Minister of Agriculture, Roger Clarke has said that the agricultural sector continued to play an important role in the Jamaican economy, employing approximately 21 per cent of the labour force.

Making his presentation to the 2004/5 Sectoral Debate in Gordon House on May 18, Mr. Clarke said whilst the year under review saw the sector increasing its contribution to real Gross Domestic Product (GDP) by 5.1 per cent, the reported GDP growth did not highlight its contribution to secondary activities, including agro-industry, tourism, distribution, transportation and food services.

Approximately 25 per cent of the inputs of these industries were sourced from domestic agriculture with the potential for significant increase, he said. Agro-based products account for over 20 per cent of export earnings with non-traditional agricultural exports such as spices, fruits, vegetables, roots and tubers showing growth potential.

“Because of the role that agriculture plays in its impact on the cost of living, the contribution to food security, the potential for foreign exchange earnings, its impact on environmental protection, stabilization of rural communities, the Government is taking a hard look at revitalizing the sector,” he stated.

Citing the “restricted scope” of policies resulting from World Trade Organisation (WTO) rules among the four major threats to the industry, which he pointed out was still performing below its full potential, the Agriculture Minister said that sector continued to be the centerpiece of international trade discussions both in WTO and Free Trade Areas of the Americas (FTAA) negotiations.

In both cases agriculture had been the main “stumbling block” he said, as most countries including Jamaica, were very serious about defending their interests in this sector, and “it is often difficult to accommodate the varying interests of all the countries in a single approach”.

“We are also very reliant on imported foods, which are worth about twice as much as the value of our agricultural exports. We need to consider how these negotiations will impact on our import bill. We therefore have a range of vital national and economic interests to defend and promote in these negotiations,” the Agriculture Minister stated.

Mr. Clarke explained that what Jamaica and CARICOM countries along with other developing countries were emphasizing in the WTO negotiations was the development perspective and the importance of special and differential treatment, particularly for small vulnerable economies. “We are seeking to protect a number of sensitive agricultural commodities produced for the domestic market including fruits, vegetables, meats, dairy products and condiments. In addition, we are recommending the preservation of traditional non-reciprocal trade preferences particularly for sugar and bananas for a reasonable transitional period,” he elaborated.

In addition, Mr. Clarke informed, the FTAA negotiations had also encountered some difficulties during this year. At the Miami Ministerial Meeting held in December 2003, the trade Ministers agreed on a new strategy or vision for the FTAA.

The new approach, he said, was considered more pragmatic than the former one and would allow countries to accede to different levels of obligations within the FTAA. “The way forward, however, has to be further elaborated by officials at the technical level. CARICOM was successful in carving out for the region a commitment from the Ministers in Miami, to Special and Differential Treatment for smaller economies,” Mr. Clarke said.

He said Jamaica was fully prepared to further liberalize its agricultural sector within the context of the FTAA, but would wish to use practical and useful provisions for special and differential treatment, to assist with adjustments that the sector needed to undertake in order to operate in a more liberalized trading environment. “We are, therefore, supporting a more gradual and non-linear approach to liberalization in the agricultural sector,” Mr. Clarke added.

The Hemispheric Cooperation Programme (HCP), which is being established by the FTAA participants, as a practical special and differential measure, is expected to provide resources to assist with the development of the agricultural sector in smaller economies. The Agriculture Ministry has therefore submitted for inclusion in this programme, projects in the areas of fisheries development, trade policy and plant protection. Other projects will be submitted later in the process, the Minister said.

Also, Mr. Clarke stated the viability of the country’s sugar industry was being threatened by the current reforms undertaken by the European Union (EU) of its sugar regime, under the aegis of reform of its Common Agricultural Policy.

Meanwhile, The WTO negotiations on agriculture, where they sought to reduce subsidies and domestic support, also posed a serious threat to the current arrangements for sugar contained in the Cotonou Agreement, he divulged.

Turning to banana, Mr. Clarke said, “The trade issues concerning bananas and the repercussions of the WTO banana ruling have not yet passed completely”. Under the EU’s pending tariff only regime, which will replace its current Banana Import Regime, African Caribbean Pacific (ACP) countries banana producers will need to lobby for a tariff that will offer maximum WTO compatible protection against bananas originating in Latin America.