Barbados and other CARICOM countries are being spared the much-feared fallout from a United States (US) government plan to impose millions of dollars in fees on ships made in China.
Prime Minister Mia Amor Mottley and CARICOM Private Sector Organisation (CPSO) chairman Gervase Warner confirmed yesterday that following weeks of intense and coordinated lobbying by regional governments, businesses, partners in the region and the US, the US Trade Representative (USTR) has determined that the Caribbean warrants an exemption.
Speaking as chair of CARICOM, Mottley welcomed the outcome, reminding that the impact on the region would have included an increase in the cost of living and ultimately difficulty accessing some goods.
“This is testimony to what we can achieve when we work together towards a single purpose and as we navigate these very choppy waters. It is going to be required of us repeatedly,” the Prime Minister said.
“So that this success goes beyond the immediate moment and stands as impetus for us to continue to work together, governments, private sector and the labour movement, across countries.”
She also thanked the US government “for also appreciating the extent to which these measures would have a disproportionate impact on Caribbean societies and economies”.
Mottley said that “on behalf of the member states of CARICOM, I wrote President [Donald] Trump a few weeks ago to be able to make the case against the imposition of this tariff on the ships that would be servicing the region”.
“We took a coordinated approach with the CARICOM Private Sector Organisation and specifically with the companies directly affected who service the region. I am happy that that letter was buttressed by the evidence of the CPSO and the individual companies affected,” she said.
Warner, who thanked Mottley for her leadership on the matter, said he was pleased and the CPOS was grateful that the Caribbean received an exemption, as announced by the US Trade Representative on Thursday.
“As originally proposed by the USTR, these high port fees, in excess of US$1 million for each US port call, would have increased the cost of shipping between the Caribbean and the United States, with crippling consequences for inflation, shortages, delays and other ‘supply-chain’ disruptions for the people and the economies of CARICOM and the Caribbean,” he said from Trinidad and Tobago.
Collaboration
“The CPSO appreciates the USTR Determination and recognises that this tremendously beneficial outcome is the product of leadership and collaboration among several key private sector stakeholders and the governments of the
CARICOM states.”
Warner said based on what the more than 5 500-member CPSO advocated for on the regional private sector’s behalf, the specifics of the exemption were acceptable.
The CPSO recommended an exemption for “short sea” shipping, defined as vessels plying the route between 2 750 nautical miles of the CARICOM/ Caribbean and the continental US. The USTR Determination recommended the exemption for 2 000 nautical miles.
The private sector also asked for an exemption for vessels carrying less than 55 000 deadweight tonnes and less than 4 999 Twenty-Foot Equivalent Unit (TEUs) and the USTR determined the exemption for 55 000 deadweight tons and less than 4 000 TEUs.
Warner said finally that the CPSO requested an exemption for specialised cargo, such as energy and chemical products which might exceed 55 000 deadweight tons.
In its decision, he said, the USTR “proposed exemptions for individual bulk capacity of 80 000 deadweight tons; and exemptions for specialised or special purpose-built vessels for the transport of chemicals substances in bulk or liquid forms.
The retired Massy Group chief executive officer said this “tremendously beneficial outcome” was the product of leadership and collaboration among several key private sector stakeholders and the governments of CARICOM states.
“The priority attention given to this issue by the Heads of Government, evidenced by their fervent advocacy at the meeting with US Secretary of State Marco Rubio and their communication to President Donald Trump under the pen of Prime Minister Mottley, has been a significant driver of this positive outcome,” he said.
“The technical leadership and commitment of our CPSO Secretariat, led by one of CARICOM’s most competent economists, Dr Patrick Antoine and his team and their submissions and oral testimony was a major determinant of the positive USTR outcome.”
Having suceeded in getting the exemption, Warner said continued support from everyone in the region was needed “even as we direct our focus to other matters critical to the Community, such as the impact of US tariffs on CARICOM trade”. (SC)
