Sale of East Hampton Mansion Ignites Legal Battle
Sale of East Hampton Mansion Ignites Legal Battle
ExxonMobil Accused of Unlawful Discrimination in Hiring by LGBT Rights Group
ExxonMobil Accused of Unlawful Discrimination in Hiring by LGBT Rights...
Award Issued Against RJ Reynolds Unlikely to Stand
Award Issued Against RJ Reynolds Unlikely to Stand
GM Facing Tough Scrutiny from Senators Investigating Recall
GM Facing Tough Scrutiny from Senators Investigating Recall
Job Listings

Caribbean Makers of Rum Being Beaten by U.S. Subsidies

Producers of rum in countries such as Guyana, Antigua and Jamaica are claiming they are taking unfair hits from trade and marketing advantages given to beverage corporations that operate globally and in U.S. territories. The countries also claim that rum subsidies in the U.S. might push some popular Caribbean rums labels out of business.

“The amounts that are being doled out now are staggering,” said Frank Ward, chairman of the West Indies Rum & Spirits Producers’ Association. “We were able to live with the level of U.S. subsidies as they once were. But the massive increases, we believe, have skewed the market.”

Caribbean countries use rum to generate $500 million in foreign exchange and over $250 million in tax revenue. When liquor is sold in the United States, the subsidies come from the money raised through tax placed on that liquor. Almost 100 percent of the money made by the sale of the rum is deposited into treasuries for the U.S. Virgin Islands and Puerto Rico.

“Our Caribbean distilleries need to export rum in order to survive. But bigger subsidies in the U.S. islands means we don’t get a level playing field for our exports, and it’s going to affect both small and large producers here,” said Anthony Bento, managing director of the Antigua company that makes English Harbour Rum.



Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!


As of now, there have not been any governments from the Caribbean willing to challenge the United States on its subsidies. If a government wants to challenge the United States it would have to do so with a WTO complaint.

Did you like this? Share it:
Caribbean Makers of Rum Being Beaten by U.S. Subsidies by

Tagged: , , ,

Posted by on September 10, 2012. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Job of the Day
Litigation Attorney
USA-CO-Denver

A highly regarded law firm is searching for a Litigation Attorney.  Candidates should have at least 6 years of general commercial litigation experience. Must be able to handle your own casel...