US Chamber of Commerce: COVID-19 crisis offers opportunity for Jamaica in supply chain to US

Speaking on Wednesday at a webinar hosted by the American Chamber of Commerce of Jamaica, Herrington gave as an example, the fact that the US can no longer get fruits from Mexico.
In response, Minister of Industry, Commerce, Agriculture and Fisheries, Audley Shaw said Jamaica needs investors to create orchards on the hundreds of acres of arable lands left idle with the demise of sugar cane production.

He commended Chairman of the NCB Financial Group Michael Lee Chin for taking on three thousand acres of sugar land which will be put into production, starting with short-term crops such as Irish potatoes, and eventually moving into long- term crops such as mangoes.

Minister Shaw said the challenge has always been to produce industrial crops, adding that there is need to accelerate the transition from sugar cane production to orchard crops. 

Turning to other areas which can benefit Jamaica, Herrington said  if the country enhances its ICT capability, it can take advantage of what he describes as a phenomenon underway where US companies are relocating from Asian-based supply chains, specifically China, because of the crisis.

The US Chamber VP said the current trade war between the US and China, as well as the combination of supply chain disruption because of an essential services misalignment has resulted in many US companies considering near-shoring, and Jamaica is the consummate near shore for this.

The senior VP noted that the talent capacity exists in Jamaica adding that if some of the sectors reorient and take advantage of the very high capacity in capital, then near shoring will be advantageous to Jamaica.

The US Chamber of Commerce has more than three million members and associates, and Herrington gave a commitment during the webinar to assist and to work with its counterpart AMCHAM Jamaica in pairing partners to ensure that adequate resources are put in place.

Economic/Commercial Officer at the US Embassy Joe James informed the participants that the embassy is pursuing the expansion of loan guarantee programmes and other assistance between Jamaican financial institutions and the US government.

He said the development finance corporation (DFC) has two million US dollars available to assist MSMEs in vulnerable communities.  He said the development credit authority which was providing a loan of US$25 million for investment in energy efficiency, is now making eight million of that amount for loans which do not necessarily focus on energy projects.

James said there are a number of other loan facilities available for companies which are working on solutions to combat COVID-19, for example producers of hand sanitizer or masks.

He added that the DFC is expanding support to banks and other financial institutions that provide SMEs with short-term loans to get through the three months when operations were hampered, noting that financing is also available for supply chain and distribution networks related to the health sector.

AMCHAM President, Ann-Dawn Young Sang emphasized that the COVID-19 crisis also allows for closer collaboration between the Jamaican government, the US Chamber and the US Embassy which will allow Jamaican businesses to take advantage of the various opportunities. She reminded participants of avenues of financing available and other options that exist, for example: the role that the US Export-Import Bank plays for not only US firms but also for Jamaican companies. She stated that AMCHAM Jamaica is having talks aimed at highlighting and bringing to the forefront opportunities and options available in the US and other global markets covering all the items raised in the webinar discussions. She stated that AMCHAM Jamaica is a bridge to these other large stakeholder groups ranging from the US Chamber to its global network of over 117 AMCHAM’s worldwide and intends to utilize its resources.

In response to the need to help Jamaica attract foreign investors and get access to US markets, AMCHAM Jamaica hosted the webinar titled ‘Creation of a ‘New Normal’, Getting Back to Business’ that was moderated by AMCHAM past president and chair of the AMCHAM trade and investment committee Allison Peart.

AMCHAM Jamaica intends to host another Trade and Investment webinar in June 2020 to continue the dialogue to assist Jamaica with getting back to business.