Other nations, including China and Venezuela, are particularly proficient at these sorts of diplomatic initiatives. The goodwill they have engendered in the area through such activities need to be a wake-up call for Washington that the Caribbean Basin can not be taken for granted. In the present environment the United States should compete for the Caribbean as indeed we have to contend for all of Latin America, and I believe that extra U.S. efforts in the Caribbean would be rewarded. So Mr. Chairman, Mr. Ranking Member, thank you once again for the opportunity to join you. It is an opportunity to do so, and I eagerly anticipate the questions you might have.
Farnsworth follows:] [GRAPHIC( S) NOT OFFERED IN TIFF FORMAT] ---------- Mr. Duncan. Thank you, Eric. Next witness effectively known to the committee also, Sally Yearwood, you are recognized for 5 minutes. DECLARATION OF MS. SALLY YEARWOOD, EXECUTIVE DIRECTOR, CARIBBEAN- CENTRAL AMERICAN ACTION Ms. Yearwood. Thank you, Mr. Chairman, Ranking Member Sires. Thank you for holding this timely hearing on the U.S.- Caribbean partnership. Coming as it does in the wake of the House passage of H.R. 4939, we have a crucial opportunity to evaluate and recalibrate the relationship. The Caribbean is the United States' third border. U.S. security interests in local stability are intrinsically linked and so, by extension, cooperation on vital financial, political, and social advancement concerns should be a diplomacy top priority.
Russia, China, Canada, Taiwan, Venezuela, and the European Union all have a substantial existence. The Islamic Advancement Bank has developed considerable ties with funding in some Caribbean countries, and other nations varying from Qatar to Japan and Brazil have had a substantial impact on how and where the countries of the Caribbean have actually turned to search for trade and financing alternatives (What is a consumer finance company). The United States stays the region's main trading partner, however there is no doubt that when it comes to total engagement other countries are filling, and in many cases exploiting, a vacuum. What can be done to build this more powerful partnership? I will speak to the locations of economic cooperation that our company believe could have an effect.
The 1983 Caribbean Basin Economic Recovery Act stays one of the most generous nonreciprocal trade costs ever granted by the U.S. The Caribbean Basin stays a leading ten trading partner with a balance of trade surplus in favor of the U.S. It is likewise worth keeping in mind that the Caribbean is the only location of the world where U.S. get rid of timeshare ship operators and U.S. nationals stay considerable players in the worldwide carriage of goods by sea. When CBERA was passed, regional economies were quite oriented around agricultural and manufactured items. Nevertheless, the world has actually changed. The economies today with some exceptions are largely dominated by travel and tourism, the financial services sector and other service based markets.
With H.R. 4939, the U.S. Government can examine what exists, where there are gaps, and recommend prospective areas for trade and cooperation which show https://trentonueqm683.shutterfly.com/88 today's reality. Reporter Banking and De-risking. While the technical problems behind this are under conversation amongst your associates in the Financial Services Committee, and recently they sent out a letter to the OCC requesting clarity on the application of guidelines and compliance, this concern has been front and center for the countries of the Caribbean for a while. This is a global problem, however it is widely acknowledged that the Caribbean has been disproportionately impacted because of the size of the marketplaces and the understanding of danger.
Federal government, global financial institutions, associations, and the economic sector to help determine solutions for the Caribbean. The CEO of the FIBA explains the situation as follows: We are dealing with monetary addition in developing nations and de- running the risk of is then obstructing access to fund. This totals up to a de facto embargo on the region in the area of financial services (How to owner finance a home). When worldwide The original source banks sever relationships with regional banks, there is a direct effect on financial development, trade, and remittances. As essential, when the costs of complying with guidelines develop a problem on the legitimate banks and they shut down, there is a risk that underground or less regulated institutions will take their place.
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While we can all concur that the banking neighborhood's ability to combat money laundering and terrorist financing is a shared top priority, what we can refrain from doing is place excessive problems on any specific party. There exists an opportunity for all stakeholders to come together to craft a balanced, risk-based method in between regulation and inclusion, where all celebrations acknowledge that they have a role in the issue along with in the service. Travel and Tourism. Millions of travelers move by air and sea between the Caribbean and the U.S. every year. Air and sea ports are a crucial part of the security device every day.
extra control over its borders and develops a collaborative environment for handling terrorist watch lists in addition to trafficking of weapons, drugs, and other contraband. Pre-clearance facilities in-region are an instrument for constructing a security collaboration (How to finance a second home). While the cost does not validate pre-clearance in every Caribbean nation, a strategic take a look at increasing pre-clearance presence through a center and spoke system would be advantageous to shared cooperation and security. Diplomatic Existence. Agent Engel has long required the establishment of a diplomatic presence in the nations of the Eastern Caribbean. There are 9 member states of the Organization of Eastern Caribbean States, six of which are independent.
If there is no hunger for diplomatic existence in all of the countries of the Eastern Caribbean, I think that there should at least be more powerful recognition of the force that the OECS represents in the area, and a minimum of one complete Embassy ought to be developed there. Security and Catastrophe Resilience. CCAA has actually run a Disaster Management Workshop Series with our partners from Tropical Shipping and other regional partners for practically twenty years. This occasion highlights the value of public-private partnerships in catastrophe management. Formerly focused quite on natural disasters, we now take a look at wider hazards to the specific countries.
The area is susceptible to series of natural and other catastrophes and strength is crucial. Any breakdown has trade, financial, and security implications for the wider region and for its partners outside the area. A multi-country method forged in cooperation with local partners ought to belong of the engagement. Time does not permit the complete variety of matters to be addressed. Energy, for one, is a regional priority and there I would prompt ongoing U.S. engagement on the sustainable energy front, building on the Vice President's trademark Caribbean Energy Security Effort. Moreover, Haiti remains a continuous challenge and the existing political crisis has ramifications for the area as a whole.