Jamaica to implement tariff liberalization under CARIFORUM-European EPA

The government of Jamaica confirmed on January 14, 2013, that it had taken the necessary steps to begin implementing the tariff liberalization aspects of the CARIFORUM-European Economic Partnership Agreement (EPA).

The announcement comes after criticism from the European Union’s ambassador to the region, Paola Amadei, over delays to Jamaica’s implementation of the pact since the signing of the Economic Partnership Agreement in 2008. She highlighted that Jamaica was more than two years behind on approving the necessary changes to its legislation, and highlighted the importance of the agreement in terms of improving Jamaica’s competitiveness and opening up new opportunities for businesses.

The Jamaican government confirmed that the Cabinet had approved the necessary legislative amendments to the Customs Act to implement the new tariff arrangements, although the legislation has not yet been formally enacted. Nevertheless, Jamaica began implementing the reduced import tariff rates from January 1, 2013, and will over the next 25 years gradually bring its regime in line with that agreed in the Schedules to the Economic Partnership Agreement.

Jamaica has notified the actions that it has taken to implement the tariff reductions to the joint Trade and Development Committee, which is overseeing the implementation of the agreement, the government said.

The CARIFORUM-European Economic Partnership Agreement’s establishment was facilitated through the 2000 signing of the Cotonou Agreement, which replaced four successive Lome accords. The facility puts in place a comprehensive framework for African, Caribbean and Pacific (ACP)-EU relations, centered on economic development, the reduction and eventual eradication of poverty, and the smooth and gradual integration of ACP states into the global economy. With a view to achieving these objectives, the Cotonou Agreement makes provision for the ACP and EU to engage in World Trade Organization-compatible trading arrangements.

In this vein, Article 36 of the Cotonou Agreement commits the Parties to removing, progressively, barriers to trade between them, including tariff rates, and enhancing co-operation in all areas relevant to trade. The EU has provided considerable funding to Caribbean territories to support the EPA’s implementation and aid their reform programs.

Source: TAX-NEWS