaica-gleaner.com/article/commentary/20230719/elizabeth-morgan-updating-existing-hemispheric-free-trade-agreements
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