Threats of massive US levies on Chinese-built and registered ships, which could have disrupted imports to Cayman and pushed up prices, have been lifted.
The US has exempted the Caribbean from President Donald Trump’s executive order that could have seen fees of up to $1.5 million slapped on Chinese-linked vessels using American ports, which would have added thousands of dollars to the cost of cargoes shipped to Cayman.
Florida-based Tropical Shipping, a major carrier of goods to Cayman, welcomed news of a U-turn on the proposal, which it said would have added about $3,000 to every 40-foot container shipped.
Tim Martin, the line’s president and CEO, said, “This is a huge victory for us and the entire Caribbean that we serve.”
Trump imposed the levies across the board in February in a move designed to boost US shipbuilding and penalise China, which the Office of the United States Trade Representative (USTR) in January claimed had used unfair policies to dominate global shipping.
But now they will not be imposed on Caribbean routes from the US, as well US territories and ships plying their trade between US domestic ports.
American and Canadian ships that use ports on the Great Lakes have also been exempted from the new tariff system.
The USTR said the new “targeted action” would limit disruption for US exporters.
Martin, whose company has Chinese-built vessels in its fleet, said, “Our voices were heard. We could not have accomplished this without the relentless advocacy from our Caribbean representatives in Washington DC, our customers and the many organisations that wrote letters to the USTR describing the devastating multiplier effect these port fees would have had on all of us.”
He added a USTR committee member was surprised by the massive campaign launched against the levies by Caribbean leaders and businesses.
Martin singled out a string of individuals and organisations who had thrown their weight behind the bid to have the tariffs revoked, including the Caribbean Hotel and Tourism Association, the Caribbean Tourism Organization and the Caribbean Shipping Association, which all have Cayman representation.
He also thanked Caribbean politicians, CARICOM and the governor of the United States Virgin Islands.
The Cayman government did not respond to repeated requests for comment over more than two weeks.
Martin added that he would continue to liaise with the US authorities on long-term plans to rejuvenate its shipbuilding industry and how shipping lines such as Tropical could prepare for the future.
Tropical has close to 20 ships, all registered in St. Vincent and the Grenadines, although some are Chinese-built.
The tariffs on China are part of an escalating trade war between the world’s two largest economies, with Trump also slapping tariffs of up to 145% on Chinese goods.
The change of heart on the original American proposals came after a two-day USTR public hearing, which included nearly 600 public comments and consultations with government agencies.
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