Santa Cruz de Tenerife 25 Feb. (Europa Press) –
The Vice President and Minister of Economy of the Government of the Canary Islands, Manuel Domínguez, acknowledged on Tuesday that the anticipated rise in tariffs by the United States could “eradicate” the commercial possibilities for agricultural goods from the islands, particularly wine and cheese.
In response to a question from ASG during the Parliamentary Plenary control session, he remarked that the new tariff policy initiated by President Trump denotes a “loss of competitiveness” for enterprises on the islands, as the cost structure will be “unbearable” for confronting the “new taxes” that may be implemented in the United States.
He further stated that the United States’s choice to withdraw from the OECD agreement, which aimed at establishing a minimum global tax rate of 15%, may impact the Canary Islands’ attractiveness as a hub for the establishment of certain business headquarters, turning the North American nation into a “formidable competitor.”
Nonetheless, he has stressed the government’s “concern” regarding a tariff policy that could hinder the internationalisation strategy of Canary Islands businesses, thus remaining “hopeful” about the actions the EU might undertake.
ASG’s spokesperson, Casimiro Curbelo, cautioned against Trump’s attempts to “destabilise” the global economy with a “chainsaw” approach, believing that countries in Africa or elsewhere are treated like “colonies”, an assertion he deemed “disproportionate.”
He illustrated this point with the example of eliminating development aid to the poorest nations in Africa, highlighting that this represents 47% of over 8,000 million euros, resulting in “more than 10,000 workers falling into unemployment.”
He also declared it “outrageous” to pursue peace in Ukraine without engaging essential interlocutors, pointing out that the new tariff policy would have repercussions for the Canary Islands due to “increased prices for products intended for export and import,” which will eventually lead to “inflation, diminished purchasing power, and insecurity in investments within the Canary Islands.”
Curbelo urged the vice president to “not retreat a step” as Europe and Spain “must stand strong at this juncture.”
