02 May 2025

Caribbean nations are breathing easier after securing a major diplomatic and economic victory with the US’ decision to exempt the region from steep tariffs on Chinese-built ships.

The decision, which protects critical supply chains and stabilises shipping costs was announced on 17 April 2025 by the Office of the United States Trade Representative (USTR). It was confirmed that vessels operating in and around the Caribbean, including those servicing US territories, would not be subject to the newly introduced port fees on Chinese-built ships.

Initially, the tariffs, aimed at countering China’s dominance in global shipbuilding, threatened to impose surcharges of up to US$1.5mn per vessel visit on operators including those in the Caribbean.

The Caribbean Private Sector Organisation (CPSO) praised the announcement, calling it “a much-needed relief.”

“As originally proposed, the USTR fees—exceeding US$1mn for each US port call—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,” explained the CPSO.

The exemption followed a months-long campaign led by Caribbean leaders, private sector organisations, and industry stakeholders. Barbados Prime Minister and CARICOM Chairman, Mia Mottley had written President Trump directly on behalf of the bloc, while Antigua Port Authority CEO Darwin Telemaque, and CPSO Chairman Patrick Antoine were among the key figures lobbying US officials including Secretary of State Marco Rubio.

The USTR’s determination grants specific exemptions vital to the Caribbean economy including short sea shipping where routes under 2,000 nautical miles are exempt. Vessels under 55,000 deadweight tonnes (DWT) and fewer than 4,000 TEUs are also exempt, as well as specialised cargo ships including larger vessels carrying chemicals or energy products up to 80,000 DWT.

Tropical Shipping, a major carrier for the Caribbean, announced it had been granted an exemption, sparing its customers potential tariffs. “This is a huge victory for us and the entire Caribbean region that we serve,” said President and CEO Tim Martin, adding that “Our voices were heard.”

Seaboard Marine and King Ocean, other major regional operators, also secured an exemption. In a statement, Seaboard Marine noted that the “outcome is significant for our customers, communities, and partners across the Americas and the Caribbean.” They emphasised that the proposed policy threatened “to disrupt trade and the movement of essential goods.”

US Congresswoman Stacey Plaskett (US Virgin Islands) played a crucial advocacy role in Washington, with her strategic interventions at US Ways and Means Committee hearings helping drive the Caribbean exemption forward.

She warned that the fines could backfire on the US by pushing Caribbean nations even closer to China. “The other concern is, one that has been mentioned by my colleagues as well, is national security. We cannot have Caribbean nations moving closer to China, who is already on the shores of these Caribbean nations, to try and do increase trade with them, if we are having a trade war with China,” said Plaskett.

Industry-wide concerns had mounted globally when the Trump Administration initially proposed the tariffs under a 2023 investigation. Executives warned that fees could stack up, harming US exporters and pushing up prices for American consumers by as much as US$30bn annually. “Ships and shipping are vital to American economic security and the free flow of commerce,” acknowledged US Trade Representative Jamieson Greer.

Ultimately, Caribbean advocacy appears to have proven effective. The CPSO said that it orchestrated a coordination call with over 700 participants across industries, two regional consultations, and numerous technical submissions. “The CPSO Secretariat, under the technical leadership of Patrick Antoine and his team, played a significant role with their submissions and oral testimony,” the organisation highlighted.

Special acknowledgment was also given to regional institutions like the Caribbean Shipping Association, the Port Management Association of the Caribbean (PMAC), and the Caribbean Hotel and Tourism Association (CHTA), as well as the CARICOM Secretariat for their support.

The Trump administration’s final rule, published in the Federal Register, carved out specific exemptions for Caribbean shipping, Great Lakes operators, and vessels servicing US territories. While Chinese-built ships owned by Chinese firms will face levies of up to US$50 per net tonne (rising by US$30 annually), Caribbean-based operations will avoid the harshest impacts.

Looking ahead, CPSO Chairman Gervase Warner pledged continued vigilance in what is increasingly an uncertain global economic space. “The CPSO will continue advocating on crucial matters such as the impact of US tariffs on CARICOM trade,” he said.

With shipping lanes secured and trade flows protected—at least temporaily—the Caribbean can move forward a bit more confidently in the face of continued significant downside risks which have seen the IMF revise growth projections for the region in its latest World Economic Outlook report.

Source: Caribbean Insight – Volume 47, Issue 9

18 April 2025

The US has revoked key licences that enabled Trinidad and Tobago to pursue joint natural gas projects with Venezuela, in a move that has sent shockwaves through the nation’s energy sector and raised questions about its economic future.

