Montego Bay, February 15, 2019 – Jamaica – The Government plans to lobby the support of the international community, particularly the United States, for the Jamaican cannabis industry’s development.
Industry,
Commerce, Agriculture and Fisheries Minister, Hon. Audley Shaw, says this partly
stems from reluctance by local banks to fund the industry’s growth, due to fear
of international de-risking, citing this as a major impediment with serious
economic implications for Jamaica.
De-risking
involves measures taken to make an engagement less risky, or less likely to
involve a financial loss.
“We will
be using all available diplomatic resources, including our Ambassador in
Washington DC, to mount a lobbying effort to the Government of the United
States, primarily through its Treasury Department, to address this very
important matter,” the Minister said.
He was
speaking with journalists following the official opening of Caribbean Producers
Jamaica Limited’s (CPJ) distribution centre at the Montego Bay Freeport on
Tuesday (February 12), at which he was the keynote speaker.
Mr. Shaw
noted the Government’s cannabis licensing arrangement, inclusive of an
established Authority, to ensure that “we are operating at global standards”.
“This
simply means that we are, therefore, in a position where we can convince the
United States and other global economies that we are prepared to operate at the
standards that are expected of us,” he added.
The
Minister said, however, that local financial institutions’ fear of de-risking
remains a challenge, and places Jamaica and other Caribbean countries at a
disadvantage, especially as their entities are not in a position to act
independently of their American counterparts.
“All of our commercial banks in Jamaica are obliged, right now, to
go through the New York system in terms of the movement of money
internationally,” he pointed out.
The
Minister argued that “we have the irony of a Jamaican scientist who gets an
approval to develop a cannabis-based drug to fight leukaemia, and from no less
an authority than the United States Food and Drug Administration (FDA)… [but] who
had to watch as our local banks close his accounts because of this de-risking arrangement.
This is why I am going to put a lot of energy into this lobbying effort”.
Mr. Shaw
noted that while de-risking mainly affects smaller developing countries, like
Caribbean states, the bigger developed nations “have managed to figure out a
way” around the issue. He said, however, that positive signals are emanating “at
the highest level” out of the United States, pointing out that key officials
“are suggesting that they would be open to take a more careful look at the
benefits associated with medicinal cannabis”.
“We are also seeing where one of the Democratic frontrunners for
next year’s US Presidential contest… [is] advocating for the legalisation of
marijuana at a federal level,” the Minister added.
Mr. Shaw said he is “also encouraged by the utterances of the man
who is expected to be the next US Attorney… who seems to be also taking a more
liberal approach”.
Release: JIS
Contact: Garwin Davis
Photo Caption:
Header: Industry, Commerce, Agriculture and Fisheries Minister, Hon. Audley Shaw, addressing Tuesday’s (February 12) official opening of the Caribbean Producers Jamaica Limited (CPJ) distribution Centre in the Montego Bay Freeport.
Insert: Industry, Commerce, Agriculture and Fisheries Minister, Hon. Audley Shaw (second right), participates in the official opening of Caribbean Producers Jamaica Limited’s (CPJ) distribution centre in Montego Bay Freeport on February 12. Others (from left) are Jamaica Hotel and Tourist Association (JHTA) President, Omar Robinson; Executive Chairman of Caribbean Producers Jamaica Limited (CPJ) Executive Chairman, Mark Hart; CPJ Founder and Co-Chairman, Tom Tyler; Attorney General, Hon. Marlene Malahoo-Forte; and CPJ Chief Executive Officer, Dr. David Lowe.
Garwin Davis Photos