Smith Suspends Virgin Islands Trade Commission
Junior Minister Lorna Smith moved to suspend the Virgin Islands Trade Commission, citing an internal review that found the body financially unsustainable and overly bureaucratic. The suspensory act halts implementation while the Ministry resumes direct responsibility for trade, consumer affairs and investment promotion.
ROAD TOWN, Tortola — Junior Minister for Financial Services and Economic Development Lorna Smith has introduced legislation to pause the rollout of the Virgin Islands Trade Commission, saying the statutory body was not ready to operate and would place undue financial strain on the territory.
The Virgin Islands Trade Commission (Suspensory) Act, 2023 stops implementation of the Trade Commission created by the Virgin Islands Trade Commission Act, 2020. The original legislation came into force in November 2022, and a board was appointed in May 2023, but Smith told the House of Assembly an internal review raised “serious concerns” about viability, staffing and projected costs.
According to the minister, government projections estimate the Commission would cost about $1.5 million a year to run and would have required a substantial increase in trade licensing fees to reach financial independence. Smith warned that those higher costs could have been passed on to businesses and consumers at a time when many small enterprises are already under pressure.
Smith said she first began to question the wisdom of implementing the Commission when she attended a board orientation on May 15, 2023, nearly six months after the Act took effect. She also criticised the transition process for Trade Department staff, saying employees were asked to decide whether to transfer into the Commission before it had the systems and infrastructure to operate independently.
Under the suspensory approach, the Ministry of Financial Services, Labour and Trade has resumed direct responsibility for trade policy, consumer protection and investment promotion. Smith stressed the government has not repealed the Trade Commission Act and that key objectives — modernising trade regulation, strengthening consumer protections and boosting investment promotion — remain priorities.
The decision has prompted mixed reaction locally. Supporters welcomed the pause as a check on unnecessary government expansion and duplication of services. Critics argued the move delays long-promised reforms to update trade oversight and better protect consumers. Premier Natalio Wheatley signalled support for reassessing the Commission’s structure, saying he still endorses the concept but agrees implementation needs reconsideration.
Government officials say a broader review of the Trade Department’s operations and long-term structure is ongoing as alternative approaches to trade administration and investment policy are considered for the Virgin Islands.
Primary source: Guavaberry