VZCZCXRO6043
PP RUEHGR
DE RUEHKG #0051/01 0112047
ZNR UUUUU ZZH
P 112047Z JAN 07 ZDK
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC PRIORITY 4135
INFO RUCNCOM/EC CARICOM COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS SECTION 01 OF 03 KINGSTON 000051 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT PLEASE PASS FOR WHA/CAR (MFORTIN, RBUDDEN), 
EB/TPP/MTA (KOCH), EB/TPP/BTA/EWH (LAMPRON) 
STATE PLEASE PASS TO USTR FOR BRUCE HIRSH 
 
E.O. 12958: N/A 
TAGS: ECON ETRD XL JM
SUBJECT: JAMAICA: TIC FOLLOW UP RESPONSE 
 
REF: A. 06 STATE 201767 
 
     ¶B. 01/05 FORTIN/MORGAN E-MAIL 
 
¶1. Summary:  Post engaged GOJ and private sector contacts per 
instructions in ref. A.  There was broad support for the 
concept of USG assistance, whatever form it might take, 
although some believed that DVCs may prove unwieldy and 
inefficient, as CARICOM member states must reach consensus on 
any positions taken.  Representatives from the Caribbean 
Regional Negotiating Machinery (CRNM) sent a strong message 
that the first priority should be finalizing the update to 
the 1991 Trade and Investment Framework Agreement (TIFA). 
Nevertheless, there was agreement that the most fruitful 
areas to target USG expertise would be in public outreach and 
harmonization of legal frameworks.  CRNM Lead Negotiator, 
Ambassador Richard Bernal, expressed a strong desire to see a 
senior USG official come to Kingston February 1-2 to meet 
with the Trade Ministers from CARICOM when they meet for the 
Council on Trade and Economic Development (COTED).  End 
summary. 
 
-------------------- 
The Will and the Way 
-------------------- 
 
¶2. Econoff met with various stakeholders to discuss possible 
avenues for follow up to the Trade and Investment Council 
(TIC) meeting in October 2006.  Both GOJ officials and 
private sector individuals alike expressed a strong 
commitment to moving the process forward.  They noted that if 
the Caribbean does not strengthen its regional integration, 
it risks being left behind in the global economy, as its 
members' economies are too small to compete on their own. 
Furthermore, according to Winton Dyer at the Ministry of 
Foreign Affairs and Foreign Trade (MFAFT), the GOJ has the 
technical capabilities to participate in Digital Video 
Conferences (DVCs) as asked in ref. A. 
 
----------------- 
Finalize the TIFA 
----------------- 
 
¶3. Econoff met with Michelle Lowe of the Caribbean Regional 
Negotiating Machinery (CRNM) on January 4 (NOTE: Lowe 
attended the TIC in October.  ENDNOTE).  Lowe said that the 
top priority for CARICOM was text finalization of the Trade 
and Investment Framework Agreement (TIFA), and the region may 
be hesitant to proceed with DVCs until such time as the TIFA 
was updated.  She placed particular emphasis on the Immediate 
Action Agenda (IAA).  Lowe also noted that the initial phases 
of negotiation sometimes benefit from "face-to-face" 
interaction, although she conceded that financial constraints 
would make this difficult for the CARICOM member states. 
 
¶4. Lowe also stated that the proposal to split into groups 
for the DVCs, no matter what the lines of division were, 
would be problematic given CARICOM's requirement that the 
member states coordinate their positions prior to 
negotiation.  She did express hope, however, that the USG 
could provide technical expertise that would help the region 
with, in particular: trade facilitation, services, and 
protection of Intellectual Property Rights (IPR). 
 
-------------------------- 
Ambassador Bernal Blusters 
-------------------------- 
 
¶5. At this point, the lead negotiator for the CRNM - 
Ambassador Richard Bernal - entered and changed course 
somewhat.  He told econoff that the USG should forget about 
strengthening regional integration, and should concentrate 
instead on helping the region with capacity-building for 
external trade.  He noted that CARICOM had come a long way 
since the stalled negotiations for the Free Trade Area for 
the Americas (FTAA).  Back then, he said, the region could 
not even understand the concept of Government Transparency in 
Procurement, much less agree to it.  Now, he noted, it is an 
accepted practice in theory, even if they need further 
technical assistance. 
 
