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President of the Jamaica Manufacturers and Exporters Association John Mahfood (Photo: Jamaica Observer)

Give us a response, JMEA asks finance minister

President of the Jamaica Manufacturers and Exporters Association John Mahfood (Photo: Jamaica Observer)

The Jamaican Government is yet to respond to proposals to assist manufacturers and exporters in reducing rising shipping costs, which is threatening the viability of their businesses.

Since the onset of the novel coronavirus pandemic, shipping costs have been rising due to challenges in the global supply chain. Freight charges per container has moved from US$2,000 last year to as high as US$20,000 at present.

A CMA CGM vessel wades through the waters of the port of Kingston. Shipping and freight costs have increased exponentially, (File photo)

With this in mind, large stakeholder groups such as the Jamaica Manufacturers and Exporters Association (JMEA), Private Sector Organisation of Jamaica (PSOJ), Jamaica Chamber of Commerce (JCC), MSME Alliance and the Customs Brokers and Freight Forwarders Association of Jamaica have lobbied for Government intervention, as they seek to address the issue, which is becoming a sore point for businesses. The organisations recently wrote two separate letters to Finance Minister Dr Nigel Clarke seeking help in addressing the impact of the rising shipping costs on their businesses and outlined proposals, which they believe would provide a limited amount of relief.

No response to pleas for help from Government

The JMEA says the finance minister is yet to respond to their proposals and pleas. Speaking at last Wednesday’s Jamaica Observer Business Forum, the JMEA President John Mahfood said no word has been received as yet from the finance minister or the Government for help and their proposal to obtain a reduction in import and customs duties.

President of the Jamaica Manufacturers and Exporters Association John Mahfood (Photo: Jamaica Observer)

The JMEA, in its letter to Dr Clarke, which was also signed by the PSOJ, JCC and the MSME Alliance, recommended that he temporarily authorises the Jamaica Customs Agency to calculate freight rates on the pre-pandemic shipping costs of late 2019. The lobby groups are of the view that this measure will help to mitigate the impact of rising costs on manufacturers, traders and the citizens in general.

Meeting with Minister Shaw

Mahfood who made the point his association has not heard from Dr Clarke, put the case before Minister of Industry, Investment and Commerce Audley Shaw during a meeting yesterday. During the meeting, Mahfood reported that Minister Shaw was sympathetic to the plight being experienced by his members declaring his ignorance that the situation was so grim.

Minister of Finance and the Public Service Dr Nigel Clarke has not responded to requests from business stakeholders to waive feight taxes given rigsing cost for the service. (Photo: Donald De La Haye)

The JMEA President said that Minister Shaw promised to raise the issue with his colleague Minister in the hope of getting some action for manufacturers with regards to customs duties and taxes to be rolled back to pre-COVID levels.