Prime Minister Stuart Young confirmed the revocation of the Office of Foreign Assets Control (OFAC) licences for the Dragon and Cocuina-Manakin gas fields during a sombre press conference at Whitehall on 8 April.

“We have now been informed that our licence from OFAC, which is dated 18 December 2023, has been revoked by OFAC, as well as our Manakin-Cocuina licence,” said Young.

The licences had allowed multinational energy giants Shell and BP, along with Trinidad’s state-owned National Gas Company, to develop offshore gas fields near the Venezuelan maritime border. The Dragon field alone holds an estimated 4tn cubic feet of gas, with first exports initially slated for 2026.

These projects were seen as critical to reversing Trinidad’s declining gas output and maintaining its status as Latin America’s largest liquefied natural gas (LNG) exporter.

However, the Trump Administration’s broader rollback of an ease in Venezuelan sanctions has left the Caribbean nation scrambling for alternatives. “It prevents payment at this stage to the Venezuelan Government. We are going to continue doing the work,” Young said, adding that companies have until 27 May to wind down operations.

Trinidad had already begun paying over US$1mn per year in taxes to Venezuela for the expected 20-year Dragon project. But the move by Washington, citing concerns over Venezuela’s failure to restore democratic norms and manage illegal migration, has effectively frozen the deal.

Young made it clear that his government is not giving up. He has already contacted Washington-based attorneys to explore options for a legal response. “There is a process for, I wouldn’t say appeal of this revocation, but for you to make an application for it not to be, or for there to be amendments. We are going to be engaging that process on behalf of Trinidad and Tobago,” he said.

Young has also reached out to key US officials, including Special Envoy for Latin America Mauricio Claver-Carone and Secretary of State Marco Rubio. “I expect that we will be given an audience. I expect that we will be given the opportunity to continue to make our case,” said Young.

The Prime Minister stressed that the US had earlier assured him the move was not intended to harm Trinidad and Tobago. “Secretary of State Rubio told me, ‘Stuart, in this thing there are many ways and times can change, but don’t worry, we’re not going to harm Trinidad and Tobago,’” he shared.

Nonetheless, opposition politicians have seized on the setback. David Lee, shadow energy minister for the United National Congress (UNC), criticised the government’s overreliance on Venezuela. “You had placed all your eggs in the basket of the Maduro government… We told them so,” said Lee during a campaign walkabout in Preysal.

UNC’s Sean Sobers was even more direct. “What we said is we had a problem with Maduro, dealing with the Venezuelan administration, and that it would be a geopolitical nightmare to place Trinidad and Tobago’s future in one basket.”

Economists and energy experts have echoed concerns. “This means short to medium term disaster for the economy as it spells the continued contraction of the energy sector,“ warned Dr Indera Sagewan in an interview with the Guardian Newspaper, adding that “we knew a Trump administration would spell bad news for this deal.”

Energy expert Tony Paul noted that while the situation is grim, opportunities remain within Trinidad’s exclusive economic zone. “We can start by simply collecting the taxes due to us under existing law and closing major revenue loopholes,” said Paul.

From a fiscal perspective, the consequences are stark. Former Finance Minister Colm Imbert, in a sworn affidavit, admitted that without gas from Venezuela, the government would “soon be faced with very difficult choices in terms of maintaining the current levels of subsidies, grants, free services and social programmes.” The country’s ongoing foreign exchange problem is also a concern.

The Energy Chamber also urged a redirection of focus. “There are significant opportunities to develop natural gas fields within Trinidad and Tobago’s exclusive economic zone and these must also be pursued actively and urgently.”

Still, Young assured the population that all is not lost. “Plan B and Plan C and Plan D are already in play,” he said, highlighting the ongoing Manatee project and other domestic fields like Mento, Calypso, and Onyx.

“The good thing is they understand and have taken careful note of what it is Trinidad and Tobago can do,” Young added, referring to his discussions with US officials. “We will continue to fight for the ability and the opportunity to keep our energy sector whole.”

Yet, as Trinidad nears its 28 April  general election, the political and economic implications of the revocations are expected to loom large over the national conversation and whether the ruling People’s National Movement (PNM) will be returned to power.

Source: Caribbean Insight – Volume 47, Issue 8

04 April 2025

Only days after US Secretary of State Marco Rubio’s tour of the Caribbean, President Donald Trump has created another powder keg when he announced sweeping global tariffs on countries including those in the region.

Trump’s 1 April executive order imposed a blanket 10% tariff on most Caribbean countries, while in the case of Guyana, the tariff is as high as 38% according to the White House website. The new tariffs are being justified under the International Emergency Economic Powers Act (IEEPA) and framed as a response to “non-reciprocal” trade relationships.

