NOTES FOR ADDRESS BY PRIME MINISTER OF JAMAICA
RT. HON. P.J. PATTERSON, P.C., Q.C, M.P.
AT CEMAI - LUNCHEON
MEXICO CITY, SEPTEMBER 1993
SALUTATIONS
PLEASURE TO BE BACK IN MEXICO CITY FOR THE FIRST TIME AS PRIME MINISTER
OF MY COUNTRY. FIRST VISITED MEXICO AS MINISTER OF INDUSTRY, TOURISM
AND FOREIGN TRADE AND ENJOYED WARMTH AND HOSPITALITY OF THE MEXICAN PEOPLE.
IT ALWAYS MAKES ONE'S RESPONSIBLITIES EASIER TO FULFILL WHEN THIS CAN
BE DONE IN AN ATMOSPHERE OF WARMTH AND FRIENDLINESS. THIS IS VERY MUCH
THE CASE HERE TODAY. AT THE TIME OF MY FIRST OFFICIAL VISIT HERE, THE
WORLD WAS VASTLY DIFFERENT IN ALL ITS ASPECTS - POLITICAL, ECONOMIC AND
SOCIAL.
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SINCE THEN THE INTERNATIONAL ENVIRONMENT HAS BEEN SUBJECT TO RAPID AND
PROFOUND CHANGES - THE COMPLETE CESSATION OF THE COLD WAR AND THE DISAPPEARANCE
OF THE BIPOLAR AXIS .
WITH THE REMOVAL OF THE THREAT OF IDEOLOGICAL CONFRONTATION, THE DEVELOPED
WORLD HAS FOCUSSED ON ECONOMIC DEVELOPMENT MAINLY THROUGH REGIONAL ECONOMIC
y INTEGRATION, THIS HAS RESULTED IN THE CONSOLIDATION OF TRADING BLOCS IN
EUROPE AND NORTH AMERICA. THE COUNTRIES OF THE DEVELOPED WORLD CONTROL THE
MAJOR SHARE OF WORLD TRADE, FINANCIAL RESOURCES AND TECHNOLOGY.
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DEVELOPING COUNTRIES MUST MOVE RAPIDLY TOWARDS ECONOMIC INTEGRATION AMONG
THEMSELVES AND MUST MAKE THE NECESSARY ADJUSTMENTS IN ORDER TO SURVIVE IN
THIS NEW ECONOMIC ORDER. PREFERENTIAL AND PROTECTIVE TRADING AGREEMENTS
FOR DEVELOPING COUNTRIES ARE FAST BECOMING OBSOLETE. WE MUST LOOK TO OUR
OWN FUTURE BY PLACING OURSELVES IN A POSITION TO COMPETE ON EQUAL TERMS
WITH THE REST OF THE WORLD. THERE IS NO OTHER WAY.
FACED WITH THE NEW REALITIES OF THE 90 1 s THE MAJORITY OF COUNTRIES OF
THE DEVELOPING WORLD HAVE EMBARKED WITH DETERMINATION ON THE TASK OF
ECONOMIC RESTRUCTURING, OF OPENING OUR ECONOMIES, EMPHASIZING THE
PRE-EMINENT ROLE OF THE PRIVATE SECTOR AND CREATING THE CONDITIONS FOR
COMPETITIVE, MARKET-DRIVEN ECONOMIES.
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IT IS THEREFORE WITH A REAL SENSE OF URGENCY THAT MY COUNTRY HAS EMBARKED
ON THE MODERNIZATION OF OUR ECONOMY AND THE ESTABLISHMENT OF THE FRAMEWORK
THAT WILL ENABLE US TO FACE THE CHALLENGES OF TODAY'S ECONOMIC ENVIRONMENT.
IN SEEKING TO CREATE A MARKET-DRIVEN ECONOMY, WE HAVE UPDATED OUR FINANCIAL
LEGISLATION; WE HAVE ALSO UNDERTAKEN A SUCESSFUL PRIVATIZATION AND DIVESTMENT
PROGRAMME, AS WE HAVE MOVED AWAY FROM THE TREND TOWARDS CENTRAL CONTROL OF
OUR ECONOMY.
WE HAVE BEEN INSPIRED BY THE EXAMPLE SET BY YOUR COUNTR~ FOR IT IS WIDELY
ACCEPTED THAT MEXICO IS THE BENCHMARK BY WHICH SUCH DIVESTMENT PROGRAMMES
ARE JUDGED.
