St Vincent’s leader of the Opposition, Ralph Gonsalves, said the U.S. government has advised the new government about CBI sales and a shift to China.
Gonsalves made the claims while making his contribution to the 2026 budget debate on Tuesday.
“The Americans told the NDP administration that while it is their sovereign decision to make, the United States would prefer if the government did not take specific actions regarding foreign relations and economic policy”.
Specifically, Gonsalves said the Americans advised the government that they prefer they do not switch diplomatic relations from Taiwan to China and engage in the selling of passports or Citizenship by Investment (CBI) programs.
Gonsalves stated that this advice was conveyed to the “highest levels of the St Vincent government”.
Gonsalves on Tuesday, spoke to the “security risks” and warned that these actions could destabilize the country’s financial system and damage relations with major international powers.
The Opposition leader argued that this policy is no longer viewed by Western powers as a management issue, but as a fundamental threat, noting that the United States, Britain, and Europe have indicated they are “fed up” with these programs and now view them as “inherently a security risk”.
Gonsalves compared CBI revenue to “cocaine,” warning that the nation will get “hooked” and suffer “withdrawal symptoms” when the money inevitably stops. He notes that revenue from CBI is already falling in other Caribbean nations, which creates a “balance of payments” crisis.
“A drop in foreign exchange from CBI could force the country to devalue its currency (altering the exchange rate from 2.70 to 1). This would lead to “inflation” and “flight of capital,” creating a spiral of economic hardship similar to what occurred in Jamaica”.
Regarding the switch from Taiwan to China, Gonsalves said the risks are primarily financial and diplomatic.
He described the reliance on Chinese financing as a “hook in your gill,” (the government) suggesting it creates a dependency that compromises the country’s sovereignty.
Gonsalves warned that loan agreements contain clauses regarding “material change in circumstances.” Switching diplomatic relations to China would trigger these clauses, causing creditors (specifically Taiwan) to “call for all the remaining portion of the principal debt and interest to be paid” immediately.
The Opposition leader characterised the attempt to court China while trying not to annoy the US President as “risky business, reckless business” that is possessed of grave consequences for St Vincent.