Prime Minister Gaston Browne says the Organisation of Eastern Caribbean States (OECS) is exploring a temporary suspension of the Common External Tariff (CET) as part of efforts to lower the cost of living and expand trade opportunities across the sub-region.
Browne made the disclosure following the conclusion of the two-day OECS Summit in Montserrat, where regional leaders discussed strategies to address rising prices and strengthen economic ties with neighbouring markets, including the Dominican Republic and Panama.
The Antigua and Barbuda leader, who chaired the summit and recently assumed the chairmanship of the OECS Authority, said the region must look beyond its traditional trading partners to secure more affordable goods.
“As you know, Colon is the largest free trade zone within the hemisphere, and they do in excess of $3 billion US dollars a year in trade, and there are many opportunities for us to increase trade and to get very good quality products at affordable prices,” Browne said.
He noted that many products imported into the region pass through multiple markets before reaching consumers, driving up costs.
“Now, the US’s policy of tariffication, that in itself has resulted in an increase in the cost of goods, and that is why we have to explore new markets to try and address the issue of the rising cost of living within the OECS,” Browne said.
The prime minister said regional governments have received numerous complaints from citizens about the rising cost of everyday items and believe the issue requires a coordinated response.
To address the challenge, Browne said Antigua and Barbuda has asked the Caribbean Community (CARICOM) Secretariat and the OECS Commission to undertake a study examining products that could be sourced more cheaply from the Dominican Republic.
“We have asked CARICOM and the community for suspension of the common external tariff. So we have asked the OECS Commission to do a study to determine the products that we can import at cheaper prices from the Dominican Republic,” he said.
The findings would inform discussions with CARICOM on a temporary suspension of the CET, allowing OECS countries greater flexibility to import selected goods from outside the regional trading bloc.
Browne said Antigua and Barbuda has already established direct shipping links with the Dominican Republic, receiving at least two shipments weekly.
“We have already established direct shipping links, and if we can import products directly at a cheaper price, that will certainly help to reduce the cost of living here in Antigua and Barbuda and within other OECS countries,” he said.
The OECS comprises Antigua and Barbuda, Dominica, Grenada, St. Lucia, St. Vincent and the Grenadines, St. Kitts and Nevis, Montserrat, Anguilla and the British Virgin Islands.
Regional officials are expected to review the study’s findings before determining whether to formally pursue changes to the CET arrangement with CARICOM.
This article was originally published by Antigua News Room. Read the original article here: OECS Weighs Tariff Suspension to Reduce Cost of Living.