Proposed tariff measures could hit CARICOM hard, drive-up transport costs –Ali

– says US an important partner; region to engage with US policy makers

Joining other regional leaders in expressing concerns at the tariffs being proposed by the United States (US) Government and the effect that can have on shipping in the region, President Dr Irfaan Ali has assured that these matters will be raised with their US partner.

A key concern has been President Donald Trump’s plan to impose tariffs on China-made ships/vessels, which will impact trade in Guyana and the CARICOM region. In an interview on Saturday, Ali noted that based on the policy being proposed, once these vessels fall within a certain category they will be charged.
“As you know, some of the new policy measures announced by the US can have major impact on the shipping industry. And the regional private sector organisation would have made a presentation to heads on what they see as some of the challenges. It highlighted some of the areas of concern. And to heads, to advance discussions with the US.”
“As you know, there was a specific policy that was announced, in relation to ships that would bring cargo, whether originating in China or such vessels made in China. One of the big issues now, is that these larger vessels transship into smaller vessels into the region. So, they would transit in the US to transship,” President Ali noted.
The Head of State noted that this would naturally have an effect on the cost of goods coming into the region. As a result, discussions will also cover the potential economic repercussions of new US shipping policies. Ali confirmed that CARICOM will engage the US to mitigate these impacts.
“And of course for Guyana, Suriname when they started. Trinidad and Tobago, the assessment on tankers and other vessels moving gas, would have to be made. So, as I said, this is a policy that was alluded to, so there are some discussions that will have to occur. All these things are key regional issues that will be discussed.”
“The region recognises that the US is an important partner. And the regional private sector will be having some discussions with the US. We will also be having conversations with various actors in the US system, such as Secretary Rubio,” President Ali said, adding that CARICOM Chairman and Barbados Prime Minister Mia Mottley will also be seeking a meeting with the White House.
US Secretary of State, Marco Rubio, is expected to arrive in the Caribbean next week as part of a three-nation Caribbean tour. Based on regional reports, Chair of CARICOM, Prime Minister of Barbados Mia Mottley, and other regional leaders will also be in Kingston to meet with the Secretary of State.
Rubio will then travel to Guyana and Suriname, where he will meet with their respective Presidents, Dr Irfaan Ali and Chandrikapersad Santokhi. In Georgetown, the US Secretary of State and President Ali are likely to have discussions on a number of issues including the Guyana-Venezuela border controversy. Additionally, policy issues such as the recent US restrictions on Cuban medical professionals could also be discussed.
The Guyana Government has already been engaging the US to ensure that trade relations remain favourable not just between the two countries but the wider Caribbean region. As far back as February, this position had been articulated by Vice President Dr Bharrat Jagdeo, amid plans by the US Government to impose tariffs on imports from several countries including Canada, Mexico and China.
While the US Government had gone ahead with its implementation of a 10 per cent tariff on imports from China, there has been a 30-day delay on the 25 per cent tariff to be imposed on imports from Canada and Mexico. This latter move had brought some level of relief but this was short-lived after President Trump threatened to hit more countries with similar tariffs.
Based on a BBC report, President Trump had said that he was planning “reciprocal tariffs” on other nations as he aims to reshape the US’s global trade relationships. The US President, the article stated, did not say which countries could be targeted but suggested it would be a broad effort that may also help solve US budget problems.