ST. CROIX — Delegate to Congress Stacey Plaskett raised concern during a House Committee on Ways and Means meeting Wednesday about the impact proposed port fees for Chinese-made ships could have on the Virgin Islands, which she noted imports “virtually everything needed for daily life.”
The Office of the U.S. Trade Representative has proposed significant fees on Chinese-built vessels entering U.S. ports as part of a broader strategy to counter China’s growing dominance in global shipbuilding and to revitalize the U.S. maritime industry.
The proposed fees, which include up to $1 million per entry for vessels owned by China maritime operators, are designed to encourage the use of U.S.-built vessels and to address concerns over China’s market share in shipbuilding.
The Office of the U.S. Trade Representative is reviewing public comments and feedback on the proposal. Adjustments to the initial plan are being considered to address concerns raised by various stakeholders.
Plaskett shared her thoughts during Wednesday’s congressional hearing on how the Virgin Islands would be affected if the proposed fees are implemented. She noted American ports are predominately making military ships, not cargo ships used in the Caribbean.
“It doesn’t provide a balance for us, and we are concerned not only in the Virgin Islands but Puerto Rico as well as the other Caribbean islands that this imposition of $1 million per port that is being proposed will bear incredible impact on us,” she said. “A shipping industry serving the Caribbean cannot absorb additional costs of the proposed port fees, which would have a significant economic consequence to us.”
Plaskett noted the median household income in the Virgin Islands is $30,000 a year. She pointed out the cost of the proposed port fees would be passed on to consumers. As the territory continues completing disaster recovery projects, she said the cost of completing projects that have already been negotiated with the Federal Emergency Management Agency would “skyrocket” if the fees are imposed.
The Caribbean region, which only has 80 million people, is the fourth largest trade partner with the United States, Plaskett said. She said the shipping vessels in the region are American owned but made by China. She asked U.S. Trade Representative Jamieson Greer during the meeting if he has considered exemptions for the Caribbean region.
Greer, America’s top trade negotiator, said he has heard from other territories that have expressed similar concerns.
“We’ve had a process going on with hearings and collecting comments, and this is certainly something that we take on board,” he said.
Greer said the United States does not make any ships, noting a need to change the incentives. He acknowledged Plaskett’s point regarding exemptions for American-owned vessels.
“We’re not going to make 25 ships on April 18, the day after we put in any kind of measure,” he said. “So, I certainly think that there has to be accommodation made for circumstances because we’re not going to have all the ships in on April 18. So, this is helpful to me. No decision has been finalized.”
After reviewing all submitted comments, the Office of the U.S. Trade Representative is required to issue its final proposal outlining the specific fees and regulations to be implemented on or before April 18.
Plaskett also raised concern about 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,” she said. “If we are having a trade war with China, if we want to ensure that America is first, America needs to be first in its third border, which is the Caribbean.”
