50% cut in export fees a boost for manufacturers
The reduction in the fees came into effect on April 1. It was implemented by the Jamaica Agricultural Commodities Regulatory Authority (JACRA) and the Trade Board Limited.
“With the 50 per cent reduction in those fees, a number of our companies will now be in a better position to export,” Mr. Green told JIS News.
“More importantly, we’re talking about a $100 million in fees that they would normally be paying that would now be in those companies to go back into other forms of innovation, to ensure that they continue to be competitive,” he said.
“So it is a significant shot in the arm, especially for our manufacturers and our agro processors, and I think this will augur well for our export numbers, especially after we get through this coronavirus (COVID-19) crisis,” he added.
Mr. Green pointed out the Government is committed to removing barriers in order to ensure that more local companies can sell goods abroad.
“We believe that new markets are going to be opening up for Jamaica and we believe that markets that we would not be competitive in we are now going to be able to access those markets across the region and internationally. So the truth is the more that we can make it easier on our side for manufacturers to access those markets, then I think it will be better for all of us,” he said.
Mr. Green told JIS News that another benefit of the opening up of the export market, is the increased innovation and new products that can be created by local agri businesses.
“It will allow them to go into new product lines. I think we are quite aware of the surplus of agriculture produce, so people will explore how that can be made into products that can be exported. We have already tasked Jamaica Promotions Corporation (JAMPRO) to look across our regional partners to see if there are needs for the excess agriculture produce that we have,” the State Minister said.
The 50 per cent reduction impacts agricultural commodities, including coffee, cocoa, spice and coconut licensing fees.
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