The move has rattled CARICOM, where around 40% of exports—such as petroleum, agriculture, and manufactured goods—are shipped to the US. Barbados Prime Minister Mia Mottley described the policy as “a blindsiding blow to our economic stability,” while Trinidad and Tobago’s LNG sector began evaluating its impact on US competitiveness. Regional consumers may face rising prices for US imports like food, worsening inflation.

“The government of Guyana has taken note of the reciprocal tariffs announced by the US Government… our Government is closely engaged with our US partners to better understand the issue and have it addressed as appropriate,” said Guyana’s Finance Minister Ashni Singh.

CARICOM currently imposes tariffs on US products under its Common External Tariff, ranging from 0–20% on industrial goods and up to 40% on agriculture. The situation has raised fears of economic instability across the Caribbean and marked a potential turning point in US–CARICOM trade relations.

Days earlier, Secretary Rubio completed a largely positive tour of the region where the Trump Administration’s foreign policy was on the agenda, as regional leaders sought to directly address a range of thorny issues at the heart of recent geopolitical tensions.

His meetings in Jamaica, Guyana, and Suriname underscored a sharp focus on trade, the Cuban medical programme, energy security, organised crime, migration, and the deepening rivalries with China and Venezuela.

Rubio’s meeting with Prime Minister Andrew Holness in Jamaica tackled multiple high-stakes issues, including the controversial US travel advisory that urges Americans to “reconsider” travel to Jamaica due to crime.

“We’re going to go back and reevaluate the travel advisories as they currently stand to ensure that they do reflect the reality of the new numbers,” Rubio said, acknowledging that Jamaica has “made very impressive progress” in general numbers overall when it comes to the murder rate.

Much of the spotlight in Jamaica was on the Cuban medical programme, which the Trump Administration views as exploitative.

“We have no problem with medical assistance and we don’t have a problem with doctors. We have a problem… how it’s operated around the world… It’s not that they’re Cuban doctors, it’s that the regime does not pay these doctors, takes away their passports, and basically it is in many ways forced labour, and that we cannot be in support of,”  said Secretary Rubio, attempting to clarify the US position.

However, Holness responded strongly in defense of the programme and Jamaica’s handling of Cuban doctors. “Let us be clear, the Cuban doctors in Jamaica have been incredibly helpful to us. We ensure that they are treated within our labour laws and benefit like any other worker,” said the Prime Minister.

Barbados Prime Minister Mia Mottley took the opportunity to directly raise alarms about a proposed US tariff on Chinese-built ships that could increase shipping costs dramatically.

“What we potentially face with the announced cess—levy, whatever you want to call it—on ships made in China will have serious and deleterious consequences for the commerce not just of Barbados, not just of the Caribbean, but also for Florida,” Mottley warned. She estimated that such a tariff could add between US$1,500 to US$4,000 to the cost of importing a single container.

Mottley urged the US to exempt Caribbean nations from the policy and wrote directly to President Trump in her capacity as CARICOM Chairman. Rubio offered only cautious reassurance: “Rest assured we will take that message back,” while defending the administration’s broader trade stance as an effort “to reset global trade in a way that’s fair to the US.”

Rubio and Mottley also discussed the US-Barbados partnership under the Caribbean Basin Security Initiative. According to a State Department spokesperson, the two leaders focused on “tackling illicit narcotics and firearms trafficking, dismantling organised crime networks, and strengthening regional security coordination.”

Talks with recently sworn in Trinidadian Prime Minister, Stuart Young focused on energy cooperation and border security. Young said he received assurances that “the US will not harm Trinidad and Tobago,” particularly in relation to the Dragon Gas Deal with Venezuela. Rubio was reportedly receptive, with Young adding, “We are moving full speed ahead.”

The pair also discussed the US designation of Venezuelan gang Tren de Aragua as a Foreign Terrorist Organisation. Rubio called on Caribbean nations to join the effort to dismantle such networks, noting, “Many of the guns and the weapons that are being used by gangs to commit acts of violence here in Jamaica are purchased in the US and then shipped here and we want to commit to doing more to stopping that flow.”

Security concerns reached a peak in Guyana, where Rubio issued a stern warning to Venezuelan President Nicolás Maduro over territorial claims on Guyanese land. “There will be consequences for aggressive action,” Rubio declared. “We have a big navy, and it can get almost anywhere.”

