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I am surprised that the JMA did not list the impact on our foreign exchange rates as a major factor that was considered before weighing in on whether the 15 per cent CET on imported Cement should be suspended for another year. 

As we have no other way of knowing whether Tank-Weld Limited or others involved in the import of Cement are net earners of foreign exchange the JMA should have clarified this point. The inflationary effects of the reduction in value of the Jamaican dollar against the major currencies impacts every Jamaican and consequently we should be careful not to take any action or actions that will introduce additional pressure on the dollar. 

In the long run, we expect that there will be repatriation of profits to Trinidad as the majority shareholders of the CCCL are Trinidad based. The CCCL however, could become net foreign exchange earners as they have started to export Cement to other countries in the Caribbean. 

This brings us back to the ‘national interest’ reference in the caption above. The only way that Jamaican Manufacturers can help to reduce the pressure on the Jamaican dollar, is to manufacture high quality goods at the right price. I have bought locally manufactured goods at prices just a little lower than the imported alternative, but whereas the prices were competitive, they failed on quality. This is a little different in the Cement market as under normal circumstances the locally manufactured Cement is of the required standard the real issue being whether we would be exposed to unfair prices if the 15 per cent CET exemption on imported Cement should come to an end. 

Jamaica Gleaner News – Cement debate – We’re acting in the national interest – JMA – Business – Friday | May 29, 2009