As trade barriers fall and Jamaican businesses are subject to greater competition from imports, will the Act still be relevant?


The objective of the Act is to ensure that all businesses, Jamaican- or foreign-owned, producing domestically or overseas, face a level playing field. This means two things. First, the Act will ensure that trade barriers are not replaced by non-tariff barriers, for example anti-competitive practices, such that the benefits of a liberalized economy do not flow to the consumers. Second, with increased competition from imports, Jamaican businesses may use the Act to prevent foreign suppliers from employing anti-competitive tactics themselves.

The relevance of the Act in an increasingly globalized economy is no different from its relevance in recently liberalized industries within Jamaica. Consider the example of the telecommunications industry in Jamaica. Even though the industry was recently liberalized and the previous monopolist is subject to intense competition from the new entrants, the Act is still relevant. It is necessary for ensuring that the previous monopolist abuses its dominance in the market and acts in an anti-competitive manner that limits the new entrants’ abilities to compete effectively. The benefits of safeguards against anti-competitive practices are clear in this example – lower prices, better service and a wide range of products. Trade liberalization is similar to the liberalization of any one sector within the Jamaican economy. The benefits to the consumers of ensuring fair competition are significant in both circumstances. The Act will therefore continue to be relevant.