Overview
U.S. brands enjoy significant goodwill in the Jamaican market, underpinned by a long tradition of safety and quality. However, Jamaicans are increasingly price sensitive, leading to a diversion of trade to cheaper competitors. This notwithstanding, machinery built in the U.S. remains visible at construction sites, large farms, and industrial facilities. There is still a strong market for telecommunications and data related products, batteries, and electrical components. Right-handed vehicles out of Japan and Europe continue to dominate the market, but the United States remains a major source market for auto parts and accessories.
Jamaicans have been slow to transition to electric vehicles (EV) due to the absence of an enabling environment and the requisite infrastructure. During the first quarter of the 2022/23 fiscal year (April to June), the government incentivized the purchase of 1,000 electric vehicles annually by reducing the import duty from 30 to 10 percent for an initial five-year period. As of June 13, 2022, lithium-ion batteries imported for use in solar application are exempt from payment of General Consumption Tax.
| Machinery & Transport Equipment ($M) | 2020 | 2021 | 2022 |
| Total Exports | 15 | 15 | 23 |
| Total Imports | 1112 | 1196 | 1345 |
| Imports from the US | 383 | 439 | 454 |
| Exchange Rates | 143.27 | 151.62 | 154.21 |
(Total market size = (total local production + imports) – exports); *N/A indicates no data are available
Source: STATIN
Leading Sub-Sectors
Best prospects include Portable automatic data processing machines, Parts and accessories of other printers copying machines and facsimile machines, rims, shock absorbers, clutch and brake parts, tires, and general accessories.
Opportunities
Jamaican authorities monitor the quality of the imports, and this scrutiny increases opportunities for new higher quality aftermarket auto parts. The increasing use of liquified natural gas (LNG) and renewables in the energy mix and the emergence of e-mobility could also provide additional opportunities for products associated with energy and transportation industries.
Chronic machine breakdowns and overlong downtime for repairs, the Ministry of Health and Wellness is exploring the option of leasing medical equipment instead of making purchases as they do not have the technical capacity for efficient maintenance. As a result, thousands of public sector clients wait weeks or months for intervention.