Untitled Document
Yesterday, US President Donald Trump took a sledgehammer to the world trade order when he imposed sweeping new tariffs on all imported goods and unveiled a list of reciprocal duties targeting more than 60 countries - including Belize. The president said there will be a "baseline" tariff of 10 percent on all imports.
This directly makes Belize's key exports to the US 10% more expensive - and today the Ministry of Foreign Affairs put out a statement saying, quote, "Our officials are currently and rapidly analyzing the information and will be consulting with the relevant stakeholders to ensure Belize's economic interests are safeguarded through bilateral dialogue with U.S. officials and coordination with CARICOM."
Minister of State for Finance Chris Coye was in that meeting and we spoke to him via zoom half an hour ago.
Chris Coye, Min. Of State - Finance
"We're trying to understand the full particulars. I should say that, we just had a meeting, convened a meeting, from many ministries of finance, Ministry of foreign affairs and foreign trade, Ministry of economic development. the central bank as well. Within foreign trade, you had the directorate general of foreign trade as well. Taking a whole of government approach to this, trying to get all the different perspectives when looking at the implications of the, the tariffs."
"Based on what was put out on the white House website, they have a flat 10% tariff for all countries."
"So what will this mean for the public first of all, because it comes into effect on the fifth?"
"So the 10% tariff is in effect the baseline tariff that would be applied to products that Belize, let's say, exports into the, into the US. So that's as we understand, there are certain exemptions. But more in relation to, petroleum items."
"But to the extent that they apply to our exports and especially our key exports, we have to look at how we go about mitigating the impact of those tariffs, and even then consider what opportunities may arise. It's, it's it's something that is relative. If if the baseline is applied across and to all countries, then relatively speaking, we are not in any worse off position so far as our exports are concerned."
"The key exports are what we are focusing in on. Belize's key exports to the US. They are what we are focusing in on and looking at what is the best approach, for, for those key exports? The approach might not be the same one export to the next. In the case of, of sugar, sugar being exported from Belize to the US, you have a quota. My understanding is that quota remains in place. So that's not affected. So there remains that, that, that trade that will continue for sugar. Plus you have, in effect, a related party exporting to another related party, to the US. So in the case of sugar we are having and those discussions with the, the, the key exporter in that in, in that case foreign trade is, is doing quite a bit of analysis and will have those engagements with our key exporters to the US to to appreciate what are their concerns and what advocacy they are looking forward to."
The tariffs are set to go into effect on April 5th but Coye says there is a lot of uncertainty because many countries will be negotiating with the US for a better deal.
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