A trade policy is being finalized that will lay the platform for how the Government of the Virgin Islands conduct trade and business relations in the future. The policy has already been prepared with input from various agencies including the Department of Trade and Consumer Affairs.

Permanent Secretary within the Office of the Premier, Rosalie Adams said last week that the policy is being reviewed by Premier and Minister for Finance, Ralph T. O’Neal. Adams added that following the Premier’s review, the draft document would then be taken to Cabinet for approval before the public can have their say.

However, there are calls being made for Government to ensure that any trade policy is geared towards protectionism for local businesses. Some concerns have been expressed that safeguarding local businesses may land the Territory in hot water with the World Trade Organisation (WTO) and Organisation for Economic Co-operation and Development (OECD).

“I personally have a simple philosophy and that is economic opportunities that are developed in the Virgin Islands should be preserved for the people of the Virgin Islands and that I am hoping that whatever new policy is being developed will look at that principle and take into consideration for a larger extent,” said Edju En Ka, a local commentator and businessman in the jewelry industry.

Edju En Ka urged that the Territory should not accept that nothing can be done, particularly in light of the fact that only a few months ago the European Union raised tariffs on imported Chinese shoes to protect the local industry from the adverse effect of the foreign brand. He also spoke of the United States providing subsidies for its farmers to the point where very few other countries in the world can compete with US farm exports. This was also the case when the US imposed increased tariffs on Chinese steel that threatened its local steel industry.

“While these big players are telling us that we can’t protect our local businesses for our people, they are busy preserving their markets for their people and subsidise their businesses in order for them to be competitive globally so it is a double standard that we must not accept at any cost,” Edju En Ka told StandPoint.

I am hoping that they would have discussion with this new policy development, but I think that Government needs to show vision and courage in the development of any policy with regards to the people of the Territory.

Cost factor

Questionned about the benefits of competition to consumers, Edju En Ka noted that a major multinational conglomerate is able to buy inputs at a far cheaper price because a manufacturer will offer a better price to any customer who is demanding more.

He said he is concerned that a major foreign business is able to enter the market with a large amount of money, a large diverse inventory and a marketing programme that reaches the market five to 10 times a day.

“I am not against competition…I don’t care if a million local businesses go into business and each of them compete …you cannot allow a major multinational conglomerate and gobble up the market share of your small businesses and drive you people to become wage labourers sand consumers,” Edju En Ka stated.

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