USVI appeals to CARIFORUM in rum dispute

[jankdc]

It's been a while since I did a news update. I'll get to it, I promise. I did see this one which I thought was important:


USVI appeals to CARIFORUM in rum dispute

[da'rum]

A good find and interesting read.

Cheers

[Dai]

I don't understand why the CARIFORUM is dragging it's feet on this issue. They should be going ahead full force as nothing is going to change unless they do. In fact things are just going to get worse for the CARIFORUM, the longer they take to resolve this issue, there are more chances of some of the smaller distilleries will go under. That means more pressure on the industry that is left which in turn has it's knock on effects. For some it may be good or bad depending whether they can survive on the domestic market alone or not. Let's not forget that some of the bigger players will try to muscle some of the smaller players within the CARIFORUM just to insure there own survival. It's not all sweetness and light within the CARIFORUM it self.

[jankdc]

I don't understand why the CARIFORUM is dragging it's feet on this issue. They should be going ahead full force as nothing is going to change unless they do. In fact things are just going to get worse for the CARIFORUM, the longer they take to resolve this issue, there are more chances of some of the smaller distilleries will go under. That means more pressure on the industry that is left which in turn has it's knock on effects. For some it may be good or bad depending whether they can survive on the domestic market alone or not. Let's not forget that some of the bigger players will try to muscle some of the smaller players within the CARIFORUM just to insure there own survival. It's not all sweetness and light within the CARIFORUM it self.

for one it takes money and time, something the small country/producers can't afford. For another:
Diageo may ‘re-evaluate’ Caribbean over rum dispute

and

Diageo not happy with CARICOM rum row

I think I read somewhere that Diageo yearly sales is larger than the GDP of Jamaica. (Like they need a handout)

[Capn Jimbo]

When Jank is on the case, ya gotta move fast, lol...


Seriously. I'm on a mailing list for such articles and I'd read the article the day before but decided to wait a day before publishing exerpts from this very interesting article. Good work Jank!

Dai, I don't believe CARICOM is a member of the WTO, but many of its member countries are. Thus pursuing an official complaint is a matter for one or more of the actual member countries to pursue. The two that have been most vocal are Barbados and especially the Dominican Republic (who appears to have been hurt badly already).

It only takes one member and one complaint and my understanding of the process is this: first a member country must seek an official opinion from the WTO. Based on that opinion, an official "complaint" can then be filed and then it's balls to the wall with a formal proceeding with the complainant and in this case the USVI in opposition. At that point other affected countries may join or be called to testify.

The petition will submitted at that time.

This process seems to have already begun with the DR having filed for an "opinion" (this based on the several legal opinions formulated by counsel for CARICOM which reportedly identified three or four violations of fair trade under the WTO).

This article actually seems to be confirmation of the USVI's recognition of the process proceeding, and wanting to stop it by sending a nice, let's-all-be-friends letter on nice gold embossed stationary, signed by their PM. Hidden of course are the behind the scene threats by Diageo to move or cancel their blackmail purchases of bulk rum in the region.

I think that CARICOM is playing it just right by preserving bulk sales, while their Dominican Republic proceeds. Nice play.


Bottom Line

The process has already started, with the DR as point man, and that's all it takes...