Guyanese President Irfaan Ali welcomed the firm stance, saying, “I’m very pleased at the reassurance of the US, ensuring the safeguard of our territorial integrity and sovereignty.” The US and Guyana also signed a new security memorandum targeting narco-trafficking, smuggling, and human trafficking.

Rubio did not hold back on his criticism of China either, referencing poor-quality infrastructure projects. “We almost all had concussions because the road was so bad – it was terrible,” he said of a Chinese-built road in Guyana. “They bring their workers. They don’t hire you.”

China’s mission in Guyana fired back, accusing the US of making “baseless accusations” and trying to “drive a wedge” between China, the Caribbean and Latin American countries.

The past few weeks in US-Caribbean relations have shown that while Rubio’s Caribbean tour may  reflect the Trump Administration’s deeper engagement with the region as it seeks to push back against Chinese and Venezuelan influence, it is clear that the region may not be spared in the US’ push to rebalance its trade with the rest of the word.

Source: Caribbean Insight – Volume 47, Issue 7

21 March 2025

Several Caribbean countries are breathing a bit easier after the  US disputed reports that it is considering implementing new travel restrictions that could affect six Caribbean nations—St Lucia, Antigua and Barbuda, Dominica, St Kitts and Nevis, Haiti and Cuba.

According to the The New York Times, countries have been categorised into three levels of restrictions: a “red” list, where travel would be completely banned; an “orange” list, which would impose severe visa restrictions; and a “yellow” list, where nations have been given 60 days to address specific security concerns or face possible escalation to the other two categories.

St Lucia, Antigua and Barbuda, Dominica, and St Kitts and Nevis allegedy fell under the “yellow” list, while Cuba has been placed in the “red” category, alongside Venezuela.

The Times noted that the categorisation was based on concerns about “inadequate security practices for issuing passports, insufficient information-sharing on travelers, or the selling of citizenship to people from banned countries”.

Each of the four Eastern Caribbean nations on the yellow list operates a Citizenship by Investment (CBI) programme, which allows foreign nationals to acquire passports in exchange for financial investment. The US has raised concerns that such programmes could be exploited to bypass existing travel restrictions.

Caribbean governments were quick to seek clarification on these potential restrictions. St Lucia’s Prime Minister Philip Pierre stated that his administration had received no official communication from the US regarding the country’s inclusion on the list.

“The Government of St Lucia and the St Lucian Embassy in Washington DC are actively seeking clarification on this matter… The USA is a friend of St Lucia and remains a key partner in St Lucia’s development. We look forward to an even stronger relationship between our two countries,” said the Prime Minister’s office in a statement.

Similarly, Antigua and Barbuda’s Prime Minister Gaston Browne instructed his Ambassador to the US, Ronald Sanders to send a diplomatic note to the US State Department. Browne voiced his discontent, asserting that “there is no objective justification for Antigua and Barbuda to be placed on a list that could hinder the travel of its citizens”.

The Government of St Kitts and Nevis stressed its commitment to resolving any concerns related to its CBI programme. “Since August 2022, we have maintained open dialogue with the US government, particularly regarding reforms to our CBI programme,” a statement from the government read.

Meanwhile, Cuba’s alledged inclusion in the “red” category means that its citizens could face a complete ban from entering the US. Given the longstanding strained relations between Washington and Havana, the move comes as no surprise. The Times report suggests that the Trump Administration views Cuba and Venezuela as “long-standing adversaries of US foreign policy.”

The rumured restrictions would reflect a significant expansion of travel bans imposed during President Donald Trump’s first term. The initial bans, which primarily targeted Muslim-majority countries, were challenged in courts but ultimately upheld by the US Supreme Court. President Joe Biden revoked those bans in 2021, but with Trump back in office, his administration argues that reinstating and expanding the policy is necessary.

The Trump administration have justified the travel restrictions as measures designed to protect American citizens from “aliens who intend to commit terrorist attacks, threaten our national security, espouse hateful ideology or otherwise exploit the immigration laws for malevolent purposes”.

This approach has drawn criticism, as many of the countries affected by these proposed restrictions are small, developing nations. Kevin Hosam, Founder and Chairman of EC Holdings, raised concerns about the criteria used to select countries for these lists.

“It’s puzzling that Grenada, which also operates a CBI programme, is absent from these reports,” he said, adding that “this inconsistency raises questions about the rationale being used for these designations”. He also called for clarity on the lists; noting discrepancies between different reports with some countries listed in the New York Times article missing from Reuter’s report.

