Carib Scope

分类： business

  • Govt seeks US tariff exemption for seafood

    Govt seeks US tariff exemption for seafood

    As the Bahamas’ high-stakes commercial crawfish season approaches just days away, the Davis administration is racing to secure a targeted exemption from a newly implemented 12.5 percent United States tariff that threatens to upend the country’s critical fisheries sector. The tariff entered into force on July 24, following a determination by the Office of the United States Trade Representative (USTR) that The Bahamas had not enacted and effectively enforced a ban on imports produced through forced labour.

    Agriculture and Marine Resources Minister Jomo Campbell has moved quickly to clarify that the USTR’s ruling is not an indictment of Bahamian fishing industry labour practices. He emphasized that the penalty stems from gaps in the country’s broader regulatory framework for imported goods from third parties, not evidence of forced labour in local commercial fisheries. All licensed Bahamian commercial fishing vessels are locally owned, operate in full compliance with Bahamian labour law, and do not rely on foreign labour, Campbell said, adding that the sector’s ethical track record remains uncompromised.

    The timing of the tariff is particularly problematic: the annual crawfish season, the most commercially valuable period for the country’s fishing industry, opens on August 1, leaving exporters and small-scale fishers bracing for increased costs in their largest export market. Spiny lobster (commonly called crawfish in The Bahamas) and stone crab are the two Bahamian seafood products most exposed to the new duty, with roughly 60 percent of the country’s spiny lobster exports destined for the US market. Data from the Marine Stewardship Council shows the sector exports over four million pounds of lobster tails annually, supporting roughly 9,000 Bahamian fishers. Adrian LaRoda, president of the Bahamas Commercial Fishers Alliance, estimates annual crawfish shipments to the US generate between $50 million and $70 million in revenue. These exports make up a substantial portion of The Bahamas’ total $120 million in annual export-generated foreign currency earnings, a critical lifeline for the country’s economy.

    In response to the tariff, the Bahamian government has outlined a three-pronged strategy to mitigate harm and resolve the dispute with Washington. First, the government has already passed amendments to the Customs Management Act that formally prohibit imports of forced labour-produced goods, aligning the country’s laws with USTR requirements. Campbell noted that six other countries have already updated their legislation following USTR’s action and successfully moved from the 12.5 percent tariff rate to a lower 10 percent levy, and The Bahamas intends to become the seventh. The government is currently investigating why its recent regulatory changes did not qualify the country for the lower rate, and identifying remaining gaps to address.

    Second, the administration is actively pursuing a product-specific exemption for Bahamian crawfish and stone crab, given their outsized importance to the local industry and the lack of forced labour concerns in the sector. Third, the Ministry of Agriculture and Marine Resources is coordinating with the Ministry of Finance, Bahamas Customs, and The Bahamas’ embassy in Washington to provide direct support to seafood processors and exporters as they navigate the new regulatory and cost requirements ahead of the season opening.

    The 12.5 percent tariff was imposed as part of 60 separate Section 301 investigations launched by the US into countries and trading blocs that Washington determined had failed to block forced-labour goods from entering their markets. USTR initially named 54 economies, including major US allies and trading partners such as Canada, the United Kingdom, the European Union, Australia, Japan and New Zealand, as failing to both enact and enforce forced labour import prohibitions, with six others cited for failing to enforce existing bans. Countries that met USTR’s requirements by enacting a full ban, committing to one via trade agreement, or establishing a partial blocking system were assigned a 10 percent tariff, while non-compliant economies faced the higher 12.5 percent rate. The final determination for The Bahamas went into effect at 12:01 a.m. on July 24, with goods already in transit before the deadline and entered into the US by July 28 exempted from the additional duty.

    Campbell also moved to correct misinformation about the magnitude of the cost increase for exporters. He explained that The Bahamas had already been subject to a temporary 10 percent US import surcharge since August 2025, implemented by the US to address what the White House called serious international payments imbalances and a large US balance-of-payments deficit. That temporary surcharge expired the same day the new 12.5 percent tariff took effect, meaning exporters face only a 2.5 percentage point increase in total duties, rather than a full 12.5 percentage point added to the existing charge. “Our fishermen should not go into this season believing the figure is five times what it is,” Campbell said.

