- NEWSDAY.CO.TT - A la Une - 26/Jun 05:44

Caricom raises import tariffs on paints

CARIBBEAN leaders have agreed to raise import tariffs on paints and varnishes, a move aimed at shielding regional manufacturers from cheaper foreign competition and encouraging investment in local production. At its 60th regular meeting, the Caribbean Community (Caricom) Council for Trade and Economic Development (COTED) approved an increase in the common external tariff (CET) on paints and varnishes to 35 per cent, effective July 1. The decision was announced on June 24 and quickly welcomed by the Caricom Private Sector Organization (CPSO), a regional business advocacy group. The new tariff is intended to combat the impact of low-cost imports – mainly from outside the Caribbean – that industry leaders say have undercut local manufacturers, leading to job losses and stagnant investment. "This decision is a timely and necessary step to level the playing field for our regional producers," said Patrick Antoine, CEO of the CPSO. "It protects jobs, encourages local investment and sends a strong signal that Caricom is serious about industrial development." Caricom’s CET is a shared external tax on goods imported from outside the region, designed to protect industries within the Caricom Single Market and Economy (CSME). While it varies by product, the CET is a key tool for encouraging local production over foreign imports. Regional paint makers have long complained that foreign brands, sold at artificially low prices, were making it hard for them to compete. According to the CPSO, this price war has stalled growth in the sector and discouraged long-term investments. The tariff hike is expected to generate about $200 million in new investments in the region’s paints and coatings industry over the next three years. Manufacturers in Saint Lucia, Grenada, Suriname and Jamaica have already started expanding their operations, with a new facility opening in Jamaica earlier this year. The CET change is part of a larger push by Caricom to build up key industries and reduce reliance on foreign imports, especially as global trade becomes more volatile. The CPSO also pointed to recent US tariffs on Caribbean exports, which have added urgency to the region’s focus on trade defence. Still, Antoine warned that more work needs to be done. Only three Caricom nations currently have trade defence bodies capable of addressing unfair practices like dumping – where goods are sold below cost to capture market share. He urged the creation of a regional mechanism to handle such cases collectively. The CPSO praised the role of Barbadian Foreign Minister Kerrie Symmonds, who chaired the COTED meeting, for his "visionary leadership." The tariff adjustment was the result of collaboration between manufacturers in both small and large Caribbean nations. "This started with some of our smallest paint producers," said Antoine. "It shows the power of co-operation in Caricom when we focus on evidence, strategy and shared goals." The paint tariff marks the latest move in a broader Caricom industrial policy aimed at strengthening regional production chains. Leaders hope it will pave the way for similar protections for other vulnerable industries. Formed to give the private sector a stronger voice in regional integration, the CPSO supports small and large businesses across the Caribbean. It plays a key role in advising on trade policy, especially within the CSME. The post Caricom raises import tariffs on paints appeared first on Trinidad and Tobago Newsday.