Deputy Prime Minister Peter Turnquest. Photo: Terrel W. Carey/Tribune Staff
By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Deputy Prime Minister and minister of financial services were yesterday travelling to Europe in a last-ditch bid to plead the Bahamas’ case against being ‘backlisted’.
Carl Bethel QC, the Attorney General, confirmed to Tribune Business that both K P Turnquest and Brent Symonette are leading a government delegation that will hold “face to face meetings” with the European Union (EU) in an attempt to ward off the potential reputational and economic damage this would inflict on the Bahamas.
With finance ministers from the 28-nation EU set to meet tomorrow to ratify the Bahamas’ inclusion on the ‘blacklist’, the Minnis administration was engaged in feverish ‘11th hour’ efforts over the weekend to convince them otherwise.
Mr Bethel revealed he had called in Attorney General’s Office staff on Saturday to deal with the drafting of legislation that would address the EU’s concerns, which focus on the ability of multinational companies to use Bahamian financial products and structures for tax avoidance purposes.
He said they had produced “a very good Bill”, which was set to be shared with the Prime Minister, Deputy Prime Minister and minister of financial services, to deal with both the EU’s fears and the issue underpinning them - implementation of the Organisation for Economic Co-Operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) initiative.
Suggesting that this legislation would now ‘move up’ the Government’s agenda, Mr Bethel blamed “a series of miscommunications” by both the Bahamas and European Union (EU) for placing this nation at risk of being ‘blacklisted’.
Without giving specifics, he suggested the EU had failed to properly notify the Bahamas about the “timing and details of implementation” it was seeking in attempting to curb tax avoidance by multinationals.
Refusing to blame either side, the Attorney General said the Government would “do all that is necessary” to defend the Bahamian financial services industry’s “right to compete on a level playing field” without targeting another country’s tax base. “We are moving with alacrity,” Mr Bethel told Tribune Business. “A delegation of ministers, led by the Deputy Prime Minister and minister of financial services, is heading to Europe to engage in face-to-face meetings.
“I summoned my people here on Saturday. I’m now competing a draft Bill to capture the immediate concerns of the Europeans with regard to the effective implementation of the BEPS initiative, meaning the booked profits and losses of non-resident companies that may be resident in the jurisdiction will have to be subject to country-by-country reporting.
“This is particularly when these entities are constituent members of multinationals earning over and and above more than several hundred million dollars in terms of consolidated annual profits.”
Mr Turnquest, in his statement on Friday, said the proposed EU ‘blacklisting’ stemmed from concerns the Bahamas has not done enough to prevent its financial products and structures from being used by multinational companies and others for tax avoidance.
The legislation worked up by the Attorney General’s Office directly targets Europe’s fears, as it proposes to impose financial reporting requirements that will mandate Bahamas-based subsidiaries of multinationals to show the profits and losses earned in different countries.
These requirements will only apply to Bahamian affiliates of multinationals whose earnings are above a certain threshold, but those that do will become “a reportable entity” that must demonstrate to the Bahamas’ ‘Competent Authority’ - the Minister of Finance - that it is engaged in country-by-country reporting.
Mr Bethel told Tribune Business: “We have just finished finalising a first draft of what we think is a very good Bill to address this issue, and put the Bahamas in a very good position to comply with BEPS.
“The main thing right now in terms of BEPS is multinationals, and the way they book profits and losses in corporate vehicles around the globe, using financial structures to put themselves in the best possible position in their home jurisdiction.
“I think the Bill we have is very serviceable. We think the Bill accommodates satisfactorily the requirements set out in the [BEPS] criteria.... We have addressed that issue with our eyes firmly fixed on BEPS criteria 2.2.” This deals with the use of products/structures that book business worth multi-million dollar sums in jurisdictions where companies have no physical presence, or conduct no substantive activity.
The threatened ‘blacklisting’ of the Bahamas is tied directly to the OECD’s BEPS initiative, as compliance with the latter is one of three criteria being employed by the EU to determine whether a country is co-operative in the fight against tax avoidance.
At its simplest, BEPS aims to ensure that the profits of multinational companies are taxed in the country where they are generated.
Multinational companies often use legitimate tax avoidance strategies to “exploit gaps and mismatches” between different countries’ tax rates and rules, and “artificially shift profits” to low or ‘no tax’ jurisdictions despite conducting no or minimal business there. This enables them to minimise their tax exposure by paying a lower rate than they otherwise would in countries where they do conduct business.
