Source:https://caribbean.loopnews.com/, News Editor, First Published on March 24th, 2024
Rice increases for imported goods, following a proposed policy change by the Trump administration, ABS Television reported.
The United States Trade Representative has suggested imposing fines of up to US$1.5 million on Chinese-made ships, or vessels within fleets that include ships made in China, if they dock at US ports.
This proposal, which has raised concerns across the Caribbean, could significantly disrupt freight costs and ultimately drive up consumer prices, according to Antigua and Barbuda’s Prime Minister Gaston Browne.
In an interview on Pointe FM on Saturday, Browne expressed his deep concern over the potential inflationary effects of this move. He emphasized that freight costs would rise significantly, pushing up consumer prices and exacerbating inflation in Antigua and Barbuda, with potential increases of up to 14 percent.
“The analysis has been done, and we’ve been advised that a container typically increases by about three to four thousand US dollars each. If that happens, you’re talking about an increase in prices by 8 to 10 percent easily,” Browne stated.
The Prime Minister further warned that the move could be devastating to Caribbean economies that heavily rely on supply chains from US ports, underscoring the broad regional implications of the US policy.
The Caribbean Community (CARICOM) is expected to formally engage with the US administration to address the potential consequences of the proposed levies. Browne confirmed that CARICOM is seeking a carve-out under the Caribbean Basin Initiative (CBI) to shield the region from these disruptions.
“We are not seeking to become involved in the geopolitical issues between Washington and Beijing,” Browne remarked, adding that the issue has already been discussed at the CARICOM level. “The decision that we took is that the Chairman of CARICOM, Mia Mottley, Prime Minister of Barbados, will write on behalf of CARICOM as the Chairman to indicate to President Trump the kind of impact that will have on the Caribbean.”
Browne emphasized the importance of the Caribbean Basin Initiative, noting that one of its key objectives is to ensure regional stability. “The United States should be concerned about its third border and any unintended consequences of its policies,” he concluded.
As the situation unfolds, Caribbean nations are closely monitoring the proposed changes and considering further action to mitigate the impact on their economies and consumers.