    Even so, the additional cost lands on an industry that already operates on very narrow profit margins. A US seafood importer previously urged the US administration to grant an exemption for Bahamian crawfish and stone crab, arguing that the Bahamian fishery has no documented forced labour issues, and the tariff would harm not just Bahamian suppliers but also US distributors and American consumers. The importer warned that the full additional cost cannot be absorbed by the seafood supply chain, and would risk disrupting long-standing commercial relationships between US buyers and Bahamian fishing operations.

    Beyond the fisheries sector, the tariff could have much broader economic impacts for The Bahamas, which relies heavily on the US as its primary trading partner. A submission during the US public consultation period estimated that up to $985 million in 2024 Bahamian exports to the US could be affected, including refined petroleum, styrene polymers, pearl products, and financial documents of title. US trade data shows 83.3 percent of The Bahamas’ imports originate in the US, which exported $5.48 billion in goods to The Bahamas in 2024 and held a $3.7 billion trade surplus with the country.

    Campbell emphasized that the new tariff will not impact seafood sold within The Bahamas, nor exports to the European Union and Canada, and that the opening of the 2025 crawfish season will proceed as scheduled on August 1 across New Providence, Grand Bahama, and all of the country’s Family Islands.

  • MP restates ‘business government’ position at training workshop

    MP restates ‘business government’ position at training workshop

    Against a backdrop of expanding regional integration and shifting global trade dynamics, the government of St. Vincent and the Grenadines has reaffirmed its dedication to fostering a pro-business environment, positioning itself as what leaders call “a business government” that prioritizes private sector growth and trade opportunity. The commitment was laid out publicly by Dwight Fitzgerald Bramble, the country’s minister overseeing foreign affairs, foreign trade, foreign investment and diaspora affairs, during the opening ceremony of the Organisation of Eastern Caribbean States (OECS) Specialised National Services Sector Training Workshops, held in Kingstown.

    In his opening remarks to attendees spanning four days of programming, Bramble made clear that the administration stands fully behind the private sector, which drives actual trade activity. “I can assure you that you have our full support,” Bramble stated, adding that ongoing input from business leaders and industry stakeholders is critical to shaping effective policy. “Governments do not trade; it is individuals, organisations and businesses that do. Your input is therefore critical to ensuring that we continue to provide the support you need.”

    Delores Francis, a representative of the OECS Commission, echoed the significance of the training initiative, framing it as a core component of the regional body’s longstanding mission to lift up member states through targeted capacity building. The workshop, she explained, is designed to upgrade the technical expertise of a broad range of stakeholders, from trade policy specialists and public sector services officials to representatives of business support organizations and private service suppliers.

    “This investment is critical, as it equips participants to confidently navigate the rapidly evolving landscape of international trade in services,” Francis noted. Beyond building practical skills, the training helps stakeholders understand and leverage the trade commitments negotiated for their countries under regional and international agreements. Most notably, it supports the translation of pledges laid out in the Revised Treaty of Basseterre — the founding agreement that governs OECS economic integration — into tangible commercial opportunities that benefit local businesses and economies.

    The full workshop ran from an initial opening on Monday through to concluding activities on Thursday, with all interactive, hands-on sessions led by Audel Cunningham, a trade consultant commissioned by the OECS. Over the course of the four-day program, participants dived into a comprehensive slate of timely topics relevant to modern services trade. These covered rules and opportunities for services trade within both the OECS and the broader Caribbean Community (CARICOM) bloc, strategies for regulatory reform to support trade growth, frameworks for international services trade policy, best practices for services trade negotiations, methods for services statistics tracking and classification, WTO rules governing domestic regulation of services, and the fast-growing areas of e-commerce and digital trade.

    The workshop wrapped up with a dedicated sensitization session focused on two high-priority topics: market intelligence specifically tailored for the services sector, and the growing trend of “servicification” — the increasing integration of services into manufacturing production and value chains.

    The specialized training workshop is just one part of the OECS Commission’s broader ongoing push to strengthen institutional capacity and boost the competitiveness of the services sector across all its member states. For its part, the government of St. Vincent and the Grenadines says it will continue collaborating with both regional and international partners to build domestic trade capacity, advance a services-led growth model, and position the small island nation to capitalize on emerging opportunities in regional and global trade.

  • Gouddossier 3: Een jaar na de belofte: waar staat de goudsector?

    Gouddossier 3: Een jaar na de belofte: waar staat de goudsector?

