Bermuda May Turn To WTO As A Defence Against A Hostile US

by Amanda Banks, Tax-News.com, London

10 March 2004

Bermuda is to consider joining the World Trade Organization in a bid to seek redress against a series of measures by US states, which the Island’s government argues violate "fundamental principles" of free trade.

"Bermuda must be ever vigilant in defending its national economic interests,” noted Finance Minister Paula Cox according to the Royal Gazette. “Over the course of the last two years, individual US states have engaged in unfair and discriminatory trade practices that posed some risks to Bermuda's international business sector.”

She continued: "The actions taken by some of the US States in the past two years violate fundamental WTO principles of fair treatment and market access. The Ministry of Finance has started work on assessing the merits of joining organisations such as the WTO and other international groupings where there may be strategic support for some of Bermuda's economic objectives."

California has been one of the more active US states seeking to ban firms who have switched their headquarters offshore from doing business with the government. Last September, state lawmakers approved a bill which will prohibit the state authorities from contracting with companies which have performed corporate inversions. The state of Connecticut also passed a similar bill last year.

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