JMMB Group Thought-Leadership Breakfast Explores Opportunities for Business Leaders to Navigate Evolving Geopolitical Landscape
The private sector is being encouraged to explore diversification in other export markets that are a part of Jamaica’s trade agreements, with a focus on boosting production capacity and building more resilient supply chains, to increase trade opportunities in the face of evolving geopolitical landscape. The call comes from Esmond Reid, Under-Secretary for Trade in the Ministry of Foreign Affairs & Foreign Trade (MFAFT) and Jamaica’s Ambassador to CARICOM, who was speaking at the recent thought-leadership breakfast hosted by JMMB Group at AC Hotel, for corporate leaders and other key stakeholders.
Reid revealed that among Jamaica’s trading partners, the United States of America (US), which stands as the island’s closest and single largest trading partner, accounts for approximately 47% of its total annual exports (US$718.24 million in 2023). He further acknowledged that the 10% baseline tariffs announced by the US in April, came as an unexpected development and a matter of significant importance for the government.
Alwayne Cousins, country chief client partnership officer at JMMB underscored the timeliness of the discussion, stating, “Today, as global trade dynamics shift and (we have seen) the United States adjust its tariff policies, the implications for small, export-driven economies like Jamaica are significant. It is therefore critical as our clients’ financial partner we provide a forum for experts and business leaders to dialogue and co-create opportunities based on the insights into this evolving (geopolitical environment), (that is) explore the challenges they present, and begin to formulate strategic responses to safeguard and strengthen Jamaica’s trade position and economy.”
In response to these new trade developments, the Foreign Affairs Ministry, which is tasked with shaping the policy environment that enables the private sector to trade competitively, has led advocacy through the support of the Embassy in Washington DC, convened high-level policy coordination meetings with key stakeholders to mitigate the fall-out and determine strategic responses, while also engaging the private sector.
For decades, the Caribbean Basin Initiative (CBI) has provided non-reciprocal, duty-free preferential access to the U.S. market for a wide range of Jamaican goods. This arrangement has been central to the competitiveness of Jamaican exports, particularly in agriculture, light manufacturing, energy related exports and our food and beverage sector. As of 2023, 90% of Jamaica’s exports to the U.S. fell under the CBI arrangement, however with these new tariffs, these arrangements are suspended.
“As part of CARICOM’s strategic response, the region is not only deepening engagement with U.S. authorities but also re-evaluating its global trade positioning. There is renewed focus on advancing intra-regional trade under the CARICOM Single Market and Economy (CSME); expanding trade and investment ties with Africa, Latin America and other global partners”, Ambassador Reid further explained.
He further noted that government, stands as the policy makers to create the environment to facilitate trade of goods produced by the private sector. Adding, “In this regard, work is advancing in expanding market access under the CARICOM–Colombia Trade, Economic and Technical Cooperation Agreement. I am pleased to report that CARICOM has submitted an Initial Offer to Colombia and the negotiations are expected to resume shortly with a view to concluding by the end of this year.” In further encouraging the opportunities in Spanish-speaking markets, Reid noted that the language factor was not insurmountable, as demonstrated by other companies like JMMB Group that have been able to successful establish operations across the region in Spanish-speaking countries. JMMB Group since 2007, rolled out operations in Dominican Republic and now offers a range of financial services, including securities brokerage, fund management, commercial banking, and pension fund administration.
Highlighting that under existing agreements with hemispheric partners such as Canada, Costa Rica, Cuba and the Dominican Republic, private sector companies could more effectively seek to utilise these trade agreements.
In sharing more on the regional response to the evolving tariffs that impacts Jamaica and the wider CARICOM region, Reid underscored the need for deeper regional integration and collaboration. “The CSME remains a cornerstone of Jamaica’s trade and economic policy. It serves as a critical pivot to mitigate risks from an increasingly uncertainty and shifting global trade environment. We continue to believe that regional integration is essential for achieving economies of scale, improving competitiveness, and enhancing the resilience of our economies. Jamaica also remains committed to the principle of full free movement within the CSME, subject to (certain considerations).” Presently only 7.7% of Jamaica’s exports is traded among its CARICOM counterparts, under existing agreements. Although acknowledging the overlap in goods being produced across several CARICOM countries could be perceived as a potential barrier to intra-regional trade; Reid contended that this can instead serve as an opportunity for collaboration among private sector companies to access larger markets and benefit from economies of scale.
The CARICOM Ambassador underscored the critical role of the private sector in Jamaica’s trading landscape, as more than beneficiaries of trade policies and agreements but as co-creators highlighting that any trade policy is only as effective as the level of consultation and coordination behind it.
Against this background the Ministry continues to deepen engagement through its JAMTRADE coordinating mechanism and via direct consultations. These platforms serve to shape negotiating positions and ensure that the trade and economic diplomacy initiatives deliver optimal results, by advancing opportunities for exporters and investors, and promoting inclusive and sustainable economic growth.
In keeping with this, the MFAFT is actively participating in the second five (5) year review of the CARIFORUM–European Union (EU) Economic Partnership Agreement (EPA) where domestic utilisation remains low due to several factors including the EU’s visa regime, non-tariff barriers and complex rules of origin. Reid noted that the matter of a visa waiver to support trade is a top priority being championed by the Ministry in order to improve access to the EU market. As it relates to the CARIFORUM-UK EPA Reid pointed “Jamaica has taken the lead in advocating for the establishment of a CARIFORUM–UK Business Forum to enable continuous engagement between private sector stakeholders on both sides.
In addition to the steps being made at a policy level, Ambassador Reid outlined that the Ministry serves as a critical resource for the private sector in their exploration of new market opportunities with ongoing research and collaboration with its overseas Mission. Of course, he underscored the need to make strategic business decisions in line with the businesses’ core competencies and for companies to pursue their own market intelligence to back business decisions.
The JMMB Group’s thought leadership breakfast is a quarterly initiative designed for the company’s corporate clients to engage key industry stakeholders who share expertise and current research that will assist business leaders in their decision-making and enable them to leverage opportunities for growth.