Export processing in the Caribbean: The Jamaican experience

Export processing, also known as maquila, is a widespread activity in Mexico and Central America and is becoming increasingly important to economies in the Caribbean. Countries of the subregion have successfully attracted both foreign and domestic investment in offshore data processing and in the assembly and manufacture of garments, footwear, electrical and electronic equipment, toys and other goods for export. Investors are attracted by low labour costs, freedom from foreign exchange controls and bureaucratic restrictions, and by the promise of exemption from all taxes, including taxes on profits and duties on imports of equipment, raw materials and intermediate goods used in production for export.