As concerns mount over proposed tariff on Chinese-built ships entering the region, Caribbean leaders are being urged to use their embassies in Washington to lobby Capitol Hill on the matter.
St Vincent and the Grenadines Prime Minister Ralph Gonsalves, in a public statement on Thursday, warned that the US trade measure could have severe consequences for the region. He emphasised the need for Caribbean leaders to formally register their concerns with Washington.
Gonsalves noted that while the measure will directly affect Chinese vessels and deter future purchases of Chinese-built assets, it could result in “serious supply chain disruptions and cost increases that will inevitably trickle down to consumers.”
He further explained that the new restrictions would significantly increase freight rates, which would then be passed on to consumers. This, in turn, could lead to a reduction in shipping lines serving the Caribbean, disruptions in supply chain reliability, fewer vessel calls, reduced resilience and sustainability of ports, increased port operation costs, and negative impacts on revenue, job creation, economic growth, and citizens’ well-being.
Gonsalves also expressed concerns that the measures could adversely affect the tourism and cruise ship industry, on which many Caribbean nations heavily rely.
Additionally, Gonsalves highlighted that the US trade measure’s focus on Chinese operators and fleets using Chinese-built vessels could further disrupt shipping companies conducting business in the region.
At the regional level, he suggested that CARICOM states lobby Congress and enlist the support of shipping firms that risk losing business in the region due to the policy.
Several Caribbean leaders have already voiced their concerns about the trade measure and raised the issue with US Secretary of State Marco Rubio during his two-day visit to the region earlier this week.
uring a joint press conference with Guyana’s President Dr Irfaan Ali on Thursday, Rubio acknowledged that the matter had been consistently raised throughout his visits to the region. He assured Caribbean nations that he would relay their concerns to Washington policymakers responsible for trade policies.
“We’re going to take it back and explain to those in charge of trade policy that there are implications to applying these measures to certain nations—nations that are partners and striving to develop their economies in ways that align with US national interests,” Rubio said.
While he could not commit to any exemptions, Rubio stated, “What I can commit to is that I will most certainly raise this issue repeatedly, in multiple forums, emphasising that it could have a real detrimental effect on economic development.”
The US government is seeking to strengthen its domestic shipbuilding industry and reduce reliance on Chinese-built vessels. Rubio stressed the importance of diversifying the global shipbuilding market.
“I think it’s dangerous to have one country in the world building all the ships. We don’t want a war, but if we ever face trouble, they’re not going to build ships for us. So we need to have alternatives to Chinese shipbuilding, and we’re trying to create a market and demand for non-Chinese ship construction,” Rubio explained.
