In unusually strident tones, Jamaica’s foreign ministry has warned Europe the island would not be forced to accept the January 2008 timeline for completing negotiations on a new trade regime with the former colonisers, unless certain conditions were met.

Foreign Minister Anthony Hylton, outlining Jamaica’s foreign policy imperatives for 2007 and beyond, said Jamaica was an active participant in the negotiations for Economic Partnership Agreements (EPAs) to transform trade between Europe and its former colonies in the African, Caribbean and Pacific (ACP) bloc. The negotiations are slated for conclusion by January next year.

“We will not, however, be forced to adhere to a timeline if we are not satisfied that we have negotiated the best possible agreement for stakeholders in Jamaica and the wider CARIFORUM, since this Agreement will constitute the regime for trade with the European Union for the foreseeable future,” Hylton insisted in his recent state of the nation presentation to the Jamaican Senate.

CARIFORUM is the body formed by Caribbean Community (Caricom) members and the Dominican Republic to represent the region in negotiating the EPAs with Europe, that will replace the outdated trade regimes in place since 1975.

Hylton, while giving his warning, did not elaborate on what might have triggered his statement to the Senate. However, the foreign minister hinted at possible snags in the talks, telling the senators: “The EPA cannot put the CARIFORUM states in a weaker developmental position overall or vis-à-vis the EU.”

Following is an edited excerpt from his statement to the Upper House in which he addressed a wide range of issues, including matters to do with energy and the Jamaican Diaspora:

Madam President, this honourable House will no doubt recall that the member states of the ACP Group of countries and the European Union (EU) have been taking steps to fundamentally transform their trade and economic relationship, which has been in place since 1975. Six ACP regions are engaged in negotiations with the EU to conclude Economic Partnership Agreements (EPAs) by January 2008. They are to meet WTO requirements while facilitating development in the ACP states. These must be asymmetrical.

The Caribbean region is conducting its negotiations with the EU as a joint effort between Caricom and the Dominican Republic in an agreed framework known as the CARIFORUM… It should be noted that the third phase of the negotiations (started last February) began the actual process of shaping an agreement. Between February and November 2006, six rounds of technical negotiations were held in Brussels and in Barbados, Jamaica and the Dominican Republic. The negotiations have focused on the technical aspects relating to market access for agricultural and industrial goods, services and investment, a range of trade-related and legal and institutional issues.

The role of the EPA as a dynamic tool for the sustainable development of CARIFORUM member states cannot be over-emphasised. Throughout the course of our engagement with the European side, we have unequivocally affirmed the need for close attention to be paid to the balance of measures in support of development and our efforts to achieve regional integration.

The Ministerial Meeting in Brussels acknowledged initiatives already underway to provide development support to CARIFORUM and the wider ACP in the context of the EC financing mechanism called the 10th European Development Fund (EDF). This process is to be complemented by a pledge from the EC as well as EU member states to increase trade-related assistance in keeping with the EPA process.

Much work remains to be done in terms of determining priority needs and articulating specific, quantifiable proposals to ensure a development oriented EPA and to facilitate its implementation. It is for this reason that Jamaica will host a ministerial meeting to strategise on these trade issues on the 1st – 2nd February, 2007.

This will precede a joint meeting of the sub-committees on the Caribbean Single Market and Economy (CSME) and on external negotiations of Caricom heads of government on the 5th – 6th February.

While I am pleased to report that considerable progress has been made in a number of areas, significant challenges remain and which must be overcome if we are to attain the critical objectives that have been established. There is broad consensus on the structure and scope of the EPA Agreement. We are also agreed that a development chapter must be included in the EPA Legal Text and that the theme of development – substantive provisions on development – must be reflected in all aspects of the Agreement.

The main issues include: the nature of commitments within the EPA, that is, the balance between the obligations of the developed EU and those of the small developing CARIFORUM states and whether obligations are to be undertaken at the regional level or at the level of the individual CARIFORUM member state.

In addition, CARIFORUM and the EC have different approaches to the issue of tariff liberalisation for goods trade, the nature of commitments for services and investment and the co-operation mechanisms to ensure the effective and timely support of EPA implementation. The EPA cannot put the CARIFORUM states in a weaker developmental position overall or vis-à-vis the EU.

It is hoped that the 2007 EPA negotiating schedule will be sufficient to allow for the conclusion and entry into force of the agreement by January 2008. Ministers have agreed to the scheduling of a series of technical negotiating group sessions which will culminate with a ministerial meeting in September where, if possible, they will be in a position to sign the agreement.

In this context, I must emphasise that this remains the goal to be pursued by both sides in the negotiations. We will not, however, be forced to adhere to a timeline if we are not satisfied that we have negotiated the best possible agreement for stakeholders in Jamaica and the wider CARIFORUM, since this agreement will constitute the regime for trade with the European Union for the foreseeable future.

Jamaica spent US$1.5 billion on oil last year

Jamaica depends on the rest of the world for over 93 per cent of its commercial energy, and the situation is similar in most of Caricom. International energy prices have shown extreme volatility over the past 30 years, but with the underlying tendency for energy prices to continue to rise.

It should be recalled that petroleum prices reached the highest level ever during this last year and Jamaica spent over US $1.5 billion on the importation of petroleum and petroleum products.

The effect of high and volatile petroleum prices is felt in our production costs, our productivity and hence our competitiveness in our local, regional and international markets. It is a determinant of our cost of living and the quality of life of every member of our society. It impacts on the ability of both the public and private sectors to provide services to our communities and the ability of our children to learn and perform.

