The Caribbean’s private sector is celebrating a trade victory following a decision by the United States Trade Representative (USTR) to exempt regional shipping from hefty port fees previously proposed on China-built vessels.
The ruling removes a threat that would have severely disrupted trade between the Caribbean and the United States.
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The Caricom Private Sector Organization (CPSO), which led the charge on behalf of the regional private sector, said the exemption will shield Caribbean economies from significant inflationary pressures, supply chain disruptions, and shipping delays that would have resulted from the proposed penalties.
“The CPSO appreciates the USTR Determination and recognizes that this tremendously beneficial outcome is the product of leadership and collaboration among several key private sector stakeholders and the governments of the Caricom states,” said CPSO chairman Gervase Warner in a statement on Saturday.
Under the original proposal, port fees exceeding US$1 million per call were to be imposed on China-built ships docking at US ports. The CPSO warned this would have had crippling consequences for Caribbean trade and access to goods. The USTR’s final determination instead exempts short-sea shipping between the Caribbean and the US from these charges.
The CPSO had advocated for several key exemptions, most of which were reflected in the USTR’s determination:
Short-sea shipping exemption: The USTR approved exemption for vessels operating within 2,000 nautical miles of the Caribbean-US route (CPSO requested 2,750 nmi).
Size-based exemption: The USTR exempted vessels under 55,000 deadweight tons and under 4,000 TEUs (CPSO requested under 4,999 TEUs).
Specialized cargo exemption: The USTR agreed to exempt vessels carrying energy and chemical products up to 80,000 deadweight tons, as well as special-purpose tankers.
Warner credited the outcome to a coordinated effort by private and public stakeholders across Caricom, highlighting the role of Barbados’ Prime Minister Mia Amor Mottley, who chairs the Caricom Heads of Government. Warner noted that the Heads of Government played a critical role through direct advocacy, including engagements with US Secretary of State Marco Rubio and written appeals to President Donald Trump.
Also instrumental was the CPSO Secretariat, led by economist Dr Patrick Antoine. Warner praised Antoine and his team for their technical leadership, comprehensive submissions, and oral testimony that influenced the USTR’s ruling. The CPSO’s first coordination call on March 18, 2025, drew over 700 participants from various industries and countries, underscoring widespread regional concern.
Warner also acknowledged valuable partnerships with Tropical Shipping, particularly CEO Tim Martin and CPSO-USBC Director Jennifer Nugent-Hill, as well as with key industry organizations such as the Caribbean Hotel and Tourism Association (CHTA), Caribbean Tourism Organization (CTO), Seaboard Marine, Atlantic Council, Caribbean Shipping Association (CSA), and the Port Management Association of the Caribbean (PMAC).
Special mention was made of Congresswoman Stacey Plaskett of the US Virgin Islands, whose strategic intervention during a US Ways and Means Committee hearing helped highlight the Caribbean’s position. CPSO also thanked the Caricom ambassadors accredited to the US for their unified support.
Warner also praised the openness of the USTR and its panel, which included officials from various US government departments, for their willingness to consider the unique needs of the Caribbean. (CMC)
