Barbados Consumer Group Criticizes Government's Customs Valuation Measure Impact on Consumers

The Barbados Consumer Empowerment Network (BCEN) has voiced concern over the Government’s proposed reintroduction of customs valuation measures aimed at easing freight costs for commercial importers.

It warned that the move might bypass ordinary Barbadians unless consumer safeguards were implemented.

Head of the BCEN, Maureen Holder, responded to Prime Minister Mia Amor Mottley’s recent comments on the rising cost of freight due to potential United States trade penalties on Chinesebuilt ships. While acknowledging the Prime Minister’s “empathy for consumers” and her willingness to act in the face of global trade volatility, Holder cautioned that the Government’s response risked favouring businesses over families.

Criticism

The crux of BCEN’s criticism lies in the administration’s decision to freeze freight values at December 2019 levels when calculating import duties – a measure that was originally introduced during the COVID-19 pandemic. Holder described it as a temporary palliative that did not “address the root causes of rising freight costs or the region’s over-dependence on a limited number of shipping lines”.

“Why is a policy that once protected vulnerable families now being used to relieve commercial importers?” Holder asked, referencing a similar exemption under Article 8.2 of the World Trade Organisation (WTO) Customs Valuation Agreement. That 2017 policy, enacted under the Democratic Labour Party administration, allowed for the exclusion of freight charges when calculating duties on personal imports. It was removed shortly after.

Holder noted that the policy shift raised “serious equity concerns”, and argued that duty relief for businesses does not necessarily translate to lower prices for consumers. She cited the removal of the controversial National Social Responsibility Levy (NSRL) in 2018 as a prime example.

“There was widespread expectation that businesses would pass on the cost savings to consumers. It never happened,” she said. “Prices remained largely the same.”

According to BCEN, unless the Government institutes a robust system to monitor and enforce price adjustments, consumers may once again be left out of the benefit loop.

While the Prime Minister also outlined plans to maintain duty exemptions on critical imported goods such as food and hygiene products, Holder argued that the Government was missing a crucial opportunity to shift Barbados toward greater self-reliance.

“The policy still reinforces import dependence, rather than seizing the opportunity to build resilience through

domestic or regional production,” she said.

The consumer rights body also took aim at what it described as a lack of strategic foresight in the administration’s broader trade and logistics policy. Although Mottley signalled possible diversification of trade routes and discussions with US officials, BCEN said such measures were tactical and not structural.

“True economic security requires investment in regional shipping alternatives, bulk procurement, inter-island trade and support for regional transport companies,” Holder argued, urging Barbados to lead a coordinated CARICOM response. She questioned the absence of regional institutions like the Caribbean Community’s CSME, CROSQ and CARPHA in the current policy discourse.

Scepticism

The BCEN also expressed scepticism about relying on the private sector to manage supply chain diversification.

“We do not believe it is wise leaving such decisions in the hands of a largely profit-driven, foreign-owned private sector,” Holder stated. She called instead for Government-brokered sourcing agreements and freight pooling with regions such as Latin America, Africa, and Asia.

While giving the Prime Minister credit for acting pre-emptively, Holder said the measures fell short of building long-term shipping resilience and economic independence.

“This moment requires proactive, people-centred policies,” she said. “We cannot afford a system that privileges commercial players while leaving consumers to face unchecked price increases.”

BCEN called on the Government to ensure that any freight-related cost savings were transparently tracked and directly benefited consumers. (CLM)