MEMORANDUM OF UNDERSTANDING concluded between The United Nations Environment Programme Nairobi, Kenya  and the University of the West Indies, Institute of Sustainable Development To undertake an Integrated Assessment Study in Jamaica as part of the Project on

"Integrated Assessment of Trade-Related Policies in the Agricultural Sector: Supporting the Implementation of the Convention on Biological Diversity"

Cost to UNEP US$64,000

Purpose of the project

The purpose of the project is to field-test and develop the new model of integrated assessment (IA) methodology described in the UNEP-WCMC/ETB document “Biodiversity in Integrated Assessment of Trade Policies in the Agricultural Sector.”  The project in Jamaica is one of six parallel national studies; the results of each field-test will be compared in order to improve and refine the IA methodology.

Jamaica country study: specific focus

The Jamaica project will examine the impact of trade liberalization of the Jamaican agricultural sector on the environment and on biodiversity. The study will focus on the sugar cane industry, for two reasons:

• It is currently the largest employer of agricultural labour and utilizes the highest percentage of arable land.
• Major changes are anticipated in the industry’s structure and markets.

The price regime for sugar supplied by the ACP countries to the EU is to undergo phased price reductions as part of a managed transition to open markets. The costs of production in Jamaica are relatively high, so the Government has taken the decision to diversify the products currently being derived from sugar cane. The initial focus will be on ethanol, partly because Jamaica is largely dependent on imported oil, so any displacement of demand for gasoline reduces the negative balance of payments.