GEORGETOWN, Guyana, CMC -The Caribbean Private Sector Organization (CPSO) says it remains encouraged by United States Congresswoman Stacey E. Plaskett’s submission regarding President Donald Trump’s executive order on the maritime industry.
“The CPSO is encouraged by this positive response and representation, as the organization continues to advocate with its partners on behalf of the CARICOM economies and people,” it said in a statement.
Trump plans to impose a one million US dollar to US$1.5 million levy on all Chinese-made ships entering US harbors, and Caribbean countries have warned that such a policy will increase inflation and severely hamper their respective economies.
The CPSO, which is an associate of the intergovernmental Caribbean Community (CARICOM), said that her presentation to the US Ways and Means Committee on April 11 “highlighted the concerns of the Caribbean” regarding the US Trade Representative’s (USTR) proposed measures on Chinese-built vessels.
Her presentation also followed her engagement with the Atlantic Council, Tropical Shipping, and the CPSO late last month.
It said that the meeting discussed the possible implications of the USTR proposal, “particularly the impact on Caribbean economies,” and that the discussions also covered the potential impact on key sectors such as agriculture, manufacturing, energy, tourism, and cruise lines.
In her presentation, Plaskett told the US Ways and Means Committee that her delegation has been highly engaged with the Virgin Islands maritime industry, including meeting with the ambassadors of Caribbean countries “to track the implications of President Trump’s executive order on ship owners, operators, and builders.”
Plaskett told the Committee that if the Trump executive order comes into full effect, it will result in significant port fees on maritime transport operators servicing the United States Virgin Islands.
She said the order also directs the USTR to consider imposing fees on Chinese-built cranes and other cargo-handling equipment, an action which could affect almost every port in America.
“These actions will cause increased shipping costs, shipping delays, and, in some cases, the wholesale termination of service by cargo carriers to impacted locations throughout the coast of the United States, especially places like the Virgin Islands.
“I am particularly concerned for coastal and island communities, including the Virgin Islands, where these punitive measures will skyrocket food costs and other everyday items that the maritime industry must import.”
In her presentation, supported by a large billboard, the US Virgin Islands representative said the Caribbean, America’s fourth largest trading partner, accounts for US$92 billion in US exports.
She warned that the fines could backfire on Washington by forcing Caribbean countries to have closer relations with China, which already has a foothold in Latin America and the Caribbean.
“The other concern, which has been mentioned by my colleagues as well, is national security. We cannot have Caribbean nations moving closer to China, who is already on the shores of these Caribbean nations, to try and increase trade with them if we are having a trade war with China,” she said.
She recommended special consideration be given to American-owned Chinese-built that ply the Caribbean.
“Many of these shipbuilders are, in fact, American-owned. They’re American shipping vessels that are American-owned. They are just Chinese made, if there hasn’t been discussion about having some exemption for American owned, American vessels that are coming out of Florida going into the Caribbean.”
She urged USTR ambassador Jameison Greer to consider the practical impacts of tariff actions on the US outlying areas and ultimately reconsider these actions.
“Our communities would bear tremendous undue cost, which makes clear the need for an exemption. I am also leading a letter to USTR Ambassador Greer and the Administration to make the case for this exemption and underscore the impact of these fees on the Virgin Islands, which will permeate through the Caribbean region,” she said.
Greer has since informed the House Ways and Means Committee that the Trump administration could reconsider the hefty fine on Chinese-made vessels transporting food and other supplies to the Caribbean.
“We’re not going to make 25 ships on April 18, the day after we put in any kind of measure, so I certainly think that there has to be accommodation made for circumstances because we’re not going to have all the ships in on April 18,” he said.
In his opening presentation, Greer said that during World War Two, the US built nearly 9,000 ships but only three oceangoing vessels last year.
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