The BVI Chamber of Commerce is warning that local businesses are scaling back operations and some could close altogether as soaring import costs deepen the pressure on the Territory’s economy.
With the Government’s temporary business and cost-of-living relief measures set to expire Friday July 31, the Chamber is calling for them to be extended until December 31, 2026.
According to the Chamber, economic conditions have worsened significantly since the measures were introduced, with importers reporting increases of between 30 and 40 per cent in logistics and landed costs.
Rising global oil prices, geopolitical tensions, shipping-route disruptions, higher freight and marine insurance costs and continued supply-chain instability have driven up the cost of bringing goods into the Territory.
The Chamber said delivery times have also lengthened, while access to some essential products has become increasingly difficult.
These pressures are being felt across multiple sectors, with businesses forced to reduce operations and others facing the possibility of shutting their doors.
“The business community appreciates that Government has been listening and engaging with us throughout this process,” Chamber Chairman Sinclair Flemming Jr. stated.
“We are encouraged by the ongoing discussions with the Ministry of Finance and Honourable Lorna Smith as we collectively work towards a practical solution that protects businesses, consumers and the wider economy.”
The Chamber has formally recommended extending the relief measures through December, with reviews every three months to allow the Government to respond to changing global conditions.
It is also seeking protection for qualifying goods already ordered or in transit if an extension is approved after the July 31 deadline. The Chamber argued that businesses made many of those purchasing decisions weeks or months in advance and should not be denied relief because of their arrival date.
Flemming said the Chamber will continue providing the Government with information to support an informed decision before the relief expires.
“Our shared objective is to protect jobs, maintain access to essential goods, stabilise prices and preserve confidence in the Virgin Islands economy,” he stated.
With the Government’s temporary business and cost-of-living relief measures set to expire Friday July 31, the Chamber is calling for them to be extended until December 31, 2026.
According to the Chamber, economic conditions have worsened significantly since the measures were introduced, with importers reporting increases of between 30 and 40 per cent in logistics and landed costs.
Rising global oil prices, geopolitical tensions, shipping-route disruptions, higher freight and marine insurance costs and continued supply-chain instability have driven up the cost of bringing goods into the Territory.
The Chamber said delivery times have also lengthened, while access to some essential products has become increasingly difficult.
These pressures are being felt across multiple sectors, with businesses forced to reduce operations and others facing the possibility of shutting their doors.
“The business community appreciates that Government has been listening and engaging with us throughout this process,” Chamber Chairman Sinclair Flemming Jr. stated.
“We are encouraged by the ongoing discussions with the Ministry of Finance and Honourable Lorna Smith as we collectively work towards a practical solution that protects businesses, consumers and the wider economy.”
The Chamber has formally recommended extending the relief measures through December, with reviews every three months to allow the Government to respond to changing global conditions.
It is also seeking protection for qualifying goods already ordered or in transit if an extension is approved after the July 31 deadline. The Chamber argued that businesses made many of those purchasing decisions weeks or months in advance and should not be denied relief because of their arrival date.
Flemming said the Chamber will continue providing the Government with information to support an informed decision before the relief expires.
“Our shared objective is to protect jobs, maintain access to essential goods, stabilise prices and preserve confidence in the Virgin Islands economy,” he stated.
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