Gov. Albert Bryan Jr. has formally written to the United States Trade Representative Office about proposed fees on Chinese-built vessels calling on U.S. ports to emphasize “the adverse and disproportionate impact such a policy would have on the people of the U.S. Virgin Islands,” according to a Government House press release.
The United States Trade Representative is a federal agency responsible for developing and promoting foreign trade. In February, the agency proposed implementing up to $1.5 million in fees for any vessel built in China that calls on a U.S. port and other fees for shipping companies with Chinese-built vessels.
“We applaud the administration’s America First Trade Policy and the effort to protect domestic industries,” Bryan wrote. “However, as an island territory that relies on maritime resupply for our very survival, we must call attention to the outsized and harmful impact this policy would have on our people.”
Government House noted that more than 95 percent of the food, medicine, construction supplies and other goods Virgin Islanders consume are imported “primarily from ports in Florida aboard vessels that, by necessity, are smaller, shallow-draft ships — many of which are currently Chinese-built.”
“These specialized vessels are uniquely suited to navigating the waters and port conditions of the Virgin Islands and cannot be quickly replaced in the short term,” according to the press release.
Smaller vessels “would face exorbitantly higher per-container fees — up to $3,750 per twenty-foot equivalent unit (TEU) — compared to ultra-large container ships operated by Chinese carriers, which would be charged just $65 per TEU.”
“This disparity could result in a 250 [percent] increase in shipping costs for Virgin Islanders, dramatically inflating the price of basic necessities in a community already burdened by high living costs and economic hardship,” according to Government House.
In his letter to United States Trade Representative Jamieson Greer, Bryan suggested that the proposal exempt small, near-shore vessels under 1,100 TEU and 21,000 deadweight tonnage that operate short-haul routes between the U.S. mainland and the territory. He also suggested exempting near-shore Caribbean routes — including those within the Caribbean Basic Economic Recovery Act area.
“These proposed exemptions are not only consistent with the spirit and intent of the rule, but they are necessary to prevent catastrophic economic repercussions for the 87,000 Americans living in the U.S. Virgin Islands,” he wrote. “We must not allow a policy aimed at curbing foreign dominance to inadvertently penalize Americans in the territories.”
