Other countries, consisting of China and Venezuela, are especially great 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 approved. In the current environment the United States should compete for the Caribbean as indeed we have to contend for all of Latin America, and I believe that additional 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 a benefit to do so, and I eagerly anticipate the questions you might have.
Farnsworth follows:] [GRAPHIC( S) NOT READILY AVAILABLE IN TIFF FORMAT] ---------- Mr. Duncan. Thank you, Eric. Next witness extremely well known to the committee also, Sally Yearwood, you are acknowledged for 5 minutes. STATEMENT OF MS. SALLY YEARWOOD, EXECUTIVE DIRECTOR, CARIBBEAN- CENTRAL AMERICAN ACTION Ms. Yearwood. Thank you, Click for more info Mr. Chairman, Ranking Member Sires. Thank you for holding this timely hearing on the U.S.- Caribbean collaboration. Coming as it performs in the wake of your home passage of H.R. 4939, we have an essential opportunity to examine 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 economic, political, and social advancement concerns must be a diplomacy priority.
Russia, China, Canada, Taiwan, Venezuela, and the European Union all have a significant existence. The Islamic Development Bank has actually established significant ties with funding in some Caribbean nations, 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 look for trade and financing alternatives (How long can you finance a used car). The United States stays the region's main trading partner, but there is no doubt that when it concerns general engagement other countries are filling, and in many cases making use of, a vacuum. What can be done to build this more powerful partnership? I will talk to the locations of economic cooperation that we believe could have an effect.
The 1983 Caribbean Basin Economic Recovery Act stays one of the most generous nonreciprocal trade expenses ever given 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 also worth noting that the Caribbean is the only location of the Click to find out more world where U.S. ship operators and U.S. nationals remain substantial gamers in the global carriage of items by sea. When CBERA was passed, local economies were very much oriented around farming and manufactured products. However, the world has changed. The economies today with some exceptions are largely controlled 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 suggest prospective locations for trade and cooperation which reflect today's truth. Reporter Banking and De-risking. While the technical issues behind this are under conversation among your associates in the Financial Services Committee, and recently they sent out a letter to the OCC asking for clarity on the application of rules and compliance, this concern has actually been front and center for the countries of the Caribbean for a while. This is a global problem, but it is commonly acknowledged that the Caribbean has been disproportionately impacted because of the size of the markets and the understanding of threat.
Federal government, global banks, associations, and the private sector to help determine solutions for the Caribbean. The CEO of the FIBA explains the situation as follows: We are working on financial addition in developing nations and de- risking is then blocking access to fund. This totals up to a de facto embargo on the area in the area of monetary services (What credit score is needed to finance a car). When global banks sever relationships with local banks, there is a direct effect on economic development, trade, and remittances. As essential, when the expenses of abiding by guidelines create a problem on the legitimate banks and they close down, there is a danger that underground or less regulated institutions will take their place.
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While we can all agree that the banking neighborhood's ability to fight cash laundering and terrorist financing is a shared priority, what we can refrain from doing is place undue problems on any specific party. There exists a chance for all stakeholders to come together to craft a balanced, risk-based method in between policy and inclusion, where all parties recognize that they have a role in the issue in addition to in the option. Travel and Tourism. Countless 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 the security device every day.
extra control over its borders and creates a collaborative environment for handling terrorist watch lists along with trafficking of weapons, drugs, and other contraband. Pre-clearance centers in-region are an instrument for constructing a security collaboration (How to finance a car from a private seller). While the cost does not justify pre-clearance in every Caribbean country, a strategic take a look at increasing pre-clearance presence through a hub and spoke system would be advantageous to shared partnership and security. Diplomatic Existence. Agent 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 believe that there ought to at least be stronger recognition of the force that the OECS represents in the area, and at least one complete Embassy must be developed there. Security and Disaster Strength. CCAA has actually run a Disaster Management Workshop Find more information Series with our partners from Tropical Shipping and other regional partners for practically 20 years. This occasion underscores the significance of public-private collaborations in catastrophe management. Formerly focused extremely much on natural catastrophes, we now look at broader risks to the particular countries.
The area is vulnerable to variety of natural and other catastrophes and strength is crucial. Any breakdown has trade, economic, and security ramifications for the more comprehensive area and for its partners outside the region. A multi-country technique created in collaboration with local partners ought to be a part of the engagement. Time does not enable the complete series of matters to be resolved. Energy, for one, is a regional concern 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 obstacle and the existing political crisis has implications for the area as a whole.