¶6. With this in mind, Bernal outlined a "wishlist" of five 
areas in which the USG could offer practical expertise that 
would bring the region closer to the ability to negotiate a 
meaningful Free Trade Agreement at some point in the future: 
 
-- Government Procurement: approaches and modalities for 
transparency and market access; 
 
 
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-- Standards and Technical Barriers to Trade: a 
collaboration, for example, with USG standards-setting 
agencies to build institutional capacity and to facilitate 
information exchange; 
 
-- Technical expertise on sanitary and phytosanitary measures; 
 
-- Intellectual Property Rights protection: expanding, 
perhaps, on the training currently offered by the U.S. Patent 
and Trademark Office (USPTO); and, 
 
-- Labor and the Environment: technical support that would 
bring the Caribbean into line with the USG approach. 
 
¶7. Bernal closed by noting that the Trade Ministers of the 
region would be meeting in Kingston February 1-2.  He 
observed that this would be a perfect opportunity for the USG 
to send a message about the depth of its commitment to 
exploring trade possibilities with the region.  He expressed 
his strong desire (ref. B) to see a "very senior member" of 
the USG (NOTE: He specified USTR Schwab.  ENDNOTE) come to 
Jamaica to attend a brief session of the Council on Trade and 
Economic Development (COTED), and to interact directly with 
the Ministers who must be "on board" if the TIC is to have 
any real, lasting effect. 
 
--------------------- 
A View from the MFAFT 
--------------------- 
 
¶8. On 8 January, econoff met with Robert Miller, the Head of 
the CSME Unit at the Ministry of Foreign Affairs and Foreign 
Trade.  Miller was especially keen to highlight the two areas 
that he considered the most important by far: the need for 
greater public outreach and education, and the harmonization 
of legislation throughout the region. 
 
¶9. Miller noted that there were many misperceptions among the 
public about the CSME.  As noted elsewhere in the region, the 
perception seems to be that the free movement of labor will 
merely mean the loss of Jamaican jobs to cheaper labor from 
elsewhere.  He lamented that there was, thus far, little 
dialogue among the entrepreneurs in the region in an attempt 
to "carve up" niche markets and relative comparative 
advantages, something he believes to be essential to the 
success of the CSME.  He conceded that the USG (through 
USAID) had been of some assistance with regard to public 
outreach, but lamented that there was often little lead time, 
and thus turnouts were small for public fora and discussions. 
 He hoped that - whatever form our assistance takes - the USG 
will give enough time to "do it properly."  He also strongly 
recommended that the USG coordinate any efforts to this end 
with Ivor Caryll, who heads the regional unit in Bridgetown. 
 
¶10. Regarding harmonizing legislation, Miller noted that 
Jamaica has passed all the legislation required of it to be 
compliant.  He felt, however, that some of the smaller 
economies may not have the legal expertise that they require. 
 He further stated that he felt that the CARICOM Secretariat 
might need legal assistance. 
 
¶11. In general, private sector stakeholders agreed with these 
assessments.  Douglas Orane, the Chairman and CEO of the 
Grace Kennedy Group (a diverse network of companies engaged 
in the food processing, distribution, financial, and 
remittance sectors), told econoff that regionally, only a few 
companies were making the most of the opportunities 
available.  He felt that a public education campaign would 
sensitize businesspeople, as well as assuaging the fears of 
small farmers and the urban working class that their jobs 
were not at risk. 
 
------- 
Comment 
------- 
 
¶12. The CSME is often cited as a political triumph, but its 
buzzwords outshine its achievements.  Many interlocutors 
privately concede that the CSME has not drastically altered 
any of the realities that existed before the words "regional 
integration" became so prevalent.  Virtually no one, 
furthermore, sincerely believes that there will be any 
significant level of economic harmonization on the policy 
front by 2008, the supposed deadline for full CSME 
implementation.  With that in mind, the USG may do well to 
heed the words of Ambassador Bernal, and focus our efforts on 
trade capacity-building.  Institution-building in the region 
may be a quagmire best avoided.  End comment. 
 
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