    Just over 12 months ago, Surinamese President Jennifer Simons laid out a bold new policy direction for the country’s critical gold sector in her 2026 annual address. Her agenda was clear and ambitious: ensure the industry delivers greater shared benefits to Surinamese society, crack down on rampant gold smuggling, raise government royalty rates and export levies, and update outdated national mining legislation. At its core, the plan aimed to let Suriname reclaim full control over its valuable natural resources and capture a fairer share of the sector’s massive economic value.

    Now, a full year after that landmark pledge, mounting challenges have put the government’s ability to execute its reform agenda under intense public scrutiny. A series of recent high-profile incidents — including an enforcement operation in Sarakreek, a mass fish die-off in the Saramacca River, ongoing debates over unregulated chemical use, persistent questions surrounding opaque concession awarding, and continuing concerns about unreported gold smuggling — have pushed the gold sector back to the center of national public debate. What was once a question of what reforms the government wanted to implement has shifted to whether the state has the capacity and resolve to follow through on its own commitments.

    Lawmaker Jennifer Vreedzaam of the opposition National Democratic Party (NDP) argues that the environmental crisis unfolding along the Saramacca River demonstrates that the sector’s problems run far deeper than just unlicensed artisanal mining. In an interview with local outlet TBN Prime Alert, she explained that individual chemicals not currently banned under national law are often combined on gold mining sites to create a highly toxic mixture that causes severe, irreversible environmental damage. This pattern, she says, raises fundamental questions about the effectiveness of border controls for chemical imports and overall regulatory oversight of the entire gold sector.

    Vreedzaam accuses the current government of failing to display sufficient decisive action to address these flaws. She emphasizes that the crisis is not just about delivering emergency aid to affected river communities: it is about protecting residents’ livelihoods, public health, and fundamental human rights tied to a healthy environment. Vreedzaam is calling for full criminal investigations into responsible parties, stricter controls on all chemical imports tied to mining, and harsher penalties for environmental crimes, noting that the issue transcends all partisan political interests.

    Even within the governing coalition, policymakers acknowledge that a fundamental restructuring of the gold sector is long overdue. Ronny Asabina, parliamentary group leader for the coalition partner BEP, argues that the challenges are not caused solely by illegal mining. Instead, he traces the current crisis to decades of ineffective, fragmented governance of the sector. For meaningful reform, Asabina says, the government must reassert central control by aligning concession policy, regulatory oversight, enforcement action, and core legislation into a cohesive, coordinated framework.

    While Vreedzaam focuses heavily on the consequences of failed environmental oversight and the urgent need to protect people and ecosystems, Asabina highlights the lack of a structural, sector-wide regulatory framework that forces enforcement agencies to constantly react to crises rather than prevent them. Despite their differing emphases, both lawmakers reach the same core conclusion: without a strong, coordinated state, the gold sector will remain unmanageable, unable to deliver benefits to the nation while curbing its harms.

    Today, President Simons’ 2025 annual address has become a critical benchmark to measure the current government’s performance. The proposed reforms were always ambitious, but the past few months of crises have laid bare just how difficult implementation will be. The gold sector represents billions of dollars in economic value for Suriname, but it simultaneously exposes major gaps in environmental protection, public safety, transparency, concession governance, and the effectiveness of state authority.

    In reality, the national debate over the gold sector has grown far beyond the industry itself. It has become a test case for how effective the Surinamese state is at protecting the country’s natural resources, upholding the rule of law, and safeguarding the interests of ordinary citizens who depend on healthy ecosystems for their survival. One year after the reform pledge was made, the biggest challenge facing the government is no longer drafting new policy plans — it is delivering tangible, visible progress that lives up to the promises made to the Surinamese people.

  • How a young entrepreneur turned his grandmother’s recipe into a growing liqueur brand

    How a young entrepreneur turned his grandmother’s recipe into a growing liqueur brand

    In the lead-up to one of St. Lucia’s most anticipated annual celebrations, Carnival, 24-year-old entrepreneur Ajan-I Lansiquot and his family gathered at Bay Gardens Marina Haven to launch a limited-time pop-up bar. The pop-up showcased their homegrown, handcrafted spirit brand, Leonas Liqueur, serving up custom cocktails to thirsty Carnival attendees and hotel guests, drawing a lively, engaged crowd to the waterfront venue.

    Leonas Liqueur is a family-owned artisanal brand that specializes in premium creamy milk-based liqueurs, available today in three distinct, customer-favorite flavor profiles: Dark Ambition, a rich coffee-infused blend; Black and Ivory, a sweet cookies and cream variation; and Crimson Velvet, a unique combination of strawberry and peanut.

