Prime Minister Gaston Browne says his Antigua and Barbuda is concerned that moves by the United States to impose a levy on Chinese-built ships that operate in US ports could have a significant impact on his country’s economy.
The United States Trade Representative has proposed fines of up to US$1.5 million on China-made ships or vessels from fleets that include ships made in China.
Browne, speaking on his weekly radio programme over the last weekend, said that the issue has been discussed by cabinet over the past several weeks amid concerns by ministers that such a move will likely have a negative impact on the economy.
“An analysis has been done and we have been advised that shipping a container could increase by about US$3,000 to US$4,000,” Browne told radio listeners.
“Now if that happens, you are talking about an increase in prices of between eight and 10 per cent easily, which would be extremely inflationary at this time considering that there is already an elevated rate of inflation of about 4.5 per cent at the moment. This means that inflation could trend to up to 12 or 14 per cent,” he added.
Last Saturday, Guyana’s President, Irfaan Ali in a statement said that the issue was among matters raised by the Regional Private Sector Organisation during a recent emergency virtual meeting held by CARICOM leaders.
“The US is our partner, the region recognises that the US is an important partner and the Regional Private Sector will be having some conversations with the US. We will also be having conversations with various actors in the US, Secretary of State for example and also the Chair of CARICOM will be seeking to have a meeting with the White House to go through some of these challenges that we may face and to have a better understanding of each other positions,” Ali said.
Browne said the move by Washington would be devastating for the national economy and for consumers generally and that the cabinet has been discussing a number of options of likely actions should this measure go into effect.
He said that in addition, discussions are also taking place at the level of CARICOM and Prime Minister of Barbados, Mia Mottley, the current chair of the 15-member regional grouping, has been asked to write to the US President Donald Trump on behalf of CARICOM to explain the impact this move would have on the Caribbean as it would ‘literally’ destabilise the region.
“What we are asking for is a ‘carve out’ under the Caribbean Basin Initiative (CBI) as one of the objectives of the CBI is to ensure economic and social stability within the region. The United States, obviously, should be concerned about its southern ‘third border’ and to lessen any unintended consequences of any policies that it would implement,” Browne said.
He said that while he does not want the region to get involved in the “geopolitical spats” between the US and China, however, where it affects the region, Washington must be engaged and regional leaders are of the view that some favourable consideration should be given to CARICOM states.
Caribbean leaders are due to meet with the US Secretary of State, Marco Rubio, in Jamaica on Wednesday.
