Dear Editor,
The America First policy may have a serious impact on the cost of living and the costs of doing business on Sint Maarten and throughout the wider Caribbean region if a proposed U.S. tariff of US $1 million comes into effect within the next 40 days on Chinese-built ships docking in U.S. ports.
Tropical Shipping, which transports food, household items and building materials from the United States of America to Sint Maarten and other Caribbean nations has been threatened with paying US $1 million for every port call to Florida or other U.S. eastern seaboard coastal cities to pick up the aforementioned.
The US $1 million tariff is part of a section 301 proposal expected to be signed via a presidential executive order in the coming weeks that could have devastating consequences for ocean freight rates, supply chains and the costs of living for thousands in the Caribbean.
Tropical Shipping last week sounded the alarm that this could raise shipping costs by thousands per TEU (Twenty-foot Equivalent Unit), adding that most ships serving the Caribbean region were built in Chinese shipyards.
Caribbean countries are preparing for economic uncertainty due to the volatility in America First policy initiatives.
Sint Maarten food and building wholesalers may already be calculating what this would cost Sint Maarten consumers in the coming months.
The Government will need to meet with wholesalers in a proactive manner to determine the consequences and what strategies can be developed should the U.S. move forward on implementing this America First policy that would have serious consequences for Sint Maarten and other Caribbean nations.
Governments would also need to lodge official complaints.
Tropical Shipping has asked stakeholders, customers and businesses to speak out against the measure before it’s finalized to the Office of the U.S. Trade Representative.
The time has come for Sint Maarten wholesalers and building suppliers to look elsewhere for products and building materials within the region and from Colombia, Dominican Republic, Panama, and Guyana just to name a few.
If there is a demand, shipping companies will respond – supply and demand – to open up new shipping links. Sint Maarten Government ministers in the past decade have visited and met with government officials in the Dominican Republic, and the time has come to re-open the files and start to put things in place for the benefit of the country.
The St. Maarten Chamber of Commerce and Industry (COCI) already participated in the “Trade Mission Dutch Caribbean Meets Panama” back in February where the interaction provided valuable insights and opportunities to foster economic partnerships, trade expansion, and investment collaborations.
COCI has planned two additional missions for 2025 to Colombia under the banner “SXM Business Mission to Colombia” in May to Bogota to attend the “Construction Expo: Material Construction Trade Show” and in July to Cali to attend the “A Multisector Business Matchmaking Forum”.
COCI in announcing this new mission said that Colombia, as one of Latin America’s most dynamic economies, presents a wealth of opportunities for Sint Maarten’s entrepreneurs and businesses seeking to expand their reach.
During the Panama trade mission, COCI said back in February that the delegation engaged in productive discussions with key regional stakeholders who expressed strong interest in establishing business ties with St. Maarten and its local business community.
The stakeholders COCI met with included the Panama Chamber of Commerce, ProPanama, Copa Airlines, Panamanian Association of Cargo Agencies and representatives of Panama’s Ministry of Commerce and Industry.
COCI emphasized in a media statement back in February the importance of active participation in trade missions as a means to expand business networks, enhance market presence, and strengthen regional cooperation, adding that given the evolving global business landscape, COCI encourages the local business community to seize available opportunities for international trade and collaboration.
The new America First proposal for the new “Caribbean Tariff” will impact most industries with price hikes in grocery stores, hardware stores and other businesses that import products from the United States to the country.
The USTR is accepting public comments on the proposed “Caribbean Tariff” until March 24. Those who will be affected are encouraged to submit their concerns by going to the following link:
https://comments.ustr.gov/s/ and then scroll down to the section “Request for Comments Concerning Proposed Action Pursuant to the Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance” and select “Submit Comment”.
Roddy Heyliger
