Gemma at hand
Journalist
Report from John’s, Antigua Getty Images
Guyana and the Caribbean region in the broad sense are concerned
The Guyana Caribbean nation sighs a relief after US President Donald Trump announced a 90 -day break on the introduction of higher rates on a number of countries.
Guyana, nestled between Venezuela and Suriname on the South American continent, had been distinguished for rates of 38% on many of its exports.
After Trump’s change of policy, he now faces prices of only 10% – the same as all countries in Canada, China and Mexico.
But why did Guyana face a higher sample in the first place?
Guyanese political commentator Francis Bailey said the country is taken in a geopolitical battle between the United States and China. Or more specifically – Washington opposes “very strong” from Beijing to Guyana.
In recent years have seen billions of dollars in investment in Guyana by Chinese entities, in everything, from roads and hospitals to hotels and shopping centers. And a new crucial bridge connecting the Georgetown capital to the western region of Demerara-Mahaica is currently under construction by a company based in Beijing.
For its part, the United States continues to be happy to buy the main exports of crude oil, gold and Bauxite from Guyana, which is the ore from which aluminum is extracted. All of this had to be exempt from the planned price of 38%, which would rather have hit the fishing and sugar industries in Guyana.
The United States also supports Guyana in its territorial dispute with Venezuela over the vast region of Essequibo which forms two-thirds from western Guyana. During a visit to Georgetown in March, Secretary of State Marco Rubio warned Venezuela of “consequences” if she were to use force against Guyana.
But the high price planned has shown Washington’s anger, explains Mr. Bailey. “I think the reason why we had received such high prices is to apply pressure on Guyana.
“The United States says:” If you want our protection, you have to hunt the Chinese of your country. “Trump is a very transactional president – and Guyana is in a very precarious position against his saber opponent, Venezuela who increased acts of aggression.”
Francis Bailey
Guyanese political commentator Francis Bailey said the United States has put pressure on Guyana to reduce its links with China
The Guyanese government has not responded to requests for comments. The country, formerly one of the poorest nations in the Western hemisphere, and a former British colony, has experienced a wave of wealth since its first oil discovery in its territorial waters in 2015.
Last year, he exported $ 3.13 billion (2.4 billion pounds sterling) in crude oil in the United States, according to United Nations.
In the Caribbean, all countries are now faced at a 10% price on their exports to the United States. However, this is the impact of Trump’s world prices for the most concerning the United States.
Indeed, the love of the Caribbean and the dependence on American products is immediately apparent when you take a look at a high street or a supermarket plateau through the region. In fact, some islands imported up to 70% of their consumer goods from their North American neighbor.
And with American products that are based on raw materials or components abroad that should increase in price, this will inevitably be transmitted to Caribbean consumers.
In addition, a large part of what the Caribbean nations buy in other countries of the world follows via the United States.
Thus, with the White House which now strikes Chinese products in the United States with 125%prices, the Chinese items which are then re-exported in the Caribbean should see price increases in a similar amount. And around 10% for goods from other countries arriving via the United States.
With already growing shipping costs in the Caribbean and high local import duties causing exorbitant prices in a region assailed by low wages, the impact of Trump’s prices could be deep and felt.
Getty images
US Secretary of State Marco Rubio was recently in Guyana and the United States supported the country in his border dispute with neighboring Venezuela
In Antigua and Barbuda, interior designer Carissa Warner told BBC that 70% of its materials are imported from the United States and 20% of China.
“Some of my projects are pending while we are waiting to see what’s going on,” she explains. “I am extremely worried about the commercial aspect but also as a local consumer.
“I am so worried about the cost of food that I was looking for pots online to start cultivating fresh products. I don’t think people make the impact it will have about us.”
Ms. Warner thinks that the Caribbean governments could relieve pressure on their people is to reduce their own import rights, which are partially calculated using a percentage of the cost of an article.
The Prime Minister of Antigua and Barbuda, Gaston Browne, has nicknamed the “extremely disturbing” global prices and urges citizens to “buy more intelligently and buy local”.
Caribbean supermarkets are full of products imported from the United States
Trump’s prices occur while the Caribbean are already struggling with a confluence of difficult economic conditions for the cost of cleaning after frequent natural disasters such as hurricanes, with the sequelae of the cocovio pandemic.
The ambassador of Antigua and Barbuda to the United States, Sir Ronald Sanders, says that the United States has long benefited from a trade surplus with most Caribbean countries.
“For decades, we have helped support American prosperity by collectively much more from the United States than we export,” he said.
“The problem we have created for ourselves is that we have been dependent on the American market for so long and that we have not sought to diversify in other markets.”
As for the 10% tariff on Caribbean exports to the United States, Sir Ronald says: “Any loss is not a good thing for our small savings, but the 10% that we face will not disturb our goods to go to the American market.”
Small market sizes of the Caribbean Islands, high labor costs and the distance from the main markets have maintained their relatively modest manufacturing sectors. Their exports include many niche products such as specialized rums and native foods such as Ackee, a jamaic fruit.
“These types of products are all oriented towards a certain type of market and will not face any competition because the United States does not produce them and the countries facing its own prices,” continues Sir Ronald.
The concerns exacerbated in the Caribbean are potential additional taxes on ships built in Chinese entering American ports of up to 1.5 million dollars per mooring. This idea was mentioned by the White House in February.
Many fear that will aggravate freight costs in the Caribbean and will cause new increases in the price of daily goods, given the large volume of items sold in China.
Sir Ronald adds that the problem of overcoming the United States “can only come from the diversification of the market, but it is not a success overnight.”
He adds: “It is not as easy to create new markets as people think. It is not governments that control trade; it is the private sector. And a large part of what we buy will always come via the United States.”
Many Caribbean leaders believe that the best strategy to thwart the fallout is to negotiate as a block.
Mia Mottley, president of the intergovernmental group Caricom, said that the region has faced the most difficult times since its 15 Member States acquired independence several decades ago.
“We work and will continue to work to become more self-sufficient, but … This trade war will mean higher prices for all of us,” she said in a recent statement.
Ms. Mottley added that it was essential to redouble efforts to “invest in the agricultural production of the Caribbean and the manufacturing of light”.
“We must build our links with Africa, Central and Latin America, and renew these links with some of our older partners in the world, in the United Kingdom and in Europe, and in Canada. We must not count solely on one or two markets.”
Ms. Mottley, who is also the Prime Minister of Barbados, asks Washington to “work with” the Caribbean to reduce prices.
She added: “In the United States, I say that simply:” We are not your enemy. We are your friends “.”
