Searchlight Logo
special_image

    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • Features
      • Special Features
      • From the Courts
      • Sports
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Privacy Policy
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • Features
      • Special Features
      • From the Courts
      • Sports
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Privacy Policy
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
One Region
April 1, 2010

Caribbean Rum in grave danger. Urgent government action needed

THE European Commission (EC) has, once again, let down the Caribbean. This time on rum. All rum producers in the Dominican Republic and Caribbean Community (CARICOM) countries are facing the grim prospect of losing their markets in Europe.{{more}}

Having convinced the Caribbean’s negotiators to sign a full Economic Partnership Agreement (EPA) with the 27-nation European Union (EU) on the basis that it was not necessary to include specific language on rum because it was covered in Declaration XXV in the Cotonou Convention, the EC is now reneging on its undertakings and many rum companies face a grave financial crisis.

CARIFORUM countries – the independent member states of CARICOM plus the Dominican Republic – agreed to a full EPA in December 2007 under considerable pressure from the EC, including the threat that if they did not sign, a higher tariff would be applied to their vital exports, such as sugar, rice and bananas, making them uncompetitive with other countries.

The single paragraph on rum in the EPA was not worth the paper it was written on, and a few weeks ago – on 19th March, a ministerial meeting of EU and African, Caribbean and Pacific (ACP) countries initialled the text of the second revision of the Cotonou Agreement, which is the legal basis for relations between the EU and the ACP, with no attention paid to the plight of rum producers. The EC objected to specific language on rum in the revised text, overriding ACP protests that it did not provide the substantial guarantees that the original Cotonou Declaration gave to the rum industry.

Why Caribbean country representatives allowed this to happen is a very relevant question, and perhaps, at some point, an explanation will be given.

There are several important points in this whole saga.

The West Indies Rum and Spirits Producers Association (WIRSPA) was realistic enough to recognise that the EC would not continue to give them preferential access to the EU market. Therefore, in 2002 they accepted the EC’s proposal of “a reasonable period” (up to between 2016 and 2018) to adapt their production facilities and brands so that they could compete equitably with other producers such as the Latin American countries.

The EU agreed to establish a fund of 70 million Euros under the 8th European Development Fund (EDF) to facilitate the adaptation of production facilities by Caribbean rum companies. But to access this fund, companies first had to provide at least matching amounts of money, recovering the EDF grant element only when their upgrading or marketing projects are completed.

Many of the companies borrowed money on commercial terms to undertake the projects. They did so expecting the programme to continue until at least June 2010 when the funding window was scheduled to be closed.

However, with about 14 million Euros still in the Fund, the EC is closing it this month (March) on the basis that the rules of the 8th EDF demand it. This means that the rum companies cannot get reimbursement for the money they’ve invested on projects that cannot be completed by the cut-off date on which the EC has insisted.

The original cut-off date of June 2010 was unrealistic, and the new date of March 2010 is even more so. This fact was recognised by the EU’s own Programmes Monitors who supported an extension of the Fund for 18 months to December 2011.

In a more sinister development, while the EC has been hiding behind a Council Regulation that prohibits the 18 months extension, it has been busy trading away the small and limited preference that Caribbean rum has in the EU market. Earlier this month (March 8th) the EC formally told the Caribbean that they have already settled liberalized tariffs and quotas with Colombia and Peru and are now talking in similar terms with Central American and Andean countries.

These deals are accelerating Latin American access to the EU market and seriously undercutting the period that Caribbean rum producers had been led to believe would exist to facilitate the adaptation of their production and their readiness to compete.

Caribbean rum producers have expressed their “anger” at Europe for “reneging on previous agreements that aimed to ensure a smooth transition into a fully competitive European market”. And, so they should, for they were among the most vocal in supporting the full EPA that CARIFORUM countries signed with the EU. They have a right to feel betrayed.

Many Caribbean commentators at the time spoke out against the EPA, warning that there should be no reciprocal trading arrangement between small Caribbean countries individually and the huge EU collectively. They also argued that Europe had an obligation – if not rooted in historical exploitation, at least founded in the principles of fairness and equity – to provide Caribbean countries with the means to become less uncompetitive in an international economic system that favours the large and powerful.

At the very least, they argued, the Caribbean should be given sufficient time and adequate financial and technological resources to cope.

Despite these calls, Caribbean governments signed an imbalanced EPA that went beyond requirements of the World Trade Organisation (WTO) in giving the EU unprecedented right of access to, and establishment in, CARIFORUM countries.

Now we have the major fall out of Caribbean rum.

The EC will not agree to two reasonable things that rum producers are requesting. The first is an extension of the 8th EDF funding by 18 months to allow them to be reimbursed for the money they spent trying to keep up their end of a bargain with the EU; and the second is an impact study of the effects of early liberalisation on the Caribbean’s rum industry.

