VZCZCXRO5905
PP RUEHGR
DE RUEHKG #0536/01 1941441
ZNR UUUUU ZZH
P 131441Z JUL 09
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC PRIORITY 7839
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
INFO RUCNCOM/EC CARICOM COLLECTIVE

UNCLAS SECTION 01 OF 06 KINGSTON 000536 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA-CAR (BPREMONT)(RALVARADO)(VDEPIRRO)(WSMITH) 
WHA-EPSC (MROONEY) (FCORNEILLE) 
EEB-ESC-IFD-EPC (McMANUS) 
SANTO DOMINGO FOR FCS AND FAS 
TREASURY FOR ERIN NEPHEW 
US INTERNATIONAL TRADE COMMISSION FOR LYN SCHLITT 
 
E.O. 12958:  NA 
TAGS: ECON OTRA TRYS ENRG EFIN EINV ETRD IBRD IMF XL JM
SUBJECT: JAMAICA RESPONSE: U.S. BIENNAL CARIBBEAN BASIN INVESTMENT 
SURVEY 
 
REF: A. STATE 60543 
¶B. KINGSTON 405 
¶C. 08 KINGSTON 366 
¶D. 08 KINGSTON 755 
 
The Raw Numbers 
--------------- 
 
¶1. (SBU) Despite enjoying some of the most generous preferential 
trading arrangements and being located next to the largest market in 
the world, Jamaica's export history continues to be less than 
impressive.  During the last decade, exports grew on average by 11.7 
percent per annum, from a low base of USD 1.2 billion in 1999 to USD 
2.7 billion in 2008.  During the same period, imports grew from USD 
3 billion to USD 8.5 billion.  With the value of imports 
outstripping exports almost three to one, there has been a 
concurrent deterioration in the country's balance of trade, which 
stood at USD 5.8 billion at the end of 2008.  Jamaica runs huge 
trade deficits with its two largest trading partners, the USA and 
the Caribbean Community (CARICOM) of which Trinidad and Tobago is 
the largest beneficiary. 
 
Nature of U.S.-Jamaica Trade 
---------------------------- 
 
¶2. (SBU) Bi-lateral trade between Jamaica and the USA has almost 
doubled to USD 3.5 billion, accounting for about 39 percent of 
Jamaica's trade between 2002 and 2007. Jamaica's trade deficit would 
have been worse but for the recent foray into ethanol production by 
poultry producer Jamaica Broilers.  Jamaica's imports from the U.S. 
continue to be fuelled by: (1) refined petroleum products; (2) 
agricultural products; and, (3) machinery and transport equipment. 
Officials from the Jamaica Trade and Invest (JTI) told emboffs that, 
in assessing trade flows between Jamaica and the USA, exports in the 
sectors covered by CBERA have generally declined.  However, the JTI 
officials posit that declining agricultural exports have less to do 
with the preference and more to do with Jamaica's lack of productive 
capacity. 
 
¶3. (SBU) JTI officials said that, although successive hurricanes 
have contributed to dwindling production, there are also systemic 
problems within the agricultural and manufacturing sectors hindering 
trade.  They further contend that a major deficiency in capacity is 
the lack of diversity in the products being exported, with bauxite 
and alumina dominant.  In this regard, they conclude that it has 
become critical for them to educate current and potential exporters 
about the benefits to be derived from the CBERA preferences. 
 
Ethanol Fuels Hope 
------------------ 
 
¶4. (SBU) Ethanol has become the new engine of export growth, with 
exports of about USD 190 million in 2008 and expected to increase, 
as Jamaica Broilers Ethanol has spent another USD 20 million to 
double its capacity to 120 million gallons of fuel grade ethanol. 
President and CEO of Jamaica Broilers, Christopher Levy, told 
emboffs that his company is now the largest CBERA-benefiting 
operation on the island.  He said his company has focused on being a 
highly reliable supplier, emphasizing quality and efficient 
operations.  He stated that CBERA has been a beneficial program for 
the Jamaica Broilers Group for several reasons: (1) opportunity to 
earn foreign exchange; (2) the possibility of new business partners 
as well as new business ventures; and, (3) development of new 
technical skill sets, providing potential upward mobility for 
employees. 
 
