MIAMI – Statement by the Guyanese American Chamber of Commerce (GACC) on the Imposition of Tariffs on Imports from Guyana:
Caribbean Basin Economic Recovery Act
The Guyanese American Chamber of Commerce (GACC) expresses grave concern over the recent imposition of a 38% tariff on imports from Guyana by the United States.
This decision marks a dramatic shift from the previous trade relations under the Caribbean Basin Economic Recovery Act (CBERA), which has long provided Guyana and other CARICOM member states with duty-free access to the U.S. market for a range of products, many of which are not produced in America.
The imposition of these tariffs appears to be linked to the evolving economic landscape, particularly Guyana’s rapidly growing oil industry.
While it is understandable that trade imbalances and surpluses are factors in any nation’s economic policy, the disproportionate impact of these tariffs on a small, vulnerable economy like Guyana’s cannot be overlooked.
This policy could harm the progress of many agribusinesses and manufacturers. These businesses depend on access to the U.S. market. They support thousands of jobs and help keep Third Border countries stable and secure.
Imposition of Tariffs
Moreover, the imposition of these tariffs is not only detrimental to Guyana but also to the wider Caribbean Community. As CARICOM member states face the unique challenges of small economies, these tariffs exacerbate the vulnerability of countries already burdened with economic fragility.
The decision fails to account for the economic realities of these nations, which rely heavily on trade preferences to foster growth, diversification, and job creation in an increasingly complex global economy.
Prior to Guyana’s recent oil exports, the US enjoyed a monumental trade surplus. It is therefore a flawed approach to impose tariffs on products from Guyana because of a recent trade surplus occasioned by oil exports that contribute to the energy and national security of the US.
Impacts of Climate Change
The timing of this decision is very concerning. It overlooks the increased risks that CARICOM states face from climate change. Rising sea levels, stronger hurricanes, and flooding are already harming Caribbean nations. These countries are on the front lines of environmental damage.
Their economies suffer more from global climate change. Adding trade barriers now is a heavy burden they cannot handle.
CBERA, along with the earlier Caribbean Basin Initiative (CBI), represented a trade strategy by a strong nation that showed awareness of and empathy for the challenges faced by its truly supportive Third Border partners.
Even more significant is the negative impact these tariffs will have on thousands of small and medium size businesses in the US whose core business is the importation, distribution and retail sale of products.
Rising prices for these products will certainly result in reduced sales and the ultimate loss of thousands of US jobs.
We urge the U.S. administration to reconsider this decision and engage in a more thoughtful dialogue with CARICOM countries. These nations are not only key partners in trade but also vital allies in the global fight against climate change. Special consideration must be given to their unique economic challenges and the need for sustainable growth.
Trade Practices
We call for fair and equal trade practices. These practices should support small island economies. They need tools to handle economic hardship and climate change. These issues can also affect the United States negatively.