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SINCE THE LATE 1980 1 s, WE BE&AN LIBERALIZATION OF TRADE WITH . THE REMOVAL OF
QUOTAS AND THE REQUIREMENT OF LICENCES FOR BOTH IMPORTS AND EXPORTS. THIS WAS
FOLLOWED IN LATE 1991 BY FULL FOREIGN EXCHANGE LIBERALIZATION. WE HAVE, WITH
OUR CARICOM PARTNERS, UNDERGONE AN EXTENSIVE REVIEW OF OUR COMMON EXTERNAL
TARIFFS AND BY 1998, NO TARIFF SHOULD EXCEED 20%.
AT PRESENT, INPUTS TO PRODUCTION ARE SUBJECT TO 5% DUTY. IF THESE INPUTS GO
INTO EXPORT PRODUCTS, THE 5% IS REFUNDABLE.
WE ARE CURRENTLY IN THE PROCESS OF LEGISLATION FOR AN OMNIBUS INCENTIVE PACKAGE
FOR BOTH THE MANUFACTURING AND SERVICE INDUSTRIES.
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'v WE FULLY RECOGNIZE THE NEED FOR THE RE-TOO~ING OF OUR FACTORIES AND HAVE
DRAFTED LEGISLATION THAT WILL ALLOW ACCELERATED DEPRECIATION; WHEN THE LAW
IS PASSED. BUSINESSES WILL BE ABLE TO WRITE OFF IN ONE YEAR, OUT OF PROFITS,
TOTAL EXPENDITURE ON CAPTIAL EQUIPMENT.
IF PROFITS IN THE FIRST YEAR ARE INSUFFFICIENT, THEY CAN BE ROLLED OVER ANNUALLY.
WE HAVE CREATED A FAVOURABLE CLIMATE FOR JOINT VENTURES AND HAVE IN PLACE NEW
SOFTWARE THAT ALLOWS US TO PACKAGE JOINT VENTURE PROJECTS.
THE GOVERNMENT IS PURSUING TIGHT FISCAL POLICIES, AND IS WORKING ASSIDUOUSuY
TO INCREASE THE EFFICIENCY OF THE PUBLIC SERVICE AND TO DEVELOP A MORE
COST-EFFECTIVE GOVERNMENT MACHINERY.
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WE HAVE DEVELOPED A SYSTEM OF CONSTANT CONSULTATION TO ENSURE NECESSARY AND
MEANINGFUL PARTICIPATION BY BOTH PUBLIC AND PRIVATE SECTORS IN THE
PLANNING AND IMPLEMENTATION OF NATIONAL POLICIES AND PROGRAMMES. WHILE
ACCEPTING THE NEED TO PROVIDE LEADERSHIP IN NATIONAL DEVELOPMENT, MY GOVERNMENT
FULLY ACCEPTS THE NEED FOR CLOSE COLLABORATION WITH THE PRIVATE SECTOR
AND THE WIDER COMMUNITY. THE PRIVATE SECTOR MUST BE FULL AND ACTIVE PARTNERS
IN THE DEVELOPMENT PROCESS.
THIS BRIEF OUTLINE OF SOME OF THE STEPS MY ADMINISTRATION HAS TAKEN GIVES
CONCRETE EVIDENCE OF OUR INTENTION TO CREATE THE ENVIRONMENT AND ECONOMIC
FRAMEWORK FOR INVESTMENT AND GROWTH IN OUR COUNTRY. WE HAVE BEEN VERY
ENCOURAGED BY THE FACT THAT THE JAMAICAN STOCK EXCHANGE WAS LAST YEAR RANKED
NUMBER ONE IN THE WORLD IN TERMS OF GROWTH. WE HAVE TENDED TO LOOK TOO MUCH
AT TRADING WITH THE COUNTRIES OF THE DEVELOPED WORLD AND NOT OFTEN ENOUGH
AND CAREFULLY ENOUGH AT THE POSSIBILITIES BETWEEN THE COUNTRIES OF THE
DEVELOPING WORLD.
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TO YOU, THE MEMBERS OF THE PRIVATE SECTOR OF MEXICO, I BRING A MESSAGE OF AN
INTEREST, INDEED, AN EAGERNESS ON THE PART OF THE PRIVATE SECTOR OF MY COUNTRY,
TO EXPLORE PRACTICAL AVENUES BY WHICH TO INCREASE INVESTMENT AND TRADE BETWEEN
OUR TWO COUNTRIES. THE PRESENCE OF OUR PRIVATE SECTOR DELEGATION HERE IS
AMPLE EVIDENCE OF OUR SERIOUSNESS OF PURPOSE.
