Other nations, consisting of China and Venezuela, are particularly proficient at these sorts of diplomatic efforts. The goodwill they have actually stimulated in the region through such activities should be a wake-up call for Washington that the Caribbean Basin can not be considered given. In the present environment the United States need to compete for the Caribbean as certainly we need 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 again for the chance to join you. It is an opportunity to do so, and I look forward to the questions you might have.
Farnsworth follows:] [GRAPHIC( S) NOT AVAILABLE IN TIFF FORMAT] ---------- Mr. Duncan. Thank you, Eric. Next witness really well known to the committee also, Sally Yearwood, you are acknowledged 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 collaboration. Coming as it performs in the wake of the Home passage of H.R. 4939, we have a crucial opportunity to assess and recalibrate the relationship. The Caribbean is the United States' 3rd border. U.S. security interests in regional stability are intrinsically connected and so, by extension, cooperation on important economic, political, and social development issues should be a foreign policy priority.
Russia, China, Canada, Taiwan, Venezuela, and the European Union all have a substantial existence. The Islamic Development Bank has established substantial ties with funding in some Caribbean countries, and other countries varying from Qatar to Japan and Brazil have actually had a substantial influence on how and where the nations of the Caribbean have turned to browse for trade and funding options (What does ach stand for in finance). The United States stays the region's primary trading partner, however there is no doubt that when it comes to overall engagement other nations are filling, and in many cases exploiting, a vacuum. What can be done to construct this more powerful collaboration? I will speak with the areas of economic cooperation that our company believe could have an effect.
The 1983 Caribbean Basin Economic Recovery Act remains one of the most generous nonreciprocal trade expenses ever granted by the U.S. The Caribbean Basin stays 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 Additional info operators and U.S. nationals remain significant gamers in the worldwide carriage of goods by sea. When CBERA was passed, local economies were quite oriented around agricultural and manufactured products. However, the world has altered. The economies today with some exceptions are mainly dominated by travel and tourist, the financial services sector and other service based markets.
With H.R. 4939, the U.S. Federal government can analyze what exists, where there are gaps, and recommend possible areas for trade and cooperation which reflect today's reality. Reporter Banking and De-risking. While the technical issues behind this are under conversation among your associates in the Financial Solutions Committee, and just recently they sent a letter to the OCC requesting clearness on the application of guidelines and compliance, this issue has actually been front and center for the nations of the Caribbean for a while. This is an international problem, however it is extensively acknowledged that the Caribbean has actually been disproportionately impacted because of the size of the marketplaces and the perception of risk.
Federal government, international financial organizations, associations, and the private sector to help determine options for the Caribbean. The CEO of the FIBA explains the circumstance as follows: We are dealing with financial addition in establishing nations and de- risking is then blocking access to fund. This totals up to a de facto embargo on the area in the location of financial services (What is a cd in finance). When international banks sever relationships with regional banks, there is a direct impact on economic growth, trade, and remittances. As important, when the expenses of adhering to regulations produce a concern on the genuine banks and they shut down, there is a threat that underground or less regulated organizations will take their place.
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While we can all concur that the banking neighborhood's ability to fight cash laundering and terrorist financing is a shared concern, what we can not do is location undue burdens on any private party. There exists a chance for all stakeholders to come together to craft a well balanced, risk-based approach between guideline and addition, where all parties recognize that they have a role in the issue as well as in the solution. Travel and Tourism. Countless tourists move by air and sea between the Caribbean and the U.S. every year. Air and sea ports are a vital 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 constructing a security collaboration (What was the reconstruction finance corporation). While the expense does wesley press not justify pre-clearance in every Caribbean country, a tactical take a look at increasing pre-clearance existence through a center and spoke system would be helpful to shared collaboration and security. Diplomatic Existence. Agent Engel has long required the facility of a diplomatic presence in the countries of the Eastern Caribbean. There are nine member states of the Company 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 think that there should a minimum of be stronger recognition of the force that the OECS represents in the region, and a minimum of one complete Embassy must be developed there. Security and Disaster Durability. CCAA has run a Disaster Management Workshop Series with our partners from Tropical Shipping and other local partners for nearly twenty years. This occasion underscores the importance of public-private collaborations in disaster management. Formerly focused really much on natural catastrophes, we now take a look at broader dangers to the specific nations.
The area is vulnerable to series of natural and other catastrophes and durability is crucial. Any breakdown has trade, financial, and security implications for the broader area and for its partners outside the area. A multi-country strategy created in collaboration with local partners ought to belong of the engagement. Time does not enable for the full series of matters to be addressed. Energy, for one, is a regional priority and there I would urge ongoing U.S. engagement on the sustainable energy front, building on the Vice President's hallmark Caribbean Energy Security Effort. Additionally, Haiti remains a continuous difficulty and the existing political crisis has implications for the region as a whole.