The Tribune

By FAY SIMMONS

TRIBUNE Business Reporter

jsimmons@tribunemedia.net

THE CENTRAL Bank’s governor yesterday said more research is needed to determine how the US imposition of a 12.5 percent tariff on Bahamian exports will affect this country's economy, identifying seafood exports as one of the sectors set to be most impacted.

John Rolle, speaking at the Central Bank's half-year economic review, said officials are still assessing the scope of the tariffs and which Bahamian exports will be most affected.

"The understanding of what's happening in the tariff space continues to be an area where more research is needed," said Mr Rolle. "If you follow some of the public dialogue, there has been an emphasis on what it would mean, for example, for seafood exports. That's one of those singular items we can identify."

The Governor noted that The Bahamas' role as a transshipment hub means the full impact of the tariffs will require closer examination.

"The Bahamas also has a lot of transshipment activity," said Mr Rolle. "If you read the US proclamation very carefully, you'll see there's some delineation separating what's happening in the transshipment space from direct exports.

"We need to drill down to identify the specific categories of commodities and goods being exported from The Bahamas. We know fisheries products are one of those, and it's probably one of the most concentrated export categories that people can point to."

The US imposed the 12.5 percent tariff on Bahamian goods this month after determining that this nation had failed to adequately prohibit imports produced using forced labour, although the measure was based on the country's import laws rather than labour practices within The Bahamas itself. 

The Davis administration has since sought an exemption for Bahamian crawfish and stone crab exports, arguing that the country's commercial fisheries do not employ forced labour and warning that the tariff comes just days before the opening of the crawfish season. 

Jomo Campbell, agriculture and marine resources minister, has also pledged to strengthen The Bahamas’ forced labour import regime in an effort to secure a lower tariff rate. 

The tariff has drawn concern from both government and industry representatives, who have warned it could increase costs for one of The Bahamas' most important export sectors. 

Opposition finance spokesman, Kwasi Thompson, has also urged the Government to continue pressing the US until the tariff is removed.