Another wildcard event, but it has to lead to New Solutions

By: Dr. Kai-Ann D. Skeete ( Trade Policy Research Fellow of the Shridath Ramphal Centre)

We are now in a world, where might makes everything conveniently right and small but powerless countries find no refuge in multilateral spaces. This world order has erased the cherished values of cooperation and solidarity and instead replaced them with notions of national interest, basic survival and the ‘me first’ mentality. As I survey the landscape within the hemisphere, International Relations and International Trade have reverted to ‘unchartered territory’ quite like March, 2020. Then, like now, the region is confronted by and experiencing ‘wildcard events’ which are described as experiencing unlikely events taking place within any given year.

The most recent event occurred because of the announcement of the United States Trade Representative (USTR) Public Hearing on the Proposed Actions in Sector 301 Investigation of China’s Targeting of the Maritime, Logistics and Shipbuilding Sectors for Dominance. The conclusion of the Hearing could lead to a proposed imposition of fees and penalties on Chinese built ships at seaports within the hemisphere. Any imposition of fees or penalties signal immediate annihilation of our economic and supply chains, our food supply, our transport routes and the existence of smaller businesses that rely on extra-regional imports.

Regional negotiators and leaders must actively engage the US Government using commercial and traditional diplomacy to seek exemptions for our Caribbean island states from the proposed fees or penalties on the basis of our dependence on US trade and the limited alternatives to shipping vessels. The negotiators should also stress the fact that the Caribbean has been a long-standing ally of the United States with cultural, social, political, economic and security ties.

Continuing on the regional shipping options, the practice of shipping items from the region to Florida where the less-than-a-container-load (LCL) of cargo is then consolidated by destination must be reduced. This is what leads to major shipping delays and lengthy transport times. Regionally, we should create direct shipping routes between our islands but with smaller 10ft containers which could easily store and transport our goods. After all, there are not many regional manufacturers that would be able to sustain and fill a 20ft container of their manufactured goods on a weekly basis. Utilizing a smaller container with planned scheduling and consolidation should result in a reliable and sustainable trade within the region.

As a region, we must provide an alterative to North American Consolidation and utilise the Kingston Wharves Limited (KWL) which operates 9 deep water berths, a 360,000 square feet of warehouse space, one of 2 public terminals within the Port of Kingston 24-hours per day for 365 days per year. KWL specialises in moving bulk, liquid bulk, break-bulk and containerised cargo since 1945. It has consistently upgraded its infrastructure with 6 mobile harbour cranes inclusive of 2 state of the art Liebherr Cranes and it houses a Total Logistics Facility (TLF). KWL’s transhipment terminal provides connections to over 45 regional and global destinations.

Furthermore, due to Jamaica’s proximity to the Panama Canal, the KWL can connect millions of consumers in the Americas and act as a link to all CARICOM full and Associate States.

As a geopolitical strategist, I firmly believe in the Winston Churchill saying to, “never let a good crisis go to waste.” We now need to look inwards and create our solutions and alternatives to this potential crisis.

As a small island state, we are unable to easily pivot to alternative food sources unless we identify those produced within the CARICOM Single Market. For decades, our leaders have spoken about import substitution, production integration, identifying baskets of foods and created regional policies to reduce our food insecurities.

In a previous article in 2021, I made the following recommendation, “If it has not yet been realized, within a Community you need to have a permanent network of transportation options to connect countries and deliver vital supplies. Perhaps the establishment of an intra-regional airline not driven by profit or laden with taxes may be the answer to increasing intra-regional movement and intra-regional trade especially agricultural trade.”

The Caribbean’s natural geography indicates that air transportation must be a critical component of any regional infrastructure. The Caribbean is dependent on air-transportation to provide connectivity which is fundamental to sustaining economic growth in the region highly dependent on tourism. There are already several private entities that ply the air-transport service delivery trade across the Caribbean on a daily basis.

These aircraft transport perishable and non-perishable goods; animal cargo; equipment and machinery on a daily basis. Perhaps these service providers need to be engaged by regional governments about providing a much-needed cargo space for selected items. It is hoped that the region discovers viable solutions in short order to prevent an unnecessary regional crisis from occurring.