    What began as a planned feature profiling local business performance during the high-traffic Carnival season quickly became an intimate first-hand look at the grit and vision of a young small business owner building something meaningful from intergenerational roots. A correspondent from St. Lucia Times spent several hours on-site with the Leonas Liqueur team as they served Carnival revellers picking up their costumes from a nearby mas camp along with guests staying at the Bay Gardens resort.

    Speaking with St. Lucia Times, Lansiquot described Leonas Liqueur as more than just a beverage brand—it is a premium lifestyle label rooted in the values of progress and excellence. “It’s crafted for people who want to build something bigger than themselves,” he explained, his steady, grounded delivery matching the ambition of his brand mission.

    Observers on-site noted the 24-year-old carries a thoughtful, intentional demeanor as he navigates the day-to-day demands of business ownership and leadership. Every customer interaction, every detail of the pop-up bar—from the neatly displayed branded bottles with sleek, chic Leonas labeling to the preparation of each handcrafted cocktail—is handled with deliberate care, a reflection of the brand’s core values.

    That intentionality is no accident: it grows directly from the brand’s foundational purpose of honoring and extending a family legacy. The recipe for Leonas Liqueur originated with Lansiquot’s grandmother, Leona, for whom the brand is named. For decades, Leona sold her homemade liqueur from a roadside stall, and she passed the original recipe down to her grandson.

    Lansiquot’s journey to full-time brand ownership began after a turning point in his early career. He had been working a contract role at a local warehouse, a position he enjoyed that taught him valuable operational and business skills he still uses today. He always planned to launch his own venture eventually, taking careful notes on business operations every day, fully expecting his contract would be renewed. When the extension fell through, he chose to channel his frustration into building something lasting, rather than waiting for another opportunity. A core goal from the start was to build a business that prioritizes the well-being of its team: “Once you work with Leonas, or anything I build now or in the future, you’re in good hands,” he says.

    Two and a half years into building the brand, Lansiquot is open about the challenges his team has faced, noting the journey has required pushing through unexpected setbacks and financial losses to earn the small wins and growth the business enjoys today. Beyond building a profitable brand, Lansiquot is committed to growing as a leader, and setting a positive example for his 17-year-old brother Kamari, who he brought on as a co-owner and co-producer of the brand.

    Kamari shares that working on the business has been a valuable learning experience, even with its challenges. “It has ups and downs like any other venture,” he explains. “The hardest part for me is balancing my school work with the demands of the brand.” Still, he embraces the learning curve, as he nurtures his own entrepreneurial ambitions for the future.

    As the team mixed signature liqueur cocktails behind the pop-up bar, Ajan-I joked that growing the brand has unexpectedly taught the whole team professional bartending skills. Onlookers noted the team looked entirely natural as they handed off beautifully garnished drinks—some topped with fresh cherries, others with cookie crumbles—to waiting customers. Many patrons reacted with immediate positive feedback, smiling and giving thumbs up before they even finished their first sip.

    For the Lansiquot family, the Carnival pop-up is just one step in a much longer journey. While the festive season brings a welcome boost in foot traffic and sales, Ajan-I’s long-term goal is to turn Leonas Liqueur into a year-round staple for locals and visitors across St. Lucia. As the business grows, the core team is expanding too, adding brand ambassadors and new strategic partners to scale operations. Today, the brand accepts personal orders and deliveries via its dedicated social media pages, caters private events, and is building consistent, sustainable supply chains. All signs point to Leonas Liqueur being a lasting, growing presence in St. Lucia’s artisanal food and beverage scene.

  • The Government announces that construction of the Amber Highway will begin next month

    The Government announces that construction of the Amber Highway will begin next month

    SANTO DOMINGO — In a major announcement for economic development in the Dominican Republic’s northern zone, Vice President Raquel Peña confirmed Saturday that construction on the long-awaited Amber Highway infrastructure project is slated to kick off in August. The transformative route will cut travel time between the high-population provinces of Santiago and Puerto Plata to under 30 minutes, with targeted goals of accelerating tourism, cross-regional commerce, logistics efficiency, and broad-based economic expansion across the 14 provinces that make up the country’s northern region.

    Peña shared the update with reporters following a joint expanded working meeting hosted by the Association of Merchants and Industrialists of Santiago (ACIS), which gathered representatives from allied regional institutions, leaders from across Cibao provinces, and Eduardo Estrella, the head of the Ministry of Public Works and Communications (MOPC), alongside other key stakeholders.

