Other nations, including China and Venezuela, are particularly great 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 taken for given. 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 think that extra 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 opportunity to do so, and I eagerly anticipate the questions you may 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 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 performs in the wake of your house passage of H.R. 4939, we have an essential 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 therefore, by extension, cooperation on vital economic, political, and social advancement problems should be a diplomacy concern.
Russia, China, Canada, Taiwan, Venezuela, and the European Union all have a substantial existence. The Islamic Advancement Bank has actually established considerable ties with funding in some Caribbean countries, and other nations varying from Qatar to Japan and Brazil have actually had a significant influence on how and where the countries of the Caribbean have relied on look for trade and funding alternatives (How do you finance a car). The United States stays the area's main trading partner, but there is no doubt that when it comes to general engagement other nations are filling, and sometimes making use of, a vacuum. What can be done to build this stronger partnership? I will talk to the locations of financial cooperation that we think could have an impact.
The 1983 Caribbean Basin Economic Healing Act stays among the most generous nonreciprocal trade expenses ever approved by the U.S. The Caribbean Basin stays a top 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 area 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, regional economies were quite oriented around agricultural and manufactured products. However, the world has changed. The economies today with some exceptions are mostly controlled by travel and tourist, the financial services sector and other service based industries.
With H.R. 4939, the U.S. Federal government can analyze what exists, where there are spaces, and suggest potential locations for trade and cooperation which show today's reality. Correspondent Banking and De-risking. While the technical concerns behind this are under conversation among your colleagues in the Financial Providers Committee, and just recently they sent out a letter to the OCC requesting clarity on the application of guidelines and compliance, this problem has actually been front and center for the nations of the Caribbean for a while. This is an international issue, however it is commonly acknowledged that the Caribbean has been disproportionately affected due to the fact that of the size of the marketplaces and the perception of danger.
Federal government, international financial institutions, associations, and the private sector to assist determine options for the Caribbean. The CEO of the FIBA describes the situation as follows: We are working on financial addition in establishing nations and de- risking is then blocking access to fund. This totals up to a de facto embargo on the region in the area of monetary services (Which of the following can be described as involving direct finance). When global banks sever relationships with local banks, there is a direct impact on economic growth, trade, and remittances. As essential, when the costs of complying with regulations produce a concern on the genuine banks and they shut down, there is a hazard that underground or less regulated institutions will take their place.
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While we can all concur that the banking community's capability to combat money laundering and terrorist funding is a shared priority, what we can refrain from doing is place excessive concerns on any private celebration. There exists an opportunity for all stakeholders to come together to craft a well balanced, risk-based technique in between regulation and inclusion, where all parties acknowledge that they have a role in the problem as well as in the option. Travel and Tourism. Millions of 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.
extra control over its borders and creates a collaborative environment for managing terrorist watch lists in addition to trafficking of guns, drugs, and other contraband. Pre-clearance centers in-region are an instrument for constructing a security partnership (How to finance a home addition). While the cost does not justify pre-clearance in every Caribbean nation, a strategic look at increasing pre-clearance presence through a hub and spoke system would be helpful to shared collaboration and security. Diplomatic Existence. Agent Engel has actually long required the establishment of a diplomatic existence in the nations of the Eastern Caribbean. There are 9 member states of the Company of Eastern Caribbean States, six of which are independent.
If there is no appetite for diplomatic existence in all of the countries of the Eastern Caribbean, I believe that there should at least be more powerful acknowledgment of the force that the OECS represents in the area, and a minimum of one complete Embassy ought to be developed there. Security and Disaster Strength. CCAA has run a Catastrophe Management Workshop Series with our partners from Tropical Shipping and other local partners for nearly twenty years. This occasion underscores the value john pam of public-private partnerships in catastrophe management. Formerly focused very much on natural disasters, we now look at broader risks to the specific nations.
The area is vulnerable free timeshares to variety of natural and other disasters and durability is crucial. Any breakdown https://260791.8b.io/page13.html has trade, economic, and security ramifications for the broader region and for its partners outside the region. A multi-country technique forged in cooperation with regional partners need to belong of the engagement. Time does not enable the full variety of matters to be resolved. Energy, for one, is a regional priority and there I would prompt continued U.S. engagement on the sustainable energy front, building on the Vice President's hallmark Caribbean Energy Security Initiative. Additionally, Haiti remains an ongoing difficulty and the current political crisis has ramifications for the area as a whole.
