Speaking Notes For Prime Minister P.J. Patterson
For Official Signing Of
Jamaica-European Union Country Strategy Paper and
National Indicative Programme (2001-2007)
Wednesday, February 27, 2002
Salutations
Sc.__,
• Happy to be participating in the signing of this very
important and timely Agreement.
• It is of special significance given my personal, close and
extensive involvement in the Lome process.
- Minister responsible for trade when Lome Convention
signed in 1975.
- Senior Minister of Government at the time of the
signing of Lome IV Agreement in 1990.
- Prime Minister with lead responsibility for External
Trade Negotiations for CARICOM/CARIFORUM as the
ACP prepared for and participated in the signing of the
Contonou Agreement in 2000.
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• ACP-EU partnership agreements represent perhaps the most
enduring model of North-South Cooperation, based on
partnership and solidarity.
• ACP Countries have benefited significantly from nonreciprocal
preferential access to European markets, trade
protocols for products such as sugar, rum and bananas, and
development assistance under the Financial Protocols of the
European Development Fund (EDF).
• One can readily understand the pride of place the EU holds
in Jamaica's international economic relations as the largest
provider of grant resources to the country.
• Total financial assistance to Jamaica since Lome I can
conservatively be estimated at EUR 530 million (J$21.2
billion).
• The people and Government of Jamaica remain highly
appreciative of the continuing substantial EU support.
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• The principal areas of economic co-operation were roads
(EUR 103.4 million/J$4.1 billion); water infrastructure (EUR
57.0 million/J$2.3 billion); agriculture (EUR 39.0 million/
J$1.6 billion); trade and support to small and micro
enterprises.
• Under the 8th EDF the focus of the co-operation was poverty
alleviation.
• Jamaica has benefited from resources for shortfalls in export
earnings from the mining sector, under the Special Financing
Facility for Mining Products (SYSMIN), and from the
agricultural sector under the Stabilization of Export Earnings
from Agricultural Commodities (STABEX).
• The European Investment Bank (EIB) provided assistance in
the amount of EUR 134.8 million (J$5.4 billion), in the form
of loans for the development of the Kingston Container
Terminals, Cable & Wireless and the Trafalgar and National
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Development Banks. The EIB is currently financing the redevelopment
of the Port Antonio Marina.
• As a member of the Caribbean Regional ACP group of
countries (CARIFORUM), Jamaica accessed funds from the
Regional Indicative Programmes, which were used to
provide (among other things) assistance for student
accommodation at the University of the West Indies, and the
University of Technology.
• CARIFORUM countries are expected to benefit from EUR 70
million for the regional rum industry.
THE COTONOU AGREEMENT
• The Cotonou Partnership Agreement signals a new era for
ACP-EU partnership.
• Importantly, the Agreement envisages a greater
participation of civil society in the overall partnership
arrangement.
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• It reflects the changing global trading arrangements,
including the gradual removal of preferential market access,
the introduction of reciprocity for market access, and the
creation of an Investment Facility to support the private
sector.
• The Banana Industry for example, has received since 1999
EUR 15.3 million (J$0.6 billion) and will receive additional
resources up to 2008, in order to increase international
competitiveness and facilitate a smooth transition from a
system of quotas to a tariff-only-system in 2006.
• It is up to countries like Jamaica, having lobbied vigorously
for such transitional provisions, to make use of the economic
support and ensure that we are ready for full competition in
the not too distant future.
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Financial Protocol under Cotonou- 9th EDF
• The 9th European Development Fund (EDF) represents the
first Financial Protocol under the Cotonou Agreement.
• The total amount available to ACP States is EUR 25 billion, of
which Jamaica's allocation is EUR 100 million (J$4.0 billion).
• Jamaica's allocated resources will have two components: an
allocation of EUR 73 million (J$2.9 billion) to cover
macroeconomic support, sectoral policies, programmes and
projects; and an allocation of EUR 27 million (J$1.1 billion)
to cover unforeseen needs such as emergency assistance,
international debt relief, and the adverse effects of instability
in export earnings.
• The release of funds for the latter component, and possibly
additional resources are dependent on the findings of a midterm
and end-of-programme review.
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• Jamaica will also benefit through the Investment Facility
operated by the European Investment Bank (EIB).
• The resources of the Facility are to be used to provide risk
capital and ordinary loans to the private sector and
commercially run public sector entities, either directly or
indirectly through investment funds and/or financial
intermediaries. The total amount to be made available to
Jamaica from EIB's resources is still to be decided.
The Country Support Strategy (CSS)
• Access to the resources under the 9th EDF requires a Country
Support Strategy (CSS). This document forms the framework
for the cooperation programme between the EU and the
Government of Jamaica (GOJ) under the 9th (EDF).
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• It includes a strategic analysis of the country's own
development plan; an appreciation of the role and activities
of other donors, an appropriate sector-based response
strategy and the National Indicative Programme (NIP).
• The Government in collaboration with the Delegation of the
European Commission started preparation of the CSS, and
the NIP for the 9th EDF in January 2001. This involved
extensive consultation with state and non-state actors, as
well as International Development Partners.
• The document was submitted to the EC in mid March 2001,
and approved in November, 2001.
• The Country Support Strategy has three main areas:macroeconomic
support; private sector development; and
transport infrastructure. It also includes poverty alleviation
measures, to be implemented through the participation of
non-state actors.
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• The macroeconomic support programme is designed to
assist the Government's macroeconomic reform programme
outlined in the IMF's Staff Monitored Programme (SMP),
targeting social sector performance in such areas as social
safety net reform, education and health.
• Support to private sector development will involve assisting
Small and Medium Sized Enterprises to improve
competitiveness.
• Through the private sector development programme
resources from the EIB will be made available to firms
through lines of credit for investment purposes. The
transport sector programme is aimed at improving the
capacity of the Ministry of Transport and Works to
implement a road maintenance strategy and programme.
• Feasibility studies for the preparation of programmes under
the NIP will commence this year, with the submission of
proposals to the EDF Committee in the latter part of 2002.
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• For these many and important reasons it gives me great
pleasure, to sign on behalf of the Government of Jamaica,
this six year Strategy Paper and Indicative Programme as
part of the continuing collaboration and economic
cooperation between Jamaica and the European Union.
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Percival J. Patterson Collection
