Jamaican Free Zones


The Jamaican Free Zones are a government free trade zone initiative in Jamaica. Designed to encourage foreign investment and international trade, businesses operating within these zones have no tax on their profits, and are exempted from customs duties on imports and exports and import licensing requirements. They must export 85 percent of their products outside the Caribbean Community.

Free trade zones

There are five Jamaican Free Zones:
Kingston and Montego Bay Free Zones are government owned, while Cazoumar is privately owned.
Companies outside the zones can apply for free zone status as Single Entity Free Zones. Created under the Jamaica Export Free Zones Act, the zones are operated by the government. The zones were initially used to promote textile manufacturing and related industries. The program has been expanded to include information technology, with addition clauses added to the act in 1996. Businesses that operate in the zones must be in the fields of manufacturing, warehousing and storage, distribution, processing, refining, assembly, packaging, or service operations.
From 1985 to 1995 the combined export output of the zones in textiles was US$1.31 billion. Around 12,000 people were employed in the textile factories, about 1.6 percent of the total workforce. Since 1995 the industry has been in a serious depression due to structural problems in Jamaica and increased foreign competition.
World Trade Organization rule changes agreed at the Doha Development Round will end export subsidies in 2007.
The free zones have been criticized as United States of America-subsidized sweatshops. The 2001 documentary film Life and Debt features interviews with free zone workers, as well as with several prominent critics such as Michael Manley, that support this view.