Identifier
Created
Classification
Origin
08KINGSTON549
2008-06-17 18:34:00
UNCLASSIFIED
Embassy Kingston
Cable title:  

JAMAICA: AID FOR TRADE IN THE CARIBBEAN

Tags:  ENRG EINV ECON ETRD EAID IADB IMF OAS TRSY XL JM 
pdf how-to read a cable
VZCZCXRO1589
RR RUEHGR
DE RUEHKG #0549/01 1691834
ZNR UUUUU ZZH
R 171834Z JUN 08
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC 6467
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
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:
--------
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