Economist Calls for CARICOM Unity on US Surcharge Move

A local economist is warning that the United States’ proposed import surcharge at the World Trade Organization (WTO) could deepen trade disruptions for smaller economies like Belize, while underscoring the need for CARICOM countries to respond with a unified voice.

Dr. Phillip Castillo said he sees little logic in the US claim that the surcharge is necessary because of balance-of-payments difficulties, particularly given the dominant global role of the US dollar.

In comments to The Reporter, Castillo noted that Belize already runs a visible trade deficit with the United States, meaning Belize imports more goods from the US than it exports there. As a result, any additional surcharge on Belizean exports would effectively represent another barrier against the country’s already limited exports to the American market.

Castillo argued that the issue highlights the importance of regional coordination through organizations such as CARICOM.

He stated that countries like Belize would have greater leverage if CARICOM states spoke collectively rather than individually when responding to measures imposed by larger economies.

The economist also questioned the broader credibility of the US approach, noting that Washington had previously imposed tariffs on numerous countries without first consulting the WTO. He suggested that the current application to the WTO appears aimed at giving the proposed surcharge a degree of international legitimacy after earlier unilateral trade actions.

The United States recently notified the WTO that it intends to impose a 10 percent import surcharge under Section 122 of the US Trade Act of 1974, arguing that the measure is necessary to address balance-of-payments deficits. WTO members are expected to enter consultations with Wash-ington on the matter in the coming weeks.

Castillo maintained that, despite concerns over the US position, the WTO consultation process still provides smaller economies with an opportunity to collectively voice opposition and potentially influence the direction of American trade policy.

He warned that if the United States does not alter course, the result could be further disruptions in global trade and additional economic fallout for smaller and more vulnerable economies such as Belize.

The proposed surcharge comes amid broader global economic uncertainty, including rising oil prices linked to the widening US-Israeli-Iran conflict and continued tensions surrounding global tariffs and supply chains.