Letters written on behalf of the region by Belize Prime Minister Dean Barrow, Barbados Foreign Minister Maxine Maclean and Suriname Foreign Minister Lygia Kraag-Keteldjik to the EC have all fallen on deaf ears.

Letter writing is not enough. It’s time for Caribbean governments to do more; and to do so more militantly and robustly than in the past.

A high-level team should be despatched to Europe now, not only to talk to governments but to take the case beyond governments to the media, non-governmental organisations and, ultimately, the people of Europe. It would take only a handful of determined EU governments to persuade the EC to find ways around the regulation that prohibits this very necessary extension of the fund for rum, and to conduct the impact study.

There are some EU governments ready to help, and they lament the absence of strong Caribbean government representation.

Informed observers in Europe are convinced that the European Commissioners believe that Caribbean governments are supine and, therefore, the EU can carry on stitching-up deals with Latin America that leave the Caribbean on the sidelines.

Caribbean governments must prove the EC wrong, or they, too, will be guilty of failing the region’s iconic rum industry.

Responses and previous commentaries at: www.sirronaldsanders.com

  • FacebookComments
  • ALSO IN THE NEWS
    The multilateral system undermined-Dr Gonsalves
    Front Page
    The multilateral system undermined-Dr Gonsalves
    Webmaster 
    January 6, 2026
    LEADER of the Opposition, Dr. Ralph Gonsalves, at a press conference yesterday, January, 5 2026, commented on “the matter in Venezuela and the presenc...
    ULP did not plan to send home housing workers – Dr Ralph Gonsalves
    Front Page
    ULP did not plan to send home housing workers – Dr Ralph Gonsalves
    Webmaster 
    January 6, 2026
    THE 180 WORKERS and housing assessors who were dismissed at the end of 2025 from the Reconstruction/ Rehabilitation Programme that was being run by th...
    Venezuelan Ambassador gravely concerned about safety of the region
    Front Page
    Venezuelan Ambassador gravely concerned about safety of the region
    Webmaster 
    January 6, 2026
    AMBASSADOR of Venezuela to St Vincent and the Grenadines (SVG), Perez Santana, has expressed grave concern about the safety of the region following th...
    SVG Tourism still untapped says PM Friday
    Front Page
    SVG Tourism still untapped says PM Friday
    Webmaster 
    January 6, 2026
    THE POTENTIAL OF St Vincent and the Grenadines (SVG), as it relates to tourism, and other economic drivers is untapped. This is the assessment of Prim...
    SVG emerges as New Caribbean Hotspot
    Front Page
    SVG emerges as New Caribbean Hotspot
    Webmaster 
    January 6, 2026
    ST.VINCENT ANDTHE GRENADINES (SVG), is seeing a boom in US tourism with a 49. 5% increase in arrivals. Once a quiet, off-the-radar destination, St. Vi...
    SVG CUBA Friendship Society condemns US military action in Venezuela
    Press Release
    SVG CUBA Friendship Society condemns US military action in Venezuela
    Webmaster 
    January 6, 2026
    THE SVG CUBA FRIENDSHIP SOCIETY has described the US military incursion into Venezuela on Saturday, January 3 2026 as a “Violation of Venezuela’s sove...
    News
    Poetry gave best-selling author her wings (+Video)
    News
    Poetry gave best-selling author her wings (+Video)
    Webmaster 
    January 6, 2026
    BEST-SELLING AUTHOR, educator and cultural practitioner, Zenna Lewis is currently working on her third and fourth publications, even as she sends a wo...
    Murder-accused to be back in court February 2
    From the Courts, News
    Murder-accused to be back in court February 2
    Webmaster 
    January 6, 2026
    A MAN WHO is alleged to have killed his nephew during an argument is expected back at the Serious Offences Court for his second court appearance on Fe...
    Youth takes out his jealousy on rival’s glass windows
    From the Courts, News
    Youth takes out his jealousy on rival’s glass windows
    Webmaster 
    January 6, 2026
    AYOUNG MAN, who broke his ex-girlfriend’s new boyfriend’s glass window and damaged his tiles on Christmas night was given a suspended sentence and ord...
    Questelles school to be rebuilt within three months
    News
    Questelles school to be rebuilt within three months
    Webmaster 
    January 6, 2026
    THE PORTION OF the Questelles Government School that was ravaged by fire on the afternoon of December 29, 2025 should be back in operation by April, 2...
    Dr. Friday promises best practices in Parliament
    News
    Dr. Friday promises best practices in Parliament
    Webmaster 
    January 6, 2026
    PRIME MINISTER, Dr. Godwin Friday said his government is fully committed to upholding the Constitution of St Vincent and the Grenadines (SVG) in the H...

    E-EDITION
    ePaper
    google_play
    app_store
    Subscribe Now
    • Interactive Media Ltd. • P.O. Box 152 • Kingstown • St. Vincent and the Grenadines • Phone: 784-456-1558 © Copyright Interactive Media Ltd.. All rights reserved.
    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok