JAMAICA: AID FOR TRADE IN THE CARIBBEAN

UNCLAS SECTION 01 OF 02 KINGSTON 000549 SIPDIS STATE FOR WHA/CAR (JTILGHMAN) (VDEPIRRO) WHA/EPSC (MROONEY) EEB/ESC/IEC (GGRIFFIN) EEB/TPP/IPE (JHALLOCK) WHA/USOAS SANTO DOMINGO FOR FCS AND FAS TREASURY FOR ERIN NEPHEW E.O. 12958: N/A TAGS: ENRG EINV ECON ETRD EAID IADB IMF OAS TRSY XL JM SUBJECT: JAMAICA: AID FOR TRADE IN THE CARIBBEAN REF: KINGSTON 277 KINGSTON 343 KINGSTON 539 SUMMARY: -------------- ¶1. (U) On June 16-17 the Organization of American States (OAS) and the International Centre for Trade and Sustainable Development (ICTSD) held a symposium in Kingston entitled "Aid for Trade for the Caribbean: Making It A Reality." The event emphasized that trade is a powerful engine for economic growth and poverty reduction for the region. Speakers discussed the importance of building trade capacity through various assistance programs. Jamaica's Finance Minister underscored his efforts to promote good governance and transparency in order to take advantage of trade capacity opportunities. End Summary. -------------- Migration of Skills Needed for Trade -------------- ¶2. (U) Ambassador Albert Ramdin, Assistant Secretary General of the OAS, emphasized trade policy reform, private sector initiatives, and infrastructure development as crucial for trade development and improving production capacity. He suggested that these efforts will create an environment for peace, stability, and prosperity in the region. He also noted that the Caribbean faces a unique challenge in developing its "human trade capacity," explaining that a majority of those who are highly educated in the Caribbean take their skills with them when they migrate to North America and Europe. Ramdin says countries must develop ways to retain these skills in order to grow trade. -------------- More Than Just Market Access -------------- ¶3. (U) Miguel Rodriguez Mendoza, Senior Fellow at ICTSD, said the World Trade Organization (WTO) needed to be more responsive to the needs of developing countries on trade. He argued that providing developing countries with increased access to the markets of developed countries was not enough, because developing countries had inadequate infrastructure and capacity to take advantage of this market access. He pointed out that Caribbean countries would not be the only beneficiaries of Aid for Trade programs, adding that a large portion of the financial resources will go to African countries that needed the most help. Mendoza called for the creation of a Caribbean Trade Task Force to organize and coordinate efforts for the region. He suggested the Inter-American Development Bank (IDB) could take the lead for such a task force, which also should include representation from the Caribbean Community (CARICOM),OAS, Caribbean Development Bank, Caribbean Regional Negotiating Machinery (CRNM),ICTSD, and relevant Non-Governmental Organizations. -------------- Good Governance Provides A Sure Footing -------------- ¶4. (U) Audley Shaw, Minster of Finance and the Public Service, said rising commodity prices, spiking world oil prices and the threat of a global food crisis were challenges to Jamaica's economic and social objectives. He said developing countries like Jamaica need trade assistance to deal with the costs associated with trade liberalization. Shaw referenced his "healthy re-engagement with multilaterals," and added that the relationship is not just about funding at a cheaper rate, but is more about the benefits that can derived from the relationship to help build capacity in Jamaica. ¶5. (U) Shaw underscored that the only way to give Jamaica a sure footing for the future is if the country embraces good governance, transparency, competitiveness, and private sector partnerships. He emphasized the importance of establishing realistic targets that can be achieved. He referenced his original deficit target of 5.5 percent of GDP, which he said the government was able to exceed by keeping the deficit down to just 4.7 percent of GDP (reftels). -------------- An End to Bending the Rules -------------- ¶6. (U) Shaw said Jamaica must demonstrate that it has discipline and fiscal responsibility, adding "these conditions must be self-imposed." Shaw expressed appreciation for the "storehouse of KINGSTON 00000549 002 OF 002 good will that Jamaica has received from the world community," saying the country now has a duty to embrace good governance. Shaw called for a different approach, adding that it will not be easy because people have grown used to bending the rules and becoming involved in illicit activities. Shaw said this must end: "we must learn to walk the walk and not just talk the talk." MOSS