By Balford Henry, Senior Reporter
CABINET HAS approved an increase in the Common External Tarrif (CET), as well additional stamp duty on selected agricultural products, to protect Jamaican farmers from reduced duties under the World Trade Organisation (WTO) agreement.
Minister of Agriculture, Roger Clarke, told the House of Representatives on Thursday that while Jamaica, as a member of the World Trade Organisation (WTO), is committed to the export reform process, there is an obvious threat to local agricultural production of in-voice prices being lower than reference prices, leading to agricultural items clearing customs at values well below local production costs.
To compensate for the protection which had been offered by the reference prices method, the increase in the CET as well as additional stamp duty is, "the only viable solution under the WTO agreement."
He pointed out that under the WTO's agreement on agriculture, Jamaica has the option to increase its CET up to 100 per cent and up to 80 per cent under the category "other duties and charges." This "other duties and charges" category will relate to the additional stamp duty. the list of products to be affected will be finalised shortly.
He said that, in addition, legislation has been introduced to implement the WTO agreement on anti-dumping subsidies and countervailing measures and safeguards against dumped and subsidised imports.
Mr. Clarke said that it should be clear that the Government was doing everything possible to protect local farmers. But, he said, there were still certain major implications which arise from the global developments which will have to be seriously taken into account.
These include: the elimination/erosion of non-reciprocal preferential agreements; the need to comply with high standards in export markets; and increased competition for imported commodities on the domestic market.
He said that, against this background, Jamaica will have to increase efforts to make its agricultural commodities more competitive, both in terms of price and quality.
