CPSO pleased with US shipping negotiations

Caricom Private Sector Organization (CPSO) chairman Gervase Warner said he is pleased with the US Trade Representative (USTR) determination issued on April 17 that has exempted Caribbean shipping from high port fees on China-built vessels.

In a release on April 19, the CPSO said USTR proposed over US$1 million for each US port call.

It said this would have increased the cost of shipping between the Caribbean and the US, with crippling consequences for inflation, shortages, delays and other supply-chain disruptions for the region.

The release said the CPSO advocated for three measures on behalf of the private sector and the solutions proposed were accepted by the organisation.

The first was an exemption for short sea shipping, defined as vessels plying the route between 2,750 nautical miles of the Caricom/Caribbean and the continental US.

The USTR determination recommended the exemption for 2,000 nautical miles for Caricom/the Caribbean.

The second measure was an exemption for vessels carrying less than 55,000 deadweight tons and less than 4,999 twenty-foot equivalents (TEUs).

The USTR determination recommended an exemption for 55,000 deadweight tonnes and less than 4,000 TEUs for Caricom/the Caribbean.

The third measure was an exemption for specialised cargo, such as energy and chemical products which may exceed 55,000 deadweight tonnes. The USTR proposed exemptions for individual bulk capacity of 80,000 deadweight tonnes.

The fourth measure was exemptions for specialised or special purpose-built vessels for the transport of chemical substances in bulk or liquid forms.

The release said the beneficial outcome of the USTR determination was the product of leadership and collaboration among several key private sector stakeholders and the governments of Caricom states.

It made special mention of the technical leadership and commitment of the CPSO Secretariat, led by economist Dr Patrick Antoine and his team.

It said their submissions and oral testimony were a major determinant of the positive USTR outcome.

"The co-ordination and advocacy of the CPSO was demonstrated by the record-setting 700 plus attendees from multiple industries and countries in the Caribbean on the first co-ordination call to deal with the issue on March 18.

"Indeed, the two community-wide regional consultations subsequently held to define and refine the regional private sector position for submission to the USTR were proud moments for the private sector, symbolising the enormous possibilities for successful outcomes inherent in collective action in pursuit of common goals."

The CPSO credited the openness and transparency of USTR and its panel of various representatives from other US government departments.

The USTR panel was receptive to the issues peculiar to the Caribbean, introduced via the submissions made by and testimony of the CPSO and other Caribbean partners.

"We were humbled by the contribution of Congresswoman Stacey Plaskett, US Virgin Islands representative, who participated, at short notice, for the entire duration of the briefing meeting with the CPSO, Tropical Shipping and Caricom ambassadors.

"The strategic timing of the questions posed by Plaskett to the hearings of the US Ways and Means Committee was a significant contributor to the USTR outcome."

Among the organisations which participated in the discussions were Tropical Shipping, Caribbean Hotel and Tourism Association (CHTA), Caribbean Tourism Organisation (CTO), Seaboard Marine, Atlantic Council, Caribbean Shipping Association (CSA), Antigua Port Authority CEO Darwin Telemaque and the Port Management Association of the Caribbean (PMAC).