Earl Jarrett, Chairman of the Private Sector Organisation of Jamaica Trade Policy Committee (PSOJ TPC) has welcomed plans for the Jamaican Government to establish a diplomatic mission in Brazil in the spring of this year and has expressed the hope that it will result in the further strengthening of Jamaica’s trade relations with that country.

According to Mr. Jarrett, “we also hope that common ground on issues such as the Caribbean Basin Initiative (CBI) ethanol tariff, visas for ordinary Jamaican citizens inclusive of business interests as well as partnerships in the areas of sports and sports marketing can be reached soon.”

Mr. Jarrett was hosting H.E. Antonio Francisco Da Costa E Silva, Ambassador of Brazil on Tuesday, April 3, 2012 at the Knutsford Court Hotel who addressed PSOJ members on Brazil-Jamaica trade and economic relations. Jamaica and Brazil have long enjoyed strong bilateral relations in technical cooperation programmes such as agriculture, energy, education, health, and security.

Noting that in this Jamaica’s jubilee year the country also celebrates the 50th anniversary of the establishment of diplomatic relations with Brazil, he commended Jamaica’s Ambassador-designate to Brazil, Alison Stone Roofe on her appointment highlighting her previous longstanding membership on the Committee and firm understanding of related trade matters. He also expressed the hope that she would play a critical role in addressing these and other critical trade related matters.

Mr. Jarrett noted that in the area of biofuels, Brazil is currently providing support for two capacity building projects particularly in sugarcane and ethanol production and that further discussions are currently underway to expand cooperation in the energy sector and to finalise the cooperation action points in the area of bio-fuels.

Mr. Jarrett stated that of particular concern to Jamaican business interests was the expiration of the tariff since this year of 54 US cents per gallon of ethanol entering the US. This he noted resulted in a significant decrease in the price of biofuel being imported from large producers such as Brazil and countries which previously benefited from duty free concessions under the Caribbean Basin Initiative (CBI) such as Jamaica ineligible for the incentive. “It will augur well for local ethanol producers if the US could further extend the tariff incentive on ethanol in the near future.”

Jamaica’s export of ethanol reportedly increased from US$44.8 million in 2006 to US$170.3 million in 2009 before settling at US$48.1 million in 2010.

Mr. Jarrett also stated that the Visa Abolition Agreement between both countries needs to be regularized.  Whilst there is a longstanding Agreement (since 2007) which grants exemption for 90 day visits to holders of Diplomatic and Official Passports, holders of ordinary passports inclusive of business persons face a discrepancy in that Jamaican passport holders require visas to travel to Brazil but their counterparts are allowed visa free entry for visits lasting up to 30 days.

This against the background of rising Brazilian imports, (ethanol, alcohol and corned beef) and negligible Jamaican exports to Brazil and the need for more export opportunities to be created for Jamaica. In 2010, imports from Brazil were valued at US$203,171,910 while exports and re-exports from Jamaica amounted to US$617,170 and US$126,396 respectively.

Mr. Jarrett also welcomed the interest that Brazil has expressed in pursuing a Sports Cooperation Agreement with Jamaica under which both countries would share from their areas of expertise noting that both countries had very strong brand appeal internationally in the sporting arena.

He also said that the PSOJ TPC welcomes the proposal for the first Jamaica-Brazil Joint Commission that is slated to be convened this year and that would involve participation from a range of stakeholders.

Brazil’s economy experienced high growth rates up to 2008 when the effects of shrinking commodities markets impacted negatively on exports. The economy rebounded in 2010 from recession to post growth of 7.5%; however estimates show a modest increase of 2.8% for 2011.

The Brazil administration has shown that it intends to continue the economic policies which target inflation (last recorded at 5%), exercise fiscal restraint and maintain the floating exchange rate. Socio-economic policies are also slated to be enhanced as Brazil seeks to fight poverty by ensuring a greater spread of wealth to the poor and marginalised. The Government however, is pressed to maintain some kind of balance to restrict rising prices, particularly for fuel, interest rates and strengthening currency particularly as the country seeks to maintain investor confidence ahead of the 2014 FIFA World Cup and 2016 Olympics, both of which are to be hosted by Brazil.

The PSOJ’s TPC seeks to develop and advocate trade policies that will provide new and enhanced trade opportunities for members and the wider business community.