Legal News

Caribbean Makers of Rum Being Beaten by U.S. Subsidies
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

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.

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.

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!!


Interesting Legal Sites You May Like




Search Now

Mid-level Tax Associate Attorney

USA-CA-Los Angeles

Los Angeles office of an AmLaw firm seeks mid-level tax associate attorney with 3-5 years of experie...

Apply Now

Real Estate/Transactional Attorney

USA-PA-Camp Hill

Camp Hill office of our client seeks real estate/transactional attorney with experience. The candida...

Apply Now

Corporate Attorney


Laramie office of our client seeks corporate attorney with 2+ years of experience.

Apply Now


Legal Assistant / Paralegal


Tavares boutique and growing law firm is looking for a full-time legal assistant / paralegal to work...

Apply now

Litigation Associate Attorney

USA-CA-San Francisco

Andrus Anderson LLP is a plaintiffs’ firm in San Francisco looking for a full-time associate w...

Apply now

Maine Litigation Attorney


Busy New England business law firm seeks Maine Litigation Attorney based in our Portland, Maine offi...

Apply now

Maine Foreclosure Attorney Operations Manager


Bendett & McHugh is looking for a strong Foreclosure Attorney Operations Manager for our Maine Forec...

Apply now


To Top