Minister optimistic about country’s offshore financial sector
Tuesday, June 29th, 2010By Shelton Daniel
Minister of Finance and the Economy Harold Lovell said Antigua & Barbuda’s international financial services sector is far from dead, despite facing huge challenges.
Speaking Sunday on OBSERVER Radio’s Big Issues programme, the minister noted that efforts by rich countries to clamp down on the use of offshore tax havens have required frequent adjustments to the applicable legislation in this country.
But, he said, despite such problems, hope is far from lost. “It’s not dead in the water by any means, but what we are doing is recalibrating, repositioning ourselves to be competitive within the sector.”
Lovell disclosed that on Thursday, July 8, Antigua will “be hosting a major regional conference on the financial services sector.” He added that “the region is getting together to see how we can confront some of the challenges; how we can capitalise on some of our inherent advantages.”
The finance minister said a joint OECS approach is absolutely essential given the powerful forces ranged against the sub-region’s offshore financial services sector. “Those persons who see the flight of capital from their jurisdictions into jurisdictions that have a flourishing financial services sector … they are doing everything to try and squeeze these countries, and this is something we have been affected by.”
Conceding that “one man’s financial service sector was another man’s tax haven,” the minister observed on the brighter side that “financial services will always be there, and international financial services is an area (in which) we believe we have a comparative advantage – in fact, a comparative tax advantage in some cases. I do not think the sector will go under.”
On another matter, Lovell told OBSERVER that Antigua & Barbuda is keeping its options open to settle the online gambling dispute with the United States.
The World Trade Organization has long ruled in favour of St John’s, declaring the US to be acting illegally in blocking access from its territory to Antigua-based Internet gambling sites. But Washington has refused to comply, arguing that such access was never the intent of WTO free trade rules.
The WTO has granted Antigua the right to slap the US with $21 million worth of annual trade sanctions, but the government in St John’s has been trying for a negotiated settlement instead.
Lovell told OBSERVER Radio that although these negotiations have dragged on for a long time, they are nevertheless ongoing. He said Antigua is now trying to pursue the matter through the Caricom Council on Trade and Economic Development (COTED). “We still have other options, and as we speak now, we are planning to have a meeting very shortly with all the major players and stakeholders. At the recent meeting of COTED, they have agreed to come on board with Antigua & Barbuda, and perhaps this will be a game changer.”
Explaining further, he said: “If we can fight under the overall umbrella of Caricom (and the Secretary-General, Mr Carrington, has already said he believes the time has come for Caricom to put its full weight behind Antigua & Barbuda) we think this will improve our negotiating position. It will force the United States to look more closely at what we have been saying at the table.”
Lovell said Prime Minister Spencer raised the matter with US Secretary of State Hillary Clinton in a recent meeting. “So I think chances are that we are going to hasten our steps towards a settlement, and at the same time, we are going to keep the other options, where the World Trade Organization gave us the right to impose certain sanctions, until such time as there is compliance on the part of the United States or a full settlement.” (Antigua Observer)
Government’s efforts to reform the Public Sector may have hit a snag as the union representing workers at several state corporations, The Antigua Trades & Labour Union (AT&LU) has instructed them not to comply with the request to complete the Public Sector Employee Data Form.




