The Barbados Government is not turning a blind eye to the problems facing the rum industry, says Prime Minister Freundel Stuart.
“We have communicated with the Americans on this when the Assistant Secretary of State [For Western Hemisphere Affairs Roberta Jacobson] was here recently; she met with me and we discussed it at length. The Ambassador to Washington . . . John Beale, met with me recently along with the CARICOM Ambassador [Robert Morris] and we discussed it at length,” he said.
“We have [also] been in touch with the Ambassador for Geneva, Dr Marion Williams, and COTED, the Council for Trade and Economic Development, met last Friday in Guyana and discussed at length the subsidies being paid to rum producers in Puerto Rico and the US Virgin Islands.”
Stuart pointed out that the issue was a CARIFORUM [Caribbean Forum] one as the Dominican Republic was also involved and, if a solution was not found, would become a World Trade Organization matter. However, Stuart said they were awaiting the results of meetings before taking any action.
“We are awaiting the outcome of a Geneva meeting at which we have an opportunity to make some representation and we will see what kind of responses we get,” he explained. “We didn’t want to go too public on the issue until COTED met and, of course, until [we know] what comes out of the Geneva meeting.”
Stuart was addressing the media yesterday after a tour of Foursquare Rum Distilleries in St Philip. He said the issue was one in which Government was actively engaged as the local rum industry was “too important”, adding that Barbados stood to be hit the hardest should a resolution not be found.
“I don’t think any other CARICOM country has any reason to be as concerned about this issue as Barbados . . . so this is a front burner issue for us and we will be following it very closely,” he said.
The issue stems from the United States’ offer of large subsidies to rum producers in American territories, a move which allows the companies to manufacture and sell their products for far less than liquor from Caribbean Community producers.
Sir David Seale, the chairman of R L Seale, which is the parent company of Foursquare, said the subsidies would “decimate” exports of white rum.
“We don’t have much of a market for bulk white rum, which is the one under total attack. The long and short of it is, it will certainly decimate the Caribbean distilleries in the bulk white rum market, so I’m pleased to know of the progress taking place,” he said.
Sir David said his rum exports were “skyrocketing” and earning more foreign exchange every day. He said Government also received a lot of tax dollars – $24 million a year – from the industry.
Sir David said 2012 had been “excellent”, adding the industry did not need a handout from Government, only the proper recognition.
The tour included the bottling plant, folk museum, the bonds and the distillation plant. Foursquare produces many brands of rum, including ESA Field, Old Brigand, Alleyne Arthur Special Barbados Rum and Doorly’s. It also produces CO2 dry ice and Bowmanston and Silver Spring bottled water.
Sir David said Foursquare was the only facility in Barbados that reused all its by-products.