FINANCING IS READILY AVAILABLE FOR TRADE BETWEEN OUR TWO COUNTRIES. BOTH THE
MEXICAN BANK FOR FOREIGN TRADE AND EXPORT-IMPORT BANK IN JAMAICA ARE READY TO
WORK WITH THE COMMERCIAL BANKS TO FINANCE MEXICO/JAMAICA TRADE AND INVESTMENT.
THE FACT IS THAT WE HAVE HAD TRADE CREDITS AVAILABLE FOR THIS PURPOSE AND THEY
HAVE NOT BEEN UTILIZED. WE NOW NEED TO BEGIN TO IDENTIFY GOODS AND PROJECTS
TO STIMULATE ACTION IN THIS REGARD.
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OPPORTUNITIES ABOUND. JAMAICA'S PRIVATIZATION PROGRAMME OFFERS REAL
POTENTIAL FOR MEXICAN INVESTORS. WE ARE PRIVATIZING OUR ENERGY SECTOR;
OUR OIL REFINERY; OUR POWER SUPPLY COMPANY AND OUR SUGAR INDUSTRY. WE ARE
VERY IMPRESSED WITH THE SIGNIFICANT TECHNOLOGICAL DEVELOPMENT PIONEERED BY
YOUR COUNTRY. WE BELIEVE THIS TECHNOLOGY IS FAR MORE RELEVANT TO OUR ECONOMY
THAN THAT IN THE DEVELOPED WORLD. IT'S TIME OUR PROFESSIONALS GET TOGETHER
TO INVESTIGATE POSSIBLITIES FOR APPLICATION OF THIS TECHNOLOGY TO JAMAICA.
WE PRESENTLY IMPORT' IN EXCESS OF US$100 MILLION OF YOUR OIL ANNAULLY; WHILE YOU ARE
THE LARGEST MARKET IN THE WORLD FOR OUR RUM. THIS IS A GOOD START. BUT THERE
IS MUCH MORE TO BE DONE.
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IN THE AREA OF TOURISM, WE HAVE ALREADY BEGUN CHARTER SERVICE BETWEEN MONTEGO BAY
AND MEXICO CITY. THE POTENTIAL FOR DEVELOPMENT OF THE JAMAICA-MEXICO-JAPAN
TOURISM MARKET IS BEING ACTIVELY EXPLORED
STUDENTS TO STUDY IN JAMAICA
AT THE TERTIARY LEVEL FOR MEXICAN
I BELIEVE ALSO THAT THERE ARE PROPOSALS FOR A JAMAICAN TRADE FAIR IN MEXICO
AND A RETURN MEXICAN TRADE FAIR IN JAMAICA.
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THE GOVERNMENTS OF BOTH COUNTRIES HAVE PLAYED THEIR PART IN SETTING THE STATE
THAT MAKES THIS DEVELOPMENT POSSIBLE. IT 1S NOW YOUR TURN.
I CHALLENGE YOU, THE MEMBERS OF THE PRIVATE SECTOR OF MEXICO AND JAMAICA TO
BEGIN TODAY JO SET A MEANINGFUL TIME TABLE FOR ACTION SO THAT WE CAN REALIZE
THE POTENTIAL THAT CLEARLY EXISTS.
I BELIEVE OUR HEMISPHERE .. IS RIPE FOR DEVELOPMENT. WE HAVE ACHIEVED A SATISFYING
LEVEL OF STABLE __ AND DEMOCRATIC GOVERNMENT. WITH CAREFUL PLANNING AND DETERMINATION,
I BELIEVE WE CAN INCREASE THE PACE OF ECONOMIC GROWTH THAT WILL ENABLE US TO
PROVIDE ECONOMIC DEVELOPMENT AND SOCIAL AWARENESS THAT WILL LIFT US OUT OF THE
CYCLE OF DEBT AND POVERTY THAT HAVE REGRETT~BLY RETARDED OUR PROGRESS.
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THIS, LADIES AND GENTLEMEN, IS JUST THE BEGINNING. THE GOVERNMENT TO
GOVERNMENT COOPERATION BETWEEN OUR TWO COUNTRIES MUST NOW PROGRESS INTO A
NEW PHASE. A RESPONSIVE PRIVATE SECTOR, NOW RECOGNIZED AS THE CHIEF ENGINE
OF ECONOMIC GROWTH HAS THE FREEDOM TO DEVELOP OUR ECONOMY AND PREPARE IT
FOR PARTICIPATION IN A WORLD OF FREE TRADE, INTENSE COMPETITION AND
GLOBALIZATION.
I HAVE EVERY CONFIDENCE THAT THE PRIVATE SECTORS OF BOTH MEXICO AND JAMAICA
ARE EQUAL TO THE TASK.
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