Other nations, including China and Venezuela, are particularly good at these sorts of diplomatic efforts. The goodwill they have actually engendered in the area through such activities need to be a wake-up call for Washington that the Caribbean Basin can not be considered granted. In the current environment the United States must compete for the Caribbean as indeed we have to contend for all of Latin America, and I think that additional U.S. efforts in the Caribbean would be rewarded. So Mr. Chairman, Mr. Ranking Member, thank you again for the opportunity to join you. It is an advantage to do so, and I look forward to the concerns you might have.
Farnsworth follows:] [GRAPHIC( S) NOT READILY AVAILABLE IN TIFF FORMAT] ---------- Mr. Duncan. Thank you, Eric. Next witness extremely well understood to the committee too, 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 prompt hearing on the U.S.- Caribbean partnership. Coming as it carries out in the wake of the House passage of H.R. 4939, we have a crucial chance to examine and recalibrate the relationship. The Caribbean is the United States' third border. U.S. security interests in regional stability are fundamentally linked and so, by extension, collaboration on vital economic, political, and social advancement problems must be a diplomacy concern.
Russia, China, Canada, Taiwan, Venezuela, and the European Union all have a significant existence. The Islamic Development Bank has established substantial ties with funding in some Caribbean nations, and other nations ranging from Qatar to Japan and Brazil have had a considerable impact on how and where the nations of the Caribbean have actually relied on browse for trade and funding alternatives (What was the reconstruction finance corporation). The United States remains the region's main trading partner, but there is no doubt that when it concerns overall engagement other nations are filling, and sometimes exploiting, a vacuum. What can be done to develop this stronger partnership? I will speak to the areas of financial cooperation that we believe could have an effect.
The 1983 Caribbean Basin Economic Healing Act remains among the most generous nonreciprocal trade bills ever given by the U.S. The Caribbean Basin remains a leading 10 trading partner with a balance of trade surplus in favor of the U.S. It is likewise worth noting that the Caribbean is the only location of the world where U.S. ship operators and U.S. nationals stay significant players in the global carriage of items by sea. When CBERA was passed, local economies were quite oriented around agricultural and manufactured items. However, the world has changed. The economies today with some exceptions are mostly dominated by travel and tourism, the financial services sector and other service based markets.
With H.R. 4939, the U.S. Government can analyze what exists, where there are spaces, and suggest prospective locations for trade and cooperation which show today's reality. Correspondent Banking and De-risking. While the technical issues behind this are under discussion amongst your associates in the Financial Solutions Committee, and recently they sent a http://cesaryafe449.hpage.com/post1.html letter to the OCC asking for clarity on the application of rules and compliance, this problem has been front and center for the nations of the Caribbean for a while. This is a global problem, however it is widely acknowledged that the Caribbean has been disproportionately impacted since of the size of the marketplaces and the perception of risk.
Federal government, global banks, associations, and the economic sector to help recognize services for the Caribbean. The CEO of the FIBA explains the scenario as follows: We are working on monetary inclusion in establishing nations and de- running the risk of is then obstructing access to finance. This amounts to a de facto embargo on the region in the area of financial services (How many years can you finance a boat). When worldwide banks sever relationships with regional banks, there is a direct influence on financial growth, trade, and remittances. As my wfg online crucial, when the costs of abiding by policies create a burden on the genuine banks and they shut down, there is a danger that underground or less regulated organizations will take their location.
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While we can all agree that the banking community's ability to combat cash laundering and terrorist funding is a shared top priority, what we can refrain from doing is place excessive burdens on any private celebration. There exists a chance for all stakeholders to come together to craft a balanced, risk-based method between guideline and addition, where all parties recognize that they have a role in the issue as well as in the service. 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 critical part of the security device every day.
additional control over its borders and produces a collective environment for handling terrorist watch lists along with trafficking of weapons, drugs, and other contraband. Pre-clearance facilities in-region are an instrument for building a security collaboration (What credit score is needed to finance a car). While the cost does not justify pre-clearance in every Caribbean country, a strategic take a look at increasing pre-clearance existence through a hub and spoke system would be beneficial to shared cooperation and security. Diplomatic Existence. Representative Engel has long called for 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, 6 of which are independent.
If there is no appetite for diplomatic existence in all of the nations of the Eastern Caribbean, I think that there should at least be more powerful recognition of the force that the OECS represents in the click here area, and at least one complete Embassy must be developed there. Security and Catastrophe Resilience. CCAA has actually run a Catastrophe Management Workshop Series with our partners from Tropical Shipping and other regional partners for almost twenty years. This event underscores the significance of public-private collaborations in disaster management. Previously focused quite on natural disasters, we now take a look at more comprehensive dangers to the particular countries.
The region is susceptible to variety of natural and other catastrophes and durability is critical. Any breakdown has trade, financial, and security implications for the broader area and for its partners outside the area. A multi-country technique forged in collaboration with regional partners should be a part of the engagement. Time does not enable the complete variety of matters to be addressed. Energy, for one, is a local concern and there I would prompt continued U.S. engagement on the sustainable energy front, structure on the Vice President's hallmark Caribbean Energy Security Effort. Furthermore, Haiti stays a continuous obstacle and the existing political crisis has ramifications for the area as a whole.