Charter Boat Trade War: USVI Objects to BVI Fees

M.A. Dworkin

USVI - In a tense, escalating economic dispute, being described as a Charter Boat Trade War, that has now reached the U.S. White House and Congress, Governor Albert Bryan Jt. and members of the 36th Legislature of the Virgin Islands met to discuss the hot topic of the recent outrageous increase of fees imposed by the British Virgin Islands on cargo and trade entering from the U.S. Virgin Islands. 

Government House officials said the fees function as an unreasonable and disproportionate trade barrier that increases costs for residents, and places local businesses at a competitive disadvantage. 

Legislators expressed support for a firm response, including consideration of implementing reciprocal fees for BVI-based vessels operating in USVI waters, and other economic measures. 

The Governor emphasized that the Administration is coordinating with federal partners and has engaged the U.S. Department of Commerce and other federal agencies to address the matter through appropriate trade and diplomatic channels. 

“This is not just a territorial concern. It is a federal trade matter,” Governor Bryan stated. “We have formally engaged our partners at the Department of Commerce to ensure these actions receive the scrutiny they deserve and are corrected through proper federal processes.”

During the meeting, officials referenced a recently completed trade report documenting the economic impacts of the BVI fees and elevating the issue for federal review. The report outlines how the fees operate as a non-tariff trade barrier and provides an analytical basis for federal engagement and potential corrective action. Officials also discussed local options that may be pursued in response.

The BVI implemented severe fee hikes on USVI commercial vessels effective 

June 1, 2025, through the Commercial Recreational Vessel Licensing Act, increasing annual unlimited access fees from $800 to $24,000 and daily fees from $200 to $8,500. These hikes affect water taxis, charter boats, and cargo. Term Charter Rates now carry a base fee of $7,500 which covers up to seven entries, with additional costs for further visits. 

Customary customs, cruising, and environmental fees (approximately $900-$1,200+ per entry) remain in place, compounding the impact. 

These charges have been described as a 4,000% increase on foreign charter vessels, prompting deep concerns about the viability of the USVI marine tourism sector, an industry that supports up to 5,000 jobs and approximately $166 million in economic activity.

BVI officials argue their rates reflect a long-overdue update on fees previously charged. 

In what amounts to a trade war between the two otherwise friendly territories, there has been a great deal of negotiating and posturing on both sides of the Sir Francis Drake Channel by the BVI and USVI, including a USVI delegation that has sought federal intervention. But, as of this date there has been little change in the BVI policy. Three USVI charter companies have already jumped ship and gone over to do their business in the BVIs.

The USVI and BVI are part of the same archipelago, located between the Caribbean Sea and the Atlantic Ocean.

“As a territory, the USVI cannot negotiate international maritime access,” Governor Bryan wrote in a letter to President Trump. “Because the BVI is a United Kingdom Overseas Territory, this is an international matter - and one that requires the full weight of the federal government to resolve.”

Myron Wade, leader of His Majesty’s Loyal Opposition is calling for officials from both sides to discuss the increases in BVI charter fees. 

“Regardless of who is right, or who is wrong, let us get a grip on this thing before it gets out of hand,” Mr. Wade stated. “We may get a level of intervention that we don’t want.”

Governor Bryan has continued to handle the potentially explosive matter in a diplomatic fashion.  

“Let me be clear: we respect the BVIs authority to regulate its waters,” Bryan stated in his letter. “But this is not cost recovery, this is economic exclusion. And the result is U.S. based companies being pushed out of a U.S. Territory and into a foreign jurisdiction.”