¶5. (SBU) Begin Report: Answers are keyed to question format 
contained in reftel A.  Distribution of this report should be kept 
limited due to the private data provided by respondents from the 
business community. 
 
¶A.  Data on CBERA-related investment activity during 2008 by sector. 
 
 
Beverages and Tobacco 
------------------- 
a. Name of Company - Red Stripe 
b. Investment in 2008 - USD 4.5 million 
c. New or expansion investment - Expansion 
d. Number of employees - 700 
e. Types of products exported - Red Stripe beer, Dragon Stout and 
Malta 
f. Estimated value of exports to the U.S. - (USD 40 million) 
 
KINGSTON 00000536  002 OF 006 
 
 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
a. Name of Company - J. Wray and Nephew Ltd. 
b. Investment in 2008 - USD 1 million 
c. New or expansion investment - Expansion 
d. Number of employees - 544 
e. Types of products exported - Rum 
f. Estimated value of exports to the U.S. - USD 7.5 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
Mining and Chemicals 
-------------------- 
a. Name of Company - PETROJAM Ethanol 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of employees - 12 
e. Types of products exported - Fuel Grade Ethanol 
f. Estimated value of exports to the U.S. - USD 52.4 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
a. Name of Company - Jamaica Ethanol Processing Ltd 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of Employees - 31 
e. Types of products exported - Anhydrous Fuel Grade Ethanol 
f. Estimated value of exports to the U.S. - USD 37 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
a. Name of Company - Jamaica Broiler Ethanol Ltd 
b. Investment in 2008 - USD 20 million 
c. New or expansion investment - Expansion 
d. Number of Employees - 35 
e. Types of products exported - Anhydrous Fuel Grade Ethanol 
f. Estimated value of exports to the U.S. - USD 109.8 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
a. Name of Company - Lydford Mining Company 
b. Investment in 2008 - USD 0.8 million 
c. New or expansion investment - Expansion 
d. Number of Employees - 45 
e. Types of products exported - Whiting Grade Limestone 
f. Estimated value of exports to the U.S. - USD 1.3 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
a. Name of Company - Jamaica Gypsum and Quarries Ltd. 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of Employees - 31 
e. Types of products exported - Gypsum 
f. Estimated value of exports to the U.S. - USD 0.2 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
a. Name of Company - Sure Products Manufacturing Company Ltd 
b. Investment in 2008 - USD 0.53 million 
c. New or expansion investment - New and Expansion 
d. Number of Employees - 46 
e. Types of products exported - Veneer Plaster and construction 
material 
f. Estimated value of exports to the U.S. - USD 0.12 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
Fresh Produce 
------------- 
a. Name of Company - Ministry of Agriculture Export Division 
b. Investment in 2008 - USD 0.2 million 
c. New or expansion investment - Expansion 
d. Number of employees - 34 
e. Types of products exported - Pimento 
f. Estimated value of exports to the U.S. - USD 0.4 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
a. Name of Company - Advanced Farm Technologies Jamaica Ltd. 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
 
KINGSTON 00000536  003 OF 006 
 
 
d. Number of employees - 280 
e. Types of products exported - Papaya 
f. Estimated value of exports to the U.S. - USD 2 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
a. Name of Company - Jamaica Export Trading Company 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of employees - 8 
e. Types of products exported - Pimento berries and Canned Ackees 
f. Estimated value of exports to the U.S. - USD 0.4 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
Other Manufactured Products 
--------------------------- 
a. Name of Company - Wisynco Group Ltd. 
b. Investment in 2008 - USD 5 million 
c. New or expansion investment - Expansion 
d. Number of employees - 180 
e. Types of products exported - Beverages 
f. Estimated value of exports to the U.S. - USD 0.06 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
a. Name of Company - Jalex Manufacturing Ltd 
b. Investment in 2008 - USD 0.23 million 
c. New or expansion investment - Expansion 
d. Number of employees - 42 
e. Types of products exported - Aluminum extrusion and scrap 
f. Estimated value of exports to the U.S. - USD 0.15 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
Pharmaceuticals-Cosmetics and Personal Care Products 
--------------------------------- 
a. Name of Company - Starfish Oils Ltd 
b. Investment in 2008 - USD 0.25 million 
c. New or expansion investment - Expansion 
d. Number of employees - 30 
e. Types of products exported - Scented candles, aromatherapy oils 
and soaps, bath salts and incense 
f. Estimated value of exports to the U.S. - USD 0.05 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
a. Name of Company - P.A. Benjamin Manufacturing Company 
b. Investment in 2008 - USD 0.05 million 
c. New or expansion investment - Expansion 
d. Number of employees - 44 
e. Types of products exported - Pharmaceuticals (health care), food 
flavorings and savouries 
f. Estimated value of exports to the U.S - USD 0.03 million 
g. Would project have been launched in the absence of CBERA-CBTPA 
preferences - No 
 
