CARICOM leaders prepare response to looming US tariff

CARICOM leaders met on the morning of July 7 to strategize a regional response to the U.S. ‘America First’ trade policy, which imposes a 10 percent baseline tariff on Caribbean imports into the United States.

In April, the U.S. announced a 10 percent tariff for most Caribbean countries. Guyana, however, faces a 38% tariff. President Donald Trump later announced a 90-day pause on its implementation.

The meeting of the CARICOM Prime Ministerial Sub-Committee on External Trade Negotiation, chaired by Jamaican Prime Minister and newly appointed CARICOM Chair Andrew Holness, was held at the Jewel Grande in Rose Hall, St. James.

Holness described the policy as a “critical juncture” in CARICOM’s trade and economic relationship with the U.S., stressing the need for a united regional stance.

With the 90-day pause on the tariff’s implementation set to expire on July 9, Holness said CARICOM leaders are focused on mitigating any fallout for regional exports to the U.S., the bloc’s largest trading partner.

He also noted that outgoing CARICOM Chair, Prime Minister Mia Mottley of Barbados, had written to the U.S. administration requesting a reconsideration of the measure.

The Office of the United States Trade Representative (USTR), in response, had indicated its readiness to engage the region to address its concerns, he noted.

“However, at present, the USTR is prioritizing negotiations with certain trading partners during the 90-day pause on the imposition of the 10 percent tariff,” Dr. Holness pointed out.

“In the meantime, we need to become increasingly vigilant to seek to coordinate as much as possible at the regional level and with key development partners in order to minimize risks,” he contended.

Prime Minister Holness said that CARICOM finds itself operating in a global trading environment characterized by unilateralism, increasing tensions, rising trade policy and uncertainties with potentially severe effects on global economic stability.

As such, the region needs to be strategic in building resilience to prepare for any eventualities, he said, emphasizing the need for greater regional coordination and engagement.

The 26th meeting of the CARICOM Prime Ministerial Sub-Committee on External Trade Negotiations was held as part of the 49th Regular Meeting of the Conference of Heads of Government of CARICOM.

The first such gathering since April 2023, it was attended by the Heads of Government, the CARICOM Secretary-General, and senior ministers.

Against the backdrop of growing trade uncertainties, leaders discussed measures to diversify markets, strengthen regional supply chains, and leverage partnerships.

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