The CARICOM Secretariat has finally given approval for the suspension of the Common External Tariff (CET) on the importation of lithium-ion batteries into Jamaica.
The suspension of the CET took effect on February 2, 2024. It will last until February 1, 2025, speciifically for the importation of 240,000 Lithium-ion batteries.
Jamaica will continue to monitor the industry and utilise the mechanisms available under the Revised Treaty of Chaguaramas to verify and determine regional capacity to supply the product in the coming months. This will examine the scope for a renewal of the CET suspension.
In expressing satisfaction with the decision, Minister of Industry, Investment and Commerce (MIIC) Senator Aubyn Hill stated that the approval is a testament to the Government’s commitment to creating a sustainable and innovative future for citizens.
“The discussions with CARICOM and the successful negotiation of the CET suspension underscores our dedication to fostering a clean energy landscape in Jamaica. We are pleased that this decision will not only boost the renewable energy sector but will contribute significantly to Jamaica’s overall commitment to a greener and more sustainable future,” said Hill in a release issued by the MIIC today.
It was previously reported by the Opposition spokesperson on investment, trade and global logistics, Anthony Hylton, that CARICOM had denied Jamaica’s request for the suspension of the CET following an 11th-hour response by another member state at the meeting with the CARICOM Council on Trade and Economic Development (COTED).
However, the MIIC said that approval was granted following intervention by Hill at the 57th Meeting of the CARICOM Council for Trade and Economic Development (COTED) on November 27, 2023.
The MIIC added that there were subsequent bilateral consultations between Jamaica and Barbados, which seemingly confirms the island as the member state that delivered the 11th-hour response to block Jamaica’s request.
According to the Amended Article 83 of the Revised Treaty of Chaguaramas, which refers to the application of the CE , any alteration or suspension of the Common External Tariff on any item shall be decided by COTED in situations where the product is not being produced in CARICOM, the quantity of the product produced in the community does not meet demand, or the quality falls below the community standard.
The MIIC said that every effort was made to expedite the assessment of Barbados’s capacity to supply the product and to engage the CARICOM Secretariat for a speedy resolution.
The collaborative efforts of representatives from the Ministry of Industry, Investment and Commerce (MIIC), Ministry of Science, Energy, Telecommunications and Transport (MSETT), Ministry of Foreign Affairs and Foreign Trade (MFAFT), and Ministry of Finance and the Public Service (MOFPS), were integral to the successful negotiations. The CARICOM Secretariat also played a vital role as a facilitator. In addition, guidance was sought from the Attorney General’s Chambers (AGC) and the Jamaica Customs Agency (JCA).