The Bahamas has elected to meet the minimum BEPS requirement by complying with four standards: (Action 5): Countering Harmful Tax Practices; (Action 6): Treaty Shopping; (Action 13) Transfer Pricing Documentation and Country-by-Country Reporting; and (Action 14) Dispute Resolution.
Yet financial services industry sources told Tribune Business that compliance with Action 5 was especially problematic for the Bahamas. This is because the OECD considers a corporate tax rate of 10 per cent or less to be a ‘harmful tax practice’, but the Bahamas - with no income taxes of any kind - has an effective corporate tax rate of ‘zero’ because it simply does not have this system.
Therein lies the problem for the Bahamas in meeting both OECD and EU demands, and many observers believe the latter - in particular - is seeking to force this nation to implement a corporate income tax.
The recommendation to include the Bahamas, together with the US Virgin Islands and St Kitts and Nevis, on the EU ‘blacklist’ was leaked last week to the Reuters news agency. Bahamian financial services industry, speaking on condition of anonymity, told Tribune Business they viewed this as a ‘deliberate act’ by the EU in a bid to further ratchet up the pressure on this nation, force it into a corner and ‘bounce’ it into meeting more demands.
“They’ll probably have their corporate tax in the next three years; maybe two,” one source told this newspaper of the EU. “It is the extent of change, not just the pace of change, that is being rapidly accelerated. They know the Bahamas is going to say: ‘What do you want us to do to beat off this blacklist on Tuesday?’”
The source added that the Bahamas’ commitment to the OECD to comply with BEPS “arguably” requires implementation by end-2019, which is the same timeline for when this nation is supposed to accede to full membership in the World Trade Organisation (WTO).
Mr Bethel, though, said he was “loathe to ascribe” hidden agendas or ulterior motives to any party. “When the Bahamas gives its commitment we live up to it, and have every intention of living up to it” he told Tribune Business.
“It’s a question of our own integrity when we say we’re going to do it. No one has to put a gun to our head. All I can say is that we are demonstrating our good faith. We’ll see what the end result will be. I can only speak to and say what we as a government are doing. We are showing our good faith, and we trust and hope we’ll receive the same consideration.”
Mr Bethel then revealed that “a series of miscommunications” by both the Bahamas and EU had exposed this nation to the threatened ‘blacklisting’, although he did not fully explain what these were.
“It’s a series of miscommunications that put us in this position,” he disclosed. “A series of miscommunications on both sides. Now we’ve got the full picture we will respond to it forthwith. Nobody was attempting to swing anybody.
“It was a miscommunication on timing and the details of implementation that were not forthcoming until [Friday]. I think we’re going to be well on our way to showing the seriousness of our commitment, and that when we give a commitment we live up to it.
“A large part of the threatened ‘blacklisting’ was a failure of communication; them or us not asking the right questions, and for them to set out fully the details of the initiative. We knew the criteria, but only got the implementation notes then.”
Mr Bethel’s comments likely refer to the EU’s original ‘blacklisting’ announcement in early December 2017, when it placed the Bahamas in an eight-nation grouping, along with the likes of the British Virgin Islands (BVI), Dominica and Turks & Caicos, that would be given a further 12 months to meet its demands for “fairer taxation”, transparency and compliance with the fight against tax avoidance by multinational companies.
The EU said it had suspended “the screening process” for the Bahamas and other seven, due to the impact of Hurricane Irma, but warned that the process would resume in February 2018 “with a view to resolving these concerns by the end of” the year.
“I will only say this,” Mr Bethel told Tribune Business. “That the Commonwealth of the Bahamas is intent on living up to its commitments to be a responsible member of the international community, and to do all that is necessary to defend the integrity and right to compete of our financial services sector on a level playing field with the rest of the world.
“Not to come with any untoward advantage that targets people’s tax bases, but to compete on quality, timeliness and efficiency of services we offer to the world. On those grounds we can compete, and we can win. We will press on regardless.”
Comments
Well_mudda_take_sic 6 years, 8 months ago
This comment was removed by the site staff for violation of the usage agreement.
