JAMAICA’s Ministry of Industry, Investment and Commerce (MIIC) on Monday announced that the Caricom Secretariat has authorised the suspension of the Common External Tariff (CET) in respect of the importation of lithium-ion batteries into Jamaica.

This decision follows an intervention made by Senator Aubyn Hill, the minister of industry, investment and commerce, at the 57th meeting of the Caricom Council for Trade and Economic Development (COTED) on November 27, 2023, in addition to subsequent bilateral consultations between Jamaica and Barbados. It marks a pivotal development in fostering a conducive environment for investments in Jamaica’s renewable energy sector.

“The suspension of the CET is effective from February 2, 2024 to February 1, 2025, for a quantity of 240,000 lithium-ion batteries. Jamaica will continue to monitor the industry and utilise the mechanisms available under the Revised Treaty of Chaguaramas to verify and determine regional capacity to supply the product in the coming months. This will be an important factor in examining the scope critical for a renewal of the CET suspension,” according to a release from the MIIC on Monday.

The release said the collaborative efforts of representatives from MIIC; Ministry of Science, Energy, Telecommunications and Transport; Ministry of Foreign Affairs and Foreign Trade; and Ministry of Finance and the Public Service were integral to the successful negotiations.

“The Caricom Secretariat also played a vital role as facilitator. In addition, guidance was sought from the Attorney General’s Chambers and the Jamaica Customs Agency. These collective actions align with the provisions outlined in the Amended Article 83 of the Revised Treaty of Chaguaramas, regarding the operation of the Common External Tariff. This article stipulates that any alteration or suspension of the Common External Tariff on any item shall be decided by COTED in situations where the product is not being produced in the [Caribbean] Community, the quantity of the product produced in the community does not meet demand, or the quality falls below the community standard,” said the release.

It also said that the Ministry of Industry, Investment and Commerce, acting as the authorised body responsible for engaging with COTED on Jamaica’s behalf, played a pivotal role in securing the favourable outcome. Every effort was made by the MIIC and other GOJ representatives to expedite the assessment of Barbados’s capacity to supply the product and to engage the Caricom Secretariat for a speedy resolution.

In expressing his satisfaction with the decision, Hill said: “This approval is not just a win for the renewable energy sector but a testament to our commitment to creating a sustainable and innovative future. The discussions with Caricom and the successful negotiation of the CET suspension underscore our dedication to fostering a clean energy landscape in Jamaica. We are pleased that this decision will not only boost the renewable energy sector but will contribute significantly to Jamaica’s overall commitment to a greener and more sustainable future.”