It’s a growth issue
Caricom must balance industrial protection with regional competitiveness
At first glance, the issue may appear technical and centred on tariffs and trade classifications. But, for manufacturers across Jamaica and the wider Caribbean, the implications are far more significant. This is fundamentally about regional competitiveness, supply-chain resilience, operational flexibility, exports, and the long-term sustainability of Caribbean manufacturing itself.
The proposal currently under consideration would place glass bottles under HS 7010.90.10 (bottles for soft drinks, beers, wines & spirits) on caricom’s List of Commodities Ineligible for Conditional Duty Exemptions — a move which would effectively apply a mandatory 15 per cent common external tariff (CET) on extra-regional imports.
The recommendation follows a recently commissioned regional study which concluded that installed regional production capacity satisfies the threshold required for “competing status” under Caricom trade rules.
The Caribbean private sector has long supported the vision of a stronger and more self-sufficient regional economy. Businesses across the region have consistently advocated for deeper regional integration, stronger manufacturing capacity, and more resilient regional supply chains. These are objectives we fully support. However, regional integration must also remain balanced, commercially practical, and responsive to the realities facing manufacturers across the region.
The central issue here is not whether furnaces exist or whether bottles can theoretically be produced within Caricom. The real issue is whether manufacturers can consistently access the right bottles, in the right quantities, at the required quality standards, within commercially viable timelines, and at competitive prices. Those are the factors that determine production continuity, export competitiveness, customer delivery commitments, and business sustainability.
Importantly, the study itself acknowledges stakeholder concerns relating to supply reliability, lead times, product variety, quality, pricing pressures, MSME access, and the risks associated with dependence on a single regional supplier.
These concerns should not be viewed as secondary operational matters. They are central to the competitiveness of the Caribbean productive sector.
Jamaican manufacturers already operate in an increasingly challenging business environment marked by rising operational costs, inflationary pressures, supply-chain disruptions, foreign exchange volatility, increased taxation, and growing international competition. Against that backdrop, preserving sourcing flexibility remains critically important — particularly for exporters and manufacturers operating under strict production timelines and specialised packaging requirements.
The concern being raised by Jamaica Alcohol Beverage Association (JABA), alongside several major private sector organisations, is therefore not opposition to regional manufacturing. Far from it. The Caribbean absolutely needs stronger regional industries, greater industrial resilience, and increased investment in manufacturing capacity. But strengthening regional manufacturing cannot come at the expense of wider regional competitiveness.
The current proposal raises legitimate concerns around increasing dependence on a single regional supplier without fully addressing broader commercial realities, including contingency planning, supply resilience, specialised product availability, and operational continuity.
This becomes especially important given the role glass bottles play as a critical industrial input across beverage manufacturing, agro-processing, exports, tourism-linked production, and MSME development throughout the region. Indeed, these are the very reasons glass bottles were not placed on the so-called List of Ineligibles when the first CET was developed in the early 1990s.
For many businesses, packaging is not interchangeable. Specialised bottle designs, quality specifications, branding requirements, and delivery schedules form part of their competitive advantage in both regional and international markets. The discussion, therefore, cannot be reduced simply to whether bottles can technically be produced.
The wider question is whether the proposed policy framework strengthens the entire regional value chain in a sustainable and commercially viable way. Caricom works best when policy decisions carefully balance industrial development with competitiveness, innovation, and market realities. There is room for constructive solutions. Targeted support for regional manufacturing, investment in expanded product capability, stronger quality assurance systems, improved supply reliability, and structured mechanisms for specialised imports can all form part of a balanced path forward. But decisions of this significance should benefit from deeper consultation and fuller technical engagement with the industries most directly affected.
The matter is expected to come before regional trade officials and ultimately the Council for Trade and Economic Development (COTED) for further deliberation, making this a critical moment for Jamaica’s productive sector to ensure its concerns are fully considered before any final determination is made.
Jamaica has always been a strong advocate for regional integration and regional manufacturing development. But regional integration must never become disconnected from commercial reality. As discussions continue, Jamaica’s Government must strongly advocate for deeper technical review, broader stakeholder consultation, and a fuller assessment of the downstream economic implications for manufacturers, exporters, MSMEs, and regional supply chain resilience.
This is not simply a trade policy discussion. It is a competitiveness issue. It is an export issue. It is a manufacturing resilience issue. And, ultimately, it is a Caribbean economic growth issue. The objective cannot simply be to protect theoretical production capacity. The objective must be to build a regional economy that is competitive, resilient, innovative, and capable of supporting sustainable growth across the wider productive sector.
Dianne Ashton-Smith is head of corporate affairs at Red Stripe and chairperson of Jamaica Alcohol Beverage Association (JABA).
Dianne Ashton-Smith