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. Nonetheless, U.S.-built machinery remains visible at construction sites, large farms, and industrial facilities. There is a strong market for telecommunications and data related products, batteries, and electrical components. Right-hand drive vehicles from Japan and Europe dominate the automotive 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, including the requisite infrastructure. In 2022, the government incentivized the purchase of electric vehicles by reducing the import duty from 30 percent to 10 percent for an initial five-year period. The government also approved a Motor Vehicle Import Policy to accommodate the EV incentives. Initially, the market featured high-end EVs, however more affordable options like hatchbacks and subcompact SUVs are becoming more popular. As of June 2022, lithium-ion batteries for use in solar applications are exempt from General Consumption Tax.
Table: Total Market Size for Machinery & Transport Equipment ($M)
Machinery & Transport Equipment ($M) | 2022 | 2023 | 2024 |
| Total Exports | 23 | 18 | 44 |
| Total Imports | 1345 | 1624 | 1628 |
| Imports from the US | 454 | 503 | 452 |
| Trade Surplus/Deficit | (1322) | (1606) | (1584) |
| Exchange Rates | 154.21 | 154.99 | 157.22 |
(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 for printers, copying machines and facsimile machines, rims, shock absorbers, clutch and brake parts, tires, and general accessories, in addition to medical equipment and related after-sales parts and services.
Opportunities
Jamaican authorities monitor the quality of imports, and this scrutiny increases opportunities for 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.
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. Keeping in close contact with clients and delivering good after-sales service is therefore important to succeed in the market.