MONTEGO BAY, St James — Cautioning that the Caribbean too often follows policies from wealthier nations simply because of their economic status, Pan Jamaica Group Vice-Chairman and CEO Jeffrey Hall stressed the need for independent thinking, warning that reliance on so-called best practices risks keeping the region perpetually behind.

He was speaking on the topic ‘Redefining the Flow: Smart Capital, Green Corridors, and the Future of Caribbean Logistics’ on the final day of the Caribbean Investment Forum (CIF), which was held at the Montego Bay Convention Centre from July 29 to 31.

Hall said that one of the key features of the world’s most successful logistics hubs is a high share of trade relative to gross domestic product (GDP) — often exceeding 200 or 300 per cent — as seen in countries such as Singapore.

In contrast, he noted, Jamaica’s trade share is around 73 per cent. He further noted that these leading hubs — such as Singapore, Dubai, Hong Kong, and Rotterdam — typically thrive on low or zero tariffs, highlighting that a strong commitment to free trade is a fundamental though complex element in establishing a successful logistics hub.

“So there is a temptation right now to see recent developments in global trade as a permission to put up trade barriers, and in particular tariffs, as a response to trade deficits. I think that this would be a misunderstanding of what we need right now,” Hall argued.

Pan Jamaica Group Vice-Chairman and CEO Jeffrey Hall speaks last Thursday during the Caribbean Investment Forum (CIF), which was held at the Montego Bay Convention Centre in St James from July 29 to 31.

“So the commitment to free trade is an important part of the basis of the logistics hub, and that’s a complicated phenomenon,” the CEO added.

Emphasising that he is a banana farmer, Hall pointed out that despite their admirable people and cultures, countries with a higher share of their GDP coming from agriculture are mostly some of the world’s poorest nations.

On the other hand, he noted that countries with a significantly higher share of GDP in the services industry — especially among smaller nations — are many of the world’s wealthiest countries.

These high-performing service-based economies include global logistics and financial hubs like Hong Kong, Singapore, and Panama, he said, illustrating that an economic focus on services is often associated with greater national wealth.

Hall said the World Bank annually ranks approximately 219 countries based on the composition of their GDP by sector — agriculture, industry, and services. According to the most recent data — 2024 — Jamaica’s GDP comprises about nine per cent agriculture, 18 per cent industry, and 60 per cent services, he said.

Hall argued that the obsession with the goods-producing sector is misguided. He juxtaposed it to individuals worrying about a trade deficit with stores like PriceSmart or HiLo, simply because they buy more than they sell to them. He suggested that this logic would wrongly lead someone to quit their job to start producing chickens.

Instead, he emphasised that if a country or individual can generate strong value from the services industry and has invested heavily in that sector, there is no need to be overly concerned about a trade deficit in goods.

The forum focused on four strategic pillars: The green economy, digital transformation, sustainable agriculture and food security, and logistics and transport — critical areas for building a resilient, innovative, and self-reliant regional economy.