Markets

CARICOM: “Serious Concerns” About Threat to Caribbean Rum in the US

By: Caribbean Journal Staff - December 13, 2012

Above: the St Nicholas Abbey rum company in Barbados (CJ Photo)

By the Caribbean Journal staff

The Caribbean Community is increasingly concerned about what it calls a “threat to the competitiveness of Caribbean rum in the United States” due to subsidies provided by Puerto Rico and the US Virgin Islands to multinational rum producers, CARICOM’s Council for Trade and Economic Development said in a statement this week.

“The nature and scale of these subsidies are such that they threaten to distort rum markets not only in the US but elsewhere,” COTED said in the statement, underlining that “rum production and export are critical to the social and economic well-being of the region.”

The council said it called on the United States to engage with Caribbean rum-producing countries to achieve an outcome that would “support the continued competitive access for Caribbean rum to the US market.”

“Time is not on the side of the Caribbean rum industry,” COTED said. “Given the likely deleterious effect of these subsidies on the long-term viability of an industry which is of such critical importance to the economic fabric of so many countries in the region, the COTED supports strongly the deep commitment of CARICOM countries to pursuing all avenues available to secure a resolution of this matter that restores the competitive balance in the marketplace.”

The “rum cover over” in the US means that any excise tax collected on rum imported to the United States is transferred to the treasuries of the US Virgin Islands and Puerto Rico.

Critics have alleged that the two territories have been using those funds to attract companies to produce rum in Puerto Rico and the US Virgin Islands.

Popular Posts cape santa maria

From Anguilla to Aruba, the Best Caribbean Beaches to Visit This Summer

Forget the Hamptons, forget Santorini. And Florida? There’s a reason snowbirds go home in the summer. If you’re looking for a summertime beach getaway, the Caribbean is it. The water is deliciously warm, the trade winds keep you cool and […]


From Belize to Grenada, 10 Little Caribbean Beach Resorts to Visit Right Now 

karibuni

There are different resorts for different vacations, different tastes, different moods. For some, there’s something delicious about a pint-sized, tiny Caribbean resort, where the emphasis is on the intimate, the serene. Where the soundtrack isn’t a piped-in DJ set, but […]


Southwest Airlines Is Starting New Flights to Turks and Caicos, Cayman and The Bahamas 

beach at palms resort with umbrellas

Orlando has become an increasingly important source market for Caribbean travel in recent years, with carriers like Spirit and JetBlue adding new routes to the region to destinations like Cancun, Punta Cana and Puerto Rico.  Now, another carrier has is […]


Related Posts maracas beach in trinidad

Frontier Airlines Is Adding Another Caribbean Island: Trinidad

For years, Caribbean regional aviation has been a constant struggle. Intra-regional carriers have come and gone, from the old American Eagle to LIAT. But now an unlikely candidate is starting to fill the void: Frontier.  The American carrier has quietly […]


Caribbean Airlines Is Adding a New Island: Puerto Rico   

the beach at the caribe hilton

The intra-regional airline market in the Caribbean is starting to heat up, and the focus is clearly on San Juan, Puerto Rico as more and more carriers set their sights on the city. Fresh off Frontier Airlines’ major expansion out […]


Hilton Has a New Hotel in Puerto Rico 

hotel condado

Hilton has quietly opened a new hotel in Puerto Rico, Caribbean Journal has learned.  The company has debuted a new Hilton Garden Inn in San Juan’s vibrant Condado district.  The hotel, which has a total of 240 rooms, is set […]


SUBSCRIBE!

Sign up for Caribbean Journal's free newsletter for a daily dose of beaches, hotels, rum and the best Caribbean travel information on the net.


No. Thank You