PSC hails return to “business as usual” as US exempts Caribbean from shipping tariff hike

 …says positive outcome illustrates strong trade ties between Region & US

Chairman of the Private Sector Commission (PSC), Komal Singh, has hailed the return to ‘business as usual’ for Guyana and the Caribbean, after the region was recently exempted from increased freight rates following the United States’ (US) decision to increase tariffs on Chinese-built ships.

The US decision to ease off on imposing increased tariffs on Chinese-built ships traversing the Caribbean has been hailed by private sector representatives. Singh, who not only Chairs the Private Sector Commission, but also the Shipping Association of Guyana (SAG), has welcomed the move.
In an interview with this publication, Singh noted that the decision represents a chance to return to “business as usual” for shipping companies who had been bracing for the effects of the tariff increase.
The PSC Chairman also noted that by helping to secure the reduction in the freight rate, Guyana and the region have been able to demonstrate that bilateral trade ties between Guyana and the US remain strong.
“I think the positive outcome is yet another example that showcases the strong bilateral trade relationship that Guyana and the Caribbean have with the US. The US still remains our strongest trading partner, and we expect to see this continue into the future,” he declared.
“This exemption is very welcome by businesses in Guyana, and by extension Caricom. We’re very grateful for that exemption, since it actually allows us to continue ‘business as usual’ as it relates to any freight rate increase,” Singh said.
Expressing gratitude to the Government of Guyana, the Caribbean Community (Caricom) and the US Embassy for the positive outcome, the PSC Chairman noted that the Caribbean has been spared high costs for imports.
According to Singh, the Government and all other agencies that helped to reverse the surcharge acted in a proactive manner.
“Since this matter came to light, all those agencies (were proactive), including the Caricom Private Sector Organization, who made a significant amount of representation at the hearings that were facilitated by USTR in the US, with people from Caricom and other people around the world actually participating in it, including companies from the US,” he added.
Since the Donald Trump-led administration had announced increased tariffs on Chinese-built ships, which would have led to container fees’ hikes and price increases, there had been much agitation in the region.
Guyana was one such country that had spoken out against this development, with President Dr. Irfaan Ali expressing worry about the impact on trade in Guyana and the region.
A key concern had been President Donald Trump’s plan to impose tariffs on China-made ships/vessels, which would have impacted trade in Guyana and the Caricom region. In an interview, President Ali had noted that, based on the policy being proposed, once these vessels had fallen within a certain category, they would have been charged.
It subsequently emerged that the Caribbean would be exempted from the proposed US surcharges, a decision that has been welcomed by members of the private sector.
In addition to President Ali, other regional leaders who came in for praise were Caribbean Community (Caricom) Chair, the Barbados Prime Minister Mia Mottley; Governor Albert Bryan of the US Virgin Islands, and Dr. Patrick Antione of the Caricom Private Sector Organization.
The tariff on shipping vessels had also been accompanied by 38 percent reciprocal tariffs being imposed on US imports from Guyana. This is another area that the Government of Guyana has said it would work with the US on addressing.
The Guyana Government has already begun engaging the US to ensure that trade relations remain favourable, not just between the two countries, but within the wider Caribbean region. As far back as February, this position had been articulated by Vice President 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 percent tariff on imports from China, there had been a 30-day delay on the 25 percent 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.