The Antigua and Barbuda Cabinet has been engaged in serious discussions over the past several weeks on the likely impact on the nation’s economy of a US-policy that seeks to impose a levy on Chinese-built ships that operate in US ports.
Speaking in the Browne and Browne show last Saturday, Prime Minister Gaston Browne, the chairman of the Cabinet, said members are concerned that such a move will likely have a negative impact on the economy as it would add to the already high inflation that residents face on a daily basis.
Of concern is a planned move by the United States to impose steep levies on Chinese-built or operated ships that dock at US ports. The U.S. Trade Representative has proposed fines of up to US$1.5 million on China-made ships or vessels from fleets that include ships made in China.
“A analysis has been done and we have been advised that shipping a container could increase by about US$3-US$4-thousand. Now if that happens, you are talking about an increase in prices of between 8 and 10 percent easily, which would be extremely inflationary at this time considering that there is already an elevated rate of inflation of about 4.5 percent at the moment. This means that inflation could trend to up to 12 or 14 percent,” PM Browne indicated.
The prime minister let it known that such a move would be devastating for the national economy and for consumers generally.
PM Browne said the Cabinet has been discussing a number of options of likely actions should this measure go into effect. Additionally, discussions are also taking place at the level of CARICOM and Prime Minister of Barbados, Mia Mottley, the current chairman of the grouping, has been asked to write to the US President Donald Trump on behalf of CARICOM to explain the impact this move would have on the Caribbean as it would ‘literally’ destabilize the region.
“What we are asking for is a ‘carve out’ under the Caribbean Basin Initiative (CBI) as one of the objectives of the CBI is to ensure economic and social stability within the region. The United States, obviously, should be concerned about its southern ‘third border’ and to lessen any unintended consequences of any policies that it would implement,” he disclosed.
The prime minister took the view that the region does not want to get involved in the ‘geopolitical spats’ between the US and China, but where it affects the region the US Administration must be engaged and leaders are of the view that some favourable consideration should be given to CARICOM states.
PM Browne noted that both at the local and the region levels the matter is receiving the full attention of the government and counterparts across the Caribbean.
