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Editorial
April 29, 2016

We all need to support the buy Jamaica campaign

The long-standing and enormous trade deficit between Jamaica and Trinidad and Tobago should have been addressed many years ago. A pragmatic resolution to this festering issue requires calm, sober thinking, and careful diplomatic action. The deliberations must start with the facts, the first being the implications of a trade boycott.

First, there is nothing that Jamaica imports from Trinidad that cannot be imported from numerous other countries. Importing from Trinidad is not necessary or essential.

Second, if Jamaica was to stop importing everything from Trinidad it would have very little, if any, economic effect on Jamaica, especially since our exports to Trinidad are not significant in volume.

Third, if Jamaica stops buying goods from Trinidad it would hurt the manufacturing sector of that economy, which is already suffering a severe recession following the drop in oil prices.

Fourth, less imports or no imports from Trinidad would have a positive impact on the manufacturing sector in Jamaica at a time when the Government is desperately seeking to accelerate economic growth. It would increase production, generate employment and save foreign exchange.

Fifth, trade between Jamaica and Trinidad is the basis of the Caricom Single Market and Economy and the only justification for regional economic integration. Caricom would be adversely affected, but what is useful would still be left intact, that is regional co-operation, eg the University of the West Indies, international trade negotiations, etc.

Sixth, there would be political and diplomatic fallout as Jamaica would be accused of destroying Caricom, just as we have been accused of doing to the West Indies Federation. Trust among the rest of Caricom would never recover.

The clear implication is that a ban on imports from Trinidad would have costs and benefits. But we should consider this: First, a trade action is not the way to respond to an immigration issue which is not confined to Trinidad. Ill-treatment of Jamaicans occurs in other countries. Are we going to boycott goods from the United States?

Second, the import bill and the stagnation of the manufacturing sector are not caused by Trinidadian manufacturers being able to produce goods at a lower cost than their counterparts in Jamaica.

Third, a ban of imports from Trinidad would not necessarily help the local manufacturing sector because the result, in all probability, would be imports from China, the US and the rest of the world. Therefore, there is no economic gain for Jamaica.

The way to proceed is for our Government to intensify its campaign to buy Jamaican goods and services. That, we believe, will work if Jamaican merchants, importers and consumers support the campaign. If they do not, then Jamaica will continue to import goods, including from Trinidad.

Also, Jamaican manufacturers must become internationally competitive in price and quality and then there will be no issue of excessive imports from Trinidad or from anywhere else.

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