    “We are very pleased with the start of this project,” Peña told attendees, noting that the highway will unlock widespread benefits, sustained growth, and long-term development for the entire northern corridor. She emphasized that Santiago and the broader Cibao region are currently undergoing a period of robust economic and urban expansion, which has created urgent demand for upgraded infrastructure to meet growing population needs for mobility, interregional connectivity, and development support. The vice president also extended gratitude to the local private sector for its ongoing collaboration on the initiative, confirming that the national government is prioritizing public works investments that underpin regional growth through the construction and expansion of roads, bridges, and other critical infrastructure assets.

    According to MOPC Minister Estrella, the project is currently in the final pre-construction phase, with contract signing and stakeholder socialization underway with the firms that won the competitive bidding process. Back in early July, the Amber Highway Consortium SRL — a joint venture made up of four leading domestic construction firms: Ingeniería Estrella, Rizek Constructora, Magna, and Constructora Mar — secured the bid for the highway’s design and construction, awarded by the national RD Vial Trust.

    To speed up project delivery, Estrella explained, three simultaneous construction fronts will be established: one working northbound from Santiago toward Puerto Plata, a second working southbound from Puerto Plata toward Santiago, and a third operating from the route’s midpoint, cutting total build time by leveraging coordinated multi-point work.

    During the ACIS working session, Estrella also outlined the full slate of ongoing public infrastructure projects the government is rolling out across Santiago and the broader northern region, all designed to improve interregional connectivity, enhance road safety, and boost the global competitiveness of the Cibao area. Key priority projects highlighted include the expansion of the Navarrete ring road to four lanes, the widening of the existing Santiago-Licey highway, and new road connection works linking Moca and other nearby population centers.

    On ongoing national paving programs, Estrella noted that MOPC currently has multiple work brigades operating simultaneously across Santiago, Puerto Plata, San Francisco de Macorís, and other northern provinces. He added that due to ongoing national budget constraints and global increases in construction material costs, all infrastructure interventions are being rolled out according to evidence-based technical priority criteria, to ensure the needs of communities across the entire country are addressed in a balanced, equitable manner.

    ACIS President Marcos Santana, for his part, framed the cross-sector meeting as a sign of strong collaborative momentum. He noted that the participation of representatives from the northern region’s core productive, commercial, industrial, and service sectors demonstrates the clear commitment of the business community and organized civil society to work in coordinated partnership with the national government to advance initiatives that drive inclusive development across the Cibao region. Saturday’s gathering was organized in direct response to concerns raised by regional leaders during a prior working meeting held last week at the Vice President’s offices in the National Palace, putting collaborative problem-solving into action on a tight timeline.

  • Retailers indicate that sales for Father’s Day have decreased over the years

    Retailers indicate that sales for Father’s Day have decreased over the years

    In the lead-up to Father’s Day in Greater Santo Domingo, Dominican Republic, foot traffic in commercial plazas and retail stores has ticked upward in recent days — but both shoppers and business operators agree that total sales remain well below the averages recorded in years before the current economic downturn.

    As shoppers browsed city streets for gifts on the Saturday before the holiday, the most common refrain centered on the crippling impact of skyrocketing living costs, which has turned the annual tradition of gift-giving into a far more challenging expense than it was a decade ago. Normally, the week leading up to Father’s Day brings packed crowds to commercial areas across the capital, but widespread price hikes have forced consumers to be far more deliberate about where they spend their limited budgets, cutting back on non-essential purchases even for loved ones.

    Inside most retail outlets, foot traffic remains notably sparse, with many aisles holding only two to three shoppers at a time. Jennifer Mariñez, a sales associate at a local apparel store, noted that while foot traffic has picked up gradually from Friday, overall sales are moving far slower than in previous cycles. She added that an emerging trend of last-minute shopping has taken hold in recent years, with many consumers delaying purchases until the final hours before the holiday.

    The pressure of upcoming back-to-school expenses has further dampened Father’s Day spending, according to local shoppers. Ana Rosado, a mother and wife who toured multiple shopping districts including Duarte Avenue and Luperón Street looking for a gift, confirmed that most stores have seen drastically lower customer volumes. She pointed out that demand for school supplies has already outpaced Father’s Day gift purchases, as families prioritize mandatory education costs over holiday celebration spending.

