Other countries, including China and Venezuela, are particularly proficient at these sorts of diplomatic initiatives. The goodwill they have actually stimulated in the region through such activities need to be a wake-up call for Washington that the Caribbean Basin can not be considered granted. In the present environment the United States need to compete for the Caribbean as undoubtedly we need to compete for all of Latin America, and I think 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 a benefit to do so, and I look forward to the questions you might have.
Farnsworth follows:] [GRAPHIC( S) NOT OFFERED IN TIFF FORMAT] ---------- Mr. Duncan. Thank you, Eric. Next witness effectively understood to the committee as well, Sally Yearwood, you are recognized for 5 minutes. STATEMENT 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 carries out in the wake of your house passage of H.R. 4939, we have an important chance to https://diigo.com/0lhhga examine and recalibrate the relationship. The Caribbean is the United States' third border. U.S. security interests in regional stability are intrinsically connected therefore, by extension, partnership on crucial financial, political, and social advancement concerns need to be a foreign policy top priority.
Russia, China, Canada, Taiwan, Venezuela, and the European Union all have a considerable existence. The Islamic Advancement Bank has developed considerable ties with funding in some Caribbean countries, and other nations ranging from Qatar to Japan and Brazil have actually had a considerable impact on how and where the countries of the Caribbean have actually turned to browse for trade and financing options (How to finance an investment property). The United States stays the region's primary trading partner, but there is no doubt that when it concerns overall engagement other countries are filling, and in many cases making use of, a vacuum. What can be done to build this stronger partnership? I will speak with the locations of financial cooperation that our company believe might have an effect.
The 1983 Caribbean Basin Economic Healing Act stays one of the most generous nonreciprocal trade bills ever given by the U.S. The Caribbean Basin remains a top 10 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 area of the world where U.S. ship operators and U.S. nationals remain substantial gamers in the international carriage of goods by sea. When CBERA was passed, local economies were quite oriented around farming and manufactured items. Nevertheless, the world has actually changed. The economies today with some exceptions are mostly dominated by travel and tourist, the monetary services sector and other service based markets.
With H.R. 4939, the U.S. Government can analyze what exists, where there are gaps, and advise prospective areas for trade and cooperation which show today's reality. Correspondent Banking and De-risking. While the technical problems behind this are under conversation among your colleagues in the Financial Solutions Committee, and just recently they sent out a letter to the OCC asking for clearness on the application of rules and compliance, this problem has been front and center for the countries of the Caribbean for a while. This is an international problem, however it is widely acknowledged that the Caribbean has been disproportionately impacted due to the fact that of the size of the marketplaces and the perception of danger.
Federal government, global banks, associations, and the personal sector to assist determine options for the Caribbean. The CEO of the FIBA describes the scenario as follows: We are dealing with financial addition in developing countries and de- risking is then obstructing access to finance. This totals up to a de facto embargo on the region in the location of financial services (How to finance a second home). When global banks sever relationships with regional banks, there is a direct impact on financial growth, trade, and remittances. As important, when the costs of abiding by policies create a problem on the genuine banks and they shut down, there is a threat that underground or less regulated organizations will take their location.
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While we can all concur job selling timeshares that the banking neighborhood's ability to fight cash laundering and terrorist funding is a shared priority, what we can refrain from doing is place undue problems on any specific celebration. There exists a chance for all stakeholders to come together to craft a well balanced, risk-based method between regulation and addition, where all celebrations acknowledge that they have a function in the problem along with in the solution. Travel and Tourist. Millions of travelers move by air and sea in between the Caribbean and the U.S. every year. Air and sea ports are a crucial part of Click here! the security apparatus every day.
extra control over its borders and creates a collective environment for handling terrorist watch lists as well as trafficking of weapons, drugs, and other contraband. Pre-clearance facilities in-region are an instrument for building a security partnership (How to finance a house flip). While the cost does not justify pre-clearance in every Caribbean country, a strategic look at increasing pre-clearance presence through a center and spoke system would be advantageous to shared partnership and security. Diplomatic Presence. Representative Engel has long required the facility of a diplomatic existence in the countries of the Eastern Caribbean. There are 9 member states of the Organization of Eastern Caribbean States, 6 of which are independent.
If there is no cravings for diplomatic existence in all of the nations of the Eastern Caribbean, I believe that there need to a minimum of be stronger acknowledgment of the force that the OECS represents in the area, and a minimum of one full Embassy must be developed there. Security and Catastrophe Durability. CCAA has run a Catastrophe Management Workshop Series with our partners from Tropical Shipping and other local partners for practically 20 years. This event highlights the significance of public-private collaborations in catastrophe management. Formerly focused extremely much on natural disasters, we now look at more comprehensive risks to the particular countries.
The region is vulnerable to variety of natural and other catastrophes and durability is crucial. Any breakdown has trade, economic, and security implications for the wider region and for its partners outside the region. A multi-country strategy created in collaboration with regional partners must be a part of the engagement. Time does not permit for the complete variety of matters to be resolved. Energy, for one, is a regional concern and there I would urge continued U.S. engagement on the sustainable energy front, structure on the Vice President's hallmark Caribbean Energy Security Effort. Additionally, Haiti stays an ongoing obstacle and the present political crisis has implications for the area as a whole.