Sharing a laugh at the Christmas luncheon of the Private Sector Organisation of Jamaica (PSOJ) are (from left), PSOJ vice-president Earl Jarrett, Prime Minister Bruce Golding and PSOJ chief executive officer, Sandra Glasgow, at the Hilton Kingston hotel on Tuesday. - Ricardo Makyn/Staff Photographer

Failing to agree to a new trade pact with Europe could add US$72 million (J$5.1 billion) to the export bills of Jamaican traders, in the form of tariffs, Prime Minister Bruce Golding said yester-day, the first time that the potential fallout has been quantified.

But, the added duties could be even higher if goods sold to European Union (EU) countries by Jamaicans crest last year's US$471 million (J$33.4 billion). It also spells for Jamaica a worsening of its balance of payments with the prospect of a wider trade deficit if producers pulled back from normal supplies to Europe.

Jamaica is part of the 16-member Cariforum bloc now negotiating with the EU for a new Economic Partnership Agreement (EPA) to replace the Cotonou Agreement which dies December 31.

"Come the first of January, anything that we export to Europe immediately attracts duty," said Golding, speaking to industry leaders and big corporate bosses at the Private Sector Organi-sation of Jamaica's Christmas luncheon Tuesday.