    Shifting cultural trends also play a role in softening retail sales, according to some consumers. Rafael Montero, a father of three, said he increasingly prefers shared memorable experiences over material gifts for Father’s Day — a preference that he says is growing across Dominican families. “You have to adapt to the times,” Montero explained, noting that many families now opt for home-cooked meals, day trips, or other shared activities instead of purchasing physical presents.

    Even with these broader shifts, traditional apparel remains one of the most popular gift categories for shoppers who do choose to buy physical presents. Shirts, basic t-shirts, socks, and undergarments top the list of most sought-after items, holding steady as a go-to choice for consumers who want to give a tangible gift to their fathers or partners.

    Staff at a Duarte Avenue clothing store told local outlet Listín Diario that they expect a late rush of customers to boost end-of-day sales, matching the annual pattern seen in past Father’s Day celebrations. Business so far has been slower than a typical workday, they confirmed, but the team remains optimistic that consumer traffic will pick up as the workday ends. They noted that most early shoppers have been couples buying gifts for partners, and that the traditional late surge of children purchasing gifts for their fathers is still expected to arrive before closing, which could bring a much-needed boost to final holiday sales numbers.

  • Mitur: Recovering the Russian market is a priority for Dominican tourism

    Mitur: Recovering the Russian market is a priority for Dominican tourism

    The Dominican Republic’s tourism sector has made reclaiming its pre-pandemic, pre-conflict Russian tourist market a top strategic priority, according to the nation’s Minister of Tourism David Collado. In comments reported by local outlet Acento, Collado outlined the significant barriers that have blocked the resumption of full travel ties between the Caribbean nation and Russia, the most pressing of which are overflight restrictions imposed by the United States and Europe. These restrictions have derailed plans to launch direct air routes between the two countries, eliminating the most efficient travel option for Russian visitors.

    In the period after direct connections were halted, indirect travel via Cuban airspace offered a limited workaround for Russian tour operators and travelers. Collado confirmed, however, that shifting circumstances in Cuba have now made this indirect route unviable, leaving the Dominican Republic without a reliable pathway to welcome large volumes of Russian tourists. Despite these challenges, the minister noted that Russian travel industry players have remained engaged, with consistent communication reaching Dominican authorities from operators eager to restart packaged travel to the country’s popular beach and resort destinations.

    Collado also highlighted a small win for the nation’s international tourism recovery, confirming that commercial air operations between the Dominican Republic and Venezuela have officially resumed. Even with this progress, he emphasized that restoring access to the Russian market remains a non-negotiable priority for the sector. Prior to the suspension of air links, the Dominican Republic welcomed roughly 500,000 Russian tourists annually, making Russia one of the largest source markets for the country’s tourism-dependent economy.

    The sharp drop in Russian visitor numbers stems from a convergence of multiple overlapping factors beyond just airspace restrictions. The ongoing military conflict between Russia and Ukraine has reshaped global travel regulations for Russian operators and travelers. Additionally, long-haul flight operations face sustained economic and logistical headwinds, Russian airlines face broad international sanctions that limit their operations, and shifting economic conditions in both Russia and the Dominican Republic have added further complexity to restarting the market. With Russia located more than 11,000 kilometers from the Caribbean nation, developing a workable travel solution will require creative navigation of ongoing geopolitical and economic barriers.

  • ‘Mild’ hybrids hit with 20% duty

    ‘Mild’ hybrids hit with 20% duty

    Trinidad and Tobago’s Customs and Excise Division has introduced a sweeping tax change that will reshape the local automotive import market, reclassifying vehicles fitted with Smart Mild Hybrid Vehicle (SHVS) technology as non-qualifying for existing hybrid vehicle tax concessions. Issued on July 22, General Order No 24 of 2026 formalizes the new ruling, which imposes a 20% customs duty on all imported SHVS-equipped vehicles, on top of the standard 12.5% value-added tax. The regulatory shift directly affects six popular passenger vehicle models produced by two major Asian automakers: Maruti Suzuki’s Fronx, Grand Vitara, Swift, Ertiga and XL7, plus Toyota Kirloskar Motor’s Urban Cruiser Taisor.

    The core point of contention behind the new classification is Customs’ official interpretation of what qualifies as a hybrid vehicle. According to the ruling, SHVS systems do not meet the concession eligibility criteria because the technology’s integrated electric motor “does not function as a motor for propulsion.” This definition has been met with fierce pushback from across the local automotive industry, which argues the classification is factually incorrect and implemented without proper stakeholder engagement.