Processed Foods 
--------------- 
a. Name of Company - Grace Foods International Ltd. 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of employees - 52 
e. Types of products exported - Juices, drinks, coconut water, 
syrups, teas, jams, jellies, condiments, sauces, seasonings, soups, 
pasta, dried, and frozen meals, puddings, cakes, porridges, chips, 
coconut milk, ackees, evaporated milk, canned vegetables and meats 
f. Estimated value of exports to the U.S. - USD 23.4 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
a. Name of Company - Gray's Pepper Products Ltd 
b. Investment in 2008 - USD 50,000 
c. New or expansion investment - Expansion 
d. Number of employees - 29 
e. Types of products exported - Hot Pepper Sauces 
f. Estimated value of exports to the U.S. - USD 0.7 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
a. Name of Company - Trade Winds Citrus Ltd 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
 
KINGSTON 00000536  004 OF 006 
 
 
d. Number of employees - 700 
e. Types of products exported - Fresh fruits, juices, purees and 
concentrates 
f. Estimated value of exports to the U.S. - USD 0.05 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
a. Name of Company - Jamaica Cane Products Sales Ltd. 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of employees - 13 
e. Types of products exported - Bulk raw sugar 
f. Estimated value of exports to the U.S. - USD 2.6 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
a. Name of Company - Betapac 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of employees - 23 
e. Types of products exported - Curry powder 
f. Estimated value of exports to the U.S. - Indirect exports 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
a. Name of Company - Mavis Bank Coffee Factory Ltd. 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of employees - 300 
e. Types of products exported - Roasted and green coffee 
f. Estimated value of exports to the U.S. - USD 2 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
a. Name of Company - Shim's Successors Company Ltd. 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of employees - 38 
e. Types of products exported - Fruit syrup 
f. Estimated value of exports to the U.S. - USD 0.04 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
a. Name of Company - Agriventures Jamaica Ltd. 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of employees - 30 
e. Types of products exported - Fresh Produce and Processed Foods 
f. Estimated value of exports to the U.S. - USD 1.5 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - No 
 
a. Name of Company - Jamaica Biscuit Company Ltd. 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of employees - 500 
e. Types of products exported - Biscuits and crackers 
f. Estimated value of exports to the U.S. - USD 2 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
a. Name of Company - Jamaica Standard Products Company Ltd. 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of employees - 150 
e. Types of products exported - Green and roasted coffee and sauces 
 
f. Estimated value of exports to the U.S. - USD 0.22 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
a. Name of Company - Salada Foods Jamaica Ltd 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of employees - 60 
e. Types of products exported - Instant Coffee 
f. Estimated value of exports to the U.S. - USD 0.6 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
a. Name of Company - Coffee Industries 
b. Investment in 2006 - USD 50,000 
c. New or expansion investment - Expansion 
 
KINGSTON 00000536  005 OF 006 
 
 
d. Located in free trade zone - No 
e. Types of products exported - Roasted coffee beans 
f. Estimated value of exports to the U.S. - USD 771,000 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
h. Approximate share of inputs from CBERA beneficiary origin - 50 
percent 
 
