Leader of the Opposition in St Vincent and the Grenadines, Ralph Gonsalves, has claimed that the United States has advised the new administration against introducing a Citizenship by Investment (CBI) programme and switching diplomatic relations from Taiwan to China.
Gonsalves made the statement on Tuesday during his contribution to the 2026 Budget Debate in Parliament.
According to the Opposition Leader, U.S. officials informed senior members of the government that while foreign and economic policy decisions remain a sovereign matter, Washington would prefer that St Vincent and the Grenadines avoid certain actions.
He said the advice was delivered to the “highest levels” of government and focused on discouraging the sale of passports through CBI programmes and any move to sever diplomatic ties with Taiwan in favour of China.
Gonsalves warned that both policies pose serious security and economic risks. He argued that Western governments no longer see CBI programmes as mere management issues, but as fundamental security threats.
He claimed that the United States, Britain and European partners have become increasingly dissatisfied with such programmes and now view them as “inherently a security risk.”
The Opposition Leader compared CBI revenue to “cocaine,” warning that countries become dependent on the income and suffer severe consequences when it declines. He noted that revenue from similar programmes has already begun to fall in some Caribbean nations, contributing to balance-of-payments difficulties.
Gonsalves cautioned that a sharp decline in foreign exchange earnings could destabilise the country’s financial system. He suggested that in extreme circumstances, the government might be forced to adjust the long-standing EC dollar exchange rate of EC$2.70 to US$1.
Such a move, he said, could fuel inflation, encourage capital flight and deepen economic hardship. He pointed to Jamaica’s past financial struggles as an example of how currency pressures can affect national stability.
On the issue of diplomatic relations, Gonsalves said the risks of switching from Taiwan to China are largely financial and diplomatic. He warned that loan agreements with Taiwan may include “material change in circumstances” clauses that could be triggered by a diplomatic shift.
If activated, he said, these clauses could allow creditors to demand immediate repayment of outstanding principal and interest.
He also cautioned against growing reliance on Chinese financing, describing it as a “hook in your gill” that could lead to dependency and compromise national sovereignty.
Gonsalves characterised attempts to strengthen relations with China while maintaining favour with the United States as “risky business” and “reckless business” with potentially grave consequences for St Vincent and the Grenadines.
Government officials have not yet publicly responded to the claims made during the Budget Debate.