Well_mudda_take_sic 6 years, 8 months ago
Repost: The long knives have already been unsheathed behind Minnis's back, and are now just waiting for the most opportune moment. Minnis made a grave mistake when he made his pact with Sebas Bastian. The dimwitted Doc is gonna learn the hard way that loyalty from voters is much more important than financial support from a criminal thug.
spoitier 6 years, 8 months ago
Take back our natural resources from the elites and put it in the hands of the people and we will be alright regardless of any blacklist that the EU put on us.
Dawes 6 years, 8 months ago
Outside of the aragonite what natural resources do we have over here. And how much would we get if we had control of the aragonite?
joeblow 6 years, 8 months ago
Do Haitians count as a natural renewable resource?
concernedcitizen 6 years, 8 months ago
face reality we are coral rocks w sun sand and sea to sell ,,and in most of our local owned boutique hotels the service sucks ..Apart from a few islands we are a dump ..I live on Exuma that's doing good w tourism second home owners etc ,,Georgetown is a nasty dump , guest ask me why ,,what do I say go to Marsh harbor .Our tax money built a new straw market ,its now a loud ,,dirty place ,,shit I saw the same KFC box in the immigration building stair well for 3 months,,i used to say Bahamian ,,Bahamian Bahamian ,,but we cant even keep the lights on ,,reality
DEDDIE 6 years, 8 months ago
Stop jumping through hoops. Let then do what they have to do. What is so ridiculous, they themselves can't meet their on criteria. If they were honest they would blacklist themselves.
Dawes 6 years, 8 months ago
Why do we always do things at the last minute. We have been told for a while that this would happen should we not do XYZ, we haven't done XYZ and now we will be blacklisted. And yes for all who don't like the EU telling us what to do, we don't have to do this. But if we don't then the EU will do what it can to make sure their citizen decide they would rather put their money in other offshore countries and not Bahamas.
Emac 6 years, 8 months ago
My how politics turn these men grey quickly! The old Chinese proverbs, be careful what you wish for, cause you just might get it.
ThisIsOurs 6 years, 8 months ago
@Dawes, our greatest and most overlooked (seemingly deliberately) resource is our people. And that's not just rhetoric. Bill Gates, Steve Jobs, Barack Obama, Einsteen, Howard Hughes, Henry Ford were/are actually all "people". THEY created the jobs/policy/business/leadership. This practice of bowing to external entities as if Bahamians right here in the Bahamas "can't" is not the way to go
Dawes 6 years, 8 months ago
As i have said this is fine. All the EU is saying is their people will find it harder to use banks in Bahamas if we choose not to implement what they deem is needed to stop tax evasion and money laundering. Nobody says we have to implement it, but if we don't there are consequences it is up to us which we would rather.
ThisIsOurs 6 years, 8 months ago
"All the EU is saying" is the wrong characterization I think. I agree that they have the right to do as they wish with their citizens. But I don't believe this is the end of it, in a few years the ground will shift again when the current laws no longer favor them. We are a "global community" with free "trade and no tariffs" and WTO is King UNTIL the free trade and zero tariffs no longer favour the G-7. Then it's "unfair".
What I am saying is we have to forget this model where EVERYTHING depends on the foreigner, we wait on them for jobs, we look to them to tell us how to do X, we believe they're all knowing, yes we need them, but they will always do what advantages them and potentially disadvantages us. we have to start seriously helping ALL of our people to build their knowledge and create their own businesses. And I'm not talking about mowing lawns and painting nails
concernedcitizen 6 years, 8 months ago
we cant even keep George town clean ,,guest ask me all the time why its a dump ..I used to say Bahamian ,.Bahamian Bahamian ,,now I say thank god for the foreign investors ..I,m tired of it ,,check marsh harbor ,,spansih wells ,,the current ,,pretty and clean the rest of family island towns shit holes like Nassau ,,even parts of long island now are crap ,,truth is we can,t even keep the lights on ,,truth is evident ,,we are going backwards
ThisIsOurs 6 years, 8 months ago
My point isn't that we dont need foreign investment. My point is that we HAVE to stop looking to it as our future. Our people are our future. And if they're dim, d-average, low wage jobs and non tech, that IS our future. Not the shiny billion dollar investment from a foreigner.
bogart 6 years, 8 months ago
In wanting to be a part of yhe global financial community...there are rules and regulations. In flying overr there is obvious the position is weak......and falling into appeasment..... decisions must not be made under duress .....that will affect the lives of many Bahamians...bankers their families, businesses etcetc.....
observer2 6 years, 8 months ago
KP’s solution is another half step and won’t address the following further black listing issues:
But KP hopefully knew all of this. So why is he caught by surprise?