a. Name of Company - Central Food Packers Ltd. 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. number of employees - 200 
e. Types of products exported - Jerk seasoning and sauces, Jams and 
Jellies, Ackees, Callaloo and Bammies 
f. Estimated value of exports to the U.S. - USD 1.5 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
a. Name of Company - Continental Baking Company Ltd 
b. Investment in 2008 - USD 0.2 million 
c. New or expansion investment - Both 
d. Number of employees - 642 
e. Types of products exported - buns, biscuits, crackers and bread 
f. Estimated value of exports to the U.S. - USD 1.7 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
a. Name of Company - Seprod Ltd 
b. Investment in 2008 - Zero 
c. New or expansion investment - NA 
d. Number of employees - 850 
e. Types of products exported - Baked goods, UHT Beverages, Cornmeal 
based products, oils and fats 
f. Estimated value of exports to the U.S. - USD 1 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
a. Name of Company - Go Global Jamaica Ltd. 
b. Investment in 2008 - USD 0.05 million 
c. New or expansion investment - NA 
d. Number of employees - 4 
e. Types of products exported - Food items, clothing and raw 
materials 
f. Estimated value of exports to the U.S. - USD 0.22 million 
g. Would project have been launched in the absence of 
        CBERA-CBTPA preferences - Yes 
 
Comments on Market Access 
------------------------- 
 
¶6. (SBU) Gillian McDaniel, Senior Consulting Officer at JTI told 
emboffs that at the general level, CBERA has had a positive impact 
on the Jamaican economy.  She said in recent times the trade 
facility has stimulated increased investment in the ethanol 
industry, with Jamaica Broilers Ethanol making a USD 45 million 
investment.  CBERA has also had a positive impact on small and 
medium enterprises (SMEs), albeit to a lesser extent.  The inability 
of SMEs to take full advantage of CBERA lies in their limited export 
capacity.  She explained that Jamaica therefore needs a campaign to 
educate exporters of the existence of market access to the U.S. 
 
¶7. (SBU) Regarding diversification of the export base, McDaniel 
posits that niche products such as sauces, rum, and coffee have 
continued to enjoy strong export growth and the challenge is to 
increase production in non-traditional sectors, given the strong 
demand in the U.S.  However, she was quick to point out that the aim 
must be to transform the so called niche products into larger, more 
mainstream exports.  She said that more information is required to 
assess the full impact of non-traditional export growth on the 
Jamaican economy, and as such JTI is undertaking an Export Capacity 
survey to create a database of exporters, products, and markets. 
 
 
¶8. (SBU) Jean Smith, Executive Director of the Jamaica Exporters 
(JEA), told emboffs that they currently have 230 registered members 
in 16 sub-sectors.  She said 30 of these exporters are relatively 
large, and about 115 have exported to the U.S. at some point.  With 
export growth less than impressive, the GOJ and the JEA are 
collaborating on a National Export Strategy (NES) to significantly 
expand export in the next 2 to 3 years.  Technical support is being 
provided by the International Trade Council (ITC) out of Geneva.  In 
essence, the ITC is providing Jamaica with a template, which will be 
customized to fit the local context.  The aim is to concentrate on 9 
 
KINGSTON 00000536  006 OF 006 
 
 
sectors including agro-processing, mining and quarrying, fashion, 
apparel, and jewellery. 
 
¶9. (SBU) However, contrary to the position held by the JTI, Smith is 
of the view that Jamaica cannot compete on volume, and as such the 
country has to concentrate on niche markets and value addition 
through intellectual property and diversification.  The JEA is 
therefore working with the Jamaica Intellectual Property Office 
(JIPO) to establish geographical indicators (GI) for products like 
Blue Mountain coffee.  The JEA is also embarking on a Brand Jamaica 
Initiative, which will include registered certification marks to 
gain indigenous status.  Smith also said there is a lack of market 
research and support for many of the fledging exporters, which she 
hopes will be revisited under the NES. (Note:  Access to capital 
remains a binding constraint for many businesses in Jamaica; 
interest rates on business loans range 18 to 24 percent per year. 
The high cost of capital hinders both start ups as well as business 
expansion.  End Note). 
 
Comments on Survey 
------------------ 
 
¶10. (SBU) In general Jamaican exporters remain relatively 
unresponsive to the CBI survey.  In fact, there was a further 
decrease in the number of respondents, with over 30 percent of the 
exporters contacted not responding.  This continued apathy appears 
to be largely due to a lack of awareness of preferential trading 
arrangement.  Some exporters continue to admit ignorance of the 
arrangement, suggesting the need for some form of education. 
However, some exporters understand the importance of the market 
access, including one exporter who responded to the survey within an 
hour of receipt, telling emboffs the trade arrangement in crucial to 
his economic survival.  Another exporter said the trade facility has 
assisted his company in accessing the U.S. market, thus assuring the 
competitiveness of his company's products.  End Comment. 
MOSS