US trade war ‘not our fight’

THE CARIBBEAN should not become collateral damage in the United States’ global trade dispute with China, says Prime Minister Mia Amor Mottley.

Speaking yesterday ahead of her departure for high-level talks in Washington, she laid out Barbados’ and CARICOM’s position on the implications of the US Trade Representative’s (USTR) proposed sanctions against Chinese-built ships, describing them as a clear and present threat to the region’s economic and trade stability.

Mottley, who currently chairs CARICOM, said the policy – part of the “Make America Shipbuilding Great Again” initiative – has the potential to inflict serious disruption on Caribbean economies, despite the region having no role in the underlying dispute.

Small economies

“We are not in the business of shipbuilding,” she said. “We are small, open economies that depend on trade and we are being caught in the crosshairs of a policy that was never designed with us in mind.”

The proposed measures would see US$1.5 million in fees imposed for every US port call by a Chinese-built vessel, and a US$500 000 fee on all vessels operated by any company that owns even one ship constructed in China. Since most shipping lines serving the Caribbean have Chinese-built vessels and call at US ports as part of their routes, the consequences for the region could be substantial.

Mottley explained that the measures could drive up freight costs by as much as 60 per cent, with implications for food security, export competitiveness and the overall cost of living.

“Anything that makes access to food more difficult – whether by price or logistics – is a problem we cannot ignore. We’ve spent years removing duties and taxes on basic goods to protect the most vulnerable. These new fees could reverse that progress.”

She confirmed that the region’s private sector has already sounded the alarm, with more than 500 participants from across CARICOM joining a recent virtual consultation led by the CARICOM Private Sector Organisation (CPSO).

Mottley also met with Barbadian private sector leaders last Friday and with regional Heads of Government in preparation for the Washington talks.

The Prime Minister will be holding a bilateral meeting with US Secretary of State Marco Rubio, where she intends to press for a clear exemption for Caribbean shipping.

“This meeting is not just about Barbados – it’s about ensuring that the Caribbean’s voice is heard at the highest levels,” she said. “We want a relationship with the United States that is fair, respectful and based on understanding our realities.”

Asked about the potential leverage CARICOM holds, Mottley said the region’s long-standing trade relationship with the US forms the basis for its argument.

“The US has enjoyed a trade surplus with us for decades. Florida, the US farm belt, the cruise lines, all benefit from our demand. This is not just about us appealing for sympathy. It’s about demonstrating that hurting us, hurts them too.”

She added that Barbados and other CARICOM members will also raise the issue through existing US legislative frameworks, including the Caribbean Basin Economic Recovery Act and the Caribbean Basin Trade Preferences Act, though she cautioned that the appeal for exemption must be grounded primarily in economic and geopolitical realities.

“We’re saying to them, ‘This was not your intention, so don’t let us suffer from unintended consequences.’”

Urgency

While she declined to predict the outcome of the Washington talks, the Prime Minister emphasised the urgency of the moment.

“The hearings in the US start tomorrow [today]. The CPSO will give evidence and our role now is to ensure that the Caribbean does not become invisible in this conversation. We matter.”

She also acknowledged that the crisis could lead to long-term changes in trade patterns.

“If goods passing through US ports become too expensive due to logistical costs, it’s natural that suppliers will look elsewhere. That’s the nature of market economies. We must be prepared for that possibility.”

Mottley’s discussions in Washington are also expected to touch on critical regional partnerships, including hurricane forecasting through NOAA (National Oceanic and Atmospheric Administration), security cooperation via the Regional Security System and continued collaboration in public health. (CLM)

(Credit: Nation News Barbados)