Updated | 9 p.m.
British and U.S. Virgin Islands officials are working to get a meeting scheduled for next week, though in correspondence with the Source Friday, Gov. Albert Bryan Jr. said he plans to stand his ground.
“We spoke to the BVI leadership last year and were made promises,” Bryan said in a text. “Nothing has happened. We want a resolution that’s good for the greater Virgin Islands. Hopefully, we can resolve it when we meet next week.”
Asked about the impact the BVI’s proposed fee hikes would have on the USVI, Bryan shared that the proposal was not the original issue.
“The barriers to trade through the imposition of inequitable charter boat regulations was the issue,” he said. “The proposal adds insult to injury. We agree. We don’t need to fight. A meeting is trying to be scheduled for next week – but we will fight if we have to. Enough is enough.”
Asked about the possibility of asking the White House for help in imposing tariffs on goods imported from the BVI, Bryan added that the Legislature’s legal counsel opinion – reportedly what killed a meeting between Bryan and V.I. senators on Wednesday – is incorrect.
“We can’t levy taxes on interstate commerce, but the law is silent on foreign entities,” he said, though he expects, having just come from meetings with the U.S. Senate and Trump administration that he would be backed if the decision to implement tariffs is made.
“They are aware of what I’m doing,” he said.
5:45 p.m.
The British Virgin Islands will not be bullied by threats of “Trump-style tariffs” that Gov. Albert Bryan Jr. has proposed in response to substantial fee hikes for commercial yacht charters that the BVI is considering, Premier Natalio Wheatley said Friday.
Speaking at a press conference on the issue, and on his recent trade mission to Asia, Wheatley offered a “humble admonition” to USVI officials that “we don’t need to continue down that road” but instead should sit down and talk, while recognizing that the ties between the two territories are not just economic, but familial.
To that end, Wheatley said he has invited Bryan and the 36th Legislature to meet on Tortola to discuss the fee hikes but also how to optimize the economic potential for both the BVI and USVI through inter-island tourism, such as festivals and travel packages. The premier said he has not yet received a response but that time is running short because the legislation is ready for debate by the House of Assembly and the changes would have to be implemented well before the start of the charter season Nov. 1, when new licenses are issued.
The Source sought comment from Government House and Senate President Milton Potter regarding the invitation but did not receive a response as of press time.
The bill under consideration by the BVI government would dramatically increase annual fees for USVI-based commercial yacht charters sailing the British overseas territory. An overnight operator’s annual fee would increase 5,900 percent — from roughly $400 to $24,000 if the Commercial Recreational Vessels Licensing Act of 1992 were amended as proposed. A day sail charter operator’s annual fee would go up 6,150 percent, from $200 to $12,500.
If enacted, the fee schedule could change as soon as June 1.
St. Thomas and St. John charter boat operators decried the move at a town hall on Feb. 18, noting that it could have devastating effects on an industry they said contributes more than $90 million to the USVI’s marine tourism sector.
In response, Bryan called an emergency meeting with the 36th Legislature to discuss imposing a minimum 25 percent tariff on goods imported from the BVI. Scheduled for Feb. 26, it was postponed at the last minute after legislative counsel issued a legal opinion that the governor lacks the authority to impose such taxes, even with senators’ approval.
While the Legislature may impose customs duties of up to six percent on imported goods, the proposed 25 percent tariff would exceed that limit and would require the approval of Congress or the president, under delegated authority, according to the opinion by Assistant Legal Counsel Sharline L. Rogers.
That the USVI was even considering such a move came as a surprise, said Wheatley, who said he first learned about it through online media reports.
“The news took me by surprise because Governor Bryan has been a true friend of the BVI. During our darkest hour he was there to support us against direct rule, for which I will always be grateful,” said Wheatley. “Dialogue would have been the best course of action to raise any concerns, as opposed to any attempts to bully us,” he added, while noting that the current economic imbalance “heavily favors” the USVI.
“All I’m seeking is an appropriate balance, so the economic benefits of using BVI waters are fairly shared,” said Wheatley. “We are not seeking to cripple the USVI marine industry. We are confident that they will be able to do well even with the fee increases.”
Moreover, Wheatley said the proposed changes should not have come as a surprise because he met with Bryan last year and shared the amendments to the legislation. “We made it very clear that the fees had to increase,” and that USVI charter boat operators would have to pay more than $200 a year, he said.
“I find it somewhat insulting that their boaters don’t see the need to contribute more,” said Wheatley in response to questions from BVI reporters. “It has to be fair,” and paying fees that haven’t been changed since 1992 “is unacceptable.”
“We have our own natural resources here and we have to depend on our natural resources to be able survive. Any action taken to hurt the BVI hurts the USVI,” and vice versa, said Wheatley. “We are literally one people. Albert Bryan’s people come from Carrot Bay. Most of the persons in his Legislature have BVI roots. I would be very surprised if we allow it to escalate to a point where we’re using Trump-like tactics to be able to get our way. That is not the Virgin Islands way.”
That said, “We are not going to be bullied, I’ll say that to you. Those type of tactics will have no impact on my decisions whatsoever. The decisions that we make will be based on good faith discussions, consultations, and shared objectives,” said Wheatley.