DWW 6 years, 8 months ago
And this is beneficial or detrimental to me how exactly as an average bahamian? None of this affects me, so why do i care?
DWW 6 years, 8 months ago
oh wait, yes government transparency, that affects me but you can't tell me that the EU really gives a flying cahona about that
TigerB 6 years, 8 months ago
Guys don't forget, that blacklisting well effect all Bahamians, no matter what color of shirt dey does wear, maybe we should hope for the best... maybe
DWW 6 years, 8 months ago
Can you tell me how please?
bogart 6 years, 8 months ago
...agreed and more. Crux is the Bahamas does not operate in a vacuum and hrd mouting, banging tables in parliament does not cut it......Competition ....fair market forces.....laissez faire...... One cannot wing it when you havd a bunch of international banks mostly canadian banks following the rules and dupm hundreds of millons of pepples tax dollars into it to give it an unfair advantage....they have sharejolders too.....Central Bank does not get involved....even when Bahamians protesting....offshore, well with little or low taxes other competitors are complaining...and are in a position to do something ..... ...............
When dealing on the international scene thry really should get their own plan for more reasons than .one jets are actually cheaper than many of the money holes being discovered.
OldFort2012 6 years, 8 months ago
We should wear that badge with pride.
We should write in HUUUUGGEEEE letters at LPIA, so it's the first thing anyone sees on landing: "Welcome to the Bahamas. Blacklisted by the EU since 2018. Your money is safe here. We will tell them SHIT."
And then tell them to fuck themselves. Zero co-operation going forward.
banker 6 years, 8 months ago
The trouble though, is that money is not safe here. I don't understand how Julian Brown and Owen Bethel can dip into client funds, make the clients lose most of their money, and none of them are in jail.
You can't put tinsel on a piece of shiite and expect the world to fall for it. When I wanted to transfer money from my American dollar account in the Bahamas, the compliance department in my new first-world country bank made me jump through hoops to prove the source of the money. They all know that we are a bunch of tax-dodging crooks. How can a virtually bankrupt bank not be closed by regulators and still have its stock trading on the domestic exchange? Everyone knows that we are a Mickey Mouse crooked jurisdiction, and quite frankly, the blacklist may kill the last of the piece of turd that we call Financial Services. Then we can rise from the ashes with full compliance and actually be a world-class player.
DWW 6 years, 8 months ago
you have a point
DWW 6 years, 8 months ago
I like this approach very very much
John 6 years, 8 months ago
Reality- check you sounds like a little school girls who cannot seem to be able to stop calling Sebas Bastian and Craig Flowers ‘ name. Give it a break! If you have common sense enough to comprehend what you read the three issues this gangster controlled and scandal ridden EU has with the Bahamas is 1 It (Bahamas) failed to meet demands for a fairer taxation. 2.transparency and compliance with the fight against tax avoidance by multinational companies. So tell me where the Web Shops fit in. In fact seems like the HOA signed by Minnis and Oban is more in contravention with itsvtax freeness than all the web shops together. Give your sick mind a rest!
DDK 6 years, 8 months ago
The 'web shops' are an anathema to out society and should not fit in at all! PLP and FNM have both failed miserably in dealing with them. They should be eliminated. Full stop.
Porcupine 6 years, 8 months ago
Yes, they are the elephant in the room. Doesn't it bother anyone that Minnis won't open his mouth on this issue? More money is siphoned out of the Bahamian economy by the web shops than any other way. It goes down a sewer pipe and straight into the pockets of the web shop owners, to the huge detriment of MOST ALL Bahamians. Blacklisting pales in comparison to the damage done by the web shops. We get distracted easily.
DWW 6 years, 8 months ago
everyone badmouthing webshops is just grumpy that they didn't think of it first. and i haven't even ever step foot in one. not on any religious principle, i''m just smart enough to know it is entertainment not income...
John 6 years, 8 months ago
And almost every Bahamian will agree that the tax burden is this country is skewed towards Bahamians and locals bearing the most of the burden. You have the hotels with their concessions. The Cruise operations and airlines with their tax rebates, the salt company in Inagua paying little or no royalties and taxes but shipping our salt around the world, even to Germany to make weapons. The same with aragonite. Then there are the companies in Freeport and The Bimini Bay, paying little or no taxes, yet the Bahamian people are faced with a 7 Billion debt and can barely keep the lights on. Fix it!
