'This will devastate us’

WESTERN BUREAU:

The CARICOM Private Sector Organisation (CPSO) is warning that the region faces a looming economic threat from the International Maritime Organization (IMO) global carbon tax, which could significantly increase the cost of shipping and severely impact the tourism and export sectors.

In a candid but urgent presentation during yesterday’s CPSO-Private Sector Organisation of Jamaica (PSOJ) Business Forum, Dr Patrick Antoine, chief technical director of the CPSO, said the region’s support for the global carbon tax, meant to address climate change, now stands at odds with its economic interests and prior trade advocacy efforts.

“We have a contradiction,” Antoine said bluntly. “We were the ones who convinced US policymakers of the value of short sea shipping and nearshoring. Now, we’ve signed on to something that will make that same system more expensive, and they’re asking why.”

The IMO is advancing a global carbon levy on shipping emissions, which Caribbean countries have largely supported. However, Antoine warned that the new tax would raise freight costs substantially for island economies and undermine the very trade strategies the region has spent years promoting.

“Carnival Cruise Lines and others have come together and said, ‘This is going to kill us’. Shippers are in the room, they’ve said the same. And now, US policymakers are questioning how we expect trade leniency while supporting a measure that adds costs to their supply chains,” he said.

Antoine revealed that internal communications among US decision-makers suggest that support for the carbon tax is emerging as a key criterion in trade negotiations. This means that countries that endorse the levy could be penalised with stricter trade terms or reduced concessions.

“It’s already being raised frontally in Washington,” he said. “This is no longer theoretical. It could be used as a criterion in how the US treats with us going forward.”

Antoine went on to call for the urgent convening of a technical working group to address the region’s stance and preparedness for the IMO framework as well as a realistic timeline for implementation.

“Our ports are not ready. Our shipping sector is not ready. And the tourism sector is already hurting,” Antoine said, citing a 43 per cent decline in bookings across five smaller Caribbean states linked to recent travel advisories and rising costs.

“This is piling costs onto an already vulnerable industry. We cannot afford to score ‘own goals’ at a time like this.” he said.

The CPSO’s position is not to reject the environmental imperative, Antoine clarified, but to demand balance, time, and inclusion of the private sector in negotiations. He praised Jamaica’s Ambassador Wayne McCook for including business leaders in external trade talks and called for similar inclusion in all regional climate and maritime policies.

“We have been asking to be part of these discussions for two years. This is the 11th hour,” he said.

Antoine emphasised that CARICOM must speak with one voice, diplomatically, technically, and politically, on the issue, particularly with Jamaica now chairing the regional bloc.

“We need a joined-up diplomatic strategy. We’ve perfected the technical work, but we need the political machinery to move with the same speed,” he said.

janet.silvera@gleanerjm.com