The Tribune

By ANNELIA NIXON

Tribune Business Reporter

anixon@tribunemedia.net

THE Government is facing criticism over what the Opposition describes as a delayed response to a trade deficiency that could expose hundreds of millions of dollars in Bahamian exports to new United States tariffs, with concerns mounting over the potential impact on the country’s fishing industry.

East Grand Bahama MP Kwasi Thompson yesterday argued that the Davis administration only moved to strengthen legislation after the US determined that The Bahamas had failed to adequately prohibit and enforce measures against goods produced through forced labour,” Mr Thompson said.

“Now, after that threat has emerged, the government is rushing amendments through parliament in an attempt to correct a deficiency that should have been addressed years ago.”

The proposed legislation comes after the Office of the United States Trade Representative (USTR) found that The Bahamas had neither imposed nor effectively enforced a prohibition on the importation of goods produced with forced labour, leaving The Bahamas open to facing a 12.5 percent tariff on exports to the US if corrective action is not taken.

Mr Thompson said the issue carries particular significance for fishing communities in his constituency and throughout the Family Islands.

“In East Grand Bahama, in Sweeting’s Cay, McLean’s Town, High Rock and throughout the Family Islands, fishermen, processors and small businesses depend on access to international markets,” he said.

“They work hard every day to provide for their families and keep one of the most important industries alive.”

He argued that government action should have come before the threat of sanctions emerged.

“Governing is not about waiting for a problem and then scrambling to solve it,” he said.

He also referenced growing concerns within the fishing sector, which exports millions of pounds of spiny lobster annually to the US market.

“Representatives of the fishing sector are warning that these tariffs could place Bahamian products at a serious competitive disadvantage in the export market,” Mr Thompson said.

The concerns mirror warnings issued by Adrian LaRoda, president of the Bahamas Commercial Fishers Alliance (BCFA), who recently told Tribune Business that the proposed tariffs could significantly undermine the competitiveness of Bahamian seafood exports.

“In terms of the economic effect, we would be concerned because adding 12.5 percent; in real terms, that’s 15 percent,” Mr LaRoda said. “That further impacts us in being able to really sell our product to US importers. That’s a major concern for us.”

According to Mr Laroda, Bahamian fisheries already face ‘stiff competition and narrowing margins,’ he said.

Mr LaRoda estimated that The Bahamas exports approximately 12 million pounds of crawfish annually, worth close to $90 million, with roughly four million pounds destined for the US market.

The USTR’s report found that The Bahamas’ failure to prohibit and enforce restrictions on imported goods made with forced labour “burdens or restricts US commerce.” Countries that have enacted prohibitions or committed to doing so face a lower proposed tariff rate of 10 percent, while jurisdictions deemed to have neither laws nor enforcement mechanisms face the higher 12.5 percent rate.

Minister of Finance Michael Halkitis said speaking on child labour and child exploitation added: “And even though we have already the necessary legislation in place to guard against it, we are amending and strengthening the law, and we will ensure that it is properly enforced.

He added: “And so we do not anticipate that we will be the subject of any adverse tariffs in relation to that child labour issue.”

Mr Thompson questioned what assurances the Government could provide to those whose livelihoods depend on exports.

“The question is simple,” he said. “Why did it take the threat of tariffs from the United States before this government acted? And what assurance can the government give today to the hardworking men and women of our fishing communities that their livelihoods will not be jeopardized by a failure to act?”