    Rhondall Feeles, owner of Millennium Auto Dealership and vice president of the Cunupia Business Chamber, pushed back directly against Customs’ core claim, confirming that mild hybrid systems do contribute to vehicle propulsion. Feeles explained that SHVS technology pairs an internal combustion engine with a rechargeable electric system to power vehicle movement, which aligns with the existing regulatory definition of a hybrid vehicle outlined in concession policy. He noted that the confusion stems from Customs’ requirement that the electric motor must independently propel the vehicle to qualify, a threshold that is not written into any existing hybrid regulation.

    Feeles drew a distinction between current mild hybrid models and older micro hybrid systems at the center of a previous court case, where Customs successfully argued micro hybrids did not qualify for concessions because their batteries only powered accessories, not propulsion. “The mild hybrid, though it contributes less to propulsion than a full strong hybrid, still does propel the car,” Feeles emphasized. He warned that the sudden, unannounced policy change will trigger widespread financial disruption for both licensed importers and individual consumers importing vehicles privately, and called on Customs to engage in urgent consultations, introduce a grace period for vehicles already purchased or in transit, and coordinate with relevant government ministries to adjust the policy.

    Visham Babwah, president of the Trinidad and Tobago Automotive Dealers Association (TTADA), joined the call for urgent discussions with Finance Minister Davendranath Tancoo and senior Customs officials. Babwah highlighted that the new tax is being applied retroactively to vehicles that have already been imported and are currently awaiting customs clearance, a practice he described as fundamentally unfair to consumers who already locked in purchase agreements based on previous tax rules. He estimated that the combined new duties will add between $40,000 and $50,000 to the retail price of affected vehicles, a cost increase that will price many local consumers out of the market for new cars. Many buyers have already secured auto loans based on the original lower price, and banks will not approve additional lending to cover the tax gap, forcing many customers to cancel their purchases entirely, Babwah explained.

    Babwah stressed that the local automotive sector is already grappling with significant economic headwinds, including slowing sales and high unemployment, making the sudden tax increase particularly damaging. “A hybrid is a hybrid. A mild hybrid is still a hybrid vehicle,” he said, reaffirming the industry’s position that SHVS vehicles should remain eligible for concessionary tax treatment.

    Major import firms have also publicly criticized the policy, describing the decision as an unannounced “overnight” rule change that caught the entire industry off guard. RORO Importers noted in a public Facebook post that dozens of vehicles are already sitting at port or in transit to the country, and businesses have no way to absorb the unexpected additional tax costs. The company warned that drastic new price increases will push consumers to buy higher-mileage used vehicles instead of new, safer models.

    Eurojapan Motors Ltd. echoed these concerns, saying that industry leaders had repeatedly requested advance clarification on potential classification changes from regulators, and were assured any adjustments would be shared via official public notice. Instead, the company said, “No warning, no circular, no transparency, and no dialogue were provided.” The firm confirmed that vehicles and their import documentation have already been detained by Customs, which has notified dealers that the SHVS models will now be processed as non-hybrid vehicles for tax purposes. “We feel blindsided by this decision,” Eurojapan Motors said, estimating that the new duties will increase total vehicle prices by 35% or more. The company noted that the price hike harms not just dealers, but also consumers who have already placed deposits on affected vehicles and those that have already been shipped. One example cited by the firm: a vehicle previously priced at approximately $155,000 will now cost consumers around $215,000. Eurojapan Motors is calling for fair, transparent treatment and a transitional grace period for all vehicles already ordered or en route.

    Opposition political leaders have also joined calls for government accountability. Former prime minister Stuart Young has demanded the administration provide a full public explanation for the targeted new tax, while People’s National Movement deputy political leader Sanjiv Boodhu has questioned whether all importers will be treated equally under the new classification rules. Boodhu noted that the new SHVS duty is just the latest in a series of broad tax and fee increases that have driven up the cost of living for local consumers in recent months. Those increases include a doubling of duty on rum and spirits, a 100% rise in customs declaration fees and container examination charges, a doubling of the environmental tyre tax, a new 10% duty on luxury electric vehicles priced over $400,000, and a new 5% import tax on single-use plastics to fund recycling programs.

