Karl Samuda, minister of Industry, Investment and Commerce.

"Make no mistake about it. I have signalled that reciprocal or appropriate action to protect the interests of the Jamaican manufacturing community will be taken immediately"

A TRADE war looms within the Caribbean Community (CARICOM) as Jamaica's Industry, Investment and Commerce minister, Karl Samuda, has issued an ultimatum to member states he believes have been antagonistic towards the country's products and nationals.

The senior Cabinet minister threatened retaliation if several of Jamaica's CARICOM neighbours did not immediately abort what he described as a hostile trade posture towards Jamaica.

In an interview with The Sunday Gleaner, a tough-talking Samuda fired the warning shots, signalling that Jamaica would no longer take the hostility lying down.

"Make no mistake about it. I have signalled that reciprocal or appropriate action to protect the interests of the Jamaican manufacturing community will be taken … immediately," Samuda said.

His stance comes against the background of the global economic crisis and the nation's worsening trade deficit.

retaliation won't help

However, Claude Clarke, former trade minister and manufacturer, said retaliation would not close the chasm in Jamaica's trade deficit.

"You can't bridge the gap … by dealing with these little obstacles that arise from time to time. (It is) infinitely more fundamental than that, and the Government needs to understand that," said Clarke in reference to recent attempts to prevent Jamaican patties and beer from entering Trinidad and Tobago.

Clarke added: "The way we have structured economic policies in Jamaica has caused (local) producers to be extremely uncompetitive. The Jamaican economy as a whole (is) highly uncompetitive, less competitive than just about everybody else that we are trading with in CARICOM and out of CARICOM."

manufacturers' handicap

Clarke said that Jamaican manufacturers were also handicapped by special arrangements provided by other governments to their native producers.

Samuda said the country's declining trade deficit placed a demand on the Government to ensure that any effort made by the local manufacturing sector was treated with the respect that it deserved to enable the nation to earn its way out of the current problems through exports.

Jamaica's protestations come just weeks ahead of the CARICOM summit to be held in Guyana next month.

Samuda added: "Look at the companies that have been bought out by members of the community. What is the Jamaican ownership of the insurance industry? What is the Jamaican ownership of our banks, et cetera? People just come in and almost do with us as they wish. Well things have changed. (We) have to put a stop to it ... ."

Samuda's solutions

Establish institutions which test products in each member state.

Decide where the authority is going to be vested, in terms of facilitating trade.

Reduce bureaucracy.

tyrone.reid@gleanerjm.com