BRIDGETOWN, Barbados – Caribbean rum producing countries may have to approach the World Trade Organisation (WTO) in its ongoing dispute with the United State over the provision of subsidies to rum producers in Puerto Rico and the US Virgin Islands (USVI).

“We find that extremely difficult to compete (with) and it is a challenge at this point in time and we are appealing, not just the Barbados rum industry, but the CARIFORUM (Caribbean Forum) rum industry in general, to our governments to take this issue very seriously,” said Chairman of the Barbados Rum Committee, Frank Ward.

He said the discussions with Washington should be with a “view to resolving what we feel is an iniquitous and pernicious use of subsidies for multinational spirit companies and their rum production”.

The West Indies Rum & Spirits Producers Association (WIRSPA) says that while it has no dispute with rum producers in the US it is nonetheless warning that subsidies given to US-based producers could damage Caribbean economies.

WIRSPA said that it has been brought to its attention of a possible trade dispute at WTO between CARIFORUM countries and the US over the compatibility of subsidies given to multinational spirits companies producing rum in the USVI and Puerto Rico under the US cover-over programme.

But WIRSPA, which describes itself as “the regional trade association for rum producers in the CARIFORUM group” said that the dispute is between the governments of these independent Caribbean countries and the US and not between rum producers.

Ward told reporters that the subsidies for rum industries in the US territories were severely impacting Barbados’ own industry’s ability to thrive and survive. 

He warned that if the situation is not dealt with immediately it could result in the demise of the rum industry not just in Barbados, but throughout the Caribbean.

 “We have had so far three legal opinions of the legality at the WTO of these subsidies which are being given by US territories and all of them stated that there is a case to be made against the subsidies, and one of the opinions came from the advisory centre on WTO law which is a body set up to advise individual countries on issues related to WTO laws.

“So we have a clear case there. We now need the political will to take it forward and time is not on the side of the industry,” Ward said.