Jamaica - Market ChallengesJamaica - Market Challenges
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Crime remains a significant concern and security measures add considerably to the cost of doing business in Jamaica.
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The Jamaican judicial system has a long tradition of being fair but court cases can take years or even decades to resolve. The Chief Justice, appointed in 2018, has articulated plans to streamline the delivery of judgments by bringing greater levels of efficiency to court administration and targeting throughput rates in line with international best practice within five years.
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Corruption remains a major concern among Jamaicans. Despite numerous allegations of public corruption and a few arrests, no high ranking public officials have been convicted of corruption since 1962. Jamaica ranked 70th, out of 180 countries, in Transparency International’s Corruption Perception Index in 2018, falling two places since 2017.
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While trade liberalization has made it easier to import into Jamaica, some technical barriers, particularly sanitary and phyto-sanitary restrictions, remain.
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Jamaica is a member of the Caribbean Community (CARICOM) and the CARICOM Single Market and Economy (CSME). Some goods imported from outside CARICOM are subject to a common external tariff (CET). Goods certified to be of CARICOM origin tend to enjoy duty-free status and are not subject to customs duty. However, these and other goods may be subject to additional taxes in Jamaica, incluidng a 16.5 percent General Consumption Tax (GCT), Customs Administrative Fee (CAF), Standards Compliance Fee (SCF), and/or special consumption taxes (SCT) in Jamaica.
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High electricity cost remains a concern for businesses, although Jamaica has reduced prices by modernizing and liberalizing its generation infrastructure. Projects are currently underway to diversify Jamaica’s electricity sector by adding renewable sources of energy through solar, wind, and hydropower projects and by replacing outdated petroleum-fueled power plants with cheaper and more efficient liquified natural gas (LNG) plants.
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Obtaining work permits for foreign workers can be burdonesome. When requesting work permits for foreign workers, employers must describe efforts to recruit locally to prove that the requisite skills do not exist in Jamaica. However, the Government of Jamaica (GOJ) does not readily have data available to determine if the requisite skills exist in Jamaica, sometimes delaying decision making.