Bermuda is considering joining the World Trade Organisation to fend off unfair trading practices by certain US states.

And Government is to spend $200,000 on lobbying Washington but Finance Minister Paula Cox played down the threat from Presidential hopeful John Kerry.

Ms Cox said: "Bermuda must be ever vigilant in defending its national economic interests. 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.

"The Ministry of Finance has had preliminary discussions with representatives of international business who have confirmed the potential threat and have concerns about other US states adopting similar measures.

"As part of the response to these kinds of threats Government considers there is merit in joining one or more organisations to have access to a forum where unfair and discriminatory trade practices or actions against or indirectly aimed at Bermuda can be challenged and resolved."

She said one such organisation is the World Trade Organisation (WTO) which deals with global rules of the trade in goods and services between nations.

"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."

Ms Cox said the Business Development and Regulatory section had a budget of $724,000 for outreach work preserving Bermuda's international reputation.

"Of this amount some $200,000 is allocated to maintaining effective relationships in Washington DC among law makers and their policy advisors and administration officials.

She added: "Government fully appreciates the dynamics and nuances that have characterised the US presidential campaign. Bermuda's fine name has been mentioned on a number of occasions and typically not in a flattering context.

"These throw-away remarks are calculated to glean a political advantage in a very tight US presidential race. Such remarks to do not require a response from Government."

She pointed out that the US administration was not gung-ho on corporate inversions. "Very recently, in testimony before the House Ways and Means Committee, Treasury Secretary John Snow said that while the administration is concerned about corporate inversions 'it is not the administration's view that every time a company moves offshore that that's an abusive tax shelter'.

"He continued by saying: 'Clearly that is not the case, sometimes companies go offshore because of the effects of our own tax code on them, vis-a-vis the tax regime our competitors have."

Corporate tax inversions were a matter for the US authorities to deal with said Ms Cox. Even if Senator Kerry became President a major shift in US policy was not predicted, said the Minister.

"In the Senate, Senator Kerry has voted for every piece of free trade legislation and therefore has the perspective of an internationalist in the realm of global economics."

However Opposition Leader Grant Gibbons said Bermuda spent much more when he was the Minister of Finance on lobbying Washington and had a lobbyist on a retainer of $120,000.

"Government lost a huge opportunity when it handed over the bases negotiations to the British Government. It lost the opportunity for Government to be in Washington interacting with US politicians.

"It's tragic we have been put in the situation of recreating that situation."

Ms Cox played down fears of the declining pace of international business registrations, noting there was an ebb and flow in the business cycle.

Bermuda had led the way in formations of new insurance companies, said Ms Cox.

Last year Bermuda had 89 compared with 83 in the Caymans, 77 in Vermont, 32 in Guernsey, 30 in South Carolina and 23 in Hawaii.

Dr. Gibbons said Bermuda used to have double or triple Vermont's number.