The world economy has entered a turbulent period where tariffs and major policy shifts have led to instability, British Virgin Islands Premier Natalio Wheatley warned Tuesday.
Wheatley said he was making changes to key economic government posts to safeguard the BVI economy, but global instability could not be completely counteracted.
“The impact of this turbulence will impact the Caribbean, including here in the Virgin Islands,” he said in a written announcement. “We are also currently assessing the potential impact of tariffs by major countries on our local economy and how we can mitigate their effects on families and businesses. These are strange and uncertain times, and we need all hands on deck to manage the global economic headwinds ahead of us.”
While external pressures from the United States and Europe have been blamed for wild swings in stock markets and other economic indicators, BVI and U.S. Virgin Islands relations have also been strained recently. Wheatley’s government appears close to enacting steep charter boat permit price increases that industry officials in both territories fear could stifle small, local businesses.
Gov. Albert Bryan Jr. responded with the threat of tariffs against the BVI. Both leaders have met recently to discuss possible solutions.
Within the BVI, Wheatley asked longtime Territorial At-Large Rep. Lorna Smith to rejoin the government team as minister of state for Financial Services and Economic Development. Smith, who had joined the opposition after being removed as deputy premier and government minister, had been executive director of BVI Finance from roughly 2002 to 2013.
Smith will be responsible for financial services, including domestic banking, economic diversification and investment promotion, and trade and investment, including shared responsibility for climate finance. The expansion of the Virgin Islands’ Small and Medium Sized Enterprises sector will also be within her remit. Additionally, Smith’s ministry will be responsible for business regulation, economic planning, and consumer affairs, Wheatley said.
“In addition, she will have direct oversight of the Financial Services Commission, the International Tax Authority, BVI Finance, and the Department of Trade and Investment Promotion, and Consumer Affairs, including the Virgin Islands Trade Commission,” the premier said.
Smith had accompanied Wheatley to Asia in February, where the BVI promoted its financial services industry in China and Malaysia through the Association of Southeast Asian Nations.
“Her invaluable support to me during the Asia mission and the international respect she commands in the field of financial services and among the business community clearly demonstrated that her experience would be best utilized as a member of the Government for the benefit of our economy and country at this time. I am personally pleased to have her back and to have her support,” Wheatley said.