DDK 6 years, 8 months ago
Most of this because the politicians who let these companies set up take the royalties up front AND under the table.
bogart 6 years, 8 months ago
......the authorities seem to have darkers on. And the sad part knew this was coming from years ago......the govt pumps money knto the Bank of the Bahamas and thinks its fair cpmpetition to the rest of banks .....and if your taxing offshore so low posing what the majority calls unfair competition.....BUT .... I do like the recent counter strategy of rebrannding offshore to another name as we do much more than just offshore banking.....and well tell them that not us anymore and dont blacklist us anymore....
bobneville 6 years, 8 months ago
good luck boys go fight for your country don't mind the l losers they have nothing better to do now that their cash cow died in the last election they don't understand what is right or wrong anymore they will self destruct from hate,you know what to do ,and if you don't hire someone that do.
ThisIsOurs 6 years, 8 months ago
I completely agree with your last sentence. "If you don't know, hire someone that does". That's all I've been asking for for the past year. People kept saying give them time give them time, it's becoming obvious the more time they get, the worse it gets. They need qualified people not campaign workers who didn't run a very good campaign, they were just lucky the PLP was horrible
Its so odd that the reason we were black listed falls squarely in the agreement signed with Obn...it's uncanny...now they've flown to nether regions to tell them we're not doing what we're doing
BahamaPundit 6 years, 8 months ago
It's not looking good for Minnis. His actions are starting to reveal his true intentions and character. They illustrate a man who never honestly believed it was the people's time. The fact that he has no intention to pass a Freedom of Information Act speaks loudest of all.
John 6 years, 8 months ago
The European Union was formed specifically to bond together certain countries for economic reasons and discriminate against others. That is why the economic embargo against Haiti, that started over 200 years ago is still effective. This union wants to control the wealth of the world based on the premise that The European population is under threat and the rest of the world will rise up against them (because of their wicked deeds and bloodshed around the world and even now its economic warfare). And the Union is going into even greater panic as the war on drugs that was designed to lock or destroy Black Americans, basically has failed. Beyond that oil and other valuable mineral valued in the Hundreds of Billions have been discovered in non traditional places like Haiti, The Bahamas and countries that were listed as terrorism friendly. Meanwhile The USA Russia and China is in a mad frenzy to get their greedy claws on this new found wealth. And even Israel is joining in the fray fight to control oil that was discovered in its neighboring state. China is being described as ‘a silent beast that is taking over the entire world without firing a shot. Unlike the US and other conquering nations, China moves in peacefully and slowly takes control of a nations economic activity and consequently its wealth. Because The US did not want to empower and enrich a certain segment of its population, it moved most of its industries overseas. And by doing so it became a financial slave to China and even Japan. And these countries come to smaller countries like the Bahamas and not onl set up industries. But they force loans on the country, saddling them with debt and thereby milking every single dollar out of that country. Then you have false alarmed , yes like Reality-check ..that scream to the top of their lungs ‘it’s the web shops that done it, while billions and billions of dollars are leaving this country leaving the Bahamas saddled in debt. The US alone has crashed nearly 200 government’s around the world or caused them to change hands. A kep operative word is ‘corruption.’
Dawes 6 years, 8 months ago
?
Well_mudda_take_sic 6 years, 8 months ago
He's paid by his numbers boss to distract.
DWW 6 years, 8 months ago
been drinking too much koolaid i see?
Aegeaon 6 years, 8 months ago
A blinded man easily fooled by the drug cartels. I know what they want for the Bahamas, a narco-state. Thus they want to fool Bahamians into being Anti-Americans to destroy this land. This is no work of Americans, John. This is what the Bahamian Pride had wrought in the 80's. If we had never made that deal with the Medellin Cartel. We would had been saved, and now. Your demise is sealed. This is justice and a victory for honorable people around the globe, now if we acknowledged our sins. It's going to do wonders of our country.
DWW 6 years, 8 months ago
Can someone please explain in black and white why blacklisting is bad? what exactly would happen? all i see is vague posturing ever since i returned from college 20 years ago and read the papers basically every day since.
DDK 6 years, 8 months ago
It must be serious to warrant the DPM and Minister of Financial Services leading a "government delegation" back to Europe again at The People's expense. Perhaps they think the EU will be swayed from its larceny by the sight of a group of Bahamian politicians and their lackeys on bended knee.
