Trade Minister Vasant Bharath is confident there will be no trade war between T&T and Jamaica as a result of a recent incident in which 13 Jamaican nationals were denied entry into this country."It is an immigration issue and not really a trade issue," Minister Bharath told the T&T Guardian.
"With regard to the issue of trade that is being raised in Jamaica, that is not an official lobby. In fact, the president of the Jamaica Manufacturers' Association has disassociated himself from that. There has been no official notification with regard to boycotting of T&T's goods. They have realised there are reasons why T&T's immigration authorities acted the way they did.
However, Abrahim Ali, president of the San Juan Business Association does not share the minister's optimism. He warned that T&T would suffer if a trade war were to erupt between the two countries."If we get into a dispute with Jamaica and Jamaica decides they willl not buy from us it means they will have an embargo on goods coming into Jamaica. A lot of our goods are sold to the Jamaican market, including soft drinks and other goods," Ali said.
In addition, he said, T&T needs labour from Jamaica aand other Caricom territories and business in T&T will be hurt if those immigrants are sent back to their home countries."Right now T&T's unemployment is low, but manufacturers need labour and we get labour from Jamaica, Grenada, Guyana and other countries. I think the governments of Caricom need to re-visit the CSME treaty," Ali said.
Nicholas Lok Jack, president of the Trinidad and Tobago Manufacturers' Association (TTMA) said earlier this week that T&T firms employ 5,000 Jamaicans, with several more employed indirectly through distribution networks and sub-industries.Several T&T companies have operations in Jamaica, including the Neal and Massy Group with its subsidiaries, Gas Products Ltd, HD Hopwood, Illuminat Jamaica and Magna Rewards, of which it owns 51.3 per cent.
There are also big Jamaican companies with a signficant presence in the T&T market. One of the most successful is the JMMB Group which has established itself as a leading brokerage house, offering investment solutions, banking and insurance services. The company recently acquired T&T-based Intercommercial Bank.
The GraceKennedy Group, one of the largest conglomerates in the region, also has a strong presence in T&T, including the GraceKennedy Money Services Network which offers bill payment services locally under the Bill Express brand and First Global (Trinidad & Tobago) Ltd.However, problems have been simmering over the trade imbalance between the two countries. Data from 2010 to 2012 show a trade surplus in T&T's favour of US$2.24 billion.
To address this and other concerns, the Jamaica-T&T Trade Facilitation Desk was established last year to encourage a healthy balance of trade between the two countries and increase intra-regional trade. The initiative is a joint agreement between the TTMA, the Trinidad & Tobago Chamber of Industry & Commerce, the Bermudez Group Ltd and the Jamaica Chamber of Commerce, with the collaboration of the Jamaica Manufacturers' Association and the Jamaica Exporters' Association.
The initiative has received strong support from the American Chamber of Commerce of Jamaica, the Jamaica Promotions Corporations and the High Commissions for Jamaica and T&T. It is a solely private-sector effort to improve and increase the volume of trade in goods and services between Jamaica and T&T.Foreign Affairs Minister Winston Dookeran will travel to Jamaica on Monday for meetings with his Jamaican counterpart, AJ Nicholson, on the recent deportation of the 13 Jamaicans and other related issues.