Since our energy imports consume a disproportionate share of our foreign exchange, it deprives all other sectors of such resources. As such, it distorts the ability of Government, firms and individuals, to plan and to keep commitments, matters which are absolutely essential in this competitive world environment. It also compromises our ability, as a country, to meet our commitment to the millennium development goals.

Frankly, externally driven energy prices can make a mockery of all our efforts to enhance economic competitiveness and social development. In recognition of this, the prime minister has made energy policy, for the first time, an integral part of our foreign policy mandate. We have moved to implement this through several strategies.

At the regional level, we have encouraged the development of a comprehensive, regional energy policy for Caricom which, in Jamaica’s view, must promote long-term economic development and sustainability through a price stabilisation mechanism and encourage the development of alternative energy resources. Indeed, the final meeting of the Regional Energy Task Force, towards the drafting of the Regional Energy Policy, has just taken place in Grenada.

Jamaica has also been working through bilateral and other approaches to implement a project for the importation of Liquefied Natural Gas (LNG) in Jamaica for electricity production by 2009. This will transform electricity production and energy for the mining sector. I make reference to the Wigton Wind Farm and the initiative to expand ethanol production. We see these and other alternative sources, as having immense potential and will continue to pursue support for them in our bilateral programmes.

Jamaica’s current and projected energy needs far exceed the energy from natural gas under the MOU with Trinidad and Tobago. We have, therefore, been exploring other complementary sources of natural gas under our bilateral programmes. In seeking to reduce more directly the impact of petroleum prices, the Government has negotiated the PetroCaribe Agreement with the Bolivarian Republic of Venezuela.

This Agreement provides for (a) petroleum energy supplies and will trigger immediate relief on the foreign exchange impact of oil price increases, and (b) investment in a range of areas including the upgrading of our present petroleum refinery and in alternative sources of energy. This is a dynamic and strategic agreement which can facilitate much of what we are endeavouring to do in respect of energy.

At the international level, Jamaica continues to play an active role in discussions on energy, in particular on renewable energy and energy and climate change. In this context, Jamaica played an active role in the negotiation of the Latin America and Caribbean Initiative which set a target of 10 per cent penetration of renewable energy into our energy mix by 2010 and 15 per cent by 2020. This is now reflected in our national energy policy. Energy security, therefore, will continue to be a high priority in the work of the ministry in the years ahead.

2.7 million Jamaicans living overseas

Allow me to turn to an initiative this Government took over three years ago to bring together, in a formal way, one of our most valuable assets in support of national development – our nationals who reside abroad.

The implications and potential impact of this initiative are best understood and appreciated against the background that there are approximately 2.7 million Jamaicans in the Diaspora, principally in the United States, Canada and the United Kingdom.

Numbered among that 2.7 million Jamaicans who reside overseas are so many nationals who have distinguished themselves. They continue to excel in a wide range of fields – representational politics, academia, research, and a multitude of vocations.

Recently, I was privileged to host a reception in Washington, DC for newly elected US officials, at different levels, who have Jamaican connections. The success of that event was measured not only by the large turn-out of Jamaicans and friends of Jamaica, but also by the optimism and interest displayed by the honorees in assisting Jamaica in achieving its national vision.

Numbered among the group were the lieutenant governor of Maryland, Anthony Brown; congresswoman from New York, Yvette Clarke; the mayor of Washington, DC, Adrian Fenty; and a member of the Maryland House of Representatives, Shirley Nathan-Pulliam. They join other elected representatives with Jamaican roots in the United States and elsewhere.

The engagement of the Diaspora, therefore, is important not only because of sheer numbers but also because of the experience and expertise Jamaicans have acquired or built on in their adopted countries.

Secondly, while the primary focus of the policy of engagement towards the Diaspora is their involvement in Jamaica’s development, the initiative also seeks to address the protection of the interests of Jamaicans overseas in their host countries.

The Government of Jamaica’s policy of inclusion towards the Diaspora has become even more of an imperative in light of the changing environment. It is therefore our goal to build a reciprocal and structured relationship.

My ministry will work with other ministries/agencies and the private sector to strengthen the linkages with the Diaspora through town hall meetings when ministers of government/high level public officials visit these overseas Jamaican communities.

We will also ensure focused agendas for the biennial Jamaican Diaspora Conference (next Conference for June 2008) to enhance the partnership, and will establish a Joint Select Committee of the Houses of Parliament on Diaspora Affairs during 2007. This initiative was announced by the prime minister at the 2nd Biennial Jamaican Diaspora Conference held in June 2006.

Lignum Vitae Award for outstanding nationals abroad

Complimentary to these initiatives is a decision to establish a Jamaican Diaspora Foundation as a limited liability non-profit organisation. Its main goals are to strengthen the linkages and support systems between Jamaicans residing abroad and those at home and to deepen collaboration between stakeholder groups and those that serve them.

The foundation will also conduct research and serve as a central repository and clearing house for research and data relating to the Jamaican and Caribbean Diaspora.

As we look to the future, the Government of Jamaica is conscious that we also have to take steps to engage second and third generations in the Diaspora, whose ties and loyalty to Jamaica are less firm. It is for these reasons that the Ministry of Foreign Affairs and Foreign Trade, in collaboration with stakeholders, will recognise the efforts of individuals or corporations in the Diaspora who, in the view of their community, have contributed significantly to promoting Jamaica and Jamaican culture in their host country and beyond.

The award will be titled the Lignum Vitae Award. It will be inaugurated at the time of the next Diaspora Conference in 2008 and will be awarded every other year thereafter when the conference is held.