Markets

Stuart: Barbados, US in “High-Level” Talks on Rum Subsidies

By: Caribbean Journal Staff - January 18, 2013

Above: the Mount Gay Distillery in Barbados (CJ Photo)

By the Caribbean Journal staff

Barbados, other CARICOM states and the Dominican Republic are currently engaged in “high-level” talks with United States officials on the issue of rum subsidies, according to Barbados Prime Minister Freundel Stuart.

Stuart was speaking at an opening ceremony for Mount Gay Distilleries’ New Aging Bond in St Lucy this week.

The Prime Minister said the talks were necessary, with the Caribbean concerned over what it sees as subsidies given to rum producers in the US Virgin Islands and Puerto Rico that are “to the disadvantage” of Caribbean producers.

“The government of Barbados has had to take a stand on this issue, and under my instructions, the Ministry of Foreign Affairs and Foreign Trade communicated with the US government on this issue,” he said. “We are not going to relax our persistence on this issue — we do not intend to allow rum producers in the Caribbean to be so severely damaged by this market distortion which has resulted from these overwhelming, if I may use that word, subsidies being extended to producers in the US Virgin Islands and Puerto Rico.”

The issue concerns the “Rum Cover Over” programme that means that any excise tax collected on rum imported to the US is transferred to the treasuries of the USVI and Puerto Rico.

The Caribbean has argued that the territories have been using the funds to attract companies to produce rum there.

Stuart said last year that the Caribbean could take the issue to the WTO.

In an Op-Ed in Caribbean Journal last month, US Virgin Islands Delegate to Congress Donna Christensen defended the programme, calling it “smart, autonomous economic development policy.”

Christensen warned the Caribbean against bringing the issue to the WTO, calling it “not in the best interest of the Caribbean.”

She also said that rum imports from the Caribbean had actually grown in recent years.

Popular Posts w punta cana

A New All-Inclusive W Hotel Is Opening This Year in Punta Cana 

The first-ever all-inclusive W Hotel in the Caribbean is opening this year in Punta Cana, Dominican Republic, Caribbean Journal has learned.  The hotel, part of a broad expansion for parent company Marriott International, is on the list of expected 2024 […]


Why Grenada Is a New Caribbean Luxury Hotspot

beach house silversands

From its world-renowned chocolate to its pristine beaches to a region-leading focus on sustainability, Grenada is as fascinating and unique as destination as you’ll find in the Caribbean.  But in the last few years, the lush Eastern Caribberan island has […]


5 Adults-Only Resorts to Visit Right Now in the Caribbean 

galley bay

Sometimes you just want that extra degree of serenity, of privacy, of seclusion. There is a reason, after all, that adults-only resorts are booming in popularity, particularly in the Caribbean: travelers want to know that when they arrive, they know […]


Related Posts s hotel jamaica

This Airline Is Launching Jamaica-Barbados Flights

Fast-growing regional carrier interCaribbean is adding a major new nonstop route next month: scheduled service between Barbados and Kingston, Jamaica.  InterCaribbean, which is based in Turks and Caicos, has been steadily adding to its regional network in the last year, […]


The 25 Best Caribbean Beach Bars for 2024

carbet beach

What is the first thing you want to do after you land at an airport in the Caribbean? For many, it’s a pretty simple answer. Make your way, by car or boat, to your sandy chair, cocktail in hand, at […]


The Best Caribbean Islands to Visit in 2024, From Tiny Beach Towns to Hidden Gems

grenada best caribbean islands to visit

Maybe you’ve been to the Caribbean a dozen times. Maybe you’re planning your first Caribbean vacation. The Caribbean continues to reinvent itself, to rewrite its story. The Caribbean just keeps getting better. As the region comes off what was a […]


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