Today the United States and Jamaica entered into an agreement to reduce substantially Jamaica's food assistance debt to the United States. Under legislation enacted by Congress last year, the United States is reducing Jamaica's P.L. 480 debt by 80 percent, from approximately 1 million to approximately .2 million.
Jamaica is implementing a wide range of reforms aimed at building a strong market-oriented economy. These initiatives, including measures to make the economy more attractive to investors, qualify Jamaica for debt reduction under the EAI.
The agreement represents a major step forward in realizing the goals of the President's Enterprise for the Americas Initiative (EAI), a program designed to promote increased trade, investment, and growth throughout the hemisphere. It also paves the way for an environmental framework agreement between the United States and Jamaica. Under this agreement, Jamaica will be permitted to make interest payments on the new reduced debt in local currency paid into an environmental fund established in Jamaica.