St. Vincent and the Grenadines Prime Minister Dr. Ralph Gonsalves issued a strong warning on Wednesday about the potential severe economic consequences for the Caribbean if the United States proceeds with a proposal to impose a one million US dollar fee on any Chinese-built vessel calling at U.S. ports.
Speaking during his weekly radio program on the state-owned NBC radio, Gonsalves emphasized the importance of this issue for the region, stating, “If implemented as proposed by the U.S., this matter will be one of the most severe blows to the economies of the Caribbean.” However, he added that he did not wish to “be hysterical” about the situation.
The issue was discussed in detail during a virtual meeting of Caribbean Community (CARICOM) leaders last Friday and with the CARICOM Private Sector Organization (CPSO) on Tuesday. The U.S. investigation into China’s dominance in shipbuilding and logistics began under the Biden administration. In January, the Office of the United States Trade Representative (USTR) released its findings, proposing fees and restrictions on international maritime services linked to Chinese-operated and Chinese-built vessels.
The proposed high fees are part of a broader effort to shift more shipbuilding back to the United States, according to the USTR’s February 21 statement. The proposal seeks to curb China’s influence in global maritime logistics, including through fees aimed at penalizing ships built in China and promoting U.S.-made vessels.
Dr. Patrick Antoine, president of the CPSO, voiced concerns about the potential impact, warning that the fees would lead to “astronomical levels” of increased costs for goods transported from U.S. ports to the Caribbean. He emphasized that such measures could have devastating social and economic effects, particularly for Caribbean nations like Antigua and Barbuda, Dominica, Grenada, St. Lucia, St. Vincent and the Grenadines, and Suriname, where over 50 percent of ships operating in these regions are Chinese-made.
Gonsalves further explained that the U.S. measures are not only targeting existing Chinese-built vessels but are also aimed at discouraging future purchases of Chinese-made ships. This would affect shipping companies wishing to access the U.S. market, both for inbound and outbound goods. He noted that the move would directly penalize Chinese ship operators and fleets, in favor of U.S.-built vessels.
“The Caribbean trade has links with the United States, so we are really exposed to the harmful effects of these policy measures,” Gonsalves said, adding that major shipping lines serving the region, such as Tropical Shipping, Seaboard Marine, and King Ocean, rely heavily on Chinese-built vessels. These companies could face significant challenges due to the proposed fees.
The Prime Minister also referenced the Jones Act, a U.S. law that requires goods exported between U.S. ports to be transported on vessels that are built, owned, and crewed by Americans. Gonsalves warned that the proposed changes would put shipping lines like Tropical Shipping and Seaboard Marine in a difficult position, as a large portion of their fleets consists of Chinese-built ships.
His stance aligns with that of Antigua’s Prime Minister Gaston Browne and Guyanese President Irfaan Ali, who also warned of the proposal’s impact on the region.