TigerB 6 years, 8 months ago
The blacklist will be linked to EU legislation so that jurisdictions implicated will not be eligible for funds from the bloc except where it is to aid development.
We as a people eliminated the web shops, we voted, via referendum, and spoke loud and clear, but alas! our government still saw the need to still move forward with it.. as it is often said, we reap what we sow Gal. 6:7
DWW 6 years, 8 months ago
I'm sorry, the bahamas receives funds from the EU? like what? is it a loan we have to pay back or just free money? I'm still so lost adn why do you blame EU policy on webshops? why does the EU give a flying cahona?
John 6 years, 8 months ago
Then it’s time to form the NEU ( or the Non-European Nations) and stand united against them that discriminate against us and exploit us and steal our resources.
DWW 6 years, 8 months ago
that would be NEN no NEU. NEU would be Non European Unichs.
Socrates 6 years, 8 months ago
The EU is hell-bent on ensuring that their nationals dont escape one euro of taxes. how that came to be our problem is beyond me, but they write the rules of the game. frankly i think we lose no matter what we do. KP and BS should save that travel money as i fear the outcome is a done deal. The OECD screwed up when they allowed 2 options for compliance but in fact really only wanted one, the automatic exchange mechanism, and when we chose the option they didn't like, the dye was cast. they fired warning shots through their mouthpiece the Economist magazine, but we didn't heed.
John 6 years, 8 months ago
Only now that Crypto currencies, like the Bitcoin poses threats to countries local currencies are they seeking to regulate it. Basically it was someone taking Monopoly money and pretending it’s real money that got it started. And as more people believe in this ‘invisible ‘ or digital money, it becomes more valuable. A guy claims he bought Bitcoin at $6-7. When it got up to $14,000 he was able to trade the value of Bitcoin for a $16,000 car. But by time the car dealer got to the bank to trade the Bitcoin, its value had dropped to $12,000. So he lost over $2,000 on the sale of the car. So now there’s Ripple that bypasses banks and converts your money into the currencies you want to trade in in a matter of seconds. So if you’re in the Bahamas and want to trade in Europe, rather than having to convert Bahamian dollars into Euro, Ripple does this digitally in a matter of seconds and allows you to do the trade. It also works if you need to convert Euros back into Bahamian dollars, avoiding all banking delays and most fees so now they want to regulate and control these currencies for fear of what it will do to banking revenue. And now countries that are blacklisted or being untreated fairly by the EU and commercial banks are introducing their own crypto currencies. Venezuela plans to introduce the Petro coin in short order. And as US dollars are no longer required for international trade, including the purchase of oil both the US dollar and the EU are facing extinction.
OldFort2012 6 years, 8 months ago
LOL, John. You are living proof that a little knowledge is a dangerous thing. You qualify as a nuclear weapon.
DWW 6 years, 8 months ago
Dude needs to put down the peace pipe before he starts posting online, me thinks.
realitycheck242 6 years, 8 months ago
@John Regulation is the key . What is regulated is viable Crypto currencies presently make up less than 1% of The world monetary supply which totals about 60 trillion dollars of which only about 8% of that is cash.people and governmants will only put their money in what is viable.
DWW 6 years, 8 months ago
I take it you are not a republican?
BahamaPundit 6 years, 8 months ago
I'm thinking of writing an article on our fourty yesrs of greed. It is clear as day that we, and nobody else, have blacklisted ourselves. The only solution may be to beg England to become a collony again. The people that decided to make the Bahamas independent were "bat shit crazy" in my opionion and only out for personal gain.
truetruebahamian 6 years, 8 months ago
So many contributions refer to Aragonite - but nobody does any homework on the subject. It is not rare and is found almost everywhere - perhaps the oolites are not as high quality as here, but costs defer the ongoing profitability of keeping the aragonite mining sustained. No aragonite can be sent to the U.S. on anything but a U.S. registered vessel (The Jones Act 1920). Then it is further taxed from their side. Unless a specialist use is intended for import, the main sources of aragonite to be used will be their own locally obtained product. This act strangled Puerto Rico and acts as a disincentive for companies importing to the U.S. if there is little to no profit being realised. Because of this, Ocean Cay is being re utilised as a destination rather than a site of mining and production - there is no sustainable money in it!
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