PRESIDENT of the Jamaica Manufacturers and Exporters Association (JMEA), Richard Pandohie, has bemoaned the lack of an export strategy, which he said has contributed to Jamaica’s worsening trade deficit.

He knocked successive governments for not putting in place such a strategy targeting the manufacturing sector for growing exports, while curtailing imports. Speaking at Tuesday’s official opening of Paramount Jamaica Trading $600-million world-class lubricant plant at 39 ¼ Waltham Park Road in Kingston, Pandohie used the importation and export of lubricants to illustrate the lack of an export strategy and the need for one at this time.

He pointed out that “in 2018 Jamaica imported US$720 million in lubricants, which was 83 per cent more than the country imported in 2016, which it almost doubled”.

On the export side, he indicated that Jamaica only sent away US$2 million worth of lubricants in 2018 when it exported $230 million in 2017.

According to Pandohie, “The lubricant is a direct indicator of the issues we are having in the country; now this stands a direct indicator of the economic health of our nation.”

The latest International Merchandise Trade Bulletin put out by the Statistical Institute of Jamaica (STATIN) confirmed Pandohie’s point of Jamaica’s worsening trade deficit, due to high imports, which continue to outpace exports.

The trade deficit has grown to almost US$2.5 billion for the period January to June 2019 coming from US$2 billion for the same period last year. According to STATIN, Jamaica’s imports for January to June 2019 were valued at US$3,281.8 million, an increase of 13.3 per cent when compared to US$2,897.4 million which was spent for the similar period in 2018.

The bulletin, which was released last week, showed that revenue from exports amounted to US$883.4 million for the current review period, a 2.5 per cent increase when compared to the US$861.7 million earned in the similar period in 2018.

Pandohie pointed to the need for an export strategy to increase manufacturing, reduce imports and grow the country out of its economic dilemma while urging the Government to have a sit down with interest groups to draft such a document. He made the point that Jamaica’s exports are uncompetitive indicating that such a strategy would address this issue.

“Right now Minister (Audley) Shaw the way we see it… we need a strategy, we need a strategy for exports and to focus on manufacturing, we don’t have a strategy; using Ann-Marie Vaz ting a pure pretty talk, action time now…” the JMEA president encouraged.

He added that what is needed is for the coming together of policy actors to devise a central strategy, which is measurable, quantifiable and is evaluated every quarter against performance.

He contended that over the years Jamaica has moved away from manufacturing entirely towards the services sector, which contributes as much as 70 per cent of Jamaica’s gross domestic product (GDP) “but we need back manufacturing to bring back middle-class jobs and transformation…”

Industry, Commerce, Agriculture and Fisheries Minister Audley Show, who spoke next at the function, countered Pandohie assertion that the Government doesn’t have an export strategy in place. He argued that such a strategy exists but it is now unfolding.

He gave a commitment to meet and discuss the strategy with Pandohie while pointing to a number of initiatives to boost manufacturing and exports while offering import substitution.