  • Public Sector Workers Trust Under Review After Audit Findings

    Public Sector Workers Trust Under Review After Audit Findings

    July 24, 2026

    Decades after retired public sector employees fought to secure a fund that holds money they claim the government has long owed them, the Public Sector Workers Trust is now under new scrutiny following a recent independent audit that has raised red flags about specific grant distributions and loans that were ultimately fully written off.

    Dean Flowers, president of the Public Service Union, has pushed back against calls to launch an investigation into the trust’s board of trustees, laying out a clear argument that administrative staff, rather than volunteer or appointed trustees, bear responsibility for the day-to-day financial management of the fund.

    In comments carried over from an evening television news broadcast, Flowers emphasized that the trust has a long-standing track record of publishing independently audited annual financial statements, which are made available to the public. Any public sector worker affected by the 1995 and 1997 salary increment freezes—who form the core group of beneficiaries of the fund—are free to review these documents and raise questions directly with the trust’s leadership, he noted.

    Flowers added that all past independent audits have been formally submitted to the courts for oversight, a process that he says already provides a layer of accountability for the trustees. He also pointed to a clear legal and operational separation of duties within the trust’s structure: trustees do not have access to bank accounts, nor do they have authority to sign checks for fund disbursements. All of these day-to-day financial tasks are handled exclusively by the trust’s administrative team, which includes the fund administrator, finance officer and accountant.

    While Flowers rejects the idea of investigating trustees, he acknowledged that if legitimate questions have been raised about how the fund is managed, scrutiny should be directed at the administrative personnel who hold direct control over financial operations. He also urged beneficiaries to engage actively with the trust, attend public meetings and hold leadership accountable to ensure the fund continues to operate in compliance with the Trust Act and its own governing trust deed.

    This report is a transcript of a televised evening news segment, with all translated text from Creole rendered using a standardized spelling system.

  • Energy CEO Says $73 Million to BEL is No Bailout

    Energy CEO Says $73 Million to BEL is No Bailout

    As Belize prepares to debate a controversial piece of energy sector legislation, a sharp public divide has emerged over whether the proposed $73 million injection into BEL, the country’s primary electricity provider, constitutes a responsible public investment or an unnecessary taxpayer-funded bailout. The BEL Investment Bill, scheduled to be tabled for formal consideration in Belize’s House of Representatives on August 31, 2026, has drawn pushback from political opposition, who argue the public funding amounts to a rescue package for a struggling private utility. But top energy sector officials reject that framing, emphasizing that the capital infusion is structured as an equity purchase of preferred shares, designed to stabilize the company’s finances and protect consumers from crippling rate hikes.

    Dr. Leroy Almendarez, CEO of Belize’s Ministry of Energy, Public Utilities and Logistics, laid out the government’s case for the legislation in a recent public briefing, explaining the structural financial pressures that have left BEL in need of external capital. Unlike many profit-driven private utilities, Almendarez clarified, BEL operates on a pass-through cost model: the company purchases electricity from a range of domestic and international suppliers, including Mexican imports, Hydro Belize, Santander, ASR, Hydro Maya, and the upcoming Babcol generation facility, and is supposed to pass those exact procurement costs directly to consumers without markup. However, regulatory caps enforced by the country’s Public Utilities Commission have prevented BEL from collecting the full cost of the power it distributes, leaving the company with a cumulative $73 million gap in its revenue.

    “If we allowed BEL to recover all of that uncollected revenue in a single year through rate adjustments, electricity costs for Belizean households and businesses would skyrocket overnight,” Almendarez explained. “Instead of forcing consumers to absorb that shock all at once, the government is stepping in to make a targeted equity investment that will bridge the financial gap while positioning public coffers to see future returns.”

    Almendarez pushed back on attempts to frame the funding as either a bailout or a consumer subsidy, noting that the capital is being exchanged for preferred shares in BEL, which guarantee the government priority dividend payouts if the company returns to stable profitability. When interviewer Shane Williams suggested the arrangement could be simplified as a subsidy to keep rates low, Almendarez corrected the characterization: “It’s not a subsidy — it’s an equity investment. We are acquiring an ownership stake that will deliver returns to taxpayers down the line, while avoiding immediate rate shock for working households.”

    Opposition lawmakers have continued to question the arrangement, arguing that it socializes losses for a regulated private utility while putting the full burden of the gap on public finances. The debate is set to intensify when the bill reaches the House of Representatives at the end of August, with stakeholders on both sides already positioning for what is expected to be a heated debate over the future of Belize’s electricity sector.