The Atlantic Council and Tropical Shipping hosted a dialogue session with CARICOM Ambassadors and the CARICOM Private Sector Organization (CPSO) in Washington D.C. on March 25th 2025 to facilitate an update and discussion on the possible implications of the United States Trade Representative (USTR) Section 301 proposed remedies for Chinese maritime, logistics, and shipbuilding practices, and particularly the potential impact of said remedies on Caribbean economies.
The Atlantic Council opened the session, welcoming Ambassadors and outlining expectations for a lively exchange. Tropical Shipping provided an overview of its submission to the USTR oral comments process on March 24th, focusing particularly on the unique features of Caribbean shipping, the implications for regional shippers as it relates to shipping costs, the efficiency of shipping services, and other risks/unintended consequences that may be caused by the USTR proposals.
The CPSO, in its presentation, shared the private sector’s perspectives and focused on its oral testimony before the Section 301 Committee on March 24th. The discussion also covered the proposed measures’ impact on key sectors such as agriculture, manufacturing, energy, tourism and cruise lines, along with potential response options.
CPSO CEO and Technical Director, Dr. Patrick Antoine, underscored the gravity of the proposals, pointing out that the impact for the Caribbean is far more dire than the consequences suffered during COVID, when shipping costs rose and fell temporarily.
“If the proposals are advanced in the present form, the cost increases will be sustained for some time,” he said. “Most of the sectors rely on companies operating at least one Chinese-built vessel. This would mean that, at the very least, a fine of US$1 million could apply per port call, but given how the USTR measures were proposed, the fines could reach as high as US$3.5 million where products of US origin are not carried in US-flagged and operated vessels.”
The Ambassadors in attendance expressed their strong concern for the impact the measures could have on the Community and committed to transmitting the information received their respective governments to assist Member States and the Community in arriving at a settled position.