“Well, first of all, there is no list. What people are looking at over these last several days is not a list that exists here that is being acted on. There is a review, as we know through the president’s executive order, for us to look at the nature of what’s gonna help keep America safer when dealing with the issue of visas and who’s allowed into the country,” said US State Department spokesperson, Tammy Bruce.

“So, that’s not something that is – certainly I can talk about regarding something that doesn’t exist, but certainly when that review is done, we’ll have something that we can discuss,”  said Bruce.

While the final decision rests with the White House, sources within the State Department suggest that the lists could still be developed along the line reported.

As the review unfolds, Caribbean governments are hoping to avoid travel restrictions that could significantly impact tourism, business, and diplomatic relations.

For now, affected nations must wait as the Trump Administration finalises its latest immigration policy adjustments. Given the region’s reliance on US travel for business, tourism, and familial ties, the coming weeks and months will be critical in determining whether any changes would target the Caribbean.

Source: Caribbean Insight – Volume 47, Issue 6

10 March 2025

The fate of Trinidad and Tobago’s highly anticipated Dragon gas deal with Venezuela has been thrown into uncertainty following a series of hardline measures by US President Donald Trump against the Maduro Administration. 

The Trump administration’s recent policy reversals have cast doubt on whether the project, vital for Trinidad’s energy security and economic stability, can move forward as planned. On 26 February, President Trump announced the termination of a license granted under the Biden Administration that allowed US oil giant Chevron to operate in Venezuela. 

“We are hereby reversing the concessions that crooked Joe Biden gave to Nicolás Maduro, of Venezuela, on the oil transaction agreement, dated 26 November 2022, and also having to do with electoral conditions within Venezuela, which have not been met by the Maduro regime,” said Trump on Truth Social.

Following Trump’s announcement, US Secretary of State Marco Rubio confirmed a broader crackdown on energy deals with Venezuela. “Today, pursuant to @POTUS directive, I am providing foreign policy guidance to terminate all Biden-era oil and gas licenses that have shamefully bankrolled the illegitimate Maduro regime,” said Rubio on social media.

Acting Prime Minister and Energy Minister Stuart Young admitted that the government could not guarantee the survival of the Dragon gas deal, which involves Trinidad’s National Gas Company (NGC) and multinational energy giant Shell.

“Can we provide any assurance at this stage? The answer is obviously no. Are we engaged with the right people, we believe? We think we are and we will continue to work, and at every step of the way, if there is something for us to report, we will,” said Young at a media briefing.

He added that Trinidad remains in contact with US Embassy officials, Shell, and BP to assess the impact of Washington’s latest moves. “At this stage, there has been no indication of any negative effect on Trinidad and Tobago,” Young said, while acknowledging the difficulty in predicting future US policy.

The Dragon gas project, initially signed in 2018 and revived under the Biden administration, is crucial for Trinidad’s energy security. The project is expected to supply 200mn cubic feet of natural gas per day by 2027, which is essential for keeping Trinidad’s liquefied natural gas and petrochemical industries running.

“This deal and that gas being delivered in 2027 is what is going to help us with the foreign exchange, it’s what’s going to help us continue paying the bills on your behalf, continuing in ensuring that there are drugs in the hospital, our children continue to receive education, and that is what we’ve consistently been fighting for,” said Young, chiding opposition officials for their recent comments on the deal.

He confirmed that Trinidad has made payments to Venezuela as part of the Dragon gas agreement. “The answer is yes, payments have been made with respect to Dragon,” he admitted, but declined to disclose specific figures, stating that Shell and NGC were handling those payments.

Reports indicate that Trinidad has been paying Venezuela approximately US$1mn per year in surface taxes, social contributions, and royalties as part of the agreement. Rubio’s comments about Maduro’s funding have raised concerns that these payments could become a political target in Washington.

With the Dragon deal facing uncertainty, the Trinidadian government is now focused on lobbying the US for an extension of its current license, which expires in October 2025. Sources close to the negotiations confirmed that Prime Minister Keith Rowley intends to push for an extension when he meets with US officials.

Shell and NGC remain optimistic about the project’s potential. The companies have completed geotechnical surveys and well data assessments and believe that at least 4.2tn cubic feet of gas is present in the Dragon field.

Meanwhile, Young, who is set to succeed Rowley as Prime Minister in March, vowed to continue advocating for the deal. However, the geopolitical stakes remain high. While Venezuela stands to gain an estimated US$30mn per month in revenue from Dragon’s gas sales, the deal’s survival hinges on US sanctions policy. Trinidad, for its part, must navigate a complex diplomatic landscape, balancing its economic interests with Washington’s shifting stance on Venezuela. 

Source: Caribbean Insight – Volume 47, Issue 5