Beer drinkers who have a taste for Heineken and Red Stripe may be rejoicing
tonight at the introduction of a bill that will make it so that those beers
produced in the Caribbean will sell for just about the same price as a bottle
of Belikin. It’s called the Customs and Excise Duties Amendment Bill of
2009 – which will eliminate the high tariffs traditionally charged on
the imports. It’s all part of the treaty commitments made in the revised
Treaty of Chaguaramas signed in 2001 that will allow common external tariff
on all Caribbean produced goods across all borders in CARICOM. Government has
been trying to avoid implementation because it will lose money and local producers
of primarily of beer will not fare off so well on a level playing field. But
Prime Minister Barrow today explained that his government stalled as much as
it could until Jamaica threatened it with legal action.
Hon. Dean Barrow,
“We’ve been trying to prevent market penetration by Busta and
Bigga and Red Stripe and Heineken which comes out of St. Lucia. Well the day
of reckoning finally arrived, it was all over the Caribbean news. The Jamaicans
in particular said to us, you’re members, you’re signatories to
the Treaty of Chaguaramas, you’re members of the CCJ for at least the
original jurisdiction so that that body that decides trade disputes within CARICOM,
we are going to take you to court and we are going to ask your damages against
you unless you infact extend the equal treatment to our products. Those on the
other side will be able to tell you every thing you go to of the relevant Ministerial
committee in CARICOM a resolution is passed demanding that Belize finally begin
to comply with this treaty obligation and it is to some extent a pity but you
could get into a whole philosophical debate on whether the consumer does benefit
and that is supposed to be the objective of free trade. I will tell you, I am
no believer in free trade, but we’re all caught up in a movement that
we simply cannot avoid.”
But before you buy that Friday night six pack, the bill has not passed
into law and still has to go to the Finance and Economic Affairs Committee for
consultation and back to the House for its second and third readings
There is one wrinkle that the PM explained. As the bill is proposed
it is expected that the Heineken should be available for just about the same
price as Belikin. That is because it is produced in St. Lucia – which
is classed – like Belize as a less developed country in CARICOM. But it’s
a different case for Red Stripe because it is produced in Jamaica – that
will face one additional tax which should make it slightly more expensive then
Belikin.